"We are pleased to start 2026 with a strong increase in net income of 16.6 percent year over year, primarily due to our core balance sheet growth and decreased funding costs over the past year," said David Bailey, President and CEO. "While the current macro environment is uncertain with the ongoing Iran conflict, our Company remains financially strong, sound and secure as reflected in our strong capital levels, diversified core deposit base, and sound lending practices. We appreciate our associates who work hard every day to build new customer relationships while providing exceptional service," added Mr. Bailey.
Net interest income for the first quarter of 2026 was $134.79 million compared to $131.37 million for the fourth quarter of 2025 and $118.79 million for the first quarter of 2025. The net interest margin, on a tax-equivalent basis, was 3.86 percent for the first quarter of 2026 compared to 3.81 percent for the fourth quarter of 2025 and 3.74 percent for the first quarter of 2025. Net interest income was affected by a $1.26 million reversal of interest expense, improving the core margin by about 3 basis points. Average interest-earning assets were $14.54 billion for the first quarter of 2026 compared to $14.08 billion for the fourth quarter of 2025 and $13.16 billion for the same quarter a year ago.
The Company recorded a provision for credit losses of $2.29 million for the first quarter of 2026 compared to a provision reversal of $2.49 million for the fourth quarter of 2025 and a provision for credit losses of $3.53 million for the first quarter of 2025.
At March 31, 2026, the allowance for credit losses totaled $107.92 million, or 1.30 percent of loans held-for-investment ("loans" hereafter), compared to $105.54 million, or 1.29 percent of loans, at December 31, 2025 and $101.08 million, or 1.27 percent of loans, at March 31, 2025.
Net charge-offs totaled $356 thousand for the first quarter of 2026 compared to net charge-offs of $391 thousand for the fourth quarter of 2025 and $236 thousand for the first quarter of 2025. Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.66 percent at March 31, 2026, compared with 0.69 percent at December 31, 2025 and 0.78 percent at March 31, 2025.
Noninterest income for the first quarter of 2026 was $32.10 million compared to $30.23 million for the first quarter of 2025.
Trust fees increased to $13.36 million for the first quarter of 2026 compared to $12.65 million for the first quarter of 2025, driven by the increase in market value of trust assets managed to $11.91 billion at March 31, 2026, compared to $10.86 billion at March 31, 2025.
Service charges on deposits decreased to $6.08 million for the first quarter of 2026 compared with $6.18 million for the first quarter of 2025, driven by a decrease in overdraft fees.
Mortgage income increased to $4.28 million for the first quarter of 2026 compared to $2.83 million for the first quarter of 2025, due to increased volume in mortgage loans originated and better margins.
Noninterest expense for the first quarter of 2026 totaled $76.77 million compared to $70.34 million for the first quarter of 2025.
Salary, commissions, and employee benefit costs increased to $45.98 million for the first quarter of 2026, compared to $42.14 million in the first quarter of 2025, primarily resulting from additions to staff and merit-based and market driven pay increases to officers and employees over the past year.
Noninterest expenses, excluding salary related costs, increased $2.59 million for the first quarter of 2026 compared to the same period in 2025, largely due to increases in software amortization, professional fees and operational and other losses.
The Company's efficiency ratio was 44.98 percent for the first quarter of 2026 compared to 46.36 percent for the first quarter of 2025.
As of March 31, 2026, consolidated total assets were $15.39 billion compared to $15.45 billion at December 31, 2025, and $14.31 billion at March 31, 2025. Loans totaled $8.29 billion at March 31, 2026, compared with $8.16 billion at December 31, 2025 and $7.95 billion at March 31, 2025. Loans grew $126.84 million or 6.31 percent annualized from 2025 year end balances. Deposits and Repurchase Agreements totaled $13.31 billion at March 31, 2026 compared to $13.41 billion at December 31, 2025 and $12.52 billion at March 31, 2025. Core deposits grew during the quarter but were offset by declines in public fund balances.
Shareholders' equity was $1.94 billion as of March 31, 2026, compared to $1.92 billion and $1.68 billion at December 31, 2025 and March 31, 2025, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $290.06 million at March 31, 2026, compared to an unrealized loss of $269.94 million and $388.89 million at December 31, 2025 and March 31, 2025, respectively, due to the changes in market interest rates during the respective periods.
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, Spring, 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, 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
2026
2025
ASSETS
Mar. 31
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Cash and due from banks
$
264,850
$
249,466
$
237,466
$
264,000
$
232,943
Interest-bearing demand deposits in banks
458,203
826,947
401,580
435,612
682,362
Federal funds sold
14,075
1,575
11,750
8,750
11,750
Investment securities
5,668,792
5,514,113
5,260,813
4,886,548
4,760,431
Loans, held-for-investment
8,285,120
8,158,276
8,243,625
8,074,944
7,945,611
Allowance for credit losses
(107,918)
(105,536)
(105,958)
(102,792)
(101,080)
Net loans, held-for-investment
8,177,202
8,052,740
8,137,667
7,972,152
7,844,531
Loans, held-for-sale
22,984
29,992
26,015
33,233
14,348
Premises and equipment, net
150,989
149,985
149,651
148,999
150,589
Goodwill
313,481
313,481
313,481
313,481
313,481
Other intangible assets
128
171
257
343
428
Other assets
316,941
308,006
302,848
313,723
301,251
Total assets
$
15,387,645
$
15,446,476
$
14,841,528
$
14,376,841
$
14,312,114
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits
$
3,385,878
$
3,401,057
$
3,446,262
$
3,439,059
$
3,356,553
Interest-bearing deposits
9,859,359
9,944,472
9,399,986
9,009,357
9,110,218
Total deposits
13,245,237
13,345,529
12,846,248
12,448,416
12,466,771
Repurchase agreements
67,946
62,956
50,646
48,026
56,606
Borrowings
22,306
21,680
21,956
22,153
26,978
Trade date payable
-
-
-
24,965
-
Other liabilities
108,305
98,994
92,410
95,929
81,498
Shareholders' equity
1,943,851
1,917,317
1,830,268
1,737,352
1,680,261
Total liabilities and shareholders' equity
$
15,387,645
$
15,446,476
$
14,841,528
$
14,376,841
$
14,312,114
Quarter Ended
2026
2025
INCOME STATEMENTS
Mar. 31
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Interest income
$
182,945
$
182,869
$
179,692
$
172,810
$
167,110
Interest expense
48,154
51,501
52,691
49,080
48,321
Net interest income
134,791
131,368
127,001
123,730
118,789
Provision for credit losses
2,291
(2,486)
24,435
3,132
3,528
Net interest income after provision for credit losses
132,500
133,854
102,566
120,598
115,261
Noninterest income
32,096
33,349
34,264
32,873
30,230
Noninterest expense
76,768
77,650
73,666
71,735
70,335
Net income before income taxes
87,828
89,553
63,164
81,736
75,156
Income tax expense
16,285
16,239
10,897
15,078
13,810
Net income
$
71,543
$
73,314
$
52,267
$
66,658
$
61,346
PER COMMON SHARE DATA
Net income - basic
$
0.50
$
0.51
$
0.37
$
0.47
$
0.43
Net income - diluted
0.50
0.51
0.36
0.47
0.43
Cash dividends declared
0.19
0.19
0.19
0.19
0.18
Book value
13.57
13.39
12.78
12.14
11.75
Tangible book value
11.38
11.20
10.59
9.95
9.55
Market value
29.45
29.87
33.65
35.98
35.92
Shares outstanding - end of period
143,279,030
143,213,102
143,188,051
143,077,619
143,019,433
Average outstanding shares - basic
143,210,755
143,180,215
143,105,224
143,023,544
142,949,514
Average outstanding shares - diluted
143,608,079
143,542,801
143,474,169
143,378,505
143,355,148
PERFORMANCE RATIOS
Return on average assets
1.89
%
1.94
%
1.44
%
1.89
%
1.78
%
Return on average equity
14.83
15.62
11.85
15.82
15.12
Return on average tangible equity
17.66
18.78
14.44
19.43
18.68
Net interest margin (tax equivalent)
3.86
3.81
3.80
3.81
3.74
Efficiency ratio
44.98
46.10
44.74
44.97
46.36
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
2026
2025
ALLOWANCE FOR LOAN LOSSES
Mar. 31,
Dec. 31,
