First Financial Bankshares (FFIN) Q1 2026 earnings summary

Executive summary

• Net earnings for Q1 2026 were $71.54 million, up 16.62% from $61.35 million in Q1 2025, but down from $73.31 million in Q4 2025, with diluted EPS of $0.50 versus $0.43 year-over-year.

• Return on average assets was 1.89% and return on average equity was 14.83% for Q1 2026.

• Growth was driven by core balance sheet expansion, lower funding costs, and increases in loans and investment securities.

Financial highlights

• Net interest income (tax-equivalent) rose to $138.58 million from $121.49 million year-over-year; reported net interest income was $134.79 million, up from $118.79 million.

• Net interest margin increased to 3.86% from 3.74% in Q1 2025.

• Noninterest income was $32.10 million, up $1.87 million, with trust fees and mortgage-related income showing notable growth.

• Noninterest expense increased to $76.77 million, with efficiency ratio improving to 44.98% from 46.36%.

• Provision for credit losses was $2.29 million, down from $3.53 million in Q1 2025.

Outlook and guidance

• Management considers the current liquidity position adequate and does not anticipate significant changes to dividend policy or capital strategy.

• Management remains cautious due to macro uncertainty, particularly the ongoing Iran conflict.

• No material adverse events are expected to impact liquidity, capital resources, or operations.