"This quarter was impacted by a $21.55 million credit loss believed to be due to fraudulent activity associated with a commercial borrower. We have reviewed our portfolio to look for systemic issues and believe this to be isolated. We have initiated legal action and are continuing to work with law enforcement. Despite this setback, our core earnings trends remain positive, with year-to-date earnings growth of nearly 12 percent compared to 2024." said F. Scott Dueser, Chairman and CEO of First Financial Bankshares, Inc. "We are optimistic as we move into the final quarter of the year and will remain focused on liquidating the collateral of the loan and moving the bank forward with continued growth and profitability by keeping our customers, shareholders, and employees first."
Net interest income for the third quarter of 2025 was $127.00 million compared to $107.11 million in the same quarter last year and $123.73 million for the second quarter of 2025. The net interest margin, on a taxable equivalent basis, was 3.80 percent for the third quarter of 2025 compared to 3.50 percent for the third quarter of 2024 and 3.81 percent in the second quarter of 2025. Average interest-earning assets were $13.60 billion for the third quarter of 2025 compared to $12.48 billion for the same quarter a year ago.
The Company recorded a provision for credit losses of $24.44 million for the third quarter of 2025 compared to a provision for credit losses of $6.12 million and $3.13 million for the third quarter of 2024 and second quarter of 2025, respectively. On September 30, 2025, the allowance for credit losses totaled $105.96 million, or 1.29 percent of loans held-for-investment ("loans" hereafter), compared to $99.94 million, or 1.29 percent of loans at September 30, 2024. Additionally, the reserve for unfunded commitments totaled $8.84 million at September 30, 2025 compared to $8.00 million at September 30, 2024.
For the third quarter of 2025, net charge-offs totaled $22.34 million compared to net charge-offs of $786 thousand for the third quarter of 2024. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.71 percent at September 30, 2025, versus 0.79 percent at June 30, 2025 and 0.83 percent at September 30, 2024. Classified loans totaled $252.96 million at September 30, 2025, compared to $229.92 million at September 30, 2024.
Third quarter provision and charge offs were impacted by the aforementioned $21.55 million charge off of a commercial loan relationship. While we are pursuing all possible avenues of recovery, the amount and timing of any potential recovery cannot currently be determined.
Noninterest income for the third quarter of 2025 was $34.26 million compared to $32.36 million for the third quarter of 2024. Notable changes for the third quarter of 2025 when compared to the same quarter a year ago are as follows:
Mortgage income increased to $4.38 million for the third quarter of 2025 compared to $3.36 million for the third quarter of 2024 due to improved origination volume related to lower interest rates and the strategic restructuring of the mortgage lending team.
Trust fee income increased $1.26 million to $12.95 million, or 10.74 percent, compared to trust fee income of $11.69 million in the third quarter of 2024. Trust revenue has increased primarily due to growth in assets under management to $12.05 billion as of September 30, 2025, compared to $10.86 billion at September 30, 2024.
Noninterest expense for the third quarter of 2025 totaled $73.67 million compared to $66.01 million for the third quarter of 2024. Notable changes for the third quarter of 2025 when compared to the same quarter a year ago are as follows:
Salary, commissions, and employee benefit costs increased to $42.61 million for the third quarter of 2025, compared to $37.50 million in the third quarter of 2024. The increase from the prior year is related primarily to increases of $3.12 million in salaries and $1.47 million in officer bonus and incentive accruals related to annualized earnings growth.
Noninterest expenses, excluding salary related costs, increased $2.55 million for the third quarter of 2025 compared to the same period in 2024 largely due to increases in software amortization and other operational losses.
The Company's efficiency ratio was 44.74 percent for the third quarter of 2025 compared to 46.45 percent for the third quarter of 2024. The improvement from the same period in the prior year is primarily due to the increase in net interest income.
As of September 30, 2025, consolidated total assets were $14.84 billion compared to $13.58 billion at September 30, 2024. Loans totaled $8.24 billion at September 30, 2025, compared with loans of $7.72 billion at September 30, 2024. During the third quarter of 2025, loans grew $168.68 million, or 8.29 percent annualized, when compared to June 30, 2025, balances. Deposits and repurchase agreements totaled $12.90 billion at September 30, 2025, compared to $11.81 billion at September 30, 2024. During the third quarter of 2025, core deposits and repurchase agreements grew $250.45 million, or 7.95 percent annualized, when compared to June 30, 2025, balances. We also held $150.00 million of ICS one-way deposits as of September 30, 2025, that we were able to obtain at an attractive rate. No ICS one-way deposits were outstanding at June 30, 2025.
Shareholders' equity was $1.83 billion as of September 30, 2025, compared to $1.66 billion at September 30, 2024, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $308.58 million at September 30, 2025, compared to an unrealized loss of $373.46 million at June 30, 2025 and $329.82 million at September 30, 2024.
About First Financial Bankshares, Inc.
Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that through its wholly-owned 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, Lumberton, Keller, Kingwood, 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 and 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; the accuracy of our estimates of future credit losses; 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
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
Cash and due from banks
$
237,466
$
264,000
$
232,943
$
259,996
$
296,188
Interest-bearing demand deposits in banks
401,580
435,612
682,362
503,417
287,476
Federal funds sold
11,750
8,750
11,750
-
-
Investment securities
5,260,813
4,886,548
4,760,431
4,617,759
4,612,299
Loans, held-for-investment
8,243,625
8,074,944
7,945,611
7,913,098
7,723,191
Allowance for credit losses
(105,958)
(102,792)
(101,080)
(98,325)
(99,936)
Net loans, held-for-investment
8,137,667
7,972,152
7,844,531
7,814,773
7,623,255
Loans, held-for-sale
26,015
33,233
14,348
8,235
20,114
Premises and equipment, net
149,651
148,999
150,589
151,904
151,204
Goodwill
313,481
313,481
313,481
313,481
313,481
Other intangible assets
257
343
428
523
671
Other assets
302,848
313,723
301,251
309,330
278,244
Total assets
$
14,841,528
$
14,376,841
$
14,312,114
$
13,979,418
$
13,582,932
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits
$
3,446,262
$
3,439,059
$
3,356,553
$
3,348,041
$
3,303,143
Interest-bearing deposits
9,399,986
9,009,357
9,110,218
8,751,133
8,452,718
Total deposits
12,846,248
12,448,416
12,466,771
12,099,174
11,755,861
Repurchase agreements
50,646
48,026
56,606
61,416
57,557
Borrowings
21,956
22,153
26,978
135,603
25,978
Trade date payable
-
24,965
-
-
5,416
Other liabilities
92,410
95,929
81,498
76,665
75,929
Shareholders' equity
1,830,268
1,737,352
1,680,261
1,606,560
1,662,191
Total liabilities and shareholders' equity
$
14,841,528
$
14,376,841
$
14,312,114
$
13,979,418
$
13,582,932
Quarter Ended
2025
2024
INCOME STATEMENTS
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Sept. 30,
Interest income
$
179,692
$
172,810
$
167,110
$
165,792
$
159,958
Interest expense
52,691
49,080
48,321
49,675
52,849
Net interest income
127,001
123,730
118,789
116,117
107,109
Provision for credit losses
24,435
3,132
3,528
1,003
6,123
Net interest income after provision for credit losses
102,566
120,598
115,261
115,114
100,986
Noninterest income
34,264
32,873
30,230
30,977
32,362
Noninterest expense
73,666
71,735
70,335
70,099
66,012
Net income before income taxes
63,164
81,736
75,156
75,992
67,336
Income tax expense
10,897
15,078
13,810
13,671
12,028
Net income
$
52,267
$
66,658
$
61,346
$
62,321
$
55,308
PER COMMON SHARE DATA
Net income - basic
$
0.37
$
0.47
$
0.43
$
0.44
$
0.39
Net income - diluted
0.36
0.47
0.43
0.43
0.39
Cash dividends declared
0.19
0.19
0.18
0.18
0.18
Book value
12.78
12.14
11.75
11.24
11.63
Tangible book value
10.59
9.95
9.55
9.04
9.43
Market value
33.65
35.98
35.92
36.05
37.01
Shares outstanding - end of period
143,188,051
143,077,619
143,019,433
142,944,704
142,906,070
Average outstanding shares - basic
143,105,224
143,023,544
142,949,514
142,898,110
142,853,215
Average outstanding shares - diluted
143,474,169
143,378,505
143,355,148
143,352,067
143,188,857
PERFORMANCE RATIOS
Return on average assets
1.44
%
1.89
%
1.78
%
1.81
%
1.66
%
Return on average equity
11.85
15.82
15.12
15.17
14.00
Return on average tangible equity
14.44
19.43
18.68
18.78
17.49
Net interest margin (tax equivalent)
3.80
3.81
3.74
3.67
3.50
Efficiency ratio
44.74
44.97
46.36
46.81
46.45
Nine Months Ended
Sept. 30,
INCOME STATEMENTS
2025
2024
Interest income
$
519,612
$
463,126
Interest expense
150,092
152,502
Net interest income
369,520
310,624
Provision for credit losses
31,095
12,817
Net interest income after provisions for credit losses
338,425
297,807
Noninterest income
97,366
93,012
Noninterest expense
215,736
194,965
Net income before income taxes
220,055
195,854
Income tax expense
39,785
34,664
Net income
$
180,270
$
161,190
PER COMMON SHARE DATA
Net income - basic
$
1.26
$
1.13
Net income - diluted
1.26
1.13
Cash dividends declared
0.56
0.54
Book value
12.78
11.63
Tangible book value
10.59
9.43
Market value
$
33.65
$
37.01
Shares outstanding - end of period
143,188,051
142,906,070
Average outstanding shares - basic
143,026,664
142,797,621
Average outstanding shares - diluted
143,422,534
143,159,652
PERFORMANCE RATIOS
Return on average assets
1.70
%
1.63
%
Return on average equity
14.22
14.28
Return on average tangible equity
17.46
18.04
Net interest margin (tax equivalent)
3.79
3.44
Efficiency ratio
45.33
47.39
FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)
Quarter Ended
