First National Bank of Hico Banking the way neighbors do it.

First National Bank of Hico

Banking the way neighbors do it.

Latest Articles

An Inventory of What You Own: Collateral Realities for Rural Texas Borrowers
Community Banking

An Inventory of What You Own: Collateral Realities for Rural Texas Borrowers

In a small Texas town, collateral is often a working pickup, a tractor, a herd, or a family place. A community lender looks past the hopeful number and asks quieter questions: Is the title clean, is the asset already pledged, and does the valuation reflect what the property would truly bring? This guide walks through the collateral conversations rural borrowers are most likely to have in 2026.
The Ground Gives No Water: Financing Well and Septic Repairs on a Rural Texas Homestead
Home Loans

The Ground Gives No Water: Financing Well and Septic Repairs on a Rural Texas Homestead

A failed well pump or septic system rarely arrives at a convenient time, and standard homeowners insurance seldom pays for the repair. This guide compares reserves, short-term personal loans, home equity lines, and contractor payment plans for rural Texas homeowners who need a practical way forward.
When the Tax Bill Arrives: A Homeowner’s Guide to Escrow Adjustments
Home Loans

When the Tax Bill Arrives: A Homeowner’s Guide to Escrow Adjustments

Your mortgage principal and interest may stay fixed while the escrow portion moves. This guide explains how an escrow analysis works, why a cushion differs from a shortage, and what Central Texas homeowners should ask before the next payment change takes effect.
The Note Comes Due on Schedule: A Borrower’s Six-Month Runway to Maturity
Community Banking

The Note Comes Due on Schedule: A Borrower’s Six-Month Runway to Maturity

A balloon payment is a scheduled event, not an accident. For Texas business owners and farm operators, the six months before a note matures are the best opportunity to gather records, test cash flow, and negotiate from strength rather than urgency.
A Clean Handoff: Changing Banks Without a Missed Draft or a Double Payment
Community Banking

A Clean Handoff: Changing Banks Without a Missed Draft or a Double Payment

Changing banks is less about speed than sequence. A written inventory, a deliberate overlap between accounts, and a local banker who knows the small details can prevent missed paychecks, duplicate drafts, and the quiet complications that linger after a switch.
The Recipe, the Ledger, and the Lease: Financing a Main Street Business Purchase
Community Banking

The Recipe, the Ledger, and the Lease: Financing a Main Street Business Purchase

Purchasing an established diner or shop from a retiring owner is part sale and part stewardship. This guide explains valuation, seller financing, SBA loan basics, earn-outs, and due diligence, and why a local banker's read on the deal matters as much as the asking price.
A New Letterhead, the Same Ledger: A Practical Guide to Community Bank Mergers
Community Banking

A New Letterhead, the Same Ledger: A Practical Guide to Community Bank Mergers

When a small-town bank changes hands, the paperwork can feel impersonal even when the relationships behind it are not. This guide explains what typically stays the same, what may change, and the questions customers should ask in the first 30 days.
The Second Set of Eyes: A Treasurer's Guide to Guarding a Small-Town Organization's Money
Community Banking

The Second Set of Eyes: A Treasurer's Guide to Guarding a Small-Town Organization's Money

Every church, 4-H club, and volunteer fire department in rural Texas has one officer who keeps the books—usually a volunteer with no accounting background and no appetite for the job. This guide covers dual control, designated funds, cash-handling routines, and a simple reconciliation loop that protects both the organization's money and the volunteer who watches over it.
The Feed Bucket and the Balance Sheet: Budgeting a First Stock Show Project in Central Texas
Community Banking

The Feed Bucket and the Balance Sheet: Budgeting a First Stock Show Project in Central Texas

A first 4-H or FFA livestock project can teach a young person more than how to fit an animal for show—it can teach the discipline of a budget. This guide walks Central Texas families through the real costs, the limits of borrowing, and how to keep the barn budget from spilling into the household ledger.
Passing the Wrench: A Retirement Blueprint for Texas Hardware Store Owners
Community Banking

Passing the Wrench: A Retirement Blueprint for Texas Hardware Store Owners

For a longtime Main Street hardware owner, retirement raises a harder question than price: who will keep the doors open and the shelves stocked? This guide outlines valuation, buyer qualification, financing choices, and a transition structure that protects the business, the employees, and the town it serves.
A Trusted Hand, Not a Second Owner: Setting Up Banking Help for an Aging Parent
Community Banking

A Trusted Hand, Not a Second Owner: Setting Up Banking Help for an Aging Parent

When an aging parent needs help with deposits, bills, and statements, the right banking authority matters as much as the willingness to help. This guide explains joint accounts, authorized signers, and powers of attorney so families in rural Texas can choose the narrowest authority that fits the task.
Weekend Receipts, Weekday Discipline: Safeguarding Cash from Friday Close to Monday Ledger
Community Banking

Weekend Receipts, Weekday Discipline: Safeguarding Cash from Friday Close to Monday Ledger

Cash collected after the Friday lobby closes still needs a plan. This guide compares night depository service, mobile deposit limits, dual-count procedures, and temporary safekeeping for Texas merchants, church treasurers, and event vendors, with a Monday reconciliation checklist to reduce loss and fraud.
The Second Signature: Weighing a Co-Signing Request in a Small Texas Town
Community Banking

The Second Signature: Weighing a Co-Signing Request in a Small Texas Town

A request to co-sign a loan can arrive over a kitchen table, at the feed store, or after church, and it often feels unneighborly to hesitate. Yet a second signature is a real financial obligation, not simply a vote of confidence. This guide explains what co-signing and guaranteeing mean, what a community bank reviews, and how to help without signing blindly.
Two Loans, Two Ledgers: How the Purpose of Your Borrowing Shapes Your Terms
Community Banking

Two Loans, Two Ledgers: How the Purpose of Your Borrowing Shapes Your Terms

A tractor and a pickup may cost about the same at the dealer, but a lender sees them very differently. Here's a plain explanation of collateral, depreciation, and loan-to-value ratios — and why matching the right loan to the right purchase can save a rural borrower real money.
When the Hobby Starts Paying: Getting Your Side Income in Order
Community Banking

When the Hobby Starts Paying: Getting Your Side Income in Order

Selling saddles online or catering a few weekend barbecues can turn serious before you notice. Here's how Central Texans can tell when a side income deserves its own account, its own records, and maybe its own name.
Five Checking Account Choices That Sink New Businesses Before They Start
Community Banking

Five Checking Account Choices That Sink New Businesses Before They Start

Opening a business checking account seems like the simplest step in launching a company — and it is often where new Texas entrepreneurs make their costliest mistakes. From commingled funds to overlooked credit access, here are five decisions worth getting right the first time.
When the Hail Comes in May: Right-Sizing a Reserve Fund for Rural Texas Life
Community Banking

When the Hail Comes in May: Right-Sizing a Reserve Fund for Rural Texas Life

The standard advice to keep three to six months of expenses in savings assumes a steady paycheck and predictable costs. For households and small operations across Central Texas, one hailstorm, dry spell, or dead tractor can upend that math. Here is how to build a reserve that matches the way money actually moves in the country.
A Ledger for the Little Ones: Passing Down Savings Habits, Not Just Savings
Community Banking

A Ledger for the Little Ones: Passing Down Savings Habits, Not Just Savings

Grandparents across Erath and Hamilton counties ask us the same question: how do I help my grandkids without stirring up trouble with their parents? This guide walks through custodial accounts, gifting etiquette, and the quiet power of a conversation held before the paperwork is signed.
Before the Separator Pump Starts Paying: A Landowner's Plan for Irregular Royalty Income
Home Loans

Before the Separator Pump Starts Paying: A Landowner's Plan for Irregular Royalty Income

Mineral royalties can transform a household budget overnight — but the checks rarely arrive on a schedule, and the tax bill certainly does. Here is how Erath County landowners can turn unpredictable oil and gas income into a stable financial footing.
Before the Whole Family Gathers: Getting Your Affairs, Accounts, and Intentions in Order
Home Loans

Before the Whole Family Gathers: Getting Your Affairs, Accounts, and Intentions in Order

Land, businesses, and savings accounts don't transfer themselves — and too many Texas families discover that too late. A plain guide to the documents, conversations, and account arrangements that keep a legacy intact across generations.