FFIN Overview

Sally Pope Davis' Stock Purchase: Board member Sally Pope Davis bought 1,700 shares of First Financial Bankshares for $52,241 on October 31, 2025, marking her second-largest purchase in the past year and increasing her direct ownership by 32.25%.

Stock Performance Context: The purchase occurred when First Financial's stock was at a 52-week low of $30.19, reflecting a 25% decline over the past year, primarily due to a significant credit loss from fraudulent activity.

Company Financials: Despite a decline in net income for Q3 2025 compared to the previous year, First Financial's year-to-date earnings growth was nearly 12% higher, and its net interest income has consistently increased over the last four quarters.

Outlook and Investment Potential: If the fraud incident is indeed isolated, analysts suggest that First Financial could rebound in Q4, making it a potentially worthwhile investment opportunity.

Earnings Report: First Financial Bankshares Inc. reported a profit of $52.27 million for the third quarter, down from $55.31 million the previous year.

Earnings Per Share: The earnings per share (EPS) decreased to $0.36, compared to $0.39 last year, and fell short of analysts' expectations of $0.47 per share.

Revenue Growth: The company's revenue increased by 18.6% to $127.00 million, up from $107.11 million in the same quarter last year.

Analyst Expectations: Analysts typically exclude special items when estimating earnings, which contributed to the discrepancy between reported earnings and expectations.

Earnings Report: First Financial Bankshares, Inc. reported third-quarter earnings of $52.27 million for 2025, a decrease from $55.31 million in the same quarter last year, primarily impacted by a $21.55 million credit loss due to fraudulent activity.

Net Interest Income: The bank's net interest income increased to $127 million, up from $107.11 million a year ago, with a net interest margin of 3.80%, reflecting growth in average interest-earning assets.

Credit Loss Provisions: The company recorded a provision for credit losses of $24.44 million, significantly higher than previous quarters, with net charge-offs totaling $22.34 million compared to just $786 thousand in the same quarter last year.

Growth in Assets and Deposits: As of September 30, 2025, total assets reached $14.84 billion, with loans growing to $8.24 billion and deposits totaling $12.90 billion, indicating a strong year-to-date earnings growth of nearly 12% compared to 2024.

Leadership Changes: First Financial Bankshares has appointed Tim Brown as Executive Vice President and Chief Information Officer, while John Ruzicka transitions to Chief Banking Operations Officer, enhancing the bank's operational efficiency and technology strategy.

Tim Brown's Background: Tim Brown brings over 35 years of experience in technology and operations, having previously worked at USAA and Johnson Financial Group, which positions him well to drive innovation and growth in the bank's technology offerings.

John Ruzicka's Contributions: John Ruzicka, who has been with the company since 2018, has significantly improved the bank's tech infrastructure and will now focus on optimizing backroom operations and implementing new processes.

Company Overview: First Financial Bank, a subsidiary of First Financial Bankshares, operates multiple banking regions across Texas and includes First Financial Trust & Asset Management Company and First Technology Services, Inc.