ABA Banking Journal - November/December 2017 - 22

COVER STORY > NEW ABA CHAIRMAN

BURGESS DISCUSSES BUILDING PLANS
WITH A COMMERCIAL LOAN CUSTOMER.

Banking 'in the blood'

BURGESS GREETS INVESTORS AT FIRST BANCSHARES'
ANNUAL SHAREHOLDER MEETING.

Kenneth L. Burgess Jr. is the oldest of three sons of a West
Texas farmer. "When I was about six years old, my dad
handed me a hoe and had us out working on the farm,"
Burgess remembers. It was hard, hot, dusty work, but
the boys had fun too. (Ken's gifts for both leadership and
numbers manifested early on when the Burgess brothers
and the neighborhood boys would get together to play
tabletop football games, says middle brother Greg. "Ken set
himself up as the NFL commissioner for our neighborhood,"
keeping the stats across all the teams in the "conference.")

Ken met his future wife, Cathy, when they were both working
in Midland after college, and they married in 1980. (Cathy is
the yin to Ken's yang; her effusiveness and infectious laugh
balance Ken's quiet reserve and dry wit.) The family banking
tradition continued with the Burgesses' three now-grown
kids. Kenneth III, known as "KB3," runs FirstCapital Bank's
loan review function from Amarillo. Their daughter, Brittany
Livingston, was a credit analyst at a bank in the Dallas area
before she and her husband opened a chain of bakery
cafes. And their younger son, Will-a musician whom Ken
and Cathy never thought would be interested in banking-
this spring started work at a community bank in Nashville.

When Ken was in eighth grade, his father changed
careers in a way that would transform the family. With his
farming experience, Kenneth Sr. became an ag lender at a
community bank and swiftly rose to be bank president.

"It's kind of been a family business for us," Ken says. "It's
been a little in the blood."

As a result, "I had the opportunity to work in air conditioning
in a bank," Burgess jokes. "I saw that as a job that I would
really enjoy." After studying accounting at Texas Tech in
Lubbock, Burgess went to work for First National in Midland
in 1979. His two younger brothers, Greg and Brad, also
ended up working for banks in Amarillo and Lubbock,
respectively, with both eventually joining Ken at FirstCapital
Bank. In 2001, Greg led a team in opening up the Amarillo
market for FirstCapital Bank; in 2007, Brad launched the
bank in Lubbock and is today CEO.
Ken is quick to point out that FirstCapital Bank is not a
family-owned bank; Burgess family members own no
more than about 8 percent of it. But having family ties in
the management team has helped it to function well, Greg
says. "Ken early on said, 'You need to be able to ask me
questions. You need to critique me. You need to point things
out because you can'-meaning that because I'm a brother,
I can do that." And each of the brothers brings unique
strengths to their work.
22

ABA BANKING JOURNAL | NOVEMBER/DECEMBER 2017

Shaking things up
Burgess cut his teeth as a banker during the oil collapse
in the 1980s and the ongoing fallout from the savings and
loan crisis into the 1990s. He spent a decade dealing with
workouts and bad loans. "It wasn't a lot of fun at the time
but as I look back on it now, it's probably some of the best
experience that I could have ever had," he says. Even as
the economy recovered-and, in Texas, came to soar-he
never forgot the lessons of his early days. "It taught me what
to look for and what to avoid, and to try to minimize the
possibility of loans going bad because you can see things in
businesses," he says.
Burgess' instincts were tested over the past few years,
as oil soared again. From 2011 to 2014, oil prices held
to a plateau of around $80-100 per barrel. Midland saw
unbelievable growth as workers poured into the Permian
basin; new homes and apartments couldn't keep up with
the growing workforce. Salaries skyrocketed as oil producers
and oilfield services firms competed for workers, and as
other businesses competed too.



Table of Contents for the Digital Edition of ABA Banking Journal - November/December 2017

Chairman’s View
Upfront
Legal Briefs
Economic Outlook
Power Up Profile
Pitching In
Choices and Options Down on the Farm
Eager or Not, Every Board Needs an M&A Strategy
Adapting to Survive
More Than Just a Drink
Operations
Payments
Small Business Lending
Human Resources
ABA Compliance Center Inbox
From the States
Corporate Social Responsibility
Index of Advertisers
From the Vault
ABA Banking Journal - November/December 2017 - Intro
ABA Banking Journal - November/December 2017 - ebelly1
ABA Banking Journal - November/December 2017 - ebelly2
ABA Banking Journal - November/December 2017 - cover1
ABA Banking Journal - November/December 2017 - cover2
ABA Banking Journal - November/December 2017 - 3
ABA Banking Journal - November/December 2017 - 4
ABA Banking Journal - November/December 2017 - 5
ABA Banking Journal - November/December 2017 - 6
ABA Banking Journal - November/December 2017 - 7
ABA Banking Journal - November/December 2017 - Chairman’s View
ABA Banking Journal - November/December 2017 - 9
ABA Banking Journal - November/December 2017 - Upfront
ABA Banking Journal - November/December 2017 - 11
ABA Banking Journal - November/December 2017 - 12
ABA Banking Journal - November/December 2017 - 13
ABA Banking Journal - November/December 2017 - 14
ABA Banking Journal - November/December 2017 - 15
ABA Banking Journal - November/December 2017 - Legal Briefs
ABA Banking Journal - November/December 2017 - 17
ABA Banking Journal - November/December 2017 - Economic Outlook
ABA Banking Journal - November/December 2017 - Power Up Profile
ABA Banking Journal - November/December 2017 - Pitching In
ABA Banking Journal - November/December 2017 - 21
ABA Banking Journal - November/December 2017 - 22
ABA Banking Journal - November/December 2017 - 23
ABA Banking Journal - November/December 2017 - 24
ABA Banking Journal - November/December 2017 - 25
ABA Banking Journal - November/December 2017 - Choices and Options Down on the Farm
ABA Banking Journal - November/December 2017 - 27
ABA Banking Journal - November/December 2017 - Eager or Not, Every Board Needs an M&A Strategy
ABA Banking Journal - November/December 2017 - 29
ABA Banking Journal - November/December 2017 - Adapting to Survive
ABA Banking Journal - November/December 2017 - 31
ABA Banking Journal - November/December 2017 - 32
ABA Banking Journal - November/December 2017 - 33
ABA Banking Journal - November/December 2017 - More Than Just a Drink
ABA Banking Journal - November/December 2017 - 35
ABA Banking Journal - November/December 2017 - Operations
ABA Banking Journal - November/December 2017 - 37
ABA Banking Journal - November/December 2017 - Payments
ABA Banking Journal - November/December 2017 - 39
ABA Banking Journal - November/December 2017 - Small Business Lending
ABA Banking Journal - November/December 2017 - 41
ABA Banking Journal - November/December 2017 - Human Resources
ABA Banking Journal - November/December 2017 - 43
ABA Banking Journal - November/December 2017 - 44
ABA Banking Journal - November/December 2017 - ABA Compliance Center Inbox
ABA Banking Journal - November/December 2017 - From the States
ABA Banking Journal - November/December 2017 - 47
ABA Banking Journal - November/December 2017 - Corporate Social Responsibility
ABA Banking Journal - November/December 2017 - Index of Advertisers
ABA Banking Journal - November/December 2017 - From the Vault
ABA Banking Journal - November/December 2017 - cover3
ABA Banking Journal - November/December 2017 - cover4
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