Texas
|
75-0944023
|
|
(State or other jurisdiction of
incorporation or organization) |
(I.R.S. Employer
Identification No.) |
|
400 Pine Street, Abilene, Texas
|
79601
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|||
|
|
|
|
|
|
|
Non-accelerated
filer
|
☐
|
Smaller reporting company
|
☐
|
|||
|
|
|
|
|
|
|
|
|
Emerging growth company
|
☐
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
||
Class A Common Stock, $0.01 par value
|
FFIN
|
NASDAQ Global Select Market
|
Class
|
Outstanding at July 30, 2019
|
|
Common Stock
, $0.01 par value per share
|
135,809,224
|
Item
|
|
Page
|
||||
1.
|
2
|
|||||
|
3
|
|||||
|
4
|
|||||
|
5
|
|||||
|
6
|
|||||
|
7
|
|||||
|
8
|
|||||
2.
|
35
|
|||||
3.
|
55
|
|||||
4.
|
55
|
|||||
|
PART II
|
|
||||
|
OTHER INFORMATION
|
|
||||
1.
|
56
|
|||||
1A.
|
56
|
|||||
2.
|
56
|
|||||
3.
|
56
|
|||||
4.
|
56
|
|||||
5.
|
56
|
|||||
6.
|
57
|
|||||
|
58
|
Item 1.
|
Financial Statements.
|
|
Three Months Ended
June 30, |
Six Months Ended
June 30, |
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
INTEREST INCOME:
|
|
|
|
|
||||||||||||
Interest and fees on loans
|
$ |
55,740
|
$ |
49,105
|
$ |
108,971
|
$ |
95,851
|
||||||||
Interest on investment securities:
|
|
|
|
|
||||||||||||
Taxable
|
13,925
|
12,719
|
27,213
|
24,073
|
||||||||||||
Exempt from federal income tax
|
9,244
|
9,983
|
19,007
|
20,324
|
||||||||||||
Interest on federal funds sold and interest-bearing deposits in banks
|
667
|
271
|
1,286
|
912
|
||||||||||||
Total interest income
|
79,576
|
72,078
|
156,477
|
141,160
|
||||||||||||
INTEREST EXPENSE:
|
|
|
|
|
||||||||||||
Interest on deposits
|
7,286
|
4,005
|
13,947
|
7,524
|
||||||||||||
Other
|
675
|
462
|
1,401
|
576
|
||||||||||||
Total interest expense
|
7,961
|
4,467
|
15,348
|
8,100
|
||||||||||||
Net interest income
|
71,615
|
67,611
|
141,129
|
133,060
|
||||||||||||
PROVISION FOR LOAN LOSSES
|
600
|
1,105
|
1,565
|
2,415
|
||||||||||||
Net interest income after provision for loan losses
|
71,015
|
66,506
|
139,564
|
130,645
|
||||||||||||
NONINTEREST INCOME:
|
|
|
|
|
||||||||||||
Trust fees
|
7,027
|
7,070
|
14,006
|
13,975
|
||||||||||||
Service charges on deposit accounts
|
5,374
|
5,375
|
10,550
|
10,259
|
||||||||||||
ATM, interchange and credit card fees
|
7,352
|
7,041
|
14,192
|
14,037
|
||||||||||||
Real estate mortgage operations
|
4,721
|
3,951
|
8,195
|
6,884
|
||||||||||||
Net gain on sale of
available-for-sale
securities (includes $676 and $67 for the three months ended June 30, 2019 and 2018, respectively, and $676 and $1,288 for the six months ended June 30, 2019 and 2018, respectively, related to accumulated other comprehensive earnings reclassifications)
|
676
|
67
|
676
|
1,288
|
||||||||||||
Net gain (loss) on sale of foreclosed assets
|
53
|
19
|
122
|
118
|
||||||||||||
Net gain (loss) on sale of assets
|
6
|
—
|
6
|
(91
|
) | |||||||||||
Interest on loan recoveries
|
903
|
289
|
1,241
|
408
|
||||||||||||
Other
|
1,864
|
1,676
|
3,425
|
3,034
|
||||||||||||
Total noninterest income
|
27,976
|
25,488
|
52,413
|
49,912
|
||||||||||||
NONINTEREST EXPENSE:
|
|
|
|
|
||||||||||||
Salaries and employee benefits
|
27,394
|
26,862
|
53,918
|
53,065
|
||||||||||||
Loss from partial settlement of pension plan
|
|
|
—
|
|
|
|
—
|
|
|
|
900
|
|
|
|
—
|
|
Net occupancy expense
|
2,779
|
2,806
|
5,542
|
5,689
|
||||||||||||
Equipment expense
|
2,827
|
3,440
|
5,954
|
6,957
|
||||||||||||
FDIC insurance premiums
|
538
|
632
|
1,076
|
1,199
|
||||||||||||
ATM, interchange and credit card expenses
|
2,427
|
2,205
|
4,810
|
4,348
|
||||||||||||
Professional and service fees
|
1,987
|
2,026
|
3,820
|
4,439
|
||||||||||||
Printing, stationery and supplies
|
502
|
612
|
868
|
1,098
|
||||||||||||
Operational and other losses
|
480
|
305
|
746
|
871
|
||||||||||||
Software amortization and expense
|
1,287
|
479
|
2,210
|
1,003
|
||||||||||||
Amortization of intangible assets
|
264
|
384
|
532
|
771
|
||||||||||||
Other
|
7,819
|
7,393
|
15,297
|
15,503
|
||||||||||||
Total noninterest expense
|
48,304
|
47,144
|
95,673
|
94,943
|
||||||||||||
EARNINGS BEFORE INCOME TAXES
|
50,687
|
44,850
|
96,304
|
85,614
|
||||||||||||
INCOME TAX EXPENSE
|
8,594
|
7,217
|
15,959
|
13,462
|
||||||||||||
NET EARNINGS
|
$ |
42,093
|
$ |
37,633
|
$ |
80,345
|
$ |
72,152
|
||||||||
EARNINGS PER SHARE, BASIC
|
$ |
0.31
|
$ |
0.28
|
$ |
0.59
|
$ |
0.53
|
||||||||
EARNINGS PER SHARE, ASSUMING DILUTION
|
$ |
0.31
|
$ |
0.28
|
$ |
0.59
|
$ |
0.53
|
||||||||
DIVIDENDS PER SHARE
|
$ |
0.12
|
$ |
0.11
|
$ |
0.23
|
$ |
0.20
|
||||||||
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
NET EARNINGS
|
$ |
42,093
|
$ |
37,633
|
$ |
80,345
|
$ |
72,152
|
||||||||
OTHER ITEMS OF COMPREHENSIVE EARNINGS (LOSS):
|
|
|
|
|
||||||||||||
Change in unrealized gain on investment securities
available-for-sale,
before income taxes
|
37,057
|
(11,600
|
) |
72,071
|
(54,306
|
) | ||||||||||
Reclassification adjustment for realized gains on investment securities included in net earnings, before income tax
|
(676
|
) |
(67
|
) |
(676
|
) |
(1,288
|
) | ||||||||
Total other items of comprehensive earnings
|
36,381
|
(11,667
|
) |
71,395
|
(55,594
|
) | ||||||||||
Income tax benefit (expense) related to other items of comprehensive earnings
|
(7,640
|
) |
2,450
|
(14,993
|
) |
11,675
|
||||||||||
Reclassification of certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act to retained earnings
|
—
|
—
|
—
|
5,759
|
||||||||||||
COMPREHENSIVE EARNINGS
|
$ |
70,834
|
$ |
28,416
|
$ |
136,747
|
$ |
33,992
|
||||||||
|
Common Stock
|
Capital
|
Retained
|
Treasury Stock
|
Deferred
|
Accumulated
Other Comprehensive |
Total
Shareholders’ |
||||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Surplus
|
Earnings
|
Shares
|
Amounts
|
Compensation
|
Earnings
|
Equity
|
||||||||||||||||||||||||||||
Balances at March 31, 2018
|
67,612,760
|
$ |
676
|
$ |
437,868
|
$ |
533,427
|
(493,994
|
) | $ |
(7,291
|
) | $ |
7,291
|
$ |
(2,157
|
) | $ |
969,814
|
||||||||||||||||||
Net earnings (unaudited)
|
—
|
—
|
—
|
37,633
|
—
|
—
|
—
|
—
|
37,633
|
||||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
46,188
|
1
|
963
|
—
|
—
|
—
|
—
|
—
|
964
|
||||||||||||||||||||||||||||
Restricted stock grant (unaudited)
|
10,710
|
—
|
523
|
—
|
—
|
—
|
—
|
—
|
523
|
||||||||||||||||||||||||||||
Cash dividends declared, $
0.11
per share (unaudited)
|
—
|
—
|
—
|
(14,466
|
) |
—
|
—
|
—
|
—
|
(14,466
|
) | ||||||||||||||||||||||||||
Change in unrealized gain in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(9,217
|
) |
(9,217
|
) | ||||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
2,824
|
(128
|
) |
128
|
—
|
—
|
|||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
377
|
—
|
—
|
—
|
—
|
—
|
377
|
||||||||||||||||||||||||||||
Reclassification of unrealized gain in equity securities at December 31, 2017 from accumulated other comprehensive
earnings to retained earnings (unaudited) |
—
|
—
|
—
|
21
|
—
|
—
|
—
|
(21
|
) |
—
|
|||||||||||||||||||||||||||
Balances at June 30, 2018 (unaudited)
|
67,669,658
|
$ |
677
|
$ |
439,731
|
$ |
556,615
|
(491,170
|
) | $ |
(7,419
|
) | $ |
7,419
|
$ |
(11,395
|
) | $ |
985,628
|
||||||||||||||||||
Balances at March 31, 2019
|
135,680,420
|
$ |
1,356
|
$ |
445,672
|
$ |
629,988
|
(928,678
|
) | $ |
(7,660
|
) | $ |
7,660
|
$ |
30,506
|
$ |
1,107,522
|
|||||||||||||||||||
Net earnings (unaudited)
|
—
|
—
|
—
|
42,093
|
—
|
—
|
—
|
—
|
42,093
|
||||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
81,272
|
2
|
938
|
—
|
—
|
—
|
—
|
—
|
940
|
||||||||||||||||||||||||||||
Restricted stock grant (unaudited)
|
47,532
|
—
|
1,426
|
—
|
—
|
—
|
—
|
—
|
1,426
|
||||||||||||||||||||||||||||
Cash dividends declared, $.012 per share (unaudited)
|
—
|
—
|
—
|
(16,287
|
) |
—
|
—
|
—
|
—
|
(16,287
|
) | ||||||||||||||||||||||||||
Change in unrealized gain in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
28,741
|
28,741
|
||||||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
(763
|
) |
(163
|
) |
163
|
—
|
—
|
||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
313
|
—
|
—
|
—
|
—
|
—
|
313
|
||||||||||||||||||||||||||||
Balances at June 30, 2019 (unaudited)
|
135,809,224
|
$ |
1,358
|
$ |
448,349
|
$ |
655,794
|
(929,441
|
) | $ |
(7,823
|
) | $ |
7,823
|
$ |
59,247
|
$ |
1,164,748
|
|||||||||||||||||||
Balances at December 31, 2017
|
66,260,444
|
$ |
663
|
$ |
378,062
|
$ |
517,257
|
(495,964
|
) | $ |
(7,148
|
) | $ |
7,148
|
$ |
26,786
|
$ |
922,768
|
|||||||||||||||||||
Net earnings (unaudited)
|
—
|
—
|
—
|
72,152
|
—
|
—
|
—
|
—
|
72,152
|
||||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
109,133
|
1
|
2,318
|
—
|
—
|
—
|
—
|
—
|
2,319
|
||||||||||||||||||||||||||||
Restricted stock grant (unaudited)
|
10,710
|
—
|
523
|
—
|
—
|
—
|
—
|
—
|
523
|
||||||||||||||||||||||||||||
Cash dividends declared, $
0.20
per share (unaudited)
|
—
|
—
|
—
|
(27,056
|
) |
—
|
—
|
—
|
—
|
(27,056
|
) | ||||||||||||||||||||||||||
Stock issued in acquisition of Commercial Bancshares, Inc.
|
1,289,371
|
13
|
58,074
|
—
|
—
|
—
|
—
|
—
|
58,087
|
||||||||||||||||||||||||||||
Change in unrealized gain in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(43,919
|
) |
(43,919
|
) | ||||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
4,794
|
(271
|
) |
271
|
—
|
—
|
|||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
754
|
—
|
—
|
—
|
—
|
—
|
754
|
||||||||||||||||||||||||||||
Reclassification of certain income tax effects related to the change in the U.S. statutory federal income tax rate under the
Tax Cuts and Jobs Act to retained earnings |
—
|
—
|
—
|
(5,759
|
) |
—
|
—
|
—
|
5,759
|
—
|
|||||||||||||||||||||||||||
Reclassification of unrealized gain in equity securities at December 31, 2017 from accumulated other comprehensive
earnings to retained earnings (unaudited) |
—
|
—
|
—
|
21
|
—
|
—
|
—
|
(21
|
) |
—
|
|||||||||||||||||||||||||||
Balances at June 30, 2018 (unaudited)
|
67,669,658
|
$ |
677
|
$ |
439,731
|
$ |
556,615
|
(491,170
|
) | $ |
(7,419
|
) | $ |
7,419
|
$ |
(11,395
|
) | $ |
985,628
|
||||||||||||||||||
Balances at December 31, 2018
|
67,753,133
|
$ |
678
|
$ |
443,114
|
$ |
606,658
|
(467,811
|
) | $ |
(7,507
|
) | $ |
7,507
|
$ |
2,845
|
$ |
1,053,295
|
|||||||||||||||||||
Net earnings (unaudited)
|
—
|
—
|
—
|
80,345
|
—
|
—
|
—
|
—
|
80,345
|
||||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
168,349
|
2
|
3,184
|
—
|
—
|
—
|
—
|
—
|
3,186
|
||||||||||||||||||||||||||||
Restricted stock grant
(unaudited)
|
47,532
|
—
|
1,426
|
—
|
—
|
—
|
—
|
—
|
1,426
|
||||||||||||||||||||||||||||
Cash dividends declared, $.
0.23
per share (unaudited)
|
—
|
—
|
—
|
(30,531
|
) |
—
|
—
|
—
|
—
|
(30,531
|
) | ||||||||||||||||||||||||||
Change in unrealized gain in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
56,402
|
56,402
|
||||||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
2,709
|
(316
|
) |
316
|
—
|
—
|
|||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
625
|
—
|
—
|
—
|
—
|
—
|
625
|
||||||||||||||||||||||||||||
Two-for-one
stock split in the form of a
100
% stock dividend (unaudited)
|
67,840,210
|
678
|
—
|
(678
|
) |
(464,339
|
) |
—
|
—
|
—
|
—
|
||||||||||||||||||||||||||
Balances at June 30, 2019 (unaudited)
|
135,809,224
|
$ |
1,358
|
$ |
448,349
|
$ |
655,794
|
(929,441
|
) | $ |
(7,823
|
) | $ |
7,823
|
$ |
59,247
|
$ |
1,164,748
|
|||||||||||||||||||
|
Six Months Ended June 30,
|
|||||||
|
2019
|
2018
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
||||||
Net earnings
|
$ |
80,345
|
$ |
72,152
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
||||||
Depreciation and amortization
|
5,946
|
6,433
|
||||||
Provision for loan losses
|
1,565
|
2,415
|
||||||
Securities premium amortization (discount accretion), net
|
12,217
|
14,109
|
||||||
Gain (loss) on sale of assets, net
|
824
|
(1,245
|
) | |||||
Deferred federal income tax expense (benefit)
|
2,206
|
(908
|
) | |||||
Change in loans
held-for-sale
|
(631
|
) |
(9,009
|
) | ||||
Change in other assets
|
1,021
|
(1,192
|
) | |||||
Change in other liabilities
|
5,219
|
6,218
|
||||||
Total adjustments
|
28,367
|
16,821
|
||||||
Net cash provided by operating activities
|
108,712
|
88,973
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
||||||
Cash received in acquisition of Commercial Bancshares, Inc.
|
—
|
18,653
|
||||||
Net decrease in interest-bearing time deposits in banks
|
498
|
—
|
||||||
Activity in
available-for-sale
securities:
|
|
|
||||||
Sales
|
66,052
|
149,125
|
||||||
Maturities
|
2,201,877
|
3,208,139
|
||||||
Purchases
|
(2,280,686
|
) |
(3,471,387
|
) | ||||
Net increase in loans
|
(88,629
|
) |
(80,480
|
) | ||||
Purchases of bank premises and equipment and other assets
|
(6,360
|
) |
(8,544
|
) | ||||
Proceeds from sale of bank premises and equipment and other assets
|
187
|
776
|
||||||
Net cash used in investing activities
|
(107,061
|
) |
(183,718
|
) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
||||||
Net increase (decrease) in noninterest-bearing deposits
|
51,445
|
(97,737
|
) | |||||
Net increase in interest-bearing deposits
|
137,932
|
3,481
|
||||||
Net increase (decrease) in borrowings
|
(106,701
|
) |
125,935
|
|||||
Common stock transactions:
|
|
|
||||||
Proceeds from stock issuances
|
3,186
|
2,319
|
||||||
Dividends paid
|
(28,463
|
) |
(25,434
|
) | ||||
Net cash provided by financing activities
|
57,399
|
8,564
|
||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
59,050
|
(86,181
|
) | |||||
CASH AND CASH EQUIVALENTS, beginning of period
|
248,647
|
372,347
|
||||||
CASH AND CASH EQUIVALENTS, end of period
|
$ |
307,697
|
$ |
286,166
|
||||
SUPPLEMENTAL INFORMATION AND NONCASH TRANSACTIONS:
|
|
|
||||||
Interest paid
|
$ |
15,062
|
$ |
8,074
|
||||
Federal income taxes paid
|
12,752
|
12,762
|
||||||
Transfer of loans and bank premises to other real estate
|
364
|
126
|
||||||
Investment securities purchased but not settled
|
29,355
|
—
|
||||||
Restricted stock grant to officers and directors
|
1,426
|
523
|
||||||
Stocks issued in acquisition of Commercial Bancshares, Inc.
|
—
|
58,087
|
|
June 30, 2019
|
|||||||||||||||
|
Amortized
Cost Basis |
Gross
Unrealized Holding Gains |
Gross
Unrealized Holding Losses |
Estimated
Fair Value |
||||||||||||
U.S. Treasury securities
|
$ |
9,984
|
$ |
36
|
$ |
—
|
$ |
10,020
|
||||||||
Obligations of states and political subdivisions
|
1,103,682
|
53,593
|
(61
|
) |
1,157,214
|
|||||||||||
Corporate bonds and other
|
4,643
|
51
|
—
|
4,694
|
||||||||||||
Residential mortgage-backed securities
|
1,579,544
|
19,732
|
(3,101
|
) |
1,596,175
|
|||||||||||
Commercial mortgage-backed securities
|
484,919
|
6,929
|
(459
|
) |
491,389
|
|||||||||||
Total securities
available-for-sale
|
$ |
3,182,772
|
$ |
80,341
|
$ |
(3,621
|
) | $ |
3,259,492
|
|||||||
|
June 30, 2018
|
|||||||||||||||
|
Amortized
Cost Basis |
Gross
Unrealized Holding Gains |
Gross
Unrealized Holding Losses |
Estimated
Fair Value |
||||||||||||
U.S. Treasury Securities
|
$ |
9,957
|
$ |
8
|
$ |
—
|
$ |
9,965
|
||||||||
Obligations of U.S. government sponsored enterprises and agencies
|
304
|
—
|
(1
|
) |
303
|
|||||||||||
Obligations of states and political subdivisions
|
1,257,547
|
29,924
|
(2,696
|
) |
1,284,775
|
|||||||||||
Corporate bonds and other
|
4,861
|
—
|
(79
|
) |
4,782
|
|||||||||||
Residential mortgage-backed securities
|
1,464,345
|
1,630
|
(30,718
|
) |
1,435,257
|
|||||||||||
Commercial mortgage-backed securities
|
471,398
|
—
|
(8,913
|
) |
462,485
|
|||||||||||
Total securities
available-for-sale
|
$ |
3,208,412
|
$ |
31,562
|
$ |
(42,407
|
) | $ |
3,197,567
|
|||||||
|
December 31, 2018
|
|||||||||||||||
|
Amortized
Cost Basis |
Gross
Unrealized Holding Gains |
Gross
Unrealized Holding Losses |
Estimated
Fair Value |
||||||||||||
U.S. Treasury securities
|
$ |
9,970
|
$ |
—
|
$ |
(8
|
) | $ |
9,962
|
|||||||
Obligations of U.S. government sponsored enterprises and agencies
|
301
|
—
|
—
|
301
|
||||||||||||
Obligations of states and political subdivisions
|
1,229,828
|
30,013
|
(1,970
|
) |
1,257,871
|
|||||||||||
Corporate bonds and other
|
4,875
|
—
|
(77
|
) |
4,798
|
|||||||||||
Residential mortgage-backed securities
|
1,472,228
|
3,928
|
(21,611
|
) |
1,454,545
|
|||||||||||
Commercial mortgage-backed securities
|
436,366
|
670
|
(5,736
|
) |
431,300
|
|||||||||||
Total securities
available-for-sale
|
$ |
3,153,568
|
$ |
34,611
|
$ |
(29,402
|
) | $ |
3,158,777
|
|||||||
|
Amortized
Cost Basis |
Estimated
Fair Value |
||||||
Due within one year
|
$ |
165,912
|
$ |
167,217
|
||||
Due after one year through five years
|
483,916
|
506,941
|
||||||
Due after five years through ten years
|
466,755
|
495,582
|
||||||
Due after ten years
|
1,726
|
2,188
|
||||||
Mortgage-backed securities
|
2,064,463
|
2,087,564
|
||||||
Total
|
$ |
3,182,772
|
$ |
3,259,492
|
||||
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
June 30, 2019
|
Fair Value
|
Unrealized
Loss |
Fair Value
|
Unrealized
Loss |
Fair Value
|
Unrealized
Loss |
||||||||||||||||||
Obligations of states and political subdivisions
|
$ |
—
|
$ |
—
|
$ |
9,777
|
$ |
61
|
$ |
9,777
|
$ |
61
|
||||||||||||
Residential mortgage-backed securities
|
17,594
|
77
|
404,946
|
3,024
|
422,540
|
3,101
|
||||||||||||||||||
Commercial mortgage-backed securities
|
—
|
—
|
134,881
|
459
|
134,881
|
459
|
||||||||||||||||||
Total
|
$ |
17,594
|
$ |
77
|
$ |
549,604
|
$ |
3,544
|
$ |
567,198
|
$ |
3,621
|
||||||||||||
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
June 30, 2018
|
Fair Value
|
Unrealized
Loss |
Fair Value
|
Unrealized
Loss |
Fair Value
|
Unrealized
Loss |
||||||||||||||||||
Obligations of U.S. government sponsored enterprises and agencies
|
$ |
303
|
$ |
1
|
$ |
—
|
$ |
—
|
$ |
303
|
$ |
1
|
||||||||||||
Obligations of states and political subdivisions
|
136,950
|
1,122
|
43,239
|
1,574
|
180,189
|
2,696
|
||||||||||||||||||
Corporate bonds and other
|
4,617
|
76
|
233
|
3
|
4,850
|
79
|
||||||||||||||||||
Residential mortgage-backed securities
|
1,073,327
|
21,838
|
227,155
|
8,880
|
1,300,482
|
30,718
|
||||||||||||||||||
Commercial mortgage-backed securities
|
379,201
|
7,477
|
83,285
|
1,436
|
462,486
|
8,913
|
||||||||||||||||||
Total
|
$ |
1,594,398
|
$ |
30,514
|
$ |
353,912
|
$ |
11,893
|
$ |
1,948,310
|
$ |
42,407
|
||||||||||||
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
December 31, 2018
|
Fair Value
|
Unrealized
Loss |
Fair Value
|
Unrealized
Loss |
Fair Value
|
Unrealized
Loss |
||||||||||||||||||
U.S. Treasury securities
|
$ |
9,962
|
$ |
8
|
$ |
—
|
$ |
—
|
$ |
9,962
|
$ |
8
|
||||||||||||
Obligations of U.S. government sponsored enterprises and agencies
|
—
|
—
|
301
|
—
|
301
|
—
|
||||||||||||||||||
Obligations of state and political subdivisions
|
27,489
|
107
|
114,461
|
1,863
|
141,950
|
1,970
|
||||||||||||||||||
Corporate bonds and other
|
4,348
|
68
|
450
|
9
|
4,798
|
77
|
||||||||||||||||||
Residential mortgage-backed securities
|
119,584
|
483
|
922,289
|
21,128
|
1,041,873
|
21,611
|
||||||||||||||||||
Commercial mortgage-backed securities
|
1,994
|
5
|
343,015
|
5,731
|
345,009
|
5,736
|
||||||||||||||||||
Total
|
$ |
163,377
|
$ |
671
|
$ |
1,380,516
|
$ |
28,731
|
$ |
1,543,893
|
$ |
29,402
|
||||||||||||
|
June 30,
|
December 31,
|
|||||||||||
|
2019
|
2018
|
2018
|
||||||||||
Commercial
|
$ |
813,887
|
$ |
775,010
|
$ |
844,953
|
|||||||
Agricultural
|
97,535
|
92,583
|
96,677
|
||||||||||
Real estate
|
2,730,585
|
2,567,878
|
2,639,346
|
||||||||||
Consumer
|
398,945
|
396,009
|
372,660
|
||||||||||
Total loans
held-for-investment
|
$ |
4,040,952
|
$ |
3,831,480
|
$ |
3,953,636
|
|||||||
|
June 30,
|
December 31,
|
|||||||||||
|
2019
|
2018
|
2018
|
||||||||||
Non-accrual
loans*
|
$ |
26,408
|
$ |
26,685
|
$ |
27,534
|
|||||||
Loans still accruing and past due 90 days or more
|
300
|
200
|
1,008
|
||||||||||
Troubled debt restructured loans**
|
471
|
514
|
513
|
||||||||||
Total
|
$ |
27,179
|
$ |
27,399
|
$ |
29,055
|
|||||||
* | Includes $464,000, $2,813,000 and $827,000 of purchased credit impaired loans as of June 30, 2019 and 2018, and December 31, 2018, respectively. |
** |
Troubled debt restructured loans of $3,906,000, $4,329,000 and $3,840,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in
non-accrual
loans at June 30, 2019 and 2018, and December 31, 2018, respectively.
|
June 30, 2019
|
June 30, 2018
|
December 31, 2018
|
||||||||||||||||||||
Recorded
Investment
|
Valuation
Allowance
|
Recorded
Investment
|
Valuation
Allowance
|
Recorded
Investment
|
Valuation
Allowance
|
|||||||||||||||||
$26,408
|
$ |
3,866
|
$ |
26,685
|
$ |
4,823
|
$ |
27,534
|
$ |
4,069
|
||||||||||||
|
June 30,
|
December 31,
|
|||||||||||
|
2019
|
2018
|
2018
|
||||||||||
Commercial
|
$ |
8,189
|
$ |
7,580
|
$ |
9,334
|
|||||||
Agricultural
|
1,047
|
1,259
|
759
|
||||||||||
Real estate
|
16,787
|
16,715
|
16,714
|
||||||||||
Consumer
|
385
|
1,131
|
727
|
||||||||||
Total
|
$ |
26,408
|
$ |
26,685
|
$ |
27,534
|
|||||||
June 30, 2019
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
With No
Allowance*
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Year-
to-date
Average
Recorded
Investment
|
Three-
Month
Average
Recorded
Investment
|
|||||||||||||||||||||
Commercial
|
$ |
9,340
|
$ |
6,212
|
$ |
1,977
|
$ |
8,189
|
$ |
1,022
|
$ |
8,699
|
$ |
8,562
|
||||||||||||||
Agricultural
|
1,108
|
434
|
613
|
1,047
|
119
|
1,090
|
1,071
|
|||||||||||||||||||||
Real Estate
|
24,262
|
5,034
|
11,753
|
16,787
|
2,515
|
18,054
|
17,105
|
|||||||||||||||||||||
Consumer
|
525
|
27
|
358
|
385
|
210
|
465
|
427
|
|||||||||||||||||||||
Total
|
$ |
35,235
|
$ |
11,707
|
$ |
14,701
|
$ |
26,408
|
$ |
3,866
|
$ |
28,308
|
$ |
27,165
|
||||||||||||||
* | Includes $464,000 of purchased credit impaired loans. |
June 30, 2018
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
With No
Allowance*
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Year-
to-date
Average
Recorded
Investment
|
Three-
Month
Average
Recorded
Investment
|
|||||||||||||||||||||
Commercial
|
$ |
9,432
|
$ |
3,264
|
$ |
4,316
|
$ |
7,580
|
$ |
1,379
|
$ |
8,485
|
$ |
8,226
|
||||||||||||||
Agricultural
|
1,278
|
50
|
1,209
|
1,259
|
368
|
1,670
|
1,589
|
|||||||||||||||||||||
Real Estate
|
22,358
|
3,569
|
13,146
|
16,715
|
2,645
|
18,441
|
18,019
|
|||||||||||||||||||||
Consumer
|
1,344
|
169
|
962
|
1,131
|
431
|
1,240
|
1,192
|
|||||||||||||||||||||
Total
|
$ |
34,412
|
$ |
7,052
|
$ |
19,633
|
$ |
26,685
|
$ |
4,823
|
$ |
29,836
|
$ |
29,026
|
||||||||||||||
* | Includes $2,813,000 of purchased credit impaired loans. |
December 31, 2018
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment
With No
Allowance*
|
Recorded
Investment
With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
12 Month
Average
Recorded
Investment
|
||||||||||||||||||
Commercial
|
$ |
10,808
|
$ |
6,728
|
$ |
2,606
|
$ |
9,334
|
$ |
1,133
|
$ |
7,986
|
||||||||||||
Agricultural
|
799
|
213
|
546
|
759
|
170
|
842
|
||||||||||||||||||
Real Estate
|
24,072
|
6,699
|
10,015
|
16,714
|
2,409
|
16,042
|
||||||||||||||||||
Consumer
|
935
|
101
|
626
|
727
|
357
|
914
|
||||||||||||||||||
Total
|
$ |
36,614
|
$ |
13,741
|
$ |
13,793
|
$ |
27,534
|
$ |
4,069
|
$ |
25,784
|
||||||||||||
* | Includes $827,000 of purchased credit impaired loans. |
June 30, 2019
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial
|
$ |
767,275
|
$ |
31,124
|
$ |
15,488
|
$ |
—
|
$ |
813,887
|
||||||||||
Agricultural
|
94,481
|
58
|
2,996
|
—
|
97,535
|
|||||||||||||||
Real Estate
|
2,656,139
|
20,044
|
54,402
|
—
|
2,730,585
|
|||||||||||||||
Consumer
|
397,017
|
264
|
1,664
|
—
|
398,945
|
|||||||||||||||
Total
|
$ |
3,914,912
|
$ |
51,490
|
$ |
74,550
|
$ |
—
|
$ |
4,040,952
|
||||||||||
June 30, 2018
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial
|
$ |
749,387
|
$ |
6,439
|
$ |
19,184
|
$ |
—
|
$ |
775,010
|
||||||||||
Agricultural
|
87,768
|
1,568
|
3,247
|
—
|
92,583
|
|||||||||||||||
Real Estate
|
2,487,399
|
26,182
|
54,297
|
—
|
2,567,878
|
|||||||||||||||
Consumer
|
393,200
|
368
|
2,441
|
—
|
396,009
|
|||||||||||||||
Total
|
$ |
3,717,754
|
$ |
34,557
|
$ |
79,169
|
$ |
—
|
$ |
3,831,480
|
||||||||||
December 31, 2018
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial
|
$ |
804,584
|
$ |
23,392
|
$ |
16,977
|
$ |
—
|
$ |
844,953
|
||||||||||
Agricultural
|
92,864
|
46
|
3,767
|
—
|
96,677
|
|||||||||||||||
Real Estate
|
2,559,379
|
26,626
|
53,341
|
—
|
2,639,346
|
|||||||||||||||
Consumer
|
370,510
|
315
|
1,835
|
—
|
372,660
|
|||||||||||||||
Total
|
$ |
3,827,337
|
$ |
50,379
|
$ |
75,920
|
$ |
—
|
$ |
3,953,636
|
||||||||||
June 30, 2019
|
15-59
Days
Past
Due*
|
60-89
Days
Past
Due
|
Greater
Than 90
Days
|
Total
Past Due
|
Current
|
Total
Loans
|
90 Days
Past Due Still Accruing |
|||||||||||||||||||||
Commercial
|
$ |
2,671
|
$ |
352
|
$ |
610
|
$ |
3,633
|
$ |
810,254
|
$ |
813,887
|
$ |
58
|
||||||||||||||
Agricultural
|
315
|
163
|
30
|
508
|
97,027
|
97,535
|
30
|
|||||||||||||||||||||
Real Estate
|
16,130
|
712
|
865
|
17,707
|
2,712,878
|
2,730,585
|
180
|
|||||||||||||||||||||
Consumer
|
821
|
99
|
40
|
960
|
397,985
|
398,945
|
32
|
|||||||||||||||||||||
Total
|
$ |
19,937
|
$ |
1,326
|
$ |
1,545
|
$ |
22,808
|
$ |
4,018,144
|
$ |
4,040,952
|
$ |
300
|
||||||||||||||
June 30, 2018
|
15-59
Days
Past
Due*
|
60-89
Days
Past
Due
|
Greater
Than 90
Days
|
Total
Past Due
|
Current
|
Total
Loans
|
90 Days
Past Due Still Accruing |
|||||||||||||||||||||
Commercial
|
$ |
4,950
|
$ |
1,085
|
$ |
3,029
|
$ |
9,064
|
$ |
765,946
|
$ |
775,010
|
$ |
74
|
||||||||||||||
Agricultural
|
626
|
159
|
—
|
785
|
91,798
|
92,583
|
—
|
|||||||||||||||||||||
Real Estate
|
13,441
|
474
|
532
|
14,447
|
2,553,431
|
2,567,878
|
70
|
|||||||||||||||||||||
Consumer
|
919
|
232
|
76
|
1,227
|
394,782
|
396,009
|
56
|
|||||||||||||||||||||
Total
|
$ |
19,936
|
$ |
1,950
|
$ |
3,637
|
$ |
25,523
|
$ |
3,805,957
|
$ |
3,831,480
|
$ |
200
|
||||||||||||||
December 31, 2018
|
15-59
Days
Past
Due*
|
60-89
Days
Past
Due
|
Greater
Than 90
Days
|
Total
Past Due
|
Total
Current
|
Total
Loans
|
Total 90
Days
Past Due Still
Accruing |
|||||||||||||||||||||
Commercial
|
$ |
3,546
|
$ |
682
|
$ |
677
|
$ |
4,905
|
$ |
840,048
|
$ |
844,953
|
$ |
—
|
||||||||||||||
Agricultural
|
791
|
19
|
26
|
836
|
95,841
|
96,677
|
—
|
|||||||||||||||||||||
Real Estate
|
13,185
|
881
|
2,020
|
16,086
|
2,623,260
|
2,639,346
|
960
|
|||||||||||||||||||||
Consumer
|
782
|
263
|
54
|
1,099
|
371,561
|
372,660
|
48
|
|||||||||||||||||||||
Total
|
$ |
18,304
|
$ |
1,845
|
$ |
2,777
|
$ |
22,926
|
$ |
3,930,710
|
$ |
3,953,636
|
$ |
1,008
|
||||||||||||||
* | The Company monitors commercial, agricultural and real estate loans after such loans are 15 days past due. Consumer loans are monitored after such loans are 30 days past due. |
June 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
1,022
|
$ |
119
|
$ |
2,515
|
$ |
210
|
$ |
3,866
|
||||||||||
Loans collectively evaluated for impairment
|
12,877
|
1,241
|
28,284
|
5,552
|
47,954
|
|||||||||||||||
Total
|
$ |
13,899
|
$ |
1,360
|
$ |
30,799
|
$ |
5,762
|
$ |
51,820
|
||||||||||
June 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
1,379
|
$ |
368
|
$ |
2,645
|
$ |
431
|
$ |
4,823
|
||||||||||
Loans collectively evaluated for impairment
|
7,839
|
1,034
|
30,598
|
5,657
|
45,128
|
|||||||||||||||
Total
|
$ |
9,218
|
$ |
1,402
|
$ |
33,243
|
$ |
6,088
|
$ |
49,951
|
||||||||||
December 31, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
1,133
|
$ |
170
|
$ |
2,409
|
$ |
357
|
$ |
4,069
|
||||||||||
Loans collectively evaluated for impairment
|
10,815
|
1,276
|
29,933
|
5,109
|
47,133
|
|||||||||||||||
Total
|
$ |
11,948
|
$ |
1,446
|
$ |
32,342
|
$ |
5,466
|
$ |
51,202
|
||||||||||
Three months ended
June 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
12,475
|
$ |
1,430
|
$ |
31,887
|
$ |
5,793
|
$ |
51,585
|
||||||||||
Provision for loan losses
|
1,418
|
61
|
(929
|
) |
50
|
600
|
||||||||||||||
Recoveries
|
423
|
5
|
60
|
209
|
697
|
|||||||||||||||
Charge-offs
|
(417
|
) |
(136
|
) |
(219
|
) |
(290
|
) |
(1,062
|
) | ||||||||||
Ending balance
|
$ |
13,899
|
$ |
1,360
|
$ |
30,799
|
$ |
5,762
|
$ |
51,820
|
||||||||||
Three months ended
June 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
9,277
|
$ |
1,512
|
$ |
32,539
|
$ |
6,171
|
$ |
49,499
|
||||||||||
Provision for loan losses
|
335
|
(115
|
) |
799
|
86
|
1,105
|
||||||||||||||
Recoveries
|
126
|
5
|
18
|
147
|
296
|
|||||||||||||||
Charge-offs
|
(520
|
) |
—
|
(113
|
) |
(316
|
) |
(949
|
) | |||||||||||
Ending balance
|
$ |
9,218
|
$ |
1,402
|
$ |
33,243
|
$ |
6,088
|
$ |
49,951
|
||||||||||
Six months ended
June 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
11,948
|
$ |
1,446
|
$ |
32,342
|
$ |
5,466
|
$ |
51,202
|
||||||||||
Provision for loan losses
|
1,612
|
42
|
(531
|
) |
442
|
1,565
|
||||||||||||||
Recoveries
|
1,073
|
7
|
149
|
349
|
1,578
|
|||||||||||||||
Charge-offs
|
(734
|
) |
(135
|
) |
(1,161
|
) |
(495
|
) |
(2,525
|
) | ||||||||||
Ending balance
|
$ |
13,899
|
$ |
1,360
|
$ |
30,799
|
$ |
5,762
|
$ |
51,820
|
||||||||||
Six months ended
June 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
10,865
|
$ |
1,305
|
$ |
29,896
|
$ |
6,090
|
$ |
48,156
|
||||||||||
Provision for loan losses
|
(1,292
|
) |
88
|
3,233
|
386
|
2,415
|
||||||||||||||
Recoveries
|
284
|
9
|
260
|
247
|
800
|
|||||||||||||||
Charge-offs
|
(639
|
) |
—
|
(146
|
) |
(635
|
) |
(1,420
|
) | |||||||||||
Ending balance
|
$ |
9,218
|
$ |
1,402
|
$ |
33,243
|
$ |
6,088
|
$ |
49,951
|
||||||||||
June 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
8,189
|
$ |
1,047
|
$ |
16,787
|
$ |
385
|
$ |
26,408
|
||||||||||
Loans collectively evaluated for impairment
|
805,698
|
96,488
|
2,713,798
|
398,560
|
4,014,544
|
|||||||||||||||
Total
|
$ |
813,887
|
$ |
97,535
|
$ |
2,730,585
|
$ |
398,945
|
$ |
4,040,952
|
||||||||||
June 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
7,580
|
$ |
1,259
|
$ |
16,715
|
$ |
1,131
|
$ |
26,685
|
||||||||||
Loans collectively evaluated for impairment
|
767,430
|
91,324
|
2,551,163
|
394,878
|
3,804,795
|
|||||||||||||||
Total
|
$ |
775,010
|
$ |
92,583
|
$ |
2,567,878
|
$ |
396,009
|
$ |
3,831,480
|
||||||||||
December 31, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
9,334
|
$ |
759
|
$ |
16,714
|
$ |
727
|
$ |
27,534
|
||||||||||
Loan collectively evaluated for impairment
|
835,619
|
95,918
|
2,622,632
|
371,933
|
3,926,102
|
|||||||||||||||
Total
|
$ |
844,953
|
$ |
96,677
|
$ |
2,639,346
|
$ |
372,660
|
$ |
3,953,636
|
||||||||||
|
Three Months Ended June 30, 2019
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Number
|
Pre-
Modification Recorded Investment |
Post-
Modification Recorded Investment |
Number
|
Pre-
Modification Recorded Investment |
Post-
Modification Recorded Investment |
||||||||||||||||||
Commercial
|
2
|
$ |
122
|
$ |
122
|
3
|
$ |
279
|
$ |
279
|
||||||||||||||
Agricultural
|
2
|
253
|
253
|
10
|
619
|
619
|
||||||||||||||||||
Real Estate
|
—
|
—
|
—
|
4
|
650
|
650
|
||||||||||||||||||
Consumer
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total
|
4
|
$ |
375
|
$ |
375
|
17
|
$ |
1,548
|
$ |
1,548
|
||||||||||||||
|
Three Months Ended June 30, 2018
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Number
|
Pre-
Modification Recorded Investment |
Post-
Modification Recorded Investment |
Number
|
Pre-
Modification Recorded Investment |
Post-
Modification Recorded Investment |
||||||||||||||||||
Commercial
|
1
|
$ |
279
|
$ |
279
|
1
|
$ |
279
|
$ |
279
|
||||||||||||||
Agricultural
|
—
|
—
|
—
|
1
|
4
|
4
|
||||||||||||||||||
Real Estate
|
2
|
162
|
162
|
4
|
525
|
525
|
||||||||||||||||||
Consumer
|
3
|
39
|
39
|
6
|
113
|
113
|
||||||||||||||||||
Total
|
6
|
$ |
480
|
$ |
480
|
12
|
$ |
921
|
$ |
921
|
||||||||||||||
|
Three Months Ended June 30, 2019
|
Six Months Ended June 30, 2019
|
||||||||||||||||||||||
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
||||||||||||||||||
Commercial
|
$ |
—
|
$ |
122
|
$ |
—
|
$ |
—
|
$ |
279
|
$ |
—
|
||||||||||||
Agricultural
|
—
|
253
|
—
|
—
|
354
|
265
|
||||||||||||||||||
Real Estate
|
—
|
—
|
—
|
—
|
202
|
448
|
||||||||||||||||||
Consumer
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total
|
$ |
—
|
$ |
375
|
$ |
—
|
$ |
—
|
$ |
835
|
$ |
713
|
||||||||||||
|
Three Months Ended June 30, 2018
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||||
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
||||||||||||||||||
Commercial
|
$ |
—
|
$ |
—
|
$ |
279
|
—
|
$ |
—
|
$ |
279
|
|||||||||||||
Agricultural
|
—
|
—
|
—
|
—
|
—
|
4
|
||||||||||||||||||
Real Estate
|
—
|
162
|
—
|
—
|
162
|
363
|
||||||||||||||||||
Consumer
|
—
|
—
|
39
|
—
|
—
|
113
|
||||||||||||||||||
Total
|
$ |
—
|
$ |
162
|
$ |
318
|
—
|
$ |
162
|
$ |
759
|
|||||||||||||
June 30, 2019:
|
Outstanding
Notional
Balance
|
Asset
Derivative
Fair Value
|
Liability
Derivative
Fair Value
|
|||||||||
IRLCs
|
$ |
89,655
|
$ |
1,525
|
$ |
—
|
||||||
Forward mortgage-backed securities trades
|
72,500
|
—
|
254
|
June 30, 2018:
|
Outstanding
Notional
Balance
|
Asset
Derivative
Fair Value
|
Liability
Derivative
Fair Value
|
|||||||||
IRLCs
|
$ |
61,520
|
$ |
501
|
$ |
—
|
||||||
Forward mortgage-backed securities trades
|
17,500
|
—
|
47
|
December 31, 2018:
|
Outstanding
Notional
Balance
|
Asset
Derivative
Fair Value
|
Liability
Derivative
Fair Value
|
|||||||||
IRLCs
|
$ |
37,088
|
$ |
765
|
$ |
—
|
||||||
Forward mortgage-backed securities trades
|
45,500
|
—
|
403
|
|
June 30,
|
December 31,
|
|||||||||||
|
2019
|
2018
|
2018
|
||||||||||
Securities sold under agreements with customers to repurchase
|
$ |
356,555
|
$ |
389,010
|
$ |
409,631
|
|||||||
Federal funds purchased
|
5,450
|
7,925
|
4,075
|
||||||||||
Advances from Federal Home Loan Bank of Dallas
|
—
|
60,000
|
55,000
|
||||||||||
Total
|
$ |
362,005
|
$ |
456,935
|
$ |
468,706
|
|||||||
• |
Level 1 Inputs
–
Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.
|
• |
Level 2 Inputs
–
Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means.
|
• | Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. |
June 30, 2019
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total Fair
Value
|
||||||||||||
Available-for-sale
investment securities:
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
$ |
10,020
|
$ |
—
|
$ |
—
|
$ |
10,020
|
||||||||
Obligations of states and political subdivisions
|
—
|
1,157,214
|
—
|
1,157,214
|
||||||||||||
Corporate bonds
|
—
|
228
|
—
|
228
|
||||||||||||
Residential mortgage-backed securities
|
—
|
1,596,175
|
—
|
1,596,175
|
||||||||||||
Commercial mortgage-backed securities
|
—
|
491,389
|
—
|
491,389
|
||||||||||||
Other securities
|
4,466
|
—
|
—
|
4,466
|
||||||||||||
Total
|
$ |
14,486
|
$ |
3,245,006
|
$ |
—
|
$ |
3,259,492
|
||||||||
Loans
held-for-sale
|
$ |
—
|
$ |
18,981
|
$ |
—
|
$ |
18,981
|
||||||||
IRLCs
|
$ |
—
|
$ |
1,525
|
$ |
—
|
$ |
1,525
|
||||||||
Forward mortgage-backed securities trades
|
$ |
—
|
$ |
254
|
$ |
—
|
$ |
254
|
||||||||
June 30, 2018
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total Fair
Value
|
||||||||||||
Available-for-sale
investment securities:
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
$ |
9,965
|
$ |
—
|
$ |
—
|
$ |
9,965
|
||||||||
Obligations of U. S. government sponsored enterprises and agencies
|
—
|
303
|
—
|
303
|
||||||||||||
Obligations of states and political subdivisions
|
—
|
1,284,775
|
—
|
1,284,775
|
||||||||||||
Corporate bonds
|
—
|
451
|
—
|
451
|
||||||||||||
Residential mortgage-backed securities
|
—
|
1,435,257
|
—
|
1,435,257
|
||||||||||||
Commercial mortgage-backed securities
|
—
|
462,485
|
—
|
462,485
|
||||||||||||
Other securities
|
4,331
|
—
|
—
|
4,331
|
||||||||||||
Total
|
$ |
14,296
|
$ |
3,183,271
|
$ |
—
|
$ |
3,197,567
|
||||||||
Loans
held-for-sale
|
$ |
|
$ |
5,061
|
$ |
—
|
$ |
5,061
|
||||||||
IRLCs
|
$ |
|
$ |
501
|
$ |
—
|
$ |
501
|
||||||||
Forward mortgage-backed securities trades
|
$ |
—
|
$ |
47
|
$ |
—
|
$ |
47
|
||||||||
December 31, 2018
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total Fair
Value
|
||||||||||||
Available-for-sale
investment securities:
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
$ |
9,962
|
$ |
—
|
$ |
—
|
$ |
9,962
|
||||||||
Obligations of U. S. government sponsored enterprises and agencies
|
—
|
301
|
—
|
301
|
||||||||||||
Obligations of states and political subdivisions
|
—
|
1,257,871
|
—
|
1,257,871
|
||||||||||||
Corporate bonds
|
—
|
450
|
—
|
450
|
||||||||||||
Residential mortgage-backed securities
|
—
|
1,454,545
|
—
|
1,454,545
|
||||||||||||
Commercial mortgage-backed securities
|
—
|
431,300
|
—
|
431,300
|
||||||||||||
Other securities
|
4,348
|
—
|
—
|
4,348
|
||||||||||||
Total
|
$ |
14,310
|
$ |
3,144,467
|
$ |
—
|
$ |
3,158,777
|
||||||||
Loans
held-for-sale
|
$ |
—
|
$ |
19,185
|
$ |
—
|
$ |
19,185
|
||||||||
IRLCs
|
$ |
—
|
$ |
765
|
$ |
—
|
$ |
765
|
||||||||
Forward mortgage-backed securities trades
|
$ |
—
|
$ |
403
|
$ |
—
|
$ |
403
|
||||||||
|
Three Months Ended
June 30,
|
|||||||
|
2019
|
2018
|
||||||
Carrying value of other real estate owned prior to
re-measurement
|
$
|
—
|
$ |
526
|
||||
Write-downs included in gain (loss) on sale of other real estate owned
|
—
|
(126
|
) | |||||
Fair value
|
$ |
—
|
$ |
400
|
||||
|
Six Months Ended
June 30,
|
|||||||
|
2019
|
2018
|
||||||
Carrying value of other real estate owned prior to
re-measurement
|
$
|
—
|
$ |
526
|
||||
Write-downs included in gain (loss) on sale of other real estate owned
|
—
|
(126
|
) | |||||
Fair value
|
$ |
—
|
$ |
400
|
||||
|
June 30,
|
December 31,
|
|||||||||||||||||||||||||||
|
2019
|
2018
|
2018
|
|
|||||||||||||||||||||||||
|
Carrying
Value |
Estimated
Fair Value |
Carrying
Value |
Estimated
Fair Value |
Carrying
Value |
Estimated
Fair Value |
Fair Value
Hierarchy |
||||||||||||||||||||||
Cash and due from banks
|
$ |
178,345
|
$ |
178,345
|
$ |
178,217
|
$ |
178,217
|
$ |
207,835
|
$ |
207,835
|
Level 1
|
||||||||||||||||
Federal funds sold
|
700
|
700
|
8,450
|
8,450
|
—
|
—
|
Level 1
|
||||||||||||||||||||||
Interest-bearing deposits in banks
|
128,652
|
128,652
|
99,499
|
99,499
|
40,812
|
40,812
|
Level 1
|
||||||||||||||||||||||
Interest-bearing time deposits in banks
|
960
|
960
|
1,458
|
1,458
|
1,458
|
1,458
|
Level 2
|
||||||||||||||||||||||
Available-for-sale
securities
|
3,259,492
|
3,259,492
|
3,197,567
|
3,197,567
|
3,158,777
|
3,158,777
|
Levels 1 and 2
|
||||||||||||||||||||||
Loans held for investment
|
3,989,132
|
4,026,543
|
3,781,529
|
3,807,267
|
3,902,434
|
3,947,391
|
Level 3
|
||||||||||||||||||||||
Loans held for sale
|
22,305
|
22,347
|
24,289
|
24,550
|
21,672
|
21,779
|
Level 2
|
||||||||||||||||||||||
Accrued interest receivable
|
36,954
|
36,954
|
36,513
|
36,513
|
36,765
|
36,765
|
Level 2
|
||||||||||||||||||||||
Deposits with stated maturities
|
433,511
|
433,811
|
483,230
|
484,230
|
442,161
|
441,727
|
Level 2
|
||||||||||||||||||||||
Deposits with no stated maturities
|
5,936,255
|
5,936,255
|
5,727,377
|
5,727,377
|
5,738,228
|
5,738,228
|
Level 1
|
||||||||||||||||||||||
Borrowings
|
362,005
|
362,005
|
456,935
|
456,935
|
468,706
|
468,706
|
Level 2
|
||||||||||||||||||||||
Accrued interest payable
|
694
|
694
|
223
|
223
|
408
|
408
|
Level 2
|
||||||||||||||||||||||
IRLCs
|
1,525
|
1,525
|
501
|
501
|
765
|
765
|
Level 2
|
||||||||||||||||||||||
Forward mortgage backed securities trades
|
254
|
254
|
47
|
47
|
403
|
403
|
Level 2
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
• | general economic conditions, including local, state, national and international, and the impact they may have on us and our customers; |
• | effect of severe weather conditions, including hurricanes, tornadoes, flooding and droughts; |
• | volatility and disruption in national and international financial and commodity markets; |
• | government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau, the capital ratios of Basel III as adopted by the federal banking authorities and the Tax Cuts and Jobs Act; |
• | political instability; |
• | the ability of the Federal government to address the national economy; |
• | changes in our competitive environment from other financial institutions and financial service providers; |
• | the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”); |
• | the effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; |
• | the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we and our subsidiaries must comply; |
• | changes in the demand for loans; |
• | fluctuations in the value of collateral securing our loan portfolio and in the level of the allowance for loan losses; |
• | potential risk of environmental liability associated with lending activities; |
• | the accuracy of our estimates of future loan losses; |
• | the accuracy of our estimates and assumptions regarding the performance of our securities portfolio; |
• | soundness of other financial institutions with which we have transactions; |
• | inflation, interest rate, market and monetary fluctuations; |
• | changes in consumer spending, borrowing and savings habits; |
• | changes in commodity prices (e.g., oil and gas, cattle and wind energy); |
• | our ability to attract deposits and increase market share; |
• | changes in our liquidity position; |
• | changes in the reliability of our vendors, internal control system or information systems; |
• | cyber attacks on our technology information systems, including fraud from our customers and external third party vendors; |
• | our ability to attract and retain qualified employees; |
• | acquisitions and integration of acquired businesses; |
• | the possible impairment of goodwill associated with our acquisitions; |
• | consequences of continued bank mergers and acquisitions in our market area, resulting in fewer but much larger and stronger competitors; |
• | greater than expected costs or difficulties related to expansion of operations, including branch openings, new product offerings and expansion into new markets; |
• | changes in our organization, compensation and benefit plans; |
• | acts of God or of war or terrorism; and |
• | our success at managing the risk involved in the foregoing items. |
|
Three Months Ended June 30, 2019
Compared to Three Months Ended
June 30, 2018
|
Six Months Ended June 30, 2019
Compared to Six Months Ended
June 30, 2018
|
||||||||||||||||||||||
|
Change Attributable to
|
Total
|
Change Attributable to
|
Total
|
||||||||||||||||||||
|
Volume
|
Rate
|
Change
|
Volume
|
Rate
|
Change
|
||||||||||||||||||
Short-term investments
|
$ |
228
|
$ |
168
|
$ |
396
|
$ |
(37
|
) | $ |
411
|
$ |
374
|
|||||||||||
Taxable investment securities
|
352
|
854
|
1,206
|
965
|
2,175
|
3,140
|
||||||||||||||||||
Tax-exempt
investment securities (1)
|
(1,047
|
) |
(339
|
) |
(1,386
|
) |
(2,215
|
) |
(452
|
) |
(2,667
|
) | ||||||||||||
Loans (1) (2)
|
3,194
|
3,463
|
6,657
|
6,006
|
7,193
|
13,199
|
||||||||||||||||||
Interest income
|
2,727
|
4,146
|
6,873
|
4,719
|
9,327
|
14,046
|
||||||||||||||||||
Interest-bearing deposits
|
118
|
3,163
|
3,281
|
114
|
6,309
|
6,423
|
||||||||||||||||||
Short-term borrowings
|
(59
|
) |
272
|
213
|
(4
|
) |
829
|
825
|
||||||||||||||||
Interest expense
|
59
|
3,435
|
3,494
|
110
|
7,138
|
7,248
|
||||||||||||||||||
Net interest income
|
$ |
2,668
|
$ |
711
|
$ |
3,379
|
$ |
4,609
|
$ |
2,189
|
$ |
6,798
|
||||||||||||
(1) |
Computed on a
tax-equivalent
basis assuming a marginal tax rate of 21%.
|
(2) |
Non-accrual
loans are included in loans.
|
|
Three Months Ended June 30,
|
|||||||||||||||||||||||
|
2019
|
2018
|
||||||||||||||||||||||
|
Average
Balance |
Income/
Expense |
Yield/
Rate |
Average
Balance |
Income/
Expense |
Yield/
Rate |
||||||||||||||||||
Assets
|
|
|
|
|
|
|
||||||||||||||||||
Short-term investments (1)
|
$ |
112,817
|
$ |
667
|
2.37
|
% | $ |
61,601
|
$ |
271
|
1.76
|
% | ||||||||||||
Taxable investment securities (2)
|
2,063,497
|
13,925
|
2.70
|
2,007,949
|
12,719
|
2.53
|
||||||||||||||||||
Tax-exempt
investment securities (2)(3)
|
1,169,889
|
10,615
|
3.63
|
1,281,757
|
12,001
|
3.75
|
||||||||||||||||||
Loans (3)(4)
|
4,043,055
|
56,033
|
5.56
|
3,797,341
|
49,376
|
5.22
|
||||||||||||||||||
Total earning assets
|
7,389,258
|
$ |
81,240
|
4.41
|
% |
7,148,648
|
$ |
74,367
|
4.17
|
% | ||||||||||||||
Cash and due from banks
|
167,764
|
|
|
168,535
|
|
|
||||||||||||||||||
Bank premises and equipment, net
|
134,280
|
|
|
128,370
|
|
|
||||||||||||||||||
Other assets
|
63,629
|
|
|
64,490
|
|
|
||||||||||||||||||
Goodwill and other intangible assets, net
|
174,263
|
|
|
175,401
|
|
|
||||||||||||||||||
Allowance for loan losses
|
(52,005
|
) |
|
|
(49,959
|
) |
|
|
||||||||||||||||
Total assets
|
$ |
7,877,189
|
|
|
$ |
7,635,485
|
|
|
||||||||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing deposits
|
$ |
4,196,123
|
$ |
7,286
|
0.70
|
% | $ |
4,076,522
|
$ |
4,005
|
0.39
|
% | ||||||||||||
Short-term borrowings
|
378,389
|
675
|
0.72
|
434,239
|
462
|
0.43
|
||||||||||||||||||
Total interest-bearing liabilities
|
4,574,512
|
$ |
7,961
|
0.70
|
% |
4,510,761
|
$ |
4,467
|
0.40
|
% | ||||||||||||||
Noninterest-bearing deposits
|
2,136,264
|
|
|
2,121,902
|
|
|
||||||||||||||||||
Other liabilities
|
44,097
|
|
|
30,549
|
|
|
||||||||||||||||||
Total liabilities
|
6,754,873
|
|
|
6,663,212
|
|
|
||||||||||||||||||
Shareholders’ equity
|
1,122,316
|
|
|
972,273
|
|
|
||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ |
7,877,189
|
|
|
$ |
7,635,485
|
|
|
||||||||||||||||
Net interest income
|
|
$ |
73,279
|
|
|
$ |
69,900
|
|
||||||||||||||||
Rate Analysis:
|
|
|
|
|
|
|
||||||||||||||||||
Interest income/earning assets
|
|
|
4.41
|
% |
|
|
4.17
|
% | ||||||||||||||||
Interest expense/earning assets
|
|
|
(0.43
|
) |
|
|
(0.25
|
) | ||||||||||||||||
Net interest margin
|
|
|
3.98
|
% |
|
|
3.92
|
% | ||||||||||||||||
|
Six Months Ended June 30,
|
|||||||||||||||||||||||
|
2019
|
2018
|
||||||||||||||||||||||
|
Average
Balance |
Income/
Expense |
Yield/
Rate |
Average
Balance |
Income/
Expense |
Yield/
Rate |
||||||||||||||||||
Assets
|
|
|
|
|
|
|
||||||||||||||||||
Short-term investments (1)
|
$ |
109,005
|
$ |
1,286
|
2.38
|
% | $ |
113,817
|
$ |
911
|
1.61
|
% | ||||||||||||
Taxable investment securities (2)
|
1,994,563
|
27,213
|
2.73
|
1,917,671
|
24,073
|
2.51
|
||||||||||||||||||
Tax-exempt
investment securities (2)(3)
|
1,198,016
|
21,893
|
3.65
|
1,316,801
|
24,560
|
3.73
|
||||||||||||||||||
Loans (3)(4)
|
4,008,275
|
109,569
|
5.51
|
3,773,085
|
96,371
|
5.15
|
||||||||||||||||||
Total earning assets
|
7,309,859
|
$ |
159,961
|
4.41
|
% |
7,121,374
|
$ |
145,915
|
4.13
|
% | ||||||||||||||
Cash and due from banks
|
177,601
|
|
|
180,083
|
|
|
||||||||||||||||||
Bank premises and equipment, net
|
134,239
|
|
|
127,829
|
|
|
||||||||||||||||||
Other assets
|
64,004
|
|
|
61,353
|
|
|
||||||||||||||||||
Goodwill and other intangible assets, net
|
174,396
|
|
|
169,884
|
|
|
||||||||||||||||||
Allowance for loan losses
|
(52,146
|
) |
|
|
(49,793
|
) |
|
|
||||||||||||||||
Total assets
|
$ |
7,807,953
|
|
|
$ |
7,610,730
|
|
|
||||||||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing deposits
|
$ |
4,170,250
|
$ |
13,947
|
0.67
|
% | $ |
4,107,750
|
$ |
7,524
|
0.37
|
% | ||||||||||||
Short-term borrowings
|
393,432
|
1,401
|
0.72
|
396,039
|
576
|
0.29
|
||||||||||||||||||
Total interest-bearing liabilities
|
4,563,682
|
$ |
15,348
|
0.68
|
% |
4,503,789
|
$ |
8,100
|
0.36
|
% | ||||||||||||||
Noninterest-bearing deposits
|
2,109,640
|
|
|
2,116,969
|
|
|
||||||||||||||||||
Other liabilities
|
38,758
|
|
|
28,750
|
|
|
||||||||||||||||||
Total liabilities
|
6,712,080
|
|
|
6,649,508
|
|
|
||||||||||||||||||
Shareholders’ equity
|
1,095,873
|
|
|
961,222
|
|
|
||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ |
7,807,953
|
|
|
$ |
7,610,730
|
|
|
||||||||||||||||
Net interest income
|
|
$ |
144,613
|
|
|
$ |
137,815
|
|
||||||||||||||||
Rate Analysis:
|
|
|
|
|
|
|
||||||||||||||||||
Interest income/earning assets
|
|
|
4.41
|
% |
|
|
4.13
|
% | ||||||||||||||||
Interest expense/earning assets
|
|
|
(0.42
|
) |
|
|
(0.23
|
) | ||||||||||||||||
Net interest margin
|
|
|
3.99
|
% |
|
|
3.90
|
% | ||||||||||||||||
(1) | Short-term investments are comprised of Fed Funds sold, interest-bearing deposits in banks and interest-bearing time deposits in banks. |
(2) |
Average balances include unrealized gains and losses on
available-for-sale
securities.
|
(3) |
Computed on a
tax-equivalent
basis assuming a marginal tax rate of 21%.
|
(4) |
Non-accrual
loans are included in loans.
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||||||||||
|
2019
|
Increase
(Decrease) |
2018
|
2019
|
Increase
(Decrease) |
2018
|
||||||||||||||||||
Trust fees
|
$ |
7,027
|
$ |
(43
|
) | $ |
7,070
|
$ |
14,006
|
$ |
31
|
$ |
13,975
|
|||||||||||
Service charges on deposit accounts
|
5,374
|
(1
|
) |
5,375
|
10,550
|
291
|
10,259
|
|||||||||||||||||
ATM, interchange and credit card fees
|
7,352
|
311
|
7,041
|
14,192
|
155
|
14,037
|
||||||||||||||||||
Real estate mortgage operations
|
4,721
|
770
|
3,951
|
8,195
|
1,311
|
6,884
|
||||||||||||||||||
Net gain on sale of
available-for-sale
securities
|
676
|
609
|
67
|
676
|
(612
|
) |
1,288
|
|||||||||||||||||
Net gain (loss) on sale of foreclosed assets
|
53
|
34
|
19
|
122
|
4
|
118
|
||||||||||||||||||
Net gain (loss) on sale of assets
|
6
|
6
|
—
|
6
|
97
|
(91
|
) | |||||||||||||||||
Interest on loan recoveries
|
903
|
614
|
289
|
1,241
|
833
|
408
|
||||||||||||||||||
Other:
|
|
|
|
|
|
|
||||||||||||||||||
Check printing fees
|
48
|
(6
|
) |
54
|
89
|
(7
|
) |
96
|
||||||||||||||||
Safe deposit rental fees
|
119
|
(3
|
) |
122
|
313
|
(12
|
) |
325
|
||||||||||||||||
Credit life fees
|
420
|
29
|
391
|
614
|
126
|
488
|
||||||||||||||||||
Brokerage commissions
|
417
|
(27
|
) |
444
|
763
|
(100
|
) |
863
|
||||||||||||||||
Miscellaneous income
|
860
|
195
|
665
|
1,646
|
384
|
1,262
|
||||||||||||||||||
Total other
|
1,864
|
188
|
1,676
|
3,425
|
391
|
3,034
|
||||||||||||||||||
Total Noninterest Income
|
$ |
27,976
|
$ |
2,488
|
$ |
25,488
|
$ |
52,413
|
$ |
2,501
|
$ |
49,912
|
||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
2019
|
Increase
(Decrease) |
2018
|
2019
|
Increase
(Decrease) |
2018
|
||||||||||||||||||
Salaries
|
$ |
20,567
|
$ |
733
|
$ |
19,834
|
$ |
40,244
|
$ |
685
|
$ |
39,559
|
||||||||||||
Medical
|
2,288
|
197
|
2,091
|
4,783
|
271
|
4,512
|
||||||||||||||||||
Profit sharing
|
1,884
|
(434
|
) |
2,318
|
3,375
|
(151
|
) |
3,526
|
||||||||||||||||
Pension
|
19
|
(37
|
) |
56
|
42
|
(69
|
) |
111
|
||||||||||||||||
401(k) match expense
|
701
|
33
|
668
|
1,425
|
81
|
1,344
|
||||||||||||||||||
Payroll taxes
|
1,412
|
52
|
1,360
|
3,009
|
76
|
2,933
|
||||||||||||||||||
Stock option and stock grant expense
|
523
|
(12
|
) |
535
|
1,040
|
(40
|
) |
1,080
|
||||||||||||||||
Total salaries and employee benefits
|
27,394
|
532
|
26,862
|
53,918
|
853
|
53,065
|
||||||||||||||||||
Loss from partial settlement of pension plan
|
—
|
—
|
—
|
900
|
900
|
—
|
||||||||||||||||||
Net occupancy expense
|
2,779
|
(27
|
) |
2,806
|
5,542
|
(147
|
) |
5,689
|
||||||||||||||||
Equipment expense
|
2,827
|
(613
|
) |
3,440
|
5,954
|
(1,003
|
) |
6,957
|
||||||||||||||||
FDIC assessment fees
|
538
|
(94
|
) |
632
|
1,076
|
(123
|
) |
1,199
|
||||||||||||||||
ATM, interchange and credit card expense
|
2,427
|
222
|
2,205
|
4,810
|
462
|
4,348
|
||||||||||||||||||
Professional and service fees
|
1,987
|
(39
|
) |
2,026
|
3,820
|
(619
|
) |
4,439
|
||||||||||||||||
Printing, stationery and supplies
|
502
|
(110
|
) |
612
|
868
|
(230
|
) |
1,098
|
||||||||||||||||
Operational and other losses
|
480
|
175
|
305
|
746
|
(125
|
) |
871
|
|||||||||||||||||
Software amortization and expense
|
1,287
|
808
|
479
|
2,210
|
1,207
|
1,003
|
||||||||||||||||||
Amortization of intangible assets
|
264
|
(120
|
) |
384
|
532
|
(239
|
) |
771
|
||||||||||||||||
Other:
|
|
|
|
|
|
|
||||||||||||||||||
Data processing fees
|
352
|
(109
|
) |
461
|
767
|
175
|
592
|
|||||||||||||||||
Postage
|
406
|
(1
|
) |
407
|
841
|
1
|
840
|
|||||||||||||||||
Advertising
|
878
|
5
|
873
|
1,762
|
23
|
1,739
|
||||||||||||||||||
Correspondent bank service charges
|
176
|
(32
|
) |
208
|
347
|
(51
|
) |
398
|
||||||||||||||||
Telephone
|
963
|
67
|
896
|
1,923
|
86
|
1,837
|
||||||||||||||||||
Public relations and business development
|
752
|
49
|
703
|
1,516
|
104
|
1,412
|
||||||||||||||||||
Directors’ fees
|
488
|
56
|
432
|
945
|
55
|
890
|
||||||||||||||||||
Audit and accounting fees
|
484
|
14
|
470
|
926
|
12
|
914
|
||||||||||||||||||
Legal fees
|
286
|
35
|
251
|
583
|
(30
|
) |
613
|
|||||||||||||||||
Regulatory exam fees
|
291
|
(16
|
) |
307
|
582
|
(50
|
) |
632
|
||||||||||||||||
Travel
|
536
|
162
|
374
|
875
|
110
|
765
|
||||||||||||||||||
Courier expense
|
190
|
(15
|
) |
205
|
390
|
(35
|
) |
425
|
||||||||||||||||
Other real estate owned
|
62
|
16
|
46
|
72
|
(14
|
) |
86
|
|||||||||||||||||
Other miscellaneous expense
|
1,955
|
195
|
1,760
|
3,768
|
(592
|
) |
4,360
|
|||||||||||||||||
Total other
|
7,819
|
426
|
7,393
|
15,297
|
(206
|
) |
15,503
|
|||||||||||||||||
Total Noninterest Expense
|
$ |
48,304
|
$ |
1,160
|
$ |
47,144
|
$ |
95,673
|
$ |
730
|
$ |
94,943
|
||||||||||||
|
June 30,
|
December 31,
2018
|
||||||||||
|
2019
|
2018
|
||||||||||
Commercial
|
$ |
813,887
|
$ |
775,010
|
$ |
844,953
|
||||||
Agricultural
|
97,535
|
92,583
|
96,677
|
|||||||||
Real estate
|
2,730,585
|
2,567,878
|
2,639,346
|
|||||||||
Consumer
|
398,945
|
396,009
|
372,660
|
|||||||||
Total loans
held-for-investment
|
$ |
4,040,952
|
$ |
3,831,480
|
$ |
3,953,636
|
||||||
|
June 30,
|
December 31,
2018
|
||||||||||
|
2019
|
2018
|
||||||||||
Oil and gas related loans
|
$ |
107,097
|
$ |
103,381
|
$ |
113,536
|
||||||
Oil and gas related loans as a % of total loans
|
2.64
|
% |
2.68
|
% |
2.86
|
% | ||||||
Classified oil and gas related loans
|
$ |
3,438
|
$ |
5,001
|
$ |
3,894
|
||||||
Non-accrual
oil and gas related loans
|
$ |
621
|
$ |
1,629
|
$ |
1,048
|
||||||
Net charge-offs for oil and gas related loans for quarter/year then ended
|
$ |
—
|
$ |
—
|
$ |
—
|
||||||
Allowance for oil and gas related loans as a % of oil and gas loans
|
2.95
|
% |
3.48
|
% |
3.23
|
% |
|
June 30,
|
December 31,
2018
|
||||||||||
|
2019
|
2018
|
||||||||||
Non-accrual
loans*
|
$ |
26,408
|
$ |
26,685
|
$ |
27,534
|
||||||
Loans still accruing and past due 90 days or more
|
300
|
200
|
1,008
|
|||||||||
Troubled debt restructured loans**
|
471
|
514
|
513
|
|||||||||
Nonperforming Loans
|
27,179
|
27,399
|
29,055
|
|||||||||
Foreclosed assets
|
681
|
705
|
577
|
|||||||||
Total nonperforming assets
|
$ |
27,860
|
$ |
28,104
|
$ |
29,632
|
||||||
As a % of loans and foreclosed assets
|
0.69
|
% |
0.73
|
% |
0.75
|
% | ||||||
As a % of total assets
|
0.35
|
% |
0.37
|
% |
0.38
|
% |
* | Includes $464 thousand, $2.81 million and $827 thousand of purchased credit impaired loans as of June 30, 2019 and 2018, and December 31, 2018, respectively. |
** |
Other troubled debt restructured loans of $3.91 million, $4.33 million and $3.84 million, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in
non-accrual
loans at June 30, 2019 and 2018, and December 31, 2018, respectively.
|
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Allowance for loan losses at
period-end
|
$ |
51,820
|
$ |
49,951
|
$ |
51,820
|
$ |
49,951
|
||||||||
Loans held for investment at
period-end
|
4,040,952
|
3,831,480
|
4,040,952
|
3,831,480
|
||||||||||||
Average loans for period
|
4,043,055
|
3,797,341
|
4,008,275
|
3,773,085
|
||||||||||||
Net charge-offs/average loans (annualized)
|
0.04
|
% |
0.07
|
% |
0.05
|
% |
0.03
|
% | ||||||||
Allowance for loan
losses/period-end
loans
|
1.28
|
% |
1.30
|
% |
1.28
|
% |
1.30
|
% | ||||||||
Allowance for loan
losses/non-accrual
loans, past due 90 days still accruing and restructured loans
|
190.66
|
% |
182.31
|
% |
190.66
|
% |
182.31
|
% |
|
Maturing
|
|||||||||||||||||||||||||||||||||||||||
|
One Year
or Less |
After One Year
Through Five Years |
After Five Years
Through Ten Years |
After
Ten Years |
Total
|
|||||||||||||||||||||||||||||||||||
Available-for-Sale:
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
U.S. Treasury securities
|
$ |
10,020
|
2.52
|
% | $ |
—
|
—
|
% | $ |
—
|
—
|
% | $ |
—
|
—
|
% | $ |
10,020
|
2.52
|
% | ||||||||||||||||||||
Obligations of states and political subdivisions
|
152,730
|
4.73
|
506,714
|
4.35
|
495,582
|
3.98
|
2,188
|
5.66
|
1,157,214
|
4.24
|
||||||||||||||||||||||||||||||
Corporate bonds and other securities
|
4,467
|
2.44
|
227
|
2.65
|
—
|
—
|
—
|
—
|
4,694
|
2.45
|
||||||||||||||||||||||||||||||
Mortgage-backed securities
|
27,992
|
2.14
|
1,337,484
|
2.62
|
722,088
|
2.98
|
—
|
—
|
2,087,564
|
2.74
|
||||||||||||||||||||||||||||||
Total
|
$ |
195,209
|
4.19
|
% | $ |
1,844,425
|
3.09
|
% | $ |
1,217,670
|
3.39
|
% | $ |
2,188
|
5.66
|
% | $ |
3,259,492
|
3.27
|
% | ||||||||||||||||||||
|
Three Months Ended June 30,
|
|||||||||||||||
|
2019
|
2018
|
||||||||||||||
|
Average
Balance |
Average
Rate |
Average
Balance |
Average
Rate |
||||||||||||
Noninterest-bearing deposits
|
$ |
2,136,264
|
—
|
% | $ |
2,121,902
|
—
|
% | ||||||||
Interest-bearing deposits:
|
|
|
|
|
||||||||||||
Interest-bearing checking
|
2,054,770
|
0.77
|
2,059,587
|
0.54
|
||||||||||||
Savings and money market accounts
|
1,705,154
|
0.56
|
1,536,899
|
0.23
|
||||||||||||
Time deposits under $100,000
|
188,188
|
0.69
|
207,518
|
0.19
|
||||||||||||
Time deposits of $100,000 or more
|
248,011
|
1.04
|
272,518
|
0.40
|
||||||||||||
Total interest-bearing deposits
|
4,196,123
|
0.70
|
% |
4,076,522
|
0.39
|
% | ||||||||||
Total average deposits
|
$ |
6,332,387
|
|
$ |
6,198,424
|
|
||||||||||
|
Six Months Ended June 30,
|
|||||||||||||||
|
2019
|
2018
|
||||||||||||||
|
Average
Balance |
Average
Rate |
Average
Balance |
Average
Rate |
||||||||||||
Noninterest-bearing deposits
|
$ |
2,109,640
|
—
|
% | $ |
2,116,969
|
—
|
% | ||||||||
Interest-bearing deposits:
|
|
|
|
|
||||||||||||
Interest-bearing checking
|
2,056,068
|
0.74
|
2,093,746
|
0.50
|
||||||||||||
Savings and money market accounts
|
1,675,909
|
0.56
|
1,534,025
|
0.21
|
||||||||||||
Time deposits under $100,000
|
189,921
|
0.62
|
211,319
|
0.19
|
||||||||||||
Time deposits of $100,000 or more
|
248,352
|
0.94
|
268,660
|
0.38
|
||||||||||||
Total interest-bearing deposits
|
4,170,250
|
0.67
|
% |
4,107,750
|
0.37
|
% | ||||||||||
Total average deposits
|
$ |
6,279,890
|
|
$ |
6,224,719
|
|
||||||||||
|
Actual
|
Minimum Capital
Required-Basel III Fully
Phased-In*
|
Required to be
Considered Well- Capitalized |
|||||||||||||||||||||
As of June 30, 2019:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
995,299
|
21.16
|
% | $ |
493,803
|
10.50
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
901,188
|
19.21
|
% | $ |
492,484
|
10.50
|
% | $ |
469,032
|
10.00
|
% | ||||||||||||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
942,670
|
20.04
|
% | $ |
399,745
|
8.50
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
848,560
|
18.09
|
% | $ |
398,677
|
8.50
|
% | $ |
375,226
|
8.00
|
% | ||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
942,670
|
20.04
|
% | $ |
329,202
|
7.00
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
848,560
|
18.09
|
% | $ |
328,323
|
7.00
|
% | $ |
304,871
|
6.50
|
% | ||||||||||||
Leverage Ratio:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
942,760
|
12.29
|
% | $ |
306,707
|
4.00
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
848,560
|
11.11
|
% | $ |
305,515
|
4.00
|
% | $ |
381,893
|
5.00
|
% |
* |
At June 30, 2019, the capital conservation buffer under Basel III has been fully
phased-in.
|
|
Actual
|
Minimum Capital
Required Under Basel III
Phase-In
|
Minimum Capital
Required-Basel III Fully
Phased-In
|
Required to be
Considered Well- Capitalized |
||||||||||||||||||||||||||||
As of June 30, 2018:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
884,279
|
19.81
|
% | $ |
440,691
|
9.875
|
% | $ |
468,583
|
10.50
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
813,002
|
18.27
|
% | $ |
439,561
|
9.875
|
% | $ |
467,349
|
10.50
|
% | $ |
445,095
|
10.00
|
% | ||||||||||||||||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
833,669
|
18.68
|
% | $ |
351,437
|
7.875
|
% | $ |
379,329
|
8.50
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
762,393
|
17.13
|
% | $ |
350,512
|
7.875
|
% | $ |
378,330
|
8.50
|
% | $ |
356,076
|
8.00
|
% | ||||||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
833,669
|
18.68
|
% | $ |
284,497
|
6.375
|
% | $ |
312,389
|
7.00
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
762,393
|
17.13
|
% | $ |
283,748
|
6.375
|
% | $ |
311,566
|
7.00
|
% | $ |
289,311
|
6.50
|
% | ||||||||||||||||
Leverage Ratio:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
833,669
|
11.14
|
% | $ |
299,364
|
4.00
|
% | $ |
299,364
|
4.00
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
762,393
|
10.23
|
% | $ |
298,235
|
4.00
|
% | $ |
298,235
|
4.00
|
% | $ |
372,794
|
5.00
|
% |
|
Actual
|
Minimum Capital
Required Under Basel III
Phase-In
|
Minimum Capital
Required-Basel III Fully
Phased-In
|
Required to be
Considered Well- Capitalized |
||||||||||||||||||||||||||||
As of December 31, 2018:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
940,026
|
20.61
|
% | $ |
450,459
|
9.875
|
% | $ |
478,969
|
10.50
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
824,428
|
18.12
|
% | $ |
449,350
|
9.875
|
% | $ |
477,790
|
10.50
|
% | $ |
455,038
|
10.00
|
% | ||||||||||||||||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
888,015
|
19.47
|
% | $ |
359,226
|
7.875
|
% | $ |
387,737
|
8.50
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
772,417
|
16.97
|
% | $ |
358,342
|
7.875
|
% | $ |
386,782
|
8.50
|
% | $ |
364,030
|
8.00
|
% | ||||||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
888,015
|
19.47
|
% | $ |
290,802
|
6.375
|
% | $ |
319,312
|
7.00
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
772,417
|
16.97
|
% | $ |
290,087
|
6.375
|
% | $ |
318,526
|
7.00
|
% | $ |
295,775
|
6.50
|
% | ||||||||||||||||
Leverage Ratio:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
888,015
|
11.85
|
% | $ |
299,682
|
4.00
|
% | $ |
299,682
|
4.00
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
772,417
|
10.35
|
% | $ |
298,576
|
4.00
|
% | $ |
298,576
|
4.00
|
% | $ |
373,220
|
5.00
|
% |
|
Total Notional
Amounts Committed |
|||
Unfunded lines of credit
|
$ |
695,824
|
||
Unfunded commitments to extend credit
|
367,270
|
|||
Standby letters of credit
|
32,148
|
|||
Total commercial commitments
|
$ |
1,095,242
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
2.1
|
—
|
|||||
3.1
|
—
|
|||||
3.2
|
—
|
|||||
4.1
|
—
|
|||||
10.1
|
—
|
|||||
10.2
|
—
|
|||||
10.3
|
—
|
|||||
10.4
|
—
|
|||||
10.5
|
—
|
|||||
10.6
|
—
|
|||||
10.7
|
—
|
|||||
10.8
|
—
|
|||||
31.1
|
—
|
|||||
31.2
|
—
|
|||||
32.1
|
—
|
|||||
32.2
|
—
|
|||||
101.INS
|
—
|
XBRL Instance Document — the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.*
|
||||
101.SCH
|
—
|
XBRL Taxonomy Extension Schema Document.*
|
||||
101.CAL
|
—
|
XBRL Taxonomy Extension Calculation Linkbase Document.*
|
||||
101.DEF
|
—
|
XBRL Taxonomy Extension Definition Linkbase Document.*
|
||||
101.LAB
|
—
|
XBRL Taxonomy Extension Label Linkbase Document.*
|
||||
101.PRE
|
—
|
XBRL Taxonomy Extension Presentation Linkbase Document.*
|
* | Filed herewith |
+ | Furnished herewith. This Exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934. |
++ | Management contract or compensatory plan on arrangement. |
|
|
FIRST FINANCIAL BANKSHARES, INC.
|
||||
Date: July 30, 2019
|
|
By:
|
/s/ F. Scott Dueser
|
|||
|
|
|
F. Scott Dueser
|
|||
|
|
|
President and Chief Executive Officer
|
|||
Date: July 30, 2019
|
|
By:
|
/s/ J. Bruce Hildebrand
|
|||
|
|
|
J. Bruce Hildebrand
|
|||
|
|
|
Executive Vice President and
|
|||
|
|
|
Chief Financial Officer
|
Exhibit 3.1
AMENDED AND RESTATED CERTIFICATE OF FORMATION
OF
FIRST FINANCIAL BANKSHARES, INC.
FIRST
First Financial Bankshares, Inc. (the Corporation), pursuant to the provisions of Section 3.059 of the Texas Business Organizations Code, hereby adopts this Amended and Restated Certificate of Formation, which accurately copies the Certificate of Formation and all amendments thereto that are in effect to date. The prior Certificate of Formation, as restated and amended by this Amended and Restated Certificate of Formation, is set forth below and contains no other changes in any provisions. For purposes of this document, the prior Certificate of Formation, including all amendments thereto, will be referred to as the Certificate of Formation.
SECOND
The shareholders of the Corporation adopted the following amendments to the Certificate of Formation on the 23rd day of April, 2019:
1. ARTICLE FOUR of the Certificate of Formation is amended to read as follows:
The aggregate number of common shares which the corporation shall have authority to issue is TWO HUNDRED MILLION (200,000,000) of the par value of ONE CENT ($0.01) each.
2. ARTICLE SIX of the Certificate of Formation is amended to read as follows:
The number of Directors constituting the current Board of Directors is twelve (12), and the names and addresses of the persons who are currently serving as Directors until the next annual meeting of the shareholders or until their successors are elected and qualified are:
Name |
Address |
|
April Anthony | 6688 N. Central Expressway, Ste. 1300, Dallas, TX 75206 | |
Tucker S. Bridwell | P. O. Box 1616, Abilene, TX 79604 | |
David Copeland | 273 Walnut St., Abilene, TX 79601 | |
F. Scott Dueser | P. O. Box 701, Abilene, TX 79604 | |
Murray Edwards | 5423 FM 3217, Clyde, TX 79510 | |
Tim Lancaster | 4202 78th Street #2, Lubbock, TX 79423 | |
Ronald Giddiens | 5808 Pecan Valley, San Angelo, TX 76904 | |
Kade L. Matthews | P. O. Box 1170, Clarendon, TX 79226 | |
Ross H. Smith, Jr. | P. O. Box 1508, Orange, TX 77631 | |
Johnny Trotter | 3409 FM 1058, Hereford, TX 79045 | |
Robert Nickles, Jr. | 1300 Alegacy Place, Waller, TX 77484 | |
Mike Denny | 2825 Pine Street, Abilene, TX 79605 |
1
THIRD
Each statement made in this Amended and Restated Certificate of Formation has been effected in conformity with the Texas Business Organizations Code. This Amended and Restated Certificate of Formation and all amendments made by this Amended and Restated Certificate of Formation were adopted by the shareholders of the Corporation on April 23, 2019, and in accordance with the Texas Business Organizations Code and the governing documents of the Corporation.
FOURTH
The Certificate of Formation and all amendments and supplements thereto are superseded by the following Amended and Restated Certificate of Formation, which accurately copies the entire text of the Certificate of Formation as well as incorporates the amendment set forth above:
2
AMENDED AND RESTATED CERTIFICATE OF FORMATION
OF
FIRST FINANCIAL BANKSHARES, INC.
ARTICLE ONE
The name of the corporation is FIRST FINANCIAL BANKSHARES, INC.
ARTICLE TWO
The corporation is formed as a domestic for-profit corporation.
ARTICLE THREE
The purposes for which the corporation is organized are the transaction of any or all lawful business for which corporations may be incorporated under the Texas Business Organizations Code.
ARTICLE FOUR
The aggregate number of common shares which the corporation shall have authority to issue is TWO HUNDRED MILLION (200,000,000) of the par value of ONE CENT ($0.01) each.
ARTICLE FIVE
The address of its registered office is 400 Pine Street, Abilene, Texas, USA 79601, and the name of its registered agent at such address is F. Scott Dueser.
ARTICLE SIX
The number of Directors constituting the current Board of Directors is twelve (12), and the names and addresses of the persons who are currently serving as Directors until the next annual meeting of the shareholders or until their successors are elected and qualified are:
Name |
Address |
|
April Anthony | 6688 N. Central Expressway, Ste. 1300, Dallas, TX 75206 | |
Tucker S. Bridwell | P. O. Box 1616, Abilene, TX 79604 | |
David Copeland | 273 Walnut St., Abilene, TX 79601 | |
F. Scott Dueser | P. O. Box 701, Abilene, TX 79604 | |
Murray Edwards | 5423 FM 3217, Clyde, TX 79510 | |
Tim Lancaster | 4202 78th Street #2, Lubbock, TX 79423 | |
Ronald Giddiens | 5808 Pecan Valley, San Angelo, TX 76904 | |
Kade L. Matthews | P. O. Box 1170, Clarendon, TX 79226 | |
Ross H. Smith, Jr. | P. O. Box 1508, Orange, TX 77631 | |
Johnny Trotter | 3409 FM 1058, Hereford, TX 79045 | |
Robert Nickles, Jr. | 1300 Alegacy Place, Waller, TX 77484 | |
Mike Denny | 2825 Pine Street, Abilene, TX 79605 |
3
ARTICLE SEVEN
The right of every shareholder to cumulatively vote shares is denied.
ARTICLE EIGHT
The preemptive rights of every shareholder to acquire unissued or treasury shares of the corporation is denied.
ARTICLE NINE
To the fullest extent not prohibited by applicable laws as presently or hereafter in effect, no person shall be liable to the corporation or its shareholders for monetary damages for or with respect to any acts or omissions in his or her capacity as a Director of the corporation, except liability for (i) a breach of a Directors duty of loyalty to the corporation or its shareholders, (ii) an act or omission not in good faith or that involves intentional misconduct or a knowing violation of the law, (iii) a transaction from which a Director received an improper benefit, whether or not the benefit resulted from an action taken within the scope of the Directors office, (iv) an act or omission for which the liability of a Director is expressly provided by statute, or (v) an act related to an unlawful stock repurchase or payment of a dividend.
Each person, his or her heirs, executors, personal representatives and estate, shall be indemnified by the corporation for all expenses incurred in connection with any action, suit, proceeding or claim to which he or she shall be named a party or otherwise be a participant by virtue of being or having been or agreeing to become (i) a Director, officer, employee or agent of the corporation and/or (ii) a Director, officer, employee or agent of any corporation or organization at the request of the corporation. Such indemnity shall be provided to the fullest extent not prohibited by applicable laws presently in effect or as may hereafter be amended. Indemnity shall include, but not be limited to the advancement of expenses and payment of all loss, liability and expenses. Provided, however, that no person shall be indemnified for amounts paid in settlement unless the terms and conditions of said settlement have been consented to by the corporation. Further, no indemnification of employees or agents of the corporation (other than Directors and officers) will be made without express authorization of the corporations Board of Directors.
The corporation may, upon the affirmative vote of the majority of its Board of Directors, purchase insurance for the purpose of securing the indemnification of its Directors, officers and other employees to the extent that such indemnification is allowed in this Article. Such insurance may, but need not, be for the benefit of all Directors, officers or employees, and the purchase of any such insurance shall in no way limit the indemnification provisions of the preceding paragraph. Provided, however, that such insurance shall not include coverage for a formal order assessing civil money penalties against a Director or employee of the corporation arising out of an administrative proceeding or action by an appropriate bank regulatory agency.
4
No repeal of or amendment to this Article Nine shall have any effect with respect to the liability or alleged liability of any Director occurring prior to such amendment or to the acts or omissions or rights to indemnity of any person occurring prior to such repeal or amendment.
The term Director in this Article Nine shall include Advisory Directors and Directors Emeritus and Inside Directors serving in a post retirement capacity, as such terms are or may hereafter be defined in the Bylaws of the Company.
FIRST FINANCIAL BANKSHARES, INC. | ||
By: |
/s/ F. Scott Dueser |
|
F. Scott Dueser, President |
Dated: April 23, 2019
5
Exhibit 31.1
Certification of
Chief Executive Officer
of First Financial Bankshares, Inc.
I, F. Scott Dueser, President and Chief Executive Officer of First Financial Bankshares, Inc., certify that:
1. I have reviewed this Form 10-Q of First Financial Bankshares, Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d. Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: July 30, 2019
By: |
/s/ F. SCOTT DUESER |
|
F. Scott Dueser | ||
President and Chief Executive Officer |
Exhibit 31.2
Certification of
Chief Financial Officer
of First Financial Bankshares, Inc.
I, J. Bruce Hildebrand, Executive Vice President and Chief Financial Officer of First Financial Bankshares, Inc., certify that:
1. I have reviewed this Form 10-Q of First Financial Bankshares, Inc.;
2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f), for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d. Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: July 30, 2019
By: |
/s/ J. Bruce Hildebrand |
|
J. Bruce Hildebrand | ||
Executive Vice President and Chief Financial Officer |
Exhibit 32.1
Certification of
Chief Executive Officer
of First Financial Bankshares, Inc.
This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and accompanies the quarterly report on Form 10-Q (the Form 10-Q) for the quarter ended June 30, 2019 of First Financial Bankshares, Inc. (the Company).
I, F. Scott Dueser, the President and Chief Executive Officer of the Company, certify that:
1. the Form 10-Q fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
2. the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: July 30, 2019
By: |
/s/ F. SCOTT DUESER |
|
F. Scott Dueser | ||
Chief Executive Officer |
Subscribed and sworn to before me this 30th day of July, 2019.
/s/ Melissa Ann Fenton |
Melissa Ann Fenton |
Notary Public |
My commission expires: October 11, 2020
Exhibit 32.2
Certification of
Chief Financial Officer
of First Financial Bankshares, Inc.
This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and accompanies the quarterly report on Form 10-Q (the Form 10-Q) for the quarter ended June 30, 2019 of First Financial Bankshares, Inc. (the Company).
I, J. Bruce Hildebrand, the Executive Vice President and Chief Financial Officer of the Company, certify that:
1. the Form 10-Q fully complies with the requirements of section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
2. the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.
Dated: July 30, 2019
By: |
/s/ J. Bruce Hildebrand |
|
J. Bruce Hildebrand | ||
Chief Financial Officer |
Subscribed and sworn to before me this 30th day of July, 2019.
/s/ Melissa Ann Fenton |
Melissa Ann Fenton |
Notary Public |
My commission expires: October 11, 2020