FIRST FINANCIAL BANKSHARES ANNOUNCES FIRST QUARTER 2026 EARNINGS

ABILENE, Texas, April 16, 2026 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings for the first quarter of 2026 of $71.54 million compared to earnings of $73.31 million for the fourth quarter of 2025 and $61.35 million for the same quarter a year ago. Basic and diluted earnings per share were $0.50 for the quarter ended March 31, 2026 compared to $0.51 for the quarter ended December 31, 2025 and $0.43 for the quarter ended March 31, 2025.

"We are pleased to start 2026 with a strong increase in net income of 16.6 percent year over year, primarily due to our core balance sheet growth and decreased funding costs over the past year," said David Bailey, President and CEO. "While the current macro environment is uncertain with the ongoing Iran conflict, our Company remains financially strong, sound and secure as reflected in our strong capital levels, diversified core deposit base, and sound lending practices. We appreciate our associates who work hard every day to build new customer relationships while providing exceptional service," added Mr. Bailey.

Net interest income for the first quarter of 2026 was $134.79 million compared to $131.37 million for the fourth quarter of 2025 and $118.79 million for the first quarter of 2025. The net interest margin, on a tax-equivalent basis, was 3.86 percent for the first quarter of 2026 compared to 3.81 percent for the fourth quarter of 2025 and 3.74 percent for the first quarter of 2025. Net interest income was affected by a $1.26 million reversal of interest expense, improving the core margin by about 3 basis points. Average interest-earning assets were $14.54 billion for the first quarter of 2026 compared to $14.08 billion for the fourth quarter of 2025 and $13.16 billion for the same quarter a year ago.

The Company recorded a provision for credit losses of $2.29 million for the first quarter of 2026 compared to a provision reversal of $2.49 million for the fourth quarter of 2025 and a provision for credit losses of $3.53 million for the first quarter of 2025.

At March 31, 2026, the allowance for credit losses totaled $107.92 million, or 1.30 percent of loans held-for-investment ("loans" hereafter), compared to $105.54 million, or 1.29 percent of loans, at December 31, 2025 and $101.08 million, or 1.27 percent of loans, at March 31, 2025.

Net charge-offs totaled $356 thousand for the first quarter of 2026 compared to net charge-offs of $391 thousand for the fourth quarter of 2025 and $236 thousand for the first quarter of 2025. Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.66 percent at March 31, 2026, compared with 0.69 percent at December 31, 2025 and 0.78 percent at March 31, 2025.

Noninterest income for the first quarter of 2026 was $32.10 million compared to $30.23 million for the first quarter of 2025.

Noninterest expense for the first quarter of 2026 totaled $76.77 million compared to $70.34 million for the first quarter of 2025.

The Company's efficiency ratio was 44.98 percent for the first quarter of 2026 compared to 46.36 percent for the first quarter of 2025.

As of March 31, 2026, consolidated total assets were $15.39 billion compared to $15.45 billion at December 31, 2025, and $14.31 billion at March 31, 2025. Loans totaled $8.29 billion at March 31, 2026, compared with $8.16 billion at December 31, 2025 and $7.95 billion at March 31, 2025. Loans grew $126.84 million or 6.31 percent annualized from 2025 year end balances. Deposits and Repurchase Agreements totaled $13.31 billion at March 31, 2026 compared to $13.41 billion at December 31, 2025 and $12.52 billion at March 31, 2025. Core deposits grew during the quarter but were offset by declines in public fund balances.

Shareholders' equity was $1.94 billion as of March 31, 2026, compared to $1.92 billion and $1.68 billion at December 31, 2025 and March 31, 2025, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $290.06 million at March 31, 2026, compared to an unrealized loss of $269.94 million and $388.89 million at December 31, 2025 and March 31, 2025, respectively, due to the changes in market interest rates during the respective periods.

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

2026

2025

ASSETS

Mar. 31

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Cash and due from banks

264,850

249,466

237,466

264,000

232,943

Interest-bearing demand deposits in banks

458,203

826,947

401,580

435,612

682,362

Federal funds sold

14,075

1,575

11,750

8,750

11,750

Investment securities

5,668,792

5,514,113

5,260,813

4,886,548

4,760,431

Loans, held-for-investment

8,285,120

8,158,276

8,243,625

8,074,944

7,945,611

Allowance for credit losses

(107,918)

(105,536)

(105,958)

(102,792)

(101,080)

Net loans, held-for-investment

8,177,202

8,052,740

8,137,667

7,972,152

7,844,531

Loans, held-for-sale

22,984

29,992

26,015

33,233

14,348

Premises and equipment, net

150,989

149,985

149,651

148,999

150,589

Goodwill

313,481

Other intangible assets

128

171

257

343

428

Other assets

316,941

308,006

302,848

313,723

301,251

Total assets

15,387,645

15,446,476

14,841,528

14,376,841

14,312,114

LIABILITIES AND SHAREHOLDERS' EQUITY

Noninterest-bearing deposits

3,385,878

3,401,057

3,446,262

3,439,059

3,356,553

Interest-bearing deposits

9,859,359

9,944,472

9,399,986

9,009,357

9,110,218

Total deposits

13,245,237

13,345,529

12,846,248

12,448,416

12,466,771

Repurchase agreements

67,946

62,956

50,646

48,026

56,606

Borrowings

22,306

21,680

21,956

22,153

26,978

Trade date payable

24,965

Other liabilities

108,305

98,994

92,410

95,929

81,498

Shareholders' equity

1,943,851

1,917,317

1,830,268

1,737,352

1,680,261

Total liabilities and shareholders' equity

15,387,645

15,446,476

14,841,528

14,376,841

14,312,114

Quarter Ended

2026

2025

INCOME STATEMENTS

Mar. 31

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Interest income

182,945

182,869

179,692

172,810

167,110

Interest expense

48,154

51,501

52,691

49,080

48,321

Net interest income

134,791

131,368

127,001

123,730

118,789

Provision for credit losses

2,291

(2,486)

24,435

3,132

3,528

Net interest income after provision for credit losses

132,500

133,854

102,566

120,598

115,261

Noninterest income

32,096

33,349

34,264

32,873

30,230

Noninterest expense

76,768

77,650

73,666

71,735

70,335

Net income before income taxes

87,828

89,553

63,164

81,736

75,156

Income tax expense

16,285

16,239

10,897

15,078

13,810

Net income

71,543

73,314

52,267

66,658

61,346

PER COMMON SHARE DATA

Net income - basic

0.50

0.51

0.37

0.47

0.43

Net income - diluted

0.50

0.51

0.36

0.47

0.43

Cash dividends declared

0.19

0.18

Book value

13.57

13.39

12.78

12.14

11.75

Tangible book value

11.38

11.20

10.59

9.95

9.55

Market value

29.45

29.87

33.65

35.98

35.92

Shares outstanding - end of period

143,279,030

143,213,102

143,188,051

143,077,619

143,019,433

Average outstanding shares - basic

143,210,755

143,180,215

143,105,224

143,023,544

142,949,514

Average outstanding shares - diluted

143,608,079

143,542,801

143,474,169

143,378,505

143,355,148

PERFORMANCE RATIOS

Return on average assets

1.89

1.94

1.44

1.89

1.78

Return on average equity

14.83

15.62

11.85

15.82

15.12

Return on average tangible equity

17.66

18.78

14.44

19.43

18.68

Net interest margin (tax equivalent)

3.86

3.81

3.80

3.81

3.74

Efficiency ratio

44.98

46.10

44.74

44.97

46.36

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Quarter Ended

2026

2025

ALLOWANCE FOR LOAN LOSSES

Mar. 31,

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Balance at beginning of period

105,536

105,958

102,792

101,080

98,325

Loans charged-off

(1,174)

(3,387)

(22,612)

(1,189)

(946)

Loan recoveries

818

2,996

272

469

710

Net recoveries (charge-offs)

(356)

(391)

(22,340)

(720)

(236)

Provision for loan losses

2,738

(31)

25,506

2,432

2,991

Balance at end of period

107,918

105,536

105,958

102,792

101,080

ALLOWANCE FOR UNFUNDED COMMITMENTS

Balance at beginning of period

6,387

8,842

9,914

9,214

8,677

Provision for unfunded commitments

(447)

(2,455)

(1,072)

700

537

Balance at end of period

5,940

6,387

8,842

9,914

9,214

Allowance for loan losses /

period-end loans held-for-investment

1.30

1.29

1.27

Allowance for loan losses /

nonperforming loans

206.16

188.41

187.39

162.60

164.16

Net charge-offs (recoveries) / average total loans

(annualized)

0.02

1.07

0.04

0.01

As of

2026

2025

COMPOSITION OF LOANS HELD-FOR-INVESTMENT

Mar. 31,

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Commercial:

C&I

1,149,931

1,116,461

1,174,770

1,202,151

1,144,429

Municipal

384,473

342,501

347,559

306,140

338,303

Total Commercial

1,534,404

1,458,962

1,522,329

1,508,291

1,482,732

Agricultural

77,583

95,776

88,820

86,133

90,186

Real Estate:

Construction & Development

1,169,037

1,157,865

1,214,649

1,172,834

1,098,069

Farm

329,151

327,625

322,710

302,969

331,464

Non-Owner Occupied CRE

825,771

832,816

802,675

746,341

753,898

Owner Occupied CRE

1,132,114

1,120,608

1,119,425

1,124,610

1,142,618

Residential

2,322,097

2,285,830

2,308,708

2,286,220

2,217,740

Total Real Estate

5,778,170

5,724,744

5,768,167

5,632,974

5,543,789

Consumer:

Auto

751,283

732,351

718,501

698,897

679,189

Non-Auto

143,680

146,443

145,808

148,649

149,715

Total Consumer

894,963

878,794

864,309

847,546

828,904

Total loans held-for-investment

8,285,120

8,158,276

8,243,625

8,074,944

7,945,611

SUMMARY OF LOAN CLASSIFICATION

Special Mention

66,864

66,058

76,647

62,774

46,103

Substandard

222,895

189,548

176,311

194,291

199,509

Total classified loans

289,759

255,606

252,958

257,065

245,612

NONPERFORMING ASSETS

Nonaccrual loans

52,129

55,121

56,394

63,142

60,430

Accruing loans 90 days past due

218

892

151

1,143

Total nonperforming loans

52,347

56,013

56,545

63,219

61,573

Foreclosed assets

1,962

479

1,997

489

115

Total nonperforming assets

54,309

56,492

58,542

63,708

61,688

As a % of loans held-for-investment and foreclosed assets

0.66

0.69

0.71

0.79

0.78

As a % of end of period total assets

0.35

0.37

0.39

0.44

0.43

Quarter Ended

2026

2025

CAPITAL RATIOS

Mar. 31,

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Common equity Tier 1 capital ratio

20.23

19.99

19.10

19.16

19.12

Tier 1 capital ratio

20.23

19.99

19.10

19.16

19.12

Total capital ratio

21.42

21.17

20.29

20.35

20.31

Tier 1 leverage ratio

12.58

12.55

12.34

12.61

12.46

Tangible common equity ratio

10.81

10.60

10.44

10.12

9.76

Equity/Assets ratio

12.63

12.41

12.33

12.08

11.74

Quarter Ended

2026

2025

NONINTEREST INCOME

Mar. 31,

Dec. 31,

Sept. 30,

June 30,

Mar. 31,

Trust fees

13,363

13,512

12,950

12,746

12,653

Service charges on deposits

6,077

6,140

6,447

6,126

6,177

Debit card fees

5,245

5,791

5,333

5,218

4,967

Credit card fees

651

678

699

707

577

Gain on sale and fees on mortgage loans

4,277

4,216

4,375

4,126

2,832

Net gain (loss) on sale of foreclosed assets

(56)

(12)

(122)

200

(35)

Net gain on sale of assets

Loan recoveries

290

546

1,664

810

574

Other noninterest income

2,249

2,478

2,918

2,934

2,485

Total noninterest income

32,096

33,349

34,264

32,873

30,230

NONINTEREST EXPENSE

Salaries, commissions and employee benefits, excluding profit sharing

42,959

42,409

40,681

39,834

39,157

Profit sharing expense

3,023

4,819

1,924

2,741

2,985

Net occupancy expense

3,630

3,458

3,545

3,600

3,720

Equipment expense

2,158

2,128

2,395

2,478

2,321

FDIC insurance premiums

1,560

1,695

1,635

1,585

1,575

Debit card expense

3,108

3,265

3,512

3,308

3,373

Legal, tax and professional fees

3,834

3,079

3,332

3,143

3,067

Audit fees

455

531

536

463

451

Printing, stationery and supplies

623

528

456

473

482

Amortization of intangible assets

Advertising, meals and public relations

1,701

1,923

1,714

1,653

1,677

Operational and other losses

1,000

1,583

1,957

720

540

Software amortization and expense

4,594

4,456

4,280

4,020

3,732

Other noninterest expense

8,080

7,690

7,613

7,631

7,160

Total noninterest expense

76,768

77,650

73,666

71,735

70,335

TAX EQUIVALENT YIELD ADJUSTMENT

3,791

3,709

3,406

2,926

2,700

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)

Three Months Ended

Mar. 31, 2026

Dec. 31, 2025

Average

Tax Equivalent

Yield /

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Balance

Interest

Rate

Interest-earning assets:

Federal funds sold

4,565

3.55

6,565

3.75

Interest-bearing demand deposits in nonaffiliated banks

461,579

4,209

3.70

434,445

4,284

3.91

Taxable securities

4,076,690

32,283

3.17

3,683,108

29,231

3.17

Tax-exempt securities

1,726,765

14,184

3.29

1,712,261

14,144

3.30

Loans

8,273,995

136,020

6.67

8,241,265

138,857

6.68

Total interest-earning assets

14,543,594

186,736

5.21

14,077,644

186,578

5.26

Noninterest-earning assets

821,635

893,739

Total assets

15,365,229

14,971,383

Interest-bearing liabilities:

Deposits

9,824,362

47,851

1.98

9,476,716

51,207

2.14

Repurchase Agreements

62,849

229

1.48

56,573

219

1.54

Borrowings

22,155

1.35

22,113

1.35

Total interest-bearing liabilities

9,909,366

48,154

1.97

9,555,402

51,501

2.14

Noninterest-bearing deposits

3,401,092

3,454,171

Other noninterest-bearing liabilities

97,986

99,623

Shareholders' equity

1,956,785

1,862,187

Total liabilities and shareholders' equity

15,365,229

14,971,383

Net interest income and margin (tax equivalent)

138,582

3.86

135,077

3.81

Three Months Ended

Sept. 30, 2025

June 30, 2025

Average

Tax Equivalent

Yield /

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Balance

Interest

Rate

Interest-earning assets:

Federal funds sold

10,711

130

4.82

9,397

113

4.84

Interest-bearing demand deposits in nonaffiliated banks

216,739

2,387

4.37

379,364

4,191

4.43

Taxable securities

3,560,347

26,539

2.98

3,470,028

25,242

2.91

Tax-exempt securities

1,564,767

12,906

3.30

1,433,498

10,811

3.02

Loans

8,249,113

141,136

6.79

8,045,340

135,378

6.75

Total interest-earning assets

13,601,677

183,098

5.34

13,337,627

175,735

5.28

Noninterest-earning assets

826,660

826,635

Total assets

14,428,337

14,164,262

Interest-bearing liabilities:

Deposits

9,051,463

52,010

2.28

8,923,737

48,730

2.19

Repurchase Agreements

50,051

210

1.66

54,482

221

1.63

Borrowings

56,198

471

3.33

26,557

128

1.93

Total interest-bearing liabilities

9,157,712

52,691

2.28

9,004,776

49,079

2.19

Noninterest-bearing deposits

3,419,378

3,383,851

Other noninterest-bearing liabilities

101,268

85,745

Shareholders' equity

1,749,979

1,689,890

Total liabilities and shareholders' equity

14,428,337

14,164,262

Net interest income and margin (tax equivalent)

130,407

3.80

126,656

3.81

Three Months Ended

Mar. 31, 2025

Average

Tax Equivalent

Yield /

Balance

Interest

Rate

Interest-earning assets:

Federal funds sold

7,596

4.81

Interest-bearing demand deposits in nonaffiliated banks

286,040

3,174

4.50

Taxable securities

3,506,035

25,034

2.86

Tax-exempt securities

1,407,440

9,912

2.82

Loans

7,952,946

131,600

6.71

Total interest-earning assets

13,160,057

169,810

5.23

Noninterest-earning assets

830,055

Total assets

13,990,112

Interest-bearing liabilities:

Deposits

8,882,040

47,549

2.17

Repurchase Agreements

53,920

209

1.57

Borrowings

74,561

563

3.06

Total interest-bearing liabilities

9,010,521

48,321

2.17

Noninterest-bearing deposits

3,265,838

Other noninterest-bearing liabilities

68,218

Shareholders' equity

1,645,535

Total liabilities and shareholders' equity

13,990,112

Net interest income and margin (tax equivalent)

121,489

3.74

SOURCE First Financial Bankshares, Inc.