First Financial Bankshares NASDAQ: FFIN highlighted record 2025 earnings, deposit-driven balance sheet growth, and a higher quarterly dividend during its 2026 annual meeting of shareholders, where investors also approved director elections, the auditor appointment, and the company’s executive compensation advisory proposal.
Shareholders approve board slate and other proposals
Executive Chairman F. Scott Dueser opened the meeting by emphasizing the importance of shareholder participation and noting it was the company’s 53rd annual meeting since becoming a bank holding company in 1973. David Copeland, president of SIPCO and the Shelton Family Foundation, reported that 89% of the company’s 143 million outstanding shares were represented by proxy or in person, establishing a quorum.
Copeland later provided vote results on the three proposals presented:
- Director elections: All nominees received “in excess of 94%” of votes cast.
- Auditor ratification: “In excess of 98%” of votes cast ratified Ernst & Young LLP as independent auditor for the fiscal year ending Dec. 31, 2026.
- Say-on-pay: “In excess of 92%” of votes cast approved the compensation of named executive officers.
Dueser said the company’s leadership transition was “going extremely well,” and reiterated his commitment to remain executive chairman for two more years while working closely with President and CEO David Bailey and the management team.
2025 financial results: record earnings and strong deposit growth
Michelle Hickox, executive vice president and chief financial officer of First Financial Bankshares, described 2025 as “a strong year,” citing record annual net income and “robust organic balance sheet growth” driven by deposits.
Hickox reported net income of $253.6 million in 2025, up from $223.5 million in 2024, a $30.1 million increase (13.5%). Diluted earnings per share were $1.77 in 2025 compared with $1.56 in 2024. Net interest income totaled $500.89 million in 2025 versus $426.74 million in 2024, which Hickox said was the primary driver of earnings growth.
Profitability and efficiency metrics improved as well. Return on average assets rose to 1.76% in 2025 from 1.68% in 2024, and the efficiency ratio improved to 45.5% from 47.2%. Hickox said capital ratios remained well above regulatory “well-capitalized” levels, supporting resilience and flexibility.
On the balance sheet, total assets increased to $15.45 billion at Dec. 31, 2025 from $13.98 billion a year earlier. Deposits and repurchase agreements totaled $13.4 billion, up from $12.1 billion, an increase of $1.4 billion (11.2%). Loans grew to $8.2 billion from $7.9 billion, or $266.9 million (3.4%), with Hickox noting loan growth was slowed by a high level of payoffs.
Hickox also said the company experienced “an unusual large charge-off during 2025 due to a fraud by a borrower,” adding that the bank maintained strong credit standards and evaluated policies and procedures to help ensure it was an isolated event. Non-performing assets as a percentage of loans and foreclosed assets were 0.69% at year-end 2025, down from 0.8% at year-end 2024.
First-quarter 2026 update: earnings and margin improve
Hickox also summarized first-quarter 2026 results, which the company had released earlier in the month. Net earnings were $71.5 million, with diluted EPS of $0.50, compared with $61.3 million and $0.43 in the first quarter of 2025, a 16.6% increase year over year.
Net interest income was $134.8 million versus $118.8 million in the prior-year quarter, and net interest margin increased to 3.86% from 3.74%. Trust revenue increased to $13.4 million, up $798,000 from the prior year. Total assets ended the quarter at $15.4 billion, down slightly from year-end, while deposits were $13.2 billion as of March 31, reflecting core deposit expansion offset by a seasonal decline in some public fund accounts. Loans totaled $8.3 billion, up $126 million, or 6.3%, since year-end.
Trust business posts growth and adopts “First Financial Wealth Management” name
Lon Biebighauser, president of First Financial Trust and Asset Management Company, said the trust business “enjoyed another successful year” in 2025 with growth in assets under management and earnings. He reported total assets increased $673 million to $8.8 billion in book value (up 8.3%), while market value of assets under management rose $1.1 billion to $11.94 billion (up 10.2%).
Trust revenue increased $4.4 million (9.3%) to $51.8 million. Biebighauser said earnings grew despite a decline in oil and gas revenue, which totaled $7.5 million in 2025 and represented approximately 14.5% of total revenue. After-tax income contribution to the parent increased to $28.3 million from $25.7 million.
Biebighauser also announced the trust company will begin doing business as First Financial Wealth Management, saying the new name better reflects the breadth of services offered. “While we may be doing business under a new name, our company remains the same,” he said.
Leadership updates, community investment, and a dividend increase
Bailey said the company’s succession planning was progressing smoothly, and noted leadership continuity, naming prior CEOs and describing his role as the fourth CEO. Bailey also highlighted a range of promotions and hires across community lending and outreach, treasury, mortgage, human resources, customer care, technology, and regional banking leadership.
On community engagement, Bailey said the company held its 10th annual Day of Service, with more than 1,000 employees joined by staff from other banks in a “first-ever joint initiative” with the Texas Bankers Association. He also discussed facility investments, including construction of a new full-service location in Beaumont near the medical center, a new drive-through facility in downtown Abilene, and plans to begin construction on a new full-service location in Franklin in the Bryan-College Station market.
Bailey said the board approved a dividend increase, stating the company will raise its cash dividend by $0.03 to $0.22 per quarter, a 16% increase. The dividend will be paid to shareholders of record as of June 12, 2026, with a payment date of July 1, 2026.
About First Financial Bankshares NASDAQ: FFIN
First Financial Bankshares, Inc is a regional bank holding company headquartered in Cincinnati, Ohio. Through its primary subsidiary, First Financial Bank, the company offers a full suite of banking products and services to individual, small business and commercial clients. With roots dating back to 1863, First Financial has cultivated a strong community banking heritage, combining personalized service with modern financial solutions.
The company's core business activities include commercial and consumer lending, deposit products, treasury management, mortgage origination and servicing, and wealth management.
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