First Financial Bankshares (FFIN) investor relations material

Executive summary

• Net income for Q2 2026 was $71.89 million, up 7.9% year-over-year and slightly higher than Q1 2026, with diluted EPS at $0.50, unchanged from the prior quarter and up from $0.47 a year ago.

• Net earnings for the first half of 2026 were $143.4 million, a 12.1% increase year-over-year, with diluted EPS at $1.00, up from $0.89.

• Results were driven by net interest margin expansion, higher fee income from wealth management and mortgage banking, and increased average earning assets.

• Return on average assets was 1.89% for Q2 2026 and the first half of 2026; return on average equity was 14.70% for Q2 2026.

• Noninterest income increased, led by higher wealth management fees, service charges, and mortgage-related income.

Financial highlights

• Net interest income (tax-equivalent) for Q2 2026 was $140.7 million, up from $126.7 million in Q2 2025; net interest margin improved to 3.90%.

• Noninterest income for Q2 2026 was $35.84 million, up from $32.87 million year-over-year.

• Noninterest expense for Q2 2026 was $81.11 million, up from $71.74 million year-over-year; efficiency ratio was 45.94%.

• Allowance for credit losses was $112.43 million (1.35% of loans), with net recoveries of $600 thousand in Q2 2026.

• Nonperforming assets as a percentage of loans and foreclosed assets was 0.80% at June 30, 2026.

Outlook and guidance

• Management expects continued focus on deposit growth, asset quality, and expense control, with interest rate risk and asset sensitivity to rate changes remaining key concerns.

• No significant changes anticipated in dividend policy or capital strategy.