First Financial Bankshares Reports 27% Increase in Q2 Net Earnings to $66.66 Million

First Financial Bankshares, Inc. reported a significant increase in financial performance for the second quarter of 2025, with net earnings reaching $66.66 million, a 27% rise from $52.49 million in the same period last year. The diluted earnings per share also improved to $0.47, up from $0.37. For the first half of 2025, net earnings totaled $128.00 million, marking a 20.89% increase compared to $105.88 million for the first six months of 2024. The return on average assets rose to 1.89% from 1.61%, while the return on average equity increased to 15.82% from 14.43%.

The company's net interest income for the second quarter was $126.66 million, compared to $105.85 million in the prior year, driven by an increase in average loans and investment securities. Average earning assets grew to $13.34 billion, up from $12.23 billion, with loans increasing by $640.04 million. The net interest margin improved to 3.81%, reflecting a favorable shift in asset mix and higher loan yields. For the first half of 2025, net interest income was $248.15 million, up from $208.66 million in the same period of 2024.

In terms of operational developments, First Financial Bankshares expanded its loan portfolio, which reached $8.07 billion as of June 30, 2025, an increase of $161.85 million from the end of 2024. The real estate loan segment saw a notable increase of $153.27 million, while consumer loans rose by $55.93 million. The company also reported a total of $33.23 million in loans held-for-sale, up from $19.67 million a year earlier. The bank's efficiency ratio improved to 44.97% for the second quarter, down from 47.41% in the previous year, indicating better cost management relative to income.

The allowance for credit losses stood at $102.79 million, representing 1.27% of loans held-for-investment, consistent with the previous year. Nonaccrual loans and foreclosed assets totaled $63.71 million, slightly up from $61.19 million a year ago. The company’s capital ratios remained strong, with a total risk-based capital ratio of 20.35% as of June 30, 2025, well above the regulatory minimums.

Looking ahead, First Financial Bankshares anticipates continued growth driven by its strategic focus on expanding its loan portfolio and enhancing operational efficiency. The company remains committed to maintaining strong capital ratios and managing interest rate risk effectively, particularly in light of the evolving economic landscape and potential regulatory changes.