FIRST FINANCIAL BANKSHARES, INC. (NASDAQ:FFIN) Files An 8-K Entry into a Material Definitive Agreement
ITEM1.01
| Entry into a Material Definitive Agreement |
On June30, 2017, First Financial Bankshares, Inc. (the Company)
renewed its loan agreement (the Loan Agreement) with Frost Bank.
Under the Loan Agreement, the Company is permitted to draw up to
$25.0 million on a revolving line of credit. Prior to June30,
2019, interest is paid quarterly at Wall Street Journal Prime and
the line of credit matures June30, 2019. If a balance exists at
July1, 2019, the principal balance coverts to a term facility
payable quarterly over five years and interest is paid quarterly
at the election of the Company at Wall Street Journal Prime or
LIBOR plus 2.5%. The line of credit is unsecured. Among other
provisions in the Loan Agreement, the Company must satisfy
certain financial covenants during the term of the Loan
Agreement, including without limitation, covenants that require
the Company to maintain certain capital, tangible net worth, loan
loss reserve, non-performing asset and cash flow coverage ratios.
In addition, the Loan Agreement contains certain operational
covenants, that among others, restricts the payment of dividends
above 55% of consolidated net income, limits the incurrence of
debt (excluding any amounts acquired in an acquisition) and
prohibits the disposal of assets except in the ordinary course of
business. Since 1995, the Company has declared dividends as a
percentage of its consolidated net income in a range of 37% (low)
in 1995 to 53% (high) in 2003 and 2006. Through the three months
ended March31, 2017, the Company has declared dividends equal to
44.8% of its consolidated net income. There have been no
borrowings under the Loan Agreement during 2017 or 2016.
ITEM9.01 |
Financial Statements and Exhibits |
(d) |
Exhibits |
| Exhibit Number | Description | |
| 10.1 |
Second Amendment to Loan Agreement, dated June30, 2017, between First Financial Bankshares, Inc. and Frost Bank. |
FIRST FINANCIAL BANKSHARES INC ExhibitEX-10.1 2 d375187dex101.htm EX-10.1 EX-10.1 Exhibit 10.1 SECOND AMENDMENT TO LOAN AGREEMENT THIS SECOND AMENDMENT TO LOAN AGREEMENT (the Second Amendment) dated as of the 30th day of June,…To view the full exhibit click here About FIRST FINANCIAL BANKSHARES, INC. (NASDAQ:FFIN)
First Financial Bankshares, Inc. is a financial holding company. Through its subsidiaries, the Company conducts commercial banking business. It provides commercial banking services, which include accepting and holding checking, savings and time deposits, making loans, automated teller machines, drive-in and night deposit services, safe deposit facilities, remote deposit capture, Internet banking, mobile banking, payroll cards, transmitting funds and other customary commercial banking services. It also conducts trust activities through First Financial Trust & Asset Management Company, National Association, its trust company. Through its trust company, it offers personal trust services, which include the administration of estates, testamentary trusts, revocable and irrevocable trusts and agency accounts. In addition, it provides securities brokerage services through a third-party in its Abilene, San Angelo, Cleburne, Stephenville, Eastland and Weatherford banking regions.