#USA #earnings report #Abilene #First Financial #Q1 2026

First Financial Bankshares Announces First Quarter 2026 Earnings

April 16, 2026 - Abilene, Texas
First Financial Bankshares, Inc. (NASDAQ: FFIN) reported its earnings for the first quarter of 2026 today, showcasing a notable increase. The bank posted earnings of $71.54 million, slightly down from $73.31 million in the previous quarter but up significantly from $61.35 million in the first quarter of the previous year.

Earnings Per Share Growth

The basic and diluted earnings per share for this quarter was $0.50, slightly below $0.51 in Q4 2025 and above $0.43 from a year ago. CEO David Bailey expressed satisfaction with the company's performance, emphasizing a strong 16.6% year-over-year increase in net income, attributed primarily to growth in the core balance sheet and lowered funding costs over the past year.

Revenue Insights

The net interest income for Q1 2026 reached $134.79 million, an improvement from $131.37 million in the prior quarter and significantly up from $118.79 million a year prior. The net interest margin on a tax-equivalent basis was 3.86%, rising from 3.81% in the previous quarter and 3.74% in Q1 2025. This increase was supported by a $1.26 million reversal of interest expense, which positively impacted the margins by approximately 3 basis points. average interest-earning assets also grew to $14.54 billion, compared to $14.08 billion recorded in the last quarter.

Credit Loss Provisions

The bank registered a provision for credit losses of $2.29 million in Q1 2026, following a reversal of $2.49 million in Q4 2025 and a provision of $3.53 million in Q1 2025. As of March 31, 2026, the allowance for credit losses totaled $107.92 million, representing 1.30% of loans held-for-investment, compared to 1.29% in the last quarter and 1.27% a year earlier.

Asset Performance

The first quarter saw net charge-offs of $356,000, slightly down from $391,000 in the previous quarter and higher than $236,000 in the same quarter last year. Notably, nonperforming assets as a percentage of loans and foreclosed assets improved to 0.66%, a decrease from 0.69% in December and 0.78% a year ago.

Noninterest Income and Expenses

Noninterest income for Q1 2026 was $32.10 million, showing a rise from $30.23 million in Q1 2025, with trust fees rising to $13.36 million, up from $12.65 million the prior year. Conversely, service charges on deposits slipped to $6.08 million from $6.18 million in the previous year due to lower overdraft fees.

Total noninterest expenses were recorded at $76.77 million, compared to $70.34 million in the prior year's first quarter. Salary and employee benefit expenses rose to $45.98 million versus $42.14 million in Q1 2025, driven mostly by recruitment and merit-based compensation increases.

Efficiency Ratio and Assets

The company's efficiency ratio improved to 44.98% from 46.36% a year prior, demonstrating better management of operational costs relative to revenue. As of March 31, 2026, consolidated total assets were $15.39 billion, which reflected a slight decrease from $15.45 billion from the end of the last quarter but an increase from $14.31 billion the previous year. Loans totaled $8.29 billion, marking an increase from $7.95 billion a year ago.

Equity reached $1.94 billion, compared to $1.68 billion the previous year, reflecting a robust capital position amid ongoing market challenges, including geopolitical tensions.

Conclusion

In conclusion, First Financial Bankshares recorded a strong start to 2026, showcasing robust earnings and a solid financial standing. The leadership remains optimistic regarding the company’s performance, recognizing the diligent work by its associates in fostering customer relations and delivery of exceptional service. Despite the uncertainties in the current macro environment, First Financial Bank continues to demonstrate its resilience and commitment to growth. For more details about First Financial Bankshares, visit ffin.com.