Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 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 $0.01 per share | |
Trading Symbol | CFB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 52,195,778 | |
Entity Central Index Key | 0001458412 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 223,636 | $ 187,320 |
Available-for-sale securities - taxable | 214,735 | 298,208 |
Available-for-sale securities - tax-exempt | 437,411 | 443,426 |
Loans, net of allowance for loan losses of $76,035 and $56,896 at September 30, 2020 and December 31, 2019, respectively | 4,401,774 | 3,795,348 |
Premises and equipment, net | 70,599 | 70,210 |
Restricted equity securities | 20,923 | 17,278 |
Interest receivable | 19,003 | 15,716 |
Foreclosed assets held for sale | 2,349 | 3,619 |
Deferred tax asset | 15,864 | 13,782 |
Goodwill and other intangible assets, net | 227 | 7,694 |
Bank-owned life insurance | 67,063 | 65,689 |
Other | 32,112 | 12,943 |
Total assets | 5,505,696 | 4,931,233 |
Deposits | ||
Noninterest-bearing | 754,172 | 521,826 |
Savings, NOW and money market | 2,597,691 | 2,162,187 |
Time | 1,140,686 | 1,239,746 |
Total deposits | 4,492,549 | 3,923,759 |
Federal funds purchased and repurchase agreements | 13,531 | 14,921 |
Federal Home Loan Bank advances | 336,100 | 358,743 |
Other borrowings | 952 | 921 |
Interest payable and other liabilities | 44,681 | 31,245 |
Total liabilities | 4,887,813 | 4,329,589 |
Stockholders’ equity | ||
Redeemable preferred stock | 0 | 0 |
Common stock | 521 | 520 |
Additional paid-in capital | 522,226 | 519,870 |
Retained earnings | 69,355 | 64,803 |
Accumulated other comprehensive income | 25,781 | 16,451 |
Total stockholders’ equity | 617,883 | 601,644 |
Total liabilities and stockholders’ equity | $ 5,505,696 | $ 4,931,233 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Allowance for loan losses | $ 76,035 | $ 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) | 52,195,778 | 51,969,203 |
Consolidated Statements of Inco
Consolidated Statements of Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest Income | ||||
Loans, including fees | $ 43,929 | $ 49,327 | $ 138,591 | $ 142,319 |
Available-for-sale securities - taxable | 1,042 | 1,991 | 4,174 | 6,646 |
Available-for-sale securities - tax-exempt | 3,186 | 2,969 | 9,758 | 8,820 |
Deposits with financial institutions | 47 | 970 | 583 | 2,452 |
Dividends on bank stocks | 248 | 272 | 808 | 801 |
Total interest income | 48,452 | 55,529 | 153,914 | 161,038 |
Interest Expense | ||||
Deposits | 7,298 | 18,003 | 29,975 | 51,421 |
Fed funds purchased and repurchase agreements | 54 | 74 | 162 | 501 |
Federal Home Loan Bank Advances | 1,749 | 1,629 | 4,980 | 4,739 |
Other borrowings | 24 | 37 | 85 | 112 |
Total interest expense | 9,125 | 19,743 | 35,202 | 56,773 |
Net Interest Income | 39,327 | 35,786 | 118,712 | 104,265 |
Provision for loan losses | 10,875 | 4,850 | 45,825 | 10,550 |
Net Interest Income after Provision for Loan Losses | 28,452 | 30,936 | 72,887 | 93,715 |
Non-Interest Income | ||||
Gain on sale of available-for-sale debt securities | 1,012 | 34 | 1,725 | 467 |
Impairment of premises and equipment held for sale | 0 | 0 | 0 | (424) |
Gain on sale of loans | 0 | 49 | 0 | 207 |
Income from bank-owned life insurance | 464 | 476 | 1,373 | 1,416 |
Swap fee income, net | 121 | 1,879 | 80 | 2,415 |
Other non-interest income | 192 | 226 | 804 | 695 |
Total non-interest income | 4,063 | 3,212 | 8,792 | 6,529 |
Non-Interest Expense | ||||
Salaries and employee benefits | 14,628 | 14,256 | 43,022 | 43,296 |
Occupancy | 2,144 | 2,080 | 6,274 | 6,301 |
Professional fees | 1,132 | 427 | 3,098 | 1,923 |
Deposit insurance premiums | 1,096 | 302 | 3,151 | 2,020 |
Data processing | 652 | 649 | 2,065 | 1,868 |
Advertising | 147 | 580 | 870 | 1,770 |
Software and communication | 959 | 900 | 2,772 | 2,407 |
Foreclosed assets, net | 20 | 8 | 1,174 | 33 |
Goodwill impairment | 0 | 0 | 7,397 | 0 |
Other non-interest expense | 2,233 | 1,970 | 6,421 | 6,145 |
Total non-interest expense | 23,011 | 21,172 | 76,244 | 65,763 |
Net Income Before Taxes | 9,504 | 12,976 | 5,435 | 34,481 |
Income tax expense | 1,498 | 2,592 | 928 | 5,308 |
Net Income | $ 8,006 | $ 10,384 | $ 4,507 | $ 29,173 |
Basic Earnings Per Share (in dollars per share) | $ 0.15 | $ 0.22 | $ 0.09 | $ 0.63 |
Diluted Earnings Per Share (in dollars per share) | $ 0.15 | $ 0.21 | $ 0.09 | $ 0.61 |
Service charges and fees on customer accounts | ||||
Non-Interest Income | ||||
Non-interest income | $ 792 | $ 72 | $ 1,947 | $ 441 |
ATM and credit card interchange income | ||||
Non-Interest Income | ||||
Non-interest income | $ 1,482 | $ 476 | $ 2,863 | $ 1,312 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,006 | $ 10,384 | $ 4,507 | $ 29,173 |
Other Comprehensive Income | ||||
Unrealized gain on available-for-sale debt securities | 1,923 | 5,757 | 14,073 | 28,084 |
Less: income tax | 472 | 1,410 | 3,440 | 6,890 |
Unrealized gain on available-for-sale debt securities, net of income tax | 1,451 | 4,347 | 10,633 | 21,194 |
Reclassification adjustment for realized gains included in income | 1,012 | 34 | 1,725 | 467 |
Less: income tax | 248 | 9 | 422 | 115 |
Less: reclassification adjustment for realized gains included in income, net of income tax | 764 | 25 | 1,303 | 352 |
Other comprehensive income | 687 | 4,322 | 9,330 | 20,842 |
Comprehensive Income | $ 8,693 | $ 14,706 | $ 13,837 | $ 50,015 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - Unaudited - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Preferred Stock | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment |
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) | ||||
Beginning balance (Adoption of ASU 2016-01) at Dec. 31, 2018 | $ 0 | $ (69) | $ 69 | |||||||
Beginning balance (Adoption of ASU 2018-07) at Dec. 31, 2018 | $ 0 | $ 2,159 | $ (2,159) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 29,173 | 29,173 | ||||||||
Change in unrealized appreciation on available-for-sale securities | 20,842 | 20,842 | ||||||||
Issuance of shares (in shares) | 6,851,213 | |||||||||
Issuance of shares | 88,937 | $ 68 | 88,869 | |||||||
Issuance of shares from equity-based awards (in shares) | 53,668 | |||||||||
Issuance of shares from equity-based awards | (245) | $ 1 | (246) | |||||||
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 | 5 | 112 | |||||||
Stock-based compensation | 3,569 | 3,569 | ||||||||
Employee stock purchase plan additions | 36 | 36 | ||||||||
Ending balance (in shares) at Sep. 30, 2019 | 0 | 51,969,203 | ||||||||
Ending balance at Sep. 30, 2019 | 602,435 | $ 0 | $ 520 | 518,816 | 65,198 | 17,901 | ||||
Beginning balance (in shares) at Jun. 30, 2019 | 0 | 45,367,641 | ||||||||
Beginning balance at Jun. 30, 2019 | 499,195 | $ 0 | $ 453 | 430,347 | 54,816 | 13,579 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 10,384 | 10,384 | ||||||||
Change in unrealized appreciation on available-for-sale securities | 4,322 | 4,322 | ||||||||
Issuance of shares (in shares) | 6,600,245 | |||||||||
Issuance of shares | 87,220 | $ 67 | 87,154 | (1) | ||||||
Issuance of shares from equity-based awards (in shares) | 1,317 | |||||||||
Issuance of shares from equity-based awards | (10) | (10) | ||||||||
Employee receivables from sale of stock | 0 | 1 | (1) | |||||||
Stock-based compensation | 1,324 | 1,324 | ||||||||
Ending balance (in shares) at Sep. 30, 2019 | 0 | 51,969,203 | ||||||||
Ending balance at Sep. 30, 2019 | 602,435 | $ 0 | $ 520 | 518,816 | 65,198 | 17,901 | ||||
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 | 4,507 | 4,507 | ||||||||
Change in unrealized appreciation on available-for-sale securities | 9,330 | 9,330 | ||||||||
Issuance of shares from equity-based awards (in shares) | 226,575 | |||||||||
Issuance of shares from equity-based awards | (868) | $ 1 | (869) | |||||||
Employee receivables from sale of stock | 47 | 2 | 45 | |||||||
Stock-based compensation | 3,202 | 3,202 | ||||||||
Employee stock purchase plan additions | 21 | 21 | ||||||||
Ending balance (in shares) at Sep. 30, 2020 | 0 | 52,195,778 | ||||||||
Ending balance at Sep. 30, 2020 | 617,883 | $ 0 | $ 521 | 522,226 | 69,355 | 25,781 | ||||
Beginning balance (in shares) at Jun. 30, 2020 | 0 | 52,167,573 | ||||||||
Beginning balance at Jun. 30, 2020 | 608,092 | $ 0 | $ 521 | 521,133 | 61,344 | 25,094 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 8,006 | 8,006 | ||||||||
Change in unrealized appreciation on available-for-sale securities | 687 | 687 | ||||||||
Issuance of shares from equity-based awards (in shares) | 28,205 | |||||||||
Issuance of shares from equity-based awards | (115) | (115) | ||||||||
Employee receivables from sale of stock | 6 | 1 | 5 | |||||||
Stock-based compensation | 1,186 | 1,186 | ||||||||
Employee stock purchase plan additions | 21 | 21 | ||||||||
Ending balance (in shares) at Sep. 30, 2020 | 0 | 52,195,778 | ||||||||
Ending balance at Sep. 30, 2020 | $ 617,883 | $ 0 | $ 521 | $ 522,226 | $ 69,355 | $ 25,781 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - Unaudited - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net income | $ 4,507 | $ 29,173 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 3,888 | 4,015 |
Provision for loan losses | 45,825 | 10,550 |
Accretion of discounts and amortization of premiums on securities | 4,632 | 4,098 |
Equity based compensation | 3,223 | 3,606 |
Foreclosed asset impairment | 1,270 | 0 |
Deferred income taxes | (5,098) | 2,088 |
Net realized gains on available-for-sale debt securities | (1,725) | (467) |
Goodwill impairment | 7,397 | 0 |
Changes in | ||
Interest receivable | (3,287) | (1,817) |
Other assets | (2,845) | (9,837) |
Other liabilities | (4,599) | 13,261 |
Net cash provided by operating activities | 53,188 | 54,670 |
Investing Activities | ||
Net change in loans | (652,251) | (576,897) |
Purchases of available-for-sale securities | (35,326) | (157,492) |
Proceeds from maturities of available-for-sale securities | 102,529 | 48,658 |
Proceeds from sale of available-for-sale securities | 31,810 | 63,515 |
Purchase of premises and equipment | (4,849) | (649) |
Proceeds from the sale of fixed assets | 121 | 3,324 |
Purchase of restricted equity securities, net | (2,839) | (732) |
Net cash used in investing activities | (560,805) | (620,273) |
Financing Activities | ||
Net increase in demand deposits, savings, NOW and money market accounts | 667,849 | 237,934 |
Net increase (decrease) in time deposits | (99,060) | 212,077 |
Net decrease in repurchase agreements and federal funds purchased | (1,390) | (50,596) |
Net increase in federal funds sold | 0 | 25,000 |
Proceeds from Federal Home Loan Bank advances | 138,000 | 45,000 |
Repayment of Federal Home Loan Bank advances | (160,643) | (50,181) |
Retirement of preferred stock | 0 | (30,000) |
Issuance of common shares, net of issuance cost | 0 | 88,782 |
Acquisition of common stock for tax withholding obligations | (869) | (245) |
Net decrease in employee receivables | 46 | 117 |
Dividends paid on preferred stock | 0 | (700) |
Net cash provided by financing activities | 543,933 | 477,188 |
Increase (Decrease) in Cash and Cash Equivalents | 36,316 | (88,415) |
Cash and Cash Equivalents, Beginning of Period | 187,320 | 216,541 |
Cash and Cash Equivalents, End of Period | 223,636 | 128,126 |
Supplemental Cash Flows Information | ||
Interest paid | 37,238 | 54,998 |
Income taxes paid | 7,335 | 1,030 |
Foreclosed assets in settlement of loans | $ 0 | $ 2,471 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 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”) 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, 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, LLC. 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 footnotes 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 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 $176 million of cash and cash equivalents at the Federal Reserve Bank of Kansas City as of September 30, 2020. The reserve required at September 30, 2020 was $0. 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 and periods going forward, 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. At 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 Beginning with the quarter ended June 30, 2020, the Company separated the “Foreclosed assets, net” from the “other non-interest expense” category within the Consolidated Statements of Income. The separation was due to an increase in foreclosed asset expenses during 2020. The change had no impact on net income or total stockholders’ equity. Beginning with 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 (“ALLL”)” 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 impaired loan information at December 31, 2019 or ALLL information for the three and nine months ended September 30, 2019 as presented in “Note 4: Loans and Allowance for Loan Losses (“ALLL”)” 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. Emerging Growth Company (“EGC”) The Company is currently an EGC. 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 September 30, 2020. The Company does not believe the adoption will have a material accounting impact on the Company’s consolidated financial position or results of operations. Additionally, LIBOR fallback language has been included in key loan provisions of new and renewed loans in preparation for transition from LIBOR to the new benchmark rate when such transition occurs. This standard is expected to ease the administrative burden in accounting for the future effects of reference rate reform. The ASU allows the Company to recognize the modification related to LIBOR as a continuation of the old contract, rather than a cancellation of the old contract resulting in a write off of unamortized fees and creation of a new contract. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2020 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 Company’s 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 Company’s financial statements. The Company provided updates to the following ASUs that have not 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 the Company maintains its 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. The Company completed the third party software implementation phase that included data capture and portfolio segmentation amongst other items. Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-02 Leases (Topic 842) The Company expects to implement this standard on January 1, 2022, unless the Company loses its EGC status during 2021. If EGC status changes, the Company would therefore be required to implement the ASU as of the beginning of 2021. Requires lessees and lessors to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. 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 Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands except per share data) Earnings per Share Net income $ 8,006 $ 10,384 $ 4,507 $ 29,173 Less: preferred stock dividends — — — 175 Net income available to common stockholders $ 8,006 $ 10,384 $ 4,507 $ 28,998 Weighted average common shares 52,136,286 48,351,553 52,104,372 46,239,021 Earnings per share $ 0.15 $ 0.22 $ 0.09 $ 0.63 Dilutive Earnings Per Share Net income available to common stockholders $ 8,006 $ 10,384 $ 4,507 $ 28,998 Weighted average common shares 52,136,286 48,351,553 52,104,372 46,239,021 Effect of dilutive shares 423,840 812,996 463,219 842,706 Weighted average dilutive common shares 52,560,126 49,164,549 52,567,591 47,081,727 Diluted earnings per share $ 0.15 $ 0.21 $ 0.09 $ 0.61 Stock-based awards not included because to do so would be antidilutive 1,214,433 541,556 1,053,393 507,167 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | 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: September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ 122,093 $ 4,690 $ — $ 126,783 Collateralized mortgage obligations - GSE residential 71,735 1,271 7 72,999 State and political subdivisions 421,075 28,339 220 449,194 Corporate bonds 860 67 2 925 Total available-for-sale debt securities 615,763 34,367 229 649,901 Equity securities Mutual funds 2,222 23 — 2,245 Total equity securities 2,222 23 — 2,245 Total available-for-sale securities $ 617,985 $ 34,390 $ 229 $ 652,146 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 amortized cost and fair value of available-for-sale debt securities at September 30, 2020, by contractual maturity, are shown below: September 30, 2020 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ 55 $ 199 $ 121,839 $ 122,093 Estimated fair value $ — $ 58 $ 213 $ 126,512 $ 126,783 Weighted average yield (2) — % 4.57 % 3.91 % 2.03 % 2.06 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,496 $ 69,239 $ 71,735 Estimated fair value $ — $ — $ 2,735 $ 70,264 $ 72,999 Weighted average yield (2) — % — % 2.77 % 1.10 % 1.16 % State and political subdivisions Amortized cost $ 653 $ 7,407 $ 59,992 $ 353,023 $ 421,075 Estimated fair value $ 654 $ 7,573 $ 65,059 $ 375,908 $ 449,194 Weighted average yield (2) 8.02 % 5.44 % 3.52 % 3.08 % 3.19 % Corporate bonds Amortized cost $ — $ — $ 860 $ — $ 860 Estimated fair value $ — $ — $ 925 $ — $ 925 Weighted average yield (2) — % — % 5.57 % — % 5.57 % Total available-for-sale debt securities Amortized cost $ 653 $ 7,462 $ 63,547 $ 544,101 $ 615,763 Estimated fair value $ 654 $ 7,631 $ 68,932 $ 572,684 $ 649,901 Weighted average yield (2) 8.02 % 5.44 % 3.52 % 2.59 % 2.73 % (1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. (2) Yields are calculated based on amortized cost. The following tables show the number of securities, unrealized loss, 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 September 30, 2020 and December 31, 2019: September 30, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ — $ — — $ — $ — — $ — $ — — Collateralized mortgage obligations - GSE residential 3,178 7 1 — — — 3,178 7 1 State and political subdivisions 14,998 220 19 26 — 1 15,024 220 20 Corporate bonds 457 2 1 — — — 457 2 1 Total temporarily impaired debt securities $ 18,633 $ 229 21 $ 26 $ — 1 $ 18,659 $ 229 22 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 The Company expects to recover the amortized cost basis over the term of the securities. 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. 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 $2 million and $506 thousand and gross losses of $60 thousand and $39 thousand resulting from sales of available-for-sale securities were realized for the nine-months ended September 30, 2020 and 2019, respectively. The gross gains as of September 30, 2020, included $75 thousand related to a previously disclosed OTTI municipal security that was settled in 2020. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses ("ALLL") | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses ("ALLL") | Loans and Allowance for Loan Losses (“ALLL”) Categories of loans at September 30, 2020 and December 31, 2019 include: September 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 1,291,572 $ 1,356,817 Energy 384,181 408,573 Commercial real estate 1,195,631 1,024,041 Construction and land development 587,617 628,418 Residential real estate 618,082 398,695 Paycheck Protection Program (“PPP”) 369,260 — Consumer 46,771 45,163 Gross loans 4,493,114 3,861,707 Less: Allowance for loan losses 76,035 56,896 Less: Net deferred loan fees and costs 15,305 9,463 Net loans $ 4,401,774 $ 3,795,348 Allowance for Loan Losses The ALLL 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 ALLL 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 ALLL 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 ALLL methodology on an ongoing basis. Starting with 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 PPP loans that are 100% guaranteed by the Small Business Administration (“SBA”). No additional changes to loan definitions, segmentation, and ALLL methodology occurred during the third quarter of 2020. The following tables summarize the activity in the ALLL 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 September 30, 2020 Allowance for loan losses Beginning balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Provision charged to expense 7,439 2,168 908 (530) 882 — 8 10,875 Charge-offs (5,781) — — — (256) — — (6,037) Recoveries 2 — — — — — 10 12 Ending balance $ 28,203 $ 19,540 $ 17,807 $ 4,489 $ 5,494 $ — $ 502 $ 76,035 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Three months ended September 30, 2019 Allowance for loan losses Beginning balance $ 22,975 $ 7,300 $ 7,533 $ 2,602 $ 2,138 $ — $ 304 $ 42,852 Provision charged to expense 3,535 1,077 (249) 414 82 — (9) 4,850 Charge-offs (1,700) (3,000) — — — — (8) (4,708) Recoveries 1 — — — — — — 1 Ending balance $ 24,811 $ 5,377 $ 7,284 $ 3,016 $ 2,220 $ — $ 287 $ 42,995 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Nine months ended September 30, 2020 Allowance for loan losses Beginning balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Provision charged to expense 16,210 15,253 9,722 973 3,393 — 274 45,825 Charge-offs (23,946) (2,278) — — (445) — (104) (26,773) Recoveries 75 — — — — — 12 87 Ending balance $ 28,203 $ 19,540 $ 17,807 $ 4,489 $ 5,494 $ — $ 502 $ 76,035 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Nine months ended September 30, 2019 Allowance for loan losses Beginning balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 Provision charged to expense 11,166 (2,461) 529 541 756 — $ 19 10,550 Charge-offs (2,954) (3,000) — — — — (19) (5,973) Recoveries 15 576 — — — — 1 592 Ending balance $ 24,811 $ 5,377 $ 7,284 $ 3,016 $ 2,220 $ — $ 287 $ 42,995 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) September 30, 2020 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 2,432 $ 2,540 $ 1,525 $ — $ — $ — $ — $ 6,497 Collectively evaluated for impairment $ 25,771 $ 17,000 $ 16,282 $ 4,489 $ 5,494 $ — $ 502 $ 69,538 Ending balance $ 28,203 $ 19,540 $ 17,807 $ 4,489 $ 5,494 $ — $ 502 $ 76,035 Allocated to loans: Individually evaluated for impairment $ 38,589 $ 21,318 $ 17,035 $ — $ 6,406 $ — $ 246 $ 83,594 Collectively evaluated for impairment $ 1,252,983 $ 362,863 $ 1,178,596 $ 587,617 $ 611,676 $ 369,260 $ 46,525 $ 4,409,520 Ending balance $ 1,291,572 $ 384,181 $ 1,195,631 $ 587,617 $ 618,082 $ 369,260 $ 46,771 $ 4,493,114 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) December 31, 2019 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 19,942 $ 1,949 $ 210 $ — $ 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 ALLL. 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 or 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, 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 internal rating categories (grades 1 - 8), portfolio segmentation, and payment activity: Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) September 30, 2020 Commercial $ 1,106,338 $ 71,746 $ 75,714 $ 34,528 $ 3,246 $ — $ 1,291,572 Energy 186,881 58,726 117,389 17,435 3,750 — 384,181 Commercial real estate 1,114,802 41,030 26,624 12,377 798 — 1,195,631 Construction and land development 581,160 5,299 1,158 — — — 587,617 Residential real estate 610,909 527 3,467 3,179 — — 618,082 PPP 369,260 — — — — — 369,260 Consumer 46,525 — — 246 — — 46,771 $ 4,015,875 $ 177,328 $ 224,352 $ 67,765 $ 7,794 $ — $ 4,493,114 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 as of September 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) September 30, 2020 Commercial $ 12,274 $ 28,487 $ 6,641 $ 47,402 $ 1,244,170 $ 1,291,572 $ 1,141 Energy — 1,540 3,055 4,595 379,586 384,181 — Commercial real estate 1,459 — 4,475 5,934 1,189,697 1,195,631 — Construction and land development — — — — 587,617 587,617 — Residential real estate 1,591 — 6,124 7,715 610,367 618,082 3,183 PPP — — — — 369,260 369,260 — Consumer — — — — 46,771 46,771 — $ 15,324 $ 30,027 $ 20,295 $ 65,646 $ 4,427,468 $ 4,493,114 $ 4,324 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) December 31, 2019 Commercial $ 1,091 $ 276 $ 30,911 $ 32,278 $ 1,324,539 $ 1,356,817 $ 37 Energy 2,340 — 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 September 30, 2020 and December 31, 2019: Unpaid Recorded Balance Principal Balance Specific Allowance (Dollars in thousands) September 30, 2020 Loans without a specific valuation Commercial $ 29,439 $ 35,220 $ — Energy — — — Commercial real estate 4,628 4,628 — Construction and land development — — — Residential real estate 6,406 6,662 — PPP — — — Consumer 246 246 — Loans with a specific valuation Commercial 9,150 20,538 2,432 Energy 21,318 26,597 2,540 Commercial real estate 12,407 13,206 1,525 Construction and land development — — — Residential real estate — — — PPP — — — Consumer — — — Total Commercial 38,589 55,758 2,432 Energy 21,318 26,597 2,540 Commercial real estate 17,035 17,834 1,525 Construction and land development — — — Residential real estate 6,406 6,662 — PPP — — — Consumer 246 246 — $ 83,594 $ 107,097 $ 6,497 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 nine month periods ended September 30, 2020 and 2019 for impaired loans, including all restructured and formerly restructured loans, held at the end of each period: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 12 $ 386 $ 841 $ 862 Energy 2 98 257 324 Commercial real estate 58 200 346 613 Construction and land development — — — — Residential real estate 36 8 108 17 PPP — — — — Consumer — — — — Total interest income recognized $ 108 $ 692 $ 1,552 $ 1,816 The table below shows the three and nine month average balance of impaired loans for the periods ended September 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 45,482 $ 54,410 $ 49,538 $ 49,265 Energy 21,396 13,623 23,220 15,091 Commercial real estate 17,937 16,690 18,132 16,528 Construction and land development — — — — Residential real estate 6,419 2,538 6,304 2,354 PPP — — — — Consumer 248 — 253 — Total average impaired loans $ 91,482 $ 87,261 $ 97,447 $ 83,238 Non-accrual Loans Non-accrual 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 September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 37,774 $ 32,130 Energy 21,185 4,540 Commercial real estate 13,176 1,063 Construction and land development — — Residential real estate 3,179 1,942 PPP — — Consumer 246 — Total non-accrual loans $ 75,560 $ 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. For the three and nine-month periods ended September 30, 2020, the modifications related to the TDRs below did not impact the ALLL because the loans were previously impaired and evaluated on an individual basis or enough collateral was obtained. The table below presents loans restructured, excluding loans restructured as a result of the COVID-19 pandemic, during the three and nine months ended September 30, 2020 and 2019, including the post-modification outstanding balance and the type of concession made: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial - Interest rate reduction $ — $ — $ 3,171 $ — - Reduction of monthly payment — — — 994 - Extension of maturity date — — — 30,005 Energy - Extension of maturity date — — 2,340 — Commercial real estate - Reduction of monthly payment — — — 3,767 Residential real estate - Payment deferral — — 65 — Total troubled debt restructurings $ — $ — $ 5,576 $ 34,766 The balance of restructured loans, excluding loans restructured as a result of the COVID-19 pandemic, is provided below as of September 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 September 30, 2020 and December 31, 2019 is provided below: September 30, 2020 December 31, 2019 Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) (Dollars in thousands) Commercial 6 $ 7,895 $ 3,762 7 $ 31,770 $ 831 Energy 3 3,373 2,713 2 2,864 — Commercial real estate 3 4,683 — 3 4,909 — Construction and land development — — — — — — Residential real estate 2 3,247 45 — — — PPP — — — — — — Consumer — — — — — — Total troubled debt restructured loans 14 $ 19,198 $ 6,520 12 $ 39,543 $ 831 (1) Default is considered to mean 90 days or more past due as to interest or principal. The TDRs above had an allowance of $3 million and $18 million as of September 30, 2020 and December 31, 2019, respectively. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 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 Statements 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 September 30, 2020 and December 31, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: September 30, 2020 December 31, 2019 Product Number of Instruments Notional Amount Number of Instruments Notional Amount (Dollars in thousands) Back-to-back swaps 60 $ 545,559 56 $ 380,050 The table below presents the fair value of the Company’s derivative financial instruments and their classification on the Balance Sheet as of September 30, 2020 and December 31, 2019: Asset Derivatives Liability Derivatives Balance Sheet September 30, December 31, Balance Sheet September 30, December 31, Location 2020 2019 Location 2020 2019 (Dollars in thousands) Derivatives not designated as hedging instruments Interest rate products Other assets $ 27,873 $ 9,838 Other liabilities $ 27,949 $ 9,907 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 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 and more frequently if events or circumstances indicate a potential impairment may exist. The Company compares the reporting unit’s fair value with its carrying amount, including goodwill. If the carrying amount exceeds fair value, an impairment loss is recognized in an amount equal to that excess. 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 goodwill impairment test. The 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 reporting unit’s fair value being less than the carrying value. The Tulsa, Oklahoma market represented the reporting unit and included all goodwill previously recorded. The reporting unit’s fair value 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 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 nine-months ended September 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 — (70) (70) Balance at September 30, 2020 $ — $ 227 $ 227 |
Time Deposits and Borrowings
Time Deposits and Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Maturities of Time Deposits [Abstract] | |
Time Deposits and Borrowings | Time Deposits and Borrowings The scheduled maturities, excluding interest, of the Company’s borrowings at September 30, 2020 were as follows: September 30, 2020 Within One Year One to Two Years Two to Three Years Three to Four Years Four to Five Years After Five Years Total (Dollars in thousands) Time deposits $ 948,251 $ 115,197 $ 52,074 $ 24,669 $ 495 $ — $ 1,140,686 Fed funds purchased & repurchase agreements 13,531 — — — — — 13,531 FHLB borrowings 59,500 21,500 35,000 — 5,100 215,000 336,100 Trust preferred securities (1) — — — — — 952 952 $ 1,021,282 $ 136,697 $ 87,074 $ 24,669 $ 5,595 $ 215,952 $ 1,491,269 |
Change in Accumulated Other Com
Change in Accumulated Other Comprehensive Income ("AOCI") | 9 Months Ended |
Sep. 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 nine months ended September 30, 2020 and 2019, were as follows: Three Months Ended Nine Months Ended September 30, September 30, Affected Line Item in the 2020 2019 2020 2019 Statements of Operations (Dollars in thousands) Unrealized gains on available-for-sale securities $ 1,012 $ 34 $ 1,725 $ 467 Gain on sale of available-for-sale debt securities Less: tax effect 248 9 422 115 Income tax expense Net reclassified amount $ 764 $ 25 $ 1,303 $ 352 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation, Risk-Based Information [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 September 30, 2020, the Company and the Bank met all capital adequacy requirements to which they are subject. The capital rules require the Company 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) September 30, 2020 Total Capital to Risk-Weighted Assets Consolidated $ 652,827 13.2 % $ 518,259 10.5 % N/A N/A Bank 601,491 12.2 518,063 10.5 $ 493,393 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 590,952 12.0 419,543 8.5 N/A N/A Bank 539,639 10.9 419,384 8.5 394,714 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 590,000 12.0 345,506 7.0 N/A N/A Bank 539,639 10.9 345,375 7.0 320,706 6.5 Tier I Capital to Average Assets Consolidated 590,952 10.8 217,932 4.0 N/A N/A Bank $ 539,639 9.9 % $ 217,994 4.0 % $ 272,492 5.0 % December 31, 2019 Total Capital to Risk-Weighted Assets Consolidated $ 633,228 13.4 % $ 495,095 10.5 % N/A N/A Bank 581,600 12.3 494,954 10.5 $ 471,385 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 576,332 12.2 400,791 8.5 N/A N/A Bank 524,704 11.1 400,677 8.5 377,108 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 575,411 12.2 330,063 7.0 N/A N/A Bank 524,704 11.1 329,970 7.0 306,400 6.5 Tier I Capital to Average Assets Consolidated 576,332 12.1 191,099 4.0 N/A N/A Bank $ 524,704 11.0 % $ 191,170 4.0 % $ 238,963 5.0 % |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 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 1,982,634 shares as of September 30, 2020. The table below summarizes the stock-based compensation for the three and nine-months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Stock appreciation rights $ 250 $ 446 $ 744 $ 977 Performance-based stock awards 79 159 175 409 Restricted stock units and awards 857 719 2,283 2,184 Employee stock purchase plan 21 — 21 36 Total stock-based compensation $ 1,207 $ 1,324 $ 3,223 $ 3,606 Performance Based Stock Awards (“PBSAs”) The Company awards PBSAs to key officers of the Company. 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 nine months ended September 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, September 30, 2020 233,531 $10.53 Unrecognized stock-based compensation related to the performance awards issued through September 30, 2020 was $531 thousand and is expected to be recognized over 2.1 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 (15,086) 14.54 Unvested, September 30, 2020 512,845 $13.38 Unrecognized stock-based compensation related to the RSUs and RSAs issued through September 30, 2020 was $4 million and is expected to be recognized over 1.7 years. |
Income Tax
Income Tax | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax | Income Tax An income tax expense reconciliation at the statutory rate to the Company’s actual income tax expense is shown below: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Computed at the statutory rate (21%) $ 1,996 $ 2,725 $ 1,141 $ 7,241 Increase (decrease) resulting from Tax-exempt income (766) (722) (2,335) (2,147) Nondeductible expenses 21 71 119 208 State tax credit — — — (1,361) State income taxes 320 566 501 1,526 Equity based compensation (15) (5) 24 (66) Goodwill impairment — — 1,553 — Other adjustments (58) (43) (75) (93) Actual tax expense $ 1,498 $ 2,592 $ 928 $ 5,308 The tax effects of temporary differences related to deferred taxes shown on the consolidated Balance Sheets are presented below: September 30, 2020 December 31, 2019 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 18,613 $ 13,928 Lease incentive 322 294 Impairment of available-for-sale securities — 493 Valuation allowance on real estate 269 — Loan fees 3,747 2,317 Net operating loss carryover 344 339 Accrued expenses 1,485 2,131 Deferred compensation 2,776 2,444 State tax credit 2,519 3,287 Other 60 81 Total deferred tax asset 30,135 25,314 Deferred tax liability Fair market value adjustments - trust preferred securities (341) (348) Net unrealized gain on securities available-for-sale (8,357) (5,339) FHLB stock basis (1,194) (996) Premises and equipment (3,150) (3,620) Other (1,229) (1,229) Total deferred tax liability (14,271) (11,532) Net deferred tax asset $ 15,864 $ 13,782 CARES Act The CARES Act, enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. As a result of the CARES Act, 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. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 9 Months Ended |
Sep. 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 September 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 September 30, 2020 and December 31, 2019: September 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 $ 36,378 $ — $ — $ 36,378 Foreclosed assets held-for-sale $ 2,349 $ — $ — $ 2,349 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 September 30, 2020 and December 31, 2019: September 30, 2020 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral-dependent impaired loans $ 36,378 Market comparable properties Marketability discount 10% - 15% (12%) Foreclosed assets held-for-sale $ 2,349 Market comparable properties Marketability discount 10% December 31, 2019 Fair Value Valuation Techniques Unobservable Inputs Range (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 September 30, 2020 and December 31, 2019: September 30, 2020 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 223,636 $ 223,636 $ — $ — $ 223,636 Available-for-sale securities 652,146 — 652,146 — 652,146 Loans, net of allowance for loan losses 4,401,774 — — 4,386,027 4,386,027 Restricted equity securities 20,923 — — 20,923 20,923 Interest receivable 19,003 — 19,003 — 19,003 Derivative assets 27,873 — 27,873 — 27,873 $ 5,345,355 $ 223,636 $ 699,022 $ 4,406,950 $ 5,329,608 Financial Liabilities Deposits $ 4,492,549 $ 754,172 $ — $ 3,784,666 $ 4,538,838 Federal funds purchased and repurchase agreements 13,531 — 13,531 — 13,531 Federal Home Loan Bank advances 336,100 — 353,309 — 353,309 Other borrowings 952 — 1,897 — 1,897 Interest payable 2,550 — 2,550 — 2,550 Derivative liabilities 27,949 — 27,949 — 27,949 $ 4,873,631 $ 754,172 $ 399,236 $ 3,784,666 $ 4,938,074 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 | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Credit Risk | Commitments and Credit Risk Commitments The Company had the following commitments at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (Dollars in thousands) Commitments to originate loans $ 188,347 $ 134,652 Standby letters of credit 42,204 39,035 Lines of credit 1,362,440 1,351,873 Future lease commitments — 20,935 Total $ 1,592,991 $ 1,546,495 |
Legal and Regulatory Proceeding
Legal and Regulatory Proceedings | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 20, 2020, the Company announced that its Board of Directors adopted a new stock repurchase program. Under the repurchase program, the Company may repurchase Company common stock with up to $20 million in value. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 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, LLC. 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 footnotes 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 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 $176 million of cash and cash equivalents at the Federal Reserve Bank of Kansas City as of September 30, 2020. The reserve required at September 30, 2020 was $0. |
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 and periods going forward, 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. At 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 September 30, 2020. The Company does not believe the adoption will have a material accounting impact on the Company’s consolidated financial position or results of operations. Additionally, LIBOR fallback language has been included in key loan provisions of new and renewed loans in preparation for transition from LIBOR to the new benchmark rate when such transition occurs. This standard is expected to ease the administrative burden in accounting for the future effects of reference rate reform. The ASU allows the Company to recognize the modification related to LIBOR as a continuation of the old contract, rather than a cancellation of the old contract resulting in a write off of unamortized fees and creation of a new contract. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2020 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 Company’s 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 Company’s financial statements. The Company provided updates to the following ASUs that have not 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 the Company maintains its 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. The Company completed the third party software implementation phase that included data capture and portfolio segmentation amongst other items. Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-02 Leases (Topic 842) The Company expects to implement this standard on January 1, 2022, unless the Company loses its EGC status during 2021. If EGC status changes, the Company would therefore be required to implement the ASU as of the beginning of 2021. Requires lessees and lessors to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. 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 Beginning with the quarter ended June 30, 2020, the Company separated the “Foreclosed assets, net” from the “other non-interest expense” category within the Consolidated Statements of Income. The separation was due to an increase in foreclosed asset expenses during 2020. The change had no impact on net income or total stockholders’ equity. Beginning with 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 (“ALLL”)” 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 impaired loan information at December 31, 2019 or ALLL information for the three and nine months ended September 30, 2019 as presented in “Note 4: Loans and Allowance for Loan Losses (“ALLL”)” within the Notes to the Unaudited Consolidated Financial Statements. |
Allowance for Loan Losses | Allowance for Loan Losses The ALLL 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 ALLL 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 ALLL 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 ALLL methodology on an ongoing basis. Starting with 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 PPP loans that are 100% guaranteed by the Small Business Administration (“SBA”). No additional changes to loan definitions, segmentation, and ALLL methodology occurred during the third quarter of 2020. |
Non-accrual Loans | Non-accrual Loans Non-accrual 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) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Accounting Pronouncements Adopted and Not Yet Adopted | 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 September 30, 2020. The Company does not believe the adoption will have a material accounting impact on the Company’s consolidated financial position or results of operations. Additionally, LIBOR fallback language has been included in key loan provisions of new and renewed loans in preparation for transition from LIBOR to the new benchmark rate when such transition occurs. This standard is expected to ease the administrative burden in accounting for the future effects of reference rate reform. The ASU allows the Company to recognize the modification related to LIBOR as a continuation of the old contract, rather than a cancellation of the old contract resulting in a write off of unamortized fees and creation of a new contract. ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes January 1, 2020 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 Company’s 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 Company’s financial statements. The Company provided updates to the following ASUs that have not 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 the Company maintains its 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. The Company completed the third party software implementation phase that included data capture and portfolio segmentation amongst other items. Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2016-02 Leases (Topic 842) The Company expects to implement this standard on January 1, 2022, unless the Company loses its EGC status during 2021. If EGC status changes, the Company would therefore be required to implement the ASU as of the beginning of 2021. Requires lessees and lessors to recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. 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 Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 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 per share: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands except per share data) Earnings per Share Net income $ 8,006 $ 10,384 $ 4,507 $ 29,173 Less: preferred stock dividends — — — 175 Net income available to common stockholders $ 8,006 $ 10,384 $ 4,507 $ 28,998 Weighted average common shares 52,136,286 48,351,553 52,104,372 46,239,021 Earnings per share $ 0.15 $ 0.22 $ 0.09 $ 0.63 Dilutive Earnings Per Share Net income available to common stockholders $ 8,006 $ 10,384 $ 4,507 $ 28,998 Weighted average common shares 52,136,286 48,351,553 52,104,372 46,239,021 Effect of dilutive shares 423,840 812,996 463,219 842,706 Weighted average dilutive common shares 52,560,126 49,164,549 52,567,591 47,081,727 Diluted earnings per share $ 0.15 $ 0.21 $ 0.09 $ 0.61 Stock-based awards not included because to do so would be antidilutive 1,214,433 541,556 1,053,393 507,167 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 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: September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ 122,093 $ 4,690 $ — $ 126,783 Collateralized mortgage obligations - GSE residential 71,735 1,271 7 72,999 State and political subdivisions 421,075 28,339 220 449,194 Corporate bonds 860 67 2 925 Total available-for-sale debt securities 615,763 34,367 229 649,901 Equity securities Mutual funds 2,222 23 — 2,245 Total equity securities 2,222 23 — 2,245 Total available-for-sale securities $ 617,985 $ 34,390 $ 229 $ 652,146 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 September 30, 2020, by contractual maturity, are shown below: September 30, 2020 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ 55 $ 199 $ 121,839 $ 122,093 Estimated fair value $ — $ 58 $ 213 $ 126,512 $ 126,783 Weighted average yield (2) — % 4.57 % 3.91 % 2.03 % 2.06 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,496 $ 69,239 $ 71,735 Estimated fair value $ — $ — $ 2,735 $ 70,264 $ 72,999 Weighted average yield (2) — % — % 2.77 % 1.10 % 1.16 % State and political subdivisions Amortized cost $ 653 $ 7,407 $ 59,992 $ 353,023 $ 421,075 Estimated fair value $ 654 $ 7,573 $ 65,059 $ 375,908 $ 449,194 Weighted average yield (2) 8.02 % 5.44 % 3.52 % 3.08 % 3.19 % Corporate bonds Amortized cost $ — $ — $ 860 $ — $ 860 Estimated fair value $ — $ — $ 925 $ — $ 925 Weighted average yield (2) — % — % 5.57 % — % 5.57 % Total available-for-sale debt securities Amortized cost $ 653 $ 7,462 $ 63,547 $ 544,101 $ 615,763 Estimated fair value $ 654 $ 7,631 $ 68,932 $ 572,684 $ 649,901 Weighted average yield (2) 8.02 % 5.44 % 3.52 % 2.59 % 2.73 % (1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. (2) Yields are calculated based on amortized cost. |
Schedule of Unrealized Loss on Investments | The following tables show the number of securities, unrealized loss, 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 September 30, 2020 and December 31, 2019: September 30, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities Fair Value Unrealized Losses Number of Securities (Dollars in thousands) Available-for-sale debt securities Mortgage-backed - GSE residential $ — $ — — $ — $ — — $ — $ — — Collateralized mortgage obligations - GSE residential 3,178 7 1 — — — 3,178 7 1 State and political subdivisions 14,998 220 19 26 — 1 15,024 220 20 Corporate bonds 457 2 1 — — — 457 2 1 Total temporarily impaired debt securities $ 18,633 $ 229 21 $ 26 $ — 1 $ 18,659 $ 229 22 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 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses ("ALLL") (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Category of Loans | Categories of loans at September 30, 2020 and December 31, 2019 include: September 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 1,291,572 $ 1,356,817 Energy 384,181 408,573 Commercial real estate 1,195,631 1,024,041 Construction and land development 587,617 628,418 Residential real estate 618,082 398,695 Paycheck Protection Program (“PPP”) 369,260 — Consumer 46,771 45,163 Gross loans 4,493,114 3,861,707 Less: Allowance for loan losses 76,035 56,896 Less: Net deferred loan fees and costs 15,305 9,463 Net loans $ 4,401,774 $ 3,795,348 |
Loans, Allowance for Loan Loss | The following tables summarize the activity in the ALLL 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 September 30, 2020 Allowance for loan losses Beginning balance $ 26,543 $ 17,372 $ 16,899 $ 5,019 $ 4,868 $ — $ 484 $ 71,185 Provision charged to expense 7,439 2,168 908 (530) 882 — 8 10,875 Charge-offs (5,781) — — — (256) — — (6,037) Recoveries 2 — — — — — 10 12 Ending balance $ 28,203 $ 19,540 $ 17,807 $ 4,489 $ 5,494 $ — $ 502 $ 76,035 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Three months ended September 30, 2019 Allowance for loan losses Beginning balance $ 22,975 $ 7,300 $ 7,533 $ 2,602 $ 2,138 $ — $ 304 $ 42,852 Provision charged to expense 3,535 1,077 (249) 414 82 — (9) 4,850 Charge-offs (1,700) (3,000) — — — — (8) (4,708) Recoveries 1 — — — — — — 1 Ending balance $ 24,811 $ 5,377 $ 7,284 $ 3,016 $ 2,220 $ — $ 287 $ 42,995 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Nine months ended September 30, 2020 Allowance for loan losses Beginning balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Provision charged to expense 16,210 15,253 9,722 973 3,393 — 274 45,825 Charge-offs (23,946) (2,278) — — (445) — (104) (26,773) Recoveries 75 — — — — — 12 87 Ending balance $ 28,203 $ 19,540 $ 17,807 $ 4,489 $ 5,494 $ — $ 502 $ 76,035 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) Nine months ended September 30, 2019 Allowance for loan losses Beginning balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 Provision charged to expense 11,166 (2,461) 529 541 756 — $ 19 10,550 Charge-offs (2,954) (3,000) — — — — (19) (5,973) Recoveries 15 576 — — — — 1 592 Ending balance $ 24,811 $ 5,377 $ 7,284 $ 3,016 $ 2,220 $ — $ 287 $ 42,995 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) September 30, 2020 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 2,432 $ 2,540 $ 1,525 $ — $ — $ — $ — $ 6,497 Collectively evaluated for impairment $ 25,771 $ 17,000 $ 16,282 $ 4,489 $ 5,494 $ — $ 502 $ 69,538 Ending balance $ 28,203 $ 19,540 $ 17,807 $ 4,489 $ 5,494 $ — $ 502 $ 76,035 Allocated to loans: Individually evaluated for impairment $ 38,589 $ 21,318 $ 17,035 $ — $ 6,406 $ — $ 246 $ 83,594 Collectively evaluated for impairment $ 1,252,983 $ 362,863 $ 1,178,596 $ 587,617 $ 611,676 $ 369,260 $ 46,525 $ 4,409,520 Ending balance $ 1,291,572 $ 384,181 $ 1,195,631 $ 587,617 $ 618,082 $ 369,260 $ 46,771 $ 4,493,114 Commercial Energy Commercial Real Estate Construction and Land Development Residential Real Estate PPP Consumer Total (Dollars in thousands) December 31, 2019 Period end allowance for loan losses allocated to: Individually evaluated for impairment $ 19,942 $ 1,949 $ 210 $ — $ 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 internal rating categories (grades 1 - 8), portfolio segmentation, and payment activity: Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) September 30, 2020 Commercial $ 1,106,338 $ 71,746 $ 75,714 $ 34,528 $ 3,246 $ — $ 1,291,572 Energy 186,881 58,726 117,389 17,435 3,750 — 384,181 Commercial real estate 1,114,802 41,030 26,624 12,377 798 — 1,195,631 Construction and land development 581,160 5,299 1,158 — — — 587,617 Residential real estate 610,909 527 3,467 3,179 — — 618,082 PPP 369,260 — — — — — 369,260 Consumer 46,525 — — 246 — — 46,771 $ 4,015,875 $ 177,328 $ 224,352 $ 67,765 $ 7,794 $ — $ 4,493,114 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 as of September 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) September 30, 2020 Commercial $ 12,274 $ 28,487 $ 6,641 $ 47,402 $ 1,244,170 $ 1,291,572 $ 1,141 Energy — 1,540 3,055 4,595 379,586 384,181 — Commercial real estate 1,459 — 4,475 5,934 1,189,697 1,195,631 — Construction and land development — — — — 587,617 587,617 — Residential real estate 1,591 — 6,124 7,715 610,367 618,082 3,183 PPP — — — — 369,260 369,260 — Consumer — — — — 46,771 46,771 — $ 15,324 $ 30,027 $ 20,295 $ 65,646 $ 4,427,468 $ 4,493,114 $ 4,324 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Total Past Due Current Total Loans Receivable Loans >= 90 Days and Accruing (Dollars in thousands) December 31, 2019 Commercial $ 1,091 $ 276 $ 30,911 $ 32,278 $ 1,324,539 $ 1,356,817 $ 37 Energy 2,340 — 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 September 30, 2020 and December 31, 2019: Unpaid Recorded Balance Principal Balance Specific Allowance (Dollars in thousands) September 30, 2020 Loans without a specific valuation Commercial $ 29,439 $ 35,220 $ — Energy — — — Commercial real estate 4,628 4,628 — Construction and land development — — — Residential real estate 6,406 6,662 — PPP — — — Consumer 246 246 — Loans with a specific valuation Commercial 9,150 20,538 2,432 Energy 21,318 26,597 2,540 Commercial real estate 12,407 13,206 1,525 Construction and land development — — — Residential real estate — — — PPP — — — Consumer — — — Total Commercial 38,589 55,758 2,432 Energy 21,318 26,597 2,540 Commercial real estate 17,035 17,834 1,525 Construction and land development — — — Residential real estate 6,406 6,662 — PPP — — — Consumer 246 246 — $ 83,594 $ 107,097 $ 6,497 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 nine month periods ended September 30, 2020 and 2019 for impaired loans, including all restructured and formerly restructured loans, held at the end of each period: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 12 $ 386 $ 841 $ 862 Energy 2 98 257 324 Commercial real estate 58 200 346 613 Construction and land development — — — — Residential real estate 36 8 108 17 PPP — — — — Consumer — — — — Total interest income recognized $ 108 $ 692 $ 1,552 $ 1,816 The table below shows the three and nine month average balance of impaired loans for the periods ended September 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 Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial $ 45,482 $ 54,410 $ 49,538 $ 49,265 Energy 21,396 13,623 23,220 15,091 Commercial real estate 17,937 16,690 18,132 16,528 Construction and land development — — — — Residential real estate 6,419 2,538 6,304 2,354 PPP — — — — Consumer 248 — 253 — Total average impaired loans $ 91,482 $ 87,261 $ 97,447 $ 83,238 |
Loans, Nonaccrual | The following table presents the Company’s non-accrual loans by loan category at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (Dollars in thousands) Commercial $ 37,774 $ 32,130 Energy 21,185 4,540 Commercial real estate 13,176 1,063 Construction and land development — — Residential real estate 3,179 1,942 PPP — — Consumer 246 — Total non-accrual loans $ 75,560 $ 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 nine months ended September 30, 2020 and 2019, including the post-modification outstanding balance and the type of concession made: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Commercial - Interest rate reduction $ — $ — $ 3,171 $ — - Reduction of monthly payment — — — 994 - Extension of maturity date — — — 30,005 Energy - Extension of maturity date — — 2,340 — Commercial real estate - Reduction of monthly payment — — — 3,767 Residential real estate - Payment deferral — — 65 — Total troubled debt restructurings $ — $ — $ 5,576 $ 34,766 September 30, 2020 December 31, 2019 Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) Number of Loans Outstanding Balance Balance 90 days past due at any time during previous 12 months (1) (Dollars in thousands) Commercial 6 $ 7,895 $ 3,762 7 $ 31,770 $ 831 Energy 3 3,373 2,713 2 2,864 — Commercial real estate 3 4,683 — 3 4,909 — Construction and land development — — — — — — Residential real estate 2 3,247 45 — — — PPP — — — — — — Consumer — — — — — — Total troubled debt restructured loans 14 $ 19,198 $ 6,520 12 $ 39,543 $ 831 (1) Default is considered to mean 90 days or more past due as to interest or principal. |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of September 30, 2020 and December 31, 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: September 30, 2020 December 31, 2019 Product Number of Instruments Notional Amount Number of Instruments Notional Amount (Dollars in thousands) Back-to-back swaps 60 $ 545,559 56 $ 380,050 The table below presents the fair value of the Company’s derivative financial instruments and their classification on the Balance Sheet as of September 30, 2020 and December 31, 2019: Asset Derivatives Liability Derivatives Balance Sheet September 30, December 31, Balance Sheet September 30, December 31, Location 2020 2019 Location 2020 2019 (Dollars in thousands) Derivatives not designated as hedging instruments Interest rate products Other assets $ 27,873 $ 9,838 Other liabilities $ 27,949 $ 9,907 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 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 nine-months ended September 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 — (70) (70) Balance at September 30, 2020 $ — $ 227 $ 227 |
Time Deposits and Borrowings (T
Time Deposits and Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Maturities of Time Deposits [Abstract] | |
Schedule of Time Deposit Maturities and Borrowings | The scheduled maturities, excluding interest, of the Company’s borrowings at September 30, 2020 were as follows: September 30, 2020 Within One Year One to Two Years Two to Three Years Three to Four Years Four to Five Years After Five Years Total (Dollars in thousands) Time deposits $ 948,251 $ 115,197 $ 52,074 $ 24,669 $ 495 $ — $ 1,140,686 Fed funds purchased & repurchase agreements 13,531 — — — — — 13,531 FHLB borrowings 59,500 21,500 35,000 — 5,100 215,000 336,100 Trust preferred securities (1) — — — — — 952 952 $ 1,021,282 $ 136,697 $ 87,074 $ 24,669 $ 5,595 $ 215,952 $ 1,491,269 |
Change in Accumulated Other C_2
Change in Accumulated Other Comprehensive Income (AOCI) (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2020 and 2019, were as follows: Three Months Ended Nine Months Ended September 30, September 30, Affected Line Item in the 2020 2019 2020 2019 Statements of Operations (Dollars in thousands) Unrealized gains on available-for-sale securities $ 1,012 $ 34 $ 1,725 $ 467 Gain on sale of available-for-sale debt securities Less: tax effect 248 9 422 115 Income tax expense Net reclassified amount $ 764 $ 25 $ 1,303 $ 352 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Banking Regulation, Risk-Based Information [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 September 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) September 30, 2020 Total Capital to Risk-Weighted Assets Consolidated $ 652,827 13.2 % $ 518,259 10.5 % N/A N/A Bank 601,491 12.2 518,063 10.5 $ 493,393 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 590,952 12.0 419,543 8.5 N/A N/A Bank 539,639 10.9 419,384 8.5 394,714 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 590,000 12.0 345,506 7.0 N/A N/A Bank 539,639 10.9 345,375 7.0 320,706 6.5 Tier I Capital to Average Assets Consolidated 590,952 10.8 217,932 4.0 N/A N/A Bank $ 539,639 9.9 % $ 217,994 4.0 % $ 272,492 5.0 % December 31, 2019 Total Capital to Risk-Weighted Assets Consolidated $ 633,228 13.4 % $ 495,095 10.5 % N/A N/A Bank 581,600 12.3 494,954 10.5 $ 471,385 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 576,332 12.2 400,791 8.5 N/A N/A Bank 524,704 11.1 400,677 8.5 377,108 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 575,411 12.2 330,063 7.0 N/A N/A Bank 524,704 11.1 329,970 7.0 306,400 6.5 Tier I Capital to Average Assets Consolidated 576,332 12.1 191,099 4.0 N/A N/A Bank $ 524,704 11.0 % $ 191,170 4.0 % $ 238,963 5.0 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation | The table below summarizes the stock-based compensation for the three and nine-months ended September 30, 2020 and 2019: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Stock appreciation rights $ 250 $ 446 $ 744 $ 977 Performance-based stock awards 79 159 175 409 Restricted stock units and awards 857 719 2,283 2,184 Employee stock purchase plan 21 — 21 36 Total stock-based compensation $ 1,207 $ 1,324 $ 3,223 $ 3,606 |
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, September 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 (15,086) 14.54 Unvested, September 30, 2020 512,845 $13.38 |
Income Tax (Tables)
Income Tax (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | An income tax expense reconciliation at the statutory rate to the Company’s actual income tax expense is shown below: Three Months Ended Nine Months Ended September 30, September 30, 2020 2019 2020 2019 (Dollars in thousands) Computed at the statutory rate (21%) $ 1,996 $ 2,725 $ 1,141 $ 7,241 Increase (decrease) resulting from Tax-exempt income (766) (722) (2,335) (2,147) Nondeductible expenses 21 71 119 208 State tax credit — — — (1,361) State income taxes 320 566 501 1,526 Equity based compensation (15) (5) 24 (66) Goodwill impairment — — 1,553 — Other adjustments (58) (43) (75) (93) Actual tax expense $ 1,498 $ 2,592 $ 928 $ 5,308 |
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: September 30, 2020 December 31, 2019 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 18,613 $ 13,928 Lease incentive 322 294 Impairment of available-for-sale securities — 493 Valuation allowance on real estate 269 — Loan fees 3,747 2,317 Net operating loss carryover 344 339 Accrued expenses 1,485 2,131 Deferred compensation 2,776 2,444 State tax credit 2,519 3,287 Other 60 81 Total deferred tax asset 30,135 25,314 Deferred tax liability Fair market value adjustments - trust preferred securities (341) (348) Net unrealized gain on securities available-for-sale (8,357) (5,339) FHLB stock basis (1,194) (996) Premises and equipment (3,150) (3,620) Other (1,229) (1,229) Total deferred tax liability (14,271) (11,532) Net deferred tax asset $ 15,864 $ 13,782 |
Disclosures about Fair Value _2
Disclosures about Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 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 September 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 September 30, 2020 and December 31, 2019: September 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 $ 36,378 $ — $ — $ 36,378 Foreclosed assets held-for-sale $ 2,349 $ — $ — $ 2,349 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 September 30, 2020 and December 31, 2019: September 30, 2020 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral-dependent impaired loans $ 36,378 Market comparable properties Marketability discount 10% - 15% (12%) Foreclosed assets held-for-sale $ 2,349 Market comparable properties Marketability discount 10% December 31, 2019 Fair Value Valuation Techniques Unobservable Inputs Range (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 September 30, 2020 and December 31, 2019: September 30, 2020 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 223,636 $ 223,636 $ — $ — $ 223,636 Available-for-sale securities 652,146 — 652,146 — 652,146 Loans, net of allowance for loan losses 4,401,774 — — 4,386,027 4,386,027 Restricted equity securities 20,923 — — 20,923 20,923 Interest receivable 19,003 — 19,003 — 19,003 Derivative assets 27,873 — 27,873 — 27,873 $ 5,345,355 $ 223,636 $ 699,022 $ 4,406,950 $ 5,329,608 Financial Liabilities Deposits $ 4,492,549 $ 754,172 $ — $ 3,784,666 $ 4,538,838 Federal funds purchased and repurchase agreements 13,531 — 13,531 — 13,531 Federal Home Loan Bank advances 336,100 — 353,309 — 353,309 Other borrowings 952 — 1,897 — 1,897 Interest payable 2,550 — 2,550 — 2,550 Derivative liabilities 27,949 — 27,949 — 27,949 $ 4,873,631 $ 754,172 $ 399,236 $ 3,784,666 $ 4,938,074 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) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The Company had the following commitments at September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (Dollars in thousands) Commitments to originate loans $ 188,347 $ 134,652 Standby letters of credit 42,204 39,035 Lines of credit 1,362,440 1,351,873 Future lease commitments — 20,935 Total $ 1,592,991 $ 1,546,495 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies (Details) - USD ($) | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Cash and cash equivalents held at the Federal Reserve Bank of Kansas City | $ 176,000,000 | ||
Required reserve | 0 | ||
Loans reviewed on a collective basis | 4,493,114,000 | $ 3,861,707,000 | |
Performing | Substandard | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans reviewed on a collective basis | 224,352,000 | $ 200,000,000 | $ 47,221,000 |
London Interbank Offered Rate (LIBOR) | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Loans tied to LIBOR | $ 1,000,000,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings per Share | ||||
Net income | $ 8,006 | $ 10,384 | $ 4,507 | $ 29,173 |
Less: preferred stock dividends | 0 | 0 | 0 | 175 |
Net income available to common stockholders | $ 8,006 | $ 10,384 | $ 4,507 | $ 28,998 |
Weighted average common shares (in shares) | 52,136,286 | 48,351,553 | 52,104,372 | 46,239,021 |
Earnings per share (in dollars per share) | $ 0.15 | $ 0.22 | $ 0.09 | $ 0.63 |
Dilutive Earnings Per Share | ||||
Net income available to common stockholders | $ 8,006 | $ 10,384 | $ 4,507 | $ 28,998 |
Weighted average common shares (in shares) | 52,136,286 | 48,351,553 | 52,104,372 | 46,239,021 |
Effect of dilutive shares (in shares) | 423,840 | 812,996 | 463,219 | 842,706 |
Weighted average dilutive common shares (in shares) | 52,560,126 | 49,164,549 | 52,567,591 | 47,081,727 |
Diluted earnings per share (in dollars per share) | $ 0.15 | $ 0.21 | $ 0.09 | $ 0.61 |
Stock-based awards not included because to do so would be antidilutive (in shares) | 1,214,433 | 541,556 | 1,053,393 | 507,167 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available-for-sale debt securities | ||
Total | $ 615,763 | $ 717,682 |
Gross Unrealized Gains | 34,367 | 22,377 |
Gross Unrealized Losses | 229 | 586 |
Approximate Fair Value | 649,901 | 739,473 |
Equity securities | ||
Amortized Cost | 2,222 | 2,190 |
Gross Unrealized Gains | 23 | 0 |
Gross Unrealized Losses | 0 | 29 |
Approximate Fair Value | 2,245 | 2,161 |
Total available-for-sale securities | ||
Amortized Cost | 617,985 | 719,872 |
Gross Unrealized Gains | 34,390 | 22,377 |
Gross Unrealized Losses | 229 | 615 |
Approximate Fair Value | 652,146 | 741,634 |
Mortgage-backed - GSE residential | ||
Available-for-sale debt securities | ||
Total | 122,093 | 151,037 |
Gross Unrealized Gains | 4,690 | 1,668 |
Gross Unrealized Losses | 0 | 193 |
Approximate Fair Value | 126,783 | 152,512 |
Collateralized mortgage obligations - GSE residential | ||
Available-for-sale debt securities | ||
Total | 71,735 | 128,876 |
Gross Unrealized Gains | 1,271 | 625 |
Gross Unrealized Losses | 7 | 289 |
Approximate Fair Value | 72,999 | 129,212 |
State and political subdivisions | ||
Available-for-sale debt securities | ||
Total | 421,075 | 436,448 |
Gross Unrealized Gains | 28,339 | 19,996 |
Gross Unrealized Losses | 220 | 104 |
Approximate Fair Value | 449,194 | 456,340 |
Corporate bonds | ||
Available-for-sale debt securities | ||
Total | 860 | 1,321 |
Gross Unrealized Gains | 67 | 88 |
Gross Unrealized Losses | 2 | 0 |
Approximate Fair Value | 925 | 1,409 |
Mutual funds | ||
Equity securities | ||
Amortized Cost | 2,222 | 2,190 |
Gross Unrealized Gains | 23 | 0 |
Gross Unrealized Losses | 0 | 29 |
Approximate Fair Value | $ 2,245 | $ 2,161 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Fair Value by Maturity Date (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Within one year | $ 653 | |
After one to five years | 7,462 | |
After five to ten years | 63,547 | |
After ten years | 544,101 | |
Total | 615,763 | $ 717,682 |
Estimated fair value | ||
Within one year | 654 | |
After one to five years | 7,631 | |
After five to ten years | 68,932 | |
After ten years | 572,684 | |
Total | $ 649,901 | 739,473 |
Weighted average yield | ||
Within one year | 8.02% | |
After one to five years | 5.44% | |
After five to ten years | 3.52% | |
After ten years | 2.59% | |
Total | 2.73% | |
Mortgage-backed - GSE residential | ||
Amortized cost | ||
Within one year | $ 0 | |
After one to five years | 55 | |
After five to ten years | 199 | |
After ten years | 121,839 | |
Total | 122,093 | 151,037 |
Estimated fair value | ||
Within one year | 0 | |
After one to five years | 58 | |
After five to ten years | 213 | |
After ten years | 126,512 | |
Total | $ 126,783 | 152,512 |
Weighted average yield | ||
Within one year | 0.00% | |
After one to five years | 4.57% | |
After five to ten years | 3.91% | |
After ten years | 2.03% | |
Total | 2.06% | |
Collateralized mortgage obligations - GSE residential | ||
Amortized cost | ||
Within one year | $ 0 | |
After one to five years | 0 | |
After five to ten years | 2,496 | |
After ten years | 69,239 | |
Total | 71,735 | 128,876 |
Estimated fair value | ||
Within one year | 0 | |
After one to five years | 0 | |
After five to ten years | 2,735 | |
After ten years | 70,264 | |
Total | $ 72,999 | 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 | 1.10% | |
Total | 1.16% | |
State and political subdivisions | ||
Amortized cost | ||
Within one year | $ 653 | |
After one to five years | 7,407 | |
After five to ten years | 59,992 | |
After ten years | 353,023 | |
Total | 421,075 | 436,448 |
Estimated fair value | ||
Within one year | 654 | |
After one to five years | 7,573 | |
After five to ten years | 65,059 | |
After ten years | 375,908 | |
Total | $ 449,194 | 456,340 |
Weighted average yield | ||
Within one year | 8.02% | |
After one to five years | 5.44% | |
After five to ten years | 3.52% | |
After ten years | 3.08% | |
Total | 3.19% | |
Corporate bonds | ||
Amortized cost | ||
Within one year | $ 0 | |
After one to five years | 0 | |
After five to ten years | 860 | |
After ten years | 0 | |
Total | 860 | 1,321 |
Estimated fair value | ||
Within one year | 0 | |
After one to five years | 0 | |
After five to ten years | 925 | |
After ten years | 0 | |
Total | $ 925 | $ 1,409 |
Weighted average yield | ||
Within one year | 0.00% | |
After one to five years | 0.00% | |
After five to ten years | 5.57% | |
After ten years | 0.00% | |
Total | 5.57% |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) $ in Thousands | Sep. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Less than 12 Months | ||
Fair Value | $ 18,633 | $ 78,881 |
Unrealized Losses | $ 229 | $ 339 |
Number of Securities | security | 21 | 21 |
12 Months or More | ||
Fair Value | $ 26 | $ 29,185 |
Unrealized Losses | $ 0 | $ 247 |
Number of Securities | security | 1 | 15 |
Total | ||
Fair Value | $ 18,659 | $ 108,066 |
Unrealized Losses | $ 229 | $ 586 |
Number of Securities | security | 22 | 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 | $ 3,178 | $ 48,980 |
Unrealized Losses | $ 7 | $ 199 |
Number of Securities | security | 1 | 7 |
12 Months or More | ||
Fair Value | $ 0 | $ 8,622 |
Unrealized Losses | $ 0 | $ 90 |
Number of Securities | security | 0 | 9 |
Total | ||
Fair Value | $ 3,178 | $ 57,602 |
Unrealized Losses | $ 7 | $ 289 |
Number of Securities | security | 1 | 16 |
State and political subdivisions | ||
Less than 12 Months | ||
Fair Value | $ 14,998 | $ 21,412 |
Unrealized Losses | $ 220 | $ 102 |
Number of Securities | security | 19 | 11 |
12 Months or More | ||
Fair Value | $ 26 | $ 167 |
Unrealized Losses | $ 0 | $ 2 |
Number of Securities | security | 1 | 2 |
Total | ||
Fair Value | $ 15,024 | $ 21,579 |
Unrealized Losses | $ 220 | $ 104 |
Number of Securities | security | 20 | 13 |
Corporate bonds | ||
Less than 12 Months | ||
Fair Value | $ 457 | $ 530 |
Unrealized Losses | $ 2 | $ 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 | $ 457 | $ 530 |
Unrealized Losses | $ 2 | $ 0 |
Number of Securities | security | 1 | 1 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Gross gains on available-for-sale securities | $ 2,000 | $ 506 |
Gross losses on available-for-sale securities | 60 | $ 39 |
Gross gains on available-for-sale- securities included an other-than-temporary impaired municipal security settled in 2020 | $ 75 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses ("ALLL") - Category of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | $ 4,493,114 | $ 3,861,707 | ||||
Less: Allowance for loan losses | 76,035 | $ 71,185 | 56,896 | $ 42,995 | $ 42,852 | $ 37,826 |
Less: Net deferred loan fees and costs | 15,305 | 9,463 | ||||
Net loans | 4,401,774 | 3,795,348 | ||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,291,572 | 1,356,817 | ||||
Less: Allowance for loan losses | 28,203 | 26,543 | 35,864 | 24,811 | 22,975 | 16,584 |
Energy | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 384,181 | 408,573 | ||||
Less: Allowance for loan losses | 19,540 | 17,372 | 6,565 | 5,377 | 7,300 | 10,262 |
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 1,195,631 | 1,024,041 | ||||
Less: Allowance for loan losses | 17,807 | 16,899 | 8,085 | 7,284 | 7,533 | 6,755 |
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 587,617 | 628,418 | ||||
Less: Allowance for loan losses | 4,489 | 5,019 | 3,516 | 3,016 | 2,602 | 2,475 |
Residential real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 618,082 | 398,695 | ||||
Less: Allowance for loan losses | 5,494 | 4,868 | 2,546 | 2,220 | 2,138 | 1,464 |
Paycheck Protection Program (“PPP”) | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 369,260 | 0 | ||||
Less: Allowance for loan losses | 0 | 0 | 0 | 0 | 0 | 0 |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross loans | 46,771 | 45,163 | ||||
Less: Allowance for loan losses | $ 502 | $ 484 | $ 320 | $ 287 | $ 304 | $ 286 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses ("ALLL") - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | |
Allowance for loan losses | ||||||
Beginning balance | $ 71,185 | $ 42,852 | $ 56,896 | $ 37,826 | ||
Provision charged to expense | 10,875 | 4,850 | 45,825 | 10,550 | ||
Charge-offs | (6,037) | (4,708) | (26,773) | (5,973) | ||
Recoveries | 12 | 1 | 87 | 592 | ||
Ending balance | 76,035 | 42,995 | 76,035 | 42,995 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | $ 6,497 | $ 22,298 | ||||
Collectively evaluated for impairment | 69,538 | 34,598 | ||||
Allowance for loan losses | 71,185 | 42,995 | 56,896 | 42,995 | 76,035 | 56,896 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 83,594 | 93,500 | ||||
Collectively evaluated for impairment | 4,409,520 | 3,768,207 | ||||
Total Loans Receivable | 4,493,114 | 3,861,707 | ||||
Commercial | ||||||
Allowance for loan losses | ||||||
Beginning balance | 26,543 | 22,975 | 35,864 | 16,584 | ||
Provision charged to expense | 7,439 | 3,535 | 16,210 | 11,166 | ||
Charge-offs | (5,781) | (1,700) | (23,946) | (2,954) | ||
Recoveries | 2 | 1 | 75 | 15 | ||
Ending balance | 28,203 | 24,811 | 28,203 | 24,811 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 2,432 | 19,942 | ||||
Collectively evaluated for impairment | 25,771 | 15,922 | ||||
Allowance for loan losses | 28,203 | 24,811 | 28,203 | 24,811 | 28,203 | 35,864 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 38,589 | 70,876 | ||||
Collectively evaluated for impairment | 1,252,983 | 1,285,941 | ||||
Total Loans Receivable | 1,291,572 | 1,356,817 | ||||
Energy | ||||||
Allowance for loan losses | ||||||
Beginning balance | 17,372 | 7,300 | 6,565 | 10,262 | ||
Provision charged to expense | 2,168 | 1,077 | 15,253 | (2,461) | ||
Charge-offs | 0 | (3,000) | (2,278) | (3,000) | ||
Recoveries | 0 | 0 | 0 | 576 | ||
Ending balance | 19,540 | 5,377 | 19,540 | 5,377 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 2,540 | 1,949 | ||||
Collectively evaluated for impairment | 17,000 | 4,616 | ||||
Allowance for loan losses | 19,540 | 5,377 | 19,540 | 5,377 | 19,540 | 6,565 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 21,318 | 9,744 | ||||
Collectively evaluated for impairment | 362,863 | 398,829 | ||||
Total Loans Receivable | 384,181 | 408,573 | ||||
Commercial real estate | ||||||
Allowance for loan losses | ||||||
Beginning balance | 16,899 | 7,533 | 8,085 | 6,755 | ||
Provision charged to expense | 908 | (249) | 9,722 | 529 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 17,807 | 7,284 | 17,807 | 7,284 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 1,525 | 210 | ||||
Collectively evaluated for impairment | 16,282 | 7,875 | ||||
Allowance for loan losses | 17,807 | 7,284 | 17,807 | 7,284 | 17,807 | 8,085 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 17,035 | 10,492 | ||||
Collectively evaluated for impairment | 1,178,596 | 1,013,549 | ||||
Total Loans Receivable | 1,195,631 | 1,024,041 | ||||
Construction and land development | ||||||
Allowance for loan losses | ||||||
Beginning balance | 5,019 | 2,602 | 3,516 | 2,475 | ||
Provision charged to expense | (530) | 414 | 973 | 541 | ||
Charge-offs | 0 | 0 | 0 | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 4,489 | 3,016 | 4,489 | 3,016 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 4,489 | 3,516 | ||||
Allowance for loan losses | 4,489 | 3,016 | 4,489 | 3,016 | 4,489 | 3,516 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 587,617 | 628,418 | ||||
Total Loans Receivable | 587,617 | 628,418 | ||||
Residential real estate | ||||||
Allowance for loan losses | ||||||
Beginning balance | 4,868 | 2,138 | 2,546 | 1,464 | ||
Provision charged to expense | 882 | 82 | 3,393 | 756 | ||
Charge-offs | (256) | 0 | (445) | 0 | ||
Recoveries | 0 | 0 | 0 | 0 | ||
Ending balance | 5,494 | 2,220 | 5,494 | 2,220 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 0 | 197 | ||||
Collectively evaluated for impairment | 5,494 | 2,349 | ||||
Allowance for loan losses | 5,494 | 2,220 | 2,546 | 2,220 | 5,494 | 2,546 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 6,406 | 2,388 | ||||
Collectively evaluated for impairment | 611,676 | 396,307 | ||||
Total Loans Receivable | 618,082 | 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 | 369,260 | 0 | ||||
Total Loans Receivable | 369,260 | 0 | ||||
Consumer | ||||||
Allowance for loan losses | ||||||
Beginning balance | 484 | 304 | 320 | 286 | ||
Provision charged to expense | 8 | (9) | 274 | 19 | ||
Charge-offs | 0 | (8) | (104) | (19) | ||
Recoveries | 10 | 0 | 12 | 1 | ||
Ending balance | 502 | 287 | 502 | 287 | ||
Period end allowance for loan losses allocated to: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 502 | 320 | ||||
Allowance for loan losses | $ 502 | $ 287 | $ 320 | $ 287 | 502 | 320 |
Allocated to loans: | ||||||
Individually evaluated for impairment | 246 | 0 | ||||
Collectively evaluated for impairment | 46,525 | 45,163 | ||||
Total Loans Receivable | $ 46,771 | $ 45,163 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses ("ALLL") - Internal Risk Ratings (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | $ 4,493,114 | $ 3,861,707 | |
Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 4,015,875 | 3,727,182 | |
Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 177,328 | 47,629 | |
Substandard | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 224,352 | $ 200,000 | 47,221 |
Substandard | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 67,765 | 34,192 | |
Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 7,794 | 5,483 | |
Loss | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 0 | 0 | |
Commercial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 1,291,572 | 1,356,817 | |
Commercial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 1,106,338 | 1,258,952 | |
Commercial | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 71,746 | 27,069 | |
Commercial | Substandard | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 75,714 | 38,666 | |
Commercial | Substandard | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 34,528 | 32,130 | |
Commercial | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 3,246 | 0 | |
Commercial | Loss | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 0 | 0 | |
Energy | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 384,181 | 408,573 | |
Energy | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 186,881 | 392,233 | |
Energy | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 58,726 | 9,460 | |
Energy | Substandard | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 117,389 | 2,340 | |
Energy | Substandard | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 17,435 | 0 | |
Energy | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 3,750 | 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 | 1,195,631 | 1,024,041 | |
Commercial real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 1,114,802 | 1,007,921 | |
Commercial real estate | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 41,030 | 9,311 | |
Commercial real estate | Substandard | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 26,624 | 5,746 | |
Commercial real estate | Substandard | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 12,377 | 120 | |
Commercial real estate | Doubtful | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 798 | 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 | 587,617 | 628,418 | |
Construction and land development | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 581,160 | 628,418 | |
Construction and land development | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 5,299 | 0 | |
Construction and land development | Substandard | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 1,158 | 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 | 618,082 | 398,695 | |
Residential real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 610,909 | 394,495 | |
Residential real estate | Special Mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 527 | 1,789 | |
Residential real estate | Substandard | Performing | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 3,467 | 469 | |
Residential real estate | Substandard | Nonperforming | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 3,179 | 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 | 369,260 | 0 | |
Paycheck Protection Program (“PPP”) | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 369,260 | 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 | 46,771 | 45,163 | |
Consumer | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Gross loans | 46,525 | 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 | 246 | 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 ("ALLL") - Loan Aging Analysis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 65,646 | $ 48,834 |
Current | 4,427,468 | 3,812,873 |
Total Loans Receivable | 4,493,114 | 3,861,707 |
Loans >= 90 Days and Accruing | 4,324 | 4,591 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 15,324 | 6,292 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 30,027 | 530 |
90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 20,295 | 42,012 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 47,402 | 32,278 |
Current | 1,244,170 | 1,324,539 |
Total Loans Receivable | 1,291,572 | 1,356,817 |
Loans >= 90 Days and Accruing | 1,141 | 37 |
Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 12,274 | 1,091 |
Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 28,487 | 276 |
Commercial | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 6,641 | 30,911 |
Energy | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,595 | 6,933 |
Current | 379,586 | 401,640 |
Total Loans Receivable | 384,181 | 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 | 1,540 | 0 |
Energy | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,055 | 4,593 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,934 | 4,905 |
Current | 1,189,697 | 1,019,136 |
Total Loans Receivable | 1,195,631 | 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 | 1,459 | 316 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,475 | 4,589 |
Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 196 |
Current | 587,617 | 628,222 |
Total Loans Receivable | 587,617 | 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 | 0 | 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 | 7,715 | 4,266 |
Current | 610,367 | 394,429 |
Total Loans Receivable | 618,082 | 398,695 |
Loans >= 90 Days and Accruing | 3,183 | 0 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,591 | 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 | 6,124 | 1,919 |
Paycheck Protection Program (“PPP”) | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 369,260 | 0 |
Total Loans Receivable | 369,260 | 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 | 0 | 256 |
Current | 46,771 | 44,907 |
Total Loans Receivable | 46,771 | 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 | 0 | 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 ("ALLL") - Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Recorded Balance | ||
Total | $ 83,594 | $ 93,500 |
Unpaid Principal Balance | ||
Total | 107,097 | 101,500 |
Specific Allowance | 6,497 | 22,298 |
Commercial | ||
Recorded Balance | ||
Loans without a specific valuation | 29,439 | 35,846 |
Loans with a specific valuation | 9,150 | 35,030 |
Total | 38,589 | 70,876 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 35,220 | 35,846 |
Loans with a specific valuation | 20,538 | 40,030 |
Total | 55,758 | 75,876 |
Specific Allowance | 2,432 | 19,942 |
Energy | ||
Recorded Balance | ||
Loans without a specific valuation | 0 | 2,864 |
Loans with a specific valuation | 21,318 | 6,880 |
Total | 21,318 | 9,744 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 0 | 2,864 |
Loans with a specific valuation | 26,597 | 9,880 |
Total | 26,597 | 12,744 |
Specific Allowance | 2,540 | 1,949 |
Commercial real estate | ||
Recorded Balance | ||
Loans without a specific valuation | 4,628 | 9,464 |
Loans with a specific valuation | 12,407 | 1,028 |
Total | 17,035 | 10,492 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 4,628 | 9,464 |
Loans with a specific valuation | 13,206 | 1,028 |
Total | 17,834 | 10,492 |
Specific Allowance | 1,525 | 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 | 6,406 | 2,139 |
Loans with a specific valuation | 0 | 249 |
Total | 6,406 | 2,388 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 6,662 | 2,139 |
Loans with a specific valuation | 0 | 249 |
Total | 6,662 | 2,388 |
Specific Allowance | 0 | 197 |
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 |
Consumer | ||
Recorded Balance | ||
Loans without a specific valuation | 246 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 246 | 0 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 246 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 246 | 0 |
Specific Allowance | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses ("ALLL") - Impaired Loan Interest Income and Average Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | $ 108 | $ 692 | $ 1,552 | $ 1,816 |
Total average impaired loans | 91,482 | 87,261 | 97,447 | 83,238 |
Commercial | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 12 | 386 | 841 | 862 |
Total average impaired loans | 45,482 | 54,410 | 49,538 | 49,265 |
Energy | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 2 | 98 | 257 | 324 |
Total average impaired loans | 21,396 | 13,623 | 23,220 | 15,091 |
Commercial real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 58 | 200 | 346 | 613 |
Total average impaired loans | 17,937 | 16,690 | 18,132 | 16,528 |
Construction and land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 0 | 0 | 0 | 0 |
Total average impaired loans | 0 | 0 | 0 | 0 |
Residential real estate | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 36 | 8 | 108 | 17 |
Total average impaired loans | 6,419 | 2,538 | 6,304 | 2,354 |
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 |
Consumer | ||||
Financing Receivable, Impaired [Line Items] | ||||
Total interest income recognized | 0 | 0 | 0 | 0 |
Total average impaired loans | $ 248 | $ 0 | $ 253 | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses ("ALLL") - Non-Accrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | $ 75,560 | $ 39,675 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 37,774 | 32,130 |
Energy | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 21,185 | 4,540 |
Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 13,176 | 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 | 3,179 | 1,942 |
Paycheck Protection Program (“PPP”) | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | 0 | 0 |
Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total non-accrual loans | $ 246 | $ 0 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses ("ALLL") - Troubled Debt Restructuring Loans (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings | $ 0 | $ 0 | $ 5,576 | $ 34,766 | |
Number of Loans | contract | 14 | 12 | |||
Outstanding Balance | 19,198 | $ 19,198 | $ 39,543 | ||
Balance 90 days past due at any time during previous 12 months | 6,520 | 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 | 7,895 | $ 7,895 | $ 31,770 | ||
Balance 90 days past due at any time during previous 12 months | $ 3,762 | $ 831 | |||
Energy | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 3 | 2 | |||
Outstanding Balance | 3,373 | $ 3,373 | $ 2,864 | ||
Balance 90 days past due at any time during previous 12 months | $ 2,713 | $ 0 | |||
Commercial real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Loans | contract | 3 | 3 | |||
Outstanding Balance | 4,683 | $ 4,683 | $ 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 | 3,247 | $ 3,247 | $ 0 | ||
Balance 90 days past due at any time during previous 12 months | $ 45 | $ 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 | 0 | 0 | 3,171 | 0 | |
Reduction of Monthly Payment | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings | 0 | 0 | 0 | 994 | |
Reduction of Monthly Payment | Commercial real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings | 0 | 0 | 0 | 3,767 | |
Extension of Maturity Date | Commercial | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings | 0 | 0 | 0 | 30,005 | |
Extension of Maturity Date | Energy | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings | 0 | 0 | 2,340 | 0 | |
Payment Deferral | Residential real estate | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Total troubled debt restructurings | $ 0 | $ 0 | $ 65 | $ 0 |
Derivatives and Hedging - Outst
Derivatives and Hedging - Outstanding Derivatives (Details) - Back-to-back swaps - Not Designated as Hedging Instrument $ in Thousands | Sep. 30, 2020USD ($)derivative | Dec. 31, 2019USD ($)derivative |
Derivative [Line Items] | ||
Number of Instruments | derivative | 60 | 56 |
Notional Amount | $ | $ 545,559 | $ 380,050 |
Derivatives and Hedging - Fair
Derivatives and Hedging - Fair Value of Derivatives (Details) - Not Designated as Hedging Instrument - Interest rate products - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Other assets | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 27,873 | $ 9,838 |
Other liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 27,949 | $ 9,907 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 7,397 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Intangible Assets and Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 7,397 | |||
Goodwill impairment | $ 0 | $ 0 | (7,397) | $ 0 |
Goodwill, ending balance | 0 | 0 | ||
Finite-lived Intangible Assets [Roll Forward] | ||||
Amortization of intangible assets | (70) | |||
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 | (70) | |||
Intangible assets, net (including goodwill), ending balance | 227 | 227 | ||
Core Deposit | ||||
Finite-lived Intangible Assets [Roll Forward] | ||||
Intangible assets, net (excluding goodwill), beginning balance | 297 | |||
Intangible assets, impairment | 0 | |||
Amortization of intangible assets | (70) | |||
Intangible assets, net (excluding goodwill), ending balance | $ 227 | 227 | ||
Intangible Assets, Gross (Including Goodwill) [Roll Forward] | ||||
Amortization of intangible assets | $ (70) |
Time Deposits and Borrowings (D
Time Deposits and Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Time deposits | ||
Within One Year | $ 948,251 | |
One to Two Years | 115,197 | |
Two to Three Years | 52,074 | |
Three to Four Years | 24,669 | |
Four to Five Years | 495 | |
After Five Years | 0 | |
Total | 1,140,686 | $ 1,239,746 |
Fed funds purchased & repurchase agreements | 13,531 | 14,921 |
FHLB borrowings | ||
Within One Year | 59,500 | |
One to Two Years | 21,500 | |
Two to Three Years | 35,000 | |
Three to Four Years | 0 | |
Four to Five Years | 5,100 | |
After Five Years | 215,000 | |
Total | 336,100 | $ 358,743 |
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 | 952 | |
Total | 952 | |
Total | ||
Within One Year | 1,021,282 | |
One to Two Years | 136,697 | |
Two to Three Years | 87,074 | |
Three to Four Years | 24,669 | |
Four to Five Years | 5,595 | |
After Five Years | 215,952 | |
Total | 1,491,269 | |
Contract value | $ 2,600 |
Change in Accumulated Other C_3
Change in Accumulated Other Comprehensive Income ("AOCI") (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain on sale of available-for-sale debt securities | $ 1,012 | $ 34 | $ 1,725 | $ 467 |
Income tax expense | 1,498 | 2,592 | 928 | 5,308 |
Net Income | 8,006 | 10,384 | 4,507 | 29,173 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain on sale of available-for-sale debt securities | 1,012 | 34 | 1,725 | 467 |
Income tax expense | 248 | 9 | 422 | 115 |
Net Income | $ 764 | $ 25 | $ 1,303 | $ 352 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 652,827 | $ 633,228 |
Actual, ratio | 0.132 | 0.134 |
Tier I Capital to Risk-Weighted Assets | ||
Actual, amount | $ 590,952 | $ 576,332 |
Actual, ratio | 0.120 | 0.122 |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Actual, amount | $ 590,000 | $ 575,411 |
Actual, ratio | 0.120 | 0.122 |
Tier I Capital to Average Assets | ||
Actual, amount | $ 590,952 | $ 576,332 |
Actual, ratio | 0.108 | 0.121 |
Bank | ||
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 601,491 | $ 581,600 |
Actual, ratio | 0.122 | 0.123 |
Required to be considered well capitalized, amount | $ 493,393 | $ 471,385 |
Required to be considered well capitalized, ratio | 0.100 | 0.100 |
Tier I Capital to Risk-Weighted Assets | ||
Actual, amount | $ 539,639 | $ 524,704 |
Actual, ratio | 0.109 | 0.111 |
Required to be considered well capitalized, amount | $ 394,714 | $ 377,108 |
Required to be considered well capitalized, ratio | 0.080 | 0.080 |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Actual, amount | $ 539,639 | $ 524,704 |
Actual, ratio | 0.109 | 0.111 |
Required to be considered well capitalized, amount | $ 320,706 | $ 306,400 |
Required to be considered well capitalized, ratio | 6.50% | 6.50% |
Tier I Capital to Average Assets | ||
Actual, amount | $ 539,639 | $ 524,704 |
Actual, ratio | 0.099 | 0.110 |
Required to be considered well capitalized, amount | $ 272,492 | $ 238,963 |
Required to be considered well capitalized, ratio | 0.050 | 0.050 |
Minimum Capital Required - Basel III Fully Phased-In | ||
Total Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 518,259 | $ 495,095 |
Minimum capital required, Basel III fully phased-in, ratio | 0.105 | 0.105 |
Tier I Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 419,543 | $ 400,791 |
Minimum capital required, Basel III fully phased-in, ratio | 0.085 | 0.085 |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 345,506 | $ 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 | $ 217,932 | $ 191,099 |
Minimum capital required, Basel III fully phased-in, ratio | 0.040 | 0.040 |
Minimum Capital Required - Basel III Fully Phased-In | Bank | ||
Total Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 518,063 | $ 494,954 |
Minimum capital required, Basel III fully phased-in, ratio | 0.105 | 0.105 |
Tier I Capital to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 419,384 | $ 400,677 |
Minimum capital required, Basel III fully phased-in, ratio | 0.085 | 0.085 |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Minimum capital required, Basel III fully phased-in, amount | $ 345,375 | $ 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 | $ 217,994 | $ 191,170 |
Minimum capital required, Basel III fully phased-in, ratio | 0.040 | 0.040 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ in Thousands | 9 Months Ended |
Sep. 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 | $ | $ 531 |
Period for recognizing stock-based compensation expense | 2 years 1 month 6 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 | $ | $ 4,000 |
Period for recognizing stock-based compensation expense | 1 year 8 months 12 days |
2018 Omnibus Equity Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares authorized for future issuance (in shares) | 1,982,634 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 1,207 | $ 1,324 | $ 3,223 | $ 3,606 |
Stock appreciation rights | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 250 | 446 | 744 | 977 |
Performance-based stock awards | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 79 | 159 | 175 | 409 |
Restricted stock units and awards | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | 857 | 719 | 2,283 | 2,184 |
Employee stock purchase plan | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total stock-based compensation | $ 21 | $ 0 | $ 21 | $ 36 |
Stock-Based Compensation - Stat
Stock-Based Compensation - Status and Changes in Performance-Based Awards (Details) - Performance Based Stock Awards | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 | (15,086) |
Ending balance (in shares) | shares | 512,845 |
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 | 14.54 |
Ending balance (in dollars per share) | $ / shares | $ 13.38 |
Income Tax - Effective Income T
Income Tax - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Computed at the statutory rate (21%) | $ 1,996 | $ 2,725 | $ 1,141 | $ 7,241 |
Increase (decrease) resulting from | ||||
Tax-exempt income | (766) | (722) | (2,335) | (2,147) |
Nondeductible expenses | 21 | 71 | 119 | 208 |
State tax credit | 0 | 0 | 0 | (1,361) |
State income taxes | 320 | 566 | 501 | 1,526 |
Equity based compensation | (15) | (5) | 24 | (66) |
Goodwill impairment | 0 | 0 | 1,553 | 0 |
Other adjustments | (58) | (43) | (75) | (93) |
Income tax expense | $ 1,498 | $ 2,592 | $ 928 | $ 5,308 |
Income Tax - Deferred Tax Asset
Income Tax - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Allowance for loan losses | $ 18,613 | $ 13,928 |
Lease incentive | 322 | 294 |
Impairment of available-for-sale securities | 0 | 493 |
Valuation allowance on real estate | 269 | 0 |
Loan fees | 3,747 | 2,317 |
Net operating loss carryover | 344 | 339 |
Accrued expenses | 1,485 | 2,131 |
Deferred compensation | 2,776 | 2,444 |
State tax credit | 2,519 | 3,287 |
Other | 60 | 81 |
Total deferred tax asset | 30,135 | 25,314 |
Deferred tax liability | ||
Fair market value adjustments - trust preferred securities | (341) | (348) |
Net unrealized gain on securities available-for-sale | (8,357) | (5,339) |
FHLB stock basis | (1,194) | (996) |
Premises and equipment | (3,150) | (3,620) |
Other | (1,229) | (1,229) |
Total deferred tax liability | (14,271) | (11,532) |
Net deferred tax asset | $ 15,864 | $ 13,782 |
Disclosures about Fair Value _3
Disclosures about Fair Value of Financial Instruments - Nonrecurring Measurements (Details) - Fair Value, Nonrecurring - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | $ 36,378 | $ 20,889 |
Foreclosed assets held-for-sale | 2,349 | |
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 | 36,378 | $ 20,889 |
Foreclosed assets held-for-sale | $ 2,349 |
Disclosures about Fair Value _4
Disclosures about Fair Value of Financial Instruments - Unobservable Inputs (Details) - Fair Value, Nonrecurring $ in Thousands | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | $ 36,378 | $ 20,889 |
Foreclosed assets held-for-sale | 2,349 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 36,378 | $ 20,889 |
Foreclosed assets held-for-sale | $ 2,349 | |
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 | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Available-for-sale securities | $ 649,901 | $ 739,473 |
Restricted equity securities | 20,923 | 17,278 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 223,636 | 187,320 |
Available-for-sale securities | 652,146 | 741,634 |
Loans, net of allowance for loan losses | 4,401,774 | 3,795,348 |
Restricted equity securities | 20,923 | 17,278 |
Interest receivable | 19,003 | 15,716 |
Derivative assets | 27,873 | 9,838 |
Total financial assets | 5,345,355 | 4,767,134 |
Financial Liabilities | ||
Deposits | 4,492,549 | 3,923,759 |
Federal funds purchased and repurchase agreements | 13,531 | 14,921 |
Federal Home Loan Bank advances | 336,100 | 358,743 |
Other borrowings | 952 | 921 |
Interest payable | 2,550 | 4,584 |
Derivative liabilities | 27,949 | 9,907 |
Total financial liabilities | 4,873,631 | 4,312,835 |
Estimate of Fair Value Measurement | ||
Financial Assets | ||
Cash and cash equivalents | 223,636 | 187,320 |
Available-for-sale securities | 652,146 | 741,634 |
Loans, net of allowance for loan losses | 4,386,027 | 3,810,818 |
Restricted equity securities | 20,923 | 17,278 |
Interest receivable | 19,003 | 15,716 |
Derivative assets | 27,873 | 9,838 |
Total financial assets | 5,329,608 | 4,782,604 |
Financial Liabilities | ||
Deposits | 4,538,838 | 3,928,838 |
Federal funds purchased and repurchase agreements | 13,531 | 14,921 |
Federal Home Loan Bank advances | 353,309 | 357,859 |
Other borrowings | 1,897 | 2,147 |
Interest payable | 2,550 | 4,584 |
Derivative liabilities | 27,949 | 9,907 |
Total financial liabilities | 4,938,074 | 4,318,256 |
Estimate of Fair Value Measurement | Level 1 | ||
Financial Assets | ||
Cash and cash equivalents | 223,636 | 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 | 223,636 | 187,320 |
Financial Liabilities | ||
Deposits | 754,172 | 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 | 754,172 | 521,826 |
Estimate of Fair Value Measurement | Level 2 | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 652,146 | 741,634 |
Loans, net of allowance for loan losses | 0 | 0 |
Restricted equity securities | 0 | 0 |
Interest receivable | 19,003 | 15,716 |
Derivative assets | 27,873 | 9,838 |
Total financial assets | 699,022 | 767,188 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Federal funds purchased and repurchase agreements | 13,531 | 14,921 |
Federal Home Loan Bank advances | 353,309 | 357,859 |
Other borrowings | 1,897 | 2,147 |
Interest payable | 2,550 | 4,584 |
Derivative liabilities | 27,949 | 9,907 |
Total financial liabilities | 399,236 | 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 | 4,386,027 | 3,810,818 |
Restricted equity securities | 20,923 | 17,278 |
Interest receivable | 0 | 0 |
Derivative assets | 0 | 0 |
Total financial assets | 4,406,950 | 3,828,096 |
Financial Liabilities | ||
Deposits | 3,784,666 | 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 | $ 3,784,666 | $ 3,407,012 |
Commitments and Credit Risk (De
Commitments and Credit Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Total commitments | $ 1,592,991 | $ 1,546,495 |
Commitments to originate loans | ||
Loss Contingencies [Line Items] | ||
Total commitments | 188,347 | 134,652 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | 42,204 | 39,035 |
Lines of credit | ||
Loss Contingencies [Line Items] | ||
Total commitments | 1,362,440 | 1,351,873 |
Future lease commitments | ||
Loss Contingencies [Line Items] | ||
Total commitments | $ 0 | $ 20,935 |
Subsequent Events (Details)
Subsequent Events (Details) | Oct. 20, 2020USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 20,000,000 |