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 March 31, 2016

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 May 4, 2016
Common Stock, $0.01 par value per share	66,057,277

TABLE OF CONTENTS

PART I FINANCIAL INFORMATION
Item		Page
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		33
3.	Quantitative and Qualitative Disclosures About Market Risk		50
4.	Controls and Procedures		50
PART II
OTHER INFORMATION
1.	Legal Proceedings		51
1A.	Risk Factors		51
2.	Unregistered Sales of Equity Securities and Use of Proceeds		51
3.	Defaults Upon Senior Securities		51
4.	Mine Safety Disclosures		51
5.	Other Information		51
6.	Exhibits		52
	Signatures		53

2

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements.

The consolidated balance sheets of First Financial Bankshares, Inc. (the “Company” or “we”) at March 31, 2016 and 2015 and December 31, 2015, and the consolidated statements of earnings, comprehensive earnings, shareholders’ equity and cash flows for the three months ended March 31, 2016 and 2015, follow on pages 4 through 8.

3

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)

	March 31,						December 31,
	2016			2015			2015
	(Unaudited)
ASSETS
CASH AND DUE FROM BANKS	$	139,995		$	142,233		$	179,140
FEDERAL FUNDS SOLD		2,660			5,460			3,810
INTEREST-BEARING DEPOSITS IN BANKS		22,993			18,275			89,936
Total cash and cash equivalents		165,648			165,968			272,886
INTEREST-BEARING TIME DEPOSITS IN BANKS		2,427			9,170			3,495
SECURITIES AVAILABLE-FOR-SALE, at fair value		2,763,039			2,689,330			2,733,899
SECURITIES HELD-TO-MATURITY (fair value of $150, $317 and $283 at March 31, 2016 and 2015, and December 31, 2015, respectively)		146			310			278
LOANS:
Held for investment		3,282,199			2,928,476			3,317,050
Less - allowance for loan losses		(44,072	)		(37,828	)		(41,877	)
Net loans held for investment		3,238,127			2,890,648			3,275,173
Held for sale		17,008			10,231			33,543
Net loans		3,255,135			2,900,879			3,308,716
BANK PREMISES AND EQUIPMENT, net		118,208			104,358			115,712
INTANGIBLE ASSETS		144,169			97,192			144,449
OTHER ASSETS		76,413			58,165			85,635
Total assets	$	6,525,185		$	6,025,372		$	6,665,070
LIABILITIES AND SHAREHOLDERS’ EQUITY
NONINTEREST-BEARING DEPOSITS	$	1,654,271		$	1,600,807		$	1,745,952
INTEREST-BEARING DEPOSITS		3,409,536			3,236,200			3,444,217
Total deposits		5,063,807			4,837,007			5,190,169
DIVIDENDS PAYABLE		10,567			8,980			10,558
SHORT-TERM BORROWINGS		525,340			401,898			615,675
OTHER LIABILITIES		86,863			71,239			43,682
Total liabilities		5,686,577			5,319,124			5,860,084
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Common stock - ($0.01 par value, authorized 120,000,000 shares; 66,043,442, 64,142,812, and 65,990,234 shares issued at March 31, 2016 and 2015, and December 31, 2015, respectively)		660			641			660
Capital surplus		369,972			306,362			368,925
Retained earnings		403,135			342,995			388,006
Treasury stock (shares at cost: 520,357, 527,533, and 520,651 at March 31, 2016 and 2015, and December 31, 2015, respectively)		(6,409	)		(6,005	)		(6,296	)
Deferred compensation		6,409			6,005			6,296
Accumulated other comprehensive earnings		64,841			56,250			47,395
Total shareholders’ equity		838,608			706,248			804,986
Total liabilities and shareholders’ equity	$	6,525,185		$	6,025,372		$	6,665,070

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 March 31,
	2016		2015
INTEREST INCOME:
Interest and fees on loans	$	40,347	$	35,061
Interest on investment securities:
Taxable		7,262		7,808
Exempt from federal income tax		10,666		9,120
Interest on federal funds sold and interest-bearing deposits in banks		60		80
Total interest income		58,335		52,069
INTEREST EXPENSE:
Interest on deposits		1,053		928
Other		259		42
Total interest expense		1,312		970
Net interest income		57,023		51,099
PROVISION FOR LOAN LOSSES		2,328		1,290
Net interest income after provision for loan losses		54,695		49,809
NONINTEREST INCOME:
Trust fees		4,655		4,731
Service charges on deposit accounts		4,413		3,768
ATM, interchange and credit card fees		5,680		4,969
Real estate mortgage operations		3,139		1,482
Net gain on sale of available-for-sale securities (includes $2 and $5 for the three months ended March 31, 2016 and 2015, respectively, related to accumulated other comprehensive earnings reclassifications)		2		5
Net gain on sale of foreclosed assets		76		30
Net gain on sale of assets		513		5
Interest on loan recoveries		633		108
Other		710		799
Total noninterest income		19,821		15,897
NONINTEREST EXPENSE:
Salaries and employee benefits		22,590		18,265
Net occupancy expense		2,631		2,197
Equipment expense		3,380		2,899
FDIC insurance premiums		824		748
ATM, interchange and credit card expenses		1,687		1,725
Professional and service fees		1,564		1,065
Printing, stationery and supplies		503		596
Amortization of intangible assets		199		90
Other		7,703		6,358
Total noninterest expense		41,081		33,943
EARNINGS BEFORE INCOME TAXES		33,435		31,763
INCOME TAX EXPENSE (includes $1 and $2 for the three months ended March 31, 2016 and 2015, respectively, related to income tax expense reclassification)		7,739		7,766
NET EARNINGS	$	25,696	$	23,997
EARNINGS PER SHARE, BASIC	$	0.39	$	0.37
EARNINGS PER SHARE, ASSUMING DILUTION	$	0.39	$	0.37
DIVIDENDS PER SHARE	$	0.16	$	0.14

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 March 31,
	2016			2015
NET EARNINGS	$	25,696		$	23,997
OTHER ITEMS OF COMPREHENSIVE EARNINGS:
Change in unrealized gain on investment securities available-for-sale, before income taxes		26,842			13,483
Reclassification adjustment for realized gains on investment securities included in net earnings, before income taxes		(2	)		(5	)
Total other items of comprehensive earnings		26,840			13,478
Income tax expense related to other items of comprehensive earnings		(9,394	)		(4,717	)
COMPREHENSIVE EARNINGS	$	43,142		$	32,758

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		Retained			Treasury Stock						Deferred		Accumulated Other Comprehensive		Total Shareholders’
	Shares			Amount		Surplus		Earnings			Shares			Amounts			Compensation		Earnings		Equity
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)		—			—		—		23,997			—			—			—		—		23,997
Stock option exercises (unaudited)		52,891			—		728		—			—			—			—		—		728
Cash dividends declared, $0.14 per share (unaudited)		—			—		—		(8,980	)		—			—			—		—		(8,980	)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)		—			—		—		—			—			—			—		8,761		8,761
Additional tax benefit related to directors’ deferred compensation plan (unaudited)		—			—		25		—			—			—			—		—		25
Shares purchased in connection with directors’ deferred compensation plan, net (unaudited)		—			—		—		—			2,030			(127	)		127		—		—
Stock option expense (unaudited)		—			—		180		—			—			—			—		—		180
Balances at March 31, 2015 (unaudited)		64,142,812		$	641	$	306,362	$	342,995			(527,533	)	$	(6,005	)	$	6,005	$	56,250	$	706,248
Balances at December 31, 2015		65,990,234		$	660	$	368,925	$	388,006			(520,651	)	$	(6,296	)	$	6,296	$	47,395	$	804,986
Net earnings (unaudited)		—			—		—		25,696			—			—			—		—		25,696
Stock option exercises (unaudited)		54,683			—		802		—			—			—			—		—		802
Restricted stock grant (unaudited)		(1,475	)		—		—		—			—			—			—		—		—
Cash dividends declared, $0.16 per share (unaudited)		—			—		—		(10,567	)		—			—			—		—		(10,567	)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)		—			—		—		—			—			—			—		17,446		17,446
Additional tax benefit related to directors’ deferred compensation plan (unaudited)		—			—		25		—			—			—			—		—		25
Shares purchased in connection with directors’ deferred compensation plan, net (unaudited)		—			—		—		—			294			(113	)		113		—		—
Stock option expense (unaudited)		—			—		220		—			—			—			—		—		220
Balances at March 31, 2016 (unaudited)		66,043,442		$	660	$	369,972	$	403,135			(520,357	)	$	(6,409	)	$	6,409	$	64,841	$	838,608

See notes to consolidated financial statements.

7

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED)

(Dollars in thousands)

	Three Months Ended March 31,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	25,696		$	23,997
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		2,805			2,473
Provision for loan losses		2,328			1,290
Securities premium amortization (discount accretion), net		6,948			6,028
Gain on sale of assets, net		(591	)		(40	)
Change in loans held for sale		16,535			(1,428	)
Change in other assets		10,704			1,083
Change in other liabilities		7,580			7,002
Total adjustments		46,309			16,408
Net cash provided by operating activities		72,005			40,405
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease in interest-bearing time deposits in banks		1,068			7,832
Activity in available-for-sale securities:
Sales		553			1,129
Maturities		86,258			46,774
Purchases		(69,605	)		(294,523	)
Activity in held-to-maturity securities - maturities		132			131
Net increase in loans		33,772			329
Purchases of bank premises and equipment and other assets		(5,447	)		(3,087	)
Proceeds from sale of other assets		480			212
Net cash provided by (used in) investing activities		47,211			(241,203	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in noninterest-bearing deposits		(91,682	)		30,476
Net increase (decrease) in interest-bearing deposits		(34,681	)		56,275
Net increase (decrease) in short-term borrowings		(90,335	)		34,788
Common stock transactions:
Proceeds from stock issuances		802			728
Dividends paid		(10,558	)		(8,972	)
Net cash provided by (used in) financing activities		(226,454	)		113,295
NET DECREASE IN CASH AND CASH EQUIVALENTS		(107,238	)		(87,503	)
CASH AND CASH EQUIVALENTS, beginning of period		272,886			253,471
CASH AND CASH EQUIVALENTS, end of period	$	165,648		$	165,968
SUPPLEMENTAL INFORMATION AND NONCASH TRANSACTIONS:
Interest paid	$	1,298		$	971
Federal income tax paid		—			—
Transfer of loans to foreclosed assets		946			97
Investment securities purchased but not settled		26,452			20,639

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 March 31, 2016, we had 69 financial centers across Texas, with eleven locations in Abilene, three locations in San Angelo and Weatherford, two locations in Cleburne, Conroe, Stephenville and Granbury, and one location each in Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Clyde, Cut and Shoot, Decatur, Eastland, Fort Worth, Glen Rose, Grapevine, Hereford, Huntsville, Keller, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, Southlake, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Willis and Willow Park, all in Texas. Our trust subsidiary has nine locations which are located in Abilene, Fort Worth, Lubbock, Odessa, Beaumont, Hereford, San Angelo, Stephenville and Sweetwater.

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, 2015. All adjustments were of a normal recurring nature. However, the results of operations for the three months ended March 31, 2016, are not necessarily indicative of the results to be expected for the year ending December 31, 2016, 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.

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 Repurchase

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 March 31, 2016, no shares were repurchased under this authorization.

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 months ended March 31, 2016 and 2015, 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 restricted stock and the outstanding options is reflected by application of the treasury stock method, whereby the proceeds from the restricted stock and 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 March 31, 2016 and 2015 were 65,974,559 and 64,122,965 shares, respectively. The weighted average common shares outstanding used in computing fully diluted earnings per common share for the three months ended March 31, 2016 and 2015 were 66,118,998 and 64,298,896 shares, respectively.

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

Interest-bearing time deposits in banks totaled $2,427,000, $9,170,000 and $3,495,000 at March 31, 2016 and 2015 and December 31, 2015, respectively, and have original maturities generally ranging from one to three years. Of these amounts, $489,000 are time deposits with balances greater than $250,000, the FDIC insured limit at both March 31, 2015 and December 31, 2015. There were no balances over this limit at March 31, 2016.

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 states 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.

11

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

	March 31, 2016
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,756	$	73	$	—		$	10,829
Obligations of U.S. government sponsored enterprises and agencies		131,484		1,061		—			132,545
Obligations of states and political subdivisions		1,388,369		82,693		(28	)		1,471,034
Corporate bonds and other		68,836		1,896		—			70,732
Residential mortgage-backed securities		793,509		17,180		(963	)		809,726
Commercial mortgage-backed securities		264,231		4,013		(71	)		268,173
Total securities available-for-sale	$	2,657,185	$	106,916	$	(1,062	)	$	2,763,039
	March 31, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,899	$	84	$	—		$	10,983
Obligations of U.S. government sponsored enterprises and agencies		173,777		1,340		—			175,117
Obligations of states and political subdivisions		1,238,354		65,922		(784	)		1,303,492
Corporate bonds and other		95,044		3,089		—			98,133
Residential mortgage-backed securities		900,831		20,752		(1,217	)		920,366
Commercial mortgage-backed securities		179,773		1,575		(109	)		181,239
Total securities available-for-sale	$	2,598,678	$	92,762	$	(2,110	)	$	2,689,330
	December 31, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,792	$	5	$	(2	)	$	10,795
Obligations of U.S. government sponsored enterprises and agencies		148,393		268		(107	)		148,554
Obligations of states and political subdivisions		1,379,879		71,382		(134	)		1,451,127
Corporate bonds and other		86,182		1,778		(5	)		87,955
Residential mortgage-backed securities		781,648		10,993		(3,759	)		788,882
Commercial mortgage-backed securities		247,991		429		(1,834	)		246,586
Total securities available-for-sale	$	2,654,885	$	84,855	$	(5,841	)	$	2,733,899

Disclosures related to the Company’s held-to-maturity securities, which totaled $146,000, $310,000 and $278,000 at March 31, 2016 and 2015, and December 31, 2015, respectively, have not been presented due to insignificance.

12

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 March 31, 2016 were computed by using scheduled amortization of balances and historical prepayment rates. At March 31, 2016 and 2015, and December 31, 2015, 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 March 31, 2016, by contractual and expected maturity, are shown below (in thousands):

	Amortized Cost Basis		Estimated Fair Value
Due within one year	$	168,837	$	170,475
Due after one year through five years		700,497		737,357
Due after five years through ten years		727,661		774,335
Due after ten years		2,450		2,973
Mortgage-backed securities		1,057,740		1,077,899
Total	$	2,657,185	$	2,763,039

The following tables disclose, as of March 31, 2016 and 2015, and December 31, 2015, 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
March 31, 2016	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	6,804	$	23	$	1,071	$	5	$	7,875	$	28
Residential mortgage-backed securities		25,152		357		48,124		606		73,276		963
Commercial mortgage-backed securities		15,553		13		14,520		58		30,073		71
Total	$	47,509	$	393	$	63,715	$	669	$	111,224	$	1,062

	Less than 12 Months				12 Months or Longer				Total
March 31, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	84,444	$	748	$	2,570	$	36	$	87,014	$	784
Residential mortgage-backed securities		12,917		13		67,164		1,204		80,081		1,217
Commercial mortgage-backed securities		19,842		57		9,564		52		29,406		109
Total	$	117,203	$	818	$	79,298	$	1,292	$	196,501	$	2,110

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	Less than 12 Months				12 Months or Longer				Total
December 31, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasury securities	$	5,110	$	2	$	—	$	—	$	5,110	$	2
Obligations of U.S. government sponsored enterprises and agencies		50,388		107		—		—		50,388		107
Obligations of states and political subdivisions		32,929		127		1,513		7		34,442		134
Corporate bonds and other		7,004		5		—		—		7,004		5
Residential mortgage-backed securities		231,481		1,765		63,919		1,994		295,400		3,759
Commercial mortgage-backed securities		196,163		1,752		9,345		82		205,508		1,834
Total	$	523,075	$	3,758	$	74,777	$	2,083	$	597,852	$	5,841

The number of investments in an unrealized loss position totaled 30 at March 31, 2016. 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 March 31, 2016 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 March 31, 2016, $1,600,768,000 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 March 31, 2016 and 2015, sales of investment securities that were classified as available-for-sale totaled $553,000 and $1,129,000, respectively. Gross realized gains from security sales during the first quarter of 2016 and 2015 totaled $7,000 and $5,000, respectively. Gross realized losses from security sales during the first quarter of 2016 totaled $5,000. There were no gross realized losses from security sales during the first quarter of 2015. 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

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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.

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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 March 31, 2016 and 2015, and December 31, 2015, 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 March 31, 2016 and 2015, and December 31, 2015, 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.

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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 March 31, 2016 and 2015, and December 31, 2015, was $1,970,000, $2,037,000 and $2,178,000, respectively, compared to a contractual balance of $2,701,000, $2,817,000, and $2,936,000, 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):

	March 31,				December 31,
	2016		2015		2015
Commercial	$	669,525	$	651,723	$	696,163
Agricultural		87,490		90,610		102,351
Real estate		2,150,132		1,826,579		2,136,233
Consumer		375,052		359,564		382,303
Total loans held-for-investment	$	3,282,199	$	2,928,476	$	3,317,050

Loans held for sale totaled $17,008,000, $10,231,000 and $33,543,000 at March 31, 2016 and 2015, and December 31, 2015, respectively, which are valued using the lower of cost or market method.

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

	March 31,				December 31,
	2016		2015		2015
Non-accrual loans*	$	27,175	$	18,935	$	28,601
Loans still accruing and past due 90 days or more		59		184		341
Troubled debt restructured loans**		973		177		199
Total	$	28,207	$	19,296	$	29,141

* Includes $1,970,000, $2,037,000 and $2,178,000 of purchased credit impaired loans as of March 31, 2016 and 2015, and December 31, 2015, respectively.

** Troubled debt restructured loans of $8,527,000, $8,431,000 and $6,113,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, respectively.

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

March 31, 2016				March 31, 2015				December 31, 2015
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	27,175	$	5,262	$	18,935	$	3,860	$	28,601	$	5,071

The average recorded investment in impaired loans for the three months ended March 31, 2016 and 2015, and the year ended December 31, 2015, was approximately $26,412,000, $20,263,000 and $21,735,000, respectively. The Company had $29,028,000, $20,377,000 and $29,768,000 in non-accrual, past due 90 days or more and still accruing, restructured loans and foreclosed assets at March 31, 2016 and 2015, and December 31, 2015, respectively. Non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, consisted of the following by class of financing receivables (in thousands):

	March 31,				December 31,
	2016		2015		2015
Commercial	$	7,392	$	3,098	$	8,761
Agricultural		19		197		97
Real estate		18,473		14,983		18,766
Consumer		1,291		657		977
Total	$	27,175	$	18,935	$	28,601

No significant additional funds are committed to be advanced in connection with impaired loans as of March 31, 2016.

The Company’s impaired loans and related allowance as of March 31, 2016 and 2015, and December 31, 2015, 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.

March 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	8,309	$	1,227	$	6,165	$	7,392	$	2,165	$	6,812
Agricultural		19		—		19		19		7		11
Real Estate		23,740		5,746		12,727		18,473		2,658		18,504
Consumer		1,478		210		1,081		1,291		432		1,085
Total	$	33,546	$	7,183	$	19,992	$	27,175	$	5,262	$	26,412

* Includes $1,970,000 of purchased credit impaired loans.

March 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,696	$	373	$	2,725	$	3,098	$	1,079	$	3,200
Agricultural		213		—		197		197		55		207
Real Estate		20,865		4,519		10,464		14,983		2,617		16,179
Consumer		870		406		251		657		109		677
Total	$	25,644	$	5,298	$	13,637	$	18,935	$	3,860	$	20,263

* Includes $2,037,000 of purchased credit impaired loans.

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December 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year Average Recorded Investment
Commercial	$	10,056	$	608	$	8,153	$	8,761	$	2,030	$	5,812
Agricultural		97		—		97		97		70		48
Real Estate		23,710		5,314		13,452		18,766		2,827		15,211
Consumer		1,167		624		353		977		144		664
Total	$	35,030	$	6,546	$	22,055	$	28,601	$	5,071	$	21,735

* Includes $2,178,000 of purchased credit impaired loans.

The Company recognized interest income on impaired loans prior to being recognized as impaired of approximately $922,000 during the year ended December 31, 2015. Such amounts for the three-month periods ended March 31, 2016 and 2015 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 weaknesses 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 March 31, 2016 and 2015, and December 31, 2015 (in thousands):

March 31, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,466	$	7,378	$	50,681	$	—	$	669,525
Agricultural		84,555		350		2,585		—		87,490
Real Estate		2,072,210		23,359		54,563		—		2,150,132
Consumer		371,826		399		2,827		—		375,052
Total	$	3,140,057	$	31,486	$	110,656	$	—	$	3,282,199

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March 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	631,100	$	9,384	$	11,239	$	—	$	651,723
Agricultural		90,030		164		416		—		90,610
Real Estate		1,771,889		20,809		33,782		99		1,826,579
Consumer		357,709		517		1,338		—		359,564
Total	$	2,850,728	$	30,874	$	46,775	$	99	$	2,928,476

December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	633,083	$	9,762	$	53,318	$	—	$	696,163
Agricultural		99,862		1,398		1,091		—		102,351
Real Estate		2,054,738		29,000		52,458		37		2,136,233
Consumer		379,941		416		1,946		—		382,303
Total	$	3,167,624	$	40,576	$	108,813	$	37	$	3,317,050

At March 31, 2016 and 2015, and December 31, 2015, the Company’s past due loans are as follows (in thousands):

March 31, 2016	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	$	3,338	$	1,228	$	1,498	$	6,064	$	663,461	$	669,525	$	42
Agricultural		320		—		—		320		87,170		87,490		—
Real Estate		10,979		1,560		3,684		16,223		2,133,909		2,150,132		—
Consumer		1,677		336		162		2,175		372,877		375,052		17
Total	$	16,314	$	3,124	$	5,344	$	24,782	$	3,257,417	$	3,282,199	$	59

March 31, 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	$	4,514	$	283	$	208	$	5,005	$	646,718	$	651,723	$	—
Agricultural		485		35		—		520		90,090		90,610		—
Real Estate		13,077		1,116		1,368		15,561		1,811,018		1,826,579		144
Consumer		1,679		390		218		2,287		357,277		359,564		40
Total	$	19,755	$	1,824	$	1,794	$	23,373	$	2,905,103	$	2,928,476	$	184

December 31, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due Still Accruing
Commercial	$	3,099	$	3,652	$	1,024	$	7,775	$	688,388	$	696,163	$	54
Agricultural		348		83		—		431		101,920		102,351		—
Real Estate		12,247		2,226		2,874		17,347		2,118,886		2,136,233		217
Consumer		1,645		183		266		2,094		380,209		382,303		70
Total	$	17,339	$	6,144	$	4,164	$	27,647	$	3,289,403	$	3,317,050	$	341

* 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 March 31, 2016 and 2015, and December 31, 2015, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2016 and 2015, and December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,165	$	7	$	2,658	$	432	$	5,262
Loans collectively evaluated for impairment		10,740		1,248		23,441		3,381		38,810
Total	$	12,905	$	1,255	$	26,099	$	3,813	$	44,072

March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,079	$	55	$	2,617	$	109	$	3,860
Loans collectively evaluated for impairment		9,296		418		22,622		1,632		33,968
Total	$	10,375	$	473	$	25,239	$	1,741	$	37,828

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,030	$	70	$	2,827	$	144	$	5,071
Loans collectively evaluated for impairment		10,614		1,121		21,548		3,523		36,806
Total	$	12,644	$	1,191	$	24,375	$	3,667	$	41,877

Changes in the allowance for loan losses for the three months ended March 31, 2016 and 2015, are summarized as follows by portfolio segment (in thousands):

Three months ended March 31, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		847			196			832			453			2,328
Recoveries		286			11			1,227			125			1,649
Charge-offs		(872	)		(143	)		(335	)		(432	)		(1,782	)
Ending balance	$	12,905		$	1,255		$	26,099		$	3,813		$	44,072

Three months ended March 31, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		2,465			(32	)		(1,467	)		324			1,290
Recoveries		80			2			71			71			224
Charge-offs		(160	)		(24	)		(22	)		(304	)		(510	)
Ending balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828

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The Company’s recorded investment in loans as of March 31, 2016 and 2015, and December 31, 2015 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 $1,970,000, $2,037,000 and $2,178,000 at March 31, 2016 and 2015, and December 31, 2015, respectively, are included in loans individually evaluated for impairment.

March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,392	$	19	$	18,473	$	1,291	$	27,175
Loans collectively evaluated for impairment		662,133		87,471		2,131,659		373,761		3,255,024
Total	$	669,525	$	87,490	$	2,150,132	$	375,052	$	3,282,199

March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,098	$	197	$	14,983	$	657	$	18,935
Loans collectively evaluated for impairment		648,625		90,413		1,811,596		358,907		2,909,541
Total	$	651,723	$	90,610	$	1,826,579	$	359,564	$	2,928,476

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	8,761	$	97	$	18,766	$	977	$	28,601
Loans collectively evaluated for impairment		687,402		102,254		2,117,467		381,326		3,288,449
Total	$	696,163	$	102,351	$	2,136,233	$	382,303	$	3,317,050

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The Company’s loans that were modified in the three months ended March 31, 2016 and 2015 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		7	$	2,640	$	2,640		3	$	128	$	128
Agricultural		—		—		—		—		—		—
Real Estate		2		463		463		—		—		—
Consumer		2		20		20		1		24		24
Total		11	$	3,123	$	3,123		4	$	152	$	152

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three months ended March 31, 2016 and 2015 (in thousands):

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	2,237	$	403	$	—	$	128	$	—
Agricultural		—		—		—		—		—		—
Real Estate		—		113		350		—		—		—
Consumer		—		4		16		—		—		24
Total	$	—	$	2,354	$	769	$	—	$	128	$	24

During the three months ended March 31, 2015, 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 March 31, 2016. 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):

	Three Months Ended March 31, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

As of March 31, 2016, 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 March 31, 2016, $2,032,327,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At March 31, 2016, $175,000,000 were outstanding under this line of credit.

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Note 6 – Borrowings

Borrowings at March 31, 2016 and 2015, and December 31, 2015 consisted of the following (dollars in thousands):

	March 31,				December 31,
	2016		2015		2015
Securities sold under agreements with customers to repurchase	$	342,540	$	366,140	$	310,330
Federal funds purchased		7,800		19,775		6,325
Advances from Federal Home Loan Bank of Dallas		175,000		15,983		299,020
Total	$	525,340	$	401,898	$	615,675

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 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 $7,739,000 for the first quarter of 2016 as compared to $7,766,000 for the same period in 2015. The Company’s effective tax rates on pretax income were 23.15% and 24.45% for the first quarters of 2016 and 2015, 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.

Note 8 - Stock Option Plan and Restricted Stock Plan

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 March 31, 2016, no options have been granted in 2016. On October 27, 2015, the Company granted 455,000 shares in incentive stock options at an exercise price of $33.89 to its employees. The Company recorded stock option expense totaling $220,000 and $180,000 for the three-month periods ended March 31, 2016 and 2015, respectively.

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 is being expensed over the period from grant date to April 26, 2016, the next scheduled annual shareholders’ meeting at which the director’s current term will expire. On October 27, 2015, the Company also granted 32,748 shares with a total value of $1,110,000 to certain officers that is being expensed over the vesting period of three years. The additional disclosure requirements under authoritative accounting guidance have been omitted due to immateriality.

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

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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 $500,000 in 2015 and has to date made no contributions in 2016.

Net periodic benefit costs totaling $82,000 and $75,000 were recorded for the three months ended March 31, 2016 and 2015, 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) 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.

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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 months ended March 31, 2016 and 2015, and the year ended December 31, 2015.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2016 and 2015, and December 31, 2015, respectively, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

March 31, 2016
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,829	$	—	$	—	$	10,829
Obligations of U. S. government sponsored-enterprises and agencies		—		132,545		—		132,545
Obligations of states and political subdivisions		—		1,471,034		—		1,471,034
Corporate bonds		—		66,136		—		66,136
Residential mortgage-backed securities		—		809,726		—		809,726
Commercial mortgage-backed securities		—		268,173		—		268,173
Other securities		4,596		—		—		4,596
Total	$	15,425	$	2,747,614	$	—	$	2,763,039

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March 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,983	$	—	$	—	$	10,983
Obligations of U. S. government sponsored-enterprises and agencies		—		175,117		—		175,117
Obligations of states and political subdivisions		—		1,303,492		—		1,303,492
Corporate bonds		—		93,158		—		93,158
Residential mortgage-backed securities		—		920,366		—		920,366
Commercial mortgage-backed securities		—		181,239		—		181,239
Other securities		4,975		—		—		4,975
Total	$	15,958	$	2,673,372	$	—	$	2,689,330

December 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,795	$	—	$	—	$	10,795
Obligations of U. S. government sponsored-enterprises and agencies		—		148,554		—		148,554
Obligations of states and political subdivisions		—		1,451,127		—		1,451,127
Corporate bonds		—		83,254		—		83,254
Residential mortgage-backed securities		—		788,882		—		788,882
Commercial mortgage-backed securities		—		246,586		—		246,586
Other securities		4,701		—		—		4,701
Total	$	15,496	$	2,718,403	$	—	$	2,733,899

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 March 31, 2016:

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 March 31, 2016, impaired loans with a carrying value of $27,175,000 were reduced by specific valuation reserves totaling $5,262,000 resulting in a net fair value of $21,913,000.

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 March 31, 2016, the Company’s mortgage loans held-for-sale were recorded at cost as fair value exceeded 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 months

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ended March 31, 2016 and 2015 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. Re-evaluation 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 March 31,
	2016		2015
Carrying value of other real estate owned prior to re-measurement	$	—	$	10
Write-downs included in gain (loss) on sale of other real estate owned		—		(10	)
Fair value	$	—	$	—

At March 31, 2016 and 2015, and December 31, 2015, other real estate owned totaled $743,000, $863,000, and $153,000, 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 March 31, 2016 and 2015, and December 31, 2015, were as follows (in thousands):

	March 31,				March 31,				December 31,
	2016				2015				2015
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Fair Value Hierarchy
Cash and due from banks	$	139,995	$	139,995	$	142,233	$	142,233	$	179,140	$	179,140	Level 1
Federal funds sold		2,660		2,660		5,460		5,460		3,810		3,810	Level 1
Interest-bearing deposits in banks		22,993		22,993		18,275		18,275		89,936		89,936	Level 1
Interest-bearing time deposits in banks		2,427		2,430		9,170		9,185		3,495		3,500	Level 2
Available-for-sale Securities		2,763,039		2,763,039		2,689,330		2,689,330		2,733,899		2,733,899	Levels 1 and 2
Held-to-maturity securities		146		150		310		317		278		283	Level 2
Loans		3,255,135		3,260,544		2,900,879		2,907,114		3,308,716		3,316,243	Level 3
Accrued interest receivable		26,166		26,166		25,238		25,238		34,697		34,697	Level 2
Deposits with stated maturities		589,898		591,675		623,108		624,926		620,852		622,572	Level 2
Deposits with no stated maturities		4,473,909		4,473,909		4,213,899		4,213,899		4,569,317		4,569,317	Level 1
Short-term borrowings		525,340		525,340		401,898		401,898		615,675		615,675	Level 2
Accrued interest payable		254		254		235		235		240		240	Level 2

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Note 11 - Recently Issued Authoritative Accounting Guidance

Accounting Standards Update (“ASU”) 2014-14, “Receivables – Troubled Debt Restructuring by Creditors.” ASU 2014-14 clarified 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.

ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 implements 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 2018. The Company is continuing to evaluate the potential impact to the Company’s financial statements.

ASU 2014-11, “Transfers and Servicing.” ASU 2014-11 amended 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.

ASU 2015-01, “Income Statement – Extraordinary and Unusual Items.” ASU 2015-01 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 became effective for the Company beginning January 1, 2016, and did not have a significant impact on the Company’s financial statements.

ASU 2015-16, “Business Combinations – Simplifying the Accounting Measurement Period Adjustments.” ASU 2015-16 amended business combination guidance to require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record, in the same period’s financial statements, the effect of earnings on changes in depreciation, amortization, or other income effects, if any, as a result of the changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Additionally, the entity is required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amended guidance became effective for the Company on January 1, 2016, and did not have a significant impact on the Company’s financial statements.

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ASU 2016-1, “No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-1 will be effective for us on January 1, 2018 and is not expected to have a significant impact on the Company’s financial statements.

ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2015-05 addresses accounting for fees paid by a customer in cloud computing arrangements such as (i) software as a service, (ii) platform as a service, (iii) infrastructure as a service and (iv) other similar hosting arrangements. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 became effective on January 1, 2016 and did not have a significant impact on the Company’s financial statements.

ASU 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 will amend current guidance such that all excess tax benefits and tax deficiencies related to share-based payment awards will be recognized as income tax expense or benefit in the income statement during the period in which they occur. Additionally, excess tax benefits will be classified along with other income tax cash flows as an operating activity rather than a financing activity. ASU 2016-09 also provides that any entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, which is the current requirement, or account for forfeitures when they occur. ASU 2016-09 will be effective January 1, 2017 and is not expected to have a significant impact on our financial statements.

ASU 2016-02, “Leases.” ASU 2016-02 will amend current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. The amended guidance will be effective in the first quarter of 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the potential impact of ASU 2016-02 on the Company’s financial statements.

Note 12 – Acquisition and Asset Purchase

On April 1, 2015, we entered into an agreement and plan of reorganization to acquire FBC Bancshares, Inc. and its wholly owned bank subsidiary, First Bank, N.A., Conroe, Texas. On July 31, 2015, the transaction was completed. Pursuant to the agreement, we issued 1,755,374 shares of the Company’s common stock in exchange for all of the outstanding shares of FBC Bancshares, Inc. At closing, FBC Bancshares, Inc. was merged into the Company and First Bank, N.A., Conroe, Texas, was merged into First Financial Bank, National Association, Abilene, Texas, a wholly owned subsidiary of the Company. The primary purpose of the acquisition was to expand the Company’s market share along Interstate Highway 45 in southern Texas, north of Houston. Factors that contributed to a purchase price resulting in goodwill include First Bank, N.A.’s historic record of earnings, strong local economic environment and opportunity for growth. The results of operations from this acquisition are included in the consolidated earnings of the Company commencing August 1, 2015.

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The assets acquired and liabilities assumed were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. The acquisition was not considered to be a significant business combination. The following table presents the amounts recorded on the consolidated balance sheet on the acquisition date (dollars in thousands):

Fair value of consideration paid:
Common stock issued (1,755,374 shares)	$	59,648
Fair value of identifiable assets acquired:
Cash and cash equivalents		65,197
Securities available-for-sale		42,903
Loans		248,380
Identifiable intangible assets		2,343
Other assets		15,262
Total identifiable assets acquired		374,085
Fair value of liabilities assumed:
Deposits		343,583
Subordinated debt		13,125
Other liabilities		1,651
Total liabilities assumed		358,359
Fair value of net identifiable assets acquired		15,726
Goodwill resulting from acquisition	$	43,922

Goodwill recorded in the acquisition was accounted for in accordance with the authoritative business combination guidance. Accordingly, goodwill will not be amortized, but will be tested for impairment annually. The goodwill recorded is not deductible for federal income tax purposes.

The subordinated debt of $13,125,000 was paid off August 3, 2015, subsequent to closing.

The fair value of total loans acquired was $248,380,000 at acquisition compared to contractual amounts of $252,458,000. The fair value of purchased credit impaired loans at acquisition was $1,398,000 compared to contractual amounts of $1,704,000. Additional purchased credit impaired loan disclosures were omitted due to immateriality. All other acquired loans were considered performing loans.

First Bank, N.A. had branches in Conroe, Magnolia, Tomball, The Woodlands, Cut and Shoot and Huntsville, all located north of Houston, Texas. On February 26, 2016, the Company closed First Bank’s Huntsville location and merged the branch with the Company’s existing Huntsville location.

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 asset purchase was finalized on May 31, 2015, which we refer to herein as the “4Trust asset purchase.” The total asset purchase price exceeded the estimated fair value of assets purchased by approximately $1,750,000 and the Company recorded such excess as goodwill.

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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 (e.g., 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;

• cyber attacks on our technology 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 2015 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.

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Results of Operations

Performance Summary. Net earnings for the first quarter of 2016 were $25.70 million compared to $24.00 million for the same quarter in 2015, or a 7.08% increase.

Basic earnings per share for the first quarter of 2016 were $0.39 compared to $0.37 for the same quarter last year. The return on average assets was 1.58% for the first quarter of 2016, as compared to 1.64% for the first quarter of 2015. The return on average equity was 12.55% for the first quarter of 2016 as compared to 14.00% for the first quarter of 2015.

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 $63.14 million for the first quarter of 2016, as compared to $56.31 million for the same period last year. The increase in 2016 compared to 2015 was largely attributable to the increase in volume of interest earning assets. Average earning assets increased $559.01 million for the first quarter of 2016 over the same period in 2015. Average loans and tax exempt securities increased $380.86 million and $236.41 million, respectively, for the first quarter of 2016 over the first quarter of 2015. Average interest bearing liabilities increased $398.43 million for the first quarter of 2016, as compared to the same period in 2015. The yield on earning assets increased 6 basis points and the rate paid on interest-bearing liabilities increased 2 basis points for the first quarter of 2016 over the first quarter of 2015.

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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 March 31, 2016 Compared to Three Months Ended March 31, 2015
	Change Attributable to						Total Change
	Volume			Rate
Short-term investments	$	(40	)	$	20		$	(20	)
Taxable investment securities		(55	)		(491	)		(546	)
Tax-exempt investment securities (1)		2,772			(419	)		2,353
Loans (1) (2)		4,600			782			5,382
Interest income		7,277			(108	)		7,169
Interest-bearing deposits		63			62			125
Short-term borrowings		20			198			218
Interest expense		83			260			343
Net interest income	$	7,194		$	(368	)	$	6,826

(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 first quarter of 2016 was 4.15%, an increase of 4 basis points from the same period in 2015. Although the Federal Reserve slightly increased rates in late 2015 and continues to issue forward guidance plans to increase rates further in 2016 and future years, we expect interest rates to remain at lower levels, which will continue the downward pressure on our net 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 March 31,
	2016								2015
	Average Balance			Income/ Expense		Yield/ Rate			Average Balance			Income/ Expense		Yield/ Rate
Assets
Short-term investments (1)	$	47,773		$	60		0.51	%	$	96,565		$	80		0.34	%
Taxable investment securities (2)		1,323,606			7,262		2.19			1,333,073			7,808		2.34
Tax-exempt investment securities (2)(3)		1,428,178			16,326		4.57			1,191,772			13,973		4.69
Loans (3)(4)		3,312,664			40,802		4.95			2,931,805			35,421		4.90
Total earning assets		6,112,221		$	64,450		4.24	%		5,553,215		$	57,282		4.18	%
Cash and due from banks		158,316								153,348
Bank premises and equipment, net		116,232								104,008
Other assets		56,598								45,862
Goodwill and other intangible assets, net		144,348								97,314
Allowance for loan losses		(42,632	)							(37,321	)
Total assets	$	6,545,083							$	5,916,426
Liabilities and Shareholders’ Equity
Interest-bearing deposits	$	3,445,622		$	1,053		0.12	%	$	3,221,552		$	928		0.12	%
Short-term borrowings		562,569			259		0.19			388,213			42		0.04
Total interest-bearing liabilities		4,008,191		$	1,312		0.13	%		3,609,765		$	970		0.11	%
Noninterest-bearing deposits		1,652,182								1,559,916
Other liabilities		60,940								51,514
Total liabilities		5,721,313								5,221,195
Shareholders’ equity		823,770								695,231
Total liabilities and shareholders’ equity	$	6,545,083							$	5,916,426
Net interest income				$	63,138							$	56,312
Rate Analysis:
Interest income/earning assets							4.24	%							4.18	%
Interest expense/earning assets							0.09								0.07
Net yield on earning assets							4.15	%							4.11	%

(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 first quarter of 2016 was $19.82 million, an increase of $3.92 million compared to the same period in 2015. Service charges on deposits and ATM, interchange and credit card fees increased 17.12 and 14.31 percent, respectively, to $4.41 million and $5.68 million compared with $3.77 million and $4.97 million, respectively, in the same quarter last year due to the acquisition of First Bank and the continued growth in net new accounts and debit cards. Real estate mortgage fees increased 111.81 percent in the first quarter of 2016 to $3.14 million compared with $1.48 million in the same quarter a year ago, primarily resulting from additional loan origination production from the 4Trust asset purchase. Trust fees decreased $76 thousand to $4.66 million in the first quarter of 2016 compared with $4.73 million in the same quarter last year due to a $257 thousand decline in trust oil and gas fee income when compared to the same quarter a year ago. This decline was mostly offset by an increase in the fair value of trust assets managed to $4.01 billion from $3.85 billion a year ago.

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Table 3 - Noninterest Income (in thousands):

	Three Months Ended March 31,
	2016		Increase (Decrease)			2015
Trust fees	$	4,655	$	(76	)	$	4,731
Service charges on deposit accounts		4,413		645			3,768
ATM, interchange and credit card fees		5,680		711			4,969
Real estate mortgage operations		3,139		1,657			1,482
Net gain (loss) on sale of available-for-sale securities		2		(3	)		5
Net gain on sale of foreclosed assets		76		46			30
Net gain on sale of assets		513		508			5
Interest on loan recoveries		633		525			108
Other:
Check printing fees		47		(11	)		58
Safe deposit rental fees		194		7			187
Credit life and debt protection fees		120		(15	)		135
Brokerage commissions		93		(87	)		180
Miscellaneous income		256		17			239
Total other		710		(89	)		799
Total Noninterest Income	$	19,821	$	3,924		$	15,897

Noninterest Expense. Total noninterest expense for the first quarter of 2016 was $41.08 million, an increase of $7.14 million compared to the same period in 2015. 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 first quarter of 2016 was 49.52%, compared to 47.01% from the same period in 2015.

Salaries and employee benefits for the first quarter of 2016 totaled $22.59 million, an increase of $4.33 million compared to the same period in 2015. The increase was primarily driven by the addition of 4Trust and First Bank employees and annual pay increases.

All other categories of noninterest expense for the first quarter of 2016 totaled $18.49 million, an increase of $2.81 million compared to the same period in 2015. This increase primarily resulted from increases in equipment, net occupancy and professional fee expenses also largely driven by the additions of 4Trust and First Bank.

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Table 4 - Noninterest Expense (in thousands):

	Three Months Ended March 31,
	2016		Increase (Decrease)			2015
Salaries	$	17,083	$	3,217		$	13,866
Medical		2,028		792			1,236
Profit sharing		1,045		(197	)		1,242
Pension		82		7			75
401(k) match expense		611		129			482
Payroll taxes		1,435		251			1,184
Stock option and stock grant expense		306		126			180
Total salaries and employee benefits		22,590		4,325			18,265
Net occupancy expense		2,631		434			2,197
Equipment expense		3,380		481			2,899
FDIC assessment fees		824		76			748
ATM, interchange and credit card expense		1,687		(38	)		1,725
Professional and service fees		1,564		499			1,065
Printing, stationery and supplies		503		(93	)		596
Amortization of intangible assets		199		109			90
Other:
Data processing fees		103		9			94
Postage		428		9			419
Advertising		814		55			759
Correspondent bank service charges		247		25			222
Telephone		731		245			486
Public relations and business development		630		36			594
Directors’ fees		361		102			259
Audit and accounting fees		476		51			425
Legal fees		618		30			588
Regulatory exam fees		284		25			259
Travel		267		59			208
Courier expense		187		(19	)		206
Operational and other losses		486		259			227
Other real estate		41		15			26
Other miscellaneous expense		2,030		444			1,586
Total other		7,703		1,345			6,358
Total Noninterest Expense	$	41,081	$	7,138		$	33,943

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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 commercial real estate, which is primarily owner-occupied. 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 March 31, 2016, total loans held for investment were $3.28 billion, a decrease of $34.85 million, as compared to December 31, 2015. As compared to December 31, 2015, commercial loans decreased $26.64 million, agricultural loans decreased $14.86 million, real estate loans increased $13.90 million, and consumer loans decreased $7.25 million. Loans averaged $3.31 billion during the first quarter of 2016, an increase of $380.86 million from the prior year first quarter average balances.

Table 5 - Composition of Loans (in thousands):

	March 31,				December 31, 2015
	2016		2015
Commercial	$	669,525	$	651,723	$	696,163
Agricultural		87,490		90,610		102,351
Real estate		2,150,132		1,826,579		2,136,233
Consumer		375,052		359,564		382,303
Total loans held-for-investment	$	3,282,199	$	2,928,476	$	3,317,050

At March 31, 2016, our real estate loans represent approximately 65.51% of our loan portfolio and are comprised of (i) 1-4 family residence loans of 44.31%, (ii) commercial real estate loans of 25.03%, generally owner occupied, (iii) other loans, which includes ranches, hospitals and universities, of 16.13%, (iv) residential development and construction loans of 9.35%, which includes our custom and speculation home construction loans and (v) commercial development and construction loans of 5.18%.

Loans held for sale, consisting of secondary market mortgage loans, totaled $17.01, $10.23 million, and $33.54 million at March 31, 2016 and 2015, and December 31, 2015, respectively, which are valued using the lower of cost or market method.

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 $29.03 million at March 31, 2016, as compared to $20.38 million at March 31, 2015 and $29.77 million at December 31, 2015. As a percent of loans and foreclosed assets, these assets were 0.88% at March 31, 2016, as compared to 0.69% at March 31, 2015 and 0.89% at December 31, 2015. As a percent of total assets, these assets were 0.44% at March 31, 2016, as compared to 0.34% at March 31, 2015 and 0.45% at December 31, 2015. 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 March 31, 2016.

Supplemental Oil and Gas Information. As of March 31, 2016, the Company’s direct exposure to the oil and gas industry remained at approximately 2.79% of total loans, or $92.06 million, consistent with December 31, 2015 year-end levels, and consisted (based on collateral supporting the loan) of (i) development and production loans of 6.7%, (ii) oil and gas field servicing loans of 16.7%, (iii) real estate loans of 37.7%, (iv) accounts receivable and inventory of 16.3% and (v) other of 22.6%. These loans have experienced increased stress due to continued depressed oil and gas prices. The Company has

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instituted additional monitoring procedures for these loans and has classified, downgraded and charged-off loans as appropriate. The following oil and gas information is as of and for the quarters ended March 31, 2016 and 2015, and December 31, 2015:

	March 31,						December 31, 2015
	2016			2015
Oil and gas loans	$	92,058		$	95,044		$	96,712
Oil and gas loans as a % of total loans		2.79	%		3.23	%		2.89	%
Classified oil and gas loans	$	36,402		$	6,654		$	34,506
Nonaccrual oil and gas loans		4,917			44			5,404
Net charge-offs for oil and gas loans		517			10			1,370
Allowance for oil and gas loans as a % of oil and gas loans		7.37	%		3.40	%		6.35	%

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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):

	March 31,						December 31, 2015
	2016			2015
Non-accrual loans*	$	27,175		$	18,935		$	28,601
Loans still accruing and past due 90 days or more		59			184			341
Troubled debt restructured loans**		973			177			199
Nonperforming loans		28,207			19,296			29,141
Foreclosed assets		821			1,081			627
Total nonperforming assets	$	29,028		$	20,377		$	29,768
As a % of loans and foreclosed assets		0.88	%		0.69	%		0.89	%
As a % of total assets		0.44	%		0.34	%		0.45	%

* Includes $1.97 million, $2.04 million and $2.18 million of purchased credit impaired loans as of March 31, 2016 and 2015, and December 31, 2015, respectively.

** Troubled debt restructured loans of $8.53 million, $8.43 million and $6.11 million, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, 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, 2015 of approximately $780 thousand during the year ended December 31, 2015. If interest on these impaired loans had been recognized on a full accrual basis during the year ended December 31, 2015, such income would have approximated $2.74 million. Such amounts for the 2016 and 2015 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 $2.33 million for the first quarter of 2016, as compared to $1.29 million for the first quarter of 2015. The continued provision for loan losses in 2016 and 2015 reflects the continued levels of nonperforming and classified assets, gross charge-offs, as well as the economic effects related to the oil and gas industry. The Company’s direct exposure to the oil and gas industry remained at approximately 2.79% of total loans at March 31, 2016, consistent with December 31, 2015 year-end levels. As a percent of average loans, net loan charge-offs were 0.02% for the first quarter of 2016, as compared to 0.04% for the first quarter of 2015. The allowance for loan losses as a percent of loans was 1.34% as of March 31, 2016, as compared to 1.29% as of March 31, 2015 and 1.25% as of December 31, 2015. 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 March 31,
	2016			2015
Allowance for loan losses at period-end	$	44,072		$	37,828
Loans held-for-investment at period-end		3,282,199			2,928,476
Average loans for period		3,312,664			2,931,805
Net charge-offs/average loans (annualized)		0.02	%		0.04	%
Allowance for loan losses/period-end loans		1.34	%		1.29	%
Allowance for loan losses/non-accrual loans, past due 90 days still accruing and restructured loans		156.24	%		196.04	%

Interest-Bearing Deposits in Banks. At March 31, 2016, our interest-bearing deposits in banks were $25.42 million compared to $27.45 million at March 31, 2015 and $93.43 million at December 31, 2015. At March 31, 2016, interest-bearing deposits in banks included $2.43 million invested in FDIC-insured certificates of deposit, $22.68 million maintained at the Federal Reserve Bank of Dallas and $310 thousand on deposit with the Federal Home Loan Bank of Dallas (“FHLB”).

Available-for-Sale and Held-to-Maturity Securities. At March 31, 2016, securities with a fair value of $2.76 billion were classified as securities available-for-sale and securities with an amortized cost of $146 thousand were classified as securities held-to-maturity. As compared to December 31, 2015, the available-for-sale portfolio at March 31, 2016 reflected (i) a decrease of $16.01 million in obligations of U.S. government sponsored enterprises and agencies, (ii) an increase of $19.91 million in obligations of states and political subdivisions, (iii) a decrease of $17.22 million in corporate bonds and other, (iv) an increase of $42.43 million in mortgage-backed securities and (v) an increase of $34 thousand 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 investment portfolio at March 31, 2016 and 2015, and December 31, 2015.

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Table 8 - Maturities and Yields of Available-for-Sale Securities Held at March 31, 2016 (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	$	—		—	%	$	10,829		1.13	%	$	—		—	%	$	—		—	%	$	10,829		1.13	%
Obligations of U.S. government sponsored enterprises and agencies		51,321		1.15			81,224		1.34			—		—			—		—			132,545		1.26
Obligations of states and political subdivisions		97,748		4.30			595,978		5.18			774,335		4.89			2,973		6.65			1,471,034		4.97
Corporate bonds and other securities		21,406		2.09			49,326		3.12			—		—			—		—			70,732		2.81
Mortgage-backed securities		5,733		4.53			836,274		2.32			223,037		2.51			12,855		2.42			1,077,899		2.37
Total	$	176,208		3.12	%	$	1,573,631		3.37	%	$	997,372		4.36	%	$	15,828		3.22	%	$	2,763,039		3.71	%

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 March 31, 2016, the investment portfolio had an overall tax equivalent yield of 3.71%, a weighted average life of 4.38 years and modified duration of 3.91 years.

Deposits. Deposits held by our subsidiary bank represent our primary source of funding. Total deposits were $5.06 billion as of March 31, 2016, as compared to $4.84 billion as of March 31, 2015 and $5.19 billion as of December 31, 2015. Table 9 provides a breakdown of average deposits and rates paid for the three month periods ended March 31, 2016 and 2015.

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

	Three Months Ended March 31,
	2016					2015
	Average Balance		Average Rate			Average Balance		Average Rate
Noninterest-bearing deposits	$	1,652,182		—	%	$	1,559,916		—	%
Interest-bearing deposits:
Interest-bearing checking		1,761,548		0.12			1,609,702		0.10
Savings and money market accounts		1,078,640		0.06			977,417		0.06
Time deposits under $100,000		247,985		0.18			261,188		0.20
Time deposits of $100,000 or more		357,449		0.30			373,245		0.30
Total interest-bearing deposits		3,445,622		0.12	%		3,221,552		0.12	%
Total average deposits	$	5,097,804				$	4,781,468

Borrowings. Included in borrowings were federal funds purchased, securities sold under repurchase agreements and advances from the FHLB of $525.34 million, $401.90 million and 615.68 million at March 31, 2016 and 2015 and December 31, 2015, 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 borrowings. The average balance of federal funds purchased, securities sold under repurchase agreements and advances from the FHLB were $562.57 million and $388.21 million in the first quarters of 2016 and 2015, respectively. The weighted average interest rate paid on these borrowings were 0.19% and 0.04% for the first quarters of 2016 and 2015, respectively.

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 $838.61 million, or 12.85% of total assets at March 31, 2016, as compared to $706.25 million, or 11.72% of total assets at March 31, 2015 and $804.99 million, or 12.08% of total assets at December 31, 2015. Included in shareholders’ equity at March 31, 2016 and 2015 and December 31, 2015, were $68.81 million, $58.92 million and $51.36 million, respectively, in unrealized gains on investment securities available-for-sale, net of related income taxes. For the first quarter of 2016, total shareholders’ equity averaged $823.77 million, or 12.59% of average assets, as compared to $695.23 million, or 11.75% of average assets, during the same period in 2015.

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. 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.

45

As of March 31, 2016 and December 31, 2015, we had a total risk-based capital ratio of 17.60% and 16.97%, a Tier 1 capital to risk-weighted assets ratio of 16.46% and 15.90%; a common equity Tier 1 to risk-weighted assets ratio of 16.46% and 15.90% and a Tier 1 leverage ratio of 10.23% and 9.96%, respectively. The regulatory capital ratios as of March 31, 2016 and December 31, 2015 were calculated under Basel III rules. There is no threshold for well-capitalized status for bank holding companies.

As of March 31, 2016 and December 31, 2015, the regulatory capital ratios of the Company and Bank exceeded the required minimums, as seen in the table below:

	Actual					Capital Required Under Basel III Requirements
	Amount		Ratio			Amount		Ratio
As of March 31, 2016:
Total Capital (to Risk-Weighted Assets):
Consolidated	$	691,269		18	%	³$	341,297	³	8.625	%
First Financial Bank, N.A.	$	598,201		15	%	³$	340,570	³	8.625	%
Tier1 Capital (to Risk-Weighted Assets):
Consolidated	$	646,541		16	%	³$	262,156	³	6.625	%
First Financial Bank, N.A.	$	553,473		14	%	³$	261,598	³	6.625	%
Common Equity Tier1 Capital (to Risk-Weighted Assets):
Consolidated	$	646,541		16	%	³$	202,800	³	5.125	%
First Financial Bank, N.A.	$	553,473		14	%	³$	202,368	³	5.125	%
Tier1 Capital (to Average Assets) - Leverage:
Consolidated	$	646,541		10	%	³$	252,808	³	4	%
First Financial Bank, N.A	$	553,473		9	%	³$	252,020	³	4	%
As of December 31, 2015:
Total Capital (to Risk-Weighted Assets):
Consolidated	$	672,920		17	%	³$	318,528	³	8	%
First Financial Bank, N.A.	$	570,910		14	%	³$	317,788	³	8	%
Tier1 Capital (to Risk-Weighted Assets):
Consolidated	$	630,413		16	%	³$	238,896	³	6	%
First Financial Bank, N.A.	$	528,403		13	%	³$	238,341	³	6	%
Common Equity Tier1 Capital (to Risk-Weighted Assets):
Consolidated	$	630,413		16	%	³$	179,172	³	4.5	%
First Financial Bank, N.A.	$	528,403		13	%	³$	178,756	³	4.5	%
Tier1 Capital (to Average Assets) - Leverage:
Consolidated	$	630,413		10	%	³$	256,368	³	4	%
First Financial Bank, N.A	$	528,403		8	%	³$	252,419	³	4	%

46

We have performed a preliminary assessment using the regulatory capital estimation tool made available by the OCC and believe the Company and Bank are prepared to meet the new requirements upon full adoption of the Basel III Notice of Proposed Rulemaking that will be effective December 31, 2019.

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 prior 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 March 31, 2016, the model simulations projected that 100 and 200 basis point increases in interest rates would result in variances in net interest income of positive 0.23% and negative 0.11%, respectively, relative to the current financial statement structure over the next twelve months, while a decrease in interest rates of 50 basis points would result in a negative variance in net interest income of 2.00% 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 March 31, 2016 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 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

47

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 $525.34 million at March 31, 2016, and an unfunded $25.00 million revolving line of credit established with Frost Bank, a nonaffiliated bank, which matures in June 2017 (see next paragraph). Our subsidiary bank also has federal funds purchased lines of credit with two non-affiliated banks totaling $130.00 million. At March 31, 2016, there was $2.7 million drawn on these lines of credit. Our subsidiary bank also has available a line of credit with the FHLB totaling $786.88 million, at March 31, 2016, secured by portions of our loan portfolio and certain investment securities. At March 31, 2016, $175.00 million in advances were outstanding under this line of credit.

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 The 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 The 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 March 31, 2016. There was no outstanding balance under the line of credit as of March 31, 2016 or December 31, 2015.

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 $81.27 million at March 31, 2016, investment securities which totaled $12.07 million at March 31, 2016 and mature over 7 to 14 years, available dividends from our subsidiaries which totaled $137.11 million at March 31, 2016, 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.

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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 March 31, 2016 (in thousands):

	Total Notional Amounts Committed
Unfunded lines of credit	$	492,018
Unfunded commitments to extend credit		233,900
Standby letters of credit		31,251
Total commercial commitments	$	757,169

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 March 31, 2016, approximately $137.11 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 $1.20 million and $3.60 million for the three-month periods ended March 31, 2016 and 2015, 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 41.12% and 37.42% of net earnings for the first three months of 2016 and 2015, 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 26, 2016, the Board of Directors declared a $0.18 per share cash dividend that will be paid July 1, 2016 to shareholders of record on June 16, 2016. This represented a 12.50% increase in quarterly dividends over the same period in the prior year.

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 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.

49

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 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 OCC and the FDIC 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.

Item 4. Controls and Procedures

As of March 31, 2016, 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 March 31, 2016.

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.

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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 2015 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

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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		First Amendment to 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. This Exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

++ Management contract or compensatory plan on arrangement.

52

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: May 4, 2016	By:	/s/ F. Scott Dueser
		F. Scott Dueser
		President and Chief Executive Officer
Date: May 4, 2016	By:	/s/ J. Bruce Hildebrand
		J. Bruce Hildebrand
		Executive Vice President and Chief Financial Officer

53

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 effectives 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: May 4, 2016
	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 effectives 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: May 4, 2016
	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 March 31, 2016 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: May 4, 2016

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

Subscribed and sworn to before me this 4^th day of May, 2016.

/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 March 31, 2016 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: May 4, 2016
	By:	/s/ J. Bruce Hildebrand
		J. Bruce Hildebrand
		Chief Financial Officer

Subscribed and sworn to before me this 4^th day of May, 2016.

/s/ Melissa A. Lomax

Melissa A. Lomax

Notary Public

My commission expires: October 11, 2016

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Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 04, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
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		66,057,277

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Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
ASSETS
CASH AND DUE FROM BANKS	$ 139,995	$ 179,140	$ 142,233
FEDERAL FUNDS SOLD	2,660	3,810	5,460
INTEREST-BEARING DEPOSITS IN BANKS	22,993	89,936	18,275
Total cash and cash equivalents	165,648	272,886	165,968
INTEREST-BEARING TIME DEPOSITS IN BANKS	2,427	3,495	9,170
SECURITIES AVAILABLE-FOR-SALE, at fair value	2,763,039	2,733,899	2,689,330
SECURITIES HELD-TO-MATURITY (fair value of $150, $317 and $283 at March 31, 2016 and 2015, and December 31, 2015, respectively)	146	278	310
LOANS:
Held for investment	3,282,199	3,317,050	2,928,476
Less - allowance for loan losses	(44,072)	(41,877)	(37,828)
Net loans held for investment	3,238,127	3,275,173	2,890,648
Held for sale	17,008	33,543	10,231
Net loans	3,255,135	3,308,716	2,900,879
BANK PREMISES AND EQUIPMENT, net	118,208	115,712	104,358
INTANGIBLE ASSETS	144,169	144,449	97,192
OTHER ASSETS	76,413	85,635	58,165
Total assets	6,525,185	6,665,070	6,025,372
LIABILITIES AND SHAREHOLDERS' EQUITY
NONINTEREST-BEARING DEPOSITS	1,654,271	1,745,952	1,600,807
INTEREST-BEARING DEPOSITS	3,409,536	3,444,217	3,236,200
Total deposits	5,063,807	5,190,169	4,837,007
DIVIDENDS PAYABLE	10,567	10,558	8,980
SHORT-TERM BORROWINGS	525,340	615,675	401,898
OTHER LIABILITIES	86,863	43,682	71,239
Total liabilities	$ 5,686,577	$ 5,860,084	$ 5,319,124
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Common stock - ($0.01 par value, authorized 120,000,000 shares; 66,043,442, 64,142,812, and 65,990,234 shares issued at March 31, 2016 and 2015, and December 31, 2015, respectively)	$ 660	$ 660	$ 641
Capital surplus	369,972	368,925	306,362
Retained earnings	403,135	388,006	342,995
Treasury stock (shares at cost: 520,357, 527,533, and 520,651 at March 31, 2016 and 2015, and December 31, 2015, respectively)	(6,409)	(6,296)	(6,005)
Deferred compensation	6,409	6,296	6,005
Accumulated other comprehensive earnings	64,841	47,395	56,250
Total shareholders' equity	838,608	804,986	706,248
Total liabilities and shareholders' equity	$ 6,525,185	$ 6,665,070	$ 6,025,372

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Statement of Financial Position [Abstract]
SECURITIES HELD-TO-MATURITY, fair value	$ 150	$ 283	$ 317
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	66,043,442	65,990,234	64,142,812
Treasury stock, shares	520,357	520,651	527,533

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Consolidated Statements of Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
INTEREST INCOME:
Interest and fees on loans	$ 40,347	$ 35,061
Interest on investment securities:
Taxable	7,262	7,808
Exempt from federal income tax	10,666	9,120
Interest on federal funds sold and interest-bearing deposits in banks	60	80
Total interest income	58,335	52,069
INTEREST EXPENSE:
Interest on deposits	1,053	928
Other	259	42
Total interest expense	1,312	970
Net interest income	57,023	51,099
PROVISION FOR LOAN LOSSES	2,328	1,290
Net interest income after provision for loan losses	54,695	49,809
NONINTEREST INCOME:
Trust fees	4,655	4,731
Service charges on deposit accounts	4,413	3,768
ATM, interchange and credit card fees	5,680	4,969
Real estate mortgage operations	3,139	1,482
Net gain on sale of available-for-sale securities (includes $2 and $5 for the three months ended March 31, 2016 and 2015, respectively, related to accumulated other comprehensive earnings reclassifications)	2	5
Net gain on sale of foreclosed assets	76	30
Net gain on sale of assets	513	5
Interest on loan recoveries	633	108
Other	710	799
Total noninterest income	19,821	15,897
NONINTEREST EXPENSE:
Salaries and employee benefits	22,590	18,265
Net occupancy expense	2,631	2,197
Equipment expense	3,380	2,899
FDIC insurance premiums	824	748
ATM, interchange and credit card expenses	1,687	1,725
Professional and service fees	1,564	1,065
Printing, stationery and supplies	503	596
Amortization of intangible assets	199	90
Other	7,703	6,358
Total noninterest expense	41,081	33,943
EARNINGS BEFORE INCOME TAXES	33,435	31,763
INCOME TAX EXPENSE (includes $1 and $2 for the three months ended March 31, 2016 and 2015, respectively, related to income tax expense reclassification)	7,739	7,766
NET EARNINGS	$ 25,696	$ 23,997
EARNINGS PER SHARE, BASIC	$ 0.39	$ 0.37
EARNINGS PER SHARE, ASSUMING DILUTION	0.39	0.37
DIVIDENDS PER SHARE	$ 0.16	$ 0.14

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Consolidated Statements of Earnings (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Reclassifications adjustment for realized gains on investment securities included in net earnings (loss), before income tax	$ 2	$ 5
Income tax expense from reclassification items	$ 1	$ 2

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Consolidated Statements of Comprehensive Earnings (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
NET EARNINGS	$ 25,696	$ 23,997
OTHER ITEMS OF COMPREHENSIVE EARNINGS:
Change in unrealized gain on investment securities available-for-sale, before income taxes	26,842	13,483
Reclassification adjustment for realized gains on investment securities included in net earnings, before income taxes	(2)	(5)
Total other items of comprehensive earnings	26,840	13,478
Income tax expense related to other items of comprehensive earnings	(9,394)	(4,717)
COMPREHENSIVE EARNINGS	$ 43,142	$ 32,758

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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, 2014	$ 681,537	$ 641	$ 305,429	$ 327,978	$ (5,878)	$ 5,878	$ 47,489
Beginning Balance, Shares at Dec. 31, 2014		64,089,921
Treasury Stock, Beginning Balance, Shares at Dec. 31, 2014					(529,563)
Net earnings (unaudited)	23,997			23,997
Stock option exercises (unaudited)	728		728
Stock option exercises, Shares (Unaudited)		52,891
Cash dividends declared (Unaudited)	(8,980)			(8,980)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)	8,761						8,761
Additional tax benefit related to directors' deferred compensation plan (unaudited)	25		25
Shares purchased in connection with directors' deferred compensation plan, net (unaudited)					$ 127	(127)
Shares purchased in connection with directors' deferred compensation plan, net, Shares (Unaudited)					2,030
Stock option expense (unaudited)	180		180
Ending Balance at Mar. 31, 2015	$ 706,248	$ 641	306,362	342,995	$ (6,005)	6,005	56,250
Ending Balance, Shares at Mar. 31, 2015		64,142,812
Treasury Stock, Ending Balance, Shares at Mar. 31, 2015	(527,533)				(527,533)
Beginning Balance at Dec. 31, 2015	$ 804,986	$ 660	368,925	388,006	$ (6,296)	6,296	47,395
Beginning Balance, Shares at Dec. 31, 2015		65,990,234
Treasury Stock, Beginning Balance, Shares at Dec. 31, 2015	(520,651)				(520,651)
Net earnings (unaudited)	$ 25,696			25,696
Stock option exercises (unaudited)	802		802
Stock option exercises, Shares (Unaudited)		54,683
Restricted stock grant (unaudited)	0	$ 0	0	0	$ 0	0	0
Restricted stock grant, Shares (Unaudited)		(1,475)
Cash dividends declared (Unaudited)	(10,567)			(10,567)
Change in unrealized gain in investment securities available-for-sale, net of related income taxes (unaudited)	17,446						17,446
Additional tax benefit related to directors' deferred compensation plan (unaudited)	$ 25		25
Shares purchased in connection with directors' deferred compensation plan, net (unaudited)					$ (113)	113
Shares purchased in connection with directors' deferred compensation plan, net, Shares (Unaudited)	0				294
Stock option expense (unaudited)	$ 220		220
Ending Balance at Mar. 31, 2016	$ 838,608	$ 660	$ 369,972	$ 403,135	$ (6,409)	$ 6,409	$ 64,841
Ending Balance, Shares at Mar. 31, 2016		66,043,442
Treasury Stock, Ending Balance, Shares at Mar. 31, 2016	(520,357)				(520,357)

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash dividend per share (Unaudited)	$ 0.16	$ 0.14
Retained Earnings [Member]
Cash dividend per share (Unaudited)	$ 0.16	$ 0.14

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Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
NET EARNINGS	$ 25,696	$ 23,997
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	2,805	2,473
PROVISION FOR LOAN LOSSES	2,328	1,290
Securities premium amortization (discount accretion), net	6,948	6,028
Gain on sale of assets, net	(591)	(40)
Change in loans held for sale	16,535	(1,428)
Change in other assets	10,704	1,083
Change in other liabilities	7,580	7,002
Total adjustments	46,309	16,408
Net cash provided by operating activities	72,005	40,405
CASH FLOWS FROM INVESTING ACTIVITIES:
Net decrease in interest-bearing time deposits in banks	1,068	7,832
Activity in available-for-sale securities:
Sales	553	1,129
Maturities	86,258	46,774
Purchases	(69,605)	(294,523)
Activity in held-to-maturity securities - maturities	132	131
Net increase in loans	33,772	329
Purchases of bank premises and equipment and other assets	(5,447)	(3,087)
Proceeds from sale of other assets	480	212
Net cash provided by (used in) investing activities	47,211	(241,203)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase (decrease) in noninterest-bearing deposits	(91,682)	30,476
Net increase (decrease) in interest-bearing deposits	(34,681)	56,275
Net increase (decrease) in short-term borrowings	(90,335)	34,788
Common stock transactions:
Proceeds from stock issuances	802	728
Dividends paid	(10,558)	(8,972)
Net cash provided by (used in) financing activities	(226,454)	113,295
NET DECREASE IN CASH AND CASH EQUIVALENTS	(107,238)	(87,503)
CASH AND CASH EQUIVALENTS, beginning of period	272,886	253,471
CASH AND CASH EQUIVALENTS, end of period	165,648	165,968
SUPPLEMENTAL INFORMATION AND NONCASH TRANSACTIONS:
Interest paid	1,298	971
Federal income tax paid	0	0
Transfer of loans to foreclosed assets	946	97
Investment securities purchased but not settled	$ 26,452	$ 20,639

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Basis of Presentation

3 Months Ended

Mar. 31, 2016

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 March 31, 2016, we had 69 financial centers across Texas, with eleven locations in Abilene, three locations in San Angelo and Weatherford, two locations in Cleburne, Conroe, Stephenville and Granbury, and one location each in Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Clyde, Cut and Shoot, Decatur, Eastland, Fort Worth, Glen Rose, Grapevine, Hereford, Huntsville, Keller, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Port Arthur, Ranger, Rising Star, Roby, Southlake, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Willis and Willow Park, all in Texas. Our trust subsidiary has nine locations which are located in Abilene, Fort Worth, Lubbock, Odessa, Beaumont, Hereford, San Angelo, Stephenville and Sweetwater.

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, 2015. All adjustments were of a normal recurring nature. However, the results of operations for the three months ended March 31, 2016, are not necessarily indicative of the results to be expected for the year ending December 31, 2016, 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.

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 Repurchase

3 Months Ended

Mar. 31, 2016

Text Block [Abstract]

Stock Repurchase

Note 2 – Stock Repurchase

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 March 31, 2016, no shares were repurchased under this authorization.

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Earnings Per Share

3 Months Ended

Mar. 31, 2016

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 months ended March 31, 2016 and 2015, 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 restricted stock and the outstanding options is reflected by application of the treasury stock method, whereby the proceeds from the restricted stock and 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 March 31, 2016 and 2015 were 65,974,559 and 64,122,965 shares, respectively. The weighted average common shares outstanding used in computing fully diluted earnings per common share for the three months ended March 31, 2016 and 2015 were 66,118,998 and 64,298,896 shares, respectively.

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Interest-bearing Time Deposits in Banks and Securities

3 Months Ended

Mar. 31, 2016

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 $2,427,000, $9,170,000 and $3,495,000 at March 31, 2016 and 2015 and December 31, 2015, respectively, and have original maturities generally ranging from one to three years. Of these amounts, $489,000 are time deposits with balances greater than $250,000, the FDIC insured limit at both March 31, 2015 and December 31, 2015. There were no balances over this limit at March 31, 2016.

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 states 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):

	March 31, 2016
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,756	$	73	$	—		$	10,829
Obligations of U.S. government sponsored enterprises and agencies		131,484		1,061		—			132,545
Obligations of states and political subdivisions		1,388,369		82,693		(28	)		1,471,034
Corporate bonds and other		68,836		1,896		—			70,732
Residential mortgage-backed securities		793,509		17,180		(963	)		809,726
Commercial mortgage-backed securities		264,231		4,013		(71	)		268,173
Total securities available-for-sale	$	2,657,185	$	106,916	$	(1,062	)	$	2,763,039
	March 31, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,899	$	84	$	—		$	10,983
Obligations of U.S. government sponsored enterprises and agencies		173,777		1,340		—			175,117
Obligations of states and political subdivisions		1,238,354		65,922		(784	)		1,303,492
Corporate bonds and other		95,044		3,089		—			98,133
Residential mortgage-backed securities		900,831		20,752		(1,217	)		920,366
Commercial mortgage-backed securities		179,773		1,575		(109	)		181,239
Total securities available-for-sale	$	2,598,678	$	92,762	$	(2,110	)	$	2,689,330
	December 31, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,792	$	5	$	(2	)	$	10,795
Obligations of U.S. government sponsored enterprises and agencies		148,393		268		(107	)		148,554
Obligations of states and political subdivisions		1,379,879		71,382		(134	)		1,451,127
Corporate bonds and other		86,182		1,778		(5	)		87,955
Residential mortgage-backed securities		781,648		10,993		(3,759	)		788,882
Commercial mortgage-backed securities		247,991		429		(1,834	)		246,586
Total securities available-for-sale	$	2,654,885	$	84,855	$	(5,841	)	$	2,733,899

Disclosures related to the Company’s held-to-maturity securities, which totaled $146,000, $310,000 and $278,000 at March 31, 2016 and 2015, and December 31, 2015, 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 March 31, 2016 were computed by using scheduled amortization of balances and historical prepayment rates. At March 31, 2016 and 2015, and December 31, 2015, 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 March 31, 2016, by contractual and expected maturity, are shown below (in thousands):

	Amortized Cost Basis		Estimated Fair Value
Due within one year	$	168,837	$	170,475
Due after one year through five years		700,497		737,357
Due after five years through ten years		727,661		774,335
Due after ten years		2,450		2,973
Mortgage-backed securities		1,057,740		1,077,899
Total	$	2,657,185	$	2,763,039

The following tables disclose, as of March 31, 2016 and 2015, and December 31, 2015, 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
March 31, 2016	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	6,804	$	23	$	1,071	$	5	$	7,875	$	28
Residential mortgage-backed securities		25,152		357		48,124		606		73,276		963
Commercial mortgage-backed securities		15,553		13		14,520		58		30,073		71
Total	$	47,509	$	393	$	63,715	$	669	$	111,224	$	1,062

	Less than 12 Months				12 Months or Longer				Total
March 31, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	84,444	$	748	$	2,570	$	36	$	87,014	$	784
Residential mortgage-backed securities		12,917		13		67,164		1,204		80,081		1,217
Commercial mortgage-backed securities		19,842		57		9,564		52		29,406		109
Total	$	117,203	$	818	$	79,298	$	1,292	$	196,501	$	2,110

	Less than 12 Months				12 Months or Longer				Total
December 31, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasury securities	$	5,110	$	2	$	—	$	—	$	5,110	$	2
Obligations of U.S. government sponsored enterprises and agencies		50,388		107		—		—		50,388		107
Obligations of states and political subdivisions		32,929		127		1,513		7		34,442		134
Corporate bonds and other		7,004		5		—		—		7,004		5
Residential mortgage-backed securities		231,481		1,765		63,919		1,994		295,400		3,759
Commercial mortgage-backed securities		196,163		1,752		9,345		82		205,508		1,834
Total	$	523,075	$	3,758	$	74,777	$	2,083	$	597,852	$	5,841

The number of investments in an unrealized loss position totaled 30 at March 31, 2016. 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 March 31, 2016 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 March 31, 2016, $1,600,768,000 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 March 31, 2016 and 2015, sales of investment securities that were classified as available-for-sale totaled $553,000 and $1,129,000, respectively. Gross realized gains from security sales during the first quarter of 2016 and 2015 totaled $7,000 and $5,000, respectively. Gross realized losses from security sales during the first quarter of 2016 totaled $5,000. There were no gross realized losses from security sales during the first quarter of 2015. 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

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and 2015, and December 31, 2015, 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 March 31, 2016 and 2015, and December 31, 2015, 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 March 31, 2016 and 2015, and December 31, 2015, was $1,970,000, $2,037,000 and $2,178,000, respectively, compared to a contractual balance of $2,701,000, $2,817,000, and $2,936,000, 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):

	March 31,				December 31,
	2016		2015		2015
Commercial	$	669,525	$	651,723	$	696,163
Agricultural		87,490		90,610		102,351
Real estate		2,150,132		1,826,579		2,136,233
Consumer		375,052		359,564		382,303
Total loans held-for-investment	$	3,282,199	$	2,928,476	$	3,317,050

Loans held for sale totaled $17,008,000, $10,231,000 and $33,543,000 at March 31, 2016 and 2015, and December 31, 2015, respectively, which are valued using the lower of cost or market method.

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

	March 31,				December 31,
	2016		2015		2015
Non-accrual loans*	$	27,175	$	18,935	$	28,601
Loans still accruing and past due 90 days or more		59		184		341
Troubled debt restructured loans**		973		177		199
Total	$	28,207	$	19,296	$	29,141

* Includes $1,970,000, $2,037,000 and $2,178,000 of purchased credit impaired loans as of March 31, 2016 and 2015, and December 31, 2015, respectively.

** Troubled debt restructured loans of $8,527,000, $8,431,000 and $6,113,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, respectively.

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

March 31, 2016				March 31, 2015				December 31, 2015
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	27,175	$	5,262	$	18,935	$	3,860	$	28,601	$	5,071

The average recorded investment in impaired loans for the three months ended March 31, 2016 and 2015, and the year ended December 31, 2015, was approximately $26,412,000, $20,263,000 and $21,735,000, respectively. The Company had $29,028,000, $20,377,000 and $29,768,000 in non-accrual, past due 90 days or more and still accruing, restructured loans and foreclosed assets at March 31, 2016 and 2015, and December 31, 2015, respectively. Non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, consisted of the following by class of financing receivables (in thousands):

	March 31,				December 31,
	2016		2015		2015
Commercial	$	7,392	$	3,098	$	8,761
Agricultural		19		197		97
Real estate		18,473		14,983		18,766
Consumer		1,291		657		977
Total	$	27,175	$	18,935	$	28,601

No significant additional funds are committed to be advanced in connection with impaired loans as of March 31, 2016.

The Company’s impaired loans and related allowance as of March 31, 2016 and 2015, and December 31, 2015, 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.

March 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	8,309	$	1,227	$	6,165	$	7,392	$	2,165	$	6,812
Agricultural		19		—		19		19		7		11
Real Estate		23,740		5,746		12,727		18,473		2,658		18,504
Consumer		1,478		210		1,081		1,291		432		1,085
Total	$	33,546	$	7,183	$	19,992	$	27,175	$	5,262	$	26,412

* Includes $1,970,000 of purchased credit impaired loans.

March 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,696	$	373	$	2,725	$	3,098	$	1,079	$	3,200
Agricultural		213		—		197		197		55		207
Real Estate		20,865		4,519		10,464		14,983		2,617		16,179
Consumer		870		406		251		657		109		677
Total	$	25,644	$	5,298	$	13,637	$	18,935	$	3,860	$	20,263

* Includes $2,037,000 of purchased credit impaired loans.

December 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year Average Recorded Investment
Commercial	$	10,056	$	608	$	8,153	$	8,761	$	2,030	$	5,812
Agricultural		97		—		97		97		70		48
Real Estate		23,710		5,314		13,452		18,766		2,827		15,211
Consumer		1,167		624		353		977		144		664
Total	$	35,030	$	6,546	$	22,055	$	28,601	$	5,071	$	21,735

* Includes $2,178,000 of purchased credit impaired loans.

The Company recognized interest income on impaired loans prior to being recognized as impaired of approximately $922,000 during the year ended December 31, 2015. Such amounts for the three-month periods ended March 31, 2016 and 2015 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 weaknesses 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 March 31, 2016 and 2015, and December 31, 2015 (in thousands):

March 31, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,466	$	7,378	$	50,681	$	—	$	669,525
Agricultural		84,555		350		2,585		—		87,490
Real Estate		2,072,210		23,359		54,563		—		2,150,132
Consumer		371,826		399		2,827		—		375,052
Total	$	3,140,057	$	31,486	$	110,656	$	—	$	3,282,199

March 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	631,100	$	9,384	$	11,239	$	—	$	651,723
Agricultural		90,030		164		416		—		90,610
Real Estate		1,771,889		20,809		33,782		99		1,826,579
Consumer		357,709		517		1,338		—		359,564
Total	$	2,850,728	$	30,874	$	46,775	$	99	$	2,928,476

December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	633,083	$	9,762	$	53,318	$	—	$	696,163
Agricultural		99,862		1,398		1,091		—		102,351
Real Estate		2,054,738		29,000		52,458		37		2,136,233
Consumer		379,941		416		1,946		—		382,303
Total	$	3,167,624	$	40,576	$	108,813	$	37	$	3,317,050

At March 31, 2016 and 2015, and December 31, 2015, the Company’s past due loans are as follows (in thousands):

March 31, 2016	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	$	3,338	$	1,228	$	1,498	$	6,064	$	663,461	$	669,525	$	42
Agricultural		320		—		—		320		87,170		87,490		—
Real Estate		10,979		1,560		3,684		16,223		2,133,909		2,150,132		—
Consumer		1,677		336		162		2,175		372,877		375,052		17
Total	$	16,314	$	3,124	$	5,344	$	24,782	$	3,257,417	$	3,282,199	$	59

March 31, 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	$	4,514	$	283	$	208	$	5,005	$	646,718	$	651,723	$	—
Agricultural		485		35		—		520		90,090		90,610		—
Real Estate		13,077		1,116		1,368		15,561		1,811,018		1,826,579		144
Consumer		1,679		390		218		2,287		357,277		359,564		40
Total	$	19,755	$	1,824	$	1,794	$	23,373	$	2,905,103	$	2,928,476	$	184

December 31, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due Still Accruing
Commercial	$	3,099	$	3,652	$	1,024	$	7,775	$	688,388	$	696,163	$	54
Agricultural		348		83		—		431		101,920		102,351		—
Real Estate		12,247		2,226		2,874		17,347		2,118,886		2,136,233		217
Consumer		1,645		183		266		2,094		380,209		382,303		70
Total	$	17,339	$	6,144	$	4,164	$	27,647	$	3,289,403	$	3,317,050	$	341

* 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 March 31, 2016 and 2015, and December 31, 2015, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2016 and 2015, and December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,165	$	7	$	2,658	$	432	$	5,262
Loans collectively evaluated for impairment		10,740		1,248		23,441		3,381		38,810
Total	$	12,905	$	1,255	$	26,099	$	3,813	$	44,072

March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,079	$	55	$	2,617	$	109	$	3,860
Loans collectively evaluated for impairment		9,296		418		22,622		1,632		33,968
Total	$	10,375	$	473	$	25,239	$	1,741	$	37,828

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,030	$	70	$	2,827	$	144	$	5,071
Loans collectively evaluated for impairment		10,614		1,121		21,548		3,523		36,806
Total	$	12,644	$	1,191	$	24,375	$	3,667	$	41,877

Changes in the allowance for loan losses for the three months ended March 31, 2016 and 2015, are summarized as follows by portfolio segment (in thousands):

Three months ended March 31, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		847			196			832			453			2,328
Recoveries		286			11			1,227			125			1,649
Charge-offs		(872	)		(143	)		(335	)		(432	)		(1,782	)
Ending balance	$	12,905		$	1,255		$	26,099		$	3,813		$	44,072

Three months ended March 31, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		2,465			(32	)		(1,467	)		324			1,290
Recoveries		80			2			71			71			224
Charge-offs		(160	)		(24	)		(22	)		(304	)		(510	)
Ending balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828

The Company’s recorded investment in loans as of March 31, 2016 and 2015, and December 31, 2015 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 $1,970,000, $2,037,000 and $2,178,000 at March 31, 2016 and 2015, and December 31, 2015, respectively, are included in loans individually evaluated for impairment.

March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,392	$	19	$	18,473	$	1,291	$	27,175
Loans collectively evaluated for impairment		662,133		87,471		2,131,659		373,761		3,255,024
Total	$	669,525	$	87,490	$	2,150,132	$	375,052	$	3,282,199

March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,098	$	197	$	14,983	$	657	$	18,935
Loans collectively evaluated for impairment		648,625		90,413		1,811,596		358,907		2,909,541
Total	$	651,723	$	90,610	$	1,826,579	$	359,564	$	2,928,476

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	8,761	$	97	$	18,766	$	977	$	28,601
Loans collectively evaluated for impairment		687,402		102,254		2,117,467		381,326		3,288,449
Total	$	696,163	$	102,351	$	2,136,233	$	382,303	$	3,317,050

The Company’s loans that were modified in the three months ended March 31, 2016 and 2015 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		7	$	2,640	$	2,640		3	$	128	$	128
Agricultural		—		—		—		—		—		—
Real Estate		2		463		463		—		—		—
Consumer		2		20		20		1		24		24
Total		11	$	3,123	$	3,123		4	$	152	$	152

The balances below provide information as to how the loans were modified as troubled debt restructured loans during the three months ended March 31, 2016 and 2015 (in thousands):

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	2,237	$	403	$	—	$	128	$	—
Agricultural		—		—		—		—		—		—
Real Estate		—		113		350		—		—		—
Consumer		—		4		16		—		—		24
Total	$	—	$	2,354	$	769	$	—	$	128	$	24

During the three months ended March 31, 2015, 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 March 31, 2016. 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):

	Three Months Ended March 31, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

As of March 31, 2016, 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 March 31, 2016, $2,032,327,000 in loans held by our bank subsidiary were subject to blanket liens as security for this line of credit. At March 31, 2016, $175,000,000 were outstanding under this line of credit.

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Borrowings

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Borrowings

Note 6 – Borrowings

Borrowings at March 31, 2016 and 2015, and December 31, 2015 consisted of the following (dollars in thousands):

	March 31,				December 31,
	2016		2015		2015
Securities sold under agreements with customers to repurchase	$	342,540	$	366,140	$	310,330
Federal funds purchased		7,800		19,775		6,325
Advances from Federal Home Loan Bank of Dallas		175,000		15,983		299,020
Total	$	525,340	$	401,898	$	615,675

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 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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Income Taxes

3 Months Ended

Mar. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Note 7 - Income Taxes

Income tax expense was $7,739,000 for the first quarter of 2016 as compared to $7,766,000 for the same period in 2015. The Company’s effective tax rates on pretax income were 23.15% and 24.45% for the first quarters of 2016 and 2015, 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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Stock Option Plan and Restricted Stock Plan

3 Months Ended

Mar. 31, 2016

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

Stock Option Plan and Restricted Stock Plan

Note 8 - Stock Option Plan and Restricted Stock Plan

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 March 31, 2016, no options have been granted in 2016. On October 27, 2015, the Company granted 455,000 shares in incentive stock options at an exercise price of $33.89 to its employees. The Company recorded stock option expense totaling $220,000 and $180,000 for the three-month periods ended March 31, 2016 and 2015, respectively.

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 is being expensed over the period from grant date to April 26, 2016, the next scheduled annual shareholders’ meeting at which the director’s current term will expire. On October 27, 2015, the Company also granted 32,748 shares with a total value of $1,110,000 to certain officers that is being expensed over the vesting period of three years. The additional disclosure requirements under authoritative accounting guidance have been omitted due to immateriality.

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Pension Plan

3 Months Ended

Mar. 31, 2016

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 $500,000 in 2015 and has to date made no contributions in 2016.

Net periodic benefit costs totaling $82,000 and $75,000 were recorded for the three months ended March 31, 2016 and 2015, respectively.

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Fair Value Disclosures

3 Months Ended

Mar. 31, 2016

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 months ended March 31, 2016 and 2015, and the year ended December 31, 2015.

The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis as of March 31, 2016 and 2015, and December 31, 2015, respectively, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

March 31, 2016
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,829	$	—	$	—	$	10,829
Obligations of U. S. government sponsored-enterprises and agencies		—		132,545		—		132,545
Obligations of states and political subdivisions		—		1,471,034		—		1,471,034
Corporate bonds		—		66,136		—		66,136
Residential mortgage-backed securities		—		809,726		—		809,726
Commercial mortgage-backed securities		—		268,173		—		268,173
Other securities		4,596		—		—		4,596
Total	$	15,425	$	2,747,614	$	—	$	2,763,039

March 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,983	$	—	$	—	$	10,983
Obligations of U. S. government sponsored-enterprises and agencies		—		175,117		—		175,117
Obligations of states and political subdivisions		—		1,303,492		—		1,303,492
Corporate bonds		—		93,158		—		93,158
Residential mortgage-backed securities		—		920,366		—		920,366
Commercial mortgage-backed securities		—		181,239		—		181,239
Other securities		4,975		—		—		4,975
Total	$	15,958	$	2,673,372	$	—	$	2,689,330

December 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,795	$	—	$	—	$	10,795
Obligations of U. S. government sponsored-enterprises and agencies		—		148,554		—		148,554
Obligations of states and political subdivisions		—		1,451,127		—		1,451,127
Corporate bonds		—		83,254		—		83,254
Residential mortgage-backed securities		—		788,882		—		788,882
Commercial mortgage-backed securities		—		246,586		—		246,586
Other securities		4,701		—		—		4,701
Total	$	15,496	$	2,718,403	$	—	$	2,733,899

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 March 31, 2016:

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 March 31, 2016, impaired loans with a carrying value of $27,175,000 were reduced by specific valuation reserves totaling $5,262,000 resulting in a net fair value of $21,913,000.

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 March 31, 2016, the Company’s mortgage loans held-for-sale were recorded at cost as fair value exceeded 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 months ended March 31, 2016 and 2015 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. Re-evaluation 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 March 31,
	2016		2015
Carrying value of other real estate owned prior to re-measurement	$	—	$	10
Write-downs included in gain (loss) on sale of other real estate owned		—		(10	)
Fair value	$	—	$	—

At March 31, 2016 and 2015, and December 31, 2015, other real estate owned totaled $743,000, $863,000, and $153,000, 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 March 31, 2016 and 2015, and December 31, 2015, were as follows (in thousands):

	March 31,				March 31,				December 31,
	2016				2015				2015
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Fair Value Hierarchy
Cash and due from banks	$	139,995	$	139,995	$	142,233	$	142,233	$	179,140	$	179,140	Level 1
Federal funds sold		2,660		2,660		5,460		5,460		3,810		3,810	Level 1
Interest-bearing deposits in banks		22,993		22,993		18,275		18,275		89,936		89,936	Level 1
Interest-bearing time deposits in banks		2,427		2,430		9,170		9,185		3,495		3,500	Level 2
Available-for-sale Securities		2,763,039		2,763,039		2,689,330		2,689,330		2,733,899		2,733,899	Levels 1 and 2
Held-to-maturity securities		146		150		310		317		278		283	Level 2
Loans		3,255,135		3,260,544		2,900,879		2,907,114		3,308,716		3,316,243	Level 3
Accrued interest receivable		26,166		26,166		25,238		25,238		34,697		34,697	Level 2
Deposits with stated maturities		589,898		591,675		623,108		624,926		620,852		622,572	Level 2
Deposits with no stated maturities		4,473,909		4,473,909		4,213,899		4,213,899		4,569,317		4,569,317	Level 1
Short-term borrowings		525,340		525,340		401,898		401,898		615,675		615,675	Level 2
Accrued interest payable		254		254		235		235		240		240	Level 2

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Recently Issued Authoritative Accounting Guidance

3 Months Ended

Mar. 31, 2016

Accounting Changes and Error Corrections [Abstract]

Recently Issued Authoritative Accounting Guidance

Note 11 - Recently Issued Authoritative Accounting Guidance

Accounting Standards Update (“ASU”) 2014-14, “Receivables – Troubled Debt Restructuring by Creditors.” ASU 2014-14 clarified 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.

ASU 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 implements 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 2018. The Company is continuing to evaluate the potential impact to the Company’s financial statements.

ASU 2014-11, “Transfers and Servicing.” ASU 2014-11 amended 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.

ASU 2015-01, “Income Statement – Extraordinary and Unusual Items.” ASU 2015-01 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 became effective for the Company beginning January 1, 2016, and did not have a significant impact on the Company’s financial statements.

ASU 2015-16, “Business Combinations – Simplifying the Accounting Measurement Period Adjustments.” ASU 2015-16 amended business combination guidance to require that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer must record, in the same period’s financial statements, the effect of earnings on changes in depreciation, amortization, or other income effects, if any, as a result of the changes to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. Additionally, the entity is required to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amended guidance became effective for the Company on January 1, 2016, and did not have a significant impact on the Company’s financial statements.

ASU 2016-1, “No. 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.” ASU 2016-1, among other things, (i) requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (iv) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (v) requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (vi) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (vii) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. ASU 2016-1 will be effective for us on January 1, 2018 and is not expected to have a significant impact on the Company’s financial statements.

ASU 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software – Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” ASU 2015-05 addresses accounting for fees paid by a customer in cloud computing arrangements such as (i) software as a service, (ii) platform as a service, (iii) infrastructure as a service and (iv) other similar hosting arrangements. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 became effective on January 1, 2016 and did not have a significant impact on the Company’s financial statements.

ASU 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 will amend current guidance such that all excess tax benefits and tax deficiencies related to share-based payment awards will be recognized as income tax expense or benefit in the income statement during the period in which they occur. Additionally, excess tax benefits will be classified along with other income tax cash flows as an operating activity rather than a financing activity. ASU 2016-09 also provides that any entity can make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest, which is the current requirement, or account for forfeitures when they occur. ASU 2016-09 will be effective January 1, 2017 and is not expected to have a significant impact on our financial statements.

ASU 2016-02, “Leases.” ASU 2016-02 will amend current lease accounting to require lessees to recognize (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis, and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. ASU 2016-02 does not significantly change lease accounting requirements applicable to lessors; however, certain changes were made to align, where necessary, lessor accounting with the lessee accounting model. The amended guidance will be effective in the first quarter of 2019 and will require transition using a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is evaluating the potential impact of ASU 2016-02 on the Company’s financial statements.

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Acquisition and Asset Purchase

3 Months Ended

Mar. 31, 2016

Business Combinations [Abstract]

Acquisition and Asset Purchase

Note 12 – Acquisition and Asset Purchase

On April 1, 2015, we entered into an agreement and plan of reorganization to acquire FBC Bancshares, Inc. and its wholly owned bank subsidiary, First Bank, N.A., Conroe, Texas. On July 31, 2015, the transaction was completed. Pursuant to the agreement, we issued 1,755,374 shares of the Company’s common stock in exchange for all of the outstanding shares of FBC Bancshares, Inc. At closing, FBC Bancshares, Inc. was merged into the Company and First Bank, N.A., Conroe, Texas, was merged into First Financial Bank, National Association, Abilene, Texas, a wholly owned subsidiary of the Company. The primary purpose of the acquisition was to expand the Company’s market share along Interstate Highway 45 in southern Texas, north of Houston. Factors that contributed to a purchase price resulting in goodwill include First Bank, N.A.’s historic record of earnings, strong local economic environment and opportunity for growth. The results of operations from this acquisition are included in the consolidated earnings of the Company commencing August 1, 2015.

The assets acquired and liabilities assumed were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. The acquisition was not considered to be a significant business combination. The following table presents the amounts recorded on the consolidated balance sheet on the acquisition date (dollars in thousands):

Fair value of consideration paid:
Common stock issued (1,755,374 shares)	$	59,648
Fair value of identifiable assets acquired:
Cash and cash equivalents		65,197
Securities available-for-sale		42,903
Loans		248,380
Identifiable intangible assets		2,343
Other assets		15,262
Total identifiable assets acquired		374,085
Fair value of liabilities assumed:
Deposits		343,583
Subordinated debt		13,125
Other liabilities		1,651
Total liabilities assumed		358,359
Fair value of net identifiable assets acquired		15,726
Goodwill resulting from acquisition	$	43,922

Goodwill recorded in the acquisition was accounted for in accordance with the authoritative business combination guidance. Accordingly, goodwill will not be amortized, but will be tested for impairment annually. The goodwill recorded is not deductible for federal income tax purposes.

The subordinated debt of $13,125,000 was paid off August 3, 2015, subsequent to closing.

The fair value of total loans acquired was $248,380,000 at acquisition compared to contractual amounts of $252,458,000. The fair value of purchased credit impaired loans at acquisition was $1,398,000 compared to contractual amounts of $1,704,000. Additional purchased credit impaired loan disclosures were omitted due to immateriality. All other acquired loans were considered performing loans.

First Bank, N.A. had branches in Conroe, Magnolia, Tomball, The Woodlands, Cut and Shoot and Huntsville, all located north of Houston, Texas. On February 26, 2016, the Company closed First Bank’s Huntsville location and merged the branch with the Company’s existing Huntsville location.

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 asset purchase was finalized on May 31, 2015, which we refer to herein as the “4Trust asset purchase.” The total asset purchase price exceeded the estimated fair value of assets purchased by approximately $1,750,000 and the Company recorded such excess as goodwill.

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

3 Months Ended

Mar. 31, 2016

Cash and Cash Equivalents [Abstract]

Summary of Available-for-Sale Securities

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

	March 31, 2016
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,756	$	73	$	—		$	10,829
Obligations of U.S. government sponsored enterprises and agencies		131,484		1,061		—			132,545
Obligations of states and political subdivisions		1,388,369		82,693		(28	)		1,471,034
Corporate bonds and other		68,836		1,896		—			70,732
Residential mortgage-backed securities		793,509		17,180		(963	)		809,726
Commercial mortgage-backed securities		264,231		4,013		(71	)		268,173
Total securities available-for-sale	$	2,657,185	$	106,916	$	(1,062	)	$	2,763,039
	March 31, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,899	$	84	$	—		$	10,983
Obligations of U.S. government sponsored enterprises and agencies		173,777		1,340		—			175,117
Obligations of states and political subdivisions		1,238,354		65,922		(784	)		1,303,492
Corporate bonds and other		95,044		3,089		—			98,133
Residential mortgage-backed securities		900,831		20,752		(1,217	)		920,366
Commercial mortgage-backed securities		179,773		1,575		(109	)		181,239
Total securities available-for-sale	$	2,598,678	$	92,762	$	(2,110	)	$	2,689,330
	December 31, 2015
	Amortized Cost Basis		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Estimated Fair Value
U.S. Treasury securities	$	10,792	$	5	$	(2	)	$	10,795
Obligations of U.S. government sponsored enterprises and agencies		148,393		268		(107	)		148,554
Obligations of states and political subdivisions		1,379,879		71,382		(134	)		1,451,127
Corporate bonds and other		86,182		1,778		(5	)		87,955
Residential mortgage-backed securities		781,648		10,993		(3,759	)		788,882
Commercial mortgage-backed securities		247,991		429		(1,834	)		246,586
Total securities available-for-sale	$	2,654,885	$	84,855	$	(5,841	)	$	2,733,899

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

The amortized cost and estimated fair value of available-for-sale securities at March 31, 2016, by contractual and expected maturity, are shown below (in thousands):

	Amortized Cost Basis		Estimated Fair Value
Due within one year	$	168,837	$	170,475
Due after one year through five years		700,497		737,357
Due after five years through ten years		727,661		774,335
Due after ten years		2,450		2,973
Mortgage-backed securities		1,057,740		1,077,899
Total	$	2,657,185	$	2,763,039

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

The following tables disclose, as of March 31, 2016 and 2015, and December 31, 2015, 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
March 31, 2016	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	6,804	$	23	$	1,071	$	5	$	7,875	$	28
Residential mortgage-backed securities		25,152		357		48,124		606		73,276		963
Commercial mortgage-backed securities		15,553		13		14,520		58		30,073		71
Total	$	47,509	$	393	$	63,715	$	669	$	111,224	$	1,062

	Less than 12 Months				12 Months or Longer				Total
March 31, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
Obligations of states and political subdivisions	$	84,444	$	748	$	2,570	$	36	$	87,014	$	784
Residential mortgage-backed securities		12,917		13		67,164		1,204		80,081		1,217
Commercial mortgage-backed securities		19,842		57		9,564		52		29,406		109
Total	$	117,203	$	818	$	79,298	$	1,292	$	196,501	$	2,110

	Less than 12 Months				12 Months or Longer				Total
December 31, 2015	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
U.S. Treasury securities	$	5,110	$	2	$	—	$	—	$	5,110	$	2
Obligations of U.S. government sponsored enterprises and agencies		50,388		107		—		—		50,388		107
Obligations of states and political subdivisions		32,929		127		1,513		7		34,442		134
Corporate bonds and other		7,004		5		—		—		7,004		5
Residential mortgage-backed securities		231,481		1,765		63,919		1,994		295,400		3,759
Commercial mortgage-backed securities		196,163		1,752		9,345		82		205,508		1,834
Total	$	523,075	$	3,758	$	74,777	$	2,083	$	597,852	$	5,841

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Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2016

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):

	March 31,				December 31,
	2016		2015		2015
Commercial	$	669,525	$	651,723	$	696,163
Agricultural		87,490		90,610		102,351
Real estate		2,150,132		1,826,579		2,136,233
Consumer		375,052		359,564		382,303
Total loans held-for-investment	$	3,282,199	$	2,928,476	$	3,317,050

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):

	March 31,				December 31,
	2016		2015		2015
Non-accrual loans*	$	27,175	$	18,935	$	28,601
Loans still accruing and past due 90 days or more		59		184		341
Troubled debt restructured loans**		973		177		199
Total	$	28,207	$	19,296	$	29,141

* Includes $1,970,000, $2,037,000 and $2,178,000 of purchased credit impaired loans as of March 31, 2016 and 2015, and December 31, 2015, respectively.

** Troubled debt restructured loans of $8,527,000, $8,431,000 and $6,113,000, whose interest collection, after considering economic and business conditions and collection efforts, is doubtful are included in non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, 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):

March 31, 2016				March 31, 2015				December 31, 2015
Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance		Recorded Investment		Valuation Allowance
$	27,175	$	5,262	$	18,935	$	3,860	$	28,601	$	5,071

Schedule of Non-Accrual Loans

2016 and 2015, and December 31, 2015, respectively. Non-accrual loans at March 31, 2016 and 2015, and December 31, 2015, consisted of the following by class of financing receivables (in thousands):

	March 31,				December 31,
	2016		2015		2015
Commercial	$	7,392	$	3,098	$	8,761
Agricultural		19		197		97
Real estate		18,473		14,983		18,766
Consumer		1,291		657		977
Total	$	27,175	$	18,935	$	28,601

Schedule of Impaired Loans and Related Allowance

The Company’s impaired loans and related allowance as of March 31, 2016 and 2015, and December 31, 2015, 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.

March 31, 2016	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	8,309	$	1,227	$	6,165	$	7,392	$	2,165	$	6,812
Agricultural		19		—		19		19		7		11
Real Estate		23,740		5,746		12,727		18,473		2,658		18,504
Consumer		1,478		210		1,081		1,291		432		1,085
Total	$	33,546	$	7,183	$	19,992	$	27,175	$	5,262	$	26,412

* Includes $1,970,000 of purchased credit impaired loans.

March 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Commercial	$	3,696	$	373	$	2,725	$	3,098	$	1,079	$	3,200
Agricultural		213		—		197		197		55		207
Real Estate		20,865		4,519		10,464		14,983		2,617		16,179
Consumer		870		406		251		657		109		677
Total	$	25,644	$	5,298	$	13,637	$	18,935	$	3,860	$	20,263

* Includes $2,037,000 of purchased credit impaired loans.

December 31, 2015	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance*		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Year Average Recorded Investment
Commercial	$	10,056	$	608	$	8,153	$	8,761	$	2,030	$	5,812
Agricultural		97		—		97		97		70		48
Real Estate		23,710		5,314		13,452		18,766		2,827		15,211
Consumer		1,167		624		353		977		144		664
Total	$	35,030	$	6,546	$	22,055	$	28,601	$	5,071	$	21,735

* Includes $2,178,000 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 March 31, 2016 and 2015, and December 31, 2015 (in thousands):

March 31, 2016	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	611,466	$	7,378	$	50,681	$	—	$	669,525
Agricultural		84,555		350		2,585		—		87,490
Real Estate		2,072,210		23,359		54,563		—		2,150,132
Consumer		371,826		399		2,827		—		375,052
Total	$	3,140,057	$	31,486	$	110,656	$	—	$	3,282,199

March 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	631,100	$	9,384	$	11,239	$	—	$	651,723
Agricultural		90,030		164		416		—		90,610
Real Estate		1,771,889		20,809		33,782		99		1,826,579
Consumer		357,709		517		1,338		—		359,564
Total	$	2,850,728	$	30,874	$	46,775	$	99	$	2,928,476

December 31, 2015	Pass		Special Mention		Substandard		Doubtful		Total
Commercial	$	633,083	$	9,762	$	53,318	$	—	$	696,163
Agricultural		99,862		1,398		1,091		—		102,351
Real Estate		2,054,738		29,000		52,458		37		2,136,233
Consumer		379,941		416		1,946		—		382,303
Total	$	3,167,624	$	40,576	$	108,813	$	37	$	3,317,050

Schedule of Past Due Loans

At March 31, 2016 and 2015, and December 31, 2015, the Company’s past due loans are as follows (in thousands):

March 31, 2016	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	$	3,338	$	1,228	$	1,498	$	6,064	$	663,461	$	669,525	$	42
Agricultural		320		—		—		320		87,170		87,490		—
Real Estate		10,979		1,560		3,684		16,223		2,133,909		2,150,132		—
Consumer		1,677		336		162		2,175		372,877		375,052		17
Total	$	16,314	$	3,124	$	5,344	$	24,782	$	3,257,417	$	3,282,199	$	59

March 31, 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	$	4,514	$	283	$	208	$	5,005	$	646,718	$	651,723	$	—
Agricultural		485		35		—		520		90,090		90,610		—
Real Estate		13,077		1,116		1,368		15,561		1,811,018		1,826,579		144
Consumer		1,679		390		218		2,287		357,277		359,564		40
Total	$	19,755	$	1,824	$	1,794	$	23,373	$	2,905,103	$	2,928,476	$	184

December 31, 2015	15-59 Days Past Due*		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Total Current		Total Loans		Total 90 Days Past Due Still Accruing
Commercial	$	3,099	$	3,652	$	1,024	$	7,775	$	688,388	$	696,163	$	54
Agricultural		348		83		—		431		101,920		102,351		—
Real Estate		12,247		2,226		2,874		17,347		2,118,886		2,136,233		217
Consumer		1,645		183		266		2,094		380,209		382,303		70
Total	$	17,339	$	6,144	$	4,164	$	27,647	$	3,289,403	$	3,317,050	$	341

* 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 March 31, 2016 and 2015, and December 31, 2015, by portfolio segment (in thousands). There were no allowances for purchased credit impaired loans at March 31, 2016 and 2015, and December 31, 2015. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,165	$	7	$	2,658	$	432	$	5,262
Loans collectively evaluated for impairment		10,740		1,248		23,441		3,381		38,810
Total	$	12,905	$	1,255	$	26,099	$	3,813	$	44,072

March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	1,079	$	55	$	2,617	$	109	$	3,860
Loans collectively evaluated for impairment		9,296		418		22,622		1,632		33,968
Total	$	10,375	$	473	$	25,239	$	1,741	$	37,828

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	2,030	$	70	$	2,827	$	144	$	5,071
Loans collectively evaluated for impairment		10,614		1,121		21,548		3,523		36,806
Total	$	12,644	$	1,191	$	24,375	$	3,667	$	41,877

Changes in Allowance for Loan Losses

Changes in the allowance for loan losses for the three months ended March 31, 2016 and 2015, are summarized as follows by portfolio segment (in thousands):

Three months ended March 31, 2016	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	12,644		$	1,191		$	24,375		$	3,667		$	41,877
Provision for loan losses		847			196			832			453			2,328
Recoveries		286			11			1,227			125			1,649
Charge-offs		(872	)		(143	)		(335	)		(432	)		(1,782	)
Ending balance	$	12,905		$	1,255		$	26,099		$	3,813		$	44,072

Three months ended March 31, 2015	Commercial			Agricultural			Real Estate			Consumer			Total
Beginning balance	$	7,990		$	527		$	26,657		$	1,650		$	36,824
Provision for loan losses		2,465			(32	)		(1,467	)		324			1,290
Recoveries		80			2			71			71			224
Charge-offs		(160	)		(24	)		(22	)		(304	)		(510	)
Ending balance	$	10,375		$	473		$	25,239		$	1,741		$	37,828

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 March 31, 2016 and 2015, and December 31, 2015 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 $1,970,000, $2,037,000 and $2,178,000 at March 31, 2016 and 2015, and December 31, 2015, respectively, are included in loans individually evaluated for impairment.

March 31, 2016	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	7,392	$	19	$	18,473	$	1,291	$	27,175
Loans collectively evaluated for impairment		662,133		87,471		2,131,659		373,761		3,255,024
Total	$	669,525	$	87,490	$	2,150,132	$	375,052	$	3,282,199

March 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	3,098	$	197	$	14,983	$	657	$	18,935
Loans collectively evaluated for impairment		648,625		90,413		1,811,596		358,907		2,909,541
Total	$	651,723	$	90,610	$	1,826,579	$	359,564	$	2,928,476

December 31, 2015	Commercial		Agricultural		Real Estate		Consumer		Total
Loans individually evaluated for impairment	$	8,761	$	97	$	18,766	$	977	$	28,601
Loans collectively evaluated for impairment		687,402		102,254		2,117,467		381,326		3,288,449
Total	$	696,163	$	102,351	$	2,136,233	$	382,303	$	3,317,050

Schedule of Loans Modified and Considered Troubled Debt Restructurings

The Company’s loans that were modified in the three months ended March 31, 2016 and 2015 and considered troubled debt restructurings are as follows (in thousands):

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number		Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial		7	$	2,640	$	2,640		3	$	128	$	128
Agricultural		—		—		—		—		—		—
Real Estate		2		463		463		—		—		—
Consumer		2		20		20		1		24		24
Total		11	$	3,123	$	3,123		4	$	152	$	152

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 months ended March 31, 2016 and 2015 (in thousands):

	Three Months Ended March 31, 2016						Three Months Ended March 31, 2015
	Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity		Adjusted Interest Rate		Extended Maturity		Combined Rate and Maturity
Commercial	$	—	$	2,237	$	403	$	—	$	128	$	—
Agricultural		—		—		—		—		—		—
Real Estate		—		113		350		—		—		—
Consumer		—		4		16		—		—		24
Total	$	—	$	2,354	$	769	$	—	$	128	$	24

Schedule of Troubled Debt Restructurings

foreclosure and repossession of the applicable collateral. The loans with payment default are as follows (dollars in thousands):

	Three Months Ended March 31, 2015
	Number		Balance
Commercial		1	$	111
Agriculture		—		—
Real Estate		—		—
Consumer		—		—
Total		1	$	111

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Borrowings (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of Borrowings

Borrowings at March 31, 2016 and 2015, and December 31, 2015 consisted of the following (dollars in thousands):

	March 31,				December 31,
	2016		2015		2015
Securities sold under agreements with customers to repurchase	$	342,540	$	366,140	$	310,330
Federal funds purchased		7,800		19,775		6,325
Advances from Federal Home Loan Bank of Dallas		175,000		15,983		299,020
Total	$	525,340	$	401,898	$	615,675

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Fair Value Disclosures (Tables)

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and 2015, and December 31, 2015, respectively, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (dollars in thousands):

March 31, 2016
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,829	$	—	$	—	$	10,829
Obligations of U. S. government sponsored-enterprises and agencies		—		132,545		—		132,545
Obligations of states and political subdivisions		—		1,471,034		—		1,471,034
Corporate bonds		—		66,136		—		66,136
Residential mortgage-backed securities		—		809,726		—		809,726
Commercial mortgage-backed securities		—		268,173		—		268,173
Other securities		4,596		—		—		4,596
Total	$	15,425	$	2,747,614	$	—	$	2,763,039

March 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,983	$	—	$	—	$	10,983
Obligations of U. S. government sponsored-enterprises and agencies		—		175,117		—		175,117
Obligations of states and political subdivisions		—		1,303,492		—		1,303,492
Corporate bonds		—		93,158		—		93,158
Residential mortgage-backed securities		—		920,366		—		920,366
Commercial mortgage-backed securities		—		181,239		—		181,239
Other securities		4,975		—		—		4,975
Total	$	15,958	$	2,673,372	$	—	$	2,689,330

December 31, 2015
	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value
Available-for-sale investment securities:
U.S. Treasury securities	$	10,795	$	—	$	—	$	10,795
Obligations of U. S. government sponsored-enterprises and agencies		—		148,554		—		148,554
Obligations of states and political subdivisions		—		1,451,127		—		1,451,127
Corporate bonds		—		83,254		—		83,254
Residential mortgage-backed securities		—		788,882		—		788,882
Commercial mortgage-backed securities		—		246,586		—		246,586
Other securities		4,701		—		—		4,701
Total	$	15,496	$	2,718,403	$	—	$	2,733,899

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 March 31,
	2016		2015
Carrying value of other real estate owned prior to re-measurement	$	—	$	10
Write-downs included in gain (loss) on sale of other real estate owned		—		(10	)
Fair value	$	—	$	—

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 March 31, 2016 and 2015, and December 31, 2015, were as follows (in thousands):

	March 31,				March 31,				December 31,
	2016				2015				2015
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value		Fair Value Hierarchy
Cash and due from banks	$	139,995	$	139,995	$	142,233	$	142,233	$	179,140	$	179,140	Level 1
Federal funds sold		2,660		2,660		5,460		5,460		3,810		3,810	Level 1
Interest-bearing deposits in banks		22,993		22,993		18,275		18,275		89,936		89,936	Level 1
Interest-bearing time deposits in banks		2,427		2,430		9,170		9,185		3,495		3,500	Level 2
Available-for-sale Securities		2,763,039		2,763,039		2,689,330		2,689,330		2,733,899		2,733,899	Levels 1 and 2
Held-to-maturity securities		146		150		310		317		278		283	Level 2
Loans		3,255,135		3,260,544		2,900,879		2,907,114		3,308,716		3,316,243	Level 3
Accrued interest receivable		26,166		26,166		25,238		25,238		34,697		34,697	Level 2
Deposits with stated maturities		589,898		591,675		623,108		624,926		620,852		622,572	Level 2
Deposits with no stated maturities		4,473,909		4,473,909		4,213,899		4,213,899		4,569,317		4,569,317	Level 1
Short-term borrowings		525,340		525,340		401,898		401,898		615,675		615,675	Level 2
Accrued interest payable		254		254		235		235		240		240	Level 2

XML

Acquisition and Asset Purchase (Tables) - FBC Bancshares, Inc. and First Bank, N.A. [Member]

3 Months Ended

Mar. 31, 2016

Schedule of Amounts Recorded on Consolidated Balance Sheet on Acquisition Date

The assets acquired and liabilities assumed were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. The acquisition was not considered to be a significant business combination. The following table presents the amounts recorded on the consolidated balance sheet on the acquisition date (dollars in thousands):

Fair value of consideration paid:
Common stock issued (1,755,374 shares)	$	59,648

Schedule of Preliminary Estimated Fair Value Amounts Assigned to Major Asset and Liability Categories at Acquisition Date

Fair value of consideration paid:
Common stock issued (1,755,374 shares)	$	59,648
Fair value of identifiable assets acquired:
Cash and cash equivalents		65,197
Securities available-for-sale		42,903
Loans		248,380
Identifiable intangible assets		2,343
Other assets		15,262
Total identifiable assets acquired		374,085
Fair value of liabilities assumed:
Deposits		343,583
Subordinated debt		13,125
Other liabilities		1,651
Total liabilities assumed		358,359
Fair value of net identifiable assets acquired		15,726
Goodwill resulting from acquisition	$	43,922

XML

Basis of Presentation - Additional Information (Detail)	Mar. 31, 2016 Location shares	Dec. 31, 2015 shares	Apr. 28, 2015 shares	Mar. 31, 2015 shares
Basis Of Presentation [Line Items]
Number of locations	69
Common stock, shares authorized | shares	120,000,000	120,000,000	120,000,000	120,000,000
Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	9
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
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
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
Conroe [Member]
Basis Of Presentation [Line Items]
Number of locations	2
Albany [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Aledo [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
Boyd [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Bridgeport [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Brock [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Burleson [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Cisco [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Clyde [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Cut and Shoot [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Decatur [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Eastland [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
Glen Rose [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Grapevine [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Hereford [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Hereford [Member] | Subsidiary of Common Parent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Huntsville [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Keller [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Magnolia [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Mauriceville [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Merkel [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Midlothian [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Mineral Wells [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Montgomery [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
Newton [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
Orange [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Port Arthur [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
Roby [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Southlake [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
Tomball [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Trent [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Trophy Club [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Vidor [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Waxahachie [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Willis [Member]
Basis Of Presentation [Line Items]
Number of locations	1
Willow Park [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

XML

Stock Repurchase - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Oct. 28, 2014
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program expiration date	Sep. 30, 2017
Minimum number of shares that company is required to repurchase	0
Stock repurchased under authorization	0
Maximum [Member]
Equity, Class of Treasury Stock [Line Items]
Stock repurchase program, number of shares authorized to be repurchased		1,500,000

XML

Earnings Per Share - Additional Information (Detail) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share [Abstract]
Weighted average common shares outstanding, basic	65,974,559	64,122,965
Weighted average common shares outstanding, diluted	66,118,998	64,298,896

XML

Interest-bearing Time Deposits in Banks and Securities - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 USD ($) Investment	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Interest Bearing Time Deposits In Banks And Securities [Line Items]
INTEREST-BEARING TIME DEPOSITS IN BANKS	$ 2,427,000	$ 9,170,000	$ 3,495,000
Time deposits with balances greater than $250,000, FDIC insured limit	0	489,000	489,000
Time deposits balances, FDIC insured limit	250,000	250,000	250,000
Held-to-maturity securities	$ 146,000	310,000	$ 278,000
Number of investment positions | Investment	30
Securities pledged as collateral	$ 1,600,768,000
Sales of investment securities available-for-sale	553,000	1,129,000
Gross realized gains from security sales	7,000	5,000
Gross realized losses from security sales or calls	$ 5,000	$ 0
Minimum [Member]
Interest Bearing Time Deposits In Banks And Securities [Line Items]
Interest-bearing time deposits, maturity period, years	1 year
Maximum [Member]
Interest Bearing Time Deposits In Banks And Securities [Line Items]
Interest-bearing time deposits, maturity period, years	3 years

XML

Interest-bearing Time Deposits in Banks and Securities - Summary of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	$ 2,657,185	$ 2,654,885	$ 2,598,678
Securities available-for-sale, Gross Unrealized Holding Gains	106,916	84,855	92,762
Securities available-for-sale, Gross Unrealized Holding Losses	(1,062)	(5,841)	(2,110)
Securities available-for-sale, Estimated Fair Value	2,763,039	2,733,899	2,689,330
U.S. Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	10,756	10,792	10,899
Securities available-for-sale, Gross Unrealized Holding Gains	73	5	84
Securities available-for-sale, Gross Unrealized Holding Losses		(2)
Securities available-for-sale, Estimated Fair Value	10,829	10,795	10,983
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	131,484	148,393	173,777
Securities available-for-sale, Gross Unrealized Holding Gains	1,061	268	1,340
Securities available-for-sale, Gross Unrealized Holding Losses		(107)
Securities available-for-sale, Estimated Fair Value	132,545	148,554	175,117
Obligations of States and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	1,388,369	1,379,879	1,238,354
Securities available-for-sale, Gross Unrealized Holding Gains	82,693	71,382	65,922
Securities available-for-sale, Gross Unrealized Holding Losses	(28)	(134)	(784)
Securities available-for-sale, Estimated Fair Value	1,471,034	1,451,127	1,303,492
Corporate Bonds and Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	68,836	86,182	95,044
Securities available-for-sale, Gross Unrealized Holding Gains	1,896	1,778	3,089
Securities available-for-sale, Gross Unrealized Holding Losses		(5)
Securities available-for-sale, Estimated Fair Value	70,732	87,955	98,133
Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	793,509	781,648	900,831
Securities available-for-sale, Gross Unrealized Holding Gains	17,180	10,993	20,752
Securities available-for-sale, Gross Unrealized Holding Losses	(963)	(3,759)	(1,217)
Securities available-for-sale, Estimated Fair Value	809,726	788,882	920,366
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Securities available-for-sale, Amortized Cost Basis	264,231	247,991	179,773
Securities available-for-sale, Gross Unrealized Holding Gains	4,013	429	1,575
Securities available-for-sale, Gross Unrealized Holding Losses	(71)	(1,834)	(109)
Securities available-for-sale, Estimated Fair Value	$ 268,173	$ 246,586	$ 181,239

XML

Interest-bearing Time Deposits in Banks and Securities - Amortized Cost and Estimated Fair Value of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
Available-for-Sale, Amortized Cost Basis, Due within one year	$ 168,837
Available-for-Sale, Amortized Cost Basis, Due after one year through five years	700,497
Available-for-Sale, Amortized Cost Basis, Due after five years through ten years	727,661
Available-for-Sale, Amortized Cost Basis, Due after ten years	2,450
Available-for-Sale, Amortized Cost Basis, Mortgage-backed securities	1,057,740
Available-for-Sale, Amortized Cost Basis, Total	2,657,185
Available-for-Sale, Estimated Fair Value, Due within one year	170,475
Available-for-Sale, Estimated Fair Value, Due after one year through five years	737,357
Available-for-Sale, Estimated Fair Value, Due after five years through ten years	774,335
Available-for-Sale, Estimated Fair Value, Due after ten years	2,973
Available-for-Sale, Estimated Fair Value, Mortgage-backed securities	1,077,899
Securities available-for-sale, Estimated Fair Value, Total	$ 2,763,039	$ 2,733,899	$ 2,689,330

XML

Interest-bearing Time Deposits in Banks and Securities - Continuous Unrealized-Loss Position of Available-for-Sale Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value	$ 47,509	$ 523,075	$ 117,203
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	393	3,758	818
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	63,715	74,777	79,298
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	669	2,083	1,292
Available-for-sale securities, continuous unrealized loss position, Fair Value	111,224	597,852	196,501
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	1,062	5,841	2,110
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	6,804	32,929	84,444
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	23	127	748
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	1,071	1,513	2,570
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	5	7	36
Available-for-sale securities, continuous unrealized loss position, Fair Value	7,875	34,442	87,014
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	28	134	784
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	25,152	231,481	12,917
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	357	1,765	13
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	48,124	63,919	67,164
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	606	1,994	1,204
Available-for-sale securities, continuous unrealized loss position, Fair Value	73,276	295,400	80,081
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	963	3,759	1,217
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	15,553	196,163	19,842
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss	13	1,752	57
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Fair Value	14,520	9,345	9,564
Available-for-sale securities, continuous unrealized loss position 12 Months or Longer, Unrealized Loss	58	82	52
Available-for-sale securities, continuous unrealized loss position, Fair Value	30,073	205,508	29,406
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss	$ 71	1,834	$ 109
U.S. Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value		5,110
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss		2
Available-for-sale securities, continuous unrealized loss position, Fair Value		5,110
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss		2
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		50,388
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss		107
Available-for-sale securities, continuous unrealized loss position, Fair Value		50,388
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss		107
Corporate Bonds and Other [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Fair Value		7,004
Available-for-sale securities, continuous unrealized loss position Less than 12 Months, Unrealized Loss		5
Available-for-sale securities, continuous unrealized loss position, Fair Value		7,004
Available-for-sale securities, continuous unrealized loss position, Unrealized Loss		$ 5

XML

Loans and Allowance for Loan Losses - Additional Information (Detail)				3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)	Mar. 31, 2015 USD ($)	Mar. 31, 2016 USD ($) SecurityLoan	Mar. 31, 2015 USD ($) SecurityLoan	Dec. 31, 2015 USD ($)
Receivables [Abstract]
Minimum number of days to consider the loans as non-accrual				Greater than 90 days
Carrying amount of purchased credit impaired loans	$ 1,970,000	$ 2,178,000	$ 2,037,000
Contractual balance	2,701,000	2,936,000	2,817,000	$ 2,701,000	$ 2,817,000	$ 2,936,000
Loans held for sale	17,008,000	33,543,000	10,231,000	17,008,000	10,231,000	33,543,000
Average recorded investment in impaired loans				26,412,000	20,263,000	21,735,000
Nonaccrual, past due 90 days or more and still accruing, restructured loans and foreclosed assets	29,028,000	29,768,000	20,377,000	29,028,000	20,377,000	29,768,000
Additional funds advanced in connection with impaired loans	0			0
Interest income recognized on impaired loans	0	0	0
Interest income recognized on impaired loans				0	0	922,000
Allowance for purchased credit impaired loans	0	0	0	$ 0	$ 0	0
Default for purposes of this disclosure is a troubled debt restructured loan				90 days
Number of loans modified | SecurityLoan				11	4
Commitments to lend additional funds to borrowers with loan that have been modified as TDRs	0			$ 0
Loans held by subsidiaries subject to blanket liens	2,032,327,000			2,032,327,000
Advances from Federal Home Loan Bank of Dallas	$ 175,000,000	$ 299,020,000	$ 15,983,000	$ 175,000,000	$ 15,983,000	$ 299,020,000

XML

Loans and Allowance for Loan Losses - Loans Held-for-Investment by Class of Financing Receivables (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Receivables [Abstract]
Commercial	$ 669,525	$ 696,163	$ 651,723
Agricultural	87,490	102,351	90,610
Real estate	2,150,132	2,136,233	1,826,579
Consumer	375,052	382,303	359,564
Total	$ 3,282,199	$ 3,317,050	$ 2,928,476

XML

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	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Receivables [Abstract]
Non-accrual loans	$ 27,175	$ 28,601	$ 18,935
Loans still accruing and past due 90 days or more	59	341	184
Troubled debt restructured loans	973	199	177
Total	$ 28,207	$ 29,141	$ 19,296

XML

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 ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Non Accrual Loans Segregated By Class Of Loans [Line Items]
Carrying amount of purchased credit impaired loans	$ 1,970,000	$ 2,178,000	$ 2,037,000
Troubled debt restructured loans	973,000	199,000	177,000
Doubtful [Member]
Non Accrual Loans Segregated By Class Of Loans [Line Items]
Troubled debt restructured loans	$ 8,527,000	$ 6,113,000	$ 8,431,000

XML

Loans and Allowance for Loan Losses - Recorded Investment in Impaired Loans and Related Valuation Allowance (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Receivables [Abstract]
Recorded Investment	$ 27,175	$ 28,601	$ 18,935
Valuation Allowance	$ 5,262	$ 5,071	$ 3,860

XML

Loans and Allowance for Loan Losses - Schedule of Non-Accrual Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	$ 27,175	$ 28,601	$ 18,935
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	7,392	8,761	3,098
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	19	97	197
Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	18,473	18,766	14,983
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual loans	$ 1,291	$ 977	$ 657

XML

Loans and Allowance for Loan Losses - Schedule of Impaired Loans and Related Allowance (Detail) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	$ 33,546	$ 25,644	$ 35,030
Recorded Investment With No Allowance	7,183	5,298	6,546
Recorded Investment With Allowance	19,992	13,637	22,055
Total Recorded Investment	27,175	18,935	28,601
Related Allowance	5,262	3,860	5,071
Average Recorded Investment	26,412	20,263	21,735
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	8,309	3,696	10,056
Recorded Investment With No Allowance	1,227	373	608
Recorded Investment With Allowance	6,165	2,725	8,153
Total Recorded Investment	7,392	3,098	8,761
Related Allowance	2,165	1,079	2,030
Average Recorded Investment	6,812	3,200	5,812
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	19	213	97
Recorded Investment With Allowance	19	197	97
Total Recorded Investment	19	197	97
Related Allowance	7	55	70
Average Recorded Investment	11	207	48
Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	23,740	20,865	23,710
Recorded Investment With No Allowance	5,746	4,519	5,314
Recorded Investment With Allowance	12,727	10,464	13,452
Total Recorded Investment	18,473	14,983	18,766
Related Allowance	2,658	2,617	2,827
Average Recorded Investment	18,504	16,179	15,211
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Unpaid Contractual Principal Balance	1,478	870	1,167
Recorded Investment With No Allowance	210	406	624
Recorded Investment With Allowance	1,081	251	353
Total Recorded Investment	1,291	657	977
Related Allowance	432	109	144
Average Recorded Investment	$ 1,085	$ 677	$ 664

XML

Loans and Allowance for Loan Losses - Schedule of Impaired Loans and Related Allowance (Parenthetical) (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Receivables [Abstract]
Carrying amount of purchased credit impaired loans	$ 1,970,000	$ 2,178,000	$ 2,037,000

XML

Loans and Allowance for Loan Losses - Schedule of Internal Ratings of Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	$ 3,282,199	$ 3,317,050	$ 2,928,476
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	669,525	696,163	651,723
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	87,490	102,351	90,610
Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	2,150,132	2,136,233	1,826,579
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	375,052	382,303	359,564
Pass [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	3,140,057	3,167,624	2,850,728
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	611,466	633,083	631,100
Pass [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	84,555	99,862	90,030
Pass [Member] | Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	2,072,210	2,054,738	1,771,889
Pass [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	371,826	379,941	357,709
Special Mention [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	31,486	40,576	30,874
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	7,378	9,762	9,384
Special Mention [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	350	1,398	164
Special Mention [Member] | Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	23,359	29,000	20,809
Special Mention [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	399	416	517
Substandard [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	110,656	108,813	46,775
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	50,681	53,318	11,239
Substandard [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	2,585	1,091	416
Substandard [Member] | Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	54,563	52,458	33,782
Substandard [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan	$ 2,827	1,946	1,338
Doubtful [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan		37	99
Doubtful [Member] | Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Internal ratings of loan		$ 37	$ 99

XML

Loans and Allowance for Loan Losses - Schedule of Past Due Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 24,782	$ 27,647	$ 23,373
Total Current	3,257,417	3,289,403	2,905,103
Total	3,282,199	3,317,050	2,928,476
Total 90 Days Past Due Still Accruing	59	341	184
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,064	7,775	5,005
Total Current	663,461	688,388	646,718
Total	669,525	696,163	651,723
Total 90 Days Past Due Still Accruing	42	54
Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	320	431	520
Total Current	87,170	101,920	90,090
Total	87,490	102,351	90,610
Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	16,223	17,347	15,561
Total Current	2,133,909	2,118,886	1,811,018
Total	2,150,132	2,136,233	1,826,579
Total 90 Days Past Due Still Accruing		217	144
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,175	2,094	2,287
Total Current	372,877	380,209	357,277
Total	375,052	382,303	359,564
Total 90 Days Past Due Still Accruing	17	70	40
15-59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	16,314	17,339	19,755
15-59 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,338	3,099	4,514
15-59 Days Past Due [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	320	348	485
15-59 Days Past Due [Member] | Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	10,979	12,247	13,077
15-59 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,677	1,645	1,679
60-89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,124	6,144	1,824
60-89 Days Past Due [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,228	3,652	283
60-89 Days Past Due [Member] | Agriculture [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		83	35
60-89 Days Past Due [Member] | Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,560	2,226	1,116
60-89 Days Past Due [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	336	183	390
Greater than 90 Days [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	5,344	4,164	1,794
Greater than 90 Days [Member] | Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,498	1,024	208
Greater than 90 Days [Member] | Real Estate Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,684	2,874	1,368
Greater than 90 Days [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 162	$ 266	$ 218

XML

Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	$ 5,262	$ 5,071	$ 3,860
Loan collectively evaluated for impairment	38,810	36,806	33,968
Total allowance for loan losses	44,072	41,877	37,828	$ 36,824
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	2,165	2,030	1,079
Loan collectively evaluated for impairment	10,740	10,614	9,296
Total allowance for loan losses	12,905	12,644	10,375	7,990
Agriculture [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	7	70	55
Loan collectively evaluated for impairment	1,248	1,121	418
Total allowance for loan losses	1,255	1,191	473	527
Real Estate Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	2,658	2,827	2,617
Loan collectively evaluated for impairment	23,441	21,548	22,622
Total allowance for loan losses	26,099	24,375	25,239	26,657
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans individually evaluated for impairment	432	144	109
Loan collectively evaluated for impairment	3,381	3,523	1,632
Total allowance for loan losses	$ 3,813	$ 3,667	$ 1,741	$ 1,650

XML

Loans and Allowance for Loan Losses - Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	$ 41,877	$ 36,824
PROVISION FOR LOAN LOSSES	2,328	1,290
Recoveries	1,649	224
Charge-offs	(1,782)	(510)
Ending balance	44,072	37,828
Commercial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	12,644	7,990
PROVISION FOR LOAN LOSSES	847	2,465
Recoveries	286	80
Charge-offs	(872)	(160)
Ending balance	12,905	10,375
Agriculture [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	1,191	527
PROVISION FOR LOAN LOSSES	196	(32)
Recoveries	11	2
Charge-offs	(143)	(24)
Ending balance	1,255	473
Real Estate Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	24,375	26,657
PROVISION FOR LOAN LOSSES	832	(1,467)
Recoveries	1,227	71
Charge-offs	(335)	(22)
Ending balance	26,099	25,239
Consumer [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning balance	3,667	1,650
PROVISION FOR LOAN LOSSES	453	324
Recoveries	125	71
Charge-offs	(432)	(304)
Ending balance	$ 3,813	$ 1,741

XML

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	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	$ 27,175	$ 28,601	$ 18,935
Loans collectively evaluated for impairment	3,255,024	3,288,449	2,909,541
Total	3,282,199	3,317,050	2,928,476
Commercial [Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	7,392	8,761	3,098
Loans collectively evaluated for impairment	662,133	687,402	648,625
Total	669,525	696,163	651,723
Agriculture [Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	19	97	197
Loans collectively evaluated for impairment	87,471	102,254	90,413
Total	87,490	102,351	90,610
Real Estate Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	18,473	18,766	14,983
Loans collectively evaluated for impairment	2,131,659	2,117,467	1,811,596
Total	2,150,132	2,136,233	1,826,579
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Loans individually evaluated for impairment	1,291	977	657
Loans collectively evaluated for impairment	373,761	381,326	358,907
Total	$ 375,052	$ 382,303	$ 359,564

XML

Loans and Allowance for Loan Losses - Schedule of Loans Modified and Considered Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) SecurityLoan	Mar. 31, 2015 USD ($) SecurityLoan
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	11	4
Pre-Modification Recorded Investment	$ 3,123	$ 152
Post-Modification Recorded Investment	$ 3,123	$ 152
Commercial [Member]
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	7	3
Pre-Modification Recorded Investment	$ 2,640	$ 128
Post-Modification Recorded Investment	$ 2,640	$ 128
Real Estate Member]
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	2
Pre-Modification Recorded Investment	$ 463
Post-Modification Recorded Investment	$ 463
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number | SecurityLoan	2	1
Pre-Modification Recorded Investment	$ 20	$ 24
Post-Modification Recorded Investment	$ 20	$ 24

XML

Loans and Allowance for Loan Losses - Schedule of How Loans Were Modified as Troubled Debt Restructured Loans (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	$ 973	$ 199	$ 177
Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	2,354		128
Combined Rate and Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	769		24
Commercial [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	2,237		128
Commercial [Member] | Combined Rate and Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	403
Real Estate Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	113
Real Estate Member] | Combined Rate and Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	350
Consumer [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	4
Consumer [Member] | Combined Rate and Maturity [Member]
Financing Receivable, Modifications [Line Items]
Adjusted Interest Rate	$ 16		$ 24

XML

Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2015 USD ($) Contract
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number | Contract	1
Balance | $	$ 111
Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Number | Contract	1
Balance | $	$ 111

XML

Borrowings - Schedule of Borrowings (Detail) - USD ($)	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Debt Disclosure [Abstract]
Securities sold under agreements with customers to repurchase	$ 342,540,000	$ 310,330,000	$ 366,140,000
Federal funds purchased	7,800,000	6,325,000	19,775,000
Advances from Federal Home Loan Bank of Dallas	175,000,000	299,020,000	15,983,000
Total	$ 525,340,000	$ 615,675,000	$ 401,898,000

XML

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 7,739	$ 7,766
Effective tax rates on pre-tax income	23.15%	24.45%
Statutory federal tax rate	35.00%

XML

Stock Option Plan and Restricted Stock Plan - Additional Information (Detail)			3 Months Ended
	Oct. 27, 2015 USD ($) $ / shares shares	Jul. 21, 2015 USD ($) Non_Employee_Directors shares	Mar. 31, 2016 USD ($) shares	Mar. 31, 2015 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted | shares	455,000		0
Stock option expense | $			$ 220,000	$ 180,000
Exercise Price | $ / shares	$ 33.89
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of non employee directors | Non_Employee_Directors		10
Restricted Stock [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted | shares		7,070
Restricted shares value | $		$ 250,000
Restricted Stock [Member] | Officers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted shares granted | shares	32,748
Restricted shares value | $	$ 1,110,000
Restricted shares vesting period	3 years

XML

Pension Plan - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Contributions to the plan	$ 0		$ 500,000
Net periodic benefit costs, total	$ 82,000	$ 75,000

XML

Fair Value Disclosures - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Fair Value Inputs Assets And Liabilities Quantitative Information [Line Items]
Assets transfer between Level 2 and Level 3	$ 0	$ 0	$ 0
Impaired loans carrying value	27,175,000	18,935,000	28,601,000
Impaired loans valuation reserves	5,262,000
Impaired loans net fair value	21,913,000
Other real estate owned, total	$ 743,000	$ 863,000	$ 153,000
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%

XML

Fair Value Disclosures - Financial Assets and Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	$ 2,763,039	$ 2,733,899	$ 2,689,330
U.S. Treasury Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	10,829	10,795	10,983
Obligations of U.S. Government Sponsored Enterprises and Agencies [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	132,545	148,554	175,117
Obligations of States and Political Subdivisions [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	1,471,034	1,451,127	1,303,492
Residential Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	809,726	788,882	920,366
Commercial Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	268,173	246,586	181,239
Fair Value, Measurements, Recurring [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	2,763,039	2,733,899	2,689,330
Fair Value, Measurements, Recurring [Member] | Corporate Bonds [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	66,136	83,254	93,158
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	10,829	10,795	10,983
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	132,545	148,554	175,117
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	1,471,034	1,451,127	1,303,492
Fair Value, Measurements, Recurring [Member] | Residential Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	809,726	788,882	920,366
Fair Value, Measurements, Recurring [Member] | Commercial Mortgage-Backed Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	268,173	246,586	181,239
Fair Value, Measurements, Recurring [Member] | Other Securities [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	4,596	4,701	4,975
Fair Value, Measurements, Recurring [Member] | Level 1 Inputs [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	15,425	15,496	15,958
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	10,829	10,795	10,983
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	4,596	4,701	4,975
Fair Value, Measurements, Recurring [Member] | Level 2 Inputs [Member]
Available-for-sale investment securities:
Available-for-sale investment securities, Total Fair Value	2,747,614	2,718,403	2,673,372
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	66,136	83,254	93,158
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	132,545	148,554	175,117
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	1,471,034	1,451,127	1,303,492
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	809,726	788,882	920,366
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	$ 268,173	$ 246,586	$ 181,239

XML

Fair Value Disclosures - Other Real Estate Owned (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Carrying value of other real estate owned prior to re-measurement		$ 10
Write-downs included in gain (loss) on sale of other real estate owned		(10)
Other real estate owned, fair value	$ 0	$ 0

XML

Fair Value Disclosures - Schedule of Estimated Fair Values and Carrying Values of All Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
CASH AND DUE FROM BANKS	$ 139,995	$ 179,140	$ 142,233
FEDERAL FUNDS SOLD	2,660	3,810	5,460
INTEREST-BEARING DEPOSITS IN BANKS	22,993	89,936	18,275
INTEREST-BEARING TIME DEPOSITS IN BANKS	2,427	3,495	9,170
Available-for-sale Securities	2,763,039	2,733,899	2,689,330
Held-to-maturity securities	146	278	310
Loans	3,255,135	3,308,716	2,900,879
SHORT-TERM BORROWINGS	525,340	615,675	401,898
Carrying Value [Member] | Level 1 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
CASH AND DUE FROM BANKS	139,995	179,140	142,233
FEDERAL FUNDS SOLD	2,660	3,810	5,460
INTEREST-BEARING DEPOSITS IN BANKS	22,993	89,936	18,275
Deposits with no stated maturities	4,473,909	4,569,317	4,213,899
Carrying Value [Member] | Level 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
INTEREST-BEARING TIME DEPOSITS IN BANKS	2,427	3,495	9,170
Held-to-maturity securities	146	278	310
Accrued interest receivable	26,166	34,697	25,238
Deposits with stated maturities	589,898	620,852	623,108
SHORT-TERM BORROWINGS	525,340	615,675	401,898
Accrued interest payable	254	240	235
Carrying Value [Member] | Levels 1 and 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	2,763,039	2,733,899	2,689,330
Carrying Value [Member] | Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	3,255,135	3,308,716	2,900,879
Estimated Fair Value [Member] | Level 1 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
CASH AND DUE FROM BANKS	139,995	179,140	142,233
FEDERAL FUNDS SOLD	2,660	3,810	5,460
INTEREST-BEARING DEPOSITS IN BANKS	22,993	89,936	18,275
Deposits with no stated maturities	4,473,909	4,569,317	4,213,899
Estimated Fair Value [Member] | Level 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
INTEREST-BEARING TIME DEPOSITS IN BANKS	2,430	3,500	9,185
Held-to-maturity securities	150	283	317
Accrued interest receivable	26,166	34,697	25,238
Deposits with stated maturities	591,675	622,572	624,926
SHORT-TERM BORROWINGS	525,340	615,675	401,898
Accrued interest payable	254	240	235
Estimated Fair Value [Member] | Levels 1 and 2 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale Securities	2,763,039	2,733,899	2,689,330
Estimated Fair Value [Member] | Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans	$ 3,260,544	$ 3,316,243	$ 2,907,114

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Acquisition and Asset Purchase - Additional Information (Detail) - USD ($)			3 Months Ended
	Aug. 03, 2015	Jul. 31, 2015	Mar. 31, 2016	Dec. 31, 2015	Apr. 08, 2015	Mar. 31, 2015
Business Acquisition [Line Items]
Fair value of purchased credit impaired loans			$ 27,175,000	$ 28,601,000		$ 18,935,000
Contractual amounts			$ 2,701,000	$ 2,936,000		$ 2,817,000
FBC Bancshares, Inc. and First Bank, N.A. [Member]
Business Acquisition [Line Items]
Business acquisition, agreement date			Apr. 01, 2015
Payment for all outstanding shares of acquired entity by shares		1,755,374
Subordinated debt, paid off	$ 13,125,000
Fair value of total loans			$ 248,380,000
Total loans of contractual amounts			252,458,000
Fair value of purchased credit impaired loans			1,398,000
Contractual amounts			1,704,000
Goodwill resulting from acquisition			$ 43,922,000
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
Goodwill resulting from acquisition			$ 1,750,000

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Acquisition and Asset Purchase - Schedule of Amounts Recorded on Consolidated Balance Sheet on Acquisition Date (Detail) $ in Thousands	Jul. 31, 2015 USD ($)
FBC Bancshares, Inc. and First Bank, N.A. [Member]
Business Acquisition [Line Items]
Common stock issued (1,755,374 shares)	$ 59,648

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Acquisition and Asset Purchase - Schedule of Amounts Recorded on Consolidated Balance Sheet on Acquisition Date (Parenthetical) (Detail)	Jul. 31, 2015 shares
FBC Bancshares, Inc. and First Bank, N.A. [Member]
Business Acquisition [Line Items]
Common stock issued shares	1,755,374

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Acquisition and Asset Purchase - Schedule of Preliminary Estimated Fair Value Amounts Assigned to Major Asset and Liability Categories at Acquisition Date (Detail) - FBC Bancshares, Inc. and First Bank, N.A. [Member]	Mar. 31, 2016 USD ($)
Business Acquisition [Line Items]
Cash and cash equivalents	$ 65,197,000
Securities available-for-sale	42,903,000
Loans	248,380,000
Identifiable intangible assets	2,343,000
Other assets	15,262,000
Total identifiable assets acquired	374,085,000
Deposits	343,583,000
Subordinated debt	13,125,000
Other liabilities	1,651,000
Total liabilities assumed	358,359,000
Fair value of net identifiable assets acquired	15,726,000
Goodwill resulting from acquisition	$ 43,922,000