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FIRST FINANCIAL BANKSHARES ANNOUNCES FIRST QUARTER 2025 EARNINGS

1. FFIN's Q1 earnings rose to $61.35 million, up from $53.40 million. 2. Net interest income increased to $118.79 million compared to prior year. 3. FFIN reported improved efficiency ratio at 46.36% down from 48.37%. 4. Loan and deposit growth reflects solid balance sheet strength. 5. Company recognized as 3rd Best Bank in the Country by Forbes.

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Why Bullish?

The significant earnings increase indicates strong financial health and operational efficiency, which typically drives stock prices up. In the past, similar earnings surprises have led to positive market reactions for financial institutions.

How important is it?

This earnings report contains significant improvements in profit and efficiency, suggesting strong fundamentals and positive trends which may attract investor interest and impact stock value.

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Due to the immediate market responses following quarterly earnings reports, the positive impact will likely be realized quickly as investors adjust positions based on the new earnings data.

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, /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. 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 % SOURCE First Financial Bankshares, Inc. 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