ITEM 1.01 Entry into a Material Definitive Agreement
On June 30, 2021, First Financial Bankshares, Inc. (the "Company") renewed its
loan agreement (the "Loan Agreement") with Frost Bank. Under the Loan Agreement,
the Company is permitted to draw up to $25.0 million on a revolving line of
credit. Prior to June 30, 2023, interest is paid quarterly at Wall Street
Journal Prime and the line of credit matures June 30, 2023. If a balance exists
at July 1, 2023, the principal balance coverts to a term facility payable
quarterly over five years and interest is paid quarterly at Wall Street Journal
Prime. The line of credit is unsecured. Among other provisions in the Loan
Agreement, the Company must satisfy certain financial covenants during the term
of the Loan Agreement, including without limitation, covenants that require the
Company to maintain certain capital, tangible net worth, loan loss reserve,
non-performing asset and cash flow coverage ratios. In addition, the Loan
Agreement contains certain operational covenants, that among others, restricts
the payment of dividends above 55% of consolidated net income, limits the
incurrence of debt (excluding any amounts acquired in an acquisition) and
prohibits the disposal of assets except in the ordinary course of business.
Since 1995, the Company has declared dividends as a percentage of its
consolidated net income in a range of 36% (low) in 2020 to 53% (high) in 2003
and 2006. Through the three months ended March 31, 2021, the Company has
declared dividends equal to 32.50% of its consolidated net income. There have
been no borrowings under the Loan Agreement during 2021 or 2020.
ITEM 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit
Number Description
10.1 Fourth Amendment to Loan agreement, dated June 30, 2021, between
First Financial Bankshares, Inc. and Frost Bank.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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