First Financial Bankshares (FFIN) AI Stock Analysis

• Market Cap: $4.61B
• Dividend Yield: 2.42%
• Average Volume (3M): 773.17K
• Price to Earnings (P/E): 18.2
• Beta (1Y): 0.78
• Revenue Growth: 12.90%
• EPS Growth: 16.92%
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 143,206,100
• 10 Day Avg. Volume: 1,144,798
• 30 Day Avg. Volume: 773,175
• PEG Ratio: 1.20
• Price to Book (P/B): 2.23
• Price to Sales (P/S): 5.18
• P/FCF Ratio: 14.27
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 4.40
• Enterprise Value/Gross Profit: 6.12
• Enterprise Value/Ebitda: 11.35
• 1Y Price Target: $36.00
• Price Target Upside: 7.62% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.99
• Revenue Forecast (FY): $689.54M

• Rating: 73 Outperform
• Price Target: $37.00 ▲(10.61% Upside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is driven primarily by strong financial performance—especially the significantly strengthened balance sheet and steady profitability—tempered by margin/ROE normalization and uneven cash-flow growth. Technical signals are neutral-to-soft, while valuation is reasonable with a moderate P/E and a solid dividend yield. The CEO succession plan adds a modest positive for continuity.

Positive Factors

Balance-sheet strength

Material de-leveraging and higher equity give the bank lasting loss-absorbing capacity and funding flexibility. Low financial leverage reduces refinancing and systemic risk, supporting lending capacity, dividend stability and resilience through credit cycles over the next 2–6 months.

Steady revenue and profitability

Consistent top-line growth with strong margins provides a durable earnings base and cash generation. Even with some margin compression, sustained revenue expansion and high operating profitability underpin predictable earnings and support reinvestment and shareholder distributions.

Planned internal CEO succession

A structured internal succession preserves institutional knowledge and continuity of strategy. Retaining the former CEO as Executive Chairman reduces execution risk, eases stakeholder transition, and supports steady leadership for strategic initiatives over the medium term.

Negative Factors

Margin and ROE normalization

Significant compression in margins and lower ROE indicates the bank is earning less per dollar of equity than prior cycles. If structural (pricing, mix, higher funding costs), this reduces return on capital, limits dividend growth and constrains capital allocation choices over the coming quarters.

Uneven cash-flow growth

Recovering but inconsistent free cash flow history shows sensitivity to business-cycle swings and loan/credit timing. Variability in cash generation can limit reliable capital deployment and heighten reliance on balance-sheet buffers during stress, affecting strategic initiatives.

Geographic concentration risk

A Texas-focused footprint concentrates credit and deposit exposure to regional economic and industry cycles (energy, real estate). This geographic concentration raises vulnerability to localized downturns and slows diversification benefits that help stabilize earnings across cycles.

First Financial Bankshares Business Overview & Revenue Model

Company Description

First Financial Bankshares, Inc., through its subsidiaries, provides commercial banking products and services in Texas. The company accepts checking, savings and money market accounts, and time deposits; commercial and industrial, municipal, agricultural, construction and development, farm, non-owner occupied and owner-occupied commercial real estate, residential, and consumer auto and non-auto loans to businesses, professional individuals, and farm and ranch operations. It also provides drive-in and night deposit, remote deposit capture, internet and mobile banking, payroll cards, transmitting funds, and other customary commercial banking services, as well as automated teller machines and safe deposit facilities. In addition, the company offers personal trust services, including wealth management, administration of estates, testamentary trusts, revocable and irrevocable trusts, and agency accounts; and securities brokerage services, as well as administer retirements and employee benefits accounts, such as 401(k) profit-sharing plans and IRAs. Further, the company provides asset management and technology services. As of December 31, 2021, it had 78 financial centers across Texas. First Financial Bankshares, Inc. was founded in 1890 and is headquartered in Abilene, Texas.

How the Company Makes Money

First Financial Bankshares generates revenue through a combination of interest income and non-interest income. The primary source of revenue is interest income from loans, which includes personal loans, commercial loans, and mortgage loans. The company also earns interest from its investment securities. Non-interest income is derived from service charges on deposit accounts, fees from wealth management services, and transaction fees. Additionally, FFIN may benefit from partnerships with local businesses and community organizations, enhancing its customer base and increasing its earning potential through various banking products and services.

First Financial Bankshares Financial Statement Overview

Summary

Strong overall fundamentals: steady revenue growth and solid profitability (2025 net margin ~30.7%, EBIT margin ~37.5%). Balance sheet is a key strength with sharply improved leverage (debt-to-equity ~0.01 in 2025) and rising equity, though ROE has eased (~13% in 2025 vs. higher in prior years) and margins have compressed from 2021–2022 peaks. Cash flow is reliable and tracks earnings, but growth has been uneven.

Income Statement

Revenue has grown steadily from 2020 to 2025 (annual growth positive each year, accelerating to 2.85% in 2025), and profitability remains strong with a 2025 net margin of ~30.7% and EBIT margin of ~37.5%. The main weakness is margin compression versus 2021–2022 (net margin down from ~45%–43% to ~31% in 2025), indicating a less favorable earnings mix or cost/credit normalization despite continued top-line growth.

Balance Sheet

Leverage has improved materially, with debt-to-equity declining from ~0.51 (2022) to ~0.01 (2025) alongside rising equity ($1.92B in 2025 vs. $1.61B in 2024) and a larger asset base ($15.45B in 2025). Returns are solid but not expanding, with return on equity around ~13% in 2025 (down from ~13.9% in 2024 and ~18.5% in 2022), suggesting improved balance-sheet conservatism but slightly lower efficiency in converting equity into earnings.

Cash Flow

Cash generation is consistent, with operating cash flow of ~$299M in 2025 and free cash flow matching operating cash flow, and free cash flow closely tracking earnings (free cash flow to net income ~1.0 in 2025 and ~0.94–0.95 in prior years). Weaknesses include uneven free cash flow growth (negative in 2022–2023 before recovering in 2024–2025) and a low operating cash flow figure relative to the company’s overall balance-sheet scale (as reflected by the provided coverage ratio remaining around ~2–3%).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	825.80M	739.21M	622.31M	551.27M	505.62M
Gross Profit	593.11M	523.22M	467.42M	502.40M	500.72M
EBITDA	319.94M	285.27M	255.88M	293.64M	285.03M
Net Income	253.59M	223.51M	198.98M	234.47M	227.56M
Balance Sheet
Total Assets	15.45B	13.98B	13.11B	12.97B	13.10B
Cash, Cash Equivalents and Short-Term Investments	1.08B	1.05B	5.27B	5.81B	7.10B
Total Debt	21.68M	197.02M	404.08M	642.51M	671.15M
Total Liabilities	13.53B	12.37B	11.61B	11.71B	11.34B
Stockholders Equity	1.92B	1.61B	1.50B	1.27B	1.76B
Cash Flow
Free Cash Flow	299.44M	292.92M	267.57M	308.49M	335.95M
Operating Cash Flow	299.44M	309.64M	284.82M	324.27M	355.15M
Investing Cash Flow	-1.02B	-736.88M	127.29M	-838.00M	-2.61B
Financing Cash Flow	1.03B	654.06M	-206.20M	315.82M	2.06B

First Financial Bankshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 33.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIN, the sentiment is Positive. The current price of 33.45 is above the 20-day moving average (MA) of 33.22, above the 50-day MA of 32.21, and below the 200-day MA of 33.60, indicating a neutral trend. The MACD of 0.14 indicates Positive momentum. The RSI at 55.15 is Neutral, neither overbought nor oversold. The STOCH value of 43.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FFIN.

First Financial Bankshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UBSI	80 Outperform	$5.98B	13.03	8.84%	3.77%	8.83%	15.49%
AX	78 Outperform	$5.17B	12.05	16.75%	―	1.66%	-9.31%
FFIN	73 Outperform	$4.61B	18.20	13.89%	2.42%	12.90%	16.92%
HWC	73 Outperform	$5.66B	11.89	11.28%	2.74%	-0.78%	25.39%
ABCB	71 Outperform	$5.42B	13.23	10.53%	1.02%	2.20%	20.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AUB	63 Neutral	$5.48B	18.97	6.72%	3.83%	43.53%	-21.74%

First Financial Bankshares Corporate Events

First Financial Bankshares Announces CEO Transition and Succession

On January 27–28, 2026, First Financial Bankshares, Inc. and its subsidiary First Financial Bank announced a planned leadership transition under which David Bailey, a 22-year company veteran who has risen from teller to senior executive roles, will become President and Chief Executive Officer of both entities effective February 1, 2026. He succeeds longtime CEO F. Scott Dueser, who, under a transition and retirement agreement signed January 27, 2026, will step down as CEO on February 1 and continue as Executive Chairman in an advisory capacity through the company’s 2028 annual meeting, with a stepped-down compensation structure and continued participation in key benefit and equity programs. The structured handover, with Dueser remaining on the board and active in governance, signals an emphasis on continuity, internal succession planning, and stable leadership for stakeholders as the Texas-focused banking group navigates its next phase of growth.

The most recent analyst rating on (FFIN) stock is a Hold with a $36.00 price target. To see the full list of analyst forecasts on First Financial Bankshares stock, see the FFIN Stock Forecast page.