FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2026 EARNINGS

Q: What were First Financial Bankshares’ third-quarter 2026 earnings?

First Financial Bankshares earned $74.31 million, or $0.52 per diluted share, in the third quarter of 2026. Earnings were $52.27 million, or $0.36 per diluted share, a year earlier and $71.89 million, or $0.50 per diluted share, in the second quarter of 2026.

Higher net interest income and a lower credit-loss provision accompanied earnings growth, while unrealized securities losses weighed on equity.

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Rhea-AI Summary

First Financial Bankshares (NASDAQ: FFIN) reported third-quarter 2026 net income of $74.31 million, exceeding both year-earlier and second-quarter earnings. Diluted earnings per share were $0.52, versus $0.36 a year earlier and $0.50 in the second quarter. Net interest income reached $138.51 million, while the tax-equivalent net interest margin rose to 3.91% from 3.80% a year earlier and 3.90% sequentially.

The provision for credit losses fell to $2.03 million from $24.44 million a year earlier. Loans totaled $8.54 billion, and deposits and repurchase agreements totaled $13.19 billion at September 30. Classified loans rose to $294.49 million from $252.96 million a year earlier. Shareholders’ equity declined to $1.83 billion from $2.00 billion sequentially, primarily reflecting increased unrealized securities losses. Noninterest expense was $81.05 million, versus $73.67 million a year earlier.

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0 major · 8 points

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Positive

Moderate pointThird-quarter net income reached $74.31 million versus $52.27 million a year earlier and $71.89 million sequentially.
Moderate pointNet interest income increased to $138.51 million from $127.00 million a year earlier and $136.91 million sequentially.
Moderate pointCredit-loss provision fell to $2.03 million from $24.44 million a year earlier and $4.18 million sequentially.
Moderate pointLoans grew $191.86 million during the quarter, or 9.12% annualized, to $8.54 billion.
Minor pointDiluted EPS rose to $0.52 from $0.36 a year earlier and $0.50 sequentially.

18 minor points

Minor pointTax-equivalent net interest margin rose to 3.91% from 3.80% a year earlier and 3.90% sequentially.
Minor pointNet charge-offs fell to $935 thousand from $22.34 million year-over-year, versus $600 thousand net recoveries sequentially.
Minor pointNonperforming assets ratio declined to 0.71% from 0.80% sequentially, unchanged year-over-year.
Minor pointYear-to-date loan growth totaled $380.51 million, or 6.24% annualized.
Minor pointDeposits and repurchase agreements reached $13.19 billion versus $12.90 billion a year earlier and $13.17 billion sequentially.
Minor pointNoninterest-bearing deposits grew $67.07 million during the quarter, or 7.65% annualized.
Minor pointYear-to-date noninterest-bearing deposit growth totaled $144.77 million, or 5.69% annualized.
Minor pointNoninterest income reached $35.64 million versus $34.26 million a year earlier, but $35.84 million sequentially.
Minor pointWealth management fees rose to $14.49 million from $12.95 million a year earlier and $13.96 million sequentially.
Minor pointDeposit service charges increased to $6.69 million from $6.45 million a year earlier and $6.26 million sequentially.
Minor pointReturn on average assets rose to 1.93% from 1.44% a year earlier and 1.89% sequentially.
Minor pointReturn on average equity increased to 15.02% from 11.85% a year earlier and 14.70% sequentially.
Minor pointReturn on average tangible equity rose to 17.87% from 14.44% a year earlier and 17.49% sequentially.
Minor pointQuarterly dividends declared were $0.22 per share versus $0.19 a year earlier, unchanged sequentially.
Minor pointNine-month net interest income increased to $410.212 million from $369.520 million in 2025.
Minor pointNine-month credit-loss provision declined to $8.508 million from $31.095 million in 2025.
Minor pointNine-month noninterest income increased to $103.575 million from $97.366 million in 2025.
Minor point. Forward-looking: it has not happened yet and may not happen.Bee Cave branch is planned to open later in October, establishing the company’s first full-service Austin-market branch.

Negative

Moderate pointShareholders’ equity fell to $1.83 billion from $2.00 billion sequentially, primarily reflecting increased unrealized securities losses.
Moderate pointNoninterest expense rose to $81.05 million from $73.67 million year-over-year, but declined from $81.11 million sequentially.
Minor pointUnrealized securities losses, net of tax, reached $489.55 million versus $308.58 million a year earlier and $279.67 million sequentially.
Minor pointClassified loans increased to $294.49 million from $252.96 million a year earlier and $283.10 million sequentially.
Minor pointNine-month noninterest expense increased to $238.926 million from $215.736 million in 2025.

3 minor points

Minor pointMortgage income fell to $4.18 million from $4.38 million a year earlier and $4.68 million sequentially.
Minor pointEfficiency ratio worsened to 45.59% from 44.74% year-over-year, but improved from 45.94% sequentially.
Minor pointTangible book value per share fell to $10.59 from $11.75 sequentially, unchanged year-over-year.

News Explained

The year-over-year drop in credit costs is being compared with a prior-year quarter affected by a large fraud-related loan charge-off.

The third-quarter earnings release shows a mixed sequential credit picture: nonperforming assets as a share of loans and foreclosed assets fell from 0.80 percent at June 30, 2026 to 0.71 percent at September 30, 2026, while classified loans rose from $283.10 million to $294.49 million.

The company says the third-quarter 2025 provision was driven by a large loan charge-off due to borrower fraud; third-quarter 2026 provision and net charge-offs were $2.03 million and $935 thousand, compared with $24.44 million and $22.34 million, respectively, a year earlier.

Key Figures

Net income: $74.31 million Diluted earnings per share: $0.52 Net interest income: $138.51 million +5 more

Net income: $74.31 million; Q3 2026; compared with $52.27 million in Q3 2025 and $71.89 million in Q2 2026
Diluted earnings per share: $0.52; Q3 2026; compared with $0.36 in Q3 2025 and $0.50 in Q2 2026
Net interest income: $138.51 million; Q3 2026; compared with $127.00 million in Q3 2025 and $136.91 million in Q2 2026
Net interest margin: 3.91%; Tax-equivalent basis, Q3 2026; compared with 3.80% in Q3 2025 and 3.90% in Q2 2026
Provision for credit losses: $2.03 million; Q3 2026; compared with $24.44 million in Q3 2025 and $4.18 million in Q2 2026
Net charge-offs: $935 thousand; Q3 2026; compared with $22.34 million in Q3 2025 and net recoveries of $600 thousand in Q2 2026
Classified loans: $294.49 million; At September 30, 2026; compared with $252.96 million at September 30, 2025 and $283.10 million at June 30, 2026
Unrealized securities loss: $489.55 million; Net of applicable tax, at September 30, 2026; compared with $308.58 million at September 30, 2025 and $279.67 million at June 30, 2026

Previous Earnings Reports

3 past events · Latest: Jul 16

Same Type 3 events

Jul 16
earnings report

24h Move

-3.2%

Q2 2026 net income and EPS increased year over year; the reported 24-hour price reaction was negative.
Oct 23
earnings report

24h Move

-2.3%

Q3 2025 earnings fell year over year amid a large loan charge-off and higher credit-loss provision.
Apr 16
earnings report

24h Move

+4.9%

Q1 2026 net income and EPS rose year over year, with reported positive 24-hour price reaction.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

net interest margin, tax-equivalent, allowance for credit losses, net charge offs, +1 more

5 terms

net interest margin financial

"The net interest margin, on a tax-equivalent basis, was 3.91 percent"

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

tax-equivalent financial

"The net interest margin, on a tax-equivalent basis, was 3.91 percent"

Tax-equivalent expresses the pre-tax return a taxable investment must offer to match the after-tax return of a tax-advantaged investment, like municipal bonds. It lets investors compare different investments on an equal footing—think of converting two prices into the same currency so you can tell which is truly cheaper—so taxes don’t distort decisions about which yield is better for your portfolio.

allowance for credit losses financial

"the allowance for credit losses totaled $113.89 million"

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

net charge offs financial

"the Company recorded net charge offs of $935 thousand"

Net charge-offs are the amount of loans a lender has declared uncollectible during a period after subtracting any amounts later recovered. Think of it like a shopkeeper writing off unpaid tabs, then subtracting any payments that come in afterward; for investors, rising net charge-offs signal worsening loan quality, potential earnings pressure and weaker capital cushions, while low or falling net charge-offs indicate healthier credit performance.

nonperforming assets financial

"Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.71 percent"

Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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10/15/2026 - 04:05 PM EDT

ABILENE, Texas, Oct. 15, 2026 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings of $74.31 million for the third quarter of 2026 compared to earnings of $52.27 million for the same quarter a year ago and $71.89 million for the quarter ended June 30, 2026. Diluted earnings per share were $0.52 for the third quarter of 2026 compared with $0.36 for the third quarter of 2025 and $0.50 for the linked quarter.

"We are pleased to report another record quarter of net income, largely driven by continued expansion of our net interest margin," said David Bailey, President and CEO. "As we enter the final quarter of the year, we remain focused on disciplined balance sheet growth and prudent risk management. We are also excited to open our new Bee Cave location later this month, establishing our first full-service branch in the Austin market and an important step in our continued expansion across Texas. We appreciate our dedicated team of First Financial bankers whose commitment to our customers and shareholders drives our success every day."

Net interest income for the third quarter of 2026 was $138.51 million compared to $127.00 million for the third quarter of 2025 and $136.91 million for the linked quarter. The net interest margin, on a tax-equivalent basis, was 3.91 percent for the third quarter of 2026 compared to 3.80 percent for the third quarter of 2025 and 3.90 percent for the linked quarter. Average interest-earning assets were $14.43 billion for the third quarter of 2026 compared to $13.60 billion for the same quarter a year ago and $14.46 billion for the linked quarter.

The Company recorded a provision for credit losses of $2.03 million for the third quarter of 2026 compared to a provision for credit losses of $24.44 million for the third quarter of 2025 and $4.18 million for the linked quarter. The third quarter of 2025 provision was driven by a large loan charged off due to borrower fraud. At September 30, 2026, the allowance for credit losses totaled $113.89 million, or 1.33 percent of loans held-for-investment ("loans" hereafter), compared to $105.96 million, or 1.29 percent of loans, at September 30, 2025, and $112.43 million, or 1.35 percent of loans, at June 30, 2026. Additionally, the reserve for unfunded commitments totaled $5.85 million at September 30, 2026 compared to $8.84 million at September 30, 2025 and $6.21 million at June 30, 2026.

For the third quarter of 2026, the Company recorded net charge offs of $935 thousand compared to net charge-offs of $22.34 million for the third quarter of 2025 and net recoveries of $600 thousand for the linked quarter. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.71 percent at September 30, 2026, compared to 0.71 percent at September 30, 2025 and 0.80 percent at June 30, 2026. Classified loans totaled $294.49 million at September 30, 2026, compared to $252.96 million at September 30, 2025 and $283.10 million at June 30, 2026.

Noninterest income for the third quarter of 2026 was $35.64 million compared to $34.26 million for the third quarter of 2025 and $35.84 million for the linked quarter.

Wealth Management fee income increased to $14.49 million for the third quarter of 2026 compared to $12.95 million for the third quarter of 2025 and $13.96 million for the linked quarter. Increases are related to new account growth and increased mineral fee income due to oil and gas prices. The market value of assets under management totaled $12.35 billion at September 30, 2026, compared to $12.05 billion at September 30, 2025 and $12.23 billion at June 30, 2026.

Service charges on deposits increased to $6.69 million for the third quarter of 2026 compared with $6.45 million for the third quarter of 2025 and $6.26 million for the linked quarter. Changes are primarily due to increases in net new accounts.

Mortgage income decreased to $4.18 million for the third quarter of 2026 compared to $4.38 million for the third quarter of 2025 and $4.68 million for the linked quarter. Mortgage volume and margins were impacted by the spike in long term rates during the third quarter of 2026.

Noninterest expense for the third quarter of 2026 totaled $81.05 million compared to $73.67 million for the third quarter of 2025 and $81.11 million for the linked quarter.

Salary, commissions, and employee benefit costs (excluding the supplemental executive retirement plan "SERP" market adjustment) were $47.79 million for the third quarter of 2026, compared to $42.32 million in the third quarter of 2025 and $48.26 million for the linked quarter. The increase over the same period in 2025 is primarily due to annual merit-based and market-driven pay increases that were effective March 1st in the current year.

Noninterest expenses, excluding all salary-related costs, increased $2.18 million for the third quarter of 2026 compared to the same period in 2025 and $1.80 million compared to the linked quarter. Increases from the prior year are due to increases in legal and professional fees, software amortization and expense and advertising and public relations costs offset by decreases in operational and other losses and debit card expenses. Increases from the linked quarter are due to increased operational and other losses and legal and professional fees.

The Company's efficiency ratio was 45.59 percent for the third quarter of 2026 compared to 44.74 percent for the third quarter of 2025 and 45.94 percent for the linked quarter.

As of September 30, 2026, consolidated total assets were $15.16 billion compared to $14.84 billion at September 30, 2025 and $15.31 billion at June 30, 2026. Loans totaled $8.54 billion at September 30, 2026, compared with loans of $8.24 billion at September 30, 2025 and $8.35 billion at June 30, 2026. During the third quarter of 2026, loans grew $191.86 million, or 9.12 percent annualized, when compared to June 30, 2026 balances. Loans have grown $380.51 million, or 6.24 percent annualized, year-to-date. Deposits and repurchase agreements totaled $13.19 billion at September 30, 2026, compared to $12.90 billion at September 30, 2025 and $13.17 billion at June 30, 2026. During the third quarter of 2026, noninterest-bearing deposits grew $67.07 million, or 7.65 percent annualized, when compared to June 30, 2026 balances. Noninterest-bearing deposits have grown $144.77 million, or 5.69 percent annualized, year-to-date.

Shareholders' equity was $1.83 billion as of September 30, 2026, compared to $1.83 billion and $2.00 billion at September 30, 2025 and June 30, 2026, respectively. Shareholders' equity was down compared to the linked quarter primarily due to the increase in the unrealized loss on the securities portfolio of $209.89 million, net of tax. The unrealized loss on the securities portfolio, net of applicable tax, totaled $489.55 million at September 30, 2026, compared to unrealized losses of $308.58 million at September 30, 2025 and $279.67 million at June 30, 2026, due to changes in long term 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 81 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Austin/Bee Cave, 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 Wealth Management, 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		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Cash and due from banks	$	178,819		$	284,759		$	264,850		$	249,466		$	237,466
Interest-bearing demand deposits in banks		292,778			286,973			458,203			826,947			401,580
Federal funds sold		2,875			8,650			14,075			1,575			11,750
Investment securities		5,388,083			5,675,957			5,668,792			5,514,113			5,260,813
Loans, held-for-investment		8,538,788			8,346,931			8,285,120			8,158,276			8,243,625
Allowance for credit losses		(113,892)			(112,433)			(107,918)			(105,536)			(105,958)
Net loans, held-for-investment		8,424,896			8,234,498			8,177,202			8,052,740			8,137,667
Loans, held-for-sale		25,521			23,616			22,984			29,992			26,015
Premises and equipment, net		158,822			155,560			150,989			149,985			149,651
Goodwill		313,481			313,481			313,481			313,481			313,481
Other intangible assets		43			86			128			171			257
Other assets		377,549			322,857			316,941			308,006			302,848
Total assets	$	15,162,867		$	15,306,437		$	15,387,645		$	15,446,476		$	14,841,528

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	3,545,829		$	3,478,755		$	3,385,878		$	3,401,057		$	3,446,262
Interest-bearing deposits		9,602,314			9,641,228			9,859,359			9,944,472			9,399,986
Total deposits		13,148,143			13,119,983			13,245,237			13,345,529			12,846,248
Repurchase agreements		43,088			53,656			67,946			62,956			50,646
Borrowings		21,854			21,829			22,306			21,680			21,956
Other liabilities		117,222			114,082			108,305			98,994			92,410
Shareholders' equity		1,832,560			1,996,887			1,943,851			1,917,317			1,830,268
Total liabilities and shareholders' equity	$	15,162,867		$	15,306,437		$	15,387,645		$	15,446,476		$	14,841,528

	Quarter Ended
		2026									2025
INCOME STATEMENTS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Interest income	$	189,045		$	185,960		$	182,945		$	182,869		$	179,692
Interest expense		50,538			49,046			48,154			51,501			52,691
Net interest income		138,507			136,914			134,791			131,368			127,001
Provision for credit losses		2,034			4,183			2,291			(2,486)			24,435
Net interest income after provision for credit losses		136,473			132,731			132,500			133,854			102,566
Noninterest income		35,635			35,844			32,096			33,349			34,264
Noninterest expense		81,052			81,106			76,768			77,650			73,666
Net income before income taxes		91,056			87,469			87,828			89,553			63,164
Income tax expense		16,748			15,575			16,285			16,239			10,897
Net income	$	74,308		$	71,894		$	71,543		$	73,314		$	52,267

PER COMMON SHARE DATA
Net income - basic	$	0.52		$	0.50		$	0.50		$	0.51		$	0.37
Net income - diluted		0.52			0.50			0.50			0.51			0.36
Cash dividends declared		0.22			0.22			0.19			0.19			0.19
Book value		12.78			13.93			13.57			13.39			12.78
Tangible book value		10.59			11.75			11.38			11.20			10.59
Market value		31.74			34.60			29.45			29.87			33.65
Shares outstanding - end of period		143,397,258			143,319,824			143,279,030			143,213,102			143,188,051
Average outstanding shares - basic		143,336,014			143,280,452			143,210,755			143,180,215			143,105,224
Average outstanding shares - diluted		143,726,667			143,698,421			143,608,079			143,542,801			143,474,169

PERFORMANCE RATIOS
Return on average assets		1.93	%		1.89	%		1.89	%		1.94	%		1.44	%
Return on average equity		15.02			14.70			14.83			15.62			11.85
Return on average tangible equity		17.87			17.49			17.66			18.78			14.44
Net interest margin (tax equivalent)		3.91			3.90			3.86			3.81			3.80
Efficiency ratio		45.59			45.94			44.98			46.10			44.74

	Nine Months Ended
	Sept. 30,
INCOME STATEMENTS		2026			2025
Interest income	$	557,950		$	519,612
Interest expense		147,738			150,092
Net interest income		410,212			369,520
Provision for credit losses		8,508			31,095
Net interest income after provisions for credit losses		401,704			338,425
Noninterest income		103,575			97,366
Noninterest expense		238,926			215,736
Net income before income taxes		266,353			220,055
Income tax expense		48,608			39,785
Net income	$	217,745		$	180,270

PER COMMON SHARE DATA
Net income - basic	$	1.52		$	1.26
Net income - diluted		1.51			1.26
Cash dividends declared		0.63			0.56
Book value		12.78			12.78
Tangible book value		10.59			10.59
Market value	$	31.74		$	33.65
Shares outstanding - end of period		143,397,258			143,188,051
Average outstanding shares - basic		143,276,199			143,026,664
Average outstanding shares - diluted		143,741,994			143,422,534

PERFORMANCE RATIOS
Return on average assets		1.90	%		1.70	%
Return on average equity		14.85			14.22
Return on average tangible equity		17.68			17.46
Net interest margin (tax equivalent)		3.89			3.79
Efficiency ratio		45.51			45.33

FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands)

	Quarter Ended
		2026									2025
ALLOWANCE FOR LOAN LOSSES		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Balance at beginning of period	$	112,433		$	107,918		$	105,536		$	105,958		$	102,792
Loans charged-off		(1,740)			(961)			(1,174)			(3,387)			(22,612)
Loan recoveries		805			1,561			818			2,996			272
Net recoveries (charge-offs)		(935)			600			(356)			(391)			(22,340)
Provision for loan losses		2,394			3,915			2,738			(31)			25,506
Balance at end of period	$	113,892		$	112,433		$	107,918		$	105,536		$	105,958

ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	6,208		$	5,940		$	6,387		$	8,842		$	9,914
Provision for unfunded commitments		(360)			268			(447)			(2,455)			(1,072)
Balance at end of period	$	5,848		$	6,208		$	5,940		$	6,387		$	8,842

Allowance for loan losses /
period-end loans held-for-investment		1.33	%		1.35 %	%		1.30	%		1.29	%		1.29	%
Allowance for loan losses /
nonperforming loans		199.19			174.94			206.16			188.41			187.39
Net charge-offs (recoveries) / average total loans
(annualized)		0.04			(0.03)			0.02			0.02			1.07

	Quarter Ended
		2026									2025
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Commercial:
C&I	$	1,164,597		$	1,087,656		$	1,149,931		$	1,116,461		$	1,174,770
Municipal		444,341			419,070			384,473			342,501			347,559
Total Commercial		1,608,938			1,506,726			1,534,404			1,458,962			1,522,329
Agricultural		79,796			81,786			77,583			95,776			88,820
Real Estate:
Construction & Development		1,089,540			1,191,082			1,169,037			1,157,865			1,214,649
Farm		349,484			344,483			329,151			327,625			322,710
Non-Owner Occupied CRE		919,847			831,929			825,771			832,816			802,675
Owner Occupied CRE		1,161,530			1,144,093			1,132,114			1,120,608			1,119,425
Residential		2,358,106			2,322,000			2,322,097			2,285,830			2,308,708
Total Real Estate		5,878,507			5,833,587			5,778,170			5,724,744			5,768,167
Consumer:
Auto		817,771			776,433			751,283			732,351			718,501
Non-Auto		153,776			148,399			143,680			146,443			145,808
Total Consumer		971,547			924,832			894,963			878,794			864,309

Total loans held-for-investment	$	8,538,788		$	8,346,931		$	8,285,120		$	8,158,276		$	8,243,625

SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	65,080		$	48,486		$	66,864		$	66,058		$	76,647
Substandard		229,405			234,618			222,895			189,548			176,311
Total classified loans	$	294,485		$	283,104		$	289,759		$	255,606		$	252,958

NONPERFORMING ASSETS
Nonaccrual loans	$	57,158		$	63,310		$	52,129		$	55,121		$	56,394
Accruing loans 90 days past due		19			958			218			892			151
Total nonperforming loans		57,177			64,268			52,347			56,013			56,545
Foreclosed assets		3,277			2,770			1,962			479			1,997
Total nonperforming assets	$	60,454		$	67,038		$	54,309		$	56,492		$	58,542

As a % of loans held-for-investment and foreclosed assets		0.71	%		0.80	%		0.66	%		0.69	%		0.71	%
As a % of end of period total assets		0.40			0.44			0.35			0.37			0.39

	Quarter Ended
		2026									2025
CAPITAL RATIOS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Common equity Tier 1 capital ratio		20.45	%		20.40	%		20.23	%		19.99	%		19.10	%
Tier 1 capital ratio		20.45			20.40			20.23			19.99			19.10
Total capital ratio		21.66			21.62			21.42			21.17			20.29
Tier 1 leverage ratio		13.12			12.88			12.58			12.55			12.34
Tangible common equity ratio		10.23			11.23			10.81			10.60			10.44
Equity/Assets ratio		12.09			13.05			12.63			12.41			12.33

	Quarter Ended
		2026									2025
NONINTEREST INCOME		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Wealth Management fees	$	14,492		$	13,960		$	13,363		$	13,512		$	12,950
Service charges on deposits		6,693			6,263			6,077			6,140			6,447
Debit card fees		5,953			5,584			5,245			5,791			5,333
Credit card fees		721			734			651			678			699
Gain on sale and fees on mortgage loans		4,175			4,679			4,277			4,216			4,375
Net gain (loss) on sale of securities		(9)			-			-			-			-
Net gain (loss) on sale of foreclosed assets		(2)			(19)			(56)			(12)			(122)
Net gain (loss) on sale of assets		(1)			(374)			-			-			-
SERP Market Adjustment		16			1,397			(287)			(36)			286
Other noninterest income		3,597			3,620			2,826			3,060			4,296
Total noninterest income	$	35,635		$	35,844		$	32,096		$	33,349		$	34,264

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding SERP and Profit Sharing	$	44,876		$	44,819		$	43,246		$	42,445		$	40,395
SERP Market Adjustment		16			1,397			(287)			(36)			286
Profit sharing expense		2,917			3,444			3,023			4,819			1,924
Net occupancy expense		3,837			3,728			3,630			3,458			3,545
Equipment expense		2,306			2,169			2,158			2,128			2,395
FDIC insurance premiums		1,709			1,767			1,560			1,695			1,635
Debit card expense		3,029			3,043			3,108			3,265			3,512
Legal, tax and professional fees		4,527			4,159			3,834			3,079			3,332
Audit fees		406			441			455			531			536
Printing, stationery and supplies		490			292			623			528			456
Amortization of intangible assets		42			43			43			86			86
Advertising, meals and public relations		2,050			1,849			1,701			1,923			1,714
Operational and other losses		1,333			801			1,000			1,583			1,957
Software amortization and expense		5,067			5,053			4,594			4,456			4,280
Other noninterest expense		8,447			8,101			8,080			7,690			7,613
Total noninterest expense	$	81,052		$	81,106		$	76,768		$	77,650		$	73,666

TAX EQUIVALENT YIELD ADJUSTMENT	$	3,625		$	3,799		$	3,791		$	3,709		$	3,406

	Nine Months Ended
	Sept. 30,
NONINTEREST INCOME		2026		2025
Wealth Management fees	$	41,815	$	38,349
Service charges on deposits		19,033		18,749
Debit card fees		16,782		15,519
Credit card fees		2,106		1,983
Gain on sale and fees on mortgage loans		13,131		11,333
Net gain (loss) on sale of securities		(9)		-
Net gain (loss) on sale of foreclosed assets		(77)		43
Net gain (loss) on sale of assets		(375)		6
SERP Market Adjustment		1,126		497
Other noninterest income		10,043		10,887
Total noninterest income	$	103,575	$	97,366

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding SERP and Profit Sharing	$	132,941	$	119,175
SERP Market Adjustment		1,126		497
Profit sharing expense		9,384		7,650
Net occupancy expense		11,195		10,865
Equipment expense		6,633		7,194
FDIC insurance premiums		5,036		4,795
Debit card expense		9,180		10,193
Legal, tax and professional fees		12,520		9,541
Audit fees		1,302		1,450
Printing, stationery and supplies		1,405		1,411
Amortization of intangible assets		128		266
Advertising, meals and public relations		5,600		5,047
Operational and other losses		3,134		3,217
Software amortization and expense		14,714		12,032
Other noninterest expense		24,628		22,403
Total noninterest expense	$	238,926	$	215,736

TAX EQUIVALENT YIELD ADJUSTMENT	$	11,215	$	9,032

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)

	Three Months Ended						Three Months Ended
	Sept. 30, 2026						June 30, 2026
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	6,005	$	60	3.96	%	$	4,642	$	43	3.72	%
Interest-bearing demand deposits in nonaffiliated banks		282,340		2,775	3.90			333,359		3,074	3.70
Taxable securities		4,104,496		35,024	3.41			4,091,117		33,666	3.29
Tax-exempt securities		1,568,453		12,950	3.30			1,709,709		14,134	3.31
Loans		8,468,672		141,862	6.65			8,317,815		138,841	6.70
Total interest-earning assets		14,429,966	$	192,671	5.30	%		14,456,642	$	189,758	5.26	%
Noninterest-earning assets		871,586						833,268
Total assets	$	15,301,552					$	15,289,910
Interest-bearing liabilities:
Deposits	$	9,630,365	$	50,252	2.07	%	$	9,676,860	$	48,697	2.02	%
Repurchase Agreements		57,939		206	1.41			60,403		223	1.48
Borrowings		22,686		81	1.42			28,459		125	1.76
Total interest-bearing liabilities		9,710,990	$	50,539	2.06	%		9,765,722	$	49,045	2.01	%
Noninterest-bearing deposits		3,508,797						3,445,033
Other noninterest-bearing liabilities		118,844						116,944
Shareholders' equity		1,962,921						1,962,211
Total liabilities and shareholders' equity	$	15,301,552					$	15,289,910

Net interest income and margin (tax equivalent)			$	142,132	3.91	%			$	140,713	3.90	%

	Three Months Ended						Three Months Ended
	Mar. 31, 2026						Dec. 31, 2025
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	4,565	$	40	3.55	%	$	6,565	$	62	3.75	%
Interest-bearing demand deposits in nonaffiliated banks		461,579		4,209	3.70			434,445		4,284	3.91
Taxable securities		4,076,690		32,283	3.17			3,683,108		29,231	3.17
Tax-exempt securities		1,726,765		14,184	3.29			1,712,261		14,144	3.30
Loans		8,273,995		136,020	6.67			8,241,265		138,857	6.68
Total interest-earning assets		14,543,594	$	186,736	5.21	%		14,077,644	$	186,578	5.26	%
Noninterest-earning assets		821,635						893,739
Total assets	$	15,365,229					$	14,971,383
Interest-bearing liabilities:
Deposits	$	9,824,362	$	47,851	1.98	%	$	9,476,716	$	51,207	2.14	%
Repurchase Agreements		62,849		229	1.48			56,573		219	1.54
Borrowings		22,155		74	1.35			22,113		75	1.35
Total interest-bearing liabilities		9,909,366	$	48,154	1.97	%		9,555,402	$	51,501	2.14	%
Noninterest-bearing deposits		3,401,092						3,454,171
Other noninterest-bearing liabilities		97,986						99,623
Shareholders' equity		1,956,785						1,862,187
Total liabilities and shareholders' equity	$	15,365,229					$	14,971,383

Net interest income and margin (tax equivalent)			$	138,582	3.86	%			$	135,077	3.81	%

	Three Months Ended
	Sept. 30, 2025
		Average		Tax Equivalent	Yield /
		Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	10,711	$	130	4.82	%
Interest-bearing demand deposits in nonaffiliated banks		216,739		2,387	4.37
Taxable securities		3,560,347		26,539	2.98
Tax-exempt securities		1,564,767		12,906	3.30
Loans		8,249,113		141,136	6.79
Total interest-earning assets		13,601,677	$	183,098	5.34	%
Noninterest-earning assets		826,660
Total assets	$	14,428,337
Interest-bearing liabilities:
Deposits	$	9,051,463	$	52,010	2.28	%
Repurchase Agreements		50,051		210	1.66
Borrowings		56,198		471	3.33
Total interest-bearing liabilities		9,157,712	$	52,691	2.28	%
Noninterest-bearing deposits		3,419,378
Other noninterest-bearing liabilities		101,268
Shareholders' equity		1,749,979
Total liabilities and shareholders' equity	$	14,428,337

Net interest income and margin (tax equivalent)			$	130,407	3.80	%

	Nine Months Ended						Nine Months Ended
	Sept. 30, 2026						Sept. 30, 2025
		Average		Tax Equivalent	Yield /			Average		Tax Equivalent	Yield /
		Balance		Interest	Rate			Balance		Interest	Rate
Interest-earning assets:
Federal funds sold	$	5,076	$	143	3.77	%	$	9,240	$	334	4.83	%
Interest-bearing deposits in nonaffiliated banks		358,436		10,058	3.75			293,984		9,752	4.44
Taxable securities		4,090,870		100,973	3.29			3,512,304		76,816	2.92
Tax exempt securities		1,667,729		41,268	3.30			1,469,158		33,629	3.05
Loans		8,354,207		416,723	6.67			8,083,638		408,113	6.75
Total interest-earning assets		14,476,318	$	569,165	5.26	%		13,368,324	$	528,644	5.29	%
Noninterest-earning assets		842,359						826,449
Total assets	$	15,318,677					$	14,194,773
Interest-bearing liabilities:
Deposits	$	9,709,818	$	146,800	2.02	%	$	8,953,017	$	148,291	2.21	%
Repurchase Agreements		60,379		658	1.46			52,801		641	1.62
Borrowings		24,436		280	1.53			52,380		1,160	2.96
Total interest-bearing liabilities		9,794,633	$	147,738	2.02	%		9,058,198	$	150,092	2.22	%
Noninterest-bearing deposits		3,452,035						3,356,999
Other noninterest-bearing liabilities		111,334						85,148
Shareholders' equity		1,960,675						1,694,428
Total liabilities and shareholders' equity	$	15,318,677					$	14,194,773

Net interest income and margin (tax equivalent)			$	421,427	3.89	%			$	378,552	3.79	%

View original content:https://www.prnewswire.com/news-releases/first-financial-bankshares-announces-third-quarter-2026-earnings-302910462.html

SOURCE First Financial Bankshares, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were First Financial Bankshares’ third-quarter 2026 earnings?

First Financial Bankshares earned $74.31 million, or $0.52 per diluted share, in the third quarter of 2026. Earnings were $52.27 million, or $0.36 per diluted share, a year earlier and $71.89 million, or $0.50 per diluted share, in the second quarter of 2026.

Why did First Financial Bankshares’ mortgage income decline in the third quarter of 2026?

The company attributed pressure on mortgage volume and margins to a spike in long-term rates during the third quarter of 2026. Mortgage income declined to $4.18 million from $4.38 million a year earlier and $4.68 million in the preceding quarter.

What drove First Financial Bankshares’ higher noninterest expenses compared with the third quarter of 2025?

Higher pay costs and increases in legal and professional fees, software amortization and expense, and advertising and public relations costs contributed to the increase. Annual merit-based and market-driven pay increases took effect March 1, 2026. Lower operational and other losses and debit card expenses partly offset the increases outside salary-related costs.

FIRST FINANCIAL BANKSHARES ANNOUNCES THIRD QUARTER 2026 EARNINGS