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)
|
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
Common Stock, $0.01 par value
|
FFIN
|
NASDAQ Global Select Market
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
|||
Non-accelerated
filer
|
☐
|
Smaller reporting company
|
☐
|
|||
|
|
Emerging growth company
|
☐
|
Class
|
Outstanding at October 29, 2019
|
|
Common Stock, $0.01 par value per share
|
135,844,644
|
|
||||||
|
|
|||||
FINANCIAL INFORMATION
|
|
|||||
Item
|
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Page
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1.
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2
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3
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4
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5
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6
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8
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9
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2.
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36
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3.
|
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56
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4.
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56
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|||||
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||||||
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|||||
OTHER INFORMATION
|
|
|||||
|
|
|
|
|
|
|
1.
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
1A.
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
2.
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
3.
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
4.
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
5.
|
|
|
|
57
|
|
|
|
|
|
|
|
|
|
6.
|
|
|
|
58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
INTEREST INCOME:
|
|
|
|
|
||||||||||||
Interest and fees on loans
|
$ |
57,123
|
$ |
51,428
|
$ |
166,095
|
$ |
147,279
|
||||||||
Interest on investment securities:
|
|
|
|
|
||||||||||||
Taxable
|
14,292
|
12,593
|
41,505
|
36,666
|
||||||||||||
Exempt from federal income tax
|
8,795
|
9,558
|
27,801
|
29,882
|
||||||||||||
Interest on federal funds sold and interest-bearing deposits in banks
|
381
|
470
|
1,668
|
1,382
|
||||||||||||
Total interest income
|
80,591
|
74,049
|
237,069
|
215,209
|
||||||||||||
INTEREST EXPENSE:
|
|
|
|
|
||||||||||||
Interest on deposits
|
7,123
|
4,330
|
21,070
|
11,854
|
||||||||||||
Other
|
830
|
293
|
2,231
|
869
|
||||||||||||
Total interest expense
|
7,953
|
4,623
|
23,301
|
12,723
|
||||||||||||
|
||||||||||||||||
Net interest income
|
72,638
|
69,426
|
213,768
|
202,486
|
||||||||||||
PROVISION FOR LOAN LOSSES
|
450
|
1,450
|
2,015
|
3,865
|
||||||||||||
Net interest income after provision for loan losses
|
72,188
|
67,976
|
211,753
|
198,621
|
||||||||||||
NONINTEREST INCOME:
|
|
|
|
|
||||||||||||
Trust fees
|
7,051
|
7,291
|
21,057
|
21,265
|
||||||||||||
Service charges on deposit accounts
|
5,629
|
5,690
|
16,179
|
15,950
|
||||||||||||
ATM, interchange and credit card fees
|
7,728
|
7,533
|
21,920
|
21,570
|
||||||||||||
Real estate mortgage operations
|
5,733
|
4,834
|
13,928
|
11,718
|
||||||||||||
Net gain on sale of
available-for-sale
securities (includes $52 and $58 for the three months ended September 30, 2019 and 2018, respectively, and $728 and $1,346 for the nine months ended September 30, 2019 and 2018, respectively, related to accumulated other comprehensive earnings reclassifications)
|
52
|
58
|
728
|
1,346
|
||||||||||||
Net gain on sale of foreclosed assets
|
71
|
84
|
193
|
201
|
||||||||||||
Net gain (loss) on sale of assets
|
235
|
(61
|
) |
241
|
(152
|
) | ||||||||||
Interest on loan recoveries
|
575
|
199
|
1,815
|
607
|
||||||||||||
Other
|
1,595
|
1,427
|
5,020
|
4,461
|
||||||||||||
Total noninterest income
|
28,669
|
27,055
|
81,081
|
76,966
|
||||||||||||
NONINTEREST EXPENSE:
|
|
|
|
|
||||||||||||
Salaries and employee benefits
|
28,550
|
26,377
|
82,468
|
79,442
|
||||||||||||
Loss from partial settlement of pension plan
|
—
|
—
|
900
|
—
|
||||||||||||
Net occupancy expense
|
2,830
|
2,900
|
8,372
|
8,589
|
||||||||||||
Equipment expense
|
2,225
|
2,629
|
7,009
|
7,548
|
||||||||||||
FDIC insurance premiums
|
15
|
570
|
1,091
|
1,768
|
||||||||||||
ATM, interchange and credit card expenses
|
2,627
|
2,344
|
7,437
|
6,692
|
||||||||||||
Professional and service fees
|
1,902
|
2,174
|
5,721
|
6,613
|
||||||||||||
Printing, stationery and supplies
|
480
|
387
|
1,348
|
1,485
|
||||||||||||
Operational and other losses
|
507
|
981
|
1,253
|
1,852
|
||||||||||||
Software amortization and expense
|
1,767
|
1,393
|
5,147
|
4,433
|
||||||||||||
Amortization of intangible assets
|
246
|
279
|
778
|
1,049
|
||||||||||||
Other
|
7,761
|
7,472
|
23,059
|
22,977
|
||||||||||||
Total noninterest expense
|
48,910
|
47,506
|
144,583
|
142,448
|
||||||||||||
EARNINGS BEFORE INCOME TAXES
|
51,947
|
47,525
|
148,251
|
133,139
|
||||||||||||
INCOME TAX EXPENSE
|
8,867
|
7,475
|
24,827
|
20,937
|
||||||||||||
NET EARNINGS
|
$ |
43,080
|
$ |
40,050
|
$ |
123,424
|
$ |
112,202
|
||||||||
EARNINGS PER SHARE, BASIC
|
$ |
0.32
|
$ |
0.30
|
$ |
0.91
|
$ |
0.83
|
||||||||
EARNINGS PER SHARE, ASSUMING DILUTION
|
$ |
0.32
|
$ |
0.29
|
$ |
0.91
|
$ |
0.83
|
||||||||
DIVIDENDS PER SHARE
|
$ |
0.12
|
$ |
0.11
|
$ |
0.35
|
$ |
0.31
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
NET EARNINGS
|
$
|
43,080
|
$ |
40,050
|
$ |
123,424
|
$ |
112,202
|
||||||||
OTHER ITEMS OF COMPREHENSIVE EARNINGS (LOSS):
|
|
|
|
|
||||||||||||
C
hange in unrealized gain (loss) on investment securities
available-for-sale,
before income taxes
|
16,446
|
(20,930
|
) |
88,517
|
(75,236
|
) | ||||||||||
Reclassification adjustment for realized gains on investment securities included in net earnings, before income tax
|
(52
|
) |
(58
|
) |
(728
|
) |
(1,346
|
) | ||||||||
Total other items of comprehensive earnings
|
16,394
|
(20,988
|
) |
87,789
|
(76,582
|
) | ||||||||||
Income tax benefit (expense) related to other items of comprehensive earnings
|
(3,444
|
) |
4,407
|
(18,437
|
) |
16,082
|
||||||||||
Reclassification of certain income tax effects related to the change in the U.S. statutory federal incoem tax rate under the Tax Cuts and Jobs Act to retained earnings
.
|
—
|
—
|
—
|
5,759
|
||||||||||||
COMPREHENSIVE EARNINGS
|
$
|
56,030
|
$ |
23,469
|
$ |
192,776
|
$ |
57,461
|
||||||||
|
|
|
|
|
|
|
|
Accumulated
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Other
|
Total
|
|||||||||||||||||||||||||||
|
Common Stock
|
Capital
|
Retained
|
Treasury Stock
|
Deferred
|
Comprehensive
|
Shareholders’
|
|||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Surplus
|
Earnings
|
Shares
|
Amounts
|
Compensation
|
Earnings
|
Equity
|
|||||||||||||||||||||||||||
Balances at June 30, 2018
(unaudited)
|
67,669,658
|
$ |
677
|
$ |
439,731
|
$ |
556,615
|
(491,170
|
) | $ |
(7,419
|
) | $ |
7,419
|
$ |
(11,395
|
) | $ |
985,628
|
|||||||||||||||||
Net earnings (unaudited)
|
—
|
—
|
—
|
40,050
|
—
|
—
|
—
|
—
|
40,050
|
|||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
23,928
|
—
|
481
|
—
|
—
|
—
|
—
|
—
|
481
|
|||||||||||||||||||||||||||
Cash dividends declared, $0.11 per share (unaudited)
|
—
|
—
|
—
|
(14,216
|
) |
—
|
—
|
—
|
—
|
(14,216
|
) | |||||||||||||||||||||||||
Change in unrealized loss in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(16,581
|
) |
(16,581
|
) | |||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
20,100
|
(93
|
) |
93
|
—
|
—
|
||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
377
|
—
|
—
|
—
|
—
|
—
|
377
|
|||||||||||||||||||||||||||
Balances at September 30, 2018 (unaudited)
|
67,693,586
|
$ |
677
|
$ |
440,589
|
$ |
582,449
|
(471,070
|
) | $ |
(7,512
|
) | $ |
7,512
|
$ |
(27,976
|
) | $ |
995,739
|
|||||||||||||||||
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
|
||||||||||||||||||
Net earnings (unaudited)
|
—
|
—
|
—
|
43,080
|
—
|
—
|
—
|
—
|
43,080
|
|||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
13,232
|
—
|
188
|
—
|
—
|
—
|
—
|
—
|
188
|
|||||||||||||||||||||||||||
Cash dividends declared, $0.12 per share (unaudited)
|
—
|
—
|
—
|
(16,299
|
) |
—
|
—
|
—
|
—
|
(16,299
|
) | |||||||||||||||||||||||||
Change in unrealized gain in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
12,950
|
12,950
|
|||||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
1,154
|
(219
|
) |
219
|
—
|
—
|
||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
431
|
—
|
—
|
—
|
—
|
—
|
431
|
|||||||||||||||||||||||||||
Balances at September 30, 2019 (unaudited)
|
135,822,456
|
$ |
1,358
|
$ |
448,968
|
$ |
682,575
|
(928,287
|
) | $ |
(8,042
|
) | $ |
8,042
|
$ |
72,197
|
$ |
1,205,098
|
|
6
|
|
(continued)
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
Other
|
Total
|
|||||||||||||||||||||||||||
|
Common Stock
|
Capital
|
Retained
|
Treasury Stock
|
Deferred
|
Comprehensive
|
Shareholders’
|
|||||||||||||||||||||||||||||
|
Shares
|
Amount
|
Surplus
|
Earnings
|
Shares
|
Amounts
|
Compensation
|
Earnings
|
Equity
|
|||||||||||||||||||||||||||
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)
|
—
|
—
|
—
|
112,202
|
—
|
—
|
—
|
—
|
112,202
|
|||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
133,061
|
1
|
2,799
|
—
|
—
|
—
|
—
|
—
|
2,800
|
|||||||||||||||||||||||||||
Restricted stock grant (unaudited)
|
10,710
|
—
|
523
|
—
|
—
|
—
|
—
|
—
|
523
|
|||||||||||||||||||||||||||
Cash dividends declared, $0.31 per share (unaudited)
|
—
|
—
|
—
|
(41,272
|
) |
—
|
—
|
—
|
—
|
(41,272
|
) | |||||||||||||||||||||||||
Stock issued in acquisition of Commercial Bancshares, Inc.
|
1,289,371
|
13
|
58,074
|
—
|
—
|
—
|
—
|
—
|
58,087
|
|||||||||||||||||||||||||||
Change in unrealized
loss
in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
(60,500
|
) |
(60,500
|
) | |||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
24,894
|
(364
|
) |
364
|
—
|
—
|
||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
1,131
|
—
|
—
|
—
|
—
|
—
|
1,131
|
|||||||||||||||||||||||||||
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 September
30
, 2018 (unaudited)
|
67,693,586
|
$ |
677
|
$ |
440,589
|
$ |
582,449
|
(471,070
|
) | $ |
(7,512
|
) | $ |
7,512
|
$ |
(27,976
|
) | $ |
995,739
|
|||||||||||||||||
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)
|
—
|
—
|
—
|
123,424
|
—
|
—
|
—
|
—
|
123,424
|
|||||||||||||||||||||||||||
Stock option exercises (unaudited)
|
185,779
|
2
|
3,491
|
—
|
—
|
—
|
—
|
—
|
3,493
|
|||||||||||||||||||||||||||
Restricted stock grant (unaudited)
|
43,334
|
—
|
1,307
|
—
|
—
|
—
|
—
|
—
|
1,307
|
|||||||||||||||||||||||||||
Cash dividends declared, $0.35 per share (unaudited)
|
—
|
—
|
—
|
(46,829
|
) |
—
|
—
|
—
|
—
|
(46,829
|
) | |||||||||||||||||||||||||
Change in unrealized gain in investment securities
available-for-sale,
net of related income taxes (unaudited)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
69,352
|
69,352
|
|||||||||||||||||||||||||||
Shares purchased (redeemed) in connection with directors’ deferred compensation plan, net (unaudited)
|
—
|
—
|
—
|
—
|
3,863
|
(535
|
) |
535
|
—
|
—
|
||||||||||||||||||||||||||
Stock option expense (unaudited)
|
—
|
—
|
1,056
|
—
|
—
|
—
|
—
|
—
|
1,056
|
|||||||||||||||||||||||||||
Two-for-one
stock spllit in the form of a
|
67,840,210
|
678
|
—
|
(678
|
) |
(464,339
|
) |
—
|
—
|
—
|
—
|
|||||||||||||||||||||||||
Balances at September 30, 2019 (unaudited)
|
135,822,456
|
$ |
1,358
|
$ |
448,968
|
$ |
682,575
|
(928,287
|
) | $ |
(8,042
|
) | $ |
8,042
|
$ |
72,197
|
$ |
1,205,098
|
||||||||||||||||||
|
Nine Months Ended September 30,
|
|||||||
|
2019
|
2018
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
||||||
Net earnings
|
$ |
123,424
|
$ |
112,202
|
||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|
|
||||||
Depreciation and amortization
|
8,730
|
9,554
|
||||||
Provision for loan losses
|
2,015
|
3,865
|
||||||
Securities premium amortization (discount accretion), net
|
18,690
|
21,005
|
||||||
Gain on sale of assets, net
|
(1,312
|
) |
(1,254
|
) | ||||
Deferred federal income tax benefit
|
1,720
|
8,107
|
||||||
Change in loans
held-for-sale
|
(18,491
|
) |
(2,928
|
) | ||||
Change in other assets
|
1,789
|
2,699
|
||||||
Change in other liabilities
|
9,097
|
5,653
|
||||||
Total adjustments
|
22,238
|
46,701
|
||||||
Net cash provided by operating activities
|
145,662
|
158,903
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
||||||
Cash received in acquisition of Commercial Bancshares, Inc.
|
—
|
18,653
|
||||||
Net decrease in interest-bearing time deposits in banks
|
1,458
|
—
|
||||||
Activity in
available-for-sale
securities:
|
|
|
||||||
Sales
|
67,404
|
220,259
|
||||||
Maturities
|
4,342,074
|
3,354,571
|
||||||
Purchases
|
(4,526,709
|
) |
(3,650,127
|
) | ||||
Net increase in loans
|
(149,553
|
) |
(116,860
|
) | ||||
Purchases of bank premises and equipment and other assets
|
(7,541
|
) |
(12,381
|
) | ||||
Proceeds from sale of bank premises and equipment and other assets
|
1,344
|
810
|
||||||
Net cash used in investing activities
|
(271,523
|
) |
(185,075
|
) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
||||||
Net increase (decrease) in noninterest-bearing deposits
|
94,890
|
(56,706
|
) | |||||
Net increase (decrease)
in interest-bearing deposits
|
122,404
|
(102,875
|
) | |||||
Net increase (decrease) in borrowings
|
(68,551
|
) |
49,760
|
|||||
Common stock transactions:
|
|
|
||||||
Proceeds from stock issuances
|
3,493
|
2,800
|
||||||
Dividends paid
|
(44,757
|
) |
(39,645
|
) | ||||
Net cash provided by (used in) financing activities
|
107,479
|
(146,666
|
) | |||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(18,382
|
) |
(172,838
|
) | ||||
CASH AND CASH EQUIVALENTS, beginning of period
|
248,647
|
372,347
|
||||||
CASH AND CASH EQUIVALENTS, end of period
|
$ |
230,265
|
$ |
199,509
|
||||
SUPPLEMENTAL INFORMATION AND NONCASH TRANSACTIONS:
|
|
|
||||||
Interest paid
|
$ |
22,963
|
$ |
12,617
|
||||
Federal income taxes paid
|
22,141
|
20,351
|
||||||
Transfer of loans and bank premises to other real estate
|
1,208
|
126
|
||||||
Investment securities purchased but not settled
|
51,181
|
13,453
|
||||||
Restricted stock grant to officers and directors
|
1,307
|
523
|
||||||
Stocks issued in acquisition of Commercial Bancshares, Inc.
|
—
|
58,087
|
|
September 30, 2019
|
|||||||||||||||
|
|
Gross
|
Gross
|
|
||||||||||||
|
Amortized
|
Unrealized
|
Unrealized
|
Estimated
|
||||||||||||
|
Cost Basis
|
Holding Gains
|
Holding Losses
|
Fair Value
|
||||||||||||
U.S. Treasury securities
|
$ |
9,990
|
$ |
31
|
$ |
—
|
$ |
10,021
|
||||||||
Obligations of states and political subdivisions
|
1,182,549
|
59,734
|
(86
|
) |
1,242,197
|
|||||||||||
Corporate bonds and other
|
4,643
|
87
|
—
|
4,730
|
||||||||||||
Residential mortgage-backed securities
|
1,597,807
|
27,001
|
(1,428
|
) |
1,623,380
|
|||||||||||
Commercial mortgage-backed securities
|
509,019
|
8,069
|
(260
|
) |
516,828
|
|||||||||||
Total securities
available-for-sale
|
$ |
3,304,008
|
$ |
94,922
|
$ |
(1,774
|
) | $ |
3,397,156
|
|||||||
|
September 30, 2018
|
|||||||||||||||
|
|
Gross
|
Gross
|
|
||||||||||||
|
Amortized
|
Unrealized
|
Unrealized
|
Estimated
|
||||||||||||
|
Cost Basis
|
Holding Gains
|
Holding Losses
|
Fair Value
|
||||||||||||
U.S. Treasury securities
|
$ |
9,964
|
$ |
—
|
$ |
(35
|
) | $ |
9,929
|
|||||||
Obligations of U.S. government sponsored enterprises and agencies
|
303
|
—
|
(1
|
) |
302
|
|||||||||||
Obligations of states and political subdivisions
|
1,174,320
|
21,664
|
(4,097
|
) |
1,191,887
|
|||||||||||
Corporate bonds and other
|
4,860
|
—
|
(121
|
) |
4,739
|
|||||||||||
Residential mortgage-backed securities
|
1,533,302
|
912
|
(39,908
|
) |
1,494,306
|
|||||||||||
Commercial mortgage-backed securities
|
453,495
|
8
|
(10,299
|
) |
443,204
|
|||||||||||
Total securities
available-for-sale
|
$ |
3,176,244
|
$ |
22,584
|
$ |
(54,461
|
) | $ |
3,144,367
|
|||||||
|
December 31, 2018
|
|||||||||||||||
|
|
Gross
|
Gross
|
|
||||||||||||
|
Amortized
|
Unrealized
|
Unrealized
|
Estimated
|
||||||||||||
|
Cost Basis
|
Holding Gains
|
Holding Losses
|
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
|
Estimated
|
||||||
|
Cost Basis
|
Fair Value
|
||||||
Due within one year
|
$
|
207,121
|
$
|
208,899
|
||||
Due after one year through five years
|
494,764
|
520,494
|
||||||
Due after five years through ten years
|
493,565
|
525,301
|
||||||
Due after ten years
|
1,732
|
2,254
|
||||||
Mortgage-backed securities
|
2,106,826
|
|
|
|
2,140,208
|
|||
Total
|
$
|
3,304,008
|
|
|
$
|
3,397,156
|
||
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
September 30, 2019
|
Fair Value
|
Unrealized
Loss
|
Fair Value
|
Unrealized
Loss
|
Fair Value
|
Unrealized
Loss
|
||||||||||||||||||
Obligations of states and political subdivisions
|
$ |
11,140
|
$ |
86
|
$ |
828
|
$ |
—
|
$ |
11,968
|
$ |
86
|
||||||||||||
Residential mortgage-backed securities
|
91,850
|
75
|
146,449
|
1,353
|
238,299
|
1,428
|
||||||||||||||||||
Commercial mortgage-backed securities
|
42,310
|
115
|
74,873
|
145
|
117,183
|
260
|
||||||||||||||||||
Total
|
$ |
145,300
|
$ |
276
|
$ |
222,150
|
$ |
1,498
|
$ |
367,450
|
$ |
1,774
|
||||||||||||
|
Less than 12 Months
|
12 Months or Longer
|
Total
|
|||||||||||||||||||||
September 30, 2018
|
Fair Value
|
Unrealized
Loss
|
Fair Value
|
Unrealized
Loss
|
Fair Value
|
Unrealized
Loss
|
||||||||||||||||||
U.S. Treasury Securities
|
$ |
9,929
|
$ |
35
|
$ |
—
|
$ |
—
|
$ |
9,929
|
$ |
35
|
||||||||||||
Obligations of U.S. government sponsored enterprises and agencies
|
302
|
1
|
—
|
—
|
302
|
1
|
||||||||||||||||||
Obligations of states and political subdivisions
|
184,265
|
2,165
|
44,750
|
1,932
|
229,015
|
4,097
|
||||||||||||||||||
Corporate bonds and other
|
4,399
|
110
|
449
|
11
|
4,848
|
121
|
||||||||||||||||||
Residential mortgage-backed securities
|
962,320
|
20,850
|
461,227
|
19,058
|
1,423,547
|
39,908
|
||||||||||||||||||
Commercial mortgage-backed securities
|
270,375
|
5,908
|
167,368
|
4,391
|
437,743
|
10,299
|
||||||||||||||||||
Total
|
$ |
1,431,590
|
$ |
29,069
|
$ |
673,794
|
$ |
25,392
|
$ |
2,105,384
|
$ |
54,461
|
||||||||||||
|
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
|
||||||||||||
|
September 30,
|
December 31,
|
||||||||||
|
2019
|
2018
|
2018
|
|||||||||
Commercial
|
$ |
836,644
|
$ |
773,924
|
$ |
844,953
|
||||||
Agricultural
|
102,054
|
93,953
|
96,677
|
|||||||||
Real estate
|
2,749,552
|
2,614,929
|
2,639,346
|
|||||||||
Consumer
|
412,066
|
384,234
|
372,660
|
|||||||||
Total loans
held-for-investment
|
$
|
4,100,316
|
$
|
3,867,040
|
$
|
3,953,636
|
||||||
|
September 30,
|
December 31,
|
||||||||||
|
2019
|
2018
|
2018
|
|||||||||
Non-accrual
loans*
|
$ |
25,717
|
$
|
25,587
|
$ |
27,534
|
||||||
Loans still accruing and past due 90 days or more
|
104
|
88
|
1,008
|
|||||||||
Troubled debt restructured loans**
|
27
|
513
|
513
|
|||||||||
Total
|
$
|
25,848
|
$
|
26,188
|
$ |
29,055
|
||||||
* | Includes $342,000, $2,947,000 and $827,000 of purchased credit impaired loans as of September 30, 2019 and 2018, and December 31, 2018, respectively. |
** |
Troubled debt restructured loans of $3,983,000, $4,577,000 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 September 30, 2019 and 2018, and December 31, 2018, respectively.
|
September 30, 2019
|
September 30, 2018
|
December 31, 2018
|
||||||||||||||||||||
Re
Investment
|
Valuation
Allowance |
Recorded
Investment |
Valuation
Allowance |
Recorded
Investment |
Valuation
Allowance |
|||||||||||||||||
$ |
25,717
|
$ |
4,194
|
$ |
25,587
|
$ |
4,988
|
$ |
27,534
|
$ |
4,069
|
|||||||||||
|
September 30,
|
December 31,
|
||||||||||
|
2019
|
2018
|
2018
|
|||||||||
Commercial
|
$ |
8,802
|
$ |
6,961
|
$ |
9,334
|
||||||
Agricultural
|
1,502
|
1,046
|
759
|
|||||||||
Real estate
|
15,095
|
16,682
|
16,714
|
|||||||||
Consumer
|
318
|
898
|
727
|
|||||||||
Total
|
$
|
25,717
|
$
|
25,587
|
$ |
27,534
|
||||||
September
30, 2019
|
Unpaid
Contractual
Principal
Balance
|
Recorded
Investment With No Allowance* |
Recorded
Investment With Allowance |
Total
Recorded Investment |
Related
Allowance |
Year
–to-
D
ate
Average
Recorded Investment |
Three-
Month Average Recorded Investment |
|||||||||||||||||||||
Commercial
|
$ |
10,250
|
$ |
5,885
|
$ |
2,917
|
$ |
8,802
|
$ |
1,448
|
$ |
9,586
|
$ |
9,263
|
||||||||||||||
Agricultural
|
1,701
|
406
|
1,096
|
1,502
|
247
|
1,707
|
1,609
|
|||||||||||||||||||||
Real Estate
|
22,535
|
4,143
|
10,952
|
15,095
|
2,314
|
16,739
|
15,577
|
|||||||||||||||||||||
Consumer
|
444
|
9
|
309
|
318
|
185
|
416
|
346
|
|||||||||||||||||||||
Total
|
$ |
34,930
|
$ |
10,443
|
$
|
15,274
|
$
|
25,717
|
$ |
4,194
|
$ |
28,448
|
$
|
26,795
|
||||||||||||||
* | Includes $342,000 of purchased credit impaired loans. |
September
30, 201
8
|
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
|
$ |
9,276
|
$ |
3,467
|
$ |
3,494
|
$ |
6,961
|
$ |
1,412
|
$ |
8,339
|
$ |
7,669
|
||||||||||||||
Agricultural
|
1,062
|
—
|
1,046
|
1,046
|
528
|
1,506
|
1,101
|
|||||||||||||||||||||
Real Estate
|
22,513
|
4,215
|
12,467
|
16,682
|
2,652
|
18,688
|
17,762
|
|||||||||||||||||||||
Consumer
|
1,088
|
50
|
848
|
898
|
396
|
1,012
|
942
|
|||||||||||||||||||||
Total
|
$ |
33,939
|
$ |
7,732
|
$
|
17,855
|
$
|
25,587
|
$ |
4,988
|
$ |
29,545
|
$
|
27,474
|
||||||||||||||
* | Includes $2,947,000 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. |
September 30, 2019
|
Pass
|
|
|
Special
Mention |
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|||||||
Commercial
|
$ |
797,444
|
$ |
24,836
|
$ |
14,364
|
$ |
—
|
$ |
836,644
|
||||||||||
Agricultural
|
99,586
|
61
|
2,407
|
—
|
102,054
|
|||||||||||||||
Real Estate
|
2,673,591
|
21,171
|
54,790
|
—
|
2,749,552
|
|||||||||||||||
Consumer
|
410,491
|
232
|
1,343
|
—
|
412,066
|
|||||||||||||||
Total
|
$
|
3,981,112
|
$
|
46,300
|
$ |
72,904
|
$ |
—
|
$
|
4,100,316
|
||||||||||
September 30, 2018
|
Pass
|
|
|
Special
Mention |
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|||||||
Commercial
|
$ |
747,758
|
$ |
8,817
|
$ |
17,349
|
$ |
—
|
$ |
773,924
|
||||||||||
Agricultural
|
89,314
|
68
|
4,571
|
—
|
93,953
|
|||||||||||||||
Real Estate
|
2,530,673
|
27,241
|
57,015
|
—
|
2,614,929
|
|||||||||||||||
Consumer
|
381,772
|
324
|
2,138
|
—
|
384,234
|
|||||||||||||||
Total
|
$
|
3,749,517
|
$
|
36,450
|
$ |
81,073
|
$ |
—
|
$
|
3,867,040
|
||||||||||
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
|
||||||||||
September 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
Still
Accruing
|
|||||||||||||||||||||
Commercial
|
$ |
2,740
|
$ |
815
|
$ |
619
|
$ |
4,174
|
$ |
832,470
|
$ |
836,644
|
$
|
—
|
||||||||||||||
Agricultural
|
605
|
232
|
202
|
1,039
|
101,015
|
102,054
|
—
|
|||||||||||||||||||||
Real Estate
|
14,216
|
1,563
|
239
|
16,018
|
2,733,534
|
2,749,552
|
69
|
|||||||||||||||||||||
Consumer
|
595
|
164
|
40
|
799
|
411,267
|
412,066
|
35
|
|||||||||||||||||||||
Total
|
$ |
18,156
|
$
|
2,774
|
$
|
1,100
|
$ |
22,030
|
$
|
4,078,286
|
$
|
4,100,316
|
$ |
104
|
||||||||||||||
September 30, 2018
|
15-59
Days
Past
Due*
|
60-89
Days
Past Due
|
Greater
Than 90 Days |
Total
Due |
Current
|
Total Loans
|
90 Days
Past
Still
Accruing
|
|||||||||||||||||||||
Commercial
|
$ |
3,850
|
$ |
420
|
$ |
3,331
|
$ |
7,601
|
$ |
766,323
|
$ |
773,924
|
$ |
—
|
||||||||||||||
Agricultural
|
442
|
—
|
287
|
729
|
93,224
|
93,953
|
—
|
|||||||||||||||||||||
Real Estate
|
15,542
|
2,583
|
661
|
18,786
|
2,596,143
|
2,614,929
|
—
|
|||||||||||||||||||||
Consumer
|
749
|
173
|
145
|
1,067
|
383,167
|
384,234
|
88
|
|||||||||||||||||||||
Total
|
$ |
20,583
|
$
|
3,176
|
$
|
4,424
|
$ |
28,183
|
$
|
3,838,857
|
$
|
3,867,040
|
$
|
88
|
||||||||||||||
December 31, 2018
|
15-59
Days
Past
Due*
|
60-89
Days
Past Due
|
Greater
Than 90 Days |
Total
Past Due |
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. |
September 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
1,448
|
$ |
247
|
$ |
2,314
|
$ |
185
|
$ |
4,194
|
||||||||||
Loans collectively evaluated for impairment
|
11,018
|
1,000
|
30,022
|
5,655
|
47,695
|
|||||||||||||||
Total
|
$ |
12,466
|
$ |
1,247
|
$ |
32,336
|
$ |
5,840
|
$
|
51,889
|
||||||||||
September 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
1,412
|
$ |
528
|
$ |
2,652
|
$ |
396
|
$ |
4,988
|
||||||||||
Loans collectively evaluated for impairment
|
7,549
|
1,106
|
31,713
|
5,515
|
45,883
|
|||||||||||||||
Total
|
$ |
8,961
|
$ |
1,634
|
$
|
34,365
|
$ |
5,911
|
$ |
50,871
|
||||||||||
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
September 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
13,899
|
$ |
1,360
|
$ |
30,799
|
$ |
5,762
|
$ |
51,820
|
||||||||||
Provision for loan losses
|
(1,174
|
) |
(32
|
) |
1,531
|
125
|
450
|
|||||||||||||
Recoveries
|
90
|
85
|
100
|
111
|
386
|
|||||||||||||||
Charge-offs
|
(349
|
) |
(166
|
) |
(94
|
) |
(158
|
) |
(767
|
) | ||||||||||
Ending balance
|
$ |
12,466
|
$ |
1,247
|
$ |
32,336
|
$ |
5,840
|
$
|
51,889
|
||||||||||
Three months ended
September 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
9,218
|
$ |
1,402
|
$ |
33,243
|
$ |
6,088
|
$
|
49,951
|
||||||||||
Provision for loan losses
|
(24
|
) |
229
|
1,091
|
154
|
1,450
|
||||||||||||||
Recoveries
|
192
|
3
|
85
|
135
|
415
|
|||||||||||||||
Charge-offs
|
(425
|
) |
—
|
(54
|
) |
(466
|
) |
(945
|
) | |||||||||||
Ending balance
|
$ |
8,961
|
$ |
1,634
|
$ |
34,365
|
$ |
5,911
|
$
|
50,871
|
||||||||||
Nine months ended
September 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
11,948
|
$ |
1,446
|
$ |
32,342
|
$ |
5,466
|
$ |
51,202
|
||||||||||
Provision for loan losses
|
439
|
10
|
998
|
568
|
2,015
|
|||||||||||||||
Recoveries
|
1,163
|
92
|
250
|
459
|
1,964
|
|||||||||||||||
Charge-offs
|
(1,084
|
) |
(301
|
) |
(1,254
|
) |
(653
|
) |
(3,292
|
) | ||||||||||
Ending balance
|
$ |
12,466
|
$ |
1,247
|
$ |
32,336
|
$ |
5,840
|
$
|
51,889
|
||||||||||
Nine months ended
September 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Beginning balance
|
$ |
10,865
|
$ |
1,305
|
$ |
29,896
|
$ |
6,090
|
$ |
48,156
|
||||||||||
Provision for loan losses
|
(1,316
|
) |
317
|
4,325
|
539
|
3,865
|
||||||||||||||
Recoveries
|
476
|
12
|
345
|
382
|
1,215
|
|||||||||||||||
Charge-offs
|
(1,064
|
) |
—
|
(201
|
) |
(1,100
|
) |
(2,365
|
) | |||||||||||
Ending balance
|
$ |
8,961
|
$ |
1,634
|
$ |
34,365
|
$ |
5,911
|
$
|
50,871
|
||||||||||
September 30, 2019
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
8,802
|
$ |
1,502
|
$ |
15,095
|
$ |
318
|
$ |
25,717
|
||||||||||
Loans collectively evaluated for impairment
|
827,842
|
100,552
|
2,734,457
|
411,748
|
4,074,599
|
|||||||||||||||
Total
|
$
|
836,644
|
$
|
102,054
|
$
|
2,749,552
|
$
|
412,066
|
$
|
4,100,316
|
||||||||||
September 30, 2018
|
Commercial
|
Agricultural
|
Real Estate
|
Consumer
|
Total
|
|||||||||||||||
Loans individually evaluated for impairment
|
$ |
6,961
|
$ |
1,046
|
$ |
16,682
|
$ |
898
|
$ |
25,587
|
||||||||||
Loans collectively evaluated for impairment
|
766,963
|
92,907
|
2,598,247
|
383,336
|
3,841,453
|
|||||||||||||||
Total
|
$
|
773,924
|
$
|
93,953
|
$
|
2,614,929
|
$
|
384,234
|
$
|
3,867,040
|
||||||||||
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 September 30, 2019
|
Nine Months Ended September 30, 2019
|
||||||||||||||||||||||
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
||||||||||||||||||
Commercial
|
$ |
—
|
$ |
—
|
$ |
100
|
$ |
—
|
$ |
279
|
$ |
100
|
||||||||||||
Agricultural
|
—
|
—
|
—
|
—
|
354
|
265
|
||||||||||||||||||
Real Estate
|
—
|
—
|
42
|
—
|
202
|
490
|
||||||||||||||||||
Consumer
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Total
|
$ |
—
|
$ |
—
|
$ |
142
|
$ |
—
|
$ |
835
|
$ |
855
|
||||||||||||
|
Three Months Ended September 30, 2018
|
Nine Months Ended September 30, 2018
|
||||||||||||||||||||||
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
Adjusted
Interest Rate |
Extended
Maturity |
Combined
Rate and
Maturity
|
||||||||||||||||||
Commercial
|
$ |
—
|
$ |
491
|
$ |
56
|
$
|
—
|
$ |
491
|
$ |
335
|
||||||||||||
Agricultural
|
—
|
—
|
—
|
—
|
—
|
4
|
||||||||||||||||||
Real Estate
|
—
|
117
|
—
|
—
|
279
|
363
|
||||||||||||||||||
Consumer
|
—
|
—
|
—
|
—
|
—
|
113
|
||||||||||||||||||
Total
|
$ |
—
|
$ |
608
|
$ |
56
|
$
|
—
|
$ |
770
|
$ |
815
|
||||||||||||
September 30, 2019:
|
Outstanding
Notional
Balance
|
Asset
Derivative
Fair Value
|
Liability
Derivative
Fair
Value
|
|||||||||
IRLCs
|
$ |
82,330
|
$ |
1,320
|
$ |
—
|
||||||
Forward mortgage-backed securities trades
|
126,500
|
41
|
—
|
September 30, 2018:
|
Outstanding
Notional
Balance
|
Asset
Derivative
Fair Value
|
Liability
Derivative
Fair Value
|
|||||||||
IRLCs
|
$ |
48,311
|
$ |
715
|
$ |
—
|
||||||
Forward mortgage-backed securities trades
|
42,500
|
143
|
—
|
|||||||||
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
|
|
September 30,
|
December 31,
|
||||||||||
|
2019
|
2018
|
2018
|
|||||||||
Securities sold under agreements with customers to repurchase
|
$ |
358,155
|
$ |
378,460
|
$ |
409,631
|
||||||
Federal funds purchased
|
7,000
|
2,300
|
4,075
|
|||||||||
Advances from Federal Home Loan Bank of Dallas
|
35,000
|
—
|
55,000
|
|||||||||
Total
|
$
|
400,155
|
$
|
380,760
|
$ |
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.
|
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total Fair
Value
|
||||||||||||
Available-for-sale
investment securities:
|
|
|
|
|
||||||||||||
U.S. Treasury securities
|
$
|
10,021
|
$ |
—
|
$ |
—
|
$ |
10,021
|
||||||||
Obligations of states and political subdivisions
|
—
|
1,242,197
|
—
|
1,242,197
|
||||||||||||
Corporate bonds
|
—
|
229
|
—
|
229
|
||||||||||||
Residential mortgage-backed securities
|
—
|
1,623,380
|
—
|
1,623,380
|
||||||||||||
Commercial mortgage-backed securities
|
—
|
516,828
|
—
|
516,828
|
||||||||||||
Other securities
|
4,501
|
—
|
—
|
4,501
|
||||||||||||
Total
|
$ |
14,522
|
$ |
3,382,634
|
$ |
—
|
$ |
3,397,156
|
||||||||
Loans
held-for-sale
|
$ |
—
|
$ |
39,735
|
$ |
—
|
$ |
39,735
|
||||||||
IRLCs
|
$ |
—
|
$ |
1,320
|
$ |
—
|
$ |
1,320
|
||||||||
Forward mortgage-backed securities trades
|
$ |
—
|
$ |
41
|
$ |
—
|
$ |
41
|
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total Fair
Value
|
||||||||||||
U.S. Treasury securities
|
$ |
9,929
|
$ |
—
|
$ |
—
|
$ |
9,929
|
||||||||
Obligations of U. S. government sponsored enterprises and agencies
|
—
|
302
|
—
|
302
|
||||||||||||
Obligations of states and political subdivisions
|
—
|
1,191,887
|
—
|
1,191,887
|
||||||||||||
Corporate bonds
|
—
|
450
|
—
|
450
|
||||||||||||
Residential mortgage-backed securities
|
—
|
1,494,306
|
—
|
1,494,306
|
||||||||||||
Commercial mortgage-backed securities
|
—
|
443,204
|
—
|
443,204
|
||||||||||||
Other securities
|
4,289
|
—
|
—
|
4,289
|
||||||||||||
Total
|
$
|
14,218
|
$
|
3,130,149
|
$ |
—
|
$
|
3,144,367
|
||||||||
Loans
held-for-sale
|
$ |
—
|
$ |
15,955
|
$ |
—
|
$ |
15,955
|
||||||||
IRLCs
|
$ |
—
|
$ |
715
|
$ |
—
|
$ |
715
|
||||||||
Forward mortgage-backed securities trades
|
$ |
—
|
$ |
143
|
$ |
—
|
$ |
143
|
||||||||
|
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
|
) | ||||||
|
September 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
|
$ |
198,855
|
$ |
198,855
|
$ |
164,998
|
$ |
164,998
|
$ |
207,835
|
$ |
207,835
|
Level 1
|
|||||||||||||||
Interest-bearing deposits in banks
|
31,410
|
31,410
|
34,511
|
34,511
|
40,812
|
40,812
|
Level 1
|
|||||||||||||||||||||
Interest-bearing time deposits in banks
|
—
|
—
|
1,458
|
1,458
|
1,458
|
1,458
|
Level 2
|
|||||||||||||||||||||
Available-for-sale
securities
|
3,397,156
|
3,397,156
|
3,144,367
|
3,144,367
|
3,158,777
|
3,158,777
|
Levels 1 and 2
|
|||||||||||||||||||||
Loans held for investment
|
4,048,427
|
4,068,755
|
3,816,169
|
3,857,059
|
3,902,434
|
3,947,391
|
Level 3
|
|||||||||||||||||||||
Loans held for sale
|
40,499
|
40,542
|
18,496
|
18,517
|
21,672
|
21,779
|
Level 2
|
|||||||||||||||||||||
Accrued interest receivable
|
29,606
|
29,606
|
28,990
|
28,990
|
36,765
|
36,765
|
Level 2
|
|||||||||||||||||||||
Deposits with stated maturities
|
428,192
|
429,522
|
450,667
|
450,409
|
442,161
|
441,727
|
Level 2
|
|||||||||||||||||||||
Deposits with no stated maturities
|
5,969,491
|
5,969,491
|
5,694,615
|
5,694,615
|
5,738,228
|
5,738,228
|
Level 1
|
|||||||||||||||||||||
Borrowings
|
400,155
|
400,155
|
380,760
|
380,760
|
468,706
|
468,706
|
Level 2
|
|||||||||||||||||||||
Accrued interest payable
|
746
|
746
|
303
|
303
|
408
|
408
|
Level 2
|
|||||||||||||||||||||
IRLCs
|
1,320
|
1,320
|
715
|
715
|
765
|
765
|
Level 2
|
|||||||||||||||||||||
Forward mortgage backed securities trades
|
41
|
41
|
143
|
143
|
(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 on our financial positions and results of operations from the change in accounting practices from the implementation of ASU 2016-13, “Financial Instruments – Credit Losses as it relates to our allowance for loan losses; |
• | 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 September 30,
2019 Compared to Three Months Ended
September 30, 2018
|
Nine Months Ended September 30,
2019 Compared to Nine Months Ended
September 30, 2018
|
||||||||||||||||||||||
|
Change Attributable to
|
Total
Change |
|
Change Attributable to
|
Total
Change |
|
||||||||||||||||||
|
Volume
|
|
Rate
|
|
Volume
|
|
Rate
|
|
||||||||||||||||
Short-term investments
|
$ |
(138
|
) | $ |
51
|
$ |
(87
|
) | $ |
(157
|
) | $ |
443
|
$ |
286
|
|||||||||
Taxable investment securities
|
1,560
|
138
|
1,698
|
2,515
|
2,324
|
4,839
|
||||||||||||||||||
Tax-exempt
investment securities (1)
|
(764
|
) |
(620
|
) |
(1,384
|
) |
(2,979
|
) |
(1,072
|
) |
(4,051
|
) | ||||||||||||
Loans (1) (2)
|
3,343
|
2,305
|
5,648
|
9,348
|
9,499
|
18,847
|
||||||||||||||||||
Interest income
|
4,001
|
1,874
|
5,875
|
8,727
|
11,194
|
19,921
|
||||||||||||||||||
Interest-bearing deposits
|
131
|
2,663
|
2,794
|
239
|
8,978
|
9,217
|
||||||||||||||||||
Short-term borrowings
|
(8
|
) |
544
|
536
|
(12
|
) |
1,373
|
1,361
|
||||||||||||||||
Interest expense
|
123
|
3,207
|
3,330
|
227
|
10,351
|
10,578
|
||||||||||||||||||
Net interest income
|
$ |
3,878
|
$ |
(1,333
|
) | $ |
2,545
|
$ |
8,500
|
$ |
843
|
$ |
9,343
|
|||||||||||
(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 September 30,
|
|||||||||||||||||||||||
|
2019
|
2018
|
||||||||||||||||||||||
|
Average
Balance |
|
Income/
Expense |
|
Yield/
Rate |
|
Average
Balance |
|
Income/
Expense |
|
Yield/
Rate |
|
||||||||||||
Assets
|
|
|
|
|
|
|
||||||||||||||||||
Short-term investments (1)
|
$ |
64,471
|
$ |
382
|
2.35
|
% | $ |
91,495
|
$ |
469
|
2.03
|
% | ||||||||||||
Taxable investment securities (2)
|
2,183,930
|
14,292
|
2.62
|
1,943,125
|
12,594
|
2.59
|
||||||||||||||||||
Tax-exempt
investment securities (2)(3)
|
1,132,279
|
10,075
|
3.56
|
1,213,212
|
11,459
|
3.78
|
||||||||||||||||||
Loans (3)(4)
|
4,094,235
|
57,417
|
5.56
|
3,845,836
|
51,769
|
5.34
|
||||||||||||||||||
Total earning assets
|
7,474,915
|
$ |
82,166
|
4.36
|
% |
7,093,668
|
$ |
76,291
|
4.27
|
% | ||||||||||||||
Cash and due from banks
|
165,868
|
|
|
171,498
|
|
|
||||||||||||||||||
Bank premises and equipment, net
|
133,191
|
|
|
130,898
|
|
|
||||||||||||||||||
Other assets
|
68,519
|
|
|
63,094
|
|
|
||||||||||||||||||
Goodwill and other intangible assets, net
|
174,005
|
|
|
175,048
|
|
|
||||||||||||||||||
Allowance for loan losses
|
(52,137
|
) |
|
|
(50,383
|
) |
|
|
||||||||||||||||
Total assets
|
$ |
7,964,361
|
|
|
$ |
7,583,823
|
|
|
||||||||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing deposits
|
$ |
4,156,850
|
$ |
7,123
|
0.68
|
% | $ |
4,035,174
|
$ |
4,329
|
0.43
|
% | ||||||||||||
Short-term borrowings
|
388,235
|
830
|
0.85
|
399,026
|
294
|
0.29
|
||||||||||||||||||
Total interest-bearing liabilities
|
4,545,085
|
$ |
7,953
|
0.69
|
% |
4,434,200
|
$ |
4,623
|
0.41
|
% | ||||||||||||||
Noninterest-bearing deposits
|
2,180,200
|
|
|
2,123,612
|
|
|
||||||||||||||||||
Other liabilities
|
57,262
|
|
|
32,646
|
|
|
||||||||||||||||||
Total liabilities
|
6,782,547
|
|
|
6,590,458
|
|
|
||||||||||||||||||
Shareholders’ equity
|
1,181,814
|
|
|
993,365
|
|
|
||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ |
7,964,361
|
|
|
$ |
7,583,823
|
|
|
||||||||||||||||
Net interest income
|
|
$ |
74,213
|
|
|
$ |
71,668
|
|
||||||||||||||||
Rate Analysis:
|
|
|
|
|
|
|
||||||||||||||||||
Interest income/earning assets
|
|
|
4.36
|
% |
|
|
4.27
|
% | ||||||||||||||||
Interest expense/earning assets
|
|
|
0.42
|
|
|
0.26
|
||||||||||||||||||
Net interest margin
|
|
|
3.94
|
% |
|
|
4.01
|
% | ||||||||||||||||
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
|
2019
|
2018
|
||||||||||||||||||||||
|
Average
Balance |
|
Income/
Expense |
|
Yield/
Rate |
|
Average
Balance |
|
Income/
Expense |
|
Yield/
Rate |
|
||||||||||||
Assets
|
|
|
|
|
|
|
||||||||||||||||||
Short-term investments (1)
|
$ |
93,997
|
$ |
1,667
|
2.37
|
% | $ |
106,294
|
$ |
1,381
|
1.74
|
% | ||||||||||||
Taxable investment securities (2)
|
2,058,380
|
41,505
|
2.69
|
1,926,249
|
36,666
|
2.54
|
||||||||||||||||||
Tax-exempt
investment securities (2)(3)
|
1,175,863
|
31,968
|
3.62
|
1,281,892
|
36,019
|
3.75
|
||||||||||||||||||
Loans (3)(4)
|
4,037,243
|
166,987
|
5.53
|
3,797,602
|
148,140
|
5.22
|
||||||||||||||||||
Total earning assets
|
7,365,483
|
242,127
|
4.40
|
% |
7,112,037
|
$ |
222,206
|
4.18
|
% | |||||||||||||||
Cash and due from banks
|
173,647
|
|
|
177,190
|
|
|
||||||||||||||||||
Bank premises and equipment, net
|
133,886
|
|
|
128,863
|
|
|
||||||||||||||||||
Other assets
|
65,525
|
|
|
61,941
|
|
|
||||||||||||||||||
Goodwill and other intangible assets, net
|
174,264
|
|
|
171,623
|
|
|
||||||||||||||||||
Allowance for loan losses
|
(52,143
|
) |
|
|
(49,992
|
) |
|
|
||||||||||||||||
Total assets
|
$ |
7,860,662
|
|
|
$ |
7,601,662
|
|
|
||||||||||||||||
Liabilities and Shareholders’ Equity
|
|
|
|
|
|
|
||||||||||||||||||
Interest-bearing deposits
|
$ |
4,165,735
|
$ |
21,071
|
0.68
|
% | $ |
4,083,292
|
$ |
11,854
|
0.39
|
% | ||||||||||||
Short-term borrowings
|
391,680
|
2,230
|
0.76
|
397,045
|
869
|
0.29
|
||||||||||||||||||
Total interest-bearing liabilities
|
4,557,415
|
23,301
|
0.68
|
% |
4,480,337
|
$ |
12,723
|
0.38
|
% | |||||||||||||||
Noninterest-bearing deposits
|
2,133,418
|
|
|
2,119,208
|
|
|
||||||||||||||||||
Other liabilities
|
44,994
|
|
|
30,063
|
|
|
||||||||||||||||||
Total liabilities
|
6,735,827
|
|
|
6,629,608
|
|
|
||||||||||||||||||
Shareholders’ equity
|
1,124,835
|
|
|
972,054
|
|
|
||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ |
7,860,662
|
|
|
$ |
7,601,662
|
|
|
||||||||||||||||
Net interest income
|
|
$ |
218,826
|
|
|
$ |
209,483
|
|
||||||||||||||||
Rate Analysis:
|
|
|
|
|
|
|
||||||||||||||||||
Interest income/earning assets
|
|
|
4.40
|
% |
|
|
4.18
|
% | ||||||||||||||||
Interest expense/earning assets
|
|
|
0.43
|
|
|
0.24
|
||||||||||||||||||
Net interest margin
|
|
|
3.97
|
% |
|
|
3.94
|
% | ||||||||||||||||
(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
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||||||||||
|
2019
|
|
Increase
(Decrease) |
|
2018
|
|
2019
|
|
Increase
(Decrease) |
|
2018
|
|
||||||||||||
Trust fees
|
$ |
7,051
|
$ |
(240
|
) | $ |
7,291
|
$ |
21,057
|
$ |
(208
|
) | $ |
21,265
|
||||||||||
Service charges on deposit accounts
|
5,629
|
(61
|
) |
5,690
|
16,179
|
229
|
15,950
|
|||||||||||||||||
ATM, interchange and credit card fees
|
7,728
|
195
|
7,533
|
21,920
|
350
|
21,570
|
||||||||||||||||||
Real estate mortgage operations
|
5,733
|
899
|
4,834
|
13,928
|
2,210
|
11,718
|
||||||||||||||||||
Net gain on sale of
available-for-sale
securities
|
52
|
(6
|
) |
58
|
728
|
(618
|
) |
1,346
|
||||||||||||||||
Net gain (loss) on sale of foreclosed assets
|
71
|
(13
|
) |
84
|
193
|
(8
|
) |
201
|
||||||||||||||||
Net gain (loss) on sale of assets
|
235
|
296
|
(61
|
) |
241
|
393
|
(152
|
) | ||||||||||||||||
Interest on loan recoveries
|
575
|
376
|
199
|
1,815
|
1,208
|
607
|
||||||||||||||||||
Other:
|
|
|
|
|
|
|
||||||||||||||||||
Check printing fees
|
55
|
1
|
54
|
143
|
(7
|
) |
150
|
|||||||||||||||||
Safe deposit rental fees
|
115
|
3
|
112
|
429
|
(7
|
) |
436
|
|||||||||||||||||
Credit life fees
|
184
|
63
|
121
|
798
|
189
|
609
|
||||||||||||||||||
Brokerage commissions
|
406
|
(16
|
) |
422
|
1,169
|
(117
|
) |
1,286
|
||||||||||||||||
Miscellaneous income
|
835
|
117
|
718
|
2,481
|
501
|
1,980
|
||||||||||||||||||
Total other
|
1,595
|
168
|
1,427
|
5,020
|
559
|
4,461
|
||||||||||||||||||
Total Noninterest Income
|
$ |
28,669
|
$ |
1,614
|
$ |
27,055
|
$ |
81,081
|
$ |
4,115
|
$ |
76,966
|
||||||||||||
|
Three Months Ended September
30,
|
Nine Months Ended September
30,
|
||||||||||||||||||||||
|
2019
|
|
Increase
(Decrease) |
|
2018
|
|
2019
|
|
Increase
(Decrease) |
|
2018
|
|
||||||||||||
Salaries
|
$ |
22,197
|
$ |
2,123
|
$ |
20,074
|
$ |
62,440
|
$ |
2,807
|
$ |
59,633
|
||||||||||||
Medical
|
2,101
|
19
|
2,082
|
6,884
|
290
|
6,594
|
||||||||||||||||||
Profit sharing
|
1,520
|
(164
|
) |
1,684
|
4,895
|
(315
|
) |
5,210
|
||||||||||||||||
Pension
|
31
|
(34
|
) |
65
|
73
|
(104
|
) |
177
|
||||||||||||||||
401(k) match expense
|
668
|
20
|
648
|
2,094
|
102
|
1,992
|
||||||||||||||||||
Payroll taxes
|
1,354
|
82
|
1,272
|
4,365
|
161
|
4,204
|
||||||||||||||||||
Stock option and stock grant expense
|
679
|
127
|
552
|
1,717
|
85
|
1,632
|
||||||||||||||||||
Total salaries and employee benefits
|
28,550
|
2,173
|
26,377
|
82,468
|
3,026
|
79,442
|
||||||||||||||||||
Loss from partial settlement of pension plan
|
—
|
—
|
—
|
900
|
900
|
—
|
||||||||||||||||||
Net occupancy expense
|
2,830
|
(70
|
) |
2,900
|
8,372
|
(217
|
) |
8,589
|
||||||||||||||||
Equipment expense
|
2,225
|
(404
|
) |
2,629
|
7,009
|
(539
|
) |
7,548
|
||||||||||||||||
FDIC assessment fees
|
15
|
(555
|
) |
570
|
1,091
|
(677
|
) |
1,768
|
||||||||||||||||
ATM, interchange and credit card expense
|
2,627
|
283
|
2,344
|
7,437
|
745
|
6,692
|
||||||||||||||||||
Professional and service fees
|
1,902
|
(272
|
) |
2,174
|
5,721
|
(892
|
) |
6,613
|
||||||||||||||||
Printing, stationery and supplies
|
480
|
93
|
387
|
1,348
|
(137
|
) |
1,485
|
|||||||||||||||||
Operational and other losses
|
507
|
(474
|
) |
981
|
1,253
|
(599
|
) |
1,852
|
||||||||||||||||
Software amortization and expense
|
1,767
|
374
|
1,393
|
5,147
|
714
|
4,433
|
||||||||||||||||||
Amortization of intangible assets
|
246
|
(33
|
) |
279
|
778
|
(271
|
) |
1,049
|
||||||||||||||||
Other:
|
|
|
|
|
|
|
||||||||||||||||||
Data processing fees
|
406
|
(34
|
) |
440
|
1,174
|
143
|
1,031
|
|||||||||||||||||
Postage
|
407
|
(31
|
) |
438
|
1,248
|
(29
|
) |
1,277
|
||||||||||||||||
Advertising
|
907
|
(36
|
) |
943
|
2,669
|
(13
|
) |
2,682
|
||||||||||||||||
Correspondent bank service charges
|
171
|
(20
|
) |
191
|
518
|
(71
|
) |
589
|
||||||||||||||||
Telephone
|
918
|
40
|
878
|
2,841
|
125
|
2,716
|
||||||||||||||||||
Public relations and business development
|
838
|
72
|
766
|
2,353
|
175
|
2,178
|
||||||||||||||||||
Directors’ fees
|
524
|
100
|
424
|
1,469
|
156
|
1,313
|
||||||||||||||||||
Audit and accounting fees
|
357
|
(56
|
) |
413
|
1,282
|
(46
|
) |
1,328
|
||||||||||||||||
Legal fees
|
356
|
144
|
212
|
938
|
113
|
825
|
||||||||||||||||||
Regulatory exam fees
|
298
|
(23
|
) |
321
|
881
|
(73
|
) |
954
|
||||||||||||||||
Travel
|
364
|
54
|
310
|
1,239
|
164
|
1,075
|
||||||||||||||||||
Courier expense
|
221
|
15
|
206
|
611
|
(20
|
) |
631
|
|||||||||||||||||
Other real estate owned
|
37
|
17
|
20
|
109
|
3
|
106
|
||||||||||||||||||
Other miscellaneous expense
|
1,957
|
47
|
1,910
|
5,727
|
(545
|
) |
6,272
|
|||||||||||||||||
Total other
|
7,761
|
289
|
7,472
|
23,059
|
82
|
22,977
|
||||||||||||||||||
Total Noninterest Expense
|
$ |
48,910
|
$ |
1,404
|
$ |
47,506
|
$ |
144,583
|
$ |
2,135
|
$ |
142,448
|
||||||||||||
|
September 30,
|
December 31,
|
|
|||||||||
|
2019
|
|
2018
|
|
2018
|
|
||||||
Commercial
|
$ |
836,644
|
$ |
773,924
|
$ |
844,953
|
||||||
Agricultural
|
102,054
|
93,953
|
96,677
|
|||||||||
Real estate
|
2,749,552
|
2,614,929
|
2,639,346
|
|||||||||
Consumer
|
412,066
|
384,234
|
372,660
|
|||||||||
Total loans
held-for-investment
|
$ |
4,100,316
|
$ |
3,867,040
|
$ |
3,953,636
|
||||||
|
September 30,
|
December 31,
|
|
|||||||||
|
2019
|
|
2018
|
|
2018
|
|
||||||
Oil and gas related loans
|
$ |
122,908
|
$ |
112,039
|
$ |
113,536
|
||||||
Oil and gas related loans as a % of total loans
|
2.97
|
% |
2.88
|
% |
2.86
|
% | ||||||
Classified oil and gas related loans
|
$ |
7,953
|
$ |
4,861
|
$ |
3,894
|
||||||
Non-accrual
oil and gas related loans
|
$ |
519
|
$ |
1,825
|
$ |
1,048
|
||||||
Net charge-offs for oil and gas related loans
|
$ |
—
|
$ |
—
|
$ |
—
|
||||||
Allowance for oil and gas related loans as a % of oil and gas loans
|
2.87
|
% |
3.28
|
% |
3.23
|
% |
|
September 30,
|
December 31,
|
|
|||||||||
|
2019
|
|
2018
|
|
2018
|
|
||||||
Non-accrual
loans*
|
$ |
25,717
|
$ |
25,587
|
$ |
27,534
|
||||||
Loans still accruing and past due 90 days or more
|
104
|
88
|
1,008
|
|||||||||
Troubled debt restructured loans**
|
27
|
513
|
513
|
|||||||||
Nonperforming Loans
|
25,848
|
26,188
|
29,055
|
|||||||||
Foreclosed assets
|
1,364
|
671
|
577
|
|||||||||
Total nonperforming assets
|
27,212
|
$ |
26,859
|
$ |
29,632
|
|||||||
As a % of loans and foreclosed assets
|
0.66
|
% |
0.69
|
% |
0.75
|
% | ||||||
As a % of total assets
|
0.34
|
% |
0.35
|
% |
0.38
|
% |
* | Includes $342 thousand, $2.95 million and $827 thousand of purchased credit impaired loans as of September 30, 2019 and 2018, and December 31, 2018, respectively. |
** |
Other troubled debt restructured loans of $3.98 million, $4.58 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 September 30, 2019 and 2018, and December 31, 2018, respectively.
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30, |
||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
||||||||
Allowance for loan losses at
period-end
|
$ |
51,889
|
$ |
50,871
|
$ |
51,889
|
$ |
50,871
|
||||||||
Loans held for investment at
period-end
|
$ |
4,100,316
|
$ |
3,867,040
|
$ |
4,100,316
|
$ |
3,867,040
|
||||||||
Average loans for period
|
$ |
4,094,235
|
$ |
3,845,836
|
$ |
4,037,243
|
$ |
3,797,602
|
||||||||
Net charge-offs/average loans (annualized)
|
0.04
|
% |
0.05
|
% |
0.04
|
% |
0.04
|
% | ||||||||
Allowance for loan
losses/period-end
loans
|
1.25
|
% |
1.31
|
% |
1.25
|
% |
1.31
|
% | ||||||||
Allowance for loan
losses/non-accrual
loans, past due 90 days still accruing and restructured loans
|
200.75
|
% |
194.25
|
% |
200.75
|
% |
194.25
|
% |
|
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
|
$ |
10,021
|
2.52
|
% | $ |
—
|
—
|
% | $ |
—
|
—
|
% | $ |
—
|
—
|
% | $ |
10,021
|
2.52
|
% | ||||||||||||||||||||
Obligations of states and political subdivisions
|
194,379
|
4.61
|
520,263
|
4.26
|
525,301
|
3.80
|
2,254
|
5.66
|
1,242,197
|
4.13
|
||||||||||||||||||||||||||||||
Corporate bonds and other securities
|
4,499
|
2.40
|
231
|
2.63
|
—
|
—
|
—
|
—
|
4,730
|
2.41
|
||||||||||||||||||||||||||||||
Mortgage-backed securities
|
47,657
|
1.76
|
1,663,037
|
2.64
|
403,751
|
2.88
|
25,763
|
3.06
|
2,140,208
|
2.67
|
||||||||||||||||||||||||||||||
Total
|
$ |
256,556
|
3.96
|
% | $ |
2,183,531
|
3.03
|
% | $ |
929,052
|
3.39
|
% | $ |
28,017
|
3.27
|
% | $ |
3,397,156
|
3.20
|
% | ||||||||||||||||||||
|
Three Months Ended September 30,
|
|||||||||||||||
|
2019
|
2018
|
||||||||||||||
|
Average
Balance |
|
Average
Rate |
|
Average
Balance |
|
Average
Rate |
|
||||||||
Noninterest-bearing deposits
|
$ |
2,180,200
|
—
|
% | $ |
2,123,612
|
—
|
% | ||||||||
Interest-bearing deposits:
|
|
|
|
|
||||||||||||
Interest-bearing checking
|
2,046,792
|
0.69
|
1,987,884
|
0.54
|
||||||||||||
Savings and money market accounts
|
1,679,684
|
0.58
|
1,582,698
|
0.29
|
||||||||||||
Time deposits under $100,000
|
184,843
|
0.79
|
197,713
|
0.24
|
||||||||||||
Time deposits of $100,000 or more
|
245,531
|
1.15
|
266,879
|
0.52
|
||||||||||||
Total interest-bearing deposits
|
4,156,850
|
0.68
|
% |
4,035,174
|
0.43
|
% | ||||||||||
Total average deposits
|
$ |
6,337,050
|
|
$ |
6,158,786
|
|
||||||||||
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2019
|
2018
|
||||||||||||||
|
Average
Balance |
|
Average
Rate |
|
Average
Balance |
|
Average
Rate |
|
||||||||
Noninterest-bearing deposits
|
$ |
2,133,418
|
—
|
% | $ |
2,119,208
|
—
|
% | ||||||||
Interest-bearing deposits:
|
|
|
|
|
||||||||||||
Interest-bearing checking
|
2,052,943
|
0.73
|
2,058,071
|
0.52
|
||||||||||||
Savings and money market accounts
|
1,677,181
|
0.57
|
1,550,428
|
0.23
|
||||||||||||
Time deposits under $100,000
|
188,210
|
0.68
|
211,418
|
0.21
|
||||||||||||
Time deposits of $100,000 or more
|
247,401
|
1.01
|
263,375
|
0.43
|
||||||||||||
Total interest-bearing deposits
|
4,165,735
|
0.68
|
% |
4,083,292
|
0.39
|
% | ||||||||||
Total average deposits
|
$ |
6,299,153
|
|
$ |
6,202,500
|
|
||||||||||
|
Actual
|
Minimum Capital
Required-Basel III Fully
Phased-In*
|
Required to be
Considered Well- Capitalized |
|||||||||||||||||||||
As of September 30, 2019:
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
||||||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
1,023,229
|
21.14
|
% | $ |
508,149
|
10.50
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
905,495
|
18.75
|
% | $ |
506,957
|
10.50
|
% | $ |
482,816
|
10.00
|
% | ||||||||||||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
970,532
|
20.05
|
% | $ |
411,359
|
8.50
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
852,798
|
17.66
|
% | $ |
410,394
|
8.50
|
% | $ |
386,253
|
8.00
|
% | ||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
970,532
|
20.05
|
% | $ |
338,766
|
7.00
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
852,798
|
17.66
|
% | $ |
337,971
|
7.00
|
% | $ |
313,830
|
6.50
|
% | ||||||||||||
Leverage Ratio:
|
|
|
|
|
|
|
||||||||||||||||||
Consolidated
|
$ |
970,532
|
12.58
|
% | $ |
308,675
|
4.00
|
% |
—
|
N/A
|
||||||||||||||
First Financial Bank, N.A
|
$ |
852,798
|
11.10
|
% | $ |
307,442
|
4.00
|
% | $ |
384,302
|
5.00
|
% |
* |
At September 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 September 30, 2018:
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
||||||||||||||||
Total Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
912,453
|
20.34
|
% | $ |
442,997
|
9.875
|
% | $ |
471,035
|
10.50
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
819,222
|
18.31
|
% | $ |
441,850
|
9.875
|
% | $ |
469,815
|
10.50
|
% | $ |
447,443
|
10.00
|
% | ||||||||||||||||
Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
860,848
|
19.19
|
% | $ |
353,276
|
7.875
|
% | $ |
381,314
|
8.50
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
767,617
|
17.16
|
% | $ |
352,362
|
7.875
|
% | $ |
380,327
|
8.50
|
% | $ |
357,955
|
8.00
|
% | ||||||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
860,848
|
19.19
|
% | $ |
285,985
|
6.375
|
% | $ |
314,023
|
7.00
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
767,617
|
17.16
|
% | $ |
285,245
|
6.375
|
% | $ |
313,210
|
7.00
|
% | $ |
290,838
|
6.50
|
% | ||||||||||||||||
Leverage Ratio:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Consolidated
|
$ |
860,848
|
11.57
|
% | $ |
297,516
|
4.000
|
% | $ |
297,516
|
4.00
|
% |
—
|
N/A
|
||||||||||||||||||
First Financial Bank, N.A
|
$ |
767,617
|
10.36
|
% | $ |
296,444
|
4.000
|
% | $ |
296,444
|
4.00
|
% | $ |
370,554
|
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
|
$ |
695,669
|
||
Unfunded commitments to extend credit
|
377,790
|
|||
Standby letters of credit
|
35,913
|
|||
Total commercial commitments
|
$ |
1,109,372
|
||
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
2.1
|
—
|
|
||||||||
2.2
|
—
|
|
||||||||
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: October 29, 2019
|
By:
|
/s/ F. Scott Dueser
|
||
|
|
F. Scott Dueser
|
||
|
|
President and Chief Executive Officer
|
||
Date: October 29, 2019
|
By:
|
/s/ J. Bruce Hildebrand
|
||
|
|
J. Bruce Hildebrand
|
||
|
|
Executive Vice President and
|
||
|
|
Chief Financial Officer
|
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: October 29, 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: October 29, 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 September 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: October 29, 2019
By: |
/s/ F. SCOTT DUESER |
|
F. Scott Dueser | ||
Chief Executive Officer |
Subscribed and sworn to before me this 29th day of October, 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 September 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: October 29, 2019
By: |
/s/ J. Bruce Hildebrand |
|
J. Bruce Hildebrand | ||
Chief Financial Officer |
Subscribed and sworn to before me this 29th day of October, 2019.
/s/ Melissa Ann Fenton |
Melissa Ann Fenton |
Notary Public |
My commission expires: October 11, 2020