Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Cover [Abstract] | ||
Entity Registrant Name | PROSPERITY BANCSHARES INC | |
Entity Central Index Key | 0001068851 | |
Trading Symbol | PB | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 68,396,378 | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-35388 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-2331986 | |
Entity Address, Address Line One | Prosperity Bank Plaza | |
Entity Address, Address Line Two | 4295 San Felipe | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77027 | |
City Area Code | 281 | |
Local Phone Number | 269-7199 | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 420,359 | $ 410,575 |
Federal funds sold | 521 | 552 |
Total cash and cash equivalents | 420,880 | 411,127 |
Available for sale securities, at fair value | 298,368 | 84,155 |
Held to maturity securities, at cost (fair value of $8,217,601 and $9,081,236, respectively) | 8,196,838 | 9,324,811 |
Total securities | 8,495,206 | 9,408,966 |
Loans held for sale | 20,284 | 29,367 |
Loans held for investment | 10,653,061 | 10,340,946 |
Total loans | 10,673,345 | 10,370,313 |
Less: allowance for credit losses | (87,061) | (86,440) |
Loans, net | 10,586,284 | 10,283,873 |
Accrued interest receivable | 53,789 | 56,532 |
Goodwill | 1,900,845 | 1,900,845 |
Core deposit intangibles, net | 29,051 | 32,883 |
Bank premises and equipment, net | 263,703 | 257,046 |
Other real estate owned | 815 | 1,805 |
Bank owned life insurance (BOLI) | 262,381 | 260,335 |
Federal Home Loan Bank of Dallas stock | 39,542 | 55,959 |
Other assets | 40,321 | 24,031 |
TOTAL ASSETS | 22,092,817 | 22,693,402 |
Deposits: | ||
Noninterest-bearing | 5,784,002 | 5,666,115 |
Interest-bearing | 11,145,918 | 11,590,443 |
Total deposits | 16,929,920 | 17,256,558 |
Other borrowings | 600,795 | 1,031,126 |
Securities sold under repurchase agreements | 311,404 | 284,720 |
Accrued interest payable | 5,438 | 4,201 |
Other liabilities | 118,454 | 63,973 |
Total liabilities | 17,966,011 | 18,640,578 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $1 par value; 20,000,000 shares authorized; none issued or outstanding | ||
Common stock, $1 par value; 200,000,000 shares authorized; 68,396,778 shares issued and outstanding at September 30, 2019; 69,846,825 shares issued and outstanding at December 31, 2018 | 68,397 | 69,847 |
Capital surplus | 1,959,960 | 2,045,351 |
Retained earnings | 2,098,411 | 1,937,316 |
Accumulated other comprehensive income —net unrealized gain on available for sale securities, net of tax expense of $10 and $82, respectively | 38 | 310 |
Total shareholders’ equity | 4,126,806 | 4,052,824 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 22,092,817 | $ 22,693,402 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Held to maturity securities, fair value | $ 8,217,601 | $ 9,081,236 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 68,396,778 | 69,846,825 |
Common stock, shares outstanding (in shares) | 68,396,778 | 69,846,825 |
Accumulated other comprehensive income (loss)—net unrealized gain (loss) on available for sale securities, tax expense (benefit) | $ 10 | $ 82 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 134,943 | $ 128,645 | $ 398,533 | $ 373,336 |
Securities | 50,872 | 55,705 | 160,464 | 165,739 |
Federal funds sold and other earning assets | 363 | 326 | 1,083 | 940 |
Total interest income | 186,178 | 184,676 | 560,080 | 540,015 |
INTEREST EXPENSE: | ||||
Deposits | 26,939 | 19,208 | 78,629 | 49,741 |
Other borrowings | 4,335 | 7,583 | 15,208 | 16,602 |
Securities sold under repurchase agreements | 914 | 566 | 2,504 | 1,327 |
Total interest expense | 32,188 | 27,357 | 96,341 | 67,670 |
NET INTEREST INCOME | 153,990 | 157,319 | 463,739 | 472,345 |
PROVISION FOR CREDIT LOSSES | 1,100 | 2,350 | 2,600 | 15,350 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 152,890 | 154,969 | 461,139 | 456,995 |
NONINTEREST INCOME: | ||||
Nonsufficient funds (NSF) fees | 8,835 | 8,606 | 24,624 | 24,261 |
Credit card, debit card and ATM card income | 6,688 | 6,242 | 19,139 | 18,538 |
Service charges on deposit accounts | 5,020 | 5,137 | 15,007 | 15,562 |
Trust income | 2,492 | 2,692 | 7,645 | 7,671 |
Mortgage income | 839 | 856 | 2,551 | 2,728 |
Brokerage income | 522 | 784 | 1,736 | 2,096 |
Net (loss) gain on sale of assets | (3) | 4 | 57 | (40) |
Net loss on sale of securities | 0 | 0 | 0 | (13) |
Other | 6,280 | 6,303 | 18,016 | 16,130 |
Total noninterest income | 30,673 | 30,624 | 88,775 | 86,933 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 52,978 | 51,906 | 156,992 | 155,665 |
Net occupancy and equipment | 5,607 | 5,808 | 16,565 | 17,109 |
Credit and debit card, data processing and software amortization | 4,989 | 4,512 | 14,466 | 13,316 |
Regulatory assessments and FDIC insurance | 1,814 | 3,347 | 6,513 | 10,497 |
Core deposit intangibles amortization | 1,248 | 1,478 | 3,832 | 4,547 |
Depreciation | 3,286 | 3,139 | 9,501 | 9,226 |
Communications | 2,214 | 2,442 | 6,667 | 7,628 |
Other real estate expense, net | (47) | 217 | (75) | 521 |
Other | 8,610 | 8,911 | 25,630 | 26,907 |
Total noninterest expense | 80,699 | 81,760 | 240,091 | 245,416 |
INCOME BEFORE INCOME TAXES | 102,864 | 103,833 | 309,823 | 298,512 |
PROVISION FOR INCOME TAXES | 21,106 | 21,310 | 63,405 | 60,031 |
NET INCOME | $ 81,758 | $ 82,523 | $ 246,418 | $ 238,481 |
EARNINGS PER SHARE: | ||||
Basic | $ 1.19 | $ 1.18 | $ 3.55 | $ 3.42 |
Diluted | $ 1.19 | $ 1.18 | $ 3.55 | $ 3.42 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 81,758 | $ 82,523 | $ 246,418 | $ 238,481 |
Securities available for sale: | ||||
Change in unrealized (losses) gains during the period | (1,563) | 149 | (344) | 729 |
Total other comprehensive (loss) income | (1,563) | 149 | (344) | 729 |
Deferred tax benefit (expense) related to other comprehensive (loss) income | 328 | (31) | 72 | (153) |
Other comprehensive (loss) income, net of tax | (1,235) | 118 | (272) | 576 |
Comprehensive income | $ 80,523 | $ 82,641 | $ 246,146 | $ 239,057 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
BALANCE at Dec. 31, 2017 | $ 3,824,154 | $ 69,491 | $ 2,035,219 | $ 1,719,557 | $ (113) |
BALANCE (in shares) at Dec. 31, 2017 | 69,490,910 | ||||
Net income | 238,481 | 238,481 | |||
Other comprehensive income (loss) | 576 | 576 | |||
Common stock issued in connection with the issuance of restricted stock awards, net | $ 347 | (347) | |||
Common stock issued in connection with the issuance of restricted stock awards, net (in shares) | 347,076 | ||||
Stock based compensation expense | 7,906 | 7,906 | |||
Cash dividends declared | (75,420) | (75,420) | |||
BALANCE at Sep. 30, 2018 | 3,995,697 | $ 69,838 | 2,042,778 | 1,882,618 | 463 |
BALANCE (in shares) at Sep. 30, 2018 | 69,837,986 | ||||
BALANCE at Jun. 30, 2018 | 3,935,452 | $ 69,838 | 2,040,032 | 1,825,237 | 345 |
BALANCE (in shares) at Jun. 30, 2018 | 69,838,186 | ||||
Net income | 82,523 | 82,523 | |||
Other comprehensive income (loss) | 118 | 118 | |||
Common stock issued in connection with the issuance of restricted stock awards, net (in shares) | (200) | ||||
Stock based compensation expense | 2,746 | 2,746 | |||
Cash dividends declared | (25,142) | (25,142) | |||
BALANCE at Sep. 30, 2018 | 3,995,697 | $ 69,838 | 2,042,778 | 1,882,618 | 463 |
BALANCE (in shares) at Sep. 30, 2018 | 69,837,986 | ||||
BALANCE at Dec. 31, 2018 | 4,052,824 | $ 69,847 | 2,045,351 | 1,937,316 | 310 |
BALANCE (in shares) at Dec. 31, 2018 | 69,846,825 | ||||
Net income | 246,418 | 246,418 | |||
Other comprehensive income (loss) | (272) | (272) | |||
Common stock issued in connection with the issuance of restricted stock awards, net | $ 23 | (23) | |||
Common stock issued in connection with the issuance of restricted stock awards, net (in shares) | 23,184 | ||||
Common stock repurchase | (94,484) | $ (1,473) | (93,011) | ||
Common stock repurchase (in shares) | (1,473,231) | ||||
Stock based compensation expense | 7,643 | 7,643 | |||
Cash dividends declared | (85,323) | (85,323) | |||
BALANCE at Sep. 30, 2019 | 4,126,806 | $ 68,397 | 1,959,960 | 2,098,411 | 38 |
BALANCE (in shares) at Sep. 30, 2019 | 68,396,778 | ||||
BALANCE at Jun. 30, 2019 | 4,127,895 | $ 69,261 | 2,012,665 | 2,044,696 | 1,273 |
BALANCE (in shares) at Jun. 30, 2019 | 69,261,431 | ||||
Net income | 81,758 | 81,758 | |||
Other comprehensive income (loss) | (1,235) | (1,235) | |||
Common stock issued in connection with the issuance of restricted stock awards, net | $ 10 | (10) | |||
Common stock issued in connection with the issuance of restricted stock awards, net (in shares) | 9,750 | ||||
Common stock repurchase | (56,063) | $ (874) | (55,189) | ||
Common stock repurchase (in shares) | (874,403) | ||||
Stock based compensation expense | 2,494 | 2,494 | |||
Cash dividends declared | (28,043) | (28,043) | |||
BALANCE at Sep. 30, 2019 | $ 4,126,806 | $ 68,397 | $ 1,959,960 | $ 2,098,411 | $ 38 |
BALANCE (in shares) at Sep. 30, 2019 | 68,396,778 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Retained Earnings [Member] | ||||
Cash dividend declared, per share (in dollars per share) | $ 0.41 | $ 0.36 | $ 1.23 | $ 1.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 246,418 | $ 238,481 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and core deposit intangibles amortization | 13,333 | 13,773 |
Provision for credit losses | 2,600 | 15,350 |
Net amortization of premium on investments | 22,223 | 24,276 |
Net (gain) loss on sale of other real estate and repossessed assets | (346) | 130 |
Net loss on sale of investment securities | 0 | 13 |
Net (gain) loss on sale of assets | (57) | 40 |
Net accretion of discount on loans | (4,303) | (11,006) |
Net amortization of premium on deposits | (106) | |
Gain on sale of loans | (2,355) | (2,590) |
Proceeds from sale of loans held for sale | 132,554 | 145,961 |
Originations of loans held for sale | (121,212) | (140,007) |
Stock based compensation expense | 7,643 | 7,906 |
Decrease (increase) in accrued interest receivable and other assets | 13,860 | (36,038) |
Increase (decrease) in accrued interest payable and other liabilities | 38,840 | (29,975) |
Net cash provided by operating activities | 349,198 | 226,208 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal paydowns of held to maturity securities | 1,328,559 | 1,341,650 |
Purchase of held to maturity securities | (222,906) | (1,322,082) |
Proceeds from maturities and principal paydowns of available for sale securities | 9,020,085 | 8,123,942 |
Purchase of available for sale securities | (9,234,545) | (7,999,686) |
Net increase in loans held for investment | (312,461) | (278,155) |
Purchase of bank premises and equipment | (16,253) | (10,491) |
Proceeds from sale of bank premises, equipment and other real estate | 4,531 | 12,362 |
Proceeds from insurance claims | 3,637 | 2,463 |
Net cash provided by (used in) investing activities | 570,647 | (129,997) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in noninterest-bearing deposits | 117,887 | 76,920 |
Net decrease in interest-bearing deposits | (444,525) | (1,164,510) |
Net (repayments of) proceeds from other short-term borrowings | (430,000) | 1,000,000 |
Repayments of other long-term borrowings | (331) | (4,016) |
Net increase (decrease) in securities sold under repurchase agreements | 26,684 | (27,028) |
Repurchase of common stock | (94,484) | |
Payments of cash dividends | (85,323) | (75,420) |
Net cash used in financing activities | (910,092) | (194,054) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 9,753 | (97,843) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 411,127 | 392,313 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 420,880 | 294,470 |
NONCASH ACTIVITIES: | ||
Acquisition of real estate through foreclosure of collateral | 1,998 | 153 |
SUPPLEMENTAL INFORMATION: | ||
Income taxes paid | 63,250 | 114,960 |
Interest paid | $ 95,104 | $ 66,861 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | PROSPERITY BANCSHARES, INC.® AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2019 (UNAUDITED) 1. BASIS OF PRESENTATION The consolidated financial statements include the accounts of Prosperity Bancshares, Inc. ® ® The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis; and all such adjustments are of a normal recurring nature. These financial statements and the notes thereto should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. Operating results for the nine-month period ended September 30, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 or any other period. |
Income Per Common Share
Income Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | 2. INCOME PER COMMON SHARE The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share data) Net income $ 81,758 $ 82,523 $ 246,418 $ 238,481 Basic: Weighted average shares outstanding 68,738 $ 1.19 69,838 $ 1.18 69,463 $ 3.55 69,815 $ 3.42 Diluted: Weighted average shares outstanding 68,738 $ 1.19 69,838 $ 1.18 69,463 $ 3.55 69,815 $ 3.42 As of September 30, 2019, all stock options have been exercised and there are no options outstanding. There were no stock options exercisable during the three and nine months ended September 30, 2019 or 2018 that would have had an anti-dilutive effect on the above computation. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
New Accounting Standards | 3. NEW ACCOUNTING STANDARDS Accounting Standards Updates (“ASU”) ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of current expected credit losses (“CECL”) is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Additionally, available for sale debt securities may realize value either through collection of contractual cash flows or through sale of the security at fair value. Therefore, the amendments limit the amount of the allowance for credit losses to the difference between amortized cost and fair value. ASU 2016-13 will be effective for the Company as of January 1, 2020. The Company’s implementation workgroup is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others, and meets periodically to discuss the latest developments and monitor implementation progress. During the third quarter of 2019, the Company had a third-party model validation completed and will continue running parallel processes during the fourth quarter of 2019. The Company continues to assess CECL disclosure requirements and developing appropriate internal controls around the CECL process. The Company continues to evaluate the potential impact of ASU 2016-13 on the Company’s financial statements. Based on the Company’s loan portfolio at September 30, 2019 and current expectation of future economic conditions, the allowance for credit losses as a percentage of total loans is expected to increase from 0.82% to between 1.00% and 1.10%. This estimate does not incorporate the anticipated impact of the merger with LegacyTexas Financial Group, Inc. (“LegacyTexas”) , which was consummated on November 1, 2019. ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires that lessees recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The requirements for lessors under ASU 2016-02 are largely unchanged from existing guidance, however certain necessary changes have been made to align with specific changes to lessee accounting and key aspects of the revenue recognition guidance (Topic 606). The Company’s leases relate primarily to office space and banking centers. The Company identified and reviewed existing leases applicable to ASU 2016-02 and elected certain optional practical expedients: 1) not to reassess whether any expired or existing contracts are or contain leases, 2) not to reassess the lease classification for any expired or existing lease, 3) not to reassess initial direct cost for any existing leases and 4) not to separately identify lease and non-lease components. Additionally, the Company elected the short-term lease exemption for lease terms less than 12 months. The Company adopted ASU 2016-02 on January 1, 2019 using a modified retrospective transition approach without adjusting comparative periods. With the adoption of the new standard, the Company recognized right-of-use assets and lease liabilities of $17.3 million as of January 1, 2019. See Note 9 “Contractual Obligations and Off-Balance Sheet Items — Contractual Obligations — Leases” for additional information. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | 4. SECURITIES The amortized cost and fair value of investment securities were as follows: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale States and political subdivisions $ 470 $ 1 $ — $ 471 Collateralized mortgage obligations 242,013 134 (421 ) 241,726 Mortgage-backed securities 55,836 734 (399 ) 56,171 Total $ 298,319 $ 869 $ (820 ) $ 298,368 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 13,903 $ 64 $ — $ 13,967 States and political subdivisions 189,000 6,398 (68 ) 195,330 Collateralized mortgage obligations 435 5 — 440 Mortgage-backed securities 7,993,500 50,799 (36,435 ) 8,007,864 Total $ 8,196,838 $ 57,266 $ (36,503 ) $ 8,217,601 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale States and political subdivisions $ 1,159 $ 7 $ — $ 1,166 Collateralized mortgage obligations 12,724 69 (37 ) 12,756 Mortgage-backed securities 69,880 553 (200 ) 70,233 Total $ 83,763 $ 629 $ (237 ) $ 84,155 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 25,778 $ — $ (100 ) $ 25,678 States and political subdivisions 253,198 3,440 (777 ) 255,861 Collateralized mortgage obligations 509 1 (2 ) 508 Mortgage-backed securities 9,045,326 5,798 (251,935 ) 8,799,189 Total $ 9,324,811 $ 9,239 $ (252,814 ) $ 9,081,236 Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The investment securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI analysis. Investment securities classified as available for sale or held to maturity are evaluated for OTTI under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 320, “ Investments-Debt and Equity Securities.” In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at the time of such determination. When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the OTTI will be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI will be separated into the amount representing the credit-related portion of the impairment loss (“credit loss”) and the noncredit portion of the impairment loss (“noncredit portion”). The amount of the total OTTI related to the credit loss is determined based on the difference between the present value of cash flows expected to be collected and the amortized cost basis and such difference is recognized in earnings. The amount of the total OTTI related to the noncredit portion is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in earnings will become the new amortized cost basis of the investment. Management has the ability and intent to hold the securities classified as held-to-maturity until they mature, at which time the Company will receive full value for the securities. Furthermore, as of September 30, 2019, management does not have the intent to sell any of the securities classified as available for sale before a recovery of cost. In addition, management believes it is more likely than not that the Company will not be required to sell any of its investment securities before a recovery of cost. The unrealized losses are largely due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2019, management believes any impairment in the Company’s securities is temporary, and therefore no impairment loss has been recognized in the Company’s consolidated statement of income. Securities with unrealized losses, segregated by length of time, that have been in a continuous loss position were as follows: September 30, 2019 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 201,708 $ (419 ) $ 78 $ (2 ) $ 201,786 $ (421 ) Mortgage-backed securities 17,839 (399 ) 4 — 17,843 (399 ) Total $ 219,547 $ (818 ) $ 82 $ (2 ) $ 219,629 $ (820 ) Held to Maturity States and political subdivisions $ 31,717 $ (59 ) $ 4,718 $ (9 ) $ 36,435 $ (68 ) Mortgage-backed securities 506,878 (1,794 ) 3,560,213 (34,641 ) 4,067,091 (36,435 ) Total $ 538,595 $ (1,853 ) $ 3,564,931 $ (34,650 ) $ 4,103,526 $ (36,503 ) December 31, 2018 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 12 $ — $ 2,096 $ (37 ) $ 2,108 $ (37 ) Mortgage-backed securities 50,950 (197 ) 2,091 (3 ) 53,041 (200 ) Total $ 50,962 $ (197 ) $ 4,187 $ (40 ) $ 55,149 $ (237 ) Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 20,720 $ (76 ) $ 4,957 $ (24 ) $ 25,677 $ (100 ) States and political subdivisions 89,407 (328 ) 58,262 (449 ) 147,669 (777 ) Collateralized mortgage obligations — — 292 (2 ) 292 (2 ) Mortgage-backed securities 1,003,089 (8,401 ) 6,873,948 (243,534 ) 7,877,037 (251,935 ) Total $ 1,113,216 $ (8,805 ) $ 6,937,459 $ (244,009 ) $ 8,050,675 $ (252,814 ) At September 30, 2019 and December 31, 2018, there were 158 securities and 731 securities, respectively, in an unrealized loss position for 12 months or more. The amortized cost and fair value of investment securities at September 30, 2019, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations at any time with or without call or prepayment penalties. Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 37,313 $ 37,430 $ 470 $ 471 Due after one year through five years 117,760 121,632 — — Due after five years through ten years 43,321 45,507 — — Due after ten years 4,509 4,728 — — Subtotal 202,903 209,297 470 471 Mortgage-backed securities and collateralized mortgage obligations 7,993,935 8,008,304 297,849 297,897 Total $ 8,196,838 $ 8,217,601 $ 298,319 $ 298,368 The Company recorded no gain or loss on the sale of securities for the three and nine months ended September 30, 2019 and for the three months ended September 30, 2018. The Company recorded a $13 thousand loss on the sale of securities for the nine months ended September 30, 2018. As of September 30, 2019, the Company did not own any non-agency collateralized mortgage obligations. At September 30, 2019 and December 31, 2018, the Company did not own securities of any one issuer (other than the U.S. government and its agencies) for which aggregate adjusted cost exceeded 10% of the consolidated shareholders’ equity at such respective dates. Securities with an amortized cost of $5.16 billion and $6.04 billion and a fair value of $5.16 billion and $5.86 billion at September 30, 2019 and December 31, 2018, respectively, were pledged to collateralize public deposits and for other purposes required or permitted by law. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES The loan portfolio consists of various types of loans and is categorized by major type as follows: September 30, 2019 December 31, 2018 (Dollars in thousands) Residential mortgage loans held for sale $ 20,284 $ 29,367 Commercial and industrial 1,460,415 1,483,571 Real estate: Construction, land development and other land loans 1,764,648 1,622,289 1-4 family residential (includes home equity) 2,703,398 2,677,542 Commercial real estate (includes multi-family residential) 3,652,176 3,538,557 Farmland 536,895 545,373 Agriculture 192,690 184,128 Consumer and other 342,839 289,486 Total loans held for investment 10,653,061 10,340,946 Total $ 10,673,345 $ 10,370,313 Concentrations of Credit. Most of the Company’s lending activity occurs within the states of Texas and Oklahoma. Commercial real estate loans, 1-4 family residential loans and construction, land development and other land loans make up 76.1% of the Company’s total loan portfolio at September 30, 2019. As of September 30, 2019 and December 31, 2018, there were no concentrations of loans related to any single industry in excess of 10% Related Party Loans. As of September 30, 2019 and December 31, 2018, loans outstanding to directors, officers and their affiliates totaled $1.7 million and $1.9 million, respectively. All transactions between the Company and such related parties are conducted in the ordinary course of business and made on the same terms and conditions as similar transactions with unaffiliated persons. An analysis of activity with respect to these related party loans is as follows: As of and for the nine months ended September As of and for the year ended December (Dollars in thousands) Beginning balance on January 1 $ 1,923 $ 2,694 New loans 1 5 Repayments (196 ) (776 ) Ending balance $ 1,728 $ 1,923 Nonperforming Assets and Nonaccrual and Past Due Loans. The Company has several procedures in place to assist it in maintaining the overall quality of its loan portfolio. The Company has established underwriting guidelines to be followed by its officers, including requiring appraisals on loans collateralized by real estate. The Company also monitors its delinquency levels for any negative or adverse trends. Nevertheless, the Company’s loan portfolio could become subject to increasing pressures from deteriorating borrower credit due to general economic conditions. The Company generally places a loan on nonaccrual status and ceases accruing interest when the payment of principal or interest is delinquent for 90 days, or earlier in some cases, unless the loan is in the process of collection and the underlying collateral fully supports the carrying value of the loan. With respect to potential problem loans, an evaluation of the borrower’s overall financial condition is made to determine the need, if any, for possible writedowns or appropriate additions to the allowance for credit losses. An aging analysis of past due loans, segregated by category of loan, is presented below: September 30, 2019 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 4,686 $ — $ 4,686 $ 390 $ 1,759,572 $ 1,764,648 Agriculture and agriculture real estate (includes farmland) 1,289 — 1,289 285 728,011 729,585 1-4 family (includes home equity) (1) 9,082 215 9,297 19,258 2,695,127 2,723,682 Commercial real estate (includes multi-family residential) 4,670 — 4,670 14,179 3,633,327 3,652,176 Commercial and industrial 4,550 125 4,675 15,822 1,439,918 1,460,415 Consumer and other 77 1 78 39 342,722 342,839 Total $ 24,354 $ 341 $ 24,695 $ 49,973 $ 10,598,677 $ 10,673,345 December 31, 2018 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 6,363 $ 788 $ 7,151 $ 1,386 $ 1,613,752 $ 1,622,289 Agriculture and agriculture real estate (includes farmland) 705 — 705 256 728,540 729,501 1-4 family (includes home equity) (1) 10,479 2,995 13,474 4,515 2,688,920 2,706,909 Commercial real estate (includes multi-family residential) 9,063 — 9,063 2,727 3,526,767 3,538,557 Commercial and industrial 6,652 221 6,873 4,215 1,472,483 1,483,571 Consumer and other 1,012 — 1,012 48 288,426 289,486 Total $ 34,274 $ 4,004 $ 38,278 $ 13,147 $ 10,318,888 $ 10,370,313 (1) Includes $20.3 million and $29.4 million of residential mortgage loans held for sale at September 30, 2019 and December 31, 2018, respectively. The following table presents information regarding nonperforming assets as of the dates indicated: September 30, 2019 December 31, 2018 (Dollars in thousands) Nonaccrual loans (1) $ 49,973 $ 13,147 Accruing loans 90 or more days past due 341 4,004 Total nonperforming loans 50,314 17,151 Repossessed assets 28 — Other real estate 815 1,805 Total nonperforming assets $ 51,157 $ 18,956 Nonperforming assets to total loans and other real estate 0.48 % 0.18 % (1) Includes troubled debt restructurings of $14.2 million and $51 thousand as of September 30, 2019 and December 31, 2018, respectively. The Company had $51.2 million in nonperforming assets at September 30, 2019 compared with $19.0 million at December 31, 2018. Nonperforming assets were 0.48% of total loans and other real estate at September 30, 2019 compared with 0.18% of total loans and other real estate at December 31, 2018. If interest on nonaccrual loans had been accrued under the original loan terms, approximately $2.2 million and $1.4 million would have been recorded as income for the nine months ended September 30, 2019 and 2018, respectively. The Company had $50.0 million in nonaccrual loans at September 30, 2019 compared with $13.4 million at September 30, 2018. Acquired Loans. Acquired loans were preliminarily recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, interest rates, projected default rates, loss given default, and recovery rates. During the valuation process, the Company identified Purchased Credit-Impaired (“PCI”) and Non-PCI loans in the acquired loan portfolios. Loans acquired with evidence of credit quality deterioration at acquisition for which it was probable that the Company would not be able to collect all contractual amounts due were accounted for as PCI. PCI loan identification considers the following factors: payment history and past due status, debt service coverage, loan grading, collateral values and other factors that may indicate deterioration of credit quality since origination. Non-PCI loan identification considers the following factors: account types, remaining terms, annual interest rates or coupons, current market rates, interest types, past delinquencies, timing of principal and interest payments, loan to value ratios, loss exposures and remaining balances. Accretion of purchased discounts on PCI loans will be based on estimated future cash flows, regardless of contractual maturities. Accretion of purchased discounts on Non-PCI loans will be recognized on a level-yield basis based on contractual maturity of individual loans. PCI Loans. The recorded investment in PCI loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of September 30, 2019 and December 31, 2018. September 30, 2019 December 31, 2018 (Dollars in thousands) PCI loans: Outstanding balance $ 9,630 $ 11,419 Discount (1,888 ) (2,831 ) Recorded investment $ 7,742 $ 8,588 Changes in the accretable yield for acquired PCI loans for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands) Balance at beginning of period $ 904 $ 3,969 $ 1,534 $ 8,121 Reclassifications from nonaccretable 26 181 62 486 Accretion (277 ) (2,170 ) (943 ) (6,627 ) Balance at September 30, $ 653 $ 1,980 $ 653 $ 1,980 Income recognition on PCI loans is subject to the Company’s ability to reasonably estimate both the timing and amount of future cash flows. PCI loans for which the Company is accruing interest income are not considered non-performing or impaired. The non-accretable difference represents contractual principal and interest the Company does not expect to collect. Non-PCI Loans. The recorded investment in Non-PCI loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of September 30, 2019 and December 31, 2018. September 30, 2019 December 31, 2018 (Dollars in thousands) Non-PCI loans: Outstanding balance $ 431,319 $ 526,840 Discount (11,473 ) (14,833 ) Recorded investment $ 419,846 $ 512,007 Changes in the discount accretion for Non-PCI loans for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands) Balance at beginning of period $ 12,479 $ 17,431 $ 14,833 $ 20,533 Accretion charge-offs — (20 ) — (30 ) Accretion (1,006 ) (1,287 ) (3,360 ) (4,379 ) Balance at September 30, $ 11,473 $ 16,124 $ 11,473 $ 16,124 Impaired Loans. Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following tables. No interest income was recognized on impaired loans subsequent to their classification as impaired. The average recorded investment presented in the tables below is reported on a year-to-date basis. September 30, 2019 Recorded Investment Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (Dollars in thousands) With no related allowance recorded: Construction, land development and other land loans $ — $ — $ — $ 496 Agriculture and agriculture real estate (includes farmland) 147 147 — 202 1-4 family (includes home equity) 11,825 12,560 — 8,001 Commercial real estate (includes multi-family residential) 13,206 13,606 — 7,966 Commercial and industrial 15,144 17,646 — 9,007 Consumer and other 39 43 — 44 Total 40,361 44,002 — 25,716 With an allowance recorded: Construction, land development and other land loans 390 390 58 390 Agriculture and agriculture real estate (includes farmland) 138 138 14 69 1-4 family (includes home equity) 5,236 5,268 1,067 2,751 Commercial real estate (includes multi-family residential) 973 993 283 486 Commercial and industrial 678 681 174 1,003 Consumer and other — — — — Total 7,415 7,470 1,596 4,699 Total: Construction, land development and other land loans 390 390 58 886 Agriculture and agriculture real estate (includes farmland) 285 285 14 271 1-4 family (includes home equity) 17,061 17,828 1,067 10,752 Commercial real estate (includes multi-family residential) 14,179 14,599 283 8,452 Commercial and industrial 15,822 18,327 174 10,010 Consumer and other 39 43 — 44 $ 47,776 $ 51,472 $ 1,596 $ 30,415 December 31, 2018 Recorded Investment Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (Dollars in thousands) With no related allowance recorded: Construction, land development and other land loans $ 993 $ 995 $ — $ 788 Agriculture and agriculture real estate (includes farmland) 256 311 — 194 1-4 family (includes home equity) 4,177 4,903 — 4,048 Commercial real estate (includes multi-family residential) 2,727 2,848 — 2,475 Commercial and industrial 2,870 3,810 — 5,358 Consumer and other 48 76 — 135 Total 11,071 12,943 — 12,998 With an allowance recorded: Construction, land development and other land loans 391 391 58 195 Agriculture and agriculture real estate (includes farmland) — — — — 1-4 family (includes home equity) 266 289 56 729 Commercial real estate (includes multi-family residential) — — — 743 Commercial and industrial 1,328 1,332 571 3,740 Consumer and other — — — — Total 1,985 2,012 685 5,407 Total: Construction, land development and other land loans 1,384 1,386 58 983 Agriculture and agriculture real estate (includes farmland) 256 311 — 194 1-4 family (includes home equity) 4,443 5,192 56 4,777 Commercial real estate (includes multi-family residential) 2,727 2,848 — 3,218 Commercial and industrial 4,198 5,142 571 9,098 Consumer and other 48 76 — 135 $ 13,056 $ 14,955 $ 685 $ 18,405 Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for credit losses, management assigns and tracks loan grades to be used as credit quality indicators. The following is a general description of the loan grades used: Grade 1— Credits in this category have risk potential that is virtually nonexistent. These loans may be secured by insured certificates of deposit, insured savings accounts, U.S. Government securities and highly rated municipal bonds. Grade 2— Credits in this category are of the highest quality. These borrowers represent top rated companies and individuals with unquestionable financial standing with excellent global cash flow coverage, net worth, liquidity and collateral coverage. Grade 3— Credits in this category are not immune from risk but are well protected by the collateral and paying capacity of the borrower. These loans may exhibit a minor unfavorable credit factor, but the overall credit is sufficiently strong to minimize the possibility of loss. Grade 4— Credits in this category are considered to be of acceptable credit quality with moderately greater risk than Grade 3 and receiving closer monitoring. Loans in this category have sources of repayment that remain sufficient to preclude a larger than normal probability of default and secondary sources are likewise currently of sufficient quantity, quality, and liquidity to protect the Company against loss of principal and interest. These borrowers have specific risk factors, but the overall strength of the credit is acceptable based on other mitigating credit and/or collateral factors and can repay the debt in the normal course of business. Grade 5— Credits in this category constitute an undue and unwarranted credit risk; however, the factors do not rise to a level of substandard. These credits have potential weaknesses and/or declining trends that, if not corrected, could expose the Company to risk at a future date. These loans are monitored on the Company ’s internally-generated watch list and evaluated on a quarterly basis. Grade 6— Credits in this category are considered “substandard” but “non-impaired” loans in accordance with regulatory guidelines. Loans in this category have well-defined weakness that, if not corrected, could make default of principal and interest possible. Loans in this category are still accruing interest and may be dependent upon secondary sources of repayment and/or collateral liquidation. Grade 7— Credits in this category are deemed “substandard” and “impaired” pursuant to regulatory guidelines. As such, the Company has determined that it is probable that less than 100% of the contractual principal and interest will be collected. These loans are individually evaluated for a specific reserve and will typically have the accrual of interest stopped. Grade 8— Credits in this category include “doubtful” loans in accordance with regulatory guidance. Such loans are no longer accruing interest and factors indicate a loss is imminent. These loans are also deemed “impaired.” While a specific reserve may be in place while the loan and collateral is being evaluated, these loans are typically charged down to an amount the Company estimates is collectible. Grade 9— Credits in this category are deemed a “loss” in accordance with regulatory guidelines and have been charged off or charged down. The Company may continue collection efforts and may have partial recovery in the future. The following table presents loans by risk grade and category of loan at September 30, 2019. Impaired loans include loans in risk grades 7, 8 and 9, as well as any PCI loan that has a specific reserve allocated to it. Construction, Land Development and Other Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home (1) Commercial Real Estate (includes Multi-Family Commercial and Industrial Consumer and Other Total (Dollars in thousands) Grade 1 $ — $ 12,021 $ — $ — $ 54,518 $ 34,366 $ 100,905 Grade 2 1,556 3,400 12,430 21,476 20,448 64,354 123,664 Grade 3 1,596,753 639,697 2,623,058 3,032,835 1,049,208 214,519 9,156,070 Grade 4 156,900 69,282 58,596 520,024 264,851 23,175 1,092,828 Grade 5 3,233 3,726 6,001 42,720 49,423 4,759 109,862 Grade 6 5,407 850 2,406 18,179 6,029 1,627 34,498 Grade 7 390 285 17,061 14,179 15,806 39 47,760 Grade 8 — — — — 16 — 16 Grade 9 — — — — — — — PCI Loans 409 324 4,130 2,763 116 — 7,742 Total $ 1,764,648 $ 729,585 $ 2,723,682 $ 3,652,176 $ 1,460,415 $ 342,839 $ 10,673,345 (1) Includes $20.3 million of residential mortgage loans held for sale at September 30, 2019. The following table presents loans by risk grade and category of loan at December 31, 2018 . Impaired loans include loans in risk grades 7, 8 and 9, as well as any PCI loan that has a specific reserve allocated to it. Construction, Land Development and Other Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home (1) Commercial Real Estate (includes Multi-Family Commercial and Industrial Consumer and Other Total (Dollars in thousands) Grade 1 $ — $ 15,725 $ — $ — $ 59,979 $ 37,135 $ 112,839 Grade 2 1,040 3,974 21,465 22,207 11,003 55,802 115,491 Grade 3 1,509,532 636,674 2,598,600 2,974,474 1,083,328 171,758 8,974,366 Grade 4 99,087 66,650 61,430 481,735 243,743 20,164 972,809 Grade 5 3,673 5,578 12,522 37,942 58,088 2,978 120,781 Grade 6 7,081 282 4,332 16,006 23,081 1,601 52,383 Grade 7 1,384 256 4,395 2,727 4,165 48 12,975 Grade 8 — — 48 — 33 — 81 Grade 9 — — — — — — — PCI Loans 492 362 4,117 3,466 151 — 8,588 Total $ 1,622,289 $ 729,501 $ 2,706,909 $ 3,538,557 $ 1,483,571 $ 289,486 $ 10,370,313 (1) Includes $29.4 million of residential mortgage loans held for sale at December 31, 2018. Allowance for Credit Losses. The allowance for credit losses is established through charges to earnings in the form of a provision for credit losses. Management has established an allowance for credit losses which it believes is adequate as of September 30, 2019 for estimated losses in the Company’s loan portfolio. The amount of the allowance for credit losses is affected by the following: (1) charge-offs of loans that occur when loans are deemed uncollectible and decrease the allowance, (2) recoveries on loans previously charged off that increase the allowance and (3) provisions for credit losses charged to earnings that increase the allowance. Based on an evaluation of the loan portfolio and consideration of the factors listed below, management presents a quarterly review of the allowance for credit losses to the Bank’s Board of Directors, indicating any change in the allowance since the last review and any recommendations as to adjustments in the allowance. Although management believes it uses the best information available to make determinations with respect to the allowance for credit losses, future adjustments may be necessary if economic conditions or the borrower’s performance differ from the assumptions used in making the initial determinations. The Company’s allowance for credit losses consists of two components: (1) a specific valuation allowance based on probable losses on specifically identified loans and (2) a general valuation allowance based on historical loan loss experience, general economic conditions and other qualitative risk factors both internal and external to the Company. In setting the specific valuation allowance, the Company follows a loan review program to evaluate the credit risk in the total loan portfolio and assigns risk grades to each loan. Through this loan review process, the Company maintains an internal list of impaired loans, which along with the delinquency list of loans, helps management assess the overall quality of the loan portfolio and the adequacy of the allowance for credit losses. All loans that have been identified as impaired are reviewed on a quarterly basis in order to determine whether a specific reserve is required. For certain impaired loans, the Company allocates a specific loan loss reserve primarily based on the value of the collateral securing the impaired loan in accordance with ASC Topic 310-10, “ Receivables. In connection with this review of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. Some of the risk elements include: • for 1-4 family residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan to value ratio, and the age, condition and marketability of collateral; • for commercial real estate loans and multifamily residential loans, the debt service coverage ratio (income from the property in excess of operating expenses compared to loan payment requirements), operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; • for construction, land development and other land loans, the perceived feasibility of the project including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; • for commercial and industrial loans, the operating results of the commercial, industrial or professional enterprise, the borrower’s business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral; • for agriculture real estate loans, the experience and financial capability of the borrower, projected debt service coverage of the operations of the borrower and loan to value ratio; and • for non-real estate agriculture loans, the operating results, experience and financial capability of the borrower, historical and expected market conditions and the value, nature and marketability of collateral. In addition, for each category, the Company considers secondary sources of income and the financial strength and credit history of the borrower and any guarantors. In determining the amount of the general valuation allowance, management considers factors such as historical loan loss experience, concentration risk of specific loan types, the volume, growth and composition of the Company’s loan portfolio, current economic conditions that may affect the borrower’s ability to pay and the value of collateral, the evaluation of the Company’s loan portfolio through its internal loan review process, general economic conditions, other qualitative risk factors both internal and external to the Company and other relevant factors in accordance with ASC Topic 450, “ Contingencies. The following table details activity in the allowance for credit losses by category of loan for the three and nine months ended September 30, 2019 and 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Allowance for credit losses: Three Months Ended Balance June 30, 2019 $ 15,886 $ 3,816 $ 14,383 $ 12,166 $ 39,177 $ 1,578 $ 87,006 Provision for credit losses (290 ) 188 543 452 (763 ) 970 1,100 Charge-offs — (294 ) — — (419 ) (1,024 ) (1,737 ) Recoveries 6 16 9 1 502 158 692 Net charge-offs 6 (278 ) 9 1 83 (866 ) (1,045 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 Nine Months Ended Balance December 31, 2018 $ 15,582 $ 3,693 $ 14,135 $ 11,220 $ 40,223 $ 1,587 $ 86,440 Provision for credit losses 21 (921 ) 799 1,396 (918 ) 2,223 2,600 Charge-offs (63 ) (358 ) (22 ) — (2,501 ) (2,821 ) (5,765 ) Recoveries 62 1,312 23 3 1,693 693 3,786 Net charge-offs (1 ) 954 1 3 (808 ) (2,128 ) (1,979 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 Allowance for credit losses: Three Months Ended Balance June 30, 2018 $ 14,450 $ 3,756 $ 13,353 $ 10,616 $ 41,454 $ 1,335 $ 84,964 Provision for credit losses 519 (158 ) 593 411 (17 ) 1,002 2,350 Charge-offs — (25 ) (17 ) — (742 ) (978 ) (1,762 ) Recoveries 1 138 6 10 85 204 444 Net charge-offs 1 113 (11 ) 10 (657 ) (774 ) (1,318 ) Balance September 30, 2018 $ 14,970 $ 3,711 $ 13,935 $ 11,037 $ 40,780 $ 1,563 $ 85,996 Nine Months Ended Balance December 31, 2017 $ 14,815 $ 3,772 $ 14,490 $ 10,628 $ 38,810 $ 1,526 $ 84,041 Provision for credit losses 276 (280 ) (173 ) 1,887 11,690 1,950 15,350 Charge-offs (130 ) (25 ) (403 ) (1,489 ) (10,112 ) (2,889 ) (15,048 ) Recoveries 9 244 21 11 392 976 1,653 Net charge-offs (121 ) 219 (382 ) (1,478 ) (9,720 ) (1,913 ) (13,395 ) Balance September 30, 2018 $ 14,970 $ 3,711 $ 13,935 $ 11,037 $ 40,780 $ 1,563 $ 85,996 The following table details the amount of the allowance for credit losses allocated to each category of loan as of September 30, 2019, December 31, 2018 and September 30, 2018, on the basis of the impairment methodology used to determine the allowance for credit losses. Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Allowance for credit losses related September 30, 2019 Individually evaluated for impairment $ 58 $ 14 $ 1,067 $ 283 $ 174 $ — $ 1,596 Collectively evaluated for impairment 15,544 3,712 13,868 12,336 38,323 1,682 85,465 PCI loans — — — — — — — Total allowance for credit losses $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 December 31, 2018 Individually evaluated for impairment $ 58 $ — $ 56 $ — $ 571 $ — $ 685 Collectively evaluated for impairment 15,524 3,693 14,079 11,220 39,652 1,587 85,755 PCI loans — — — — — — — Total allowance for credit losses $ 15,582 $ 3,693 $ 14,135 $ 11,220 $ 40,223 $ 1,587 $ 86,440 September 30, 2018 Individually evaluated for impairment $ — $ — $ 53 $ 10 $ 500 $ — $ 563 Collectively evaluated for impairment 14,970 3,711 13,882 11,027 40,280 1,563 85,433 PCI loans — — — — — — — Total allowance for credit losses $ 14,970 $ 3,711 $ 13,935 $ 11,037 $ 40,780 $ 1,563 $ 85,996 The following table details the recorded investment in loans by category of loan on the basis of the impairment methodology used to determine the allowance for credit losses as of September 30, 2019, December 31, 2018 and September 30, 2018, excluding $20.3 million, $29.4 million and $28.0 million, respectively, of residential mortgage loans held for sale. Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Recorded investment in September 30, 2019 Individually evaluated for impairment $ 390 $ 285 $ 17,061 $ 14,179 $ 15,822 $ 39 $ 47,776 Collectively evaluated for impairment 1,763,849 728,976 2,682,207 3,635,234 1,444,477 342,800 10,597,543 PCI loans 409 324 4,130 2,763 116 — 7,742 Total loans evaluated for impairment $ 1,764,648 $ 729,585 $ 2,703,398 $ 3,652,176 $ 1,460,415 $ 342,839 $ 10,653,061 December 31, 2018 Individually evaluated for impairment $ 1,384 $ 256 $ 4,443 $ 2,727 $ 4,198 $ 48 $ 13,056 Collectively evaluated for impairment 1,620,413 728,883 2,668,982 3,532,364 1,479,222 289,438 10,319,302 PCI loans 492 362 4,117 3,466 151 — 8,588 Total loans evaluated for impairment $ 1,622,289 $ 729,501 $ 2,677,542 $ 3,538,557 $ 1,483,571 $ 289,486 $ 10,340,946 September 30, 2018 Individually evaluated for impairment $ 869 $ 262 $ 4,427 $ 2,256 $ 5,506 $ 68 $ 13,388 Collectively evaluated for impairment 1,558,632 705,113 2,677,237 3,500,651 1,519,196 281,044 10,241,873 PCI loans 641 375 4,076 4,316 152 — 9,560 Total loans evaluated for impairment $ 1,560,142 $ 705,750 $ 2,685,740 $ 3,507,223 $ 1,524,854 $ 281,112 $ 10,264,821 Troubled Debt Restructurings. The restructuring of a loan is considered a “troubled debt restructuring” if both (1) the borrower is experiencing financial difficulties and (2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Under ASC Topic 310-40 “ the Company evaluates all loan modifications to identify whether the restructuring constitutes a troubled debt restructuring. As of September 30, 2019 and 2018, the Company had $14.2 million and $115 thousand, respectively, in outstanding troubled debt restructurings. The following table presents information regarding the recorded investment of loans modified as troubled debt restructurings during the nine months ended September 30, 2019 and 2018. Nine Months Ended September 30, 2019 2018 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Construction, land development and other land loans — $ — $ — — $ — $ — Agriculture and agriculture real estate (includes farmland) — — — — — — 1-4 Family (includes home equity) — — — — — — Commercial real estate (includes multi-family residential) — — — — — — Commercial and industrial 2 14,993 14,188 2 198 72 Consumer and other — — — — — — Total 2 $ 14,993 $ 14,188 2 $ 198 $ 72 As of September 30, 2019, there have been no defaults on any loans that were modified as troubled debt restructurings during the preceding twelve months. Default is determined at 90 or more days past due. For the nine months ended September 30, 2019, the Company added two loans totaling $15.0 million as new troubled debt restructurings, of which $14.2 million remained outstanding at September 30, 2019. For the nine months ended September 30, 2018, the Company added two loans totaling $198 thousand as new troubled debt restructurings, of which $72 thousand remained outstanding at September 30, 2018. The modifications generally related to extending the amortization periods of the loans, which includes loans modified during bankruptcy. The Company did not grant principal reductions on any restructured loans at the time of modification. These modifications did not have a material impact on the Company’s determination of the allowance for credit losses. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair values represent the estimated price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price.” Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record other assets at fair value on a nonrecurring basis such as certain loans including residential mortgage loans held for sale, goodwill and other intangible assets and other real estate owned. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write downs of individual assets. ASC Topic 820 “ Fair Value Measurements and Disclosures Fair Value Hierarchy The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities) or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. The fair value disclosures below represent the Company’s estimates based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding current economic conditions, risk characteristics of the various instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in the above methodologies and assumptions could significantly affect the estimates. The following tables present fair values for assets and liabilities measured at fair value on a recurring basis: As of September 30, 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: States and political subdivisions $ — $ 471 $ — $ 471 Collateralized mortgage obligations — 241,726 — 241,726 Mortgage-backed securities — 56,171 — 56,171 Total $ — $ 298,368 $ — $ 298,368 As of December 31, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: States and political subdivisions $ — $ 1,166 $ — $ 1,166 Collateralized mortgage obligations — 12,756 — 12,756 Mortgage-backed securities — 70,233 — 70,233 Total $ — $ 84,155 $ — $ 84,155 Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). These instruments include other real estate owned, repossessed assets, held to maturity debt securities, loans held for sale and impaired loans, which are included as loans held for investment. For the three and nine months ended September 30, 2019, the Company had additions to other real estate owned of $59 thousand and $2.0 million, respectively, of which $59 thousand and $1.7 million, respectively, were outstanding as of September 30, 2019. For the three and nine months ended September 30, 2019, the Company had additions to impaired loans of $12.5 million and $42.9 million, respectively, of which $12.5 million and $40.4 million, respectively, were outstanding as of September 30, 2019. The remaining financial assets and liabilities measured at fair value on a non-recurring basis that were recorded in 2019 and remained outstanding at September 30, 2019 were not significant. The following tables present carrying and fair value information of financial instruments as of the dates indicated: As of September 30, 2019 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Assets (Dollars in thousands) Cash and due from banks $ 420,359 $ 420,359 $ — $ — $ 420,359 Federal funds sold 521 521 — — 521 Held to maturity securities 8,196,838 — 8,217,601 — 8,217,601 Loans held for sale 20,284 — 20,284 — 20,284 Loans held for investment, net of allowance 10,566,000 — — 10,498,468 10,498,468 Other real estate owned 815 — 815 — 815 Liabilities Deposits: Noninterest-bearing $ 5,784,002 $ — $ 5,784,002 $ — $ 5,784,002 Interest-bearing 11,145,918 — 11,142,770 — 11,142,770 Other borrowings 600,795 — 600,833 — 600,833 Securities sold under repurchase agreements 311,404 — 311,411 — 311,411 As of December 31, 2018 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Assets (Dollars in thousands) Cash and due from banks $ 410,575 $ 410,575 $ — $ — $ 410,575 Federal funds sold 552 552 — — 552 Held to maturity securities 9,324,811 — 9,081,236 — 9,081,236 Loans held for sale 29,367 — 29,367 — 29,367 Loans held for investment, net of allowance 10,254,506 — — 10,144,556 10,144,556 Other real estate owned 1,805 — 1,805 — 1,805 Liabilities Deposits: Noninterest-bearing $ 5,666,115 $ — $ 5,666,115 $ — $ 5,666,115 Interest-bearing 11,590,443 — 11,564,521 — 11,564,521 Other borrowings 1,031,126 — 1,031,161 — 1,031,161 Securities sold under repurchase agreements 284,720 — 284,685 — 284,685 The following is a description of the fair value estimates, methods and assumptions that are used by the Company in estimating the fair values of financial instruments. Loans held for sale — Loans held for sale are carried at the lower of cost or estimated fair value. Fair value for consumer mortgages held for sale is based on commitments on hand from investors or prevailing market prices. As such, the Company classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2. Loans held for investment — The Company does not record loans at fair value on a recurring basis. As such, valuation techniques discussed herein for loans are primarily for estimating fair value disclosures. The Company refined the calculation to estimate fair value for loans held for investment to be in accordance with ASU 2016-01. The refined discounted cash flow calculation to determine fair value considers internal and market-based information such as prepayment risk, cost of funds and liquidity. From time to time, the Company records nonrecurring fair value adjustments to impaired loans to reflect (1) partial write downs that are based on the observable market price or current appraised value of the collateral, or (2) the full charge-off of the loan carrying value. Where appraisals are not available, estimated cash flows are discounted using a rate commensurate with the credit risk associated with those cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. The Company classifies the estimated fair value of loans held for investment as Level 3. Other real estate owned — Other real estate owned is primarily foreclosed properties securing residential loans and commercial real estate. Foreclosed assets are adjusted to fair value less estimated costs to sell upon transfer of the loans to other real estate owned. Subsequently, these assets are carried at the lower of carrying value or fair value less estimated costs to sell. Other real estate carried at fair value based on an observable market price or a current appraised value is classified by the Company as Level 2. When management determines that the fair value of other real estate requires additional adjustments, either as a result of a non-current appraisal or when there is no observable market price, the Company classifies the other real estate as Level 3. The fair value estimates presented herein are based on pertinent information available to management at September 30, 2019. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangibles | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangibles | 7. GOODWILL AND CORE DEPOSIT INTANGIBLES Changes in the carrying amount of the Company’s goodwill and core deposit intangibles for the nine months ended September 30, 2019 and the year ended December 31, 2018 were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance as of December 31, 2017 $ 1,900,845 $ 38,842 Less: Amortization — (5,959 ) Balance as of December 31, 2018 1,900,845 32,883 Less: Amortization — (3,832 ) Balance as of September 30, 2019 $ 1,900,845 $ 29,051 Goodwill is recorded as of the acquisition date of each entity. The Company may record subsequent adjustments to goodwill for amounts undeterminable at acquisition date, such as deferred taxes and real estate valuations, and therefore the goodwill amounts may change accordingly. The Company initially records the total premium paid on acquisitions as goodwill. After finalizing the valuation, core deposit intangibles are identified and reclassified from goodwill to core deposit intangibles on the balance sheet. This reclassification has no effect on total assets, liabilities, shareholders’ equity, net income or cash flows. Management performs an evaluation annually, and more frequently if a triggering event occurs, of whether any impairment of the goodwill and core deposit intangibles has occurred. If any such impairment is determined, a write-down is recorded. As of September 30, 2019, there was no impairment recorded on goodwill and core deposit intangibles. The measurement period for the Company to determine the fair value of acquired identifiable assets and assumed liabilities will be at the end of the earlier of (1) twelve months from the date of acquisition or (2) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the date of acquisition. Core deposit intangibles are being amortized on a non-pro rata basis over their estimated lives, which the Company believes is between 10 and 15 years. Amortization expense related to intangible assets totaled $1.2 million and $1.5 million for the three months ended September 30, 2019 and 2018, respectively, and $3.8 million and $4.5 million for the nine months ended September 30, 2019 and 2018, respectively. The estimated aggregate future amortization expense for core deposit intangibles remaining as of September 30, 2019 is as follows (dollars in thousands): Remaining 2019 $ 1,219 2020 4,483 2021 4,022 2022 3,664 2023 3,350 Thereafter 12,313 Total $ 29,051 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 8. STOCK–BASED COMPENSATION At September 30, 2019, the Company had one stock-based employee compensation plan with awards outstanding. During 2012, Bancshares’ Board of Directors established the Prosperity Bancshares, Inc. 2012 Stock Incentive Plan (the “2012 Plan”), which was approved by Bancshares’ shareholders and authorized the issuance of up to 1,250,000 shares of common stock upon the exercise of options granted under the 2012 Plan or pursuant to the grant or exercise, as the case may be, of other awards granted under the 2012 Plan, including restricted stock, stock appreciation rights, phantom stock awards and performance awards. As of September 30, 2019, a total of 346,500 shares of common stock have been issued pursuant to vested awards and 398,532 shares of unvested restricted stock have been granted under the 2012 Plan. As of September 30, 2019, the Company had no stock options outstanding. Stock-based compensation expense related to restricted stock was $2.5 million and $2.8 million during the three months ended September 30, 2019 and 2018, respectively, and $7.6 million and $7.9 million during the nine months ended September 30, 2019 and 2018, respectively. As of September 30, 2019, there was $12.8 million of total unrecognized compensation expense related to stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.86 years. |
Contractual Obligations and Off
Contractual Obligations and Off-Balance Sheet Items | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contractual Obligations and Off-Balance Sheet Items | 9. CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET ITEMS Contractual Obligations The Company’s contractual obligations and other commitments to make future payments as of September 30, 2019 (other than deposit obligations and securities sold under repurchase agreements) are summarized below. Federal Home Loan Bank Borrowings The Company’s future cash payments associated with its contractual obligations pursuant to its Federal Home Loan Bank (“FHLB”) advances and notes payable as of September 30, 2019 are summarized below. Payments for FHLB notes payable include interest of $64 thousand that will be paid over the future periods. The payments do not include pre-payment options that may be available to the Company. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Federal Home Loan Bank advances and notes payable $ 600,572 $ 125 $ 125 $ 37 $ 600,859 Leases The Company’s leases relate primarily to operating leases for office space and banking centers. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of 1 to 13 years, which may include the option to extend the lease when it is reasonably certain for the Company to exercise that option. Operating lease right-of-use (ROU) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental collateralized borrowing rate to determine the present value of lease payments. Short-term leases and leases with variable lease costs are immaterial and the Company does not have any sublease arrangements. As of September 30, 2019, operating lease ROU assets and lease liabilities were approximately $17 million. ROU assets and lease liabilities were classified as other assets and other liabilities, respectively. As of September 30, 2019, the weighted average remaining lease terms of the Company’s operating leases were 5.7 years. The weighted average discount rate used to determine the lease liabilities as of September 30, 2019 for the Company’s operating leases was 3.20%. Cash paid for the Company’s operating leases for the three and nine months ended September 30, 2019 was $1.4 million and $4.2 million, respectively. The Company obtained $2.4 million in ROU assets in exchange for lease liabilities for two operating leases during the nine months ended September 30, 2019. The Company’s future undiscounted cash payments associated with its operating leases as of September 30, 2019 are summarized below (dollars in thousands). Remaining 2019 $ 1,282 2020 4,607 2021 3,588 2022 3,111 2023 2,550 2024 1,641 Thereafter 4,426 Total undiscounted lease payments $ 21,205 The following table presents a summary of non-cancelable future operating lease commitments as of December 31, 2018 (dollars in thousands): 2019 $ 4,897 2020 4,088 2021 3,013 2022 2,319 2023 2,025 Thereafter 3,597 Total non-cancelable lease payments $ 19,939 Off-Balance Sheet Items In the normal course of business, the Company enters into various transactions that, in accordance with GAAP, are not included in its consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s commitments associated with outstanding standby letters of credit and commitments to extend credit expiring by period as of September 30, 2019 are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Standby letters of credit $ 62,393 $ 5,663 $ 1,932 $ — $ 69,988 Commitments to extend credit 1,169,623 357,578 102,431 1,050,959 2,680,591 Total $ 1,232,016 $ 363,241 $ 104,363 $ 1,050,959 $ 2,750,579 |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income | 10. OTHER COMPREHENSIVE INCOME The tax effects allocated to each component of other comprehensive income were as follows: Three Months Ended September 30, 2019 2018 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive (loss) income: Securities available for sale: Change in unrealized gain during period $ (1,563 ) $ 328 $ (1,235 ) $ 149 $ (31 ) $ 118 Total securities available for sale (1,563 ) 328 (1,235 ) 149 (31 ) 118 Total other comprehensive (loss) income $ (1,563 ) $ 328 $ (1,235 ) $ 149 $ (31 ) $ 118 Nine Months Ended September 30, 2019 2018 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive (loss) income: Securities available for sale: Change in unrealized gain during period $ (344 ) $ 72 $ (272 ) $ 729 $ (153 ) $ 576 Total securities available for sale (344 ) 72 (272 ) 729 (153 ) 576 Total other comprehensive (loss) income $ (344 ) $ 72 $ (272 ) $ 729 $ (153 ) $ 576 Activity in accumulated other comprehensive income associated with securities available for sale, net of tax, was as follows: Securities Available for Sale Accumulated Other Comprehensive Income (Dollars in thousands) Balance at December 31, 2018 $ 310 $ 310 Other comprehensive loss (272 ) (272 ) Balance at September 30, 2019 $ 38 $ 38 Balance at December 31, 2017 $ (113 ) $ (113 ) Other comprehensive income 576 576 Balance at September 30, 2018 $ 463 $ 463 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. SUBSEQUENT EVENTS Merger with LegacyTexas Financial Group, Inc. On November 1, 2019, the Company completed the merger with LegacyTexas and its wholly-owned subsidiary LegacyTexas Bank headquartered in Plano, Texas. LegacyTexas Bank operated 42 locations in 19 North Texas cities in and around the Dallas-Fort Worth area. As of September 30, 2019, LegacyTexas, on a consolidated basis, reported total assets of $10.5 billion, total gross loans of $9.1 billion and total deposits of $6.5 billion. In connection with the merger, each outstanding share of LegacyTexas common stock, including restricted stock awards, performance share awards and options, all of which were deemed vested immediately prior to the merger, subject to certain limited exceptions, was converted into the right to receive 0.5280 of a share of Prosperity common stock, with cash payable in lieu of any fractional share, and $6.28 in cash, in each case without interest. Additional disclosures required by ASC 805 have been omitted from this report due to the close proximity of the merger with the issue date of the accompanying consolidated financial statements. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Accounting Standards Updates (''ASU'') | Accounting Standards Updates (“ASU”) ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of current expected credit losses (“CECL”) is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgment in determining the relevant information and estimation methods that are appropriate in its circumstances. Additionally, available for sale debt securities may realize value either through collection of contractual cash flows or through sale of the security at fair value. Therefore, the amendments limit the amount of the allowance for credit losses to the difference between amortized cost and fair value. ASU 2016-13 will be effective for the Company as of January 1, 2020. The Company’s implementation workgroup is comprised of individuals from various functional areas including credit, risk management, finance and information technology, among others, and meets periodically to discuss the latest developments and monitor implementation progress. During the third quarter of 2019, the Company had a third-party model validation completed and will continue running parallel processes during the fourth quarter of 2019. The Company continues to assess CECL disclosure requirements and developing appropriate internal controls around the CECL process. The Company continues to evaluate the potential impact of ASU 2016-13 on the Company’s financial statements. Based on the Company’s loan portfolio at September 30, 2019 and current expectation of future economic conditions, the allowance for credit losses as a percentage of total loans is expected to increase from 0.82% to between 1.00% and 1.10%. This estimate does not incorporate the anticipated impact of the merger with LegacyTexas Financial Group, Inc. (“LegacyTexas”) , which was consummated on November 1, 2019. ASU 2016-02, "Leases (Topic 842)." ASU 2016-02 requires that lessees recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The requirements for lessors under ASU 2016-02 are largely unchanged from existing guidance, however certain necessary changes have been made to align with specific changes to lessee accounting and key aspects of the revenue recognition guidance (Topic 606). The Company’s leases relate primarily to office space and banking centers. The Company identified and reviewed existing leases applicable to ASU 2016-02 and elected certain optional practical expedients: 1) not to reassess whether any expired or existing contracts are or contain leases, 2) not to reassess the lease classification for any expired or existing lease, 3) not to reassess initial direct cost for any existing leases and 4) not to separately identify lease and non-lease components. Additionally, the Company elected the short-term lease exemption for lease terms less than 12 months. The Company adopted ASU 2016-02 on January 1, 2019 using a modified retrospective transition approach without adjusting comparative periods. With the adoption of the new standard, the Company recognized right-of-use assets and lease liabilities of $17.3 million as of January 1, 2019. See Note 9 “Contractual Obligations and Off-Balance Sheet Items — Contractual Obligations — Leases” for additional information. |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share data) Net income $ 81,758 $ 82,523 $ 246,418 $ 238,481 Basic: Weighted average shares outstanding 68,738 $ 1.19 69,838 $ 1.18 69,463 $ 3.55 69,815 $ 3.42 Diluted: Weighted average shares outstanding 68,738 $ 1.19 69,838 $ 1.18 69,463 $ 3.55 69,815 $ 3.42 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Investment Securities | The amortized cost and fair value of investment securities were as follows: September 30, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale States and political subdivisions $ 470 $ 1 $ — $ 471 Collateralized mortgage obligations 242,013 134 (421 ) 241,726 Mortgage-backed securities 55,836 734 (399 ) 56,171 Total $ 298,319 $ 869 $ (820 ) $ 298,368 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 13,903 $ 64 $ — $ 13,967 States and political subdivisions 189,000 6,398 (68 ) 195,330 Collateralized mortgage obligations 435 5 — 440 Mortgage-backed securities 7,993,500 50,799 (36,435 ) 8,007,864 Total $ 8,196,838 $ 57,266 $ (36,503 ) $ 8,217,601 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale States and political subdivisions $ 1,159 $ 7 $ — $ 1,166 Collateralized mortgage obligations 12,724 69 (37 ) 12,756 Mortgage-backed securities 69,880 553 (200 ) 70,233 Total $ 83,763 $ 629 $ (237 ) $ 84,155 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 25,778 $ — $ (100 ) $ 25,678 States and political subdivisions 253,198 3,440 (777 ) 255,861 Collateralized mortgage obligations 509 1 (2 ) 508 Mortgage-backed securities 9,045,326 5,798 (251,935 ) 8,799,189 Total $ 9,324,811 $ 9,239 $ (252,814 ) $ 9,081,236 |
Securities in Continuous Loss Position | Securities with unrealized losses, segregated by length of time, that have been in a continuous loss position were as follows: September 30, 2019 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 201,708 $ (419 ) $ 78 $ (2 ) $ 201,786 $ (421 ) Mortgage-backed securities 17,839 (399 ) 4 — 17,843 (399 ) Total $ 219,547 $ (818 ) $ 82 $ (2 ) $ 219,629 $ (820 ) Held to Maturity States and political subdivisions $ 31,717 $ (59 ) $ 4,718 $ (9 ) $ 36,435 $ (68 ) Mortgage-backed securities 506,878 (1,794 ) 3,560,213 (34,641 ) 4,067,091 (36,435 ) Total $ 538,595 $ (1,853 ) $ 3,564,931 $ (34,650 ) $ 4,103,526 $ (36,503 ) December 31, 2018 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 12 $ — $ 2,096 $ (37 ) $ 2,108 $ (37 ) Mortgage-backed securities 50,950 (197 ) 2,091 (3 ) 53,041 (200 ) Total $ 50,962 $ (197 ) $ 4,187 $ (40 ) $ 55,149 $ (237 ) Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 20,720 $ (76 ) $ 4,957 $ (24 ) $ 25,677 $ (100 ) States and political subdivisions 89,407 (328 ) 58,262 (449 ) 147,669 (777 ) Collateralized mortgage obligations — — 292 (2 ) 292 (2 ) Mortgage-backed securities 1,003,089 (8,401 ) 6,873,948 (243,534 ) 7,877,037 (251,935 ) Total $ 1,113,216 $ (8,805 ) $ 6,937,459 $ (244,009 ) $ 8,050,675 $ (252,814 ) |
Investment Securities by Contractual Maturity | The amortized cost and fair value of investment securities at September 30, 2019, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations at any time with or without call or prepayment penalties. Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 37,313 $ 37,430 $ 470 $ 471 Due after one year through five years 117,760 121,632 — — Due after five years through ten years 43,321 45,507 — — Due after ten years 4,509 4,728 — — Subtotal 202,903 209,297 470 471 Mortgage-backed securities and collateralized mortgage obligations 7,993,935 8,008,304 297,849 297,897 Total $ 8,196,838 $ 8,217,601 $ 298,319 $ 298,368 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Types of Loans in Loan Portfolio | The loan portfolio consists of various types of loans and is categorized by major type as follows: September 30, 2019 December 31, 2018 (Dollars in thousands) Residential mortgage loans held for sale $ 20,284 $ 29,367 Commercial and industrial 1,460,415 1,483,571 Real estate: Construction, land development and other land loans 1,764,648 1,622,289 1-4 family residential (includes home equity) 2,703,398 2,677,542 Commercial real estate (includes multi-family residential) 3,652,176 3,538,557 Farmland 536,895 545,373 Agriculture 192,690 184,128 Consumer and other 342,839 289,486 Total loans held for investment 10,653,061 10,340,946 Total $ 10,673,345 $ 10,370,313 |
Related Party Loans | An analysis of activity with respect to these related party loans is as follows: As of and for the nine months ended September As of and for the year ended December (Dollars in thousands) Beginning balance on January 1 $ 1,923 $ 2,694 New loans 1 5 Repayments (196 ) (776 ) Ending balance $ 1,728 $ 1,923 |
Aging Analysis of Past Due Loans | An aging analysis of past due loans, segregated by category of loan, is presented below: September 30, 2019 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 4,686 $ — $ 4,686 $ 390 $ 1,759,572 $ 1,764,648 Agriculture and agriculture real estate (includes farmland) 1,289 — 1,289 285 728,011 729,585 1-4 family (includes home equity) (1) 9,082 215 9,297 19,258 2,695,127 2,723,682 Commercial real estate (includes multi-family residential) 4,670 — 4,670 14,179 3,633,327 3,652,176 Commercial and industrial 4,550 125 4,675 15,822 1,439,918 1,460,415 Consumer and other 77 1 78 39 342,722 342,839 Total $ 24,354 $ 341 $ 24,695 $ 49,973 $ 10,598,677 $ 10,673,345 December 31, 2018 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 6,363 $ 788 $ 7,151 $ 1,386 $ 1,613,752 $ 1,622,289 Agriculture and agriculture real estate (includes farmland) 705 — 705 256 728,540 729,501 1-4 family (includes home equity) (1) 10,479 2,995 13,474 4,515 2,688,920 2,706,909 Commercial real estate (includes multi-family residential) 9,063 — 9,063 2,727 3,526,767 3,538,557 Commercial and industrial 6,652 221 6,873 4,215 1,472,483 1,483,571 Consumer and other 1,012 — 1,012 48 288,426 289,486 Total $ 34,274 $ 4,004 $ 38,278 $ 13,147 $ 10,318,888 $ 10,370,313 (1) Includes $20.3 million and $29.4 million of residential mortgage loans held for sale at September 30, 2019 and December 31, 2018, respectively. |
Non-performing Assets | The following table presents information regarding nonperforming assets as of the dates indicated: September 30, 2019 December 31, 2018 (Dollars in thousands) Nonaccrual loans (1) $ 49,973 $ 13,147 Accruing loans 90 or more days past due 341 4,004 Total nonperforming loans 50,314 17,151 Repossessed assets 28 — Other real estate 815 1,805 Total nonperforming assets $ 51,157 $ 18,956 Nonperforming assets to total loans and other real estate 0.48 % 0.18 % (1) Includes troubled debt restructurings of $14.2 million and $51 thousand as of September 30, 2019 and December 31, 2018, respectively. |
Recorded Investment and Outstanding Balance for Purchased Credit Impaired Loans and Non Purchased Credit Impaired Loans | The recorded investment in PCI loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of September 30, 2019 and December 31, 2018. September 30, 2019 December 31, 2018 (Dollars in thousands) PCI loans: Outstanding balance $ 9,630 $ 11,419 Discount (1,888 ) (2,831 ) Recorded investment $ 7,742 $ 8,588 September 30, 2019 December 31, 2018 (Dollars in thousands) Non-PCI loans: Outstanding balance $ 431,319 $ 526,840 Discount (11,473 ) (14,833 ) Recorded investment $ 419,846 $ 512,007 |
Summary of Changes in Accretable Yields of Acquired Loans | Changes in the accretable yield for acquired PCI loans for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands) Balance at beginning of period $ 904 $ 3,969 $ 1,534 $ 8,121 Reclassifications from nonaccretable 26 181 62 486 Accretion (277 ) (2,170 ) (943 ) (6,627 ) Balance at September 30, $ 653 $ 1,980 $ 653 $ 1,980 Changes in the discount accretion for Non-PCI loans for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (Dollars in thousands) Balance at beginning of period $ 12,479 $ 17,431 $ 14,833 $ 20,533 Accretion charge-offs — (20 ) — (30 ) Accretion (1,006 ) (1,287 ) (3,360 ) (4,379 ) Balance at September 30, $ 11,473 $ 16,124 $ 11,473 $ 16,124 |
Summary of Impaired Loans | Impaired loans are set forth in the following tables. No interest income was recognized on impaired loans subsequent to their classification as impaired. The average recorded investment presented in the tables below is reported on a year-to-date basis. September 30, 2019 Recorded Investment Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (Dollars in thousands) With no related allowance recorded: Construction, land development and other land loans $ — $ — $ — $ 496 Agriculture and agriculture real estate (includes farmland) 147 147 — 202 1-4 family (includes home equity) 11,825 12,560 — 8,001 Commercial real estate (includes multi-family residential) 13,206 13,606 — 7,966 Commercial and industrial 15,144 17,646 — 9,007 Consumer and other 39 43 — 44 Total 40,361 44,002 — 25,716 With an allowance recorded: Construction, land development and other land loans 390 390 58 390 Agriculture and agriculture real estate (includes farmland) 138 138 14 69 1-4 family (includes home equity) 5,236 5,268 1,067 2,751 Commercial real estate (includes multi-family residential) 973 993 283 486 Commercial and industrial 678 681 174 1,003 Consumer and other — — — — Total 7,415 7,470 1,596 4,699 Total: Construction, land development and other land loans 390 390 58 886 Agriculture and agriculture real estate (includes farmland) 285 285 14 271 1-4 family (includes home equity) 17,061 17,828 1,067 10,752 Commercial real estate (includes multi-family residential) 14,179 14,599 283 8,452 Commercial and industrial 15,822 18,327 174 10,010 Consumer and other 39 43 — 44 $ 47,776 $ 51,472 $ 1,596 $ 30,415 December 31, 2018 Recorded Investment Unpaid Contractual Principal Balance Related Allowance Average Recorded Investment (Dollars in thousands) With no related allowance recorded: Construction, land development and other land loans $ 993 $ 995 $ — $ 788 Agriculture and agriculture real estate (includes farmland) 256 311 — 194 1-4 family (includes home equity) 4,177 4,903 — 4,048 Commercial real estate (includes multi-family residential) 2,727 2,848 — 2,475 Commercial and industrial 2,870 3,810 — 5,358 Consumer and other 48 76 — 135 Total 11,071 12,943 — 12,998 With an allowance recorded: Construction, land development and other land loans 391 391 58 195 Agriculture and agriculture real estate (includes farmland) — — — — 1-4 family (includes home equity) 266 289 56 729 Commercial real estate (includes multi-family residential) — — — 743 Commercial and industrial 1,328 1,332 571 3,740 Consumer and other — — — — Total 1,985 2,012 685 5,407 Total: Construction, land development and other land loans 1,384 1,386 58 983 Agriculture and agriculture real estate (includes farmland) 256 311 — 194 1-4 family (includes home equity) 4,443 5,192 56 4,777 Commercial real estate (includes multi-family residential) 2,727 2,848 — 3,218 Commercial and industrial 4,198 5,142 571 9,098 Consumer and other 48 76 — 135 $ 13,056 $ 14,955 $ 685 $ 18,405 |
Risk Grade and Category of Loan | The following table presents loans by risk grade and category of loan at September 30, 2019. Impaired loans include loans in risk grades 7, 8 and 9, as well as any PCI loan that has a specific reserve allocated to it. Construction, Land Development and Other Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home (1) Commercial Real Estate (includes Multi-Family Commercial and Industrial Consumer and Other Total (Dollars in thousands) Grade 1 $ — $ 12,021 $ — $ — $ 54,518 $ 34,366 $ 100,905 Grade 2 1,556 3,400 12,430 21,476 20,448 64,354 123,664 Grade 3 1,596,753 639,697 2,623,058 3,032,835 1,049,208 214,519 9,156,070 Grade 4 156,900 69,282 58,596 520,024 264,851 23,175 1,092,828 Grade 5 3,233 3,726 6,001 42,720 49,423 4,759 109,862 Grade 6 5,407 850 2,406 18,179 6,029 1,627 34,498 Grade 7 390 285 17,061 14,179 15,806 39 47,760 Grade 8 — — — — 16 — 16 Grade 9 — — — — — — — PCI Loans 409 324 4,130 2,763 116 — 7,742 Total $ 1,764,648 $ 729,585 $ 2,723,682 $ 3,652,176 $ 1,460,415 $ 342,839 $ 10,673,345 (1) Includes $20.3 million of residential mortgage loans held for sale at September 30, 2019. The following table presents loans by risk grade and category of loan at December 31, 2018 . Impaired loans include loans in risk grades 7, 8 and 9, as well as any PCI loan that has a specific reserve allocated to it. Construction, Land Development and Other Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home (1) Commercial Real Estate (includes Multi-Family Commercial and Industrial Consumer and Other Total (Dollars in thousands) Grade 1 $ — $ 15,725 $ — $ — $ 59,979 $ 37,135 $ 112,839 Grade 2 1,040 3,974 21,465 22,207 11,003 55,802 115,491 Grade 3 1,509,532 636,674 2,598,600 2,974,474 1,083,328 171,758 8,974,366 Grade 4 99,087 66,650 61,430 481,735 243,743 20,164 972,809 Grade 5 3,673 5,578 12,522 37,942 58,088 2,978 120,781 Grade 6 7,081 282 4,332 16,006 23,081 1,601 52,383 Grade 7 1,384 256 4,395 2,727 4,165 48 12,975 Grade 8 — — 48 — 33 — 81 Grade 9 — — — — — — — PCI Loans 492 362 4,117 3,466 151 — 8,588 Total $ 1,622,289 $ 729,501 $ 2,706,909 $ 3,538,557 $ 1,483,571 $ 289,486 $ 10,370,313 (1) Includes $29.4 million of residential mortgage loans held for sale at December 31, 2018. |
Allowance for Credit Losses by Category of Loan | The following table details activity in the allowance for credit losses by category of loan for the three and nine months ended September 30, 2019 and 2018. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Allowance for credit losses: Three Months Ended Balance June 30, 2019 $ 15,886 $ 3,816 $ 14,383 $ 12,166 $ 39,177 $ 1,578 $ 87,006 Provision for credit losses (290 ) 188 543 452 (763 ) 970 1,100 Charge-offs — (294 ) — — (419 ) (1,024 ) (1,737 ) Recoveries 6 16 9 1 502 158 692 Net charge-offs 6 (278 ) 9 1 83 (866 ) (1,045 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 Nine Months Ended Balance December 31, 2018 $ 15,582 $ 3,693 $ 14,135 $ 11,220 $ 40,223 $ 1,587 $ 86,440 Provision for credit losses 21 (921 ) 799 1,396 (918 ) 2,223 2,600 Charge-offs (63 ) (358 ) (22 ) — (2,501 ) (2,821 ) (5,765 ) Recoveries 62 1,312 23 3 1,693 693 3,786 Net charge-offs (1 ) 954 1 3 (808 ) (2,128 ) (1,979 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 Allowance for credit losses: Three Months Ended Balance June 30, 2018 $ 14,450 $ 3,756 $ 13,353 $ 10,616 $ 41,454 $ 1,335 $ 84,964 Provision for credit losses 519 (158 ) 593 411 (17 ) 1,002 2,350 Charge-offs — (25 ) (17 ) — (742 ) (978 ) (1,762 ) Recoveries 1 138 6 10 85 204 444 Net charge-offs 1 113 (11 ) 10 (657 ) (774 ) (1,318 ) Balance September 30, 2018 $ 14,970 $ 3,711 $ 13,935 $ 11,037 $ 40,780 $ 1,563 $ 85,996 Nine Months Ended Balance December 31, 2017 $ 14,815 $ 3,772 $ 14,490 $ 10,628 $ 38,810 $ 1,526 $ 84,041 Provision for credit losses 276 (280 ) (173 ) 1,887 11,690 1,950 15,350 Charge-offs (130 ) (25 ) (403 ) (1,489 ) (10,112 ) (2,889 ) (15,048 ) Recoveries 9 244 21 11 392 976 1,653 Net charge-offs (121 ) 219 (382 ) (1,478 ) (9,720 ) (1,913 ) (13,395 ) Balance September 30, 2018 $ 14,970 $ 3,711 $ 13,935 $ 11,037 $ 40,780 $ 1,563 $ 85,996 The following table details the amount of the allowance for credit losses allocated to each category of loan as of September 30, 2019, December 31, 2018 and September 30, 2018, on the basis of the impairment methodology used to determine the allowance for credit losses. Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Allowance for credit losses related September 30, 2019 Individually evaluated for impairment $ 58 $ 14 $ 1,067 $ 283 $ 174 $ — $ 1,596 Collectively evaluated for impairment 15,544 3,712 13,868 12,336 38,323 1,682 85,465 PCI loans — — — — — — — Total allowance for credit losses $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 December 31, 2018 Individually evaluated for impairment $ 58 $ — $ 56 $ — $ 571 $ — $ 685 Collectively evaluated for impairment 15,524 3,693 14,079 11,220 39,652 1,587 85,755 PCI loans — — — — — — — Total allowance for credit losses $ 15,582 $ 3,693 $ 14,135 $ 11,220 $ 40,223 $ 1,587 $ 86,440 September 30, 2018 Individually evaluated for impairment $ — $ — $ 53 $ 10 $ 500 $ — $ 563 Collectively evaluated for impairment 14,970 3,711 13,882 11,027 40,280 1,563 85,433 PCI loans — — — — — — — Total allowance for credit losses $ 14,970 $ 3,711 $ 13,935 $ 11,037 $ 40,780 $ 1,563 $ 85,996 Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Recorded investment in September 30, 2019 Individually evaluated for impairment $ 390 $ 285 $ 17,061 $ 14,179 $ 15,822 $ 39 $ 47,776 Collectively evaluated for impairment 1,763,849 728,976 2,682,207 3,635,234 1,444,477 342,800 10,597,543 PCI loans 409 324 4,130 2,763 116 — 7,742 Total loans evaluated for impairment $ 1,764,648 $ 729,585 $ 2,703,398 $ 3,652,176 $ 1,460,415 $ 342,839 $ 10,653,061 December 31, 2018 Individually evaluated for impairment $ 1,384 $ 256 $ 4,443 $ 2,727 $ 4,198 $ 48 $ 13,056 Collectively evaluated for impairment 1,620,413 728,883 2,668,982 3,532,364 1,479,222 289,438 10,319,302 PCI loans 492 362 4,117 3,466 151 — 8,588 Total loans evaluated for impairment $ 1,622,289 $ 729,501 $ 2,677,542 $ 3,538,557 $ 1,483,571 $ 289,486 $ 10,340,946 September 30, 2018 Individually evaluated for impairment $ 869 $ 262 $ 4,427 $ 2,256 $ 5,506 $ 68 $ 13,388 Collectively evaluated for impairment 1,558,632 705,113 2,677,237 3,500,651 1,519,196 281,044 10,241,873 PCI loans 641 375 4,076 4,316 152 — 9,560 Total loans evaluated for impairment $ 1,560,142 $ 705,750 $ 2,685,740 $ 3,507,223 $ 1,524,854 $ 281,112 $ 10,264,821 |
Troubled Debt Restructurings | The following table presents information regarding the recorded investment of loans modified as troubled debt restructurings during the nine months ended September 30, 2019 and 2018. Nine Months Ended September 30, 2019 2018 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Construction, land development and other land loans — $ — $ — — $ — $ — Agriculture and agriculture real estate (includes farmland) — — — — — — 1-4 Family (includes home equity) — — — — — — Commercial real estate (includes multi-family residential) — — — — — — Commercial and industrial 2 14,993 14,188 2 198 72 Consumer and other — — — — — — Total 2 $ 14,993 $ 14,188 2 $ 198 $ 72 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The following tables present fair values for assets and liabilities measured at fair value on a recurring basis: As of September 30, 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: States and political subdivisions $ — $ 471 $ — $ 471 Collateralized mortgage obligations — 241,726 — 241,726 Mortgage-backed securities — 56,171 — 56,171 Total $ — $ 298,368 $ — $ 298,368 As of December 31, 2018 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: States and political subdivisions $ — $ 1,166 $ — $ 1,166 Collateralized mortgage obligations — 12,756 — 12,756 Mortgage-backed securities — 70,233 — 70,233 Total $ — $ 84,155 $ — $ 84,155 |
Summary of Carrying and Fair Value Information of Financial Instruments | The following tables present carrying and fair value information of financial instruments as of the dates indicated: As of September 30, 2019 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Assets (Dollars in thousands) Cash and due from banks $ 420,359 $ 420,359 $ — $ — $ 420,359 Federal funds sold 521 521 — — 521 Held to maturity securities 8,196,838 — 8,217,601 — 8,217,601 Loans held for sale 20,284 — 20,284 — 20,284 Loans held for investment, net of allowance 10,566,000 — — 10,498,468 10,498,468 Other real estate owned 815 — 815 — 815 Liabilities Deposits: Noninterest-bearing $ 5,784,002 $ — $ 5,784,002 $ — $ 5,784,002 Interest-bearing 11,145,918 — 11,142,770 — 11,142,770 Other borrowings 600,795 — 600,833 — 600,833 Securities sold under repurchase agreements 311,404 — 311,411 — 311,411 As of December 31, 2018 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total Assets (Dollars in thousands) Cash and due from banks $ 410,575 $ 410,575 $ — $ — $ 410,575 Federal funds sold 552 552 — — 552 Held to maturity securities 9,324,811 — 9,081,236 — 9,081,236 Loans held for sale 29,367 — 29,367 — 29,367 Loans held for investment, net of allowance 10,254,506 — — 10,144,556 10,144,556 Other real estate owned 1,805 — 1,805 — 1,805 Liabilities Deposits: Noninterest-bearing $ 5,666,115 $ — $ 5,666,115 $ — $ 5,666,115 Interest-bearing 11,590,443 — 11,564,521 — 11,564,521 Other borrowings 1,031,126 — 1,031,161 — 1,031,161 Securities sold under repurchase agreements 284,720 — 284,685 — 284,685 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangibles | Changes in the carrying amount of the Company’s goodwill and core deposit intangibles for the nine months ended September 30, 2019 and the year ended December 31, 2018 were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance as of December 31, 2017 $ 1,900,845 $ 38,842 Less: Amortization — (5,959 ) Balance as of December 31, 2018 1,900,845 32,883 Less: Amortization — (3,832 ) Balance as of September 30, 2019 $ 1,900,845 $ 29,051 |
Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles | The estimated aggregate future amortization expense for core deposit intangibles remaining as of September 30, 2019 is as follows (dollars in thousands): Remaining 2019 $ 1,219 2020 4,483 2021 4,022 2022 3,664 2023 3,350 Thereafter 12,313 Total $ 29,051 |
Contractual Obligations and O_2
Contractual Obligations and Off-Balance Sheet Items (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations and Other Commitments | The Company’s future cash payments associated with its contractual obligations pursuant to its Federal Home Loan Bank (“FHLB”) advances and notes payable as of September 30, 2019 are summarized below. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Federal Home Loan Bank advances and notes payable $ 600,572 $ 125 $ 125 $ 37 $ 600,859 |
Future Undiscounted Cash Payments Associated with its Operating Leases | The Company’s future undiscounted cash payments associated with its operating leases as of September 30, 2019 are summarized below (dollars in thousands). Remaining 2019 $ 1,282 2020 4,607 2021 3,588 2022 3,111 2023 2,550 2024 1,641 Thereafter 4,426 Total undiscounted lease payments $ 21,205 |
Summary of Non-Cancelable Future Operating Lease Commitments | The following table presents a summary of non-cancelable future operating lease commitments as of December 31, 2018 (dollars in thousands): 2019 $ 4,897 2020 4,088 2021 3,013 2022 2,319 2023 2,025 Thereafter 3,597 Total non-cancelable lease payments $ 19,939 |
Summary of Commitments Associated with Outstanding Standby Letters of Credit and Commitments to Extend Credit | The Company’s commitments associated with outstanding standby letters of credit and commitments to extend credit expiring by period as of September 30, 2019 are summarized below. Since commitments associated with letters of credit and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Standby letters of credit $ 62,393 $ 5,663 $ 1,932 $ — $ 69,988 Commitments to extend credit 1,169,623 357,578 102,431 1,050,959 2,680,591 Total $ 1,232,016 $ 363,241 $ 104,363 $ 1,050,959 $ 2,750,579 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Tax Effects Allocated to Each Component of Other Comprehensive Income | The tax effects allocated to each component of other comprehensive income were as follows: Three Months Ended September 30, 2019 2018 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive (loss) income: Securities available for sale: Change in unrealized gain during period $ (1,563 ) $ 328 $ (1,235 ) $ 149 $ (31 ) $ 118 Total securities available for sale (1,563 ) 328 (1,235 ) 149 (31 ) 118 Total other comprehensive (loss) income $ (1,563 ) $ 328 $ (1,235 ) $ 149 $ (31 ) $ 118 Nine Months Ended September 30, 2019 2018 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive (loss) income: Securities available for sale: Change in unrealized gain during period $ (344 ) $ 72 $ (272 ) $ 729 $ (153 ) $ 576 Total securities available for sale (344 ) 72 (272 ) 729 (153 ) 576 Total other comprehensive (loss) income $ (344 ) $ 72 $ (272 ) $ 729 $ (153 ) $ 576 |
Activity in Accumulated Other Comprehensive Income Associated with Securities Available for Sale, Net of Tax | Activity in accumulated other comprehensive income associated with securities available for sale, net of tax, was as follows: Securities Available for Sale Accumulated Other Comprehensive Income (Dollars in thousands) Balance at December 31, 2018 $ 310 $ 310 Other comprehensive loss (272 ) (272 ) Balance at September 30, 2019 $ 38 $ 38 Balance at December 31, 2017 $ (113 ) $ (113 ) Other comprehensive income 576 576 Balance at September 30, 2018 $ 463 $ 463 |
Income Per Common Share - Sched
Income Per Common Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 81,758 | $ 82,523 | $ 246,418 | $ 238,481 |
Basic, Weighted average shares outstanding (in shares) | 68,738 | 69,838 | 69,463 | 69,815 |
Weighted average shares outstanding, per share amount | $ 1.19 | $ 1.18 | $ 3.55 | $ 3.42 |
Diluted, Weighted average shares outstanding (in shares) | 68,738 | 69,838 | 69,463 | 69,815 |
Diluted | $ 1.19 | $ 1.18 | $ 3.55 | $ 3.42 |
Income Per Common Share - Addit
Income Per Common Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Number of options outstanding | 0 | 0 | ||
Antidilutive Securities excluded from computation of earnings per share, amount | 0 | 0 | 0 | 0 |
New Accounting Standards - Addi
New Accounting Standards - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Allowance for credit losses as percentage of loans | 0.82% | 0.83% | |
Operating lease, right-of-use asset | $ 17 | ||
Operating lease, liability | $ 17 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 17.3 | ||
Operating lease, liability | $ 17.3 | ||
Minimum [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Allowance for credit losses as percentage of loans | 1.00% | ||
Maximum [Member] | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Allowance for credit losses as percentage of loans | 1.10% |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | $ 298,319 | $ 83,763 |
Available for Sale, Gross Unrealized Gains | 869 | 629 |
Available for Sale, Gross Unrealized Losses | (820) | (237) |
Available for Sale | 298,368 | 84,155 |
Held to Maturity, Amortized Cost | 8,196,838 | 9,324,811 |
Held to Maturity, Gross Unrealized Gains | 57,266 | 9,239 |
Held to Maturity, Gross Unrealized Losses | (36,503) | (252,814) |
Held to Maturity | 8,217,601 | 9,081,236 |
US States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 470 | 1,159 |
Available for Sale, Gross Unrealized Gains | 1 | 7 |
Available for Sale | 471 | 1,166 |
Held to Maturity, Amortized Cost | 189,000 | 253,198 |
Held to Maturity, Gross Unrealized Gains | 6,398 | 3,440 |
Held to Maturity, Gross Unrealized Losses | (68) | (777) |
Held to Maturity | 195,330 | 255,861 |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 242,013 | 12,724 |
Available for Sale, Gross Unrealized Gains | 134 | 69 |
Available for Sale, Gross Unrealized Losses | (421) | (37) |
Available for Sale | 241,726 | 12,756 |
Held to Maturity, Amortized Cost | 435 | 509 |
Held to Maturity, Gross Unrealized Gains | 5 | 1 |
Held to Maturity, Gross Unrealized Losses | (2) | |
Held to Maturity | 440 | 508 |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 55,836 | 69,880 |
Available for Sale, Gross Unrealized Gains | 734 | 553 |
Available for Sale, Gross Unrealized Losses | (399) | (200) |
Available for Sale | 56,171 | 70,233 |
Held to Maturity, Amortized Cost | 7,993,500 | 9,045,326 |
Held to Maturity, Gross Unrealized Gains | 50,799 | 5,798 |
Held to Maturity, Gross Unrealized Losses | (36,435) | (251,935) |
Held to Maturity | 8,007,864 | 8,799,189 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to Maturity, Amortized Cost | 13,903 | 25,778 |
Held to Maturity, Gross Unrealized Gains | 64 | |
Held to Maturity, Gross Unrealized Losses | (100) | |
Held to Maturity | $ 13,967 | $ 25,678 |
Securities - Additional Informa
Securities - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)Security | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)SegmentSecurity | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)Security | |
Schedule Of Held To Maturity Securities [Line Items] | |||||
Number of Investment Securities Segments | Segment | 2 | ||||
Other than Temporary Impairment Losses, Investments | $ 0 | ||||
Securities in Unrealized Loss Positions Qualitative Disclosure Number of Positions Greater Than or Equal to One Year | Security | 158 | 158 | 731 | ||
Gain (loss) on sale of securities | $ 0 | $ 0 | $ 0 | $ (13) | |
Available for sale securities, at fair value | 298,368 | 298,368 | $ 84,155 | ||
Collateralized Securities [Member] | |||||
Schedule Of Held To Maturity Securities [Line Items] | |||||
Available for Sale Securities, Amortized Cost Basis | 5,160,000 | 5,160,000 | 6,040,000 | ||
Available for sale securities, at fair value | $ 5,160,000 | $ 5,160,000 | $ 5,860,000 | ||
Securities Concentration Risk [Member] | Stockholders' Equity, Total [Member] | |||||
Schedule Of Held To Maturity Securities [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% |
Securities - Securities in Cont
Securities - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Estimated Fair Value, Less than 12 Months | $ 219,547 | $ 50,962 |
Available for Sale, Unrealized Losses, Less than 12 Months | (818) | (197) |
Available for Sale, Estimated Fair Value, 12 Months or More | 82 | 4,187 |
Available for Sale, Unrealized Losses, 12 Months or More | (2) | (40) |
Available for Sale, Estimated Fair Value, Total | 219,629 | 55,149 |
Available for Sale, Unrealized Losses, Total | (820) | (237) |
Held to Maturity, Estimated Fair Value, Less than 12 Months | 538,595 | 1,113,216 |
Held to Maturity, Unrealized Losses, Less than 12 Months | (1,853) | (8,805) |
Held to Maturity, Estimated Fair Value, 12 Months or More | 3,564,931 | 6,937,459 |
Held to Maturity, Unrealized Losses, 12 Months or More | (34,650) | (244,009) |
Held to Maturity, Estimated Fair Value, Total | 4,103,526 | 8,050,675 |
Held to Maturity, Unrealized Losses, Total | (36,503) | (252,814) |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Estimated Fair Value, Less than 12 Months | 201,708 | 12 |
Available for Sale, Unrealized Losses, Less than 12 Months | (419) | |
Available for Sale, Estimated Fair Value, 12 Months or More | 78 | 2,096 |
Available for Sale, Unrealized Losses, 12 Months or More | (2) | (37) |
Available for Sale, Estimated Fair Value, Total | 201,786 | 2,108 |
Available for Sale, Unrealized Losses, Total | (421) | (37) |
Held to Maturity, Estimated Fair Value, 12 Months or More | 292 | |
Held to Maturity, Unrealized Losses, 12 Months or More | (2) | |
Held to Maturity, Estimated Fair Value, Total | 292 | |
Held to Maturity, Unrealized Losses, Total | (2) | |
Collateralized Mortgage Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Estimated Fair Value, Less than 12 Months | 17,839 | 50,950 |
Available for Sale, Unrealized Losses, Less than 12 Months | (399) | (197) |
Available for Sale, Estimated Fair Value, 12 Months or More | 4 | 2,091 |
Available for Sale, Unrealized Losses, 12 Months or More | (3) | |
Available for Sale, Estimated Fair Value, Total | 17,843 | 53,041 |
Available for Sale, Unrealized Losses, Total | (399) | (200) |
Held to Maturity, Estimated Fair Value, Less than 12 Months | 506,878 | 1,003,089 |
Held to Maturity, Unrealized Losses, Less than 12 Months | (1,794) | (8,401) |
Held to Maturity, Estimated Fair Value, 12 Months or More | 3,560,213 | 6,873,948 |
Held to Maturity, Unrealized Losses, 12 Months or More | (34,641) | (243,534) |
Held to Maturity, Estimated Fair Value, Total | 4,067,091 | 7,877,037 |
Held to Maturity, Unrealized Losses, Total | (36,435) | (251,935) |
US States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to Maturity, Estimated Fair Value, Less than 12 Months | 31,717 | 89,407 |
Held to Maturity, Unrealized Losses, Less than 12 Months | (59) | (328) |
Held to Maturity, Estimated Fair Value, 12 Months or More | 4,718 | 58,262 |
Held to Maturity, Unrealized Losses, 12 Months or More | (9) | (449) |
Held to Maturity, Estimated Fair Value, Total | 36,435 | 147,669 |
Held to Maturity, Unrealized Losses, Total | $ (68) | (777) |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to Maturity, Estimated Fair Value, Less than 12 Months | 20,720 | |
Held to Maturity, Unrealized Losses, Less than 12 Months | (76) | |
Held to Maturity, Estimated Fair Value, 12 Months or More | 4,957 | |
Held to Maturity, Unrealized Losses, 12 Months or More | (24) | |
Held to Maturity, Estimated Fair Value, Total | 25,677 | |
Held to Maturity, Unrealized Losses, Total | $ (100) |
Securities - Investment Securit
Securities - Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Held to Maturity, amortized cost, due in one year or less | $ 37,313 | |
Held to Maturity, amortized cost, due after one year through five years | 117,760 | |
Held to Maturity, amortized cost, due after five years through ten years | 43,321 | |
Held to Maturity, amortized cost, due after ten years | 4,509 | |
Held to Maturity, amortized cost, subtotal | 202,903 | |
Held to Maturity, amortized cost, mortgage-backed securities and collateralized mortgage obligations | 7,993,935 | |
Held to Maturity, Amortized Cost | 8,196,838 | $ 9,324,811 |
Held to Maturity, fair value, due in one year or less | 37,430 | |
Held to Maturity, fair value, due after one year through five years | 121,632 | |
Held to Maturity, fair value, due after five years through ten years | 45,507 | |
Held to Maturity, fair value, due after ten years | 4,728 | |
Held to Maturity, fair value, subtotal | 209,297 | |
Held to Maturity, fair value, mortgage-backed securities and collateralized mortgage obligations | 8,008,304 | |
Held to Maturity, fair value, total | 8,217,601 | 9,081,236 |
Available for Sale, amortized cost, due in one year or less | 470 | |
Available for Sale, amortized cost, subtotal | 470 | |
Available for Sale, amortized cost, mortgage-backed securities and collateralized mortgage obligations | 297,849 | |
Available for Sale, Amortized Cost | 298,319 | 83,763 |
Available for Sale, fair value, due in one year or less | 471 | |
Available for Sale, fair value, subtotal | 471 | |
Available for Sale, fair value, mortgage-backed securities and collateralized mortgage obligations | 297,897 | |
Available for Sale securities, at fair value | $ 298,368 | $ 84,155 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Types of Loans in Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for sale | $ 20,284 | $ 29,367 | ||||
Total loans held for investment | 10,653,061 | 10,340,946 | $ 10,264,821 | |||
Total | 10,673,345 | 10,370,313 | ||||
Residential Mortgage Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Loans held for sale | 20,284 | 29,367 | ||||
Commercial and Industrial [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans held for investment | 1,460,415 | 1,483,571 | 1,524,854 | |||
Total | 1,460,415 | 1,483,571 | ||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans held for investment | 1,764,648 | 1,622,289 | 1,560,142 | |||
Total | 1,764,648 | 1,622,289 | ||||
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans held for investment | 2,703,398 | 2,677,542 | 2,685,740 | |||
Total | [1] | 2,723,682 | [2] | 2,706,909 | [3] | |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans held for investment | 3,652,176 | 3,538,557 | 3,507,223 | |||
Total | 3,652,176 | 3,538,557 | ||||
Real Estate [Member] | Farmland [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans held for investment | 536,895 | 545,373 | ||||
Agriculture [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans held for investment | 192,690 | 184,128 | ||||
Consumer and Other [Member] | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total loans held for investment | 342,839 | 289,486 | $ 281,112 | |||
Total | $ 342,839 | $ 289,486 | ||||
[1] | Includes $20.3 million and $29.4 million of residential mortgage loans held for sale at September 30, 2019 and December 31, 2018, respectively. | |||||
[2] | Includes $20.3 million of residential mortgage loans held for sale at September 30, 2019. | |||||
[3] | Includes $29.4 million of residential mortgage loans held for sale at December 31, 2018. |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Additional Information (Details) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Percentage of Loans Related to Single Industry on Loans | 10.00% | 10.00% | ||
Percentage of real estate loans aggregating to company loan portfolio | 76.10% | |||
Loans and Leases Receivable, Related Parties | $ 1,728 | $ 1,923 | $ 2,694 | |
Loans held for investment | $ 10,653,061 | $ 10,264,821 | $ 10,340,946 | |
Financing Receivable Ratio of Nonperforming Loans to All Loans and Other Real Estate | 0.48% | 0.18% | ||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 2,200 | 1,400 | ||
Loans and leases receivable, nonaccrual loans | 50,000 | $ 13,400 | ||
Financing Receivable, Allowance for Credit Losses | $ 87,100 | $ 86,400 | ||
Allowance for Credit Losses as Percentage of Loans | 0.82% | 0.83% | ||
Nonaccrual loans | $ 49,973 | $ 13,147 | ||
Troubled debt restructurings, number of loans | contract | 2 | 2 | ||
Financing receivable, number of loans with default | contract | 0 | |||
Financing receivable, modifications, recorded investment | $ 14,200 | $ 72 | ||
Troubled debt restructurings, recorded investment at date of restructure | $ 14,993 | 198 | ||
Loan to be Considered as Payment Default in Period | 90 days | |||
Troubled Debt Restructuring [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Nonaccrual loans | $ 14,200 | 115 | ||
Residential Mortgage Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for sale | 20,300 | $ 28,000 | 29,400 | |
Nonperforming Financial Instruments [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | $ 51,200 | $ 19,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Related Party Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Beginning balance on January 1 | $ 1,923 | $ 2,694 |
New loans | 1 | 5 |
Repayments | (196) | (776) |
Ending balance | $ 1,728 | $ 1,923 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | $ 24,695 | $ 38,278 | |||
Nonaccrual loans | 49,973 | 13,147 | |||
Current loans | 10,598,677 | 10,318,888 | |||
Total loans | 10,673,345 | 10,370,313 | |||
Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 24,354 | 34,274 | |||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 341 | 4,004 | |||
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 1,289 | 705 | |||
Nonaccrual loans | 285 | 256 | |||
Current loans | 728,011 | 728,540 | |||
Total loans | 729,585 | 729,501 | |||
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 1,289 | 705 | |||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 4,686 | 7,151 | |||
Nonaccrual loans | 390 | 1,386 | |||
Current loans | 1,759,572 | 1,613,752 | |||
Total loans | 1,764,648 | 1,622,289 | |||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 4,686 | 6,363 | |||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 788 | ||||
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | [1] | 9,297 | 13,474 | ||
Nonaccrual loans | [1] | 19,258 | 4,515 | ||
Current loans | [1] | 2,695,127 | 2,688,920 | ||
Total loans | [1] | 2,723,682 | [2] | 2,706,909 | [3] |
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | [1] | 9,082 | 10,479 | ||
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | [1] | 215 | 2,995 | ||
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 4,670 | 9,063 | |||
Nonaccrual loans | 14,179 | 2,727 | |||
Current loans | 3,633,327 | 3,526,767 | |||
Total loans | 3,652,176 | 3,538,557 | |||
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 4,670 | 9,063 | |||
Commercial and Industrial [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 4,675 | 6,873 | |||
Nonaccrual loans | 15,822 | 4,215 | |||
Current loans | 1,439,918 | 1,472,483 | |||
Total loans | 1,460,415 | 1,483,571 | |||
Commercial and Industrial [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 4,550 | 6,652 | |||
Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 125 | 221 | |||
Consumer and Other [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 78 | 1,012 | |||
Nonaccrual loans | 39 | 48 | |||
Current loans | 342,722 | 288,426 | |||
Total loans | 342,839 | 289,486 | |||
Consumer and Other [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | 77 | $ 1,012 | |||
Consumer and Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||||
Accounts Notes And Loans Receivable [Line Items] | |||||
Loans past due and still accruing | $ 1 | ||||
[1] | Includes $20.3 million and $29.4 million of residential mortgage loans held for sale at September 30, 2019 and December 31, 2018, respectively. | ||||
[2] | Includes $20.3 million of residential mortgage loans held for sale at September 30, 2019. | ||||
[3] | Includes $29.4 million of residential mortgage loans held for sale at December 31, 2018. |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Aging Analysis of Past Due Loans (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 20,284 | $ 29,367 |
Residential Mortgage Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 20,284 | $ 29,367 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Nonperforming Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | $ 10,653,061 | $ 10,340,946 | $ 10,264,821 | |
Other real estate owned | $ 815 | $ 1,805 | ||
Nonperforming assets to total loans and other real estate | 0.48% | 0.18% | ||
Nonperforming Financial Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | $ 50,314 | $ 17,151 | ||
Repossessed assets | 28 | |||
Other real estate owned | 815 | 1,805 | ||
Total nonperforming assets | 51,157 | 18,956 | ||
Nonperforming Financial Loans [Member] | Finance Receivable Nonaccrual Status [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | [1] | 49,973 | 13,147 | |
Nonperforming Financial Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | $ 341 | $ 4,004 | ||
[1] | Includes troubled debt restructurings of $14.2 million and $51 thousand as of September 30, 2019 and December 31, 2018, respectively. |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Nonperforming Assets (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | $ 10,653,061 | $ 10,340,946 | $ 10,264,821 | |
Nonperforming Financial Loans [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | 50,314 | 17,151 | ||
Nonperforming Financial Loans [Member] | Finance Receivable Nonaccrual Status [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | [1] | 49,973 | 13,147 | |
Troubled Debt Restructuring [Member] | Nonperforming Financial Loans [Member] | Finance Receivable Nonaccrual Status [Member] | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Loans held for investment | $ 14,200 | $ 51 | ||
[1] | Includes troubled debt restructurings of $14.2 million and $51 thousand as of September 30, 2019 and December 31, 2018, respectively. |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Recorded Investment and Outstanding Balance for Purchased Credit Impaired Loans and Non Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Purchased And Non Purchased Credit Impaired Loans [Line Items] | |||
Recorded investment | $ 7,742 | $ 8,588 | $ 9,560 |
PCI Loans [Member] | |||
Purchased And Non Purchased Credit Impaired Loans [Line Items] | |||
Outstanding balance | 9,630 | 11,419 | |
Discount | (1,888) | (2,831) | |
Recorded investment | 7,742 | 8,588 | |
Non PCI Loans [Member] | |||
Purchased And Non Purchased Credit Impaired Loans [Line Items] | |||
Outstanding balance | 431,319 | 526,840 | |
Discount | (11,473) | (14,833) | |
Recorded investment | $ 419,846 | $ 512,007 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Summary of Changes in Accretable Yields of Acquired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
PCI Loans [Member] | ||||
Changes In Accretable Yield for PCI And Non PCI Loans [Line Items] | ||||
Balance at beginning of period | $ 904 | $ 3,969 | $ 1,534 | $ 8,121 |
Reclassifications from nonaccretable | 26 | 181 | 62 | 486 |
Accretion | (277) | (2,170) | (943) | (6,627) |
Balance at September 30, | 653 | 1,980 | 653 | 1,980 |
Non PCI Loans [Member] | ||||
Changes In Accretable Yield for PCI And Non PCI Loans [Line Items] | ||||
Balance at beginning of period | 12,479 | 17,431 | 14,833 | 20,533 |
Accretion charge-offs | (20) | (30) | ||
Accretion | (1,006) | (1,287) | (3,360) | (4,379) |
Balance at September 30, | $ 11,473 | $ 16,124 | $ 11,473 | $ 16,124 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance, recorded investment | $ 40,361 | $ 11,071 |
Impaired loans with no related allowance, unpaid contractual principal balance | 44,002 | 12,943 |
Impaired loans with no related allowance, average recorded investment | 25,716 | 12,998 |
Impaired loans with related allowance, recorded investment | 7,415 | 1,985 |
Impaired loans with related allowance, unpaid contractual principal balance | 7,470 | 2,012 |
Impaired loans with related allowance, related allowance | 1,596 | 685 |
Impaired loans with related allowance, average recorded investment | 4,699 | 5,407 |
Impaired loans, recorded investment | 47,776 | 13,056 |
Impaired loans, unpaid contractual principal balance | 51,472 | 14,955 |
Impaired loans with an allowance recorded, related allowance | 1,596 | 685 |
Impaired loans, average recorded investment | 30,415 | 18,405 |
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance, recorded investment | 147 | 256 |
Impaired loans with no related allowance, unpaid contractual principal balance | 147 | 311 |
Impaired loans with no related allowance, average recorded investment | 202 | 194 |
Impaired loans with related allowance, recorded investment | 138 | |
Impaired loans with related allowance, unpaid contractual principal balance | 138 | |
Impaired loans with related allowance, related allowance | 14 | |
Impaired loans with related allowance, average recorded investment | 69 | |
Impaired loans, recorded investment | 285 | 256 |
Impaired loans, unpaid contractual principal balance | 285 | 311 |
Impaired loans, average recorded investment | 271 | 194 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance, recorded investment | 993 | |
Impaired loans with no related allowance, unpaid contractual principal balance | 995 | |
Impaired loans with no related allowance, average recorded investment | 496 | 788 |
Impaired loans with related allowance, recorded investment | 390 | 391 |
Impaired loans with related allowance, unpaid contractual principal balance | 390 | 391 |
Impaired loans with related allowance, related allowance | 58 | 58 |
Impaired loans with related allowance, average recorded investment | 390 | 195 |
Impaired loans, recorded investment | 390 | 1,384 |
Impaired loans, unpaid contractual principal balance | 390 | 1,386 |
Impaired loans, average recorded investment | 886 | 983 |
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance, recorded investment | 11,825 | 4,177 |
Impaired loans with no related allowance, unpaid contractual principal balance | 12,560 | 4,903 |
Impaired loans with no related allowance, average recorded investment | 8,001 | 4,048 |
Impaired loans with related allowance, recorded investment | 5,236 | 266 |
Impaired loans with related allowance, unpaid contractual principal balance | 5,268 | 289 |
Impaired loans with related allowance, related allowance | 1,067 | 56 |
Impaired loans with related allowance, average recorded investment | 2,751 | 729 |
Impaired loans, recorded investment | 17,061 | 4,443 |
Impaired loans, unpaid contractual principal balance | 17,828 | 5,192 |
Impaired loans, average recorded investment | 10,752 | 4,777 |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance, recorded investment | 13,206 | 2,727 |
Impaired loans with no related allowance, unpaid contractual principal balance | 13,606 | 2,848 |
Impaired loans with no related allowance, average recorded investment | 7,966 | 2,475 |
Impaired loans with related allowance, recorded investment | 973 | |
Impaired loans with related allowance, unpaid contractual principal balance | 993 | |
Impaired loans with related allowance, related allowance | 283 | |
Impaired loans with related allowance, average recorded investment | 486 | 743 |
Impaired loans, recorded investment | 14,179 | 2,727 |
Impaired loans, unpaid contractual principal balance | 14,599 | 2,848 |
Impaired loans, average recorded investment | 8,452 | 3,218 |
Commercial and Industrial [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance, recorded investment | 15,144 | 2,870 |
Impaired loans with no related allowance, unpaid contractual principal balance | 17,646 | 3,810 |
Impaired loans with no related allowance, average recorded investment | 9,007 | 5,358 |
Impaired loans with related allowance, recorded investment | 678 | 1,328 |
Impaired loans with related allowance, unpaid contractual principal balance | 681 | 1,332 |
Impaired loans with related allowance, related allowance | 174 | 571 |
Impaired loans with related allowance, average recorded investment | 1,003 | 3,740 |
Impaired loans, recorded investment | 15,822 | 4,198 |
Impaired loans, unpaid contractual principal balance | 18,327 | 5,142 |
Impaired loans, average recorded investment | 10,010 | 9,098 |
Consumer and Other [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Impaired loans with no related allowance, recorded investment | 39 | 48 |
Impaired loans with no related allowance, unpaid contractual principal balance | 43 | 76 |
Impaired loans with no related allowance, average recorded investment | 44 | 135 |
Impaired loans, recorded investment | 39 | 48 |
Impaired loans, unpaid contractual principal balance | 43 | 76 |
Impaired loans, average recorded investment | $ 44 | $ 135 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Risk Grade and Category of Loan (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |||
Financing Receivable Impaired [Line Items] | |||||
Loans | $ 10,673,345 | $ 10,370,313 | |||
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 729,585 | 729,501 | |||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 1,764,648 | 1,622,289 | |||
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | [1] | 2,723,682 | [2] | 2,706,909 | [3] |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 3,652,176 | 3,538,557 | |||
Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 1,460,415 | 1,483,571 | |||
Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 342,839 | 289,486 | |||
Grade 1 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 100,905 | 112,839 | |||
Grade 1 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 12,021 | 15,725 | |||
Grade 1 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 1 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | [2] | 0 | [3] | |
Grade 1 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 1 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 54,518 | 59,979 | |||
Grade 1 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 34,366 | 37,135 | |||
Grade 2 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 123,664 | 115,491 | |||
Grade 2 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 3,400 | 3,974 | |||
Grade 2 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 1,556 | 1,040 | |||
Grade 2 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 12,430 | [2] | 21,465 | [3] | |
Grade 2 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 21,476 | 22,207 | |||
Grade 2 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 20,448 | 11,003 | |||
Grade 2 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 64,354 | 55,802 | |||
Grade 3 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 9,156,070 | 8,974,366 | |||
Grade 3 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 639,697 | 636,674 | |||
Grade 3 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 1,596,753 | 1,509,532 | |||
Grade 3 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 2,623,058 | [2] | 2,598,600 | [3] | |
Grade 3 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 3,032,835 | 2,974,474 | |||
Grade 3 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 1,049,208 | 1,083,328 | |||
Grade 3 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 214,519 | 171,758 | |||
Grade 4 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 1,092,828 | 972,809 | |||
Grade 4 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 69,282 | 66,650 | |||
Grade 4 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 156,900 | 99,087 | |||
Grade 4 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 58,596 | [2] | 61,430 | [3] | |
Grade 4 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 520,024 | 481,735 | |||
Grade 4 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 264,851 | 243,743 | |||
Grade 4 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 23,175 | 20,164 | |||
Grade 5 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 109,862 | 120,781 | |||
Grade 5 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 3,726 | 5,578 | |||
Grade 5 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 3,233 | 3,673 | |||
Grade 5 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 6,001 | [2] | 12,522 | [3] | |
Grade 5 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 42,720 | 37,942 | |||
Grade 5 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 49,423 | 58,088 | |||
Grade 5 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 4,759 | 2,978 | |||
Grade 6 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 34,498 | 52,383 | |||
Grade 6 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 850 | 282 | |||
Grade 6 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 5,407 | 7,081 | |||
Grade 6 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 2,406 | [2] | 4,332 | [3] | |
Grade 6 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 18,179 | 16,006 | |||
Grade 6 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 6,029 | 23,081 | |||
Grade 6 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 1,627 | 1,601 | |||
Grade 7 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 47,760 | 12,975 | |||
Grade 7 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 285 | 256 | |||
Grade 7 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 390 | 1,384 | |||
Grade 7 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 17,061 | [2] | 4,395 | [3] | |
Grade 7 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 14,179 | 2,727 | |||
Grade 7 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 15,806 | 4,165 | |||
Grade 7 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 39 | 48 | |||
Grade 8 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 16 | 81 | |||
Grade 8 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 8 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 8 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | [2] | 48 | [3] | |
Grade 8 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 8 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 16 | 33 | |||
Grade 8 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 9 [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 9 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 9 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 9 [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | [2] | 0 | [3] | |
Grade 9 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 9 [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
Grade 9 [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 0 | 0 | |||
PCI Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 7,742 | 8,588 | |||
PCI Loans [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 324 | 362 | |||
PCI Loans [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 409 | 492 | |||
PCI Loans [Member] | Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 4,130 | [2] | 4,117 | [3] | |
PCI Loans [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 2,763 | 3,466 | |||
PCI Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | 116 | 151 | |||
PCI Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Loans | $ 0 | $ 0 | |||
[1] | Includes $20.3 million and $29.4 million of residential mortgage loans held for sale at September 30, 2019 and December 31, 2018, respectively. | ||||
[2] | Includes $20.3 million of residential mortgage loans held for sale at September 30, 2019. | ||||
[3] | Includes $29.4 million of residential mortgage loans held for sale at December 31, 2018. |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Risk Grade and Category of Loan (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable Impaired [Line Items] | ||
Loans held for sale | $ 20,284 | $ 29,367 |
Residential Mortgage Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Loans held for sale | $ 20,284 | $ 29,367 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Allowance for Credit Losses by Category of Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
Allowance for credit losses: | |||||||
Allowance for credit losses, beginning balance | $ 87,006 | $ 84,964 | $ 86,440 | $ 84,041 | |||
Provision for credit losses | 1,100 | 2,350 | 2,600 | 15,350 | |||
Charge-offs | (1,737) | (1,762) | (5,765) | (15,048) | |||
Recoveries | 692 | 444 | 3,786 | 1,653 | |||
Net charge-offs | (1,045) | (1,318) | (1,979) | (13,395) | |||
Allowance for credit losses, ending balance | 87,061 | 85,996 | 87,061 | 85,996 | |||
Allowance for credit losses related to: | |||||||
Allowance for credit losses, individually evaluated for impairment | $ 1,596 | $ 685 | $ 563 | ||||
Allowance for credit losses, collectively evaluated for impairment | 85,465 | 85,755 | 85,433 | ||||
Total allowance for credit losses | 87,061 | 84,964 | 87,061 | 85,996 | 87,061 | 86,440 | 85,996 |
Recorded investment in loans: | |||||||
Loans, individually evaluated for impairment | 47,776 | 13,056 | 13,388 | ||||
Loans, collectively evaluated for impairment | 10,597,543 | 10,319,302 | 10,241,873 | ||||
PCI loans | 7,742 | 8,588 | 9,560 | ||||
Total loans evaluated for impairment | 10,653,061 | 10,340,946 | 10,264,821 | ||||
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||||
Allowance for credit losses: | |||||||
Allowance for credit losses, beginning balance | 3,816 | 3,756 | 3,693 | 3,772 | |||
Provision for credit losses | 188 | (158) | (921) | (280) | |||
Charge-offs | (294) | (25) | (358) | (25) | |||
Recoveries | 16 | 138 | 1,312 | 244 | |||
Net charge-offs | (278) | 113 | 954 | 219 | |||
Allowance for credit losses, ending balance | 3,726 | 3,711 | 3,726 | 3,711 | |||
Allowance for credit losses related to: | |||||||
Allowance for credit losses, individually evaluated for impairment | 14 | ||||||
Allowance for credit losses, collectively evaluated for impairment | 3,712 | 3,693 | 3,711 | ||||
Total allowance for credit losses | 3,816 | 3,756 | 3,726 | 3,711 | 3,726 | 3,693 | 3,711 |
Recorded investment in loans: | |||||||
Loans, individually evaluated for impairment | 285 | 256 | 262 | ||||
Loans, collectively evaluated for impairment | 728,976 | 728,883 | 705,113 | ||||
PCI loans | 324 | 362 | 375 | ||||
Total loans evaluated for impairment | 729,585 | 729,501 | 705,750 | ||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
Allowance for credit losses: | |||||||
Allowance for credit losses, beginning balance | 15,886 | 14,450 | 15,582 | 14,815 | |||
Provision for credit losses | (290) | 519 | 21 | 276 | |||
Charge-offs | (63) | (130) | |||||
Recoveries | 6 | 1 | 62 | 9 | |||
Net charge-offs | 6 | 1 | (1) | (121) | |||
Allowance for credit losses, ending balance | 15,602 | 14,970 | 15,602 | 14,970 | |||
Allowance for credit losses related to: | |||||||
Allowance for credit losses, individually evaluated for impairment | 58 | 58 | |||||
Allowance for credit losses, collectively evaluated for impairment | 15,544 | 15,524 | 14,970 | ||||
Total allowance for credit losses | 15,886 | 14,450 | 15,602 | 14,970 | 15,602 | 15,582 | 14,970 |
Recorded investment in loans: | |||||||
Loans, individually evaluated for impairment | 390 | 1,384 | 869 | ||||
Loans, collectively evaluated for impairment | 1,763,849 | 1,620,413 | 1,558,632 | ||||
PCI loans | 409 | 492 | 641 | ||||
Total loans evaluated for impairment | 1,764,648 | 1,622,289 | 1,560,142 | ||||
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||||||
Allowance for credit losses: | |||||||
Allowance for credit losses, beginning balance | 14,383 | 13,353 | 14,135 | 14,490 | |||
Provision for credit losses | 543 | 593 | 799 | (173) | |||
Charge-offs | (17) | (22) | (403) | ||||
Recoveries | 9 | 6 | 23 | 21 | |||
Net charge-offs | 9 | (11) | 1 | (382) | |||
Allowance for credit losses, ending balance | 14,935 | 13,935 | 14,935 | 13,935 | |||
Allowance for credit losses related to: | |||||||
Allowance for credit losses, individually evaluated for impairment | 1,067 | 56 | 53 | ||||
Allowance for credit losses, collectively evaluated for impairment | 13,868 | 14,079 | 13,882 | ||||
Total allowance for credit losses | 14,383 | 13,353 | 14,935 | 13,935 | 14,935 | 14,135 | 13,935 |
Recorded investment in loans: | |||||||
Loans, individually evaluated for impairment | 17,061 | 4,443 | 4,427 | ||||
Loans, collectively evaluated for impairment | 2,682,207 | 2,668,982 | 2,677,237 | ||||
PCI loans | 4,130 | 4,117 | 4,076 | ||||
Total loans evaluated for impairment | 2,703,398 | 2,677,542 | 2,685,740 | ||||
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||||
Allowance for credit losses: | |||||||
Allowance for credit losses, beginning balance | 12,166 | 10,616 | 11,220 | 10,628 | |||
Provision for credit losses | 452 | 411 | 1,396 | 1,887 | |||
Charge-offs | (1,489) | ||||||
Recoveries | 1 | 10 | 3 | 11 | |||
Net charge-offs | 1 | 10 | 3 | (1,478) | |||
Allowance for credit losses, ending balance | 12,619 | 11,037 | 12,619 | 11,037 | |||
Allowance for credit losses related to: | |||||||
Allowance for credit losses, individually evaluated for impairment | 283 | 10 | |||||
Allowance for credit losses, collectively evaluated for impairment | 12,336 | 11,220 | 11,027 | ||||
Total allowance for credit losses | 12,166 | 10,616 | 12,619 | 11,037 | 12,619 | 11,220 | 11,037 |
Recorded investment in loans: | |||||||
Loans, individually evaluated for impairment | 14,179 | 2,727 | 2,256 | ||||
Loans, collectively evaluated for impairment | 3,635,234 | 3,532,364 | 3,500,651 | ||||
PCI loans | 2,763 | 3,466 | 4,316 | ||||
Total loans evaluated for impairment | 3,652,176 | 3,538,557 | 3,507,223 | ||||
Commercial and Industrial [Member] | |||||||
Allowance for credit losses: | |||||||
Allowance for credit losses, beginning balance | 39,177 | 41,454 | 40,223 | 38,810 | |||
Provision for credit losses | (763) | (17) | (918) | 11,690 | |||
Charge-offs | (419) | (742) | (2,501) | (10,112) | |||
Recoveries | 502 | 85 | 1,693 | 392 | |||
Net charge-offs | 83 | (657) | (808) | (9,720) | |||
Allowance for credit losses, ending balance | 38,497 | 40,780 | 38,497 | 40,780 | |||
Allowance for credit losses related to: | |||||||
Allowance for credit losses, individually evaluated for impairment | 174 | 571 | 500 | ||||
Allowance for credit losses, collectively evaluated for impairment | 38,323 | 39,652 | 40,280 | ||||
Total allowance for credit losses | 39,177 | 41,454 | 38,497 | 40,780 | 38,497 | 40,223 | 40,780 |
Recorded investment in loans: | |||||||
Loans, individually evaluated for impairment | 15,822 | 4,198 | 5,506 | ||||
Loans, collectively evaluated for impairment | 1,444,477 | 1,479,222 | 1,519,196 | ||||
PCI loans | 116 | 151 | 152 | ||||
Total loans evaluated for impairment | 1,460,415 | 1,483,571 | 1,524,854 | ||||
Consumer and Other [Member] | |||||||
Allowance for credit losses: | |||||||
Allowance for credit losses, beginning balance | 1,578 | 1,335 | 1,587 | 1,526 | |||
Provision for credit losses | 970 | 1,002 | 2,223 | 1,950 | |||
Charge-offs | (1,024) | (978) | (2,821) | (2,889) | |||
Recoveries | 158 | 204 | 693 | 976 | |||
Net charge-offs | (866) | (774) | (2,128) | (1,913) | |||
Allowance for credit losses, ending balance | 1,682 | 1,563 | 1,682 | 1,563 | |||
Allowance for credit losses related to: | |||||||
Allowance for credit losses, collectively evaluated for impairment | 1,682 | 1,587 | 1,563 | ||||
Total allowance for credit losses | $ 1,578 | $ 1,335 | $ 1,682 | $ 1,563 | 1,682 | 1,587 | 1,563 |
Recorded investment in loans: | |||||||
Loans, individually evaluated for impairment | 39 | 48 | 68 | ||||
Loans, collectively evaluated for impairment | 342,800 | 289,438 | 281,044 | ||||
Total loans evaluated for impairment | $ 342,839 | $ 289,486 | $ 281,112 |
Loans and Allowance for Cred_16
Loans and Allowance for Credit Losses - Troubled Debt Restructurings (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | |
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructurings, number of loans | contract | 2 | 2 |
Troubled debt restructurings, pre-modification outstanding recorded investment | $ 14,993 | $ 198 |
Troubled debt restructurings, post-modification outstanding recorded investment | $ 14,188 | $ 72 |
Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructurings, number of loans | contract | 2 | 2 |
Troubled debt restructurings, pre-modification outstanding recorded investment | $ 14,993 | $ 198 |
Troubled debt restructurings, post-modification outstanding recorded investment | $ 14,188 | $ 72 |
Fair Value - Fair Value Assets
Fair Value - Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available for sale securities: | ||
Available for sale securities, at fair value | $ 298,368 | $ 84,155 |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 298,368 | 84,155 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 298,368 | 84,155 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 471 | 1,166 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 471 | 1,166 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 241,726 | 12,756 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 241,726 | 12,756 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 56,171 | 70,233 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | $ 56,171 | $ 70,233 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | ||
Other real estate, additions | $ 59 | $ 2,000 |
Real estate owned outstanding | 59 | 1,700 |
Additions to impaired loans | 12,500 | 42,900 |
Impaired loans outstanding | $ 12,500 | $ 40,400 |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying and Fair Value Information of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 420,359 | $ 410,575 |
Federal funds sold | 521 | 552 |
Held to maturity securities | 8,217,601 | 9,081,236 |
Loans held for sale | 20,284 | 29,367 |
Other real estate owned | 815 | 1,805 |
Liabilities | ||
Noninterest-bearing | 5,784,002 | 5,666,115 |
Interest-bearing | 11,145,918 | 11,590,443 |
Other borrowings | 600,795 | 1,031,126 |
Securities sold under repurchase agreements | 311,404 | 284,720 |
Carrying Amount [Member] | ||
Assets | ||
Cash and due from banks | 420,359 | 410,575 |
Federal funds sold | 521 | 552 |
Held to maturity securities | 8,196,838 | 9,324,811 |
Loans held for sale | 20,284 | 29,367 |
Loans held for investment, net of allowance | 10,566,000 | 10,254,506 |
Other real estate owned | 815 | 1,805 |
Liabilities | ||
Noninterest-bearing | 5,784,002 | 5,666,115 |
Interest-bearing | 11,145,918 | 11,590,443 |
Other borrowings | 600,795 | 1,031,126 |
Securities sold under repurchase agreements | 311,404 | 284,720 |
Estimated Fair Value [Member] | ||
Assets | ||
Cash and due from banks | 420,359 | 410,575 |
Federal funds sold | 521 | 552 |
Held to maturity securities | 8,217,601 | 9,081,236 |
Loans held for sale | 20,284 | 29,367 |
Loans held for investment, net of allowance | 10,498,468 | 10,144,556 |
Other real estate owned | 815 | 1,805 |
Liabilities | ||
Noninterest-bearing | 5,784,002 | 5,666,115 |
Interest-bearing | 11,142,770 | 11,564,521 |
Other borrowings | 600,833 | 1,031,161 |
Securities sold under repurchase agreements | 311,411 | 284,685 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Assets | ||
Cash and due from banks | 420,359 | 410,575 |
Federal funds sold | 521 | 552 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Assets | ||
Held to maturity securities | 8,217,601 | 9,081,236 |
Loans held for sale | 20,284 | 29,367 |
Other real estate owned | 815 | 1,805 |
Liabilities | ||
Noninterest-bearing | 5,784,002 | 5,666,115 |
Interest-bearing | 11,142,770 | 11,564,521 |
Other borrowings | 600,833 | 1,031,161 |
Securities sold under repurchase agreements | 311,411 | 284,685 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Assets | ||
Loans held for investment, net of allowance | $ 10,498,468 | $ 10,144,556 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangibles - Goodwill and Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill, Beginning balance | $ 1,900,845 | $ 1,900,845 | $ 1,900,845 | ||
Goodwill, Ending balance | $ 1,900,845 | 1,900,845 | 1,900,845 | ||
Core Deposit Intangibles, Beginning balance | 32,883 | 38,842 | 38,842 | ||
Core Deposit Intangibles, Amortization | (1,248) | $ (1,478) | (3,832) | $ (4,547) | (5,959) |
Core Deposit Intangibles, Ending balance | $ 29,051 | $ 29,051 | $ 32,883 |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangibles - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | |||||
Impairment recorded on goodwill and core deposit intangibles | $ 0 | ||||
Amortization expense related to intangible assets | $ 1,248,000 | $ 1,478,000 | $ 3,832,000 | $ 4,547,000 | $ 5,959,000 |
Minimum [Member] | |||||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||||
Finite-lived intangible assets, useful life | 10 years | ||||
Maximum [Member] | |||||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||||
Finite-lived intangible assets, useful life | 15 years |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangibles - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Remaining 2019 | $ 1,219 | ||
2020 | 4,483 | ||
2021 | 4,022 | ||
2022 | 3,664 | ||
2023 | 3,350 | ||
Thereafter | 12,313 | ||
Total | $ 29,051 | $ 32,883 | $ 38,842 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)Planshares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Planshares | Sep. 30, 2018USD ($) | Dec. 31, 2012shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock-based employee compensation plans | Plan | 1 | 1 | |||
Total unrecognized compensation expense related to stock-based compensation arrangements | $ | $ 12.8 | $ 12.8 | |||
Weighted-average period of cost expected to be recognized | 1 year 10 months 9 days | ||||
Number of shares outstanding | 0 | 0 | |||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 2.5 | $ 2.8 | $ 7.6 | $ 7.9 | |
2012 Stock Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common shares authorized for issuance | 1,250,000 | ||||
Shares issued | 346,500 | ||||
Number of restricted shares granted | 398,532 |
Contractual Obligations and O_3
Contractual Obligations and Off-Balance Sheet Items - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||
Operating lease, right-of-use asset | $ 17,000 | $ 17,000 |
Operating lease, liability | $ 17,000 | $ 17,000 |
Operating lease, weighted average remaining lease term | 5 years 8 months 12 days | 5 years 8 months 12 days |
Operating lease weighted average discount rate, percent | 3.20% | 3.20% |
Operating lease, payments | $ 1,400 | $ 4,200 |
ROU assets in exchange for lease liabilities | $ 2,400 | |
Minimum [Member] | ||
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||
Lessee operating lease remaining lease term | 1 year | |
Maximum [Member] | ||
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||
Lessee operating lease remaining lease term | 13 years | |
Federal Home Loan Bank Advance And Notes Payable [Member] | ||
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||
Interest payable | $ 64 | $ 64 |
Contractual Obligations and O_4
Contractual Obligations and Off-Balance Sheet Items - Contractual Obligations and Other Commitments (Details) - Federal Home Loan Bank Advance And Notes Payable [Member] $ in Thousands | Sep. 30, 2019USD ($) |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | $ 600,572 |
More than 1 year but less than 3 years | 125 |
3 years or more but less than 5 years | 125 |
5 years or more | 37 |
Total | $ 600,859 |
Contractual Obligations and O_5
Contractual Obligations and Off-Balance Sheet Items - Future Undiscounted Cash Payments Associated with its Operating Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remaining 2019 | $ 1,282 |
2020 | 4,607 |
2021 | 3,588 |
2022 | 3,111 |
2023 | 2,550 |
2024 | 1,641 |
Thereafter | 4,426 |
Total undiscounted lease payments | $ 21,205 |
Contractual Obligations and O_6
Contractual Obligations and Off-Balance Sheet Items - Summary of Non-Cancelable Future Operating Lease Commitments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 4,897 |
2020 | 4,088 |
2021 | 3,013 |
2022 | 2,319 |
2023 | 2,025 |
Thereafter | 3,597 |
Total non-cancelable lease payments | $ 19,939 |
Contractual Obligations and O_7
Contractual Obligations and Off-Balance Sheet Items - Summary of Commitments Associated with Outstanding Standby Letters of Credit and Commitments to Extend Credit (Details) - Guarantee Obligations [Member] $ in Thousands | Sep. 30, 2019USD ($) |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | $ 1,232,016 |
More than 1 year but less than 3 years | 363,241 |
3 years or more but less than 5 years | 104,363 |
5 years or more | 1,050,959 |
Total | 2,750,579 |
Standby Letters of Credit [Member] | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | 62,393 |
More than 1 year but less than 3 years | 5,663 |
3 years or more but less than 5 years | 1,932 |
5 years or more | 0 |
Total | 69,988 |
Commitments to Extend Credit [Member] | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | 1,169,623 |
More than 1 year but less than 3 years | 357,578 |
3 years or more but less than 5 years | 102,431 |
5 years or more | 1,050,959 |
Total | $ 2,680,591 |
Other Comprehensive Income - Ta
Other Comprehensive Income - Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Equity [Abstract] | ||||
Change in unrealized gain during period, before tax amount | $ (1,563) | $ 149 | $ (344) | $ 729 |
Change in unrealized gain during period, tax effect | 328 | (31) | 72 | (153) |
Change in unrealized gain during period, net of tax amount | (1,235) | 118 | (272) | 576 |
Total securities available for sale, before tax amount | (1,563) | 149 | (344) | 729 |
Total securities available for sale, tax effect | 328 | (31) | 72 | (153) |
Total securities available for sale, net of tax amount | (1,235) | 118 | (272) | 576 |
Total other comprehensive (loss) income, before tax amount | (1,563) | 149 | (344) | 729 |
Total other comprehensive (loss) income, tax effect | 328 | (31) | 72 | (153) |
Other comprehensive (loss) income, net of tax | $ (1,235) | $ 118 | $ (272) | $ 576 |
Other Comprehensive Income - Ac
Other Comprehensive Income - Activity in Accumulated Other Comprehensive Income Associated with Securities Available for Sale, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Beginning balance, accumulated other comprehensive income | $ 310 | $ (113) | ||
Other comprehensive income (loss) | $ (1,235) | $ 118 | (272) | 576 |
Ending balance, accumulated other comprehensive income | 38 | 463 | 38 | 463 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Beginning balance, accumulated other comprehensive income | 310 | (113) | ||
Other comprehensive income (loss) | (272) | 576 | ||
Ending balance, accumulated other comprehensive income | $ 38 | $ 463 | $ 38 | $ 463 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 01, 2019LocationCity$ / sharesshares | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Subsequent Event [Line Items] | |||
Total assets | $ 22,092,817 | $ 22,693,402 | |
Total deposits | 16,929,920 | $ 17,256,558 | |
LegacyTexas [Member] | |||
Subsequent Event [Line Items] | |||
Total assets | 10,500,000 | ||
Total gross loans | 9,100,000 | ||
Total deposits | $ 6,500,000 | ||
LegacyTexas [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Business acquisition, share consideration per share | shares | 0.5280 | ||
Business acquisition, cash for each share | $ / shares | $ 6.28 | ||
LegacyTexas [Member] | North Texas [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of bank operating locations | Location | 42 | ||
Number of bank operating cities | City | 19 |