First Financial Bankshares Q3 2026: Record Net Income Masks Revenue Miss
As seen on the 24/7 Wall St. homepage on October 16, 2026.
Record net income of $74.3 million came almost entirely from a credit provision that fell to $2.03 million from $24.43 million a year ago, when a borrower fraud charge-off hit the quarter. Revenue missing expectations by 2.64% and EPS landing in line leave margin expansion to 3.91% as the real story to track, with unrealized securities losses widening by $209.9 million net of tax on rising long-term rates.
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Record net income of $74.3 million in the third quarter of 2026 overstates the improvement, because the prior-year quarter carried a $24.43 million credit loss provision tied to a borrower fraud charge-off.
Net interest margin widened to 3.91% from 3.80% a year ago on declining deposit costs, the organic improvement investors in community banks pay up for, even as revenue missed expectations.
EPS of $0.52 came in essentially in line with estimates, continuing the recovery from the fraud charge-off quarter a year ago.
Unrealized securities losses widened by $209.9 million net of tax as long-term rates rose, and classified loans climbed to $294.49 million from $252.96 million a year ago.
Loans expanded at a 9.12% annualized rate in the quarter, and CEO David Bailey pointed to the imminent opening of a Bee Cave branch as the company's first full-service location in the Austin market.
Cantor Fitzgerald trimmed its price target to $34.00 while keeping a Neutral rating, and the fourth quarter will test whether revenue can close the gap to estimates without a dramatically lower provision.
Mentioned: FFIN