First Financial Bankshares Inc.: Q3 FY2026 earnings call

What management said about Q3 FY2026, from the documents filed with the SEC on 16 October 2026: press release. The quarter’s numbers.

Read the filing

Key takeaways

• Net income and EPS rose year over year: Net income was $74.31 million, up from $52.27 million a year earlier and $71.89 million in the linked quarter. Diluted EPS was $0.52, against $0.36 and $0.50. Source
• Net interest income rose year over year: Net interest income was $138.51 million, against $127.00 million a year earlier and $136.91 million in the linked quarter. Source
• Net interest margin widened to 3.91 percent: The tax-equivalent margin was 3.91 percent, against 3.80 percent a year earlier and 3.90 percent in the linked quarter. Source
• Provision fell from prior-year level: The provision for credit losses was $2.03 million, down from $24.44 million a year earlier and $4.18 million in the linked quarter. Source
• Noninterest expense rose year over year: Noninterest expense was $81.05 million, against $73.67 million a year earlier and $81.11 million in the linked quarter. The efficiency ratio was 45.59 percent. Source
• Loans grew 9.12 percent annualized in quarter: Loans reached $8.54 billion, up $191.86 million in the quarter, and up $380.51 million, or 6.24 percent annualized, year to date. Source
• Equity fell on securities unrealized loss: Shareholders' equity was $1.83 billion, down from $2.00 billion in the linked quarter, mainly from a $209.89 million increase in the net-of-tax unrealized securities loss. Source
• Bee Cave branch opens later this month: The company will open a new Bee Cave location later this month, its first full-service branch in the Austin market. Source

“We are pleased to report another record quarter of net income, largely driven by continued expansion of our net interest margin,”

David Bailey, President and CEO

What changed from last quarter

• New: The company description lists 81 Texas locations, up from 79 in the prior release. Source

Results and growth drivers

• Net income and EPS rose year over year: Net income was $74.31 million, up from $52.27 million a year earlier and $71.89 million in the linked quarter. Diluted EPS was $0.52, against $0.36 and $0.50. Source
• Prior-year provision reflected a large fraud loss: The year-earlier quarter carried a $24.44 million provision, which the company attributed to one large loan charged off due to borrower fraud. Source
• Nine-month earnings and EPS higher: Nine-month net income was $217.75 million, against $180.27 million a year earlier. Nine-month diluted EPS was $1.51, against $1.26. Source

Net interest income and margin

• Net interest income rose year over year: Net interest income was $138.51 million, against $127.00 million a year earlier and $136.91 million in the linked quarter. Source
• Net interest margin widened to 3.91 percent: The tax-equivalent margin was 3.91 percent, against 3.80 percent a year earlier and 3.90 percent in the linked quarter. Source
• Interest-bearing deposit costs edged up: The interest-bearing deposit rate was 2.07 percent, up from 2.02 percent in the linked quarter and down from 2.28 percent a year earlier. Source

“As we enter the final quarter of the year, we remain focused on disciplined balance sheet growth and prudent risk management.”

David Bailey, President and CEO

Credit quality and provision

• Provision fell from prior-year level: The provision for credit losses was $2.03 million, down from $24.44 million a year earlier and $4.18 million in the linked quarter. Source
• Net charge-offs were small this quarter: Net charge-offs were $935 thousand, against $22.34 million a year earlier and net recoveries of $600 thousand in the linked quarter. Source
• Nonperforming assets steady year over year: Nonperforming assets were 0.71 percent of loans and foreclosed assets, the same as a year earlier and down from 0.80 percent in the linked quarter. Source
• Classified loans rose year over year: Classified loans totaled $294.49 million, against $252.96 million a year earlier and $283.10 million in the linked quarter. The allowance was 1.33 percent of loans. Source

Fee income and wealth management

• Noninterest income slightly higher year over year: Noninterest income was $35.64 million, against $34.26 million a year earlier and $35.84 million in the linked quarter. Source
• Wealth fees rose on accounts and minerals: Wealth Management fee income was $14.49 million, up on new account growth and higher mineral fee income. Assets under management reached $12.35 billion. Source
• Mortgage income fell on rate spike: Mortgage income was $4.18 million, against $4.38 million a year earlier and $4.68 million in the linked quarter. The company tied the decline to higher long-term rates. Source
• Service charges rose on net new accounts: Service charges on deposits were $6.69 million, against $6.45 million a year earlier and $6.26 million in the linked quarter. Source

Costs and efficiency

• Noninterest expense rose year over year: Noninterest expense was $81.05 million, against $73.67 million a year earlier and $81.11 million in the linked quarter. The efficiency ratio was 45.59 percent. Source
• Salary costs rose on March pay increases: Salaries, commissions and benefits, excluding the SERP market adjustment, were $47.79 million, up from $42.32 million a year earlier. Source
• Legal fees and software drove non-salary costs: Non-salary costs rose year over year on legal and professional fees, software and advertising, partly offset by lower operational losses and debit card expense. Source

Loans, deposits and balance sheet

• Loans grew 9.12 percent annualized in quarter: Loans reached $8.54 billion, up $191.86 million in the quarter, and up $380.51 million, or 6.24 percent annualized, year to date. Source
• Construction loans fell, municipal rose: Construction and development loans fell to $1.09 billion from $1.19 billion in the linked quarter, while municipal loans rose to $444.34 million. Source
• Noninterest-bearing deposits grew in quarter: Noninterest-bearing deposits grew $67.07 million in the quarter, or 7.65 percent annualized, and $144.77 million year to date. Source
• Total assets rose year over year: Total assets were $15.16 billion, against $14.84 billion a year earlier and $15.31 billion in the linked quarter. Source

Capital, securities and shareholders

• Equity fell on securities unrealized loss: Shareholders' equity was $1.83 billion, down from $2.00 billion in the linked quarter, mainly from a $209.89 million increase in the net-of-tax unrealized securities loss. Source
• Securities unrealized loss reached $489.55 million: The net-of-tax unrealized securities loss was $489.55 million, against $308.58 million a year earlier, due to changes in long-term market interest rates. Source
• CET1 ratio rose to 20.45 percent: The common equity Tier 1 ratio was 20.45 percent, up from 20.40 percent in the linked quarter and 19.10 percent a year earlier. Source
• Quarterly dividend stepped up to 0.22: Cash dividends declared were 0.22 per share in the quarter, up from 0.19 a year earlier. Source

Expansion and team

• Bee Cave branch opens later this month: The company will open a new Bee Cave location later this month, its first full-service branch in the Austin market. Source
• Expansion across Texas described as continuing: Management described the Bee Cave branch as an important step in continued expansion across Texas. Source
• Management credited bankers for commitment: Management credited its team of First Financial bankers for commitment to customers and shareholders. Source

Coming up, as management said on 16 October 2026

• Bee Cave branch opening this month: The Bee Cave location is set to open later this month, establishing the company's first full-service branch in the Austin market. Source

Figures management reported

Risks management discussed

• Financial: The securities portfolio carried a larger net-of-tax unrealized loss as long-term market rates changed, reducing shareholders' equity. Source
• Demand: Mortgage volume and margins were reduced by the rise in long-term rates during the quarter. Source
• External: Mineral fee income in wealth management depends on oil and gas prices. Source
• Operational: Operational and other losses increased from the linked quarter, alongside higher legal and professional fees. Source
• Financial: Classified loans increased from the linked quarter and year-earlier level. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 results
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call

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.