July 16, 2026 — First Financial Bankshares, Inc. (NASDAQ: FFIN) announced its financial results for the second quarter of 2026, revealing robust growth in earnings driven by a solid increase in net interest income and noninterest income. The company reported earnings of $71.89 million, a notable increase from $66.66 million in the same quarter of the previous year and a slight rise from $71.54 million in the first quarter of 2026. This translates to basic and diluted earnings per share of $0.50, up from $0.47 in the second quarter of 2025.

1. Key Financial Highlights

David Bailey, President and CEO of First Financial Bankshares, expressed satisfaction with the company's performance, stating, "Our second quarter results reflect solid year-over-year earnings growth, highlighted by expansion in our net interest margin and continued increases in fee income generated by wealth management and mortgage banking." He emphasized the company's commitment to disciplined growth, prudent risk management, and long-term value creation for shareholders.

Net Interest Income and Margin

In the second quarter of 2026, net interest income reached $136.91 million, up from $123.73 million year-over-year and slightly higher than $134.79 million for the previous quarter. The net interest margin, on a tax-equivalent basis, improved to 3.90%, compared to 3.81% in the second quarter of 2025 and 3.86% in the first quarter of 2026. This improvement was attributed to a decrease in deposit costs and enhanced yields from securities.

Noninterest Income Growth

Noninterest income for the quarter was $35.84 million, marking an increase from $32.87 million in the same quarter last year and $32.10 million in the previous quarter. Notable contributors to this increase included:

Wealth Management Fees: Increased to $13.96 million, up from $12.75 million in the same quarter last year, driven by growth in assets under management, particularly due to rising oil prices.

Service Charges on Deposits: Rose to $6.26 million, reflecting an increase in fees on deposit accounts.

Mortgage Income: Increased to $4.68 million, benefiting from improvements in mortgage operations and higher origination volumes.

Expense Management

Noninterest expenses for the second quarter totaled $81.11 million, compared to $71.74 million in the same period of 2025. Increased expenses were primarily due to higher salaries, commissions, and employee benefits, which rose to $49.66 million due to merit-based and market-driven pay increases, alongside profit-sharing and incentive accruals. The efficiency ratio for the quarter stood at 45.94%, slightly higher than the 44.97% recorded in the second quarter of 2025.

2. Credit Quality and Asset Growth

First Financial's provision for credit losses was $4.18 million, up from $3.13 million year-over-year. The allowance for credit losses totaled $112.43 million, or 1.35% of loans held-for-investment, reflecting a slight increase compared to the previous year.

The company's total assets as of June 30, 2026, were $15.31 billion, up from $14.38 billion a year ago. Loans held-for-investment increased to $8.35 billion, representing a growth of 4.66% year-to-date. Deposits and repurchase agreements totaled $13.17 billion, showing a year-over-year increase from $12.50 billion.

Shareholder Equity

Shareholders' equity rose to $2.00 billion, compared to $1.74 billion a year earlier. The unrealized loss on the securities portfolio, net of applicable tax, decreased to $279.67 million, down from $373.46 million at the end of June 2025.

3. Looking Ahead

As First Financial Bankshares continues its trajectory of growth, the focus remains on maintaining strong financial performance while navigating the challenges of the evolving economic landscape. With a strategic emphasis on enhancing customer service and community engagement, the company is well-positioned for sustainable growth in the coming quarters.

For more comprehensive information about First Financial Bankshares Inc. and its financial performance, please visit their official website.

Original press release