FFIN · First Financial Bankshares, Inc.

First Financial Bankshares delivered a strong Q1 2026 earnings result, with net income rising 16.6% year-over-year to $71.54 million and diluted EPS at $0.50 — notably above consensus of $0.47 and representing the second consecutive earnings beat. The growth was attributed by CEO David Bailey to 'core balance sheet growth and decreased funding costs over the past year,' supported by a 3.86% net interest margin (up 12 bps YoY), driven by both higher average interest-earning assets ($14.54B vs. $13.16B YoY) and a $1.26M reversal of interest expense that lifted the core margin by ~3 bps. Net interest income increased 13.4% YoY to $134.79M, while noninterest income rose 6.2% to $32.10M — led by trust fees ($13.36M, up on $11.91B in managed assets) and mortgage income ($4.28M, up from $2.83M). Though noninterest expense rose to $76.77M (driven by salary increases and higher software amortization), the efficiency ratio improved meaningfully to 44.98% from 46.36% in Q1 2025. Asset quality remained robust: nonperforming assets declined to 0.66% of loans and foreclosed assets (from 0.78% YoY), net charge-offs were modest at $356K, and the allowance for credit losses increased to 1.30% of loans. Management emphasized financial strength amid macro uncertainty — citing strong capital levels, a diversified deposit base, and sound lending practices — but provided no forward guidance beyond commentary on current conditions. No dividend or buyback updates were disclosed beyond the previously declared $0.19 per share dividend.