Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 10, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-39028 | |
Entity Registrant Name | CROSSFIRST BANKSHARES, INC. | |
Entity Incorporation, State or Country Code | KS | |
Entity Tax Identification Number | 26-3212879 | |
Entity Address, Address Line One | 11440 Tomahawk Creek Parkway | |
Entity Address, City or Town | Leawood, | |
Entity Address, State or Province | KS | |
Entity Address, Postal Zip Code | 66211 | |
City Area Code | 913 | |
Local Phone Number | 312-6822 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | CFB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,188,708 | |
Entity Central Index Key | 0001458412 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 194,371 | $ 187,320 |
Available-for-sale securities - taxable | 256,121 | 298,208 |
Available-for-sale securities - tax-exempt | 443,962 | 443,426 |
Loans, net of allowance for loan losses of $71,185 and $56,896 at June 30, 2020 and December 31, 2019, respectively | 4,342,039 | 3,795,348 |
Premises and equipment, net | 68,889 | 70,210 |
Restricted equity securities | 20,675 | 17,278 |
Interest receivable | 19,399 | 15,716 |
Foreclosed assets held for sale | 2,502 | 3,619 |
Deferred tax asset | 14,841 | 13,782 |
Goodwill and other intangible assets, net | 247 | 7,694 |
Bank-owned life insurance | 66,598 | 65,689 |
Other | 32,610 | 12,943 |
Total assets | 5,462,254 | 4,931,233 |
Deposits | ||
Non-interest bearing | 750,333 | 521,826 |
Savings, NOW and money market | 2,393,269 | 2,162,187 |
Time | 1,160,541 | 1,239,746 |
Total deposits | 4,304,143 | 3,923,759 |
Federal funds purchased and repurchase agreements | 49,881 | 14,921 |
Federal Home Loan Bank advances | 450,617 | 358,743 |
Other borrowings | 942 | 921 |
Interest payable and other liabilities | 48,579 | 31,245 |
Total liabilities | 4,854,162 | 4,329,589 |
Stockholders’ equity | ||
Redeemable preferred stock | 0 | 0 |
Common stock | 521 | 520 |
Additional paid-in capital | 521,133 | 519,870 |
Retained earnings | 61,344 | 64,803 |
Accumulated other comprehensive income | 25,094 | 16,451 |
Total stockholders’ equity | 608,092 | 601,644 |
Total liabilities and stockholders’ equity | $ 5,462,254 | $ 4,931,233 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Allowance for loan losses | $ 71,185 | $ 56,896 |
Stockholders’ equity | ||
Redeemable preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Redeemable preferred stock liquidation value (in dollars per share) | $ 25 | $ 25 |
Redeemable preferred stock authorized (in shares) | 5,000,000 | 5,000,000 |
Redeemable preferred stock issued (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock issued (in shares) | 52,167,573 | 51,969,203 |
Consolidated Statements of Oper
Consolidated Statements of Operations - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest Income | ||||
Loans, including fees | $ 46,323 | $ 47,989 | $ 94,662 | $ 92,992 |
Available-for-sale securities - taxable | 1,358 | 2,335 | 3,132 | 4,655 |
Available-for-sale securities - tax-exempt | 3,260 | 2,916 | 6,572 | 5,851 |
Deposits with financial institutions | 45 | 676 | 536 | 1,482 |
Dividends on bank stocks | 268 | 276 | 560 | 529 |
Total interest income | 51,254 | 54,192 | 105,462 | 105,509 |
Interest Expense | ||||
Deposits | 8,405 | 17,497 | 22,677 | 33,418 |
Fed funds purchased and repurchase agreements | 46 | 133 | 108 | 427 |
Federal Home Loan Bank Advances | 1,620 | 1,651 | 3,231 | 3,110 |
Other borrowings | 26 | 37 | 61 | 75 |
Total interest expense | 10,097 | 19,318 | 26,077 | 37,030 |
Net Interest Income | 41,157 | 34,874 | 79,385 | 68,479 |
Provision for loan losses | 21,000 | 2,850 | 34,950 | 5,700 |
Net Interest Income after Provision for Loan Losses | 20,157 | 32,024 | 44,435 | 62,779 |
Non-Interest Income | ||||
Gain on sale of available-for-sale debt securities | 320 | 406 | 713 | 433 |
Impairment of premises and equipment held for sale | 0 | (424) | 0 | (424) |
Gain on sale of loans | 0 | 79 | 0 | 158 |
Income from bank-owned life insurance | 453 | 473 | 909 | 940 |
Swap fee income (loss), net | (32) | 159 | (41) | 536 |
Other non-interest income | 350 | 309 | 612 | 469 |
Total non-interest income | 2,634 | 1,672 | 4,729 | 3,317 |
Non-Interest Expense | ||||
Salaries and employee benefits | 14,004 | 14,450 | 28,394 | 29,040 |
Occupancy | 2,045 | 2,062 | 4,130 | 4,221 |
Professional fees | 1,295 | 714 | 1,966 | 1,496 |
Deposit insurance premiums | 1,039 | 881 | 2,055 | 1,718 |
Data processing | 721 | 625 | 1,413 | 1,219 |
Advertising | 223 | 477 | 723 | 1,190 |
Software and communication | 937 | 828 | 1,813 | 1,507 |
Foreclosed assets, net | 1,135 | 19 | 1,154 | 25 |
Goodwill impairment | 7,397 | 0 | 7,397 | 0 |
Other non-interest expense | 2,214 | 1,904 | 4,188 | 4,175 |
Total non-interest expense | 31,010 | 21,960 | 53,233 | 44,591 |
Net Income (Loss) Before Taxes | (8,219) | 11,736 | (4,069) | 21,505 |
Income tax expense (benefit) | (863) | 2,297 | (570) | 2,716 |
Net Income (Loss) | $ (7,356) | $ 9,439 | $ (3,499) | $ 18,789 |
Basic Earnings (Loss) Per Share (in dollars per share) | $ (0.14) | $ 0.21 | $ (0.07) | $ 0.41 |
Diluted Earnings (Loss) Per Share (in dollars per share) | $ (0.14) | $ 0.20 | $ (0.07) | $ 0.40 |
Service charges and fees on customer accounts | ||||
Non-Interest Income | ||||
Non-interest income | $ 647 | $ 211 | $ 1,155 | $ 369 |
ATM and credit card interchange income | ||||
Non-Interest Income | ||||
Non-interest income | $ 896 | $ 459 | $ 1,381 | $ 836 |
Consolidated Statements of Othe
Consolidated Statements of Other Comprehensive Income (Loss) - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (7,356) | $ 9,439 | $ (3,499) | $ 18,789 |
Other Comprehensive Income | ||||
Unrealized gain on available-for-sale debt securities | 3,618 | 9,977 | 12,150 | 22,327 |
Less: income tax | 884 | 2,449 | 2,968 | 5,480 |
Unrealized gain on available-for-sale debt securities, net of income tax | 2,734 | 7,528 | 9,182 | 16,847 |
Reclassification adjustment for realized gains included in income | 320 | 406 | 713 | 433 |
Less: income tax | 78 | 100 | 174 | 107 |
Less: reclassification adjustment for realized gains included in income, net of income tax | 242 | 306 | 539 | 326 |
Other comprehensive income | 2,492 | 7,222 | 8,643 | 16,521 |
Comprehensive Income (Loss) | $ (4,864) | $ 16,661 | $ 5,144 | $ 35,310 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2018 | 1,200,000 | 45,074,322 | ||||
Beginning balance at Dec. 31, 2018 | $ 490,336 | $ 12 | $ 451 | $ 454,512 | $ 38,371 | $ (3,010) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 18,789 | 18,789 | ||||
Change in unrealized appreciation on available-for-sale securities | 16,521 | 16,521 | ||||
Issuance of shares (in shares) | 250,968 | |||||
Issuance of shares | 1,717 | $ 2 | 1,715 | |||
Issuance of shares from equity-based awards (in shares) | 52,351 | |||||
Issuance of shares from equity-based awards | (236) | (236) | ||||
Retired shares (in shares) | (1,200,000) | (10,000) | ||||
Retired shares | (30,155) | $ (12) | (30,088) | (55) | ||
Preferred dividends declared | (175) | (175) | ||||
Employee receivables from sale of stock | 117 | 4 | 113 | |||
Stock-based compensation | 2,245 | 2,245 | ||||
Employee stock purchase plan additions | 36 | 36 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 45,367,641 | ||||
Ending balance at Jun. 30, 2019 | 499,195 | $ 0 | $ 453 | 430,347 | 54,816 | 13,579 |
Beginning balance (in shares) at Mar. 31, 2019 | 0 | 45,202,370 | ||||
Beginning balance at Mar. 31, 2019 | 480,514 | $ 0 | $ 452 | 428,412 | 45,293 | 6,357 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 9,439 | 9,439 | ||||
Change in unrealized appreciation on available-for-sale securities | 7,222 | 7,222 | ||||
Issuance of shares (in shares) | 149,765 | |||||
Issuance of shares | 890 | $ 1 | 889 | |||
Issuance of shares from equity-based awards (in shares) | 15,506 | |||||
Issuance of shares from equity-based awards | (102) | (102) | ||||
Employee receivables from sale of stock | 86 | 2 | 84 | |||
Stock-based compensation | 1,147 | 1,147 | ||||
Employee stock purchase plan additions | (1) | (1) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 45,367,641 | ||||
Ending balance at Jun. 30, 2019 | 499,195 | $ 0 | $ 453 | 430,347 | 54,816 | 13,579 |
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 51,969,203 | ||||
Beginning balance at Dec. 31, 2019 | 601,644 | $ 0 | $ 520 | 519,870 | 64,803 | 16,451 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (3,499) | (3,499) | ||||
Change in unrealized appreciation on available-for-sale securities | 8,643 | 8,643 | ||||
Issuance of shares from equity-based awards (in shares) | 198,370 | |||||
Issuance of shares from equity-based awards | (753) | $ 1 | (754) | |||
Employee receivables from sale of stock | 41 | 1 | 40 | |||
Stock-based compensation | 2,016 | 2,016 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 52,167,573 | ||||
Ending balance at Jun. 30, 2020 | 608,092 | $ 0 | $ 521 | 521,133 | 61,344 | 25,094 |
Beginning balance (in shares) at Mar. 31, 2020 | 0 | 52,098,062 | ||||
Beginning balance at Mar. 31, 2020 | 611,946 | $ 0 | $ 521 | 520,134 | 68,689 | 22,602 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (7,356) | (7,356) | ||||
Change in unrealized appreciation on available-for-sale securities | 2,492 | 2,492 | ||||
Issuance of shares from equity-based awards (in shares) | 69,511 | |||||
Issuance of shares from equity-based awards | (83) | (83) | ||||
Employee receivables from sale of stock | 11 | 11 | ||||
Stock-based compensation | 1,082 | 1,082 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 52,167,573 | ||||
Ending balance at Jun. 30, 2020 | $ 608,092 | $ 0 | $ 521 | $ 521,133 | $ 61,344 | $ 25,094 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net income (loss) | $ (3,499) | $ 18,789 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 2,587 | 2,703 |
Provision for loan losses | 34,950 | 5,700 |
Accretion of discounts and amortization of premiums on securities | 3,063 | 2,535 |
Equity based compensation | 2,016 | 2,281 |
Foreclosed asset impairment | 1,117 | 0 |
Deferred income taxes | (3,853) | 2,056 |
Net realized gains on available-for-sale debt securities | (713) | (433) |
Goodwill impairment | 7,397 | 0 |
Changes in | ||
Interest receivable | (3,683) | (2,611) |
Other assets | (1,284) | (6,172) |
Other liabilities | (2,130) | 5,195 |
Net cash provided by operating activities | 35,968 | 30,043 |
Investing Activities | ||
Net change in loans | (581,641) | (409,602) |
Purchases of available-for-sale securities | (27,312) | (107,948) |
Proceeds from maturities of available-for-sale securities | 58,974 | 26,468 |
Proceeds from sale of available-for-sale securities | 19,052 | 60,254 |
Proceeds (purchase) of premises and equipment, net | (1,658) | 3,014 |
Purchase of restricted equity securities, net | (2,839) | (558) |
Net cash used in investing activities | (535,424) | (428,372) |
Financing Activities | ||
Net increase in demand deposits, savings, NOW and money market accounts | 459,589 | 84,269 |
Net increase (decrease) in time deposits | (79,205) | 291,770 |
Net increase (decrease) in repurchase agreements and federal funds purchased | 34,960 | (49,025) |
Proceeds from Federal Home Loan Bank advances | 118,000 | 45,000 |
Repayment of Federal Home Loan Bank advances | (26,126) | (20,120) |
Retirement of preferred stock | 0 | (30,000) |
Issuance of common shares, net and change in employee receivables | 43 | 1,677 |
Acquisition of common stock for tax withholding obligations | (754) | (235) |
Dividends paid on preferred stock | 0 | (175) |
Net cash provided by financing activities | 506,507 | 323,161 |
Increase (Decrease) in Cash and Cash Equivalents | 7,051 | (75,168) |
Cash and Cash Equivalents, Beginning of Period | 187,320 | 216,541 |
Cash and Cash Equivalents, End of Period | 194,371 | 141,373 |
Supplemental Cash Flows Information | ||
Interest paid | 27,818 | 35,366 |
Income taxes paid | 0 | 775 |
Foreclosed assets in settlement of loans | $ 0 | $ 2,471 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Organization and Nature of Operations CrossFirst Bankshares, Inc. (the “Company”), a Kansas corporation, was incorporated in December 2017. Prior to incorporation, the Company was registered as a limited liability company under the name CrossFirst Holdings, LLC. The Company is a bank holding company whose principal activities are the ownership and management of its wholly-owned subsidiaries, CrossFirst Bank (the “Bank”) and CFSA, LLC (“CFSA”), which holds cash. In addition, CrossFirst Investments, Inc. (“CFI”) is a wholly-owned subsidiary of the Bank, which holds investments in marketable securities. Basis of Presentation The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company, the Bank, CFI and CFSA. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated interim financial statements are unaudited and certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted and should be read in conjunction with the Company’s consolidated financial statements, and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2020. In the opinion of management, the interim financial statements include all adjustments which are of a normal, recurring nature necessary for the fair presentation of the financial position, results of operations, and cash flows of the Company and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the SEC. Except for the accounting changes mentioned under “Coronavirus Aid, Relief, and Economic Security Act” and “Change in Accounting Principle” section below, no other significant changes in the accounting policies of the Company occurred since December 31, 2019, the most recent date financial statements were provided within the Company’s 2019 Form 10-K. The information contained in the financial statements and footnotes for the period ended December 31, 2019 included in the Company’s 2019 Form 10-K should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. Use of Estimates The Company has identified accounting policies and estimates that, due to the difficult, subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of the Company’s financial statements to those judgments and assumptions, are critical to an understanding of the Company’s financial condition and results of operations. Actual results could differ from those estimates. In particular, the novel coronavirus (“COVID-19”) pandemic and resulting impacts to economic conditions, as well as, adverse impacts to the Company’s operations may impact future estimates. The Allowance for Loan and Lease Losses, Deferred Tax Asset, and Fair Value of Financial Instruments are particularly susceptible to significant change. Cash Equivalents The Company had $126 million of cash and cash equivalents at the Federal Reserve Bank of Kansas City as of June 30, 2020. The reserve required at June 30, 2020 was $0. In addition, the Company is at times required to place cash collateral with a third party as part of its back-to-back swap agreements. At June 30, 2020, approximately $31 million was required as cash collateral. Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) The CARES Act allows financial institutions to elect not to consider whether loan modifications relating to the COVID-19 pandemic that they make between March 1, 2020 and the earlier of December 31, 2020 or 60 days after the national emergency related to the COVID-19 pandemic ends are troubled debt restructurings (“TDRs”), which require additional disclosures. The relief can be applied to modifications of loans to borrowers that were not more than 30 days past due as of December 31, 2019. The Company elected to apply the guidance during the first quarter of 2020. The review of loans that meet the criteria is overseen by the Office of the Chief Credit Officer and his team. Loans Individually Evaluated for Impairment Prior to the quarter ended June 30, 2020, loans risk rated substandard or lower were considered impaired and evaluated on an individual basis. As of June 30, 2020, loans risk rated substandard and on accrual were evaluated collectively. The new approach provided a better estimate of potential losses inherent in the substandard portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. The Company’s definition of a substandard credit was unchanged. Substandard loans exhibit a well-defined weakness or weaknesses that jeopardize repayment. A distinct possibility exists that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. As a result, the Company revised its allowance methodology to evaluate substandard, performing loans collectively for impairment as opposed to evaluating these loans individually for impairment. As of June 30, 2020, the change in methodology impacted $200 million of performing, substandard loans that were reviewed on a collective basis. Change in Accounting Principle On January 1, 2020, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which was applied on a prospective basis. A description of the nature and reason for the change in accounting principle is provided below in the recent accounting pronouncements section. On January 1, 2020, the Company adopted FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, which was applied as of the adoption date. A description of the nature and reason for the change in accounting principle is provided below in the recent accounting pronouncements section. Changes Affecting Comparability During the quarter ended June 30, 2020, the Company changed loans individually evaluated for impairment. A discussion regarding this change is provided above under “Loans Individually Evaluated for Impairment” and in Note 4: Loans and Allowance for Loan Losses within the Notes to the Unaudited Consolidated Financial Statements. The Company separated substandard loans into performing and nonperforming categories that were previously consolidated within the loan footnote disclosures. The change in disclosure did not impact the Company's net income during the three or six-months ended June 30, 2019, Balance Sheet at December 31, 2019, Statement of Stockholders’ Equity at December 31, 2019, or the impaired loan information at December 31, 2019 as presented in Note 4: Loans and Allowance for Loan Losses within the Notes to the Unaudited Consolidated Financial Statements. Beginning with the quarter ended March 31, 2020, the Company consolidated the “Other” line item previously included in stockholders’ equity into retained earnings within the Consolidated Balance Sheets and the Consolidated Statements of Stockholders’ Equity. The consolidation was made due to the immateriality of the “Other” line item. The change had no impact on net income or total stockholders’ equity. Initial Public Offering On August 19, 2019, the Company completed its initial public offering (“IPO”) of common stock. The Company issued and sold 5,750,000 shares of common stock at a public offering price of $14.50 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $76 million from the IPO. Certain selling stockholders participated in the offering and sold an aggregate of 1,261,589 shares of common stock at a public offering price of $14.50 per share. The Company did not receive any proceeds from the sales of shares by the selling stockholders. On September 17, 2019, the underwriters partially exercised their option to purchase additional shares. The Company issued and sold 844,362 shares of common stock at a public offering price of $14.50 per share of common stock. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $11 million. As of June 30, 2020, the Company qualified as an emerging growth company (“EGC”) under the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). An EGC may take advantage of reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. Among the reductions and reliefs, the Company elected to extend the transition period for complying with new or revised accounting standards affecting public companies. This means that the financial statements the Company files or furnishes, will not be subject to all new or revised accounting standards generally applicable to public companies for the transition period for so long as the Company remains an EGC or until the Company affirmatively and irrevocably opts out of the extended transition period under the JOBS Act. Recent Accounting Pronouncements The Company has implemented the following ASUs during 2020: Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting June 30, 2020 The ASU provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company had more than $1 billion in loans tied to LIBOR as of June 30, 2020. The Company does not believe the adoption will have a material accounting impact on the Company’s consolidated financial position or results of operations. Additionally, LIBOR fallback language has been included in key loan provisions of new and renewed loans in preparation for transition from LIBOR to the new benchmark rate when such transition occurs. This standard is expected to ease the administrative burden in accounting for the future effects of reference rate reform. The ASU allows the Company to recognize the modification related to LIBOR as a continuation of the old contract, rather than a cancellation of the old contract resulting in a write off of unamortized fees and creation of a new contract. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2020 The ASU simplifies the accounting for income taxes. Among other changes, the ASU: The amendments in the ASU did not have a material impact on the Company’s tax methodology, processes, or the Company’s financial statements. Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework January 1, 2020 Improves the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information. The amendments modify certain disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement. The adoption did not have a material impact to the financial statements. ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment January 1, 2020 Eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. An entity should perform an annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. On the date of adoption there was no impact to the financial statements. The Company has provided updates to the following ASUs that have not yet been adopted. A complete list of recent, applicable accounting pronouncements was provided in the Company’s 2019 Form 10-K: Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-13 Financial Instruments-Credit Losses If we maintain our EGC status, the Company is not required to implement this standard until January 2023. The Company will continue to monitor its progress and the requirements related to adoption. Requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The Company established a committee of individuals from applicable departments to oversee the implementation process. ASU 2016-02 Leases (Topic 842) The Company expects to implement this standard in 2021 if EGC status is maintained. If the Company loses its EGC status in 2020, the Company would be required to implement the ASU as of the beginning of 2020. Requires lessees and lessors to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The update requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach with the option to elect certain practical expedients. The update will also increase disclosures around leases, including qualitative and specific quantitative measures. The Company expects to apply the update as of the beginning of the period of adoption and the Company does not plan to restate comparative periods. The Company expects to elect certain optional practical expedients. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The following table presents the computation of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands except per share data) Earnings (Loss) per Share Net income (loss) $ (7,356) $ 9,439 $ (3,499) $ 18,789 Less: preferred stock dividends — — — 175 Net income (loss) available to common stockholders $ (7,356) $ 9,439 $ (3,499) $ 18,614 Weighted average common shares 52,104,994 45,236,264 52,088,239 45,165,248 Earnings (loss) per share $ (0.14) $ 0.21 $ (0.07) $ 0.41 Dilutive Earnings (Loss) Per Share Net income (loss) available to common stockholders $ (7,356) $ 9,439 $ (3,499) $ 18,614 Weighted average common shares 52,104,994 45,236,264 52,088,239 45,165,248 Effect of dilutive shares — 975,516 — 994,577 Weighted average dilutive common shares 52,104,994 46,211,780 52,088,239 46,159,825 Diluted earnings (loss) per share $ (0.14) $ 0.20 $ (0.07) $ 0.40 Stock-based awards not included because to do so would be antidilutive 2,417,205 403,722 2,417,205 424,972 |
Securities
Securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Available-for-Sale Debt and Equity Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of period end available-for-sale debt and equity securities consisted of the following: June 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ 139,615 $ 4,983 $ — $ 144,598 Collateralized mortgage obligations - GSE residential 94,189 1,472 20 95,641 State and political subdivisions 429,603 26,966 255 456,314 Corporate bonds 1,212 86 4 1,294 Total available-for-sale debt securities 664,619 33,507 279 697,847 Equity securities Mutual funds 2,183 53 — 2,236 Total equity securities 2,183 53 — 2,236 Total available-for-sale securities $ 666,802 $ 33,560 $ 279 $ 700,083 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ 151,037 $ 1,668 $ 193 $ 152,512 Collateralized mortgage obligations - GSE residential 128,876 625 289 129,212 State and political subdivisions 436,448 19,996 104 456,340 Corporate bonds 1,321 88 — 1,409 Total available-for-sale debt securities 717,682 22,377 586 739,473 Equity securities Mutual funds 2,190 — 29 2,161 Total equity securities 2,190 — 29 2,161 Total available-for-sale securities $ 719,872 $ 22,377 $ 615 $ 741,634 The carrying value of securities pledged as collateral was $56 million and $41 million at June 30, 2020 and December 31, 2019, respectively. The amortized cost and fair value of available-for-sale debt securities at June 30, 2020, by contractual maturity, are shown below: June 30, 2020 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ 56 $ 220 $ 139,339 $ 139,615 Estimated fair value $ — $ 57 $ 236 $ 144,305 $ 144,598 Weighted average yield (2) — % 4.55 % 3.91 % 2.04 % 2.04 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,507 $ 91,682 $ 94,189 Estimated fair value $ — $ — $ 2,755 $ 92,886 $ 95,641 Weighted average yield (2) — % — % 2.77 % 1.62 % 1.65 % State and political subdivisions Amortized cost $ 653 $ 7,234 $ 61,170 $ 360,546 $ 429,603 Estimated fair value $ 656 $ 7,419 $ 66,034 $ 382,205 $ 456,314 Weighted average yield (2) 8.24 % 5.33 % 3.58 % 3.10 % 3.22 % Corporate bonds Amortized cost $ — $ 345 $ 867 $ — $ 1,212 Estimated fair value $ — $ 358 $ 936 $ — $ 1,294 Weighted average yield (2) — % 5.89 % 5.68 % — % 5.74 % Total available-for-sale debt securities Amortized cost $ 653 $ 7,635 $ 64,764 $ 591,567 $ 664,619 Estimated fair value $ 656 $ 7,834 $ 69,961 $ 619,396 $ 697,847 Weighted average yield (2) 8.24 % 5.34 % 3.53 % 2.63 % 2.75 % (1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. (2) Yields are calculated based on amortized cost. June 30, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities (Dollars in thousands) Available-for-Sale Debt Securities Mortgage-backed - GSE residential $ — $ — — $ — $ — — $ — $ — — Collateralized mortgage obligations - GSE residential 12,050 20 4 — — — 12,050 20 4 State and political subdivisions 11,471 255 11 27 — 1 11,498 255 12 Corporate bonds 456 4 1 — — — 456 4 1 Total temporarily impaired debt securities $ 23,977 $ 279 16 $ 27 $ — 1 $ 24,004 $ 279 17 December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities (Dollars in thousands) Available-for-Sale Debt Securities Mortgage-backed - GSE residential $ 7,959 $ 38 2 $ 20,396 $ 155 4 $ 28,355 $ 193 6 Collateralized mortgage obligations - GSE residential 48,980 199 7 8,622 90 9 57,602 289 16 State and political subdivisions 21,412 102 11 167 2 2 21,579 104 13 Corporate bonds 530 — 1 — — — 530 — 1 Total temporarily impaired debt securities $ 78,881 $ 339 21 $ 29,185 $ 247 15 $ 108,066 $ 586 36 As of June 30, 2020, the unrealized losses on investments in state and political subdivisions were caused by interest rate changes and adjustments in credit ratings. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The unrealized losses on the Company’s investments in collateralized mortgage-backed securities and other obligations were caused by interest rate changes and market assumptions about prepayment speeds. As of December 31, 2019, the unrealized losses on the Company’s investments in state and political subdivisions were caused by interest rate changes and adjustments in credit ratings. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The unrealized losses on the Company’s investments in collateralized mortgage-backed securities and obligations were caused by interest rate changes and market assumptions about prepayment speeds. The Company expects to recover the amortized cost basis over the term of the securities. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be OTTI at June 30, 2020. Gains and losses on the sale of debt securities are recorded on the trade date and are determined using the specific identification method. Gross gains of $761 thousand and $453 thousand and gross losses of $47 thousand and $20 thousand resulting from sales of available-for-sale securities were realized for the six months ended June 30, 2020 and 2019, respectively. The gross gains as of June 30, 2020, included $75 thousand related to a previously disclosed OTTI municipal security that was settled in 2020. Equity Securities Equity securities consist of Community Reinvestment Act mutual funds. The fair value of the equity securities was $2 million at both June 30, 2020 and December 31, 2019. The following is a summary of the recorded fair value and the unrealized and realized gains and losses recognized in net income on available-for-sale equity securities: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Net gains recognized during the reporting period on equity securities $ 18 $ 30 $ 53 $ 56 Less: net gains recognized during the reporting period on equity securities sold during the reporting period — — — — Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ 18 $ 30 $ 53 $ 56 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses Categories of loans at June 30, 2020 and December 31, 2019 include: June 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 1,284,919 $ 1,356,817 Energy 390,346 408,573 Commercial real estate 1,141,277 1,024,041 Construction and land development 661,691 628,418 Residential real estate 536,270 398,695 Paycheck Protection Program (“PPP”) 369,022 — Consumer 45,716 45,163 Gross loans 4,429,241 3,861,707 Less: Allowance for loan losses 71,185 56,896 Less: Net deferred loan fees and costs 16,017 9,463 Net loans $ 4,342,039 $ 3,795,348 Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the loan balance is not collectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of its ability to collect the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers all loans on accrual and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process and loan categories. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Company evaluates the loan risk grading system definitions, portfolio segment definitions, and allowance for loan loss methodology on an ongoing basis. During the quarter ended June 30, 2020, the Company distinguished between performing and nonperforming substandard loans, as previously discussed in Note 1: Nature of Operations and Summary of Significant Accounting Policies. In addition, the Company separated out PPP loans that are 100% guaranteed by the Small Business Administration (“SBA”). No additional changes to loan definitions, segmentation, and Allowance for Loan Losses (“ALLL”) methodology occurred during the second quarter of 2020. The following tables summarize the activity in the allowance for loan losses by portfolio segment and disaggregated based on the Company’s impairment methodology. The allocation in one portfolio segment does not preclude its availability to absorb losses in other segments: Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Three months ended June 30, 2020 Allowance for loan losses Beginning balance $ 21,129 $ 7,599 $ 12,623 $ 5,021 $ 4,687 $ — $ 399 $ 51,458 Provision charged to expense 5,499 10,773 4,276 (2) 370 — 84 21,000 Charge-offs (87) (1,000) — — (189) — — (1,276) Recoveries 2 — — — — — 1 3 Ending balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Three months ended June 30, 2019 Allowance for loan losses Beginning balance $ 20,506 $ 7,090 $ 7,471 $ 2,585 $ 2,047 $ — $ 302 $ 40,001 Provision charged to expense 2,468 210 62 17 91 — 2 2,850 Charge-offs — — — — — — (1) (1) Recoveries 1 — — — — — 1 2 Ending balance $ 22,975 $ 7,300 $ 7,533 $ 2,602 $ 2,138 $ — $ 304 $ 42,852 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Six months ended June 30, 2020 Allowance for loan losses Beginning balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Provision charged to expense 8,771 13,085 8,814 1,503 2,511 — 266 34,950 Charge-offs (18,165) (2,278) — — (189) — (104) (20,736) Recoveries 73 — — — — — 2 75 Ending balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Six months ended June 30, 2019 Allowance for loan losses Beginning balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 Provision charged to expense 7,631 (3,538) 778 127 674 — $ 28 5,700 Charge-offs (1,254) — — — — — (11) (1,265) Recoveries 14 576 — — — — 1 591 Ending balance $ 22,975 $ 7,300 $ 7,533 $ 2,602 $ 2,138 $ — $ 304 $ 42,852 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) June 30, 2020 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 2,933 $ 1,942 $ 1,704 $ — $ 413 $ — $ — $ 6,992 Collectively evaluated for impairment $ 23,610 $ 15,430 $ 15,195 $ 5,019 $ 4,455 $ — $ 484 $ 64,193 Ending balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Allocated to loans: Individually evaluated for impairment $ 11,831 $ 15,532 $ 10,909 $ — $ 6,981 $ — $ 249 $ 45,502 Collectively evaluated for impairment $ 1,273,088 $ 374,814 $ 1,130,368 $ 661,691 $ 529,289 $ 369,022 $ 45,467 $ 4,383,739 Ending balance $ 1,284,919 $ 390,346 $ 1,141,277 $ 661,691 $ 536,270 $ 369,022 $ 45,716 $ 4,429,241 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) December 31, 2019 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 19,942 $ 1,949 $ 210 $ — $ 197 $ — $ — $ 22,298 Collectively evaluated for impairment $ 15,922 $ 4,616 $ 7,875 $ 3,516 $ 2,349 $ — $ 320 $ 34,598 Ending balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Allocated to loans: Individually evaluated for impairment $ 70,876 9,744 $ 10,492 $ — $ 2,388 $ — $ — $ 93,500 Collectively evaluated for impairment $ 1,285,941 $ 398,829 $ 1,013,549 $ 628,418 $ 396,307 $ — $ 45,163 $ 3,768,207 Ending balance $ 1,356,817 $ 408,573 $ 1,024,041 $ 628,418 $ 398,695 $ — $ 45,163 $ 3,861,707 Credit Risk Profile The Company analyzes its loan portfolio based on internal rating categories (grades 1 - 8), portfolio segmentation and payment activity. These categories are utilized to develop the associated allowance for loan losses. A description of the loan grades and segments follows: Loan Grades • Pass (risk rating 1-4) - Considered satisfactory. Includes borrowers that generally maintain good liquidity and financial condition or the credit is currently protected with sales trends remaining flat or declining. Most ratios compare favorably with industry norms and Company policies. Debt is programmed and timely repayment is expected. • Special Mention (risk rating 5) - Borrowers generally exhibit adverse trends in operations or an imbalanced position in their balance sheet that has not reached a point where repayment is jeopardized. Credits are currently protected but, if left uncorrected, the potential weaknesses may result in deterioration of the repayment prospects for the credit or in the Company’s credit or lien position at a future date. These credits are not adversely classified and do not expose the Company to enough risk to warrant adverse classification. • Substandard (risk rating 6) - Credits generally exhibit well-defined weakness(es) that jeopardize repayment. Credits are inadequately protected by the current worth and paying capacity of the obligor or of the collateral pledged. A distinct possibility exists that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified substandard. Substandard loans include both performing and nonperforming loans and are broken out in the table below. • Doubtful (risk rating 7) - Credits which exhibit weaknesses inherent in a substandard credit with the added characteristic that these weaknesses make collection or liquidation in full highly questionable and improbable based on existing facts, conditions and values. Because of reasonably specific pending factors, which may work to the advantage and strengthening of the assets, classification as a loss is deferred until its more exact status may be determined. • Loss (risk rating 8) - Credits which are considered uncollectible or of such little value that their continuance as a bankable asset is not warranted. Loan Portfolio Segments • Commercial - Includes loans to commercial customers for use in financing working capital needs, equipment purchases and expansions. Repayment is primarily from the cash flow of a borrower’s principal business operation. Credit risk is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. • Energy - Includes loans to oil and natural gas customers for use in financing working capital needs, exploration and production activities, and acquisitions. The loans are repaid primarily from the conversion of crude oil and natural gas to cash. Credit risk is driven by creditworthiness of a borrower and the economic conditions that impact the cash flow stability from business operations. Energy loans are typically collateralized with the underlying oil and gas reserves. • 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 are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Credit risk may be impacted by the creditworthiness of a borrower, property values and the local economies in the borrower’s market areas. • 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 include permanent loans, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are 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. Credit risk may be impacted by the creditworthiness of a borrower, property values and the local economies in the borrower’s market areas. • Residential Real Estate - The loans are generally secured by owner-occupied 1-4 family residences or multifamily properties. Repayment of these loans is primarily dependent on the personal income and credit rating of the borrowers or underlying tenants. Credit risk in these loans can be impacted by economic conditions within or outside the borrower’s market areas that might impact either property values, a borrower’s personal income, or residents’ income. • PPP - The loans were established by the CARES Act which authorized forgivable loans to small businesses to pay their employees during the COVID-19 pandemic. The program requires all loan terms to be the same for everyone. The loans are 100 percent guaranteed by the SBA and repayment is primarily dependent on the borrower’s cash flow or SBA repayment approval. • Consumer - The loan portfolio consists of revolving lines of credit and various term loans such as automobile loans and loans for other personal purposes. Repayment is primarily dependent on the personal income and credit rating of the borrowers. Credit risk is driven by consumer economic factors (such as unemployment and general economic conditions in the borrower’s market area) and the creditworthiness of a borrower. The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating categories (grades 1 - 8), portfolio segmentation, and payment activity: Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) June 30, 2020 Commercial $ 1,143,316 $ 53,411 $ 77,226 $ 7,662 $ 3,304 $ — $ 1,284,919 Energy 210,557 71,837 92,568 10,997 4,387 — 390,346 Commercial real estate 1,069,590 39,332 25,355 6,187 813 — 1,141,277 Construction and land development 655,200 5,330 1,161 — — — 661,691 Residential real estate 528,510 540 3,285 3,935 — — 536,270 PPP 369,022 — — — — — 369,022 Consumer 45,467 — — 249 — — 45,716 $ 4,021,662 $ 170,450 $ 199,595 $ 29,030 $ 8,504 $ — $ 4,429,241 Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) December 31, 2019 Commercial $ 1,258,952 $ 27,069 $ 38,666 $ 32,130 $ — $ — $ 1,356,817 Energy 392,233 9,460 2,340 — 4,540 — 408,573 Commercial real estate 1,007,921 9,311 5,746 120 943 — 1,024,041 Construction and land development 628,418 — — — — — 628,418 Residential real estate 394,495 1,789 469 1,942 — — 398,695 PPP — — — — — — — Consumer 45,163 — — — — — 45,163 $ 3,727,182 $ 47,629 $ 47,221 $ 34,192 $ 5,483 $ — $ 3,861,707 Loan Portfolio Aging Analysis The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2020 and December 31, 2019: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) June 30, 2020 Commercial $ 4,645 $ 3,391 $ 7,315 $ 15,351 $ 1,269,568 $ 1,284,919 $ — Energy — 16,918 4,440 21,358 368,988 390,346 — Commercial real estate 8,009 230 4,481 12,720 1,128,557 1,141,277 — Construction and land development 194 — — 194 661,497 661,691 — Residential real estate 1,357 — 3,915 5,272 530,998 536,270 220 PPP — — — — 369,022 369,022 — Consumer — 137 — 137 45,579 45,716 — $ 14,205 $ 20,676 $ 20,151 $ 55,032 $ 4,374,209 $ 4,429,241 $ 220 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) December 31, 2019 Commercial $ 1,091 $ 276 $ 30,911 $ 32,278 $ 1,324,539 $ 1,356,817 $ 37 Energy 2,340 — 4,593 6,933 401,640 408,573 53 Commercial real estate 316 — 4,589 4,905 1,019,136 1,024,041 4,501 Construction and land development 196 — — 196 628,222 628,418 — Residential real estate 2,347 — 1,919 4,266 394,429 398,695 — PPP — — — — — — — Consumer 2 254 — 256 44,907 45,163 — $ 6,292 $ 530 $ 42,012 $ 48,834 $ 3,812,873 $ 3,861,707 $ 4,591 Impaired Loans A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. The intent of concessions is to maximize collection. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. The following tables present loans individually evaluated for impairment, including all restructured and formerly restructured loans, for the periods ended June 30, 2020 and December 31, 2019: Unpaid Recorded Balance Principal Balance Specific Allowance (Dollars in thousands) June 30, 2020 Loans without a specific valuation Commercial $ 70 $ 70 $ — Energy — — — Commercial real estate 763 854 — Construction and land development — — — Residential real estate 5,404 5,404 — PPP — — — Consumer 249 249 — Loans with a specific valuation Commercial 11,761 29,710 2,933 Energy 15,532 18,244 1,942 Commercial real estate 10,146 10,146 1,704 Construction and land development — — — Residential real estate 1,577 1,577 413 PPP — — — Consumer — — — Total Commercial 11,831 29,780 2,933 Energy 15,532 18,244 1,942 Commercial real estate 10,909 11,000 1,704 Construction and land development — — — Residential real estate 6,981 6,981 413 PPP — — — Consumer 249 249 — $ 45,502 $ 66,254 $ 6,992 Unpaid Recorded Balance Principal Balance Specific Allowance (Dollars in thousands) December 31, 2019 Loans without a specific valuation Commercial $ 35,846 $ 35,846 $ — Energy 2,864 2,864 — Commercial real estate 9,464 9,464 — Construction and land development — — — Residential real estate 2,139 2,139 — PPP — — — Consumer — — — Loans with a specific valuation Commercial 35,030 40,030 19,942 Energy 6,880 9,880 1,949 Commercial real estate 1,028 1,028 210 Construction and land development — — — Residential real estate 249 249 197 PPP — — — Consumer — — — Total Commercial 70,876 75,876 19,942 Energy 9,744 12,744 1,949 Commercial real estate 10,492 10,492 210 Construction and land development — — — Residential real estate 2,388 2,388 197 PPP — — — Consumer — — — $ 93,500 $ 101,500 $ 22,298 The table below shows interest income recognized during the three and six month periods ended June 30, 2020 and 2019 for impaired loans, including all restructured and formerly restructured loans, held at the end of each period: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 27 $ 781 $ 88 $ 1,564 Energy 46 53 210 109 Commercial real estate 58 278 135 532 Construction and land development — — — 1 Residential real estate 35 10 74 21 PPP — — — — Consumer — — — — Total interest income recognized $ 166 $ 1,122 $ 507 $ 2,227 The table below shows the three and six month average balance of impaired loans as of June 30, 2020 and 2019 by loan category for impaired loans, including all restructured and formerly restructured loans, held at the end of each period: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 11,793 $ 50,732 $ 19,002 $ 74,259 Energy 16,798 12,534 17,527 13,850 Commercial real estate 10,958 13,779 11,044 14,661 Construction and land development — 50 — 25 Residential real estate 7,171 2,665 6,953 2,428 PPP — — — — Consumer 251 — 253 — Total average impaired loans $ 46,971 $ 79,760 $ 54,779 $ 105,223 Non-accrual Loans Nonperforming loans are loans for which the Company does not record interest income. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date, if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on non-accrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table presents the Company’s non-accrual loans by loan category at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 10,966 $ 32,130 Energy 15,384 4,540 Commercial real estate 7,000 1,063 Construction and land development — — Residential real estate 3,935 1,942 PPP — — Consumer 249 — Total non-accrual loans $ 37,534 $ 39,675 Troubled Debt Restructurings Restructured loans are those extended to borrowers who are experiencing financial difficulty and who have been granted a concession, excluding loan modifications as a result of the COVID-19 pandemic. The modification of terms typically includes the extension of maturity, reduction or deferment of monthly payment, or reduction of the stated interest rate. The table below presents loans restructured, excluding loans restructured as a result of the COVID-19 pandemic, during the three and six months ended June 30, 2020 and 2019, including the post-modification outstanding balance and the type of concession made: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial - Interest rate reduction $ — $ — $ 3,171 $ — - Reduction of monthly payment — — — 994 - Extension of maturity date — 30,005 — 30,005 Energy - Extension of maturity date — — 2,340 — Commercial real estate - Reduction of monthly payment — — — 3,767 Residential real estate - Payment deferral 65 — 65 — Total troubled debt restructurings during applicable period $ 65 $ 30,005 $ 5,576 $ 34,766 As of June 30, 2020 and December 31, 2019, the Company had $749 thousand and $934 thousand, respectively, in unfunded commitments to borrowers whose terms have been modified in TDRs. For the three and six-month periods ended June 30, 2020, the modifications related to the TDRs above did not impact the allowance for loan losses because the loans were previously impaired and evaluated on an individual basis or enough collateral was obtained to provide an additional commitment. The balance of restructured loans, excluding loans restructured as a result of the COVID-19 pandemic, is provided below as of June 30, 2020 and December 31, 2019. In addition, the balance of those loans that are in default at any time during the past twelve months at June 30, 2020 and December 31, 2019 is provided below: June 30, 2020 December 31, 2019 Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) (Dollars in thousands) Commercial 6 $ 9,657 $ 842 7 $ 31,770 $ 831 Energy 3 4,032 — 2 2,864 — Commercial real estate 3 4,749 — 3 4,909 — Construction and land development — — — — — — Residential real estate 2 3,065 — — — — PPP — — — — — — Consumer — — — — — — Total troubled debt restructured loans 14 $ 21,503 $ 842 12 $ 39,543 $ 831 (1) Default is considered to mean 90 days or more past due as to interest or principal. The TDRs above had an allowance of $3 million and $18 million as of June 30, 2020 and December 31, 2019, respectively. |
Derivatives and Hedging
Derivatives and Hedging | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Derivatives and HedgingDerivatives not designated as hedges are not speculative and result from a service the Company provides to clients. The Company executes interest rate swaps with customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. The gains and losses are included in “other assets” on the Statement of Cash Flows. During 2019, the Company changed an input associated with the fair market value related to derivatives not designated as hedges. The model utilized to calculate the non-performance risk, also known as the credit valuation adjustment, or CVA, was adjusted from a more conservative default methodology to a review of the historical defaults recognized by the Company. Management believes this change better aligns with the Company’s credit methodology and underwriting standards. As of June 30, 2020 and December 31, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: June 30, 2020 December 31, 2019 Product Number of Instruments Notional Amount Number of Instruments Notional Amount (Dollars in thousands) Back-to-back swaps 58 $ 487,255 56 $ 380,050 The table below presents the fair value of the Company’s derivative financial instruments and their classification on the Balance Sheet as of June 30, 2020 and December 31, 2019: Asset Derivatives Liability Derivatives Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Location 2020 2019 Location 2020 2019 (Dollars in thousands) Derivatives not designated as hedging instruments Interest rate products Other assets $ 29,302 $ 9,838 Other liabilities $ 29,432 $ 9,907 The effect of the Company’s derivative financial instruments that are not designated as hedging instruments are reported on the Consolidated Statements of Operations as swap fee income, net. The effect of the Company’s derivative financial instruments gain and loss are reported on the Consolidated Statements of Cash Flows within other assets and other liabilities. The tables below show a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2020 and December 31, 2019: June 30, 2020 (Dollars in thousands) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Offsetting of derivative assets Derivatives $ 29,302 $ — $ 29,302 $ 8 $ — $ 29,294 Offsetting of derivative liabilities Derivatives $ 29,432 $ — $ 29,432 $ 8 $ — $ 29,424 December 31, 2019 (Dollars in thousands) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Offsetting of derivative assets Derivatives $ 9,838 $ — $ 9,838 $ 97 $ — $ 9,741 Offsetting of derivative liabilities Derivatives $ 9,907 $ — $ 9,907 $ 97 $ — $ 9,810 The net presentation above can be reconciled to the tabular disclosure of fair value. The Company has agreements with some of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the Company could be considered in default. As of June 30, 2020, the Company had minimum collateral posting thresholds with certain of its derivative counterparties and had posted collateral of $31 million. If the Company had breached any of the underlying provisions at June 30, 2020, it could have been required to settle its obligations under the agreements at their termination value of $30 million. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In accordance with GAAP, the Company performs annual tests to identify impairment of goodwill. The tests are required to be performed annually and more frequently if events or circumstances indicate a potential impairment may exist. The Company compares the fair value of the reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to that excess. The Tulsa, Oklahoma market represented the reporting unit and included all goodwill previously recorded. As a result of the recent economic conditions resulting from the COVID-19 pandemic and oil market volatility, the Company conducted a June 30, 2020 interim goodwill impairment test. The interim test required a goodwill impairment charge of $7 million, representing full impairment of goodwill. The primary causes of the goodwill impairment were economic conditions, volatility in the market capitalization of the Company, increased loan provision in light of the COVID-19 pandemic, and other changes in key variables driven by the uncertain macro-environment that when combined, resulted in the fair value of the reporting unit being less than the carrying value. The fair value of the reporting unit was determined using a combination of: (i) the capitalization of earnings method, an income approach, and (ii) the public company method, a market approach. The income approach estimated fair value by determining the cash flow in a single period, adjusted for growth that is adjusted by a capitalization rate. The market approach estimated fair value by averaging the price-to-book multiples from peer, public banks and adding a control premium. The Company conducted an interim impairment test of its core deposit intangible (“CDI”) as of June 30, 2020. The Company used an income approach to calculate a CDI fair market value. The results indicated the CDI was not impaired as of June 30, 2020. Fair value determinations require considerable judgment and are sensitive to changes in underlying assumptions, estimates, and market factors. Estimating the fair value of individual reporting units requires management to make assumptions and estimates regarding the Company’s future plans, as well as industry, economic, and regulatory conditions. These assumptions and estimates include estimated future cash flows, income tax rates, discount rates, growth rates, and other market factors. The following table summarizes the change in the Company’s goodwill and CDI for the six-months ended June 30, 2020: Goodwill Core Deposit Intangible Total Intangible Assets (Dollars in thousands) Balance at December 31, 2019 $ 7,397 $ 297 $ 7,694 Impairment (7,397) — (7,397) Amortization — (50) (50) Balance at June 30, 2020 $ — $ 247 $ 247 |
Time Deposits and Borrowings
Time Deposits and Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift [Abstract] | |
Time Deposits and Borrowings | Time Deposits and Borrowings The scheduled maturities, excluding interest, of the Company’s borrowings at June 30, 2020 were as follows: June 30, 2020 Within One Year One to Two Years Two to Three Years Three to Four Years Four to Five Years After Five Years Total (Dollars in thousands) Time deposits $ 932,443 $ 97,992 $ 93,074 $ 36,085 $ 781 $ 166 $ 1,160,541 Fed funds purchased & repurchase agreements 49,881 — — — — — 49,881 FHLB borrowings 163,000 21,500 46,017 — 5,100 215,000 450,617 Trust preferred securities (1) — — — — — 942 942 $ 1,145,324 $ 119,492 $ 139,091 $ 36,085 $ 5,881 $ 216,108 $ 1,661,981 |
Change in Accumulated Other Com
Change in Accumulated Other Comprehensive Income ("AOCI") | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Change in Accumulated Other Comprehensive Income ("AOCI") | Change in Accumulated Other Comprehensive Income (“AOCI”) Amounts reclassified from AOCI and the affected line items in the consolidated Statements of Operations during the three and six months ended June 30, 2020 and 2019, were as follows: Three Months Ended Six Months Ended June 30, June 30, Affected Line Item in the 2020 2019 2020 2019 Statements of Operations (Dollars in thousands) Unrealized gains on available-for-sale securities $ 320 $ 406 $ 713 $ 433 Gain on sale of available-for-sale securities Amount reclassified before tax 320 406 713 433 Less: tax effect 78 100 174 107 Income tax expense Net reclassified amount $ 242 $ 306 $ 539 $ 326 |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Management believes that, as of June 30, 2020, the Company and the Bank met all capital adequacy requirements to which they are subject. The capital rules require us to maintain a 2.5% capital conservation buffer with respect to Common Equity Tier I capital, Tier I capital to risk-weighted assets, and total capital to risk-weighted assets, which is included in the column “Minimum Capital Required - Basel III Fully Phased-In” within the table below. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, as well as certain discretionary bonus payments to executive officers. Actual Minimum Capital Required - Basel III Fully Phased-In Required to be Considered Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2020 Total Capital to Risk-Weighted Assets Consolidated $ 642,345 13.3 % $ 508,386 10.5 % N/A N/A Bank 591,096 12.2 508,256 10.5 $ 484,053 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 581,634 12.0 411,551 8.5 N/A N/A Bank 530,458 11.0 411,445 8.5 387,242 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 580,692 12.0 338,924 7.0 N/A N/A Bank 530,458 11.0 338,837 7.0 314,634 6.5 Tier I Capital to Average Assets Consolidated 581,634 10.7 216,445 4.0 N/A N/A Bank $ 530,458 9.8 % $ 216,457 4.0 % $ 270,571 5.0 % December 31, 2019 Total Capital to Risk-Weighted Assets Consolidated $ 633,228 13.4 % $ 495,095 10.5 % N/A N/A Bank 581,600 12.3 494,954 10.5 $ 471,385 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 576,332 12.2 400,791 8.5 N/A N/A Bank 524,704 11.1 400,677 8.5 377,108 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 575,411 12.2 330,063 7.0 N/A N/A Bank 524,704 11.1 329,970 7.0 306,400 6.5 Tier I Capital to Average Assets Consolidated 576,332 12.1 191,099 4.0 N/A N/A Bank $ 524,704 11.0 % $ 191,170 4.0 % $ 238,963 5.0 % |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationThe Company issues stock-based compensation in the form of nonvested restricted stock and stock appreciation rights under the 2018 Omnibus Equity Incentive Plan (“Omnibus Plan”). The Omnibus Plan will expire on the tenth anniversary of its effective date. In addition, the Company has an Employee Stock Purchase Plan that was suspended effective April 1, 2019 and was subsequently reinstated during the third quarter of 2020. The aggregate number of shares authorized for future issuance under the Omnibus Plan is 1,956,634 shares as of June 30, 2020. The table below summarizes the stock-based compensation for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Stock appreciation rights $ 238 $ 271 $ 494 $ 530 Performance based stock awards 22 155 96 250 Restricted stock units and awards 822 721 1,426 1,465 Employee stock purchase plan — (1) — 36 Total stock-based compensation $ 1,082 $ 1,146 $ 2,016 $ 2,281 Performance Based Stock Awards (“PBSAs”) The Company awards PBSAs to key officers of the Company. The stock settled awards are typically granted annually as determined by the Compensation Committee. The performance based shares typically cliff-vest at the end of three years based on attainment of certain performance metrics developed by the Compensation Committee. The ultimate number of shares issuable under each performance award is the product of the award target and the award payout percentage given the level of achievement. The award payout percentages by level of achievement range between 0% of target and 150% of target. During the six months ended June 30, 2020, the Company granted 41,283 PBSAs. The performance metrics include three year cumulative net income and return on average assets. The following table summarizes the status of and changes in the performance-based awards: Performance Based Stock Awards Number of Shares Weighted-Average Grant Date Fair Value Unvested, January 1, 2020 192,248 $9.88 Granted 41,283 13.55 Vested 0 0.00 Forfeited 0 0.00 Unvested, June 30, 2020 233,531 $10.53 Unrecognized stock-based compensation related to the performance awards issued through June 30, 2020 was $622 thousand and is expected to be recognized over 2.3 years. Restricted Stock Units (“RSUs”) and Restricted Stock Awards (“RSAs”) The Company issues RSUs and RSAs to provide additional incentives to key officers, employees, and nonemployee directors. Awards are typically granted annually as determined by the Compensation Committee. The service based RSUs typically cliff-vest at the end of three years for awards issued prior to 2019 and vest in equal amounts over three years for all other RSUs. The service based RSAs typically cliff-vest after one year. The following table summarizes the status of and changes in the RSUs and RSAs: Restricted Stock Units and Awards Number of Shares Weighted-Average Grant Date Fair Value Unvested, January 1, 2020 340,780 $15.35 Granted 293,297 11.84 Vested (106,146) 12.58 Forfeited (5,952) 14.25 Unvested, June 30, 2020 521,979 $13.41 Unrecognized stock-based compensation related to the RSUs and RSAs issued through June 30, 2020 was $5 million and is expected to be recognized over 1.8 years. |
Income Tax
Income Tax | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax An income tax expense (benefit) reconciliation at the statutory rate to the Company’s actual income tax expense (benefit) is shown below: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Computed at the statutory rate (21%) $ (1,727) $ 2,465 $ (855) $ 4,516 Increase (decrease) resulting from Tax-exempt income (779) (712) (1,569) (1,425) Nondeductible expenses 34 64 98 137 State tax credit — — — (1,361) State income taxes 39 519 181 960 Equity based compensation 13 (6) 39 (61) Goodwill impairment 1,553 — 1,553 — Other adjustments 4 (33) (17) (50) Actual tax expense (benefit) $ (863) $ 2,297 $ (570) $ 2,716 The tax effects of temporary differences related to deferred taxes shown on the consolidated Balance Sheets are presented below: June 30, 2020 December 31, 2019 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 17,426 $ 13,928 Lease incentive 279 294 Impairment of available-for-sale securities — 493 Valuation allowance on real estate 273 — Loan fees 3,921 2,317 Net operating loss carryover 353 339 Accrued expenses 1,016 2,131 Deferred compensation 2,213 2,444 State tax credit 2,842 3,287 Other 431 81 Total deferred tax asset 28,754 25,314 Deferred tax liability Fair market value adjustments - trust preferred securities (344) (348) Net unrealized gain on securities available-for-sale (8,134) (5,339) FHLB stock basis (1,133) (996) Premises and equipment (3,303) (3,620) Other (999) (1,229) Total deferred tax liability (13,913) (11,532) Net deferred tax asset $ 14,841 $ 13,782 CARES Act The CARES Act, which was enacted on March 27, 2020 in the U.S., includes many measures to assist companies, including temporary changes to income and non-income-based tax laws. Some of the key tax-related provisions of the bill include: • Allowing NOLs originating in 2018, 2019 or 2020 to be carried back five years; and • Increasing the net interest expense deduction limit to 50% of adjusted taxable income from 30% for tax years beginning January 1, 2019 and 2020. • The Company would be able to carry back a portion of a net operating loss if incurred during 2020 to offset income from the prior year. • The Company continues to analyze the potential impact of this legislation on its financial position and results of operations. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Financial Instruments | Disclosures about Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. 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 supported by little or no market activity and significant to the fair value of the assets or liabilities. Recurring Measurements The following list presents the assets and liabilities recognized in the accompanying consolidated Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019: Fair Value Description Valuation Hierarchy Level Where Fair Value Balance Can Be Found Available-for-Sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Level 2 Note 3: Securities Derivatives Fair value of the interest rate swaps is obtained from independent pricing services based on quoted market prices for similar derivative contracts. Level 2 Note 5: Derivatives and Hedging Nonrecurring Measurements The following tables present assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019: June 30, 2020 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Dollars in thousands) Collateral-dependent impaired loans $ 32,024 $ — $ — $ 32,024 Foreclosed assets held-for-sale $ 2,502 $ — $ — $ 2,502 December 31, 2019 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Dollars in thousands) Collateral-dependent impaired loans $ 20,889 $ — $ — $ 20,889 Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated Balance Sheets. Collateral-dependent Impaired Loans, Net of ALLL The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Office of the Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by the Office of the Chief Credit Officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Office of the Chief Credit Officer by comparison to historical results. Foreclosed Assets Held-for-Sale The estimated fair value of foreclosed assets held-for-sale is based on the appraised fair value of the collateral, less estimated cost to sell and are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at June 30, 2020 and December 31, 2019: June 30, 2020 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral-dependent impaired loans $ 32,024 Market comparable properties Marketability discount 10% - 15% (12%) Foreclosed assets held-for-sale $ 2,502 Market comparable properties Marketability discount 10% December 31, 2019 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral-dependent impaired loans $ 20,889 Market comparable properties Marketability discount 10% - 15% (12%) The following tables present the estimated fair values of the Company’s financial instruments at June 30, 2020 and December 31, 2019: June 30, 2020 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 194,371 $ 194,371 $ — $ — $ 194,371 Available-for-sale securities 700,083 — 700,083 — 700,083 Loans, net of allowance for loan losses 4,342,039 — — 4,334,224 4,334,224 Restricted equity securities 20,675 — — 20,675 20,675 Interest receivable 19,399 — 19,399 — 19,399 Derivative assets 29,302 — 29,302 — 29,302 $ 5,305,869 $ 194,371 $ 748,784 $ 4,354,899 $ 5,298,054 Financial Liabilities Deposits $ 4,304,143 $ 750,333 $ — $ 3,599,237 $ 4,349,570 Federal funds purchased and repurchase agreements 49,881 — 49,881 — 49,881 Federal Home Loan Bank advances 450,617 — 468,650 — 468,650 Other borrowings 942 — 1,722 — 1,722 Interest payable 2,843 — 2,843 — 2,843 Derivative liabilities 29,432 — 29,432 — 29,432 $ 4,837,858 $ 750,333 $ 552,528 $ 3,599,237 $ 4,902,098 December 31, 2019 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 187,320 $ 187,320 $ — $ — $ 187,320 Available-for-sale securities 741,634 — 741,634 — 741,634 Loans, net of allowance for loan losses 3,795,348 — — 3,810,818 3,810,818 Restricted equity securities 17,278 — — 17,278 17,278 Interest receivable 15,716 — 15,716 — 15,716 Derivative assets 9,838 — 9,838 — 9,838 $ 4,767,134 $ 187,320 $ 767,188 $ 3,828,096 $ 4,782,604 Financial Liabilities Deposits $ 3,923,759 $ 521,826 $ — $ 3,407,012 $ 3,928,838 Federal funds purchased and repurchase agreements 14,921 — 14,921 — 14,921 Federal Home Loan Bank advances 358,743 — 357,859 — 357,859 Other borrowings 921 — 2,147 — 2,147 Interest payable 4,584 — 4,584 — 4,584 Derivative liabilities 9,907 — 9,907 — 9,907 $ 4,312,835 $ 521,826 $ 389,418 $ 3,407,012 $ 4,318,256 |
Commitments and Credit Risk
Commitments and Credit Risk | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Credit Risk | Commitments and Credit Risk Commitments The Company had the following commitments at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (Dollars in thousands) Commitments to originate loans $ 113,439 $ 134,652 Standby letters of credit 38,342 39,035 Lines of credit 1,290,998 1,351,873 Future lease commitments 17,205 20,935 Total $ 1,459,984 $ 1,546,495 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal and Regulatory Proceedings | Legal and Regulatory Proceedings General Litigation The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. It is the opinion of management the disposition or ultimate resolution of such claims and lawsuits will not have a material adverse effect on the consolidated financial position, results of operations and cash flows of the Company. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent to June 30, 2020, the Company reinstated its Employee Stock Purchase Plan. The first offering period is between July 1, 2020 and December 31, 2020. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Company’s accounting and reporting policies conform to accounting principles generally accepted in the United States (“GAAP”). The consolidated financial statements include the accounts of the Company, the Bank, CFI and CFSA. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated interim financial statements are unaudited and certain information and footnote disclosures presented in accordance with GAAP have been condensed or omitted and should be read in conjunction with the Company’s consolidated financial statements, and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on March 10, 2020. In the opinion of management, the interim financial statements include all adjustments which are of a normal, recurring nature necessary for the fair presentation of the financial position, results of operations, and cash flows of the Company and the disclosures made are adequate to make the interim financial information not misleading. The consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q adopted by the SEC. Except for the accounting changes mentioned under “Coronavirus Aid, Relief, and Economic Security Act” and “Change in Accounting Principle” section below, no other significant changes in the accounting policies of the Company occurred since December 31, 2019, the most recent date financial statements were provided within the Company’s 2019 Form 10-K. The information contained in the financial statements and footnotes for the period ended December 31, 2019 included in the Company’s 2019 Form 10-K should be referred to in connection with these unaudited interim consolidated financial statements. Operating results for the interim periods disclosed herein are not necessarily indicative of the results that may be expected for a full year or any future period. |
Use of Estimates | Use of Estimates The Company has identified accounting policies and estimates that, due to the difficult, subjective or complex judgments and assumptions inherent in those policies and estimates and the potential sensitivity of the Company’s financial statements to those judgments and assumptions, are critical to an understanding of the Company’s financial condition and results of operations. Actual results could differ from those estimates. In particular, the novel coronavirus (“COVID-19”) pandemic and resulting impacts to economic conditions, as well as, adverse impacts to the Company’s operations may impact future estimates. The Allowance for Loan and Lease Losses, Deferred Tax Asset, and Fair Value of Financial Instruments are particularly susceptible to significant change. |
Cash Equivalents | Cash EquivalentsThe Company had $126 million of cash and cash equivalents at the Federal Reserve Bank of Kansas City as of June 30, 2020. The reserve required at June 30, 2020 was $0. In addition, the Company is at times required to place cash collateral with a third party as part of its back-to-back swap agreements. At June 30, 2020, approximately $31 million was required as cash collateral. |
Loans Individually Evaluated for Impairment and Impaired Loans | Loans Individually Evaluated for Impairment Prior to the quarter ended June 30, 2020, loans risk rated substandard or lower were considered impaired and evaluated on an individual basis. As of June 30, 2020, loans risk rated substandard and on accrual were evaluated collectively. The new approach provided a better estimate of potential losses inherent in the substandard portfolio. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. The Company’s definition of a substandard credit was unchanged. Substandard loans exhibit a well-defined weakness or weaknesses that jeopardize repayment. A distinct possibility exists that the Company will sustain some loss if deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual loans classified substandard. As a result, the Company revised its allowance methodology to evaluate substandard, performing loans collectively for impairment as opposed to evaluating these loans individually for impairment. As of June 30, 2020, the change in methodology impacted $200 million of performing, substandard loans that were reviewed on a collective basis. Impaired Loans A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. The intent of concessions is to maximize collection. |
Change in Accounting Principle and Recent Accounting Pronouncements | Change in Accounting Principle On January 1, 2020, the Company adopted the Financial Accounting Standards Board (“FASB”) Accounting Standard Update (“ASU”) 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which was applied on a prospective basis. A description of the nature and reason for the change in accounting principle is provided below in the recent accounting pronouncements section. On January 1, 2020, the Company adopted FASB ASU 2019-12, Simplifying the Accounting for Income Taxes, which was applied as of the adoption date. A description of the nature and reason for the change in accounting principle is provided below in the recent accounting pronouncements section. Recent Accounting Pronouncements The Company has implemented the following ASUs during 2020: Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting June 30, 2020 The ASU provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company had more than $1 billion in loans tied to LIBOR as of June 30, 2020. The Company does not believe the adoption will have a material accounting impact on the Company’s consolidated financial position or results of operations. Additionally, LIBOR fallback language has been included in key loan provisions of new and renewed loans in preparation for transition from LIBOR to the new benchmark rate when such transition occurs. This standard is expected to ease the administrative burden in accounting for the future effects of reference rate reform. The ASU allows the Company to recognize the modification related to LIBOR as a continuation of the old contract, rather than a cancellation of the old contract resulting in a write off of unamortized fees and creation of a new contract. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2020 The ASU simplifies the accounting for income taxes. Among other changes, the ASU: The amendments in the ASU did not have a material impact on the Company’s tax methodology, processes, or the Company’s financial statements. Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework January 1, 2020 Improves the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information. The amendments modify certain disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement. The adoption did not have a material impact to the financial statements. ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment January 1, 2020 Eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. An entity should perform an annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. On the date of adoption there was no impact to the financial statements. The Company has provided updates to the following ASUs that have not yet been adopted. A complete list of recent, applicable accounting pronouncements was provided in the Company’s 2019 Form 10-K: Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-13 Financial Instruments-Credit Losses If we maintain our EGC status, the Company is not required to implement this standard until January 2023. The Company will continue to monitor its progress and the requirements related to adoption. Requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The Company established a committee of individuals from applicable departments to oversee the implementation process. ASU 2016-02 Leases (Topic 842) The Company expects to implement this standard in 2021 if EGC status is maintained. If the Company loses its EGC status in 2020, the Company would be required to implement the ASU as of the beginning of 2020. Requires lessees and lessors to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The update requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach with the option to elect certain practical expedients. The update will also increase disclosures around leases, including qualitative and specific quantitative measures. The Company expects to apply the update as of the beginning of the period of adoption and the Company does not plan to restate comparative periods. The Company expects to elect certain optional practical expedients. |
Changes Affecting Comparability | Changes Affecting Comparability During the quarter ended June 30, 2020, the Company changed loans individually evaluated for impairment. A discussion regarding this change is provided above under “Loans Individually Evaluated for Impairment” and in Note 4: Loans and Allowance for Loan Losses within the Notes to the Unaudited Consolidated Financial Statements. The Company separated substandard loans into performing and nonperforming categories that were previously consolidated within the loan footnote disclosures. The change in disclosure did not impact the Company's net income during the three or six-months ended June 30, 2019, Balance Sheet at December 31, 2019, Statement of Stockholders’ Equity at December 31, 2019, or the impaired loan information at December 31, 2019 as presented in Note 4: Loans and Allowance for Loan Losses within the Notes to the Unaudited Consolidated Financial Statements. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the loan balance is not collectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of its ability to collect the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers all loans on accrual and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process and loan categories. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. The Company evaluates the loan risk grading system definitions, portfolio segment definitions, and allowance for loan loss methodology on an ongoing basis. During the quarter ended June 30, 2020, the Company distinguished between performing and nonperforming substandard loans, as previously discussed in Note 1: Nature of Operations and Summary of Significant Accounting Policies. In addition, the Company separated out PPP loans that are 100% guaranteed by the Small Business Administration (“SBA”). No additional changes to loan definitions, segmentation, and Allowance for Loan Losses (“ALLL”) methodology occurred during the second quarter of 2020. |
Non-accrual Loans | Non-accrual Loans Nonperforming loans are loans for which the Company does not record interest income. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on non-accrual or charged off at an earlier date, if collection of principal or interest is considered doubtful. |
Troubled Debt Restructurings | Troubled Debt RestructuringsRestructured loans are those extended to borrowers who are experiencing financial difficulty and who have been granted a concession, excluding loan modifications as a result of the COVID-19 pandemic. The modification of terms typically includes the extension of maturity, reduction or deferment of monthly payment, or reduction of the stated interest rate. |
Fair Value Measurement | Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities. 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 supported by little or no market activity and significant to the fair value of the assets or liabilities. Collateral-dependent Impaired Loans, Net of ALLL The estimated fair value of collateral-dependent impaired loans is based on the appraised fair value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Office of the Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by the Office of the Chief Credit Officer. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Office of the Chief Credit Officer by comparison to historical results. Foreclosed Assets Held-for-Sale |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The Company has implemented the following ASUs during 2020: Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2020-04: Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting June 30, 2020 The ASU provides optional expedients and exceptions to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The Company had more than $1 billion in loans tied to LIBOR as of June 30, 2020. The Company does not believe the adoption will have a material accounting impact on the Company’s consolidated financial position or results of operations. Additionally, LIBOR fallback language has been included in key loan provisions of new and renewed loans in preparation for transition from LIBOR to the new benchmark rate when such transition occurs. This standard is expected to ease the administrative burden in accounting for the future effects of reference rate reform. The ASU allows the Company to recognize the modification related to LIBOR as a continuation of the old contract, rather than a cancellation of the old contract resulting in a write off of unamortized fees and creation of a new contract. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2020 The ASU simplifies the accounting for income taxes. Among other changes, the ASU: The amendments in the ASU did not have a material impact on the Company’s tax methodology, processes, or the Company’s financial statements. Standard Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework January 1, 2020 Improves the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information. The amendments modify certain disclosure requirements of fair value measurements in Topic 820, Fair Value Measurement. The adoption did not have a material impact to the financial statements. ASU 2017-04: Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment January 1, 2020 Eliminates Step 2 from the goodwill impairment test which required entities to compute the implied fair value of goodwill. An entity should perform an annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. On the date of adoption there was no impact to the financial statements. The Company has provided updates to the following ASUs that have not yet been adopted. A complete list of recent, applicable accounting pronouncements was provided in the Company’s 2019 Form 10-K: Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-13 Financial Instruments-Credit Losses If we maintain our EGC status, the Company is not required to implement this standard until January 2023. The Company will continue to monitor its progress and the requirements related to adoption. Requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime expected credit loss and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The Company established a committee of individuals from applicable departments to oversee the implementation process. ASU 2016-02 Leases (Topic 842) The Company expects to implement this standard in 2021 if EGC status is maintained. If the Company loses its EGC status in 2020, the Company would be required to implement the ASU as of the beginning of 2020. Requires lessees and lessors to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. The update requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach with the option to elect certain practical expedients. The update will also increase disclosures around leases, including qualitative and specific quantitative measures. The Company expects to apply the update as of the beginning of the period of adoption and the Company does not plan to restate comparative periods. The Company expects to elect certain optional practical expedients. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following table presents the computation of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands except per share data) Earnings (Loss) per Share Net income (loss) $ (7,356) $ 9,439 $ (3,499) $ 18,789 Less: preferred stock dividends — — — 175 Net income (loss) available to common stockholders $ (7,356) $ 9,439 $ (3,499) $ 18,614 Weighted average common shares 52,104,994 45,236,264 52,088,239 45,165,248 Earnings (loss) per share $ (0.14) $ 0.21 $ (0.07) $ 0.41 Dilutive Earnings (Loss) Per Share Net income (loss) available to common stockholders $ (7,356) $ 9,439 $ (3,499) $ 18,614 Weighted average common shares 52,104,994 45,236,264 52,088,239 45,165,248 Effect of dilutive shares — 975,516 — 994,577 Weighted average dilutive common shares 52,104,994 46,211,780 52,088,239 46,159,825 Diluted earnings (loss) per share $ (0.14) $ 0.20 $ (0.07) $ 0.40 Stock-based awards not included because to do so would be antidilutive 2,417,205 403,722 2,417,205 424,972 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The amortized cost and approximate fair values, together with gross unrealized gains and losses, of period end available-for-sale debt and equity securities consisted of the following: June 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ 139,615 $ 4,983 $ — $ 144,598 Collateralized mortgage obligations - GSE residential 94,189 1,472 20 95,641 State and political subdivisions 429,603 26,966 255 456,314 Corporate bonds 1,212 86 4 1,294 Total available-for-sale debt securities 664,619 33,507 279 697,847 Equity securities Mutual funds 2,183 53 — 2,236 Total equity securities 2,183 53 — 2,236 Total available-for-sale securities $ 666,802 $ 33,560 $ 279 $ 700,083 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ 151,037 $ 1,668 $ 193 $ 152,512 Collateralized mortgage obligations - GSE residential 128,876 625 289 129,212 State and political subdivisions 436,448 19,996 104 456,340 Corporate bonds 1,321 88 — 1,409 Total available-for-sale debt securities 717,682 22,377 586 739,473 Equity securities Mutual funds 2,190 — 29 2,161 Total equity securities 2,190 — 29 2,161 Total available-for-sale securities $ 719,872 $ 22,377 $ 615 $ 741,634 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of available-for-sale debt securities at June 30, 2020, by contractual maturity, are shown below: June 30, 2020 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ 56 $ 220 $ 139,339 $ 139,615 Estimated fair value $ — $ 57 $ 236 $ 144,305 $ 144,598 Weighted average yield (2) — % 4.55 % 3.91 % 2.04 % 2.04 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,507 $ 91,682 $ 94,189 Estimated fair value $ — $ — $ 2,755 $ 92,886 $ 95,641 Weighted average yield (2) — % — % 2.77 % 1.62 % 1.65 % State and political subdivisions Amortized cost $ 653 $ 7,234 $ 61,170 $ 360,546 $ 429,603 Estimated fair value $ 656 $ 7,419 $ 66,034 $ 382,205 $ 456,314 Weighted average yield (2) 8.24 % 5.33 % 3.58 % 3.10 % 3.22 % Corporate bonds Amortized cost $ — $ 345 $ 867 $ — $ 1,212 Estimated fair value $ — $ 358 $ 936 $ — $ 1,294 Weighted average yield (2) — % 5.89 % 5.68 % — % 5.74 % Total available-for-sale debt securities Amortized cost $ 653 $ 7,635 $ 64,764 $ 591,567 $ 664,619 Estimated fair value $ 656 $ 7,834 $ 69,961 $ 619,396 $ 697,847 Weighted average yield (2) 8.24 % 5.34 % 3.53 % 2.63 % 2.75 % (1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. (2) Yields are calculated based on amortized cost. |
Schedule of Unrealized Loss on Investments | The following tables show gross unrealized losses, the number of securities that are in an unrealized loss position, and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired (“OTTI”), aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019: June 30, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities (Dollars in thousands) Available-for-Sale Debt Securities Mortgage-backed - GSE residential $ — $ — — $ — $ — — $ — $ — — Collateralized mortgage obligations - GSE residential 12,050 20 4 — — — 12,050 20 4 State and political subdivisions 11,471 255 11 27 — 1 11,498 255 12 Corporate bonds 456 4 1 — — — 456 4 1 Total temporarily impaired debt securities $ 23,977 $ 279 16 $ 27 $ — 1 $ 24,004 $ 279 17 December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities (Dollars in thousands) Available-for-Sale Debt Securities Mortgage-backed - GSE residential $ 7,959 $ 38 2 $ 20,396 $ 155 4 $ 28,355 $ 193 6 Collateralized mortgage obligations - GSE residential 48,980 199 7 8,622 90 9 57,602 289 16 State and political subdivisions 21,412 102 11 167 2 2 21,579 104 13 Corporate bonds 530 — 1 — — — 530 — 1 Total temporarily impaired debt securities $ 78,881 $ 339 21 $ 29,185 $ 247 15 $ 108,066 $ 586 36 |
Gain (Loss) on Securities | The following is a summary of the recorded fair value and the unrealized and realized gains and losses recognized in net income on available-for-sale equity securities: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Net gains recognized during the reporting period on equity securities $ 18 $ 30 $ 53 $ 56 Less: net gains recognized during the reporting period on equity securities sold during the reporting period — — — — Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ 18 $ 30 $ 53 $ 56 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Category of Loans | Categories of loans at June 30, 2020 and December 31, 2019 include: June 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 1,284,919 $ 1,356,817 Energy 390,346 408,573 Commercial real estate 1,141,277 1,024,041 Construction and land development 661,691 628,418 Residential real estate 536,270 398,695 Paycheck Protection Program (“PPP”) 369,022 — Consumer 45,716 45,163 Gross loans 4,429,241 3,861,707 Less: Allowance for loan losses 71,185 56,896 Less: Net deferred loan fees and costs 16,017 9,463 Net loans $ 4,342,039 $ 3,795,348 |
Loans, Allowance for Loan Loss | The following tables summarize the activity in the allowance for loan losses by portfolio segment and disaggregated based on the Company’s impairment methodology. The allocation in one portfolio segment does not preclude its availability to absorb losses in other segments: Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Three months ended June 30, 2020 Allowance for loan losses Beginning balance $ 21,129 $ 7,599 $ 12,623 $ 5,021 $ 4,687 $ — $ 399 $ 51,458 Provision charged to expense 5,499 10,773 4,276 (2) 370 — 84 21,000 Charge-offs (87) (1,000) — — (189) — — (1,276) Recoveries 2 — — — — — 1 3 Ending balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Three months ended June 30, 2019 Allowance for loan losses Beginning balance $ 20,506 $ 7,090 $ 7,471 $ 2,585 $ 2,047 $ — $ 302 $ 40,001 Provision charged to expense 2,468 210 62 17 91 — 2 2,850 Charge-offs — — — — — — (1) (1) Recoveries 1 — — — — — 1 2 Ending balance $ 22,975 $ 7,300 $ 7,533 $ 2,602 $ 2,138 $ — $ 304 $ 42,852 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Six months ended June 30, 2020 Allowance for loan losses Beginning balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Provision charged to expense 8,771 13,085 8,814 1,503 2,511 — 266 34,950 Charge-offs (18,165) (2,278) — — (189) — (104) (20,736) Recoveries 73 — — — — — 2 75 Ending balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Six months ended June 30, 2019 Allowance for loan losses Beginning balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 Provision charged to expense 7,631 (3,538) 778 127 674 — $ 28 5,700 Charge-offs (1,254) — — — — — (11) (1,265) Recoveries 14 576 — — — — 1 591 Ending balance $ 22,975 $ 7,300 $ 7,533 $ 2,602 $ 2,138 $ — $ 304 $ 42,852 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) June 30, 2020 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 2,933 $ 1,942 $ 1,704 $ — $ 413 $ — $ — $ 6,992 Collectively evaluated for impairment $ 23,610 $ 15,430 $ 15,195 $ 5,019 $ 4,455 $ — $ 484 $ 64,193 Ending balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Allocated to loans: Individually evaluated for impairment $ 11,831 $ 15,532 $ 10,909 $ — $ 6,981 $ — $ 249 $ 45,502 Collectively evaluated for impairment $ 1,273,088 $ 374,814 $ 1,130,368 $ 661,691 $ 529,289 $ 369,022 $ 45,467 $ 4,383,739 Ending balance $ 1,284,919 $ 390,346 $ 1,141,277 $ 661,691 $ 536,270 $ 369,022 $ 45,716 $ 4,429,241 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) December 31, 2019 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 19,942 $ 1,949 $ 210 $ — $ 197 $ — $ — $ 22,298 Collectively evaluated for impairment $ 15,922 $ 4,616 $ 7,875 $ 3,516 $ 2,349 $ — $ 320 $ 34,598 Ending balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Allocated to loans: Individually evaluated for impairment $ 70,876 9,744 $ 10,492 $ — $ 2,388 $ — $ — $ 93,500 Collectively evaluated for impairment $ 1,285,941 $ 398,829 $ 1,013,549 $ 628,418 $ 396,307 $ — $ 45,163 $ 3,768,207 Ending balance $ 1,356,817 $ 408,573 $ 1,024,041 $ 628,418 $ 398,695 $ — $ 45,163 $ 3,861,707 |
Loans, Credit Quality Indicators | The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating categories (grades 1 - 8), portfolio segmentation, and payment activity: Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) June 30, 2020 Commercial $ 1,143,316 $ 53,411 $ 77,226 $ 7,662 $ 3,304 $ — $ 1,284,919 Energy 210,557 71,837 92,568 10,997 4,387 — 390,346 Commercial real estate 1,069,590 39,332 25,355 6,187 813 — 1,141,277 Construction and land development 655,200 5,330 1,161 — — — 661,691 Residential real estate 528,510 540 3,285 3,935 — — 536,270 PPP 369,022 — — — — — 369,022 Consumer 45,467 — — 249 — — 45,716 $ 4,021,662 $ 170,450 $ 199,595 $ 29,030 $ 8,504 $ — $ 4,429,241 Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) December 31, 2019 Commercial $ 1,258,952 $ 27,069 $ 38,666 $ 32,130 $ — $ — $ 1,356,817 Energy 392,233 9,460 2,340 — 4,540 — 408,573 Commercial real estate 1,007,921 9,311 5,746 120 943 — 1,024,041 Construction and land development 628,418 — — — — — 628,418 Residential real estate 394,495 1,789 469 1,942 — — 398,695 PPP — — — — — — — Consumer 45,163 — — — — — 45,163 $ 3,727,182 $ 47,629 $ 47,221 $ 34,192 $ 5,483 $ — $ 3,861,707 |
Loans, Past Due | The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of June 30, 2020 and December 31, 2019: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) June 30, 2020 Commercial $ 4,645 $ 3,391 $ 7,315 $ 15,351 $ 1,269,568 $ 1,284,919 $ — Energy — 16,918 4,440 21,358 368,988 390,346 — Commercial real estate 8,009 230 4,481 12,720 1,128,557 1,141,277 — Construction and land development 194 — — 194 661,497 661,691 — Residential real estate 1,357 — 3,915 5,272 530,998 536,270 220 PPP — — — — 369,022 369,022 — Consumer — 137 — 137 45,579 45,716 — $ 14,205 $ 20,676 $ 20,151 $ 55,032 $ 4,374,209 $ 4,429,241 $ 220 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) December 31, 2019 Commercial $ 1,091 $ 276 $ 30,911 $ 32,278 $ 1,324,539 $ 1,356,817 $ 37 Energy 2,340 — 4,593 6,933 401,640 408,573 53 Commercial real estate 316 — 4,589 4,905 1,019,136 1,024,041 4,501 Construction and land development 196 — — 196 628,222 628,418 — Residential real estate 2,347 — 1,919 4,266 394,429 398,695 — PPP — — — — — — — Consumer 2 254 — 256 44,907 45,163 — $ 6,292 $ 530 $ 42,012 $ 48,834 $ 3,812,873 $ 3,861,707 $ 4,591 |
Loans, Impaired | The following tables present loans individually evaluated for impairment, including all restructured and formerly restructured loans, for the periods ended June 30, 2020 and December 31, 2019: Unpaid Recorded Balance Principal Balance Specific Allowance (Dollars in thousands) June 30, 2020 Loans without a specific valuation Commercial $ 70 $ 70 $ — Energy — — — Commercial real estate 763 854 — Construction and land development — — — Residential real estate 5,404 5,404 — PPP — — — Consumer 249 249 — Loans with a specific valuation Commercial 11,761 29,710 2,933 Energy 15,532 18,244 1,942 Commercial real estate 10,146 10,146 1,704 Construction and land development — — — Residential real estate 1,577 1,577 413 PPP — — — Consumer — — — Total Commercial 11,831 29,780 2,933 Energy 15,532 18,244 1,942 Commercial real estate 10,909 11,000 1,704 Construction and land development — — — Residential real estate 6,981 6,981 413 PPP — — — Consumer 249 249 — $ 45,502 $ 66,254 $ 6,992 Unpaid Recorded Balance Principal Balance Specific Allowance (Dollars in thousands) December 31, 2019 Loans without a specific valuation Commercial $ 35,846 $ 35,846 $ — Energy 2,864 2,864 — Commercial real estate 9,464 9,464 — Construction and land development — — — Residential real estate 2,139 2,139 — PPP — — — Consumer — — — Loans with a specific valuation Commercial 35,030 40,030 19,942 Energy 6,880 9,880 1,949 Commercial real estate 1,028 1,028 210 Construction and land development — — — Residential real estate 249 249 197 PPP — — — Consumer — — — Total Commercial 70,876 75,876 19,942 Energy 9,744 12,744 1,949 Commercial real estate 10,492 10,492 210 Construction and land development — — — Residential real estate 2,388 2,388 197 PPP — — — Consumer — — — $ 93,500 $ 101,500 $ 22,298 The table below shows interest income recognized during the three and six month periods ended June 30, 2020 and 2019 for impaired loans, including all restructured and formerly restructured loans, held at the end of each period: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 27 $ 781 $ 88 $ 1,564 Energy 46 53 210 109 Commercial real estate 58 278 135 532 Construction and land development — — — 1 Residential real estate 35 10 74 21 PPP — — — — Consumer — — — — Total interest income recognized $ 166 $ 1,122 $ 507 $ 2,227 The table below shows the three and six month average balance of impaired loans as of June 30, 2020 and 2019 by loan category for impaired loans, including all restructured and formerly restructured loans, held at the end of each period: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 11,793 $ 50,732 $ 19,002 $ 74,259 Energy 16,798 12,534 17,527 13,850 Commercial real estate 10,958 13,779 11,044 14,661 Construction and land development — 50 — 25 Residential real estate 7,171 2,665 6,953 2,428 PPP — — — — Consumer 251 — 253 — Total average impaired loans $ 46,971 $ 79,760 $ 54,779 $ 105,223 |
Loans, Nonaccrual | The following table presents the Company’s non-accrual loans by loan category at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 10,966 $ 32,130 Energy 15,384 4,540 Commercial real estate 7,000 1,063 Construction and land development — — Residential real estate 3,935 1,942 PPP — — Consumer 249 — Total non-accrual loans $ 37,534 $ 39,675 |
Loans, Troubled Debt Restructuring | The table below presents loans restructured, excluding loans restructured as a result of the COVID-19 pandemic, during the three and six months ended June 30, 2020 and 2019, including the post-modification outstanding balance and the type of concession made: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial - Interest rate reduction $ — $ — $ 3,171 $ — - Reduction of monthly payment — — — 994 - Extension of maturity date — 30,005 — 30,005 Energy - Extension of maturity date — — 2,340 — Commercial real estate - Reduction of monthly payment — — — 3,767 Residential real estate - Payment deferral 65 — 65 — Total troubled debt restructurings during applicable period $ 65 $ 30,005 $ 5,576 $ 34,766 June 30, 2020 December 31, 2019 Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) (Dollars in thousands) Commercial 6 $ 9,657 $ 842 7 $ 31,770 $ 831 Energy 3 4,032 — 2 2,864 — Commercial real estate 3 4,749 — 3 4,909 — Construction and land development — — — — — — Residential real estate 2 3,065 — — — — PPP — — — — — — Consumer — — — — — — Total troubled debt restructured loans 14 $ 21,503 $ 842 12 $ 39,543 $ 831 (1) Default is considered to mean 90 days or more past due as to interest or principal. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of June 30, 2020 and December 31, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: June 30, 2020 December 31, 2019 Product Number of Instruments Notional Amount Number of Instruments Notional Amount (Dollars in thousands) Back-to-back swaps 58 $ 487,255 56 $ 380,050 The table below presents the fair value of the Company’s derivative financial instruments and their classification on the Balance Sheet as of June 30, 2020 and December 31, 2019: Asset Derivatives Liability Derivatives Balance Sheet June 30, December 31, Balance Sheet June 30, December 31, Location 2020 2019 Location 2020 2019 (Dollars in thousands) Derivatives not designated as hedging instruments Interest rate products Other assets $ 29,302 $ 9,838 Other liabilities $ 29,432 $ 9,907 |
Offsetting Assets | The tables below show a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2020 and December 31, 2019: June 30, 2020 (Dollars in thousands) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Offsetting of derivative assets Derivatives $ 29,302 $ — $ 29,302 $ 8 $ — $ 29,294 Offsetting of derivative liabilities Derivatives $ 29,432 $ — $ 29,432 $ 8 $ — $ 29,424 December 31, 2019 (Dollars in thousands) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Offsetting of derivative assets Derivatives $ 9,838 $ — $ 9,838 $ 97 $ — $ 9,741 Offsetting of derivative liabilities Derivatives $ 9,907 $ — $ 9,907 $ 97 $ — $ 9,810 |
Offsetting Liabilities | The tables below show a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2020 and December 31, 2019: June 30, 2020 (Dollars in thousands) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Offsetting of derivative assets Derivatives $ 29,302 $ — $ 29,302 $ 8 $ — $ 29,294 Offsetting of derivative liabilities Derivatives $ 29,432 $ — $ 29,432 $ 8 $ — $ 29,424 December 31, 2019 (Dollars in thousands) Gross Amounts Not Offset in the Statement of Financial Position Gross Amounts of Recognized Assets and Liabilities Gross Amounts Offset in the Statement of Financial Position Net Amounts of Assets presented in the Statement of Financial Position Financial Instruments Cash Collateral Received Net Amount Offsetting of derivative assets Derivatives $ 9,838 $ — $ 9,838 $ 97 $ — $ 9,741 Offsetting of derivative liabilities Derivatives $ 9,907 $ — $ 9,907 $ 97 $ — $ 9,810 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The following table summarizes the change in the Company’s goodwill and CDI for the six-months ended June 30, 2020: Goodwill Core Deposit Intangible Total Intangible Assets (Dollars in thousands) Balance at December 31, 2019 $ 7,397 $ 297 $ 7,694 Impairment (7,397) — (7,397) Amortization — (50) (50) Balance at June 30, 2020 $ — $ 247 $ 247 |
Time Deposits and Borrowings (T
Time Deposits and Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Time Deposit Maturities and Borrowings | The scheduled maturities, excluding interest, of the Company’s borrowings at June 30, 2020 were as follows: June 30, 2020 Within One Year One to Two Years Two to Three Years Three to Four Years Four to Five Years After Five Years Total (Dollars in thousands) Time deposits $ 932,443 $ 97,992 $ 93,074 $ 36,085 $ 781 $ 166 $ 1,160,541 Fed funds purchased & repurchase agreements 49,881 — — — — — 49,881 FHLB borrowings 163,000 21,500 46,017 — 5,100 215,000 450,617 Trust preferred securities (1) — — — — — 942 942 $ 1,145,324 $ 119,492 $ 139,091 $ 36,085 $ 5,881 $ 216,108 $ 1,661,981 |
Change in Accumulated Other C_2
Change in Accumulated Other Comprehensive Income (AOCI) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Amounts reclassified from AOCI and the affected line items in the consolidated Statements of Operations during the three and six months ended June 30, 2020 and 2019, were as follows: Three Months Ended Six Months Ended June 30, June 30, Affected Line Item in the 2020 2019 2020 2019 Statements of Operations (Dollars in thousands) Unrealized gains on available-for-sale securities $ 320 $ 406 $ 713 $ 433 Gain on sale of available-for-sale securities Amount reclassified before tax 320 406 713 433 Less: tax effect 78 100 174 107 Income tax expense Net reclassified amount $ 242 $ 306 $ 539 $ 326 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Company’s and the Bank’s actual capital amounts and ratios as of June 30, 2020 and December 31, 2019 are presented in the following table: Actual Minimum Capital Required - Basel III Fully Phased-In Required to be Considered Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) June 30, 2020 Total Capital to Risk-Weighted Assets Consolidated $ 642,345 13.3 % $ 508,386 10.5 % N/A N/A Bank 591,096 12.2 508,256 10.5 $ 484,053 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 581,634 12.0 411,551 8.5 N/A N/A Bank 530,458 11.0 411,445 8.5 387,242 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 580,692 12.0 338,924 7.0 N/A N/A Bank 530,458 11.0 338,837 7.0 314,634 6.5 Tier I Capital to Average Assets Consolidated 581,634 10.7 216,445 4.0 N/A N/A Bank $ 530,458 9.8 % $ 216,457 4.0 % $ 270,571 5.0 % December 31, 2019 Total Capital to Risk-Weighted Assets Consolidated $ 633,228 13.4 % $ 495,095 10.5 % N/A N/A Bank 581,600 12.3 494,954 10.5 $ 471,385 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 576,332 12.2 400,791 8.5 N/A N/A Bank 524,704 11.1 400,677 8.5 377,108 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 575,411 12.2 330,063 7.0 N/A N/A Bank 524,704 11.1 329,970 7.0 306,400 6.5 Tier I Capital to Average Assets Consolidated 576,332 12.1 191,099 4.0 N/A N/A Bank $ 524,704 11.0 % $ 191,170 4.0 % $ 238,963 5.0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation | The table below summarizes the stock-based compensation for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Stock appreciation rights $ 238 $ 271 $ 494 $ 530 Performance based stock awards 22 155 96 250 Restricted stock units and awards 822 721 1,426 1,465 Employee stock purchase plan — (1) — 36 Total stock-based compensation $ 1,082 $ 1,146 $ 2,016 $ 2,281 |
Summary of Status and Changes in Performance-Based Awards | The following table summarizes the status of and changes in the performance-based awards: Performance Based Stock Awards Number of Shares Weighted-Average Grant Date Fair Value Unvested, January 1, 2020 192,248 $9.88 Granted 41,283 13.55 Vested 0 0.00 Forfeited 0 0.00 Unvested, June 30, 2020 233,531 $10.53 |
Summary of Status and Changes in RSUs and RSAs | The following table summarizes the status of and changes in the RSUs and RSAs: Restricted Stock Units and Awards Number of Shares Weighted-Average Grant Date Fair Value Unvested, January 1, 2020 340,780 $15.35 Granted 293,297 11.84 Vested (106,146) 12.58 Forfeited (5,952) 14.25 Unvested, June 30, 2020 521,979 $13.41 |
Income Tax (Tables)
Income Tax (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | An income tax expense (benefit) reconciliation at the statutory rate to the Company’s actual income tax expense (benefit) is shown below: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 (Dollars in thousands) Computed at the statutory rate (21%) $ (1,727) $ 2,465 $ (855) $ 4,516 Increase (decrease) resulting from Tax-exempt income (779) (712) (1,569) (1,425) Nondeductible expenses 34 64 98 137 State tax credit — — — (1,361) State income taxes 39 519 181 960 Equity based compensation 13 (6) 39 (61) Goodwill impairment 1,553 — 1,553 — Other adjustments 4 (33) (17) (50) Actual tax expense (benefit) $ (863) $ 2,297 $ (570) $ 2,716 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences related to deferred taxes shown on the consolidated Balance Sheets are presented below: June 30, 2020 December 31, 2019 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 17,426 $ 13,928 Lease incentive 279 294 Impairment of available-for-sale securities — 493 Valuation allowance on real estate 273 — Loan fees 3,921 2,317 Net operating loss carryover 353 339 Accrued expenses 1,016 2,131 Deferred compensation 2,213 2,444 State tax credit 2,842 3,287 Other 431 81 Total deferred tax asset 28,754 25,314 Deferred tax liability Fair market value adjustments - trust preferred securities (344) (348) Net unrealized gain on securities available-for-sale (8,134) (5,339) FHLB stock basis (1,133) (996) Premises and equipment (3,303) (3,620) Other (999) (1,229) Total deferred tax liability (13,913) (11,532) Net deferred tax asset $ 14,841 $ 13,782 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following list presents the assets and liabilities recognized in the accompanying consolidated Balance Sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019: Fair Value Description Valuation Hierarchy Level Where Fair Value Balance Can Be Found Available-for-Sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Level 2 Note 3: Securities Derivatives Fair value of the interest rate swaps is obtained from independent pricing services based on quoted market prices for similar derivative contracts. Level 2 Note 5: Derivatives and Hedging |
Fair Value Measurements, Nonrecurring | The following tables present assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019: June 30, 2020 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Dollars in thousands) Collateral-dependent impaired loans $ 32,024 $ — $ — $ 32,024 Foreclosed assets held-for-sale $ 2,502 $ — $ — $ 2,502 December 31, 2019 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs (Dollars in thousands) Collateral-dependent impaired loans $ 20,889 $ — $ — $ 20,889 |
Fair Value, Assets Measured on Nonrecurring Basis, Unobservable Input Reconciliation | The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at June 30, 2020 and December 31, 2019: June 30, 2020 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral-dependent impaired loans $ 32,024 Market comparable properties Marketability discount 10% - 15% (12%) Foreclosed assets held-for-sale $ 2,502 Market comparable properties Marketability discount 10% December 31, 2019 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral-dependent impaired loans $ 20,889 Market comparable properties Marketability discount 10% - 15% (12%) |
Fair Value, by Balance Sheet Grouping | The following tables present the estimated fair values of the Company’s financial instruments at June 30, 2020 and December 31, 2019: June 30, 2020 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 194,371 $ 194,371 $ — $ — $ 194,371 Available-for-sale securities 700,083 — 700,083 — 700,083 Loans, net of allowance for loan losses 4,342,039 — — 4,334,224 4,334,224 Restricted equity securities 20,675 — — 20,675 20,675 Interest receivable 19,399 — 19,399 — 19,399 Derivative assets 29,302 — 29,302 — 29,302 $ 5,305,869 $ 194,371 $ 748,784 $ 4,354,899 $ 5,298,054 Financial Liabilities Deposits $ 4,304,143 $ 750,333 $ — $ 3,599,237 $ 4,349,570 Federal funds purchased and repurchase agreements 49,881 — 49,881 — 49,881 Federal Home Loan Bank advances 450,617 — 468,650 — 468,650 Other borrowings 942 — 1,722 — 1,722 Interest payable 2,843 — 2,843 — 2,843 Derivative liabilities 29,432 — 29,432 — 29,432 $ 4,837,858 $ 750,333 $ 552,528 $ 3,599,237 $ 4,902,098 December 31, 2019 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 187,320 $ 187,320 $ — $ — $ 187,320 Available-for-sale securities 741,634 — 741,634 — 741,634 Loans, net of allowance for loan losses 3,795,348 — — 3,810,818 3,810,818 Restricted equity securities 17,278 — — 17,278 17,278 Interest receivable 15,716 — 15,716 — 15,716 Derivative assets 9,838 — 9,838 — 9,838 $ 4,767,134 $ 187,320 $ 767,188 $ 3,828,096 $ 4,782,604 Financial Liabilities Deposits $ 3,923,759 $ 521,826 $ — $ 3,407,012 $ 3,928,838 Federal funds purchased and repurchase agreements 14,921 — 14,921 — 14,921 Federal Home Loan Bank advances 358,743 — 357,859 — 357,859 Other borrowings 921 — 2,147 — 2,147 Interest payable 4,584 — 4,584 — 4,584 Derivative liabilities 9,907 — 9,907 — 9,907 $ 4,312,835 $ 521,826 $ 389,418 $ 3,407,012 $ 4,318,256 |
Commitments and Credit Risk (Ta
Commitments and Credit Risk (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The Company had the following commitments at June 30, 2020 and December 31, 2019: June 30, 2020 December 31, 2019 (Dollars in thousands) Commitments to originate loans $ 113,439 $ 134,652 Standby letters of credit 38,342 39,035 Lines of credit 1,290,998 1,351,873 Future lease commitments 17,205 20,935 Total $ 1,459,984 $ 1,546,495 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 17, 2019 | Aug. 19, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Subsidiary, Sale of Stock [Line Items] | ||||
Cash and cash equivalents held at the Federal Reserve Bank of Kansas City | $ 126,000,000 | |||
Required reserve | 0 | |||
Cash collateral | 31,000,000 | |||
Loans reviewed on a collective basis | 4,429,241,000 | $ 3,861,707,000 | ||
Performing | Substandard | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Loans reviewed on a collective basis | 199,595,000 | $ 47,221,000 | ||
London Interbank Offered Rate (LIBOR) | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Loans tied to LIBOR | $ 1,000,000,000 | |||
IPO | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold and issued (in shares) | 5,750,000 | |||
Price of stock per share (in dollars per share) | $ 14.50 | |||
Total proceeds on sale of stock | $ 76,000,000 | |||
Stockholders Public Offering | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold and issued (in shares) | 1,261,589 | |||
Price of stock per share (in dollars per share) | $ 14.50 | |||
Over-Allotment Option | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Shares sold and issued (in shares) | 844,362 | |||
Price of stock per share (in dollars per share) | $ 14.50 | |||
Total proceeds on sale of stock | $ 11,000,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings (Loss) per Share | ||||
Net income (loss) | $ (7,356) | $ 9,439 | $ (3,499) | $ 18,789 |
Less: preferred stock dividends | 0 | 0 | 0 | 175 |
Net income (loss) available to common stockholders | $ (7,356) | $ 9,439 | $ (3,499) | $ 18,614 |
Weighted average common shares (in shares) | 52,104,994 | 45,236,264 | 52,088,239 | 45,165,248 |
Earnings (loss) per share (in dollars per share) | $ (0.14) | $ 0.21 | $ (0.07) | $ 0.41 |
Dilutive Earnings (Loss) Per Share | ||||
Net income (loss) available to common stockholders | $ (7,356) | $ 9,439 | $ (3,499) | $ 18,614 |
Weighted average common shares (in shares) | 52,104,994 | 45,236,264 | 52,088,239 | 45,165,248 |
Effect of dilutive shares (in shares) | 0 | 975,516 | 0 | 994,577 |
Weighted average dilutive common shares (in shares) | 52,104,994 | 46,211,780 | 52,088,239 | 46,159,825 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.14) | $ 0.20 | $ (0.07) | $ 0.40 |
Stock-based awards not included because to do so would be antidilutive (in shares) | 2,417,205 | 403,722 | 2,417,205 | 424,972 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale debt securities | ||
Total | $ 664,619 | $ 717,682 |
Gross Unrealized Gains | 33,507 | 22,377 |
Gross Unrealized Losses | 279 | 586 |
Approximate Fair Value | 697,847 | 739,473 |
Equity securities | ||
Amortized Cost | 2,183 | 2,190 |
Gross Unrealized Gains | 53 | 0 |
Gross Unrealized Losses | 0 | 29 |
Approximate Fair Value | 2,236 | 2,161 |
Total available-for-sale securities | ||
Amortized Cost | 666,802 | 719,872 |
Gross Unrealized Gains | 33,560 | 22,377 |
Gross Unrealized Losses | 279 | 615 |
Approximate Fair Value | 700,083 | 741,634 |
Mortgage-backed - GSE residential | ||
Available-for-sale debt securities | ||
Total | 139,615 | 151,037 |
Gross Unrealized Gains | 4,983 | 1,668 |
Gross Unrealized Losses | 0 | 193 |
Approximate Fair Value | 144,598 | 152,512 |
Collateralized mortgage obligations - GSE residential | ||
Available-for-sale debt securities | ||
Total | 94,189 | 128,876 |
Gross Unrealized Gains | 1,472 | 625 |
Gross Unrealized Losses | 20 | 289 |
Approximate Fair Value | 95,641 | 129,212 |
State and political subdivisions | ||
Available-for-sale debt securities | ||
Total | 429,603 | 436,448 |
Gross Unrealized Gains | 26,966 | 19,996 |
Gross Unrealized Losses | 255 | 104 |
Approximate Fair Value | 456,314 | 456,340 |
Corporate bonds | ||
Available-for-sale debt securities | ||
Total | 1,212 | 1,321 |
Gross Unrealized Gains | 86 | 88 |
Gross Unrealized Losses | 4 | 0 |
Approximate Fair Value | 1,294 | 1,409 |
Mutual funds | ||
Equity securities | ||
Amortized Cost | 2,183 | 2,190 |
Gross Unrealized Gains | 53 | 0 |
Gross Unrealized Losses | 0 | 29 |
Approximate Fair Value | $ 2,236 | $ 2,161 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Securities pledged as collateral | $ 56,000 | $ 41,000 | |
Gross gains on available-for-sale securities | 761 | $ 453 | |
Gross losses on available-for-sale securities | 47 | $ 20 | |
Gross gains on available-for-sale- securities included an other-than-temporary impaired municipal security settled in 2020 | 75 | ||
Fair value of equity securities | $ 2,236 | $ 2,161 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Fair Value by Maturity Date (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Within one year | $ 653 | |
After one to five years | 7,635 | |
After five to ten years | 64,764 | |
After ten years | 591,567 | |
Total | 664,619 | $ 717,682 |
Estimated fair value | ||
Within one year | 656 | |
After one to five years | 7,834 | |
After five to ten years | 69,961 | |
After ten years | 619,396 | |
Total | $ 697,847 | 739,473 |
Weighted average yield | ||
Within one year | 8.24% | |
After one to five years | 5.34% | |
After five to ten years | 3.53% | |
After ten years | 2.63% | |
Total | 2.75% | |
Mortgage-backed - GSE residential | ||
Amortized cost | ||
Within one year | $ 0 | |
After one to five years | 56 | |
After five to ten years | 220 | |
After ten years | 139,339 | |
Total | 139,615 | 151,037 |
Estimated fair value | ||
Within one year | 0 | |
After one to five years | 57 | |
After five to ten years | 236 | |
After ten years | 144,305 | |
Total | $ 144,598 | 152,512 |
Weighted average yield | ||
Within one year | 0.00% | |
After one to five years | 4.55% | |
After five to ten years | 3.91% | |
After ten years | 2.04% | |
Total | 2.04% | |
Collateralized mortgage obligations - GSE residential | ||
Amortized cost | ||
Within one year | $ 0 | |
After one to five years | 0 | |
After five to ten years | 2,507 | |
After ten years | 91,682 | |
Total | 94,189 | 128,876 |
Estimated fair value | ||
Within one year | 0 | |
After one to five years | 0 | |
After five to ten years | 2,755 | |
After ten years | 92,886 | |
Total | $ 95,641 | 129,212 |
Weighted average yield | ||
Within one year | 0.00% | |
After one to five years | 0.00% | |
After five to ten years | 2.77% | |
After ten years | 1.62% | |
Total | 1.65% | |
State and political subdivisions | ||
Amortized cost | ||
Within one year | $ 653 | |
After one to five years | 7,234 | |
After five to ten years | 61,170 | |
After ten years | 360,546 | |
Total | 429,603 | 436,448 |
Estimated fair value | ||
Within one year | 656 | |
After one to five years | 7,419 | |
After five to ten years | 66,034 | |
After ten years | 382,205 | |
Total | $ 456,314 | 456,340 |
Weighted average yield | ||
Within one year | 8.24% | |
After one to five years | 5.33% | |
After five to ten years | 3.58% | |
After ten years | 3.10% | |
Total | 3.22% | |
Corporate bonds | ||
Amortized cost | ||
Within one year | $ 0 | |
After one to five years | 345 | |
After five to ten years | 867 | |
After ten years | 0 | |
Total | 1,212 | 1,321 |
Estimated fair value | ||
Within one year | 0 | |
After one to five years | 358 | |
After five to ten years | 936 | |
After ten years | 0 | |
Total | $ 1,294 | $ 1,409 |
Weighted average yield | ||
Within one year | 0.00% | |
After one to five years | 5.89% | |
After five to ten years | 5.68% | |
After ten years | 0.00% | |
Total | 5.74% |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) $ in Thousands | Jun. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Less than 12 Months | ||
Fair Value | $ 23,977 | $ 78,881 |
Unrealized Losses | $ 279 | $ 339 |
Number of Securities | security | 16 | 21 |
12 Months or More | ||
Fair Value | $ 27 | $ 29,185 |
Unrealized Losses | $ 0 | $ 247 |
Number of Securities | security | 1 | 15 |
Total | ||
Fair Value | $ 24,004 | $ 108,066 |
Unrealized Losses | $ 279 | $ 586 |
Number of Securities | security | 17 | 36 |
Mortgage-backed - GSE residential | ||
Less than 12 Months | ||
Fair Value | $ 0 | $ 7,959 |
Unrealized Losses | $ 0 | $ 38 |
Number of Securities | security | 0 | 2 |
12 Months or More | ||
Fair Value | $ 0 | $ 20,396 |
Unrealized Losses | $ 0 | $ 155 |
Number of Securities | security | 0 | 4 |
Total | ||
Fair Value | $ 0 | $ 28,355 |
Unrealized Losses | $ 0 | $ 193 |
Number of Securities | security | 0 | 6 |
Collateralized mortgage obligations - GSE residential | ||
Less than 12 Months | ||
Fair Value | $ 12,050 | $ 48,980 |
Unrealized Losses | $ 20 | $ 199 |
Number of Securities | security | 4 | 7 |
12 Months or More | ||
Fair Value | $ 0 | $ 8,622 |
Unrealized Losses | $ 0 | $ 90 |
Number of Securities | security | 0 | 9 |
Total | ||
Fair Value | $ 12,050 | $ 57,602 |
Unrealized Losses | $ 20 | $ 289 |
Number of Securities | security | 4 | 16 |
State and political subdivisions | ||
Less than 12 Months | ||
Fair Value | $ 11,471 | $ 21,412 |
Unrealized Losses | $ 255 | $ 102 |
Number of Securities | security | 11 | 11 |
12 Months or More | ||
Fair Value | $ 27 | $ 167 |
Unrealized Losses | $ 0 | $ 2 |
Number of Securities | security | 1 | 2 |
Total | ||
Fair Value | $ 11,498 | $ 21,579 |
Unrealized Losses | $ 255 | $ 104 |
Number of Securities | security | 12 | 13 |
Corporate bonds | ||
Less than 12 Months | ||
Fair Value | $ 456 | $ 530 |
Unrealized Losses | $ 4 | $ 0 |
Number of Securities | security | 1 | 1 |
12 Months or More | ||
Fair Value | $ 0 | $ 0 |
Unrealized Losses | $ 0 | $ 0 |
Number of Securities | security | 0 | 0 |
Total | ||
Fair Value | $ 456 | $ 530 |
Unrealized Losses | $ 4 | $ 0 |
Number of Securities | security | 1 | 1 |
Securities - Equity Securities
Securities - Equity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Net gains recognized during the reporting period on equity securities | $ 18 | $ 30 | $ 53 | $ 56 |
Less: net gains recognized during the reporting period on equity securities sold during the reporting period | 0 | 0 | 0 | 0 |
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date | $ 18 | $ 30 | $ 53 | $ 56 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Category of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 4,429,241 | $ 3,861,707 | ||||
Less: Allowance for loan losses | 71,185 | $ 51,458 | 56,896 | $ 42,852 | $ 40,001 | $ 37,826 |
Less: Net deferred loan fees and costs | 16,017 | 9,463 | ||||
Net loans | 4,342,039 | 3,795,348 | ||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,284,919 | 1,356,817 | ||||
Less: Allowance for loan losses | 26,543 | 21,129 | 35,864 | 22,975 | 20,506 | 16,584 |
Energy | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 390,346 | 408,573 | ||||
Less: Allowance for loan losses | 17,372 | 7,599 | 6,565 | 7,300 | 7,090 | 10,262 |
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,141,277 | 1,024,041 | ||||
Less: Allowance for loan losses | 16,899 | 12,623 | 8,085 | 7,533 | 7,471 | 6,755 |
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 661,691 | 628,418 | ||||
Less: Allowance for loan losses | 5,019 | 5,021 | 3,516 | 2,602 | 2,585 | 2,475 |
Residential real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 536,270 | 398,695 | ||||
Less: Allowance for loan losses | 4,868 | 4,687 | 2,546 | 2,138 | 2,047 | 1,464 |
Paycheck Protection Program (“PPP”) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 369,022 | 0 | ||||
Less: Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 45,716 | 45,163 | ||||
Less: Allowance for loan losses | $ 484 | $ 399 | $ 320 | $ 304 | $ 302 | $ 286 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | |
Allowance for loan losses | ||||||
Beginning balance | $ 51,458 | $ 40,001 | $ 56,896 | $ 37,826 | ||
Provision charged to expense | 21,000 | 2,850 | 34,950 | 5,700 | ||
Charge-offs | (1,276) | (1) | (20,736) | (1,265) | ||
Recoveries | 3 | 2 | 75 | 591 | ||
Ending balance | 71,185 | 42,852 | 71,185 | 42,852 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | $ 6,992 | $ 22,298 | ||||
Collectively evaluated for impairment | 64,193 | 34,598 | ||||
Allowance for loan losses | 51,458 | 42,852 | 56,896 | 37,826 | 71,185 | 56,896 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 45,502 | 93,500 | ||||
Collectively evaluated for impairment | 4,383,739 | 3,768,207 | ||||
Total Loans Receivable | 4,429,241 | 3,861,707 | ||||
Commercial | ||||||
Allowance for loan losses | ||||||
Beginning balance | 21,129 | 20,506 | 35,864 | 16,584 | ||
Provision charged to expense | 5,499 | 2,468 | 8,771 | 7,631 | ||
Charge-offs | (87) | 0 | (18,165) | (1,254) | ||
Recoveries | 2 | 1 | 73 | 14 | ||
Ending balance | 26,543 | 22,975 | 26,543 | 22,975 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 2,933 | 19,942 | ||||
Collectively evaluated for impairment | 23,610 | 15,922 | ||||
Allowance for loan losses | 26,543 | 22,975 | 35,864 | 22,975 | 26,543 | 35,864 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 11,831 | 70,876 | ||||
Collectively evaluated for impairment | 1,273,088 | 1,285,941 | ||||
Total Loans Receivable | 1,284,919 | 1,356,817 | ||||
Energy | ||||||
Allowance for loan losses | ||||||
Beginning balance | 7,599 | 7,090 | 6,565 | 10,262 | ||
Provision charged to expense | 10,773 | 210 | 13,085 | (3,538) | ||
Charge-offs | (1,000) | 0 | (2,278) | 0 | ||
Recoveries | 0 | 0 | 0 | 576 | ||
Ending balance | 17,372 | 7,300 | 17,372 | 7,300 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 1,942 | 1,949 | ||||
Collectively evaluated for impairment | 15,430 | 4,616 | ||||
Allowance for loan losses | 17,372 | 7,300 | 6,565 | 10,262 | 17,372 | 6,565 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 15,532 | 9,744 | ||||
Collectively evaluated for impairment | 374,814 | 398,829 | ||||
Total Loans Receivable | 390,346 | 408,573 | ||||
Commercial real estate | ||||||
Allowance for loan losses | ||||||
Beginning balance | 12,623 | 7,471 | 8,085 | 6,755 | ||
Provision charged to expense | 4,276 | 62 | 8,814 | 778 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 16,899 | 7,533 | 16,899 | 7,533 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 1,704 | 210 | ||||
Collectively evaluated for impairment | 15,195 | 7,875 | ||||
Allowance for loan losses | 16,899 | 7,533 | 8,085 | 7,533 | 16,899 | 8,085 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 10,909 | 10,492 | ||||
Collectively evaluated for impairment | 1,130,368 | 1,013,549 | ||||
Total Loans Receivable | 1,141,277 | 1,024,041 | ||||
Construction and land development | ||||||
Allowance for loan losses | ||||||
Beginning balance | 5,021 | 2,585 | 3,516 | 2,475 | ||
Provision charged to expense | (2) | 17 | 1,503 | 127 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 5,019 | 2,602 | 5,019 | 2,602 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 5,019 | 3,516 | ||||
Allowance for loan losses | 5,019 | 2,602 | 3,516 | 2,475 | 5,019 | 3,516 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 661,691 | 628,418 | ||||
Total Loans Receivable | 661,691 | 628,418 | ||||
Residential real estate | ||||||
Allowance for loan losses | ||||||
Beginning balance | 4,687 | 2,047 | 2,546 | 1,464 | ||
Provision charged to expense | 370 | 91 | 2,511 | 674 | ||
Charge-offs | (189) | 0 | (189) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 4,868 | 2,138 | 4,868 | 2,138 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 413 | 197 | ||||
Collectively evaluated for impairment | 4,455 | 2,349 | ||||
Allowance for loan losses | 4,868 | 2,138 | 2,546 | 2,138 | 4,868 | 2,546 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 6,981 | 2,388 | ||||
Collectively evaluated for impairment | 529,289 | 396,307 | ||||
Total Loans Receivable | 536,270 | 398,695 | ||||
Paycheck Protection Program (“PPP”) | ||||||
Allowance for loan losses | ||||||
Beginning balance | 0 | 0 | 0 | 0 | ||
Provision charged to expense | 0 | 0 | 0 | 0 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 0 | 0 | 0 | 0 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 369,022 | 0 | ||||
Total Loans Receivable | 369,022 | 0 | ||||
Consumer | ||||||
Allowance for loan losses | ||||||
Beginning balance | 399 | 302 | 320 | 286 | ||
Provision charged to expense | 84 | 2 | 266 | 28 | ||
Charge-offs | 0 | (1) | (104) | (11) | ||
Recoveries | 1 | 1 | 2 | 1 | ||
Ending balance | 484 | 304 | 484 | 304 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 484 | 320 | ||||
Allowance for loan losses | $ 484 | $ 304 | $ 320 | $ 304 | 484 | 320 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 249 | 0 | ||||
Collectively evaluated for impairment | 45,467 | 45,163 | ||||
Total Loans Receivable | $ 45,716 | $ 45,163 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Internal Risk Ratings (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 4,429,241 | $ 3,861,707 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,021,662 | 3,727,182 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 170,450 | 47,629 |
Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 199,595 | 47,221 |
Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 29,030 | 34,192 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 8,504 | 5,483 |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,284,919 | 1,356,817 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,143,316 | 1,258,952 |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 53,411 | 27,069 |
Commercial | Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 77,226 | 38,666 |
Commercial | Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 7,662 | 32,130 |
Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,304 | 0 |
Commercial | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Energy | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 390,346 | 408,573 |
Energy | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 210,557 | 392,233 |
Energy | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 71,837 | 9,460 |
Energy | Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 92,568 | 2,340 |
Energy | Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 10,997 | 0 |
Energy | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,387 | 4,540 |
Energy | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,141,277 | 1,024,041 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,069,590 | 1,007,921 |
Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 39,332 | 9,311 |
Commercial real estate | Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 25,355 | 5,746 |
Commercial real estate | Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 6,187 | 120 |
Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 813 | 943 |
Commercial real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 661,691 | 628,418 |
Construction and land development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 655,200 | 628,418 |
Construction and land development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 5,330 | 0 |
Construction and land development | Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,161 | 0 |
Construction and land development | Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Construction and land development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Construction and land development | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 536,270 | 398,695 |
Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 528,510 | 394,495 |
Residential real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 540 | 1,789 |
Residential real estate | Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,285 | 469 |
Residential real estate | Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,935 | 1,942 |
Residential real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Residential real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Paycheck Protection Program (“PPP”) | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 369,022 | 0 |
Paycheck Protection Program (“PPP”) | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 369,022 | 0 |
Paycheck Protection Program (“PPP”) | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Paycheck Protection Program (“PPP”) | Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Paycheck Protection Program (“PPP”) | Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Paycheck Protection Program (“PPP”) | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Paycheck Protection Program (“PPP”) | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 45,716 | 45,163 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 45,467 | 45,163 |
Consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | Substandard | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | Substandard | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 249 | 0 |
Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Loan Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 55,032 | $ 48,834 |
Current | 4,374,209 | 3,812,873 |
Total Loans Receivable | 4,429,241 | 3,861,707 |
Loans >= 90 Days and Accruing | 220 | 4,591 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 14,205 | 6,292 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 20,676 | 530 |
90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 20,151 | 42,012 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 15,351 | 32,278 |
Current | 1,269,568 | 1,324,539 |
Total Loans Receivable | 1,284,919 | 1,356,817 |
Loans >= 90 Days and Accruing | 0 | 37 |
Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,645 | 1,091 |
Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,391 | 276 |
Commercial | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,315 | 30,911 |
Energy | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 21,358 | 6,933 |
Current | 368,988 | 401,640 |
Total Loans Receivable | 390,346 | 408,573 |
Loans >= 90 Days and Accruing | 0 | 53 |
Energy | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 2,340 |
Energy | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 16,918 | 0 |
Energy | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,440 | 4,593 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 12,720 | 4,905 |
Current | 1,128,557 | 1,019,136 |
Total Loans Receivable | 1,141,277 | 1,024,041 |
Loans >= 90 Days and Accruing | 0 | 4,501 |
Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 8,009 | 316 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 230 | 0 |
Commercial real estate | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,481 | 4,589 |
Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 194 | 196 |
Current | 661,497 | 628,222 |
Total Loans Receivable | 661,691 | 628,418 |
Loans >= 90 Days and Accruing | 0 | 0 |
Construction and land development | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 194 | 196 |
Construction and land development | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Construction and land development | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,272 | 4,266 |
Current | 530,998 | 394,429 |
Total Loans Receivable | 536,270 | 398,695 |
Loans >= 90 Days and Accruing | 220 | 0 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,357 | 2,347 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Residential real estate | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,915 | 1,919 |
Paycheck Protection Program (“PPP”) | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 369,022 | 0 |
Total Loans Receivable | 369,022 | 0 |
Loans >= 90 Days and Accruing | 0 | 0 |
Paycheck Protection Program (“PPP”) | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Paycheck Protection Program (“PPP”) | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Paycheck Protection Program (“PPP”) | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 137 | 256 |
Current | 45,579 | 44,907 |
Total Loans Receivable | 45,716 | 45,163 |
Loans >= 90 Days and Accruing | 0 | 0 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 2 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 137 | 254 |
Consumer | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Recorded Balance | ||
Total | $ 45,502 | $ 93,500 |
Unpaid Principal Balance | ||
Total | 66,254 | 101,500 |
Specific Allowance | 6,992 | 22,298 |
Commercial | ||
Recorded Balance | ||
Loans without a specific valuation | 70 | 35,846 |
Loans with a specific valuation | 11,761 | 35,030 |
Total | 11,831 | 70,876 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 70 | 35,846 |
Loans with a specific valuation | 29,710 | 40,030 |
Total | 29,780 | 75,876 |
Specific Allowance | 2,933 | 19,942 |
Energy | ||
Recorded Balance | ||
Loans without a specific valuation | 0 | 2,864 |
Loans with a specific valuation | 15,532 | 6,880 |
Total | 15,532 | 9,744 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 0 | 2,864 |
Loans with a specific valuation | 18,244 | 9,880 |
Total | 18,244 | 12,744 |
Specific Allowance | 1,942 | 1,949 |
Commercial real estate | ||
Recorded Balance | ||
Loans without a specific valuation | 763 | 9,464 |
Loans with a specific valuation | 10,146 | 1,028 |
Total | 10,909 | 10,492 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 854 | 9,464 |
Loans with a specific valuation | 10,146 | 1,028 |
Total | 11,000 | 10,492 |
Specific Allowance | 1,704 | 210 |
Construction and land development | ||
Recorded Balance | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Specific Allowance | 0 | 0 |
Residential real estate | ||
Recorded Balance | ||
Loans without a specific valuation | 5,404 | 2,139 |
Loans with a specific valuation | 1,577 | 249 |
Total | 6,981 | 2,388 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 5,404 | 2,139 |
Loans with a specific valuation | 1,577 | 249 |
Total | 6,981 | 2,388 |
Specific Allowance | 413 | 197 |
Consumer | ||
Recorded Balance | ||
Loans without a specific valuation | 249 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 249 | 0 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 249 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 249 | 0 |
Specific Allowance | 0 | 0 |
Paycheck Protection Program (“PPP”) | ||
Recorded Balance | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Specific Allowance | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Impaired Loan Interest Income and Average Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | $ 166 | $ 1,122 | $ 507 | $ 2,227 |
Total average impaired loans | 46,971 | 79,760 | 54,779 | 105,223 |
Commercial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 27 | 781 | 88 | 1,564 |
Total average impaired loans | 11,793 | 50,732 | 19,002 | 74,259 |
Energy | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 46 | 53 | 210 | 109 |
Total average impaired loans | 16,798 | 12,534 | 17,527 | 13,850 |
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 58 | 278 | 135 | 532 |
Total average impaired loans | 10,958 | 13,779 | 11,044 | 14,661 |
Construction and land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 0 | 0 | 0 | 1 |
Total average impaired loans | 0 | 50 | 0 | 25 |
Residential real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 35 | 10 | 74 | 21 |
Total average impaired loans | 7,171 | 2,665 | 6,953 | 2,428 |
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 0 | 0 | 0 | 0 |
Total average impaired loans | 251 | 0 | 253 | 0 |
Paycheck Protection Program (“PPP”) | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 0 | 0 | 0 | 0 |
Total average impaired loans | $ 0 | $ 0 | $ 0 | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Non-Accrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | $ 37,534 | $ 39,675 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 10,966 | 32,130 |
Energy | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 15,384 | 4,540 |
Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 7,000 | 1,063 |
Construction and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Residential real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 3,935 | 1,942 |
Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 249 | 0 |
Paycheck Protection Program (“PPP”) | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | $ 0 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Troubled Debt Restructuring Loans (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings during applicable period | $ 65 | $ 30,005 | $ 5,576 | $ 34,766 | |
Commitments to borrowers | 749 | $ 749 | $ 934 | ||
Number of Loans | contract | 14 | 12 | |||
Outstanding Balance | 21,503 | $ 21,503 | $ 39,543 | ||
Balance 90 days past due at any time during previous 12 months | 842 | 831 | |||
Increase in allowance for loan losses from loan restructuring | $ 3,000 | $ 18,000 | |||
Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 6 | 7 | |||
Outstanding Balance | 9,657 | $ 9,657 | $ 31,770 | ||
Balance 90 days past due at any time during previous 12 months | $ 842 | $ 831 | |||
Energy | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 3 | 2 | |||
Outstanding Balance | 4,032 | $ 4,032 | $ 2,864 | ||
Balance 90 days past due at any time during previous 12 months | $ 0 | $ 0 | |||
Commercial real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 3 | 3 | |||
Outstanding Balance | 4,749 | $ 4,749 | $ 4,909 | ||
Balance 90 days past due at any time during previous 12 months | $ 0 | $ 0 | |||
Construction and land development | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 0 | 0 | |||
Outstanding Balance | 0 | $ 0 | $ 0 | ||
Balance 90 days past due at any time during previous 12 months | $ 0 | $ 0 | |||
Residential real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 2 | 0 | |||
Outstanding Balance | 3,065 | $ 3,065 | $ 0 | ||
Balance 90 days past due at any time during previous 12 months | $ 0 | $ 0 | |||
Paycheck Protection Program (“PPP”) | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 0 | 0 | |||
Outstanding Balance | 0 | $ 0 | $ 0 | ||
Balance 90 days past due at any time during previous 12 months | $ 0 | $ 0 | |||
Consumer | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 0 | 0 | |||
Outstanding Balance | 0 | $ 0 | $ 0 | ||
Balance 90 days past due at any time during previous 12 months | 0 | $ 0 | |||
Interest Rate Reduction | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings during applicable period | 0 | 0 | 3,171 | 0 | |
Reduction of Monthly Payment | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings during applicable period | 0 | 0 | 0 | 994 | |
Reduction of Monthly Payment | Commercial real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings during applicable period | 0 | 0 | 0 | 3,767 | |
Extension of Maturity Date | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings during applicable period | 0 | 30,005 | 0 | 30,005 | |
Extension of Maturity Date | Energy | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings during applicable period | 0 | 0 | 2,340 | 0 | |
Payment Deferral | Residential real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings during applicable period | $ 65 | $ 0 | $ 65 | $ 0 |
Derivatives and Hedging - Outst
Derivatives and Hedging - Outstanding Derivatives (Details) - Back-to-back swaps - Not Designated as Hedging Instrument $ in Thousands | Jun. 30, 2020USD ($)derivative | Dec. 31, 2019USD ($)derivative |
Derivative [Line Items] | ||
Number of Instruments | derivative | 58 | 56 |
Notional Amount | $ | $ 487,255 | $ 380,050 |
Derivatives and Hedging - Fair
Derivatives and Hedging - Fair Value of Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Asset Derivatives | $ 29,302 | $ 9,838 |
Liability Derivatives | 29,432 | 9,907 |
Other assets | Not Designated as Hedging Instrument | Interest rate products | ||
Derivative [Line Items] | ||
Asset Derivatives | 29,302 | 9,838 |
Other liabilities | Not Designated as Hedging Instrument | Interest rate products | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 29,432 | $ 9,907 |
Derivatives and Hedging - Offse
Derivatives and Hedging - Offsetting of Derivatives (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Offsetting of derivative assets | ||
Gross Amounts of Recognized Assets and Liabilities | $ 29,302 | $ 9,838 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 29,302 | 9,838 |
Financial Instruments | 8 | 97 |
Cash Collateral Received | 0 | 0 |
Net Amount | 29,294 | 9,741 |
Offsetting of derivative liabilities | ||
Gross Amounts of Recognized Assets and Liabilities | 29,432 | 9,907 |
Gross Amounts Offset in the Statement of Financial Position | 0 | 0 |
Net Amounts of Assets presented in the Statement of Financial Position | 29,432 | 9,907 |
Financial Instruments | 8 | 97 |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 29,424 | $ 9,810 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) $ in Millions | Jun. 30, 2020USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Collateral posted | $ 31 |
Termination value of assets | $ 30 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 7,397 | |||
Goodwill impairment | $ (7,397) | $ 0 | (7,397) | $ 0 |
Goodwill, ending balance | 0 | 0 | ||
Finite-lived Intangible Assets [Roll Forward] | ||||
Amortization of intangible assets | (50) | |||
Intangible Assets, Gross (Including Goodwill) [Roll Forward] | ||||
Intangible assets, net (including goodwill), beginning balance | 7,694 | |||
Goodwill and intangible asset impairment | (7,397) | |||
Amortization of intangible assets | (50) | |||
Intangible assets, net (including goodwill), ending balance | 247 | 247 | ||
Core Deposit | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets, net (excluding goodwill), beginning balance | 297 | |||
Impairment of intangible assets | 0 | |||
Amortization of intangible assets | (50) | |||
Intangible assets, net (excluding goodwill), ending balance | $ 247 | 247 | ||
Intangible Assets, Gross (Including Goodwill) [Roll Forward] | ||||
Amortization of intangible assets | $ (50) |
Time Deposits and Borrowings (D
Time Deposits and Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Time deposits | ||
Within One Year | $ 932,443 | |
One to Two Years | 97,992 | |
Two to Three Years | 93,074 | |
Three to Four Years | 36,085 | |
Four to Five Years | 781 | |
After Five Years | 166 | |
Total | 1,160,541 | $ 1,239,746 |
Fed funds purchased & repurchase agreements | 49,881 | 14,921 |
FHLB borrowings | ||
Within One Year | 163,000 | |
One to Two Years | 21,500 | |
Two to Three Years | 46,017 | |
Three to Four Years | 0 | |
Four to Five Years | 5,100 | |
After Five Years | 215,000 | |
Total | 450,617 | $ 358,743 |
Total | ||
Within One Year | 1,145,324 | |
One to Two Years | 119,492 | |
Two to Three Years | 139,091 | |
Three to Four Years | 36,085 | |
Four to Five Years | 5,881 | |
After Five Years | 216,108 | |
Total | 1,661,981 | |
Trust preferred securities | ||
Trust preferred securities | ||
Within One Year | 0 | |
One to Two Years | 0 | |
Two to Three Years | 0 | |
Three to Four Years | 0 | |
Four to Five Years | 0 | |
After Five Years | 942 | |
Total | 942 | |
Total | ||
Contract value | $ 2,600 |
Change in Accumulated Other C_3
Change in Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain on sale of available-for-sale securities | $ 320 | $ 406 | $ 713 | $ 433 |
Income tax expense | (863) | 2,297 | (570) | 2,716 |
Net Income (Loss) | (7,356) | 9,439 | (3,499) | 18,789 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain on sale of available-for-sale securities | 320 | 406 | 713 | 433 |
Income tax expense | 78 | 100 | 174 | 107 |
Net Income (Loss) | $ 242 | $ 306 | $ 539 | $ 326 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 642,345 | $ 633,228 |
Actual, ratio | 13.30% | 13.40% |
Tier I Capital to Risk-Weighted Assets | ||
Actual, amount | $ 581,634 | $ 576,332 |
Actual, ratio | 12.00% | 12.20% |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Actual, amount | $ 580,692 | $ 575,411 |
Actual, ratio | 12.00% | 12.20% |
Tier I Capital to Average Assets | ||
Actual, amount | $ 581,634 | $ 576,332 |
Actual, ratio | 10.70% | 12.10% |
Bank | ||
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 591,096 | $ 581,600 |
Actual, ratio | 12.20% | 12.30% |
Required to be considered well capitalized, amount | $ 484,053 | $ 471,385 |
Required to be considered well capitalized, ratio | 10.00% | 10.00% |
Tier I Capital to Risk-Weighted Assets | ||
Actual, amount | $ 530,458 | $ 524,704 |
Actual, ratio | 11.00% | 11.10% |
Required to be considered well capitalized, amount | $ 387,242 | $ 377,108 |
Required to be considered well capitalized, ratio | 8.00% | 8.00% |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Actual, amount | $ 530,458 | $ 524,704 |
Actual, ratio | 11.00% | 11.10% |
Required to be considered well capitalized, amount | $ 314,634 | $ 306,400 |
Required to be considered well capitalized, ratio | 6.50% | 6.50% |
Tier I Capital to Average Assets | ||
Actual, amount | $ 530,458 | $ 524,704 |
Actual, ratio | 9.80% | 11.00% |
Required to be considered well capitalized, amount | $ 270,571 | $ 238,963 |
Required to be considered well capitalized, ratio | 5.00% | 5.00% |
Minimum Capital Required - Basel III Fully Phased-In | ||
Total Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 508,386 | $ 495,095 |
Minimum capital required, Basel III fully phased-in, ratio | 10.50% | 10.50% |
Tier I Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 411,551 | $ 400,791 |
Minimum capital required, Basel III fully phased-in, ratio | 8.50% | 8.50% |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 338,924 | $ 330,063 |
Minimum capital required, Basel III fully phased-in, ratio | 7.00% | 7.00% |
Tier I Capital to Average Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 216,445 | $ 191,099 |
Minimum capital required, Basel III fully phased-in, ratio | 4.00% | 4.00% |
Minimum Capital Required - Basel III Fully Phased-In | Bank | ||
Total Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 508,256 | $ 494,954 |
Minimum capital required, Basel III fully phased-in, ratio | 10.50% | 10.50% |
Tier I Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 411,445 | $ 400,677 |
Minimum capital required, Basel III fully phased-in, ratio | 8.50% | 8.50% |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 338,837 | $ 329,970 |
Minimum capital required, Basel III fully phased-in, ratio | 7.00% | 7.00% |
Tier I Capital to Average Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 216,457 | $ 191,170 |
Minimum capital required, Basel III fully phased-in, ratio | 4.00% | 4.00% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)shares | |
Performance Based Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Granted (in shares) | 41,283 |
Award performance metric period | 3 years |
Unrecognized compensation cost | $ | $ 622 |
Period for recognizing stock-based compensation expense | 2 years 3 months 18 days |
Performance Based Stock Awards | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award payout percentage | 0.00% |
Performance Based Stock Awards | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award payout percentage | 150.00% |
Restricted Stock Units - Issued Prior to 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
All Other Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 1 year |
Restricted Stock Units and Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted (in shares) | 293,297 |
Unrecognized compensation cost | $ | $ 5,000 |
Period for recognizing stock-based compensation expense | 1 year 9 months 18 days |
2018 Omnibus Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized for future issuance (in shares) | 1,956,634 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 1,082 | $ 1,146 | $ 2,016 | $ 2,281 |
Stock appreciation rights | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 238 | 271 | 494 | 530 |
Performance based stock awards | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 22 | 155 | 96 | 250 |
Restricted stock units and awards | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 822 | 721 | 1,426 | 1,465 |
Employee stock purchase plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 0 | $ (1) | $ 0 | $ 36 |
Stock-Based Compensation - Stat
Stock-Based Compensation - Status and Changes in Performance-Based Awards (Details) - Performance Based Stock Awards | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 192,248 |
Granted (in shares) | shares | 41,283 |
Vested (in shares) | shares | 0 |
Forfeited (in shares) | shares | 0 |
Ending balance (in shares) | shares | 233,531 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 9.88 |
Granted (in dollars per share) | $ / shares | 13.55 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited (in dollars per share) | $ / shares | 0 |
Ending balance (in dollars per share) | $ / shares | $ 10.53 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Status and Changes in RSUs and RSAs (Details) - Restricted Stock Units and Awards | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 340,780 |
Granted (in shares) | shares | 293,297 |
Vested (in shares) | shares | (106,146) |
Forfeited (in shares) | shares | (5,952) |
Ending balance (in shares) | shares | 521,979 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 15.35 |
Granted (in dollars per share) | $ / shares | 11.84 |
Vested (in dollars per share) | $ / shares | 12.58 |
Forfeited (in dollars per share) | $ / shares | 14.25 |
Ending balance (in dollars per share) | $ / shares | $ 13.41 |
Income Tax - Effective Income T
Income Tax - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Computed at the statutory rate (21%) | $ (1,727) | $ 2,465 | $ (855) | $ 4,516 |
Increase (decrease) resulting from | ||||
Tax-exempt income | (779) | (712) | (1,569) | (1,425) |
Nondeductible expenses | 34 | 64 | 98 | 137 |
State tax credit | 0 | 0 | 0 | (1,361) |
State income taxes | 39 | 519 | 181 | 960 |
Equity based compensation | 13 | (6) | 39 | (61) |
Goodwill impairment | 1,553 | 0 | 1,553 | 0 |
Other adjustments | 4 | (33) | (17) | (50) |
Income tax expense | $ (863) | $ 2,297 | $ (570) | $ 2,716 |
Income Tax - Deferred Tax Asset
Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Allowance for loan losses | $ 17,426 | $ 13,928 |
Lease incentive | 279 | 294 |
Impairment of available-for-sale securities | 0 | 493 |
Valuation allowance on real estate | 273 | 0 |
Loan fees | 3,921 | 2,317 |
Net operating loss carryover | 353 | 339 |
Accrued expenses | 1,016 | 2,131 |
Deferred compensation | 2,213 | 2,444 |
State tax credit | 2,842 | 3,287 |
Other | 431 | 81 |
Total deferred tax asset | 28,754 | 25,314 |
Deferred tax liability | ||
Fair market value adjustments - trust preferred securities | (344) | (348) |
Net unrealized gain on securities available-for-sale | (8,134) | (5,339) |
FHLB stock basis | (1,133) | (996) |
Premises and equipment | (3,303) | (3,620) |
Other | (999) | (1,229) |
Total deferred tax liability | (13,913) | (11,532) |
Net deferred tax asset | $ 14,841 | $ 13,782 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments - Nonrecurring Measurements (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | $ 32,024 | $ 20,889 |
Foreclosed assets held-for-sale | 2,502 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 0 | 0 |
Foreclosed assets held-for-sale | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 0 | 0 |
Foreclosed assets held-for-sale | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 32,024 | $ 20,889 |
Foreclosed assets held-for-sale | $ 2,502 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Unobservable Inputs (Details) - Fair Value, Nonrecurring $ in Thousands | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | $ 32,024 | $ 20,889 |
Foreclosed assets held-for-sale | 2,502 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 32,024 | $ 20,889 |
Foreclosed assets held-for-sale | $ 2,502 | |
Level 3 | Marketability discount | Market comparable properties | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreclosed assets held-for-sale, measurement input | 0.10 | |
Level 3 | Marketability discount | Market comparable properties | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans, measurement input | 0.10 | 0.10 |
Level 3 | Marketability discount | Market comparable properties | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans, measurement input | 0.15 | 0.15 |
Level 3 | Marketability discount | Market comparable properties | Weighted Average | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans, measurement input | 0.12 | 0.12 |
Disclosures about Fair Value _5
Disclosures about Fair Value of Financial Instruments - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Available-for-sale securities | $ 697,847 | $ 739,473 |
Restricted equity securities | 20,675 | 17,278 |
Derivative assets | 29,302 | 9,838 |
Financial Liabilities | ||
Derivative liabilities | 29,432 | 9,907 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 194,371 | 187,320 |
Available-for-sale securities | 700,083 | 741,634 |
Loans, net of allowance for loan losses | 4,342,039 | 3,795,348 |
Restricted equity securities | 20,675 | 17,278 |
Interest receivable | 19,399 | 15,716 |
Derivative assets | 29,302 | 9,838 |
Total financial assets | 5,305,869 | 4,767,134 |
Financial Liabilities | ||
Deposits | 4,304,143 | 3,923,759 |
Federal funds purchased and repurchase agreements | 49,881 | 14,921 |
Federal Home Loan Bank advances | 450,617 | 358,743 |
Other borrowings | 942 | 921 |
Interest payable | 2,843 | 4,584 |
Derivative liabilities | 29,432 | 9,907 |
Total financial liabilities | 4,837,858 | 4,312,835 |
Estimate of Fair Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 194,371 | 187,320 |
Available-for-sale securities | 700,083 | 741,634 |
Loans, net of allowance for loan losses | 4,334,224 | 3,810,818 |
Restricted equity securities | 20,675 | 17,278 |
Interest receivable | 19,399 | 15,716 |
Derivative assets | 29,302 | 9,838 |
Total financial assets | 5,298,054 | 4,782,604 |
Financial Liabilities | ||
Deposits | 4,349,570 | 3,928,838 |
Federal funds purchased and repurchase agreements | 49,881 | 14,921 |
Federal Home Loan Bank advances | 468,650 | 357,859 |
Other borrowings | 1,722 | 2,147 |
Interest payable | 2,843 | 4,584 |
Derivative liabilities | 29,432 | 9,907 |
Total financial liabilities | 4,902,098 | 4,318,256 |
Estimate of Fair Value Measurement | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 194,371 | 187,320 |
Available-for-sale securities | 0 | 0 |
Loans, net of allowance for loan losses | 0 | 0 |
Restricted equity securities | 0 | 0 |
Interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Total financial assets | 194,371 | 187,320 |
Financial Liabilities | ||
Deposits | 750,333 | 521,826 |
Federal funds purchased and repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Other borrowings | 0 | 0 |
Interest payable | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total financial liabilities | 750,333 | 521,826 |
Estimate of Fair Value Measurement | Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 700,083 | 741,634 |
Loans, net of allowance for loan losses | 0 | 0 |
Restricted equity securities | 0 | 0 |
Interest receivable | 19,399 | 15,716 |
Derivative assets | 29,302 | 9,838 |
Total financial assets | 748,784 | 767,188 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Federal funds purchased and repurchase agreements | 49,881 | 14,921 |
Federal Home Loan Bank advances | 468,650 | 357,859 |
Other borrowings | 1,722 | 2,147 |
Interest payable | 2,843 | 4,584 |
Derivative liabilities | 29,432 | 9,907 |
Total financial liabilities | 552,528 | 389,418 |
Estimate of Fair Value Measurement | Level 3 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Loans, net of allowance for loan losses | 4,334,224 | 3,810,818 |
Restricted equity securities | 20,675 | 17,278 |
Interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Total financial assets | 4,354,899 | 3,828,096 |
Financial Liabilities | ||
Deposits | 3,599,237 | 3,407,012 |
Federal funds purchased and repurchase agreements | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Other borrowings | 0 | 0 |
Interest payable | 0 | 0 |
Derivative liabilities | 0 | 0 |
Total financial liabilities | $ 3,599,237 | $ 3,407,012 |
Commitments and Credit Risk (De
Commitments and Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Total commitments | $ 1,459,984 | $ 1,546,495 |
Commitments to originate loans | ||
Loss Contingencies [Line Items] | ||
Total commitments | 113,439 | 134,652 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | 38,342 | 39,035 |
Lines of credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | 1,290,998 | 1,351,873 |
Future lease commitments | ||
Loss Contingencies [Line Items] | ||
Total commitments | $ 17,205 | $ 20,935 |
Uncategorized Items - cfb-20200
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 68,000 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (68,000) |
Accounting Standards Update 2018-07 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2018-07 [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,159,000 |
Accounting Standards Update 2018-07 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,159,000) |