- First Financial Bankshares (FFIN, Financial) reported a Q1 2025 earnings increase to $61.35 million, a 14.9% rise from Q1 2024.
- The net interest margin improved to 3.74%, up from the previous year's 3.34%.
- Total deposits in Q1 2025 rose by $362.79 million, reflecting a 12.10% annualized growth.
First Financial Bankshares (FFIN), listed on NASDAQ, showcased a robust financial performance in the first quarter of 2025 with net earnings of $61.35 million, representing a 14.9% increase compared to $53.40 million in the same quarter the previous year. This growth was coupled with an increase in earnings per share, which rose to $0.43 from $0.37 year-over-year, indicating enhanced profitability and efficient capital management.
The company's net interest income saw a significant rise, reaching $118.79 million, a notable 18.5% growth from the year-ago period. This was partly due to the improvement in the net interest margin, which expanded by 40 basis points to 3.74%, demonstrating effective balance sheet management in a challenging market environment.
Deposits and Repurchase Agreements experienced a substantial increase, growing by $362.79 million or an annualized rate of 12.10%, thereby bolstering the company's liquidity and supporting both loan growth and securities investments. This growth in deposits was a key factor in enhancing overall liquidity amid recent banking sector volatility.
Despite these positive outcomes, the report highlighted a rise in nonperforming assets to 0.78% of loans from 0.51% year-over-year, reflecting a 52.9% increase. Consequently, the company has increased its provision for credit losses to $3.53 million from $808 thousand in the prior-year period, reinforcing its allowance for credit losses to 1.27% of loans.
First Financial Bankshares maintained a strong capital position with shareholders' equity at $1.68 billion. The efficiency ratio improved to 46.36% from 48.37%, indicating disciplined expense management. However, noninterest expenses increased by 10% to $70.34 million, driven by higher personnel costs and other operational expenses.
Overall, First Financial Bankshares demonstrated a solid financial footing in Q1 2025, with improvements in net interest margins and asset growth outpacing concerns about credit quality metrics.
