First Financial Bankshares (FFIN) AI Stock Analysis

• Market Cap: $4.56B
• Dividend Yield: 2.42%
• Average Volume (3M): 773.17K
• Price to Earnings (P/E): 17.9
• 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: 1.88
• Price to Book (P/B): 3.20
• Price to Sales (P/S): 6.97
• P/FCF Ratio: 17.58
• Enterprise Value/Market Cap: 0.77
• Enterprise Value/Revenue: 4.36
• Enterprise Value/Gross Profit: 6.13
• Enterprise Value/Ebitda: 11.30
• 1Y Price Target: $36.00
• Price Target Upside: 13.14% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $35.00 ▲(9.99% Upside)

The score is driven primarily by strong financial performance (steady growth, solid profitability, and improved balance-sheet leverage). Offsetting this is a mixed-to-weak technical backdrop with the stock below key longer-term moving averages. Valuation is reasonable with a moderate dividend yield, and the CEO succession plan adds a modest continuity positive.

Positive Factors

Improved Capital and Leverage

A materially stronger capital position and much lower leverage provide a durable buffer against credit losses and rate volatility. High capital ratios support continued organic loan and securities growth, reduce regulatory strain, and lower funding vulnerability over the next several quarters.

Consistent Revenue Growth

Steady top-line expansion across multiple years indicates a resilient regional banking franchise and expanding customer adoption. Persistent revenue growth supports reinvestment in products, branch/technology, and underwriting capacity, underpinning sustainable profitability beyond short-term cycles.

Strong Cash Conversion

High free-cash-flow conversion delivers reliable internal funding for loan growth, capital expenditures, and shareholder returns. This consistent cash generation enhances financial flexibility and lowers dependence on external financing, sustaining operations and strategic initiatives over multiple quarters.

Negative Factors

Isolated Large Credit Loss (Fraud)

A sizable fraud-related credit loss highlights potential underwriting and controls weaknesses in commercial lending. Even if isolated, legal recovery is uncertain and such events can force higher reserves, tighter underwriting, and slower commercial loan growth while management addresses control gaps.

Volatility in Free Cash Flow Growth

Irregular free cash flow growth undermines predictability of funds for dividends, buybacks, and organic expansion. Even with high absolute conversion, declining or volatile FCF complicates capital planning and can constrain consistent return of capital or opportunistic investments over the medium term.

Earnings Concentrated in Interest Income

A heavy dependence on interest income leaves earnings exposed to net interest margin swings and rate cycle shifts. Structural margin normalization or prolonged NIM compression would pressure revenue and net income absent material growth in fee-based services or diversified noninterest income streams.

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, resilient profitability with healthy (though normalized) margins, and a meaningfully de-risked balance sheet with very low leverage. Main drawback is volatile and recently declining free cash flow growth despite solid cash generation.

Income Statement

Revenue has grown steadily from 2020 through 2024 and remains positive in TTM (Trailing-Twelve-Months), with profitability staying strong throughout. Net profit margin is healthy (about 30% in 2023–TTM), though it has come down from unusually high levels in 2021–2022, and operating margins have similarly moderated versus earlier peaks—suggesting some normalization in earnings power despite continued top-line growth.

Balance Sheet

Leverage has improved meaningfully: debt relative to equity declined from higher levels in 2021–2022 to very low in TTM (Trailing-Twelve-Months), indicating a stronger capital position and reduced balance-sheet risk. Returns on equity remain solid (low-to-mid teens recently), although they are below the 2022 high, implying profitability is still good but not as elevated as the peak period.

Cash Flow

Cash generation is consistently strong, with free cash flow closely tracking net income across the period (roughly mid-90%+ conversion), which supports earnings quality. The main weakness is volatility in free cash flow growth, including a decline in TTM (Trailing-Twelve-Months) after growth in 2024, pointing to less predictable year-to-year cash flow momentum even though absolute cash flow remains healthy.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	802.90M	739.21M	622.31M	551.27M	505.62M	491.94M
Gross Profit	571.04M	523.22M	467.42M	502.40M	500.72M	458.18M
EBITDA	309.88M	285.27M	255.88M	293.64M	285.03M	255.16M
Net Income	242.59M	223.51M	198.98M	234.47M	227.56M	202.03M
Balance Sheet
Total Assets	14.84B	13.98B	13.11B	12.97B	13.10B	10.90B
Cash, Cash Equivalents and Short-Term Investments	5.50B	1.05B	5.27B	5.81B	7.10B	5.12B
Total Debt	72.60M	197.02M	404.08M	642.51M	671.15M	430.09M
Total Liabilities	13.01B	12.37B	11.61B	11.71B	11.34B	9.23B
Stockholders Equity	1.83B	1.61B	1.50B	1.27B	1.76B	1.68B
Cash Flow
Free Cash Flow	289.79M	292.92M	267.57M	308.49M	335.95M	194.22M
Operating Cash Flow	302.04M	309.64M	284.82M	324.27M	355.15M	210.67M
Investing Cash Flow	-1.21B	-736.88M	127.29M	-838.00M	-2.61B	-1.26B
Financing Cash Flow	978.67M	654.06M	-206.20M	315.82M	2.06B	1.50B

First Financial Bankshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 31.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIN, the sentiment is Negative. The current price of 31.82 is below the 20-day moving average (MA) of 31.84, above the 50-day MA of 31.31, and below the 200-day MA of 33.57, indicating a neutral trend. The MACD of 0.25 indicates Positive momentum. The RSI at 49.40 is Neutral, neither overbought nor oversold. The STOCH value of 8.61 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$5.94B	12.95	8.84%	3.77%	8.83%	15.49%
AUB	77 Outperform	$5.54B	19.34	6.72%	3.83%	43.53%	-21.74%
ABCB	75 Outperform	$5.51B	13.55	10.53%	1.02%	2.20%	20.88%
AX	75 Outperform	$5.61B	12.53	16.75%	―	1.66%	-9.31%
FFIN	73 Outperform	$4.56B	17.94	13.89%	2.42%	12.90%	16.92%
HWC	73 Outperform	$5.75B	12.09	11.28%	2.74%	-0.78%	25.39%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

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.