First Financial Bankshares posts record Q3 profit of $74.3 million as margin widens

First Financial Bankshares reported another record quarterly profit, as a wider lending margin and a much lighter credit bill lifted third-quarter earnings about 42% from a year ago.

The Abilene, Texas-based lender earned $74.31 million, or $0.52 a diluted share, in the three months ended Sept. 30, according to its earnings release filed with an 8-K. That compares with $52.27 million, or $0.36 a share, a year earlier and $71.89 million, or $0.50, in the second quarter.

“We are pleased to report another record quarter of net income, largely driven by continued expansion of our net interest margin,” President and CEO David Bailey said in the release.

Net interest income rose to $138.51 million from $127.00 million a year ago. The tax-equivalent net interest margin was 3.91%, up from 3.80% in the year-ago quarter and 3.90% in the second quarter.

The bigger swing came from credit. The provision for credit losses fell to $2.03 million from $24.44 million a year earlier, when the company took a large charge-off tied to borrower fraud. Net charge-offs were $935 thousand, versus $22.34 million in the third quarter of 2025. Nonperforming assets held at 0.71% of loans and foreclosed assets, down from 0.80% at the end of June, though classified loans rose to $294.49 million from $283.10 million.

Fee income edged up to $35.64 million, led by wealth management fees of $14.49 million. Mortgage income slipped to $4.18 million, which the company tied to a spike in long-term rates during the quarter. Noninterest expense climbed to $81.05 million from $73.67 million a year ago, and the efficiency ratio was 45.59%.

Loans grew $191.86 million in the quarter, or 9.12% annualized, to $8.54 billion. Shareholders' equity, however, fell to $1.83 billion from $2.00 billion at June 30, mainly because the after-tax unrealized loss on the securities portfolio widened by $209.89 million to $489.55 million as long-term rates moved. Book value per share dropped to $12.78 from $13.93.

The company declared a quarterly cash dividend of $0.22 a share, up from $0.19 a year ago. Bailey said First Financial plans to open its first full-service branch in the Austin market, in Bee Cave, later this month.

By the numbers

• Q3 net income: $74.31 million (vs. $52.27 million a year ago)
• Diluted EPS: $0.52 (vs. $0.36)
• Net interest margin: 3.91% (vs. 3.80%)
• Provision for credit losses: $2.03 million (vs. $24.44 million)
• Loans: $8.54 billion, up 9.12% annualized in the quarter
• Unrealized securities loss, after tax: $489.55 million

Sources

1. First Financial Bankshares, Inc., Form 8-K (Items 2.02, 9.01), filed Oct. 16, 2026, accession 0001193125-26-424085
2. First Financial Bankshares third quarter 2026 earnings release (Exhibit 99.1), dated Oct. 15, 2026

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