Since November 2025, First Financial Bankshares has been in a holding pattern, posting a small return of 2.4% while floating around $31.71. The stock also fell short of the S&P 500’s 10% gain during that period.
Is there a buying opportunity in First Financial Bankshares, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free.
Why Is First Financial Bankshares Not Exciting?
We're sitting this one out for now. Here are three reasons you should be careful with FFIN and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Regrettably, First Financial Bankshares’s revenue grew at a sluggish 5.3% compounded annual growth rate over the last five years. This was below our standard for the banking sector.
2. Net Interest Income Points to Soft Demand
Our experience and research show the market cares primarily about a bank’s net interest income growth as one-time fees are considered a lower-quality and non-recurring revenue source.
First Financial Bankshares’s net interest income has grown at a 7.4% annualized rate over the last five years, worse than the broader banking industry.
3. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
First Financial Bankshares’s weak 4.7% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.
Final Judgment
First Financial Bankshares isn’t a terrible business, but it doesn’t pass our quality test. With its shares trailing the market in recent months, the stock trades at 2.1× forward P/B (or $31.71 per share). At this valuation, there’s a lot of good news priced in - we think there are better stocks to buy right now. We’d suggest looking at one of our all-time favorite software stocks.
Stocks We Would Buy Instead of First Financial Bankshares
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