First Financial Bankshares Reports 7.9% Increase in Q2 2026 Net Earnings

First Financial Bankshares, Inc. reported a solid financial performance for the second quarter of 2026, with net earnings reaching $71.9 million, a 7.9% increase from $66.7 million in the same period last year. The diluted earnings per share rose to $0.50, compared to $0.47 in the prior year. For the first half of 2026, net earnings totaled $143.4 million, marking a 12.1% increase from $128.0 million in the first half of 2025. The return on average assets remained stable at 1.89%, while the return on average equity decreased slightly to 14.76% from 15.48% year-over-year.

The company's total assets decreased to $15.3 billion as of June 30, 2026, down from $15.4 billion at the end of 2025. Total loans held-for-investment increased to $8.3 billion, up from $8.2 billion at year-end 2025, driven by growth in real estate and commercial loans. The allowance for credit losses also rose to $112.4 million, representing 1.35% of total loans, compared to 1.29% at the end of 2025. Nonaccrual loans and foreclosed assets increased to $67.0 million, or 0.80% of total loans, reflecting a slight uptick in asset quality concerns.

In terms of strategic developments, First Financial Bankshares has maintained a focus on expanding its wealth management services, with fees increasing to $14.0 million in the second quarter of 2026, up from $12.7 million in the same quarter of 2025. The market value of assets under management also grew to $12.2 billion, compared to $11.5 billion a year earlier. The company has not engaged in any significant acquisitions or organizational changes during this period, but it continues to evaluate opportunities for growth.

Operationally, the bank's total deposits decreased to $13.1 billion from $13.3 billion at the end of 2025, with noninterest-bearing deposits increasing to $3.5 billion. The bank's efficiency ratio for the second quarter was 45.94%, slightly higher than 44.97% in the same quarter of 2025, indicating a need for continued focus on managing noninterest expenses, which rose to $81.1 million from $71.7 million year-over-year. The company has also extended its stock repurchase authorization, allowing for the repurchase of up to 7.2 million shares through July 31, 2027.

Looking ahead, First Financial Bankshares remains cautiously optimistic about its growth prospects, with management emphasizing the importance of maintaining strong capital ratios and liquidity. The company’s total shareholders' equity increased to $2.0 billion, or 13.0% of total assets, as of June 30, 2026. The bank plans to continue monitoring economic conditions and adjusting its strategies accordingly to navigate potential challenges in the financial landscape.