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First Financial Bankshares Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 23 January 2026: press release. The quarter’s numbers.

Key takeaways

  • Quarterly earnings rose from prior quarter: The company reported fourth-quarter net income of $73.31 million, or $0.51 per diluted share, against $52.27 million and $0.36 in the third quarter. Source
  • Net interest income grew on larger balances: Net interest income was $131.37 million, against $127.00 million in the third quarter and $116.12 million a year earlier, on average earning assets of $14.08 billion. Source
  • Deposits and repurchase agreements grew in quarter: Deposits and repurchase agreements totaled $13.41 billion, up 10.26 percent or $1.25 billion from a year earlier. Quarterly growth was measured against September 30, 2025 balances. Source
  • Provision turned to a reversal: The company recorded a $2.49 million credit provision reversal in the quarter, against a $24.44 million provision in the third quarter. The full-year provision was $28.61 million, against $13.82 million in 2024. Source
  • Salary costs rose from a year earlier: Salaries, commissions and benefits were $47.23 million. The increase reflected merit pay increases and market adjustments for front-line staff, plus profit sharing and officer bonus accruals. Source
  • Net interest margin edged up: Tax-equivalent net interest margin was 3.81 percent, against 3.80 percent in the third quarter and 3.67 percent a year earlier. The full-year margin was 3.79 percent, against 3.50 percent. Source

“We are encouraged by our organic balance sheet growth of almost $1.50 billion in the past year, increasing earning assets while continuing to grow net interest income.”

F. Scott Dueser, Chairman and CEO of First Financial Bankshares, Inc.

Results and growth drivers

  • Quarterly earnings rose from prior quarter: The company reported fourth-quarter net income of $73.31 million, or $0.51 per diluted share, against $52.27 million and $0.36 in the third quarter. Source
  • Full-year earnings higher than 2024: Net income for 2025 was $253.58 million, or $1.77 per diluted share, against $223.51 million and $1.56 in 2024, an increase of $30.07 million or 13.45 percent. Source
  • Net interest income grew on larger balances: Net interest income was $131.37 million, against $127.00 million in the third quarter and $116.12 million a year earlier, on average earning assets of $14.08 billion. Source

Fee income and products

  • Trust fees rose on higher asset values: Trust fee income was $13.51 million, up 6.71 percent from a year earlier. Management linked the rise to growth in market value of assets under management, now $11.94 billion. Source
  • Mortgage income up on volume and pricing: Mortgage income was $4.22 million, against $3.01 million a year earlier. Management attributed the increase to higher loan origination volumes and pricing margins. Source
  • Noninterest income higher than a year earlier: Total noninterest income was $33.35 million, against $34.26 million in the third quarter and $30.98 million a year earlier. Source

“As we enter 2026, we will continue to remain focused on sound lending growth, managing the changing interest rate environment and the regulatory landscape.”

F. Scott Dueser, Chairman and CEO of First Financial Bankshares, Inc.

Loans, deposits and balance sheet

  • Loans higher than a year earlier: Loans held for investment were $8.16 billion, up $245.18 million or 3.10 percent from a year earlier, and below the $8.24 billion reported at September 30, 2025. Source
  • Deposits and repurchase agreements grew in quarter: Deposits and repurchase agreements totaled $13.41 billion, up 10.26 percent or $1.25 billion from a year earlier. Quarterly growth was measured against September 30, 2025 balances. Source
  • Total assets rose to $15.45 billion: Investment securities were $5.51 billion, against $4.62 billion a year earlier. Net loans held for investment were $8.05 billion. Source

Credit quality and provisions

  • Provision turned to a reversal: The company recorded a $2.49 million credit provision reversal in the quarter, against a $24.44 million provision in the third quarter. The full-year provision was $28.61 million, against $13.82 million in 2024. Source
  • Third-quarter loss tied to fraud: The prior-quarter release tied a $21.55 million credit loss to suspected fraud at a commercial borrower, which drove that quarter's charge-offs.
  • Allowance rose as share of loans: The allowance for credit losses was $105.54 million, or 1.29 percent of loans held for investment, against $98.33 million, or 1.24 percent, a year earlier. Source
  • Nonperforming assets ratio fell to 0.69 percent: Nonperforming assets were 0.69 percent of loans and foreclosed assets, against 0.71 percent in the third quarter and 0.80 percent a year earlier. Source

Costs, margin and efficiency

  • Salary costs rose from a year earlier: Salaries, commissions and benefits were $47.23 million. The increase reflected merit pay increases and market adjustments for front-line staff, plus profit sharing and officer bonus accruals. Source
  • Non-salary costs also rose: Total noninterest expense was $77.65 million, against $70.10 million a year earlier. The non-salary increase was largely due to software amortization and operational and other losses. Source
  • Efficiency ratio lower than year earlier: The efficiency ratio was 46.10 percent, against 46.81 percent a year earlier. For full-year 2025 it was 45.53 percent, against 47.23 percent in 2024. Management attributed the lower ratio to higher net interest income. Source
  • Net interest margin edged up: Tax-equivalent net interest margin was 3.81 percent, against 3.80 percent in the third quarter and 3.67 percent a year earlier. The full-year margin was 3.79 percent, against 3.50 percent. Source

Capital and shareholder returns

  • Equity grew on retained earnings: Shareholders' equity reached $1.92 billion, against $1.61 billion a year earlier. Other comprehensive income also improved, according to the release. Source
  • Unrealized securities loss narrowed: The after-tax unrealized loss on the securities portfolio was $269.94 million, down from $424.29 million a year earlier, as longer-term rates fell. Source
  • Common equity Tier 1 ratio higher: Common equity Tier 1 ratio was 19.99 percent, against 19.10 percent in the third quarter and 18.83 percent a year earlier. The total capital ratio was 21.17 percent. Source
  • Quarterly dividend of $0.19 per share: Cash dividends declared were $0.19 per share in the fourth quarter, against $0.18 a year earlier. Full-year dividends were $0.75, against $0.72 in 2024. Source

Coming up, as management said on 23 January 2026

  • Loan and securities growth in 2026: Management said the quarter's deposit growth positions the company to grow both loans and securities in 2026. No dated events were given. Source

Figures management reported

FigureReported
Net interest margin Source3.81 percent, tax-equivalent, fourth quarter
Net interest income Source$131.37 million
Loans Source$8.16 billion, up 3.10 percent year over year
Deposits Source$13.41 billion
Deposit costs Source2.14 percent in the fourth quarter, against 2.28 percent in the third quarter
Provision for credit losses Sourcecredit reversal of $2.49 million
Net charge-offs Source$391 thousand
Nonperforming assets Source0.69 percent of loans and foreclosed assets
CET1 ratio Source19.99 percent
Efficiency ratio Source46.10 percent

Risks management discussed

  • External: Management named the changing interest rate environment as an area it will continue to manage in 2026. Source
  • Financial: Classified loans were $255.61 million, up from $252.96 million in the third quarter and $233.85 million a year earlier. Source

Earlier plans management reported on

  • Not stated: The prior-quarter release said legal action had started and recovery work continued. The fourth-quarter release gives no update on that work.

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.