☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Texas
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75-0944023
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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400 Pine Street, Abilene, Texas
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79601
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number,
including area code: |
(325)
627-7155
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Title of each class
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Trading
Symbol(s) |
Name of exchange
on which registered |
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Common Stock, par value $0.01 per share
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FFIN
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The Nasdaq Global Select Market
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
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PART I
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ITEM 1.
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3
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ITEM 1A.
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22
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ITEM 1B.
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36
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ITEM 2.
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36
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ITEM 3.
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36
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ITEM 4.
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36
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PART II
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ITEM 5.
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37
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ITEM 6.
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39
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ITEM 7.
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40
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ITEM 7A.
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59
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ITEM 8.
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60
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ITEM 9.
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62
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ITEM 9A.
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62
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ITEM 9B.
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64
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PART III
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ITEM 10.
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65
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ITEM 11.
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65
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ITEM 12.
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65
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ITEM 13.
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65
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ITEM 14.
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65
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PART IV
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ITEM 15.
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66
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ITEM 16.
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68
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68
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• |
general economic conditions, including our local, state and national real estate markets and employment trends;
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effect of the coronavirus (“COVID”) on our Company, the communities where we have our branches, the state of Texas and the United States, related to the economy and overall financial stability;
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government and regulatory responses to the COVID pandemic;
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effect of severe weather conditions, including hurricanes, tornadoes, flooding and droughts;
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volatility and disruption in national and international financial and commodity markets;
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government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), 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 (“CFPB”), the capital ratios of Basel III as adopted by the federal banking authorities and the Tax Cuts and Jobs Act;
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political and racial instability;
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the ability of the Federal government to address the national economy;
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changes in our competitive environment from other financial institutions and financial service providers;
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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”);
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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 (“PCAOB”), the Financial Accounting Standards Board (“FASB”) and other accounting standard setters;
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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;
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changes in the demand for loans, including loans originated for sale in the secondary market;
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fluctuations in the value of collateral securing our loan portfolio and in the level of the allowance for credit losses;
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the accuracy of our estimates of future credit losses;
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the accuracy of our estimates and assumptions regarding the performance of our securities portfolio;
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soundness of other financial institutions with which we have transactions;
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inflation, interest rate, market and monetary fluctuations;
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changes in consumer spending, borrowing and savings habits;
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changes in commodity prices (e.g., oil and gas, cattle, and wind energy);
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our ability to attract deposits and increase market share;
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changes in our liquidity position;
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changes in the reliability of our vendors, internal control system or information systems;
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cyber attacks on our technology information systems, including fraud from our customers and external third-party vendors;
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our ability to attract and retain qualified employees;
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acquisitions and integration of acquired businesses;
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the possible impairment of goodwill and other intangibles associated with our acquisitions;
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consequences of continued bank mergers and acquisitions in our market area, resulting in fewer but much larger and stronger competitors;
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expansion of operations, including branch openings, new product offerings and expansion into new markets;
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changes in our compensation and benefit plans;
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acts of God or of war or terrorism;
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potential risk of environmental liability associated with lending activities; and
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our success at managing the risk involved in the foregoing items.
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ITEM 1.
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BUSINESS
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• |
First Financial Bank, N.A., Abilene, Texas;
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First Technology Services, Inc., Abilene, Texas, a wholly-owned subsidiary of First Financial Bank, N.A., Abilene, Texas;
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First Financial Trust & Asset Management Company, N.A., Abilene, Texas;
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First Financial Insurance Agency, Inc., Abilene, Texas; and
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First Financial Investments, Inc., Abilene, Texas.
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Bridgeport and Wise County
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16.8 | % | ||
Bryan/College Station and Brazos County
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26.7 | % | ||
Cleburne and Johnson County
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11.9 | % | ||
Conroe and Montgomery County
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36.1 | % | ||
*Source: U. S. Census Bureau
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Fort Worth and Tarrant County
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16.8 | % | ||
Granbury and Hood County
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19.1 | % | ||
Stephenville and Erath County
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17.7 | % | ||
Weatherford, Willow Park, Aledo and Parker County
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23.8 | % |
• |
asset and liability management;
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investments;
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accounting;
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budgeting and forecasting;
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training;
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marketing;
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planning;
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capital expenditures;
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risk management;
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loan review;
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loan analysis;
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human resources;
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insurance;
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capitalization;
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regulatory compliance; and
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internal and external audit.
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Expanded reverse repo operations, adding liquidity to the banking system.
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Restarted quantitative easing.
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Lowered the interest rate on the discount window by 150 basis points to 25 basis points.
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Reduced reserve requirement ratios to zero percent.
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Encouraged banks to use their capital and liquidity buffers to lend.
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Participated in the Main Street Loan Program.
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Introduced and expanded several new programs that will operate on a temporary basis to help preserve market liquidity.
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Established daily, at first, then weekly meetings of our management team to monitor and address COVID developments on our business and the impact to our customers and associates.
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Implemented an internal communications plan to ensure our employees, customers and critical vendors are kept abreast of developments affecting our operations.
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Restricted all
non-essential
travel and large external gatherings and instituted mandatory quarantine period for anyone that has known exposure to COVID.
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We kept our branch locations open following the onset of COVID, except where the employees of the branch had direct COVID exposure. Each branch was deep cleaned daily and following potential exposure at a branch, the facility was sprayed to disinfect for the virus.
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Expanded remote-access availability so that nearly all our workforce has the capability to work from home or other remote locations, if needed. All remotes access was provided in accordance with our compliance and information security policies designed to ensure customer data and other information is properly safeguarded. Much of our remote workforce has returned to the office.
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Instituted mandatory social distancing policies for those employees not working remotely. Members of certain operations teams were split into separate buildings or locations to create redundancy for key functions across the organization.
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The Company provided testing, free of charge, to all employees and we required testing of any employees with direct COVID exposure. Employees exposed were placed on quarantine based on the applicable CDC Guidelines.
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We required employees and customers to wear masks, prior to the state mandates and publicly assisted in communicating that message to the public to increase awareness of the benefits of wearing masks.
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We provided a vitamin and supplement package for employees to help build their immune systems as well as recover from the virus.
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We are encouraging our employees to take the COVID vaccinations when available.
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First Financial Bank, N.A.;
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First Financial Trust & Asset Management Company, N.A.; and
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First Technology Services, Inc. (a wholly-owned subsidiary of First Financial Bank, N.A.)
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requires each national banking association to maintain reserves against deposits;
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restricts the nature and amount of loans that may be made and the interest that may be charged; and
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restricts investments and other activities.
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the loans must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with persons not affiliated with us or our subsidiary bank;
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the subsidiary bank must follow credit underwriting procedures at least as stringent as those applicable to comparable transactions with persons who are not affiliated with us or our subsidiary bank; and
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the loans must not involve a greater than normal risk of
non-payment
or include other features not favorable to our subsidiary bank.
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4.5% CET1 to risk-weighted assets;
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6.0% tier 1 capital to risk-weighted assets;
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8.0% total capital to risk-weighted assets; and
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4.0% tier 1 capital to average consolidated assets (known as the “leverage ratio”).
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to conduct enhanced scrutiny of account relationships to guard against money laundering and report any suspicious transaction;
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to ascertain the identity of the nominal and beneficial owners of, and the source of funds deposited into, each account as needed to guard against money laundering and report any suspicious transactions;
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to ascertain for any foreign bank, the shares of which are not publicly traded, the identity of the owners of the foreign bank, and the nature and extent of the ownership interest of each such owner; and
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to ascertain whether any foreign bank provides correspondent accounts to other foreign banks and, if so, the identity of those foreign banks and related due diligence information.
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the development of internal policies, procedures, and controls;
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the designation of a compliance officer;
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an ongoing employee training program; and
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an independent audit function to test the programs.
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creation of a new Financial Stability Oversight Council to identify systemic risks in the financial system and gives federal regulators new authority to take control of and liquidate financial firms;
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elimination of the federal statutory prohibition against the payment of interest on business checking accounts;
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prohibition on state-chartered banks engaging in derivatives transactions unless the loans to one borrower of the state in which the bank is chartered takes into consideration credit exposure to derivative transactions. For this purpose, derivative transactions include any contract, agreement, swap, warrant, note or option that is based in whole or in part on the value of, any interest in, or any quantitative measure or the occurrence of any event relating to, one or more commodity securities, currencies, interest or other rates, indices or other assets;
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requirement that the amount of any interchange fee charged by a debit card issuer with respect to a debit card transaction must be reasonable and proportional to the cost incurred by the issuer. On June 29, 2011, the Federal Reserve Board set the interchange rate cap at $0.21 per transaction and 5 basis points multiplied by the value of the transaction. The restrictions on interchange fees apply to banks that, together with their affiliates, have assets of $10 billion or more; however, on November 20, 2020, the federal bank regulatory agencies announced an interim final rule that provides temporary relief for certain community banking organizations that have crossed the threshold as of December 31, 2020 if they had less than $10 billion in assets as of December 31, 2019. Under the interim final rule, these banks will generally have until 2022 to either reduce their size to below $10 billion in assets, or to prepare for the regulatory and reporting standards under the Dodd Frank Act; and
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restrictions under the Volcker Rule of the Company’s ability to engage in proprietary trading and to invest in, sponsor and engage in certain types of transactions with certain private funds. The Company initially had until July 15, 2015 to fully conform to the Volcker Rules restrictions. In 2018, banks smaller than $10 billion in assets were provided with an exception to the Volcker Rule. However, the Company is now subject to the Volcker Rule now that it has exceeded $10 billion in assets.
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ITEM 1A.
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RISK FACTORS
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existing clients may withdraw funds from our wealth management business in favor of better performing products;
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asset-based management fees could decline from a decrease in assets under management;
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our ability to attract funds from existing and new clients might diminish; and
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our wealth managers and investment advisors may depart to join a competitor or otherwise.
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actual or anticipated variations in quarterly results of operations;
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recommendations by securities analysts;
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operating and stock price performance of other companies that investors deem comparable to the Company;
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new reports relating to trends, concerns and other issues in the financial services industry or Texas economy, including oil and gas and cattle prices;
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perceptions in the marketplace regarding the Company and/or its competitors;
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new technology used, or services offered, by competitors;
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significant acquisitions or business combinations involving the Company or its competitors; and
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changes in government regulations, including tax laws.
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general economic conditions, including national and local real estate markets and the price of oil and gas, wind farm subsidies from the federal government and other commodity prices;
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the supply of and demand for investable funds;
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demand for loans and access to credit;
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interest rates; and
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federal, state and local laws affecting these matters.
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ITEM 1B.
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UNRESOLVED STAFF COMMENTS
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ITEM 2.
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PROPERTIES
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ITEM 3.
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LEGAL PROCEEDINGS
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ITEM 4.
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MINE SAFETY DISCLOSURES
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ITEM 5.
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MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
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Period Ending
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||||||||||||||||||||||||
Index
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12/31/15
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12/31/16
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12/31/17
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12/31/18
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12/31/19
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12/31/20
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First Financial Bankshares, Inc.
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100.00 | 152.85 | 155.07 | 201.53 | 248.81 | 260.80 | ||||||||||||||||||
Russell 3000 Index
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100.00 | 112.74 | 136.56 | 129.40 | 169.54 | 204.95 | ||||||||||||||||||
SNL Bank
$5B-$10B
Index
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100.00 | 143.27 | 142.73 | 129.17 | 160.06 | 145.37 |
ITEM 6.
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SELECTED FINANCIAL DATA
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Year Ended December 31,
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2020
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2019
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2018
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2017
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2016
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(dollars in thousands, except per share data)
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Summary Income Statement Information:
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Interest income
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$ | 364,128 | $ | 319,192 | $ | 291,690 | $ | 245,975 | $ | 232,288 | ||||||||||
Interest expense
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14,243 | 30,102 | 18,930 | 9,288 | 5,451 | |||||||||||||||
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Net interest income
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349,885 | 289,090 | 272,760 | 236,687 | 226,837 | |||||||||||||||
Provision for credit losses
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19,517 | 2,965 | 5,665 | 6,530 | 10,212 | |||||||||||||||
Noninterest income
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139,935 | 108,428 | 101,764 | 91,017 | 85,132 | |||||||||||||||
Noninterest expense
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227,938 | 196,521 | 190,684 | 173,986 | 165,830 | |||||||||||||||
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Earnings before income taxes
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242,365 | 198,032 | 178,175 | 147,188 | 135,927 | |||||||||||||||
Income tax expense
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40,331 | 33,220 | 27,537 | 26,817 | 31,153 | |||||||||||||||
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Net earnings
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$ | 202,034 | $ | 164,812 | $ | 150,638 | $ | 120,371 | $ | 104,774 | ||||||||||
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Per Share Data:
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Earnings per share, basic
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$ | 1.42 | $ | 1.22 | $ | 1.11 | $ | 0.91 | $ | 0.80 | ||||||||||
Earnings per share, diluted
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1.42 | 1.21 | 1.11 | 0.91 | 0.80 | |||||||||||||||
Cash dividends declared
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0.51 | 0.47 | 0.41 | 0.38 | 0.35 | |||||||||||||||
Book value at
period-end
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11.80 | 9.03 | 7.77 | 6.97 | 6.34 | |||||||||||||||
Earnings performance ratios:
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Return on average assets
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1.98 | % | 2.08 | % | 1.98 | % | 1.72 | % | 1.59 | % | ||||||||||
Return on average equity
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12.93 | 14.37 | 15.37 | 13.63 | 12.36 | |||||||||||||||
Dividend payout ratio
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35.88 | 38.31 | 36.84 | 41.24 | 44.14 | |||||||||||||||
Summary Balance Sheet Data
(Period-end):
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Securities
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$ | 4,393,029 | $ | 3,413,317 | $ | 3,158,777 | $ | 3,087,473 | $ | 2,860,958 | ||||||||||
Loans,
held-for-investment
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5,171,033 | 4,194,969 | 3,953,636 | 3,485,569 | 3,357,307 | |||||||||||||||
Total assets
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10,904,500 | 8,262,227 | 7,731,854 | 7,254,715 | 6,809,931 | |||||||||||||||
Deposits
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8,675,817 | 6,603,806 | 6,180,389 | 5,962,961 | 5,478,539 | |||||||||||||||
Total liabilities
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9,226,310 | 7,035,030 | 6,678,559 | 6,331,947 | 5,972,046 | |||||||||||||||
Total shareholders’ equity
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1,678,190 | 1,227,197 | 1,053,295 | 922,768 | 837,885 | |||||||||||||||
Asset quality ratios:
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Allowance for credit
losses/period-end
loans
held-for-investment
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1.29 | % | 1.25 | % | 1.30 | % | 1.38 | % | 1.36 | % | ||||||||||
Nonperforming
assets/period-end
loans
held-for-investment
plus foreclosed assets
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0.83 | 0.61 | 0.75 | 0.58 | 0.86 | |||||||||||||||
Net charge offs/average loans
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0.06 | 0.04 | 0.07 | 0.12 | 0.19 | |||||||||||||||
Capital ratios:
|
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Average shareholders’ equity/average assets
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15.32 | % | 14.44 | % | 12.89 | % | 12.65 | % | 12.85 | % | ||||||||||
Leverage ratio (1)
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11.86 | 12.60 | 11.85 | 11.09 | 10.71 | |||||||||||||||
Tier 1 risk-based capital (2)
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20.79 | 20.06 | 19.47 | 18.66 | 17.30 | |||||||||||||||
Common equity tier 1 capital (3)
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20.79 | 20.06 | 19.47 | 18.66 | 17.30 | |||||||||||||||
Total risk-based capital (4)
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22.03 | 21.13 | 20.61 | 19.85 | 18.45 |
(1) |
Calculated by dividing at
period-end,
shareholders’ equity (before accumulated other comprehensive earnings/loss) less intangible assets by fourth quarter average assets less intangible assets.
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(2) |
Calculated by dividing at
period-end,
shareholders’ equity (before accumulated other comprehensive earnings/loss) less intangible assets by risk-adjusted assets.
|
(3) |
Calculated by dividing at
period-end,
shareholders’ equity (before accumulated other comprehensive earnings/loss) less intangible assets by risk-adjusted assets.
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(4) |
Calculated by dividing at
period-end,
shareholders’ equity (before accumulated other comprehensive earnings/loss) less intangible assets plus allowance for loan losses to the extent allowed under regulatory guidelines by risk-adjusted assets.
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ITEM 7.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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2020 Compared to 2019
|
2019 Compared to 2018
|
|||||||||||||||||||||||
Change Attributable to
|
Total
Change |
Change Attributable to
|
Total
Change |
|||||||||||||||||||||
Volume
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Rate
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Volume
|
Rate
|
|||||||||||||||||||||
Short-term investments
|
$ | 3,689 | $ | (4,628 | ) | $ | (939 | ) | $ | (106 | ) | $ | 367 | $ | 261 | |||||||||
Taxable investment securities
|
3,812 | (8,026 | ) | (4,214 | ) | 4,045 | 1,573 | 5,618 | ||||||||||||||||
Tax-exempt
investment securities (1)
|
24,671 | (8,932 | ) | 15,739 | (2,634 | ) | (2,203 | ) | (4,837 | ) | ||||||||||||||
Loans (1) (2)
|
59,719 | (20,900 | ) | 38,819 | 12,983 | 11,276 | 24,259 | |||||||||||||||||
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Interest income
|
91,891 | (42,486 | ) | 49,405 | 14,288 | 11,013 | 25,301 | |||||||||||||||||
Interest-bearing deposits
|
6,379 | (20,382 | ) | (14,003 | ) | 654 | 9,523 | 10,177 | ||||||||||||||||
Short-term borrowings
|
1,223 | (3,079 | ) | (1,856 | ) | (99 | ) | 1,095 | 996 | |||||||||||||||
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|||||||||||||
Interest expense
|
7,602 | (23,461 | ) | (15,859 | ) | 555 | 10,618 | 11,173 | ||||||||||||||||
|
|
|
|
|
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|
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|
|||||||||||||
Net interest income
|
$ | 84,289 | $ | (19,025 | ) | $ | 65,264 | $ | 13,733 | $ | 395 | $ | 14,128 | |||||||||||
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(1) |
Computed on a
tax-equivalent
basis assuming a marginal tax rate of 21%.
|
(2) |
Nonaccrual loans are included in loans.
|
2020
|
2019
|
2018
|
||||||||||||||||||||||||||||||||||
Average
Balance |
Income/
Expense |
Yield/
Rate |
Average
Balance |
Income/
Expense |
Yield/
Rate |
Average
Balance |
Income/
Expense |
Yield/
Rate |
||||||||||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||||||||||
Short-term investments (1)
|
$ | 251,086 | $ | 953 | 0.38 | % | $ | 84,430 | $ | 1,892 | 2.24 | % | $ | 90,374 | $ | 1,631 | 1.80 | % | ||||||||||||||||||
Taxable investment securities (2)
|
2,233,634 | 51,456 | 2.30 | 2,090,490 | 55,670 | 2.66 | 1,934,160 | 50,052 | 2.59 | |||||||||||||||||||||||||||
Tax-exempt
investment securities (2)(3)
|
1,882,711 | 58,403 | 3.10 | 1,192,908 | 42,664 | 3.58 | 1,262,947 | 47,501 | 3.76 | |||||||||||||||||||||||||||
Loans (3)(4)
|
5,152,531 | 264,576 | 5.13 | 4,074,667 | 225,757 | 5.54 | 3,828,040 | 201,498 | 5.26 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total earning assets
|
9,519,962 | $ | 375,388 | 3.94 | % | 7,442,495 | $ | 325,983 | 4.38 | % | 7,115,521 | $ | 300,682 | 4.23 | % | |||||||||||||||||||||
Cash and due from banks
|
189,849 | 175,417 | 176,799 | |||||||||||||||||||||||||||||||||
Bank premises and equipment, net
|
139,880 | 133,239 | 129,715 | |||||||||||||||||||||||||||||||||
Other assets
|
92,612 | 66,003 | 62,595 | |||||||||||||||||||||||||||||||||
Goodwill and other intangible assets, net
|
318,818 | 174,138 | 172,425 | |||||||||||||||||||||||||||||||||
Allowance for credit losses
|
(67,606 | ) | (52,170 | ) | (50,323 | ) | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total assets
|
$ | 10,193,515 | $ | 7,939,122 | $ | 7,606,732 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity
|
||||||||||||||||||||||||||||||||||||
Interest-bearing deposits
|
$ | 5,198,554 | $ | 13,119 | 0.25 | % | $ | 4,208,666 | $ | 27,122 | 0.64 | % | $ | 4,052,614 | $ | 16,945 | 0.42 | % | ||||||||||||||||||
Short-term borrowings
|
561,505 | 1,124 | 0.20 | 398,142 | 2,980 | 0.75 | 418,977 | 1,984 | 0.47 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Total interest-bearing liabilities
|
5,760,059 | $ | 14,243 | 0.25 | % | 4,606,808 | $ | 30,102 | 0.65 | % | 4,471,591 | $ | 18,929 | 0.42 | % | |||||||||||||||||||||
Noninterest-bearing deposits
|
2,782,896 | 2,137,089 | 2,124,004 | |||||||||||||||||||||||||||||||||
Other liabilities
|
88,550 | 48,658 | 30,931 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total liabilities
|
8,631,505 | 6,792,555 | 6,626,526 | |||||||||||||||||||||||||||||||||
Shareholders’ equity
|
1,562,010 | 1,146,567 | 980,206 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity
|
$ | 10,193,515 | $ | 7,939,122 | $ | 7,606,732 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net interest income
|
$ | 361,145 | $ | 295,881 | $ | 281,753 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Rate Analysis:
|
||||||||||||||||||||||||||||||||||||
Interest income/earning assets
|
3.94 | % | 4.38 | % | 4.23 | % | ||||||||||||||||||||||||||||||
Interest expense/earning assets
|
0.15 | 0.40 | 0.27 | |||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net interest margin
|
3.79 | % | 3.98 | % | 3.96 | % | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
(1) |
Short-term investments are comprised of federal 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
|
(3) |
Computed on a
tax-equivalent
basis assuming a marginal tax rate of 21%.
|
(4) |
Nonaccrual loans are included in loans.
|
2020
|
Increase
(Decrease) |
2019
|
Increase
(Decrease) |
2018
|
||||||||||||||||
Trust fees
|
$ | 29,531 | $ | 1,130 | $ | 28,401 | $ | 220 | $ | 28,181 | ||||||||||
Service charges on deposit accounts
|
20,572 | (1,467 | ) | 22,039 | 376 | 21,663 | ||||||||||||||
ATM, interchange and credit card fees
|
32,469 | 2,606 | 29,863 | 1,331 | 28,532 | |||||||||||||||
Gain on sale and fees of mortgage loans
|
43,872 | 25,728 | 18,144 | 2,987 | 15,157 | |||||||||||||||
Net gain on sale of
available-for-sale
|
3,633 | 2,900 | 733 | (621 | ) | 1,354 | ||||||||||||||
Net gain (loss) on sale of foreclosed assets
|
159 | (115 | ) | 274 | 158 | 116 | ||||||||||||||
Net gain (loss) on sale of assets
|
112 | (207 | ) | 319 | 466 | (147 | ) | |||||||||||||
Interest on loan recoveries
|
856 | (1,236 | ) | 2,092 | 1,154 | 938 | ||||||||||||||
Other:
|
||||||||||||||||||||
Wire transfer fees
|
1,153 | 141 | 1,012 | 110 | 902 | |||||||||||||||
Check printing fees
|
293 | 82 | 211 | (5 | ) | 216 | ||||||||||||||
Safe deposit rental fees
|
732 | 197 | 535 | (9 | ) | 544 | ||||||||||||||
Credit life and debt protection fees
|
876 | (102 | ) | 978 | 237 | 741 | ||||||||||||||
Brokerage commissions
|
1,310 | (271 | ) | 1,581 | (126 | ) | 1,707 | |||||||||||||
Miscellaneous income
|
4,367 | 2,121 | 2,246 | 386 | 1,860 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other
|
8,731 | 2,168 | 6,563 | 593 | 5,970 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Noninterest Income
|
$ | 139,935 | $ | 31,507 | $ | 108,428 | $ | 6,664 | $ | 101,764 | ||||||||||
|
|
|
|
|
|
|
|
|
|
2020
|
Increase
(Decrease) |
2019
|
Increase
(Decrease) |
2018
|
||||||||||||||||
Salaries
|
$ | 101,360 | $ | 17,079 | $ | 84,281 | $ | 4,807 | $ | 79,474 | ||||||||||
Medical
|
10,406 | 1,281 | 9,125 | 426 | 8,699 | |||||||||||||||
Profit sharing
|
10,740 | 3,079 | 7,661 | 612 | 7,049 | |||||||||||||||
Pension
|
— | (351 | ) | 351 | 529 | (178 | ) | |||||||||||||
401(k) match expense
|
3,374 | 615 | 2,759 | 171 | 2,588 | |||||||||||||||
Payroll taxes
|
6,565 | 890 | 5,675 | 306 | 5,369 | |||||||||||||||
Stock option expense
|
1,377 | (112 | ) | 1,489 | (19 | ) | 1,508 | |||||||||||||
Restricted stock expense
|
1,301 | 306 | 995 | 315 | 680 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total salaries and employee benefits
|
135,123 | 22,787 | 112,336 | 7,147 | 105,189 | |||||||||||||||
Cost related to termination of pension plan
|
— | (2,673 | ) | 2,673 | 1,127 | 1,546 | ||||||||||||||
Net occupancy expense
|
12,388 | 1,232 | 11,156 | (17 | ) | 11,173 | ||||||||||||||
Equipment expense
|
8,396 | (656 | ) | 9,052 | (1,066 | ) | 10,118 | |||||||||||||
FDIC insurance premiums
|
1,758 | 667 | 1,091 | (1,242 | ) | 2,333 | ||||||||||||||
ATM, interchange and credit card expenses
|
11,235 | 1,379 | 9,856 | 574 | 9,282 | |||||||||||||||
Professional and service fees
|
9,346 | 1,493 | 7,853 | (1,041 | ) | 8,894 | ||||||||||||||
Printing, stationery and supplies
|
2,163 | 351 | 1,812 | (185 | ) | 1,997 | ||||||||||||||
Amortization of intangible assets
|
1,990 | 974 | 1,016 | (256 | ) | 1,272 | ||||||||||||||
Other:
|
||||||||||||||||||||
Data processing fees
|
1,619 | 69 | 1,550 | 88 | 1,462 | |||||||||||||||
Postage
|
1,446 | (101 | ) | 1,547 | (202 | ) | 1,749 | |||||||||||||
Advertising
|
1,952 | (1,655 | ) | 3,607 | 4 | 3,603 | ||||||||||||||
Correspondent bank service charges
|
908 | 201 | 707 | (65 | ) | 772 | ||||||||||||||
Telephone
|
3,819 | 141 | 3,678 | 116 | 3,562 | |||||||||||||||
Public relations and business development
|
2,650 | (556 | ) | 3,206 | 145 | 3,061 | ||||||||||||||
Directors’ fees
|
2,363 | 391 | 1,972 | 227 | 1,745 | |||||||||||||||
Audit and accounting fees
|
2,232 | 772 | 1,460 | (165 | ) | 1,625 | ||||||||||||||
Legal fees
|
1,276 | 62 | 1,214 | 66 | 1,148 | |||||||||||||||
Regulatory exam fees
|
1,105 | (74 | ) | 1,179 | (96 | ) | 1,275 | |||||||||||||
Travel
|
967 | (674 | ) | 1,641 | 176 | 1,465 | ||||||||||||||
Courier expense
|
855 | (3 | ) | 858 | 28 | 830 | ||||||||||||||
Operational and other losses
|
2,462 | 583 | 1,879 | (309 | ) | 2,188 | ||||||||||||||
Other real estate
|
83 | (119 | ) | 202 | 73 | 129 | ||||||||||||||
Software amortization and expense
|
8,862 | 1,557 | 7,305 | 1,285 | 6,020 | |||||||||||||||
Other miscellaneous expense
|
12,940 | 5,269 | 7,671 | (575 | ) | 8,246 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total other
|
45,539 | 5,863 | 39,676 | 796 | 38,880 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Noninterest Expense
|
$ | 227,938 | $ | 31,417 | $ | 196,521 | $ | 5,837 | $ | 190,684 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, | ||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||
Commercial:
|
||||||||||||||||||||
C&I
|
$ | 1,131,382 | $ | N/A | $ | N/A | $ | N/A | $ | N/A | ||||||||||
Municipal
|
181,325 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial
|
1,312,707 | 856,326 | 844,953 | 684,099 | 674,410 | |||||||||||||||
Agricultural
|
94,864 | 103,640 | 96,677 | 94,543 | 84,021 | |||||||||||||||
Real Estate:
|
||||||||||||||||||||
Construction & Development
|
553,959 | N/A | N/A | N/A | N/A | |||||||||||||||
Farm
|
152,237 | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Owner
Occupied CRE
|
617,686 | N/A | N/A | N/A | N/A | |||||||||||||||
Owner Occupied CRE
|
746,974 | N/A | N/A | N/A | N/A | |||||||||||||||
Residential
|
1,248,409 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Real Estate
|
3,319,265 | 2,823,372 | 2,639,346 | 2,302,998 | 2,189,844 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Auto
|
353,595 | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Auto
|
90,602 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer
|
444,197 | 411,631 | 372,660 | 403,929 | 409,032 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 5,171,033 | $ | 4,194,969 | $ | 3,953,636 | $ | 3,485,569 | $ | 3,357,307 | ||||||||||
|
|
|
|
|
|
|
|
|
|
One Year
or less |
After One
Year Through Five Years |
After Five
Years |
Total | |||||||||||||
Commercial and agricultural
|
$ | 362,416 | $ | 803,779 | $ | 241,376 | $ | 1,407,571 | ||||||||
Real estate – construction and development
|
255,960 | 91,816 | 206,183 | 553,959 |
Maturities
After One Year |
||||||
Loans with fixed interest rates
|
$ | 892,141 | ||||
Loans with floating or adjustable interest rates
|
451,013 |
December 31,
|
||||||||
2020
|
2019
|
|||||||
Oil and gas related loans, excluding PPP loans
|
$ | 106,237 | $ | 119,789 | ||||
Oil and gas related loans as a % of total loans
held-for-investment,
|
2.27 | % | 2.86 | % | ||||
Classified oil and gas related loans
|
$ | 13,298 | $ | 7,041 | ||||
Nonaccrual oil and gas related loans
|
$ | 4,774 | $ | 481 | ||||
Net charge-offs for oil and gas related loans for year then ended
|
$ | 825 | $ | — |
December 31,
2020
|
||||
Retail loans
|
$ | 216,244 | ||
Restaurant loans
|
48,618 | |||
Hotel loans
|
71,716 | |||
Other hospitality loans
|
21,970 | |||
Travel loans
|
780 | |||
|
|
|||
Total Retail/Restaurant/Hospitality loans, excluding PPP loans
|
$ | 359,328 | ||
|
|
|||
Retail/Restaurant/Hospitality loans as a % of total loans
held-for-investment,
|
7.67 | % | ||
Classified Retail/Restaurant/Hospitality loans
|
$ | 31,192 | ||
Nonaccrual Retail/Restaurant/Hospitality loans
|
5,975 | |||
Net Charge-Offs for Retail/Restaurant/Hospitality loans
|
895 |
At December 31,
|
||||||||||||||||||||
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
Nonaccrual loans
|
$ | 42,619 | $ | 24,582 | $ | 27,534 | $ | 17,670 | $ | 27,371 | ||||||||||
Loans still accruing and past due 90 days or more
|
113 | 153 | 1,008 | 288 | 284 | |||||||||||||||
Troubled debt restructured loans*
|
24 | 26 | 513 | 627 | 701 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Nonperforming loans
|
42,756 | 24,761 | 29,055 | 18,585 | 28,356 | |||||||||||||||
Foreclosed assets
|
142 | 1,009 | 577 | 1,532 | 644 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets
|
$ | 42,898 | $ | 25,770 | $ | 29,632 | $ | 20,117 | $ | 29,000 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
As a % of loans
held-for-investment
|
0.83 | % | 0.61 | % | 0.75 | % | 0.58 | % | 0.86 | % | ||||||||||
As a % of total assets
|
0.39 | 0.31 | 0.38 | 0.28 | 0.43 |
* |
Troubled debt restructured loans of $7.41 million, $4.79 million, $3.84 million, $4.63 million and $6.86 million, respectively, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in nonaccrual loans as of December 31, 2020, 2019, 2018, 2017 and 2016.
|
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
Balance at January 1,
|
$ | 52,499 | $ | 51,202 | $ | 48,156 | $ | 45,779 | $ | 41,877 | ||||||||||
Impact of adopting ASC 326
|
(619 | ) | — | — | — | — | ||||||||||||||
Initial allowance on acquired TB&T PCD loans
|
1,678 | — | — | — | — | |||||||||||||||
Charge-offs:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
C&I
|
2,516 | N/A | N/A | N/A | N/A | |||||||||||||||
Municipal
|
— | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial
|
2,516 | 1,545 | 1,418 | 3,018 | 6,990 | |||||||||||||||
Agricultural
|
372 | 319 | — | 71 | 219 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction & Development
|
— | N/A | N/A | N/A | N/A | |||||||||||||||
Farm
|
— | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Owner
Occupied CRE
|
563 | N/A | N/A | N/A | N/A | |||||||||||||||
Owner Occupied CRE
|
567 | N/A | N/A | N/A | N/A | |||||||||||||||
Residential real estate
|
373 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total real estate
|
1,503 | 1,335 | 1,479 | 1,215 | 682 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Auto
|
548 | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Auto
|
375 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer
|
923 | 927 | 1,550 | 1,517 | 1,925 | |||||||||||||||
Total charge-offs
|
5,314 | 4,126 | 4,447 | 5,821 | 9,816 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Recoveries:
|
||||||||||||||||||||
Commercial:
|
||||||||||||||||||||
C&I
|
1,315 | N/A | N/A | N/A | N/A | |||||||||||||||
Municipal
|
— | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial
|
1,315 | 1,364 | 839 | 942 | 952 | |||||||||||||||
Agricultural
|
31 | 158 | 15 | 33 | 25 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction & Development
|
— | N/A | N/A | N/A | N/A | |||||||||||||||
Farm
|
157 | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Owner
Occupied CRE
|
131 | N/A | N/A | N/A | N/A | |||||||||||||||
Owner Occupied CRE
|
17 | N/A | N/A | N/A | N/A | |||||||||||||||
Residential real estate
|
151 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Real Estate
|
456 | 404 | 462 | 192 | 2,021 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Auto
|
269 | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Auto
|
171 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer
|
440 | 532 | 512 | 501 | 508 | |||||||||||||||
Total recoveries
|
2,242 | 2,458 | 1,828 | 1,668 | 3,506 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net charge-offs
|
3,072 | 1,668 | 2,619 | 4,153 | 6,310 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Provision for credit losses (excluding provision for unfunded commitment)
|
16,048 | 2,965 | 5,665 | 6,530 | 10,212 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance at December 31,
|
$ | 66,534 | $ | 52,499 | $ | 51,202 | $ | 48,156 | $ | 45,779 | ||||||||||
|
|
|
|
|
|
|
|
|
|
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
Loans,
held-for-investment
year-end
|
$ | 5,171,033 | $ | 4,194,969 | $ | 3,953,636 | $ | 3,485,569 | $ | 3,357,307 | ||||||||||
Average loans
|
5,152,531 | 4,074,667 | 3,828,040 | 3,435,447 | 3,333,241 | |||||||||||||||
Net charge-offs/average loans
|
0.06 | % | 0.04 | % | 0.07 | % | 0.12 | % | 0.19 | % | ||||||||||
Allowance for credit
losses/year-end
loans
held-for-
|
1.29 | % | 1.25 | % | 1.30 | % | 1.38 | % | 1.36 | % | ||||||||||
Allowance for credit losses/nonaccrual, past due 90 days still accruing and restructured loans
|
155.61 | 212.02 | 176.22 | 259.11 | 161.44 |
At December 31,
|
||||||||||||||||||||
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
Allocation
Amount |
Allocation
Amount |
Allocation
Amount |
Allocation
Amount |
Allocation
Amount |
||||||||||||||||
Commercial:
|
||||||||||||||||||||
C&I
|
$ | 13,609 | $ | N/A | $ | N/A | $ | N/A | $ | N/A | ||||||||||
Municipal
|
1,552 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial
|
15,161 | 12,122 | 11,948 | 10,865 | 11,707 | |||||||||||||||
Agricultural
|
1,255 | 1,206 | 1,446 | 1,305 | 1,101 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction & Development
|
13,512 | N/A | N/A | N/A | N/A | |||||||||||||||
Farm
|
1,876 | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Owner
Occupied CRE
|
8,391 | N/A | N/A | N/A | N/A | |||||||||||||||
Owner Occupied CRE
|
12,347 | N/A | N/A | N/A | N/A | |||||||||||||||
Residential real estate
|
12,601 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Real Estate
|
48,727 | 33,974 | 32,342 | 29,896 | 26,864 | |||||||||||||||
Consumer:
|
||||||||||||||||||||
Auto
|
1,020 | N/A | N/A | N/A | N/A | |||||||||||||||
Non-Auto
|
371 | N/A | N/A | N/A | N/A | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer
|
1,391 | 5,197 | 5,466 | 6,090 | 6,107 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 66,534 | $ | 52,499 | $ | 51,202 | $ | 48,156 | $ | 45,779 | ||||||||||
|
|
|
|
|
|
|
|
|
|
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||
Commercial:
|
||||||||||||||||||||
C&I
|
21.78 | % | N/A | N/A | N/A | N/A | ||||||||||||||
Municipal
|
3.51 | % | N/A | N/A | N/A | N/A | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial
|
25.29 | % | 20.41 | % | 21.37 | % | 19.63 | % | 20.09 | % | ||||||||||
Agricultural
|
1.83 | % | 2.47 | % | 2.45 | % | 2.71 | % | 2.50 | % | ||||||||||
Real estate:
|
||||||||||||||||||||
Construction & Development
|
10.72 | % | N/A | N/A | N/A | N/A | ||||||||||||||
Farm
|
2.94 | % | N/A | N/A | N/A | N/A | ||||||||||||||
Non-Owner
Occupied CRE
|
10.55 | % | N/A | N/A | N/A | N/A | ||||||||||||||
Owner Occupied CRE
|
14.45 | % | N/A | N/A | N/A | N/A | ||||||||||||||
Residential real estate
|
25.59 | % | N/A | N/A | N/A | N/A | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Real Estate
|
64.25 | % | 67.31 | % | 66.75 | % | 66.07 | % | 65.23 | % | ||||||||||
Consumer:
|
||||||||||||||||||||
Auto
|
6.89 | % | N/A | N/A | N/A | N/A | ||||||||||||||
Non-Auto
|
1.74 | % | N/A | N/A | N/A | N/A | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Consumer
|
8.63 | % | 9.81 | % | 9.43 | % | 11.59 | % | 12.18 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | 100.00 | % | ||||||||||
|
|
|
|
|
|
|
|
|
|
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
|
||||||||||||||||||||||||||||||
Obligations of states and political subdivisions
|
$ | 98,345 | 4.71 | % | $ | 673,036 | 4.01 | % | $ | 1,647,476 | 2.85 | % | $ | 8,019 | 2.39 | % | $ | 2,426,876 | 3.25 | % | ||||||||||||||||||||
Corporate bonds and other securities
|
4,557 | 1.86 | — | — | — | — | — | — | 4,557 | 1.86 | ||||||||||||||||||||||||||||||
Mortgage-backed securities
|
186,698 | 2.02 | 1,514,743 | 2.27 | 260,155 | 1.68 | — | — | 1,961,596 | 2.17 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$ | 289,600 | 2.93 | % | $ | 2,187,779 | 2.81 | % | $ | 1,907,631 | 2.69 | % | $ | 8,019 | 2.39 | % | $ | 4,393,029 | 2.76 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
2019
|
2018
|
||||||||||||||||||||||
Average
Balance |
Average
Rate |
Average
Balance |
Average
Rate |
Average
Balance |
Average
Rate |
|||||||||||||||||||
Noninterest-bearing deposits
|
$ | 2,782,896 | — | % | $ | 2,137,089 | — | % | $ | 2,124,005 | — | % | ||||||||||||
Interest-bearing deposits
|
||||||||||||||||||||||||
Interest-bearing checking
|
2,513,627 | 0.21 | 2,097,109 | 0.68 | 2,025,810 | 0.53 | ||||||||||||||||||
Savings and money market accounts
|
2,214,569 | 0.20 | 1,679,168 | 0.54 | 1,558,889 | 0.28 | ||||||||||||||||||
Time deposits under $100,000
|
195,425 | 0.43 | 186,709 | 0.70 | 204,929 | 0.25 | ||||||||||||||||||
Time deposits of $100,000 or more
|
274,933 | 0.88 | 245,680 | 1.04 | 262,986 | 0.48 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest-bearing deposits
|
5,198,554 | 0.25 | % | 4,208,666 | 0.64 | % | 4,052,614 | 0.42 | % | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total average deposits
|
$ | 7,981,450 | $ | 6,345,755 | $ | 6,176,619 | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total cost of deposits
|
0.16 | % | 0.42 | % | 0.27 | % | ||||||||||||||||||
|
|
|
|
|
|
As of December 31,
2020 |
||||
Three months or less
|
$ | 109,096 | ||
Over three through six months
|
54,915 | |||
Over six through twelve months
|
79,159 | |||
Over twelve months
|
43,142 | |||
|
|
|||
Total time deposits of $100,000 or more
|
$ | 286,312 | ||
|
|
Payment Due by Period
|
||||||||||||||||||||
Total Amounts
|
Less than 1
year |
More than 1
year but less than 3 years |
More than 3
years but less than 5 years |
Over 5
years |
||||||||||||||||
Deposits with stated maturity dates
|
$ | 475,425 | $ | 391,638 | $ | 64,495 | $ | 19,267 | $ | 25 | ||||||||||
Operating leases
|
2,577 | 1,094 | 870 | 535 | 78 | |||||||||||||||
Outsourcing service contracts
|
15,278 | 7,469 | 6,002 | 1,807 | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Contractual Obligations
|
$ | 493,280 | $ | 400,201 | $ | 71,367 | $ | 21,609 | $ | 103 | ||||||||||
|
|
|
|
|
|
|
|
|
|
Total Notional
Amounts Committed |
Less than 1
year |
More than 1
year but less than 3 years |
More than 3
years but less than 5 years |
Over 5
years |
||||||||||||||||
Unfunded lines of credit
|
$ | 871,960 | $ | 608,972 | $ | 152,592 | $ | 20,846 | $ | 89,550 | ||||||||||
Unfunded commitments to extend credit
|
742,538 | 426,108 | 42,010 | 51,757 | 222,663 | |||||||||||||||
Standby letters of credit
|
40,050 | 36,849 | 3,166 | 5 | 30 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total Commercial Commitments
|
$ | 1,654,548 | $ | 1,071,929 | $ | 197,768 | $ | 72,608 | $ | 312,243 | ||||||||||
|
|
|
|
|
|
|
|
|
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
2020
|
||||||||||||||||
4
th
|
3
rd
|
2
nd
|
1
st
|
|||||||||||||
(dollars in thousands, except per share amounts)
|
||||||||||||||||
Summary Income Statement Information:
|
||||||||||||||||
Interest income
|
$ | 92,457 | $ | 91,373 | $ | 92,197 | $ | 88,100 | ||||||||
Interest expense
|
1,920 | 2,163 | 2,962 | 7,198 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income
|
90,537 | 89,210 | 89,235 | 80,902 | ||||||||||||
Provision for credit losses
|
(8,033 | ) | 9,000 | 8,700 | 9,850 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income after provision for credit losses
|
98,570 | 80,210 | 80,535 | 71,052 | ||||||||||||
Noninterest income
|
35,686 | 38,539 | 35,407 | 26,670 | ||||||||||||
Net gain on securities transactions
|
23 | 36 | 1,512 | 2,062 | ||||||||||||
Noninterest expense
|
63,705 | 55,593 | 53,321 | 55,318 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings before income taxes
|
70,574 | 63,192 | 64,133 | 44,466 | ||||||||||||
Income tax expense
|
12,099 | 10,335 | 10,663 | 7,234 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net earnings
|
$ | 58,475 | $ | 52,857 | $ | 53,470 | $ | 37,232 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Per Share Data:
|
||||||||||||||||
Earnings per share, basic
|
$ | 0.41 | $ | 0.37 | $ | 0.38 | $ | 0.26 | ||||||||
Earnings per share, diluted
|
0.41 | 0.37 | 0.38 | 0.26 | ||||||||||||
Cash dividends declared
|
0.13 | 0.13 | 0.13 | 0.12 | ||||||||||||
Book value at
period-end
|
11.80 | 11.40 | 11.14 | 9.03 | ||||||||||||
Common stock sales price:
|
||||||||||||||||
High
|
$ | 36.43 | $ | 32.80 | $ | 33.81 | $ | 35.94 | ||||||||
Low
|
27.49 | 26.71 | 23.44 | 20.70 | ||||||||||||
Close
|
36.17 | 27.91 | 28.89 | 26.84 |
2019
|
||||||||||||||||
4
th
|
3
rd
|
2
nd
|
1
st
|
|||||||||||||
(dollars in thousands, except per share amounts)
|
||||||||||||||||
Summary Income Statement Information:
|
||||||||||||||||
Interest income
|
$ | 82,123 | $ | 80,591 | $ | 79,576 | $ | 76,901 | ||||||||
Interest expense
|
6,801 | 7,953 | 7,961 | 7,387 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income
|
75,322 | 72,638 | 71,615 | 69,514 | ||||||||||||
Provision for loan losses
|
950 | 450 | 600 | 965 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net interest income after provision for loan losses
|
74,372 | 72,188 | 71,015 | 68,549 | ||||||||||||
Noninterest income
|
27,342 | 28,617 | 27,300 | 24,437 | ||||||||||||
Net gain on securities transactions
|
5 | 52 | 676 | — | ||||||||||||
Noninterest expense
|
51,938 | 48,910 | 48,304 | 47,367 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Earnings before income taxes
|
49,781 | 51,947 | 50,687 | 45,619 | ||||||||||||
Income tax expense
|
8,393 | 8,867 | 8,594 | 7,367 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net earnings
|
$ | 41,388 | $ | 43,080 | $ | 42,093 | $ | 38,252 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Per Share Data:
|
||||||||||||||||
Earnings per share, basic
|
$ | 0.30 | $ | 0.32 | $ | 0.31 | $ | 0.28 | ||||||||
Earnings per share, diluted
|
0.30 | 0.32 | 0.31 | 0.28 | ||||||||||||
Cash dividends declared
|
0.12 | 0.12 | 0.12 | 0.11 | ||||||||||||
Book value at
period-end
|
9.03 | 8.87 | 8.58 | 8.16 | ||||||||||||
Common stock sales price:
|
||||||||||||||||
High
|
$ | 36.45 | $ | 33.97 | $ | 31.54 | $ | 32.65 | ||||||||
Low
|
32.01 | 29.50 | 28.00 | 27.13 | ||||||||||||
Close
|
35.10 | 33.33 | 30.79 | 28.89 |
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
Number of Shares
To be Issued Upon Exercise of Outstanding Awards |
Weighted
Average Exercise Price of Outstanding Awards |
Number of Shares
Remaining Available For Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Far Left Column) |
||||||||||
Equity compensation plans approved by security holders
|
1,928,945 | (1) | $ | 20.85 | (2) | 4,177,826 | ||||||
Equity compensation plans not approved by security holders
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total
|
1,928,945 | $ | 20.85 | 4,177,826 | ||||||||
|
|
|
|
|
|
(1) |
Includes 1,833,057 shares related to the Company’s stock option plan and 95,888 shares related to the Company’s restricted stock plan.
|
(2) |
Excludes outstanding restricted stock which are granted for no consideration.
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 15.
|
EXHIBIT AND FINANCIAL STATEMENT SCHEDULES
|
(a) |
The following documents are filed as part of this report:
|
(1) |
Financial Statements:
|
(2) |
Financial Statement Schedules:
|
(3) |
Exhibits:
|
* |
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.
|
ITEM 16.
|
FORM
10-K
SUMMARY
|
FIRST FINANCIAL BANKSHARES, INC. | ||||||
Date: February 22, 2021 | By: |
/s/ F. Scott Dueser
|
||||
F. SCOTT DUESER | ||||||
Chairman of the Board, Director, President and | ||||||
Chief Executive Officer | ||||||
(Principal Executive Officer) |
Name
|
Title
|
Date
|
||
/s/ F. Scott Dueser
F. Scott Dueser
|
Chairman of the Board, Director, President, and Chief Executive Officer (Principal Executive Officer) | February 22, 2021 | ||
/s/ James R. Gordon
James R. Gordon
|
Executive Vice President and Chief Financial Officer, Secretary and Treasurer (Principal Financial Officer and Principal Accounting Officer) | February 22, 2021 | ||
/s/ April K. Anthony
April K. Anthony
|
Director | February 22, 2021 | ||
/s/ Vianei Lopez Braun
Vianei Lopez Braun
|
Director | February 22, 2021 | ||
/s/ Tucker S. Bridwell
Tucker S. Bridwell
|
Director | February 22, 2021 | ||
/s/ David L. Copeland
David L. Copeland
|
Director | February 22, 2021 |
Name
|
Title
|
Date
|
||
/s/ Michael B. Denny
Michael B. Denny
|
Director | February 22, 2021 | ||
/s/ Murray H. Edwards
Murray H. Edwards
|
Director | February 22, 2021 | ||
/s/ I. Tim Lancaster
I. Tim Lancaster
|
Director | February 22, 2021 | ||
/s/ Kade Matthews
Kade Matthews
|
Director | February 22, 2021 | ||
/s/ Robert C. Nickles
Robert C. Nickles
|
Director | February 22, 2021 | ||
/s/ Johnny Trotter
Johnny Trotter
|
Director | February 22, 2021 |
Allowance for Loan Losses
|
||
Description of the Matter
|
As of December 31, 2020, the Company’s loan portfolio totaled $5.2 billion and the related allowance for loan losses (ALL) was $66.5 million. As noted above and in Note 1, as of January 1, 2020, the Company adopted ASU
2016-13,
Financial Instruments – Credit Losses, which introduces a forward-looking expected loss model (the “Current Expected Credit Losses (CECL)” model) to estimate credit losses over the remaining expected life of the Company’s loan portfolio. As discussed in Notes 1 and 3 of the consolidated financial statements, the ALL is an amount which represents management’s best estimate of expected credit losses over the contractual life of the Company’s loan portfolio as of the balance sheet date. The ALL includes credit loss estimates for loans evaluated using common risk characteristics such as financial asset type, collateral type and industry of the borrower. Historical losses are correlated to economic variables that are determined to be the most relevant indicators of expected losses. Those economic variables are forecasted over the reasonable and supportable forecast period to determine the current expected credit losses. Qualitative adjustments are then made to account for factors that management does not believe are captured in the CECL quantitative models. Management applies judgment in estimating the ALL and, in particular, in identifying and quantifying qualitative adjustments included within the ALL.
Auditing management’s estimate of the allowance for loan losses involved a high degree of subjectivity due to the complexity of the models and the qualitative adjustments included in the estimate. Management’s identification and measurement of the qualitative adjustments is highly judgmental and could have a significant impact on the allowance for loan losses.
|
|
How We Addressed the Matter in Our Audit
|
We obtained an understanding of the Company’s process for establishing the allowance for loan losses, including the models used and the qualitative adjustments made to the ALL. We evaluated the design and tested the operating effectiveness of the controls and governance over the model methodology and qualitative adjustment methodology, including the validation and monitoring procedures performed over the models, the identification and the assessment of the need for qualitative adjustments, the reliability and accuracy of data used to estimate the various components of the qualitative adjustments, and management’s review and approval of the qualitative adjustments.
To test the models, with the support of specialists, we evaluated the model methodology and design, including the Company’s selection of economic variables that were deemed to be the most relevant indicators of expected credit losses, as well as performed procedures over the Company’s correlation of those economic variables to historical losses. On a sample basis, we independently tested and agreed the key inputs used in the models to internal and external sources. Additionally, on a sample basis, we performed an independent recalculation of the models’ output. To test the qualitative adjustments, we evaluated the identification and measurement of the adjustments, including the basis for concluding the adjustments were warranted when considering the model methodology and the historical data used in the adjustments. We tested the completeness and accuracy of data used by the Company to estimate the qualitative adjustments by agreeing underlying data to internal sources and recalculated the analyses used by the Company to measure the adjustments. We also reviewed peer-bank allowance coverage ratios and subsequent event information and considered whether it corroborated or contradicted the Company’s overall estimate of the ALL.
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|||
INTEREST INCOME:
|
||||||||||||
Interest and fees on loans
|
$ | 263,320 | $ | 224,556 | $ | 200,347 | ||||||
Interest on investment securities:
|
||||||||||||
Taxable
|
51,456 | 55,670 | 50,052 | |||||||||
Exempt from federal income tax
|
48,399 | 37,075 | 39,661 | |||||||||
Interest on federal funds sold and interest-bearing deposits in banks
|
953 | 1,891 | 1,630 | |||||||||
|
|
|
|
|
|
|||||||
|
364,128 | 319,192 | 291,690 | |||||||||
|
|
|
|
|
|
|||||||
INTEREST EXPENSE:
|
||||||||||||
Interest on deposits
|
13,118 | 27,122 | 16,946 | |||||||||
Other
|
1,125 | 2,980 | 1,984 | |||||||||
|
|
|
|
|
|
|||||||
Total interest expense
|
14,243 | 30,102 | 18,930 | |||||||||
|
|
|
|
|
|
|||||||
|
349,885 | 289,090 | 272,760 | |||||||||
PROVISION FOR CREDIT LOSSES
|
19,517 | 2,965 | 5,665 | |||||||||
|
|
|
|
|
|
|||||||
|
330,368 | 286,125 | 267,095 | |||||||||
|
|
|
|
|
|
|||||||
NONINTEREST INCOME:
|
||||||||||||
Trust fees
|
29,531 | 28,401 | 28,181 | |||||||||
Service charges on deposit accounts
|
20,572 | 22,039 | 21,663 | |||||||||
ATM, interchange and credit card fees
|
32,469 | 29,863 | 28,532 | |||||||||
Gain on sale and fees on mortgage loans
|
43,872 | 18,144 | 15,157 | |||||||||
Net gain on sale of
available-for-sale
|
3,633 | 733 | 1,354 | |||||||||
Net gain (loss) on sale of foreclosed assets
|
159 | 274 | 116 | |||||||||
Net gain (loss) on sale of assets
|
112 | 319 | (147 | ) | ||||||||
Interest on loan recoveries
|
856 | 2,092 | 938 | |||||||||
Other
|
8,731 | 6,563 | 5,970 | |||||||||
|
|
|
|
|
|
|||||||
|
139,935 | 108,428 | 101,764 | |||||||||
|
|
|
|
|
|
|||||||
NONINTEREST EXPENSE:
|
||||||||||||
Salaries and employee benefits
|
135,123 | 112,336 | 105,189 | |||||||||
Cost related to termination of pension plan
|
— | 2,673 | 1,546 | |||||||||
Net occupancy expense
|
12,388 | 11,156 | 11,173 | |||||||||
Equipment expense
|
8,396 | 9,052 | 10,118 | |||||||||
FDIC insurance premiums
|
1,758 | 1,091 | 2,333 | |||||||||
ATM, interchange and credit card expenses
|
11,235 | 9,856 | 9,282 | |||||||||
Professional and service fees
|
9,346 | 7,853 | 8,894 | |||||||||
Printing, stationery and supplies
|
2,163 | 1,812 | 1,997 | |||||||||
Operational and other losses
|
2,462 | 1,879 | 2,188 | |||||||||
Software amortization and expense
|
8,862 | 7,305 | 6,020 | |||||||||
Amortization of intangible assets
|
1,990 | 1,016 | 1,272 | |||||||||
Other
|
34,215 | 30,492 | 30,672 | |||||||||
|
|
|
|
|
|
|||||||
|
227,938 | 196,521 | 190,684 | |||||||||
|
|
|
|
|
|
|||||||
EARNINGS BEFORE INCOME TAXES
|
242,365 | 198,032 | 178,175 | |||||||||
INCOME TAX EXPENSE
|
40,331 | 33,220 | 27,537 | |||||||||
|
|
|
|
|
|
|||||||
NET EARNINGS
|
$ | 202,034 | $ | 164,812 | $ | 150,638 | ||||||
|
|
|
|
|
|
|||||||
NET EARNINGS PER SHARE, BASIC
|
$ | 1.42 | $ | 1.22 | $ | 1.11 | ||||||
|
|
|
|
|
|
|||||||
NET EARNINGS PER SHARE,
DILUTED
|
$ | 1.42 | $ | 1.21 | $ | 1.11 | ||||||
|
|
|
|
|
|
2020 | 2019 | 2018 | ||||||||||
NET EARNINGS
|
$ | 202,034 | $ | 164,812 | $ | 150,638 | ||||||
OTHER ITEMS OF COMPREHENSIVE EARNINGS (LOSS):
|
||||||||||||
Change in unrealized gain (loss) on investment securities
available-for-sale,
|
133,872 | 80,906 | (38,185 | ) | ||||||||
Reclassification adjustment for realized gains on investment securities included in net earnings, before income tax
|
(3,633 | ) | (733 | ) | (1,354 | ) | ||||||
Minimum liability pension adjustment, before income tax
|
— | 1,676 | 1,970 | |||||||||
|
|
|
|
|
|
|||||||
Total other items of comprehensive earnings (losses)
|
130,239 | 81,849 | (37,569 | ) | ||||||||
Income tax benefit (expense) related to:
|
||||||||||||
Investment securities
|
(28,113 | ) | (16,990 | ) | 8,019 | |||||||
Reclassification adjustment for realized gains on investment securities included in net earnings
|
|
|
763
|
|
|
|
154
|
|
|
|
284
|
|
Minimum liability pension adjustment
|
— | (352 | ) | (414 | ) | |||||||
|
|
|
|
|
|
|||||||
Total income tax benefit (expense)
|
(27,350 | ) | (17,188 | ) | 7,889 | |||||||
|
|
|
|
|
|
|||||||
COMPREHENSIVE EARNINGS
|
$ | 304,923 | $ | 229,473 | $ | 120,958 | ||||||
|
|
|
|
|
|
|
|
Common Stock
|
|
|
Capital
Surplus
|
|
|
Retained
Earnings |
|
|
Treasury Stock
|
|
|
Deferred
Compensation |
|
|
Accumulated
Other
Total
Comprehensive Earnings (Losses) |
|
|
Shareholders’
Equity |
|
|||||||||||||||
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amounts
|
|
|||||||||||||||||||||||||
BALANCE, December 31, 2017
|
|
|
66,260,444
|
|
|
$
|
663
|
|
|
$
|
378,062
|
|
|
$
|
517,257
|
|
|
|
(495,964
|
)
|
|
$
|
(7,148
|
)
|
|
$
|
7,148
|
|
|
$
|
26,786
|
|
|
$
|
922,768
|
|
Net earnings
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
150,638 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
150,638 |
|
Stock option exercises
|
|
|
173,822 |
|
|
|
2 |
|
|
|
3,861 |
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
3,863 |
|
Restricted stock grant, net
|
|
|
29,496 |
|
|
|
—
|
|
|
|
1,609 |
|
|
|
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,609 |
|
Cash dividends declared, $0.41
per share
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(55,499 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(55,499 |
)
|
Stock issued in acquisition of
Bancshares, Inc. |
|
|
1,289,371 |
|
|
|
13 |
|
|
|
58,074 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
58,087 |
|
Minimum liability pension adjustment, net of related income taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,556 |
|
|
|
1,556 |
|
Change in unrealized gain (loss) in investment securities
available-for-sale,
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(31,235 |
)
|
|
|
(31,235 |
)
|
Shares purchased in connection with directors’ deferred compensation plan, net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
28,153 |
|
|
|
(359 |
)
|
|
|
359 |
|
|
|
—
|
|
|
|
—
|
|
Stock option expense
|
|
|
—
|
|
|
|
—
|
|
|
|
1,508 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,508 |
|
Reclassification of certain income tax effects related to the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Acts 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
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
21 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(21 |
)
|
|
|
—
|
|
BALANCE, December 31, 2018
|
|
|
67,753,133 |
|
|
$
|
678 |
|
|
$
|
443,114 |
|
|
$
|
606,658 |
|
|
|
(467,811 |
)
|
|
$
|
(7,507 |
)
|
|
$
|
7,507 |
|
|
$
|
2,845 |
|
|
$
|
1,053,295 |
|
Net earnings
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
164,812 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
164,812 |
|
Stock option exercises
|
|
|
241,725 |
|
|
|
2 |
|
|
|
4,291 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,293 |
|
Restricted stock grant, net
|
|
|
56,687 |
|
|
|
—
|
|
|
|
1,782 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,782 |
|
Cash dividends declared, $0.47
per share
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(63,135 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(63,135 |
)
|
Minimum liability pension adjustment, net of related income taxes
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,324 |
|
|
|
1,324 |
|
Change in unrealized gain in investment securities
available-for-sale,
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
63,337 |
|
|
|
63,337 |
|
Shares purchased in connection with directors’ deferred compensation plan, net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,742 |
|
|
|
(715 |
)
|
|
|
715 |
|
|
|
—
|
|
|
|
—
|
|
Stock option expense
|
|
|
—
|
|
|
|
—
|
|
|
|
1,489 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,489 |
|
Two-for-one
|
|
|
67,840,210 |
|
|
|
679 |
|
|
|
—
|
|
|
|
(679 |
)
|
|
|
(464,339 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
BALANCE, December 31, 2019
|
|
|
135,891,755 |
|
|
$
|
1,359 |
|
|
$
|
450,676 |
|
|
$
|
707,656 |
|
|
|
(927,408 |
)
|
|
$
|
(8,222 |
)
|
|
$
|
8,222 |
|
|
$
|
67,506 |
|
|
$
|
1,227,197 |
|
Cumulative effect of adopting ASC 326
on January 1, 2020, net of related income taxes |
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(466 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(466 |
)
|
Total shareholders’ equity at beginning of period, as adjusted
|
|
|
135,891,755 |
|
|
|
1,359 |
|
|
|
450,676 |
|
|
|
707,190 |
|
|
|
(927,408 |
)
|
|
|
(8,222 |
)
|
|
8,222 |
|
|
|
67,506 |
|
|
|
1,226,731 |
|
|
Stock issued in acquisition of TB&T Bancshares, Inc.
|
|
|
6,275,574 |
|
|
|
63 |
|
|
|
220,210 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
220,273 |
|
Net earnings
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
202,034 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
202,034 |
|
Stock option exercises
|
|
|
295,093 |
|
|
|
3 |
|
|
|
4,714 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,717 |
|
Restricted stock grant, net
|
|
|
24,214 |
|
|
|
—
|
|
|
|
672 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
672 |
|
Cash dividends declared, $0.51
per share
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(72,495 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(72,495 |
)
|
Change in unrealized gain in investment securities
available-for-sale,
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
102,889 |
|
|
|
102,889 |
|
Shares purchased in connection with directors’ deferred compensation plan, net
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(11,183 |
)
|
|
|
(904 |
)
|
|
|
904 |
|
|
|
—
|
|
|
|
—
|
|
Stock option expense
|
|
|
—
|
|
|
|
—
|
|
|
|
1,377 |
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1,377 |
|
Shares repurchased and retired under stock repurchase authorization
|
|
|
(324,802 |
)
|
|
|
(3 |
)
|
|
|
(8,005 |
)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(8,008 |
)
|
BALANCE, December 31, 2020
|
|
|
142,161,834 |
|
|
$
|
1,422 |
|
|
$
|
669,644 |
|
|
$
|
836,729 |
|
|
|
(938,591 |
)
|
|
$
|
(9,126 |
)
|
|
$
|
9,126 |
|
|
$
|
170,395 |
|
|
$
|
1,678,190 |
|
2020 | 2019 | 2018 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net earnings
|
$ | 202,034 | $ | 164,812 | $ | 150,638 | ||||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||||||
Depreciation and amortization
|
12,793 | 11,665 | 12,549 | |||||||||
Provision for credit losses
|
19,517 | 2,965 | 5,665 | |||||||||
Securities premium amortization, net
|
41,959 | 25,788 | 27,467 | |||||||||
Discount accretion on purchased loans
|
(3,780 | ) | (1,666 | ) | (2,636 | ) | ||||||
Gain on sale of assets, net
|
(4,001 | ) | (1,477 | ) | (1,216 | ) | ||||||
Deferred federal income tax (expense) benefit
|
(5,249 | ) | (29 | ) | (250 | ) | ||||||
Change in loans
held-for-sale
|
(53,494 | ) | (5,830 | ) | (5,791 | ) | ||||||
Change in other assets
|
(23,233 | ) | 1,851 | (1,697 | ) | |||||||
Change in other liabilities
|
24,122 | 4,374 | 1,621 | |||||||||
|
|
|
|
|
|
|||||||
Total adjustments
|
8,634 | 37,641 | 35,712 | |||||||||
|
|
|
|
|
|
|||||||
Net cash provided by operating activities
|
210,668 | 202,453 | 186,350 | |||||||||
|
|
|
|
|
|
|||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Cash received in acquisition of TB&T Bancshares, Inc., net
|
61,028 | — | — | |||||||||
Cash received in acquisition of Commercial Bancshares, Inc., net
|
— | — | 18,653 | |||||||||
Net decrease in interest-bearing time deposits in banks
|
— | 1,458 | — | |||||||||
Activity in
available-for-sale
|
||||||||||||
Sales
|
263,042 | 67,414 | 220,259 | |||||||||
Maturities
|
6,075,017 | 4,460,703 | 3,439,028 | |||||||||
Purchases
|
(7,117,151 | ) | (4,727,430 | ) | (3,731,821 | ) | ||||||
Net increase in loans
held-for-investment
|
(529,144 | ) | (243,524 | ) | (202,602 | ) | ||||||
Purchases of bank premises and equipment
|
(16,450 | ) | (8,671 | ) | (17,646 | ) | ||||||
Proceeds from sale of bank premises and equipment and other assets
|
1,456 | 2,249 | 844 | |||||||||
|
|
|
|
|
|
|||||||
Net cash used in investing activities
|
(1,262,202 | ) | (447,801 | ) | (273,285 | ) | ||||||
|
|
|
|
|
|
|||||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Net increase (decrease) in noninterest-bearing deposits
|
679,744 | (50,979 | ) | (87,583 | ) | |||||||
Net increase (decrease) in interest-bearing deposits
|
843,142 | 474,396 | (36,891 | ) | ||||||||
Net increase (decrease) in borrowings
|
48,737 | (87,350 | ) | 137,706 | ||||||||
Common stock transactions:
|
||||||||||||
Proceeds from stock option exercises
|
4,717 | 4,294 | 3,864 | |||||||||
Dividends paid
|
(70,318 | ) | (61,056 | ) | (53,861 | ) | ||||||
Repurchase of stock
|
(8,008 | ) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) financing activities
|
1,498,014 | 279,305 | (36,765 | ) | ||||||||
|
|
|
|
|
|
|||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
446,480 | 33,957 | (123,700 | ) | ||||||||
CASH AND CASH EQUIVALENTS, beginning of year
|
282,604 | 248,647 | 372,347 | |||||||||
|
|
|
|
|
|
|||||||
CASH AND CASH EQUIVALENTS, end of year
|
$ | 729,084 | $ | 282,604 | $ | 248,647 | ||||||
|
|
|
|
|
|
For the year ended December 31, 2020:
|
|
Net Earnings
(in thousands) |
|
|
Weighted
Average Shares |
|
|
Per Share
Amount |
|
|||
Net earnings per share, basic
|
$ | 202,034 | 142,032,420 | $ | 1.42 | |||||||
Effect of stock options and stock grants
|
— | 512,571 | — | |||||||||
|
|
|
|
|
|
|||||||
Net earnings per share, diluted
|
$ | 202,034 | 142,544,991 | $ | 1.42 | |||||||
|
|
|
|
|
|
|||||||
For the year ended December 31, 2019:
|
||||||||||||
Net earnings per share, basic
|
$ | 164,812 | 135,647,354 | $ | 1.22 | |||||||
Effect of stock options and stock grants
|
— | 698,665 | (0.01 | ) | ||||||||
|
|
|
|
|
|
|||||||
Net earnings per share, diluted
|
$ | 164,812 | 136,346,019 | $ | 1.21 | |||||||
|
|
|
|
|
|
|||||||
For the year ended December 31, 2018:
|
||||||||||||
Net earnings per share, basic
|
$ | 150,638 | 135,218,734 | $ | 1.11 | |||||||
Effect of stock options and stock grants
|
— | 747,294 | — | |||||||||
|
|
|
|
|
|
|||||||
Net earnings per share, diluted
|
$ | 150,638 | 135,966,028 | $ | 1.11 | |||||||
|
|
|
|
|
|
December 31, 2020 | ||||||||||||||||
Amortized
Cost Basis |
Gross
Unrealized Holding Gains |
Gross
Unrealized Holding Losses |
Estimated
Value |
|||||||||||||
Securities
available-for-sale:
|
||||||||||||||||
Obligations of state and political subdivisions
|
$ | 2,283,616 | $ | 143,339 | $ | (79 | ) | $ | 2,426,876 | |||||||
Residential mortgage-backed securities
|
1,421,922 | 50,473 | (115 | ) | 1,472,280 | |||||||||||
Commercial mortgage-backed securities
|
467,243 | 22,077 | (4 | ) | 489,316 | |||||||||||
Corporate bonds and other
|
4,398 | 159 | — | 4,557 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total securities
available-for-sale
|
$ | 4,177,179 | $ | 216,048 | $ | (198 | ) | $ | 4,393,029 | |||||||
|
|
|
|
|
|
|
|
December 31, 2019 | ||||||||||||||||
Amortized
Cost Basis |
Gross
Unrealized Holding Gains |
Gross
Unrealized Holding Losses |
Estimated
Fair Value |
|||||||||||||
Securities
available-for-sale:
|
||||||||||||||||
U.S. Treasury securities
|
$ | 9,997 | $ | 22 | $ | — | $ | 10,019 | ||||||||
Obligations of state and
|
1,231,619 | 57,764 | (400 | ) | 1,288,983 | |||||||||||
Corporate bonds and other
|
4,643 | 65 | — | 4,708 | ||||||||||||
Residential mortgage-backed securities
|
1,586,872 | 23,139 | (1,148 | ) | 1,608,863 | |||||||||||
Commercial mortgage-backed securities
|
494,674 | 6,356 | (286 | ) | 500,744 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total securities
available-for-sale
|
$ | 3,327,805 | $ | 87,346 | $ | (1,834 | ) | $ | 3,413,317 | |||||||
|
|
|
|
|
|
|
|
Amortized
Cost Basis |
Estimated
Fair Value |
|||||||
Due within one year
|
$ | 285,774 | $ | 289,600 | ||||
Due after one year through five years
|
2,078,388 | 2,187,779 | ||||||
Due after five years through ten years
|
1,805,324 | 1,907,631 | ||||||
Due after ten years
|
7,693 | 8,019 | ||||||
|
|
|
|
|||||
Total
|
$ | 4,177,179 | $ | 4,393,029 | ||||
|
|
|
|
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2020
|
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
||||||||||||||||||
Obligations of state and political subdivisions
|
$ | 25,214 | $ | 79 | $ | — | $ | — | $ | 25,214 | $ | 79 | ||||||||||||
Residential mortgage-backed securities
|
36,017 | 96 | 3,156 | 19 | 39,173 | 115 | ||||||||||||||||||
Commercial mortgage-backed securities
|
16,218 | 4 | — | — | 16,218 | 4 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 77,449 | $ | 179 | $ | 3,156 | $ | 19 | $ | 80,605 | $ | 198 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Less than 12 Months | 12 Months or Longer | Total | ||||||||||||||||||||||
December 31, 2019
|
Fair
|
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
Fair
Value |
Unrealized
Loss |
||||||||||||||||||
Obligations of state and
political subdivisions
|
$ | 65,787 | $ |
400 |
|
$ | 326 | $ | — | $ | 66,113 | $ | 400 | |||||||||||
Residential mortgage-backed securities
|
100,004 | 306 | 103,983 | 842 | 203,987 | 1,148 | ||||||||||||||||||
Commercial mortgage-backed securities
|
74,560 | 178 | 35,178 | 108 | 109,738 | 286 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 240,351 | $ | 884 | $ | 139,487 | $ | 950 | $ | 379,838 | $ | 1,834 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, | ||||||||
2020 | 2019 | |||||||
Commercial:
|
||||||||
C&I
|
$ | 1,131,382 | $ | N/A | ||||
Municipal
|
181,325 | N/A | ||||||
|
|
|
|
|||||
Total Commercial
|
1,312,707 | 856,326 | ||||||
Agricultural
|
94,864 | 103,640 | ||||||
Real Estate:
|
||||||||
Construction & Development
|
553,959 | N/A | ||||||
Farm
|
152,237 | N/A | ||||||
Non-Owner
Occupied
CRE
|
617,686 | N/A | ||||||
Owner Occupied
CRE
|
746,974 | N/A | ||||||
Residential
|
1,248,409 | N/A | ||||||
|
|
|
|
|||||
Total Real Estate
|
3,319,265 | 2,823,372 | ||||||
Consumer:
|
||||||||
Auto
|
353,595 | N/A | ||||||
Non-Auto
|
90,602 | N/A | ||||||
|
|
|
|
|||||
Total Consumer
|
444,197 | 411,631 | ||||||
|
|
|
|
|||||
Total Loans
|
5,171,033 | 4,194,969 | ||||||
|
|
|
|
|||||
Less: Allowance for credit losses
|
(66,534 | ) | (52,499 | ) | ||||
|
|
|
|
|||||
Loans, net
|
$ | 5,104,499 | $ | 4,142,470 |
December 31,
|
||||||||
2020
|
2019
|
|||||||
Nonaccrual loans
|
$ | 42,619 | $ | 24,582 | ||||
Loans still accruing and past due 90 days or more
|
113 | 153 | ||||||
Troubled debt restructured loans*
|
24 | 26 | ||||||
|
|
|
|
|||||
Total
|
$ | 42,756 | $ | 24,761 | ||||
|
|
|
|
*
|
Troubled debt restructured loans of $7,407,000 and $4,791,000, for which interest collection is doubtful, are included in nonaccrual loans as of December 31, 2020 and 2019, respectively.
|
December 31, | ||||||||
2020 | 2019 | |||||||
Commercial:
|
||||||||
C&I
|
$ | 5,015 | $ | N/A | ||||
Municipal
|
— | N/A | ||||||
|
|
|
|
|||||
Total Commercial
|
5,015 | 3,093 | ||||||
Agricultural
|
1,076 | 1,376 | ||||||
Real Estate:
|
||||||||
Construction & Development
|
3,838 | N/A | ||||||
Farm
|
7,299 | N/A | ||||||
Non-Owner
Occupied
CRE
|
5,243 | N/A | ||||||
Owner Occupied
CRE
|
10,797 | N/A | ||||||
Residential
|
8,851 | N/A | ||||||
|
|
|
|
|||||
Total Real Estate
|
36,028 | 19,787 | ||||||
Consumer:
|
||||||||
Auto
|
407 | N/A | ||||||
Non-Auto
|
93 | N/A | ||||||
|
|
|
|
|||||
Total Consumer
|
500 | 326 | ||||||
|
|
|
|
|||||
|
$ | 42,619 | $ | 24,582 | ||||
|
|
|
|
December 31, 2020
|
C&I | Municipal | Agricultural |
Construction &
Development |
Farm | |||||||||||||||
Beginning balance, prior to adoption of ASC 326
|
$ | 11,010 | $ | 1,112 | $ | 1,206 | $ | 6,045 | $ | 663 | ||||||||||
Impact of adopting ASC 326
|
(155 | ) | (16 | ) | (8 | ) | (75 | ) | (8 | ) | ||||||||||
Initial allowance on acquired TB&T PCD loans
|
— | — | — | — | 727 | |||||||||||||||
Provision for loan losses
|
3,955 | 456 | 398 | 7,542 | 337 | |||||||||||||||
Recoveries
|
1,315 | — | 31 | — | 157 | |||||||||||||||
Charge-offs
|
(2,516 | ) | — | (372 | ) | — | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending balance
|
$ | 13,609 | $ | 1,552 | $ | 1,255 | $ | 13,512 | $ | 1,876 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2020 (continued)
|
Non-Owner
Occupied
CRE
|
Owner
Occupied
CRE
|
Residential | Auto |
Non-
Auto |
Total | ||||||||||||||||||
Beginning balance, prior to adoption of ASC 326
|
$ | 7,341 | $ | 9,533 | $ | 10,392 | $ | 3,900 | $ | 1,297 | $ | 52,499 | ||||||||||||
Impact of adopting ASC 326
|
(91 | ) | (118 | ) | (129 | ) | (14 | ) | (5 | ) | (619 | ) | ||||||||||||
Initial allowance on acquired TB&T PCD loans
|
— | 847 | 104 | — | — | 1,678 | ||||||||||||||||||
Provision for loan losses
|
1,573 | 2,635 | 2,456 | (2,587 | ) | (717 | ) | 16,048 | ||||||||||||||||
Recoveries
|
131 | 17 | 151 | 269 | 171 | 2,242 | ||||||||||||||||||
Charge-offs
|
(563 | ) | (567 | ) | (373 | ) | (548 | ) | (375 | ) | (5,314 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Ending balance
|
$ | 8,391 | $ | 12,347 | $ | 12,601 | $ | 1,020 | $ | 371 | $ | 66,534 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
Commercial | Agricultural | Real Estate | Consumer | Total | |||||||||||||||
Beginning balance
|
$ | 11,948 | $ | 1,446 | $ | 32,342 | $ | 5,466 | $ | 51,202 | ||||||||||
Provision for loan losses
|
398 | (79 | ) | 2,520 | 126 | 2,965 | ||||||||||||||
Recoveries
|
1,364 | 158 | 404 | 532 | 2,458 | |||||||||||||||
Charge-offs
|
(1,588 | ) | (319 | ) | (1,292 | ) | (927 | ) | (4,126 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ending balance
|
$ | 12,122 | $ | 1,206 | $ | 33,974 | $ | 5,197 | $ | 52,499 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
Collateral
Dependent Loans Individually Evaluated for Credit Losses Without an Allowance |
Collateral
Dependent Loans Individually Evaluated for Credit Losses With an Allowance |
Non-Collateral
Dependent Loans Individually Evaluated for Credit Losses |
Total Loans
Individually Evaluated for Credit Losses |
Related
Allowance on Collateral Dependent Loans |
Related
Allowance on
Non-
Collateral Dependent Loans |
Total
Allowance for Credit Losses on Loans Individually Evaluated for Credit Losses |
|||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||
C&I
|
$ | 1,544 | $ | 3,471 | $ | 25,629 | $ | 30,644 | $ | 799 | $ | 4,592 | $ | 5,391 | ||||||||||||||
Municipal
|
— | — | 9,439 | 9,439 | — | 1,435 | 1,435 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Commercial
|
1,544 | 3,471 | 35,068 | 40,083 | 799 | 6,027 | 6,826 | |||||||||||||||||||||
Agricultural
|
470 | 606 | 5,572 | 6,648 | 96 | 886 | 982 | |||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||
Construction & Development
|
1,176 | 2,661 | 11,368 | 15,205 | 35 | 617 | 652 | |||||||||||||||||||||
Farm
|
2,614 | 4,685 | 3,349 | 10,648 | 654 | 658 | 1,312 | |||||||||||||||||||||
Non-Owner
Occupied
CRE
|
4,009 | 1,234 | 17,383 | 22,626 | 500 | 1,421 | 1,921 | |||||||||||||||||||||
Owner Occupied
CRE
|
7,279 | 3,518 | 51,933 | 62,730 | 657 | 5,172 | 5,829 | |||||||||||||||||||||
Residential
|
4,347 | 4,504 | 28,196 | 37,047 | 676 | 2,431 | 3,107 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Real Estate
|
19,425 | 16,602 | 112,229 | 148,256 | 2,522 | 10,299 | 12,821 | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Auto
|
— | 407 | 1,523 | 1,930 | 1 | 5 | 6 | |||||||||||||||||||||
Non-Auto
|
— | 94 | 440 | 534 | 1 | 1 | 2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Consumer
|
— | 501 | 1,963 | 2,464 | 2 | 6 | 8 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
$ | 21,439 | $ | 21,180 | $ | 154,832 | $ | 197,451 | $ | 3,419 | $ | 17,218 | $ | 20,637 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
Unpaid
Contractual Principal Balance |
Recorded
Investment With No Allowance |
Recorded
Investment With Allowance |
Total
Recorded Investment |
Related
Allowance |
12 Month
Average Recorded Investment |
||||||||||||||||||
Commercial
|
$ | 4,511 | $ | 630 | $ | 2,463 | $ | 3,093 | $ | 1,042 | $ | 3,488 | ||||||||||||
Agricultural
|
1,603 | 658 | 718 | 1,376 | 235 | 1,644 | ||||||||||||||||||
Real Estate
|
27,366 | 7,081 | 12,706 | 19,787 | 1,950 | 21,726 | ||||||||||||||||||
Consumer
|
469 | — | 326 | 326 | 1 | 449 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 33,949 | $ | 8,369 | $ | 16,213 | $ | 24,582 | $ | 3,228 | $ | 27,307 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
C&I | Municipal | Agricultural |
Construction
& Development |
Farm | ||||||||||||||||||
Loans individually evaluated for credit losses
|
|
$
|
5,391
|
|
|
$
|
1,435
|
|
|
$
|
982
|
|
|
$
|
652
|
|
|
$
|
1,312
|
|
|||
Loans collectively evaluated for credit losses
|
|
|
8,218
|
|
|
|
117
|
|
|
|
273
|
|
|
|
12,860
|
|
|
|
564
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
$
|
13,609
|
|
|
$
|
1,552
|
|
|
$
|
1,255
|
|
|
$
|
13,512
|
|
|
$
|
1,876
|
|
|||
|
|
|
|
|
|
|
|
|
|
December 31, 2020 (continued)
|
Non-Owner
Occupied C
RE
|
Owner
Occupied C
R
E
|
Residential | Auto |
Non-Auto
|
Total | ||||||||||||||||||
Loans individually evaluated for credit losses
|
|
$
|
1,921
|
|
|
$
|
5,829
|
|
|
$
|
3,107
|
|
|
$
|
6
|
|
|
$
|
2
|
|
|
$
|
20,637
|
|
Loans collectively evaluated for credit losses
|
|
|
6,470
|
|
|
|
6,518
|
|
|
|
9,494
|
|
|
|
1,014
|
|
|
|
369
|
|
|
|
45,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
$
|
8,391
|
|
|
$
|
12,347
|
|
|
$
|
12,601
|
|
|
$
|
1,020
|
|
|
$
|
371
|
|
|
$
|
66,534
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
Commercial | Agricultural |
Real
|
Consumer | Total | ||||||||||||||||||
Loans individually evaluated for
impairment
|
|
$
|
1,042
|
|
|
$
|
235
|
|
|
$
|
1,950
|
|
|
$
|
1
|
|
|
$
|
3,228
|
|
|||
Loan collectively evaluated for
impairment
|
|
|
11,080
|
|
|
|
971
|
|
|
|
32,024
|
|
|
|
5,196
|
|
|
|
49,271
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
$
|
12,122
|
|
|
$
|
1,206
|
|
|
$
|
33,974
|
|
|
$
|
5,197
|
|
|
$
|
52,499
|
|
|||
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
C&I | Municipal | Agriculture |
Construction
& Development |
Farm | ||||||||||||||||||
Loans individually evaluated for credit losses
|
|
$
|
30,644
|
|
|
$
|
9,439
|
|
|
$
|
6,648
|
|
|
$
|
15,205
|
|
|
$
|
10,648
|
|
|||
Loans collectively evaluated for credit losses
|
|
|
1,100,738
|
|
|
|
171,886
|
|
|
|
88,216
|
|
|
|
538,754
|
|
|
|
141,589
|
|
|||
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total
|
|
$
|
1,131,382
|
|
|
$
|
181,325
|
|
|
$
|
94,864
|
|
|
$
|
553,959
|
|
|
$
|
152,237
|
|
|||
|
|
|
|
|
|
|
|
|
|
December 31, 2020 (continued)
|
|
Non
-
Owner
Occupied CRE |
|
|
Owner
Occupied CRE |
|
|
Residential
|
|
|
Auto
|
|
|
Non-Auto
|
|
|
Total
|
|
||||||
Loans individually evaluated for credit losses
|
|
$
|
22,626
|
|
|
$
|
62,730
|
|
|
$
|
37,047
|
|
|
$
|
1,930
|
|
|
$
|
534
|
|
|
$
|
197,451
|
|
Loans collectively evaluated for credit losses
|
|
|
595,060
|
|
|
|
684,244
|
|
|
|
1,211,362
|
|
|
|
351,665
|
|
|
|
90,068
|
|
|
|
4,973,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
|
$
|
617,686
|
|
|
$
|
746,974
|
|
|
$
|
1,248,409
|
|
|
$
|
353,595
|
|
|
$
|
90,602
|
|
|
$
|
5,171,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
Commercial | Agricultural | Real Estate | Consumer | Total | |||||||||||||||
Loans individually evaluated for impairment
|
$ | 3,093 | $ | 1,376 | $ | 19,787 | $ | 326 | $ | 24,582 | ||||||||||
Loan collectively evaluated for impairment
|
853,233 | 102,264 | 2,803,585 | 411,305 | 4,170,387 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 856,326 | $ | 103,640 | $ | 2,823,372 | $ | 411,631 | $ | 4,194,969 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31,
|
2020 | 2019 | 2018 | 2017 | 2016 | Prior |
Revolving
Loans Amort Cost Basis |
Total | ||||||||||||||||||||||||
C&I
|
||||||||||||||||||||||||||||||||
Risk rating:
|
||||||||||||||||||||||||||||||||
Pass
|
$ | 874 | $ | 101 | $ | 70 | $ | 28 | $ | 10 | $ | 16 | $ | — | $ | 1,099 | ||||||||||||||||
Special mention
|
9 | 2 | — |
1
|
— | — | — | 12 | ||||||||||||||||||||||||
Substandard
|
12 | 4 | 4 | — | — | — | — | 20 | ||||||||||||||||||||||||
Doubtful
|
— | — | — | — | — | — | — | — | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Total
|
$ | 895 | $ | 107 | $ | 74 | $ | 29 | $ | 10 | $ | 16 | $ | — | $ | 1,131 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
2020 | 2019 | 2018 | 2017 | 2016 | Prior |
Revolving
Loans Amort Cost Basis |
Total | |||||||||||||||||||||||||
Municipal
|
|||||||||||||||||||||||||||||||||
Risk rating:
|
|||||||||||||||||||||||||||||||||
Pass
|
$ | 26 | $ | 19 | $ | 29 | $ | 14 | $ | 13 | $ | 71 | $ | — | $ | 172 | |||||||||||||||||
Special mention
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Substandard
|
2 | — | — | 5 | 1 | 1 | — | 9 | |||||||||||||||||||||||||
Doubtful
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$ | 28 | $ | 19 | $ | 29 | $ | 19 | $ | 14 | $ | 72 | $ | — | $ | 181 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31,
|
2020 | 2019 | 2018 | 2017 | 2016 | Prior |
Revolving
Loans Amort Cost |
Total | |||||||||||||||||||||||||
Agricultural
|
|||||||||||||||||||||||||||||||||
Risk rating:
|
|||||||||||||||||||||||||||||||||
Pass
|
$ | 57 | $ | 19 | $ | 9 | $ | 3 | $ | 1 | $ | — | $ | — | $ | 89 | |||||||||||||||||
Special mention
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Substandard
|
6
|
— | — | — | — | — | — |
6
|
|||||||||||||||||||||||||
Doubtful
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$ | 63 | $ | 19 | $ | 9 | $ | 3 | $ | 1 | $ | — | $ | — | $ | 95 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31,
|
2020 | 2019 | 2018 | 2017 | 2016 | Prior |
Revolving
Loans Amort Cost Basis |
Total | |||||||||||||||||||||||||
Construction & Development
|
|||||||||||||||||||||||||||||||||
Risk rating:
|
|||||||||||||||||||||||||||||||||
Pass
|
$ | 371 | $ | 97 | $ | 36 | $ | 19 | $ | 7 | $ | 9 | $ | — | $ | 539 | |||||||||||||||||
Special mention
|
2 | 4 | — | — | — | — | — | 6 | |||||||||||||||||||||||||
Substandard
|
4 | 1 | — | 3 | — | 1 | — | 9 | |||||||||||||||||||||||||
Doubtful
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$ | 377 | $ | 102 | $ | 36 | $ | 22 | $ | 7 | $ | 10 | $ | — | $ | 554 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31,
|
2020 | 2019 | 2018 | 2017 | 2016 | Prior |
Revolving
Loans Amort Cost Basis |
Total | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Farm
|
|||||||||||||||||||||||||||||||||
Risk rating:
|
|||||||||||||||||||||||||||||||||
Pass
|
$ | 57 | $ | 22 | $ | 18 | $ | 11 | $ | 11 | $ | 23 | $ | — | $ | 142 | |||||||||||||||||
Special mention
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
Substandard
|
7 | 1 | — | 1 | — | 1 | — | 10 | |||||||||||||||||||||||||
Doubtful
|
— | — | — | — | — | — | — | — | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$ | 64 | $ | 23 | $ | 18 | $ | 12 | $ | 11 | $ | 24 | $ | — | $ | 152 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans Amort Cost Basis |
|
|
Total
|
|
||||||||
Non-Owner
Occupied CRE
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Pass
|
|
$
|
197
|
|
|
$
|
117
|
|
|
$
|
93
|
|
|
$
|
44
|
|
|
$
|
55
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
594
|
|
Special mention
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
8
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
Substandard
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
11
|
|
|
|
—
|
|
|
|
13
|
|
Doubtful
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
198
|
|
|
$
|
119
|
|
|
$
|
94
|
|
|
$
|
52
|
|
|
$
|
56
|
|
|
$
|
99
|
|
|
$
|
—
|
|
|
$
|
618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans Amort Cost Basis |
|
|
Total
|
|
||||||||
Owner Occupied CRE
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Pass
|
|
$
|
176
|
|
|
$
|
132
|
|
|
$
|
105
|
|
|
$
|
75
|
|
|
$
|
65
|
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
685
|
|
Special mention
|
|
|
5
|
|
|
|
5
|
|
|
|
2
|
|
|
|
4
|
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
18
|
|
Substandard
|
|
|
5
|
|
|
|
4
|
|
|
|
20
|
|
|
|
4
|
|
|
|
1
|
|
|
|
10
|
|
|
|
—
|
|
|
|
44
|
|
Doubtful
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
186
|
|
|
$
|
141
|
|
|
$
|
127
|
|
|
$
|
83
|
|
|
$
|
67
|
|
|
$
|
143
|
|
|
$
|
—
|
|
|
$
|
747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans Amort Cost Basis |
|
|
Total
|
|
||||||||
Residential
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Pass
|
|
$
|
373
|
|
|
$
|
172
|
|
|
$
|
134
|
|
|
$
|
101
|
|
|
$
|
101
|
|
|
$
|
237
|
|
|
$
|
93
|
|
|
$
|
1,211
|
|
Special mention
|
|
|
3
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
1
|
|
|
|
3
|
|
|
|
—
|
|
|
|
10
|
|
Substandard
|
|
|
5
|
|
|
|
3
|
|
|
|
3
|
|
|
|
3
|
|
|
|
1
|
|
|
|
10
|
|
|
|
2
|
|
|
|
27
|
|
Doubtful
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
381
|
|
|
$
|
176
|
|
|
$
|
138
|
|
|
$
|
105
|
|
|
$
|
103
|
|
|
$
|
250
|
|
|
$
|
95
|
|
|
$
|
1,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans Amort Cost Basis |
|
|
Total
|
|
||||||||
Auto
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Pass
|
|
$
|
177
|
|
|
$
|
104
|
|
|
$
|
39
|
|
|
$
|
21
|
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
352
|
|
Special mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Substandard
|
|
|
1
|
|
|
|
1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2
|
|
Doubtful
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
178
|
|
|
$
|
105
|
|
|
$
|
39
|
|
|
$
|
21
|
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans Amort Cost Basis |
|
|
Total
|
|
||||||||
Non-Auto
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Pass
|
|
$
|
48
|
|
|
$
|
21
|
|
|
$
|
7
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
2
|
|
|
$
|
7
|
|
|
$
|
90
|
|
Special mention
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Substandard
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
Doubtful
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
48
|
|
|
$
|
21
|
|
|
$
|
7
|
|
|
$
|
4
|
|
|
$
|
1
|
|
|
$
|
3
|
|
|
$
|
7
|
|
|
$
|
91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|
2017
|
|
|
2016
|
|
|
Prior
|
|
|
Revolving
Loans Amort Cost Basis |
|
|
Total
|
|
||||||||
Total Loans
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Risk rating:
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Pass
|
|
$
|
2,356
|
|
|
$
|
804
|
|
|
$
|
540
|
|
|
$
|
320
|
|
|
$
|
273
|
|
|
$
|
580
|
|
|
$
|
100
|
|
|
$
|
4,973
|
|
Special mention
|
|
|
20
|
|
|
|
12
|
|
|
|
4
|
|
|
|
14
|
|
|
|
3
|
|
|
|
4
|
|
|
|
—
|
|
|
|
57
|
|
Substandard
|
|
|
42
|
|
|
|
16
|
|
|
|
27
|
|
|
|
16
|
|
|
|
3
|
|
|
|
35
|
|
|
|
2
|
|
|
|
141
|
|
Doubtful
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,417
|
|
|
$
|
834
|
|
|
$
|
571
|
|
|
$
|
349
|
|
|
$
|
280
|
|
|
$
|
619
|
|
|
$
|
102
|
|
|
$
|
5,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
Pass
|
|
|
Special
Mention |
|
|
Substandard
|
|
|
Doubtful
|
|
|
Total
|
|
|||||
Commercial
|
|
$
|
825
|
|
|
$
|
21
|
|
|
$
|
10
|
|
|
$
|
—
|
|
|
$
|
856
|
|
Agricultural
|
|
|
102
|
|
|
|
—
|
|
|
|
2
|
|
|
|
—
|
|
|
|
104
|
|
Real Estate
|
|
|
2,717
|
|
|
|
42
|
|
|
|
64
|
|
|
|
—
|
|
|
|
2,823
|
|
Consumer
|
|
|
411
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
|
|
412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,055
|
|
|
$
|
63
|
|
|
$
|
77
|
|
|
$
|
—
|
|
|
$
|
4,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
15-59
Days
Past
Due* |
60-89
Days
Past
|
Greater
Than Days |
Total
Due |
Current
|
Total Loans
|
90 Days
Past Due Still Accruing |
|||||||||||||||||||||
Commercial:
|
||||||||||||||||||||||||||||
C&I
|
$ | 3,647 | $ | 406 | $ | 576 | $ | 4,629 | $ | 1,126,753 | $ | 1,131,382 | $ | 21 | ||||||||||||||
Municipal
|
— | — | — | — | 181,325 | 181,325 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Commercial
|
3,647 | 406 | 576 | 4,629 | 1,308,078 | 1,312,707 | 21 | |||||||||||||||||||||
Agricultural
|
193 | 95 | — | 288 | 94,576 | 94,864 | — | |||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||
Construction & Development
|
4,775 | 44 | — | 4,819 | 549,140 | 553,959 | — | |||||||||||||||||||||
Farm
|
708 | — | — | 708 | 151,529 | 152,237 | — | |||||||||||||||||||||
Non-Owner
Occupied
CRE
|
613 | — | — | 613 | 617,073 | 617,686 | — | |||||||||||||||||||||
Owner Occupied
CRE
|
1,393 | 322 | 133 | 1,848 | 745,126 | 746,974 | — | |||||||||||||||||||||
Residential
|
8,072 | 18 | 275 | 8,365 | 1,240,044 | 1,248,409 | 33 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Real Estate
|
15,561 | 384 | 408 | 16,353 | 3,302,912 | 3,319,265 | 33 | |||||||||||||||||||||
Consumer:
|
||||||||||||||||||||||||||||
Auto
|
551 | 158 | 75 | 784 | 352,811 | 353,595 | 59 | |||||||||||||||||||||
Non-Auto
|
214 | 24 | — | 238 | 90,364 | 90,602 | — | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total Consumer
|
765 | 182 | 75 | 1,022 | 443,175 | 444,197 | 59 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
$ | 20,166 | $ | 1,067 | $ | 1,059 | $ | 22,292 | $ | 5,148,741 | $ | 5,171,033 | $ | 113 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
15-59
Days
Past
|
60-89
Days
Past
Due |
Greater
Than 90 Days |
Total
Past Due |
Current
|
Total
Loans |
Total 90
Days
e
Still
Accruing |
|||||||||||||||||||||
Commercial
|
$ | 3,257 | $ | 557 | $ | 722 | $ | 4,536 | $ | 851,790 | $ | 856,326 | $ | 112 | ||||||||||||||
Agricultural
|
183 | 44 | 400 | 627 | 103,013 | 103,640 | — | |||||||||||||||||||||
Real Estate
|
12,890 | 288 | 195 | 13,373 | 2,809,999 | 2,823,372 | — | |||||||||||||||||||||
Consumer
|
572 | 151 | 45 | 768 | 410,863 | 411,631 | 41 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
$ | 16,902 | $ | 1,040 | $ | 1,362 | $ | 19,304 | $ | 4,175,665 | $ | 4,194,969 | $ | 153 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
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.
|
Year Ended December 31, 2020
|
||||||||||||
Pre-Modification
|
Post-
Modification |
|||||||||||
Recorded
|
Recorded
|
|||||||||||
Number
|
Investment
|
Investment
|
||||||||||
Commercial:
|
||||||||||||
C&I
|
11 | $ | 1,151 | $ | 1,151 | |||||||
Municipal
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total Commercial
|
11 | 1,151 | 1,151 | |||||||||
Agricultural
|
1 | 134 | 134 | |||||||||
Real Estate:
|
||||||||||||
Construction & Development
|
1 | 81 | 81 | |||||||||
Farm
|
— | — | — | |||||||||
Non-Owner
Occupied
CRE
|
— | — | — | |||||||||
Owner Occupied
CRE
|
3 | 3,508 | 3,508 | |||||||||
Residential
|
2 | 152 | 152 | |||||||||
|
|
|
|
|
|
|||||||
Total Real Estate
|
6 | 3,741 | 3,741 | |||||||||
Consumer:
|
||||||||||||
Auto
|
— | — | — | |||||||||
Non-Auto
|
1 | 14 | 14 | |||||||||
|
|
|
|
|
|
|||||||
Total Consumer
|
1 | 14 | 14 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
19 | $ | 5,040 | $ | 5,040 | |||||||
|
|
|
|
|
|
Year Ended December 31, 2019
|
||||||||||||
Number
|
Pre-Modification
Recorded Investment |
Post-
Modification Recorded Investment |
||||||||||
Commercial
|
7 | $ | 551 | $ | 551 | |||||||
Agricultural
|
11 | 812 | 812 | |||||||||
Real Estate
|
7 | 1,397 | 1,397 | |||||||||
Consumer
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total
|
25 | $ | 2,760 | $ | 2,760 | |||||||
|
|
|
|
|
|
Year Ended December 31, 2020
|
||||||||||||
Adjusted
|
Combined
|
|||||||||||
Interest
|
Extended
|
Rate and
|
||||||||||
Rate
|
Maturity
|
Maturity
|
||||||||||
Commercial:
|
||||||||||||
C&I
|
$ | — | $ | 918 | $ | 233 | ||||||
Municipal
|
— | — | — | |||||||||
|
|
|
|
|
|
|||||||
Total Commercial
|
— | 918 | 233 | |||||||||
Agricultural
|
— | 134 | — | |||||||||
Real Estate:
|
||||||||||||
Construction & Development
|
— | — | 81 | |||||||||
Farm
|
— | — | — | |||||||||
Non-Owner
Occupied
CRE
|
— | — | — | |||||||||
Owner
Occupied
CRE
|
— | 1,546 | 1,962 | |||||||||
Residential
|
— | — | 152 | |||||||||
|
|
|
|
|
|
|||||||
Total Real Estate
|
— | 1,546 | 2,195 | |||||||||
Consumer:
|
||||||||||||
Auto
|
— | — | — | |||||||||
Non-Auto
|
— | 14 | — | |||||||||
|
|
|
|
|
|
|||||||
Total Consumer
|
— | 14 | — | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | — | $ | 2,612 | $ | 2,428 | ||||||
|
|
|
|
|
|
Year Ended December 31, 2019
|
||||||||
Number
|
Balance
|
|||||||
Commercial
|
— | $ | — | |||||
Agriculture
|
7 | 267 | ||||||
Real Estate
|
— | — | ||||||
Consumer
|
— | — | ||||||
|
|
|
|
|||||
Total
|
7 | $ | 267 | |||||
|
|
|
|
Beginning
Balance
|
Additional
Loans
|
Payments
|
Ending
Balance
|
|||||||||||||
Year ended December 31, 2020
|
$ | 85,364 | $ | 107,837 | $ | 102,237 | $ | 90,964 |
December 31, 2020:
|
Outstanding
Notional
Balance
|
Asset
Derivative
Fair Value
|
Liability
Derivative
Fair Value
|
|||||||||
IRLCs
|
$ | 202,906 | $ | 4,618 | $ | — | ||||||
Forward mortgage-backed securities trades
|
198,000 | — | 1,560 |
December 31, 2019:
|
Outstanding
Notional
Balance
|
Asset
Derivative
Fair
Value |
Liability
Derivative
Fair
Value |
|||||||||
IRLCs
|
$ | 47,415 | $ | 886 | $ | — | ||||||
Forward mortgage-backed securities trades
|
78,500 | — | 152 |
Useful Life
|
|
December 31,
|
||||||||||
|
2020
|
2019
|
||||||||||
Land
|
|
–
|
|
$ | 34,266 | $ | 30,800 | |||||
Buildings
|
|
20 to 40 years
|
|
148,630 | 138,110 | |||||||
Furniture and equipment
|
|
3 to 10 years
|
|
57,283 | 60,200 | |||||||
Leasehold improvements
|
|
Lesser of lease
or 5 to 15 years |
|
3,016 | 3,364 | |||||||
|
|
|
|
|
|
|||||||
|
|
243,195 | 232,474 | |||||||||
Less
:
accumulated depreciation and amortization
|
|
(100,926 | ) | (101,452 | ) | |||||||
|
|
|
|
|
|
|||||||
Total Bank Premises and Equipment
|
|
$ | 142,269 | $ | 131,022 | |||||||
|
|
|
|
|
|
Year ending December 31,
|
||||
2021
|
$ | 391,638 | ||
2022
|
46,762 | |||
2023
|
17,733 | |||
2024
|
9,838 | |||
2025
|
9,429 | |||
Thereafter
|
25 | |||
|
|
|||
$ | 475,425 | |||
|
|
December 31,
|
||||||||
2020
|
2019
|
|||||||
Securities sold under agreements
with customers to repurchase.
|
$ | 412,743 | $ | 375,106 | ||||
Federal funds purchased
|
17,350 | 6,250 | ||||||
Advances from Federal Home
Loan Bank of Dallas
|
— | — | ||||||
|
|
|
|
|||||
Total
|
$ | 430,093 | $ | 381,356 |
Year Ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Current federal income tax
|
$ | 45,133 | $ | 33,099 | $ | 28,359 | ||||||
Current state income tax
|
447 | 150 | 92 | |||||||||
Deferred federal income tax expense (benefit)
|
(5,249 | ) | (29 | ) | (250 | ) | ||||||
Restatement of net deferred tax liability due to change in income tax rate
|
— | — | (664 | ) | ||||||||
|
|
|
|
|
|
|||||||
Income tax expense
|
$ | 40,331 | $ | 33,220 | $ | 27,537 | ||||||
|
|
|
|
|
|
As a Percent of Pretax Earnings
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Statutory federal income tax rate
|
21.0 | % | 21.0 | % | 21.0 | % | ||||||
|
|
|
|
|
|
|||||||
Restatement of net deferred tax liability due to change in income tax rate
|
— | — | (0.4 | ) | ||||||||
Reductions in tax rate resulting from interest income exempt from federal income tax
|
(4.6 | ) | (4.5 | ) | (5.2 | ) | ||||||
Effect of state income tax
|
0.2 | 0.1 | 0.1 | |||||||||
ESOP tax deduction
|
(0.1 | ) | (0.1 | ) | (0.1 | ) | ||||||
Other
|
0.1 | 0.3 | 0.1 | |||||||||
|
|
|
|
|
|
|||||||
Effective income tax rate
|
16.6 | % | 16.8 | % | 15.5 | % | ||||||
|
|
|
|
|
|
2020
|
2019
|
|||||||
Deferred tax assets:
|
||||||||
Tax basis of loans in excess of financial statement basis
|
$ | 19,193 | $ | 12,245 | ||||
Recognized for financial reporting purposes but not yet for tax purposes: Deferred compensation
|
2,479 | 2,254 | ||||||
Write-downs and adjustments to other real estate owned and repossessed assets
|
— | 48 | ||||||
Other deferred tax assets
|
746 | 157 | ||||||
|
|
|
|
|||||
Total deferred tax assets
|
$ | 22,418 | $ | 14,704 | ||||
|
|
|
|
|||||
Deferred tax liabilities:
|
||||||||
Financial statement basis of fixed assets in excess of tax basis
|
$ | 5,712 | $ | 4,651 | ||||
Intangible asset amortization deductible for tax purposes, but not for financial reporting purposes
|
13,400 | 11,935 | ||||||
Recognized for financial reporting purposes but not yet for tax purposes:
|
||||||||
Accretion on investment securities
|
698 | 755 | ||||||
Net unrealized gain on investment securities
available-for-sale
|
45,295 | 17,945 | ||||||
Other deferred tax liabilities
|
46 | 51 | ||||||
|
|
|
|
|||||
Total deferred tax liabilities
|
$ | 65,151 | $ | 35,337 | ||||
|
|
|
|
|||||
Net deferred tax asset (liability)
|
$ | (42,733 | ) | $ | (20,633 | ) | ||
|
|
|
|
|
•
|
|
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.
|
December 31, 2020
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total Fair
Value
|
||||||||||||
Available-for-sale
|
||||||||||||||||
Obligations of state and political subdivisions
|
$ | — | $ | 2,426,876 | $ | — | $ | 2,426,876 | ||||||||
Residential mortgage-backed securities
|
— | 1,472,280 | — | 1,472,280 | ||||||||||||
Commercial mortgage-backed securities
|
— | 489,316 | — | 489,316 | ||||||||||||
Other securities
|
4,557 | — | — | 4,557 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 4,557 | $ | 4,388,472 | $ | — | $ | 4,393,029 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loans
held-for-sale
|
$ | — | $ | 79,585 | $ | — | $ | 79,585 | ||||||||
IRLCs
|
$ | — | $ | 4,618 | $ | — | $ | 4,618 | ||||||||
Forward mortgage-backed securities traded
|
$ | — | $ |
(1,560
|
)
|
$ | — | $ | (1,560 | ) |
December 31, 2019
|
Level 1
Inputs
|
Level 2
Inputs
|
Level 3
Inputs
|
Total Fair
Value
|
||||||||||||
Available-for-sale
|
||||||||||||||||
U.S Treasury securities
|
$ | 10,019 | $ | — | $ | — | $ | 10,019 | ||||||||
Obligations of state and political subdivisions
|
— | 1,288,983 | — | 1,288,983 | ||||||||||||
Corporate bonds
|
— | 230 | — | 230 | ||||||||||||
Residential mortgage-backed securities
|
— | 1,608,863 | — | 1,608,863 | ||||||||||||
Commercial mortgage-backed securities
|
— | 500,744 | — | 500,744 | ||||||||||||
Other securities
|
4,478 | — | — | 4,478 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 14,497 | $ | 3,398,820 | $ | — | $ | 3,413,317 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loans
held-for-sale
|
$ | — | $ | 23,076 | $ | — | $ | 23,076 | ||||||||
IRLCs
|
$ | — | $ | 886 | $ | — | $ | 886 | ||||||||
Forward mortgage-backed securities traded
|
$ | — | $ |
(152
|
)
|
$ | — | $ | (152 | ) |
December 31,
|
||||||||
2020
|
2019
|
|||||||
Unpaid principal balance on loans
held-for-sale
|
$ | 76,602 | $ | 22,340 | ||||
Net unrealized gains on loans
held-for-sale
|
2,983 | 736 | ||||||
|
|
|
|
|||||
Loans
held-for-sale
|
$ | 79,585 | $ | 23,076 | ||||
|
|
|
|
Years ended December 31,
|
||||||||||||
2020
|
2019
|
2018
|
||||||||||
Realized gain on sale and fees on mortgage loans*
|
$ | 39,378 | $ | 17,748 | $ | 14,595 | ||||||
Change in fair value on loans
held-for-sale
|
5,900 | 145 | 919 | |||||||||
Change in forward mortgage-backed securities trades
|
(1,406 | ) | 251 | (357 | ) | |||||||
|
|
|
|
|
|
|||||||
Total gain on sale of mortgage loans
|
$ | 43,872 | $ | 18,144 | $ | 15,157 | ||||||
|
|
|
|
|
|
2020
|
2019
|
|
|
|||||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
Fair Value
|
|
|||||||||||||||
Value
|
Fair Value
|
Value
|
Fair Value
|
Hierarchy
|
|
|||||||||||||||
Cash and due from banks
|
$ | 211,113 | $ | 211,113 | $ | 231,534 | $ | 231,534 |
|
Level 1 |
|
|||||||||
Federal funds sold
|
— | — | 3,150 | 3,150 |
|
Level 1 |
|
|||||||||||||
Interest-bearing demand deposits in banks
|
517,971 | 517,971 | 47,920 | 47,920 |
|
Level 1 |
|
|||||||||||||
Available-for-sale
|
4,393,029 | 4,393,029 | 3,413,317 | 3,413,317 |
|
Levels
1 and 2 |
|
|||||||||||||
Loans
held-for-investment,
|
5,104,499 | 5,109,885 | 4,142,470 | 4,157,327 |
|
Level 3 |
|
|||||||||||||
Loans
held-for-sale
|
83,969 | 84,233 | 28,228 | 28,343 |
|
Level 2 |
|
|||||||||||||
Accrued interest receivable
|
53,433 | 53,433 | 36,894 | 36,894 |
|
Level 2 |
|
|||||||||||||
Deposits with stated maturities
|
475,542 | 477,218 | 420,013 | 421,397 |
|
Level 2 |
|
|||||||||||||
Deposits with no stated maturities
|
8,200,275 | 8,200,275 | 6,183,793 | 6,183,793 |
|
Level 1 |
|
|||||||||||||
Borrowings
|
430,093 | 430,093 | 381,356 | 381,356 |
|
Level 2 |
|
|||||||||||||
Accrued interest payable
|
377 | 377 | 628 | 628 |
|
Level 2 |
|
|||||||||||||
IRLCs
|
4,618 | 4,618 | 886 | 886 |
|
Level 2 |
|
|||||||||||||
Forward mortgage-backed securities trades
|
(1,560 | ) | (1,560 | ) | (152 | ) | (152 | ) |
|
Level
2
|
|
Actual
|
Minimum Capital
Required-Basel III Fully
Phased-In*
|
Required to be
Considered Well- Capitalized |
||||||||||||||||||||||
As of December 31, 2020:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital to Risk-Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$ | 1,273,749 | 22.03 | % | $ | 607,038 | 10.50 | % | $ | 578,131 | 10.00 | % | ||||||||||||
First Financial Bank, N.A
|
$ | 1,123,275 | 19.47 | % | $ | 605,830 | 10.50 | % | $ | 576,981 | 10.00 | % | ||||||||||||
Tier 1 Capital to Risk-Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$ | 1,201,729 | 20.79 | % | $ | 491,412 | 8.50 | % | $ | 346,879 | 6.00 | % | ||||||||||||
First Financial Bank, N.A
|
$ | 1,051,255 | 18.22 | % | $ | 490,434 | 8.50 | % | $ | 461,585 | 8.00 | % | ||||||||||||
Common Equity Tier 1 Capital
|
||||||||||||||||||||||||
Consolidated
|
$ | 1,201,729 | 20.79 | % | $ | 404,692 | 7.00 | % | — | N/A | ||||||||||||||
First Financial Bank, N.A
|
$ | 1,051,255 | 18.22 | % | $ | 403,887 | 7.00 | % | $ | 375,038 | 6.50 | % | ||||||||||||
Leverage Ratio:
|
||||||||||||||||||||||||
Consolidated
|
$ | 1,201,729 | 11.86 | % | $ | 405,268 | 4.00 | % | — | N/A | ||||||||||||||
First Financial Bank, N.A
|
$ | 1,051,255 | 10.41 | % | $ | 404,002 | 4.00 | % | $ | 505,002 | 5.00 | % |
*At
|
December 31, 2020 the Capital Conservative Buffer Basel III has been fully
phased-in.
|
Actual
|
Minimum Capital
Required-Basel III Fully
Phased-In*
|
Required to be
Considered Well- Capitalized |
||||||||||||||||||||||
As of December 31, 2019:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total Capital to Risk-Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$ | 1,051,029 | 21.13 | % | $ | 522,275 | 10.50 | % | $ | 497,405 | 10.00 | % | ||||||||||||
First Financial Bank, N.A
|
$ | 908,778 | 18.31 | % | $ | 521,081 | 10.50 | % | $ | 496,268 | 10.00 | % | ||||||||||||
Tier 1 Capital to Risk-Weighted Assets:
|
||||||||||||||||||||||||
Consolidated
|
$ | 997,721 | 20.06 | % | $ | 422,794 | 8.50 | % | $ | 298,443 | 6.00 | % | ||||||||||||
First Financial Bank, N.A
|
$ | 855,470 | 17.24 | % | $ | 421,828 | 8.50 | % | $ | 397,014 | 8.00 | % | ||||||||||||
Common Equity Tier 1 Capital
|
||||||||||||||||||||||||
Consolidated
|
$ | 997,721 | 20.06 | % | $ | 348,184 | 7.00 | % | — | N/A | ||||||||||||||
First Financial Bank, N.A
|
$ | 855,470 | 17.24 | % | $ | 347,388 | 7.00 | % | $ | 322,574 | 6.50 | % | ||||||||||||
Leverage Ratio:
|
||||||||||||||||||||||||
Consolidated
|
$ | 997,721 | 12.60 | % | $ | 316,850 | 4.00 | % | — | N/A | ||||||||||||||
First Financial Bank, N.A
|
$ | 855,470 | 10.84 | % | $ | 315,570 | 4.00 | % | $ | 394,463 | 5.00 | % |
Shares
|
Weighted-
Average Ex. Price |
|
Weighted-
Average Remaining Contractual Term (Years) |
Aggregate
Intrinsic Value ($000) |
||||||||||||
Outstanding, beginning of year
|
2,138,196 | $ | 20.12 | |||||||||||||
Granted
|
11,250 | 34.55 | ||||||||||||||
Exercised
|
(294,645 | ) | 15.96 | |||||||||||||
Cancelled
|
(21,744 | ) | 22.04 | |||||||||||||
|
|
|
|
|||||||||||||
Outstanding, end of year
|
1,833,057 | 20.85 | 5.81 | $ | 28,098 | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Exercisable at end of year
|
892,957 | $ | 17.20 | 4.46 | $ | 16,936 | ||||||||||
|
|
|
|
|
|
|
|
Exercise
Price |
|
|
Number
Outstanding |
|
|
Remaining
Contracted Life (Years) |
|
|
Number Vested
|
|
||||
$ | 7.87 | 42,020 | 0.8 | 42,020 | ||||||||||
$ | 15.43 | 258,507 | 2.8 | 258,507 | ||||||||||
$ | 16.95 | 477,294 | 4.8 | 355,654 | ||||||||||
$ | 21.18 | 656,736 | 6.4 | 236,776 | ||||||||||
$ | 29.70 | 388,050 | 8.5 | — | ||||||||||
$ | 34.55 | 11,250 | 9.1 | — |
|
|
For the year ended
|
|
|
For the year ended
|
|
|
For the year ended
|
|
|||||||||||||||
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|||||||||||||||
|
|
Restricted
Stock Outstanding |
|
|
Weighted
Average Grant Date Fair Value |
|
|
Restricted
Stock Outstanding |
|
|
Weighted
Average Grant Date Fair Value |
|
|
Restricted
Stock Outstanding |
|
|
Weighted
Average Grant Date Fair Value |
|
||||||
Balance at beginning of period
|
105,309 |
$
|
29.93 | 97,192 |
$
|
25.45 | 94,679 |
$
|
20.12 | |||||||||||||||
Grants
|
56,480 | 29.22 | 67,331 | 31.80 | 73,470 | 26.95 | ||||||||||||||||||
Vesting
|
(65,662 | ) | 29.39 | (57,406 | ) | 31.49 | (65,411 | ) | 25.79 | |||||||||||||||
Forfeited/expired
|
(239 | ) | 29.70 | (1,808 | ) | 27.67 | (5,546 | ) | 22.85 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at end of period
|
95,888 |
$
|
29.89 | 105,309 |
$
|
29.93 | 97,192 |
$
|
25.45 |
ASSETS
|
|
2020
|
|
|
2019
|
|
||
Cash in subsidiary bank
(1)
|
$ | 67,904 | $ | 44,422 | ||||
Cash in unaffiliated banks
(1)
|
2 | 2 | ||||||
Interest-bearing deposits in subsidiary bank
(1)
|
68,760 | 80,652 | ||||||
|
|
|
|
|||||
Total cash and cash equivalents
|
136,666 | 125,076 | ||||||
Securities
available-for-sale,
|
2,610 | 6,297 | ||||||
Investment in and advances to subsidiaries, at equity
(1)
|
1,558,851 | 1,111,955 | ||||||
Intangible assets
|
723 | 723 | ||||||
Other assets
|
2,982 | 2,701 | ||||||
|
|
|
|
|||||
Total assets
|
$ | 1,701,832 | $ | 1,246,752 | ||||
|
|
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
||||||
Total liabilities
|
$ | 23,642 | $ | 19,555 | ||||
Shareholders’ equity:
|
||||||||
Common stock
|
1,422 | 1,359 | ||||||
Capital surplus
|
669,644 | 450,676 | ||||||
Retained earnings
|
836,729 | 707,656 | ||||||
Treasury stock
|
(9,126 | ) | (8,222 | ) | ||||
Deferred compensation
|
9,126 | 8,222 | ||||||
Accumulated other comprehensive earnings
|
170,395 | 67,506 | ||||||
|
|
|
|
|||||
Total shareholders’ equity
|
1,678,190 | 1,227,197 | ||||||
|
|
|
|
|||||
Total liabilities and shareholders’ equity
|
$ | 1,701,832 | $ | 1,246,752 | ||||
|
|
|
|
(1)
|
Eliminates in consolidation.
|
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|||
Income:
|
|
|
|
|||||||||
Cash dividends from subsidiaries (1)
|
|
$
|
87,500
|
|
|
$
|
84,500
|
|
|
$
|
74,100
|
|
Excess of earnings over dividends of subsidiaries (1)
|
|
|
122,997
|
|
|
|
86,956
|
|
|
|
82,323
|
|
Other
|
|
|
8,368
|
|
|
|
7,937
|
|
|
|
7,269
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total income
|
|
|
218,865
|
|
|
|
179,393
|
|
|
|
163,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|||||||||
Salaries and employee benefits
|
|
|
13,795
|
|
|
|
11,963
|
|
|
|
9,966
|
|
Other operating expenses
|
|
|
5,599
|
|
|
|
4,756
|
|
|
|
4,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total expense
|
|
|
19,394
|
|
|
|
16,719
|
|
|
|
14,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before income taxes
|
|
|
199,471
|
|
|
|
162,674
|
|
|
|
148,945
|
|
Income tax benefit
|
|
|
2,563
|
|
|
|
2,138
|
|
|
|
1,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
202,034
|
|
|
$
|
164,812
|
|
|
$
|
150,638
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Eliminates in consolidation.
|
2020 | 2019 | 2018 | ||||||||||
Cash flows from operating activities:
|
||||||||||||
Net earnings
|
$ | 202,034 | $ | 164,812 | $ | 150,638 | ||||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||||||
Excess of earnings over dividends of subsidiary bank
|
(122,997 | ) | (86,956 | ) | (82,323 | ) | ||||||
Depreciation and amortization, net
|
198 | 246 | 331 | |||||||||
Gain on sale of assets, net
|
(38 | ) | — | — | ||||||||
Decrease (increase) in other assets
|
164 | 1,508 | 560 | |||||||||
Increase (decrease) in other liabilities
|
2,083 | 990 | 1,932 | |||||||||
Other
|
35 | — | (2 | ) | ||||||||
|
|
|
|
|
|
|||||||
|
81,479 | 80,600 | 71,136 | |||||||||
|
|
|
|
|
|
|||||||
Cash flows from investing activities:
|
||||||||||||
Maturity of
available-for-sale
|
3,720 | — | 2,000 | |||||||||
Purchases of bank premises and equipment and software
|
— | (24 | ) | (346 | ) | |||||||
|
|
|
|
|
|
|||||||
Net cash provided by (used in) investing activities
|
3,720 | (24 | ) | 1,654 | ||||||||
|
|
|
|
|
|
|||||||
Cash flows from financing activities:
|
||||||||||||
Proceeds of stock issuances
|
4,717 | 4,294 | 3,864 | |||||||||
Cash dividends paid
|
(70,318 | ) | (61,056 | ) | (53,861 | ) | ||||||
Repurchase of stock
|
(8,008 | ) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Net cash used in financing activities
|
(73,609 | ) | (56,762 | ) | (49,997 | ) | ||||||
|
|
|
|
|
|
|||||||
Net increase in cash and cash equivalents
|
11,590 | 23,814 | 22,793 | |||||||||
Cash and cash equivalents, beginning of year
|
125,076 | 101,262 | 78,469 | |||||||||
|
|
|
|
|
|
|||||||
Cash and cash equivalents, end of year
|
$ | 136,666 | $ | 125,076 | $ | 101,262 | ||||||
|
|
|
|
|
|
|
20.
|
CASH FLOW INFORMATION:
|
|
|
Year Ended December 31,
|
|
|||||||||
|
|
2020
|
|
|
2019
|
|
|
2018
|
|
|||
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
$ | 14,494 | $ | 29,882 | $ | 18,709 | ||||||
Federal income taxes paid
|
44,381 | 30,726 | 26,578 | |||||||||
Schedule of noncash investing and financing activities:
|
||||||||||||
Assets acquired through foreclosure
|
164 | 1,463 | 126 | |||||||||
Investment securities purchased but not settled
|
14,641 | — | — | |||||||||
Restricted stock granted to officers and directors
|
672 | 1,782 | 1,609 | |||||||||
Stock issued in acquisition of TB&T Bancshares, Inc.
|
220,273 | — | — | |||||||||
Stock issued in acquisition of Commercial Bancshares, Inc.
|
— | — | 58,087 |
21.
|
ACQUISITIONS
|
Fair value of consideration paid:
|
||||
Common stock issued (1,289,371 shares)
|
$ | 58,087 | ||
|
|
|||
Fair value of identifiable assets acquired:
|
||||
Cash and cash equivalents
|
18,653 | |||
Securities
available-for-sale
|
64,501 | |||
Loans
|
266,327 | |||
Identifiable intangible assets
|
3,167 | |||
Other assets
|
15,375 | |||
|
|
|||
Total identifiable assets acquired
|
368,023 | |||
|
|
|||
Fair value of liabilities assumed:
|
||||
Deposits
|
341,902 | |||
Other liabilities
|
(373 | ) | ||
|
|
|||
Total liabilities assumed
|
341,529 | |||
|
|
|||
Fair value of net identifiable assets acquired
|
26,494 | |||
Goodwill resulting from acquisition
|
$ | 31,593 | ||
|
|
Fair value of consideration paid:
|
||||
Common stock issued (6,275,574 shares)
|
$ | 220,273 | ||
|
|
|||
Fair value of identifiable assets acquired:
|
||||
Cash and cash equivalents
|
$ | 61,028 | ||
Securities
available-for-sale
|
93,967 | |||
Loans
|
447,702 | |||
Identifiable intangible assets
|
4,798 | |||
Other assets
|
25,377 | |||
|
|
|||
Total identifiable assets acquired
|
$ | 632,872 | ||
|
|
|||
Fair value of liabilities assumed:
|
||||
Deposits
|
$ | 549,125 | ||
Other liabilities
|
5,397 | |||
|
|
|||
Total liabilities assumed
|
$ | 554,522 | ||
|
|
|||
Fair value of net identifiable assets acquired
|
78,350 | |||
|
|
|||
Goodwill resulting from acquisition
|
$ | 141,923 | ||
|
|
Exhibit 4.2
DESCRIPTION OF REGISTRANTS SECURITIES
As of December 31, 2020, First Financial Bankshares, Inc. (the Company, we, or our) had one class of securities, our common stock, par value $0.01 per share (common stock), registered under Section 12 of the Securities Exchange Act of 1934, as amended (the Exchange Act).
DESCRIPTION OF COMMON STOCK
General
We are incorporated in the State of Texas. The rights of our shareholders are generally covered by Texas law and our Amended and Restated Certificate of Formation (the certificate of formation) and our Amended and Restated Bylaws, as amended (the bylaws). The terms of our common stock are therefore subject to Texas law, including the Texas Business Organizations Code (the TBOC), the common and constitutional law of Texas and federal law governing bank holding companies.
The following description of our common stock is a summary and is subject to, and is qualified in its entirety by reference to, the provisions of our certificate of formation and our bylaws. For more detailed information about the rights of our common stock, you should refer to our certificate of formation and bylaws and the applicable provisions of Texas law, including the TBOC, for additional information.
Authorized Capital Stock
We are authorized to issue 200,000,000 shares of common stock, par value $0.01 per share. All outstanding shares of our common stock are fully paid and non-assessable.
Voting Rights
Holders of our common stock are entitled to one vote per share in the election of directors and on all other matters submitted to a vote at a meeting of shareholders. No shareholder has the right of cumulative voting.
If a quorum exists, action on any matter, including the election of directors, shall be approved by the affirmative vote of a majority of the votes cast, unless our certificate of formation, bylaws or the TBOC require a greater number of affirmative votes. In the event that the number of director nominees exceeds the number of directors to be elected, the directors (not exceeding the authorized number of directors as fixed by the board of directors in accordance with our certificate of formation or bylaws) shall be elected by a plurality of the voting power of the shares entitled to vote who are present, in person or by proxy, at any such meeting and entitled to vote on the election of directors. Our bylaws provided that a majority of the votes cast means that the number of shares voted for a proposal, including the election of directors, must exceed the number of shares voted against, or withheld for, that proposal, and an abstention shall not constitute a vote cast.
No Preemptive or Similar Rights
Our common stock has no preemptive or conversion rights and is not entitled to the benefits of any redemption or sinking fund provision.
Dividend Rights
Holders of our common stock are entitled to dividends when, as and if declared by our board of directors out of funds legally available for dividends.
Liquidation Rights
In the event of our liquidation, the holders of our common stock will be entitled to share ratably in any distribution of our assets after payment of all debts and other liabilities.
Certain Business Combination Restrictions
We are subject to the affiliated business combinations provisions of Chapter 21, Subchapter M of the TBOC (Sections 21.601 through 21.610), which provide that a Texas corporation may not engage in certain business combinations, including mergers, consolidations and asset sales, with a person, or an affiliate or associate of such person, who is an affiliated shareholder (generally defined as the holder of 20% or more of the corporations voting shares) for a period of three years from the date such person became an affiliated shareholder unless: (1) the business combination or purchase or acquisition of shares made by the affiliated shareholder was approved by the board of directors of the corporation before the affiliated shareholder became an affiliated shareholder; or (2) the business combination was approved by the affirmative vote of the holders of at least two-thirds of the outstanding voting shares of the corporation not beneficially owned by the affiliated shareholder, at a meeting of shareholders called for that purpose (and not by written consent), not less than six months after the affiliated shareholder became an affiliated shareholder.
Certain Provisions of Our Certificate of Formation and Bylaws
Advance Notice for Shareholder Proposals and Director Nominations
Our bylaws contain provisions requiring that advance notice be delivered to the Company of any business to be brought by a shareholder before an annual meeting of shareholders and provide for certain procedures to be followed by shareholders in nominating candidates for election as directors. Generally, the advance notice provisions require that shareholder proposals be provided to us between 90 and 120 days prior to the first anniversary of the preceding years annual meeting and director nominations be provided to us between 120 and 150 days prior to the first anniversary of the preceding years annual meeting in order to be properly brought before a shareholder meeting. The notice must set forth specific information regarding the shareholder submitting the proposal or nomination and the proposal or director nominee, as described in our bylaws, and must otherwise comply with the terms of our bylaws. These requirements are in addition to those set forth in the regulations adopted by the SEC under the Exchange Act.
Special Meetings of Shareholders
Our bylaws provide that special meetings of our shareholders may be called for any purpose or purposes by (a) the Chairman of our board of directors joined by at least three members of the board of directors, or (b) a majority of our board of directors, and shall be called by the Chairman of the board of directors or Secretary at the request in writing of shareholders owning not less than twenty percent (20%) of our issued and outstanding shares entitled to vote at such meeting. Such request for a special meeting shall state the purpose or purposes of the proposed meeting, which purpose or purposes shall be stated in the notice of the meeting. Business transacted at any special meeting of shareholders shall be limited to the purposes stated in the notice. At a special meeting requested by our shareholders, only the Company and the shareholders who participated in the written meeting request may propose any item for consideration or nominate directors for election at such meeting.
Potential Anti-Takeover Effect
Certain provisions of our certificate of formation and bylaws could make the acquisition of control of our company and/or the removal of our existing management more difficult, including those that provide as follows:
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cumulative voting in the election of our board of directors, which would otherwise allow less than a majority of shareholders to elect director candidates, is expressly denied under our certificate of formation and bylaws; |
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our bylaws limit the ability of shareholders to call a special meeting except in compliance with the procedures described above, which require shareholders owning not less than twenty percent (20%) of our issued and outstanding shares entitled to vote at such meeting to request a special meeting; |
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subject to certain limitations set forth in our bylaws, our board of directors fixes the size of the board of directors, may create new directorships and may appoint new directors to serve in such newly-created positions until the next election of one or more directors by our shareholders; |
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our bylaws may be altered, amended or repealed and new bylaws may be adopted by our board of directors, subject to repeal or change by action of the shareholders, at any meeting of the board of directors at which a quorum is present, provided notice of the proposed alteration, amendment, or repeal is contained in the notice of the meeting, unless (a) our certificate of formation or the TBOC wholly or partly reserves the power exclusively to our shareholders; or (b) in amending, repealing, or adopting a bylaw, the shareholders expressly provide that the board of directors may not amend, repeal, or readopt that bylaw; and |
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we have advance notice procedures with respect to shareholder proposals and the nomination of candidates for election as directors. |
These provisions are expected to discourage coercive takeover practices and inadequate takeover bids. They are also designed, in part, to encourage persons seeking to acquire control of the Company to first negotiate with our board of directors. We believe that the benefits of increased protection give us the potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us and that these benefits outweigh the disadvantages of discouraging the proposals. Negotiating with the proponent could result in an improvement of the terms of the proposal.
Stock Exchange Listing
Our common stock is traded on the Nasdaq Global Select Market under the symbol FFIN.
Transfer Agent and Registrar
The transfer agent and registrar for our common stock is Continental Stock Transfer & Trust Company at 1 State Street, 30th Floor, New York, NY 10004-1561.
Exhibit 21.1
SUBSIDIARIES OF REGISTRANT
Names of Subsidiary |
Place of Organization |
Percentage of Voting Securities Owned |
||
First Financial Investments, Inc. | Texas | 100% | ||
Abilene, Texas | ||||
First Technology Services, Inc. | Texas | 100% | ||
Abilene, Texas | ||||
First Financial Trust & Asset Management Company, N.A.* | Texas | 100% | ||
Abilene, Texas | ||||
First Financial Bank, N.A* | Texas | 100% | ||
Abilene, Texas | ||||
First Financial Insurance Agency, Inc. | Texas | 100% | ||
Abilene, Texas |
* |
National charter. |
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the following Registration Statements:
(1) |
Registration Statement (Form S-8 No. 333-190247) pertaining to the 2012 Incentive Stock Option Plan of First Financial Bankshares, Inc.; |
(2) |
Registration Statement (Form S-8 No. 333-114121) pertaining to the 2002 Incentive Stock Option Plan of First Financial Bankshares, Inc.; and |
(3) |
Registration Statement (Form S-8 No. 333-205406) pertaining to the 2015 Restricted Stock Plan of First Financial Bankshares, Inc; |
of our reports dated February 22, 2021, with respect to the consolidated financial statements of First Financial Bankshares, Inc. and subsidiaries and the effectiveness of internal control over financial reporting of First Financial Bankshares, Inc. and subsidiaries included in this Annual Report (Form 10-K) of First Financial Bankshares, Inc. for the year ended December 31, 2020.
/s/ Ernst & Young LLP
Dallas, Texas
February 22, 2021
Exhibit 31.1
Certification of
Chief Executive Officer
of First Financial Bankshares, Inc.
I, F. Scott Dueser, Chairman of the Board, President and Chief Executive Officer of First Financial Bankshares, Inc., certify that:
1. I have reviewed this Form 10-K of First Financial Bankshares, Inc.;
2. Based on my knowledge, this 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 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 that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
5. The registrants other certifying officers 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: February 22, 2021
By: |
/s/ F. SCOTT DUESER |
|
F. Scott Dueser | ||
Chairman of the Board, President and Chief Executive Officer |
Exhibit 31.2
Certification of
Chief Financial Officer
of First Financial Bankshares, Inc.
I, James R. Gordon, Executive Vice President and Chief Financial Officer, Secretary and Treasurer of First Financial Bankshares, Inc., certify that:
1. I have reviewed this Form 10-K of First Financial Bankshares, Inc.;
2. Based on my knowledge, this 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 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 that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting.
5. The registrants other certifying officers 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: February 22, 2021
By: |
/s/ James R. Gordon |
|
James R. Gordon | ||
Executive Vice President and Chief Financial Officer, Secretary and Treasurer |
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 annual report on Form 10-K (the Form 10-K) for the year ended December 31, 2019 of First Financial Bankshares, Inc. (the Issuer).
I, F. Scott Dueser, the Chairman of the Board, President and Chief Executive Officer of the Issuer certify, to the best of my knowledge, that:
1. the Form 10-K fully complies with the requirements of Section 13(a) or 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-K fairly presents, in all material respects, the financial condition and results of operations of the Issuer.
Dated: February 22, 2021
By: |
/s/ F. SCOTT DUESER |
|||
F. Scott Dueser | ||||
Chairman of the Board, President and | ||||
Chief Executive Officer |
Subscribed and sworn to before me this 22nd day of February, 2021.
/s/ Melissa A. Fenton |
Notary Public |
My commission expires: October 11, 2024 |
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 annual report on Form 10-K (the Form 10-K) for the year ended December 31, 2019 of First Financial Bankshares, Inc. (the Issuer).
I, James R. Gordon, the Executive Vice President and Chief Financial Officer, Secretary and Treasurer of the Issuer certify, to the best of my knowledge, that:
1. the Form 10-K fully complies with the requirements of Section 13(a) or 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-K fairly presents, in all material respects, the financial condition and results of operations of the Issuer.
Dated: February 22, 2021
By: |
/s/ James R. Gordon |
|||||
James R. Gordon | ||||||
Executive Vice President and Chief Financial Officer, Secretary and Treasurer |
Subscribed and sworn to before me this 22nd day of February, 2021.
/s/ Melissa A. Fenton |
Notary Public |
My commission expires: October 11, 2024 |