10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2015

Commission file number 0-7674

FIRST FINANCIAL BANKSHARES, INC.

(Exact name of registrant as specified in its charter)

Texas	75-0944023
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
400 Pine Street, Abilene, Texas	79601
(Address of principal executive offices)	(Zip Code)

(325) 627-7155

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ¨    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:                     

Class	Outstanding at August 4, 2015
Common Stock, $0.01 par value per share	64,176,986

TABLE OF CONTENTS

Item		Page
PART I
FINANCIAL INFORMATION
1.	Financial Statements		3
	Consolidated Balance Sheets – Unaudited		4
	Consolidated Statements of Earnings – Unaudited		5
	Consolidated Statements of Comprehensive Earnings – Unaudited		6
	Consolidated Statements of Shareholders’ Equity – Unaudited		7
	Consolidated Statements of Cash Flows – Unaudited		8
	Notes to Consolidated Financial Statements – Unaudited		9
2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		32
3.	Quantitative and Qualitative Disclosures About Market Risk		50
4.	Controls and Procedures		51
PART II
OTHER INFORMATION
1.	Legal Proceedings		52
1A.	Risk Factors		52
2.	Unregistered Sales of Equity Securities and Use of Proceeds		52
3.	Defaults Upon Senior Securities		52
4.	Mine Safety Disclosures		52
5.	Other Information		52
6.	Exhibits		53
	Signatures		54

2

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

The consolidated balance sheets of First Financial Bankshares, Inc. (the “Company”) at June 30, 2015 and 2014 and December 31, 2014, and the consolidated statements of earnings and comprehensive earnings for the three and six months ended June 30, 2015 and 2014, and the consolidated statements of shareholders’ equity and cash flows for the six months ended June 30, 2015 and 2014, follow on pages 4 through 8.

3

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

	June 30,						December 31,
	2015			2014			2014
	(Unaudited)
ASSETS
CASH AND DUE FROM BANKS	$	149,524		$	166,237		$	190,387
FEDERAL FUNDS SOLD		5,720			3,110			8,760
INTEREST-BEARING DEPOSITS IN BANKS		18,179			68,331			54,324
Total cash and cash equivalents		173,423			237,678			253,471
INTEREST-BEARING TIME DEPOSITS IN BANKS		5,456			24,188			17,002
SECURITIES AVAILABLE-FOR-SALE, at fair value		2,729,113			2,173,828			2,415,856
SECURITIES HELD-TO-MATURITY (fair value of $301, $576 and $447 at June 30, 2015 and 2014, and December 31, 2014, respectively)		295			568			441
LOANS:
Held for investment		2,942,224			2,773,074			2,929,188
Less - allowance for loan losses		(38,999	)		(35,892	)		(36,824	)
Net loans held for investment		2,903,225			2,737,182			2,892,364
Held for sale		25,544			13,570			8,803
Net loans		2,928,769			2,750,752			2,901,167
BANK PREMISES AND EQUIPMENT, net		104,495			96,619			103,000
INTANGIBLE ASSETS		99,039			97,429			97,359
OTHER ASSETS		74,646			65,294			59,906
Total assets	$	6,115,236		$	5,446,356		$	5,848,202
LIABILITIES AND SHAREHOLDERS’ EQUITY
NONINTEREST-BEARING DEPOSITS	$	1,574,745		$	1,445,947		$	1,570,330
INTEREST-BEARING DEPOSITS		3,152,674			2,872,511			3,179,925
Total deposits		4,727,419			4,318,458			4,750,255
DIVIDENDS PAYABLE		10,265			8,968			8,972
SHORT-TERM BORROWINGS		621,155			434,583			367,110
OTHER LIABILITIES		55,204			44,311			40,328
Total liabilities		5,414,043			4,806,320			5,166,665
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock - ($0.01 par value, authorized 120,000,000 shares; 64,156,302, 64,053,010 and 64,089,921 shares issued at June 30, 2015, 2014 and December 31, 2014, respectively)		642			640			641
Capital surplus		306,763			304,308			305,429
Retained earnings		358,037			299,902			327,978
Treasury stock (shares at cost: 527,001, 534,905 and 529,563 at June 30, 2015, 2014 and December 31, 2014, respectively)		(6,110	)		(5,723	)		(5,878	)
Deferred compensation		6,110			5,723			5,878
Accumulated other comprehensive earnings		35,751			35,186			47,489
Total shareholders’ equity		701,193			640,036			681,537
Total liabilities and shareholders’ equity	$	6,115,236		$	5,446,356		$	5,848,202

See notes to consolidated financial statements.

4

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS - (UNAUDITED)

(Dollars in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
INTEREST INCOME:
Interest and fees on loans	$	36,034		$	33,846		$	71,095		$	66,904
Interest on investment securities:
Taxable		7,399			7,091			15,207			14,175
Exempt from federal income tax		9,861			8,228			18,981			16,208
Interest on federal funds sold and interest-bearing deposits in banks		50			89			130			176
Total interest income		53,344			49,254			105,413			97,463
INTEREST EXPENSE:
Interest on deposits		902			955			1,829			1,895
Other		106			82			148			178
Total interest expense		1,008			1,037			1,977			2,073
Net interest income		52,336			48,217			103,436			95,390
PROVISION FOR LOAN LOSSES		1,554			1,124			2,844			2,814
Net interest income after provision for loan losses		50,782			47,093			100,592			92,576
NONINTEREST INCOME:
Trust fees		4,740			4,549			9,472			9,125
Service charges on deposit accounts		4,021			4,174			7,789			8,221
ATM, interchange and credit card fees		5,445			4,754			10,415			9,197
Real estate mortgage operations		1,942			1,337			3,368			2,361
Net gain (loss) on sale of available-for-sale securities (includes $239 and ($1) for the three months ended June 30, 2015 and 2014, respectively, and $244 and ($5) for the six months ended June 30, 2015 and 2014, respectively, related to accumulated other comprehensive earnings reclassifications)		239			(1	)		244			(5	)
Net gain (loss) on sale of foreclosed assets		(49	)		47			(19	)		499
Other		1,471			1,012			2,438			2,879
Total noninterest income		17,809			15,872			33,707			32,277
NONINTEREST EXPENSE:
Salaries and employee benefits		19,173			17,274			37,438			34,688
Net occupancy expense		2,394			2,273			4,590			4,507
Equipment expense		2,992			2,665			5,891			5,287
FDIC insurance premiums		749			684			1,498			1,343
ATM, interchange and credit card expenses		1,609			1,696			3,335			3,176
Professional and service fees		1,157			963			2,222			2,044
Printing, stationery and supplies		471			554			1,067			1,329
Amortization of intangible assets		72			74			162			148
Other		6,587			8,819			12,948			14,927
Total noninterest expense		35,204			35,002			69,151			67,449
EARNINGS BEFORE INCOME TAXES		33,387			27,963			65,148			57,404
INCOME TAX EXPENSE (includes $84 and $0 for the three months ended June 30, 2015 and 2014, respectively, and $85 and ($2) for the six months ended June 30, 2015 and 2014, respectively, related to income tax expense from reclassification items)		8,080			6,758			15,845			13,863
NET EARNINGS	$	25,307		$	21,205		$	49,303		$	43,541
EARNINGS PER SHARE, BASIC	$	0.39		$	0.33		$	0.77		$	0.68
EARNINGS PER SHARE, ASSUMING DILUTION	$	0.39		$	0.33		$	0.77		$	0.68
DIVIDENDS PER SHARE	$	0.16		$	0.14		$	0.30		$	0.27

See notes to consolidated financial statements.

5

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - (UNAUDITED)

(Dollars in thousands)

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
NET EARNINGS	$	25,307		$	21,205		$	49,303		$	43,541
OTHER ITEMS OF COMPREHENSIVE EARNINGS (LOSS):
Change in unrealized gain (loss) on investment securities available-for-sale, before income taxes		(31,190	)		16,622			(17,707	)		38,182
Reclassification adjustment for realized losses (gains) on investment securities included in net earnings, before income tax		(239	)		1			(244	)		5
Minimum liability pension adjustment, before income taxes		(108	)		—			(108	)		—
Total other items of comprehensive earnings (losses)		(31,537	)		16,623			(18,059	)		38,187
Income tax benefit (expense) related to:
Investment securities		11,000			(5,818	)		6,283			(13,365	)
Minimum liability pension adjustment		38			—			38			—
Total income tax benefit (expense)		11,038			(5,818	)		6,321			(13,365	)
COMPREHENSIVE EARNINGS	$	4,808		$	32,010		$	37,565		$	68,363

See notes to consolidated financial statements.

6

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Dollars in thousands, except per share amounts)

	Common Stock				Capital Surplus		Retained Earnings			Treasury Stock						Deferred Compensation		Accumulated Other Comprehensive Earnings			Total Shareholders’ Equity
	Shares		Amount							Shares			Amounts
Balances at December 31, 2013		31,992,497	$	320	$	302,991	$	273,972			(269,467	)	$	(5,490	)	$	5,490	$	10,364		$	587,647
Net earnings (unaudited)		—		—		—		43,541			—			—			—		—			43,541
Stock option exercises (unaudited)		37,753		—		910		—			—			—			—		—			910
Cash dividends declared, $0.27 per share (unaudited)		—		—		—		(17,291	)		—			—			—		—			(17,291	)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)		—		—		—		—			—			—			—		24,822			24,822
Additional tax benefit related to directors’ deferred compensation plan (unaudited)		—		—		50		—			—			—			—		—			50
Shares redeemed in connection with directors’ deferred compensation plan, net (unaudited)		—		—		—		—			2,696			(233	)		233		—			—
Stock option expense (unaudited)		—		—		357		—			—			—			—		—			357
Two-for-one stock split in the form of a 100% stock dividend (unaudited)		32,022,760		320		—		(320	)		(268,134	)		—			—		—			—
Balances at June 30, 2014 (unaudited)		64,053,010	$	640	$	304,308	$	299,902			(534,905	)	$	(5,723	)	$	5,723	$	35,186		$	640,036
Balances at December 31, 2014		64,089,921	$	641	$	305,429	$	327,978			(529,563	)	$	(5,878	)	$	5,878	$	47,489		$	681,537
Net earnings (unaudited)		—		—		—		49,303			—			—			—		—			49,303
Stock option exercises (unaudited)		66,381		1		924		—			—			—			—		—			925
Cash dividends declared, $0.30 per share (unaudited)		—		—		—		(19,244	)		—			—			—		—			(19,244	)
Minimum liability pension adjustment, net of related income taxes (unaudited)		—		—		—		—			—			—			—		(70	)		(70	)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)		—		—		—		—			—			—			—		(11,668	)		(11,668	)
Additional tax benefit related to directors’ deferred compensation plan (unaudited)		—		—		50		—			—			—			—		—			50
Shares redeemed in connection with directors’ deferred compensation plan, net (unaudited)		—		—		—		—			2,562			(232	)		232		—			—
Stock option expense (unaudited)		—		—		360		—			—			—			—		—			360
Balances at June 30, 2015 (unaudited)		64,156,302	$	642	$	306,763	$	358,037			(527,001	)	$	(6,110	)	$	6,110	$	35,751		$	701,193

See notes to consolidated financial statements.

7

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)

(Dollars in thousands)

	Six Months Ended June 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	49,303		$	43,541
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		5,074			4,573
Provision for loan losses		2,844			2,814
Securities premium amortization (discount accretion), net		13,164			9,568
Gain on sale of assets, net		(226	)		(541	)
Deferred federal income tax benefit		(763	)		(971	)
Change in loans held for sale, net		(16,741	)		(8,407	)
Change in other assets		(15,129	)		4,972
Change in other liabilities		8,022			4,877
Total adjustments		(3,755	)		16,885
Net cash provided by operating activities		45,548			60,426
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for asset acquisition of 4Trust Mortgage, Inc.		(1,931	)		—
Net decrease in interest-bearing time deposits in banks		11,546			7,729
Activity in available-for-sale securities:
Sales		7,760			1,445
Maturities		2,111,206			621,807
Purchases		(2,448,852	)		(710,574	)
Activity in held-to-maturity securities - maturities		146			116
Net increase in loans		(13,802	)		(90,627	)
Purchases of bank premises and equipment and other assets		(6,240	)		(5,400	)
Proceeds from sale of other assets		390			2,397
Net cash used in investing activities		(339,777	)		(173,107	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in noninterest-bearing deposits		4,415			83,763
Net increase (decrease) in interest-bearing deposits		(27,251	)		99,620
Net increase (decrease) in short-term borrowings		254,045			(29,305	)
Common stock transactions:
Proceeds from stock issuances		924			910
Dividends paid		(17,952	)		(16,641	)
Net cash provided by financing activities		214,181			138,347
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(80,048	)		25,666
CASH AND CASH EQUIVALENTS, beginning of period		253,471			212,012
CASH AND CASH EQUIVALENTS, end of period	$	173,423		$	237,678
SUPPLEMENTAL INFORMATION AND NONCASH TRANSACTIONS:
Interest paid	$	1,972		$	2,070
Federal income tax paid		13,994			14,445
Transfer of loans to foreclosed assets		97			1,015
Investment securities purchased but not settled		15,483			7,417

See notes to consolidated financial statements.

8

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1 - Basis of Presentation

The unaudited interim consolidated financial statements include the accounts of the Company, a Texas corporation and a financial holding company registered under the Bank Holding Company Act of 1956, as amended, or BHCA, and its wholly-owned subsidiaries: First Financial Bank, National Association, Abilene, Texas; First Technology Services, Inc.; First Financial Trust & Asset Management Company, National Association; First Financial Investments, Inc.; and First Financial Insurance Agency, Inc.

Through our subsidiary bank, we conduct a full-service commercial banking business. Our banking centers are located primarily in Central, North Central, Southeast and West Texas. As of June 30, 2015, we had 62 financial centers across Texas, with eleven locations in Abilene, three locations in San Angelo and Weatherford, two locations in Cleburne, Stephenville and Granbury, and one location each in Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Clyde, Decatur, Eastland, Fort Worth, Glen Rose, Grapevine, Hereford, Huntsville, Keller, Mauriceville, Merkel, Midlothian, Mineral Wells, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, Southlake, Sweetwater, Trent, Trophy Club, Vidor, Waxahachie, and Willow Park and three mortgage origination offices in Dallas, Ft. Worth and Southlake, Texas. Our trust subsidiary has eight locations which are located in Abilene, Fort Worth, Lubbock, Odessa, Beaumont, San Angelo, Stephenville and Sweetwater, all in Texas.

In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments necessary for a fair presentation of the Company’s financial position and unaudited results of operations and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2014. All adjustments were of a normal recurring nature. However, the results of operations for the three months and six months ended June 30, 2015, are not necessarily indicative of the results to be expected for the year ending December 31, 2015, due to seasonality, changes in economic conditions and loan credit quality, interest rate fluctuations, regulatory and legislative changes and other factors. The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the financial statement date. Actual results could vary. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under U. S. Securities and Exchange Commission (“SEC”) rules and regulations. The Company evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued.

On April 28, 2015, the Company’s shareholders approved an amendment to the Company’s Amended and Restated Certificate of Formation to increase the number of authorized common shares to 120,000,000.

On October 28, 2014, the Company’s Board of Directors authorized the repurchase of up to 1,500,000 common shares through September 30, 2017. The stock buyback plan authorizes management to repurchase the stock at such time as repurchases are considered beneficial to shareholders. Any repurchase of stock will be made through the open market, block trades or in privately negotiated transactions in accordance with applicable laws and regulations. Under the repurchase plan, there is no minimum number of shares that the Company is required to repurchase. Through June 30, 2015, no shares were repurchased under this authorization.

Goodwill and other intangible assets are evaluated annually for impairment as of the end of the second quarter. No such impairment has been noted in connection with the current or any prior evaluations.

9

Note 2 - Stock Split

On April 22, 2014, the Company’s Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend effective for shareholders of record on May 15, 2014 that was distributed on June 2, 2014. All per share amounts in this report have been restated to reflect this stock split. An amount equal to the par value of the additional common shares issued pursuant to the stock split was reflected as a transfer from retained earnings to common stock on the consolidated financial statements as of and for the six months ended June 30, 2014.

Note 3 - Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during the periods presented. In computing diluted earnings per common share for the three and six months ended June 30, 2015 and 2014, the Company assumes that all dilutive outstanding options to purchase common stock have been exercised at the beginning of the period (or the time of issuance, if later). The dilutive effect of the outstanding options is reflected by application of the treasury stock method, whereby the proceeds from the exercised options are assumed to be used to purchase common stock at the average market price during the respective periods. The weighted average common shares outstanding used in computing basic earnings per common share for the three months ended June 30, 2015 and 2014 were 64,148,356 and 64,045,282 shares, respectively. The weighted average common shares outstanding used in computing basic earnings per common share for the six months ended June 30, 2015 and 2014 were 64,135,731 and 64,027,776 shares, respectively. The weighted average common shares outstanding used in computing fully diluted earnings per common share for the three months ended June 30, 2015 and 2014 were 64,354,720 and 64,301,306 shares, respectively. The weighted average common shares outstanding used in computing fully diluted earnings per common share for the six months ended June 30, 2015 and 2014 were 64,328,672 and 64,298,525 shares, respectively.

Note 4 - Interest-bearing Time Deposits in Banks and Securities

Interest-bearing time deposits in banks totaled $5,456,000, $24,188,000 and $17,002,000 at June 30, 2015 and 2014 and December 31, 2014, respectively, and have original maturities generally ranging from one to four years. Of these amounts, $983,000, $5,269,000 and $3,195,000 are time deposits with balances greater than $250,000, the FDIC insured limit, at June 30, 2015 and 2014 and December 31, 2014, respectively.

Management classifies debt and equity securities as held-to-maturity, available-for-sale, or trading based on its intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at cost, adjusted for amortization of premiums and accretion of discounts, which are recognized as adjustments to interest income using the interest method. Securities not classified as held-to-maturity or trading are classified as available-for-sale and recorded at fair value, with all unrealized gains and unrealized losses judged to be temporary, net of deferred income taxes, excluded from earnings and reported in the consolidated statements of comprehensive earnings. Available-for-sale securities that have unrealized losses that are judged other-than-temporary are included in gain (loss) on sale of securities and a new cost basis is established. Securities classified as trading are recorded at fair value with unrealized gains and losses included in earnings.

The Company records its available-for-sale and trading securities portfolio at fair value. Fair values of these securities are determined based on methodologies in accordance with current authoritative accounting guidance. Fair values are volatile and may be influenced by a number of factors, including market interest rates, prepayment speeds, discount rates, credit ratings and yield curves. Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on the quoted prices of similar instruments or an estimate of fair value by using a range of fair value estimates in the market place as a result of the illiquid market specific to the type of security.

10

When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair value is below amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other-than-temporary impairment. The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity, (ii) whether it is more likely than not that we will have to sell our securities prior to recovery and/or maturity, (iii) the length of time and extent to which the fair value has been less than amortized cost, and (iv) the financial condition of the issuer. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition.

The Company’s investment portfolio consists of U.S. Treasury securities, obligations of U. S. government sponsored enterprises and agencies, obligations of state and political subdivisions, mortgage pass-through securities, corporate bonds and general obligation or revenue based municipal bonds. Pricing for such securities is generally readily available and transparent in the market. The Company utilizes independent third party pricing services to value its investment securities, which the Company reviews as well as the underlying pricing methodologies for reasonableness and to ensure such prices are aligned with pricing matrices. The Company validates quarterly, on a sample basis, prices supplied by the independent pricing services by comparison to prices obtained from other third party sources.

A summary of the Company’s available-for-sale securities follows (in thousands):

	June 30, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,864	$	72	$	—		$	10,936
Obligations of U.S. government sponsored enterprises and agencies		164,351		985		—			165,336
Obligations of states and political subdivisions		1,340,163		49,483		(5,400	)		1,384,246
Corporate bonds and other		94,485		2,623		—			97,108
Residential mortgage-backed securities		856,546		14,383		(2,838	)		868,091
Commercial mortgage-backed securities		203,482		591		(677	)		203,396
Total securities available-for-sale	$	2,669,891	$	68,137	$	(8,915	)	$	2,729,113

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	June 30, 2014
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Obligations of U.S. government sponsored-enterprises and agencies	$	118,907	$	1,210	$	—		$	120,117
Obligations of states and political subdivisions		1,027,503		49,171		(2,016	)		1,074,658
Corporate bonds and other		97,119		3,621		—			100,740
Residential mortgage-backed securities		734,301		16,183		(5,011	)		745,473
Commercial mortgage-backed securities		135,214		34		(2,408	)		132,840
Total securities available-for-sale	$	2,113,044	$	70,219	$	(9,435	)	$	2,173,828

	December 31, 2014
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	518	$	2	$	—		$	520
Obligations of U.S. government sponsored enterprises and agencies		128,919		864		(28	)		129,755
Obligations of states and political subdivisions		1,107,795		60,083		(250	)		1,167,628
Corporate bonds and other		95,864		2,894		—			98,758
Residential mortgage-backed securities		871,265		16,804		(2,858	)		885,211
Commercial mortgage-backed securities		134,322		555		(893	)		133,984
Total securities available-for-sale	$	2,338,683	$	81,202	$	(4,029	)	$	2,415,856

Disclosures related to the Company’s held-to-maturity securities, which totaled $295,000, $568,000 and $441,000 at June 30, 2015 and 2014, and December 31, 2014, respectively, have not been presented due to insignificance.

The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at June 30, 2015 were computed by using scheduled amortization of balances and historical prepayment rates. At June 30, 2015 and 2014 and December 31, 2014, the Company did not hold CMOs that entail higher risks than standard mortgage-backed securities.

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The amortized cost and estimated fair value of available-for-sale securities at June 30, 2015, by contractual and expected maturity, are shown below (in thousands):

	Amortized Cost Basis		Estimated Fair Value
Due within one year	$	133,995	$	135,181
Due after one year through five years		707,981		737,467
Due after five years through ten years		750,600		767,300
Due after ten years		17,287		17,678
Mortgage-backed securities		1,060,028		1,071,487
Total	$	2,669,891	$	2,729,113

The following tables disclose, as of June 30, 2015 and 2014, and December 31, 2014, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands):

	Less than 12 Months				12 Months or Longer				Total
June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	304,510	$	5,335	$	2,531	$	65	$	307,041	$	5,400
Residential mortgage-backed securities		176,569		844		65,562		1,994		242,131		2,838
Commercial mortgage-backed securities		134,151		628		9,504		49		143,655		677
Total	$	615,230	$	6,807	$	77,597	$	2,108	$	692,827	$	8,915

	Less than 12 Months				12 Months or Longer				Total
June 30, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	41,095	$	160	$	101,800	$	1,856	$	142,895	$	2,016
Residential mortgage-backed securities		133,104		4,417		23,427		594		156,531		5,011
Commercial mortgage-backed securities		97,972		2,075		10,142		333		108,114		2,408
Total	$	272,171	$	6,652	$	135,369	$	2,783	$	407,540	$	9,435

	Less than 12 Months				12 Months or Longer				Total
December 31, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of U.S. government sponsored enterprises and agencies	$	25,480	$	28	$	—	$	—	$	25,480	$	28
Obligations of states and political subdivisions		15,128		60		21,249		190		36,377		250
Residential mortgage-backed securities		76,350		148		128,368		2,710		204,718		2,858
Commercial mortgage-backed securities		48,399		273		55,065		620		103,464		893
Total	$	165,357	$	509	$	204,682	$	3,520	$	370,039	$	4,029

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The number of investments in an unrealized loss position totaled 262 at June 30, 2015. We do not believe these unrealized losses are “other-than-temporary” as (i) we do not have the intent to sell our securities prior to recovery and/or maturity and (ii) it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. In making this determination, we also consider the length of time and extent to which fair value has been less than cost and the financial condition of the issuer. The unrealized losses noted are interest rate related due to the level of interest rates at June 30, 2015 compared to the time of purchase. We have reviewed the ratings of the issuers and have not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies.

At June 30, 2015, $1,543,543,000 of the Company’s securities were pledged as collateral for public or trust fund deposits, repurchase agreements and for other purposes required or permitted by law.

During the quarters ended June 30, 2015 and 2014, sales of investment securities that were classified as available-for-sale totaled $6,631,000 and $541,000, respectively. Gross realized gains from security sales in the second quarter of 2015 totaled $243,000. There were no gross realized gains on security sales in the second quarter of 2014. Gross realized losses from security sales during the second quarter of 2015 and 2014 totaled $4,000 and $1,000, respectively. During the six months ended June 30, 2015 and 2014, sales of investment securities that were classified as available-for-sale totaled $7,760,000 and $1,445,000, respectively. Gross realized gains from security sales during the six-month periods ended June 30, 2015 and 2014 totaled $248,000 and $1,000, respectively. Gross realized losses from security sales during the six-month periods ended June 30, 2015 and 2014 totaled $4,000 and $6,000, respectively. The specific identification method was used to determine cost in order to compute the realized gains and losses.

Note 5 - Loans and Allowance for Loan Losses

Loans held for investment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amounts outstanding. The Company defers and amortizes net loan origination fees and costs as an adjustment to yield. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely.

The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on an annual basis and makes changes as appropriate. Management receives and reviews monthly reports related to loan originations, quality, concentrations, delinquencies, nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geographic location.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees.

Agricultural loans are subject to underwriting standards and processes similar to commercial loans. These agricultural loans are based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. Most agricultural loans are secured by the agriculture related assets being financed, such as farm land, cattle or equipment, and include personal guarantees.

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Real estate loans are also subject to underwriting standards and processes similar to commercial and agricultural loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location within Texas. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Generally, real estate loans are owner occupied which further reduces the Company’s risk.

Consumer loan underwriting utilizes methodical credit standards and analysis to supplement the Company’s underwriting policies and procedures. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimize the Company’s risk.

The allowance for loan losses is an amount which represents management’s best estimate of probable losses that are inherent in the Company’s loan portfolio as of the balance sheet date. The allowance for loan losses is comprised of three elements: (i) specific reserves determined based on probable losses on specific classified loans; (ii) a historical valuation reserve component that considers historical loss rates; and (iii) qualitative reserves based upon general economic conditions and other qualitative risk factors both internal and external to the Company. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the appropriateness of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. For purposes of determining our historical valuation reserve, the loan portfolio, less cash secured loans, government guaranteed loans and classified loans, is multiplied by the Company’s historical loss rate. Specific allocations are increased or decreased in accordance with deterioration or improvement in credit quality and a corresponding increase or decrease in risk of loss on a particular loan. In addition, we adjust our allowance for qualitative factors such as current local economic conditions and trends, including, without limitations, unemployment, oil and gas prices, drought conditions, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. This qualitative reserve serves to estimate for additional areas of losses inherent in our portfolio that are not reflected in our historic loss factors.

Although we believe we use the best information available to make loan loss allowance determinations, future adjustments could be necessary if circumstances or economic conditions differ substantially from the assumptions used in making our initial determinations. A downturn in the economy and employment could result in increased levels of non-performing assets and charge-offs, increased loan provisions and reductions in income. Additionally, bank regulatory agencies periodically review our allowance for loan losses and methodology and could require, in accordance with generally accepted accounting principles, additional provisions to the allowance for loan losses based on their judgment of information available to them at the time of their examination as well as changes to our methodology.

Accrual of interest is discontinued on a loan and payments are applied to principal when management believes, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Except consumer loans, generally all loans past due greater than 90 days, based on contractual terms, are placed on non-accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Consumer loans are generally charged-off when a loan becomes past due 90 days. For other loans in the portfolio, facts and circumstances are evaluated in making charge-off decisions.

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Loans are considered impaired when, based on current information and events, management determines that it is probable we will be unable to collect all amounts due in accordance with the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectable.

The Company’s policy requires measurement of the allowance for an impaired, collateral dependent loan based on the fair value of the collateral. Other loan impairments for non-collateral dependent loans are measured based on the present value of expected future cash flows or the loan’s observable market price. At June 30, 2015 and 2014, and December 31, 2014, all significant impaired loans have been determined to be collateral dependent and the allowance for loss has been measured utilizing the estimated fair value of the collateral.

From time to time, the Company modifies its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. For all impaired loans, including the Company’s troubled debt restructurings, the Company performs a periodic, well-documented credit evaluation of the borrower’s financial condition and prospects for repayment to assess the likelihood that all principal and interest payments required under the terms of the agreement will be collected in full. When doubt exists about the ultimate collectability of principal and interest, the troubled debt restructuring remains on non-accrual status and payments received are applied to reduce principal to the extent necessary to eliminate such doubt. This determination of accrual status is judgmental and is based on facts and circumstances related to each troubled debt restructuring. Each of these loans is individually evaluated for impairment and a specific reserve is recorded based on probable losses, taking into consideration the related collateral, modified loan terms and cash flow. As of June 30, 2015 and 2014, and December 31, 2014, substantially all of the Company’s troubled debt restructured loans are included in the non-accrual totals.

The Company originates certain mortgage loans for sale in the secondary market. Accordingly, these loans are classified as held-for-sale and are carried at the lower of cost or fair value on an aggregate basis. The mortgage loan sales contracts contain indemnification clauses should the loans default, generally in the first three to six months, or if documentation is determined not to be in compliance with regulations. The Company’s historic losses as a result of these indemnities have been insignificant.

Loans acquired, including loans acquired in a business combination, are initially recorded at fair value with no valuation allowance. Acquired loans are segregated between those considered to be credit impaired and those deemed performing. To make this determination, management considers such factors as past due status, non-accrual status and credit risk ratings. The fair value of acquired performing loans is determined by discounting expected cash flows, both principal and interest, at prevailing market interest rates. The difference between the fair value and principal balances at acquisition date, the fair value discount, is accreted into interest income over the estimated life of each loan.

Purchased credit impaired loans are those loans that showed evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all amounts contractually owed. Their acquisition fair value, which includes a credit component at the acquisition date, was based on the estimate of cash flows, both principal and interest, expected to be collected or estimated collateral values if cash flows are not estimable, discounted at prevailing market rates of interest. The difference between the discounted cash flows expected at acquisition and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan, unless management was unable to reasonably forecast cash flows in which case the loans were placed on nonaccrual. Contractually required payments for interest and principal that exceed the cash flows expected at acquisition are not recognized as a yield adjustment. Increases in expected cash flows

16

subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows subsequent to acquisition are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. The carrying amount of purchased credit impaired loans at June 30, 2015 and 2014, and December 31, 2014 was $1,123,000, $2,519,000 and $2,151,000, respectively, compared to a contractual balance of $1,648,000, $3,754,000, and $3,275,000, respectively. Other purchased credit impaired loan disclosures were omitted due to immateriality.

Loans held-for-investment by class of financing receivables are as follows (in thousands):

	June 30,				December 31,
	2015		2014		2014
Commercial	$	649,909	$	617,925	$	639,954
Agricultural		92,317		75,133		105,694
Real estate		1,838,488		1,733,604		1,822,854
Consumer		361,510		346,412		360,686
Total loans held-for-investment	$	2,942,224	$	2,773,074	$	2,929,188

Loans held for sale totaled $25,544,000, $13,570,000 and $8,803,000 at June 30, 2015 and 2014, and December 31, 2014, respectively, which were recorded at cost as fair value approximated cost.

The Company’s non-accrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands):

	June 30,				December 31,
	2015		2014		2014
Non-accrual loans*	$	16,854	$	23,565	$	20,194
Loans still accruing and past due 90 days or more		64		123		261
Troubled debt restructured loans**		172		—		226
Total	$	17,090	$	23,688	$	20,681

* Includes $1,123,000, $2,519,000 and $2,151,000 of purchased credit impaired loans as of June 30, 2015 and 2014, and December 31, 2014, respectively.

** Troubled debt restructured loans of $6,936,000, $10,810,000 and $9,073,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at June 30, 2015 and 2014, and December 31, 2014, respectively.

The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands):

June 30, 2015				June 30, 2014				December 31, 2014
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	16,854	$	3,866	$	23,565	$	4,883	$	20,194	$	4,213

17

The average recorded investment in impaired loans for the three and six months ended June 30, 2015 and the year ended December 31, 2014 was approximately $16,877,000, $18,387,000 and $24,497,000, respectively. The Company had $18,135,000, $26,030,000 and $21,716,000 in non-accrual, past due 90 days or more and still accruing and restructured loans and foreclosed assets at June 30, 2015 and 2014, and December 31, 2014, respectively. Non-accrual loans at June 30, 2015 and 2014, and December 31, 2014, consisted of the following by class of financing receivables (in thousands):

	June 30,				December 31,
	2015		2014		2014
Commercial	$	3,606	$	3,640	$	3,193
Agricultural		118		109		165
Real estate		12,570		19,027		16,218
Consumer		560		789		618
Total	$	16,854	$	23,565	$	20,194

No significant additional funds are committed to be advanced in connection with impaired loans as of June 30, 2015.

The Company’s impaired loans and related allowance as of June 30, 2015 and 2014, and December 31, 2014, are summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.

June 30, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	4,168	$	263	$	3,343	$	3,606	$	1,168	$	3,717	$	3,298
Agricultural		163		—		118		118		87		148		136
Real Estate		18,711		2,921		9,649		12,570		2,506		13,817		12,876
Consumer		784		367		193		560		105		705		567
Total	$	23,826	$	3,551	$	13,303	$	16,854	$	3,866	$	18,387	$	16,877

* Includes $1,123,000 of purchased credit impaired loans.

June 30, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	4,095	$	271	$	3,369	$	3,640	$	1,161	$	4,083	$	3,224
Agricultural		121		—		109		109		41		118		101
Real Estate		24,619		5,626		13,401		19,027		3,497		21,442		20,920
Consumer		960		442		347		789		184		879		759
Total	$	29,795	$	6,339	$	17,226	$	23,565	$	4,883	$	26,522	$	25,004

* Includes $2,519,000 of purchased credit impaired loans.

December 31, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,749	$	287	$	2,906	$	3,193	$	1,171	$	3,698
Agricultural		177		—		165		165		57		179
Real Estate		22,177		4,859		11,359		16,218		2,867		19,837
Consumer		838		420		198		618		118		783
Total	$	26,941	$	5,566	$	14,628	$	20,194	$	4,213	$	24,497

* Includes $2,151,000 of purchased credit impaired loans.

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The Company recognized interest income on impaired loans prior to being classified as impaired of approximately $162,000 during the year ended December 31, 2014. Such amounts for the three-month and six-month periods ended June 30, 2015 and 2014 were not significant.

From a credit risk standpoint, the Company rates its loans in one of four categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans rated as loss are charged-off.

The ratings of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on our credits as part of our on-going monitoring of the credit quality of our loan portfolio. Ratings are adjusted to reflect the degree of risk and loss that are felt to be inherent in each credit as of each reporting period. Our methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

Credits rated special mention show clear signs of financial weakness or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual.

The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which are the same, at June 30, 2015 and 2014, and December 31, 2014 (in thousands):

June 30, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,071	$	25,438	$	13,400	$	—	$	649,909
Agricultural		91,657		159		501		—		92,317
Real Estate		1,783,633		21,504		33,308		43		1,838,488
Consumer		360,094		308		1,108		—		361,510
Total	$	2,846,455	$	47,409	$	48,317	$	43	$	2,942,224

June 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	605,163	$	3,678	$	9,084	$	—	$	617,925
Agricultural		74,734		102		296		1		75,133
Real Estate		1,668,844		16,628		48,001		131		1,733,604
Consumer		344,403		522		1,483		4		346,412
Total	$	2,693,144	$	20,930	$	58,864	$	136	$	2,773,074

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December 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	626,266	$	3,853	$	9,835	$	—	$	639,954
Agricultural		105,101		91		502		—		105,694
Real Estate		1,765,886		15,106		41,722		140		1,822,854
Consumer		358,953		403		1,329		1		360,686
Total	$	2,856,206	$	19,453	$	53,388	$	141	$	2,929,188

At June 30, 2015 and 2014, and December 31, 2014, the Company’s past due loans are as follows (in thousands):

June 30, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	7,854	$	38	$	12	$	7,904	$	642,005	$	649,909	$	—
Agricultural		270		—		—		270		92,047		92,317		—
Real Estate		13,458		1,255		1,933		16,646		1,821,842		1,838,488		47
Consumer		1,507		342		98		1,947		359,563		361,510		17
Total	$	23,089	$	1,635	$	2,043	$	26,767	$	2,915,457	$	2,942,224	$	64

June 30, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	7,290	$	51	$	248	$	7,589	$	610,336	$	617,925	$	23
Agricultural		134		14		—		148		74,985		75,133		—
Real Estate		16,781		823		1,973		19,577		1,714,027		1,733,604		83
Consumer		1,470		443		153		2,066		344,346		346,412		17
Total	$	25,675	$	1,331	$	2,374	$	29,380	$	2,743,694	$	2,773,074	$	123

December 31, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,611	$	94	$	175	$	4,880	$	635,074	$	639,954	$	24
Agricultural		437		42		—		479		105,215		105,694		—
Real Estate		12,002		707		1,868		14,577		1,808,277		1,822,854		207
Consumer		2,322		496		134		2,952		357,734		360,686		30
Total	$	19,372	$	1,339	$	2,177	$	22,888	$	2,906,300	$	2,929,188	$	261

* 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.

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The following table details the allowance for loan losses at June 30, 2015 and 2014, and December 31, 2014 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at June 30, 2015 and 2014, or December 31, 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,168	$	87	$	2,506	$	105	$	3,866
Loans collectively evaluated for impairment		10,288		305		21,836		2,704		35,133
Total	$	11,456	$	392	$	24,342	$	2,809	$	38,999
June 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,161	$	41	$	3,497	$	184	$	4,883
Loans collectively evaluated for impairment		5,700		323		23,064		1,922		31,009
Total	$	6,861	$	364	$	26,561	$	2,106	$	35,892
December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,171	$	57	$	2,867	$	118	$	4,213
Loans collectively evaluated for impairment		6,819		470		23,790		1,532		32,611
Total	$	7,990	$	527	$	26,657	$	1,650	$	36,824

The tables above for 2014 have been changed to conform to the 2015 presentation.

Changes in the allowance for loan losses for the three and six months ended June 30, 2015 and 2014 are summarized as follows by portfolio segment (in thousands):

Three months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828
Provision for loan losses		1,324			(27	)		(1,048	)		1,305			1,554
Recoveries		117			—			302			141			560
Charge-offs		(360	)		(54	)		(151	)		(378	)		(943	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999
Three months ended June 30, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,645		$	285		$	25,629		$	2,134		$	34,693
Provision for loan losses		219			78			835			(8	)		1,124
Recoveries		65			1			132			178			376
Charge-offs		(68	)		—			(35	)		(198	)		(301	)
Ending balance	$	6,861		$	364		$	26,561		$	2,106		$	35,892
Six months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		3,789			(59	)		(2,515	)		1,629			2,844
Recoveries		197			2			373			212			784
Charge-offs		(520	)		(78	)		(173	)		(682	)		(1,453	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999

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Six months ended June 30, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,440		$	383		$	24,940		$	2,137		$	33,900
Provision for loan losses		554			(21	)		2,068			213			2,814
Recoveries		154			3			319			300			776
Charge-offs		(287	)		(1	)		(766	)		(544	)		(1,598	)
Ending balance	$	6,861		$	364		$	26,561		$	2,106		$	35,892

The Company’s recorded investment in loans as of June 30, 2015 and 2014, and December 31, 2014 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology was as follows (in thousands). Purchased credit impaired loans of $1,123,000, $2,519,000 and $2,151,000 at June 30, 2015 and 2014, and December 31, 2014, respectively, are included in loans individually evaluated for impairment.

June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,606	$	118	$	12,570	$	560	$	16,854
Loans collectively evaluated for impairment		646,303		92,199		1,825,918		360,950		2,925,370
Total	$	649,909	$	92,317	$	1,838,488	$	361,510	$	2,942,224
June 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,640	$	109	$	19,027	$	789	$	23,565
Loans collectively evaluated for impairment		614,285		75,024		1,714,577		345,623		2,749,509
Total	$	617,925	$	75,133	$	1,733,604	$	346,412	$	2,773,074
December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,193	$	165	$	16,218	$	618	$	20,194
Loans collectively evaluated for impairment		636,761		105,529		1,806,636		360,068		2,908,994
Total	$	639,954	$	105,694	$	1,822,854	$	360,686	$	2,929,188

The tables above for 2014 have been changed to conform to the 2015 presentation.

The Company’s loans that were modified in the three and six months ended June 30, 2015 and 2014 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		2	$	74	$	74		2	$	74	$	74
Agricultural		—		—		—		3		128		128
Real Estate		2		336		336		2		336		336
Consumer		2		4		4		3		28		28
Total		6	$	414	$	414		10	$	566	$	566

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	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Number		Pre- Modification Recorded Investment		Combined   Rate and Maturity		Number		Pre- Modification Recorded Investment		Combined   Rate and Maturity
Commercial		1	$	302	$	302		5	$	399	$	399
Agricultural		1		39		39		1		39		39
Real Estate		3		514		514		4		590		590
Consumer		—		—		—		3		11		11
Total		5	$	855	$	855		13	$	1,039	$	1,039

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three and six months ended June 30, 2015 and 2014 (in thousands):

	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	74	$	—	$	—	$	74	$	—
Agricultural		—		—		—		—		128		—
Real Estate		257		—		79		257		—		79
Consumer		—		4		—		—		4		24
Total	$	257	$	78	$	79	$	257	$	206	$	103
	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	—	$	302	$	—	$	97	$	302
Agricultural		—		—		39		—		—		39
Real Estate		—		42		472		—		118		472
Consumer		—		—		—		—		8		3
Total	$	—	$	42	$	813	$	—	$	223	$	816

During the three months ended June 30, 2014, one loan was modified as troubled debt restructured loan within the previous 12 months and for which there was a payment default. There were no such defaults in the three months ended June 30, 2015. During the six months ended June 30, 2015 and 2014, one loan was modified in each six-month period as a troubled debt restructured loan within the previous 12 months and for which there was a payment default. A default for purposes of this disclosure is a troubled debt restructured loan in which the borrower is 90 days past due or more or results in the foreclosure and repossession of the applicable collateral. The loans with payment default are as follows (dollars in thousands):

	Six Months Ended June 30, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

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	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Number		Balance		Number		Balance
Commercial		—	$	—		—	$	—
Agriculture		—		—		—		—
Real Estate		—		—		—		—
Consumer		1		32		1		32
Total		1	$	32		1	$	32

As of June 30, 2015, the Company has no commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings.

Our subsidiary bank has established a line of credit with the Federal Home Loan Bank of Dallas (FHLB) to provide liquidity and meet pledging requirements for those customers eligible to have securities pledged to secure certain uninsured deposits. At June 30, 2015, $1,720,486,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At June 30, 2015, $265,036,000 in advances and $5,000,000 in letters of credit were outstanding under this line of credit. The letters of credit were pledged as collateral for public funds held by our bank subsidiary.

Note 6 – Short-Term Borrowings

Short-Term borrowings at June 30, 2015 and 2014, and December 31, 2014 consisted of the following (dollars in thousands):

	June 30,				December 31,
	2015		2014		2014
Securities sold under agreements with customers to repurchase	$	346,369	$	312,893	$	357,400
Federal funds purchased		9,750		10,625		8,700
Advances from Federal Home Loan Bank of Dallas		265,036		111,065		1,010
Total	$	621,155	$	434,583	$	367,110

Securities sold under repurchase agreements are generally with significant customers of the Company that require short-term liquidity for their funds for which the Company pledges certain securities that have a fair value equal to at least the amount of the short-term borrowings. The agreements mature daily and therefore the risk arising from a decline in the fair value of the collateral pledged is minimal. The securities pledged are mortgage-backed securities. These agreements do not include “right of set-off” provisions and therefore the Company does not offset such agreements for financial reporting purposes.

Note 7 - Income Taxes

Income tax expense was $8,080,000 for the second quarter of 2015 as compared to $6,758,000 for the same period in 2014. The Company’s effective tax rates on pretax income were 24.20% and 24.17% for the second quarters of 2015 and 2014, respectively. Income tax expense was $15,845,000 for the six months ended June 2015 as compared to $13,863,000 for the same period in 2014. The Company’s effective tax rates on pretax income were 24.32% and 24.15% for the six months ended June 2015 and 2014, respectively. The effective tax rates differ from the statutory federal tax rate of 35% primarily due to tax exempt interest income earned on certain investment securities and loans and the deductibility of dividends paid to our employee stock ownership plan.

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Note 8 - Stock Based Compensation

The Company grants incentive stock options for a fixed number of shares with an exercise price equal to the fair value of the shares at the date of grant to employees. Through June 30, 2015, no options have been granted in 2015 and no options were granted in 2014. The Company recorded stock option expense totaling $182,000 and $212,000 for the three months ended June 30, 2015 and 2014, respectively. The Company recorded stock option expense totaling $360,000 and $357,000 for the six months ended June 30, 2015 and 2014, respectively. The additional disclosure requirements under authoritative accounting guidance have been omitted due to immateriality.

On April 28, 2015, shareholders of the Company approved a restricted stock plan for selected employees, officers, non-employee directors and consultants. On July 21, 2015, 7,070 shares were granted to the ten non-employee directors. Total value of these shares totaled $250,000 and will be expensed over the period from grant date to April 26, 2016, the next scheduled annual shareholders’ meeting whereby the directors term will expire.

Note 9 - Pension Plan

The Company’s defined benefit pension plan was frozen effective January 1, 2004, whereby no new participants will be added to the plan and no additional years of service will accrue to participants, unless the pension plan is reinstated at a future date. The pension plan covered substantially all of the Company’s employees at the time. The benefits for each employee were based on years of service and a percentage of the employee’s qualifying compensation during the final years of employment. The Company’s funding policy was and is to contribute annually the amount necessary to satisfy the Internal Revenue Service’s funding standards. Contributions to the pension plan, prior to freezing the plan, were intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. As a result of the Pension Protection Act of 2006 (the “Protection Act”), the Company will be required to contribute amounts in future years to fund any shortfalls. The Company has evaluated the provisions of the Protection Act as well as the Internal Revenue Service’s funding standards to develop a plan for funding in future years. The Company made a contribution totaling $250,000 in 2014 and has to date made no contributions in 2015.

During the fourth quarter of 2014, as permitted by the Internal Revenue Service, the Company offered settlement of a portion of its pension obligations to those plan participants who no longer were employed by the Company. As a result of the partial settlement of the plan, the Company recognized in the fourth quarter of 2014 $2,909,000, in pension expense, before income tax. The effect of this transaction was relatively neutral to shareholders’ equity since the recorded pension obligation associated with the plan participants who accepted the settlement closely approximated the amount offered to such plan participants and the amount recognized in pension expense had been previously recognized as unrealized losses in other comprehensive earnings. As a result, the Company paid $10,626,000 out of pension plan assets, or approximately 43% of the total outstanding obligation balance, to plan participants and the number of participants was reduced by 335, or 44%. The Company’s investment risk and administrative expense associated with the Company’s pension plan should be significantly reduced going forward.

Net periodic benefit costs totaling $74,000 and $84,000 were recorded for the three months ended June 30, 2015 and 2014, respectively. Net periodic benefit costs totaling $149,000 and $214,000 were recorded for the six months ended June 30, 2015 and 2014, respectively.

Note 10 - Fair Value Disclosures

The authoritative accounting guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous)

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market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact.

The authoritative accounting guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

• 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.

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Securities classified as available-for-sale and trading are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market spreads, cash flows, the United States Treasury yield curve, live trading levels, trade execution data, dealer quotes, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other items.

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There were no transfers between Level 2 and Level 3 during the three and six months ended June 30, 2015 or 2014.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2015 and 2014, and December 31, 2014, respectively, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

June 30, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,936	$	—	$	—	$	10,936
Obligations of U. S. government sponsored-enterprises and agencies		—		165,336		—		165,336
Obligations of states and political subdivisions		—		1,384,246		—		1,384,246
Corporate bonds		—		92,188		—		92,188
Residential mortgage-backed securities		—		868,091		—		868,091
Commercial mortgage-backed securities		—		203,396		—		203,396
Other securities		4,920		—		—		4,920
Total	$	15,856	$	2,713,257	$	—	$	2,729,113
June 30, 2014
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
Obligations of U. S. government sponsored-enterprises and agencies	$	—	$	120,117	$	—	$	120,117
Obligations of states and political subdivisions		—		1,074,658		—		1,074,658
Corporate bonds		—		95,940		—		95,940
Residential mortgage-backed securities		—		745,473		—		745,473
Commercial mortgage-backed securities		—		132,840		—		132,840
Other securities		4,800		—		—		4,800
Total	$	4,800	$	2,169,028	$	—	$	2,173,828

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December 31, 2014
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	520	$	—	$	—	$	520
Obligations of U. S. government sponsored-enterprises and agencies		—		129,755		—		129,755
Obligations of states and political subdivisions		—		1,167,628		—		1,167,628
Corporate bonds		—		94,065		—		94,065
Residential mortgage-backed securities		—		885,211		—		885,211
Commercial mortgage-backed securities		—		133,984		—		133,984
Other securities		4,693		—		—		4,693
Total	$	5,213	$	2,410,643	$	—	$	2,415,856

The tables above for 2014 has been changed to conform to the 2015 presentation.

Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis include the following at June 30, 2015:

Impaired Loans – Impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based on observable market data. At June 30, 2015, impaired loans with a carrying value of $16,854,000 were reduced by specific valuation reserves totaling $3,866,000 resulting in a net fair value of $12,988,000.

Loans Held-for-Sale – Loans held-for-sale are reported at the lower of cost or fair value. In determining whether the fair value of loans held-for-sale is less than cost when quoted market prices are not available, the Company considers investor commitments/contracts. These loans are considered Level 2 of the fair value hierarchy. At June 30, 2015, the Company’s mortgage loans held-for-sale were recorded at cost as fair value approximated cost.

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Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include other real estate owned, goodwill and other intangible assets and other non-financial long-lived assets. Non-financial assets measured at fair value on a non-recurring basis during the three and six months ended June 30, 2015 and 2014 include other real estate owned which, subsequent to their initial transfer to other real estate owned from loans, were re-measured at fair value through a write-down included in gain (loss) on sale of foreclosed assets. During the reported periods, all fair value measurements for foreclosed assets utilized Level 2 inputs based on observable market data, generally third-party appraisals, or Level 3 inputs based on customized discounting criteria. These appraisals are evaluated individually and discounted as necessary due to the age of the appraisal, lack of comparable sales, expected holding periods of property or special use type of the property. Such discounts vary by appraisal based on the above factors but generally range from 5% to 25% of the appraised value. Reevaluation of other real estate owned is performed at least annually as required by regulatory guidelines or more often if particular circumstances arise. The following table presents other real estate owned that were re-measured subsequent to their initial transfer to other real estate owned (dollars in thousands):

	Three Months Ended June 30,
	2015			2014
Carrying value of other real estate owned prior to re-measurement	$	341		$	708
Write-downs included in gain (loss) on sale of other real estate owned		(85	)		(89	)
Fair value	$	256		$	619
	Six Months Ended June 30,
	2015			2014
Carrying value of other real estate owned prior to re-measurement	$	351		$	708
Write-downs included in gain (loss) on sale of other real estate owned		(95	)		(89	)
Fair value	$	256		$	619

At June 30, 2015 and 2014, and December 31, 2014, other real estate owned totaled $635,000, $2,208,000 and $943,000, respectively.

The Company is required under current authoritative accounting guidance to disclose the estimated fair value of their financial instrument assets and liabilities including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction.

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

Cash and due from banks, federal funds sold, interest-bearing deposits and time deposits in banks and accrued interest receivable and payable are liquid in nature and considered Levels 1 or 2 of the fair value hierarchy.

Financial instruments with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market for similar assets and liabilities and are considered Levels 2 and 3 of the fair value hierarchy. Financial instrument liabilities with no stated maturities have an estimated fair value equal to both the amount payable on demand and the carrying value and are considered Level 1 of the fair value hierarchy.

The carrying value and the estimated fair value of the Company’s contractual off-balance-sheet unfunded lines of credit, loan commitments and letters of credit, which are generally priced at market at the time of funding, are not material.

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The estimated fair values and carrying values of all financial instruments under current authoritative guidance at June 30, 2015 and 2014, and December 31, 2014, were as follows (in thousands):

	June 30,				June 30,				December 31,
	2015				2014				2014
	Carrying		Estimated		Carrying		Estimated		Carrying		Estimated		Fair Value
	Value		Fair Value		Value		Fair Value		Value		Fair Value		Hierarchy
Cash and due from banks	$	149,524	$	149,524	$	166,237	$	166,237	$	190,387	$	190,387	Level 1
Federal funds sold		5,720		5,720		3,110		3,110		8,760		8,760	Level 1
Interest-bearing deposits in banks		18,179		18,179		68,331		68,331		54,324		54,324	Level 1
Interest-bearing time deposits in banks		5,456		5,466		24,188		24,266		17,002		17,032	Level 2
Available-for-sale securities		2,729,113		2,729,113		2,173,828		2,173,828		2,415,856		2,415,856	Levels 1 and 2
Held-to-maturity securities		295		301		568		576		441		447	Level 2
Loans		2,928,769		2,935,344		2,750,752		2,764,118		2,901,167		2,906,399	Level 3
Accrued interest receivable		32,003		32,003		27,583		27,583		28,998		28,998	Level 2
Deposits with stated maturities		598,404		600,093		692,937		695,006		648,992		650,893	Level 2
Deposits with no stated maturities		4,129,015		4,129,015		3,625,521		3,625,521		4,101,263		4,101,263	Level 1
Short-term borrowings		621,155		621,155		434,583		434,583		367,110		367,110	Level 2
Accrued interest payable		242		242		291		291		237		237	Level 2

Note 11 - Recently Issued Authoritative Accounting Guidance

In 2014, the Financial Accounting Standards Board (the “FASB”) amended its authoritative guidance related to residential real estate to clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The new guidance was effective for the Company on January 1, 2015 and did not have a significant impact to the Company’s financial statements.

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In 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede substantially all existing revenue recognition guidance. The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new standard will be effective in the first quarter of 2017. The Company is continuing to evaluate the potential impact to the Company’s financial statements.

In 2014, the FASB amended its authoritative guidance related to repurchase-to-maturity transactions to require that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, the amendment requires separate accounting for repurchase financings, which entails the transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. The amendment requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, the amendment requires disclosures related to collateral, remaining contractual term and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. The amendment was effective for the Company on January 1, 2015 and did not have a significant impact on the Company’s financial statements.

In 2015, the FASB eliminated from U.S. GAAP the concept of extraordinary items, which, among other things, required an entity to show the item separately in the income statement, net of tax, after income from continuing operations. The new guidance is effective for the Company beginning January 1, 2016, though early adoption is permitted, and is not expected to have a significant impact on the Company’s financial statements.

Note 12 – Acquisition and Asset Purchase

On April 1, 2015, the Company announced that it has entered into a definitive agreement to acquire FBC Bancshares, Inc. and its wholly owned bank subsidiary, First Bank, N.A., Conroe, Texas for a purchase price of $61,000,000 to be paid in stock of the Company and calculated in accordance with the terms of the definitive agreement. At June 30, 2015, First Bank, N.A. had gross loans totaling $257,046,000, total deposits of $339,423,000 and total assets of $372,188,000. The acquisition was consummated on July 31, 2015.

On April 8, 2015, the Company announced that it had entered into an asset purchase agreement with 4Trust Mortgage, Inc. for a cash purchase price of $1,900,000. The acquisition was finalized on May 31, 2015.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this Form 10-Q, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project,” and similar expressions, as they relate to us or management, identify forward-looking statements. These forward-looking statements are based on information currently available to our management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited, to those listed in “Item 1A- Risk Factors” in our Annual Report on Form 10-K and the following:

• general economic conditions, including our local, state and national real estate markets and employment trends;

• volatility and disruption in national and international financial markets;

• government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau and the capital ratios of Basel III as adopted by the federal banking authorities;

• political instability;

• the ability of the Federal government to address the national economy and the fiscal cliff;

• competition from other financial institutions and financial holding companies;

• 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”);

• changes in the demand for loans;

• fluctuations in the value of collateral securing our loan portfolio and in the level of the allowance for loan losses;

• the accuracy of our estimates of future loan losses;

• the accuracy of our estimates and assumptions regarding the performance of our securities portfolio;

• soundness of other financial institutions with which we have transactions;

• inflation, interest rate, market and monetary fluctuations;

• changes in consumer spending, borrowing and savings habits;

• changes in commodity prices (i.e. oil and gas, cattle and wind energy);

• our ability to attract deposits;

• changes in our liquidity position;

• changes in the reliability of our vendors, internal control system or information systems;

• our ability to attract and retain qualified employees;

• acquisitions and integration of acquired businesses;

• the possible impairment of goodwill associated with our acquisitions;

• consequences of continued bank mergers and acquisitions in our market area, resulting in fewer but much larger and stronger competitors;

• expansion of operations, including branch openings, new product offerings and expansion into new markets;

• changes in compensation and benefit plans; and

• acts of God or of war or terrorism.

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Such forward-looking statements reflect the current views of our management with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this paragraph. We undertake no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise (except as required by law).

Introduction

As a financial holding company, we generate most of our revenue from interest on loans and investments, trust fees, and service charges. Our primary source of funding for our loans and investments are deposits held by our subsidiary, First Financial Bank, National Association, Abilene, Texas. Our largest expense is salaries and related employee benefits. We usually measure our performance by calculating our return on average assets, return on average equity, our regulatory leverage and risk based capital ratios and our efficiency ratio, which is calculated by dividing noninterest expense by the sum of net interest income on a tax equivalent basis and noninterest income.

The following discussion and analysis of operations and financial condition should be read in conjunction with the financial statements and accompanying footnotes included in Item 1 of this Form 10-Q as well as those included in the Company’s 2014 Annual Report on Form 10-K.

Critical Accounting Policies

We prepare consolidated financial statements based on generally accepted accounting principles and customary practices in the banking industry. These policies, in certain areas, require us to make significant estimates and assumptions.

We deem a policy critical if (1) the accounting estimate required us to make assumptions about matters that are highly uncertain at the time we make the accounting estimate; and (2) different estimates that reasonably could have been used in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have a material impact on the financial statements.

We deem our most critical accounting policies to be (1) our allowance for loan losses and our provision for loan losses and (2) our valuation of securities. We have other significant accounting policies and continue to evaluate the materiality of their impact on our consolidated financial statements, but we believe these other policies either do not generally require us to make estimates and judgments that are difficult or subjective, or it is less likely they would have a material impact on our reported results for a given period. A discussion of (1) our allowance for loan losses and our provision for loan losses and (2) our valuation of securities is included in note 5 and note 4, respectively, to our notes to consolidated financial statements (unaudited) which begins on page 9.

Stock Split

On April 22, 2014, the Company’s Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend effective for shareholders of record on May 15, 2014 that was distributed on June 2, 2014. All share and per share amounts in this report have been restated to reflect this stock split. An amount equal to the par value of the additional common shares issued pursuant to the stock split was reflected as a transfer from retained earnings to common stock on the consolidated financial statements as of and for the six months ended June 30, 2014.

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Results of Operations

Performance Summary. Net earnings for the second quarter of 2015 were $25.31 million compared to $21.21 million for the same quarter in 2014, or a 19.34% increase.

Basic earnings per share for the second quarter of 2015 were $0.39 compared to $0.33 for the same quarter last year, or an 18.18% increase. The return on average assets was 1.67% for the second quarter of 2015, as compared to 1.59% for the same quarter of 2014. The return on average equity was 14.38% for the second quarter of 2015 as compared to 13.46% for the same quarter a year ago.

Net earnings for the six-month period ended June 30, 2015 were $49.30 million compared to $43.54 million for the same period in 2014, or a 13.23% increase.

Basic earnings per share for the first six months of 2015 were $0.77 compared to $0.68 for the same period in 2014, or a 13.24% increase. The return on average assets was 1.66% for the first six months of 2015, unchanged from the same period in 2014. The return on average equity was 14.19% for the first six months of 2015, as compared to 14.22% a year ago.

Net Interest Income. Net interest income is the difference between interest income on earning assets and interest expense on liabilities incurred to fund those assets. Our earning assets consist primarily of loans and investment securities. Our liabilities to fund those assets consist primarily of noninterest-bearing and interest-bearing deposits.

Tax-equivalent net interest income was $57.97 million for the second quarter of 2015, as compared to $52.97 million for the same period last year. The increase in 2015 compared to 2014 was largely attributable to the increase in volume of interest earning assets. Average earning assets increased $714.73 million for the second quarter of 2015 over the same period in 2014. Average loans, taxable securities and tax exempt securities increased $206.48 million, $266.31 million and $257.20 million, respectively, for the second quarter of 2015 over the first quarter of 2014. Average interest bearing liabilities increased $461.71 million for the second quarter of 2015, as compared to the same period in 2014. The yield on earning assets decreased 19 basis points during the second quarter of 2015, whereas the rate paid on interest-bearing liabilities decreased 2 basis points in the second quarter of 2015 primarily due to the effects of lower interest rates.

Tax-equivalent net interest income was $114.28 million for the first six months of 2015, as compared to $104.77 million for the same period last year. The increase in 2015 compared to 2014 was largely attributable to the increase in volume of interest earning assets. Average earning assets increased $704.96 million for the first six months of 2015 over the same period in 2014. Average loans, taxable securities and tax exempt securities increased $224.31 million, $239.20 million and $228.17 million, respectively, for the first six months of 2015 over the same period in 2014. Average interest bearing liabilities increased $414.31 million for the first six month period of 2015, as compared to the same period in 2014. The yield of earning assets decreased 21 basis points during the first six months of 2015, whereas the rate paid on interest-bearing liabilities decreased 2 basis points in the first six months of 2015 primarily due to the effects of lower interest rates.

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Table 1 allocates the change in tax-equivalent net interest income between the amount of change attributable to volume and to rate.

Table 1 - Changes in Interest Income and Interest Expense (in thousands):

	Three Months Ended June 30, 2015 Compared to Three Months Ended June 30, 2014									Six Months Ended June 30, 2015 Compared to Six Months Ended June 30, 2014
	Change Attributable to						Total Change			Change Attributable to					Total Change
	Volume			Rate						Volume		Rate
Short-term investments	$	(24	)	$	(15	)	$	(39	)	$	43	$	(90	)	$	(47	)
Taxable investment securities		1,629			(1,322	)		307			2,973		(1,940	)		1,033
Tax-exempt investment securities (1)		3,123			(614	)		2,509			5,577		(1,313	)		4,264
Loans (1) (2)		2,571			(376	)		2,195			5,583		(1,419	)		4,164
Interest income		7,299			(2,327	)		4,972			14,176		(4,762	)		9,414
Interest-bearing deposits		103			(156	)		(53	)		238		(304	)		(66	)
Short-term borrowings		31			(7	)		24			24		(54	)		(30	)
Interest expense		134			(163	)		(29	)		262		(358	)		(96	)
Net interest income	$	7,165		$	(2,164	)	$	5,001		$	13,914	$	(4,404	)	$	9,510

(1) Computed on a tax-equivalent basis assuming a marginal tax rate of 35%.

(2) Non-accrual loans are included in loans.

The net interest margin for the second quarter of 2015 was 4.07%, a decrease of 17 basis points from the same period in 2014. The net interest margin for the six months ended June 2015 was 4.09%, a decrease of 19 basis points from the same period in 2014. Although interest rates may increase later in 2015 or in 2016 and future years, we expect interest rates to remain at low levels based on comments made by the Federal Reserve, which will continue the downward pressure on our interest margin.

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The net interest margin, which measures tax-equivalent net interest income as a percentage of average earning assets, is illustrated in Table 2.

Table 2 - Average Balances and Average Yields and Rates (in thousands, except percentages):

	Three Months Ended June 30,
	2015								2014
	Average Balance			Income/ Expense		Yield/ Rate			Average Balance			Income/ Expense		Yield/ Rate
Assets
Short-term investments (1)	$	45,024		$	50		0.47	%	$	60,284		$	89		0.64	%
Taxable investment securities (2)		1,425,744			7,398		2.08			1,159,430			7,091		2.45
Tax-exempt investment securities (2)(3)		1,294,809			15,108		4.67			1,037,608			12,599		4.86
Loans (3)(4)		2,954,502			36,423		4.94			2,748,023			34,228		5.00
Total earning assets		5,720,079		$	58,979		4.14	%		5,005,345		$	54,007		4.33	%
Cash and due from banks		139,833								135,431
Bank premises and equipment, net		104,405								96,292
Other assets		47,602								41,749
Goodwill and other intangible assets, net		97,800								97,457
Allowance for loan losses		(38,417	)							(35,278	)
Total assets	$	6,071,302							$	5,340,996
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	3,177,999		$	902		0.11	%	$	2,867,740		$	955		0.13	%
Short-term borrowings		558,367			106		0.08			406,913			82		0.08
Total interest-bearing liabilities		3,736,366		$	1,008		0.11	%		3,274,653		$	1,037		0.13	%
Noninterest-bearing deposits		1,575,193								1,392,387
Other liabilities		53,654								42,287
Total liabilities		5,365,213								4,709,327
Shareholders’ equity		706,089								631,669
Total liabilities and shareholders’ equity	$	6,071,302							$	5,340,996
Net interest income				$	57,971							$	52,970
Rate Analysis:
Interest income/earning assets							4.14	%							4.33	%
Interest expense/earning assets							0.07								0.09
Net yield on earning assets							4.07	%							4.24	%

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	Six Months Ended June 30,
	2015								2014
	Average Balance			Income/ Expense		Yield/ Rate			Average Balance			Income/ Expense		Yield/ Rate
Assets
Short-term investments (1)	$	70,652		$	129		0.38	%	$	57,372		$	176		0.66	%
Taxable investment securities (2)		1,379,664			15,208		2.20			1,140,469			14,175		2.49
Tax-exempt investment securities (2)(3)		1,243,575			29,081		4.68			1,015,401			24,817		4.89
Loans (3)(4)		2,943,216			71,842		4.92			2,718,910			67,678		5.02
Total earning assets		5,637,107		$	116,260		4.16	%		4,932,152		$	106,846		4.37	%
Cash and due from banks		146,554								141,473
Bank premises and equipment, net		104,208								95,998
Other assets		46,737								43,351
Goodwill and other intangible assets, net		97,558								97,474
Allowance for loan losses		(37,872	)							(34,861	)
Total assets	$	5,994,292							$	5,275,587
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	3,199,655		$	1,829		0.12	%	$	2,842,600		$	1,895		0.13	%
Short-term borrowings		473,760			148		0.06			416,505			178		0.09
Total interest-bearing liabilities		3,673,415		$	1,977		0.11	%		3,259,105		$	2,073		0.13	%
Noninterest-bearing deposits		1,567,597								1,360,920
Other liabilities		52,590								38,041
Total liabilities		5,293,602								4,658,066
Shareholders’ equity		700,690								617,521
Total liabilities and shareholders’ equity	$	5,994,292							$	5,275,587
Net interest income				$	114,283							$	104,773
Rate Analysis:
Interest income/earning assets							4.16	%							4.37	%
Interest expense/earning assets							0.07								0.09
Net yield on earning assets							4.09	%							4.28	%

(1) Short-term investments are comprised of Fed Funds sold, interest-bearing deposits in banks and interest-bearing time deposits in banks.

(2) Average balances include unrealized gains and losses on available-for-sale securities.

(3) Computed on a tax-equivalent basis assuming a marginal tax rate of 35%.

(4) Non-accrual loans are included in loans.

Noninterest Income. Noninterest income for the second quarter of 2015 was $17.81 million, an increase of $1.94 million compared to the same quarter in 2014. ATM, interchange and credit card fees increased $691 thousand, real estate mortgage fees increased $605 thousand and trust fees increased $191 thousand in the second quarter of 2015 compared to the same period in 2014. The increases in ATM, interchange and credit card fees are primarily a result of increases in the number of net new accounts and debit cards. The increase in real estate mortgage fees primarily resulted from a stronger mortgage market and the Company’s asset purchase of 4Trust Mortgage, Inc. on May 31, 2015. The increase in trust fees resulted from an increase in assets under management over the prior year offsetting the effect of the decline in oil and gas prices that reduced related trust fees by $264 thousand compared to the same quarter in 2014. The fair value of our trust assets managed, which are not reflected in our consolidated balance sheets, totaled $3.97 billion at June 30, 2015 as compared to $3.63 billion a year ago.

Offsetting these increases was a decrease in service charges on deposit accounts of $153 thousand.

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Noninterest income for the six-month period ended June 30, 2015 was $33.71 million, an increase of $1.43 million over the same period in 2014. ATM, interchange and credit card fees increased $1.22 million, real estate mortgage fees increased $1.01 million and trust fees increased $347 thousand in the first six months of 2015 compared to the same period in 2014. The increases in ATM, interchange and credit card fees are primarily a result of increases in the number of net new accounts and debit cards. The increase in real estate mortgage fees primarily resulted from a stronger mortgage market and the Company’s asset purchase of 4Trust Mortgage, Inc. on May 31, 2015. The increase in trust fees resulted from an increase in assets under management over the prior year offsetting the effect of the decline in oil and gas prices that reduced related trust fees by $507 thousand compared to the prior year comparable six month period.

Offsetting these increases was a decrease in net gains on sales of foreclosed assets of $518 thousand and a decrease in service charges on deposit accounts of $432 thousand. Also included in the noninterest income in the first six months of 2014 was a $605 thousand gain on the settlement of a bank owned life insurance contract.

Table 3 - Noninterest Income (in thousands):

	Three Months Ended June 30,									Six Months Ended June 30,
	2015			Increase (Decrease)			2014			2015			Increase (Decrease)			2014
Trust fees	$	4,740		$	191		$	4,549		$	9,472		$	347		$	9,125
Service charges on deposit accounts		4,021			(153	)		4,174			7,789			(432	)		8,221
ATM, interchange and credit card fees		5,445			691			4,754			10,415			1,218			9,197
Real estate mortgage operations		1,942			605			1,337			3,368			1,007			2,361
Net gain (loss) on sale of available-for-sale securities		239			240			(1	)		244			249			(5	)
Net gain (loss) on sale of foreclosed assets		(49	)		(96	)		47			(19	)		(518	)		499
Other:
Check printing fees		52			5			47			110			6			104
Safe deposit rental fees		117			(1	)		118			304			(4	)		308
Credit life and debt protection fees		223			184			39			358			292			66
Brokerage commissions		186			(43	)		229			366			(92	)		458
Interest on loan recoveries		403			296			107			510			122			388
Gain on sale of assets		(4	)		(48	)		44			1			(46	)		47
Miscellaneous income		494			66			428			789			(719	)		1,508
Total other		1,471			459			1,012			2,438			(441	)		2,879
Total Noninterest Income	$	17,809		$	1,937		$	15,872		$	33,707		$	1,430		$	32,277

Noninterest Expense. Total noninterest expense for the second quarter of 2015 was $35.20 million, an increase of $202 thousand as compared to the same period in 2014. Included in noninterest expense in the second quarter of 2014 was $2.39 million related to a litigation settlement and damages sustained in a hail storm in Abilene. Excluding this amount, noninterest expense for the second quarter of 2015 increased approximately $2.59 million over the same quarter in 2014. An important measure in determining whether a financial institution effectively manages noninterest expense is the efficiency ratio, which is calculated by dividing noninterest expense by the sum of net interest income on a tax-equivalent basis and noninterest income. Lower ratios indicate better efficiency since more income is generated with a lower noninterest expense total. Our efficiency ratio for the second quarter of 2015 was 46.46%, compared to 50.84% from the same period in 2014.

Salaries and employee benefits for the second quarter of 2015 totaled $19.17 million, an increase of $1.90 million compared to 2014. The increase was largely the result of the addition of employees to staff new branches and compliance-related areas, the addition of 4Trust Mortgage, Inc. employees and annual pay increases.

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All other categories of noninterest expense for the second quarter of 2015 totaled $16.03 million, an increase of approximately $700 thousand, excluding the $2.39 million in 2014 previously discussed, as compared to the same quarter in 2014. The largest contributors to the increase were equipment and legal expenses. Equipment expense increased $327 thousand in the second quarter of 2015 over the same quarter in 2014 primarily as a result of the addition of several new branches. Legal costs increased $304 thousand due to additional costs related to the Company’s asset purchase of 4Trust Mortgage, Inc. and the acquisition of First Bank, N.A., Conroe, Texas.

Total noninterest expense for the first six months of 2015 was $69.15 million compared to $67.45 million in the same period of 2014. Our efficiency ratio for the first six months of 2015 was 46.73%, compared to 49.22% from the same period in 2014.

Salaries and employee benefits for the first six months of 2015 totaled $37.44 million, an increase of $2.75 million compared to the same period in 2014. The increase was largely the result of the addition of employees to staff new branches and compliance-related areas, the addition of 4Trust Mortgage, Inc. employees and annual pay increases.

All other categories of noninterest expense for the first six months of 2015 totaled $31.71 million, an increase of approximately $1.34 million, excluding the $2.39 million in 2014 previously discussed, as compared to the same period in 2014. The largest contributor to the increase was legal expense, associated with the Company’s acquisition activities.

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Table 4 - Noninterest Expense (in thousands):

	Three Months Ended June 30,							Six Months Ended June 30,
	2015		Increase (Decrease)			2014		2015		Increase (Decrease)			2014
Salaries	$	14,884	$	1,697		$	13,187	$	28,751	$	2,708		$	26,043
Medical		1,191		(220	)		1,411		2,427		(474	)		2,901
Profit sharing		1,308		313			995		2,549		337			2,212
Pension		74		(10	)		84		149		(65	)		214
401(k) match expense		488		59			429		971		112			859
Payroll taxes		1,046		90			956		2,231		130			2,101
Stock option expense		182		(30	)		212		360		2			358
Total salaries and employee benefits		19,173		1,899			17,274		37,438		2,750			34,688
Net occupancy expense		2,394		121			2,273		4,590		83			4,507
Equipment expense		2,992		327			2,665		5,891		604			5,287
FDIC assessment fees		749		65			684		1,498		155			1,343
ATM, interchange and credit card expense		1,609		(87	)		1,696		3,335		159			3,176
Professional and service fees		1,157		194			963		2,222		178			2,044
Printing, stationery and supplies		471		(83	)		554		1,067		(262	)		1,329
Amortization of intangible assets		72		(2	)		74		162		14			148
Other:
Data processing fees		102		33			69		196		53			143
Postage		409		(9	)		418		829		(3	)		832
Advertising		831		(124	)		955		1,590		(214	)		1,804
Correspondent bank service charges		225		10			215		447		4			443
Telephone		488		(64	)		552		974		(127	)		1,101
Public relations and business development		653		143			510		1,247		210			1,037
Directors’ fees		223		(11	)		234		482		14			468
Audit and accounting fees		397		(2	)		399		821		18			803
Legal fees		519		307			212		1,107		737			370
Regulatory exam fees		252		20			232		511		53			458
Travel		316		77			239		524		87			437
Courier expense		219		6			213		424		59			365
Operational and other losses		283		(2,346	)		2,629		510		(2,568	)		3,078
Other real estate		46		(170	)		216		72		(197	)		269
Other miscellaneous expense		1,624		(102	)		1,726		3,214		(105	)		3,319
Total other		6,587		(2,232	)		8,819		12,948		(1,979	)		14,927
Total Noninterest Expense	$	35,204	$	202		$	35,002	$	69,151	$	1,702		$	67,449

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Balance Sheet Review

Loans. Our portfolio is comprised of loans made to businesses, professionals, individuals, and farm and ranch operations located in the primary trade areas served by our subsidiary bank. Real estate loans represent loans primarily for 1-4 family residences and owner-occupied commercial real estate. The structure of loans in the real estate mortgage area generally provides re-pricing intervals to minimize the interest rate risk inherent in long-term fixed rate loans. As of June 30, 2015, total loans held for investment were $2.94 billion, an increase of $13.04 million, as compared to December 31, 2014. As compared to December 31, 2014, commercial loans increased $9.96 million, agricultural loans decreased $13.38 million, real estate loans increased $15.63 million, and consumer loans increased $824 thousand. Loans averaged $2.95 billion during the second quarter of 2015, an increase of $206.48 million from the prior year second quarter average balances. Loans averaged $2.94 billion during the six-month period ended June 30, 2015, an increase of $224.31 million from the prior year six month average balances.

Table 5 - Composition of Loans (in thousands):

	June 30,				December 31,
	2015		2014		2014
Commercial	$	649,909	$	617,925	$	639,954
Agricultural		92,317		75,133		105,694
Real estate		1,838,488		1,733,604		1,822,854
Consumer		361,510		346,412		360,686
Total loans held-for-investment	$	2,942,224	$	2,773,074	$	2,929,188

At June 30, 2015, our real estate loans represent approximately 62.49% of our loan portfolio and are comprised of (i) 1-4 family residence loans of 47.76%, (ii) commercial real estate loans of 26.52%, generally owner occupied, (iii) other loans, which includes ranches, hospitals and universities, of 13.97%, (iv) residential development and construction loans of 7.43%, which includes our custom and speculation home construction loans and (v) commercial development and construction loans of 4.32%.

Loans held for sale, consisting of secondary market mortgage loans, totaled $25.54 million, $13.57 million and $8.80 million at June 30, 2015 and 2014, and December 31, 2014, respectively, which were recorded at cost as fair value approximated cost.

Asset Quality. The loan portfolio of our bank subsidiary is subject to periodic reviews by our centralized independent loan review group as well as periodic examinations by bank regulatory agencies. Loans are placed on nonaccrual status when, in the judgment of management, the collectability of principal or interest under the original terms becomes doubtful. Nonaccrual, past due 90 days or more and still accruing and restructured loans plus foreclosed assets were $18.14 million at June 30, 2015, as compared to $26.03 million at June 30, 2014 and $21.72 million at December 31, 2014. As a percent of loans and foreclosed assets, these assets were 0.61% at June 30, 2015, as compared to 0.93% at June 30, 2014 and 0.74% at December 31, 2014. As a percent of total assets, these assets were 0.30% at June 30, 2015 as compared to 0.48% at June 30, 2014 and 0.37% at December 31, 2014. We believe the level of these assets to be manageable and are not aware of any material classified credits not properly disclosed as nonperforming at June 30, 2015.

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Table 6 – Non-accrual, Past Due 90 Days or More and Still Accruing, Restructured Loans and Foreclosed Assets (in thousands, except percentages):

	June 30,						December 31,
	2015			2014			2014
Non-accrual loans*	$	16,854		$	23,565		$	20,194
Loans still accruing and past due 90 days or more		64			123			261
Troubled debt restructured loans**		172			—			226
Foreclosed assets		1,045			2,342			1,035
Total		18,135		$	26,030		$	21,716
As a % of loans and foreclosed assets		0.61	%		0.93	%		0.74	%
As a % of total assets		0.30	%		0.48	%		0.37	%

* Includes $1.12 million, $2.52 million and $2.15 million of purchased credit impaired loans as of June 30, 2015 and 2014, and December 31, 2014, respectively.

** Troubled debt restructured loans of $6.94 million, $10.81 million and $9.07 million, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at June 30, 2015 and 2014, and December 31, 2014, respectively.

We record interest payments received on non-accrual loans as reductions of principal. Prior to the loans being placed on non-accrual, we recognized interest income on impaired loans as of December 31, 2014 of approximately $97 thousand during the year ended December 31, 2014. If interest on these impaired loans had been recognized on a full accrual basis during the year ended December 31, 2014, such income would have approximated $1.58 million. Such amounts for the 2015 and 2014 interim periods were insignificant.

Provision and Allowance for Loan Losses. The allowance for loan losses is the amount we determine as of a specific date to be appropriate to absorb probable losses on existing loans in which full collectability is unlikely based on our review and evaluation of the loan portfolio. For a discussion of our methodology, see note 5 to our notes to the consolidated financial statements (unaudited). The provision for loan losses was $1.55 million for the second quarter of 2015, as compared to $1.12 million for the second quarter of 2014. The provision for loan losses was $2.84 million for the six month period ended June 30, 2015, as compared to $2.81 million for the same period in 2014. The continued provision for loan losses in 2015 and 2014 reflects the overall growth in loans and continuing levels of nonperforming and classified assets, including those related to the oil and gas industry. The Company’s direct exposure to the oil and gas industry remained at approximately 3% of total loans at June 30, 2015, consistent with December 31, 2014 year-end levels. As a percent of average loans, net loan charge-offs were 0.05% for the second quarter of 2015 compared to a net recovery of 0.01% during the second quarter of 2014. As a percent of average loans, net loan charge-offs were 0.05% for the first six months of 2015, compared to 0.06% for the first six months of 2014. The allowance for loan losses as a percent of loans was 1.31% as of June 30, 2015, as compared to 1.25% as of December 31, 2014 and 1.29% as of June 30, 2014. Included in Table 7 is further analysis of our allowance for loan losses.

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Table 7 - Loan Loss Experience and Allowance for Loan Losses (in thousands, except percentages):

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Allowance for loan losses at period-end	$	38,999		$	35,892		$	38,999		$	35,892
Loans held for investment at period-end		2,942,224			2,773,074			2,942,224			2,773,074
Average loans for period		2,954,502			2,748,023			2,943,216			2,718,910
Net charge-offs/average loans (annualized)		0.05	%		(0.01	)%		0.05	%		0.06	%
Allowance for loan losses/period-end loans		1.31	%		1.29	%		1.31	%		1.29	%
Allowance for loan losses/non-accrual loans, past due 90 days still accruing and restructured loans		228.20	%		151.52	%		228.20	%		151.52	%

Interest-Bearing Deposits in Banks. At June 30, 2015, our interest-bearing deposits in banks were $23.64 million compared with $92.52 million and $71.33 million as of June 30, 2014 and December 31, 2014, respectively. At June 30, 2015, interest-bearing deposits in banks included $5.46 million invested in FDIC-insured certificates of deposit, $18.03 million maintained at the Federal Reserve Bank of Dallas and $150 thousand on deposit with the Federal Home Loan Bank of Dallas (“FHLB”).

Available-for-Sale and Held-to-Maturity Securities. At June 30, 2015, securities with a fair value of $2.73 billion were classified as securities available-for-sale and securities with an amortized cost of $295 thousand were classified as securities held-to-maturity. As compared to December 31, 2014, the available-for-sale portfolio at June 30, 2015 reflected (i) an increase of $35.58 million in obligations of U.S. government sponsored enterprises and agencies, (ii) an increase of $216.62 million in obligations of states and political subdivisions, (iii) a decrease of $1.65 million in corporate bonds and other, (iv) an increase of $52.29 million in mortgage-backed securities and (v) an increase of $10.42 million in U.S. Treasury securities. Our mortgage related securities are backed by GNMA, FNMA or FHLMC or are collateralized by securities backed by these agencies.

See note 4 to the consolidated financial statements (unaudited) for additional disclosures relating to the maturities and fair values of the investment portfolio at June 30, 2015 and December 31, 2014.

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Table 8 - Maturities and Yields of Available-for-Sale Securities Held at June 30, 2015 (in thousands, except percentages):

	Maturing
	One Year or Less					After One Year Through Five Years					After Five Years Through Ten Years					After Ten Years					Total
Available-for-Sale:	Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield			Amount		Yield
U.S. Treasury securities	$	—		—	%	$	10,936		1.12	%	$	—		—	%	$	—		—	%	$	10,936		1.12	%
Obligations of U.S. government sponsored enterprises and agencies		41,682		1.25			123,654		1.27			—		—			—		—			165,336		1.27
Obligations of states and political subdivisions		64,313		4.19			534,955		5.12			767,300		4.91			17,678		5.84			1,384,246		4.97
Corporate bonds and other securities		29,186		1.73			67,922		2.85			—		—			—		—			97,108		2.51
Mortgage-backed securities		1,997		4.52			800,783		2.26			268,505		2.54			202		2.58			1,071,487		2.33
Total	$	137,178		2.78	%	$	1,538,250		3.19	%	$	1,035,805		4.30	%	$	17,880		5.80	%	$	2,729,113		3.61	%

Amounts for held-to-maturity securities are not included herein due to insignificance.

All yields are computed on a tax-equivalent basis assuming a marginal tax rate of 35%. Yields on available-for-sale securities are based on amortized cost. Maturities of mortgage-backed securities are based on contractual maturities and could differ due to prepayments of underlying mortgages. Maturities of other securities are reported at the earlier of maturity date or call date.

As of June 30, 2015, the investment portfolio had an overall tax equivalent yield of 3.61%, a weighted average life of 4.52 years and modified duration of 4.01 years.

Deposits. Deposits held by our subsidiary bank represent our primary source of funding. Total deposits were $4.73 billion as of June 30, 2015, as compared to $4.32 billion as of June 30, 2014 and $4.75 billion as of December 31, 2014. Table 9 provides a breakdown of average deposits and rates paid for the three and six-month periods ended June 30, 2015 and 2014.

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Table 9 — Composition of Average Deposits (in thousands, except percentages):

	Three Months Ended June 30,
	2015					2014
	Average Balance		Average Rate			Average Balance		Average Rate
Noninterest-bearing deposits	$	1,575,193		—	%	$	1,392,387		—	%
Interest-bearing deposits:
Interest-bearing checking		1,576,109		0.09			1,306,105		0.11
Savings and money market accounts		993,008		0.05			873,452		0.06
Time deposits under $100,000		254,032		0.20			284,275		0.23
Time deposits of $100,000 or more		354,850		0.31			403,908		0.31
Total interest-bearing deposits		3,177,999		0.11	%		2,867,740		0.13	%
Total average deposits	$	4,753,192				$	4,260,127

	Six Months Ended June 30,
	2015					2014
	Average Balance		Average Rate			Average Balance		Average Rate
Noninterest-bearing deposits	$	1,567,597		—	%	$	1,360,920		—	%
Interest-bearing deposits:
Interest-bearing checking		1,592,813		0.09			1,302,362		0.11
Savings and money market accounts		985,255		0.06			854,678		0.06
Time deposits under $100,000		257,591		0.20			286,700		0.22
Time deposits of $100,000 or more		363,996		0.31			398,860		0.30
Total interest-bearing deposits		3,199,655		0.12	%		2,842,600		0.13	%
Total average deposits	$	4,767,252				$	4,203,520

Short-Term Borrowings. Included in short-term borrowings were federal funds purchased, securities sold under repurchase agreements and advances from the FHLB of $621.16 million and $434.58 million at June 30, 2015 and 2014, respectively. Securities sold under repurchase agreements are generally with significant customers of the Company that require short-term liquidity for their funds for which we pledge certain securities that have a fair value equal to at least the amount of the short-term borrowing. The average balance of federal funds purchased, securities sold under repurchase agreements and advances from the FHLB was $558.37 million and $406.91 million in the second quarters of 2015 and 2014, respectively. The weighted average interest rate paid on these short-term borrowings was 0.08% and 0.08% for the second quarters of 2015 and 2014, respectively. The average balances of federal funds purchased, securities sold under repurchase agreements and advances from the FHLB was $473.76 million and $416.51 million for the six-month periods ended June 30, 2015 and 2014, respectively. The weighted average interest rate paid on these short-term borrowings was 0.06% and 0.09% for the first six months of 2015 and 2014, respectively.

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Capital Resources

We evaluate capital resources by our ability to maintain adequate regulatory capital ratios to do business in the banking industry. Issues related to capital resources arise primarily when we are growing at an accelerated rate but not retaining a significant amount of our profits or when we experience significant asset quality deterioration.

Total shareholders’ equity was $701.19 million, or 11.47% of total assets at June 30, 2015, as compared to $640.04 million, or 11.75% of total assets, at June 30, 2014. Included in shareholders’ equity at June 30, 2015 and June 30, 2014, were $38.49 million and $39.51 million, respectively, in unrealized gains on investment securities available-for-sale, net of related income taxes. For the second quarter of 2015, total shareholders’ equity averaged $706.09 million, or 11.63% of average assets, as compared to $631.67 million, or 11.83% of average assets, during the same period in 2014. For the six months ended June 30, 2015, total shareholders’ equity averaged $700.69 or 11.69% as compared to $617.52 million or 11.71% of total assets during the same period in 2014.

Banking regulators measure capital adequacy by means of the risk-based capital ratios and leverage ratio. The risk-based capital rules provide for the weighting of assets and off-balance-sheet commitments and contingencies according to prescribed risk categories ranging from 0% to 100%. Regulatory capital is then divided by risk-weighted assets to determine the risk-adjusted capital ratios. The leverage ratio is computed by dividing shareholders’ equity less intangible assets by quarter-to-date average assets less intangible assets.

As of June 30, 2015 and December 31, 2014, we had a total risk-based capital ratio of 17.36% and 17.16%, a Tier 1 capital to risk-weighted assets ratio of 16.25% and 16.05% and a Tier 1 leverage ratio of 9.84% and 9.89%, respectively. At June 30, 2015, we had a common equity Tier 1 to risk-weighted assets ratio of 16.25%. The regulatory capital ratios as of June 30, 2015 were calculated under Interim Final Basel III rules and the regulatory capital ratios as of December 31, 2014 were calculated under Basel I rules. There is no threshold for well-capitalized status for bank holding companies.

As of June 30, 2015 and December 31, 2014, the regulatory capital ratios of the Company and Bank exceeded the required minimums, as seen in the table below (dollars in thousands):

	Actual					For Capital Adequacy Purposes:					To Be Well Capitalized Under Prompt Corrective Action Provisions:
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2015:
Total Capital (to Risk-Weighted Assets):
Consolidated	$	621,653		17	%		³ $286,401		³ 8	%		N/A
First Financial Bank, N.A.	$	547,011		15	%		³ $285,742		³ 8	%		³ $357,177		³ 10	%
Tier1 Capital (to Risk-Weighted Assets):
Consolidated	$	581,682		16	%		³ $143,200		³ 4	%		N/A
First Financial Bank, N.A.	$	507,040		14	%		³ $142,871		³ 4	%		³ $214,306		³ 6	%
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
Consolidated	$	581,682		16	%		³ $143,200		³ 4	%		N/A
First Financial Bank, N.A.	$	507,040		14	%		³ $142,871		³ 4	%		³ $214,306		³ 6	%
Tier1 Capital (to Average Assets) – Leverage:
Consolidated	$	581,682		10	%		³ $177,277		³ 3	%		N/A
First Financial Bank, N.A.	$	507,040		9	%		³ $176,591		³ 3	%		³ $294,319		³ 5	%
As of December 31, 2014:
Total Capital (to Risk-Weighted Assets):
Consolidated	$	587,094		17	%		³ $273,764		³ 8	%		N/A
First Financial Bank, N.A.	$	492,668		14	%		³ $272,318		³ 8	%		³ $340,397		³ 10	%
Tier1 Capital (to Risk-Weighted Assets):
Consolidated	$	549,124		16	%		³ $136,882		³ 4	%		N/A
First Financial Bank, N.A.	$	454,698		13	%		³ $136,159		³ 4	%		³ $204,238		³ 6	%
Tier1 Capital (to Average Assets) – Leverage:
Consolidated	$	549,124		10	%		³ $166,489		³ 3	%		N/A
First Financial Bank, N.A.	$	454,698		8	%		³ $165,598		³ 3	%		³ $275,996		³ 5	%

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We have performed a preliminary assessment using the regulatory capital estimation tool made available by the OCC and believe the Company is prepared to meet the new requirements after full adoption of the Basel III Notice of Proposed Rulemaking.

Our subsidiary bank made the election to continue to exclude most accumulated other comprehensive income (“AOCI”) from capital in connection with its March 31, 2015 quarterly financial filing and, in effect, to retain the AOCI treatment under the current capital rules.

Interest Rate Risk

Interest rate risk results when the maturity or repricing intervals of interest-earning assets and interest-bearing liabilities are different. Our exposure to interest rate risk is managed primarily through our strategy of selecting the types and terms of interest-earning assets and interest-bearing liabilities that generate favorable earnings while limiting the potential negative effects of changes in market interest rates. We use no off-balance-sheet financial instruments to manage interest rate risk.

Our subsidiary bank has an asset liability management committee that monitors interest rate risk and compliance with investment policies. The subsidiary bank utilizes an earnings simulation model as the primary quantitative tool in measuring the amount of interest rate risk associated with changing market rates. The model quantifies the effects of various interest rate scenarios on projected net interest income and net income over the next twelve months. The model measures the impact on net interest income relative to a base case scenario of hypothetical fluctuations in interest rates over the next twelve months. These simulations incorporate assumptions regarding balance sheet growth and mix, pricing and the re-pricing and maturity characteristics of the existing and projected balance sheet.

As of June 30, 2015, the model simulations projected that 100 and 200 basis point increases in interest rates would result in negative variances in net interest income of 0.47% and 1.41%, respectively, relative to the current financial statement structure over the next twelve months, while decreases in interest rates of 50 basis points would result in a negative variance in net interest income of 2.41% relative to the current financial statement structure over the next twelve months. We consider the likelihood of a decrease in interest rates beyond 50 basis points as of June 30, 2015 remote given current interest rate levels. These are good faith estimates and assume that the composition of our interest sensitive assets and liabilities existing at each year-end will remain constant over the relevant twelve month measurement period and that changes in market interest rates are instantaneous and sustained across the yield curve regardless of duration of pricing characteristics on specific assets or liabilities. Also, this analysis does not contemplate any actions that we might undertake in response to changes in market interest rates. We believe these estimates are not necessarily indicative of what actually could occur in the event of

47

immediate interest rate increases or decreases of this magnitude. As interest-bearing assets and liabilities re-price in different time frames and proportions to market interest rate movements, various assumptions must be made based on historical relationships of these variables in reaching any conclusion. Since these correlations are based on competitive and market conditions, we anticipate that our future results will likely be different from the foregoing estimates, and such differences could be material.

Should we be unable to maintain a reasonable balance of maturities and repricing of our interest-earning assets and our interest-bearing liabilities, we could be required to dispose of our assets in an unfavorable manner or pay a higher than market rate to fund our activities. Our asset liability committee oversees and monitors this risk.

Liquidity

Liquidity is our ability to meet cash demands as they arise. Such needs can develop from loan demand, deposit withdrawals or acquisition opportunities. Potential obligations resulting from the issuance of standby letters of credit and commitments to fund future borrowings to our loan customers are other factors affecting our liquidity needs. Many of these obligations and commitments are expected to expire without being drawn upon; therefore the total commitment amounts do not necessarily represent future cash requirements affecting our liquidity position. The potential need for liquidity arising from these types of financial instruments is represented by the contractual notional amount of the instrument. Asset liquidity is provided by cash and assets which are readily marketable or which will mature in the near future. Liquid assets include cash, federal funds sold, and short-term investments in time deposits in banks. Liquidity is also provided by access to funding sources, which include core depositors and correspondent banks that maintain accounts with and sell federal funds to our subsidiary bank. Other sources of funds include our ability to borrow from short-term sources, such as purchasing federal funds from correspondent banks, sales of securities under agreements to repurchase and advances from the FHLB, which amounted to $621.16 million at June 30, 2015, and an unfunded $25.00 million revolving line of credit established with Frost Bank, a nonaffiliated bank, which matures on June 30, 2017 (see next paragraph). Our subsidiary bank also has federal funds purchased lines of credit with two non-affiliated banks totaling $100.00 million. At June 30, 2015, there were no amounts drawn on these lines of credit. Our subsidiary bank also has available a line of credit with the FHLB totaling $921.20 million, at June 30, 2015, secured by portions of our loan portfolio and certain investment securities. At June 30, 2015, $265.04 million in advances and $5.00 million in letters of credit issued by the FHLB were outstanding under this line of credit. The letters of credit were pledged as collateral for public funds held by our subsidiary bank.

The Company renewed its loan agreement, effective June 30, 2015, with Frost Bank. Under the loan agreement, as renewed and amended, we are permitted to draw up to $25.00 million on a revolving line of credit. Prior to June 30, 2017, interest is paid quarterly at Wall Street Journal Prime Rate and the line of credit matures June 30, 2017. If a balance exists at June 30, 2017, the principal balance converts to a term facility payable quarterly over five years and interest is paid quarterly at our election at Wall Street Journal Prime Rate plus 50 basis points or LIBOR plus 250 basis points. The line of credit is unsecured. Among other provisions in the credit agreement, we must satisfy certain financial covenants during the term of the loan agreement, including, without limitation, covenants that require us to maintain certain capital, tangible net worth, loan loss reserve, non-performing asset and cash flow coverage ratios. In addition, the credit agreement contains certain operational covenants, which 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, we have historically declared dividends as a percentage of our consolidated net income in a range of 37% (low) in 1995 to 53% (high) in 2003 and 2006. The Company was in compliance with the financial and operational covenants at June 30, 2015. There was no outstanding balance under the line of credit as of June 30, 2015 or December 31, 2014.

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In addition, we anticipate that future acquisitions of financial institutions, expansion of branch locations or offerings of new products could also place a demand on our cash resources. Available cash and cash equivalents at our parent company which totaled $66.71 million at June 30, 2015, investment securities which totaled $12.01 million at June 30, 2015 which matures over 8 to 15 years, available dividends from our subsidiaries which totaled $122.31 million at June 30, 2015, utilization of available lines of credit, and future debt or equity offerings are expected to be the source of funding for these potential acquisitions or expansions.

Given the strong core deposit base and relatively low loan to deposit ratios maintained at our subsidiary bank, we consider our current liquidity position to be adequate to meet our short-term and long-term liquidity needs.

Off-Balance Sheet Arrangements. We are a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of our customers. These financial instruments include unfunded lines of credit, commitments to extend credit and federal funds sold to correspondent banks and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in our consolidated balance sheets.

Our exposure to credit loss in the event of nonperformance by the counterparty to the financial instrument for unfunded lines of credit, commitments to extend credit and standby letters of credit is represented by the contractual notional amount of these instruments. We generally use the same credit policies in making commitments and conditional obligations as we do for on-balance-sheet instruments.

Unfunded lines of credit and commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. These commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, as we deem necessary upon extension of credit, is based on our credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant, and equipment and income-producing commercial properties.

Standby letters of credit are conditional commitments we issue to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The average collateral value held on letters of credit usually exceeds the contract amount.

Table 10 – Commitments as of June 30, 2015 (in thousands):

	Total Notional Amounts Committed
Unfunded lines of credit	$	435,736
Unfunded commitments to extend credit		126,533
Standby letters of credit		27,188
Total commercial commitments	$	589,457

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We believe we have no other off-balance sheet arrangements or transactions with unconsolidated, special purpose entities that would expose us to liability that is not reflected on the face of the financial statements.

Parent Company Funding. Our ability to fund various operating expenses, dividends, and cash acquisitions is generally dependent on our own earnings (without giving effect to our subsidiaries), cash reserves and funds derived from our subsidiaries. These funds historically have been produced by intercompany dividends and management fees that are limited to reimbursement of actual expenses. We anticipate that our recurring cash sources will continue to include dividends and management fees from our subsidiaries. At June 30, 2015, approximately $122.31 million was available for the payment of intercompany dividends by our subsidiaries without the prior approval of regulatory agencies. Our subsidiaries paid aggregate dividends of $4.80 million and $17.00 million for the six-month periods ended June 30, 2015 and 2014, respectively.

Dividends. Our long-term dividend policy is to pay cash dividends to our shareholders of approximately 40% of annual net earnings while maintaining adequate capital to support growth. We are also restricted by a loan covenant within our line of credit agreement with Frost Bank to dividend no greater than 55% of net income as defined in such loan agreement. The cash dividend payout ratios have amounted to 39.03% and 39.71% of net earnings for the first six months of 2015 and the same period in 2014, respectively. Given our current capital position and projected earnings and asset growth rates, we do not anticipate any significant change in our current dividend policy. On April 28, 2015, the Board of Directors declared a $0.16 per share cash dividend that was paid July 1, 2015 to shareholders of record on June 16, 2015. This represented a 14.29 percent increase in quarterly dividends over the first quarter of 2015.

Our bank subsidiary, which is a national banking association and a member of the Federal Reserve System, is required by federal law to obtain the prior approval of the Office of the Comptroller of the Currency (the “OCC”) to declare and pay dividends if the total of all dividends declared in any calendar year would exceed the total of (1) such bank’s net profits (as defined and interpreted by regulation) for that year plus (2) its retained net profits (as defined and interpreted by regulation) for the preceding two calendar years, less any required transfers to surplus.

To pay dividends, we and our subsidiary bank must maintain adequate capital above regulatory guidelines. In addition, if the applicable regulatory authority believes that a bank under its jurisdiction is engaged in or is about to engage in an unsafe or unsound practice (which, depending on the financial condition of the bank, could include the payment of dividends), the authority may require, after notice and hearing, that such bank cease and desist from the unsafe practice. The Federal Reserve, the Federal Deposit Insurance Corporation (the “FDIC”) and the OCC have each indicated that paying dividends that deplete a bank’s capital base to an inadequate level would be an unsafe and unsound banking practice. The Federal Reserve, the FDIC and the OCC have issued policy statements that recommend that bank holding companies and insured banks should generally only pay dividends out of current operating earnings.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Management considers interest rate risk to be a significant market risk for the Company. See “Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations – Capital Resources - Interest Rate Risk” for disclosure regarding this market risk.

50

Item 4. Controls and Procedures

As of June 30, 2015, we carried out an evaluation, under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) of the Securities Exchange Act of 1934). Our management, which includes our principal executive officer and our principal financial officer, does not expect that our disclosure controls and procedures will prevent all errors and all fraud.

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions; over time, controls may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected. Our principal executive officer and principal financial officer have concluded, based on our evaluation of our disclosure controls and procedures, that our disclosure controls and procedures were effective at the reasonable assurance level as of June 30, 2015.

Subsequent to our evaluation, there were no significant changes in internal controls over financial reporting or other factors that have materially affected, or are reasonably likely to materially affect, these internal controls.

51

PART II

OTHER INFORMATION

Item 1. Legal Proceedings

From time to time we and our subsidiaries are parties to lawsuits arising in the ordinary course of our banking business. However, there are no material pending legal proceedings to which we, our subsidiaries, or any of their properties, are currently subject. Other than regular, routine examinations by state and federal banking authorities, there are no proceedings pending or known to be contemplated by any governmental authorities.

Item 1A. Risk Factors

There has been no material change in the risk factors previously disclosed under Item 1A. of the Company’s 2014 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3. Defaults Upon Senior Securities

Not Applicable

Item 4. Mine Safety Disclosures

Not Applicable

Item 5. Other Information

None

52

Item 6. Exhibits

The following exhibits are filed as part of this report:

2.1	—	Agreement and Plan of Merger between First Financial Bankshares, Inc., First Financial Bank, N.A., OSB Financial Services, Inc. and Orange Savings Bank, SSB, dated as of February 20, 2013 (Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K) (incorporated by reference from Exhibit 2.1 to Registrant’s Form 8-K filed February 26, 2013).
2.2	—	Agreement and Plan of Merger between First Financial Bankshares, Inc., First Financial Bank, N.A., FBC Bancshares, Inc. and First Bank, N.A., Conroe, Texas, dated as of April 1, 2015 (Schedules have been omitted pursuant to Item 601(b)(2) of Regulation S-K) (incorporated by reference from Exhibit 2.1 to Registrant’s Form 8-K filed April 3, 2015).
3.1	—	Amended and Restated Certificate of Formation (incorporated by reference from Exhibit 3.1 of the Registrant’s Form 8-K filed April 28, 2015).
3.2	—	Amended and Restated Bylaws of the Registrant (incorporated by reference from Exhibit 3.2 of the Registrant’s Form 8-K filed January 24, 2012).
4.1	—	Specimen certificate of First Financial Common Stock (incorporated by reference from Exhibit 3 of the Registrant’s Amendment No. 1 to Form 8-A filed on Form 8-A/A No. 1 on January 7, 1994).
10.1	—	Executive Recognition Agreement (incorporated by reference from Exhibit 10.1 of the Registrant’s Form 8-K Report filed June 30, 2014).
10.2	—	2002 Incentive Stock Option Plan (incorporated by reference from Exhibit 10.3 of the Registrant’s Form 10-Q filed May 4, 2010).
10.3	—	2012 Incentive Stock Option Plan (incorporated by reference from Appendix A of the Registrant’s Definitive Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 filed March 1, 2012).
10.4	—	Loan agreement dated June 30, 2013, between First Financial Bankshares, Inc. and Frost Bank (incorporated by reference from Exhibit 10.1 of the Registrant’s Form 8-K filed July 1, 2013).
10.5	—	Loan agreement dated June 30, 2015, between First Financial Bankshares, Inc. and Frost Bank (incorporated by reference from Exhibit 10.1 of the Registrant’s Form 8-K filed June 30, 2015).
10.6	—	2015 Restricted Stock Plan (incorporated by reference from Appendix A of the Registrant’s Definitive Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 filed March 2, 2015).
31.1	—	Rule 13a-14(a) / 15(d)-14(a) Certification of Chief Executive Officer of First Financial Bankshares, Inc.*
31.2	—	Rule 13a-14(a) / 15(d)-14(a) Certification of Chief Financial Officer of First Financial Bankshares, Inc.*
32.1	—	Section 1350 Certification of Chief Executive Officer of First Financial Bankshares, Inc.+
32.2	—	Section 1350 Certification of Chief Financial Officer of First Financial Bankshares, Inc.+
101.INS	—	XBRL Instance Document.*
101.SCH	—	XBRL Taxonomy Extension Schema Document.*
101.CAL	—	XBRL Taxonomy Extension Calculation Linkbase Document.*
101.DEF	—	XBRL Taxonomy Extension Definition Linkbase Document.*
101.LAB	—	XBRL Taxonomy Extension Label Linkbase Document.*
101.PRE	—	XBRL Taxonomy Extension Presentation Linkbase Document.*

* Filed herewith

+ Furnished herewith

53

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	FIRST FINANCIAL BANKSHARES, INC.
Date: August 4, 2015	By:	/s/ F. Scott Dueser
		F. Scott Dueser
		President and Chief Executive Officer
Date: August 4, 2015	By:	/s/ J. Bruce Hildebrand
		J. Bruce Hildebrand
		Executive Vice President and
		Chief Financial Officer

54

EX-31.1

Exhibit 31.1

Certification of

Chief Executive Officer

of First Financial Bankshares, Inc.

I, F. Scott Dueser, President and Chief Executive Officer of First Financial Bankshares, Inc., certify that:

1. I have reviewed this Form 10-Q of First Financial Bankshares, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: August 4, 2015

By:	/s/ F. SCOTT DUESER
	F. Scott Dueser
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification of

Chief Financial Officer

of First Financial Bankshares, Inc.

I, J. Bruce Hildebrand, Executive Vice President and Chief Financial Officer of First Financial Bankshares, Inc., certify that:

1. I have reviewed this Form 10-Q of First Financial Bankshares, Inc.;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.

Date: August 4, 2015

By:	/s/ J. Bruce Hildebrand
	J. Bruce Hildebrand
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification of

Chief Executive Officer

of First Financial Bankshares, Inc.

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and accompanies the quarterly report on Form 10-Q (the “Form 10-Q”) for the quarter ended June 30, 2015 of First Financial Bankshares, Inc. (the “Company”).

I, F. Scott Dueser, the President and Chief Executive Officer of the Company, certify that:

1. the Form 10-Q fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 4, 2015

By:	/s/ F. SCOTT DUESER
	F. Scott Dueser
	Chief Executive Officer

Subscribed and sworn to before me this 4th day of August 4, 2015.

/s/ Melissa A. Lomax

Melissa A. Lomax

Notary Public

My commission expires: October 11, 2016

EX-32.2

Exhibit 32.2

Certification of

Chief Financial Officer

of First Financial Bankshares, Inc.

This certification is provided pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and accompanies the quarterly report on Form 10-Q (the “Form 10-Q”) for the quarter ended June 30, 2015 of First Financial Bankshares, Inc. (the “Company”).

I, J. Bruce Hildebrand, the Executive Vice President and Chief Financial Officer of the Company, certify that:

1. the Form 10-Q fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2. the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 4, 2015

By:	/s/ J. Bruce Hildebrand
	J. Bruce Hildebrand
	Chief Financial Officer

Subscribed and sworn to before me this 4th day of August, 2015.

/s/ Melissa A. Lomax

Melissa A. Lomax

Notary Public

My commission expires: October 11, 2016

XML

Loans and Allowance for Loan Losses - Schedule of Impaired Loans and Related Allowance (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	$ 23,826	$ 23,826	$ 29,795	$ 26,941
Recorded Investment With No Allowance	3,551	3,551	6,339	5,566
Recorded Investment With Allowance	13,303	13,303	17,226	14,628
Total Recorded Investment	16,854	16,854	23,565	20,194
Related Allowance	3,866	3,866	4,883	4,213
Year-to-Date Average Recorded Investment	16,877	18,387	26,522	24,497
Three-month Average Recorded Investment		16,877	25,004
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	4,168	4,168	4,095	3,749
Recorded Investment With No Allowance	263	263	271	287
Recorded Investment With Allowance	3,343	3,343	3,369	2,906
Total Recorded Investment	3,606	3,606	3,640	3,193
Related Allowance	1,168	1,168	1,161	1,171
Year-to-Date Average Recorded Investment		3,717	4,083	3,698
Three-month Average Recorded Investment		3,298	3,224
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	163	163	121	177
Recorded Investment With Allowance	118	118	109	165
Total Recorded Investment	118	118	109	165
Related Allowance	87	87	41	57
Year-to-Date Average Recorded Investment		148	118	179
Three-month Average Recorded Investment		136	101
Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	18,711	18,711	24,619	22,177
Recorded Investment With No Allowance	2,921	2,921	5,626	4,859
Recorded Investment With Allowance	9,649	9,649	13,401	11,359
Total Recorded Investment	12,570	12,570	19,027	16,218
Related Allowance	2,506	2,506	3,497	2,867
Year-to-Date Average Recorded Investment		13,817	21,442	19,837
Three-month Average Recorded Investment		12,876	20,920
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	784	784	960	838
Recorded Investment With No Allowance	367	367	442	420
Recorded Investment With Allowance	193	193	347	198
Total Recorded Investment	560	560	789	618
Related Allowance	$ 105	105	184	118
Year-to-Date Average Recorded Investment		705	879	$ 783
Three-month Average Recorded Investment		$ 567	$ 759

XML

Fair Value Disclosures - Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	$ 2,729,113	$ 2,415,856	$ 2,173,828
U.S. Treasury Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	10,936	520
Obligations of U.S. Government Sponsored-Enterprises and Agencies [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	165,336	129,755	120,117
Obligations of States and Political Subdivisions [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	1,384,246	1,167,628	1,074,658
Residential Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	868,091	885,211	745,473
Commercial Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	203,396	133,984	132,840
Fair Value, Measurements, Recurring [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	2,729,113	2,415,856	2,173,828
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	92,188	94,065	95,940
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	10,936	520
Fair Value, Measurements, Recurring [Member] | Obligations of U.S. Government Sponsored-Enterprises and Agencies [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	165,336	129,755	120,117
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	1,384,246	1,167,628	1,074,658
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	868,091	885,211	745,473
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	203,396	133,984	132,840
Fair Value, Measurements, Recurring [Member] | Other Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	4,920	4,693	4,800
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	15,856	5,213	4,800
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member] | U.S. Treasury Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	10,936	520
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member] | Other Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	4,920	4,693	4,800
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	2,713,257	2,410,643	2,169,028
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Corporate Bonds [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	92,188	94,065	95,940
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Obligations of U.S. Government Sponsored-Enterprises and Agencies [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	165,336	129,755	120,117
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Obligations of States and Political Subdivisions [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	1,384,246	1,167,628	1,074,658
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Residential Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	868,091	885,211	745,473
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member] | Commercial Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	$ 203,396	$ 133,984	$ 132,840

XML

Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2014 USD ($) Contract	Jun. 30, 2015 USD ($) Contract	Jun. 30, 2014 USD ($) Contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number	1	1	1
Balance | $	$ 32	$ 111	$ 32
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number		1
Balance | $		$ 111
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number	1		1
Balance | $	$ 32		$ 32

XML

Fair Value Disclosures - Other Real Estate Owned (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Fair Value Disclosures [Abstract]
Carrying value of other real estate owned prior to re-measurement	$ 341	$ 708	$ 351	$ 708
Write-downs included in gain (loss) on sale of other real estate owned	(85)	(89)	(95)	(89)
Fair value	$ 256	$ 619	$ 256	$ 619

XML

Loans and Allowance for Loan Losses - Schedule of Loans Modified and Considered Troubled Debt Restructuring (Detail) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) SecurityLoan	Jun. 30, 2014 USD ($) SecurityLoan	Jun. 30, 2015 USD ($) SecurityLoan	Jun. 30, 2014 USD ($) SecurityLoan
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	6	5	10	13
Pre-Modification Recorded Investment	$ 414	$ 855	$ 566	$ 1,039
Post-Modification Recorded Investment	$ 414	$ 855	$ 566	$ 1,039
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	2	1	2	5
Pre-Modification Recorded Investment	$ 74	$ 302	$ 74	$ 399
Post-Modification Recorded Investment	$ 74	$ 302	$ 74	$ 399
Agriculture [Member]
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan		1	3	1
Pre-Modification Recorded Investment		$ 39	$ 128	$ 39
Post-Modification Recorded Investment		$ 39	$ 128	$ 39
Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	2	3	2	4
Pre-Modification Recorded Investment	$ 336	$ 514	$ 336	$ 590
Post-Modification Recorded Investment	$ 336	$ 514	$ 336	$ 590
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	2		3	3
Pre-Modification Recorded Investment	$ 4		$ 28	$ 11
Post-Modification Recorded Investment	$ 4		$ 28	$ 11

XML

Loans and Allowance for Loan Losses - Additional Information (Detail)				3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Security_Loan	Jun. 30, 2014 USD ($) Security_Loan	Jun. 30, 2015 USD ($) Security_Loan	Jun. 30, 2014 USD ($) Security_Loan	Dec. 31, 2014 USD ($)
Receivables [Abstract]
Minimum number of days to consider the loans as non-accrual
Carrying amount of purchased credit impaired loans	$ 1,123,000	$ 2,151,000	$ 2,519,000			$ 1,123,000	$ 2,519,000	$ 2,151,000
Contractual balance	1,648,000	3,275,000	3,754,000	$ 1,648,000	$ 3,754,000	1,648,000	3,754,000	3,275,000
Loans held for sale	25,544,000	8,803,000	13,570,000	25,544,000	13,570,000	25,544,000	13,570,000	8,803,000
Average recorded investment in impaired loans				16,877,000		18,387,000	26,522,000	24,497,000
Nonaccrual, past due 90 days or more and still accruing, restructured loans and foreclosed assets	18,135,000	21,716,000	26,030,000	18,135,000	26,030,000	18,135,000	26,030,000	21,716,000
Additional funds advanced in connection with impaired loans	0			0		0
Interest income recognized on impaired loans	0	0	0
Interest income recognized on impaired loans								162,000
Allowance for purchased credit impaired loans	0	0	0	$ 0	$ 0	$ 0	$ 0	0
Default for purposes of this disclosure is a troubled debt restructured loan						90 days
Number of loans modified | Security_Loan				0	1	1	1
Commitments to lend additional funds to borrowers with loan that have been modified as TDRs	0			$ 0		$ 0
Loans held by subsidiaries subject to blanket liens	1,720,486,000			1,720,486,000		1,720,486,000
Letters of credit outstanding, amount	5,000,000			5,000,000		5,000,000
Advances from Federal Home Loan Bank of Dallas	$ 265,036,000	$ 1,010,000	$ 111,065,000	$ 265,036,000	$ 111,065,000	$ 265,036,000	$ 111,065,000	$ 1,010,000

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Acquisition and Asset Purchase - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2015	Apr. 08, 2015	Apr. 01, 2015	Dec. 31, 2014	Jun. 30, 2014
Business Acquisition [Line Items]
Gross loans	$ 2,942,224,000			$ 2,929,188,000	$ 2,773,074,000
Total deposits	4,727,419,000			4,750,255,000	4,318,458,000
Total assets	$ 6,115,236,000			$ 5,848,202,000	$ 5,446,356,000
FBC Bancshares, Inc. and First Bank, N.A. [Member]
Business Acquisition [Line Items]
Business acquisition, definitive agreement date	Apr. 01, 2015
Business acquisition, expected stock purchase price			$ 61,000,000
First Bank, N.A. [Member]
Business Acquisition [Line Items]
Gross loans	$ 257,046,000
Total deposits	339,423,000
Total assets	$ 372,188,000
4Trust Mortgage, Inc. [Member]
Business Acquisition [Line Items]
Business acquisition, asset purchase agreement date	Apr. 08, 2015
Business acquisition, cash purchase price		$ 1,900,000

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Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2015 and 2014, and December 31, 2014, respectively, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

June 30, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,936	$	—	$	—	$	10,936
Obligations of U. S. government sponsored-enterprises and agencies		—		165,336		—		165,336
Obligations of states and political subdivisions		—		1,384,246		—		1,384,246
Corporate bonds		—		92,188		—		92,188
Residential mortgage-backed securities		—		868,091		—		868,091
Commercial mortgage-backed securities		—		203,396		—		203,396
Other securities		4,920		—		—		4,920
Total	$	15,856	$	2,713,257	$	—	$	2,729,113
June 30, 2014
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
Obligations of U. S. government sponsored-enterprises and agencies	$	—	$	120,117	$	—	$	120,117
Obligations of states and political subdivisions		—		1,074,658		—		1,074,658
Corporate bonds		—		95,940		—		95,940
Residential mortgage-backed securities		—		745,473		—		745,473
Commercial mortgage-backed securities		—		132,840		—		132,840
Other securities		4,800		—		—		4,800
Total	$	4,800	$	2,169,028	$	—	$	2,173,828

December 31, 2014
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	520	$	—	$	—	$	520
Obligations of U. S. government sponsored-enterprises and agencies		—		129,755		—		129,755
Obligations of states and political subdivisions		—		1,167,628		—		1,167,628
Corporate bonds		—		94,065		—		94,065
Residential mortgage-backed securities		—		885,211		—		885,211
Commercial mortgage-backed securities		—		133,984		—		133,984
Other securities		4,693		—		—		4,693
Total	$	5,213	$	2,410,643	$	—	$	2,415,856

Other Real Estate Owned

The following table presents other real estate owned that were re-measured subsequent to their initial transfer to other real estate owned (dollars in thousands):

	Three Months Ended June 30,
	2015			2014
Carrying value of other real estate owned prior to re-measurement	$	341		$	708
Write-downs included in gain (loss) on sale of other real estate owned		(85	)		(89	)
Fair value	$	256		$	619
	Six Months Ended June 30,
	2015			2014
Carrying value of other real estate owned prior to re-measurement	$	351		$	708
Write-downs included in gain (loss) on sale of other real estate owned		(95	)		(89	)
Fair value	$	256		$	619

Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments

The estimated fair values and carrying values of all financial instruments under current authoritative guidance at June 30, 2015 and 2014, and December 31, 2014, were as follows (in thousands):

	June 30,				June 30,				December 31,
	2015				2014				2014
	Carrying		Estimated		Carrying		Estimated		Carrying		Estimated		Fair Value
	Value		Fair Value		Value		Fair Value		Value		Fair Value		Hierarchy
Cash and due from banks	$	149,524	$	149,524	$	166,237	$	166,237	$	190,387	$	190,387	Level 1
Federal funds sold		5,720		5,720		3,110		3,110		8,760		8,760	Level 1
Interest-bearing deposits in banks		18,179		18,179		68,331		68,331		54,324		54,324	Level 1
Interest-bearing time deposits in banks		5,456		5,466		24,188		24,266		17,002		17,032	Level 2
Available-for-sale securities		2,729,113		2,729,113		2,173,828		2,173,828		2,415,856		2,415,856	Levels 1 and 2
Held-to-maturity securities		295		301		568		576		441		447	Level 2
Loans		2,928,769		2,935,344		2,750,752		2,764,118		2,901,167		2,906,399	Level 3
Accrued interest receivable		32,003		32,003		27,583		27,583		28,998		28,998	Level 2
Deposits with stated maturities		598,404		600,093		692,937		695,006		648,992		650,893	Level 2
Deposits with no stated maturities		4,129,015		4,129,015		3,625,521		3,625,521		4,101,263		4,101,263	Level 1
Short-term borrowings		621,155		621,155		434,583		434,583		367,110		367,110	Level 2
Accrued interest payable		242		242		291		291		237		237	Level 2

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Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Tax Disclosure [Abstract]
Income tax expense	$ 8,080	$ 6,758	$ 15,845	$ 13,863
Effective tax rates on pre-tax income	24.20%	24.17%	24.32%	24.15%
Statutory federal tax rate			35.00%

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Loans and Allowance for Loan Losses - Schedule of Past Due Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 26,767	$ 22,888	$ 29,380
Total Current	2,915,457	2,906,300	2,743,694
Total	2,942,224	2,929,188	2,773,074
Total 90 Days Past Due Still Accruing	64	261	123
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7,904	4,880	7,589
Total Current	642,005	635,074	610,336
Total	649,909	639,954	617,925
Total 90 Days Past Due Still Accruing		24	23
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	270	479	148
Total Current	92,047	105,215	74,985
Total	92,317	105,694	75,133
Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	16,646	14,577	19,577
Total Current	1,821,842	1,808,277	1,714,027
Total	1,838,488	1,822,854	1,733,604
Total 90 Days Past Due Still Accruing	47	207	83
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,947	2,952	2,066
Total Current	359,563	357,734	344,346
Total	361,510	360,686	346,412
Total 90 Days Past Due Still Accruing	17	30	17
15-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	23,089	19,372	25,675
15-59 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7,854	4,611	7,290
15-59 Days Past Due [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	270	437	134
15-59 Days Past Due [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	13,458	12,002	16,781
15-59 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,507	2,322	1,470
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,635	1,339	1,331
60-89 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	38	94	51
60-89 Days Past Due [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		42	14
60-89 Days Past Due [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,255	707	823
60-89 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	342	496	443
Greater than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,043	2,177	2,374
Greater than 90 Days [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	12	175	248
Greater than 90 Days [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,933	1,868	1,973
Greater than 90 Days [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 98	$ 134	$ 153

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Loans and Allowance for Loan Losses - Recorded Investment in Impaired Loans and Related Valuation Allowance (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Receivables [Abstract]
Recorded Investment	$ 16,854	$ 20,194	$ 23,565
Valuation Allowance	$ 3,866	$ 4,213	$ 4,883

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Pension Plan - Additional Information (Detail)	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2015 USD ($)	Dec. 31, 2014 USD ($) Participants	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Dec. 31, 2014 USD ($)
Compensation and Retirement Disclosure [Abstract]
Contribution towards pension plan				$ 0		$ 250,000
Recognized pension expense, before income tax		$ 2,909,000
Benefits paid out of pension plan assets to plan participants		$ 10,626,000
Percentage of benefits paid of total outstanding obligation balance to plan participants		43.00%				43.00%
Number of participants reduced | Participants		335
Number of participants reduced percentage		44.00%				44.00%
Net periodic benefit costs, total	$ 74,000		$ 84,000	$ 149,000	$ 214,000

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Loans and Allowance for Loan Losses - Schedule of How Loans Were Modified as Troubled Debt Restructured Loans (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	$ 257		$ 257
Extended Maturity	78	$ 42	206	$ 223
Combined Rate and Maturity	79	813	103	816
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Extended Maturity	74		74	97
Combined Rate and Maturity		302		302
Agriculture [Member]
Financing Receivable, Modifications [Line Items]
Extended Maturity			128
Combined Rate and Maturity		39		39
Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	257		257
Extended Maturity		42		118
Combined Rate and Maturity	79	$ 472	79	472
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Extended Maturity	$ 4		4	8
Combined Rate and Maturity			$ 24	$ 3

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
NET EARNINGS	$ 49,303	$ 43,541
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	5,074	4,573
PROVISION FOR LOAN LOSSES	2,844	2,814
Securities premium amortization (discount accretion), net	13,164	9,568
Gain on sale of assets, net	(226)	(541)
Deferred federal income tax benefit	(763)	(971)
Change in loans held for sale, net	(16,741)	(8,407)
Change in other assets	(15,129)	4,972
Change in other liabilities	8,022	4,877
Total adjustments	(3,755)	16,885
Net cash provided by operating activities	45,548	60,426
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for asset acquisition of 4Trust Mortgage, Inc.	(1,931)
Net decrease in interest-bearing time deposits in banks	11,546	7,729
Activity in available-for-sale securities:
Sales	7,760	1,445
Maturities	2,111,206	621,807
Purchases	(2,448,852)	(710,574)
Activity in held-to-maturity securities - maturities	146	116
Net increase in loans	(13,802)	(90,627)
Purchases of bank premises and equipment and other assets	(6,240)	(5,400)
Proceeds from sale of other assets	390	2,397
Net cash used in investing activities	(339,777)	(173,107)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in noninterest-bearing deposits	4,415	83,763
Net increase (decrease) in interest-bearing deposits	(27,251)	99,620
Net increase (decrease) in short-term borrowings	254,045	(29,305)
Common stock transactions:
Proceeds from stock issuances	924	910
Dividends paid	(17,952)	(16,641)
Net cash provided by financing activities	214,181	138,347
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(80,048)	25,666
CASH AND CASH EQUIVALENTS, beginning of period	253,471	212,012
CASH AND CASH EQUIVALENTS, end of period	173,423	237,678
SUPPLEMENTAL INFORMATION AND NONCASH TRANSACTIONS:
Interest paid	1,972	2,070
Federal income tax paid	13,994	14,445
Transfer of loans to foreclosed assets	97	1,015
Investment securities purchased but not settled	$ 15,483	$ 7,417

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Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Apr. 01, 2015	Dec. 31, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	$ 3,866		$ 4,213	$ 4,883
Loans collectively evaluated for impairment	35,133		32,611	31,009
Total allowance for loan losses	38,999	$ 37,828	36,824	35,892	$ 34,693	$ 33,900
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	1,168		1,171	1,161
Loans collectively evaluated for impairment	10,288		6,819	5,700
Total allowance for loan losses	11,456	10,375	7,990	6,861	6,645	6,440
Agriculture [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	87		57	41
Loans collectively evaluated for impairment	305		470	323
Total allowance for loan losses	392	473	527	364	285	383
Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	2,506		2,867	3,497
Loans collectively evaluated for impairment	21,836		23,790	23,064
Total allowance for loan losses	24,342	25,239	26,657	26,561	25,629	24,940
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	105		118	184
Loans collectively evaluated for impairment	2,704		1,532	1,922
Total allowance for loan losses	$ 2,809	$ 1,741	$ 1,650	$ 2,106	$ 2,134	$ 2,137

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Interest-bearing Time Deposits in Banks and Securities - Additional Information (Detail)				3 Months Ended		6 Months Ended
	Jun. 30, 2015 USD ($) Investment	Dec. 31, 2014 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Investment	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) Investment	Jun. 30, 2014 USD ($)
Interest Bearing Time Deposits In Banks And Securities [Line Items]
INTEREST-BEARING TIME DEPOSITS IN BANKS	$ 5,456,000	$ 17,002,000	$ 24,188,000	$ 5,456,000	$ 24,188,000	$ 5,456,000	$ 24,188,000
Time deposits with balances greater than $250,000, FDIC insured limit	983,000	3,195,000	5,269,000	983,000	5,269,000	983,000	5,269,000
Held-to-maturity securities	$ 295,000	441,000	568,000	$ 295,000	568,000	$ 295,000	568,000
Number of investment positions | Investment	262			262		262
Securities pledged as collateral	$ 1,543,543,000			$ 1,543,543,000		$ 1,543,543,000
Sales of investment securities available-for-sale				6,631,000	541,000	7,760,000	1,445,000
Gross realized gains from security sales				243,000	0	248,000	1,000
Gross realized losses from security sales				$ 4,000	$ 1,000	$ 4,000	$ 6,000
Minimum [Member]
Interest Bearing Time Deposits In Banks And Securities [Line Items]
Interest-bearing time deposits, maturity period, years						1 year
Time deposits balances, FDIC insured limit	$ 250,000	$ 250,000	$ 250,000
Maximum [Member]
Interest Bearing Time Deposits In Banks And Securities [Line Items]
Interest-bearing time deposits, maturity period, years						4 years

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Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Earnings Per Share [Abstract]
Weighted average common shares outstanding, basic	64,148,356	64,045,282	64,135,731	64,027,776
Weighted average common shares outstanding, diluted	64,354,720	64,301,306	64,328,672	64,298,525

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Fair Value Disclosures - Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
CASH AND DUE FROM BANKS	$ 149,524	$ 190,387	$ 166,237
FEDERAL FUNDS SOLD	5,720	8,760	3,110
INTEREST-BEARING DEPOSITS IN BANKS	18,179	54,324	68,331
INTEREST-BEARING TIME DEPOSITS IN BANKS	5,456	17,002	24,188
Available-for-sale securities	2,729,113	2,415,856	2,173,828
Held-to-maturity securities	295	441	568
Loans	2,928,769	2,901,167	2,750,752
SHORT-TERM BORROWINGS	621,155	367,110	434,583
Carrying Value [Member] | Level 1 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
CASH AND DUE FROM BANKS	149,524	190,387	166,237
FEDERAL FUNDS SOLD	5,720	8,760	3,110
INTEREST-BEARING DEPOSITS IN BANKS	18,179	54,324	68,331
Deposits with no stated maturities	4,129,015	4,101,263	3,625,521
Carrying Value [Member] | Level 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
INTEREST-BEARING TIME DEPOSITS IN BANKS	5,456	17,002	24,188
Held-to-maturity securities	295	441	568
Accrued interest receivable	32,003	28,998	27,583
Deposits with stated maturities	598,404	648,992	692,937
SHORT-TERM BORROWINGS	621,155	367,110	434,583
Accrued interest payable	242	237	291
Carrying Value [Member] | Levels 1 and 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	2,729,113	2,415,856	2,173,828
Carrying Value [Member] | Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	2,928,769	2,901,167	2,750,752
Estimated Fair Value [Member] | Level 1 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
CASH AND DUE FROM BANKS	149,524	190,387	166,237
FEDERAL FUNDS SOLD	5,720	8,760	3,110
INTEREST-BEARING DEPOSITS IN BANKS	18,179	54,324	68,331
Deposits with no stated maturities	4,129,015	4,101,263	3,625,521
Estimated Fair Value [Member] | Level 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
INTEREST-BEARING TIME DEPOSITS IN BANKS	5,466	17,032	24,266
Held-to-maturity securities	301	447	576
Accrued interest receivable	32,003	28,998	27,583
Deposits with stated maturities	600,093	650,893	695,006
SHORT-TERM BORROWINGS	621,155	367,110	434,583
Accrued interest payable	242	237	291
Estimated Fair Value [Member] | Levels 1 and 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale securities	2,729,113	2,415,856	2,173,828
Estimated Fair Value [Member] | Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	$ 2,935,344	$ 2,906,399	$ 2,764,118

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Loans and Allowance for Loan Losses - Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 37,828	$ 34,693	$ 36,824	$ 33,900
PROVISION FOR LOAN LOSSES	1,554	1,124	2,844	2,814
Recoveries	560	376	784	776
Charge-offs	(943)	(301)	(1,453)	(1,598)
Ending balance	38,999	35,892	38,999	35,892
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	10,375	6,645	7,990	6,440
PROVISION FOR LOAN LOSSES	1,324	219	3,789	554
Recoveries	117	65	197	154
Charge-offs	(360)	(68)	(520)	(287)
Ending balance	11,456	6,861	11,456	6,861
Agriculture [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	473	285	527	383
PROVISION FOR LOAN LOSSES	(27)	78	(59)	(21)
Recoveries		1	2	3
Charge-offs	(54)		(78)	(1)
Ending balance	392	364	392	364
Real Estate [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	25,239	25,629	26,657	24,940
PROVISION FOR LOAN LOSSES	(1,048)	835	(2,515)	2,068
Recoveries	302	132	373	319
Charge-offs	(151)	(35)	(173)	(766)
Ending balance	24,342	26,561	24,342	26,561
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,741	2,134	1,650	2,137
PROVISION FOR LOAN LOSSES	1,305	(8)	1,629	213
Recoveries	141	178	212	300
Charge-offs	(378)	(198)	(682)	(544)
Ending balance	$ 2,809	$ 2,106	$ 2,809	$ 2,106

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Interest-bearing Time Deposits in Banks and Securities - Summary of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	$ 2,669,891	$ 2,338,683	$ 2,113,044
Securities available-for-sale, Gross Unrealized Holding Gains	68,137	81,202	70,219
Securities available-for-sale, Gross Unrealized Holding Losses	(8,915)	(4,029)	(9,435)
Securities available-for-sale, Estimated Fair Value	2,729,113	2,415,856	2,173,828
U.S. Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	10,864	518
Securities available-for-sale, Gross Unrealized Holding Gains	72	2
Securities available-for-sale, Estimated Fair Value	10,936	520
Obligations of U.S. Government Sponsored-Enterprises and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	164,351	128,919	118,907
Securities available-for-sale, Gross Unrealized Holding Gains	985	864	1,210
Securities available-for-sale, Gross Unrealized Holding Losses		(28)
Securities available-for-sale, Estimated Fair Value	165,336	129,755	120,117
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	1,340,163	1,107,795	1,027,503
Securities available-for-sale, Gross Unrealized Holding Gains	49,483	60,083	49,171
Securities available-for-sale, Gross Unrealized Holding Losses	(5,400)	(250)	(2,016)
Securities available-for-sale, Estimated Fair Value	1,384,246	1,167,628	1,074,658
Corporate Bonds and Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	94,485	95,864	97,119
Securities available-for-sale, Gross Unrealized Holding Gains	2,623	2,894	3,621
Securities available-for-sale, Estimated Fair Value	97,108	98,758	100,740
Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	856,546	871,265	734,301
Securities available-for-sale, Gross Unrealized Holding Gains	14,383	16,804	16,183
Securities available-for-sale, Gross Unrealized Holding Losses	(2,838)	(2,858)	(5,011)
Securities available-for-sale, Estimated Fair Value	868,091	885,211	745,473
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	203,482	134,322	135,214
Securities available-for-sale, Gross Unrealized Holding Gains	591	555	34
Securities available-for-sale, Gross Unrealized Holding Losses	(677)	(893)	(2,408)
Securities available-for-sale, Estimated Fair Value	$ 203,396	$ 133,984	$ 132,840

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Interest-bearing Time Deposits in Banks and Securities - Amortized Cost and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Investments, Debt and Equity Securities [Abstract]
Available-for-Sale, Amortized Cost Basis, Due within one year	$ 133,995
Available-for-Sale, Amortized Cost Basis, Due after one year through five years	707,981
Available-for-Sale, Amortized Cost Basis, Due after five years through ten years	750,600
Available-for-Sale, Amortized Cost Basis, Due after ten years	17,287
Available-for-Sale, Amortized Cost Basis, Mortgage-backed securities	1,060,028
Available-for-Sale, Amortized Cost Basis, Total	2,669,891
Available-for-Sale, Estimated Fair Value, Due within one year	135,181
Available-for-Sale, Estimated Fair Value, Due after one year through five years	737,467
Available-for-Sale, Estimated Fair Value, Due after five years through ten years	767,300
Available-for-Sale, Estimated Fair Value, Due after ten years	17,678
Available-for-Sale, Estimated Fair Value, Mortgage-backed securities	1,071,487
Securities available-for-sale, Estimated Fair Value	$ 2,729,113	$ 2,415,856	$ 2,173,828

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash dividend per share (unaudited)	$ 0.30	$ 0.27
Percentage of stock dividend (unaudited)		100.00%
Common Stock [Member]
Percentage of stock dividend (unaudited)		100.00%
Retained Earnings [Member]
Cash dividend per share (unaudited)	$ 0.30	$ 0.27
Percentage of stock dividend (unaudited)		100.00%

XML

Interest-bearing Time Deposits in Banks and Securities - Continuous Unrealized-Loss Position of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value	$ 615,230	$ 272,171	$ 165,357
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	6,807	6,652	509
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	77,597	135,369	204,682
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	2,108	2,783	3,520
Available-for-sale securities, continuous unrealized loss position, Fair Value	692,827	407,540	370,039
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	8,915	9,435	4,029
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value	304,510	41,095	15,128
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	5,335	160	60
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	2,531	101,800	21,249
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	65	1,856	190
Available-for-sale securities, continuous unrealized loss position, Fair Value	307,041	142,895	36,377
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	5,400	2,016	250
Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value	176,569	133,104	76,350
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	844	4,417	148
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	65,562	23,427	128,368
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	1,994	594	2,710
Available-for-sale securities, continuous unrealized loss position, Fair Value	242,131	156,531	204,718
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	2,838	5,011	2,858
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value	134,151	97,972	48,399
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	628	2,075	273
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	9,504	10,142	55,065
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	49	333	620
Available-for-sale securities, continuous unrealized loss position, Fair Value	143,655	108,114	103,464
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	$ 677	$ 2,408	893
Obligations of U.S. Government Sponsored-Enterprises and Agencies [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value			25,480
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss			28
Available-for-sale securities, continuous unrealized loss position, Fair Value			25,480
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss			$ 28

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Loans and Allowance for Loan Losses - Schedule of Impaired Loans and Related Allowance (Parenthetical) (Detail) - USD ($)				6 Months Ended		12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Receivables [Abstract]
Carrying amount of purchased credit impaired loans	$ 1,123,000	$ 2,151,000	$ 2,519,000	$ 1,123,000	$ 2,519,000	$ 2,151,000

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Fair Value Disclosures - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items]
Assets transfer between Level 2 and Level 3	$ 0	$ 0	$ 0	$ 0
Impaired loans carrying value	16,854,000	23,565,000	16,854,000	23,565,000	$ 20,194,000
Impaired loans valuation reserves	3,866,000		3,866,000
Impaired loans net fair value	12,988,000		12,988,000
Other real estate owned, total	$ 635,000	$ 2,208,000	$ 635,000	$ 2,208,000	$ 943,000
Minimum [Member]
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items]
Debt discounts, percentage			5.00%
Maximum [Member]
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items]
Debt discounts, percentage			25.00%

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Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
ASSETS
CASH AND DUE FROM BANKS	$ 149,524	$ 190,387	$ 166,237
FEDERAL FUNDS SOLD	5,720	8,760	3,110
INTEREST-BEARING DEPOSITS IN BANKS	18,179	54,324	68,331
Total cash and cash equivalents	173,423	253,471	237,678
INTEREST-BEARING TIME DEPOSITS IN BANKS	5,456	17,002	24,188
SECURITIES AVAILABLE-FOR-SALE, at fair value	2,729,113	2,415,856	2,173,828
SECURITIES HELD-TO-MATURITY (fair value of $301, $576 and $447 at June 30, 2015 and 2014, and December 31, 2014, respectively)	295	441	568
LOANS:
Held for investment	2,942,224	2,929,188	2,773,074
Less - allowance for loan losses	(38,999)	(36,824)	(35,892)
Net loans held for investment	2,903,225	2,892,364	2,737,182
Held for sale	25,544	8,803	13,570
Net loans	2,928,769	2,901,167	2,750,752
BANK PREMISES AND EQUIPMENT, net	104,495	103,000	96,619
INTANGIBLE ASSETS	99,039	97,359	97,429
OTHER ASSETS	74,646	59,906	65,294
Total assets	6,115,236	5,848,202	5,446,356
LIABILITIES AND SHAREHOLDERS' EQUITY
NONINTEREST-BEARING DEPOSITS	1,574,745	1,570,330	1,445,947
INTEREST-BEARING DEPOSITS	3,152,674	3,179,925	2,872,511
Total deposits	4,727,419	4,750,255	4,318,458
DIVIDENDS PAYABLE	10,265	8,972	8,968
SHORT-TERM BORROWINGS	621,155	367,110	434,583
OTHER LIABILITIES	55,204	40,328	44,311
Total liabilities	$ 5,414,043	$ 5,166,665	$ 4,806,320
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock - ($0.01 par value, authorized 120,000,000 shares; 64,156,302, 64,053,010 and 64,089,921 shares issued at June 30, 2015, 2014 and December 31, 2014, respectively)	$ 642	$ 641	$ 640
Capital surplus	306,763	305,429	304,308
Retained earnings	358,037	327,978	299,902
Treasury stock (shares at cost: 527,001, 534,905 and 529,563 at June 30, 2015, 2014 and December 31, 2014, respectively)	(6,110)	(5,878)	(5,723)
Deferred compensation	6,110	5,878	5,723
Accumulated other comprehensive earnings	35,751	47,489	35,186
Total shareholders' equity	701,193	681,537	640,036
Total liabilities and shareholders' equity	$ 6,115,236	$ 5,848,202	$ 5,446,356

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Loans and Allowance for Loan Losses - Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	$ 16,854	$ 20,194	$ 23,565
Loans collectively evaluated for impairment	2,925,370	2,908,994	2,749,509
Total	2,942,224	2,929,188	2,773,074
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	3,606	3,193	3,640
Loans collectively evaluated for impairment	646,303	636,761	614,285
Total	649,909	639,954	617,925
Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	118	165	109
Loans collectively evaluated for impairment	92,199	105,529	75,024
Total	92,317	105,694	75,133
Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	12,570	16,218	19,027
Loans collectively evaluated for impairment	1,825,918	1,806,636	1,714,577
Total	1,838,488	1,822,854	1,733,604
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	560	618	789
Loans collectively evaluated for impairment	360,950	360,068	345,623
Total	$ 361,510	$ 360,686	$ 346,412

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Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Amounts Reclassified Out Of Accumulated Other Comprehensive Income Loss [Abstract]
NET EARNINGS	$ 25,307	$ 21,205	$ 49,303	$ 43,541
OTHER ITEMS OF COMPREHENSIVE EARNINGS (LOSS):
Change in unrealized gain (loss) on investment securities available-for-sale, before income taxes	(31,190)	16,622	(17,707)	38,182
Reclassification adjustment for realized losses (gains) on investment securities included in net earnings, before income tax	(239)	1	(244)	5
Minimum liability pension adjustment, before income taxes	(108)		(108)
Total other items of comprehensive earnings (losses)	(31,537)	16,623	(18,059)	38,187
Income tax benefit (expense) related to:
Investment securities	11,000	(5,818)	6,283	(13,365)
Minimum liability pension adjustment	38		38
Total income tax benefit (expense)	11,038	(5,818)	6,321	(13,365)
COMPREHENSIVE EARNINGS	$ 4,808	$ 32,010	$ 37,565	$ 68,363

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Loans and Allowance for Loan Losses - Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans (Detail) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Receivables [Abstract]
Non-accrual loans	$ 16,854	$ 20,194	$ 23,565
Loans still accruing and past due 90 days or more	64	261	123
Troubled debt restructured loans	172	226
Total	$ 17,090	$ 20,681	$ 23,688

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Interest-bearing Time Deposits in Banks and Securities (Tables)

6 Months Ended

Jun. 30, 2015

Cash and Cash Equivalents [Abstract]

Summary of Available-for-Sale Securities

A summary of the Company’s available-for-sale securities follows (in thousands):

	June 30, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,864	$	72	$	—		$	10,936
Obligations of U.S. government sponsored enterprises and agencies		164,351		985		—			165,336
Obligations of states and political subdivisions		1,340,163		49,483		(5,400	)		1,384,246
Corporate bonds and other		94,485		2,623		—			97,108
Residential mortgage-backed securities		856,546		14,383		(2,838	)		868,091
Commercial mortgage-backed securities		203,482		591		(677	)		203,396
Total securities available-for-sale	$	2,669,891	$	68,137	$	(8,915	)	$	2,729,113

	June 30, 2014
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Obligations of U.S. government sponsored-enterprises and agencies	$	118,907	$	1,210	$	—		$	120,117
Obligations of states and political subdivisions		1,027,503		49,171		(2,016	)		1,074,658
Corporate bonds and other		97,119		3,621		—			100,740
Residential mortgage-backed securities		734,301		16,183		(5,011	)		745,473
Commercial mortgage-backed securities		135,214		34		(2,408	)		132,840
Total securities available-for-sale	$	2,113,044	$	70,219	$	(9,435	)	$	2,173,828

	December 31, 2014
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	518	$	2	$	—		$	520
Obligations of U.S. government sponsored enterprises and agencies		128,919		864		(28	)		129,755
Obligations of states and political subdivisions		1,107,795		60,083		(250	)		1,167,628
Corporate bonds and other		95,864		2,894		—			98,758
Residential mortgage-backed securities		871,265		16,804		(2,858	)		885,211
Commercial mortgage-backed securities		134,322		555		(893	)		133,984
Total securities available-for-sale	$	2,338,683	$	81,202	$	(4,029	)	$	2,415,856

Amortized Cost and Estimated Fair Value of Available-for-Sale Securities

The amortized cost and estimated fair value of available-for-sale securities at June 30, 2015, by contractual and expected maturity, are shown below (in thousands):

	Amortized Cost Basis		Estimated Fair Value
Due within one year	$	133,995	$	135,181
Due after one year through five years		707,981		737,467
Due after five years through ten years		750,600		767,300
Due after ten years		17,287		17,678
Mortgage-backed securities		1,060,028		1,071,487
Total	$	2,669,891	$	2,729,113

Continuous Unrealized-Loss Position of Available-for-Sale Securities

The following tables disclose, as of June 30, 2015 and 2014, and December 31, 2014, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands):

	Less than 12 Months				12 Months or Longer				Total
June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	304,510	$	5,335	$	2,531	$	65	$	307,041	$	5,400
Residential mortgage-backed securities		176,569		844		65,562		1,994		242,131		2,838
Commercial mortgage-backed securities		134,151		628		9,504		49		143,655		677
Total	$	615,230	$	6,807	$	77,597	$	2,108	$	692,827	$	8,915

	Less than 12 Months				12 Months or Longer				Total
June 30, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	41,095	$	160	$	101,800	$	1,856	$	142,895	$	2,016
Residential mortgage-backed securities		133,104		4,417		23,427		594		156,531		5,011
Commercial mortgage-backed securities		97,972		2,075		10,142		333		108,114		2,408
Total	$	272,171	$	6,652	$	135,369	$	2,783	$	407,540	$	9,435

	Less than 12 Months				12 Months or Longer				Total
December 31, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of U.S. government sponsored enterprises and agencies	$	25,480	$	28	$	—	$	—	$	25,480	$	28
Obligations of states and political subdivisions		15,128		60		21,249		190		36,377		250
Residential mortgage-backed securities		76,350		148		128,368		2,710		204,718		2,858
Commercial mortgage-backed securities		48,399		273		55,065		620		103,464		893
Total	$	165,357	$	509	$	204,682	$	3,520	$	370,039	$	4,029

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Loans and Allowance for Loan Losses - Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans (Parenthetical) (Detail) - USD ($)				6 Months Ended		12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Receivables [Abstract]
Carrying amount of purchased credit impaired loans	$ 1,123,000	$ 2,151,000	$ 2,519,000	$ 1,123,000	$ 2,519,000	$ 2,151,000
Troubled debt restructured loans	$ 6,936,000	$ 9,073,000	$ 10,810,000

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Short-Term Borrowings (Tables)

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Schedule of Short-Term Borrowings

Short-Term borrowings at June 30, 2015 and 2014, and December 31, 2014 consisted of the following (dollars in thousands):

	June 30,				December 31,
	2015		2014		2014
Securities sold under agreements with customers to repurchase	$	346,369	$	312,893	$	357,400
Federal funds purchased		9,750		10,625		8,700
Advances from Federal Home Loan Bank of Dallas		265,036		111,065		1,010
Total	$	621,155	$	434,583	$	367,110

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock [Member]	Capital Surplus [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Deferred Compensation [Member]	Accumulated Other Comprehensive Earnings [Member]
Beginning Balance at Dec. 31, 2013	$ 587,647	$ 320	$ 302,991	$ 273,972	$ (5,490)	$ 5,490	$ 10,364
Beginning Balance, Shares at Dec. 31, 2013		31,992,497			(269,467)
NET EARNINGS (unaudited)	43,541			43,541
Stock option exercises (unaudited)	910		910
Stock option exercises, Shares (unaudited)		37,753
Cash dividends declared (unaudited)	(17,291)			(17,291)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)	24,822						24,822
Additional tax benefit related to directors' deferred compensation plan (unaudited)	50		50
Shares redeemed in connection with directors' deferred compensation plan, net (unaudited)					$ (233)	233
Shares redeemed in connection with directors' deferred compensation plan, net, Shares (unaudited)					2,696
Stock option expense (unaudited)	357		357
Two-for-one stock split in the form of a 100% stock dividend (unaudited)		$ 320		(320)
Two-for-one stock split in the form of a 100% stock dividend, Shares (unaudited)		32,022,760			(268,134)
Ending Balance (unaudited) at Jun. 30, 2014	640,036	$ 640	304,308	299,902	$ (5,723)	5,723	35,186
Ending Balance, Shares (unaudited) at Jun. 30, 2014		64,053,010			(534,905)
Beginning Balance at Dec. 31, 2014	681,537	$ 641	305,429	327,978	$ (5,878)	5,878	47,489
Beginning Balance, Shares at Dec. 31, 2014		64,089,921			(529,563)
NET EARNINGS (unaudited)	49,303			49,303
Stock option exercises (unaudited)	925	$ 1	924
Stock option exercises, Shares (unaudited)		66,381
Cash dividends declared (unaudited)	(19,244)			(19,244)
Minimum liability pension adjustment, net of related income taxes (unaudited)	(70)						(70)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)	(11,668)						(11,668)
Additional tax benefit related to directors' deferred compensation plan (unaudited)	50		50
Shares redeemed in connection with directors' deferred compensation plan, net (unaudited)					$ (232)	232
Shares redeemed in connection with directors' deferred compensation plan, net, Shares (unaudited)		0			2,562
Stock option expense (unaudited)	360		360
Ending Balance (unaudited) at Jun. 30, 2015	$ 701,193	$ 642	$ 306,763	$ 358,037	$ (6,110)	$ 6,110	$ 35,751
Ending Balance, Shares (unaudited) at Jun. 30, 2015		64,156,302			(527,001)

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Statement of Financial Position [Abstract]
SECURITIES HELD-TO-MATURITY, fair value	$ 301	$ 447	$ 576
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	120,000,000	120,000,000	120,000,000
Common stock, shares issued	64,156,302	64,089,921	64,053,010
Treasury stock, shares	527,001	529,563	534,905

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Stock Based Compensation

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock Based Compensation

Note 8 - Stock Based Compensation

The Company grants incentive stock options for a fixed number of shares with an exercise price equal to the fair value of the shares at the date of grant to employees. Through June 30, 2015, no options have been granted in 2015 and no options were granted in 2014. The Company recorded stock option expense totaling $182,000 and $212,000 for the three months ended June 30, 2015 and 2014, respectively. The Company recorded stock option expense totaling $360,000 and $357,000 for the six months ended June 30, 2015 and 2014, respectively. The additional disclosure requirements under authoritative accounting guidance have been omitted due to immateriality.

On April 28, 2015, shareholders of the Company approved a restricted stock plan for selected employees, officers, non-employee directors and consultants. On July 21, 2015, 7,070 shares were granted to the ten non-employee directors. Total value of these shares totaled $250,000 and will be expensed over the period from grant date to April 26, 2016, the next scheduled annual shareholders’ meeting whereby the directors term will expire.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 04, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Trading Symbol	FFIN
Entity Registrant Name	FIRST FINANCIAL BANKSHARES INC
Entity Central Index Key	0000036029
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		64,176,986

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Pension Plan

6 Months Ended

Jun. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Pension Plan

Note 9 - Pension Plan

The Company’s defined benefit pension plan was frozen effective January 1, 2004, whereby no new participants will be added to the plan and no additional years of service will accrue to participants, unless the pension plan is reinstated at a future date. The pension plan covered substantially all of the Company’s employees at the time. The benefits for each employee were based on years of service and a percentage of the employee’s qualifying compensation during the final years of employment. The Company’s funding policy was and is to contribute annually the amount necessary to satisfy the Internal Revenue Service’s funding standards. Contributions to the pension plan, prior to freezing the plan, were intended to provide not only for benefits attributed to service to date but also for those expected to be earned in the future. As a result of the Pension Protection Act of 2006 (the “Protection Act”), the Company will be required to contribute amounts in future years to fund any shortfalls. The Company has evaluated the provisions of the Protection Act as well as the Internal Revenue Service’s funding standards to develop a plan for funding in future years. The Company made a contribution totaling $250,000 in 2014 and has to date made no contributions in 2015.

During the fourth quarter of 2014, as permitted by the Internal Revenue Service, the Company offered settlement of a portion of its pension obligations to those plan participants who no longer were employed by the Company. As a result of the partial settlement of the plan, the Company recognized in the fourth quarter of 2014 $2,909,000, in pension expense, before income tax. The effect of this transaction was relatively neutral to shareholders’ equity since the recorded pension obligation associated with the plan participants who accepted the settlement closely approximated the amount offered to such plan participants and the amount recognized in pension expense had been previously recognized as unrealized losses in other comprehensive earnings. As a result, the Company paid $10,626,000 out of pension plan assets, or approximately 43% of the total outstanding obligation balance, to plan participants and the number of participants was reduced by 335, or 44%. The Company’s investment risk and administrative expense associated with the Company’s pension plan should be significantly reduced going forward.

Net periodic benefit costs totaling $74,000 and $84,000 were recorded for the three months ended June 30, 2015 and 2014, respectively. Net periodic benefit costs totaling $149,000 and $214,000 were recorded for the six months ended June 30, 2015 and 2014, respectively.

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Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
INTEREST INCOME:
Interest and fees on loans	$ 36,034	$ 33,846	$ 71,095	$ 66,904
Interest on investment securities:
Taxable	7,399	7,091	15,207	14,175
Exempt from federal income tax	9,861	8,228	18,981	16,208
Interest on federal funds sold and interest-bearing deposits in banks	50	89	130	176
Total interest income	53,344	49,254	105,413	97,463
INTEREST EXPENSE:
Interest on deposits	902	955	1,829	1,895
Other	106	82	148	178
Total interest expense	1,008	1,037	1,977	2,073
Net interest income	52,336	48,217	103,436	95,390
PROVISION FOR LOAN LOSSES	1,554	1,124	2,844	2,814
Net interest income after provision for loan losses	50,782	47,093	100,592	92,576
NONINTEREST INCOME:
Trust fees	4,740	4,549	9,472	9,125
Service charges on deposit accounts	4,021	4,174	7,789	8,221
ATM, interchange and credit card fees	5,445	4,754	10,415	9,197
Real estate mortgage operations	1,942	1,337	3,368	2,361
Net gain (loss) on sale of available-for-sale securities (includes $239 and ($1) for the three months ended June 30, 2015 and 2014, respectively, and $244 and ($5) for the six months ended June 30, 2015 and 2014, respectively, related to accumulated other comprehensive earnings reclassifications)	239	(1)	244	(5)
Net gain (loss) on sale of foreclosed assets	(49)	47	(19)	499
Other	1,471	1,012	2,438	2,879
Total noninterest income	17,809	15,872	33,707	32,277
NONINTEREST EXPENSE:
Salaries and employee benefits	19,173	17,274	37,438	34,688
Net occupancy expense	2,394	2,273	4,590	4,507
Equipment expense	2,992	2,665	5,891	5,287
FDIC insurance premiums	749	684	1,498	1,343
ATM, interchange and credit card expenses	1,609	1,696	3,335	3,176
Professional and service fees	1,157	963	2,222	2,044
Printing, stationery and supplies	471	554	1,067	1,329
Amortization of intangible assets	72	74	162	148
Other	6,587	8,819	12,948	14,927
Total noninterest expense	35,204	35,002	69,151	67,449
EARNINGS BEFORE INCOME TAXES	33,387	27,963	65,148	57,404
INCOME TAX EXPENSE (includes $84 and $0 for the three months ended June 30, 2015 and 2014, respectively, and $85 and ($2) for the six months ended June 30, 2015 and 2014, respectively, related to income tax expense from reclassification items)	8,080	6,758	15,845	13,863
NET EARNINGS	$ 25,307	$ 21,205	$ 49,303	$ 43,541
EARNINGS PER SHARE, BASIC	$ 0.39	$ 0.33	$ 0.77	$ 0.68
EARNINGS PER SHARE, ASSUMING DILUTION	0.39	0.33	0.77	0.68
DIVIDENDS PER SHARE	$ 0.16	$ 0.14	$ 0.30	$ 0.27

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Earnings Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share

Note 3 - Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of shares outstanding during the periods presented. In computing diluted earnings per common share for the three and six months ended June 30, 2015 and 2014, the Company assumes that all dilutive outstanding options to purchase common stock have been exercised at the beginning of the period (or the time of issuance, if later). The dilutive effect of the outstanding options is reflected by application of the treasury stock method, whereby the proceeds from the exercised options are assumed to be used to purchase common stock at the average market price during the respective periods. The weighted average common shares outstanding used in computing basic earnings per common share for the three months ended June 30, 2015 and 2014 were 64,148,356 and 64,045,282 shares, respectively. The weighted average common shares outstanding used in computing basic earnings per common share for the six months ended June 30, 2015 and 2014 were 64,135,731 and 64,027,776 shares, respectively. The weighted average common shares outstanding used in computing fully diluted earnings per common share for the three months ended June 30, 2015 and 2014 were 64,354,720 and 64,301,306 shares, respectively. The weighted average common shares outstanding used in computing fully diluted earnings per common share for the six months ended June 30, 2015 and 2014 were 64,328,672 and 64,298,525 shares, respectively.

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Stock Split

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Stock Split

Note 2 - Stock Split

On April 22, 2014, the Company’s Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend effective for shareholders of record on May 15, 2014 that was distributed on June 2, 2014. All per share amounts in this report have been restated to reflect this stock split. An amount equal to the par value of the additional common shares issued pursuant to the stock split was reflected as a transfer from retained earnings to common stock on the consolidated financial statements as of and for the six months ended June 30, 2014.

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Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Loans Held-for-Investment by Class of Financing Receivables

Loans held-for-investment by class of financing receivables are as follows (in thousands):

	June 30,				December 31,
	2015		2014		2014
Commercial	$	649,909	$	617,925	$	639,954
Agricultural		92,317		75,133		105,694
Real estate		1,838,488		1,733,604		1,822,854
Consumer		361,510		346,412		360,686
Total loans held-for-investment	$	2,942,224	$	2,773,074	$	2,929,188

Non-Accrual Loans, Loans Still Accruing and Past Due 90 Days or More and Restructured Loans

The Company’s non-accrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands):

	June 30,				December 31,
	2015		2014		2014
Non-accrual loans*	$	16,854	$	23,565	$	20,194
Loans still accruing and past due 90 days or more		64		123		261
Troubled debt restructured loans**		172		—		226
Total	$	17,090	$	23,688	$	20,681

* Includes $1,123,000, $2,519,000 and $2,151,000 of purchased credit impaired loans as of June 30, 2015 and 2014, and December 31, 2014, respectively.

** Troubled debt restructured loans of $6,936,000, $10,810,000 and $9,073,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at June 30, 2015 and 2014, and December 31, 2014, respectively.

Recorded Investment in Impaired Loans and Related Valuation Allowance

The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands):

June 30, 2015				June 30, 2014				December 31, 2014
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	16,854	$	3,866	$	23,565	$	4,883	$	20,194	$	4,213

Schedule of Non-Accrual Loans

Non-accrual loans at June 30, 2015 and 2014, and December 31, 2014, consisted of the following by class of financing receivables (in thousands):

	June 30,				December 31,
	2015		2014		2014
Commercial	$	3,606	$	3,640	$	3,193
Agricultural		118		109		165
Real estate		12,570		19,027		16,218
Consumer		560		789		618
Total	$	16,854	$	23,565	$	20,194

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of June 30, 2015 and 2014, and December 31, 2014, are summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.

June 30, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	4,168	$	263	$	3,343	$	3,606	$	1,168	$	3,717	$	3,298
Agricultural		163		—		118		118		87		148		136
Real Estate		18,711		2,921		9,649		12,570		2,506		13,817		12,876
Consumer		784		367		193		560		105		705		567
Total	$	23,826	$	3,551	$	13,303	$	16,854	$	3,866	$	18,387	$	16,877

* Includes $1,123,000 of purchased credit impaired loans.

June 30, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	4,095	$	271	$	3,369	$	3,640	$	1,161	$	4,083	$	3,224
Agricultural		121		—		109		109		41		118		101
Real Estate		24,619		5,626		13,401		19,027		3,497		21,442		20,920
Consumer		960		442		347		789		184		879		759
Total	$	29,795	$	6,339	$	17,226	$	23,565	$	4,883	$	26,522	$	25,004

* Includes $2,519,000 of purchased credit impaired loans.

December 31, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,749	$	287	$	2,906	$	3,193	$	1,171	$	3,698
Agricultural		177		—		165		165		57		179
Real Estate		22,177		4,859		11,359		16,218		2,867		19,837
Consumer		838		420		198		618		118		783
Total	$	26,941	$	5,566	$	14,628	$	20,194	$	4,213	$	24,497

* Includes $2,151,000 of purchased credit impaired loans.

Schedule of Internal Ratings of Loans

The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which are the same, at June 30, 2015 and 2014, and December 31, 2014 (in thousands):

June 30, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,071	$	25,438	$	13,400	$	—	$	649,909
Agricultural		91,657		159		501		—		92,317
Real Estate		1,783,633		21,504		33,308		43		1,838,488
Consumer		360,094		308		1,108		—		361,510
Total	$	2,846,455	$	47,409	$	48,317	$	43	$	2,942,224

June 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	605,163	$	3,678	$	9,084	$	—	$	617,925
Agricultural		74,734		102		296		1		75,133
Real Estate		1,668,844		16,628		48,001		131		1,733,604
Consumer		344,403		522		1,483		4		346,412
Total	$	2,693,144	$	20,930	$	58,864	$	136	$	2,773,074

December 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	626,266	$	3,853	$	9,835	$	—	$	639,954
Agricultural		105,101		91		502		—		105,694
Real Estate		1,765,886		15,106		41,722		140		1,822,854
Consumer		358,953		403		1,329		1		360,686
Total	$	2,856,206	$	19,453	$	53,388	$	141	$	2,929,188

Schedule of Past Due Loans

At June 30, 2015 and 2014, and December 31, 2014, the Company’s past due loans are as follows (in thousands):

June 30, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	7,854	$	38	$	12	$	7,904	$	642,005	$	649,909	$	—
Agricultural		270		—		—		270		92,047		92,317		—
Real Estate		13,458		1,255		1,933		16,646		1,821,842		1,838,488		47
Consumer		1,507		342		98		1,947		359,563		361,510		17
Total	$	23,089	$	1,635	$	2,043	$	26,767	$	2,915,457	$	2,942,224	$	64

June 30, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	7,290	$	51	$	248	$	7,589	$	610,336	$	617,925	$	23
Agricultural		134		14		—		148		74,985		75,133		—
Real Estate		16,781		823		1,973		19,577		1,714,027		1,733,604		83
Consumer		1,470		443		153		2,066		344,346		346,412		17
Total	$	25,675	$	1,331	$	2,374	$	29,380	$	2,743,694	$	2,773,074	$	123

December 31, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,611	$	94	$	175	$	4,880	$	635,074	$	639,954	$	24
Agricultural		437		42		—		479		105,215		105,694		—
Real Estate		12,002		707		1,868		14,577		1,808,277		1,822,854		207
Consumer		2,322		496		134		2,952		357,734		360,686		30
Total	$	19,372	$	1,339	$	2,177	$	22,888	$	2,906,300	$	2,929,188	$	261

* 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.

Schedule of Allowance for Loan Losses by Portfolio Segment

The following table details the allowance for loan losses at June 30, 2015 and 2014, and December 31, 2014 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at June 30, 2015 and 2014, or December 31, 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,168	$	87	$	2,506	$	105	$	3,866
Loans collectively evaluated for impairment		10,288		305		21,836		2,704		35,133
Total	$	11,456	$	392	$	24,342	$	2,809	$	38,999
June 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,161	$	41	$	3,497	$	184	$	4,883
Loans collectively evaluated for impairment		5,700		323		23,064		1,922		31,009
Total	$	6,861	$	364	$	26,561	$	2,106	$	35,892
December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,171	$	57	$	2,867	$	118	$	4,213
Loans collectively evaluated for impairment		6,819		470		23,790		1,532		32,611
Total	$	7,990	$	527	$	26,657	$	1,650	$	36,824

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the three and six months ended June 30, 2015 and 2014 are summarized as follows by portfolio segment (in thousands):

Three months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828
Provision for loan losses		1,324			(27	)		(1,048	)		1,305			1,554
Recoveries		117			—			302			141			560
Charge-offs		(360	)		(54	)		(151	)		(378	)		(943	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999
Three months ended June 30, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,645		$	285		$	25,629		$	2,134		$	34,693
Provision for loan losses		219			78			835			(8	)		1,124
Recoveries		65			1			132			178			376
Charge-offs		(68	)		—			(35	)		(198	)		(301	)
Ending balance	$	6,861		$	364		$	26,561		$	2,106		$	35,892
Six months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		3,789			(59	)		(2,515	)		1,629			2,844
Recoveries		197			2			373			212			784
Charge-offs		(520	)		(78	)		(173	)		(682	)		(1,453	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999

Six months ended June 30, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,440		$	383		$	24,940		$	2,137		$	33,900
Provision for loan losses		554			(21	)		2,068			213			2,814
Recoveries		154			3			319			300			776
Charge-offs		(287	)		(1	)		(766	)		(544	)		(1,598	)
Ending balance	$	6,861		$	364		$	26,561		$	2,106		$	35,892

Schedule of Investment in Loans Related to Balance in Allowance for Loan Losses on Basis of Company's Impairment Methodology

The Company’s recorded investment in loans as of June 30, 2015 and 2014, and December 31, 2014 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology was as follows (in thousands). Purchased credit impaired loans of $1,123,000, $2,519,000 and $2,151,000 at June 30, 2015 and 2014, and December 31, 2014, respectively, are included in loans individually evaluated for impairment.

June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,606	$	118	$	12,570	$	560	$	16,854
Loans collectively evaluated for impairment		646,303		92,199		1,825,918		360,950		2,925,370
Total	$	649,909	$	92,317	$	1,838,488	$	361,510	$	2,942,224
June 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,640	$	109	$	19,027	$	789	$	23,565
Loans collectively evaluated for impairment		614,285		75,024		1,714,577		345,623		2,749,509
Total	$	617,925	$	75,133	$	1,733,604	$	346,412	$	2,773,074
December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,193	$	165	$	16,218	$	618	$	20,194
Loans collectively evaluated for impairment		636,761		105,529		1,806,636		360,068		2,908,994
Total	$	639,954	$	105,694	$	1,822,854	$	360,686	$	2,929,188

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the three and six months ended June 30, 2015 and 2014 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		2	$	74	$	74		2	$	74	$	74
Agricultural		—		—		—		3		128		128
Real Estate		2		336		336		2		336		336
Consumer		2		4		4		3		28		28
Total		6	$	414	$	414		10	$	566	$	566

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Number		Pre- Modification Recorded Investment		Combined   Rate and Maturity		Number		Pre- Modification Recorded Investment		Combined   Rate and Maturity
Commercial		1	$	302	$	302		5	$	399	$	399
Agricultural		1		39		39		1		39		39
Real Estate		3		514		514		4		590		590
Consumer		—		—		—		3		11		11
Total		5	$	855	$	855		13	$	1,039	$	1,039

Schedule of How Loans Were Modified as Troubled Debt Restructured Loans

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three and six months ended June 30, 2015 and 2014 (in thousands):

	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	74	$	—	$	—	$	74	$	—
Agricultural		—		—		—		—		128		—
Real Estate		257		—		79		257		—		79
Consumer		—		4		—		—		4		24
Total	$	257	$	78	$	79	$	257	$	206	$	103
	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	—	$	302	$	—	$	97	$	302
Agricultural		—		—		39		—		—		39
Real Estate		—		42		472		—		118		472
Consumer		—		—		—		—		8		3
Total	$	—	$	42	$	813	$	—	$	223	$	816

Schedule of Troubled Debt Restructurings

The loans with payment default are as follows (dollars in thousands):

	Six Months Ended June 30, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Number		Balance		Number		Balance
Commercial		—	$	—		—	$	—
Agriculture		—		—		—		—
Real Estate		—		—		—		—
Consumer		1		32		1		32
Total		1	$	32		1	$	32

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Fair Value Disclosures

6 Months Ended

Jun. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Note 10 - Fair Value Disclosures

The authoritative accounting guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact.

The authoritative accounting guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows:

• 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.

A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below.

In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Securities classified as available-for-sale and trading are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market spreads, cash flows, the United States Treasury yield curve, live trading levels, trade execution data, dealer quotes, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other items.

There were no transfers between Level 2 and Level 3 during the three and six months ended June 30, 2015 or 2014.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of June 30, 2015 and 2014, and December 31, 2014, respectively, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

June 30, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,936	$	—	$	—	$	10,936
Obligations of U. S. government sponsored-enterprises and agencies		—		165,336		—		165,336
Obligations of states and political subdivisions		—		1,384,246		—		1,384,246
Corporate bonds		—		92,188		—		92,188
Residential mortgage-backed securities		—		868,091		—		868,091
Commercial mortgage-backed securities		—		203,396		—		203,396
Other securities		4,920		—		—		4,920
Total	$	15,856	$	2,713,257	$	—	$	2,729,113
June 30, 2014
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
Obligations of U. S. government sponsored-enterprises and agencies	$	—	$	120,117	$	—	$	120,117
Obligations of states and political subdivisions		—		1,074,658		—		1,074,658
Corporate bonds		—		95,940		—		95,940
Residential mortgage-backed securities		—		745,473		—		745,473
Commercial mortgage-backed securities		—		132,840		—		132,840
Other securities		4,800		—		—		4,800
Total	$	4,800	$	2,169,028	$	—	$	2,173,828

December 31, 2014
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	520	$	—	$	—	$	520
Obligations of U. S. government sponsored-enterprises and agencies		—		129,755		—		129,755
Obligations of states and political subdivisions		—		1,167,628		—		1,167,628
Corporate bonds		—		94,065		—		94,065
Residential mortgage-backed securities		—		885,211		—		885,211
Commercial mortgage-backed securities		—		133,984		—		133,984
Other securities		4,693		—		—		4,693
Total	$	5,213	$	2,410,643	$	—	$	2,415,856

The tables above for 2014 has been changed to conform to the 2015 presentation.

Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a non-recurring basis include the following at June 30, 2015:

Impaired Loans – Impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 2 inputs based on observable market data. At June 30, 2015, impaired loans with a carrying value of $16,854,000 were reduced by specific valuation reserves totaling $3,866,000 resulting in a net fair value of $12,988,000.

Loans Held-for-Sale – Loans held-for-sale are reported at the lower of cost or fair value. In determining whether the fair value of loans held-for-sale is less than cost when quoted market prices are not available, the Company considers investor commitments/contracts. These loans are considered Level 2 of the fair value hierarchy. At June 30, 2015, the Company’s mortgage loans held-for-sale were recorded at cost as fair value approximated cost.

Certain non-financial assets and non-financial liabilities measured at fair value on a non-recurring basis include other real estate owned, goodwill and other intangible assets and other non-financial long-lived assets. Non-financial assets measured at fair value on a non-recurring basis during the three and six months ended June 30, 2015 and 2014 include other real estate owned which, subsequent to their initial transfer to other real estate owned from loans, were re-measured at fair value through a write-down included in gain (loss) on sale of foreclosed assets. During the reported periods, all fair value measurements for foreclosed assets utilized Level 2 inputs based on observable market data, generally third-party appraisals, or Level 3 inputs based on customized discounting criteria. These appraisals are evaluated individually and discounted as necessary due to the age of the appraisal, lack of comparable sales, expected holding periods of property or special use type of the property. Such discounts vary by appraisal based on the above factors but generally range from 5% to 25% of the appraised value. Reevaluation of other real estate owned is performed at least annually as required by regulatory guidelines or more often if particular circumstances arise. The following table presents other real estate owned that were re-measured subsequent to their initial transfer to other real estate owned (dollars in thousands):

	Three Months Ended June 30,
	2015			2014
Carrying value of other real estate owned prior to re-measurement	$	341		$	708
Write-downs included in gain (loss) on sale of other real estate owned		(85	)		(89	)
Fair value	$	256		$	619
	Six Months Ended June 30,
	2015			2014
Carrying value of other real estate owned prior to re-measurement	$	351		$	708
Write-downs included in gain (loss) on sale of other real estate owned		(95	)		(89	)
Fair value	$	256		$	619

At June 30, 2015 and 2014, and December 31, 2014, other real estate owned totaled $635,000, $2,208,000 and $943,000, respectively.

The Company is required under current authoritative accounting guidance to disclose the estimated fair value of their financial instrument assets and liabilities including those subject to the requirements discussed above. For the Company, as for most financial institutions, substantially all of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction.

The estimated fair value amounts of financial instruments have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required to interpret data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

In addition, reasonable comparability between financial institutions may not be likely due to the wide range of permitted valuation techniques and numerous estimates that must be made given the absence of active secondary markets for many of the financial instruments. This lack of uniform valuation methodologies also introduces a greater degree of subjectivity to these estimated fair values.

Cash and due from banks, federal funds sold, interest-bearing deposits and time deposits in banks and accrued interest receivable and payable are liquid in nature and considered Levels 1 or 2 of the fair value hierarchy.

Financial instruments with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market for similar assets and liabilities and are considered Levels 2 and 3 of the fair value hierarchy. Financial instrument liabilities with no stated maturities have an estimated fair value equal to both the amount payable on demand and the carrying value and are considered Level 1 of the fair value hierarchy.

The carrying value and the estimated fair value of the Company’s contractual off-balance-sheet unfunded lines of credit, loan commitments and letters of credit, which are generally priced at market at the time of funding, are not material.

The estimated fair values and carrying values of all financial instruments under current authoritative guidance at June 30, 2015 and 2014, and December 31, 2014, were as follows (in thousands):

	June 30,				June 30,				December 31,
	2015				2014				2014
	Carrying		Estimated		Carrying		Estimated		Carrying		Estimated		Fair Value
	Value		Fair Value		Value		Fair Value		Value		Fair Value		Hierarchy
Cash and due from banks	$	149,524	$	149,524	$	166,237	$	166,237	$	190,387	$	190,387	Level 1
Federal funds sold		5,720		5,720		3,110		3,110		8,760		8,760	Level 1
Interest-bearing deposits in banks		18,179		18,179		68,331		68,331		54,324		54,324	Level 1
Interest-bearing time deposits in banks		5,456		5,466		24,188		24,266		17,002		17,032	Level 2
Available-for-sale securities		2,729,113		2,729,113		2,173,828		2,173,828		2,415,856		2,415,856	Levels 1 and 2
Held-to-maturity securities		295		301		568		576		441		447	Level 2
Loans		2,928,769		2,935,344		2,750,752		2,764,118		2,901,167		2,906,399	Level 3
Accrued interest receivable		32,003		32,003		27,583		27,583		28,998		28,998	Level 2
Deposits with stated maturities		598,404		600,093		692,937		695,006		648,992		650,893	Level 2
Deposits with no stated maturities		4,129,015		4,129,015		3,625,521		3,625,521		4,101,263		4,101,263	Level 1
Short-term borrowings		621,155		621,155		434,583		434,583		367,110		367,110	Level 2
Accrued interest payable		242		242		291		291		237		237	Level 2

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Short-Term Borrowings

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Short-Term Borrowings

Note 6 – Short-Term Borrowings

Short-Term borrowings at June 30, 2015 and 2014, and December 31, 2014 consisted of the following (dollars in thousands):

	June 30,				December 31,
	2015		2014		2014
Securities sold under agreements with customers to repurchase	$	346,369	$	312,893	$	357,400
Federal funds purchased		9,750		10,625		8,700
Advances from Federal Home Loan Bank of Dallas		265,036		111,065		1,010
Total	$	621,155	$	434,583	$	367,110

Securities sold under repurchase agreements are generally with significant customers of the Company that require short-term liquidity for their funds for which the Company pledges certain securities that have a fair value equal to at least the amount of the short-term borrowings. The agreements mature daily and therefore the risk arising from a decline in the fair value of the collateral pledged is minimal. The securities pledged are mortgage-backed securities. These agreements do not include “right of set-off” provisions and therefore the Company does not offset such agreements for financial reporting purposes.

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Interest-bearing Time Deposits in Banks and Securities

6 Months Ended

Jun. 30, 2015

Cash and Cash Equivalents [Abstract]

Interest-bearing Time Deposits in Banks and Securities

Note 4 - Interest-bearing Time Deposits in Banks and Securities

Interest-bearing time deposits in banks totaled $5,456,000, $24,188,000 and $17,002,000 at June 30, 2015 and 2014 and December 31, 2014, respectively, and have original maturities generally ranging from one to four years. Of these amounts, $983,000, $5,269,000 and $3,195,000 are time deposits with balances greater than $250,000, the FDIC insured limit, at June 30, 2015 and 2014 and December 31, 2014, respectively.

Management classifies debt and equity securities as held-to-maturity, available-for-sale, or trading based on its intent. Debt securities that management has the positive intent and ability to hold to maturity are classified as held-to-maturity and recorded at cost, adjusted for amortization of premiums and accretion of discounts, which are recognized as adjustments to interest income using the interest method. Securities not classified as held-to-maturity or trading are classified as available-for-sale and recorded at fair value, with all unrealized gains and unrealized losses judged to be temporary, net of deferred income taxes, excluded from earnings and reported in the consolidated statements of comprehensive earnings. Available-for-sale securities that have unrealized losses that are judged other-than-temporary are included in gain (loss) on sale of securities and a new cost basis is established. Securities classified as trading are recorded at fair value with unrealized gains and losses included in earnings.

The Company records its available-for-sale and trading securities portfolio at fair value. Fair values of these securities are determined based on methodologies in accordance with current authoritative accounting guidance. Fair values are volatile and may be influenced by a number of factors, including market interest rates, prepayment speeds, discount rates, credit ratings and yield curves. Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on the quoted prices of similar instruments or an estimate of fair value by using a range of fair value estimates in the market place as a result of the illiquid market specific to the type of security.

When the fair value of a security is below its amortized cost, and depending on the length of time the condition exists and the extent the fair value is below amortized cost, additional analysis is performed to determine whether an other-than-temporary impairment condition exists. Available-for-sale and held-to-maturity securities are analyzed quarterly for possible other-than-temporary impairment. The analysis considers (i) whether we have the intent to sell our securities prior to recovery and/or maturity, (ii) whether it is more likely than not that we will have to sell our securities prior to recovery and/or maturity, (iii) the length of time and extent to which the fair value has been less than amortized cost, and (iv) the financial condition of the issuer. Often, the information available to conduct these assessments is limited and rapidly changing, making estimates of fair value subject to judgment. If actual information or conditions are different than estimated, the extent of the impairment of the security may be different than previously estimated, which could have a material effect on the Company’s results of operations and financial condition.

The Company’s investment portfolio consists of U.S. Treasury securities, obligations of U. S. government sponsored enterprises and agencies, obligations of state and political subdivisions, mortgage pass-through securities, corporate bonds and general obligation or revenue based municipal bonds. Pricing for such securities is generally readily available and transparent in the market. The Company utilizes independent third party pricing services to value its investment securities, which the Company reviews as well as the underlying pricing methodologies for reasonableness and to ensure such prices are aligned with pricing matrices. The Company validates quarterly, on a sample basis, prices supplied by the independent pricing services by comparison to prices obtained from other third party sources.

A summary of the Company’s available-for-sale securities follows (in thousands):

	June 30, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,864	$	72	$	—		$	10,936
Obligations of U.S. government sponsored enterprises and agencies		164,351		985		—			165,336
Obligations of states and political subdivisions		1,340,163		49,483		(5,400	)		1,384,246
Corporate bonds and other		94,485		2,623		—			97,108
Residential mortgage-backed securities		856,546		14,383		(2,838	)		868,091
Commercial mortgage-backed securities		203,482		591		(677	)		203,396
Total securities available-for-sale	$	2,669,891	$	68,137	$	(8,915	)	$	2,729,113

	June 30, 2014
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
Obligations of U.S. government sponsored-enterprises and agencies	$	118,907	$	1,210	$	—		$	120,117
Obligations of states and political subdivisions		1,027,503		49,171		(2,016	)		1,074,658
Corporate bonds and other		97,119		3,621		—			100,740
Residential mortgage-backed securities		734,301		16,183		(5,011	)		745,473
Commercial mortgage-backed securities		135,214		34		(2,408	)		132,840
Total securities available-for-sale	$	2,113,044	$	70,219	$	(9,435	)	$	2,173,828

	December 31, 2014
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	518	$	2	$	—		$	520
Obligations of U.S. government sponsored enterprises and agencies		128,919		864		(28	)		129,755
Obligations of states and political subdivisions		1,107,795		60,083		(250	)		1,167,628
Corporate bonds and other		95,864		2,894		—			98,758
Residential mortgage-backed securities		871,265		16,804		(2,858	)		885,211
Commercial mortgage-backed securities		134,322		555		(893	)		133,984
Total securities available-for-sale	$	2,338,683	$	81,202	$	(4,029	)	$	2,415,856

Disclosures related to the Company’s held-to-maturity securities, which totaled $295,000, $568,000 and $441,000 at June 30, 2015 and 2014, and December 31, 2014, respectively, have not been presented due to insignificance.

The Company invests in mortgage-backed securities that have expected maturities that differ from their contractual maturities. These differences arise because borrowers may have the right to call or prepay obligations with or without a prepayment penalty. These securities include collateralized mortgage obligations (CMOs) and other asset backed securities. The expected maturities of these securities at June 30, 2015 were computed by using scheduled amortization of balances and historical prepayment rates. At June 30, 2015 and 2014 and December 31, 2014, the Company did not hold CMOs that entail higher risks than standard mortgage-backed securities.

The amortized cost and estimated fair value of available-for-sale securities at June 30, 2015, by contractual and expected maturity, are shown below (in thousands):

	Amortized Cost Basis		Estimated Fair Value
Due within one year	$	133,995	$	135,181
Due after one year through five years		707,981		737,467
Due after five years through ten years		750,600		767,300
Due after ten years		17,287		17,678
Mortgage-backed securities		1,060,028		1,071,487
Total	$	2,669,891	$	2,729,113

The following tables disclose, as of June 30, 2015 and 2014, and December 31, 2014, the Company’s investment securities that have been in a continuous unrealized-loss position for less than 12 months and for 12 or more months (in thousands):

	Less than 12 Months				12 Months or Longer				Total
June 30, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	304,510	$	5,335	$	2,531	$	65	$	307,041	$	5,400
Residential mortgage-backed securities		176,569		844		65,562		1,994		242,131		2,838
Commercial mortgage-backed securities		134,151		628		9,504		49		143,655		677
Total	$	615,230	$	6,807	$	77,597	$	2,108	$	692,827	$	8,915

	Less than 12 Months				12 Months or Longer				Total
June 30, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	41,095	$	160	$	101,800	$	1,856	$	142,895	$	2,016
Residential mortgage-backed securities		133,104		4,417		23,427		594		156,531		5,011
Commercial mortgage-backed securities		97,972		2,075		10,142		333		108,114		2,408
Total	$	272,171	$	6,652	$	135,369	$	2,783	$	407,540	$	9,435

	Less than 12 Months				12 Months or Longer				Total
December 31, 2014	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of U.S. government sponsored enterprises and agencies	$	25,480	$	28	$	—	$	—	$	25,480	$	28
Obligations of states and political subdivisions		15,128		60		21,249		190		36,377		250
Residential mortgage-backed securities		76,350		148		128,368		2,710		204,718		2,858
Commercial mortgage-backed securities		48,399		273		55,065		620		103,464		893
Total	$	165,357	$	509	$	204,682	$	3,520	$	370,039	$	4,029

The number of investments in an unrealized loss position totaled 262 at June 30, 2015. We do not believe these unrealized losses are “other-than-temporary” as (i) we do not have the intent to sell our securities prior to recovery and/or maturity and (ii) it is more likely than not that we will not have to sell our securities prior to recovery and/or maturity. In making this determination, we also consider the length of time and extent to which fair value has been less than cost and the financial condition of the issuer. The unrealized losses noted are interest rate related due to the level of interest rates at June 30, 2015 compared to the time of purchase. We have reviewed the ratings of the issuers and have not identified any issues related to the ultimate repayment of principal as a result of credit concerns on these securities. Our mortgage related securities are backed by GNMA, FNMA and FHLMC or are collateralized by securities backed by these agencies.

At June 30, 2015, $1,543,543,000 of the Company’s securities were pledged as collateral for public or trust fund deposits, repurchase agreements and for other purposes required or permitted by law.

During the quarters ended June 30, 2015 and 2014, sales of investment securities that were classified as available-for-sale totaled $6,631,000 and $541,000, respectively. Gross realized gains from security sales in the second quarter of 2015 totaled $243,000. There were no gross realized gains on security sales in the second quarter of 2014. Gross realized losses from security sales during the second quarter of 2015 and 2014 totaled $4,000 and $1,000, respectively. During the six months ended June 30, 2015 and 2014, sales of investment securities that were classified as available-for-sale totaled $7,760,000 and $1,445,000, respectively. Gross realized gains from security sales during the six-month periods ended June 30, 2015 and 2014 totaled $248,000 and $1,000, respectively. Gross realized losses from security sales during the six-month periods ended June 30, 2015 and 2014 totaled $4,000 and $6,000, respectively. The specific identification method was used to determine cost in order to compute the realized gains and losses.

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Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2015

Receivables [Abstract]

Loans and Allowance for Loan Losses

Note 5 - Loans and Allowance for Loan Losses

Loans held for investment are stated at the amount of unpaid principal, reduced by unearned income and an allowance for loan losses. Interest on loans is calculated by using the simple interest method on daily balances of the principal amounts outstanding. The Company defers and amortizes net loan origination fees and costs as an adjustment to yield. The allowance for loan losses is established through a provision for loan losses charged to expense. Loans are charged against the allowance for loan losses when management believes the collectability of the principal is unlikely.

The Company has certain lending policies and procedures in place that are designed to maximize loan income with an acceptable level of risk. Management reviews and approves these policies and procedures on an annual basis and makes changes as appropriate. Management receives and reviews monthly reports related to loan originations, quality, concentrations, delinquencies, nonperforming and potential problem loans. Diversification in the loan portfolio is a means of managing risk associated with fluctuations in economic conditions, both by type of loan and geographic location.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and effectively. Underwriting standards are designed to determine whether the borrower possesses sound business ethics and practices and to evaluate current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and, secondarily, on the underlying collateral provided by the borrower. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and include personal guarantees.

Agricultural loans are subject to underwriting standards and processes similar to commercial loans. These agricultural loans are based primarily on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. Most agricultural loans are secured by the agriculture related assets being financed, such as farm land, cattle or equipment, and include personal guarantees.

Real estate loans are also subject to underwriting standards and processes similar to commercial and agricultural loans. These loans are underwritten primarily based on projected cash flows and, secondarily, as loans secured by real estate. The repayment of real estate loans is generally largely dependent on the successful operation of the property securing the loans or the business conducted on the property securing the loan. Real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s real estate portfolio are generally diverse in terms of type and geographic location within Texas. This diversity helps reduce the exposure to adverse economic events that affect any single market or industry. Generally, real estate loans are owner occupied which further reduces the Company’s risk.

Consumer loan underwriting utilizes methodical credit standards and analysis to supplement the Company’s underwriting policies and procedures. The Company’s loan policy addresses types of consumer loans that may be originated and the collateral, if secured, which must be perfected. The relatively smaller individual dollar amounts of consumer loans that are spread over numerous individual borrowers also minimize the Company’s risk.

The allowance for loan losses is an amount which represents management’s best estimate of probable losses that are inherent in the Company’s loan portfolio as of the balance sheet date. The allowance for loan losses is comprised of three elements: (i) specific reserves determined based on probable losses on specific classified loans; (ii) a historical valuation reserve component that considers historical loss rates; and (iii) qualitative reserves based upon general economic conditions and other qualitative risk factors both internal and external to the Company. The allowance for loan losses is increased by charges to income and decreased by charge-offs (net of recoveries). Management’s periodic evaluation of the appropriateness of the allowance is based on general economic conditions, the financial condition of borrowers, the value and liquidity of collateral, delinquency, prior loan loss experience, and the results of periodic reviews of the portfolio. For purposes of determining our historical valuation reserve, the loan portfolio, less cash secured loans, government guaranteed loans and classified loans, is multiplied by the Company’s historical loss rate. Specific allocations are increased or decreased in accordance with deterioration or improvement in credit quality and a corresponding increase or decrease in risk of loss on a particular loan. In addition, we adjust our allowance for qualitative factors such as current local economic conditions and trends, including, without limitations, unemployment, oil and gas prices, drought conditions, changes in lending staff, policies and procedures, changes in credit concentrations, changes in the trends and severity of problem loans and changes in trends in volume and terms of loans. This qualitative reserve serves to estimate for additional areas of losses inherent in our portfolio that are not reflected in our historic loss factors.

Although we believe we use the best information available to make loan loss allowance determinations, future adjustments could be necessary if circumstances or economic conditions differ substantially from the assumptions used in making our initial determinations. A downturn in the economy and employment could result in increased levels of non-performing assets and charge-offs, increased loan provisions and reductions in income. Additionally, bank regulatory agencies periodically review our allowance for loan losses and methodology and could require, in accordance with generally accepted accounting principles, additional provisions to the allowance for loan losses based on their judgment of information available to them at the time of their examination as well as changes to our methodology.

Accrual of interest is discontinued on a loan and payments are applied to principal when management believes, after considering economic and business conditions and collection efforts, the borrower’s financial condition is such that collection of interest is doubtful. Except consumer loans, generally all loans past due greater than 90 days, based on contractual terms, are placed on non-accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Consumer loans are generally charged-off when a loan becomes past due 90 days. For other loans in the portfolio, facts and circumstances are evaluated in making charge-off decisions.

Loans are considered impaired when, based on current information and events, management determines that it is probable we will be unable to collect all amounts due in accordance with the loan agreement, including scheduled principal and interest payments. If a loan is impaired, a specific valuation allowance is allocated, if necessary. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectable.

The Company’s policy requires measurement of the allowance for an impaired, collateral dependent loan based on the fair value of the collateral. Other loan impairments for non-collateral dependent loans are measured based on the present value of expected future cash flows or the loan’s observable market price. At June 30, 2015 and 2014, and December 31, 2014, all significant impaired loans have been determined to be collateral dependent and the allowance for loss has been measured utilizing the estimated fair value of the collateral.

From time to time, the Company modifies its loan agreement with a borrower. A modified loan is considered a troubled debt restructuring when two conditions are met: (i) the borrower is experiencing financial difficulty and (ii) concessions are made by the Company that would not otherwise be considered for a borrower with similar credit risk characteristics. Modifications to loan terms may include a lower interest rate, a reduction of principal, or a longer term to maturity. For all impaired loans, including the Company’s troubled debt restructurings, the Company performs a periodic, well-documented credit evaluation of the borrower’s financial condition and prospects for repayment to assess the likelihood that all principal and interest payments required under the terms of the agreement will be collected in full. When doubt exists about the ultimate collectability of principal and interest, the troubled debt restructuring remains on non-accrual status and payments received are applied to reduce principal to the extent necessary to eliminate such doubt. This determination of accrual status is judgmental and is based on facts and circumstances related to each troubled debt restructuring. Each of these loans is individually evaluated for impairment and a specific reserve is recorded based on probable losses, taking into consideration the related collateral, modified loan terms and cash flow. As of June 30, 2015 and 2014, and December 31, 2014, substantially all of the Company’s troubled debt restructured loans are included in the non-accrual totals.

The Company originates certain mortgage loans for sale in the secondary market. Accordingly, these loans are classified as held-for-sale and are carried at the lower of cost or fair value on an aggregate basis. The mortgage loan sales contracts contain indemnification clauses should the loans default, generally in the first three to six months, or if documentation is determined not to be in compliance with regulations. The Company’s historic losses as a result of these indemnities have been insignificant.

Loans acquired, including loans acquired in a business combination, are initially recorded at fair value with no valuation allowance. Acquired loans are segregated between those considered to be credit impaired and those deemed performing. To make this determination, management considers such factors as past due status, non-accrual status and credit risk ratings. The fair value of acquired performing loans is determined by discounting expected cash flows, both principal and interest, at prevailing market interest rates. The difference between the fair value and principal balances at acquisition date, the fair value discount, is accreted into interest income over the estimated life of each loan.

Purchased credit impaired loans are those loans that showed evidence of deterioration of credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all amounts contractually owed. Their acquisition fair value, which includes a credit component at the acquisition date, was based on the estimate of cash flows, both principal and interest, expected to be collected or estimated collateral values if cash flows are not estimable, discounted at prevailing market rates of interest. The difference between the discounted cash flows expected at acquisition and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan, unless management was unable to reasonably forecast cash flows in which case the loans were placed on nonaccrual. Contractually required payments for interest and principal that exceed the cash flows expected at acquisition are not recognized as a yield adjustment. Increases in expected cash flows subsequent to the initial investment are recognized prospectively through adjustment of the yield on the loan over its remaining life. Decreases in expected cash flows subsequent to acquisition are recognized as impairment. Valuation allowances on these impaired loans reflect only losses incurred after the acquisition. The carrying amount of purchased credit impaired loans at June 30, 2015 and 2014, and December 31, 2014 was $1,123,000, $2,519,000 and $2,151,000, respectively, compared to a contractual balance of $1,648,000, $3,754,000, and $3,275,000, respectively. Other purchased credit impaired loan disclosures were omitted due to immateriality.

Loans held-for-investment by class of financing receivables are as follows (in thousands):

	June 30,				December 31,
	2015		2014		2014
Commercial	$	649,909	$	617,925	$	639,954
Agricultural		92,317		75,133		105,694
Real estate		1,838,488		1,733,604		1,822,854
Consumer		361,510		346,412		360,686
Total loans held-for-investment	$	2,942,224	$	2,773,074	$	2,929,188

Loans held for sale totaled $25,544,000, $13,570,000 and $8,803,000 at June 30, 2015 and 2014, and December 31, 2014, respectively, which were recorded at cost as fair value approximated cost.

The Company’s non-accrual loans, loans still accruing and past due 90 days or more and restructured loans are as follows (in thousands):

	June 30,				December 31,
	2015		2014		2014
Non-accrual loans*	$	16,854	$	23,565	$	20,194
Loans still accruing and past due 90 days or more		64		123		261
Troubled debt restructured loans**		172		—		226
Total	$	17,090	$	23,688	$	20,681

* Includes $1,123,000, $2,519,000 and $2,151,000 of purchased credit impaired loans as of June 30, 2015 and 2014, and December 31, 2014, respectively.

** Troubled debt restructured loans of $6,936,000, $10,810,000 and $9,073,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at June 30, 2015 and 2014, and December 31, 2014, respectively.

The Company’s recorded investment in impaired loans and the related valuation allowance are as follows (in thousands):

June 30, 2015				June 30, 2014				December 31, 2014
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	16,854	$	3,866	$	23,565	$	4,883	$	20,194	$	4,213

The average recorded investment in impaired loans for the three and six months ended June 30, 2015 and the year ended December 31, 2014 was approximately $16,877,000, $18,387,000 and $24,497,000, respectively. The Company had $18,135,000, $26,030,000 and $21,716,000 in non-accrual, past due 90 days or more and still accruing and restructured loans and foreclosed assets at June 30, 2015 and 2014, and December 31, 2014, respectively. Non-accrual loans at June 30, 2015 and 2014, and December 31, 2014, consisted of the following by class of financing receivables (in thousands):

	June 30,				December 31,
	2015		2014		2014
Commercial	$	3,606	$	3,640	$	3,193
Agricultural		118		109		165
Real estate		12,570		19,027		16,218
Consumer		560		789		618
Total	$	16,854	$	23,565	$	20,194

No significant additional funds are committed to be advanced in connection with impaired loans as of June 30, 2015.

The Company’s impaired loans and related allowance as of June 30, 2015 and 2014, and December 31, 2014, are summarized in the following tables by class of financing receivables (in thousands). No interest income was recognized on impaired loans subsequent to their classification as impaired.

June 30, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	4,168	$	263	$	3,343	$	3,606	$	1,168	$	3,717	$	3,298
Agricultural		163		—		118		118		87		148		136
Real Estate		18,711		2,921		9,649		12,570		2,506		13,817		12,876
Consumer		784		367		193		560		105		705		567
Total	$	23,826	$	3,551	$	13,303	$	16,854	$	3,866	$	18,387	$	16,877

* Includes $1,123,000 of purchased credit impaired loans.

June 30, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year-to-Date Average Recorded Investment		Three-month Average Recorded Investment
Commercial	$	4,095	$	271	$	3,369	$	3,640	$	1,161	$	4,083	$	3,224
Agricultural		121		—		109		109		41		118		101
Real Estate		24,619		5,626		13,401		19,027		3,497		21,442		20,920
Consumer		960		442		347		789		184		879		759
Total	$	29,795	$	6,339	$	17,226	$	23,565	$	4,883	$	26,522	$	25,004

* Includes $2,519,000 of purchased credit impaired loans.

December 31, 2014	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,749	$	287	$	2,906	$	3,193	$	1,171	$	3,698
Agricultural		177		—		165		165		57		179
Real Estate		22,177		4,859		11,359		16,218		2,867		19,837
Consumer		838		420		198		618		118		783
Total	$	26,941	$	5,566	$	14,628	$	20,194	$	4,213	$	24,497

* Includes $2,151,000 of purchased credit impaired loans.

The Company recognized interest income on impaired loans prior to being classified as impaired of approximately $162,000 during the year ended December 31, 2014. Such amounts for the three-month and six-month periods ended June 30, 2015 and 2014 were not significant.

From a credit risk standpoint, the Company rates its loans in one of four categories: (i) pass, (ii) special mention, (iii) substandard or (iv) doubtful. Loans rated as loss are charged-off.

The ratings of loans reflect a judgment about the risks of default and loss associated with the loan. The Company reviews the ratings on our credits as part of our on-going monitoring of the credit quality of our loan portfolio. Ratings are adjusted to reflect the degree of risk and loss that are felt to be inherent in each credit as of each reporting period. Our methodology is structured so that specific allocations are increased in accordance with deterioration in credit quality (and a corresponding increase in risk and loss) or decreased in accordance with improvement in credit quality (and a corresponding decrease in risk and loss).

Credits rated special mention show clear signs of financial weakness or deterioration in credit worthiness, however, such concerns are not so pronounced that the Company generally expects to experience significant loss within the short-term. Such credits typically maintain the ability to perform within standard credit terms and credit exposure is not as prominent as credits rated more harshly.

Credits rated substandard are those in which the normal repayment of principal and interest may be, or has been, jeopardized by reason of adverse trends or developments of a financial, managerial, economic or political nature, or important weaknesses exist in collateral. A protracted workout on these credits is a distinct possibility. Prompt corrective action is therefore required to strengthen the Company’s position, and/or to reduce exposure and to assure that adequate remedial measures are taken by the borrower. Credit exposure becomes more likely in such credits and a serious evaluation of the secondary support to the credit is performed.

Credits rated doubtful are those in which full collection of principal appears highly questionable, and which some degree of loss is anticipated, even though the ultimate amount of loss may not yet be certain and/or other factors exist which could affect collection of debt. Based upon available information, positive action by the Company is required to avert or minimize loss. Credits rated doubtful are generally also placed on non-accrual.

The following summarizes the Company’s internal ratings of its loans held-for-investment by class of financing receivables and portfolio segments, which are the same, at June 30, 2015 and 2014, and December 31, 2014 (in thousands):

June 30, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,071	$	25,438	$	13,400	$	—	$	649,909
Agricultural		91,657		159		501		—		92,317
Real Estate		1,783,633		21,504		33,308		43		1,838,488
Consumer		360,094		308		1,108		—		361,510
Total	$	2,846,455	$	47,409	$	48,317	$	43	$	2,942,224

June 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	605,163	$	3,678	$	9,084	$	—	$	617,925
Agricultural		74,734		102		296		1		75,133
Real Estate		1,668,844		16,628		48,001		131		1,733,604
Consumer		344,403		522		1,483		4		346,412
Total	$	2,693,144	$	20,930	$	58,864	$	136	$	2,773,074

December 31, 2014	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	626,266	$	3,853	$	9,835	$	—	$	639,954
Agricultural		105,101		91		502		—		105,694
Real Estate		1,765,886		15,106		41,722		140		1,822,854
Consumer		358,953		403		1,329		1		360,686
Total	$	2,856,206	$	19,453	$	53,388	$	141	$	2,929,188

At June 30, 2015 and 2014, and December 31, 2014, the Company’s past due loans are as follows (in thousands):

June 30, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	7,854	$	38	$	12	$	7,904	$	642,005	$	649,909	$	—
Agricultural		270		—		—		270		92,047		92,317		—
Real Estate		13,458		1,255		1,933		16,646		1,821,842		1,838,488		47
Consumer		1,507		342		98		1,947		359,563		361,510		17
Total	$	23,089	$	1,635	$	2,043	$	26,767	$	2,915,457	$	2,942,224	$	64

June 30, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	7,290	$	51	$	248	$	7,589	$	610,336	$	617,925	$	23
Agricultural		134		14		—		148		74,985		75,133		—
Real Estate		16,781		823		1,973		19,577		1,714,027		1,733,604		83
Consumer		1,470		443		153		2,066		344,346		346,412		17
Total	$	25,675	$	1,331	$	2,374	$	29,380	$	2,743,694	$	2,773,074	$	123

December 31, 2014	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans		90 Days Past Due Still Accruing
Commercial	$	4,611	$	94	$	175	$	4,880	$	635,074	$	639,954	$	24
Agricultural		437		42		—		479		105,215		105,694		—
Real Estate		12,002		707		1,868		14,577		1,808,277		1,822,854		207
Consumer		2,322		496		134		2,952		357,734		360,686		30
Total	$	19,372	$	1,339	$	2,177	$	22,888	$	2,906,300	$	2,929,188	$	261

* 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.

The following table details the allowance for loan losses at June 30, 2015 and 2014, and December 31, 2014 by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at June 30, 2015 and 2014, or December 31, 2014. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,168	$	87	$	2,506	$	105	$	3,866
Loans collectively evaluated for impairment		10,288		305		21,836		2,704		35,133
Total	$	11,456	$	392	$	24,342	$	2,809	$	38,999
June 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,161	$	41	$	3,497	$	184	$	4,883
Loans collectively evaluated for impairment		5,700		323		23,064		1,922		31,009
Total	$	6,861	$	364	$	26,561	$	2,106	$	35,892
December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,171	$	57	$	2,867	$	118	$	4,213
Loans collectively evaluated for impairment		6,819		470		23,790		1,532		32,611
Total	$	7,990	$	527	$	26,657	$	1,650	$	36,824

The tables above for 2014 have been changed to conform to the 2015 presentation.

Changes in the allowance for loan losses for the three and six months ended June 30, 2015 and 2014 are summarized as follows by portfolio segment (in thousands):

Three months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828
Provision for loan losses		1,324			(27	)		(1,048	)		1,305			1,554
Recoveries		117			—			302			141			560
Charge-offs		(360	)		(54	)		(151	)		(378	)		(943	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999
Three months ended June 30, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,645		$	285		$	25,629		$	2,134		$	34,693
Provision for loan losses		219			78			835			(8	)		1,124
Recoveries		65			1			132			178			376
Charge-offs		(68	)		—			(35	)		(198	)		(301	)
Ending balance	$	6,861		$	364		$	26,561		$	2,106		$	35,892
Six months ended June 30, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		3,789			(59	)		(2,515	)		1,629			2,844
Recoveries		197			2			373			212			784
Charge-offs		(520	)		(78	)		(173	)		(682	)		(1,453	)
Ending balance	$	11,456		$	392		$	24,342		$	2,809		$	38,999

Six months ended June 30, 2014	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	6,440		$	383		$	24,940		$	2,137		$	33,900
Provision for loan losses		554			(21	)		2,068			213			2,814
Recoveries		154			3			319			300			776
Charge-offs		(287	)		(1	)		(766	)		(544	)		(1,598	)
Ending balance	$	6,861		$	364		$	26,561		$	2,106		$	35,892

The Company’s recorded investment in loans as of June 30, 2015 and 2014, and December 31, 2014 related to the balance in the allowance for loan losses on the basis of the Company’s impairment methodology was as follows (in thousands). Purchased credit impaired loans of $1,123,000, $2,519,000 and $2,151,000 at June 30, 2015 and 2014, and December 31, 2014, respectively, are included in loans individually evaluated for impairment.

June 30, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,606	$	118	$	12,570	$	560	$	16,854
Loans collectively evaluated for impairment		646,303		92,199		1,825,918		360,950		2,925,370
Total	$	649,909	$	92,317	$	1,838,488	$	361,510	$	2,942,224
June 30, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,640	$	109	$	19,027	$	789	$	23,565
Loans collectively evaluated for impairment		614,285		75,024		1,714,577		345,623		2,749,509
Total	$	617,925	$	75,133	$	1,733,604	$	346,412	$	2,773,074
December 31, 2014	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,193	$	165	$	16,218	$	618	$	20,194
Loans collectively evaluated for impairment		636,761		105,529		1,806,636		360,068		2,908,994
Total	$	639,954	$	105,694	$	1,822,854	$	360,686	$	2,929,188

The tables above for 2014 have been changed to conform to the 2015 presentation.

The Company’s loans that were modified in the three and six months ended June 30, 2015 and 2014 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		2	$	74	$	74		2	$	74	$	74
Agricultural		—		—		—		3		128		128
Real Estate		2		336		336		2		336		336
Consumer		2		4		4		3		28		28
Total		6	$	414	$	414		10	$	566	$	566

	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Number		Pre- Modification Recorded Investment		Combined   Rate and Maturity		Number		Pre- Modification Recorded Investment		Combined   Rate and Maturity
Commercial		1	$	302	$	302		5	$	399	$	399
Agricultural		1		39		39		1		39		39
Real Estate		3		514		514		4		590		590
Consumer		—		—		—		3		11		11
Total		5	$	855	$	855		13	$	1,039	$	1,039

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three and six months ended June 30, 2015 and 2014 (in thousands):

	Three Months Ended June 30, 2015						Six Months Ended June 30, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	74	$	—	$	—	$	74	$	—
Agricultural		—		—		—		—		128		—
Real Estate		257		—		79		257		—		79
Consumer		—		4		—		—		4		24
Total	$	257	$	78	$	79	$	257	$	206	$	103
	Three Months Ended June 30, 2014						Six Months Ended June 30, 2014
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	—	$	302	$	—	$	97	$	302
Agricultural		—		—		39		—		—		39
Real Estate		—		42		472		—		118		472
Consumer		—		—		—		—		8		3
Total	$	—	$	42	$	813	$	—	$	223	$	816

During the three months ended June 30, 2014, one loan was modified as troubled debt restructured loan within the previous 12 months and for which there was a payment default. There were no such defaults in the three months ended June 30, 2015. During the six months ended June 30, 2015 and 2014, one loan was modified in each six-month period as a troubled debt restructured loan within the previous 12 months and for which there was a payment default. A default for purposes of this disclosure is a troubled debt restructured loan in which the borrower is 90 days past due or more or results in the foreclosure and repossession of the applicable collateral. The loans with payment default are as follows (dollars in thousands):

	Six Months Ended June 30, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Number		Balance		Number		Balance
Commercial		—	$	—		—	$	—
Agriculture		—		—		—		—
Real Estate		—		—		—		—
Consumer		1		32		1		32
Total		1	$	32		1	$	32

As of June 30, 2015, the Company has no commitments to lend additional funds to loan customers whose terms have been modified in troubled debt restructurings.

Our subsidiary bank has established a line of credit with the Federal Home Loan Bank of Dallas (FHLB) to provide liquidity and meet pledging requirements for those customers eligible to have securities pledged to secure certain uninsured deposits. At June 30, 2015, $1,720,486,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At June 30, 2015, $265,036,000 in advances and $5,000,000 in letters of credit were outstanding under this line of credit. The letters of credit were pledged as collateral for public funds held by our bank subsidiary.

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Income Taxes

6 Months Ended

Jun. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

Note 7 - Income Taxes

Income tax expense was $8,080,000 for the second quarter of 2015 as compared to $6,758,000 for the same period in 2014. The Company’s effective tax rates on pretax income were 24.20% and 24.17% for the second quarters of 2015 and 2014, respectively. Income tax expense was $15,845,000 for the six months ended June 2015 as compared to $13,863,000 for the same period in 2014. The Company’s effective tax rates on pretax income were 24.32% and 24.15% for the six months ended June 2015 and 2014, respectively. The effective tax rates differ from the statutory federal tax rate of 35% primarily due to tax exempt interest income earned on certain investment securities and loans and the deductibility of dividends paid to our employee stock ownership plan.

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Loans and Allowance for Loan Losses - Loans Held-for-Investment by Class of Financing Receivables (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Receivables [Abstract]
Commercial	$ 649,909	$ 639,954	$ 617,925
Agricultural	92,317	105,694	75,133
Real estate	1,838,488	1,822,854	1,733,604
Consumer	361,510	360,686	346,412
Total	$ 2,942,224	$ 2,929,188	$ 2,773,074

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Stock Based Compensation - Additional Information (Detail)		3 Months Ended		6 Months Ended
	Jul. 21, 2015 USD ($) Non_Employee_Directors shares	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)	Jun. 30, 2015 USD ($) shares	Jun. 30, 2014 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option expense | $		$ 182,000	$ 212,000	$ 360,000	$ 357,000
Stock options granted				0	0
Subsequent Event [Member] | Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of non employee directors | Non_Employee_Directors	10
Subsequent Event [Member] | Restricted Stock [Member] | Non Employee Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted	7,070
Restricted shares value | $	$ 250,000

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Acquisition and Asset Purchase

6 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisition and Asset Purchase

Note 12 – Acquisition and Asset Purchase

On April 1, 2015, the Company announced that it has entered into a definitive agreement to acquire FBC Bancshares, Inc. and its wholly owned bank subsidiary, First Bank, N.A., Conroe, Texas for a purchase price of $61,000,000 to be paid in stock of the Company and calculated in accordance with the terms of the definitive agreement. At June 30, 2015, First Bank, N.A. had gross loans totaling $257,046,000, total deposits of $339,423,000 and total assets of $372,188,000. The acquisition was consummated on July 31, 2015.

On April 8, 2015, the Company announced that it had entered into an asset purchase agreement with 4Trust Mortgage, Inc. for a cash purchase price of $1,900,000. The acquisition was finalized on May 31, 2015.

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Basis of Presentation - Additional Information (Detail)		6 Months Ended	8 Months Ended
	Jun. 30, 2015 Location Office shares	Jun. 30, 2015 shares	Jun. 30, 2015 shares	Apr. 28, 2015 shares	Dec. 31, 2014 shares	Oct. 28, 2014 shares	Jun. 30, 2014 shares
Basis Of Presentation [Line Items]
Number of locations	62
Number of mortgage origination offices | Office	3
Common stock, shares authorized | shares	120,000,000	120,000,000	120,000,000	120,000,000	120,000,000		120,000,000
Stock repurchase program expiration date		Sep. 30, 2017
Minimum number of shares that company is required to repurchase | shares		0
Stock repurchased under authorization | shares			0
Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	8
Maximum [Member]
Basis Of Presentation [Line Items]
Stock repurchase program, number of shares authorized to be repurchased | shares						1,500,000
Abilene [Member]
Basis Of Presentation [Line Items]
Number of locations	11
Abilene [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Cleburne [Member]
Basis Of Presentation [Line Items]
Number of locations	2
Stephenville [Member]
Basis Of Presentation [Line Items]
Number of locations	2
Stephenville [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Granbury [Member]
Basis Of Presentation [Line Items]
Number of locations	2
San Angelo [Member]
Basis Of Presentation [Line Items]
Number of locations	3
San Angelo [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Weatherford [Member]
Basis Of Presentation [Line Items]
Number of locations	3
Mineral Wells [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Hereford [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Sweetwater [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Sweetwater [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Eastland [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Ranger [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Rising Star [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Cisco [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Southlake [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Number of mortgage origination offices | Office	1
Grapevine [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Aledo [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Willow Park [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Brock [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Alvarado [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Beaumont [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Beaumont [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Burleson [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Keller [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Trophy Club [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Boyd [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Bridgeport [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Decatur [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Roby [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Trent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Merkel [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Clyde [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Moran [Member]
Basis Of Presentation [Line Items]
Number of locations	1
New Waverly [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Albany [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Midlothian [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Glen Rose [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Odessa [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Odessa [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Waxahachie [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Acton [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Fort Worth [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Fort Worth [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Orange [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Newton [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Port Arthur [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Vidor [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Mauriceville [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Huntsville [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Lubbock [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Dallas [Member]
Basis Of Presentation [Line Items]
Number of mortgage origination offices | Office	1
Ft. Worth [Member]
Basis Of Presentation [Line Items]
Number of mortgage origination offices | Office	1

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Short-Term Borrowings - Schedule of Short-Term Borrowings (Detail) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Debt Disclosure [Abstract]
Securities sold under agreements with customers to repurchase	$ 346,369,000	$ 357,400,000	$ 312,893,000
Federal funds purchased	9,750,000	8,700,000	10,625,000
Advances from Federal Home Loan Bank of Dallas	265,036,000	1,010,000	111,065,000
Total	$ 621,155,000	$ 367,110,000	$ 434,583,000

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Loans and Allowance for Loan Losses - Schedule of Internal Ratings of Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	$ 2,942,224	$ 2,929,188	$ 2,773,074
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	649,909	639,954	617,925
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	92,317	105,694	75,133
Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	1,838,488	1,822,854	1,733,604
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	361,510	360,686	346,412
Pass [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	2,846,455	2,856,206	2,693,144
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	611,071	626,266	605,163
Pass [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	91,657	105,101	74,734
Pass [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	1,783,633	1,765,886	1,668,844
Pass [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	360,094	358,953	344,403
Special Mention [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	47,409	19,453	20,930
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	25,438	3,853	3,678
Special Mention [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	159	91	102
Special Mention [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	21,504	15,106	16,628
Special Mention [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	308	403	522
Substandard [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	48,317	53,388	58,864
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	13,400	9,835	9,084
Substandard [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	501	502	296
Substandard [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	33,308	41,722	48,001
Substandard [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	1,108	1,329	1,483
Doubtful [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	43	141	136
Doubtful [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan			1
Doubtful [Member] | Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	$ 43	140	131
Doubtful [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan		$ 1	$ 4

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Consolidated Statements of Earnings (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
Reclassifications adjustment for realized gains on investment securities included in net earnings (loss), before income tax	$ 239	$ (1)	$ 244	$ (5)
Income tax expense from reclassification items	$ 84	$ 0	$ 85	$ (2)

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Basis of Presentation

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Note 1 - Basis of Presentation

The unaudited interim consolidated financial statements include the accounts of the Company, a Texas corporation and a financial holding company registered under the Bank Holding Company Act of 1956, as amended, or BHCA, and its wholly-owned subsidiaries: First Financial Bank, National Association, Abilene, Texas; First Technology Services, Inc.; First Financial Trust & Asset Management Company, National Association; First Financial Investments, Inc.; and First Financial Insurance Agency, Inc.

Through our subsidiary bank, we conduct a full-service commercial banking business. Our banking centers are located primarily in Central, North Central, Southeast and West Texas. As of June 30, 2015, we had 62 financial centers across Texas, with eleven locations in Abilene, three locations in San Angelo and Weatherford, two locations in Cleburne, Stephenville and Granbury, and one location each in Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Clyde, Decatur, Eastland, Fort Worth, Glen Rose, Grapevine, Hereford, Huntsville, Keller, Mauriceville, Merkel, Midlothian, Mineral Wells, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, Southlake, Sweetwater, Trent, Trophy Club, Vidor, Waxahachie, and Willow Park and three mortgage origination offices in Dallas, Ft. Worth and Southlake, Texas. Our trust subsidiary has eight locations which are located in Abilene, Fort Worth, Lubbock, Odessa, Beaumont, San Angelo, Stephenville and Sweetwater, all in Texas.

In the opinion of management, the unaudited interim consolidated financial statements reflect all adjustments necessary for a fair presentation of the Company’s financial position and unaudited results of operations and should be read in conjunction with the Company’s audited consolidated financial statements, and notes thereto in the Company’s Annual Report on Form 10-K, for the year ended December 31, 2014. All adjustments were of a normal recurring nature. However, the results of operations for the three months and six months ended June 30, 2015, are not necessarily indicative of the results to be expected for the year ending December 31, 2015, due to seasonality, changes in economic conditions and loan credit quality, interest rate fluctuations, regulatory and legislative changes and other factors. The preparation of financial statements in conformity with United States generally accepted accounting principles (“GAAP”) require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the financial statement date. Actual results could vary. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted under U. S. Securities and Exchange Commission (“SEC”) rules and regulations. The Company evaluated subsequent events for potential recognition and/or disclosure through the date the consolidated financial statements were issued.

On April 28, 2015, the Company’s shareholders approved an amendment to the Company’s Amended and Restated Certificate of Formation to increase the number of authorized common shares to 120,000,000.

On October 28, 2014, the Company’s Board of Directors authorized the repurchase of up to 1,500,000 common shares through September 30, 2017. The stock buyback plan authorizes management to repurchase the stock at such time as repurchases are considered beneficial to shareholders. Any repurchase of stock will be made through the open market, block trades or in privately negotiated transactions in accordance with applicable laws and regulations. Under the repurchase plan, there is no minimum number of shares that the Company is required to repurchase. Through June 30, 2015, no shares were repurchased under this authorization.

Goodwill and other intangible assets are evaluated annually for impairment as of the end of the second quarter. No such impairment has been noted in connection with the current or any prior evaluations.

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Stock Split - Additional Information (Detail)		6 Months Ended
	Apr. 22, 2014	Jun. 30, 2015
Text Block [Abstract]
Stock split conversion ratio		Two-for-one stock split
Percentage of stock dividend declared	100.00%
Dividend declared date		Apr. 22, 2014
Dividend record date		May 15, 2014
Dividend distribution date		Jun. 02, 2014

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Loans and Allowance for Loan Losses - Schedule of Non-Accrual Loans (Detail) - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	$ 16,854	$ 20,194	$ 23,565
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	3,606	3,193	3,640
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	118	165	109
Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	12,570	16,218	19,027
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	$ 560	$ 618	$ 789

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Recently Issued Authoritative Accounting Guidance

6 Months Ended

Jun. 30, 2015

Accounting Changes and Error Corrections [Abstract]

Recently Issued Authoritative Accounting Guidance

Note 11 - Recently Issued Authoritative Accounting Guidance

In 2014, the Financial Accounting Standards Board (the “FASB”) amended its authoritative guidance related to residential real estate to clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendment requires interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The new guidance was effective for the Company on January 1, 2015 and did not have a significant impact to the Company’s financial statements.

In 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede substantially all existing revenue recognition guidance. The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The new standard will be effective in the first quarter of 2017. The Company is continuing to evaluate the potential impact to the Company’s financial statements.

In 2014, the FASB amended its authoritative guidance related to repurchase-to-maturity transactions to require that repurchase-to-maturity transactions be accounted for as secured borrowings consistent with the accounting for other repurchase agreements. In addition, the amendment requires separate accounting for repurchase financings, which entails the transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. The amendment requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, the amendment requires disclosures related to collateral, remaining contractual term and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. The amendment was effective for the Company on January 1, 2015 and did not have a significant impact on the Company’s financial statements.

In 2015, the FASB eliminated from U.S. GAAP the concept of extraordinary items, which, among other things, required an entity to show the item separately in the income statement, net of tax, after income from continuing operations. The new guidance is effective for the Company beginning January 1, 2016, though early adoption is permitted, and is not expected to have a significant impact on the Company’s financial statements.