First Financial Bankshares, Inc. (FFIN): A Bull Case Theory

We came across a bullish thesis on First Financial Bankshares, Inc. (FFIN) on Substack by Serhio MaxDividends. In this article, we will summarize the bulls’ thesis on FFIN. First Financial Bankshares, Inc. (FFIN)’s share was trading at $34.23 as of May 6^th. FFIN’s trailing and forward P/E were 21.13 and 24.57 respectively according to Yahoo Finance.

An aerial shot of a regional bank with its numerous branches situated in a city.

First Financial Bankshares (FFIN), a Texas-based regional bank, continues to deliver strong shareholder returns and financial performance, underscored by a 5.6% dividend increase to $0.19 per share, boosting its forward yield to 2.26%. In Q1 2025, the bank posted net income of $61.35 million, a 14.9% year-over-year gain, with EPS rising to $0.43 from $0.37. Net interest income surged 18.5% to $118.79 million, benefiting from a healthy net interest margin of 3.74%. The bank reported $14.31 billion in total assets, $7.95 billion in loans, and $12.52 billion in deposits, while maintaining a lean efficiency ratio of 46.36%. Despite these strengths, emerging credit concerns warrant attention. Nonperforming assets increased to 0.78% of loans from 0.51% a year ago, and classified loans rose 21.8% to $245.61 million. In response, the bank bolstered its provision for credit losses to $3.53 million and raised its allowance to 1.27% of loans, reflecting a proactive stance on risk. Trading at $33.78 with a forward P/E of ~11x, FFIN remains a compelling investment, combining disciplined growth, operational efficiency, and rising shareholder payouts, while taking prudent steps to manage asset quality. The stock offers attractive value with a balanced outlook despite credit normalization.

First Financial Bankshares, Inc. (FFIN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held FFIN at the end of the fourth quarter which was 16 in the previous quarter. While we acknowledge the risk and potential of FFIN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than FFIN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.