Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 333-236022 | |
Entity Registrant Name | BANCPLUS CORPORATION | |
Entity Incorporation, State or Country Code | MS | |
Entity Tax Identification Number | 64-0655312 | |
Entity Address, Address Line One | 1068 Highland Colony Parkway | |
Entity Address, City or Town | Ridgeland | |
Entity Address, State or Province | MS | |
Entity Address, Postal Zip Code | 39157 | |
City Area Code | 601 | |
Local Phone Number | 898-8300 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 10,132,876 | |
Entity Central Index Key | 0001118004 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Cash and due from banks | $ 140,508 | $ 45,475 |
Interest bearing deposits with banks | 213,670 | 267,497 |
Federal funds sold | 45,145 | 0 |
Total cash and cash equivalents | 399,323 | 312,972 |
Securities available for sale | 337,686 | 201,073 |
Securities held to maturity - fair value: $98,179 - 2020; $179,225 - 2019 | 97,491 | 177,854 |
Loans held for sale | 26,774 | 16,092 |
Loans | 3,420,684 | 2,078,997 |
Less: Allowance for loan losses | 26,848 | 21,500 |
Net loans | 3,393,836 | 2,057,497 |
Premises and equipment | 102,373 | 75,072 |
Operating lease right-of-use assets | 37,079 | 39,194 |
Accrued interest receivable | 20,604 | 11,509 |
Goodwill | 2,616 | 2,616 |
Other assets | 135,036 | 85,185 |
Total assets | 4,552,818 | 2,979,064 |
Liabilities: | ||
Deposits | 3,991,348 | 2,592,065 |
Advances from Federal Home Loan Bank and other borrowings | 34,705 | 37,652 |
Subordinated debentures | 111,032 | 41,238 |
Operating lease liabilities | 41,715 | 43,578 |
Accrued interest payable | 4,367 | 1,083 |
Other liabilities | 20,049 | 11,937 |
Total liabilities | 4,203,216 | 2,727,553 |
Common Stock, par value $1.00 per share. | ||
40,000,000 authorized at September 30, 2020 and December 31, 2019; 10,132,876 and 7,652,957 issued and outstanding at September 30, 2020 and December 31, 2019, respectively | 10,133 | 7,653 |
Unearned Employee Stock Ownership Plan compensation | (2,942) | (4,476) |
Additional paid-in capital | 69,933 | 811 |
Retained earnings | 265,063 | 247,241 |
Accumulated other comprehensive income, net | 7,415 | 282 |
Stockholders' equity before redeemable common stock owned by employee stock ownership plan | 349,602 | 251,511 |
Total shareholders' equity | 281,080 | 172,203 |
Liabilities and equity | 4,552,818 | 2,979,064 |
Employee Stock Ownership Plan | ||
Liabilities: | ||
Redeemable common stock owned by the ESOP | 68,522 | 79,308 |
Common Stock, par value $1.00 per share. | ||
Less: Redeemable common stock owned by the ESOP | $ (68,522) | $ (79,308) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Fair value | $ 98,179 | $ 179,225 |
Common stock, par value per share (USD per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares, issued (in shares) | 10,132,876 | 7,652,957 |
Common stock outstanding (in shares) | 10,132,876 | 7,652,957 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income: | ||||
Interest and fees on loans | $ 44,083 | $ 28,181 | $ 113,710 | $ 83,149 |
Taxable securities | 1,815 | 1,187 | 5,157 | 3,826 |
Tax-exempt securities | 573 | 880 | 1,942 | 2,742 |
Interest bearing bank balances and other | 113 | 1,152 | 1,329 | 3,268 |
Total interest income | 46,584 | 31,400 | 122,138 | 92,985 |
Interest expense: | ||||
Deposits | 3,193 | 4,865 | 11,259 | 13,900 |
Short-term borrowings | 0 | 0 | 2 | 0 |
Advances from Federal Home Loan Bank | 79 | 81 | 239 | 243 |
Other borrowings | 1,420 | 577 | 2,673 | 1,799 |
Total interest expense | 4,692 | 5,523 | 14,173 | 15,942 |
Net interest income | 41,892 | 25,877 | 107,965 | 77,043 |
Provision for loan losses | 4,671 | 498 | 7,706 | 1,110 |
Net interest income after provision for loan losses | 37,221 | 25,379 | 100,259 | 75,933 |
Other operating income: | ||||
Service charges on deposit accounts | 5,690 | 7,232 | 16,674 | 20,716 |
Mortgage origination income | 2,827 | 1,307 | 5,974 | 3,169 |
Debit card interchange | 1,909 | 1,577 | 5,412 | 4,747 |
Securities gains, net | 6 | 42 | 57 | 72 |
Other income | 8,193 | 4,598 | 17,265 | 13,913 |
Total other operating income | 18,625 | 14,756 | 45,382 | 42,617 |
Other operating expenses: | ||||
Salaries and employee benefits | 23,162 | 16,592 | 65,349 | 48,678 |
Net occupancy expenses | 3,459 | 2,994 | 9,709 | 8,631 |
Furniture, equipment and data processing expenses | 5,801 | 3,653 | 15,621 | 10,783 |
Other expenses | 7,490 | 6,014 | 19,834 | 16,121 |
Total other operating expenses | 39,912 | 29,253 | 110,513 | 84,213 |
Income before income taxes | 15,934 | 10,882 | 35,128 | 34,337 |
Income tax expense | 3,334 | 2,105 | 7,613 | 6,622 |
Net income | $ 12,600 | $ 8,777 | $ 27,515 | $ 27,715 |
Earnings per common share - basic (in USD per share) | $ 1.25 | $ 1.17 | $ 2.98 | $ 3.68 |
Earnings per common share - diluted (in USD per share) | $ 1.24 | $ 1.15 | $ 2.96 | $ 3.64 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 12,600 | $ 8,777 | $ 27,515 | $ 27,715 |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gains (losses) on securities available for sale | (225) | 257 | 9,498 | 1,393 |
Tax effect | 56 | (64) | (2,365) | (347) |
Total other comprehensive income (loss), net of tax | (169) | 193 | 7,133 | 1,046 |
Comprehensive income | $ 12,431 | $ 8,970 | $ 34,648 | $ 28,761 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative effect, period of adoption, adjustment | Common Stock | Common StockClass A | Common StockClass B | Unearned ESOP Compensation | Additional Paid-In Capital | Retained Earnings | Retained EarningsCumulative effect, period of adoption, adjustment | Accumulated Other Comprehensive Income (Loss) | Less: Redeemable Common Stock Owned by the ESOP |
Shares outstanding, beginning balance (in shares) at Dec. 31, 2018 | 0 | 7,476,989 | 115,005 | ||||||||
Shareholders' equity, beginning balance at Dec. 31, 2018 | $ 159,555 | $ (5,240) | $ 0 | $ 7,477 | $ 115 | $ (2,962) | $ 180 | $ 225,723 | $ (5,240) | $ (471) | $ (70,507) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 27,715 | 27,715 | |||||||||
Other comprehensive income, net | 1,046 | 1,046 | |||||||||
Issuance of restricted stock (in shares) | 32,244 | ||||||||||
Issuance of restricted stock | 0 | $ 32 | (32) | ||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (917) | ||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (46) | $ (1) | (45) | ||||||||
Stock based compensation | 519 | 519 | |||||||||
Net change fair value of ESOP shares | (9,370) | (9,370) | |||||||||
Common stock released by ESOP | 739 | 739 | |||||||||
Common stock acquired by ESOP | (1,483) | (1,483) | |||||||||
Dividends declared | (7,230) | (7,230) | |||||||||
Conversion of class A and B common stock to common stock (in shares) | (7,591,994) | (7,476,989) | (115,005) | ||||||||
Conversion of Class A and B Common Stock to Common Stock | $ 7,592 | $ (7,477) | $ (115) | ||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2019 | 7,623,321 | 0 | 0 | ||||||||
Shareholders' equity, ending balance at Sep. 30, 2019 | 166,205 | $ 7,623 | $ 0 | $ 0 | (3,706) | 622 | 240,968 | 575 | (79,877) | ||
Shares outstanding, beginning balance (in shares) at Jun. 30, 2019 | 7,619,021 | 0 | 0 | ||||||||
Shareholders' equity, beginning balance at Jun. 30, 2019 | 161,289 | $ 7,619 | $ 0 | $ 0 | (3,953) | 412 | 234,600 | 382 | (77,771) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 8,777 | 8,777 | |||||||||
Other comprehensive income, net | 193 | 193 | |||||||||
Issuance of restricted stock (in shares) | 4,300 | ||||||||||
Issuance of restricted stock | 0 | $ 4 | (4) | ||||||||
Stock based compensation | 214 | 214 | |||||||||
Net change fair value of ESOP shares | (2,106) | (2,106) | |||||||||
Common stock released by ESOP | 247 | 247 | |||||||||
Dividends declared | (2,409) | (2,409) | |||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2019 | 7,623,321 | 0 | 0 | ||||||||
Shareholders' equity, ending balance at Sep. 30, 2019 | 166,205 | $ 7,623 | $ 0 | $ 0 | (3,706) | 622 | 240,968 | 575 | (79,877) | ||
Shares outstanding, beginning balance (in shares) at Dec. 31, 2019 | 7,652,957 | ||||||||||
Shareholders' equity, beginning balance at Dec. 31, 2019 | 172,203 | $ 7,653 | (4,476) | 811 | 247,241 | 282 | (79,308) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 27,515 | 27,515 | |||||||||
Other comprehensive income, net | 7,133 | 7,133 | |||||||||
Purchase of Company stock (in shares) | (12,791) | ||||||||||
Purchase of Company stock | 601 | $ 13 | 588 | ||||||||
Issuance of restricted stock (in shares) | 39,155 | ||||||||||
Issuance of restricted stock | 0 | $ 39 | (39) | ||||||||
Acquisition of State Capital Corp. (in shares) | 2,453,827 | ||||||||||
Acquisition State Capital Corp. | 71,161 | $ 2,454 | 68,707 | ||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock (in shares) | (272) | ||||||||||
Shares withheld to satisfy withholding obligation in the vesting of restricted stock | (10) | $ 0 | (10) | ||||||||
Stock based compensation | 1,052 | 1,052 | |||||||||
Net change fair value of ESOP shares | 10,786 | 10,786 | |||||||||
Common stock released by ESOP | 1,534 | 1,534 | |||||||||
Dividends declared | (9,693) | (9,693) | |||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 10,132,876 | ||||||||||
Shareholders' equity, ending balance at Sep. 30, 2020 | 281,080 | $ 10,133 | (2,942) | 69,933 | 265,063 | 7,415 | (68,522) | ||||
Shares outstanding, beginning balance (in shares) at Jun. 30, 2020 | 10,126,817 | ||||||||||
Shareholders' equity, beginning balance at Jun. 30, 2020 | 282,954 | $ 10,127 | (3,375) | 70,173 | 255,990 | 7,584 | (57,545) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net income | 12,600 | 12,600 | |||||||||
Other comprehensive income, net | (169) | (169) | |||||||||
Purchase of Company stock (in shares) | (12,791) | ||||||||||
Purchase of Company stock | 601 | $ 13 | 588 | ||||||||
Issuance of restricted stock (in shares) | 18,850 | ||||||||||
Issuance of restricted stock | 0 | $ 19 | (19) | ||||||||
Stock based compensation | 367 | 367 | |||||||||
Net change fair value of ESOP shares | (10,977) | (10,977) | |||||||||
Common stock released by ESOP | 433 | 433 | |||||||||
Dividends declared | (3,527) | (3,527) | |||||||||
Shares outstanding, ending balance (in shares) at Sep. 30, 2020 | 10,132,876 | ||||||||||
Shareholders' equity, ending balance at Sep. 30, 2020 | $ 281,080 | $ 10,133 | $ (2,942) | $ 69,933 | $ 265,063 | $ 7,415 | $ (68,522) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared (in USD per share) | $ 0.35 | $ 0.32 | $ 1.05 | $ 0.96 |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income per condensed consolidated statements of income | $ 27,515 | $ 27,715 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Provision for loan losses | 7,706 | 1,110 |
Depreciation and amortization | 4,663 | 4,532 |
Net loss on sales of premises and equipment | 294 | 574 |
Net gain on sales of other real estate owned | (354) | (17) |
Write-downs of other real estate | 106 | 45 |
Deferred income tax expense | 935 | 4,905 |
Federal Home Loan Bank stock dividends | (41) | (68) |
Common stock released by ESOP | 1,534 | 739 |
Stock based compensation expense | 1,052 | 519 |
Origination of loans held for sale | (274,668) | (154,187) |
Proceeds from loans held for sale | 264,489 | 146,290 |
Earnings on bank-owned life insurance | (1,526) | (1,226) |
Bargain purchase gain on merger | (1,078) | 0 |
Net change in: | ||
Accrued interest receivable and other assets | (2,987) | (722) |
Accrued interest payable and other liabilities | (3,928) | 619 |
Net cash from operating activities | 23,712 | 30,828 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (77,290) | (124,871) |
Maturities and calls of securities available for sale | 112,835 | 69,587 |
Purchases of securities held to maturity | (777) | (18,861) |
Maturities, prepayments and calls of securities held to maturity | 12,071 | 112,184 |
Net increase in loans | (465,459) | (38,802) |
Purchases of premises and equipment | (6,992) | (4,661) |
Proceeds from sales of premises and equipment | 40 | 497 |
Proceeds from sales of other real estate owned | 4,955 | 9,668 |
Investment in unconsolidated entities, net | (289) | (491) |
Proceeds from redemption of Federal Home Loan Bank stock | 2,562 | 0 |
Cash received in excess of cash paid for acquisition | 75,303 | 0 |
Net cash from (used in) investing activities | (343,041) | 4,250 |
Net increase (decrease) in: | ||
Noninterest-bearing deposits | 390,152 | 29,270 |
Money market, negotiable order of withdrawal, and savings deposits | 21,169 | 123,617 |
Certificates of deposit | (36,389) | (10,822) |
Payments on long-term FHLB advances | (14,884) | (212) |
Proceeds from issuance of subordinated debentures | 60,000 | 0 |
Payment of subordinated debt issuance costs | (1,439) | 0 |
Payments on other borrowings | (2,625) | (2,625) |
Common stock acquired by ESOP | 0 | 1,483 |
Cash dividends paid on common stock | (9,693) | (7,230) |
Purchase of Company stock | (601) | 0 |
Shares withheld to pay taxes on restricted stock vesting | (10) | (46) |
Net cash from financing activities | 405,680 | 130,469 |
Net change in cash and cash equivalents | 86,351 | 165,547 |
Cash and cash equivalents at beginning of period | 312,972 | 145,197 |
Cash and cash equivalents at end of period | 399,323 | 310,744 |
Supplemental cash flow information: | ||
Interest paid | 10,889 | 15,885 |
Federal and state income tax payments | 7,175 | 950 |
Acquisition of real estate in non-cash foreclosures | 5,836 | 1,983 |
Fair value of assets acquired net of liabilities assumed | $ 72,251 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation BancPlus Corporation (the “Company”) is a bank holding company headquartered in Ridgeland, Mississippi operating in one reportable segment. BankPlus (the “Bank”), the principal operating subsidiary and sole banking subsidiary of the Company, is a commercial bank primarily engaged in the business of commercial and consumer banking. In addition to general and consumer banking, other products and services offered though the Bank’s subsidiaries include certain insurance and annuity services, asset and investment management and financial planning services. The unaudited interim condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2019; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Particularly given the effects of the COVID-19 pandemic, the allowance for loan losses, provision for loan losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for loan losses, provision for loan losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. Recently Adopted Accounting Standards Accounting Standards Update 2019-04 (“ASU 2019-04”), “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” In April 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-04 to clarify that the reclassification of a debt security from held-to-maturity (“HTM”) to available-for-sale (“AFS”) under the transition guidance in Accounting Standards Update 2017-12, “Targeted Improvements to Accounting for Hedging Activities,” would not (1) call into question the classification of other HTM securities, (2) be required to actually designate any reclassified security in a last-of-layer hedge, or (3) be restricted from selling any reclassified security. As part of the transition of ASU 2019-04, entities may reclassify securities that would qualify for designation as the hedged item in a last-of-layer hedging relationship from HTM to AFS; however, entities that already made such a reclassification upon their adoption of ASU 2017-12 are precluded from reclassifying additional securities. The Company did not reclassify any securities from HTM to AFS upon adoption of ASU 2017-12. ASU 2019-04 became effective as of the beginning of the first annual period after its issuance, which for the Company was January 1, 2020. See Note 4 Investment Securities to our Condensed Consolidated Financial Statements for more information regarding the impact of the transfer of certain HTM debt securities to AFS. Recently Issued But Not Yet Effective Accounting Standards Accounting Standards Update 2016-13 (“ASU 2016-13”), “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 was originally effective for the Company for annual and interim periods beginning on January 1, 2021. Subsequently, FASB approved a deferral of the effective date. ASU 2016-13 will now be effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the new standard, but has not yet determined the magnitude of the one-time adjustment or the overall impact on the Company’s consolidated financial statements. Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04 which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications, hedge accounting, and other transactions affected that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common shareholders by the weighted number of common shares outstanding during the period and the number of common shares that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. Three Months Ended September 30, Nine Months Ended September 30, (In thousands except per share data) 2020 2019 2020 2019 Net income $ 12,600 $ 8,777 $ 27,515 $ 27,715 Weighted average common shares outstanding 10,070 7,530 9,231 7,532 Diluted effect of unallocated stock 64 92 72 80 Diluted common shares 10,134 7,622 9,303 7,612 Basic earnings per common share $ 1.25 $ 1.17 $ 2.98 $ 3.68 Diluted earnings per common share $ 1.24 $ 1.15 $ 2.96 $ 3.64 |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On April 1, 2020, the Company completed its previously announced merger with State Capital Corp. (“SCC”), the holding company of State Bank & Trust Company (“State Bank”). Pursuant to the terms of the Agreement and Plan of Share Exchange and Merger, dated September 18, 2019, by and among the Company, BankPlus, SCC, and State Bank (the “Merger Agreement”), following BancPlus’ acquisition of SCC by a statutory share exchange, SCC was merged with and into BancPlus, with BancPlus surviving the merger (the “Merger”). Immediately thereafter, State Bank was merged with and into BankPlus, with BankPlus surviving the merger. As a result of the merger, the Company’s geographic footprint expanded in Mississippi, Louisiana and Alabama, providing access to new markets and deposits. Pursuant to the Merger Agreement, holders of SCC common stock received 0.6950 shares of BancPlus common stock, par value $1.00 per share, for each share of SCC common stock, par value $1.25 per share, held immediately prior to the effective time of the Merger, plus cash in lieu of fractional shares. BancPlus issued 2,453,827 shares of common stock to holders of SCC common stock, in addition to approximately $12,000 in lieu of fractional shares. In the first nine months of 2020, the Company incurred approximately $6.2 million of acquisition expenses in connection with the Merger. These expenses are recorded in other expenses and furniture, equipment and data processing expenses in the Company’s Condensed Consolidated Statement of Income for the nine months ended September 30, 2020. An estimate of fair value has been recorded based on initial valuations available as of September 30, 2020 and is considered preliminary and subject to refinement for up to one year from the date of the Merger. The excess fair value of net assets acquired over cost paid is recorded as a gain on bargain purchase in the third quarter of 2020. The gain on bargain purchase was primarily the result of changes in the value of BancPlus common stock due to the timing of the closing of the Merger relative to when the Merger Agreement was signed and declines in the overall market as a result of the COVID-19 pandemic over that period. The measurement period adjustment during the third quarter of 2020 was the result of a reduction in the value of liabilities assumed in the Merger during refinement of the preliminary valuations disclosed at the time of the Merger. The gain on bargain purchase is recorded in other income in the Company’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2020. The following table reflects the consideration paid and the preliminary fair value allocation of assets acquired and liabilities assumed as of the acquisition date: (In thousands) Purchase price allocation: Common stock issued $ 71,161 Cash paid for fractional shares 12 Total purchase price $ 71,173 Assets acquired: Cash and due from banks $ 75,315 Securities, FHLB stock and FNBB stock 97,910 Loans, net 880,390 Premises and equipment 29,968 Accrued interest receivable 3,664 Bank-owned life insurance 28,441 Core deposit intangible 6,045 Taxes receivable 7,787 Deferred tax asset, net 5,972 Other assets 3,330 Total assets acquired $ 1,138,822 Liabilities assumed: Deposits $ 1,024,381 Advances from FHLB and other borrowings 14,563 Subordinated debentures 11,121 Deferred compensation 10,310 Other liabilities 6,196 Total liabilities assumed $ 1,066,571 Net assets acquired 72,251 Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase $ (1,078) In connection with the Merger, the Company recorded a $6.0 million core deposit intangible, which will be amortized over 10 years. The Company also acquired loans with a fair value of $880.4 million, net of an $19.1 million fair value discount, which included a credit mark discount of $11.6 million. Revenues and earnings of the acquired company since the Merger date have not been disclosed as it is not practicable as SCC was merged into BancPlus and separate financial information for SCC is not available. The following table presents unaudited pro forma information as if the Merger with SCC had occurred on January 1, 2019. This pro forma information combines the historic condensed consolidated results of operations of BancPlus and SCC after giving effect to certain adjustments, including purchase accounting fair value adjustments and amortization of intangibles, as well as the related income tax effects of those adjustments. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Merger occurred on January 1, 2019. Three Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net interest income $ 43,828 $ 37,939 $ 123,958 $ 115,578 Other operating income 18,626 16,969 47,034 48,655 Net income available to common shareholders 13,993 13,215 27,539 41,738 Earnings per common share: Basic $ 1.39 $ 1.32 $ 2.74 $ 4.18 Diluted 1.38 1.31 2.72 4.15 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities The following is a summary of the amortized cost and fair value of securities available for sale. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value September 30, 2020: U.S. Government agency obligations $ 12,276 $ 382 $ — $ 12,658 Residential mortgage-backed securities 213,260 6,587 7 219,840 Commercial mortgage-backed securities 17,556 592 — 18,148 Asset-backed securities 14,225 467 55 14,637 Corporate investments 24,750 231 8 24,973 State and political subdivisions 45,745 1,767 82 47,430 Total available for sale $ 327,812 $ 10,026 $ 152 $ 337,686 December 31, 2019: U.S. Government agency obligations $ 17,999 $ 104 $ 1 $ 18,102 Residential mortgage-backed securities 175,696 693 510 175,879 Commercial mortgage-backed securities 3,002 8 — 3,010 Corporate investments 4,000 82 — 4,082 Total available for sale $ 200,697 $ 887 $ 511 $ 201,073 Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The following is a summary of the amortized cost and fair value of securities held to maturity. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value September 30, 2020: States and political subdivisions $ 97,491 $ 688 $ — $ 98,179 Total held to maturity $ 97,491 $ 688 $ — $ 98,179 December 31, 2019: U.S. Government agency obligations $ 5,000 $ 3 $ — $ 5,003 Residential mortgage-backed securities 1,071 41 — 1,112 States and political subdivisions 171,783 1,339 12 173,110 Total held to maturity $ 177,854 $ 1,383 $ 12 $ 179,225 All mortgage-backed securities in the above tables were issued or guaranteed by U.S. government agencies or sponsored agencies. In the first quarter of 2020, the Company elected to reclassify certain prepayable debt securities from held to maturity to available for sale. Prepayable debt securities with a carrying value of $66.5 million were transferred from held to maturity to available for sale. The reclassified securities primarily consisted of bonds issued by states and political subdivisions. Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position. Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) September 30, 2020: Available for sale: Residential mortgage-backed securities $ 5,130 $ 7 $ — $ — 5,130 $ 7 Commercial mortgage-backed securities 307 — — — 307 — Asset backed securities 2,533 55 — — 2,533 55 Corporate investments 6,992 8 — — 6,992 8 States and political subdivisions 2,888 82 — — 2,888 82 $ 17,850 $ 152 $ — $ — 17,850 $ 152 Held to maturity: States and political subdivisions $ 682 $ — $ — $ — $ 682 $ — December 31, 2019: Available for sale: U. S. Government agency obligations $ — $ — $ 4,999 $ 1 4,999 $ 1 Residential mortgage-backed securities 92,323 466 2,240 44 94,563 $ 510 $ 92,323 $ 466 $ 7,239 $ 45 99,562 $ 511 Held to maturity: States and political subdivisions $ 2,656 $ 8 $ 2,766 $ 4 $ 5,422 $ 12 The number of debt securities in an unrealized loss position decreased from 36 at December 31, 2019 to 11 at September 30, 2020. The unrealized losses shown above are due to increases in market rates over the yields available at the time of purchase of the underlying securities and not credit quality. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the investments before recovery of their amortized cost bases, which may be at maturity, the Company does not consider these investments to be other than temporarily impaired at September 30, 2020. The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations with, or without, call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value September 30, 2020: One year or less $ 3,490 $ 3,510 $ 11,134 $ 11,172 After one through five years 20,725 21,267 46,630 46,856 After five through ten years 62,458 64,289 36,183 36,607 After ten years 241,139 248,620 3,544 3,544 $ 327,812 $ 337,686 $ 97,491 $ 98,179 The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value September 30, 2020 $ 281,498 $ 290,763 $ 53,994 $ 54,667 December 31, 2019 $ 124,854 $ 125,103 $ 123,978 $ 125,241 |
Loans
Loans | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans | Loans The following is a summary of the Company’s loan portfolio by loan class. (In thousands) September 30, 2020 December 31, 2019 Secured by real estate: Residential properties $ 742,054 $ 555,413 Construction and land development 355,249 230,931 Farmland 228,410 162,991 Other commercial 1,204,857 664,145 Total real estate 2,530,570 1,613,480 Commercial and industrial loans 704,125 333,834 Agricultural production and other loans to farmers 110,978 70,145 Consumer and other loans 75,011 61,538 Total loans before allowance for loan losses $ 3,420,684 $ 2,078,997 Loans are stated at the amount of unpaid principal, before allowance for loan losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration - The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Louisiana, and Alabama. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans - The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans - Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farm loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans - The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Consumer and other - The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. Loans that are 30 days or more past due based on payments received and applied to the loan are considered delinquent. Accrual of interest is discontinued on a loan when management believes, after considering economic and business conditions and collection efforts, that a borrower's financial condition is such that collection of interest, but not necessarily principal, is doubtful. A loan is typically placed on non-accrual when the contractual payment of principal or interest becomes 90 days past due unless the loan is well-secured and in the process of collection. Loans may be placed on non-accrual status regardless of whether or not such loans are considered past due. Current year interest previously recorded, but deemed not collectible, is reversed and charged against current year income. Prior year interest previously recorded, but deemed not collectible, is charged against the allowance. Payments subsequently received on non-accrual loans are applied to principal. Interest income is recognized to the extent that cash payments are received in excess of principal due. A loan may return to accrual status when principal and interest payments are no longer past due and collectability is reasonably assured. The following table presents the recorded investment in nonaccrual loans, segregated by class. (In thousands) September 30, 2020 December 31, 2019 Secured by real estate: Residential properties $ 3,867 $ 2,419 Construction and land development 353 390 Farmland 88 — Other commercial 7,672 9,034 Total real estate 11,980 11,843 Commercial and industrial loans 30 67 Agricultural production and other loans to farmers 85 62 Consumer and other loans 180 187 Total nonaccrual loans $ 12,275 $ 12,159 An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows: (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing September 30, 2020 Secured by real estate: Residential properties $ 4,477 $ 2,024 $ 6,501 $ 735,553 $ 742,054 $ 1,292 Construction and land development 2,369 31 2,400 352,849 355,249 31 Farmland 1,007 458 1,465 226,945 228,410 458 Other commercial 3,972 1,196 5,168 1,199,689 1,204,857 976 Total real estate 11,825 3,709 15,534 2,515,036 2,530,570 2,757 Commercial and industrial loans 575 125 700 703,425 704,125 125 Agricultural production and other loans to farmers 80 34 114 110,864 110,978 34 Consumer loans 377 58 435 74,576 75,011 58 Total $ 12,857 $ 3,926 $ 16,783 $ 3,403,901 $ 3,420,684 $ 2,974 (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing December 31, 2019 Secured by real estate: Residential properties $ 6,262 $ 2,610 $ 8,872 $ 546,541 $ 555,413 $ 1,745 Construction and land development 688 — 688 230,243 230,931 — Farmland 253 149 402 162,589 162,991 149 Other commercial 1,227 724 1,951 662,194 664,145 418 Total real estate 8,430 3,483 11,913 1,601,567 1,613,480 2,312 Commercial and industrial loans 375 255 630 333,204 333,834 235 Agricultural production and other loans to farmers 400 20 420 69,725 70,145 20 Consumer loans 795 51 846 60,692 61,538 51 Total $ 10,000 $ 3,809 $ 13,809 $ 2,065,188 $ 2,078,997 $ 2,618 Impaired Loans - Impaired loans include nonperforming loans, loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties, and certain other loans identified by management. Certain other loans identified by management consist of performing loans with specific allocations of the allowance for loan loss. Impaired loans, or portions thereof, are charged-off when deemed uncollectible. The principal, recorded balance, and related allowance on impaired loans while classified as impaired at September 30, 2020 and December 31, 2019, were as follows: September 30, 2020 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 8,348 $ 5,751 $ — Construction and land development 4,021 1,960 — Farmland 10,774 10,514 — Other commercial 8,654 4,983 — Total real estate 31,797 23,208 — Commercial and industrial 439 31 — Agricultural production and other loans to farmers 156 97 — Consumer and other loans 221 180 — Total $ 32,613 $ 23,516 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,074 $ 1,074 $ 17 Construction and land development — — — Farmland — — — Other commercial 5,983 5,949 1,949 Total real estate 7,057 7,023 1,966 Commercial and industrial 2,471 2,471 471 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total $ 9,528 $ 9,494 $ 2,437 Total impaired loans $ 42,141 $ 33,010 $ 2,437 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge offs and payments applied. December 31, 2019 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,789 $ 3,789 $ — Construction and land development 3,919 2,009 — Farmland 10,993 10,937 — Other commercial 3,893 2,400 — Total real estate 23,594 19,135 — Commercial and industrial 384 67 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 187 — Total $ 24,264 $ 19,451 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,127 $ 1,127 $ 11 Construction and land development — — — Farmland — — — Other commercial 10,114 10,076 3,325 Total real estate 11,241 11,203 3,336 Commercial and industrial 427 427 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total 11,668 11,630 3,370 Total impaired loans $ 35,932 $ 31,081 $ 3,370 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied. The average recorded investment and interest recognized for impaired loans for the three and nine months ended September 30, 2020 and 2019 are presented below. Three Months Ended September 30, 2020 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 6,934 $ 38 $ 4,863 $ 178 Construction and land development 2,026 31 2,026 215 Farmland 10,515 127 — 15 Other commercial 12,389 61 11,678 205 Total real estate 31,864 257 18,567 613 Commercial and industrial 1,133 7 636 33 Agricultural production and other loans to farmers 97 — 62 7 Consumer loans 180 — — 4 Total $ 33,274 $ 264 $ 19,265 $ 657 Nine Months Ended September 30, 2020 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 5,773 $ 114 $ 5,045 $ 252 Construction and land development 2,013 96 2,177 305 Farmland 10,517 382 130 15 Other commercial 11,876 176 12,085 364 Total real estate 30,179 768 19,437 936 Commercial and industrial 689 20 667 48 Agricultural production and other loans to farmers 78 — 77 7 Consumer loans 182 — 62 4 Total $ 31,128 $ 788 $ 20,243 $ 995 The following table illustrates the impact of modifications classified as troubled debt restructurings (“TDRs”) for the periods presented. Number Balance Balance (Dollars in thousands) of Loans Prior to TDR at Period End September 30, 2020 Secured by real estate: Construction and land development 1 $ 95 $ — Total 1 $ 95 $ — December 31, 2019 Secured by real estate: Other commercial 2 $ 7,493 $ 7,493 Total 2 $ 7,493 $ 7,493 |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses As management evaluates the allowance for loan losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not deemed impaired or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows • Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. • Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. • Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short- term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. • Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. • Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered impaired, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for loan impairment testing or (ii) the loan was tested for impairment, but not deemed to be impaired. The following table summarizes the credit quality of the Company’s loan portfolio by loan class for the period indicated: Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total September 30, 2020 Secured by real estate: Residential properties $ 723,444 $ 1 $ 18,495 $ 114 $ 742,054 Construction and land development 351,516 — 3,733 — 355,249 Farmland 215,296 — 13,114 — 228,410 Other commercial 1,188,928 — 15,702 227 1,204,857 Total real estate 2,479,184 1 51,044 341 2,530,570 Commercial and industrial 686,245 51 17,754 75 704,125 Agricultural production and other loans to farmers 110,588 91 299 — 110,978 Consumer and other loans 74,721 — 290 — 75,011 Total $ 3,350,738 $ 143 $ 69,387 $ 416 $ 3,420,684 Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total December 31, 2019 Secured by real estate: Residential properties $ 540,933 $ 177 $ 14,303 $ — $ 555,413 Construction and land development 229,933 388 610 — 230,931 Farmland 151,354 — 11,637 — 162,991 Other commercial 645,891 — 18,254 — 664,145 Total real estate 1,568,111 565 44,804 — 1,613,480 Commercial and industrial 331,693 — 2,060 81 333,834 Agricultural production and other loans to farmers 69,854 — 291 — 70,145 Consumer and other loans 61,220 — 318 — 61,538 Total $ 2,030,878 $ 565 $ 47,473 $ 81 $ 2,078,997 Transactions in the allowance for loan losses and balances in the loan portfolio by loan segment are as follows: (In thousands) Commercial Commercial Residential Consumer Unallocated Total Three Months Ended September 30, 2020 Allowance for loan losses: Beginning balance $ 3,269 $ 12,580 $ 5,968 $ 1,340 $ 902 $ 24,059 Provision for loan losses 2,812 1,835 — 170 — (82) (64) 4,671 Recoveries on loans 34 103 140 827 — 1,104 Loans charged off (261) (1,960) (34) (731) — (2,986) Ending balance $ 5,854 $ 12,558 $ 6,244 $ 1,354 $ 838 $ 26,848 Nine Months Ended September 30, 2020 Allowance for loan losses: Beginning balance $ 2,773 $ 10,766 $ 5,568 $ 1,135 $ 1,258 $ 21,500 Provision for loan losses 3,427 3,824 707 168 (420) 7,706 Recoveries on loans 148 150 237 2,619 — 3,154 Loans charged off (494) (2,182) (268) (2,568) — (5,512) Ending balance $ 5,854 $ 12,558 $ 6,244 $ 1,354 $ 838 $ 26,848 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 471 $ 1,949 $ 17 $ — $ — $ 2,437 Collectively evaluated for impairment 5,383 10,609 6,227 1,354 838 24,411 Ending balance $ 5,854 $ 12,558 $ 6,244 $ 1,354 $ 838 $ 26,848 (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Unallocated Total Three Months Ended September 30, 2019 Allowance for loan losses: Beginning balance $ 3,458 $ 11,399 $ 5,640 $ 1,264 $ 2,083 $ 23,844 Provision for loan losses (291) 1,679 — (333) — (359) — (198) 498 Recoveries on loans 247 88 74 727 — 1,136 Loans charged off (132) (543) (638) (1,554) — (2,867) Balance, end of year $ 3,282 $ 12,623 $ 4,743 $ 78 $ 1,885 $ 22,611 Nine Months Ended September 30, 2019 Allowance for loan losses: Beginning balance $ 3,203 $ 12,920 $ 5,358 $ 1,134 $ 1,885 $ 24,500 Provision for loan losses (47) 174 362 621 — 1,110 Recoveries on loans 399 450 315 2,541 — 3,705 Loans charged off (273) (921) (1,292) (4,218) — (6,704) Ending balance $ 3,282 $ 12,623 $ 4,743 $ 78 $ 1,885 $ 22,611 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 30 $ 3,235 $ 15 $ — $ — $ 3,280 Collectively evaluated for impairment 3,252 9,388 4,728 78 1,885 19,331 Ending balance $ 3,282 $ 12,623 $ 4,743 $ 78 $ 1,885 $ 22,611 The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented: (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total September 30, 2020 Individually evaluated for impairment $ 2,502 $ 23,406 $ 6,825 $ 277 $ 33,010 Collectively evaluated for impairment 701,623 1,765,110 735,229 185,712 3,387,674 Ending balance $ 704,125 $ 1,788,516 $ 742,054 $ 185,989 $ 3,420,684 December 31, 2019 Individually evaluated for impairment $ 494 $ 25,422 $ 4,916 $ 249 $ 31,081 Collectively evaluated for impairment 333,340 1,032,645 550,497 131,434 2,047,916 Ending balance $ 333,834 $ 1,058,067 $ 555,413 $ 131,683 $ 2,078,997 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Regulatory MattersThe Company (on a consolidated basis) and Bank are subject to various regulatory capital requirements administered by state and federal banking agencies. Failure to meet minimum capital requirements triggers certain mandatory, and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The U.S. capital rules, which in substance adopted the international Basel III Capital Rules and accordingly are referred to as the Basel III rules, became effective for both the Company and Bank on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule and fully phased in by January 1, 2019. The Basel III rules require banking institutions to comply with three minimum risk-based capital ratios for common equity Tier 1 capital (“CET1”), Tier 1 capital, and total capital, as well as a minimum leverage ratio based on Tier 1 capital. Under the Basel III rules, the Company must hold a capital conservation buffer above the minimum risk-based capital ratios. The capital conservation buffer is designed to absorb losses during periods of economic stress and effectively increases the minimum required risk-weighted capital ratios. If, after deducting the buffer amount from its CET1 capital, Tier 1 capital, and total capital, any of these amounts results in a risk-based capital ratio below the minimum, a banking institution will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The capital conservation buffer, which was 2.50% at September 30, 2020 and December 31, 2019, is included in the minimum capital requirements relative to risk-weighted assets in the following table. Management believes as of September 30, 2020 and December 31, 2019, the Company and the Bank met Basel III minimum capital requirements to which they are subject. The Bank is also subject to capital requirements under the prompt corrective action regime. As of September 30, 2020, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. The prompt corrective action framework applies only to insured depository institutions, such as the Bank, and not to their holding companies, such as the Company. To be categorized as well capitalized, an insured depository institution must maintain certain ratios of CET1 capital, Tier 1 capital and total capital to risk-weighted assets, and of Tier 1 capital to adjusted quarterly average assets. There are no conditions or events since that notification that management believes have changed the Bank’s category. The amounts of the Bank’s capital relative to the standards for well capitalized status are set forth in the following table. The Company’s and the Bank’s CET1 capital includes total common equity reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. In connection with the adoption of Basel III, the Company elected to opt out of the requirement to include most components of accumulated other comprehensive income (loss) in CET1 capital. Tier 1 capital includes CET1 capital and additional Tier 1 capital. For the Company, additional Tier 1 capital at September 30, 2020 and December 31, 2019 included $50.7 million and $40.0 million of trust preferred securities issued by the trusts (net of investment in the trusts), respectively. The Bank did not have any additional Tier 1 capital beyond CET1 capital as of September 30, 2020 and December 31, 2019. Total capital includes Tier 1 capital and Tier 2 capital. Tier 2 capital for both the Company and the Bank includes a permissible portion of the allowance for loan losses. In addition, Tier 2 capital for the Company includes $58.6 million of subordinated debentures that were issued in the second quarter of 2020. Capital levels required to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under Basel III. The following table presents actual and required capital ratios for the Company and the Bank under the Basel III rules. Actual Minimum requirement Required to be (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio September 30, 2020: Company: CET1 Capital to Risk-Weighted Assets $ 333,535 10.37 % $ 225,081 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 384,256 11.95 % 273,313 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 469,712 14.61 % 337,622 10.50 % n/a n/a Tier 1 Capital to Average Assets 384,256 8.49 % 181,100 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 382,506 11.92 % $ 224,567 7.00 % $ 208,526 6.50 % Tier 1 Capital to Risk-Weighted Assets 382,506 11.92 % 272,688 8.50 % 256,648 8.00 % Total Capital to Risk-Weighted Assets 409,354 12.76 % 336,850 10.50 % 320,809 10.00 % Tier 1 Capital to Average Assets 382,506 8.47 % 180,711 4.00 % 225,889 5.00 % December 31, 2019: Company: CET1 Capital to Risk-Weighted Assets $ 248,247 10.86 % $ 160,002 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 288,247 12.61 % 194,288 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 309,747 13.55 % 240,003 10.50 % n/a n/a Tier 1 Capital to Average Assets 288,247 9.74 % 118,373 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 284,513 12.49 % $ 159,469 7.00 % $ 148,078 6.50 % Tier 1 Capital to Risk-Weighted Assets 284,513 12.49 % 193,641 8.50 % 182,250 8.00 % Total Capital to Risk-Weighted Assets 306,013 13.43 % 239,203 10.50 % 227,813 10.00 % Tier 1 Capital to Average Assets 284,513 9.63 % 118,134 4.00 % 147,668 5.00 % The ability of the Company to pay future dividends, pay its expenses and retire its debt is dependent upon future income tax benefits and dividends paid to the Company by the Bank. The Bank is subject to dividend restrictions as imposed by Federal and state regulatory authorities. These restrictions are not anticipated to have a material effect on the ability of the Bank to pay dividends to the Company. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Financial Instruments Measured at Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and 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. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; 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 significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities - The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of September 30, 2020 or December 31, 2019. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio. Impaired loans - Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment on a nonrecurring basis. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for impaired loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral dependent. Impaired loans are primarily collateral dependent loans and are assessed using a fair value approach. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Bank’s Appraisal Review Department to ensure they are acceptable. Impaired loans are classified within Level 3 of the fair value hierarchy. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Other Real Estate Owned - Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Appraisal Department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral impaired loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future. Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 September 30, 2020 U.S. Government agency obligations $ 12,658 $ — $ 12,658 $ — Residential mortgage-backed securities 219,840 — 219,840 — Commercial mortgage-backed securities 18,148 — 18,148 — Asset-backed securities 14,637 — 14,637 — Corporate investments 24,973 — 24,973 — State and political subdivisions 47,430 — 47,430 — Total securities available for sale $ 337,686 $ — $ 337,686 $ — December 31, 2019 U.S. Government agency obligations $ 18,102 $ — $ 18,102 $ — Residential mortgage-backed securities 175,879 — 175,879 — Commercial mortgage-backed securities 3,010 — 3,010 — Corporate investments 4,082 — 4,082 — Total securities available for sale $ 201,073 $ — $ 201,073 $ — Assets measured at fair value on a non-recurring basis are summarized below. Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 Impaired loans, net of allowance for loan losses: September 30, 2020 $ 30,573 $ — $ — $ 30,573 December 31, 2019 $ 27,711 $ — $ — $ 27,711 Other real estate owned: September 30, 2020 $ 6,763 $ — $ — $ 6,763 December 31, 2019 $ 4,851 $ — $ — $ 4,851 The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis. Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range September 30, 2020 Impaired loans, net of specific allowance $ 30,573 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 6,763 Third-party appraisals Selling costs 5% - 10% Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range December 31, 2019 Impaired loans, net of specific allowance $ 27,711 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 4,851 Third-party appraisals Selling costs 5% - 10% Fair Value of Financial Instruments Generally accepted accounting principles require disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, that are not measured and reported at fair value on a recurring or non-recurring basis. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, 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 assumptions significantly affect the estimates and, as such, the derived fair value may not be indicative of the value negotiated in an actual sale and may not be comparable to that reported by other financial institutions. In addition, the fair value estimates are based on existing financial instruments without attempting to estimate the value of anticipated business and the value of assets and liabilities that are not considered financial instruments. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates The following table presents estimated fair values of the Company’s financial instruments not previously disclosed: September 30, 2020 December 31, 2019 (In thousands) Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 399,323 $ 399,323 $ 312,972 $ 312,972 Level 2 inputs: Securities held to maturity 97,491 98,179 177,854 179,225 FHLB stock 2,553 2,553 2,585 2,585 Accrued interest receivable 20,604 20,604 11,509 11,509 Level 3 inputs: Loans held for sale 26,774 26,774 16,092 16,092 Loans, net 3,393,836 3,399,383 2,057,497 2,050,169 Financial liabilities: Level 2 inputs: Deposits 3,991,348 3,978,140 2,592,065 2,593,910 FHLB and other borrowings 34,705 35,961 37,652 37,298 Subordinated debentures 111,032 111,032 41,238 41,238 Accrued interest payable 4,367 4,367 1,083 1,083 |
Subordinated Debentures and Tru
Subordinated Debentures and Trust Preferred Securities | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Subordinated Debentures and Trust Preferred Securities | Subordinated Debentures and Trust Preferred Securities On June 4, 2020, the Company entered into a Subordinated Note Purchase Agreement (the “Purchase Agreement”) with certain qualified institutional buyers and institutional accredited investors pursuant to which the Company issued and sold $60.0 million in aggregate principal amount of its 6.000% Fixed-to-Floating Rate Subordinated Notes due June 15, 2030 (the “Notes”). The Company incurred issuance costs of $1.4 million in conjunction with the issuance of the Notes. These issuance costs are netted with the balance of the Notes on the Company’s condensed consolidated balance sheet and will be amortized over the life of the Notes. The Notes will initially bear interest at a rate of 6.000% per annum from and including June 4, 2020, to but excluding June 15, 2025 or the early redemption date, with interest during this period payable semiannually in arrears. From and including June 15, 2025, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to Three-Month Term Secured Overnight Financing Rate plus 586 basis points, with interest during this period payable quarterly in arrears. The Company intends to use the proceeds of the private placement for general corporate purposes, including improving the Company’s liquidity and capital position. The Notes are not redeemable by the Company, in whole or in part, prior to the fifth anniversary of the original date of issue, except that the Notes may be redeemed at any time in whole but not in part in the event of a Tier 2 Capital Event, a Tax Event, or an Investment Company Event, each as defined and described in the Notes. On or after the fifth anniversary of the original date of issue, the Notes shall be redeemable on any interest payment date at the option of the Company, in whole or in part in integral multiples of $1,000, at an amount equal to 100% of the outstanding principal amount redeemed plus accrued but unpaid interest thereon. Any partial redemption will be made on a pro rata basis as to the holders of the Notes. Any redemption of the Notes is subject to any applicable regulatory requirements and approvals. The Company also owns the outstanding common stock of business trusts that have issued preferred capital securities to third parties. These preferred capital securities have qualified as Tier I capital for the Company, subject to regulatory rules and limits. These trusts used the proceeds from the issuance of the common stock and the preferred capital securities to purchase subordinated debentures issued by the Company. These subordinated debentures are these trusts’ only assets, and quarterly interest payments on these subordinated debentures are the sole source of cash for these trusts to pay quarterly distributions on the common stock and preferred capital securities. The Company has fully and unconditionally guaranteed the trusts’ obligations with respect to the preferred capital securities. The Company has the right to defer the payment of interest on the subordinated debentures at any time, or from time to time, for periods not exceeding five years. If interest payments on the subordinated debentures are deferred, the distributions on the trust preferred securities are also deferred. Interest on the subordinated debentures and distributions on the trust preferred securities are cumulative. The following is a summary of subordinated debentures payable to statutory trusts. (In thousands) Year of Interest September 30, December 31, First Bancshares of Baton Rouge Statutory Trust I 2034 3 month LIBOR, plus 2.50% $ 4,124 $ — State Capital Statutory Trust IV 2035 3 month LIBOR, plus 1.99% 5,155 — BancPlus Statutory Trust II 2036 3 month LIBOR, plus 1.50% 20,619 20,619 BancPlus Statutory Trust III 2037 3 month LIBOR, plus 1.35% 20,619 20,619 State Capital Master Trust 2037 3 month LIBOR, plus 1.46% 6,186 — $ 56,703 $ 41,238 The subordinated debentures payable to statutory trusts vary from the amount carried on the condensed consolidated balance sheet at September 30, 2020 due to the remaining purchase discount of $4.3 million, which was established upon the Merger with SCC and is being amortized over the remaining life of the debentures. Interest rates adjust quarterly for the subordinated debentures whose rates are indexed with LIBOR. We are currently monitoring the actions of LIBOR’s regulator and the implementation of alternative reference rates in advance of the expected discontinuation of LIBOR after 2021 to determine any potential impact on the subordinated debentures. |
Employee Benefits
Employee Benefits | 9 Months Ended |
Sep. 30, 2020 | |
Postemployment Benefits [Abstract] | |
Employee Benefits | Employee Benefits The Company has an Employee Stock Ownership Plan (“ESOP”) that covers all employees of the Bank who are at least 21 years of age and work in a position requiring at least one thousand hours of service annually. The plan also has 401(k) provisions that allow for employee tax deferred contributions. Participants may make contributions to the ESOP in accordance with applicable regulations and the ESOP’s provisions. The Company makes a 3% “safe harbor” matching contribution, plus an additional matching contribution equal to 50% of the next 2% of an employee’s salary deferral contributions in excess of 3%. Additional contributions are made to the ESOP at the discretion of the Company’s Board of Directors. The ESOP owned 1,434,625 shares of the Company's common stock at September 30, 2020 and December 31, 2019. The ESOP entered into loans, collateralized by ESOP shares, with the Company in connection with the repurchase of shares of Company stock that were sold by participants in accordance with diversification provisions of the ESOP. A total of 176,786 shares were repurchased through 2011, an additional 77,000 shares were repurchased under this program in 2012, and 27,594 shares were repurchased under this program in 2019. These unallocated shares are released to participants proportionately as the loan is repaid. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Dividends on unallocated shares that are used to repay the loan are treated as compensation expense. The following table presents information related to the Company’s ESOP-owned shares. (In thousands, except share data) September 30, 2020 December 31, 2019 Allocated shares 1,377,320 1,355,699 Unearned shares 57,305 78,926 Total ESOP shares 1,434,625 1,434,625 Fair value of unearned shares $ 2,851 $ 4,617 Distributions of the ESOP may be either in cash or Company common stock. The allocated shares are subject to a put option, whereby the Company will provide a market for a specified period of time for shares distributed to participants. The put price is the appraised value of the stock. The fair value of shares of common stock held by the ESOP are deducted from permanent shareholders’ equity in the consolidated balance sheets and reflected in a line item below liabilities and above shareholders’ equity. This presentation is necessary in order to recognize the put option within the ESOP-owned shares, consistent with Securities and Exchange Commission guidelines, that is present as long as the Company is not publicly traded. The Company uses a valuation by an external third party to determine the maximum possible cash obligation related to these securities. Increases or decreases in the value of the cash obligation are included in a separate line item in the consolidated statement of changes shareholders’ equity. The fair value of shares held by the ESOP at September 30, 2020 was $68.5 million, based on the Company’s previously disclosed appraised value of $49.75 per share of common stock. The fair value at December 31, 2019 was $79.3 million, based on the Company’s previously disclosed appraised value of $58.50 per share of common stock. As previously disclosed, these appraised values were determined solely for purposes of the ESOP’s administration and are therefore subject to certain limitations, qualifications and assumptions and may not reflect the fair value of the Company’s common stock and should not be relied on for any reason. In particular, the COVID-19 pandemic has had a significant impact on the trading markets for equity securities, including the value of equity securities of banking institutions. Neither the Company nor the ESOP has any obligation to seek an adjusted valuation, to use these appraised values for any other purpose or, if the Company or the ESOP obtains a new appraised value, to disclose such new appraised value. State Bank Employee Stock Ownership Plan In connection with the Company’s Merger with SCC, the State Bank & Trust Company Employee Stock Ownership Plan (“State Bank ESOP”) was amended on March 17, 2020, to be terminated effective March 31, 2020. As of March 31, 2020, all State Bank ESOP participants were fully vested in their respective account balances, no additional contributions were permitted by either the Company or the State Bank ESOP participants, and no additional participants were permitted to enter the State Bank ESOP. All shares of SCC common stock held in the State Bank ESOP were allocated to participants. The Company has no contribution obligations or compensation expense with respect to the State Bank ESOP. The Company received approval for termination from the Internal Revenue Service (“IRS”) and plans to distribute all assets held by the State Bank ESOP in accordance with its terms as soon as reasonably possible. In connection with the Merger, all shares of SCC common stock held in the State Bank ESOP were converted into shares of the Company’s common stock using the exchange ratio provided for in the Merger Agreement. Distributions from the State Bank ESOP may be either in cash or Company common stock. The shares of Company common stock distributed by the State Bank ESOP are subject to a put option so long as the Company is not publicly traded and the valuation obtained for purposes of the ESOP is used to determine the put option price under the State Bank ESOP. As of September 30, 2020, the State Bank ESOP held 213,134 shares of Company common stock. State Bank Defined Contribution Plan On March 31, 2020, the State Bank & Trust Company 401(k) Plan (“State Bank 401(k)”) was amended to be terminated effective as of the same date in connection with the Merger. As of March 31, 2020, all State Bank 401(k) participants were fully vested in their respective account balances, no additional contributions were permitted by either the Company or the State Bank 401(k) participants, and no additional participants were permitted to enter into the State Bank 401(k). The Company has no contribution obligations or compensation expense with respect to the State Bank 401(k). The Company has filed a determination letter application with the IRS to seek approval of the termination. Upon receipt of a favorable determination letter from the IRS, the Company will distribute all assets held by the State Bank 401(k) in accordance with its terms. State Bank Defined Benefit Pension Plan As a result of the Merger, the Company assumed the Mississippi Southern Bank Pension Plan (“State Bank Pension Plan”), a defined benefit pension plan which was closed to new participants and benefits were frozen effective as of December 31, 2002. While no additional benefits accrue, the Company’s cumulative obligation is subject to adjustment due to changes in actuarial assumptions such as expected mortality and changes in interest rates. Net periodic pension costs for the quarterly period ended September 30, 2020 were not material to the Company’s condensed consolidated statements of income. The Company plans to file a determination letter with the IRS to seek approval of termination. Upon receipt of a favorable determination letter from the IRS, the Company will distribute all assets held by the State Bank Pension Plan in accordance with its terms. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | EquityIn March 2019, the Company’s Board of Directors amended its Articles of Incorporation to reclassify the existing Class A Voting Common Stock and Class B Nonvoting Common Stock into a single class of $1.00 Par Value per Share Common Stock. This reclassification had no effect on share count or total shareholders’ equity. Additionally, in March 2019, the Company’s Board of Directors authorized 10,000,000 shares of preferred stock with no par value, which may be issued from time to time and in one or more classes or series upon authorization of the Board. At September 30, 2020 and December 31, 2019, there were zero shares of preferred stock issued and outstanding. |
Stock Based Compensation
Stock Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Under the Company’s long-term incentive program, executive officers are eligible to receive equity-based awards under the 2019 Long-Term Incentive Plan (“LTIP”). During the nine months ended September 30, 2020, restricted stock awards (“RSAs”) constituting 39,155 shares of common stock were granted under the LTIP. RSAs granted under the LTIP generally vest over one Stock based compensation that has been charged against income was $1.1 million for the nine months ended September 30, 2020 and $519,000 for same period of 2019. There were no forfeitures during this period. As of September 30, 2020, there was $3.8 million of total unrecognized compensation cost related to unvested RSAs. The cost is expected to be recognized over a remaining weighted average period of 3.2 years. A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows: Nine Months Ended September 30, 2020 September 30, 2019 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of period 69,097 $ 53.67 12,693 $ 53.00 Granted 39,155 45.36 32,244 50.77 Vested (17,143) 51.03 (5,480) 53.00 Forfeited — — — — End of period 91,109 $ 50.60 39,457 $ 51.18 |
COVID-19
COVID-19 | 9 Months Ended |
Sep. 30, 2020 | |
Unusual or Infrequent Items, or Both [Abstract] | |
COVID-19 | COVID-19 In response to the economic impact of the COVID-19 pandemic, on March 27, 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. It contains substantial lending, tax and spending provisions, including the Paycheck Protection Program (“PPP”), a $349 billion program designed to aid small and medium-sized businesses through federally guaranteed loans distributed by banks. On April 24, 2020, Congress enacted the Paycheck Protection Program and Healthcare Enhancement Act (the “Enhancement Act”) to, among other things, increase the available funding under the PPP by $310 billion to a total of $659 billion. The deadline for loan applications was August 8, 2020. The PPP loans are intended to guarantee eight weeks of payroll and other costs to help those businesses remain viable and allow their workers to pay their bills. The Small Business Administration (“SBA”) manages and backs the PPP. If a loan is fully forgiven, SBA will repay the lending bank in full. If a loan is partially forgiven or not forgiven at all, a bank must look to the borrower for repayment of unforgiven principal and interest. If the borrower defaults, the loan is guaranteed by SBA. In order to obtain loan forgiveness, a PPP borrower must submit a forgiveness application to the Company, which the Company must review and forward to the SBA. The SBA began approving forgiveness applications on August 10, 2020. The Company began submitting forgiveness applications during the third quarter of 2020 and received its first approval subsequent to September 30, 2020. As of September 30, 2020, the Company held 4,243 loans for customers under the PPP, totaling approximately $298.0 million. The loans have maturities ranging from April 2022 to August 2025. The Company expects to recognize total fee income of approximately $11.7 million over the lives of the loans. The CARES Act also provides certain measures to support individuals and businesses in maintaining solvency through monetary relief, including in the form of financing, loan forgiveness and automatic forbearance for federally backed mortgage loans. The federal banking agencies also have encouraged banks to work with their borrowers to modify loans as may be appropriate. As of September 30, 2020, the Company had granted temporary modifications on 2,612 loans totaling approximately $897 million, or 26% of total loans, primarily secured by 1-4 family residences and multi-tenant retail commercial real estate. As of September 30, 2020, 66 loans totaling $100.7 million, or 3% of the Company’s loan portfolio, were still in deferment. Economic uncertainties have arisen which may negatively affect the financial position, results of operations and cash flows of the Company. The duration of these uncertainties and ultimate financial effects cannot be reasonably estimated at this time. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The unaudited interim condensed consolidated financial statements include the accounts of the Company and all other entities in which the Company has a controlling financial interest, and reflect all adjustments (consisting of normal recurring adjustments) that are necessary in the opinion of the Company’s management to fairly present the financial position, results of operations and cash flows of the Company. They have been derived from the audited consolidated financial statements for the fiscal year ended December 31, 2019; however, certain notes and information have been omitted from the interim periods. Therefore, these unaudited financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2019. All significant intercompany balances and transactions have been eliminated in consolidation. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. The accounting and financial reporting policies followed by the Company conform, in all material respects, to the accounting principles generally accepted in the United States (“GAAP”) and to general practices within the financial services industry. The results of operations for the interim periods are not necessarily indicative of the results to be expected for future interim periods or for the entire year. |
Basis of accounting | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Particularly given the effects of the COVID-19 pandemic, the allowance for loan losses, provision for loan losses, the fair value of financial instruments and the status of contingencies are particularly subject to change. Material estimates that are subject to significant change in the near term are the allowance for loan losses, provision for loan losses, valuation of other real estate owned and fair values of financial instruments. Actual results could differ from these estimates. |
Recently Adopted Accounting Standards and Recently Issued But Not Yet Effective Accounting Standards | Recently Adopted Accounting Standards Accounting Standards Update 2019-04 (“ASU 2019-04”), “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments.” In April 2019, the Financial Accounting Standards Board (“FASB”) issued ASU 2019-04 to clarify that the reclassification of a debt security from held-to-maturity (“HTM”) to available-for-sale (“AFS”) under the transition guidance in Accounting Standards Update 2017-12, “Targeted Improvements to Accounting for Hedging Activities,” would not (1) call into question the classification of other HTM securities, (2) be required to actually designate any reclassified security in a last-of-layer hedge, or (3) be restricted from selling any reclassified security. As part of the transition of ASU 2019-04, entities may reclassify securities that would qualify for designation as the hedged item in a last-of-layer hedging relationship from HTM to AFS; however, entities that already made such a reclassification upon their adoption of ASU 2017-12 are precluded from reclassifying additional securities. The Company did not reclassify any securities from HTM to AFS upon adoption of ASU 2017-12. ASU 2019-04 became effective as of the beginning of the first annual period after its issuance, which for the Company was January 1, 2020. See Note 4 Investment Securities to our Condensed Consolidated Financial Statements for more information regarding the impact of the transfer of certain HTM debt securities to AFS. Recently Issued But Not Yet Effective Accounting Standards Accounting Standards Update 2016-13 (“ASU 2016-13”), “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments .” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses over the life of the loan. ASU 2016-13 was originally effective for the Company for annual and interim periods beginning on January 1, 2021. Subsequently, FASB approved a deferral of the effective date. ASU 2016-13 will now be effective for the Company for annual and interim periods beginning on January 1, 2023. The Company has formed a cross functional team that is assessing data and system needs and evaluating the impact of adopting the new guidance. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the Company adopts the new standard, but has not yet determined the magnitude of the one-time adjustment or the overall impact on the Company’s consolidated financial statements. Accounting Standards Update 2020-04 (“ASU 2020-04”), “Reference Rate Reform - Topic 848.” In March 2020, the FASB issued ASU 2020-04 which provides temporary optional expedients and exceptions to the GAAP guidance on contract modifications, hedge accounting, and other transactions affected that reference the London Inter-Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. ASU 2020-04 is effective upon issuance and can be applied through December 31, 2022. The company is still evaluating the impact of ASU 2020-04, but does not expect it to have a material impact on the Company’s consolidated financial statements. |
Allowance for Loan Losses | Loans are stated at the amount of unpaid principal, before allowance for loan losses. Interest on loans is calculated using the simple interest method on daily balances of the principal amount outstanding. Loan Origination/Risk Management/Credit Concentration - The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. The Company’s Board of Directors reviews and approves these policies and procedures on a regular basis. Although the Company has a diversified loan portfolio, the Company has concentrations of credit risks related to the real estate market, including residential, commercial, and construction and land development lending. Most of the Company’s lending activity occurs within Mississippi, Louisiana, and Alabama. The risk characteristics of the Company’s material portfolio segments are as follows: Residential Real Estate Loans - The residential real estate loan portfolio consists of residential loans for single and multifamily properties. Residential loans are generally secured by owner occupied 1-4 family residences. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers and can be impacted by economic conditions within their market area. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Commercial Real Estate Loans - Commercial real estate loans include construction and land development loans, loans secured by farmland and other commercial real estate loans. Construction and land development loans are usually based upon estimates of costs and estimated value of the completed project and include independent appraisal reviews and a financial analysis of the developers and property owners. Sources of repayment of these loans may include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are considered to be higher risk than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, general economic conditions and the availability of long-term financing. Farm loans are generally made for the purpose of acquiring land devoted to crop production or livestock, the propagation of timber or the operation of a similar type business on the secured property. Sources of repayment for these loans generally include income generated from operations of a business on the property, rental income, or sales of timber. Repayment may be impacted by changes in economic conditions which affect underlying collateral values. Commercial real estate loans typically involve larger principal amounts and repayment of these loans is generally dependent on the successful operations of the property securing the loan or the business conducted on the property securing the loan. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Management monitors and evaluates commercial real estate loans based on collateral and risk grade criteria. Commercial and Industrial Loans - The commercial and industrial loan portfolio consists of loans to commercial customers for use in normal business operations to finance working capital needs, equipment purchase or other expansion projects. Commercial loan underwriting standards are designed to promote relationship banking rather than transactional banking and are underwritten based on the borrower’s expected ability to profitably operate its business. The cash flows of borrowers, however, may not be as expected and collateral securing these loans may fluctuate in value. Most commercial loans are secured by assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee. In the case of loans secured by accounts receivable, the availability of funds for repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Consumer and other - The consumer and other loan portfolio consists of various term and line of credit loans such as automobile loans and loans for other personal purposes. Repayment for these types of loans will come from a borrower’s income sources that are typically independent of the loan purpose. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the Company’s market area) and the creditworthiness of a borrower. As management evaluates the allowance for loan losses, it is categorized as follows: (1) specific allocations; (2) allocations for classified assets with no specific allowance, based on historical loan experience for similar loans with similar characteristics, adjusted as necessary, to reflect the impact of current conditions; and (3) general allocations for each major loan category for loans not deemed impaired or classified, segmented by loan class based on historical loss experience and other risk factors. In assessing general economic conditions, management monitors several factors, including regional and national economic conditions, real estate market conditions and recently enacted regulations with potential economic effects. Credit Quality Indicators – The Company utilizes a risk grading matrix to assign a grade to each of its commercial and real estate loans. Loans are rated on a scale of 1 to 10. A description of the general characteristics of the 10 risk ratings is as follows • Risk Grades 1, 2, 3, 4 and 5 – These grades include loans to borrowers of solid credit quality with no higher than normal risk of loss. Borrowers in these categories have satisfactory financial strength and adequate cash flow coverage to service debt requirements. Collateral type and quality, as well as protection, are adequate. The borrower’s management is strong and capable, financial information is timely and accurate, and guarantor support is strong. • Risk Grade 6 – Pass and Watch – Loans in this category are currently protected, but risks are emerging that warrant more than normal attention and have above average risk of loss. These factors require a higher level of monitoring and may include emerging balance sheet weaknesses, strained liquidity, increased leverage ratio, and weakening management. Collateral support is less marketable or limited use and, although the protection is sufficient, the loan-to-value ratio may not meet policy guidelines. Guarantors may have a limited ability and willingness to provide intermediate support. Also, considerations surrounding industry deterioration, increased competition and minor policy exceptions concerning structure or amortization may affect the rating of these loans. • Risk Grade 7 – Special Mention – The Company’s special mention rating is intended to closely align with the regulatory definition. A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of repayment prospects. These weaknesses may include deteriorating balance sheets, strained liquidity and elevated leverage ratios. Cash flow and profitability are marginally sufficient to service debt and collateral is exhibiting signs of decline in value; however, protection is currently sufficient. Limited management experience or weaknesses have emerged requiring more than normal supervision and uncertainties regarding the quality of the financials are not explained. Guarantor has very limited ability and willingness to provide short- term support. Moderate policy exceptions concerning structure or amortization may be considered in order to provide relief to the borrower. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. • Risk Grade 8 – Substandard – A loan in this category is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged. Assets so classified have a well-defined weakness that jeopardizes the liquidation of the debt. Factors affecting these loans may include balance sheet deterioration that has resulted in illiquid, highly leveraged or deficit net worth, cash flow that is not able to service debts as structured, collateral protection that may be inadequate, guarantor support that may be virtually non-existent, and management that is poor. Loans may require a major policy exception concerning structure or amortization. They are characterized by the distinct possibility that the Company will incur some loss if the deficiencies are not corrected. • Risk Grade 9 – Doubtful – Loans classified doubtful have all the weaknesses inherent in those classified substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. • Risk Grade 10 – Loss – Loans are considered uncollectible and of such little value that continuing to carry them as an active asset is not warranted. It does not mean that there will be no recovery, but, rather, it is not practical or desirable to defer writing off these assets even though a partial recovery may be possible in the future. Classified loans for the Company include loans in Risk Grades 8, 9 and 10. Loans may be classified but not considered impaired, due to one of the following reasons: (i) the loan falls below the established minimum dollar thresholds for loan impairment testing or (ii) the loan was tested for impairment, but not deemed to be impaired. |
Financial Instruments Measured at Fair Value | Financial Instruments Measured at Fair Value Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups its assets and 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. Valuations within these levels are based upon: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities that the entity has the ability to access as of the measurement date Level 2 Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; 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 significant to the fair value of the assets or liabilities that reflect a company’s own assumptions about the assumptions that market participants would use in pricing assets or liabilities Management monitors the availability of observable market data to assess the appropriate classification of assets and liabilities within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. There were no transfers of financial instruments between fair value levels for any period presented. The Company used the following methods and significant assumptions to estimate fair value. Securities - The Company utilizes an independent pricing service to advise it on the value of the securities portfolio. Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics or discounted cash flows. For these investments, the inputs used by the pricing service to determine fair value may include one, or a combination of several, observable inputs such as benchmark yields, reported trades, benchmark securities, bids, offers and reference data market research publications and are classified within Level 2 of the valuation hierarchy. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. For Level 3 securities, in addition to the inputs noted above, inputs used by the pricing service to determine fair value may also include estimated duration, municipal bond interest rate curve, and tax effected yield. There were no Level 3 securities as of September 30, 2020 or December 31, 2019. The Company’s treasury department and Asset Liability Management Committee review the aggregate fair values of the securities portfolio. Impaired loans - Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment on a nonrecurring basis. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. Specific allowances for impaired loans are based on comparisons of the recorded carrying values of the loans to the present value of the estimated cash flows of these loans at each loan’s effective interest rate or the fair value of the collateral net of selling costs if the loan is collateral dependent. Impaired loans are primarily collateral dependent loans and are assessed using a fair value approach. Fair value estimates for collateral dependent loans are derived from appraised values based on the current market value or as-is value of the property being appraised. Appraisals are based on certain assumptions, which may include construction or development status and the highest and best use of the property. The appraisals are reviewed by the Bank’s Appraisal Review Department to ensure they are acceptable. Impaired loans are classified within Level 3 of the fair value hierarchy. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted in accordance with the allowance policy. Other Real Estate Owned - Other real estate owned is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated cost to sell. Fair value estimates begin with obtaining a current independent appraisal of the collateral value. Subsequent to foreclosure, valuations are performed periodically by the Company’s appraisal department and any subsequent reduction in value is recognized by a charge to income. Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified appraisers whose qualifications and licenses have been reviewed by the Company. These appraisals are reviewed by a member of the Appraisal Department to ensure they are acceptable. Appraised values are adjusted down for costs associated with asset disposal. The significant unobservable inputs (Level 3) used in the fair value measurement of collateral for collateral impaired loans and other real estate owned are primarily based on appraisals, observable market conditions, and other factors which may affect collectability. The appraisals use marketability and comparability discounts, which generally range from 5% to 15%. Assessment of the significance of a specific input to the fair value measurement in its entirety requires judgment and considers factors specific to the asset. It is reasonably possible that a change in the estimated fair value for assets measured using Level 3 inputs could occur in the future. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Three Months Ended September 30, Nine Months Ended September 30, (In thousands except per share data) 2020 2019 2020 2019 Net income $ 12,600 $ 8,777 $ 27,515 $ 27,715 Weighted average common shares outstanding 10,070 7,530 9,231 7,532 Diluted effect of unallocated stock 64 92 72 80 Diluted common shares 10,134 7,622 9,303 7,612 Basic earnings per common share $ 1.25 $ 1.17 $ 2.98 $ 3.68 Diluted earnings per common share $ 1.24 $ 1.15 $ 2.96 $ 3.64 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Consideration paid and preliminary fair value allocation | The following table reflects the consideration paid and the preliminary fair value allocation of assets acquired and liabilities assumed as of the acquisition date: (In thousands) Purchase price allocation: Common stock issued $ 71,161 Cash paid for fractional shares 12 Total purchase price $ 71,173 Assets acquired: Cash and due from banks $ 75,315 Securities, FHLB stock and FNBB stock 97,910 Loans, net 880,390 Premises and equipment 29,968 Accrued interest receivable 3,664 Bank-owned life insurance 28,441 Core deposit intangible 6,045 Taxes receivable 7,787 Deferred tax asset, net 5,972 Other assets 3,330 Total assets acquired $ 1,138,822 Liabilities assumed: Deposits $ 1,024,381 Advances from FHLB and other borrowings 14,563 Subordinated debentures 11,121 Deferred compensation 10,310 Other liabilities 6,196 Total liabilities assumed $ 1,066,571 Net assets acquired 72,251 Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase $ (1,078) |
Unaudited pro forma information | The following table presents unaudited pro forma information as if the Merger with SCC had occurred on January 1, 2019. This pro forma information combines the historic condensed consolidated results of operations of BancPlus and SCC after giving effect to certain adjustments, including purchase accounting fair value adjustments and amortization of intangibles, as well as the related income tax effects of those adjustments. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Merger occurred on January 1, 2019. Three Months Ended Nine Months Ended (In thousands, except per share data) September 30, 2020 September 30, 2019 September 30, 2020 September 30, 2019 Net interest income $ 43,828 $ 37,939 $ 123,958 $ 115,578 Other operating income 18,626 16,969 47,034 48,655 Net income available to common shareholders 13,993 13,215 27,539 41,738 Earnings per common share: Basic $ 1.39 $ 1.32 $ 2.74 $ 4.18 Diluted 1.38 1.31 2.72 4.15 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of the amortized cost and fair value of securities available for sale | The following is a summary of the amortized cost and fair value of securities available for sale. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value September 30, 2020: U.S. Government agency obligations $ 12,276 $ 382 $ — $ 12,658 Residential mortgage-backed securities 213,260 6,587 7 219,840 Commercial mortgage-backed securities 17,556 592 — 18,148 Asset-backed securities 14,225 467 55 14,637 Corporate investments 24,750 231 8 24,973 State and political subdivisions 45,745 1,767 82 47,430 Total available for sale $ 327,812 $ 10,026 $ 152 $ 337,686 December 31, 2019: U.S. Government agency obligations $ 17,999 $ 104 $ 1 $ 18,102 Residential mortgage-backed securities 175,696 693 510 175,879 Commercial mortgage-backed securities 3,002 8 — 3,010 Corporate investments 4,000 82 — 4,082 Total available for sale $ 200,697 $ 887 $ 511 $ 201,073 |
Summary of the amortized cost and fair value of securities held to maturity | The following is a summary of the amortized cost and fair value of securities held to maturity. Amortized Gross Unrealized Fair (In thousands) Cost Gains Losses Value September 30, 2020: States and political subdivisions $ 97,491 $ 688 $ — $ 98,179 Total held to maturity $ 97,491 $ 688 $ — $ 98,179 December 31, 2019: U.S. Government agency obligations $ 5,000 $ 3 $ — $ 5,003 Residential mortgage-backed securities 1,071 41 — 1,112 States and political subdivisions 171,783 1,339 12 173,110 Total held to maturity $ 177,854 $ 1,383 $ 12 $ 179,225 |
Summary of investment securities that were in an unrealized loss position | Provided below is a summary of investment securities that were in an unrealized loss position and the length of time that individual securities have been in a continuous loss position. Less Than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (In thousands) September 30, 2020: Available for sale: Residential mortgage-backed securities $ 5,130 $ 7 $ — $ — 5,130 $ 7 Commercial mortgage-backed securities 307 — — — 307 — Asset backed securities 2,533 55 — — 2,533 55 Corporate investments 6,992 8 — — 6,992 8 States and political subdivisions 2,888 82 — — 2,888 82 $ 17,850 $ 152 $ — $ — 17,850 $ 152 Held to maturity: States and political subdivisions $ 682 $ — $ — $ — $ 682 $ — December 31, 2019: Available for sale: U. S. Government agency obligations $ — $ — $ 4,999 $ 1 4,999 $ 1 Residential mortgage-backed securities 92,323 466 2,240 44 94,563 $ 510 $ 92,323 $ 466 $ 7,239 $ 45 99,562 $ 511 Held to maturity: States and political subdivisions $ 2,656 $ 8 $ 2,766 $ 4 $ 5,422 $ 12 |
Schedule of investments classified by contractual maturity date | The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because borrowers have the right to call or prepay certain obligations with, or without, call or prepayment penalties. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value September 30, 2020: One year or less $ 3,490 $ 3,510 $ 11,134 $ 11,172 After one through five years 20,725 21,267 46,630 46,856 After five through ten years 62,458 64,289 36,183 36,607 After ten years 241,139 248,620 3,544 3,544 $ 327,812 $ 337,686 $ 97,491 $ 98,179 |
Summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes | The following is a summary of the amortized cost and fair value for investment securities which were pledged to secure public deposits and for other purposes required or permitted by law. Available for Sale Held to Maturity Amortized Fair Amortized Fair (In thousands) Cost Value Cost Value September 30, 2020 $ 281,498 $ 290,763 $ 53,994 $ 54,667 December 31, 2019 $ 124,854 $ 125,103 $ 123,978 $ 125,241 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of the Company’s loan portfolio by loan class | The following is a summary of the Company’s loan portfolio by loan class. (In thousands) September 30, 2020 December 31, 2019 Secured by real estate: Residential properties $ 742,054 $ 555,413 Construction and land development 355,249 230,931 Farmland 228,410 162,991 Other commercial 1,204,857 664,145 Total real estate 2,530,570 1,613,480 Commercial and industrial loans 704,125 333,834 Agricultural production and other loans to farmers 110,978 70,145 Consumer and other loans 75,011 61,538 Total loans before allowance for loan losses $ 3,420,684 $ 2,078,997 |
Summary of the recorded investment in non-accrual loans, segregated by class | The following table presents the recorded investment in nonaccrual loans, segregated by class. (In thousands) September 30, 2020 December 31, 2019 Secured by real estate: Residential properties $ 3,867 $ 2,419 Construction and land development 353 390 Farmland 88 — Other commercial 7,672 9,034 Total real estate 11,980 11,843 Commercial and industrial loans 30 67 Agricultural production and other loans to farmers 85 62 Consumer and other loans 180 187 Total nonaccrual loans $ 12,275 $ 12,159 |
Summary of age analysis of past due loans | An age analysis of past due loans (including both accruing and non-accruing loans) segregated by class of loans is as follows: (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing September 30, 2020 Secured by real estate: Residential properties $ 4,477 $ 2,024 $ 6,501 $ 735,553 $ 742,054 $ 1,292 Construction and land development 2,369 31 2,400 352,849 355,249 31 Farmland 1,007 458 1,465 226,945 228,410 458 Other commercial 3,972 1,196 5,168 1,199,689 1,204,857 976 Total real estate 11,825 3,709 15,534 2,515,036 2,530,570 2,757 Commercial and industrial loans 575 125 700 703,425 704,125 125 Agricultural production and other loans to farmers 80 34 114 110,864 110,978 34 Consumer loans 377 58 435 74,576 75,011 58 Total $ 12,857 $ 3,926 $ 16,783 $ 3,403,901 $ 3,420,684 $ 2,974 (In thousands) Past Due 30-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Past Due 90 Days or More and Accruing December 31, 2019 Secured by real estate: Residential properties $ 6,262 $ 2,610 $ 8,872 $ 546,541 $ 555,413 $ 1,745 Construction and land development 688 — 688 230,243 230,931 — Farmland 253 149 402 162,589 162,991 149 Other commercial 1,227 724 1,951 662,194 664,145 418 Total real estate 8,430 3,483 11,913 1,601,567 1,613,480 2,312 Commercial and industrial loans 375 255 630 333,204 333,834 235 Agricultural production and other loans to farmers 400 20 420 69,725 70,145 20 Consumer loans 795 51 846 60,692 61,538 51 Total $ 10,000 $ 3,809 $ 13,809 $ 2,065,188 $ 2,078,997 $ 2,618 |
Summary of impaired loans | The principal, recorded balance, and related allowance on impaired loans while classified as impaired at September 30, 2020 and December 31, 2019, were as follows: September 30, 2020 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 8,348 $ 5,751 $ — Construction and land development 4,021 1,960 — Farmland 10,774 10,514 — Other commercial 8,654 4,983 — Total real estate 31,797 23,208 — Commercial and industrial 439 31 — Agricultural production and other loans to farmers 156 97 — Consumer and other loans 221 180 — Total $ 32,613 $ 23,516 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,074 $ 1,074 $ 17 Construction and land development — — — Farmland — — — Other commercial 5,983 5,949 1,949 Total real estate 7,057 7,023 1,966 Commercial and industrial 2,471 2,471 471 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total $ 9,528 $ 9,494 $ 2,437 Total impaired loans $ 42,141 $ 33,010 $ 2,437 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge offs and payments applied. December 31, 2019 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,789 $ 3,789 $ — Construction and land development 3,919 2,009 — Farmland 10,993 10,937 — Other commercial 3,893 2,400 — Total real estate 23,594 19,135 — Commercial and industrial 384 67 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 187 — Total $ 24,264 $ 19,451 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,127 $ 1,127 $ 11 Construction and land development — — — Farmland — — — Other commercial 10,114 10,076 3,325 Total real estate 11,241 11,203 3,336 Commercial and industrial 427 427 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total 11,668 11,630 3,370 Total impaired loans $ 35,932 $ 31,081 $ 3,370 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied. The average recorded investment and interest recognized for impaired loans for the three and nine months ended September 30, 2020 and 2019 are presented below. Three Months Ended September 30, 2020 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 6,934 $ 38 $ 4,863 $ 178 Construction and land development 2,026 31 2,026 215 Farmland 10,515 127 — 15 Other commercial 12,389 61 11,678 205 Total real estate 31,864 257 18,567 613 Commercial and industrial 1,133 7 636 33 Agricultural production and other loans to farmers 97 — 62 7 Consumer loans 180 — — 4 Total $ 33,274 $ 264 $ 19,265 $ 657 Nine Months Ended September 30, 2020 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 5,773 $ 114 $ 5,045 $ 252 Construction and land development 2,013 96 2,177 305 Farmland 10,517 382 130 15 Other commercial 11,876 176 12,085 364 Total real estate 30,179 768 19,437 936 Commercial and industrial 689 20 667 48 Agricultural production and other loans to farmers 78 — 77 7 Consumer loans 182 — 62 4 Total $ 31,128 $ 788 $ 20,243 $ 995 The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented: (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total September 30, 2020 Individually evaluated for impairment $ 2,502 $ 23,406 $ 6,825 $ 277 $ 33,010 Collectively evaluated for impairment 701,623 1,765,110 735,229 185,712 3,387,674 Ending balance $ 704,125 $ 1,788,516 $ 742,054 $ 185,989 $ 3,420,684 December 31, 2019 Individually evaluated for impairment $ 494 $ 25,422 $ 4,916 $ 249 $ 31,081 Collectively evaluated for impairment 333,340 1,032,645 550,497 131,434 2,047,916 Ending balance $ 333,834 $ 1,058,067 $ 555,413 $ 131,683 $ 2,078,997 |
Summary of modifications classified as TDRs | The following table illustrates the impact of modifications classified as troubled debt restructurings (“TDRs”) for the periods presented. Number Balance Balance (Dollars in thousands) of Loans Prior to TDR at Period End September 30, 2020 Secured by real estate: Construction and land development 1 $ 95 $ — Total 1 $ 95 $ — December 31, 2019 Secured by real estate: Other commercial 2 $ 7,493 $ 7,493 Total 2 $ 7,493 $ 7,493 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of the credit quality of the Company’s loan portfolio by loan class | The following table summarizes the credit quality of the Company’s loan portfolio by loan class for the period indicated: Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total September 30, 2020 Secured by real estate: Residential properties $ 723,444 $ 1 $ 18,495 $ 114 $ 742,054 Construction and land development 351,516 — 3,733 — 355,249 Farmland 215,296 — 13,114 — 228,410 Other commercial 1,188,928 — 15,702 227 1,204,857 Total real estate 2,479,184 1 51,044 341 2,530,570 Commercial and industrial 686,245 51 17,754 75 704,125 Agricultural production and other loans to farmers 110,588 91 299 — 110,978 Consumer and other loans 74,721 — 290 — 75,011 Total $ 3,350,738 $ 143 $ 69,387 $ 416 $ 3,420,684 Risk Grades Risk Grade Risk Grade Risk Grade (In thousands) 1-6 7 8 9 Total December 31, 2019 Secured by real estate: Residential properties $ 540,933 $ 177 $ 14,303 $ — $ 555,413 Construction and land development 229,933 388 610 — 230,931 Farmland 151,354 — 11,637 — 162,991 Other commercial 645,891 — 18,254 — 664,145 Total real estate 1,568,111 565 44,804 — 1,613,480 Commercial and industrial 331,693 — 2,060 81 333,834 Agricultural production and other loans to farmers 69,854 — 291 — 70,145 Consumer and other loans 61,220 — 318 — 61,538 Total $ 2,030,878 $ 565 $ 47,473 $ 81 $ 2,078,997 |
Summary of allowance for loan losses and balances in the loan portfolio by loan segment | Transactions in the allowance for loan losses and balances in the loan portfolio by loan segment are as follows: (In thousands) Commercial Commercial Residential Consumer Unallocated Total Three Months Ended September 30, 2020 Allowance for loan losses: Beginning balance $ 3,269 $ 12,580 $ 5,968 $ 1,340 $ 902 $ 24,059 Provision for loan losses 2,812 1,835 — 170 — (82) (64) 4,671 Recoveries on loans 34 103 140 827 — 1,104 Loans charged off (261) (1,960) (34) (731) — (2,986) Ending balance $ 5,854 $ 12,558 $ 6,244 $ 1,354 $ 838 $ 26,848 Nine Months Ended September 30, 2020 Allowance for loan losses: Beginning balance $ 2,773 $ 10,766 $ 5,568 $ 1,135 $ 1,258 $ 21,500 Provision for loan losses 3,427 3,824 707 168 (420) 7,706 Recoveries on loans 148 150 237 2,619 — 3,154 Loans charged off (494) (2,182) (268) (2,568) — (5,512) Ending balance $ 5,854 $ 12,558 $ 6,244 $ 1,354 $ 838 $ 26,848 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 471 $ 1,949 $ 17 $ — $ — $ 2,437 Collectively evaluated for impairment 5,383 10,609 6,227 1,354 838 24,411 Ending balance $ 5,854 $ 12,558 $ 6,244 $ 1,354 $ 838 $ 26,848 (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Unallocated Total Three Months Ended September 30, 2019 Allowance for loan losses: Beginning balance $ 3,458 $ 11,399 $ 5,640 $ 1,264 $ 2,083 $ 23,844 Provision for loan losses (291) 1,679 — (333) — (359) — (198) 498 Recoveries on loans 247 88 74 727 — 1,136 Loans charged off (132) (543) (638) (1,554) — (2,867) Balance, end of year $ 3,282 $ 12,623 $ 4,743 $ 78 $ 1,885 $ 22,611 Nine Months Ended September 30, 2019 Allowance for loan losses: Beginning balance $ 3,203 $ 12,920 $ 5,358 $ 1,134 $ 1,885 $ 24,500 Provision for loan losses (47) 174 362 621 — 1,110 Recoveries on loans 399 450 315 2,541 — 3,705 Loans charged off (273) (921) (1,292) (4,218) — (6,704) Ending balance $ 3,282 $ 12,623 $ 4,743 $ 78 $ 1,885 $ 22,611 Period End Allowance Balance Allocated To: Individually evaluated for impairment $ 30 $ 3,235 $ 15 $ — $ — $ 3,280 Collectively evaluated for impairment 3,252 9,388 4,728 78 1,885 19,331 Ending balance $ 3,282 $ 12,623 $ 4,743 $ 78 $ 1,885 $ 22,611 |
Summary of impaired loans | The principal, recorded balance, and related allowance on impaired loans while classified as impaired at September 30, 2020 and December 31, 2019, were as follows: September 30, 2020 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 8,348 $ 5,751 $ — Construction and land development 4,021 1,960 — Farmland 10,774 10,514 — Other commercial 8,654 4,983 — Total real estate 31,797 23,208 — Commercial and industrial 439 31 — Agricultural production and other loans to farmers 156 97 — Consumer and other loans 221 180 — Total $ 32,613 $ 23,516 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,074 $ 1,074 $ 17 Construction and land development — — — Farmland — — — Other commercial 5,983 5,949 1,949 Total real estate 7,057 7,023 1,966 Commercial and industrial 2,471 2,471 471 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total $ 9,528 $ 9,494 $ 2,437 Total impaired loans $ 42,141 $ 33,010 $ 2,437 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge offs and payments applied. December 31, 2019 Principal Recorded Related (In thousands) Balance Balance (1) Allowance Impaired loans with no related allowance: Secured by real estate: Residential properties $ 4,789 $ 3,789 $ — Construction and land development 3,919 2,009 — Farmland 10,993 10,937 — Other commercial 3,893 2,400 — Total real estate 23,594 19,135 — Commercial and industrial 384 67 — Agricultural production and other loans to farmers 75 62 — Consumer and other loans 211 187 — Total $ 24,264 $ 19,451 $ — Impaired loans with related allowance: Secured by real estate: Residential properties $ 1,127 $ 1,127 $ 11 Construction and land development — — — Farmland — — — Other commercial 10,114 10,076 3,325 Total real estate 11,241 11,203 3,336 Commercial and industrial 427 427 34 Agricultural production and other loans to farmers — — — Consumer and other loans — — — Total 11,668 11,630 3,370 Total impaired loans $ 35,932 $ 31,081 $ 3,370 (1) Recorded balance represents the carrying value – the contractual principal obligation due from the customer less charge-offs and payments applied. The average recorded investment and interest recognized for impaired loans for the three and nine months ended September 30, 2020 and 2019 are presented below. Three Months Ended September 30, 2020 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 6,934 $ 38 $ 4,863 $ 178 Construction and land development 2,026 31 2,026 215 Farmland 10,515 127 — 15 Other commercial 12,389 61 11,678 205 Total real estate 31,864 257 18,567 613 Commercial and industrial 1,133 7 636 33 Agricultural production and other loans to farmers 97 — 62 7 Consumer loans 180 — — 4 Total $ 33,274 $ 264 $ 19,265 $ 657 Nine Months Ended September 30, 2020 2019 Average Interest Average Interest (In thousands) Investment Recognized Investment Recognized Secured by real estate: Residential properties $ 5,773 $ 114 $ 5,045 $ 252 Construction and land development 2,013 96 2,177 305 Farmland 10,517 382 130 15 Other commercial 11,876 176 12,085 364 Total real estate 30,179 768 19,437 936 Commercial and industrial 689 20 667 48 Agricultural production and other loans to farmers 78 — 77 7 Consumer loans 182 — 62 4 Total $ 31,128 $ 788 $ 20,243 $ 995 The following table provides the recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented: (In thousands) Commercial and Industrial Commercial Real Estate Residential Consumer and other Total September 30, 2020 Individually evaluated for impairment $ 2,502 $ 23,406 $ 6,825 $ 277 $ 33,010 Collectively evaluated for impairment 701,623 1,765,110 735,229 185,712 3,387,674 Ending balance $ 704,125 $ 1,788,516 $ 742,054 $ 185,989 $ 3,420,684 December 31, 2019 Individually evaluated for impairment $ 494 $ 25,422 $ 4,916 $ 249 $ 31,081 Collectively evaluated for impairment 333,340 1,032,645 550,497 131,434 2,047,916 Ending balance $ 333,834 $ 1,058,067 $ 555,413 $ 131,683 $ 2,078,997 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Matters [Abstract] | |
Schedule of actual and required capital ratios | The following table presents actual and required capital ratios for the Company and the Bank under the Basel III rules. Actual Minimum requirement Required to be (In thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio September 30, 2020: Company: CET1 Capital to Risk-Weighted Assets $ 333,535 10.37 % $ 225,081 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 384,256 11.95 % 273,313 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 469,712 14.61 % 337,622 10.50 % n/a n/a Tier 1 Capital to Average Assets 384,256 8.49 % 181,100 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 382,506 11.92 % $ 224,567 7.00 % $ 208,526 6.50 % Tier 1 Capital to Risk-Weighted Assets 382,506 11.92 % 272,688 8.50 % 256,648 8.00 % Total Capital to Risk-Weighted Assets 409,354 12.76 % 336,850 10.50 % 320,809 10.00 % Tier 1 Capital to Average Assets 382,506 8.47 % 180,711 4.00 % 225,889 5.00 % December 31, 2019: Company: CET1 Capital to Risk-Weighted Assets $ 248,247 10.86 % $ 160,002 7.00 % n/a n/a Tier 1 Capital to Risk-Weighted Assets 288,247 12.61 % 194,288 8.50 % n/a n/a Total Capital to Risk-Weighted Assets 309,747 13.55 % 240,003 10.50 % n/a n/a Tier 1 Capital to Average Assets 288,247 9.74 % 118,373 4.00 % n/a n/a Bank: CET1 Capital to Risk-Weighted Assets $ 284,513 12.49 % $ 159,469 7.00 % $ 148,078 6.50 % Tier 1 Capital to Risk-Weighted Assets 284,513 12.49 % 193,641 8.50 % 182,250 8.00 % Total Capital to Risk-Weighted Assets 306,013 13.43 % 239,203 10.50 % 227,813 10.00 % Tier 1 Capital to Average Assets 284,513 9.63 % 118,134 4.00 % 147,668 5.00 % |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule assets and liabilities measured on recurring basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 September 30, 2020 U.S. Government agency obligations $ 12,658 $ — $ 12,658 $ — Residential mortgage-backed securities 219,840 — 219,840 — Commercial mortgage-backed securities 18,148 — 18,148 — Asset-backed securities 14,637 — 14,637 — Corporate investments 24,973 — 24,973 — State and political subdivisions 47,430 — 47,430 — Total securities available for sale $ 337,686 $ — $ 337,686 $ — December 31, 2019 U.S. Government agency obligations $ 18,102 $ — $ 18,102 $ — Residential mortgage-backed securities 175,879 — 175,879 — Commercial mortgage-backed securities 3,010 — 3,010 — Corporate investments 4,082 — 4,082 — Total securities available for sale $ 201,073 $ — $ 201,073 $ — |
Schedule of assets measured at fair value on a non-recurring basis | Assets measured at fair value on a non-recurring basis are summarized below. Fair Fair Value Measurements Using (In thousands) Value Level 1 Level 2 Level 3 Impaired loans, net of allowance for loan losses: September 30, 2020 $ 30,573 $ — $ — $ 30,573 December 31, 2019 $ 27,711 $ — $ — $ 27,711 Other real estate owned: September 30, 2020 $ 6,763 $ — $ — $ 6,763 December 31, 2019 $ 4,851 $ — $ — $ 4,851 |
Schedule of quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis | The following table presents quantitative information about Level 3 fair value measurements for assets measured at fair value on a non-recurring basis. Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range September 30, 2020 Impaired loans, net of specific allowance $ 30,573 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 6,763 Third-party appraisals Selling costs 5% - 10% Qualitative Information about Level 3 Fair Value Measurements (In thousands) Carrying Valuation Unobservable Range December 31, 2019 Impaired loans, net of specific allowance $ 27,711 Third-party appraisals Selling costs 5% - 10% Internal evaluations of real estate, accounts receivable and inventory Discount of book value 15% - 50% Other real estate owned $ 4,851 Third-party appraisals Selling costs 5% - 10% |
Schedule of estimated fair values of the Company’s financial instruments not previously disclosed | The following table presents estimated fair values of the Company’s financial instruments not previously disclosed: September 30, 2020 December 31, 2019 (In thousands) Carrying Fair Carrying Fair Financial assets: Level 1 inputs: Cash and cash equivalents $ 399,323 $ 399,323 $ 312,972 $ 312,972 Level 2 inputs: Securities held to maturity 97,491 98,179 177,854 179,225 FHLB stock 2,553 2,553 2,585 2,585 Accrued interest receivable 20,604 20,604 11,509 11,509 Level 3 inputs: Loans held for sale 26,774 26,774 16,092 16,092 Loans, net 3,393,836 3,399,383 2,057,497 2,050,169 Financial liabilities: Level 2 inputs: Deposits 3,991,348 3,978,140 2,592,065 2,593,910 FHLB and other borrowings 34,705 35,961 37,652 37,298 Subordinated debentures 111,032 111,032 41,238 41,238 Accrued interest payable 4,367 4,367 1,083 1,083 |
Subordinated Debentures and T_2
Subordinated Debentures and Trust Preferred Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of debentures payable to statutory trusts | The following is a summary of subordinated debentures payable to statutory trusts. (In thousands) Year of Interest September 30, December 31, First Bancshares of Baton Rouge Statutory Trust I 2034 3 month LIBOR, plus 2.50% $ 4,124 $ — State Capital Statutory Trust IV 2035 3 month LIBOR, plus 1.99% 5,155 — BancPlus Statutory Trust II 2036 3 month LIBOR, plus 1.50% 20,619 20,619 BancPlus Statutory Trust III 2037 3 month LIBOR, plus 1.35% 20,619 20,619 State Capital Master Trust 2037 3 month LIBOR, plus 1.46% 6,186 — $ 56,703 $ 41,238 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Postemployment Benefits [Abstract] | |
Schedule of ESOP-owned shares | The following table presents information related to the Company’s ESOP-owned shares. (In thousands, except share data) September 30, 2020 December 31, 2019 Allocated shares 1,377,320 1,355,699 Unearned shares 57,305 78,926 Total ESOP shares 1,434,625 1,434,625 Fair value of unearned shares $ 2,851 $ 4,617 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of restricted stock activity | A summary of the Company’s equity-based award activity and related information for the Company’s RSAs is as follows: Nine Months Ended September 30, 2020 September 30, 2019 Number of Shares Weighted Average Grant Date Fair Value Number of Shares Weighted Average Grant Date Fair Value Beginning of period 69,097 $ 53.67 12,693 $ 53.00 Granted 39,155 45.36 32,244 50.77 Vested (17,143) 51.03 (5,480) 53.00 Forfeited — — — — End of period 91,109 $ 50.60 39,457 $ 51.18 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 12,600 | $ 8,777 | $ 27,515 | $ 27,715 |
Weighted average common shares outstanding (in shares) | 10,070,000 | 7,530,000 | 9,231,000 | 7,532,000 |
Diluted effect of unallocated stock (in shares) | 64,000 | 92,000 | 72,000 | 80,000 |
Diluted common shares (in shares) | 10,134,000 | 7,622,000 | 9,303,000 | 7,612,000 |
Basic earnings per common shares (in USD per share) | $ 1.25 | $ 1.17 | $ 2.98 | $ 3.68 |
Diluted earnings per common shares (in USD per share) | $ 1.24 | $ 1.15 | $ 2.96 | $ 3.64 |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ / shares in Units, $ in Thousands | Apr. 01, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / shares | Dec. 31, 2019$ / shares |
Business Acquisition [Line Items] | |||
Conversion ratio | 0.6950 | ||
Common stock, par value per share (USD per share) | $ / shares | $ 1 | $ 1 | $ 1 |
Number of shares issued | shares | 2,453,827 | ||
Consideration paid in lieu of fractional shares | $ 12 | ||
Acquisition expenses | $ 6,200 | ||
Merger Agreement | |||
Business Acquisition [Line Items] | |||
Acquired core deposit intangible | $ 6,000 | ||
Acquired core deposit intangible, amortization period | 10 years | ||
Loans acquired | $ 880,390 | ||
Discount on loans acquired | 19,100 | ||
Contractual cash flows not expected to be collected | $ 11,600 | ||
SCC | |||
Business Acquisition [Line Items] | |||
Common stock, par value per share (USD per share) | $ / shares | $ 1.25 |
Business Combination - Consider
Business Combination - Consideration paid and preliminary fair value allocation (Details) - USD ($) $ in Thousands | Apr. 01, 2020 | Sep. 30, 2020 | Dec. 31, 2019 |
Liabilities assumed: | |||
Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase | $ 2,616 | $ 2,616 | |
Merger Agreement | |||
Purchase price allocation: | |||
Common stock issued | $ 71,161 | ||
Cash paid for fractional shares | 12 | ||
Total purchase price | 71,173 | ||
Assets acquired: | |||
Cash and due from banks | 75,315 | ||
Securities, FHLB stock and FNBB stock | 97,910 | ||
Loans, net | 880,390 | ||
Premises and equipment | 29,968 | ||
Accrued interest receivable | 3,664 | ||
Bank-owned life insurance | 28,441 | ||
Core deposit intangible | 6,045 | ||
Taxes receivable | 7,787 | ||
Deferred tax asset, net | 5,972 | ||
Other assets | 3,330 | ||
Total assets acquired | 1,138,822 | ||
Liabilities assumed: | |||
Deposits | 1,024,381 | ||
Advances from FHLB and other borrowings | 14,563 | ||
Subordinated debentures | 11,121 | ||
Deferred compensation | 10,310 | ||
Other liabilities | 6,196 | ||
Total liabilities assumed | 1,066,571 | ||
Net assets acquired | 72,251 | ||
Excess of fair value of net assets acquired over consideration paid - Gain on bargain purchase | $ (1,078) |
Business Combination - Unaudite
Business Combination - Unaudited pro forma information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Business Combinations [Abstract] | ||||
Net interest income | $ 43,828 | $ 37,939 | $ 123,958 | $ 115,578 |
Other operating income | 18,626 | 16,969 | 47,034 | 48,655 |
Net income available to common shareholders | $ 13,993 | $ 13,215 | $ 27,539 | $ 41,738 |
Earnings per common share: Basic (in dollars per share) | $ 1.39 | $ 1.32 | $ 2.74 | $ 4.18 |
Earnings per common share: Diluted (in dollars per share) | $ 1.38 | $ 1.31 | $ 2.72 | $ 4.15 |
Investment Securities - Summary
Investment Securities - Summary of amortized cost and fair value of the securities available for sale (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 327,812 | $ 200,697 |
Gross unrealized gain | 10,026 | 887 |
Gross unrealized loss | 152 | 511 |
Fair value | 337,686 | 201,073 |
U.S. Government agency obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 12,276 | 17,999 |
Gross unrealized gain | 382 | 104 |
Gross unrealized loss | 0 | 1 |
Fair value | 12,658 | 18,102 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 213,260 | 175,696 |
Gross unrealized gain | 6,587 | 693 |
Gross unrealized loss | 7 | 510 |
Fair value | 219,840 | 175,879 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 17,556 | 3,002 |
Gross unrealized gain | 592 | 8 |
Gross unrealized loss | 0 | 0 |
Fair value | 18,148 | 3,010 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 14,225 | |
Gross unrealized gain | 467 | |
Gross unrealized loss | 55 | |
Fair value | 14,637 | |
Corporate investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 24,750 | 4,000 |
Gross unrealized gain | 231 | 82 |
Gross unrealized loss | 8 | 0 |
Fair value | 24,973 | $ 4,082 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 45,745 | |
Gross unrealized gain | 1,767 | |
Gross unrealized loss | 82 | |
Fair value | $ 47,430 |
Investment Securities - Summa_2
Investment Securities - Summary of amortized cost and fair value of securities held to maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | $ 97,491 | $ 177,854 |
Gross unrealized gains | 688 | 1,383 |
Gross unrealized losses | 0 | 12 |
Fair value | 98,179 | 179,225 |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 97,491 | 171,783 |
Gross unrealized gains | 688 | 1,339 |
Gross unrealized losses | 0 | 12 |
Fair value | $ 98,179 | 173,110 |
U.S. Government agency obligations | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 5,000 | |
Gross unrealized gains | 3 | |
Gross unrealized losses | 0 | |
Fair value | 5,003 | |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized cost | 1,071 | |
Gross unrealized gains | 41 | |
Gross unrealized losses | 0 | |
Fair value | $ 1,112 |
Investment Securities - Summa_3
Investment Securities - Summary of investment securities that were in an unrealized loss position (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Fair value, less than 12 months | $ 17,850 | $ 92,323 |
Unrealized losses, less than 12 months | 152 | 466 |
Fair value, 12 months or more | 0 | 7,239 |
Unrealized Losses, 12 months or more | 0 | 45 |
Fair value, total | 17,850 | 99,562 |
Unrealized losses, total | 152 | 511 |
Residential mortgage-backed securities | ||
Available for sale: | ||
Fair value, less than 12 months | 5,130 | 92,323 |
Unrealized losses, less than 12 months | 7 | 466 |
Fair value, 12 months or more | 0 | 2,240 |
Unrealized Losses, 12 months or more | 0 | 44 |
Fair value, total | 5,130 | 94,563 |
Unrealized losses, total | 7 | 510 |
Commercial mortgage-backed securities | ||
Available for sale: | ||
Fair value, less than 12 months | 307 | |
Unrealized losses, less than 12 months | 0 | |
Fair value, 12 months or more | 0 | |
Unrealized Losses, 12 months or more | 0 | |
Fair value, total | 307 | |
Unrealized losses, total | 0 | |
Asset-backed securities | ||
Available for sale: | ||
Fair value, less than 12 months | 2,533 | |
Unrealized losses, less than 12 months | 55 | |
Fair value, 12 months or more | 0 | |
Unrealized Losses, 12 months or more | 0 | |
Fair value, total | 2,533 | |
Unrealized losses, total | 55 | |
Corporate investments | ||
Available for sale: | ||
Fair value, less than 12 months | 6,992 | |
Unrealized losses, less than 12 months | 8 | |
Fair value, 12 months or more | 0 | |
Unrealized Losses, 12 months or more | 0 | |
Fair value, total | 6,992 | |
Unrealized losses, total | 8 | |
State and political subdivisions | ||
Available for sale: | ||
Fair value, less than 12 months | 2,888 | |
Unrealized losses, less than 12 months | 82 | |
Fair value, 12 months or more | 0 | |
Unrealized Losses, 12 months or more | 0 | |
Fair value, total | 2,888 | |
Unrealized losses, total | 82 | |
Held to maturity: | ||
Fair value, less than 12 months | 682 | 2,656 |
Unrealized losses, less than 12 months | 0 | 8 |
Fair value, 12 months or more | 0 | 2,766 |
Unrealized Losses, 12 months or more | 0 | 4 |
Fair value, total | 682 | 5,422 |
Unrealized losses, total | $ 0 | 12 |
U.S. Government agency obligations | ||
Available for sale: | ||
Fair value, less than 12 months | 0 | |
Unrealized losses, less than 12 months | 0 | |
Fair value, 12 months or more | 4,999 | |
Unrealized Losses, 12 months or more | 1 | |
Fair value, total | 4,999 | |
Unrealized losses, total | $ 1 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($) | Sep. 30, 2020numberOfDebtPosition | Dec. 31, 2019numberOfDebtPosition | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Unrealized loss position, number of positions | numberOfDebtPosition | 11 | 36 | |
U.S. Government agency obligations | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Debt Securities, transfer amount | $ | $ 66.5 |
Investment Securities - Summa_4
Investment Securities - Summary of amortized cost and fair value of debt securities by contractual maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Amortized cost | |
One year or less | $ 3,490 |
After one through five years | 20,725 |
After five through ten years | 62,458 |
After ten years | 241,139 |
Allocated and single maturity date, total | 327,812 |
Fair value | |
One year or less | 3,510 |
After one through five years | 21,267 |
After five through ten years | 64,289 |
After ten years | 248,620 |
Allocated and single maturity date, total | 337,686 |
Amortized Cost | |
One year or less | 11,134 |
After one through five years | 46,630 |
After five through ten years | 36,183 |
After ten years | 3,544 |
Allocated and single maturity date, total | 97,491 |
Fair Value | |
One year or less | 11,172 |
After one through five years | 46,856 |
After five through ten years | 36,607 |
After ten years | 3,544 |
Allocated and single maturity date, total | $ 98,179 |
Investment Securities - Summa_5
Investment Securities - Summary of the amortized cost and fair value for investment securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available for sale: | ||
Amortization cost | $ 327,812 | $ 200,697 |
Fair value | 337,686 | 201,073 |
Held to maturity: | ||
Amortized cost | 97,491 | 177,854 |
Fair value | 98,179 | 179,225 |
Pledged to secure public deposits and for other purposes required or permitted by law | ||
Available for sale: | ||
Amortization cost | 281,498 | 124,854 |
Fair value | 290,763 | 125,103 |
Held to maturity: | ||
Amortized cost | 53,994 | 123,978 |
Fair value | $ 54,667 | $ 125,241 |
Loans - Summary of the company'
Loans - Summary of the company's loan portfolio by loan class (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 3,420,684 | $ 2,078,997 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 2,530,570 | 1,613,480 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 742,054 | 555,413 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 355,249 | 230,931 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 228,410 | 162,991 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,204,857 | 664,145 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 704,125 | 333,834 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 110,978 | 70,145 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 75,011 | $ 61,538 |
Loans - Summary of non-accrual
Loans - Summary of non-accrual loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 12,275 | $ 12,159 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 11,980 | 11,843 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 3,867 | 2,419 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 353 | 390 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 88 | 0 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 7,672 | 9,034 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 30 | 67 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | 85 | 62 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Non-accrual loans | $ 180 | $ 187 |
Loans - Summary of past due loa
Loans - Summary of past due loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | $ 16,783 | $ 13,809 |
Current | 3,403,901 | 2,065,188 |
Total Loans | 3,420,684 | 2,078,997 |
Past Due 90 Days or More and Accruing | 2,974 | 2,618 |
Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 12,857 | 10,000 |
Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 3,926 | 3,809 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 15,534 | 11,913 |
Current | 2,515,036 | 1,601,567 |
Total Loans | 2,530,570 | 1,613,480 |
Past Due 90 Days or More and Accruing | 2,757 | 2,312 |
Real estate | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 11,825 | 8,430 |
Real estate | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 3,709 | 3,483 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 6,501 | 8,872 |
Current | 735,553 | 546,541 |
Total Loans | 742,054 | 555,413 |
Past Due 90 Days or More and Accruing | 1,292 | 1,745 |
Real estate | Residential properties | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 4,477 | 6,262 |
Real estate | Residential properties | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 2,024 | 2,610 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 2,400 | 688 |
Current | 352,849 | 230,243 |
Total Loans | 355,249 | 230,931 |
Past Due 90 Days or More and Accruing | 31 | 0 |
Real estate | Construction and land development | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 2,369 | 688 |
Real estate | Construction and land development | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 31 | 0 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 1,465 | 402 |
Current | 226,945 | 162,589 |
Total Loans | 228,410 | 162,991 |
Past Due 90 Days or More and Accruing | 458 | 149 |
Real estate | Farmland | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 1,007 | 253 |
Real estate | Farmland | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 458 | 149 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 5,168 | 1,951 |
Current | 1,199,689 | 662,194 |
Total Loans | 1,204,857 | 664,145 |
Past Due 90 Days or More and Accruing | 976 | 418 |
Real estate | Other commercial | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 3,972 | 1,227 |
Real estate | Other commercial | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 1,196 | 724 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 700 | 630 |
Current | 703,425 | 333,204 |
Total Loans | 704,125 | 333,834 |
Past Due 90 Days or More and Accruing | 125 | 235 |
Commercial and industrial loans | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 575 | 375 |
Commercial and industrial loans | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 125 | 255 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 114 | 420 |
Current | 110,864 | 69,725 |
Total Loans | 110,978 | 70,145 |
Past Due 90 Days or More and Accruing | 34 | 20 |
Agricultural production and other loans to farmers | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 80 | 400 |
Agricultural production and other loans to farmers | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 34 | 20 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 435 | 846 |
Current | 74,576 | 60,692 |
Total Loans | 75,011 | 61,538 |
Past Due 90 Days or More and Accruing | 58 | 51 |
Consumer and other loans | Past Due 30-89 Days | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | 377 | 795 |
Consumer and other loans | Past Due 90 Days or More | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Past due | $ 58 | $ 51 |
Loans - Summary of impaired loa
Loans - Summary of impaired loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Impaired loans with no related allowance: | ||
Principal balance | $ 32,613 | $ 24,264 |
Recorded balance | 23,516 | 19,451 |
Impaired loans with related allowance: | ||
Principal balance | 9,528 | 11,668 |
Recorded investment | 9,494 | 11,630 |
Related allowance | 2,437 | 3,370 |
Principal Balance, Total Impaired Loans | 42,141 | 35,932 |
Recorded Balance, Total Impaired Loans | 33,010 | 31,081 |
Real estate | ||
Impaired loans with no related allowance: | ||
Principal balance | 31,797 | 23,594 |
Recorded balance | 23,208 | 19,135 |
Impaired loans with related allowance: | ||
Principal balance | 7,057 | 11,241 |
Recorded investment | 7,023 | 11,203 |
Related allowance | 1,966 | 3,336 |
Real estate | Residential properties | ||
Impaired loans with no related allowance: | ||
Principal balance | 8,348 | 4,789 |
Recorded balance | 5,751 | 3,789 |
Impaired loans with related allowance: | ||
Principal balance | 1,074 | 1,127 |
Recorded investment | 1,074 | 1,127 |
Related allowance | 17 | 11 |
Real estate | Construction and land development | ||
Impaired loans with no related allowance: | ||
Principal balance | 4,021 | 3,919 |
Recorded balance | 1,960 | 2,009 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Real estate | Farmland | ||
Impaired loans with no related allowance: | ||
Principal balance | 10,774 | 10,993 |
Recorded balance | 10,514 | 10,937 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Real estate | Other commercial | ||
Impaired loans with no related allowance: | ||
Principal balance | 8,654 | 3,893 |
Recorded balance | 4,983 | 2,400 |
Impaired loans with related allowance: | ||
Principal balance | 5,983 | 10,114 |
Recorded investment | 5,949 | 10,076 |
Related allowance | 1,949 | 3,325 |
Commercial and industrial loans | ||
Impaired loans with no related allowance: | ||
Principal balance | 439 | 384 |
Recorded balance | 31 | 67 |
Impaired loans with related allowance: | ||
Principal balance | 2,471 | 427 |
Recorded investment | 2,471 | 427 |
Related allowance | 471 | 34 |
Agricultural production and other loans to farmers | ||
Impaired loans with no related allowance: | ||
Principal balance | 156 | 75 |
Recorded balance | 97 | 62 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | 0 | 0 |
Consumer and other loans | ||
Impaired loans with no related allowance: | ||
Principal balance | 221 | 211 |
Recorded balance | 180 | 187 |
Impaired loans with related allowance: | ||
Principal balance | 0 | 0 |
Recorded investment | 0 | 0 |
Related allowance | $ 0 | $ 0 |
Loans - Summary of average reco
Loans - Summary of average recorded investment and interest recognized for impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | $ 33,274 | $ 19,265 | $ 31,128 | $ 20,243 |
Interest recognized | 264 | 657 | 788 | 995 |
Real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 31,864 | 18,567 | 30,179 | 19,437 |
Interest recognized | 257 | 613 | 768 | 936 |
Real estate | Residential properties | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 6,934 | 4,863 | 5,773 | 5,045 |
Interest recognized | 38 | 178 | 114 | 252 |
Real estate | Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 2,026 | 2,026 | 2,013 | 2,177 |
Interest recognized | 31 | 215 | 96 | 305 |
Real estate | Farmland | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 10,515 | 0 | 10,517 | 130 |
Interest recognized | 127 | 15 | 382 | 15 |
Real estate | Other commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 12,389 | 11,678 | 11,876 | 12,085 |
Interest recognized | 61 | 205 | 176 | 364 |
Commercial and industrial loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 1,133 | 636 | 689 | 667 |
Interest recognized | 7 | 33 | 20 | 48 |
Agricultural production and other loans to farmers | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 97 | 62 | 78 | 77 |
Interest recognized | 0 | 7 | 0 | 7 |
Consumer and other loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average investment | 180 | 0 | 182 | 62 |
Interest recognized | $ 0 | $ 4 | $ 0 | $ 4 |
Loans - Summary of modification
Loans - Summary of modifications classified as TDRs (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)numberOfDebtPosition | Dec. 31, 2019USD ($)numberOfDebtPosition | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | numberOfDebtPosition | 1 | 2 |
Balance Prior to TDR | $ 95 | $ 7,493 |
Balance at Period End | $ 0 | $ 7,493 |
Construction and land development | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | numberOfDebtPosition | 1 | |
Balance Prior to TDR | $ 95 | |
Balance at Period End | $ 0 | |
Other commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | numberOfDebtPosition | 2 | |
Balance Prior to TDR | $ 7,493 | |
Balance at Period End | $ 7,493 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for loan losses attributable to restructured loans | $ 26,848 | $ 26,848 | $ 24,059 | $ 21,500 | $ 22,611 | $ 23,844 | $ 24,500 |
Minimum period to determine payment default | 90 days | ||||||
Restructured loan | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Allowance for loan losses attributable to restructured loans | 1,800 | $ 1,800 | $ 3,300 | ||||
Charge of related to loan classified as TDR | $ 1,800 |
Allowance for Loan Losses - Sch
Allowance for Loan Losses - Schedule of the credit quality of the company's loan portfolio by loan class (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 3,420,684 | $ 2,078,997 |
Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 3,350,738 | 2,030,878 |
Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 143 | 565 |
Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 69,387 | 47,473 |
Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 416 | 81 |
Real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 2,530,570 | 1,613,480 |
Real estate | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 2,479,184 | 1,568,111 |
Real estate | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1 | 565 |
Real estate | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 51,044 | 44,804 |
Real estate | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 341 | 0 |
Real estate | Residential properties | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 742,054 | 555,413 |
Real estate | Residential properties | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 723,444 | 540,933 |
Real estate | Residential properties | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1 | 177 |
Real estate | Residential properties | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 18,495 | 14,303 |
Real estate | Residential properties | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 114 | 0 |
Real estate | Construction and land development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 355,249 | 230,931 |
Real estate | Construction and land development | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 351,516 | 229,933 |
Real estate | Construction and land development | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 388 |
Real estate | Construction and land development | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 3,733 | 610 |
Real estate | Construction and land development | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Farmland | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 228,410 | 162,991 |
Real estate | Farmland | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 215,296 | 151,354 |
Real estate | Farmland | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Farmland | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 13,114 | 11,637 |
Real estate | Farmland | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Other commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,204,857 | 664,145 |
Real estate | Other commercial | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 1,188,928 | 645,891 |
Real estate | Other commercial | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Real estate | Other commercial | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 15,702 | 18,254 |
Real estate | Other commercial | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 227 | 0 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 704,125 | 333,834 |
Commercial and industrial loans | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 686,245 | 331,693 |
Commercial and industrial loans | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 51 | 0 |
Commercial and industrial loans | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 17,754 | 2,060 |
Commercial and industrial loans | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 75 | 81 |
Agricultural production and other loans to farmers | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 110,978 | 70,145 |
Agricultural production and other loans to farmers | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 110,588 | 69,854 |
Agricultural production and other loans to farmers | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 91 | 0 |
Agricultural production and other loans to farmers | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 299 | 291 |
Agricultural production and other loans to farmers | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Consumer and other loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 75,011 | 61,538 |
Consumer and other loans | Risk Grades 1-6 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 74,721 | 61,220 |
Consumer and other loans | Risk Grade 7 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 0 | 0 |
Consumer and other loans | Rick Grade 8 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | 290 | 318 |
Consumer and other loans | Risk Grade 9 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans before allowance for loan losses | $ 0 | $ 0 |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Schedule of Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 24,059 | $ 23,844 | $ 21,500 | $ 24,500 |
Provision for loan losses | 4,671 | 498 | 7,706 | 1,110 |
Recoveries on loans | 1,104 | 1,136 | 3,154 | 3,705 |
Loans charged off | (2,986) | (2,867) | (5,512) | (6,704) |
Ending balance | 26,848 | 22,611 | 26,848 | 22,611 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated for impairment | 2,437 | 3,280 | 2,437 | 3,280 |
Collectively evaluated for impairment | 24,411 | 19,331 | 24,411 | 19,331 |
Commercial and industrial loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 3,269 | 3,458 | 2,773 | 3,203 |
Provision for loan losses | 2,812 | (291) | 3,427 | (47) |
Recoveries on loans | 34 | 247 | 148 | 399 |
Loans charged off | (261) | (132) | (494) | (273) |
Ending balance | 5,854 | 3,282 | 5,854 | 3,282 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated for impairment | 471 | 30 | 471 | 30 |
Collectively evaluated for impairment | 5,383 | 3,252 | 5,383 | 3,252 |
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 12,580 | 11,399 | 10,766 | 12,920 |
Provision for loan losses | 1,835 | 1,679 | 3,824 | 174 |
Recoveries on loans | 103 | 88 | 150 | 450 |
Loans charged off | (1,960) | (543) | (2,182) | (921) |
Ending balance | 12,558 | 12,623 | 12,558 | 12,623 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated for impairment | 1,949 | 3,235 | 1,949 | 3,235 |
Collectively evaluated for impairment | 10,609 | 9,388 | 10,609 | 9,388 |
Residential | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 5,968 | 5,640 | 5,568 | 5,358 |
Provision for loan losses | 170 | (333) | 707 | 362 |
Recoveries on loans | 140 | 74 | 237 | 315 |
Loans charged off | (34) | (638) | (268) | (1,292) |
Ending balance | 6,244 | 4,743 | 6,244 | 4,743 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated for impairment | 17 | 15 | 17 | 15 |
Collectively evaluated for impairment | 6,227 | 4,728 | 6,227 | 4,728 |
Consumer and other loans | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 1,340 | 1,264 | 1,135 | 1,134 |
Provision for loan losses | (82) | (359) | 168 | 621 |
Recoveries on loans | 827 | 727 | 2,619 | 2,541 |
Loans charged off | (731) | (1,554) | (2,568) | (4,218) |
Ending balance | 1,354 | 78 | 1,354 | 78 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | 1,354 | 78 | 1,354 | 78 |
Unallocated | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 902 | 2,083 | 1,258 | 1,885 |
Provision for loan losses | (64) | (198) | (420) | 0 |
Recoveries on loans | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Ending balance | 838 | 1,885 | 838 | 1,885 |
Period End Allowance Balance Allocated To: | ||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 |
Collectively evaluated for impairment | $ 838 | $ 1,885 | $ 838 | $ 1,885 |
Allowance for Loan Losses - S_3
Allowance for Loan Losses - Schedule of the impairment methodology (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Ending balance | $ 3,420,684 | $ 2,078,997 |
Commercial and industrial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 2,502 | 494 |
Collectively evaluated for impairment | 701,623 | 333,340 |
Ending balance | 704,125 | 333,834 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 23,406 | 25,422 |
Collectively evaluated for impairment | 1,765,110 | 1,032,645 |
Ending balance | 1,788,516 | 1,058,067 |
Residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 6,825 | 4,916 |
Collectively evaluated for impairment | 735,229 | 550,497 |
Ending balance | 742,054 | 555,413 |
Consumer and other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 277 | 249 |
Collectively evaluated for impairment | 185,712 | 131,434 |
Ending balance | 185,989 | 131,683 |
Unallocated | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Individually evaluated for impairment | 33,010 | 31,081 |
Collectively evaluated for impairment | 3,387,674 | 2,047,916 |
Ending balance | $ 3,420,684 | $ 2,078,997 |
Regulatory Matters - Narrative
Regulatory Matters - Narrative (Details) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Regulatory Matters [Abstract] | ||
CET1 Capital to Risk-Weighted Assets (in percentage) | 0.0250 | 0.0250 |
Tier one additional capital, trust preferred securities | $ 50,700,000 | $ 40,000,000 |
Banking regulation, tier one additional capital, trust preferred securities | 0 | $ 0 |
Tier 2 capital, subordinated debentures | $ 58,600,000 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Requirements (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Minimum requirement Phase-In Schedule | ||
CET1 Capital to Risk-Weighted Assets (in percentage) | 0.0250 | 0.0250 |
BancPlus Corporation | ||
Actual | ||
CET1 Capital to Risk-Weighted Assets | $ 333,535 | $ 248,247 |
CET1 Capital to Risk-Weighted Assets, ratio (in percentage) | 103.70 | 108.60 |
Tier 1 Capital to Risk-Weighted Assets | $ 384,256 | $ 288,247 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 119.50 | 126.10 |
Total Capital to Risk-Weighted Assets | $ 469,712 | $ 309,747 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 146.10 | 135.50 |
Tier 1 Capital to Average Assets | $ 384,256 | $ 288,247 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 84.90 | 97.40 |
Minimum requirement Phase-In Schedule | ||
CET1 Capital to Risk-Weighted Assets | $ 225,081 | $ 160,002 |
CET1 Capital to Risk-Weighted Assets (in percentage) | 70 | 70 |
Tier 1 Capital to Risk-Weighted Assets | $ 273,313 | $ 194,288 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 85 | 85 |
Total Capital to Risk-Weighted Assets | $ 337,622 | $ 240,003 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 105 | 105 |
Tier 1 Capital to Average Assets | $ 181,100 | $ 118,373 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 40 | 40 |
Subsidiaries | ||
Actual | ||
CET1 Capital to Risk-Weighted Assets | $ 382,506 | $ 284,513 |
CET1 Capital to Risk-Weighted Assets, ratio (in percentage) | 119.20 | 124.90 |
Tier 1 Capital to Risk-Weighted Assets | $ 382,506 | $ 284,513 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 119.20 | 124.90 |
Total Capital to Risk-Weighted Assets | $ 409,354 | $ 306,013 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 127.60 | 134.30 |
Tier 1 Capital to Average Assets | $ 382,506 | $ 284,513 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 84.70 | 96.30 |
Minimum requirement Phase-In Schedule | ||
CET1 Capital to Risk-Weighted Assets | $ 224,567 | $ 159,469 |
CET1 Capital to Risk-Weighted Assets (in percentage) | 70 | 70 |
Tier 1 Capital to Risk-Weighted Assets | $ 272,688 | $ 193,641 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 85 | 85 |
Total Capital to Risk-Weighted Assets | $ 336,850 | $ 239,203 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 105 | 105 |
Tier 1 Capital to Average Assets | $ 180,711 | $ 118,134 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 40 | 40 |
Required to be Well Capitalized | ||
CET1 Capital to Risk-Weighted Assets | $ 208,526 | $ 148,078 |
CET1 Capital to Risk-Weighted Assets, ratio (in percentage) | 65 | 65 |
Tier 1 Capital to Risk-Weighted Assets | $ 256,648 | $ 182,250 |
Tier 1 Capital to Risk-Weighted Assets, ratio (in percentage) | 80 | 80 |
Total Capital to Risk-Weighted Assets | $ 320,809 | $ 227,813 |
Total Capital to Risk-Weighted Assets, ratio (in percentage) | 100 | 100 |
Tier 1 Capital to Average Assets | $ 225,889 | $ 147,668 |
Tier 1 Capital to Average Assets, ratio (in percentage) | 50 | 50 |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured on Recurring Basis (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 337,686 | $ 201,073 |
Minimum | Marketability and comparability discounts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input (as a percent) | 0.05 | |
Maximum | Marketability and comparability discounts | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Measurement input (as a percent) | 0.15 | |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 337,686 | 201,073 |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 12,658 | 18,102 |
U.S. Government agency obligations | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
U.S. Government agency obligations | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 12,658 | 18,102 |
U.S. Government agency obligations | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 219,840 | 175,879 |
Residential mortgage-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Residential mortgage-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 219,840 | 175,879 |
Residential mortgage-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 18,148 | 3,010 |
Commercial mortgage-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Commercial mortgage-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 18,148 | 3,010 |
Commercial mortgage-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Asset-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 14,637 | |
Asset-backed securities | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | |
Asset-backed securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 14,637 | |
Asset-backed securities | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | |
Corporate investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 24,973 | 4,082 |
Corporate investments | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate investments | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 24,973 | 4,082 |
Corporate investments | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | $ 0 |
State and political subdivisions | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 47,430 | |
State and political subdivisions | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | |
State and political subdivisions | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 47,430 | |
State and political subdivisions | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | $ 0 |
Fair Value - Schedule of asse_2
Fair Value - Schedule of assets measured at fair value on a non-recurring basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | $ 30,573 | $ 27,711 |
Other real estate owned | 6,763 | 4,851 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 30,573 | 27,711 |
Other real estate owned | 6,763 | 4,851 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 0 | 0 |
Other real estate owned | 0 | 0 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net of specific allowance | 30,573 | 27,711 |
Other real estate owned | $ 6,763 | $ 4,851 |
Fair Value - Qualitative Inform
Fair Value - Qualitative Information about Level 3 Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of specific allowance | $ 30,573 | $ 27,711 |
Other real estate owned | $ 6,763 | $ 4,851 |
Minimum | Selling costs | Third-party appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 5.00% | 5.00% |
Other real estate owned, measurement input (in percentage) | 0.05 | 0.05 |
Minimum | Discount of book value | Internal evaluations of real estate, accounts receivable and inventory | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 15.00% | 15.00% |
Maximum | Selling costs | Third-party appraisals | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 10.00% | 10.00% |
Other real estate owned, measurement input (in percentage) | 0.10 | 0.10 |
Maximum | Discount of book value | Internal evaluations of real estate, accounts receivable and inventory | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans, net of allowance for loan losses, selling costs (in percentage) | 50.00% | 50.00% |
Fair Value - Summary of estimat
Fair Value - Summary of estimated fair values of the Company’s financial instruments not previously disclosed (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Amortized cost | $ 97,491 | $ 177,854 |
Accrued interest receivable | 20,604 | 11,509 |
Carrying Value | ||
Financial liabilities: | ||
Deposits | 3,991,348 | 2,592,065 |
FHLB and other borrowings | 34,705 | 37,652 |
Subordinated debentures | 111,032 | 41,238 |
Accrued interest payable | 4,367 | 1,083 |
Carrying Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 399,323 | 312,972 |
Carrying Value | Level 2 | ||
Financial assets: | ||
Amortized cost | 97,491 | 177,854 |
FHLB stock | 2,553 | 2,585 |
Accrued interest receivable | 20,604 | 11,509 |
Carrying Value | Level 3 | ||
Financial assets: | ||
Loans held for sale | 26,774 | 16,092 |
Loans, net | 3,393,836 | 2,057,497 |
Fair Value | ||
Financial liabilities: | ||
Deposits | 3,978,140 | 2,593,910 |
FHLB and other borrowings | 35,961 | 37,298 |
Subordinated debentures | 111,032 | 41,238 |
Accrued interest payable | 4,367 | 1,083 |
Fair Value | Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 399,323 | 312,972 |
Fair Value | Level 2 | ||
Financial assets: | ||
Amortized cost | 98,179 | 179,225 |
FHLB stock | 2,553 | 2,585 |
Accrued interest receivable | 20,604 | 11,509 |
Fair Value | Level 3 | ||
Financial assets: | ||
Loans held for sale | 26,774 | 16,092 |
Loans, net | $ 3,399,383 | $ 2,050,169 |
Subordinated Debentures and T_3
Subordinated Debentures and Trust Preferred Securities - Narrative (Details) - Subordinated Debt - The Notes - USD ($) | Jun. 04, 2025 | Jun. 04, 2020 | Sep. 30, 2020 |
Debt Instrument [Line Items] | |||
Face amount of debt issued and sold | $ 60,000,000 | ||
Issuance costs | $ 1,400,000 | ||
Period to defer payment of interest (not exceeding) | 5 years | ||
Remaining purchase discount | $ 4,300,000 | ||
Forecast | |||
Debt Instrument [Line Items] | |||
Multiples allowed to be redeemed | $ 1,000 | ||
Redemption price (as a percent) | 100.00% | ||
From and including June 4, 2020, to but excluding June 15, 2025 or early redemption date | |||
Debt Instrument [Line Items] | |||
Fixed interest rate | 6.00% | ||
From and including June 15, 2025, to but excluding the maturity date or early redemption date | SOFR | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 5.86% |
Subordinated Debentures and T_4
Subordinated Debentures and Trust Preferred Securities - Summary of debentures payable to statutory trusts (Details) - Subordinated Debt - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Debentures payable | $ 56,703 | $ 41,238 |
First Bancshares of Baton Rouge Statutory Trust I | ||
Debt Instrument [Line Items] | ||
Debentures payable | $ 4,124 | $ 0 |
First Bancshares of Baton Rouge Statutory Trust I | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 2.50% | 2.50% |
State Capital Statutory Trust IV | ||
Debt Instrument [Line Items] | ||
Debentures payable | $ 5,155 | $ 0 |
State Capital Statutory Trust IV | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.99% | 1.99% |
BancPlus Statutory Trust II | ||
Debt Instrument [Line Items] | ||
Debentures payable | $ 20,619 | $ 20,619 |
BancPlus Statutory Trust II | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | 1.50% |
BancPlus Statutory Trust III | ||
Debt Instrument [Line Items] | ||
Debentures payable | $ 20,619 | $ 20,619 |
BancPlus Statutory Trust III | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.35% | 1.35% |
State Capital Master Trust | ||
Debt Instrument [Line Items] | ||
Debentures payable | $ 6,186 | $ 0 |
State Capital Master Trust | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.46% | 1.46% |
Employee Benefits - Narrative (
Employee Benefits - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employers matching contribution, annual vesting percentage (in percentage) | 3.00% | |||
Employer matching contribution, percent of match (in percentage) | 50.00% | |||
Employer matching contribution, percent of employees' gross pay (in percentage) | 2.00% | |||
Total ESOP shares | 1,434,625 | 1,434,625 | ||
Stock repurchased during period (in shares) | 27,594,000 | 77,000,000 | 176,786,000 | |
State Bank ESOP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total ESOP shares | 213,134,000 | |||
Employee Stock Ownership Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Redeemable common stock owned by the ESOP | $ 68,522 | $ 79,308 | ||
Temporary equity (in USD per share) | $ 49.75 | $ 58.50 |
Employee Benefits - Schedule of
Employee Benefits - Schedule of ESOP (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Postemployment Benefits [Abstract] | ||
Allocated shares (in shares) | 1,377,320 | 1,355,699 |
Unearned shares (in shares) | 57,305 | 78,926 |
Total ESOP (in shares) | 1,434,625 | 1,434,625 |
Fair value of unearned shares (in USD) | $ 2,851 | $ 4,617 |
Equity (Details)
Equity (Details) - $ / shares | Sep. 30, 2020 | Apr. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Debt and Equity Securities, FV-NI [Line Items] | ||||
Common stock, par value per share (USD per share) | $ 1 | $ 1 | $ 1 | |
Preferred stock, shares authorized (in shares) | 10,000,000 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | ||
Preferred stock, shares outstanding (in shares) | 0 | 0 | ||
Class A | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Common stock, par value per share (USD per share) | $ 1 | |||
Class B | ||||
Debt and Equity Securities, FV-NI [Line Items] | ||||
Common stock, par value per share (USD per share) | $ 1 |
Stock Based Compensation (Detai
Stock Based Compensation (Details) - Restricted stock awards - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 39,155 | 32,244 | ||
Stock based compensation expense | $ 1,100 | $ 519 | ||
Forfeited (in shares) | 0 | 0 | ||
Unrecognized compensation cost related to nonvested RSAs | $ 3,800 | |||
Unrecognized compensation cost related to nonvested RSAs, period for recognition | 3 years 2 months 12 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 91,109 | 39,457 | 69,097 | 12,693 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 50.60 | $ 51.18 | $ 53.67 | $ 53 |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 1 year | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 5 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted stock awards - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Number of Shares | ||
Outstanding at the beginning of period (in shares) | 69,097 | 12,693 |
Granted (in shares) | 39,155 | 32,244 |
Vested (in shares) | (17,143) | (5,480) |
Forfeited (in shares) | 0 | 0 |
Outstanding at the end of period (in shares) | 91,109 | 39,457 |
Weighted Average Grant Date Fair Value | ||
Outstanding, weighted average grant date fair value, beginning balance (in USD per share) | $ 53.67 | $ 53 |
Granted, weighted average grant date fair value (in USD per share) | 45.36 | 50.77 |
Vested, weighted average grant date fair value (in USD per share) | 51.03 | 53 |
Forfeited, weighted average grant date fair value (in USD per share) | 0 | 0 |
Outstanding, weighted average grant date fair value, ending balance (in USD per share) | $ 50.60 | $ 51.18 |
COVID-19 (Details)
COVID-19 (Details) $ in Thousands | Sep. 30, 2020USD ($)loan | Dec. 31, 2019USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | ||
Loans before allowance for loan losses | $ 3,420,684 | $ 2,078,997 |
COVID-19 pandemic | Paycheck Protection Program | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Number of loans | loan | 4,243 | |
Loans before allowance for loan losses | $ 298,000 | |
Additional fee income expected | 11,700 | |
COVID-19 pandemic | CARES Act | ||
Unusual or Infrequent Item, or Both [Line Items] | ||
Loans before allowance for loan losses | $ 897,000 | |
Number of loans granted deferment, temporary modifications | loan | 2,612 | |
Percentage of loans granted temporary modification (as a percentage) | 26.00% | |
Percentage of loans currently in temporary modification (as a percentage) | 3.00% | |
Number of loans currently in temporary modification | loan | 66 | |
Financing Receivable, Before Allowance for Credit Loss, Loans In Temporary Modification | $ 100,700 |