First Financial Bankshares, Inc. (NASDAQ: FFIN) reported earnings of $74.31 million for the third quarter of 2026, a significant increase from the $52.27 million reported in the same quarter of 2025. The company also reported diluted earnings per share of $0.52 for the quarter, up from $0.36 in the prior year period.
Net interest income for the third quarter of 2026 was $138.51 million, compared to $127.00 million in the prior year. The net interest margin, on a tax-equivalent basis, was 3.91 percent for the quarter, compared to 3.80 percent in the prior year. Average interest-earning assets totaled $14.43 billion for the quarter.
The company recorded a provision for credit losses of $2.03 million for the third quarter of 2026, a substantial decrease from the $24.44 million recorded in the same quarter of 2025. This prior year expense was driven by a large loan charged off due to borrower fraud. At September 30, 2026, the allowance for credit losses totaled $113.89 million, or 1.33 percent of loans held-for-investment. The company also recorded net charge-offs of $935 thousand for the third quarter of 2026.
Noninterest income for the third quarter of 2026 was $35.64 million, compared to $34.26 million in the prior year. Wealth Management fee income increased to $14.49 million for the quarter, driven by new account growth and increased mineral fee income due to oil and gas prices. Service charges on deposits also increased to $6.69 million for the quarter. Mortgage income decreased to $4.18 million for the quarter, impacted by a spike in long-term rates.
Noninterest expense for the third quarter of 2026 totaled $81.05 million, compared to $73.67 million in the prior year. The increase was primarily due to annual merit-based and market-driven pay increases that were effective March 1st. The company's efficiency ratio was 45.59 percent for the third quarter of 2026.
As of September 30, 2026, consolidated total assets were $15.16 billion, compared to $14.84 billion at September 30, 2025. Loans totaled $8.54 billion at September 30, 2026, an increase of $191.86 million, or 9.12 percent annualized, from the previous quarter. Deposits and repurchase agreements totaled $13.19 billion at September 30, 2026. Shareholders' equity was $1.83 billion as of September 30, 2026. The company noted that equity was down compared to the linked quarter due to an increase in the unrealized loss on the securities portfolio of $209.89 million, net of tax.
David Bailey, President and CEO, stated, 'We are pleased to report another record quarter of net income, largely driven by continued expansion of our net interest margin.' He also noted the company is opening a new Bee Cave location in the Austin market later in October.
