Kansas | 26-3212879 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
11440 Tomahawk Creek Parkway | ||||||||||||||
Leawood, | KS | 66211 | ||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Common Stock, par value $0.01 per share | CFB | The Nasdaq Stock Market LLC | ||||||||||||
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☒ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☒ |
Part I. Financial Information | |||||||||
Item 1. | Financial Statements | ||||||||
Notes to Consolidated Financial Statements | |||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||
Part II. Other Information | |||||||||
Signatures | |||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
(Unaudited) | |||||||||||
(Dollars in thousands) | |||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 223,636 | $ | 187,320 | |||||||
Available-for-sale securities - taxable | 214,735 | 298,208 | |||||||||
Available-for-sale securities - tax-exempt | 437,411 | 443,426 | |||||||||
Loans, net of allowance for loan losses of $76,035 and $56,896 at September 30, 2020 and December 31, 2019, respectively | 4,401,774 | 3,795,348 | |||||||||
Premises and equipment, net | 70,599 | 70,210 | |||||||||
Restricted equity securities | 20,923 | 17,278 | |||||||||
Interest receivable | 19,003 | 15,716 | |||||||||
Foreclosed assets held for sale | 2,349 | 3,619 | |||||||||
Deferred tax asset | 15,864 | 13,782 | |||||||||
Goodwill and other intangible assets, net | 227 | 7,694 | |||||||||
Bank-owned life insurance | 67,063 | 65,689 | |||||||||
Other | 32,112 | 12,943 | |||||||||
Total assets | $ | 5,505,696 | $ | 4,931,233 | |||||||
Liabilities and stockholders’ equity | |||||||||||
Deposits | |||||||||||
Noninterest-bearing | $ | 754,172 | $ | 521,826 | |||||||
Savings, NOW and money market | 2,597,691 | 2,162,187 | |||||||||
Time | 1,140,686 | 1,239,746 | |||||||||
Total deposits | 4,492,549 | 3,923,759 | |||||||||
Federal funds purchased and repurchase agreements | 13,531 | 14,921 | |||||||||
Federal Home Loan Bank advances | 336,100 | 358,743 | |||||||||
Other borrowings | 952 | 921 | |||||||||
Interest payable and other liabilities | 44,681 | 31,245 | |||||||||
Total liabilities | 4,887,813 | 4,329,589 | |||||||||
Stockholders’ equity | |||||||||||
Redeemable preferred stock, $0.01 par value, $25.00 liquidation value: | |||||||||||
authorized - 5,000,000 shares, issued - 0 shares at September 30, 2020 and December 31, 2019, respectively | 0 | 0 | |||||||||
Common stock, $0.01 par value: | |||||||||||
authorized - 200,000,000 shares, issued - 52,195,778 and 51,969,203 shares at September 30, 2020 and December 31, 2019, respectively | 521 | 520 | |||||||||
Additional paid-in capital | 522,226 | 519,870 | |||||||||
Retained earnings | 69,355 | 64,803 | |||||||||
Accumulated other comprehensive income | 25,781 | 16,451 | |||||||||
Total stockholders’ equity | 617,883 | 601,644 | |||||||||
Total liabilities and stockholders’ equity | $ | 5,505,696 | $ | 4,931,233 |
September 30, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 128,126 | $ | 216,541 | |||
Available for sale securities - taxable | 323,531 | 296,133 | |||||
Available for sale securities - tax-exempt | 409,562 | 367,545 | |||||
Premises and equipment, held for sale | — | 3,444 | |||||
Loans, net of allowance for loan losses of $42,995 and $37,826 at September 30, 2019 and December 31, 2018, respectively | 3,586,797 | 3,022,921 | |||||
Premises and equipment, net | 71,314 | 74,945 | |||||
Restricted equity securities | 16,053 | 14,525 | |||||
Interest receivable | 15,909 | 14,092 | |||||
Foreclosed assets held for sale | 2,471 | — | |||||
Deferred tax asset | 7,429 | 16,316 | |||||
Goodwill and other intangible assets, net | 7,720 | 7,796 | |||||
Bank-owned life insurance | 65,228 | 63,811 | |||||
Other | 17,173 | 9,146 | |||||
Total assets | $ | 4,651,313 | $ | 4,107,215 | |||
Liabilities and stockholders’ equity | |||||||
Deposits | |||||||
Non-interest bearing | $ | 513,832 | $ | 484,284 | |||
Savings, NOW and money market | 1,922,522 | 1,714,136 | |||||
Time | 1,221,754 | 1,009,677 | |||||
Total deposits | 3,658,108 | 3,208,097 | |||||
Federal funds purchased and repurchase agreements | 49,810 | 75,406 | |||||
Federal Home Loan Bank advances | 307,804 | 312,985 | |||||
Other borrowings | 912 | 884 | |||||
Interest payable and other liabilities | 32,244 | 19,507 | |||||
Total liabilities | 4,048,878 | 3,616,879 | |||||
Stockholders’ equity | |||||||
Redeemable preferred stock, $0.01 par value, $25 liquidation value: | |||||||
authorized - 5,000,000 shares, issued - 0 and 1,200,000 shares at September 30, 2019 and December 31, 2018, respectively | — | 12 | |||||
Common stock, $0.01 par value: | |||||||
authorized - 200,000,000 shares, issued - 51,969,203 and 45,074,322 shares at September 30, 2019 and December 31, 2018, respectively | 520 | 451 | |||||
Additional paid-in capital | 518,816 | 454,512 | |||||
Retained earnings | 65,282 | 38,567 | |||||
Other | (84 | ) | (196 | ) | |||
Accumulated other comprehensive income (loss) | 17,901 | (3,010 | ) | ||||
Total stockholders’ equity | 602,435 | 490,336 | |||||
Total liabilities and stockholders’ equity | $ | 4,651,313 | $ | 4,107,215 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Loans, including fees | $ | 43,929 | $ | 49,327 | $ | 138,591 | $ | 142,319 | |||||||||||||||
Available-for-sale securities - taxable | 1,042 | 1,991 | 4,174 | 6,646 | |||||||||||||||||||
Available-for-sale securities - tax-exempt | 3,186 | 2,969 | 9,758 | 8,820 | |||||||||||||||||||
Deposits with financial institutions | 47 | 970 | 583 | 2,452 | |||||||||||||||||||
Dividends on bank stocks | 248 | 272 | 808 | 801 | |||||||||||||||||||
Total interest income | 48,452 | 55,529 | 153,914 | 161,038 | |||||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Deposits | 7,298 | 18,003 | 29,975 | 51,421 | |||||||||||||||||||
Fed funds purchased and repurchase agreements | 54 | 74 | 162 | 501 | |||||||||||||||||||
Federal Home Loan Bank Advances | 1,749 | 1,629 | 4,980 | 4,739 | |||||||||||||||||||
Other borrowings | 24 | 37 | 85 | 112 | |||||||||||||||||||
Total interest expense | 9,125 | 19,743 | 35,202 | 56,773 | |||||||||||||||||||
Net Interest Income | 39,327 | 35,786 | 118,712 | 104,265 | |||||||||||||||||||
Provision for Loan Losses | 10,875 | 4,850 | 45,825 | 10,550 | |||||||||||||||||||
Net Interest Income after Provision for Loan Losses | 28,452 | 30,936 | 72,887 | 93,715 | |||||||||||||||||||
Non-Interest Income | |||||||||||||||||||||||
Service charges and fees on customer accounts | 792 | 72 | 1,947 | 441 | |||||||||||||||||||
Gain on sale of available-for-sale debt securities | 1,012 | 34 | 1,725 | 467 | |||||||||||||||||||
Impairment of premises and equipment held for sale | 0 | 0 | 0 | (424) | |||||||||||||||||||
Gain on sale of loans | 0 | 49 | 0 | 207 | |||||||||||||||||||
Income from bank-owned life insurance | 464 | 476 | 1,373 | 1,416 | |||||||||||||||||||
Swap fee income, net | 121 | 1,879 | 80 | 2,415 | |||||||||||||||||||
ATM and credit card interchange income | 1,482 | 476 | 2,863 | 1,312 | |||||||||||||||||||
Other non-interest income | 192 | 226 | 804 | 695 | |||||||||||||||||||
Total non-interest income | 4,063 | 3,212 | 8,792 | 6,529 | |||||||||||||||||||
Non-Interest Expense | |||||||||||||||||||||||
Salaries and employee benefits | 14,628 | 14,256 | 43,022 | 43,296 | |||||||||||||||||||
Occupancy | 2,144 | 2,080 | 6,274 | 6,301 | |||||||||||||||||||
Professional fees | 1,132 | 427 | 3,098 | 1,923 | |||||||||||||||||||
Deposit insurance premiums | 1,096 | 302 | 3,151 | 2,020 | |||||||||||||||||||
Data processing | 652 | 649 | 2,065 | 1,868 | |||||||||||||||||||
Advertising | 147 | 580 | 870 | 1,770 | |||||||||||||||||||
Software and communication | 959 | 900 | 2,772 | 2,407 | |||||||||||||||||||
Foreclosed assets, net | 20 | 8 | 1,174 | 33 | |||||||||||||||||||
Goodwill impairment | 0 | 0 | 7,397 | 0 | |||||||||||||||||||
Other non-interest expense | 2,233 | 1,970 | 6,421 | 6,145 | |||||||||||||||||||
Total non-interest expense | 23,011 | 21,172 | 76,244 | 65,763 | |||||||||||||||||||
Net Income Before Taxes | 9,504 | 12,976 | 5,435 | 34,481 | |||||||||||||||||||
Income tax expense | 1,498 | 2,592 | 928 | 5,308 | |||||||||||||||||||
Net Income | $ | 8,006 | $ | 10,384 | $ | 4,507 | $ | 29,173 | |||||||||||||||
Basic Earnings Per Share | $ | 0.15 | $ | 0.22 | $ | 0.09 | $ | 0.63 | |||||||||||||||
Diluted Earnings Per Share | $ | 0.15 | $ | 0.21 | $ | 0.09 | $ | 0.61 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||
Interest Income | |||||||||||||||
Loans, including fees | $ | 49,327 | $ | 34,012 | $ | 142,319 | $ | 89,262 | |||||||
Available for sale securities - Taxable | 1,991 | 2,200 | 6,646 | 5,729 | |||||||||||
Available for sale securities - Tax-exempt | 2,969 | 3,586 | 8,820 | 11,622 | |||||||||||
Deposits with financial institutions | 970 | 723 | 2,452 | 2,481 | |||||||||||
Dividends on bank stocks | 272 | 254 | 801 | 718 | |||||||||||
Total interest income | 55,529 | 40,775 | 161,038 | 109,812 | |||||||||||
Interest Expense | |||||||||||||||
Deposits | 18,003 | 9,999 | 51,421 | 26,639 | |||||||||||
Fed funds purchased and repurchase agreements | 74 | 287 | 501 | 628 | |||||||||||
Advances from Federal Home Loan Bank | 1,629 | 1,468 | 4,739 | 4,308 | |||||||||||
Other borrowings | 37 | 53 | 112 | 184 | |||||||||||
Total interest expense | 19,743 | 11,807 | 56,773 | 31,759 | |||||||||||
Net Interest Income | 35,786 | 28,968 | 104,265 | 78,053 | |||||||||||
Provision for Loan Losses | 4,850 | 3,000 | 10,550 | 9,000 | |||||||||||
Net Interest Income after Provision for Loan Losses | 30,936 | 25,968 | 93,715 | 69,053 | |||||||||||
Non-Interest Income | |||||||||||||||
Service charges and fees (rebates) on customer accounts | 72 | (100 | ) | 441 | 506 | ||||||||||
Gain on sale of available for sale securities | 34 | 195 | 467 | 608 | |||||||||||
Impairment of premises and equipment held for sale | — | (171 | ) | (424 | ) | (171 | ) | ||||||||
Gain on sale of loans | 49 | 25 | 207 | 618 | |||||||||||
Income from bank-owned life insurance | 476 | 513 | 1,416 | 1,511 | |||||||||||
Swap fee income, net | 1,879 | 253 | 2,415 | 299 | |||||||||||
ATM and credit card interchange income | 476 | 301 | 1,312 | 827 | |||||||||||
Other non-interest income | 226 | 169 | 695 | 690 | |||||||||||
Total non-interest income | 3,212 | 1,185 | 6,529 | 4,888 | |||||||||||
Non-Interest Expense | |||||||||||||||
Salaries and employee benefits | 14,256 | 12,652 | 43,296 | 43,689 | |||||||||||
Occupancy | 2,080 | 2,132 | 6,301 | 6,199 | |||||||||||
Professional fees | 427 | 766 | 1,923 | 2,421 | |||||||||||
Deposit insurance premiums | 302 | 823 | 2,020 | 2,411 | |||||||||||
Data processing | 649 | 528 | 1,868 | 1,470 | |||||||||||
Advertising | 580 | 527 | 1,770 | 1,982 | |||||||||||
Software and communication | 900 | 630 | 2,407 | 1,958 | |||||||||||
Depreciation and amortization | 413 | 516 | 1,320 | 1,306 | |||||||||||
Other non-interest expense | 1,565 | 1,301 | 4,858 | 4,153 | |||||||||||
Total non-interest expense | 21,172 | 19,875 | 65,763 | 65,589 | |||||||||||
Net Income Before Taxes | 12,976 | 7,278 | 34,481 | 8,352 | |||||||||||
Income tax expense (benefit) | 2,592 | 924 | 5,308 | (904 | ) | ||||||||||
Net Income | $ | 10,384 | $ | 6,354 | $ | 29,173 | $ | 9,256 | |||||||
Basic Earnings Per Share(1) | $ | 0.22 | $ | 0.15 | $ | 0.63 | $ | 0.23 | |||||||
Diluted Earnings Per Share(1) | $ | 0.21 | $ | 0.15 | $ | 0.61 | $ | 0.22 | |||||||
(1) Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Net Income | $ | 8,006 | $ | 10,384 | $ | 4,507 | $ | 29,173 | |||||||||||||||
Other Comprehensive Income | |||||||||||||||||||||||
Unrealized gain on available-for-sale debt securities | 1,923 | 5,757 | 14,073 | 28,084 | |||||||||||||||||||
Less: income tax | 472 | 1,410 | 3,440 | 6,890 | |||||||||||||||||||
Unrealized gain on available-for-sale debt securities, net of income tax | 1,451 | 4,347 | 10,633 | 21,194 | |||||||||||||||||||
Reclassification adjustment for realized gains included in income | 1,012 | 34 | 1,725 | 467 | |||||||||||||||||||
Less: income tax | 248 | 9 | 422 | 115 | |||||||||||||||||||
Less: reclassification adjustment for realized gains included in income, net of income tax | 764 | 25 | 1,303 | 352 | |||||||||||||||||||
Other comprehensive income | 687 | 4,322 | 9,330 | 20,842 | |||||||||||||||||||
Comprehensive Income | $ | 8,693 | $ | 14,706 | $ | 13,837 | $ | 50,015 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Net Income | $ | 10,384 | $ | 6,354 | $ | 29,173 | $ | 9,256 | |||||||
Other Comprehensive Income (Loss) | |||||||||||||||
Unrealized gain (loss) on available-for-sale securities | 5,757 | (6,592 | ) | 28,084 | (22,062 | ) | |||||||||
Less: income tax (benefit) | 1,410 | (1,620 | ) | 6,890 | (5,414 | ) | |||||||||
Unrealized gain (loss) on available-for-sale securities, net of income tax (benefit) | 4,347 | (4,972 | ) | 21,194 | (16,648 | ) | |||||||||
Reclassification adjustment for realized gains included in income | 34 | 195 | 467 | 608 | |||||||||||
Less: income tax | 9 | 47 | 115 | 149 | |||||||||||
Less: reclassification adjustment for realized gains included in income, net of income tax | 25 | 148 | 352 | 459 | |||||||||||
Other comprehensive income (loss) | 4,322 | (5,120 | ) | 20,842 | (17,107 | ) | |||||||||
Comprehensive Income (Loss) | $ | 14,706 | $ | 1,234 | $ | 50,015 | $ | (7,851 | ) |
Accumulated | |||||||||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Retained | Comprehensive | |||||||||||||||||||||||||||||
Shares | Amount | Shares(1) | Amount(1) | Capital | Earnings(1) | Other | Income (Loss) | Total | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | 1,200,000 | $ | 12 | 35,496,278 | $ | 355 | $ | 321,544 | $ | 25,778 | $ | (191 | ) | $ | (4,961 | ) | $ | 342,537 | |||||||||||||||
Net income | — | — | — | — | — | 6,354 | — | — | 6,354 | ||||||||||||||||||||||||
Change in unrealized depreciation on available-for-sale securities | — | — | — | — | — | — | — | (5,120 | ) | (5,120 | ) | ||||||||||||||||||||||
Issuance of shares | — | — | 5,031,110 | 50 | 69,733 | (25 | ) | — | — | 69,758 | |||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Retired shares | — | — | (265,908 | ) | (3 | ) | (2,534 | ) | (1,253 | ) | — | — | (3,790 | ) | |||||||||||||||||||
Preferred dividends declared | — | — | — | — | — | (525 | ) | — | — | (525 | ) | ||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 2 | — | (1 | ) | — | 1 | |||||||||||||||||||||||
Share-based compensation | — | — | — | — | 527 | — | — | — | 527 | ||||||||||||||||||||||||
Employee stock purchase plan additions | — | — | — | — | 38 | — | — | — | 38 | ||||||||||||||||||||||||
Balance at September 30, 2018 | 1,200,000 | $ | 12 | 40,261,480 | $ | 402 | $ | 389,310 | $ | 30,329 | $ | (192 | ) | $ | (10,081 | ) | $ | 409,780 |
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Retained | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Income | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | — | $ | — | 45,367,641 | $ | 453 | $ | 430,347 | $ | 54,899 | $ | (83 | ) | $ | 13,579 | $ | 499,195 | Balance at June 30, 2019 | 0 | $ | 0 | 45,367,641 | $ | 453 | $ | 430,347 | $ | 54,816 | $ | 13,579 | $ | 499,195 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 10,384 | — | — | 10,384 | Net income | — | — | — | — | — | 10,384 | — | 10,384 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | 4,322 | 4,322 | Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | 4,322 | 4,322 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares | — | — | 6,600,245 | 67 | 87,154 | (1 | ) | — | — | 87,220 | Issuance of shares | — | — | 6,600,245 | 67 | 87,154 | (1) | — | 87,220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 1,317 | — | (10 | ) | — | — | — | (10 | ) | Issuance of shares from equity-based awards | — | — | 1,317 | — | (10) | — | — | (10) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 1 | — | (1 | ) | — | — | Employee receivables from sale of stock | — | — | — | — | 1 | (1) | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 1,324 | — | — | — | 1,324 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan additions | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | — | — | — | — | 1,324 | — | — | 1,324 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | — | $ | — | 51,969,203 | $ | 520 | $ | 518,816 | $ | 65,282 | $ | (84 | ) | $ | 17,901 | $ | 602,435 | Balance at September 30, 2019 | 0 | $ | 0 | 51,969,203 | $ | 520 | $ | 518,816 | $ | 65,198 | $ | 17,901 | $ | 602,435 |
Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Retained | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Income | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2020 | 0 | $ | 0 | 52,167,573 | $ | 521 | $ | 521,133 | $ | 61,344 | $ | 25,094 | $ | 608,092 | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 8,006 | — | 8,006 | |||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | 687 | 687 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 28,205 | — | (115) | — | — | (115) | |||||||||||||||||||||||||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 1 | 5 | — | 6 | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 1,186 | — | — | 1,186 | |||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase additions | — | — | — | — | 21 | — | — | 21 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 0 | $ | 0 | 52,195,778 | $ | 521 | $ | 522,226 | $ | 69,355 | $ | 25,781 | $ | 617,883 | |||||||||||||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Retained | Comprehensive | |||||||||||||||||||||||||||||
Shares | Amount | Shares(1) | Amount(1) | Capital | Earnings(1) | Other | Income (Loss) | Total | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | 1,200,000 | $ | 12 | 30,686,256 | $ | 307 | $ | 256,108 | $ | 23,950 | $ | (256 | ) | $ | 7,026 | $ | 287,147 | ||||||||||||||||
Net income | — | — | — | — | — | 9,256 | — | — | 9,256 | ||||||||||||||||||||||||
Change in unrealized depreciation on available-for-sale securities | — | — | — | — | — | — | (17,107 | ) | (17,107 | ) | |||||||||||||||||||||||
Issuance of shares | — | — | 9,557,054 | 95 | 132,868 | (48 | ) | — | — | 132,915 | |||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 284,078 | 3 | (1,653 | ) | (1 | ) | — | — | (1,651 | ) | |||||||||||||||||||||
Retired shares | — | — | (265,908 | ) | (3 | ) | (2,534 | ) | (1,253 | ) | — | — | (3,790 | ) | |||||||||||||||||||
Preferred dividends declared | — | — | — | — | — | (1,575 | ) | — | — | (1,575 | ) | ||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 8 | — | 64 | — | 72 | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 4,386 | — | — | — | 4,386 | ||||||||||||||||||||||||
Employee stock purchase plan additions | — | — | — | — | 127 | — | — | — | 127 | ||||||||||||||||||||||||
Balance at September 30, 2018 | 1,200,000 | $ | 12 | 40,261,480 | $ | 402 | $ | 389,310 | $ | 30,329 | $ | (192 | ) | $ | (10,081 | ) | $ | 409,780 |
Accumulated | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Retained | Comprehensive | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Income (Loss) | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | 1,200,000 | $ | 12 | 45,074,322 | $ | 451 | $ | 454,512 | $ | 38,567 | $ | (196 | ) | $ | (3,010 | ) | $ | 490,336 | Balance at December 31, 2018 | 1,200,000 | $ | 12 | 45,074,322 | $ | 451 | $ | 454,512 | $ | 38,371 | $ | (3,010) | $ | 490,336 | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | 29,173 | — | — | 29,173 | Net income | — | — | — | — | — | 29,173 | — | 29,173 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | 20,842 | 20,842 | Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | 20,842 | 20,842 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares | — | — | 6,851,213 | 68 | 88,869 | — | — | — | 88,937 | Issuance of shares | — | — | 6,851,213 | 68 | 88,869 | — | — | 88,937 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 53,668 | 1 | (246 | ) | — | — | — | (245 | ) | Issuance of shares from equity-based awards | — | — | 53,668 | 1 | (246) | — | — | (245) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retired shares | (1,200,000 | ) | (12 | ) | (10,000 | ) | — | (30,088 | ) | (55 | ) | — | (30,155 | ) | Retired shares | (1,200,000) | (12) | (10,000) | — | (30,088) | (55) | — | (30,155) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred dividends declared | — | — | — | — | — | (175 | ) | — | — | (175 | ) | Preferred dividends declared | — | — | — | — | — | (175) | — | (175) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 5 | — | 112 | — | 117 | Employee receivables from sale of stock | — | — | — | — | 5 | 112 | — | 117 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 3,569 | — | — | — | 3,569 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 36 | — | — | — | 36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | Stock-based compensation | — | — | — | — | 3,569 | — | — | 3,569 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan additions | Employee stock purchase plan additions | — | — | — | — | 36 | — | — | 36 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-01 | — | — | — | — | — | (69 | ) | — | 69 | — | Adoption of ASU 2016-01 | — | — | — | — | — | (69) | 69 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-07 | — | — | — | — | 2,159 | (2,159 | ) | — | — | — | Adoption of ASU 2018-07 | — | — | — | — | 2,159 | (2,159) | — | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2019 | — | $ | — | 51,969,203 | $ | 520 | $ | 518,816 | $ | 65,282 | $ | (84 | ) | $ | 17,901 | $ | 602,435 | Balance at September 30, 2019 | 0 | $ | 0 | 51,969,203 | $ | 520 | $ | 518,816 | $ | 65,198 | $ | 17,901 | $ | 602,435 |
Accumulated | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional | Other | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid in | Retained | Comprehensive | |||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Earnings | Income | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 0 | $ | 0 | 51,969,203 | $ | 520 | $ | 519,870 | $ | 64,803 | $ | 16,451 | $ | 601,644 | |||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 4,507 | — | 4,507 | |||||||||||||||||||||||||||||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | 9,330 | 9,330 | |||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 226,575 | 1 | (869) | — | — | (868) | |||||||||||||||||||||||||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 2 | 45 | — | 47 | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 3,202 | — | — | 3,202 | |||||||||||||||||||||||||||||||||||||||||||||
Employee stock purchase plan additions | — | — | — | — | 21 | — | — | 21 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | 0 | $ | 0 | 52,195,778 | $ | 521 | $ | 522,226 | $ | 69,355 | $ | 25,781 | $ | 617,883 | |||||||||||||||||||||||||||||||||||||||
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2020 | 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 4,507 | $ | 29,173 | |||||||
Items not requiring (providing) cash | |||||||||||
Depreciation and amortization | 3,888 | 4,015 | |||||||||
Provision for loan losses | 45,825 | 10,550 | |||||||||
Accretion of discounts and amortization of premiums on securities | 4,632 | 4,098 | |||||||||
Equity based compensation | 3,223 | 3,606 | |||||||||
Foreclosed asset impairment | 1,270 | 0 | |||||||||
Deferred income taxes | (5,098) | 2,088 | |||||||||
Net realized gains on available-for-sale debt securities | (1,725) | (467) | |||||||||
Goodwill impairment | 7,397 | 0 | |||||||||
Changes in | |||||||||||
Interest receivable | (3,287) | (1,817) | |||||||||
Other assets | (2,845) | (9,837) | |||||||||
Other liabilities | (4,599) | 13,261 | |||||||||
Net cash provided by operating activities | 53,188 | 54,670 | |||||||||
Investing Activities | |||||||||||
Net change in loans | (652,251) | (576,897) | |||||||||
Purchases of available-for-sale securities | (35,326) | (157,492) | |||||||||
Proceeds from maturities of available-for-sale securities | 102,529 | 48,658 | |||||||||
Proceeds from sale of available-for-sale securities | 31,810 | 63,515 | |||||||||
Purchase of premises and equipment | (4,849) | (649) | |||||||||
Proceeds from the sale of fixed assets | 121 | 3,324 | |||||||||
Purchase of restricted equity securities, net | (2,839) | (732) | |||||||||
Net cash used in investing activities | (560,805) | (620,273) | |||||||||
Financing Activities | |||||||||||
Net increase in demand deposits, savings, NOW and money market accounts | 667,849 | 237,934 | |||||||||
Net increase (decrease) in time deposits | (99,060) | 212,077 | |||||||||
Net decrease in repurchase agreements and federal funds purchased | (1,390) | (50,596) | |||||||||
Net increase in federal funds sold | 0 | 25,000 | |||||||||
Proceeds from Federal Home Loan Bank advances | 138,000 | 45,000 | |||||||||
Repayment of Federal Home Loan Bank advances | (160,643) | (50,181) | |||||||||
Retirement of preferred stock | 0 | (30,000) | |||||||||
Issuance of common shares, net of issuance cost | 0 | 88,782 | |||||||||
Acquisition of common stock for tax withholding obligations | (869) | (245) | |||||||||
Net decrease in employee receivables | 46 | 117 | |||||||||
Dividends paid on preferred stock | 0 | (700) | |||||||||
Net cash provided by financing activities | 543,933 | 477,188 | |||||||||
Increase (Decrease) in Cash and Cash Equivalents | 36,316 | (88,415) | |||||||||
Cash and Cash Equivalents, Beginning of Period | 187,320 | 216,541 | |||||||||
Cash and Cash Equivalents, End of Period | $ | 223,636 | $ | 128,126 | |||||||
Supplemental Cash Flows Information | |||||||||||
Interest paid | $ | 37,238 | $ | 54,998 | |||||||
Income taxes paid | 7,335 | 1,030 | |||||||||
Foreclosed assets in settlement of loans | $ | 0 | $ | 2,471 | |||||||
Nine months ended | |||||||
September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Operating Activities | |||||||
Net income | $ | 29,173 | $ | 9,256 | |||
Items not requiring (providing) cash | |||||||
Depreciation and amortization | 4,015 | 3,299 | |||||
Provision for loan losses | 10,550 | 9,000 | |||||
Accretion of discounts and amortization of premiums on securities | 4,098 | 4,134 | |||||
Equity based compensation | 3,606 | 4,513 | |||||
(Gain) loss on disposal of fixed assets | 64 | (4 | ) | ||||
Gain on sale of loans | (207 | ) | (618 | ) | |||
Deferred income taxes | 2,088 | (1,105 | ) | ||||
Net increase in bank owned life insurance | (1,416 | ) | (1,511 | ) | |||
Net realized gains on available-for-sale securities | (539 | ) | (608 | ) | |||
Impairment of assets held for sale | 424 | 171 | |||||
Dividends on FHLB stock | (797 | ) | (713 | ) | |||
Stock dividends on CRA mutual fund | (38 | ) | (34 | ) | |||
Changes in | |||||||
Interest receivable | (1,817 | ) | (2,105 | ) | |||
Other assets | (7,795 | ) | (170 | ) | |||
Other liabilities | 13,261 | 4,237 | |||||
Net cash provided by operating activities | 54,670 | 27,742 | |||||
Investing Activities | |||||||
Net change in loans | (576,897 | ) | (741,784 | ) | |||
Purchases of available-for-sale securities | (157,492 | ) | (198,214 | ) | |||
Proceeds from maturities of available-for-sale securities | 48,658 | 35,755 | |||||
Proceeds from sale of available-for-sale securities | 63,515 | 149,271 | |||||
Purchase of premises and equipment | (649 | ) | (41,268 | ) | |||
Purchase of restricted equity securities | (1,673 | ) | (1,300 | ) | |||
Proceeds from the sale of fixed assets | 3,324 | 1,862 | |||||
Proceeds from sale of restricted equity securities | 941 | 942 | |||||
Net cash used in investing activities | (620,273 | ) | (794,736 | ) | |||
Financing Activities | |||||||
Net increase in demand deposits, savings, NOW and money market accounts | 237,934 | 456,487 | |||||
Net increase in time deposits | 212,077 | 46,729 | |||||
Net increase (decrease) in repurchase agreements and fed funds purchased | (50,596 | ) | 77,479 | ||||
Net increase in federal funds sold | 25,000 | 55,000 | |||||
Proceeds from line of credit | — | 30,000 | |||||
Repayment of line of credit | — | (30,000 | ) | ||||
Proceeds from Federal Home Loan Bank advances | 45,000 | 28,000 | |||||
Repayment of Federal Home Loan Bank advances | (50,181 | ) | (10,171 | ) | |||
Net repayments of Federal Home Loan Bank line of credit | — | (25,000 | ) |
Notes to Consolidated Financial Statements (unaudited) |
Nine months ended | |||||||
September 30, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Retirement of preferred stock | $ | (30,000 | ) | $ | — | ||
Issuance of common shares, net of issuance cost | 88,390 | 132,550 | |||||
Proceeds from employee stock purchase plan | 547 | 367 | |||||
Common stock purchased and retired | (155 | ) | (3,790 | ) | |||
Acquisition of common stock for tax withholding obligations | (245 | ) | (1,651 | ) | |||
Net decrease in employee receivables | 117 | 72 | |||||
Dividends paid on preferred stock | (700 | ) | (1,575 | ) | |||
Net cash provided by financing activities | 477,188 | 754,497 | |||||
Decrease in Cash and Cash Equivalents | (88,415 | ) | (12,497 | ) | |||
Cash and Cash Equivalents, Beginning of Period | 216,541 | 130,820 | |||||
Cash and Cash Equivalents, End of Period | $ | 128,126 | $ | 118,323 | |||
Supplemental Cash Flows Information | |||||||
Interest paid | $ | 54,998 | $ | 31,437 | |||
Income taxes paid | 1,030 | 19 | |||||
Foreclosed assets in settlement of loans | 2,471 | — | |||||
Dividends declared and unpaid on preferred stock | — | 525 |
Notes to |
Notes to Consolidated Financial Statements (unaudited) |
Standard | Date of Adoption | Description | Effect on Financial Statements or Other Significant Matters | |||||||||||||||||
ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting | June 30, 2020 | The ASU provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The ASU only applies to transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments include: (1) Optional expedients to contract modifications that allow the Company to adjust the effective interest rate of receivables and debt, account for lease modifications as a continuation of the existing lease, and remove the requirement to reassess its original conclusions for contract modifications about whether that contract contains an embedded derivative that is clearly and closely related to the economic characteristics and risks of the host contract under Subtopic 815-15, Derivatives and Hedging—Embedded Derivatives; (2) Exceptions to the guidance in Topic 815 related to changes in the critical terms of a hedging relationship due to reference rate reform; and (3) Optional expedients for cash flow and fair value hedges. | The Company had more than $1 billion in loans tied to LIBOR as of September 30, 2020. The Company does not believe the adoption will have a material accounting impact on the Company’s consolidated financial position or results of operations. Additionally, LIBOR fallback language has been included in key loan provisions of new and renewed loans in preparation for transition from LIBOR to the new benchmark rate when such transition occurs. This standard is expected to ease the administrative burden in accounting for the future effects of reference rate reform. The ASU allows the Company to recognize the modification related to LIBOR as a continuation of the old contract, rather than a cancellation of the old contract resulting in a write off of unamortized fees and creation of a new contract. | |||||||||||||||||
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes | January 1, 2020 (Early Adoption) | The ASU simplifies the accounting for income taxes. Among other changes, the ASU: (1) Removes the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items; (2) Removes the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year; (3) Requires an entity to recognize a franchise tax that is partially based on income as an income-based tax and account for any incremental amount incurred as a nonincome based tax; and (4) Requires an entity to reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. | The amendments in the ASU did not have a material impact on the Company’s tax methodology, processes, or the Company’s financial statements. |
Notes to Consolidated Financial Statements (unaudited) |
Standard | Date of Adoption | Description | Effect on Financial Statements or Other Significant Matters | |||||||||||||||||
ASU 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework | January 1, 2020 | Improves the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information. The amendments modify certain disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement. Entities are no longer required to disclose transfers between Level 1 and Level 2 of the fair value hierarchy or qualitatively disclose the valuation process for Level 3 fair value measurements. The updated guidance requires disclosure of the changes in unrealized gains and losses for the period included in Other Comprehensive Income for recurring Level 3 fair value measurements. Entities are required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The additional provisions of the guidance should be adopted prospectively. The eliminated requirements should be adopted retrospectively. | The adoption did not have a material impact to the Company’s financial statements. No transfers between Level 1 and Level 2 occurred in 2019 or 2020 and the Company did not have any recurring Level 3 fair value measurements that created an unrealized gain or loss in Other Comprehensive Income. In addition, the Company previously disclosed the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. | |||||||||||||||||
ASU | January 1, 2020 (Early | Adoption of ASU 2018-07 required the Company to make a one-time transfer of $2.2 million from retained earnings to additional paid in capital. The Company will record forfeitures as they occur and base fair market values on the expected term, like the Company’s accounting for employee-based awards. |
The In addition, the Company’s non-interest income is generated by customer transactions or through the passage of time and as a result the pattern or timing of income recognition |
Standard | Anticipated Date of Adoption | Description | Effect on Financial Statements or Other Significant Matters | |||||||||||||||||
ASU 2016-13 Financial Instruments-Credit Losses | Requires an entity to utilize a new impairment model known as the current expected credit loss | The Company The Company The Company internal control changes that will be necessary to transition to the third-party platform. At this time, an estimate of the impact cannot be established as the Company continues to evaluate the inputs into the model. The |
Notes to Consolidated Financial Statements (unaudited) |
Standard | Anticipated Date of Adoption | Description | Effect on Financial Statements or Other Significant Matters | |||||||||||||||||
ASU 2016-02 Leases (Topic 842) | The Company expects to implement this standard | Requires lessees and lessors to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The update requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach with the option to elect certain practical expedients. The update will also increase disclosures around leases, including qualitative and specific quantitative measures. | The Company The Company gathered all potential lease and embedded lease agreements during 2019 and 2020 and is evaluating the applicability and impact to the financial statements. The Company’s current operating leases relate primarily to |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands except per share data) | |||||||||||||||||||||||||||||||||||||
Earnings per Share | Earnings per Share | |||||||||||||||||||||||||||||||||||||
Net income | $ | 10,384 | $ | 6,354 | $ | 29,173 | $ | 9,256 | Net income | $ | 8,006 | $ | 10,384 | $ | 4,507 | $ | 29,173 | |||||||||||||||||||||
Less: preferred stock dividends | — | 525 | 175 | 1,575 | Less: preferred stock dividends | 0 | 0 | 0 | 175 | |||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 10,384 | $ | 5,829 | $ | 28,998 | $ | 7,681 | Net income available to common stockholders | $ | 8,006 | $ | 10,384 | $ | 4,507 | $ | 28,998 | |||||||||||||||||||||
Weighted average common shares(1) | 48,351,553 | 37,790,614 | 46,239,021 | 33,918,540 | ||||||||||||||||||||||||||||||||||
Weighted average common shares | Weighted average common shares | 52,136,286 | 48,351,553 | 52,104,372 | 46,239,021 | |||||||||||||||||||||||||||||||||
Earnings per share | $ | 0.22 | $ | 0.15 | $ | 0.63 | $ | 0.23 | Earnings per share | $ | 0.15 | $ | 0.22 | $ | 0.09 | $ | 0.63 | |||||||||||||||||||||
Dilutive Earnings Per Share | Dilutive Earnings Per Share | |||||||||||||||||||||||||||||||||||||
Net income available to common stockholders | $ | 10,384 | $ | 5,829 | $ | 28,998 | $ | 7,681 | Net income available to common stockholders | $ | 8,006 | $ | 10,384 | $ | 4,507 | $ | 28,998 | |||||||||||||||||||||
Weighted average common shares(1) | 48,351,553 | 37,790,614 | 46,239,021 | 33,918,540 | ||||||||||||||||||||||||||||||||||
Effect of dilutive shares(1) | 812,996 | 988,010 | 842,706 | 1,133,888 | ||||||||||||||||||||||||||||||||||
Weighted average dilutive common shares(1) | 49,164,549 | 38,778,624 | 47,081,727 | 35,052,428 | ||||||||||||||||||||||||||||||||||
Weighted average common shares | Weighted average common shares | 52,136,286 | 48,351,553 | 52,104,372 | 46,239,021 | |||||||||||||||||||||||||||||||||
Effect of dilutive shares | Effect of dilutive shares | 423,840 | 812,996 | 463,219 | 842,706 | |||||||||||||||||||||||||||||||||
Weighted average dilutive common shares | Weighted average dilutive common shares | 52,560,126 | 49,164,549 | 52,567,591 | 47,081,727 | |||||||||||||||||||||||||||||||||
Diluted earnings per share | $ | 0.21 | $ | 0.15 | $ | 0.61 | $ | 0.22 | Diluted earnings per share | $ | 0.15 | $ | 0.21 | $ | 0.09 | $ | 0.61 | |||||||||||||||||||||
SARs, RSUs, RSAs, PRSUs, PSSs not included because to do so would be antidilutive(1) | 541,556 | 442,452 | 507,167 | 273,180 | ||||||||||||||||||||||||||||||||||
1 Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018. | ||||||||||||||||||||||||||||||||||||||
Stock-based awards not included because to do so would be antidilutive | Stock-based awards not included because to do so would be antidilutive | 1,214,433 | 541,556 | 1,053,393 | 507,167 |
Notes to |
September 30, 2020 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Approximate Fair Value | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 122,093 | $ | 4,690 | $ | 0 | $ | 126,783 | |||||||||||||||
Collateralized mortgage obligations - GSE residential | 71,735 | 1,271 | 7 | 72,999 | |||||||||||||||||||
State and political subdivisions | 421,075 | 28,339 | 220 | 449,194 | |||||||||||||||||||
Corporate bonds | 860 | 67 | 2 | 925 | |||||||||||||||||||
Total available-for-sale debt securities | 615,763 | 34,367 | 229 | 649,901 | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Mutual funds | 2,222 | 23 | 0 | 2,245 | |||||||||||||||||||
Total equity securities | 2,222 | 23 | 0 | 2,245 | |||||||||||||||||||
Total available-for-sale securities | $ | 617,985 | $ | 34,390 | $ | 229 | $ | 652,146 | |||||||||||||||
September 30, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Approximate Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 158,897 | $ | 2,009 | $ | 192 | $ | 160,714 | |||||||
Collateralized mortgage obligations - GSE residential | 147,917 | 1,002 | 244 | 148,675 | |||||||||||
State and political subdivisions | 398,963 | 21,051 | 5 | 420,009 | |||||||||||
Corporate bonds | 1,444 | 92 | — | 1,536 | |||||||||||
Total available-for-sale debt securities | 707,221 | 24,154 | 441 | 730,934 | |||||||||||
Equity securities | |||||||||||||||
Mutual funds | 2,179 | — | 20 | 2,159 | |||||||||||
Total equity securities | 2,179 | — | 20 | 2,159 | |||||||||||
Total available-for-sale securities | $ | 709,400 | $ | 24,154 | $ | 461 | $ | 733,093 |
December 31, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Approximate Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 131,215 | $ | 162 | $ | 2,090 | $ | 129,287 | |||||||
Collateralized mortgage obligations - GSE residential | 154,110 | 287 | 1,771 | 152,626 | |||||||||||
State and political subdivisions | 378,595 | 3,908 | 4,445 | 378,058 | |||||||||||
Corporate bonds | 1,613 | 70 | 26 | 1,657 | |||||||||||
Total available-for-sale debt securities | 665,533 | 4,427 | 8,332 | 661,628 | |||||||||||
Equity securities | |||||||||||||||
Mutual funds | 2,141 | — | 91 | 2,050 | |||||||||||
Total equity securities | 2,141 | — | 91 | 2,050 | |||||||||||
Total available-for-sale securities | $ | 667,674 | $ | 4,427 | $ | 8,423 | $ | 663,678 |
December 31, 2019 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Approximate Fair Value | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 151,037 | $ | 1,668 | $ | 193 | $ | 152,512 | |||||||||||||||
Collateralized mortgage obligations - GSE residential | 128,876 | 625 | 289 | 129,212 | |||||||||||||||||||
State and political subdivisions | 436,448 | 19,996 | 104 | 456,340 | |||||||||||||||||||
Corporate bonds | 1,321 | 88 | 0 | 1,409 | |||||||||||||||||||
Total available-for-sale debt securities | 717,682 | 22,377 | 586 | 739,473 | |||||||||||||||||||
Equity securities | |||||||||||||||||||||||
Mutual funds | 2,190 | 0 | 29 | 2,161 | |||||||||||||||||||
Total equity securities | 2,190 | 0 | 29 | 2,161 | |||||||||||||||||||
Total available-for-sale securities | $ | 719,872 | $ | 22,377 | $ | 615 | $ | 741,634 | |||||||||||||||
Notes to |
September 30, 2020 | ||||||||||||||||||||||||||||||||
Within | After One to | After Five to | After | |||||||||||||||||||||||||||||
One Year | Five Years | Ten Years | Ten Years | Total | ||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Available-for-sale debt securities | ||||||||||||||||||||||||||||||||
Mortgage-backed - GSE residential(1) | ||||||||||||||||||||||||||||||||
Amortized cost | $ | 0 | $ | 55 | $ | 199 | $ | 121,839 | $ | 122,093 | ||||||||||||||||||||||
Estimated fair value | $ | 0 | $ | 58 | $ | 213 | $ | 126,512 | $ | 126,783 | ||||||||||||||||||||||
Weighted average yield(2) | 0 | % | 4.57 | % | 3.91 | % | 2.03 | % | 2.06 | % | ||||||||||||||||||||||
Collateralized mortgage obligations - GSE residential(1) | ||||||||||||||||||||||||||||||||
Amortized cost | $ | 0 | $ | 0 | $ | 2,496 | $ | 69,239 | $ | 71,735 | ||||||||||||||||||||||
Estimated fair value | $ | 0 | $ | 0 | $ | 2,735 | $ | 70,264 | $ | 72,999 | ||||||||||||||||||||||
Weighted average yield(2) | 0 | % | 0 | % | 2.77 | % | 1.10 | % | 1.16 | % | ||||||||||||||||||||||
State and political subdivisions | ||||||||||||||||||||||||||||||||
Amortized cost | $ | 653 | $ | 7,407 | $ | 59,992 | $ | 353,023 | $ | 421,075 | ||||||||||||||||||||||
Estimated fair value | $ | 654 | $ | 7,573 | $ | 65,059 | $ | 375,908 | $ | 449,194 | ||||||||||||||||||||||
Weighted average yield(2) | 8.02 | % | 5.44 | % | 3.52 | % | 3.08 | % | 3.19 | % | ||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||
Amortized cost | $ | 0 | $ | 0 | $ | 860 | $ | 0 | $ | 860 | ||||||||||||||||||||||
Estimated fair value | $ | 0 | $ | 0 | $ | 925 | $ | 0 | $ | 925 | ||||||||||||||||||||||
Weighted average yield(2) | 0 | % | 0 | % | 5.57 | % | 0 | % | 5.57 | % | ||||||||||||||||||||||
Total available-for-sale debt securities | ||||||||||||||||||||||||||||||||
Amortized cost | $ | 653 | $ | 7,462 | $ | 63,547 | $ | 544,101 | $ | 615,763 | ||||||||||||||||||||||
Estimated fair value | $ | 654 | $ | 7,631 | $ | 68,932 | $ | 572,684 | $ | 649,901 | ||||||||||||||||||||||
Weighted average yield(2) | 8.02 | % | 5.44 | % | 3.52 | % | 2.59 | % | 2.73 | % | ||||||||||||||||||||||
(1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. | ||||||||||||||||||||||||||||||||
(2) Yields are calculated based on amortized cost. |
September 30, 2019 | |||||||||||||||||||
Within | After One to | After Five to | After | ||||||||||||||||
One Year | Five Years | Ten Years | Ten Years | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||
Mortgage-backed - GSE residential(1) | |||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | 1,411 | $ | 157,486 | $ | 158,897 | |||||||||
Estimated fair value | — | — | 1,471 | 159,243 | 160,714 | ||||||||||||||
Collateralized mortgage obligations - GSE residential(1) | |||||||||||||||||||
Amortized cost | — | — | 2,876 | 145,041 | 147,917 | ||||||||||||||
Estimated fair value | — | — | 3,011 | 145,664 | 148,675 | ||||||||||||||
State and political subdivisions | |||||||||||||||||||
Amortized cost | — | 3,580 | 40,410 | 354,973 | 398,963 | ||||||||||||||
Estimated fair value | — | 3,674 | 43,071 | 373,264 | 420,009 | ||||||||||||||
Corporate bonds | |||||||||||||||||||
Amortized cost | — | — | 1,444 | — | 1,444 | ||||||||||||||
Estimated fair value | — | — | 1,536 | — | 1,536 | ||||||||||||||
Total available-for-sale debt securities | |||||||||||||||||||
Amortized cost | — | 3,580 | 46,141 | 657,500 | 707,221 | ||||||||||||||
Estimated fair value | $ | — | $ | 3,674 | $ | 49,089 | $ | 678,171 | $ | 730,934 | |||||||||
(1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. |
Notes to Consolidated Financial Statements (unaudited) |
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 0 | $ | 0 | $ | 0 | 0 | ||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations - GSE residential | 3,178 | 7 | 1 | 0 | 0 | 0 | 3,178 | 7 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 14,998 | 220 | 19 | 26 | 0 | 1 | 15,024 | 220 | 20 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 457 | 2 | 1 | 0 | 0 | 0 | 457 | 2 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired debt securities | $ | 18,633 | $ | 229 | 21 | $ | 26 | $ | 0 | 1 | $ | 18,659 | $ | 229 | 22 |
September 30, 2019 | ||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | ||||||||||||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 3,988 | $ | 4 | 1 | $ | 27,889 | $ | 188 | 5 | $ | 31,877 | $ | 192 | 6 | |||||||||||||||||
Collateralized mortgage obligations - GSE residential | 48,851 | 149 | 6 | 9,792 | 95 | 10 | 58,643 | 244 | 16 | |||||||||||||||||||||||
State and political subdivisions | 2,952 | 4 | 3 | 146 | 1 | 1 | 3,098 | 5 | 4 | |||||||||||||||||||||||
Corporate bonds | — | — | 0 | — | — | 0 | — | — | 0 | |||||||||||||||||||||||
Total temporarily impaired debt securities | $ | 55,791 | $ | 157 | 10 | $ | 37,827 | $ | 284 | 16 | $ | 93,618 | $ | 441 | 26 |
December 31, 2018 | ||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | ||||||||||||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 66,232 | $ | 369 | 10 | $ | 44,280 | $ | 1,721 | 11 | $ | 110,512 | $ | 2,090 | 21 | |||||||||||||||||
Collateralized mortgage obligations - GSE residential | 4,639 | 42 | 1 | 68,362 | 1,729 | 20 | 73,001 | 1,771 | 21 | |||||||||||||||||||||||
State and political subdivisions | 85,181 | 1,210 | 68 | 97,721 | 3,235 | 74 | 182,902 | 4,445 | 142 | |||||||||||||||||||||||
Corporate bonds | 723 | 26 | 1 | — | — | 0 | 723 | 26 | 1 | |||||||||||||||||||||||
Total temporarily impaired debt securities | $ | 156,775 | $ | 1,647 | 80 | $ | 210,363 | $ | 6,685 | 105 | $ | 367,138 | $ | 8,332 | 185 |
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 7,959 | $ | 38 | 2 | $ | 20,396 | $ | 155 | 4 | $ | 28,355 | $ | 193 | 6 | ||||||||||||||||||||||||||||||||||||||
Collateralized mortgage obligations - GSE residential | 48,980 | 199 | 7 | 8,622 | 90 | 9 | 57,602 | 289 | 16 | ||||||||||||||||||||||||||||||||||||||||||||
State and political subdivisions | 21,412 | 102 | 11 | 167 | 2 | 2 | 21,579 | 104 | 13 | ||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 530 | 0 | 1 | 0 | 0 | 0 | 530 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||
Total temporarily impaired debt securities | $ | 78,881 | $ | 339 | 21 | $ | 29,185 | $ | 247 | 15 | $ | 108,066 | $ | 586 | 36 |
September 30, 2019 | |||||||
Three months ended | Nine months ended | ||||||
(Dollars in thousands) | |||||||
Net gains recognized during the period on equity securities | $ | 16 | $ | 72 | |||
Less: net gains recognized during the period on equity securities sold during the period | — | — | |||||
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date | $ | 16 | $ | 72 |
Notes to |
September 30, 2019 | December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Commercial | $ | 1,312,647 | $ | 1,134,414 | |||
Energy | 396,132 | 358,283 | |||||
Commercial real estate | 993,153 | 846,561 | |||||
Construction and land development | 527,582 | 440,032 | |||||
Residential real estate | 365,435 | 246,275 | |||||
Equity lines of credit | 22,192 | 20,286 | |||||
Consumer installment | 21,552 | 23,528 | |||||
Gross loans | 3,638,693 | 3,069,379 | |||||
Less: Allowance for loan losses | 42,995 | 37,826 | |||||
Less: Net deferred loan fees and costs | 8,901 | 8,632 | |||||
Net loans | $ | 3,586,797 | $ | 3,022,921 |
September 30, 2020 | December 31, 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Commercial | $ | 1,291,572 | $ | 1,356,817 | |||||||
Energy | 384,181 | 408,573 | |||||||||
Commercial real estate | 1,195,631 | 1,024,041 | |||||||||
Construction and land development | 587,617 | 628,418 | |||||||||
Residential real estate | 618,082 | 398,695 | |||||||||
Paycheck Protection Program (“PPP”) | 369,260 | 0 | |||||||||
Consumer | 46,771 | 45,163 | |||||||||
Gross loans | 4,493,114 | 3,861,707 | |||||||||
Less: Allowance for loan losses | 76,035 | 56,896 | |||||||||
Less: Net deferred loan fees and costs | 15,305 | 9,463 | |||||||||
Net loans | $ | 4,401,774 | $ | 3,795,348 | |||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | PPP | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 26,543 | $ | 17,372 | $ | 16,899 | $ | 5,019 | $ | 4,868 | $ | 0 | $ | 484 | $ | 71,185 | |||||||||||||||||||||||||||||||||||||||||||||||||
Provision charged to expense | 7,439 | 2,168 | 908 | (530) | 882 | 0 | 8 | 10,875 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (5,781) | 0 | 0 | 0 | (256) | 0 | 0 | (6,037) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 2 | 0 | 0 | 0 | 0 | 0 | 10 | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 28,203 | $ | 19,540 | $ | 17,807 | $ | 4,489 | $ | 5,494 | $ | 0 | $ | 502 | $ | 76,035 | |||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Equity Lines of Credit | Consumer Installment | Total | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | |||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||
Beginning balance | $ | 22,975 | $ | 7,300 | $ | 7,533 | $ | 2,602 | $ | 2,138 | $ | 155 | $ | 149 | $ | 42,852 | |||||||||||||||
Provision charged to expense | 3,535 | 1,077 | (249 | ) | 414 | 82 | 5 | (14 | ) | 4,850 | |||||||||||||||||||||
Charge-offs | (1,700 | ) | (3,000 | ) | — | — | — | — | (8 | ) | (4,708 | ) | |||||||||||||||||||
Recoveries | 1 | — | — | — | — | — | — | 1 | |||||||||||||||||||||||
Ending balance | $ | 24,811 | $ | 5,377 | $ | 7,284 | $ | 3,016 | $ | 2,220 | $ | 160 | $ | 127 | $ | 42,995 |
Notes to |
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | PPP | Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 22,975 | $ | 7,300 | $ | 7,533 | $ | 2,602 | $ | 2,138 | $ | 0 | $ | 304 | $ | 42,852 | ||||||||||||||||||||||||||||||||||||||||||||||
Provision charged to expense | 3,535 | 1,077 | (249) | 414 | 82 | 0 | (9) | 4,850 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (1,700) | (3,000) | 0 | 0 | 0 | 0 | (8) | (4,708) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 24,811 | $ | 5,377 | $ | 7,284 | $ | 3,016 | $ | 2,220 | $ | 0 | $ | 287 | $ | 42,995 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | PPP | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 35,864 | $ | 6,565 | $ | 8,085 | $ | 3,516 | $ | 2,546 | $ | 0 | $ | 320 | $ | 56,896 | |||||||||||||||||||||||||||||||||||||
Provision charged to expense | 16,210 | 15,253 | 9,722 | 973 | 3,393 | 0 | 274 | 45,825 | |||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (23,946) | (2,278) | 0 | 0 | (445) | 0 | (104) | (26,773) | |||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 75 | 0 | 0 | 0 | 0 | 0 | 12 | 87 | |||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 28,203 | $ | 19,540 | $ | 17,807 | $ | 4,489 | $ | 5,494 | $ | 0 | $ | 502 | $ | 76,035 | |||||||||||||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | PPP | Consumer | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Equity Lines of Credit | Consumer Installment | Total | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | Allowance for loan losses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 11,739 | $ | 7,957 | $ | 6,584 | $ | 2,530 | $ | 1,103 | $ | 170 | $ | 114 | $ | 30,197 | Beginning balance | $ | 16,584 | $ | 10,262 | $ | 6,755 | $ | 2,475 | $ | 1,464 | $ | 0 | $ | 286 | $ | 37,826 | |||||||||||||||||||||||||||||||||||||||||||||
Provision charged to expense | 1,102 | 1,184 | 315 | 137 | 261 | 4 | (3 | ) | 3,000 | Provision charged to expense | 11,166 | (2,461) | 529 | 541 | 756 | 0 | $ | 19�� | 10,550 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Charge-offs | (97 | ) | — | — | — | — | — | — | (97 | ) | Charge-offs | (2,954) | (3,000) | 0 | 0 | 0 | 0 | (19) | (5,973) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recoveries | 439 | — | — | — | — | — | 1 | 440 | Recoveries | 15 | 576 | 0 | 0 | 0 | 0 | 1 | 592 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 13,183 | $ | 9,141 | $ | 6,899 | $ | 2,667 | $ | 1,364 | $ | 174 | $ | 112 | $ | 33,540 | Ending balance | $ | 24,811 | $ | 5,377 | $ | 7,284 | $ | 3,016 | $ | 2,220 | $ | 0 | $ | 287 | $ | 42,995 |
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Equity Lines of Credit | Consumer Installment | Total | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Nine months ended September 30, 2019 | |||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||
Beginning balance | $ | 16,584 | $ | 10,262 | $ | 6,755 | $ | 2,475 | $ | 1,464 | $ | 159 | $ | 127 | $ | 37,826 | |||||||||||||||
Provision charged to expense | 11,166 | (2,461 | ) | 529 | 541 | 756 | 1 | 18 | 10,550 | ||||||||||||||||||||||
Charge-offs | (2,954 | ) | (3,000 | ) | — | — | — | — | (19 | ) | (5,973 | ) | |||||||||||||||||||
Recoveries | 15 | 576 | — | — | — | — | 1 | 592 | |||||||||||||||||||||||
Ending balance | $ | 24,811 | $ | 5,377 | $ | 7,284 | $ | 3,016 | $ | 2,220 | $ | 160 | $ | 127 | $ | 42,995 |
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Equity Lines of Credit | Consumer Installment | Total | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
Nine months ended September 30, 2018 | |||||||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||||||
Beginning balance | $ | 11,378 | $ | 7,726 | $ | 4,668 | $ | 1,200 | $ | 905 | $ | 122 | $ | 92 | $ | 26,091 | |||||||||||||||
Provision charged to expense | 2,031 | 2,671 | 2,231 | 1,467 | 459 | 77 | 64 | 9,000 | |||||||||||||||||||||||
Charge-offs | (681 | ) | (1,256 | ) | — | — | — | (25 | ) | (45 | ) | (2,007 | ) | ||||||||||||||||||
Recoveries | 455 | — | — | — | — | — | 1 | 456 | |||||||||||||||||||||||
Ending balance | $ | 13,183 | $ | 9,141 | $ | 6,899 | $ | 2,667 | $ | 1,364 | $ | 174 | $ | 112 | $ | 33,540 |
Notes to |
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | PPP | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period end allowance for loan losses allocated to: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,432 | $ | 2,540 | $ | 1,525 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 6,497 | |||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 25,771 | $ | 17,000 | $ | 16,282 | $ | 4,489 | $ | 5,494 | $ | 0 | $ | 502 | $ | 69,538 | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 28,203 | $ | 19,540 | $ | 17,807 | $ | 4,489 | $ | 5,494 | $ | 0 | $ | 502 | $ | 76,035 | |||||||||||||||||||||||||||||||||||||||||||
Allocated to loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 38,589 | $ | 21,318 | $ | 17,035 | $ | 0 | $ | 6,406 | $ | 0 | $ | 246 | $ | 83,594 | |||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,252,983 | $ | 362,863 | $ | 1,178,596 | $ | 587,617 | $ | 611,676 | $ | 369,260 | $ | 46,525 | $ | 4,409,520 | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 1,291,572 | $ | 384,181 | $ | 1,195,631 | $ | 587,617 | $ | 618,082 | $ | 369,260 | $ | 46,771 | $ | 4,493,114 | |||||||||||||||||||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | PPP | Consumer | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Period end allowance for loan losses allocated to: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 19,942 | $ | 1,949 | $ | 210 | $ | 0 | $ | 197 | $ | 0 | $ | 0 | $ | 22,298 | |||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 15,922 | $ | 4,616 | $ | 7,875 | $ | 3,516 | $ | 2,349 | $ | 0 | $ | 320 | $ | 34,598 | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 35,864 | $ | 6,565 | $ | 8,085 | $ | 3,516 | $ | 2,546 | $ | 0 | $ | 320 | $ | 56,896 | |||||||||||||||||||||||||||||||||||||||||||
Allocated to loans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 70,876 | 9,744 | $ | 10,492 | $ | 0 | $ | 2,388 | $ | 0 | $ | 0 | $ | 93,500 | ||||||||||||||||||||||||||||||||||||||||||||
Collectively evaluated for impairment | $ | 1,285,941 | $ | 398,829 | $ | 1,013,549 | $ | 628,418 | $ | 396,307 | $ | 0 | $ | 45,163 | $ | 3,768,207 | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | 1,356,817 | $ | 408,573 | $ | 1,024,041 | $ | 628,418 | $ | 398,695 | $ | 0 | $ | 45,163 | $ | 3,861,707 |
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Equity Lines of Credit | Consumer Installment | Total | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||||||||||
Ending balance | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 10,398 | $ | 854 | $ | 343 | $ | — | $ | 219 | $ | — | $ | — | $ | 11,814 | |||||||||||||||
Collectively evaluated for impairment | $ | 14,413 | $ | 4,523 | $ | 6,941 | $ | 3,016 | $ | 2,001 | $ | 160 | $ | 127 | $ | 31,181 | |||||||||||||||
Allocated to loans: | |||||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 66,162 | $ | 10,226 | $ | 16,544 | $ | — | $ | 2,537 | $ | — | $ | — | $ | 95,469 | |||||||||||||||
Collectively evaluated for impairment | $ | 1,246,485 | $ | 385,906 | $ | 976,609 | $ | 527,582 | $ | 362,898 | $ | 22,192 | $ | 21,552 | $ | 3,543,224 | |||||||||||||||
Ending balance | $ | 1,312,647 | $ | 396,132 | $ | 993,153 | $ | 527,582 | $ | 365,435 | $ | 22,192 | $ | 21,552 | $ | 3,638,693 |
| Notes to Consolidated Financial Statements (unaudited) |
Notes to Consolidated Financial Statements (unaudited) | |||||
•Consumer - The loan portfolio consists of revolving lines of credit and various term loans such as automobile loans and loans for other personal purposes. Repayment is primarily dependent on the personal income and credit rating of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in |
Pass | Special Mention | Substandard Performing | Substandard Nonperforming | Doubtful | Loss | Total | |||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,106,338 | $ | 71,746 | $ | 75,714 | $ | 34,528 | $ | 3,246 | $ | 0 | $ | 1,291,572 | |||||||||||||||||||||||||||||||||||||||
Energy | 186,881 | 58,726 | 117,389 | 17,435 | 3,750 | 0 | 384,181 | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,114,802 | 41,030 | 26,624 | 12,377 | 798 | 0 | 1,195,631 | ||||||||||||||||||||||||||||||||||||||||||||||
Construction and land development | 581,160 | 5,299 | 1,158 | 0 | 0 | 0 | 587,617 | ||||||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 610,909 | 527 | 3,467 | 3,179 | 0 | 0 | 618,082 | ||||||||||||||||||||||||||||||||||||||||||||||
PPP | 369,260 | 0 | 0 | 0 | 0 | 0 | 369,260 | ||||||||||||||||||||||||||||||||||||||||||||||
Consumer | 46,525 | 0 | 0 | 246 | 0 | 0 | 46,771 | ||||||||||||||||||||||||||||||||||||||||||||||
$ | 4,015,875 | $ | 177,328 | $ | 224,352 | $ | 67,765 | $ | 7,794 | $ | 0 | $ | 4,493,114 |
Pass & Watch | Special Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||
Commercial | $ | 1,217,280 | $ | 29,350 | $ | 66,017 | $ | — | $ | — | $ | 1,312,647 | |||||||||||
Energy | 378,533 | 10,342 | 2,580 | 4,677 | — | 396,132 | |||||||||||||||||
Commercial real estate | 976,262 | 7,529 | 8,402 | 960 | — | 993,153 | |||||||||||||||||
Construction and land development | 527,582 | — | — | — | — | 527,582 | |||||||||||||||||
Residential real estate | 362,625 | 273 | 2,537 | — | — | 365,435 | |||||||||||||||||
Equity lines of credit | 22,192 | — | — | — | — | 22,192 | |||||||||||||||||
Consumer installment | 21,552 | — | — | — | — | 21,552 | |||||||||||||||||
$ | 3,506,026 | $ | 47,494 | $ | 79,536 | $ | 5,637 | $ | — | $ | 3,638,693 |
Pass & Watch | Special Mention | Substandard | Doubtful | Loss | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Commercial | $ | 1,056,505 | $ | — | $ | 73,824 | $ | 4,085 | $ | — | $ | 1,134,414 | |||||||||||
Energy | 339,720 | 5,376 | 13,187 | — | — | 358,283 | |||||||||||||||||
Commercial real estate | 831,290 | 6,950 | 7,209 | 1,112 | — | 846,561 | |||||||||||||||||
Construction and land development | 440,032 | — | — | — | — | 440,032 | |||||||||||||||||
Residential real estate | 244,178 | 70 | 2,027 | — | — | 246,275 | |||||||||||||||||
Equity lines of credit | 20,286 | — | — | — | — | 20,286 | |||||||||||||||||
Consumer installment | 23,528 | — | — | — | — | 23,528 | |||||||||||||||||
$ | 2,955,539 | $ | 12,396 | $ | 96,247 | $ | 5,197 | $ | — | $ | 3,069,379 |
Pass | Special Mention | Substandard Performing | Substandard Nonperforming | Doubtful | Loss | Total | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,258,952 | $ | 27,069 | $ | 38,666 | $ | 32,130 | $ | 0 | $ | 0 | $ | 1,356,817 | ||||||||||||||||||||||||||||||||||||
Energy | 392,233 | 9,460 | 2,340 | 0 | 4,540 | 0 | 408,573 | |||||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,007,921 | 9,311 | 5,746 | 120 | 943 | 0 | 1,024,041 | |||||||||||||||||||||||||||||||||||||||||||
Construction and land development | 628,418 | 0 | 0 | 0 | 0 | 0 | 628,418 | |||||||||||||||||||||||||||||||||||||||||||
Residential real estate | 394,495 | 1,789 | 469 | 1,942 | 0 | 0 | 398,695 | |||||||||||||||||||||||||||||||||||||||||||
PPP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||
Consumer | 45,163 | 0 | 0 | 0 | 0 | 0 | 45,163 | |||||||||||||||||||||||||||||||||||||||||||
$ | 3,727,182 | $ | 47,629 | $ | 47,221 | $ | 34,192 | $ | 5,483 | $ | 0 | $ | 3,861,707 |
Notes to |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Total Past Due | Current | Total Loans Receivable | Loans >= 90 Days and Accruing | |||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 12,274 | $ | 28,487 | $ | 6,641 | $ | 47,402 | $ | 1,244,170 | $ | 1,291,572 | $ | 1,141 | |||||||||||||||||||||||||||||||||
Energy | 0 | 1,540 | 3,055 | 4,595 | 379,586 | 384,181 | 0 | ||||||||||||||||||||||||||||||||||||||||
Commercial real estate | 1,459 | 0 | 4,475 | 5,934 | 1,189,697 | 1,195,631 | 0 | ||||||||||||||||||||||||||||||||||||||||
Construction and land development | 0 | 0 | 0 | 0 | 587,617 | 587,617 | 0 | ||||||||||||||||||||||||||||||||||||||||
Residential real estate | 1,591 | 0 | 6,124 | 7,715 | 610,367 | 618,082 | 3,183 | ||||||||||||||||||||||||||||||||||||||||
PPP | 0 | 0 | 0 | 0 | 369,260 | 369,260 | 0 | ||||||||||||||||||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 46,771 | 46,771 | 0 | ||||||||||||||||||||||||||||||||||||||||
$ | 15,324 | $ | 30,027 | $ | 20,295 | $ | 65,646 | $ | 4,427,468 | $ | 4,493,114 | $ | 4,324 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Total Past Due | Current | Total Loans Receivable | Loans >= 90 Days and Accruing | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 1,091 | $ | 276 | $ | 30,911 | $ | 32,278 | $ | 1,324,539 | $ | 1,356,817 | $ | 37 | |||||||||||||||||||||||||||
Energy | 2,340 | 0 | 4,593 | 6,933 | 401,640 | 408,573 | 53 | ||||||||||||||||||||||||||||||||||
Commercial real estate | 316 | 0 | 4,589 | 4,905 | 1,019,136 | 1,024,041 | 4,501 | ||||||||||||||||||||||||||||||||||
Construction and land development | 196 | 0 | 0 | 196 | 628,222 | 628,418 | 0 | ||||||||||||||||||||||||||||||||||
Residential real estate | 2,347 | 0 | 1,919 | 4,266 | 394,429 | 398,695 | 0 | ||||||||||||||||||||||||||||||||||
PPP | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||
Consumer | 2 | 254 | 0 | 256 | 44,907 | 45,163 | 0 | ||||||||||||||||||||||||||||||||||
$ | 6,292 | $ | 530 | $ | 42,012 | $ | 48,834 | $ | 3,812,873 | $ | 3,861,707 | $ | 4,591 |
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Total Past Due | Current | Total Loans Receivable | Loans >= 90 Days and Accruing | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||||||
Commercial | $ | 42,039 | $ | 2,785 | $ | 1,101 | $ | 45,925 | $ | 1,266,722 | $ | 1,312,647 | $ | — | |||||||||||||
Energy | 7,122 | — | 5,319 | 12,441 | 383,691 | 396,132 | 642 | ||||||||||||||||||||
Commercial real estate | 317 | — | 93 | 410 | 992,743 | 993,153 | — | ||||||||||||||||||||
Construction and land development | 12,345 | — | — | 12,345 | 515,237 | 527,582 | — | ||||||||||||||||||||
Residential real estate | 68 | — | 2,012 | 2,080 | 363,355 | 365,435 | — | ||||||||||||||||||||
Equity lines of credit | — | — | — | — | 22,192 | 22,192 | — | ||||||||||||||||||||
Consumer installment | 50 | — | — | 50 | 21,502 | 21,552 | — | ||||||||||||||||||||
$ | 61,941 | $ | 2,785 | $ | 8,525 | $ | 73,251 | $ | 3,565,442 | $ | 3,638,693 | $ | 642 |
| Notes to Consolidated Financial Statements (unaudited) |
Unpaid | |||||||||||||||||||||||||||||||||||||||||||
Unpaid | Recorded Balance | Principal Balance | Specific Allowance | ||||||||||||||||||||||||||||||||||||||||
Recorded Balance | Principal Balance | Specific Allowance | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||
Loans without a specific valuation | Loans without a specific valuation | ||||||||||||||||||||||||||||||||||||||||||
Commercial | $ | 25,770 | $ | 25,770 | $ | — | Commercial | $ | 29,439 | $ | 35,220 | $ | — | ||||||||||||||||||||||||||||||
Energy | 2,969 | 2,969 | — | Energy | 0 | 0 | — | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 12,501 | 12,501 | — | Commercial real estate | 4,628 | 4,628 | — | ||||||||||||||||||||||||||||||||||||
Construction and land development | — | — | — | Construction and land development | 0 | 0 | — | ||||||||||||||||||||||||||||||||||||
Residential real estate | 2,195 | 2,195 | — | Residential real estate | 6,406 | 6,662 | — | ||||||||||||||||||||||||||||||||||||
Equity lines of credit | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Consumer installment | — | — | — | ||||||||||||||||||||||||||||||||||||||||
PPP | PPP | 0 | 0 | — | |||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | 246 | 246 | — | |||||||||||||||||||||||||||||||||||||||
Loans with a specific valuation | Loans with a specific valuation | ||||||||||||||||||||||||||||||||||||||||||
Commercial | 40,392 | 40,392 | 10,398 | Commercial | 9,150 | 20,538 | 2,432 | ||||||||||||||||||||||||||||||||||||
Energy | 7,257 | 7,257 | 854 | Energy | 21,318 | 26,597 | 2,540 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 4,043 | 4,043 | 343 | Commercial real estate | 12,407 | 13,206 | 1,525 | ||||||||||||||||||||||||||||||||||||
Construction and land development | — | — | — | Construction and land development | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Residential real estate | 342 | 342 | 219 | Residential real estate | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Equity lines of credit | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Consumer installment | — | — | — | ||||||||||||||||||||||||||||||||||||||||
PPP | PPP | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
Total | Total | ||||||||||||||||||||||||||||||||||||||||||
Commercial | 66,162 | 66,162 | 10,398 | Commercial | 38,589 | 55,758 | 2,432 | ||||||||||||||||||||||||||||||||||||
Energy | 10,226 | 10,226 | 854 | Energy | 21,318 | 26,597 | 2,540 | ||||||||||||||||||||||||||||||||||||
Commercial real estate | 16,544 | 16,544 | 343 | Commercial real estate | 17,035 | 17,834 | 1,525 | ||||||||||||||||||||||||||||||||||||
Construction and land development | — | — | — | Construction and land development | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||
Residential real estate | 2,537 | 2,537 | 219 | Residential real estate | 6,406 | 6,662 | 0 | ||||||||||||||||||||||||||||||||||||
Equity lines of credit | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Consumer installment | — | — | — | ||||||||||||||||||||||||||||||||||||||||
PPP | PPP | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||
$ | 95,469 | $ | 95,469 | $ | 11,814 | ||||||||||||||||||||||||||||||||||||||
Consumer | Consumer | 246 | 246 | 0 | |||||||||||||||||||||||||||||||||||||||
$ | 83,594 | $ | 107,097 | $ | 6,497 |
Notes to |
Unpaid | |||||||||||||||||||||||||||||
Recorded Balance | Principal Balance | Specific Allowance | |||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Loans without a specific valuation | |||||||||||||||||||||||||||||
Commercial | $ | 35,846 | $ | 35,846 | $ | — | |||||||||||||||||||||||
Energy | 2,864 | 2,864 | — | ||||||||||||||||||||||||||
Commercial real estate | 9,464 | 9,464 | — | ||||||||||||||||||||||||||
Construction and land development | 0 | 0 | — | ||||||||||||||||||||||||||
Residential real estate | 2,139 | 2,139 | — | ||||||||||||||||||||||||||
PPP | 0 | 0 | — | ||||||||||||||||||||||||||
Consumer | 0 | 0 | — | ||||||||||||||||||||||||||
Loans with a specific valuation | |||||||||||||||||||||||||||||
Commercial | 35,030 | 40,030 | 19,942 | ||||||||||||||||||||||||||
Energy | 6,880 | 9,880 | 1,949 | ||||||||||||||||||||||||||
Commercial real estate | 1,028 | 1,028 | 210 | ||||||||||||||||||||||||||
Construction and land development | 0 | 0 | 0 | ||||||||||||||||||||||||||
Residential real estate | 249 | 249 | 197 | ||||||||||||||||||||||||||
PPP | 0 | 0 | 0 | ||||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | ||||||||||||||||||||||||||
Total | |||||||||||||||||||||||||||||
Commercial | 70,876 | 75,876 | 19,942 | ||||||||||||||||||||||||||
Energy | 9,744 | 12,744 | 1,949 | ||||||||||||||||||||||||||
Commercial real estate | 10,492 | 10,492 | 210 | ||||||||||||||||||||||||||
Construction and land development | 0 | 0 | 0 | ||||||||||||||||||||||||||
Residential real estate | 2,388 | 2,388 | 197 | ||||||||||||||||||||||||||
PPP | 0 | 0 | 0 | ||||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | ||||||||||||||||||||||||||
$ | 93,500 | $ | 101,500 | $ | 22,298 |
Unpaid | |||||||||||
Recorded Balance | Principal Balance | Specific Allowance | |||||||||
(Dollars in thousands) | |||||||||||
December 31, 2018 | |||||||||||
Loans without a specific valuation | |||||||||||
Commercial | $ | 40,151 | $ | 40,151 | $ | — | |||||
Energy | 2,789 | 2,789 | — | ||||||||
Commercial real estate | 7,059 | 7,059 | — | ||||||||
Construction and land development | — | — | — | ||||||||
Residential real estate | 1,964 | 1,964 | — | ||||||||
Equity lines of credit | — | — | — | ||||||||
Consumer installment | — | — | — | ||||||||
Loans with a specific valuation | |||||||||||
Commercial | 37,996 | 37,996 | 5,814 | ||||||||
Energy | 13,461 | 13,461 | 3,108 | ||||||||
Commercial real estate | 8,168 | 8,168 | 473 | ||||||||
Construction and land development | — | — | — | ||||||||
Residential real estate | 63 | 63 | 5 | ||||||||
Equity lines of credit | — | — | — | ||||||||
Consumer installment | — | — | — | ||||||||
Total | |||||||||||
Commercial | 78,147 | 78,147 | 5,814 | ||||||||
Energy | 16,250 | 16,250 | 3,108 | ||||||||
Commercial real estate | 15,227 | 15,227 | 473 | ||||||||
Construction and land development | — | — | — | ||||||||
Residential real estate | 2,027 | 2,027 | 5 | ||||||||
Equity lines of credit | — | — | — | ||||||||
Consumer installment | — | — | — | ||||||||
$ | 111,651 | $ | 111,651 | $ | 9,400 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Commercial | $ | 386 | $ | 402 | $ | 862 | $ | 1,110 | |||||||
Energy | 98 | 93 | 324 | 369 | |||||||||||
Commercial real estate | 200 | 88 | 613 | 291 | |||||||||||
Construction and land development | — | — | — | — | |||||||||||
Residential real estate | 8 | 17 | 17 | 52 | |||||||||||
Equity lines of credit | — | — | — | — | |||||||||||
Consumer installment | — | — | — | — | |||||||||||
Total interest income recognized | $ | 692 | $ | 600 | $ | 1,816 | $ | 1,822 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial | $ | 12 | $ | 386 | $ | 841 | $ | 862 | ||||||||||||||||||
Energy | 2 | 98 | 257 | 324 | ||||||||||||||||||||||
Commercial real estate | 58 | 200 | 346 | 613 | ||||||||||||||||||||||
Construction and land development | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Residential real estate | 36 | 8 | 108 | 17 | ||||||||||||||||||||||
PPP | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Total interest income recognized | $ | 108 | $ | 692 | $ | 1,552 | $ | 1,816 |
Notes to |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Commercial | $ | 45,482 | $ | 54,410 | $ | 49,538 | $ | 49,265 | ||||||||||||||||||
Energy | 21,396 | 13,623 | 23,220 | 15,091 | ||||||||||||||||||||||
Commercial real estate | 17,937 | 16,690 | 18,132 | 16,528 | ||||||||||||||||||||||
Construction and land development | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Residential real estate | 6,419 | 2,538 | 6,304 | 2,354 | ||||||||||||||||||||||
PPP | 0 | 0 | 0 | 0 | ||||||||||||||||||||||
Consumer | 248 | 0 | 253 | 0 | ||||||||||||||||||||||
Total average impaired loans | $ | 91,482 | $ | 87,261 | $ | 97,447 | $ | 83,238 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Commercial | $ | 54,410 | $ | 27,671 | $ | 49,265 | $ | 26,849 | |||||||
Energy | 13,623 | 17,683 | 15,091 | 18,992 | |||||||||||
Commercial real estate | 16,690 | 8,055 | 16,528 | 8,101 | |||||||||||
Construction and land development | — | — | — | — | |||||||||||
Residential real estate | 2,538 | 2,046 | 2,354 | 2,059 | |||||||||||
Equity lines of credit | — | — | — | — | |||||||||||
Consumer installment | — | — | — | — | |||||||||||
Total average impaired loans | $ | 87,261 | $ | 55,455 | $ | 83,238 | $ | 56,001 |
September 30, 2020 | December 31, 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Commercial | $ | 37,774 | $ | 32,130 | |||||||
Energy | 21,185 | 4,540 | |||||||||
Commercial real estate | 13,176 | 1,063 | |||||||||
Construction and land development | 0 | 0 | |||||||||
Residential real estate | 3,179 | 1,942 | |||||||||
PPP | 0 | 0 | |||||||||
Consumer | 246 | 0 | |||||||||
Total non-accrual loans | $ | 75,560 | $ | 39,675 |
September 30, 2019 | December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Commercial | $ | 34,201 | $ | 4,781 | |||
Energy | 4,677 | 9,219 | |||||
Commercial real estate | 2,680 | 3,517 | |||||
Construction and land development | — | — | |||||
Residential real estate | 2,068 | 301 | |||||
Equity lines of credit | — | — | |||||
Consumer installment | — | — | |||||
Total non-accrual loans | $ | 43,626 | $ | 17,818 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2019 | September 30, 2018 | September 30, 2019 | September 30, 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Commercial | |||||||||||||||
- Deferred payment | $ | — | $ | — | $ | — | $ | 61 | |||||||
- Reduction of monthly payment | — | — | 994 | — | |||||||||||
- Extension of maturity date | — | — | 30,005 | 300 | |||||||||||
Energy | |||||||||||||||
- Reduction of monthly payment | — | — | — | 2,972 | |||||||||||
Commercial real estate | |||||||||||||||
- Reduction of monthly payment | — | — | 3,767 | — | |||||||||||
- Interest rate reduction | — | 1,153 | — | 2,256 | |||||||||||
Total troubled debt restructurings | $ | — | $ | 1,153 | $ | 34,766 | $ | 5,589 |
Notes to Consolidated Financial Statements (unaudited) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
- Interest rate reduction | $ | 0 | $ | 0 | $ | 3,171 | $ | 0 | |||||||||||||||
- Reduction of monthly payment | 0 | 0 | 0 | 994 | |||||||||||||||||||
- Extension of maturity date | 0 | 0 | 0 | 30,005 | |||||||||||||||||||
Energy | |||||||||||||||||||||||
- Extension of maturity date | 0 | 0 | 2,340 | 0 | |||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
- Reduction of monthly payment | 0 | 0 | 0 | 3,767 | |||||||||||||||||||
Residential real estate | |||||||||||||||||||||||
- Payment deferral | 0 | 0 | 65 | 0 | |||||||||||||||||||
Total troubled debt restructurings | $ | 0 | $ | 0 | $ | 5,576 | $ | 34,766 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||||
Number of Loans | Outstanding Balance | Balance 90 days past due at any time during previous 12 months(1) | Number of Loans | Outstanding Balance | Balance 90 days past due at any time during previous 12 months(1) | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Commercial | 6 | $ | 7,895 | $ | 3,762 | 7 | $ | 31,770 | $ | 831 | |||||||||||||||||||||||||
Energy | 3 | 3,373 | 2,713 | 2 | 2,864 | 0 | |||||||||||||||||||||||||||||
Commercial real estate | 3 | 4,683 | 0 | 3 | 4,909 | 0 | |||||||||||||||||||||||||||||
Construction and land development | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Residential real estate | 2 | 3,247 | 45 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
PPP | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Consumer | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||
Total troubled debt restructured loans | 14 | $ | 19,198 | $ | 6,520 | 12 | $ | 39,543 | $ | 831 | |||||||||||||||||||||||||
(1) Default is considered to mean 90 days or more past due as to interest or principal. | |||||||||||||||||||||||||||||||||||
September 30, 2019 | December 31, 2018 | ||||||||||||||||||
Number of Loans | Outstanding Balance | Balance 90 days past due at any time during previous 12 months(1) | Number of Loans | Outstanding Balance | Balance 90 days past due at any time during previous 12 months(1) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Commercial | 7 | $ | 36,865 | $ | — | 6 | $ | 5,022 | $ | 55 | |||||||||
Energy | 2 | 2,969 | — | 2 | 3,631 | — | |||||||||||||
Commercial real estate | 3 | 4,947 | — | 2 | 1,382 | — | |||||||||||||
Construction and land development | — | — | — | — | — | — | |||||||||||||
Residential real estate | — | — | — | 1 | 237 | — | |||||||||||||
Equity lines of credit | — | — | — | — | — | — | |||||||||||||
Consumer installment | — | — | — | — | — | — | |||||||||||||
Total restructured loans | 12 | $ | 44,781 | $ | — | 11 | $ | 10,272 | $ | 55 | |||||||||
(1) Default is considered to mean 90 days or more past due as to interest or principal. |
Notes to Consolidated Financial Statements (unaudited) |
September 30, 2019 | December 31, 2018 | ||||||||||
Product | Number of Instruments | Notional Amount | Number of Instruments | Notional Amount | |||||||
(Dollars in thousands) | |||||||||||
Back-to-back swaps | 46 | $ | 308,960 | 20 | $ | 77,709 |
September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||
Product | Number of Instruments | Notional Amount | Number of Instruments | Notional Amount | |||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Back-to-back swaps | 60 | $ | 545,559 | 56 | $ | 380,050 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Balance Sheet | September 30, | December 31, | Balance Sheet | September 30, | December 31, | ||||||||||||||
Location | 2019 | 2018 | Location | 2019 | 2018 | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||
Interest rate products | Other assets | $ | 13,735 | $ | 1,051 | Other liabilities | $ | 13,782 | $ | 1,136 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||||||
Balance Sheet | September 30, | December 31, | Balance Sheet | September 30, | December 31, | ||||||||||||||||||||||||||||||
Location | 2020 | 2019 | Location | 2020 | 2019 | ||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||
Interest rate products | Other assets | $ | 27,873 | $ | 9,838 | Other liabilities | $ | 27,949 | $ | 9,907 |
Goodwill | Core Deposit Intangible | Total Intangible Assets | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Balance at December 31, 2019 | $ | 7,397 | $ | 297 | $ | 7,694 | ||||||||||||||
Impairment | (7,397) | 0 | (7,397) | |||||||||||||||||
Amortization | — | (70) | (70) | |||||||||||||||||
Balance at September 30, 2020 | $ | 0 | $ | 227 | $ | 227 |
September 30, 2019 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||
Offsetting of derivative assets | |||||||||||||||||||||||
Derivatives | $ | 13,735 | $ | — | $ | 13,735 | $ | — | $ | — | $ | 13,735 | |||||||||||
Offsetting of derivative liabilities | |||||||||||||||||||||||
Derivatives | $ | 13,782 | $ | — | $ | 13,782 | $ | — | $ | — | $ | 13,782 |
December 31, 2018 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||
Offsetting of derivative assets | |||||||||||||||||||||||
Derivatives | $ | 1,051 | $ | — | $ | 1,051 | $ | 72 | $ | — | $ | 979 | |||||||||||
Offsetting of derivative liabilities | |||||||||||||||||||||||
Derivatives | $ | 1,136 | $ | — | $ | 1,136 | $ | 72 | $ | — | $ | 1,064 |
September 30, 2019 | September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Within One Year | One to Two Years | Two to Three Years | Three to Four Years | Four to Five Years | After Five Years | Total | Within One Year | One to Two Years | Two to Three Years | Three to Four Years | Four to Five Years | After Five Years | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | $ | 822,439 | $ | 216,486 | $ | 105,559 | $ | 52,055 | $ | 25,215 | $ | — | $ | 1,221,754 | Time deposits | $ | 948,251 | $ | 115,197 | $ | 52,074 | $ | 24,669 | $ | 495 | $ | 0 | $ | 1,140,686 | ||||||||||||||||||||||||||||||||||||||||||
Fed funds purchased & repurchase agreements | 49,810 | — | — | — | — | — | 49,810 | Fed funds purchased & repurchase agreements | 13,531 | — | — | — | — | — | 13,531 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHLB borrowings | 24,000 | 76,500 | 16,500 | 39,704 | — | 151,100 | 307,804 | FHLB borrowings | 59,500 | 21,500 | 35,000 | 0 | 5,100 | 215,000 | 336,100 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trust preferred securities(1) | — | — | — | — | — | 912 | 912 | Trust preferred securities(1) | 0 | 0 | 0 | 0 | 0 | 952 | 952 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 896,249 | $ | 292,986 | $ | 122,059 | $ | 91,759 | $ | 25,215 | $ | 152,012 | $ | 1,580,280 | $ | 1,021,282 | $ | 136,697 | $ | 87,074 | $ | 24,669 | $ | 5,595 | $ | 215,952 | $ | 1,491,269 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | Affected Line Item in the | |||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | Statements of Operations | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities | $ | 1,012 | $ | 34 | $ | 1,725 | $ | 467 | Gain on sale of available-for-sale debt securities | ||||||||||||||||||||
Less: tax effect | 248 | 9 | 422 | 115 | Income tax expense | ||||||||||||||||||||||||
Net reclassified amount | $ | 764 | $ | 25 | $ | 1,303 | $ | 352 |
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | Affected Line Item in the | |||||||||||||||
2019 | 2018 | 2019 | 2018 | Statements of Income | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Unrealized gains on available-for-sale securities | $ | 34 | $ | 195 | $ | 467 | $ | 608 | Gain on sale of available for sale securities | ||||||||
Amount reclassified before tax | 34 | 195 | 467 | 608 | |||||||||||||
Less: tax effect | 9 | 47 | 115 | 149 | Income tax expense | ||||||||||||
Net reclassified amount | $ | 25 | $ | 148 | $ | 352 | $ | 459 |
Notes to Consolidated Financial Statements (unaudited) |
Actual | Minimum Capital Required - Basel III Phase-In Schedule | Minimum Capital Required - Basel III Fully Phase-In | Required to be Considered Well Capitalized | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
September 30, 2019 | |||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Consolidated | $ | 618,407 | 13.9 | % | $ | 467,160 | 10.5 | % | $ | 467,160 | 10.5 | % | N/A | N/A | |||||||||||||
Bank | 567,667 | 12.8 | 467,085 | 10.5 | 467,085 | 10.5 | $ | 444,843 | 10.0 | % | |||||||||||||||||
Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Consolidated | 575,412 | 12.9 | 378,177 | 8.5 | 378,177 | 8.5 | N/A | N/A | |||||||||||||||||||
Bank | 524,672 | 11.8 | 378,117 | 8.5 | 378,117 | 8.5 | 355,875 | 8.0 | |||||||||||||||||||
Common Equity Tier 1 to Risk-Weighted Assets | |||||||||||||||||||||||||||
Consolidated | 574,500 | 12.9 | 311,440 | 7.0 | 311,440 | 7.0 | N/A | N/A | |||||||||||||||||||
Bank | 524,672 | 11.8 | 311,390 | 7.0 | 311,390 | 7.0 | 289,148 | 6.5 | |||||||||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||||||||
Consolidated | 575,412 | 12.6 | 183,152 | 4.0 | 183,152 | 4.0 | N/A | N/A | |||||||||||||||||||
Bank | $ | 524,672 | 11.5 | % | $ | 183,109 | 4.0 | % | $ | 183,109 | 4.0 | % | $ | 228,886 | 5.0 | % | |||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Consolidated | $ | 521,111 | 13.5 | % | $ | 380,873 | 9.9 | % | $ | 404,979 | 10.5 | % | N/A | N/A | |||||||||||||
Bank | 481,287 | 12.5 | 380,369 | 9.9 | 404,443 | 10.5 | $ | 385,184 | 10.0 | % | |||||||||||||||||
Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||
Consolidated | 483,285 | 12.5 | 303,734 | 7.9 | 327,840 | 8.5 | N/A | N/A | |||||||||||||||||||
Bank | 443,461 | 11.5 | 303,332 | 7.9 | 327,406 | 8.5 | 308,147 | 8.0 | |||||||||||||||||||
Common Equity Tier 1 to Risk-Weighted Assets | |||||||||||||||||||||||||||
Consolidated | 453,049 | 11.7 | 245,880 | 6.4 | 269,986 | 7.0 | N/A | N/A | |||||||||||||||||||
Bank | 443,461 | 11.5 | 245,555 | 6.4 | 269,629 | 7.0 | 250,369 | 6.5 | |||||||||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||||||||
Consolidated | 483,285 | 12.4 | 155,538 | 4.0 | 155,538 | 4.0 | N/A | N/A | |||||||||||||||||||
Bank | $ | 443,461 | 11.4 | % | $ | 155,420 | 4.0 | % | $ | 155,420 | 4.0 | % | $ | 194,275 | 5.0 | % |
Actual | Minimum Capital Required - Basel III Fully Phased-In | Required to be Considered Well Capitalized | |||||||||||||||||||||||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 652,827 | 13.2 | % | $ | 518,259 | 10.5 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | 601,491 | 12.2 | 518,063 | 10.5 | $ | 493,393 | 10.0 | % | |||||||||||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 590,952 | 12.0 | 419,543 | 8.5 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Bank | 539,639 | 10.9 | 419,384 | 8.5 | 394,714 | 8.0 | |||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 590,000 | 12.0 | 345,506 | 7.0 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Bank | 539,639 | 10.9 | 345,375 | 7.0 | 320,706 | 6.5 | |||||||||||||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 590,952 | 10.8 | 217,932 | 4.0 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Bank | $ | 539,639 | 9.9 | % | $ | 217,994 | 4.0 | % | $ | 272,492 | 5.0 | % | |||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||
Total Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | $ | 633,228 | 13.4 | % | $ | 495,095 | 10.5 | % | N/A | N/A | |||||||||||||||||||||||||||||||||||||
Bank | 581,600 | 12.3 | 494,954 | 10.5 | $ | 471,385 | 10.0 | % | |||||||||||||||||||||||||||||||||||||||
Tier I Capital to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 576,332 | 12.2 | 400,791 | 8.5 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Bank | 524,704 | 11.1 | 400,677 | 8.5 | 377,108 | 8.0 | |||||||||||||||||||||||||||||||||||||||||
Common Equity Tier 1 to Risk-Weighted Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 575,411 | 12.2 | 330,063 | 7.0 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Bank | 524,704 | 11.1 | 329,970 | 7.0 | 306,400 | 6.5 | |||||||||||||||||||||||||||||||||||||||||
Tier I Capital to Average Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Consolidated | 576,332 | 12.1 | 191,099 | 4.0 | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||
Bank | $ | 524,704 | 11.0 | % | $ | 191,170 | 4.0 | % | $ | 238,963 | 5.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Non-interest income subject to ASU 2014-09 | |||||||||||||||
Service charges and fees (rebates) on customer accounts | $ | 72 | $ | (100 | ) | $ | 441 | $ | 506 | ||||||
ATM and credit card interchange income | 476 | 301 | 1,312 | 827 | |||||||||||
International fees | 199 | 160 | 506 | 579 | |||||||||||
Other fees | 12 | 10 | 104 | 30 | |||||||||||
Total non-interest income from contracts with customers | 759 | 371 | 2,363 | 1,942 | |||||||||||
Non-interest income not subject to ASU 2014-09 | |||||||||||||||
Other non-interest income | 2,453 | 814 | 4,166 | 2,946 | |||||||||||
Total non-interest income | $ | 3,212 | $ | 1,185 | $ | 6,529 | $ | 4,888 |
Notes to Consolidated Financial Statements (unaudited) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Stock appreciation rights | $ | 250 | $ | 446 | $ | 744 | $ | 977 | |||||||||||||||
Performance-based stock awards | 79 | 159 | 175 | 409 | |||||||||||||||||||
Restricted stock units and awards | 857 | 719 | 2,283 | 2,184 | |||||||||||||||||||
Employee stock purchase plan | 21 | 0 | 21 | 36 | |||||||||||||||||||
Total stock-based compensation | $ | 1,207 | $ | 1,324 | $ | 3,223 | $ | 3,606 |
Performance Based Stock Awards | ||||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value | |||||||||||||
Unvested, January 1, 2020 | 192,248 | $9.88 | ||||||||||||
Granted | 41,283 | 13.55 | ||||||||||||
Vested | 0 | 0.00 | ||||||||||||
Forfeited | 0 | 0.00 | ||||||||||||
Unvested, September 30, 2020 | 233,531 | $10.53 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Stock appreciation rights | $ | 446 | $ | 220 | $ | 977 | $ | 1,905 | |||||||
Performance based restricted units and stock | 159 | 28 | 409 | 524 | |||||||||||
Restricted stock units | 510 | 280 | 1,528 | 1,957 | |||||||||||
Restricted stock awards | 209 | — | 656 | — | |||||||||||
Employee stock purchase plan | — | 38 | 36 | 127 | |||||||||||
Total stock-based compensation | $ | 1,324 | $ | 566 | $ | 3,606 | $ | 4,513 |
Restricted Stock Units and Awards | ||||||||||||||
Number of Shares | Weighted-Average Grant Date Fair Value | |||||||||||||
Unvested, January 1, 2020 | 340,780 | $15.35 | ||||||||||||
Granted | 293,297 | 11.84 | ||||||||||||
Vested | (106,146) | 12.58 | ||||||||||||
Forfeited | (15,086) | 14.54 | ||||||||||||
Unvested, September 30, 2020 | 512,845 | $13.38 |
Three months ended | Nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Computed at the statutory rate (21%) | $ | 2,725 | $ | 1,529 | $ | 7,241 | $ | 1,754 | |||||||
Increase (decrease) resulting from | |||||||||||||||
Tax-exempt income | (722 | ) | (860 | ) | (2,147 | ) | (2,754 | ) | |||||||
Nondeductible expenses | 71 | 87 | 208 | 261 | |||||||||||
State tax credit | — | — | (1,361 | ) | — | ||||||||||
State income taxes | 566 | 124 | 1,526 | 245 | |||||||||||
Equity based compensation | (5 | ) | — | (66 | ) | (400 | ) | ||||||||
Other adjustments | (43 | ) | 44 | (93 | ) | (10 | ) | ||||||||
Actual tax expense (benefit) | $ | 2,592 | $ | 924 | $ | 5,308 | $ | (904 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Computed at the statutory rate (21%) | $ | 1,996 | $ | 2,725 | $ | 1,141 | $ | 7,241 | |||||||||||||||
Increase (decrease) resulting from | |||||||||||||||||||||||
Tax-exempt income | (766) | (722) | (2,335) | (2,147) | |||||||||||||||||||
Nondeductible expenses | 21 | 71 | 119 | 208 | |||||||||||||||||||
State tax credit | 0 | 0 | 0 | (1,361) | |||||||||||||||||||
State income taxes | 320 | 566 | 501 | 1,526 | |||||||||||||||||||
Equity based compensation | (15) | (5) | 24 | (66) | |||||||||||||||||||
Goodwill impairment | 0 | 0 | 1,553 | 0 | |||||||||||||||||||
Other adjustments | (58) | (43) | (75) | (93) | |||||||||||||||||||
Actual tax expense | $ | 1,498 | $ | 2,592 | $ | 928 | $ | 5,308 | |||||||||||||||
September 30, 2019 | December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets | |||||||
Net unrealized loss on securities available-for-sale | $ | — | $ | 986 | |||
Allowance for loan losses | 10,637 | 9,358 | |||||
Lease incentive | 306 | 329 | |||||
Impairment of available for sale securities | 498 | 498 | |||||
Valuation allowance on real estate | — | 396 | |||||
Loan fees | 2,202 | 2,135 | |||||
Net operating loss carryover | 370 | 398 | |||||
Accrued expenses | 105 | 1,927 | |||||
Deferred compensation | 2,317 | 1,838 | |||||
Alternative minimum tax credits | — | 2,365 | |||||
State tax credit | 3,517 | 2,506 | |||||
Other | 63 | 79 | |||||
20,015 | 22,815 | ||||||
Deferred tax liability | |||||||
Fair market value adjustments - trust preferred securities | (350 | ) | (356 | ) | |||
Net unrealized gain on securities available-for-sale | (5,812 | ) | — | ||||
FHLB stock basis | (936 | ) | (739 | ) | |||
Premises and equipment | (4,301 | ) | (5,019 | ) | |||
Other | (1,187 | ) | (385 | ) | |||
(12,586 | ) | (6,499 | ) | ||||
Net deferred tax asset | $ | 7,429 | $ | 16,316 |
September 30, 2020 | December 31, 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Deferred tax assets | |||||||||||
Allowance for loan losses | $ | 18,613 | $ | 13,928 | |||||||
Lease incentive | 322 | 294 | |||||||||
Impairment of available-for-sale securities | 0 | 493 | |||||||||
Valuation allowance on real estate | 269 | 0 | |||||||||
Loan fees | 3,747 | 2,317 | |||||||||
Net operating loss carryover | 344 | 339 | |||||||||
Accrued expenses | 1,485 | 2,131 | |||||||||
Deferred compensation | 2,776 | 2,444 | |||||||||
State tax credit | 2,519 | 3,287 | |||||||||
Other | 60 | 81 | |||||||||
Total deferred tax asset | 30,135 | 25,314 | |||||||||
Deferred tax liability | |||||||||||
Fair market value adjustments - trust preferred securities | (341) | (348) | |||||||||
Net unrealized gain on securities available-for-sale | (8,357) | (5,339) | |||||||||
FHLB stock basis | (1,194) | (996) | |||||||||
Premises and equipment | (3,150) | (3,620) | |||||||||
Other | (1,229) | (1,229) | |||||||||
Total deferred tax liability | (14,271) | (11,532) | |||||||||
Net deferred tax asset | $ | 15,864 | $ | 13,782 | |||||||
Notes to Consolidated Financial Statements (unaudited) |
September 30, 2019 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 160,714 | $ | — | $ | 160,714 | $ | — | |||||||
Collateralized mortgage obligations - GSE residential | 148,675 | — | 148,675 | — | |||||||||||
State and political subdivisions | 420,009 | — | 420,009 | — | |||||||||||
Corporate bonds | 1,536 | — | 1,536 | — | |||||||||||
Mutual funds | 2,159 | — | 2,159 | — | |||||||||||
Derivative assets | 13,735 | — | 13,735 | — | |||||||||||
Derivative liabilities | $ | 13,782 | $ | — | $ | 13,782 | $ | — |
December 31, 2018 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 129,287 | $ | — | $ | 129,287 | $ | — | |||||||
Collateralized mortgage obligations - GSE residential | 152,626 | — | 152,626 | — | |||||||||||
State and political subdivisions | 378,058 | — | 378,058 | — | |||||||||||
Corporate bonds | 1,657 | — | 1,657 | — | |||||||||||
Mutual funds | 2,050 | — | 2,050 | — | |||||||||||
Derivative assets | 1,051 | — | 1,051 | — | |||||||||||
Derivative liabilities | $ | 1,136 | $ | — | $ | 1,136 | $ | — |
Fair Value Description |
Valuation Hierarchy Level | Where Fair Value Balance Can Be Found | ||||||||||||||||
Available-for-Sale Securities | Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. | Level 2 | |||||||||||||||
September 30, 2020 | |||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Collateral-dependent impaired loans | $ | 36,378 | $ | 0 | $ | 0 | $ | 36,378 | |||||||||||||||
Foreclosed assets held-for-sale | $ | 2,349 | $ | 0 | $ | 0 | $ | 2,349 |
December 31, 2019 | |||||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Collateral-dependent impaired loans | $ | 20,889 | $ | 0 | $ | 0 | $ | 20,889 | |||||||||||||||
September 30, 2019 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Collateral-dependent impaired loans | $ | 40,220 | $ | — | $ | — | $ | 40,220 | |||||||
Premises and equipment held-for-sale | — | — | — | — | |||||||||||
Foreclosed assets held for sale | $ | 2,471 | $ | — | $ | — | $ | 2,471 |
December 31, 2018 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Collateral-dependent impaired loans | $ | 50,288 | $ | — | $ | — | $ | 50,288 | |||||||
Premises and equipment held-for-sale | 3,444 | — | 3,444 | — | |||||||||||
Foreclosed assets held for sale | $ | — | $ | — | $ | — | $ | — |
Notes to Consolidated Financial Statements (unaudited) |
September 30, 2020 | |||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Collateral-dependent impaired loans | $ | 36,378 | Market comparable properties | Marketability discount | 10% - 15% (12%) | ||||||||||||||||||
Foreclosed assets held-for-sale | $ | 2,349 | Market comparable properties | Marketability discount | 10% |
December 31, 2019 | |||||||||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Collateral-dependent impaired loans | $ | 20,889 | Market comparable properties | Marketability discount | 10% - 15% (12%) | ||||||||||||||||||
September 30, 2019 | |||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Collateral-dependent impaired loans | $ | 40,220 | Market comparable properties | Marketability discount | 10% - 15% (12%) | ||||
Foreclosed assets held for sale | $ | 2,471 | Market comparable properties | Marketability discount | 25% |
December 31, 2018 | |||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Collateral-dependent impaired loans | $ | 50,288 | Market comparable properties | Marketability discount | 10% - 15% (12%) | ||||
Foreclosed assets held for sale | $ | — |
Notes to Consolidated Financial Statements (unaudited) |
September 30, 2020 | |||||||||||||||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 223,636 | $ | 223,636 | $ | 0 | $ | 0 | $ | 223,636 | |||||||||||||||||||
Available-for-sale securities | 652,146 | 0 | 652,146 | 0 | 652,146 | ||||||||||||||||||||||||
Loans, net of allowance for loan losses | 4,401,774 | 0 | 0 | 4,386,027 | 4,386,027 | ||||||||||||||||||||||||
Restricted equity securities | 20,923 | 0 | 0 | 20,923 | 20,923 | ||||||||||||||||||||||||
Interest receivable | 19,003 | 0 | 19,003 | 0 | 19,003 | ||||||||||||||||||||||||
Derivative assets | 27,873 | 0 | 27,873 | 0 | 27,873 | ||||||||||||||||||||||||
$ | 5,345,355 | $ | 223,636 | $ | 699,022 | $ | 4,406,950 | $ | 5,329,608 | ||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Deposits | $ | 4,492,549 | $ | 754,172 | $ | 0 | $ | 3,784,666 | $ | 4,538,838 | |||||||||||||||||||
Federal funds purchased and repurchase agreements | 13,531 | 0 | 13,531 | 0 | 13,531 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 336,100 | 0 | 353,309 | 0 | 353,309 | ||||||||||||||||||||||||
Other borrowings | 952 | 0 | 1,897 | 0 | 1,897 | ||||||||||||||||||||||||
Interest payable | 2,550 | 0 | 2,550 | 0 | 2,550 | ||||||||||||||||||||||||
Derivative liabilities | 27,949 | 0 | 27,949 | 0 | 27,949 | ||||||||||||||||||||||||
$ | 4,873,631 | $ | 754,172 | $ | 399,236 | $ | 3,784,666 | $ | 4,938,074 |
September 30, 2019 | |||||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 128,126 | $ | 128,126 | $ | — | $ | — | $ | 128,126 | |||||||||
Available-for-sale securities | 733,093 | — | 733,093 | — | 733,093 | ||||||||||||||
Loans, net of allowance for loan losses | 3,586,797 | — | — | 3,607,276 | 3,607,276 | ||||||||||||||
Restricted equity securities | 16,053 | — | — | 16,053 | 16,053 | ||||||||||||||
Interest receivable | 15,909 | — | 15,909 | — | 15,909 | ||||||||||||||
Derivative assets | 13,735 | — | 13,735 | — | 13,735 | ||||||||||||||
$ | 4,493,713 | $ | 128,126 | $ | 762,737 | $ | 3,623,329 | $ | 4,514,192 | ||||||||||
Financial Liabilities | |||||||||||||||||||
Deposits | $ | 3,658,108 | $ | 513,832 | $ | — | $ | 3,162,740 | $ | 3,676,572 | |||||||||
Federal funds purchased and repurchase agreements | 49,810 | — | 49,809 | — | 49,809 | ||||||||||||||
Federal Home Loan Bank advances | 307,804 | — | 311,583 | — | 311,583 | ||||||||||||||
Other borrowings | 912 | — | 2,054 | — | 2,054 | ||||||||||||||
Interest payable | 4,643 | — | 4,643 | — | 4,643 | ||||||||||||||
Derivative liabilities | 13,782 | — | 13,782 | — | 13,782 | ||||||||||||||
$ | 4,035,059 | $ | 513,832 | $ | 381,871 | $ | 3,162,740 | $ | 4,058,443 |
December 31, 2019 | |||||||||||||||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Financial Assets | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 187,320 | $ | 187,320 | $ | 0 | $ | 0 | $ | 187,320 | |||||||||||||||||||
Available-for-sale securities | 741,634 | 0 | 741,634 | 0 | 741,634 | ||||||||||||||||||||||||
Loans, net of allowance for loan losses | 3,795,348 | 0 | 0 | 3,810,818 | 3,810,818 | ||||||||||||||||||||||||
Restricted equity securities | 17,278 | 0 | 0 | 17,278 | 17,278 | ||||||||||||||||||||||||
Interest receivable | 15,716 | 0 | 15,716 | 0 | 15,716 | ||||||||||||||||||||||||
Derivative assets | 9,838 | 0 | 9,838 | 0 | 9,838 | ||||||||||||||||||||||||
$ | 4,767,134 | $ | 187,320 | $ | 767,188 | $ | 3,828,096 | $ | 4,782,604 | ||||||||||||||||||||
Financial Liabilities | |||||||||||||||||||||||||||||
Deposits | $ | 3,923,759 | $ | 521,826 | $ | 0 | $ | 3,407,012 | $ | 3,928,838 | |||||||||||||||||||
Federal funds purchased and repurchase agreements | 14,921 | 0 | 14,921 | 0 | 14,921 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 358,743 | 0 | 357,859 | 0 | 357,859 | ||||||||||||||||||||||||
Other borrowings | 921 | 0 | 2,147 | 0 | 2,147 | ||||||||||||||||||||||||
Interest payable | 4,584 | 0 | 4,584 | 0 | 4,584 | ||||||||||||||||||||||||
Derivative liabilities | 9,907 | 0 | 9,907 | 0 | 9,907 | ||||||||||||||||||||||||
$ | 4,312,835 | $ | 521,826 | $ | 389,418 | $ | 3,407,012 | $ | 4,318,256 |
Notes to |
December 31, 2018 | |||||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 216,541 | $ | 216,541 | $ | — | $ | — | $ | 216,541 | |||||||||
Available-for-sale securities | 661,628 | — | 661,628 | — | 661,628 | ||||||||||||||
Loans, net of allowance for loan losses | 3,022,921 | — | — | 3,027,930 | 3,027,930 | ||||||||||||||
Restricted equity securities | 14,525 | — | — | 14,525 | 14,525 | ||||||||||||||
Interest receivable | 14,092 | — | 14,092 | — | 14,092 | ||||||||||||||
Derivative assets | 1,051 | — | 1,051 | — | 1,051 | ||||||||||||||
$ | 3,930,758 | $ | 216,541 | $ | 676,771 | $ | 3,042,455 | $ | 3,935,767 | ||||||||||
Financial Liabilities | |||||||||||||||||||
Deposits | $ | 3,208,097 | $ | 484,284 | $ | — | $ | 2,696,212 | $ | 3,180,496 | |||||||||
Federal funds purchased and repurchase agreements | 75,406 | — | 75,404 | — | 75,404 | ||||||||||||||
Federal Home Loan Bank advances | 312,985 | — | 298,017 | — | 298,017 | ||||||||||||||
Other borrowings | 884 | — | 2,022 | — | 2,022 | ||||||||||||||
Interest payable | 2,868 | — | 2,868 | — | 2,868 | ||||||||||||||
Derivative liabilities | 1,136 | — | 1,136 | — | 1,136 | ||||||||||||||
$ | 3,601,376 | $ | 484,284 | $ | 379,447 | $ | 2,696,212 | $ | 3,559,943 |
September 30, 2020 | December 31, 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Commitments to originate loans | $ | 188,347 | $ | 134,652 | |||||||
Standby letters of credit | 42,204 | 39,035 | |||||||||
Lines of credit | 1,362,440 | 1,351,873 | |||||||||
Future lease commitments | 0 | 20,935 | |||||||||
Total | $ | 1,592,991 | $ | 1,546,495 |
September 30, 2019 | December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Commitments to originate loans | $ | 176,598 | $ | 190,997 | |||
Standby letters of credit | 35,699 | 32,439 | |||||
Lines of credit | 1,255,764 | 1,174,166 | |||||
Future lease commitment | 19,054 | 19,054 | |||||
Total | $ | 1,487,115 | $ | 1,416,656 |
As of or For the Period Ended September 30, 2020 | |||||||||||||||||||||||||||||
Outstanding Balance | Total Origination Fees | Earned Fees | Unearned Fees | ||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
PPP Loans | $ | 369,260 | $ | 9,946 | $ | 3,172 | $ | 6,774 |
Third | Second | First | Fourth | Third | Nine Months Ended | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | September 30, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Per Common Share Data | |||||||||||||||||||||||||||
Basic earnings per share | $ | 0.22 | $ | 0.21 | $ | 0.20 | $ | 0.22 | $ | 0.15 | $ | 0.63 | $ | 0.23 | |||||||||||||
Diluted earnings per share | 0.21 | 0.20 | 0.20 | 0.22 | 0.15 | 0.61 | 0.22 | ||||||||||||||||||||
Book value per share | 11.59 | 11.00 | 10.63 | 10.21 | 9.43 | 11.59 | 9.43 | ||||||||||||||||||||
Tangible book value per share(1) | $ | 11.44 | $ | 10.83 | $ | 10.46 | $ | 10.04 | $ | 9.24 | $ | 11.44 | $ | 9.24 | |||||||||||||
Selected Operating Ratios | |||||||||||||||||||||||||||
Yield on securities - tax equivalent(2) | 3.19 | % | 3.42 | % | 3.59 | % | 3.61 | % | 3.58 | % | 3.40 | % | 3.62 | % | |||||||||||||
Yield on loans | 5.53 | 5.66 | 5.75 | 5.56 | 5.35 | 5.64 | 5.25 | ||||||||||||||||||||
Yield on interest-earning assets(2) | 5.00 | 5.18 | 5.25 | 5.08 | 4.81 | 5.14 | 4.65 | ||||||||||||||||||||
Cost of interest-bearing deposits | 2.26 | 2.33 | 2.30 | 2.04 | 1.72 | 2.30 | 1.59 | ||||||||||||||||||||
Cost of total deposits | 1.94 | 1.99 | 1.96 | 1.70 | 1.42 | 1.96 | 1.35 | ||||||||||||||||||||
Cost of funds | 1.94 | 1.99 | 1.96 | 1.72 | 1.46 | 1.96 | 1.40 | ||||||||||||||||||||
Net interest margin(2) | 3.24 | 3.35 | 3.46 | 3.51 | 3.44 | 3.35 | 3.34 | ||||||||||||||||||||
Return on average assets | 0.89 | 0.86 | 0.91 | 1.06 | 0.70 | 0.89 | 0.37 | ||||||||||||||||||||
Non-GAAP core operating return on average assets(3) | 0.89 | 0.89 | 0.78 | 0.67 | 0.72 | 0.86 | 0.53 | ||||||||||||||||||||
Return on average equity | 7.58 | 7.78 | 7.98 | 9.03 | 6.68 | 7.76 | 3.51 | ||||||||||||||||||||
Non-GAAP core operating return on average equity(4) | 7.58 | 8.04 | 6.79 | 5.59 | 6.83 | 7.48 | 5.38 | ||||||||||||||||||||
Non-interest expense to average assets | 1.82 | 2.00 | 2.20 | 2.06 | 2.20 | 2.00 | 2.61 | ||||||||||||||||||||
Efficiency ratio(5) | 54.29 | 60.09 | 64.20 | 60.18 | 65.91 | 59.36 | 79.08 | ||||||||||||||||||||
Non-GAAP core operating efficiency ratio(6) | 54.29 | 59.40 | 64.20 | 62.61 | 65.54 | 59.13 | 72.24 | ||||||||||||||||||||
Non-GAAP tax equivalent efficiency ratio(7) | 53.43 | 59.10 | 63.10 | 59.02 | 64.31 | 58.38 | 76.82 | ||||||||||||||||||||
Non-interest-bearing deposits to total deposits | 14.05 | 14.28 | 14.36 | 15.10 | 17.99 | 14.05 | 17.99 | ||||||||||||||||||||
Loans to deposits | 99.23 | % | 96.74 | % | 96.40 | % | 95.41 | % | 97.49 | % | 99.23 | % | 97.49 | % | |||||||||||||
Credit Quality Ratios | |||||||||||||||||||||||||||
Allowance for loan losses to total loans | 1.18 | % | 1.24 | % | 1.22 | % | 1.23 | % | 1.22 | % | 1.18 | % | 1.22 | % | |||||||||||||
Nonperforming assets to total assets | 1.00 | 1.18 | 0.36 | 0.43 | 0.35 | 1.00 | 0.35 | ||||||||||||||||||||
Nonperforming loans to total loans | 1.22 | 1.45 | 0.40 | 0.58 | 0.48 | 1.22 | 0.48 | ||||||||||||||||||||
Allowance for loan losses to nonperforming loans | 97.12 | 85.20 | 307.27 | 212.30 | 256.65 | 97.12 | 256.65 | ||||||||||||||||||||
Net charge-offs (recoveries) to average loans(8) | 0.53 | % | — | % | 0.09 | % | 0.03 | % | (0.05 | )% | 0.21 | % | 0.09 | % |
Third | Second | First | Fourth | Third | Nine Months Ended | ||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | September 30, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
Capital Ratios | |||||||||||||||||||||||||||
Total stockholders’ equity to total assets | 12.95 | % | 11.16 | % | 11.26 | % | 11.94 | % | 11.03 | % | 12.95 | % | 11.03 | % | |||||||||||||
Tier 1 leverage ratio | 12.57 | 10.87 | 11.15 | 12.43 | 11.39 | 12.57 | 11.39 | ||||||||||||||||||||
Common equity tier 1 capital ratio | 12.91 | 11.02 | 11.23 | 11.75 | 10.55 | 12.91 | 10.55 | ||||||||||||||||||||
Tier 1 risk-based capital ratio | 12.93 | 11.04 | 11.23 | 12.53 | 11.38 | 12.93 | 11.38 | ||||||||||||||||||||
Total risk-based capital ratio | 13.90 | % | 12.04 | % | 12.20 | % | 13.51 | % | 12.32 | % | 13.90 | % | 12.32 | % | |||||||||||||
(1) Tangible common stockholders’ equity and tangible book value per share are non-GAAP financial measures. The most directly comparable GAAP measure is stockholders’ equity and book value per share. See ’’GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | |||||||||||||||||||||||||||
(2) Tax exempt income (tax-free municipal securities) is calculated on a tax equivalent basis. The incremental tax rate used is 21.0%. | |||||||||||||||||||||||||||
(3) Non-GAAP core operating income and non-GAAP core operating return on average assets are non-GAAP financial measures. The most directly comparable measure under GAAP is net income and return on average assets, respectively. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | |||||||||||||||||||||||||||
(4) Non-GAAP core operating return on average equity is a non-GAAP financial measure. The most directly comparable GAAP financial measure is return on average equity. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | |||||||||||||||||||||||||||
(5) We calculate efficiency ratio as non-interest expense divided by the sum of net interest income and non-interest income. | |||||||||||||||||||||||||||
(6) Non-GAAP core operating efficiency ratio is a non-GAAP financial measure. The most directly comparable GAAP financial measure is the efficiency ratio. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | |||||||||||||||||||||||||||
(7) Non-GAAP tax equivalent efficiency ratio is a non-GAAP financial measure. The most directly comparable measure is the efficiency ratio. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | |||||||||||||||||||||||||||
(8) Interim periods are annualized |
Total Loan Modifications by Category Impacted by the COVID-19 Pandemic as of September 30, 2020 | ||||||||||||||||||||
Number of Loans | Value of Loans | Percent of Gross Loans in Category | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | 51 | $ | 73,894 | 6 | % | |||||||||||||||
Energy | 4 | 34,683 | 9 | |||||||||||||||||
Commercial real estate | 31 | 176,096 | 15 | |||||||||||||||||
Construction and land development | 2 | 14,899 | 3 | |||||||||||||||||
Residential real estate | 5 | 18,128 | 3 | |||||||||||||||||
Total Loan Modifications | 93 | $ | 317,700 | 7 | % |
Total Loan Modifications by Type of Modification Impacted by the COVID-19 Pandemic as of September 30, 2020 | |||||||||||
Number of Loans | Value of Loans | ||||||||||
(Dollars in thousands) | |||||||||||
Payment deferral | 17 | $ | 97,692 | ||||||||
Interest-only payments | 45 | 135,765 | |||||||||
Other (multiple modifications, change in rate and/or payment) | 31 | 84,243 | |||||||||
Total Loan Modifications | 93 | $ | 317,700 |
Second Loan Modifications by Category Impacted by the COVID-19 Pandemic as of September 30, 2020 | |||||||||||||||||
Number of Loans | Value of Loans | Percent of Gross Loans in Category | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Recreation (subcategory) | 4 | 13,940 | |||||||||||||||
Restaurants (subcategory) | 5 | 9,233 | |||||||||||||||
Other (subcategory) | 7 | 5,875 | |||||||||||||||
Total Commercial | 16 | $ | 29,048 | 2 | % | ||||||||||||
Hotel and Lodging (subcategory) | 5 | 53,928 | |||||||||||||||
Medical and Senior Living (subcategory) | 1 | 18,612 | |||||||||||||||
Owner Occupied (subcategory) | 4 | 11,862 | |||||||||||||||
Total Commercial Real Estate | 10 | $ | 84,402 | 7 | % | ||||||||||||
Total Energy | 2 | $ | 1,859 | — | % | ||||||||||||
Total Residential Real Estate | 1 | $ | 17,220 | 3 | % | ||||||||||||
Total Second Loan Modifications | 29 | $ | 132,529 | 3 | % |
Real Estate Industries with Increased Monitoring as of September 30, 2020 | ||||||||||||||
Industry | Outstanding Balance | Percent of Gross Loans | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Retail | $ | 187,140 | 4.2 | % | ||||||||||
Hotel and Lodging | 170,953 | 3.8 | ||||||||||||
Medical and Senior Living | 183,890 | 4.1 | ||||||||||||
Commercial Industries with Increased Monitoring as of September 30, 2020 | ||||||||||||||
Industry | Outstanding Balance | Percent of Gross Loans | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Recreation | $ | 86,086 | 1.9 | % | ||||||||||
Restaurants | 63,270 | 1.4 | ||||||||||||
Aircraft and Aviation | $ | 64,248 | 1.4 | % | ||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September | June | March | December | September | |||||||||||||||||||||||
30, | 30, | 31, | 31, | 30, | September 30, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Non-GAAP core operating income: | |||||||||||||||||||||||||||
Net Income | $ | 10,384 | $ | 9,439 | $ | 9,350 | $ | 10,334 | $ | 6,354 | $ | 29,173 | $ | 9,256 | |||||||||||||
Add: restructuring charges | — | — | — | (815 | ) | — | — | 5,548 | |||||||||||||||||||
Less: tax effect(1) | — | — | — | (210 | ) | — | — | 1,591 | |||||||||||||||||||
Restructuring charges, net of tax | — | — | — | (605 | ) | — | — | 3,957 | |||||||||||||||||||
Add: fixed asset impairments | — | 424 | — | — | 171 | 424 | 171 | ||||||||||||||||||||
Less: tax effect(2) | — | 109 | — | — | 44 | 109 | 44 | ||||||||||||||||||||
Fixed asset impairments, net of tax | — | 315 | — | — | 127 | 315 | 127 | ||||||||||||||||||||
Add: state tax credit(3) | — | — | (1,361 | ) | (3,129 | ) | — | (1,361 | ) | — | |||||||||||||||||
Non-GAAP core operating income | $ | 10,384 | $ | 9,754 | $ | 7,989 | $ | 6,600 | $ | 6,481 | $ | 28,127 | $ | 13,340 | |||||||||||||
(1) Represents the tax impact of the adjustments above at a tax rate of 25.73%, plus a permanent tax benefit associated with stock-based grants that were exercised prior to our former CEO’s departure. | |||||||||||||||||||||||||||
(2) Represents the tax impact of the adjustments above at a tax rate of 25.73%. | |||||||||||||||||||||||||||
(3) No tax effect. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September | June | March | December | September | |||||||||||||||||||||||
30, | 30, | 31, | 31, | 30, | September 30, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Non-GAAP core operating return on average assets: | |||||||||||||||||||||||||||
Non-GAAP core operating income | $ | 10,384 | $ | 9,754 | $ | 7,989 | $ | 6,600 | $ | 6,481 | $ | 28,127 | $ | 13,340 | |||||||||||||
Average assets | 4,610,958 | 4,402,002 | 4,168,243 | 3,884,642 | 3,588,876 | 4,395,356 | 3,363,230 | ||||||||||||||||||||
Return on average assets | 0.89 | % | 0.86 | % | 0.91 | % | 1.06 | % | 0.70 | % | 0.89 | % | 0.37 | % | |||||||||||||
Non-GAAP core operating return on average assets | 0.89 | % | 0.89 | % | 0.78 | % | 0.67 | % | 0.72 | % | 0.86 | % | 0.53 | % | |||||||||||||
Non-GAAP core operating return on average equity: | |||||||||||||||||||||||||||
Non-GAAP core operating income | $ | 10,384 | $ | 9,754 | $ | 7,989 | $ | 6,600 | $ | 6,481 | $ | 28,127 | $ | 13,340 | |||||||||||||
Less: preferred dividends | — | — | 175 | 525 | 525 | 175 | 1,575 | ||||||||||||||||||||
Non-GAAP core operating income available to common stockholders | 10,384 | 9,754 | 7,814 | 6,075 | 5,956 | 27,952 | 11,765 | ||||||||||||||||||||
Average common equity | $ | 543,827 | $ | 486,880 | $ | 466,506 | $ | 430,881 | $ | 346,025 | $ | 499,354 | $ | 292,589 | |||||||||||||
Return on average equity | 7.58 | % | 7.78 | % | 7.98 | % | 9.03 | % | 6.68 | % | 7.76 | % | 3.51 | % | |||||||||||||
Non-GAAP core operating return on average equity | 7.58 | % | 8.04 | % | 6.79 | % | 5.59 | % | 6.83 | % | 7.48 | % | 5.38 | % |
Non-GAAP core operating efficiency ratio | |||||||||||||||||||||||||||
Non-interest expense | $ | 21,172 | $ | 21,960 | $ | 22,631 | $ | 20,166 | $ | 19,875 | $ | 65,763 | $ | 65,589 | |||||||||||||
Less: restructuring charges | — | — | — | (815 | ) | — | — | 5,548 | |||||||||||||||||||
Non-GAAP non-interest expense (numerator) | 21,172 | 21,960 | 22,631 | 20,981 | 19,875 | 65,763 | 60,041 | ||||||||||||||||||||
Net interest income | 35,786 | 34,874 | 33,605 | 32,315 | 28,968 | 104,265 | 78,053 | ||||||||||||||||||||
Non-interest income | 3,212 | 1,672 | 1,645 | 1,195 | 1,185 | 6,529 | 4,888 | ||||||||||||||||||||
Add: fixed asset impairments | — | 424 | — | — | 171 | 424 | 171 | ||||||||||||||||||||
Non-GAAP operating revenue (denominator) | $ | 38,998 | $ | 36,970 | $ | 35,250 | $ | 33,510 | $ | 30,324 | $ | 111,218 | $ | 83,112 | |||||||||||||
Efficiency ratio | 54.29 | % | 60.09 | % | 64.20 | % | 60.18 | % | 65.91 | % | 59.36 | % | 79.08 | % | |||||||||||||
Non-GAAP core operating efficiency ratio | 54.29 | % | 59.40 | % | 64.20 | % | 62.61 | % | 65.54 | % | 59.13 | % | 72.24 | % |
Period Ended | |||||||||||||||||||
September | June | March | December | September | |||||||||||||||
30, | 30, | 31, | 31, | 30, | |||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | |||||||||||||||
(Dollars in thousands except per share data) | |||||||||||||||||||
Tangible common stockholders’ equity: | |||||||||||||||||||
Stockholders’ equity | $ | 602,435 | $ | 499,195 | $ | 480,514 | $ | 490,336 | $ | 409,780 | |||||||||
Less: goodwill and other intangible assets | 7,720 | 7,745 | 7,770 | 7,796 | 7,821 | ||||||||||||||
Less: preferred stock | — | — | — | 30,000 | 30,000 | ||||||||||||||
Tangible common stockholders’ equity | $ | 594,715 | $ | 491,450 | $ | 472,744 | $ | 452,540 | $ | 371,959 | |||||||||
Tangible book value per share: | |||||||||||||||||||
Tangible common stockholders’ equity | $ | 594,715 | $ | 491,450 | $ | 472,744 | $ | 452,540 | $ | 371,959 | |||||||||
Shares outstanding at end of period | 51,969,203 | 45,367,641 | 45,202,370 | 45,074,322 | 40,261,480 | ||||||||||||||
Book value per share | $ | 11.59 | $ | 11.00 | $ | 10.63 | $ | 10.21 | $ | 9.43 | |||||||||
Tangible book value per share | $ | 11.44 | $ | 10.83 | $ | 10.46 | $ | 10.04 | $ | 9.24 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
September | June | March | December | September | |||||||||||||||||||||||
30, | 30, | 31, | 31, | 30, | September 30, | ||||||||||||||||||||||
2019 | 2019 | 2019 | 2018 | 2018 | 2019 | 2018 | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Non-GAAP Tax Equivalent Efficiency Ratio: | |||||||||||||||||||||||||||
Non-interest expense (Numerator) | $ | 21,172 | $ | 21,960 | $ | 22,631 | $ | 20,166 | $ | 19,875 | $ | 65,763 | $ | 65,589 | |||||||||||||
Net interest income | 35,786 | 34,874 | 33,605 | 32,315 | 28,968 | 104,265 | 78,053 | ||||||||||||||||||||
Tax equivalent interest income | 624 | 612 | 616 | 658 | 753 | 1,852 | 2,440 | ||||||||||||||||||||
Net interest income - tax equivalent | 36,410 | 35,486 | 34,221 | 32,973 | 29,721 | 106,117 | 80,493 | ||||||||||||||||||||
Non-interest income | 3,212 | 1,672 | 1,645 | 1,195 | 1,185 | 6,529 | 4,888 | ||||||||||||||||||||
Total tax-equivalent income (Denominator) | $ | 39,622 | $ | 37,158 | $ | 35,866 | $ | 34,168 | $ | 30,906 | $ | 112,646 | $ | 85,381 | |||||||||||||
Efficiency Ratio | 54.29 | % | 60.09 | % | 64.20 | % | 60.18 | % | 65.91 | % | 59.36 | % | 79.08 | % | |||||||||||||
Non-GAAP Tax Equivalent Efficiency Ratio | 53.43 | % | 59.10 | % | 63.10 | % | 59.02 | % | 64.31 | % | 58.38 | % | 76.82 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||
2019 | 2018 | % Change | 2019 | 2018 | % Change | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Net interest income | $ | 35,786 | $ | 28,968 | 23.5 | % | $ | 104,265 | $ | 78,053 | 33.6 | % | |||||||||
Provision for loan losses | 4,850 | 3,000 | 61.7 | 10,550 | 9,000 | 17.2 | |||||||||||||||
Non-interest income | 3,212 | 1,185 | 171.1 | 6,529 | 4,888 | 33.6 | |||||||||||||||
Non-interest expense | 21,172 | 19,875 | 6.5 | 65,763 | 65,589 | 0.3 | |||||||||||||||
Income taxes | 2,592 | 924 | 180.5 | 5,308 | (904 | ) | (687.2 | ) | |||||||||||||
Net income | $ | 10,384 | $ | 6,354 | 63.4 | % | $ | 29,173 | $ | 9,256 | 215.2 | % | |||||||||
Preferred dividends | — | 525 | (100.0 | ) | 175 | 1,575 | (88.9 | ) | |||||||||||||
Net income available to common shareholders | $ | 10,384 | $ | 5,829 | 78.1 | % | $ | 28,998 | $ | 7,681 | 277.5 | % | |||||||||
Non-GAAP core operating income(1) | $ | 10,384 | $ | 6,481 | 60.2 | % | $ | 28,127 | $ | 13,340 | 110.8 | % | |||||||||
(1) Non-GAAP core operating income is a non-GAAP financial measure. The most directly comparable measure under GAAP is net income. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income / Expense | Average Yield / Rate(4) | Average Balance | Interest Income / Expense | Average Yield / Rate(4) | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Securities - taxable | $ | 257,637 | $ | 1,290 | 1.99 | % | $ | 335,045 | $ | 2,263 | 2.68 | % | ||||||||||||||||||||||||||
Securities - tax-exempt(1) | 440,669 | 3,855 | 3.48 | 392,644 | 3,592 | 3.63 | ||||||||||||||||||||||||||||||||
Federal funds sold | — | — | — | 16,315 | 89 | 2.16 | ||||||||||||||||||||||||||||||||
Interest-bearing deposits in other banks | 166,423 | 47 | 0.11 | 171,913 | 881 | 2.03 | ||||||||||||||||||||||||||||||||
Gross loans, net of unearned income(2)(3) | 4,477,211 | 43,929 | 3.90 | 3,540,707 | 49,327 | 5.53 | ||||||||||||||||||||||||||||||||
Total interest-earning assets(1) | 5,341,940 | $ | 49,121 | 3.66 | % | 4,456,624 | $ | 56,152 | 5.00 | % | ||||||||||||||||||||||||||||
Allowance for loan losses | (75,970) | (43,327) | ||||||||||||||||||||||||||||||||||||
Other non-interest-earning assets | 220,282 | 197,661 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,486,252 | $ | 4,610,958 | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 460,420 | $ | 260 | 0.22 | % | $ | 134,987 | $ | 386 | 1.13 | % | ||||||||||||||||||||||||||
Savings and money market deposits | 1,995,307 | 2,301 | 0.46 | 1,743,575 | 9,553 | 2.17 | ||||||||||||||||||||||||||||||||
Time deposits | 1,174,555 | 4,737 | 1.60 | 1,276,571 | 8,064 | 2.51 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,630,282 | 7,298 | 0.80 | 3,155,133 | 18,003 | 2.26 | ||||||||||||||||||||||||||||||||
FHLB and short-term borrowings | 479,475 | 1,803 | 1.50 | 345,794 | 1,703 | 1.95 | ||||||||||||||||||||||||||||||||
Trust preferred securities, net of fair value adjustments | 944 | 24 | 10.19 | 904 | 37 | 16.06 | ||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | 714,337 | — | — | 535,467 | — | — | ||||||||||||||||||||||||||||||||
Cost of funds | 4,825,038 | $ | 9,125 | 0.75 | % | 4,037,298 | $ | 19,743 | 1.94 | % | ||||||||||||||||||||||||||||
Other liabilities | 47,304 | 29,833 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 613,910 | 543,827 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,486,252 | $ | 4,610,958 | ||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 39,996 | $ | 36,409 | ||||||||||||||||||||||||||||||||||
Net interest spread(1) | 2.91 | % | 3.06 | % | ||||||||||||||||||||||||||||||||||
Net interest margin(1) | 2.98 | % | 3.24 | % | ||||||||||||||||||||||||||||||||||
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal income taxes. The incremental tax rate used is 21.0%. | ||||||||||||||||||||||||||||||||||||||
(2) Loans, net of unearned income includes non-accrual loans of $76 million and $44 million as of September 30, 2020 and 2019, respectively. | ||||||||||||||||||||||||||||||||||||||
(3) Loan interest income includes loan fees of $3 million and $2 million for the three months ended September 30, 2020 and 2019, respectively. | ||||||||||||||||||||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
Three Months Ended | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
Average Balance | Interest Income / Expense | Average Yield / Rate(4) | Average Balance | Interest Income / Expense | Average Yield / Rate(4) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Securities - taxable | $ | 335,045 | $ | 2,263 | 2.68 | % | $ | 304,937 | $ | 2,454 | 3.19 | % | |||||||||
Securities - tax-exempt(1) | 392,644 | 3,592 | 3.63 | 447,333 | 4,338 | 3.85 | |||||||||||||||
Federal funds sold | 16,315 | 89 | 2.16 | 20,674 | 110 | 2.10 | |||||||||||||||
Interest-bearing deposits in other banks | 171,913 | 881 | 2.03 | 132,585 | 613 | 1.84 | |||||||||||||||
Gross loans, net of unearned income(2)(3) | 3,540,707 | 49,327 | 5.53 | 2,523,107 | 34,012 | 5.35 | |||||||||||||||
Total interest-earning assets(1) | 4,456,624 | $ | 56,152 | 5.00 | % | 3,428,636 | $ | 41,527 | 4.81 | % | |||||||||||
Allowance for loan losses | (43,327 | ) | (31,716 | ) | |||||||||||||||||
Other non-interest-earning assets | 197,661 | 191,956 | |||||||||||||||||||
Total assets | $ | 4,610,958 | $ | 3,588,876 | |||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||
Transaction deposits | $ | 134,987 | $ | 386 | 1.13 | % | $ | 56,072 | $ | 33 | 0.24 | % | |||||||||
Savings and money market deposits | 1,743,575 | 9,553 | 2.17 | 1,450,397 | 6,139 | 1.68 | |||||||||||||||
Time deposits | 1,276,571 | 8,064 | 2.51 | 801,416 | 3,827 | 1.89 | |||||||||||||||
Total interest-bearing deposits | 3,155,133 | 18,003 | 2.26 | 2,307,885 | 9,999 | 1.72 | |||||||||||||||
FHLB and short-term borrowings | 345,794 | 1,703 | 1.95 | 397,252 | 1,772 | 1.77 | |||||||||||||||
Trust preferred securities, net of fair value adjustments | 904 | 37 | 16.06 | 868 | 36 | 16.21 | |||||||||||||||
Non-interest-bearing deposits | 535,467 | — | — | 491,942 | — | — | |||||||||||||||
Cost of funds | 4,037,298 | $ | 19,743 | 1.94 | % | 3,197,947 | $ | 11,807 | 1.46 | % | |||||||||||
Other liabilities | 29,833 | 14,904 | |||||||||||||||||||
Stockholders’ equity | 543,827 | 376,025 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,610,958 | $ | 3,588,876 | |||||||||||||||||
Net interest income(1) | $ | 36,409 | $ | 29,720 | |||||||||||||||||
Net interest spread(1) | 3.06 | % | 3.35 | % | |||||||||||||||||
Net interest margin(1) | 3.24 | % | 3.44 | % | |||||||||||||||||
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%. | |||||||||||||||||||||
(2) Loans, net of unearned income includes non-accrual loans of $43.6 million and $12.5 million as of September 30, 2019 and 2018, respectively. | |||||||||||||||||||||
(3) Loan interest income includes loan fees of $2.4 million and $1.8 million for the three months ended September 30, 2019 and 2018, respectively. | |||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
Nine Months Ended | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
Average Balance | Interest Income / Expense | Average Yield / Rate(4) | Average Balance | Interest Income / Expense | Average Yield / Rate(4) | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Securities - taxable | $ | 334,272 | $ | 7,447 | 2.98 | % | $ | 273,525 | $ | 6,447 | 3.15 | % | |||||||||
Securities - tax-exempt(1) | 378,651 | 10,672 | 3.77 | 484,090 | 14,062 | 3.88 | |||||||||||||||
Federal funds sold | 18,714 | 345 | 2.46 | 18,782 | 281 | 2.00 | |||||||||||||||
Interest-bearing deposits in other banks | 135,030 | 2,107 | 2.09 | 174,740 | 2,200 | 1.68 | |||||||||||||||
Gross loans, net of unearned income(2)(3) | 3,373,118 | 142,319 | 5.64 | 2,275,039 | 89,262 | 5.25 | |||||||||||||||
Total interest-earning assets(1) | 4,239,785 | $ | 162,890 | 5.14 | % | 3,226,176 | $ | 112,252 | 4.65 | % | |||||||||||
Allowance for loan losses | (41,329 | ) | (29,607 | ) | |||||||||||||||||
Other non-interest-earning assets | 196,900 | 166,661 | |||||||||||||||||||
Total assets | $ | 4,395,356 | $ | 3,363,230 | |||||||||||||||||
Interest-bearing liabilities | |||||||||||||||||||||
Transaction deposits | $ | 127,785 | $ | 1,139 | 1.19 | % | $ | 53,995 | $ | 101 | 0.25 | % | |||||||||
Savings and money market deposits | 1,616,558 | 27,326 | 2.26 | 1,381,291 | 15,658 | 1.52 | |||||||||||||||
Time deposits | 1,249,219 | 22,956 | 2.46 | 809,550 | 10,880 | 1.80 | |||||||||||||||
Total interest-bearing deposits | 2,993,562 | 51,421 | 2.30 | 2,244,836 | 26,639 | 1.59 | |||||||||||||||
FHLB and short-term borrowings | 366,708 | 5,240 | 1.91 | 381,166 | 5,020 | 1.76 | |||||||||||||||
Trust preferred securities, net of fair value adjustments | 895 | 112 | 16.74 | 860 | 100 | 15.47 | |||||||||||||||
Non-interest-bearing deposits | 508,888 | — | — | 402,850 | — | — | |||||||||||||||
Cost of funds | 3,870,053 | $ | 56,773 | 1.96 | % | 3,029,712 | $ | 31,759 | 1.40 | % | |||||||||||
Other liabilities | 22,762 | 10,929 | |||||||||||||||||||
Stockholders’ equity | 502,541 | 322,589 | |||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,395,356 | $ | 3,363,230 | |||||||||||||||||
Net interest income(1) | $ | 106,117 | $ | 80,493 | |||||||||||||||||
Net interest spread(1) | 3.18 | % | 3.25 | % | |||||||||||||||||
Net interest margin(1) | 3.35 | % | 3.34 | % | |||||||||||||||||
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%. | |||||||||||||||||||||
(2) Loans, net of unearned income includes non-accrual loans of $43.6 million and $12.5 million as of September 30, 2019 and 2018, respectively. | |||||||||||||||||||||
(3) Loan interest income includes loan fees of $6.6 million and $5.1 million for the nine months ended September 30, 2019 and 2018, respectively. | |||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Average Balance | Interest Income / Expense | Average Yield / Rate(4) | Average Balance | Interest Income / Expense | Average Yield / Rate(4) | |||||||||||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||
Securities - taxable | $ | 285,363 | $ | 4,982 | 2.33 | % | $ | 334,272 | $ | 7,447 | 2.98 | % | ||||||||||||||||||||||||||
Securities - tax-exempt(1) | 443,506 | 11,807 | 3.56 | 378,651 | 10,672 | 3.77 | ||||||||||||||||||||||||||||||||
Federal funds sold | 1,364 | 18 | 1.73 | 18,714 | 345 | 2.46 | ||||||||||||||||||||||||||||||||
Interest-bearing deposits in other banks | 170,316 | 566 | 0.44 | 135,030 | 2,107 | 2.09 | ||||||||||||||||||||||||||||||||
Gross loans, net of unearned income(2)(3) | 4,248,520 | 138,591 | 4.36 | 3,373,118 | 142,319 | 5.64 | ||||||||||||||||||||||||||||||||
Total interest-earning assets(1) | 5,149,069 | $ | 155,964 | 4.05 | % | 4,239,785 | $ | 162,890 | 5.14 | % | ||||||||||||||||||||||||||||
Allowance for loan losses | (64,896) | (41,329) | ||||||||||||||||||||||||||||||||||||
Other non-interest-earning assets | 218,797 | 196,900 | ||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,302,970 | $ | 4,395,356 | ||||||||||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||||||||
Transaction deposits | $ | 404,967 | $ | 1,391 | 0.46 | % | $ | 127,785 | $ | 1,139 | 1.19 | % | ||||||||||||||||||||||||||
Savings and money market deposits | 1,938,669 | 11,689 | 0.81 | 1,616,558 | 27,326 | 2.26 | ||||||||||||||||||||||||||||||||
Time deposits | 1,178,632 | 16,895 | 1.91 | 1,249,219 | 22,956 | 2.46 | ||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,522,268 | 29,975 | 1.14 | 2,993,562 | 51,421 | 2.30 | ||||||||||||||||||||||||||||||||
FHLB and short-term borrowings | 456,048 | 5,145 | 1.51 | 366,708 | 5,240 | 1.91 | ||||||||||||||||||||||||||||||||
Trust preferred securities, net of fair value adjustments | 933 | 82 | 11.81 | 895 | 112 | 16.74 | ||||||||||||||||||||||||||||||||
Non-interest-bearing deposits | 668,208 | — | — | 508,888 | — | — | ||||||||||||||||||||||||||||||||
Cost of funds | 4,647,457 | $ | 35,202 | 1.01 | % | 3,870,053 | $ | 56,773 | 1.96 | % | ||||||||||||||||||||||||||||
Other liabilities | 42,731 | 22,762 | ||||||||||||||||||||||||||||||||||||
Stockholders’ equity | 612,782 | 502,541 | ||||||||||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,302,970 | $ | 4,395,356 | ||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 120,762 | $ | 106,117 | ||||||||||||||||||||||||||||||||||
Net interest spread(1) | 3.04 | % | 3.18 | % | ||||||||||||||||||||||||||||||||||
Net interest margin(1) | 3.13 | % | 3.35 | % | ||||||||||||||||||||||||||||||||||
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal income taxes. The incremental tax rate used is 21.0%. | ||||||||||||||||||||||||||||||||||||||
(2) Loans, net of unearned income includes non-accrual loans of $76 million and $44 million as of September 30, 2020 and 2019, respectively. | ||||||||||||||||||||||||||||||||||||||
(3) Loan interest income includes loan fees of $10 million and $7 million for the nine-months ended September 30, 2020 and 2019, respectively. | ||||||||||||||||||||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2020 over 2019 | September 30, 2020 over 2019 | ||||||||||||||||||||||||||||||||||||||||
Average Volume | Yield/Rate | Net Change(2) | Average Volume | Yield/Rate | Net Change(2) | ||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||
Interest Income | |||||||||||||||||||||||||||||||||||||||||
Securities - taxable | $ | (460) | $ | (513) | $ | (973) | $ | (993) | $ | (1,472) | $ | (2,465) | |||||||||||||||||||||||||||||
Securities - tax-exempt(1) | 418 | (155) | 263 | 1,759 | (624) | 1,135 | |||||||||||||||||||||||||||||||||||
Federal funds sold | (44) | (45) | (89) | (247) | (80) | (327) | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits in other banks | (28) | (806) | (834) | 443 | (1,984) | (1,541) | |||||||||||||||||||||||||||||||||||
Gross loans, net of unearned income | 11,169 | (16,567) | (5,398) | 32,557 | (36,285) | (3,728) | |||||||||||||||||||||||||||||||||||
Total interest income(1) | 11,055 | (18,086) | (7,031) | 33,519 | (40,445) | (6,926) | |||||||||||||||||||||||||||||||||||
Interest Expense | |||||||||||||||||||||||||||||||||||||||||
Transaction deposits | 373 | (499) | (126) | 1,287 | (1,035) | 252 | |||||||||||||||||||||||||||||||||||
Savings and money market deposits | 1,198 | (8,450) | (7,252) | 4,632 | (20,269) | (15,637) | |||||||||||||||||||||||||||||||||||
Time deposits | (601) | (2,726) | (3,327) | (1,236) | (4,825) | (6,061) | |||||||||||||||||||||||||||||||||||
Total interest-bearing deposits | 970 | (11,675) | (10,705) | 4,683 | (26,129) | (21,446) | |||||||||||||||||||||||||||||||||||
FHLB and short-term borrowings | 553 | (453) | 100 | 1,135 | (1,230) | (95) | |||||||||||||||||||||||||||||||||||
Trust preferred securities, net of fair value adjustments | 1 | (14) | (13) | 4 | (34) | (30) | |||||||||||||||||||||||||||||||||||
Total interest expense | 1,524 | (12,142) | (10,618) | 5,822 | (27,393) | (21,571) | |||||||||||||||||||||||||||||||||||
Net interest income(1) | $ | 9,531 | $ | (5,944) | $ | 3,587 | $ | 27,697 | $ | (13,052) | $ | 14,645 | |||||||||||||||||||||||||||||
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal income taxes. The incremental tax rate used is 21.0%. | |||||||||||||||||||||||||||||||||||||||||
(2) The change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2019 over 2018 | September 30, 2019 over 2018 | ||||||||||||||||||||||
Average Volume | Yield/Rate | Net Change(2) | Average Volume | Yield/Rate | Net Change(2) | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Securities - taxable | $ | 227 | $ | (418 | ) | $ | (191 | ) | $ | 1,364 | $ | (364 | ) | $ | 1,000 | ||||||||
Securities - tax-exempt(1) | (509 | ) | (237 | ) | (746 | ) | (3,000 | ) | (390 | ) | (3,390 | ) | |||||||||||
Federal funds sold | (24 | ) | 3 | (21 | ) | (1 | ) | 65 | 64 | ||||||||||||||
Interest-bearing deposits in other banks | 199 | 69 | 268 | (562 | ) | 469 | (93 | ) | |||||||||||||||
Gross loans, net of unearned income | 14,136 | 1,179 | 15,315 | 45,980 | 7,077 | 53,057 | |||||||||||||||||
Total interest income(1) | 14,029 | 596 | 14,625 | 43,781 | 6,857 | 50,638 | |||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Transaction deposits | 97 | 256 | 353 | 277 | 761 | 1,038 | |||||||||||||||||
Savings and money market deposits | 1,397 | 2,017 | 3,414 | 3,024 | 8,644 | 11,668 | |||||||||||||||||
Time deposits | 2,728 | 1,509 | 4,237 | 7,209 | 4,867 | 12,076 | |||||||||||||||||
Total interest-bearing deposits | 4,222 | 3,782 | 8,004 | 10,510 | 14,272 | 24,782 | |||||||||||||||||
FHLB and short-term borrowings | (241 | ) | 172 | (69 | ) | (195 | ) | 415 | 220 | ||||||||||||||
Trust preferred securities, net of fair value adjustments | 1 | — | 1 | 4 | 8 | 12 | |||||||||||||||||
Total interest expense | 3,982 | 3,954 | 7,936 | 10,319 | 14,695 | 25,014 | |||||||||||||||||
Net interest income(1) | $ | 10,047 | $ | (3,358 | ) | $ | 6,689 | $ | 33,462 | $ | (7,838 | ) | $ | 25,624 | |||||||||
(1) Tax exempt income is calculated on a tax equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21.0%. | |||||||||||||||||||||||
(2) The change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Provision for loan losses | $ | 4,850 | $ | 3,000 | $ | 1,850 | 61.7 | % | $ | 10,550 | $ | 9,000 | $ | 1,550 | 17.2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Service charges and fees (rebates) on customer accounts | $ | 72 | $ | (100 | ) | $ | 172 | NA | $ | 441 | $ | 506 | $ | (65 | ) | (12.8 | )% | ||||||||||||
Gain on sale of available for sale securities | 34 | 195 | (161 | ) | (82.6 | )% | 467 | 608 | (141 | ) | (23.2 | ) | |||||||||||||||||
Impairment of premises and equipment held for sale | — | (171 | ) | 171 | (100.0 | ) | (424 | ) | (171 | ) | (253 | ) | NA | ||||||||||||||||
Gain on sale of loans | 49 | 25 | 24 | 96.0 | 207 | 618 | (411 | ) | (66.5 | ) | |||||||||||||||||||
Income from bank-owned life insurance | 476 | 513 | (37 | ) | (7.2 | ) | 1,416 | 1,511 | (95 | ) | (6.3 | ) | |||||||||||||||||
Swap fee income, net | 1,879 | 253 | 1,626 | 642.7 | 2,415 | 299 | 2,116 | 707.7 | |||||||||||||||||||||
ATM and credit card interchange income | 476 | 301 | 175 | 58.1 | 1,312 | 827 | 485 | 58.6 | |||||||||||||||||||||
Other non-interest income | 226 | 169 | 57 | 33.7 | 695 | 690 | 5 | 0.7 | |||||||||||||||||||||
Total non-interest income | $ | 3,212 | $ | 1,185 | $ | 2,027 | 171.1 | % | $ | 6,529 | $ | 4,888 | $ | 1,641 | 33.6 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Service charges and fees on customer accounts | $ | 792 | $ | 72 | $ | 720 | 1,000 | % | $ | 1,947 | $ | 441 | $ | 1,506 | 341 | % | |||||||||||||||||||||||||||||||
Gain on sale of available-for-sale debt securities | 1,012 | 34 | 978 | 2,876 | 1,725 | 467 | 1,258 | 269 | |||||||||||||||||||||||||||||||||||||||
Impairment of premises and equipment held-for-sale | — | — | — | — | — | (424) | 424 | (100) | |||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | 49 | (49) | (100) | — | 207 | (207) | (100) | |||||||||||||||||||||||||||||||||||||||
Income from bank-owned life insurance | 464 | 476 | (12) | (3) | 1,373 | 1,416 | (43) | (3) | |||||||||||||||||||||||||||||||||||||||
Swap fee income, net | 121 | 1,879 | (1,758) | (94) | 80 | 2,415 | (2,335) | (97) | |||||||||||||||||||||||||||||||||||||||
ATM and credit card interchange income | 1,482 | 476 | 1,006 | 211 | 2,863 | 1,312 | 1,551 | 118 | |||||||||||||||||||||||||||||||||||||||
Other non-interest income | 192 | 226 | (34) | (15) | 804 | 695 | 109 | 16 | |||||||||||||||||||||||||||||||||||||||
Total non-interest income | $ | 4,063 | $ | 3,212 | $ | 851 | 26 | % | $ | 8,792 | $ | 6,529 | $ | 2,263 | 35 | % | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2019 | 2018 | $ | % | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Salary and employee benefits | $ | 14,256 | $ | 12,652 | $ | 1,604 | 12.7 | % | $ | 43,296 | $ | 43,689 | (393 | ) | (0.9 | )% | |||||||||||||
Occupancy | 2,080 | 2,132 | (52 | ) | (2.4 | ) | 6,301 | 6,199 | 102 | 1.6 | |||||||||||||||||||
Professional fees | 427 | 766 | (339 | ) | (44.3 | ) | 1,923 | 2,421 | (498 | ) | (20.6 | ) | |||||||||||||||||
Deposit insurance premiums | 302 | 823 | (521 | ) | (63.3 | ) | 2,020 | 2,411 | (391 | ) | (16.2 | ) | |||||||||||||||||
Data processing | 649 | 528 | 121 | 22.9 | 1,868 | 1,470 | 398 | 27.1 | |||||||||||||||||||||
Advertising | 580 | 527 | 53 | 10.1 | 1,770 | 1,982 | (212 | ) | (10.7 | ) | |||||||||||||||||||
Software and communication | 900 | 630 | 270 | 42.9 | 2,407 | 1,958 | 449 | 22.9 | |||||||||||||||||||||
Depreciation and amortization | 413 | 516 | (103 | ) | (20.0 | ) | 1,320 | 1,306 | 14 | 1.1 | |||||||||||||||||||
Other non-interest expense | 1,565 | 1,301 | 264 | 20.3 | 4,858 | 4,153 | 705 | 17.0 | |||||||||||||||||||||
Total non-interest expense | $ | 21,172 | $ | 19,875 | $ | 1,297 | 6.5 | % | $ | 65,763 | $ | 65,589 | $ | 174 | 0.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | $ | % | 2020 | 2019 | $ | % | ||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Salary and employee benefits | $ | 14,628 | $ | 14,256 | $ | 372 | 3 | % | $ | 43,022 | $ | 43,296 | (274) | (1) | % | ||||||||||||||||||||||||||||||||
Occupancy | 2,144 | 2,080 | 64 | 3 | 6,274 | 6,301 | (27) | — | |||||||||||||||||||||||||||||||||||||||
Professional fees | 1,132 | 427 | 705 | 165 | 3,098 | 1,923 | 1,175 | 61 | |||||||||||||||||||||||||||||||||||||||
Deposit insurance premiums | 1,096 | 302 | 794 | 263 | 3,151 | 2,020 | 1,131 | 56 | |||||||||||||||||||||||||||||||||||||||
Data processing | 652 | 649 | 3 | — | 2,065 | 1,868 | 197 | 11 | |||||||||||||||||||||||||||||||||||||||
Advertising | 147 | 580 | (433) | (75) | 870 | 1,770 | (900) | (51) | |||||||||||||||||||||||||||||||||||||||
Software and communication | 959 | 900 | 59 | 7 | 2,772 | 2,407 | 365 | 15 | |||||||||||||||||||||||||||||||||||||||
Foreclosed assets, net | 20 | 8 | 12 | 150 | 1,174 | 33 | 1,141 | 3,458 | |||||||||||||||||||||||||||||||||||||||
Goodwill impairment | — | — | — | — | 7,397 | — | 7,397 | — | |||||||||||||||||||||||||||||||||||||||
Other non-interest expense | 2,233 | 1,970 | 263 | 13 | 6,421 | 6,145 | 276 | 4 | |||||||||||||||||||||||||||||||||||||||
Total non-interest expense | $ | 23,011 | $ | 21,172 | $ | 1,839 | 9 | % | $ | 76,244 | $ | 65,763 | $ | 10,481 | 16 | % | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||||
2019 | 2018 | $ Change | % Change | 2019 | 2018 | $ Change | % Change | |||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Income tax expense (benefit) | $ | 2,592 | $ | 924 | $ | 1,668 | 180.5 | % | $ | 5,308 | $ | (904 | ) | $ | 6,212 | NA | ||||||||||||
Effective tax rate | 20.0 | % | 12.7 | % | 15.4 | % | (10.8 | )% |
As of | Change | |||||||||||||
September 30, 2019 | December 31, 2018 | $ | % | |||||||||||
(Dollars in thousands) | ||||||||||||||
Total assets | $ | 4,651,313 | $ | 4,107,215 | $ | 544,098 | 13.2 | % | ||||||
Cash and cash equivalents | 128,126 | 216,541 | (88,415 | ) | (40.8 | ) | ||||||||
Available-for-sale securities | 733,093 | 663,678 | 69,415 | 10.5 | ||||||||||
Gross loans, net of unearned income | 3,629,792 | 3,060,747 | 569,045 | 18.6 | ||||||||||
Total deposits | 3,658,108 | 3,208,097 | 450,011 | 14.0 | ||||||||||
Federal funds purchased and repurchase agreements | 49,810 | 75,406 | (25,596 | ) | (33.9 | ) | ||||||||
Federal Home Loan Bank advances | 307,804 | 312,985 | (5,181 | ) | (1.7 | ) | ||||||||
Total stockholders’ equity | $ | 602,435 | $ | 490,336 | $ | 112,099 | 22.9 | % |
September 30, 2019 | December 31, 2018 | September 30, 2019 vs. December 31, 2018 | ||||||||||||||||||
Amount | % of Gross Loans | Amount | % of Gross Loans | $ increase (decrease) | % increase (decrease) | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Commercial | $ | 1,312,647 | 36.1 | % | 1,134,414 | 36.9 | % | $ | 178,233 | 15.7 | % | |||||||||
Energy | 396,132 | 10.9 | 358,283 | 11.7 | 37,849 | 10.6 | ||||||||||||||
Commercial real estate | 993,153 | 27.3 | 846,561 | 27.6 | 146,592 | 17.3 | ||||||||||||||
Construction and land development | 527,582 | 14.5 | 440,032 | 14.3 | 87,550 | 19.9 | ||||||||||||||
Residential real estate | 365,435 | 10.0 | 246,275 | 8.0 | 119,160 | 48.4 | ||||||||||||||
Equity lines of credit | 22,192 | 0.6 | 20,286 | 0.7 | 1,906 | 9.4 | ||||||||||||||
Consumer installment | 21,552 | 0.6 | 23,528 | 0.8 | (1,976 | ) | (8.4 | ) | ||||||||||||
Gross loans | 3,638,693 | 100.0 | % | 3,069,379 | 100.0 | % | 569,314 | 18.5 | ||||||||||||
Less: Allowance for loan losses | 42,995 | 37,826 | 5,169 | 13.7 | ||||||||||||||||
Less: Net deferred loan fees and costs | 8,901 | 8,632 | 269 | 3.1 | ||||||||||||||||
Net loans | $ | 3,586,797 | $ | 3,022,921 | $ | 563,876 | 18.7 | % |
September 30, 2019 | December 31, 2018 | September 30, 2020 | December 31, 2019 | ||||||||||||||||||||||||||||||||
Amount | Percent of Allowance to Total Allowance | Amount | Percent of Allowance to Total Allowance | Amount | Percent of Allowance to Total Allowance | Amount | Percent of Allowance to Total Allowance | ||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||
Commercial | $ | 24,811 | 57.7 | % | 16,584 | 43.9 | % | Commercial | $ | 28,203 | 37 | % | $ | 35,864 | 63 | % | |||||||||||||||||||
Energy | 5,377 | 12.5 | % | 10,262 | 27.1 | % | Energy | 19,540 | 26 | 6,565 | 12 | ||||||||||||||||||||||||
Commercial real estate | 7,284 | 16.9 | % | 6,755 | 17.9 | % | Commercial real estate | 17,807 | 23 | 8,085 | 14 | ||||||||||||||||||||||||
Construction and land development | 3,016 | 7.0 | % | 2,475 | 6.5 | % | Construction and land development | 4,489 | 6 | 3,516 | 6 | ||||||||||||||||||||||||
Residential real estate | 2,220 | 5.2 | % | 1,464 | 3.9 | % | Residential real estate | 5,494 | 7 | 2,546 | 4 | ||||||||||||||||||||||||
Equity lines of credit | 160 | 0.4 | % | 159 | 0.4 | % | |||||||||||||||||||||||||||||
Consumer installment | $ | 127 | 0.3 | % | 127 | 0.3 | % | ||||||||||||||||||||||||||||
PPP | PPP | — | — | — | — | ||||||||||||||||||||||||||||||
Consumer | Consumer | 502 | 1 | 320 | 1 | ||||||||||||||||||||||||||||||
Gross loans | $ | 42,995 | 100.0 | % | 37,826 | 100.0 | % | Gross loans | $ | 76,035 | 100 | % | $ | 56,896 | 100 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Allowance for loan losses: | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 71,185 | $ | 42,852 | $ | 56,896 | $ | 37,826 | ||||||||||||||||||
Provision for loan losses | 10,875 | 4,850 | 45,825 | 10,550 | ||||||||||||||||||||||
Charge-offs: | ||||||||||||||||||||||||||
Commercial | (5,781) | (1,700) | (23,946) | (2,954) | ||||||||||||||||||||||
Energy | — | (3,000) | (2,278) | (3,000) | ||||||||||||||||||||||
Residential real estate | (256) | — | (445) | — | ||||||||||||||||||||||
Consumer | — | (8) | (104) | (19) | ||||||||||||||||||||||
Total charge-offs | (6,037) | (4,708) | (26,773) | (5,973) | ||||||||||||||||||||||
Recoveries: | ||||||||||||||||||||||||||
Commercial | 2 | 1 | 75 | 15 | ||||||||||||||||||||||
Energy | — | — | — | 576 | ||||||||||||||||||||||
Consumer | 10 | — | 12 | 1 | ||||||||||||||||||||||
Total recoveries | 12 | 1 | 87 | 592 | ||||||||||||||||||||||
Net (charge-offs) recoveries | (6,025) | (4,707) | (26,686) | (5,381) | ||||||||||||||||||||||
Balance at end of period | $ | 76,035 | $ | 42,995 | $ | 76,035 | $ | 42,995 | ||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, 2019 | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Balance at beginning of period | $ | 42,852 | $ | 30,197 | $ | 37,826 | $ | 26,091 | |||||||
Provision for loan losses | 4,850 | 3,000 | 10,550 | 9,000 | |||||||||||
Charge-offs: | |||||||||||||||
Commercial | (1,700 | ) | (97 | ) | (2,954 | ) | (681 | ) | |||||||
Energy | (3,000 | ) | — | (3,000 | ) | (1,256 | ) | ||||||||
Commercial real estate | — | — | — | — | |||||||||||
Construction and land development | — | — | — | — | |||||||||||
Residential real estate | — | — | — | — | |||||||||||
Equity lines of credit | — | — | — | (25 | ) | ||||||||||
Consumer installment | (8 | ) | — | (19 | ) | (45 | ) | ||||||||
Total charge-offs | (4,708 | ) | (97 | ) | (5,973 | ) | (2,007 | ) | |||||||
Recoveries: | |||||||||||||||
Commercial | 1 | 439 | 15 | 455 | |||||||||||
Energy | — | — | 576 | — | |||||||||||
Commercial real estate | — | — | — | — | |||||||||||
Construction and land development | — | — | — | — | |||||||||||
Residential real estate | — | — | — | — | |||||||||||
Equity lines of credit | — | — | — | — | |||||||||||
Consumer installment | — | 1 | 1 | 1 | |||||||||||
Total recoveries | 1 | 440 | 592 | 456 | |||||||||||
Net (charge-offs) recoveries | (4,707 | ) | 343 | (5,381 | ) | (1,551 | ) | ||||||||
Balance at end of period | $ | 42,995 | $ | 33,540 | $ | 42,995 | $ | 33,540 | |||||||
Allowance for loan losses to total loans | 1.18 | % | 1.22 | % | 1.18 | % | 1.22 | % | |||||||
Allowance for loan losses to nonperforming loans | 97.1 | 256.7 | 97.1 | 256.7 | |||||||||||
Net charge-offs (recoveries) to average loans(1) | 0.53 | % | (0.05 | )% | 0.21 | % | 0.09 | % | |||||||
(1) Interim periods annualized |
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Nonaccrual loans | $ | 75,560 | $ | 37,534 | $ | 26,255 | $ | 39,675 | $ | 43,626 | |||||||||||||||||||
Loans past due 90 days or more and still accruing | 4,324 | 220 | — | 4,591 | 642 | ||||||||||||||||||||||||
Total nonperforming loans | 79,884 | 37,754 | 26,255 | 44,266 | 44,268 | ||||||||||||||||||||||||
Foreclosed assets held for sale | 2,349 | 2,502 | 3,619 | 3,619 | 2,471 | ||||||||||||||||||||||||
Total nonperforming assets | $ | 82,233 | $ | 40,256 | $ | 29,874 | $ | 47,885 | $ | 46,739 | |||||||||||||||||||
Nonaccrual loans to total loans | 1.68 | % | 0.85 | % | 0.66 | % | 1.03 | % | 1.20 | % | |||||||||||||||||||
ALLL to nonaccrual loans | 100.63 | % | 189.66 | % | 195.99 | % | 143.41 | % | 98.55 | % | |||||||||||||||||||
Nonperforming assets to total assets | 1.49 | % | 0.74 | % | 0.59 | % | 0.97 | % | 1.00 | % | |||||||||||||||||||
Nonperforming loans to total loans | 1.78 | % | 0.86 | % | 0.66 | % | 1.15 | % | 1.22 | % | |||||||||||||||||||
ALLL to nonperforming loans | 95.18 | % | 188.55 | % | 195.99 | % | 128.54 | % | 97.12 | % | |||||||||||||||||||
September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Non-accrual loans | $ | 43,626 | $ | 50,044 | $ | 13,018 | $ | 17,818 | $ | 12,625 | |||||||||
Loans past due 90 days or more and still accruing | 642 | 238 | — | — | 443 | ||||||||||||||
Total nonperforming loans | 44,268 | 50,282 | 13,018 | 17,818 | 13,068 | ||||||||||||||
Foreclosed assets held for sale | 2,471 | 2,471 | 2,471 | — | — | ||||||||||||||
Impaired securities | — | — | — | — | — | ||||||||||||||
Total nonperforming assets | $ | 46,739 | $ | 52,753 | $ | 15,489 | $ | 17,818 | $ | 13,068 | |||||||||
Nonperforming assets to total assets | 1.00 | % | 1.18 | % | 0.36 | % | 0.43 | % | 0.35 | % | |||||||||
Nonperforming loans to total loans | 1.22 | % | 1.45 | % | 0.40 | % | 0.58 | % | 0.48 | % |
September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | September 30, 2018 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Loan Past Due Detail | |||||||||||||||||||
30 - 59 days past due | $ | 61,941 | $ | 15,967 | $ | 30,450 | $ | 3,062 | $ | 19,838 | |||||||||
60 - 89 days past due | 2,785 | 7,640 | 616 | 619 | 6,505 | ||||||||||||||
Total 30 - 89 days past due | $ | 64,726 | $ | 23,607 | $ | 31,066 | $ | 3,681 | $ | 26,343 | |||||||||
Loans 30 - 89 days past due to loans | 1.78 | % | 0.68 | % | 0.95 | % | 0.12 | % | 0.96 | % | |||||||||
Classified Loans | |||||||||||||||||||
Substandard | $ | 79,536 | $ | 79,190 | $ | 92,450 | $ | 96,247 | $ | 48,845 | |||||||||
Doubtful | 5,637 | 9,115 | 5,083 | 5,197 | 5,502 | ||||||||||||||
Loss | — | — | — | — | — | ||||||||||||||
Total classified loans | $ | 85,173 | $ | 88,305 | $ | 97,533 | $ | 101,444 | $ | 54,347 | |||||||||
Classified Loans / (Total Capital + ALLL) | 13.2 | % | 16.3 | % | 18.7 | % | 19.2 | % | 12.3 | % |
September 30, 2020 | June 30, 2020 | March 31, 2020 | December 31, 2019 | September 30, 2019 | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Loan Past Due Detail | |||||||||||||||||||||||||||||
30 - 59 days past due | $ | 15,324 | $ | 14,205 | $ | 12,934 | $ | 6,292 | $ | 61,941 | |||||||||||||||||||
60 - 89 days past due | 30,027 | 20,676 | 6,604 | 530 | 2,785 | ||||||||||||||||||||||||
Total 30 - 89 days past due | $ | 45,351 | $ | 34,881 | $ | 19,538 | $ | 6,822 | $ | 64,726 | |||||||||||||||||||
Loans 30 - 89 days past due / gross loans | 1.01 | % | 0.79 | % | 0.49 | % | 0.18 | % | 1.78 | % | |||||||||||||||||||
Classified Loans | |||||||||||||||||||||||||||||
Substandard - performing | $ | 224,352 | $ | 199,595 | $ | 80,876 | $ | 47,221 | $ | 41,546 | |||||||||||||||||||
Substandard - nonperforming | 67,765 | 29,030 | 19,555 | 34,192 | 37,990 | ||||||||||||||||||||||||
Doubtful | 7,794 | 8,504 | 4,088 | 5,483 | 5,637 | ||||||||||||||||||||||||
Loss | — | — | — | — | — | ||||||||||||||||||||||||
Total classified loans | 299,911 | 237,129 | 104,519 | 86,896 | 85,173 | ||||||||||||||||||||||||
Foreclosed assets held for sale | 2,349 | 2,502 | 3,619 | 3,619 | 2,471 | ||||||||||||||||||||||||
Total classified assets | $ | 302,260 | $ | 239,631 | $ | 108,138 | $ | 90,515 | $ | 87,644 | |||||||||||||||||||
Classified loans / (total capital + ALLL) | 43.2 | % | 34.9 | % | 15.8 | % | 13.2 | % | 13.2 | % | |||||||||||||||||||
Classified assets / (total capital + ALLL) | 43.6 | % | 35.3 | % | 16.3 | % | 13.7 | % | 13.6 | % | |||||||||||||||||||
ALLL to total loans | 1.70 | % | 1.61 | % | 1.29 | % | 1.48 | % | 1.18 | % | |||||||||||||||||||
Net charge-offs to average loans(1) | 0.54 | % | 0.12 | % | 2.00 | % | 0.58 | % | 0.53 | % | |||||||||||||||||||
(1) interim periods are annualized. | |||||||||||||||||||||||||||||
September 30, 2020 | December 31, 2019 | ||||||||||
(Dollars in thousands) | |||||||||||
Total on-balance sheet liquidity | $ | 847,706 | $ | 888,080 | |||||||
Total off-balance sheet liquidity | 656,602 | 524,332 | |||||||||
Total liquidity | $ | 1,504,308 | $ | 1,412,412 | |||||||
On-balance sheet liquidity as a percent of assets | 15 | % | 18 | % | |||||||
Total liquidity as a percent of assets | 27 | % | 29 | % |
September 30, 2019 | December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
On-balance sheet | |||||||
Cash and cash equivalents | $ | 109,961 | $ | 216,541 | |||
Unpledged securities available-for-sale | 696,519 | 552,950 | |||||
Total on-balance sheet liquidity | 806,480 | 769,491 | |||||
Off-balance sheet | |||||||
FHLB available funds | 157,302 | 68,704 | |||||
Federal Reserve available funds | 285,187 | 286,397 | |||||
Other available funds | 105,000 | 95,000 | |||||
Total off-balance sheet liquidity | 547,489 | 450,101 | |||||
Total liquidity | $ | 1,353,969 | $ | 1,219,592 | |||
On-balance sheet liquidity as a percent of assets | 17.3 | % | 18.8 | % | |||
Total liquidity as a percent of assets | 29.1 | % | 29.7 | % |
September 30, 2019 | |||||||||||||||||||
Payments Due by Period | |||||||||||||||||||
Less than 1 Year | 1 to 2 Years | 2 to 5 Years | More than 5 Years | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Time deposits | $ | 822,439 | $ | 216,486 | $ | 182,832 | $ | — | $ | 1,221,757 | |||||||||
Fed funds purchased & repurchase agreements | 49,810 | — | — | — | 49,810 | ||||||||||||||
FHLB borrowings and line of credit | 24,000 | 76,500 | 56,204 | 151,100 | 307,804 | ||||||||||||||
Trust preferred security | — | — | — | 2,500 | 2,500 | ||||||||||||||
Operating leases | 1,718 | 1,564 | 4,607 | 6,479 | 14,368 | ||||||||||||||
Total | $ | 897,967 | $ | 294,550 | $ | 243,643 | $ | 160,079 | $ | 1,596,239 |
December 31, 2018 | |||||||||||||||||||
Payments Due by Period | |||||||||||||||||||
Less than 1 Year | 1 to 2 Years | 2 to 5 Years | More than 5 Years | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Time deposits | $ | 444,824 | $ | 287,451 | $ | 267,856 | $ | 9,546 | $ | 1,009,677 | |||||||||
Fed funds purchased & repurchase agreements | 75,406 | — | — | — | 75,406 | ||||||||||||||
FHLB borrowings and line of credit | 44,000 | 45,000 | 72,885 | 151,100 | 312,985 | ||||||||||||||
Trust preferred security | — | — | — | 2,500 | 2,500 | ||||||||||||||
Operating leases | 1,876 | 1,633 | 4,812 | 7,450 | 15,771 | ||||||||||||||
Total | $ | 566,106 | $ | 334,084 | $ | 345,553 | $ | 170,596 | $ | 1,416,339 |
September 30, 2019 | December 31, 2018 | |||||||
(Dollars in thousands) | ||||||||
Commitments to fund C&I loans | $ | 507,195 | $ | 597,534 | ||||
Other loan commitments | 925,167 | 767,629 | ||||||
Standby letters of credit | 35,699 | 32,439 | ||||||
Lease agreements | 19,054 | 19,054 | ||||||
Total | $ | 1,487,115 | $ | 1,416,656 |
Hypothetical Change in Interest Rate - Rate Shock | |||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Change in Interest Rate (Basis Points) | Percent change in net interest income | Percent change in fair value of equity | Percent change in net interest income | Percent change in fair value of equity | |||||||||||||||||||
+300 | 1.2 | % | (7.2) | % | 12.0 | % | (2.6) | % | |||||||||||||||
+200 | 1.0 | (3.2) | 8.6 | (0.4) | |||||||||||||||||||
+100 | 0.3 | (0.8) | 4.7 | 0.5 | |||||||||||||||||||
Base | — | % | — | % | — | — | |||||||||||||||||
-100 | NA(1) | NA(1) | (5.0) | 0.1 | |||||||||||||||||||
-200 | NA(1) | NA(1) | (11.3) | % | 1.2 | % | |||||||||||||||||
(1) The Company decided to exclude the down rate environment from its analysis for the period ended September 30, 2020 due to the already low interest rate environment. |
Hypothetical Change in Interest Rate - Rate Shock | |||||||||||
September 30, 2019 | September 30, 2018 | ||||||||||
Change in Interest Rate (Basis Points) | Percent change in net interest income | Percent change in fair value of equity | Percent change in net interest income | Percent change in fair value of equity | |||||||
+300 | 12.0 | % | (2.6 | )% | 10.3 | % | (8.3 | )% | |||
+200 | 8.6 | (0.4 | ) | 7.1 | (4.6 | ) | |||||
+100 | 4.7 | 0.5 | 3.8 | (0.8 | ) | ||||||
Base | — | — | — | — | |||||||
-100 | (5.0 | ) | 0.1 | (4.2 | ) | (1.1 | ) | ||||
-200 | (11.3 | )% | 1.2 | % | (6.2 | )% | 0.3 | % |
Hypothetical Change in Interest Rate - Rate Ramp | |||||||||||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Change in Interest Rate (Basis Points) | Percent change in net interest income | Percent change in net interest income | |||||||||||||||||||||
+300 | 1.3 | % | 7.4 | % | |||||||||||||||||||
+200 | 0.8 | 5.1 | |||||||||||||||||||||
+100 | 0.3 | 2.6 | |||||||||||||||||||||
Base | — | — | |||||||||||||||||||||
-100 | NA(1) | (2.8) | |||||||||||||||||||||
-200 | NA(1) | (6.2) | % | ||||||||||||||||||||
(1) The Company decided to exclude the down rate environment from its analysis for the period ended September 30, 2020 due to the already low interest rate environment. |
Hypothetical Change in Interest Rate - Rate Ramp | |||||
September 30, 2019 | September 30, 2018 | ||||
Change in Interest Rate (Basis Points) | Percent change in net interest income | Percent change in net interest income | |||
+300 | 7.4 | % | 4.9 | % | |
+200 | 5.1 | 3.4 | |||
+100 | 2.6 | 1.7 | |||
Base | — | — | |||
-100 | (2.8 | ) | (1.8 | ) | |
-200 | (6.2 | )% | (3.6 | )% |
Incorporated by Reference | ||||||||
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date/Period End Date | ||||
S-1 | 10.1 | July 18, 2019 | ||||||
S-1 | 10.2 | July 18, 2019 | ||||||
S-1 | 10.3 | July 18, 2019 | ||||||
S-1 | 10.4 | July 18, 2019 | ||||||
S-1 | 10.5 | July 18, 2019 | ||||||
S-1 | 10.6 | July 18, 2019 | ||||||
S-1 | 10.7 | July 18, 2019 | ||||||
S-1 | 10.8 | July 18, 2019 | ||||||
S-1 | 10.9 | July 18, 2019 | ||||||
S-1 | 10.10 | July 18, 2019 | ||||||
S-1 | 10.11 | July 18, 2019 | ||||||
S-1 | 10.12 | July 18, 2019 | ||||||
S-1 | 10.13 | July 18, 2019 | ||||||
S-1 | 10.14 | July 18, 2019 | ||||||
S-1 | 10.15 | July 18, 2019 | ||||||
S-1 | 10.16 | July 18, 2019 | ||||||
S-1 | 10.17 | July 18, 2019 | ||||||
S-1 | 10.18 | July 18, 2019 | ||||||
S-1 | 10.19 | July 18, 2019 | ||||||
S-1 | 10.20 | July 18, 2019 | ||||||
S-1 | 10.21 | July 18, 2019 | ||||||
S-1 | 10.22 | July 18, 2019 | ||||||
S-1 | 10.23 | July 18, 2019 | ||||||
S-1 | 10.24 | July 18, 2019 | ||||||
S-1 | 10.25 | July 18, 2019 |
Exhibit Number | ||||||||||||||||||||||||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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 | |||||||||||||||||||||||||
104* | Cover Page Interactive Data File (formation in Inline XBRL and contained in Exhibit 101) |
Incorporated by Reference | ||||||||
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date/Period End Date | ||||
S-1 | 10.26 | July 18, 2019 | ||||||
S-1 | 10.27 | July 18, 2019 | ||||||
S-1 | 10.28 | July 18, 2019 | ||||||
S-1 | 21.1 | July 18, 2019 | ||||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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 |
CrossFirst Bankshares Inc. | ||||||||||||||||||||||||||
November 3, 2020 | ||||||||||||||||||||||||||
/s/ David L. O’Toole | ||||||||||||||||||||||||||
David L. O’Toole | ||||||||||||||||||||||||||
Chief Financial Officer | ||||||||||||||||||||||||||
(Principal Financial Officer and Principal Accounting Officer) | ||||||||||||||||||||||||||