First Financial Bankshares — Third Quarter 2026 Earnings Summary

Financial Performance

• Reported net income of $74.31 million for Q3 2026, up from $52.27 million in Q3 2025 and $71.89 million in Q2 2026.
• Diluted earnings per share (EPS) were $0.52 for Q3 2026, compared to $0.36 in Q3 2025 and $0.50 in Q2 2026.
• Net interest income reached $138.51 million in Q3 2026, an increase from $127.00 million in Q3 2025 and $136.91 million in Q2 2026.
• Net interest margin (tax-equivalent) was 3.91% in Q3 2026, up from 3.80% in Q3 2025 and 3.90% in Q2 2026.
• Average interest-earning assets were $14.43 billion in Q3 2026, compared to $13.60 billion in Q3 2025 and $14.46 billion in Q2 2026.
• Provision for credit losses was $2.03 million in Q3 2026, significantly lower than $24.44 million in Q3 2025 and $4.18 million in Q2 2026.
• Net charge-offs were $935 thousand in Q3 2026, compared to $22.34 million in Q3 2025 and net recoveries of $600 thousand in Q2 2026.
• Noninterest income was $35.64 million in Q3 2026, compared to $34.26 million in Q3 2025 and $35.84 million in Q2 2026.
• Noninterest expense totaled $81.05 million in Q3 2026, compared to $73.67 million in Q3 2025 and $81.11 million in Q2 2026.
• Efficiency ratio was 45.59% in Q3 2026, compared to 44.74% in Q3 2025 and 45.94% in Q2 2026.
• Total assets were $15.16 billion as of September 30, 2026, compared to $14.84 billion in September 2025 and $15.31 billion in June 2026.
• Loans held-for-investment totaled $8.54 billion as of September 30, 2026, compared to $8.24 billion in September 2025 and $8.35 billion in June 2026.
• Deposits and repurchase agreements totaled $13.19 billion as of September 30, 2026, compared to $12.90 billion in September 2025 and $13.17 billion in June 2026.
• Shareholders' equity was $1.83 billion as of September 30, 2026, compared to $1.83 billion in September 2025 and $2.00 billion in June 2026.
• Allowance for credit losses totaled $113.89 million (1.33% of loans) as of September 30, 2026, compared to $105.96 million (1.29%) in September 2025 and $112.43 million (1.35%) in June 2026.
• Nonperforming assets were 0.71% of loans and foreclosed assets as of September 30, 2026, compared to 0.71% in September 2025 and 0.80% in June 2026.
• Classified loans totaled $294.49 million as of September 30, 2026, compared to $252.96 million in September 2025 and $283.10 million in June 2026.
• Return on average assets was 1.93% for Q3 2026, compared to 1.44% in Q3 2025.
• Return on average equity was 15.02% for Q3 2026, compared to 11.85% in Q3 2025.
• Common equity Tier 1 capital ratio was 20.45% as of September 30, 2026, compared to 19.10% in September 2025.

Business Segments and Product Lines

• Wealth Management fee income increased to $14.49 million in Q3 2026 from $12.95 million in Q3 2025 and $13.96 million in Q2 2026, driven by new account growth and increased mineral fee income due to oil and gas prices.
• Market value of assets under management totaled $12.35 billion as of September 30, 2026, compared to $12.05 billion in September 2025 and $12.23 billion in June 2026.
• Service charges on deposits increased to $6.69 million in Q3 2026 from $6.45 million in Q3 2025 and $6.26 million in Q2 2026, primarily due to increases in net new accounts.
• Mortgage income decreased to $4.18 million in Q3 2026 from $4.38 million in Q3 2025 and $4.68 million in Q2 2026, impacted by a spike in long-term rates during the quarter.
• The Company operates 81 banking locations in Texas, including a new full-service branch in the Austin market (Bee Cave) opening later in the quarter.
• First Financial Wealth Management operates nine locations, and First Technology Services, Inc. operates as a technology operating company.

Risks and Challenges

• The Q3 2025 provision was driven by a large loan charged off due to borrower fraud.
• Shareholders' equity decreased from the linked quarter primarily due to an increase in unrealized loss on the securities portfolio of $209.89 million (net of tax).
• Unrealized loss on the securities portfolio, net of tax, totaled $489.55 million as of September 30, 2026, compared to $308.58 million in September 2025 and $279.67 million in June 2026, due to changes in long-term market interest rates.
• Forward-looking statements note risks including competition, changes in trade/monetary/fiscal policies, effects of oil and gas prices, fluctuations in loan collateral values, inflation, interest rate fluctuations, changes in consumer habits, and acquisition integration risks.

Management Commentary and Tone

• David Bailey, President and CEO, stated the company is pleased to report another record quarter of net income, largely driven by continued expansion of the net interest margin.
• Management expressed focus on disciplined balance sheet growth and prudent risk management as they enter the final quarter of the year.
• Management highlighted the opening of the new Bee Cave location as an important step in continued expansion across Texas.
• Management appreciated the dedicated team of bankers for their commitment to customers and shareholders.

Other Key Points

• Cash dividends declared were $0.22 per share for Q3 2026, compared to $0.19 in Q3 2025 and Q2 2026.
• Book value per share was $12.78 as of September 30, 2026, compared to $12.78 in September 2025 and $13.93 in June 2026.
• Tangible book value per share was $10.59 as of September 30, 2026, compared to $10.59 in September 2025 and $11.75 in June 2026.
• Shares outstanding were 143,397,258 as of September 30, 2026.
• Loans grew $191.86 million (9.12% annualized) during Q3 2026 compared to June 30, 2026.
• Noninterest-bearing deposits grew $67.07 million (7.65% annualized) during Q3 2026 compared to June 30, 2026.
• The Company is listed on The Nasdaq Global Select Market under the trading symbol FFIN.