First Financial Bankshares Q2 profit and margin rise year over year on lower deposit costs

First Financial Bankshares

16/07/2026 21:17

Overview
US regional bank's Q2 net income and EPS grew yr/yr
Net interest income and margin rose from prior year, helped by lower deposit costs
Noninterest income increased, driven by wealth management and mortgage banking fees

Outlook
Company did not provide specific financial guidance for the current or future periods

Result Drivers
LOWER DEPOSIT COSTS AND HIGHER SECURITIES YIELDS - Co said net interest income and margin benefited from a decrease in deposit costs and improved securities yields
WEALTH MANAGEMENT AND MORTGAGE FEES - Co said increases in wealth management and mortgage banking fee income contributed to noninterest income growth
HIGHER SALARY AND SOFTWARE COSTS - Co said noninterest expense rose due to merit-based and market-driven pay increases, profit sharing, and higher software amortization and professional fees

Company press release: ID:nPn3n160ra

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Interest Income
 
$136.91 mln
 
Q2 Credit Loss Provision
 
$4.18 mln
 
Q2 Net Interest Margin
 
3.90%
 
Q2 EPS
 
$0.50
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for First Financial Bankshares Inc is $35.00, about 0.6% below its July 15 closing price of $35.22
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)