#United States #Abilene #Earnings #Q2 2025 #First Financial

First Financial Bankshares Reports Second Quarter 2025 Earnings

First Financial Bankshares, Inc., headquartered in Abilene, Texas, has announced impressive earnings figures for the second quarter of 2025. The company reported earnings of $66.66 million, a remarkable increase from $52.49 million in the same period last year and $61.35 million for the quarter that ended on March 31, 2025.

Financial Performance Overview

The earnings per share for this quarter were $0.47, rising from $0.37 a year ago and $0.43 for the previous quarter. This substantial growth of over 27% year-on-year was attributed to healthy loan and deposit increases, enhanced margins, and heightened trust revenue. F. Scott Dueser, the Chairman and CEO, expressed optimism regarding the company's future, indicating positive trends in investment yields and loan growth moving forward.

Net Interest Income Highlights

First Financial Bankshares achieved net interest income of $123.73 million for the second quarter, compared to $103.27 million in the same quarter of 2024 and $118.79 million in the first quarter of 2025. The net interest margin stood at 3.81%, reflecting an improvement from 3.48% in Q2 2024 and 3.74% in Q1 2025. The rise in margins was primarily due to increased average yields on loans and securities, along with the positive contribution from a $698 thousand prepayment penalty recognized during the quarter.

Credit Loss Provisions

The bank set aside a provision for credit losses of $3.13 million in the second quarter, down from $5.89 million in Q2 2024. The allowance for credit losses was $102.79 million, maintaining a constant percentage of 1.27% against loans held for investment. Nonperforming assets as a percentage of loans and foreclosures were reported at 0.79%, slightly down from 0.81% a year earlier.

Non-Interest Income

First Financial's non-interest income also saw a positive trajectory, amounting to $32.87 million, which is a slight increase compared to $31.27 million from the previous year. This increase was mainly driven by a rise in trust fee income, which reached $12.75 million, up from $11.71 million in the second quarter of 2024. Additionally, mortgage income improved to $4.13 million, benefiting from increased loan origination volumes.

Non-Interest Expenses

On the flip side, non-interest expenses totaled $71.74 million, up from $65.01 million a year ago. Salary and benefit costs, which rose to $42.58 million, were the predominant contributors. However, the overall efficiency ratio improved to 44.97% from 47.41%, indicating greater operational efficiency.

Assets and Deposits

As of June 30, 2025, First Financial Bankshares' total assets were reported at $14.38 billion, up from $13.16 billion a year prior. Loans increased to $8.07 billion, compared to $7.52 billion a year ago, with deposits totaling $12.50 billion, marking significant growth in the bank's core business.

Future Outlook

Dueser expressed confidence in improving investment yields and loan growth for the remainder of the year, emphasizing the effectiveness of the company's diverse revenue streams and strong operational teams in supporting these results. As First Financial Bankshares continues to navigate its growth trajectory, stakeholders can look forward to sustained improvements in profitability and operational performance.

For more information about First Financial, visit the official website.