FIRST FINANCIAL BANKSHARES ANNOUNCES SECOND QUARTER 2025 EARNINGS
ABILENE, Texas, July 17, 2025 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ:FFIN) today reported earnings of $66.66 million for the second quarter of 2025 compared to earnings of $52.49 million for the same quarter a year ago and $61.35 million for the quarter ended March 31, 2025. Basic and diluted earnings per share were $0.47 for the second quarter of 2025 compared with $0.37 for the second quarter of 2024 and $0.43 for the linked quarter.
"Our second quarter results are positive with earnings growth of over 27 percent from the second quarter last year resulting from our healthy loan and deposit growth, improved margin and increased trust revenue," said F. Scott Dueser, Chairman and CEO of First Financial Bankshares, Inc. "Our outlook for the remainder of the year is good as we have opportunities to improve our investment yields, continue loan growth and focus on growing deposits in our markets. I am very appreciative of the work our teams are doing to support these results."
Net interest income for the second quarter of 2025 was $123.73 million compared to $103.27 million for the second quarter of 2024 and $118.79 million for the first quarter 2025. The net interest margin, on a taxable equivalent basis, was 3.81 percent for the second quarter of 2025 compared to 3.48 percent for the second quarter of 2024 and 3.74 percent in the first quarter of 2025. Increased margins are primarily due to increased average yields on loans and securities. Additionally, the Company recognized a $698 thousand prepayment penalty during the second quarter of 2025 which had a positive impact on the margin for the quarter. Average interest-earning assets were $13.34 billion for the second quarter of 2025 compared to $12.23 billion for the same quarter a year ago.
The Company recorded a provision for credit losses of $3.13 million for the second quarter of 2025 compared to a provision for credit losses of $5.89 million for the second quarter of 2024 and $3.53 million for the first quarter 2025. At June 30, 2025, the allowance for credit losses totaled $102.79 million, or 1.27 percent of loans held-for-investment ("loans" hereafter), compared to $95.17 million, or 1.27 percent of loans, at June 30, 2024. Additionally, the reserve for unfunded commitments totaled $9.91 million at June 30, 2025 compared to $7.43 million at June 30, 2024.
For the second quarter of 2025, net charge-offs totaled $720 thousand compared to net charge-offs of $302 thousand for the second quarter of 2024 and net charge offs of $236 thousand for the first quarter 2025. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.79 percent at June 30, 2025, compared to 0.81 percent at June 30, 2024. Classified loans totaled $257.07 million at June 30, 2025, compared to $219.26 million at June 30, 2024.
Noninterest income for the second quarter of 2025 was $32.87 million compared to $31.27 million for the second quarter of 2024, due to the following:
Trust fee income increased to $12.75 million for the second quarter of 2025 compared to $11.71 million for the second quarter of 2024, driven by the increase in market value of trust assets managed to $11.46 billion at June 30, 2025, compared to $10.24 billion at June 30, 2024.
Mortgage income increased to $4.13 million for the quarter compared to $3.69 million for the second quarter of 2024, as overall origination volume and margins have improved from the prior periods.
Other noninterest income decreased $499 thousand to $2.93 million for the second quarter of 2025 compared to $3.43 million in the second quarter of 2024 due to the recognition of a $723 thousand one-time BOLI settlement payment recognized in the second quarter of 2024.
Noninterest expense for the second quarter of 2025 totaled $71.74 million compared to $65.01 million for the second quarter of 2024, due to the following:
Salary, commissions, and employee benefit costs increased to $42.58 million for the second quarter of 2025, compared to $37.47 million in the second quarter of 2024, primarily resulting from merit-based and market driven pay increases, an increase of $838 thousand in profit sharing accruals, an increase of $519 thousand in bonus and incentive accruals, and an increase of $452 thousand in stock-based compensation when compared to the same quarter in 2024. The increase in profit sharing and incentive accruals are directly related to the increase in net income over prior year.
Noninterest expenses, excluding salary related costs, increased $1.62 million for the second quarter of 2025 compared to the same period in 2024 largely due to increases in software amortization as a result of the Company investing in new loan origination and account opening platforms.
The Company's efficiency ratio was 44.97 percent for the second quarter of 2025 compared to 47.41 percent for the second quarter of 2024 largely due to the increase in net interest income.
As of June 30, 2025, consolidated total assets were $14.38 billion compared to $13.16 billion on June 30, 2024. Loans totaled $8.07 billion on June 30, 2025, compared with loans of $7.52 billion at June 30, 2024. During the second quarter of 2025, loans grew $129.33 million, or 6.53 percent annualized, when compared to March 31, 2025, balances. Loans have grown $161.85 million or 4.12 percent annualized year-to-date. Deposits and Repurchase Agreements totaled $12.50 billion at June 30, 2025, compared to $11.55 billion at June 30, 2024. Deposits and Repurchase Agreement balances have grown 5.57 percent annualized year-to-date through the second quarter 2025.
Shareholders' equity was $1.74 billion as of June 30, 2025, compared to $1.52 billion and $1.61 billion at June 30, 2024, and December 31, 2024, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $373.46 million at June 30, 2025, compared to unrealized losses of $441.56 million at June 30, 2024 and $424.29 million at December 31, 2024.
About First Financial Bankshares, Inc.
Headquartered in Abilene, Texas, First Financial Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, operates multiple banking regions with 79 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Franklin, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Kingwood, Lumberton, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, with nine locations and First Technology Services, Inc., a technology operating company.
The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at https://www.ffin.com.
Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect," "plan," "anticipate," "target," "forecast," "project," and "goal." Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; economic impact of oil and gas prices and the pandemic, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents and Filings" on the Company's Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.
FIRST FINANCIAL BANKSHARES, INC.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except share and per share data)
As of
2025
2024
ASSETS
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
Cash and due from banks
$
264,000
$
232,943
$
259,996
$
296,188
$
263,262
Interest-bearing demand deposits in banks
435,612
682,362
503,417
287,476
103,315
Federal funds sold
8,750
11,750
-
-
2,800
Investment securities
4,886,548
4,760,431
4,617,759
4,612,299
4,573,024
Loans, held-for-investment
8,074,944
7,945,611
7,913,098
7,723,191
7,519,733
Allowance for credit losses
(102,792)
(101,080)
(98,325)
(99,936)
(95,170)
Net loans, held-for-investment
7,972,152
7,844,531
7,814,773
7,623,255
7,424,563
Loans, held-for-sale
33,233
14,348
8,235
20,114
19,668
Premises and equipment, net
148,999
150,589
151,904
151,204
153,075
Goodwill
313,481
313,481
313,481
313,481
313,481
Other intangible assets
343
428
523
671
828
Other assets
313,723
301,251
309,330
278,244
310,059
Total assets
$
14,376,841
$
14,312,114
$
13,979,418
$
13,582,932
$
13,164,075
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits
$
3,439,059
$
3,356,553
$
3,348,041
$
3,303,143
$
3,289,032
Interest-bearing deposits
9,009,357
9,110,218
8,751,133
8,452,718
8,120,125
Total deposits
12,448,416
12,466,771
12,099,174
11,755,861
11,409,157
Repurchase agreements
48,026
56,606
61,416
57,557
138,950
Borrowings
22,153
26,978
135,603
25,978
23,703
Trade date payable
24,965
-
-
5,416
-
Other liabilities
95,929
81,498
76,665
75,929
73,239
Shareholders' equity
1,737,352
1,680,261
1,606,560
1,662,191
1,519,026
Total liabilities and shareholders' equity
$
14,376,841
$
14,312,114
$
13,979,418
$
13,582,932
$
13,164,075
Quarter Ended
2025
2024
INCOME STATEMENTS
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
Interest income
$
172,810
$
167,110
$
165,792
$
159,958
$
153,673
Interest expense
49,080
48,321
49,675
52,849
50,400
Net interest income
123,730
118,789
116,117
107,109
103,273
Provision for credit losses
3,132
3,528
1,003
6,123
5,888
Net interest income after provision for credit losses
120,598
115,261
115,114
100,986
97,385
Noninterest income
32,873
30,230
30,977
32,362
31,268
Noninterest expense
71,735
70,335
70,099
66,012
65,012
Net income before income taxes
81,736
75,156
75,992
67,336
63,641
Income tax expense
15,078
13,810
13,671
12,028
11,156
Net income
$
66,658
$
61,346
$
62,321
$
55,308
$
52,485
PER COMMON SHARE DATA
Net income - basic
$
0.47
$
0.43
$
0.44
$
0.39
$
0.37
Net income - diluted
0.47
0.43
0.43
0.39
0.37
Cash dividends declared
0.19
0.18
0.18
0.18
0.18
Book value
12.14
11.75
11.24
11.63
10.63
Tangible book value
9.95
9.55
9.04
9.43
8.43
Market value
35.98
35.92
36.05
37.01
29.53
Shares outstanding - end of period
143,077,619
143,019,433
142,944,704
142,906,070
142,848,909
Average outstanding shares - basic
143,023,544
142,949,514
142,898,110
142,853,215
142,814,363
Average outstanding shares - diluted
142,378,505
143,355,148
143,352,067
143,188,857
143,088,930
PERFORMANCE RATIOS
Return on average assets
1.89
%
1.78
%
1.81
%
1.66
%
1.61
%
Return on average equity
15.82
15.12
15.17
14.00
14.43
Return on average tangible equity
19.43
18.68
18.78
17.49
18.38
Net interest margin (tax equivalent)
3.81
3.74
3.67
3.50
3.48
Efficiency ratio
44.97
46.36
46.81
46.45
47.41
Six Months Ended
June 30,
INCOME STATEMENTS
2025
2024
Interest income
$
339,920
$
303,167
Interest expense
97,401
99,653
Net interest income
242,519
203,514
Provision for credit losses
6,660
6,695
Net interest income after provisions for credit losses
235,859
196,819
Noninterest income
63,103
60,651
Noninterest expense
142,070
128,952
Net income before income taxes
156,892
128,518
Income tax expense
28,888
22,636
Net income
$
128,004
$
105,882
PER COMMON SHARE DATA
Net income - basic
$
0.90
$
0.74
Net income - diluted
0.89
0.74
Cash dividends declared
0.37
0.36
Book value
12.14
10.63
Tangible book value
9.95
8.43
Market value
$
35.98
$
29.53
Shares outstanding - end of period
143,077,619
142,848,909
Average outstanding shares - basic
142,986,734
142,769,518
Average outstanding shares - diluted
143,378,720
143,067,193
PERFORMANCE RATIOS
Return on average assets
1.83
%
1.62
%
Return on average equity
15.48
14.43
Return on average tangible equity
19.07
18.33
Net interest margin (tax equivalent)
3.78
3.41
Efficiency ratio
45.65
47.88
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
2025
2024
ALLOWANCE FOR LOAN LOSSES
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
June 30,
Balance at beginning of period
$
101,080
$
98,325
$
99,936
$
95,170
$
89,562
Loans charged-off
(1,189)
(946)
(2,184)
(1,279)
(702)
Loan recoveries
469
710
243
493
400
Net recoveries (charge-offs)
(720)
(236)
(1,941)
(786)
(302)
Provision for loan losses
2,432
2,991
330
