Statement of Financial Condition - First American Bank

1

S TAT E M E N T O FF I N A N C I A L C O N D I T I O N

F I R S T A M E R I C A N B A N K

WE CELEBRATE THE LAND OF

ENCHANTM E N T

The photos featured are originals taken by

First American Bank employees and board

members–whose vision of New Mexico is

reflected throughout this years statement of financial condition.

2

Chairman’s Letter 4-5

Summary of Growth 8-9 Total Asset Growth 8

Total Loan Growth 8

Total Deposit Growth 9

Total Income Growth 9

Statement of Financial Condition 12-13 Statement of Financial Condition 12

Statement of Income 13

Tribute 16 William F. Mershon

First Artesia Bancshares, Inc. 17 Board of Directors

First American Bank 17-21 Board of Directors, Corporate Executive Team 17

Officers - Administration, Branches & Divisions 19-21

Locations 23

Photo Credits 24

TA B L E O F CO N T E N T S

4 5

GREG MARRSA MESSAGE FROM CHAIRMAN AND CEO

This past year was like nothing most of us have ever faced, but it did not stop us from accomplishing

some extraordinary things. First American Bank has built its reputation on longevity and building

relationships with individuals, businesses and communities. This crisis created opportunities for us

to demonstrate our unwavering commitment to those we serve. I am immensely proud of the way

our team “stepped up” at a crucial time when we were re-defining the way we interact and conduct

business with our customers to provide innovative financial solutions when there was so much

uncertainty all around us.

In spite of all the challenges, we were able to once again achieve high performance extending our

trend of record profits to six consecutive years. While traditional areas of earnings for the bank have

seen revenues reduced considerably, we were able to shift our focus and replace these revenues with

other income generating opportunities. I attribute our ability to successfully pivot our business model

and adapt to the changes in the market to our strong culture and our great people.

We closed the year with total assets of $1.42 billion increasing $200 million from the previous year-

net profits were $27.3 million, an increase of $600 thousand. These earnings resulted in a Return on

Assets (ROA) of 1.97% and a Return on Equity (ROE) of 18.91%. This performance ranks First American

Bank as high-performing and in the top percentile of our peer group.* Our capital position was strong

at 10.36% ensuring our customers and their assets are in good hands with our bank!

The state of New Mexico has been on lock down much of the time since the beginning of the

pandemic. As a result, we shifted away from our planned strategic direction to a mission of preserving

the bank to ensure we remain strong and well positioned to support our customers and communities.

We entered the crisis from a position of strength with solid asset quality, earnings, liquidity and

capital and have been able to maintain that standing. We have been working on critical initiatives that

will position us to get back in line with our strategic plan and regain momentum quickly as the local

economies begin to open up.

Our people are our strength. They embody our core values which will help us navigate these

unchartered waters to keep First American Bank relevant and solid so we can be a catalyst for

the recovery of our local communities and bring about a better future for all of us. We thank our

customers and shareholders for their continued support of one of the strongest and well respected

independent community banks in New Mexico.

Sincerely,

Greg Marrs

President, Chief Executive Officer and Chairman

*Our peer group is considered all US sub chapter “S” corporation banks with total assets between $1 billion and $2 billion.

"These earnings resulted in a ROA of 1.97% and a ROE of 18.91%." G R OW T H

S U M M A RY O F

8 9

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Year

First American BankTotal Asset Growth

Total Assets

TOTA L A S S E T G R OW T H

TOTA L LOA N G R OW T H

TOTAL ASSETS

TOTAL LOANS

200,000

0

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,400,000

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

0

01 02 03 04 05 06 07 08 09 10 1 1 12 13 14 15 16 1 7 18 19 20

01 02 03 04 05 06 07 08 09 10 1 1 12 13 14 15 16 17 18 19 20

TOTA L D E P O S I T G R OW T H

TOTAL DEPOSITS

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

TOTA L I N CO M E G R OW T H

NET INCOME

0

5000

10,000

15,000

20,000

25,000

30,000

01 02 03 04 05 06 07 08 09 10 1 1 12 13 14 15 16 1 7 18 19 20

01 02 03 04 05 06 07 08 09 10 1 1 12 13 14 15 16 1 7 18 19 20

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019Year

First American BankTotal Deposit Growth

Total Deposits

"...we were able to once again achieve high performance extending our trend of record profits to six consecutive years." F I N A N C I A L CO N D I T I O N

S TAT E M E N T O F

12 13

202027,912,097

77,428,809

105,340,906

440,590,368

1,340,081

64,332,630

16,954,390

732,446,139

25,085,598

5,259,277

30,325,179

1,421,674,568

445,817,767

655,185,186

86,383,107

1,187,386,060

52,511,957

-

21,041,424

1,260,939,441

3,768,750

55,997,338

87,508,958

13,460,081

160,735,127

1,421,674,568

201916,995,191

4,323,114

21,318,305

430,763,949

1,794,381

53,565,412

4,814,431

645,136,723

25,442,763

4,336,174

28,407,464

1,215,579,602

355,097,258

585,039,449

87,244,584

1,027,381,291

18,883,615

15,000,000

19,621,794

1,080,886,700

3,768,750

55,997,338

73,286,927

1,639,887

134,692,902

1,215,579,602

AssetsCash and Cash Equivalents Cash and due from banks

Interest bearing deposits

Total cash and cash equivalents

Securities Available for sale

Restricted stock

Held to maturity

Loans held for saleLoans, netBank premises & equipment, netAccrued interest receivableOther assets

TOTAL ASSETS

Liabilities & Stockholder’s EquityLiabilities Deposits

Demand

Interest bearing

Savings, NOW and Money Market deposits

Certificates of deposit

Total deposits Federal funds purchased and securities sold

under agreement to repurchase

Other borrowed funds

Accrued interest payable and other liabilities

Total liabilities

Commitments and Contingencies Stockholder’s Equity Common stock: $188.44 stated value; 20,000 shares

authorized, issued and outstanding

Capital surplus

Retained earnings

Accumulated other comprehensive income

Total stockholder’s equity

TOTAL LIABILITIES & STOCKHOLDER’S EQUITY

STATEMENT OF

F I N A N C I A L CO N D I T I O NYEAR ENDED DECEMBER 31ST

Interest Income Loans

Securities available for sale

Securities held to maturity

Federal funds sold and deposits

Total interest income

Interest Expense Deposits

Federal funds purchased and securities

sold under agreement to repurchase

Other borrowed funds

Total interest expense

Net Interest Income Provision for loan losses

Net interest income after provisions for loan losses

Non Interest Income Service charges & fees on deposit accounts

Income from fiduciary activities

Gain on sale of loans

Other service charges and fees

Net gain on sale of other real estate owned

Other

Total non interest income

Non Interest Expense Salaries and employee benefits

Occupancy and equipment expense

Data processing

Professional services

Advertising and promotional

FDIC assessment

Other

Total non interest expense

NET INCOME

202038,699,456

8,734,648

1,403,940

212,046

49,050,090

2,312,792

65,877

37,764

2,416,433

46,633,657 1,674,336

44,959,321

4,080,166

3,856,890

3,637,296

236,739

28,560

2,651,200

14,490,851

20,349,061

3,081,391

3,255,734

1,395,628

455,357

175,001

3,422,214

32,134,386

27,315,786

201941,569,600

8,607,231

1,576,078

1,099,837

52,852,746

3,580,162

98,483

1,890

3,680,535

49,172,211 1,544,330

47,627,881

4,150,076

3,524,904

2,136,681

241,077

61,218

1,446,686

11,560,642

18,456,170

3,088,110

3,785,255

1,987,605

683,195

360,000

4,124,986

32,485,321

26,703,202

STATEMENT OF

I N CO M EYEAR ENDED DECEMBER 31ST

"We have built our reputation on longevity and building relationships with individuals, businesses and communities." A N D O F F I C E R S

D I R EC TO R S , E X EC U T I V E S

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W I L L I A M F. M E R S H O N1939–2020

A TRIBUTE TO OUR FRIEND, DIRECTOR AND CHAIRMAN

On October 22, 2020, we lost a solid and well respected

man, William “Bill” Mershon. His passing was a shock to us

and others in the communities in Southeast New Mexico.

The impact of Bill’s hard work for the betterment of New

Mexico and especially Otero County will be greatly missed.

Bill was born in Roswell, New Mexico, the eldest of three

brothers. He attended school in Mayhill and Cloudcroft and

finished high school plus attended two additional years

at New Mexico Military Institute (NMMI). He graduated

from NMSU with a BSEE then received his orders to Korea

with the 1st Calvary Division. He worked in engineering

throughout his career and retired from Otero County

Electric as General Manager in 2002.

Bill and Marilyn were married 50 years and raised four

children and have five grandchildren. He led a life filled with service to his community. He was an

advocate for education and served on many local, county, and state boards.

Bill served 28 years on The First National Bank, then First American Bank Board (FAB) and

First Artesia Bancshares, Inc. (FABS, Inc.). He joined the FAB board in 1992 and FABS, Inc. in 1997.

He served on numerous committees throughout his tenure. He was named Chairman of FABS, Inc.

in 2003 and served until his passing. Bill was a director when two major decisions affecting the

bank's future were made by the board – in 1996 with the expansion into Hobbs and 2009 to change

the name from The First National Bank to First American Bank.

Bill served the last seven years with Greg Marrs as the CEO and Chairman of First American Bank.

Greg says, “He was passionate not only about the bank, but his responsibilities. Bill was always

willing to give of his time and knowledge for the improvement of the organization. His many years of

service are greatly appreciated and he will be missed."

Thank you Bill Mershonfor your dedication and commitment to

First American Bank.

GREG MARRSChairman

BRYAN BARTLET TDirector

BUCK BUCKNERDirector

MIKE CASABONNEDirector

LAURA CONNIFFDirector

JOHN HUMMERDirector

DANIEL JOHNCOXDirector

JOEL MILLERDirector

RUSSELL SMITHDirector

GILBERT GOMEZDirector Emeritus

CRAWFORD CULPDirector Emeritus

NANCY TADICSecretary to the Board

RAYE MILLERVice Chairman

MIKE CASABONNEDirector

GREG MARRSDirector

RUSSELL SMITHDirector

BRET T deMILLIANO Advisory Director

VICKY TOWNLEYSecretary to the Board

F I R S T A R T E S I A B A N C S H A R E S , I N C .BOARD OF DIRECTORS

F I R S T A M E R I C A N B A N KBOARD OF DIRECTORS

F I R S T A M E R I C A N B A N KCORPORATE EXECUTIVE TEAM

GREG MARRSPresident, Chairman Chief Executive Officer

VICKY TOWNLEYExecutive Vice PresidentChief Administration Officer

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ZANE BERGMANExecutive Vice PresidentChief Credit Officer

BRET T deMILLIANO Executive Vice PresidentChief Financial Officer

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GREG MARRSPresident, Chairman Chief Executive Officer

ZANE BERGMANExecutive Vice PresidentChief Credit Officer

BRET T deMILLIANO Executive Vice PresidentChief Financial Officer

VICKY TOWNLEYExecutive Vice President Chief Administration Officer

AURORA SANCHEZSenior Vice PresidentChief Operations Officer

TIM ALTAMIRANOSenior Vice President Treasury Management

KEITH BIRDSenior Vice PresidentLoan Administration

MIKE CHENEYSenior Vice PresidentSpecial Projects

BRENT HAMMET TSenior Vice President Loan Review

SANDRA MEADSenior Vice President Marketing

MANNY MORALESSenior Vice PresidentOperations

J. KEVIN BALLARDVice President Employee Development

JACK CLARKE II IVice PresidentOperations

RUSSELL DILLON IIVice President Commercial Loans

BARBARA EVANSVice PresidentCompliance

ELVA MURILLOVice PresidentOperations

DEANNA SCHROEDERVice PresidentSpecial Projects

ROSE TERPENINGVice PresidentComptroller

KRISTINA AGUIRREAssistant Vice PresidentHuman Resources

DORIS GARCIAAssistant Vice PresidentCompliance

CRYSTAL KLOPFERAssistant Vice PresidentCredit Analysis

BET TY LOMELIAssistant Vice PresidentSpecial Assets

SUZETTE MCFATRIDGEAssistant Vice PresidentCompliance

JULIAN SALAZARAssistant Vice PresidentTreasury Management

ANGELICA TORRESAssistant Vice PresidentMarketing

IRENE VALENZUELAAssistant Vice PresidentCompliance

APRIL CARRASCODeposit Operations Officer

F I R S T A M E R I C A N B A N KOFFICERS - ADMINISTRATION

L A S C R U C E S , N E W M E X I CO

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CARLSBAD

NEAL BLEDSOESenior Vice President Commercial Loans

EL PASO, TX

ARMANDO MORENOSenior Vice President Commercial Loans

GRANT COUNTY

JOEL SCHRAMMarket President

MELANIE GOMEZAssistant Vice PresidentCommercial Loans

GERALDINE CASTILLOBranch Manager – Silver City

DIANE TORREZBranch Manager – Bayard

HOBBS

BRET MOODYMarket President

DAVID WIBERGSenior Vice PresidentCommercial Loans

LAS CRUCES

FARRAH MARQUEZSenior Vice President Managing Officer

PAUL FIERROVice President Senior Operations Officer

DAVID MEDINAVice PresidentCommercial Loans

ANA MANGINOVice PresidentBusiness Development

BILLIE HOODBranch Manager - Lohman

ALBUQUERQUEMETRO

GEOFF WAGNERMarket President

ARTESIA & ROSWELL

JOHN BAINMarket President

ARTESIA

RAY WITHERSSenior Vice PresidentCommercial Loans

AREN DADECommercial Loan Officer

ANGELICA RODRIGUEZBranch Manager

ROSWELL

MARY FEATHERSTONESenior Vice PresidentCommercial Loans

KRIS HOLLOWAYVice PresidentCommercial Loans

F I R S T A M E R I C A N B A N KOFFICERS

CHRIS SANDERSVice President Division Manager

CYNTHIA GREENSenior Vice President Division Manager

GAYATHRY ABRAHAMVice President Operations Manager

JOHN AT TWOODVice PresidentTrust Officer

MARIANNE GILLESPIEVice President Trust Officer

CHARLES KASSICIEH Vice PresidentPortfolio Manager

DIANA MASONVice President Trust Officer

SUE MCGEE-CHIODINIVice PresidentTrust Officer

BRIT T PORTERVice PresidentTrust Officer

JONATHON HERRERA Portfolio Manager

F I R S T A M E R I C A N B A N KOFFICERS

TRUST & WEALTH MANAGEMENTLOVINGTON

DAVID CAMPBELLMarket President

PASHA MYRICKBranch Manager

OTERO COUNTY

JOE BULLOCKMarket President

ALAMOGORDO

PHILLIP GUTIERREZVice President Commercial Loans

DOREEN PADILLAAssistant Vice President Branch Manager

CHAPARRAL

IMELDA QUINTANAAssistant Vice PresidentBranch Manager

MORTGAGE

LAS CRUCES, NM223 E. Idaho Ave.

ALAMOGORDO1300 N. White Sands Blvd.

ALBUQUERQUE8110 Ventura NE

4301 The 25 Way NE

ARTESIA303 W. Main St.

BAYARD1401 Tom Foy Blvd.

CARLSBAD 2201 W. Pierce St.

CHAPARRAL 324 McCombs Rd.

HOBBS 1220 W. Joe Harvey Blvd.

600 W. Bender, Drive-Up

LAS CRUCES 2145 E. Lohman Ave.

1553 Avenida de Mesilla

LOVINGTON 19 W. Washington Ave.

RIO RANCHO 3002 Southern Blvd. SE

ROSWELL 111 E. Fifth St.

3220 N. Main St.

SILVER CITY 1609 N. Swan St.

800-289-6140

firstamericanbanknm.com

RIO RICO, AZ14 Esplendor Dr, Suite D

RUIDOSO, NM2825 Sudderth Dr, Suite I

BANKING CENTERS

MORTGAGE OFFICES

LO C AT I O N S

L A S C R U C E S , N E W M E X I CO

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P H OTO C R E D I T S

RUIDOSO, NM

EDDY COUNTY, NM

ARTESIA, NM

WHITE SANDS NATIONAL PARK, NMDR. J. BALLARD JOEL MILLER

DR. J. BALLARD

DR. J. KEVIN BALLARD

ROSWELL, NM LAS CRUCES, NMDR. J. BALLARDNALEHUA WISE-HURST ANGELICA TORRES

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