First Financial beats Q2 estimates with 27% earnings growth

Published 17/07/2025, 21:14
 First Financial beats Q2 estimates with 27% earnings growth

ABILENE, Texas - First Financial Bankshares , Inc. (NASDAQ:FFIN) reported second quarter earnings that exceeded analyst expectations, with net income rising 27% year-over-year as the company benefited from loan growth and improved margins.

The Texas-based financial holding company posted earnings of $66.66 million, or $0.47 per share, for the second quarter of 2025, beating the analyst consensus of $0.44 per share. Revenue reached $156.6 million, slightly above the consensus estimate of $156.41 million. The company’s stock remained unchanged following the announcement.

Net interest income increased to $123.73 million, up from $103.27 million in the same quarter last year, while the net interest margin improved to 3.81% from 3.48% a year ago. The company attributed the margin improvement to higher yields on loans and securities, as well as a $698,000 prepayment penalty recognized during the quarter.

"Our second quarter results are positive with earnings growth of over 27% from the second quarter last year resulting from our healthy loan and deposit growth, improved margin and increased trust revenue," said F. Scott Dueser, Chairman and CEO of First Financial Bankshares.

Loan balances grew to $8.07 billion, up from $7.52 billion a year earlier, representing a 6.53% annualized growth rate during the second quarter. Meanwhile, deposits and repurchase agreements totaled $12.50 billion, compared to $11.55 billion at the same time last year.

Trust fee income rose to $12.75 million from $11.71 million YoY, driven by an increase in trust assets managed to $11.46 billion. Mortgage income also improved to $4.13 million from $3.69 million in the prior-year quarter.

The company’s efficiency ratio improved to 44.97% from 47.41% a year ago, primarily due to the increase in net interest income.

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