Sign in

You're signed outSign in or to get full access.

FF

FIRST FINANCIAL BANKSHARES INC (FFIN)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 delivered solid spread/margin performance: net interest income rose to $118.79M, net interest margin expanded to 3.74% (from 3.67% in Q4 and 3.34% y/y), and diluted EPS was $0.43; net income was $61.35M .
  • Against S&P Global consensus, EPS slightly beat ($0.43 vs $0.4275*) while revenue missed ($145.49M vs $149.43M*); definitional differences exist versus company-reported net interest + noninterest income ($149.02M) .
  • Strong deposit inflows continued (total deposits $12.47B), supporting liquidity and bond investments; loans grew modestly ($32.5M, 1.67% annualized) .
  • Credit quality remained stable-to-mixed: NPA ratio improved sequentially to 0.78% (from 0.80% in Q4) but higher y/y; allowance rose to $101.08M .
  • Board raised quarterly cash dividend to $0.19 (from $0.18), providing an income catalyst and signaling confidence in capital position .

What Went Well and What Went Wrong

What Went Well

  • Margin expansion and balance sheet growth: “Strong deposit inflows have supported loan growth as well as continued bond investments which has supported margin growth in addition to bolstering our liquidity” — F. Scott Dueser, Chairman & CEO .
  • Trust franchise momentum: Trust fees increased to $12.65M on higher trust AUM ($10.86B), reinforcing fee-income durability .
  • Operating efficiency: Efficiency ratio improved to 46.36% vs 46.81% in Q4 and 48.37% y/y, reflecting disciplined expense management relative to revenue growth .

What Went Wrong

  • Revenue vs consensus: S&P Global “revenue” missed ($145.49M actual vs $149.43M estimate*), despite company NII + noninterest income of $149.02M; investors may focus on definitional gap and miss vs external benchmark .
  • Higher expenses: Noninterest expense rose to $70.34M y/y, driven by wage increases, profit sharing accruals (+$1.31M), stock-based comp (+$0.78M), and incentive accruals (+$0.65M) .
  • Credit normalization: Provision for credit losses increased to $3.53M (vs $0.81M y/y); classified loans up to $245.61M y/y, and NPA ratio higher y/y, though slightly better q/q .

Financial Results

MetricQ3 2024Q4 2024Q1 2025
Net Interest Income ($USD Millions)$107.11 $116.12 $118.79
Noninterest Income ($USD Millions)$32.36 $30.98 $30.23
Net Income ($USD Millions)$55.31 $62.32 $61.35
Diluted EPS ($USD)$0.39 $0.43 $0.43
Net Interest Margin (Tax-Equivalent, %)3.50% 3.67% 3.74%
Efficiency Ratio (%)46.45% 46.81% 46.36%
Loans HFI ($USD Billions)$7.72 $7.91 $7.95
Total Deposits ($USD Billions)$11.76 $12.10 $12.47

Noninterest Income Breakdown

Component ($USD Millions)Q3 2024Q4 2024Q1 2025
Trust Fees$11.69 $12.66 $12.65
Service Charges on Deposits$6.43 $6.31 $6.18
Debit Card Fees$5.53 $5.51 $4.97
Gain on Sale & Fees on Mortgage Loans$3.36 $3.01 $2.83
Other Noninterest Income$3.14 $2.19 $2.49

KPIs and Credit Metrics

KPIQ3 2024Q4 2024Q1 2025
Provision for Credit Losses ($USD Millions)$6.12 $1.00 $3.53
Net Charge-offs ($USD Millions)$0.79 $1.94 $0.24
Allowance for Credit Losses ($USD Millions)$99.94 $98.33 $101.08
NPA Ratio (% of Loans + Foreclosed Assets)0.83% 0.80% 0.78%
Classified Loans ($USD Millions)$229.92 $233.85 $245.61
CET1 Capital Ratio (%)18.83% 18.83% 19.12%
Equity/Assets Ratio (%)12.24% 11.49% 11.74%

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Quarterly Cash Dividend per ShareQ2 2025$0.18 $0.19 Raised

The company did not provide formal revenue/EPS/margin guidance in the Q1 2025 release or investor slide deck .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
Net Interest MarginQ3: 3.50%; Q4: 3.67% 3.74% Improving
Loan GrowthQ3: +$203.46M (10.76% annualized); Q4: +$189.91M (9.78% annualized) +$32.51M (1.67% annualized) Decelerating
Deposits GrowthQ3: +$265.31M; Q4: +$347.17M +$362.79M Improving
Credit QualityQ3 NPA 0.83%; Q4 0.80% 0.78% (q/q better, y/y higher) Mixed
Trust/AWMTrust AUM $10.86B at Q3/Q4; fees rising Fees $12.65M; AUM $10.86B Stable-high
Capital RatiosCET1 18.83% (Q3/Q4) CET1 19.12% Strengthening

Management Commentary

  • “Strong deposit inflows have supported loan growth as well as continued bond investments which has supported margin growth in addition to bolstering our liquidity” — F. Scott Dueser, Chairman & CEO .
  • “Our Company remains financially strong, sound and secure as reflected in our capital levels, diversified deposit base and access to multiple liquidity sources” — F. Scott Dueser .

Q&A Highlights

  • Q1 2025 earnings call transcript could not be located in the document catalog; the company live-streamed its Annual Shareholders’ Meeting on April 29, 2025 to recap Q1 operations and strategy .
  • No Q&A details are available from a transcript source for Q1 2025.

Estimates Context

MetricQ3 2024Q4 2024Q1 2025
EPS Consensus Mean ($)0.388*0.400*0.4275*
Actual EPS ($)0.39*0.43*0.43*
Revenue Consensus Mean ($USD Millions)140.47*144.62*149.43*
Actual Revenue ($USD Millions)133.35*146.09*145.49*
EPS - # of Estimates5*4*4*
Revenue - # of Estimates4*3*3*

Values retrieved from S&P Global.*

  • Q1 2025: EPS slight beat; revenue miss — company-reported NII + noninterest income was $149.02M (near consensus), highlighting definitional differences versus SPGI’s “revenue” construct .
  • Q4 2024: EPS beat; revenue beat vs consensus* .
  • Q3 2024: EPS in-line; revenue miss vs consensus* .

Key Takeaways for Investors

  • Margin tailwind persists: Net interest margin expanded to 3.74%, supported by deposit inflows and bond investments — maintain focus on rates/liquidity mix and AIEA growth .
  • Credit normalization manageable: Provision increased and classified loans ticked up y/y, but NPA improved q/q and net charge-offs remained low; watch classified trends and CRE buckets .
  • Fee-income resilience: Trust fees/AUM remain strong, providing diversification against rate-driven NII volatility .
  • Operational efficiency intact: Efficiency ratio improved to 46.36% despite higher compensation accruals; cost discipline remains a lever .
  • Capital strength and shareholder returns: CET1 at 19.12% and dividend raised to $0.19; supports buy-and-hold income thesis and downside protection .
  • Estimates calibration: Expect modest upward EPS revisions near-term on margin trajectory but potential scrutiny on “revenue” definitions; communicate NII + noninterest framework versus SPGI reporting* .
  • Near-term trading: Narrative favors margin continuity and dividend hike; monitor subsequent disclosures (investor presentation cadence) and any Q2 trends in deposits/loans .

Notes

  • Company documents do not contain formal revenue/EPS/margin guidance for Q1 2025 .
  • Non-GAAP adjustments were not highlighted in the Q1 2025 materials; results reflect reported GAAP metrics .