First Financial Bankshares nudges dividend 5.6% to $0.19 — steady growth with a watchful eye on credit quality

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First Financial Bankshares (NASDAQ: FFIN), the Texas-based regional bank, has announced a 5.6% increase in its quarterly dividend, raising it from $0.18 to $0.19 per share. This adjustment brings the forward yield to 2.26%. Shareholders of record by June 16 will receive the payout on July 1. ​

First Financial Bankshares (NASDAQ: FFIN)

Financial Score: 92 / 99

Quick Tip

To keep your portfolio strong, stay on top of the financials for each company you hold. Solid companies mean better returns, so be sure to check in on their quarterly and annual numbers.

Interesting stocks usually score 80+ on the Financial Scale, with top players hitting 90+. If that score dips below 80, it might be a good time to consider cutting ties before things take a turn.

In Q1 2025, the bank reported net income of $61.35 million, marking a 14.9% year-over-year increase. Earnings per share rose to $0.43, up from $0.37 in Q1 2024. Net interest income grew by 18.5% to $118.79 million, driven by a net interest margin expansion to 3.74%. 

Total assets reached $14.31 billion, with loans totaling $7.95 billion and deposits at $12.52 billion as of March 31, 2025. The efficiency ratio improved to 46.36%, indicating effective cost management. ​

However, there are signs of emerging credit concerns. Nonperforming assets increased to 0.78% of loans, up from 0.51% a year earlier. Classified loans rose by 21.8% to $245.61 million. In response, the bank increased its provision for credit losses to $3.53 million and raised the allowance for credit losses to 1.27% of loans. 

As of April 30, 2025, FFIN shares are trading around $33.78, reflecting a forward P/E ratio of approximately 11x.

In summary, First Financial Bankshares continues to demonstrate solid financial performance and shareholder returns, while proactively addressing potential credit risks.​