ABILENE, Texas, April 17, 2025 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings for the first quarter of 2025 of $61.35 million compared to earnings of $53.40 million for the same quarter a year ago. Basic and diluted earnings per share were $0.43 for the quarter ended March 31, 2025 and $0.37 for the quarter ended March 31, 2024.

"Our improved results from first quarter 2024 were primarily due to an increase in net interest income related to our balance sheet growth over the previous year. Strong deposit inflows have supported loan growth as well as continued bond investments which has supported margin growth in addition to bolstering our liquidity," said F. Scott Dueser, Chairman and CEO. "While markets have been volatile recently, our Company remains financially strong, sound and secure as reflected in our capital levels, diversified deposit base and access to multiple liquidity sources. I appreciate our team who live our Non-negotiables every day which provides our customers with outstanding service and helped us attain the honor of being the 3rd Best Bank in the Country by Forbes Magazine," added Mr. Dueser.

Net interest income for the first quarter of 2025 was $118.79 million compared to $116.12 million for the fourth quarter of 2024 and $100.24 million for the first quarter of 2024. The net interest margin, on a taxable equivalent basis, was 3.74 percent in the first quarter of 2025 compared to 3.67 percent in the fourth quarter of 2024 and 3.34 percent in the first quarter of 2024. Average interest-earning assets were $13.16 billion for the first quarter of 2025 compared to $12.37 billion for the same quarter a year ago.

The Company recorded a provision for credit losses of $3.53 million for the first quarter of 2025 compared to a provision for credit losses of $808 thousand for the first quarter of 2024. At March 31, 2025, the allowance for credit losses totaled $101.08 million, or 1.27 percent of loans held-for-investment ("loans" hereafter), compared to $89.56 million, or 1.24 percent of loans, at March 31, 2024. Additionally, the reserve for unfunded commitments totaled $9.21 million at March 31, 2025 compared to $7.46 million at March 31, 2024.

Net charge-offs totaled $236 thousand for the first quarter of 2025 compared to net charge-offs of $428 thousand for the first quarter of 2024. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.78 percent at March 31, 2025, compared with 0.51 percent at March 31, 2024.  Classified loans totaled $245.61 million at March 31, 2025, compared to $201.59 million at March 31, 2024.

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Noninterest income for the first quarter of 2025 was $30.23 million compared to $29.38 million for the first quarter of 2024, due to the following:

Trust fees increased to $12.65 million for the first quarter of 2025 compared to $11.38 million for the first quarter of 2024, driven by the increase in market value of trust assets managed to $10.86 billion at March 31, 2025, compared to $10.15 billion at March 31, 2024. Service charges on deposits decreased to $6.18 million for the first quarter of 2025 compared with $6.25 million for the first quarter of 2024, driven by a decrease in overdraft fees. Mortgage income decreased to $2.83 million for the first quarter of 2025 compared to $3.13 million for the first quarter of 2024, due to lower volume in mortgage loans originated.

Noninterest expense for the first quarter of 2025 totaled $70.34 million compared to $63.94 million for the first quarter of 2024, due to the following:

Salary, commissions, and employee benefit costs increased to $42.14 million for the first quarter of 2025, compared to $36.68 million in the first quarter of 2024, primarily resulting from merit-based and market driven pay increases, an increase of $1.31 million in profit sharing accruals, a $780 thousand increase in stock-based compensation and an increase of $646 thousand in officer incentive accruals. 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 $936 thousand for the first quarter of 2025 compared to the same period in 2024, largely due to increases in software amortization and debit card expenses partially offset by decreases in FDIC insurance expense and operational and other losses.

The Company's efficiency ratio was 46.36 percent for the first quarter of 2025 compared to 48.37 percent for the first quarter of 2024.

As of March 31, 2025, consolidated total assets were $14.31 billion compared to $13.19 billion at March 31, 2024. Loans totaled $7.95 billion at March 31, 2025, compared with loans of $7.23 billion at March 31, 2024. During the first quarter of 2025, loans grew $32.51 million, or 1.67 percent annualized, when compared to December 31, 2024 balances. Deposits and Repurchase Agreements totaled $12.52 billion at March 31, 2025, compared to $11.60 billion at March 31, 2024. During the first quarter of 2025, Deposits and Repurchase Agreements grew $362.79 million, or 12.10 percent annualized, when compared to December 31, 2024 balances.

Shareholders' equity was $1.68 billion as of March 31, 2025, compared to $1.61 billion and $1.49 billion at December 31, 2024 and March 31, 2024, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $388.89 million at March 31, 2025, compared to an unrealized loss of $424.29 million and $441.23 million at December 31, 2024 and March 31, 2024, respectively.

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 2025   2024  ASSETS  Mar. 31,    Dec. 31,    Sept. 30,    June 30,   Mar. 31,  Cash and due from banks $ 232,943  $ 259,996  $ 296,188  $ 263,262  $ 222,464  Interest-bearing demand deposits in banks  682,362   503,417   287,476   103,315   365,397  Federal funds sold  11,750   -   -   2,800   12,300  Investment securities  4,760,431   4,617,759   4,612,299   4,573,024   4,658,526  Loans, held-for-investment  7,945,611   7,913,098   7,723,191   7,519,733   7,229,410  Allowance for credit losses  (101,080)   (98,325)   (99,936)   (95,170)   (89,562)  Net loans, held-for-investment   7,844,531   7,814,773   7,623,255   7,424,563   7,139,848  Loans, held-for-sale  14,348   8,235   20,114   19,668   16,109  Premises and equipment, net  150,589   151,904   151,204   153,075   151,953  Goodwill  313,481   313,481   313,481   313,481   313,481  Other intangible assets  428   523   671   828   984  Other assets  301,251   309,330   278,244   310,059   310,096  Total assets $ 14,312,114  $ 13,979,418  $ 13,582,932  $ 13,164,075  $ 13,191,158   LIABILITIES AND SHAREHOLDERS'  EQUITY  Noninterest-bearing deposits $ 3,356,553  $ 3,348,041  $ 3,303,143  $ 3,289,032  $ 3,348,147  Interest-bearing deposits  9,110,218   8,751,133   8,452,718   8,120,125   7,941,661  Total deposits  12,466,771   12,099,174   11,755,861   11,409,157   11,289,808  Repurchase agreements  56,606   61,416   57,557   138,950   307,297  Borrowings  26,978   135,603   25,978   23,703   26,803  Trade date payable  -   -   5,416   -   -  Other liabilities  81,498   76,665   75,929   73,239   75,883  Shareholders' equity  1,680,261   1,606,560   1,662,191   1,519,026   1,491,367  Total liabilities and shareholders' equity $ 14,312,114  $ 13,979,418  $ 13,582,932  $ 13,164,075  $ 13,191,158   Quarter Ended 2025   2024  INCOME STATEMENTS  Mar. 31,    Dec. 31,   Sept. 30,   June 30,   Mar. 31,  Interest income $ 167,110  $ 165,792  $ 159,958  $ 153,673  $ 149,495  Interest expense  48,321   49,675   52,849   50,400   49,253  Net interest income  118,789   116,117   107,109   103,273   100,242  Provision for credit losses  3,528   1,003   6,123   5,888   808  Net interest income after provision for credit losses  115,261   115,114   100,986   97,385   99,434  Noninterest income  30,230   30,977   32,362   31,268   29,383  Noninterest expense  70,335   70,099   66,012   65,012   63,940  Net income before income taxes  75,156   75,992   67,336   63,641   64,877  Income tax expense  13,810   13,671   12,028   11,156   11,480  Net income $ 61,346  $ 62,321  $ 55,308  $ 52,485  $ 53,397   PER COMMON SHARE DATA  Net income - basic $ 0.43  $ 0.44  $ 0.39  $ 0.37  $ 0.37  Net income - diluted  0.43   0.43   0.39   0.37   0.37  Cash dividends declared  0.18   0.18   0.18   0.18   0.18  Book value  11.75   11.24   11.63   10.63   10.44  Tangible book value  9.55   9.04   9.43   8.43   8.24  Market value  35.92   36.05   37.01   29.53   32.81  Shares outstanding - end of period  143,019,433   142,944,704   142,906,070   142,848,909   142,817,159  Average outstanding shares - basic  142,949,514   142,898,110   142,853,215   142,814,363   142,724,674  Average outstanding shares - diluted  143,355,148   143,352,067   143,188,857   143,088,930   143,029,449   PERFORMANCE RATIOS  Return on average assets  1.78 %  1.81 %  1.66 %  1.61 %  1.62 % Return on average equity  15.12   15.17   14.00   14.43   14.43  Return on average tangible equity  18.68   18.78   17.49   18.38   18.29  Net interest margin (tax equivalent)  3.74   3.67   3.50   3.48   3.34  Efficiency ratio  46.36   46.81   46.45   47.41   48.37   FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands)  Quarter Ended 2025   2024  ALLOWANCE FOR LOAN LOSSES  Mar. 31,    Dec. 31,    Sept. 30,    June 30,   Mar. 31,  Balance at beginning of period $ 98,325  $ 99,936  $ 95,170  $ 89,562  $ 88,734  Loans charged-off  (946)   (2,184)   (1,279)   (702)   (850)  Loan recoveries  710   243   493   400   422  Net recoveries (charge-offs)  (236)   (1,941)   (786)   (302)   (428)  Provision for loan losses  2,991   330   5,552   5,910   1,256  Balance at end of period $ 101,080  $ 98,325  $ 99,936  $ 95,170  $ 89,562   ALLOWANCE FOR UNFUNDED COMMITMENTS  Balance at beginning of period $ 8,677  $ 8,004  $ 7,433  $ 7,455  $ 7,903  Provision for unfunded commitments  537   673   571   (22)   (448)  Balance at end of period $ 9,214  $ 8,677  $ 8,004  $ 7,433  $ 7,455   Allowance for loan losses /  period-end loans held-for-investment  1.27 %  1.24 %  1.29 %  1.27 %  1.24 % Allowance for loan losses /  nonperforming loans  164.16   158.02   156.44   157.20   247.48  Net charge-offs (recoveries) / average total loans  (annualized)  0.01   0.10   0.04   0.02   0.02   As of  2025   2024  COMPOSITION OF LOANS HELD-FOR-INVESTMENT  Mar. 31,    Dec. 31,   Sept. 30,    June 30,   Mar. 31,  Commercial:  C&I $ 1,144,429  $ 1,176,993  $ 1,175,774  $ 1,141,990  $ 1,191,516  Municipal  338,303   369,246   333,732   359,124   211,013  Total Commercial  1,482,732   1,546,239   1,509,506   1,501,114   1,402,529  Agricultural  90,186   95,543   83,269   86,186   87,882  Real Estate:  Construction & Development  1,098,069   1,054,603   1,013,810   986,394   921,773  Farm  331,464   339,665   315,720   318,597   311,002  Non-Owner Occupied CRE  753,898   805,566   825,928   815,713   853,721  Owner Occupied CRE  1,142,618   1,083,100   1,086,750   1,049,715   1,032,845  Residential  2,217,740   2,196,767   2,112,196   1,990,604   1,918,573  Total Real Estate  5,543,789   5,479,701   5,354,404   5,161,023   5,037,914  Consumer:  Auto  679,189   638,560   618,103   615,192   549,837  Non-Auto  149,715   153,055   157,909   156,218   151,248  Total Consumer  828,904   791,615   776,012   771,410   701,085   Total loans held-for-investment $ 7,945,611  $ 7,913,098  $ 7,723,191  $ 7,519,733  $ 7,229,410   SUMMARY OF LOAN CLASSIFICATION  Special Mention $ 46,103  $ 42,563  $ 41,362  $ 57,864  $ 62,623  Substandard  199,509   191,288   188,561   161,399   138,964  Doubtful  -   -   -   -   -  Total classified loans $ 245,612  $ 233,851  $ 229,923  $ 219,263  $ 201,587   NONPERFORMING ASSETS  Nonaccrual loans $ 60,430  $ 61,938  $ 63,378  $ 60,311  $ 36,157  Accruing loans 90 days past due  1,143   287   504   231   33  Total nonperforming loans  61,573   62,225   63,882   60,542   36,190  Foreclosed assets  115   871   535   647   1,014  Total nonperforming assets $ 61,688  $ 63,096  $ 64,417  $ 61,189  $ 37,204   As a % of loans held-for-investment and foreclosed assets  0.78 %  0.80 %  0.83 %  0.81 %  0.51 % As a % of end of period total assets  0.43   0.45   0.47   0.46   0.28   Quarter Ended 2025      2024  CAPITAL RATIOS  Mar. 31,    Dec. 31,   Sept. 30,    June 30,   Mar. 31,  Common equity Tier 1 capital ratio  19.12 %  18.83 %  18.83 %  18.42 %  18.60 % Tier 1 capital ratio  19.12   18.83   18.83   18.42   18.60  Total capital ratio  20.31   20.00   20.03   19.55   19.70  Tier 1 leverage ratio  12.46   12.49   12.53   12.40   12.12  Tangible common equity ratio  9.76   9.46   10.16   9.38   9.14  Equity/Assets ratio  11.74   11.49   12.24   11.54   11.31   Quarter Ended 2025      2024  NONINTEREST INCOME  Mar. 31,    Dec. 31,   Sept. 30,    June 30,    Mar. 31,  Trust fees $ 12,653  $ 12,662  $ 11,694  $ 11,714  $ 11,379  Service charges on deposits  6,177   6,306   6,428   6,009   6,246  Debit card fees  4,967   5,506   5,528   5,145   4,891  Credit card fees  577   617   617   672   631  Gain on sale and fees on mortgage loans  2,832   3,009   3,359   3,687   3,128  Net gain (loss) on sale of available-for-sale securities  -   -   -   -   -  Net gain (loss) on sale of foreclosed assets  (35)   36   (30)   (58)   -  Net gain (loss) on sale of assets  -   214   267   2   -  Loan recoveries  574   433   1,359   664   555  Other noninterest income  2,485   2,194   3,140   3,433   2,553  Total noninterest income $ 30,230  $ 30,977  $ 32,362  $ 31,268  $ 29,383   NONINTEREST EXPENSE  Salaries, commissions and employee benefits, excluding profit sharing $ 39,157  $ 37,996  $ 35,262  $ 35,569  $ 35,003  Profit sharing expense  2,985   3,648   2,235   1,903   1,680  Net occupancy expense  3,720   3,753   3,738   3,618   3,470  Equipment expense  2,321   2,305   2,291   2,233   2,237  FDIC insurance premiums  1,575   1,511   1,514   1,508   1,965  Debit card expense  3,373   3,220   3,248   3,242   3,058  Legal, tax and professional fees  3,067   3,751   3,865   3,809   2,734  Audit fees  451   423   582   453   333  Printing, stationery and supplies  482   293   199   425   447  Amortization of intangible assets  95   147   157   157   157  Advertising, meals and public relations  1,677   1,642   1,466   1,466   1,455  Operational and other losses  540   863   955   769   1,154  Software amortization and expense  3,732   3,648   3,712   3,158   3,005  Other noninterest expense  7,160   6,899   6,788   6,702   7,242  Total noninterest expense $ 70,335  $ 70,099  $ 66,012  $ 65,012  $ 63,940   TAX EQUIVALENT YIELD ADJUSTMENT  $ 2,700  $ 2,673  $ 2,628  $ 2,572  $ 2,573

FIRST FINANCIAL BANKSHARES, INC. SELECTED FINANCIAL DATA (UNAUDITED) (In thousands)  Three Months Ended    Three Months Ended Mar. 31, 2025    Dec. 31, 2024 Average   Tax Equivalent   Yield /      Average   Tax Equivalent   Yield /  Balance   Interest   Rate      Balance   Interest   Rate  Interest-earning assets:  Federal funds sold $ 7,596  $ 90   4.81 %    $ 1,895  $ 23   4.90 % Interest-bearing demand deposits in nonaffiliated banks  286,040   3,174   4.50      308,118   3,578   4.62  Taxable securities  3,506,035   25,034   2.86      3,320,754   21,896   2.64  Tax-exempt securities  1,407,440   9,912   2.82      1,425,934   9,858   2.77  Loans  7,952,946   131,600   6.71      7,806,860   133,110   6.78  Total interest-earning assets  13,160,057  $ 169,810   5.23 %     12,863,561  $ 168,465   5.21 % Noninterest-earning assets  830,055            824,757  Total assets $ 13,990,112           $ 13,688,318  Interest-bearing liabilities:  Deposits $ 8,882,040  $ 47,549   2.17 %    $ 8,523,405  $ 49,139   2.29 % Repurchase Agreements  53,920   209   1.57      63,350   271   1.70  Borrowings  74,561   563   3.06      39,709   265   2.65  Total interest-bearing liabilities  9,010,521  $ 48,321   2.17 %     8,626,464  $ 49,675   2.29 % Noninterest-bearing deposits  3,265,838            3,348,062  Other noninterest-bearing liabilities   68,218            79,271  Shareholders' equity  1,645,535            1,634,521  Total liabilities and shareholders' equity $ 13,990,112           $ 13,688,318   Net interest income and margin (tax equivalent)    $ 121,489   3.74 %       $ 118,790   3.67 %  Three Months Ended    Three Months Ended Sept. 30, 2024    June 30, 2024 Average   Tax Equivalent   Yield /      Average   Tax Equivalent   Yield /  Balance   Interest   Rate      Balance   Interest   Rate  Interest-earning assets:  Federal funds sold $ 2,901  $ 43   5.84 %    $ 5,160  $ 74   5.81 % Interest-bearing demand deposits in nonaffiliated banks  200,756   2,716   5.38      159,707   2,292   5.77  Taxable securities  3,211,490   19,866   2.47      3,250,684   19,912   2.45  Tax-exempt securities  1,418,214   9,742   2.75      1,404,706   9,730   2.77  Loans  7,643,238   130,220   6.78      7,405,297   124,237   6.75  Total interest-earning assets  12,476,599  $ 162,587   5.18 %     12,225,554  $ 156,245   5.14 % Noninterest-earning assets  817,757            855,719  Total assets $ 13,294,356           $ 13,081,273  Interest-bearing liabilities:  Deposits $ 8,240,938  $ 51,994   2.51 %    $ 8,020,247  $ 48,414   2.43 % Repurchase Agreements  100,892   740   2.92      212,590   1,895   3.59  Borrowings  24,670   116   1.87      22,932   91   1.60  Total interest-bearing liabilities  8,366,500  $ 52,850   2.51 %     8,255,769  $ 50,400   2.46 % Noninterest-bearing deposits  3,279,486            3,289,906  Other noninterest-bearing liabilities   76,274            72,464  Shareholders' equity  1,572,096            1,463,134  Total liabilities and shareholders' equity $ 13,294,356           $ 13,081,273   Net interest income and margin (tax equivalent)    $ 109,737   3.50 %       $ 105,845   3.48 %

Three Months Ended Mar. 31, 2024 Average   Tax Equivalent   Yield /  Balance   Interest   Rate  Interest-earning assets:  Federal funds sold $ 3,923  $ 57   5.85 % Interest-bearing demand deposits in nonaffiliated banks  344,969   4,657   5.43  Taxable securities  3,376,324   19,952   2.36  Tax-exempt securities  1,434,505   9,794   2.73  Loans  7,205,424   117,608   6.56  Total interest-earning assets  12,365,145  $ 152,068   4.95 % Noninterest-earning assets  864,885  Total assets $ 13,230,030  Interest-bearing liabilities:  Deposits $ 7,878,094  $ 45,250   2.31 % Repurchase Agreements  317,439   2,562   3.25  Borrowings  132,963   1,441   4.36  Total interest-bearing liabilities  8,328,496  $ 49,253   2.38 % Noninterest-bearing deposits  3,346,757  Other noninterest-bearing liabilities   66,134  Shareholders' equity  1,488,643  Total liabilities and shareholders' equity $ 13,230,030   Net interest income and margin (tax equivalent)    $ 102,815   3.34 % Cision

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SOURCE First Financial Bankshares, Inc.

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