Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 25, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 469,054,218 | ||
Entity Common Stock, Shares Outstanding | 51,645,335 | ||
Documents Incorporated by Reference | Part III of this Annual Report on Form 10-K incorporates by reference certain information from the registrant’s definitive proxy statement with respect to its 2021 annual meeting of stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the end of the fiscal year to which this Annual Report on Form 10-K relates. | ||
Entity Central Index Key | 0001458412 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash | $ 408,810 | $ 187,320 |
Available-for-sale securities - taxable | 177,238 | 296,047 |
Available-for-sale securities - tax-exempt | 477,350 | 443,426 |
Loans, net of allowance for loan losses of $75,295 and $56,896 at December 31, 2020 and 2019, respectively | 4,366,602 | 3,795,348 |
Premises and equipment, net | 70,509 | 70,210 |
Restricted equity securities | 15,543 | 17,278 |
Interest receivable | 17,236 | 15,716 |
Foreclosed assets held for sale | 2,347 | 3,619 |
Goodwill and other intangible assets, net | 208 | 7,694 |
Bank-owned life insurance | 67,498 | 65,689 |
Other assets | 55,962 | 28,886 |
Total assets | 5,659,303 | 4,931,233 |
Deposits | ||
Noninterest-bearing | 718,459 | 521,826 |
Savings, NOW and money market | 2,932,799 | 2,162,187 |
Time | 1,043,482 | 1,239,746 |
Total deposits | 4,694,740 | 3,923,759 |
Federal funds purchased and repurchase agreements | 2,306 | 14,921 |
Federal Home Loan Bank advances | 293,100 | 358,743 |
Other borrowings | 963 | 921 |
Interest payable and other liabilities | 43,766 | 31,245 |
Total liabilities | 5,034,875 | 4,329,589 |
Stockholders’ equity | ||
Common stock | 523 | 520 |
Treasury stock, at cost | (6,061) | 0 |
Additional paid-in capital | 522,911 | 519,870 |
Retained earnings | 77,652 | 64,803 |
Accumulated other comprehensive income | 29,403 | 16,451 |
Total stockholders’ equity | 624,428 | 601,644 |
Total liabilities and stockholders’ equity | $ 5,659,303 | $ 4,931,233 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Allowance for loan losses | $ 75,295 | $ 56,896 |
Stockholders’ equity | ||
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) | 52,289,129 | 51,969,203 |
Treasury stock held (in shares) | 609,613 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Interest Income | |||
Loans, including fees | $ 183,738 | $ 191,527 | $ 130,075 |
Available-for-sale securities - taxable | 5,073 | 8,540 | 7,972 |
Available-for-sale securities - tax-exempt | 13,013 | 12,011 | 14,757 |
Deposits with financial institutions | 639 | 3,053 | 3,096 |
Dividends on bank stocks | 985 | 1,087 | 980 |
Total interest income | 203,448 | 216,218 | 156,880 |
Interest Expense | |||
Deposits | 36,585 | 67,668 | 39,372 |
Fed funds purchased and repurchase agreements | 164 | 592 | 1,068 |
Federal Home Loan Bank Advances | 6,341 | 6,367 | 5,841 |
Other borrowings | 109 | 147 | 231 |
Total interest expense | 43,199 | 74,774 | 46,512 |
Net Interest Income | 160,249 | 141,444 | 110,368 |
Provision for Loan Losses | 56,700 | 29,900 | 13,500 |
Net Interest Income after Provision for Loan Losses | 103,549 | 111,544 | 96,868 |
Non-interest Income | |||
Non-interest Income | 8,360 | 3,227 | |
Gain on sale of available-for-sale debt securities | 1,704 | 987 | 538 |
Impairment of premises and equipment held for sale | 0 | (424) | (171) |
Gain on sale of loans | 44 | 207 | 827 |
Income from bank-owned life insurance | 1,809 | 1,878 | 1,969 |
Swap fees and credit valuation adjustments, net | (204) | 2,753 | 285 |
Other non-interest income | 1,198 | 917 | 967 |
Total non-interest income | 11,733 | 8,707 | 6,083 |
Non-interest Expense | |||
Salaries and employee benefits | 57,747 | 57,114 | 56,118 |
Occupancy, net | 8,701 | 8,349 | 8,214 |
Professional fees | 4,218 | 2,964 | 3,320 |
Deposit insurance premiums | 4,301 | 2,787 | 3,186 |
Data processing | 2,719 | 2,544 | 1,995 |
Advertising | 1,219 | 2,455 | 2,691 |
Software and communication | 3,750 | 3,317 | 2,630 |
Foreclosed assets, net | 1,239 | 84 | 0 |
Goodwill impairment | 7,397 | 0 | 0 |
Other non-interest expense | 8,677 | 8,026 | 7,601 |
Total non-interest expense | 99,968 | 87,640 | 85,755 |
Net Income Before Taxes | 15,314 | 32,611 | 17,196 |
Income tax expense (benefit) | 2,713 | 4,138 | (2,394) |
Net Income | $ 12,601 | $ 28,473 | $ 19,590 |
Basic Earnings Per Share (in dollars per share) | $ 0.24 | $ 0.59 | $ 0.48 |
Diluted Earnings Per Share (in dollars per share) | $ 0.24 | $ 0.58 | $ 0.47 |
Service charges and fees (rebates) on customer accounts | |||
Non-interest Income | |||
Non-interest Income | $ 2,803 | $ 604 | $ 444 |
ATM and credit card interchange income | |||
Non-interest Income | |||
Non-interest Income | $ 4,379 | $ 1,785 | $ 1,224 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 12,601 | $ 28,473 | $ 19,590 |
Other Comprehensive Income | |||
Unrealized gain (loss) on available-for-sale securities | 18,847 | 26,682 | (12,755) |
Less: income tax (benefit) | 4,606 | 6,545 | (3,125) |
Unrealized gain (loss) on available-for-sale securities, net of income tax (benefit) | 14,241 | 20,137 | (9,630) |
Reclassification adjustment for realized gains included in income | 1,704 | 987 | 538 |
Less: income tax | 415 | 242 | 132 |
Less: reclassification adjustment for realized gains included in income, net of income tax | 1,289 | 745 | 406 |
Other comprehensive income (loss) | 12,952 | 19,392 | (10,036) |
Comprehensive Income | $ 25,553 | $ 47,865 | $ 9,554 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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 | [1] | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | [1] | Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | ||
Beginning balance (in shares) at Dec. 31, 2017 | 1,200,000 | 30,686,256 | [1] | ||||||||||||
Beginning balance at Dec. 31, 2017 | $ 287,147 | $ 12 | $ 307 | [1] | $ 256,108 | $ 23,694 | $ 7,026 | $ 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 19,590 | 19,590 | |||||||||||||
Change in unrealized appreciation (depreciation) on available-for-sale securities | (10,036) | (10,036) | |||||||||||||
Issuance of shares (in shares) | [1] | 14,805,128 | |||||||||||||
Issuance of shares | 204,215 | $ 148 | [1] | 204,141 | (74) | ||||||||||
Issuance of shares from equity based awards (in shares) | [1] | 352,746 | |||||||||||||
Issuance of shares from equity-based awards | (2,131) | $ 4 | [1] | (2,134) | (1) | ||||||||||
Retired shares (in shares) | [1] | (769,808) | |||||||||||||
Retired shares | (11,024) | $ (8) | [1] | (8,218) | (2,798) | ||||||||||
Preferred dividends declared | (2,100) | (2,100) | |||||||||||||
Employee receivables from sale of stock | 71 | 11 | 60 | ||||||||||||
Stock-based compensation | 4,439 | 4,439 | |||||||||||||
Employee stock purchase plan additions | 165 | 165 | |||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 1,200,000 | 45,074,322 | [1] | ||||||||||||
Ending balance at Dec. 31, 2018 | 490,336 | $ 12 | $ 451 | [1] | 454,512 | 38,371 | (3,010) | 0 | |||||||
Ending balance (Accounting Standards Update 2016-01) at Dec. 31, 2018 | $ 0 | $ (69) | $ 69 | ||||||||||||
Ending balance (Accounting Standards Update 2018-07) at Dec. 31, 2018 | $ 306 | $ 2,159 | $ (1,853) | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 28,473 | 28,473 | |||||||||||||
Change in unrealized appreciation (depreciation) on available-for-sale securities | 19,392 | 19,392 | |||||||||||||
Issuance of shares (in shares) | [1] | 6,851,213 | |||||||||||||
Issuance of shares | 88,871 | $ 68 | [1] | 88,803 | |||||||||||
Issuance of shares from equity based awards (in shares) | [1] | 53,668 | |||||||||||||
Issuance of shares from equity-based awards | (245) | $ 1 | [1] | (246) | |||||||||||
Retired shares (in shares) | (1,200,000) | (10,000) | [1] | ||||||||||||
Retired shares | (30,155) | $ (12) | (30,088) | (55) | |||||||||||
Preferred dividends declared | (175) | (175) | |||||||||||||
Employee receivables from sale of stock | 117 | 6 | 111 | ||||||||||||
Stock-based compensation | 4,688 | 4,688 | |||||||||||||
Employee stock purchase plan additions | 36 | 36 | |||||||||||||
Performance award adjustment as a result of ASU 2018-07, net of tax | (34) | (238) | 204 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | 51,969,203 | [1] | ||||||||||||
Ending balance at Dec. 31, 2019 | 601,644 | $ 0 | $ 520 | [1] | 519,870 | 64,803 | 16,451 | 0 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 12,601 | 12,601 | |||||||||||||
Change in unrealized appreciation (depreciation) on available-for-sale securities | 12,952 | 12,952 | |||||||||||||
Issuance of shares from equity based awards (in shares) | [1] | 319,926 | |||||||||||||
Issuance of shares from equity-based awards | (1,084) | $ 3 | [1] | (1,087) | |||||||||||
Open market common share repurchases (in shares) | [1] | (609,613) | |||||||||||||
Open market common share repurchases | (6,061) | (6,061) | |||||||||||||
Employee receivables from sale of stock | 47 | 3 | 44 | ||||||||||||
Stock-based compensation | 4,321 | 4,321 | |||||||||||||
Employee stock purchase plan additions | 42 | 42 | |||||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 0 | 51,679,516 | [1] | ||||||||||||
Ending balance at Dec. 31, 2020 | $ 624,428 | $ 0 | $ 523 | [1] | $ 522,911 | $ 77,652 | $ 29,403 | $ (6,061) | |||||||
[1] | (1) Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Standards Update 2018-07 | |
Cumulative effect adjustment, tax | $ 306 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | |||
Net income | $ 12,601 | $ 28,473 | $ 19,590 |
Items not requiring (providing) cash | |||
Depreciation and amortization | 5,252 | 5,318 | 4,675 |
Provision for Loan Losses | 56,700 | 29,900 | 13,500 |
Accretion of discounts and amortization of premiums on securities | 6,084 | 5,568 | 5,340 |
Equity based compensation | 4,363 | 4,725 | 4,604 |
(Gain) loss on disposal of fixed assets | 101 | 101 | (4) |
Loss on sale of foreclosed assets | 1,156 | 4 | 0 |
Gain on sale of loans | (44) | (207) | (827) |
Deferred income taxes | (5,257) | (3,486) | (239) |
Net increase in bank-owned life insurance | (1,809) | (1,878) | (1,969) |
Net realized gains on available-for-sale debt and equity securities | (1,704) | (1,049) | (538) |
Impairment of assets held for sale | 0 | 424 | 171 |
Goodwill impairment | 7,397 | 0 | 0 |
Dividends on Federal Home Loan Bank stock | (983) | (1,083) | (975) |
Changes in | |||
Interest receivable | (1,520) | (1,624) | (1,883) |
Other assets | (149) | (3,618) | (3,183) |
Other liabilities | (1,735) | 12,262 | 7,588 |
Net cash provided by operating activities | 80,453 | 73,830 | 45,850 |
Investing Activities | |||
Net change in loans | (640,029) | (805,946) | (1,066,483) |
Purchases of available-for-sale securities | (76,218) | (233,116) | (209,290) |
Proceeds from maturities of available-for-sale securities | 142,057 | 75,478 | 47,157 |
Proceeds from sale of available-for-sale securities | 31,810 | 100,907 | 183,987 |
Proceeds from the sale of foreclosed assets | 1,045 | 0 | 0 |
Purchase of premises and equipment | (6,093) | (850) | (42,832) |
Purchase of restricted equity securities | (2,839) | (2,792) | (1,766) |
Proceeds from the sale of fixed assets | 121 | 3,324 | 1,862 |
Proceeds from sale of restricted equity securities | 5,556 | 1,121 | 2,919 |
Net cash used in investing activities | (544,590) | (861,874) | (1,084,446) |
Financing Activities | |||
Net increase in demand deposits, savings, NOW and money market accounts | 967,245 | 485,593 | 646,634 |
Net increase (decrease) in time deposits | (196,264) | 230,069 | 258,099 |
Net increase (decrease) in fed funds purchased and repurchase agreements | (12,615) | (60,485) | 36,784 |
Proceeds from Federal Home Loan Bank advances | 138,000 | 105,000 | 43,000 |
Repayment of Federal Home Loan Bank advances | (203,643) | (59,242) | (24,230) |
Net repayments of Federal Home Loan Bank line of credit | 0 | 0 | (25,000) |
Retirement of preferred stock | 0 | (30,000) | 0 |
Issuance of common shares, net of issuance cost | 3 | 88,324 | 203,848 |
Proceeds from employee stock purchase plan | 151 | 547 | 367 |
Repurchase of common stock | (6,061) | (155) | (11,024) |
Acquisition of common stock for tax withholding obligations | (1,236) | (245) | (2,132) |
Net decrease in employee receivables | 47 | 117 | 71 |
Dividends paid on preferred stock | 0 | (700) | (2,100) |
Net cash provided by (used in) financing activities | 685,627 | 758,823 | 1,124,317 |
Increase (Decrease) in Cash and Cash Equivalents | 221,490 | (29,221) | 85,721 |
Cash and Cash Equivalents, Beginning of Period | 187,320 | 216,541 | 130,820 |
Cash and Cash Equivalents, End of Period | 408,810 | 187,320 | 216,541 |
Supplemental Cash Flows Information | |||
Interest paid | 45,619 | 73,057 | 45,414 |
Income taxes paid (received) | 9,692 | (29) | 29 |
Equity interest assumed in partial satisfaction of loan | 11,189 | 0 | 0 |
Foreclosed assets in settlement of loans | 930 | 3,619 | 0 |
Dividends declared and unpaid on preferred stock | $ 0 | $ 0 | $ 525 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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. (consolidated) (the “Company”), a Kansas corporation, is a bank holding company whose principal activities are the ownership and management of its wholly-owned subsidiaries, CrossFirst Bank (a subsidiary of CrossFirst Bankshares, Inc.) (the “Bank”) and CFSA, LLC (a subsidiary of CrossFirst Bankshares, Inc.) (“CFSA”), which holds title to certain assets. The Bank has three wholly-owned subsidiaries: (i) CrossFirst Investments, Inc. holds investments in marketable securities; (ii) CFBSA I, LLC holds foreclosed assets; and (iii) CFBSA II, LLC holds foreclosed assets. The Company was in the process of dissolving CFSA at December 31, 2020 and it will cease being a subsidiary of the Company in 2021. The Bank is primarily engaged in providing a full range of banking and financial services to individual and corporate customers through its branches in: (i) Leawood, Kansas; (ii) Wichita, Kansas; (iii) Kansas City, Missouri; (iv) Oklahoma City, Oklahoma; (v) Tulsa, Oklahoma; (vi) Dallas, Texas; and (vii) Frisco, Texas. The Bank is subject to competition from other financial institutions and the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. 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 and its wholly-owned subsidiary, CrossFirst Investments, Inc., CFBSA I, LLC, CFBSA II, LLC and CFSA. All significant intercompany accounts and transactions were eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of deferred tax assets, other-than-temporary impairments (“OTTI”), stock based compensation, derivatives, and fair values of financial instruments. Change in Presentation Due to Stock Split On December 18, 2018, the Company announced a 2-for-1 stock split, effected in the form of a dividend, effective December 21, 2018. Share data and per share data were retroactively adjusted for the periods presented to reflect the change in capital structure. 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 For the year ended December 31, 2020, the Company consolidated “equipment costs, other asset depreciation and amortization” into “other noninterest expense” within the Consolidated Statements of Income. In addition, the Company broke out “foreclosed assets, net” that was previously consolidated. As a result, changes within the Consolidated Statements of Income in the prior periods were made to conform to the current period presentation. The changes: (i) consolidate lower balance line items or (ii) provide additional detail about the Company’s operations. The changes had no impact on net income. During 2020, the Company changed loans individually evaluated for impairment. A discussion regarding this change is provided in Note 4: Loans and Allowance for Loan Losses . The Company separated substandard loans into performing and nonperforming categories that were previously consolidated within the loan footnote disclosures. The new approach provided a better estimate of potential losses inherent in the substandard portfolio. The change in disclosure did not impa ct the Company's impaired loan information at December 31, 2019 or ALLL information for the year ended December 31, 2019 as presented in Note 4: Loans and Allowance for Loan Losses . Beginning in 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. During 2020, the Company moved “equity securities” from the “available-for-sale securities - taxable” into “other assets.” The equity securities were moved from “available-for-sale securities” to “equity securities” in Note 19: Disclosure about Fair Value of Financial Instruments . In addition, the Company moved the “deferred tax asset” into “other assets” due to immateriality. The change had no impact on net income. Operating Segments An operating segment is a component of an entity that has separate financial information related to its business activities and is reviewed by the chief operating decision maker on a regular basis to allocate resources and assess performance. The Company identifies the following markets as operating segments: (i) Kansas City, Missouri and Leawood, Kansas; (ii) Wichita, Kansas; (iii) Oklahoma City, Oklahoma; (iv) Tulsa, Oklahoma; (v) Energy bank; and (vi) Dallas and Frisco, Texas. These markets provide similar products and services using a similar process to a similar customer base. Our products and services include, but are not limited to, loans; checking and savings accounts; time deposits and credit cards. Loan products include commercial, real estate, consumer, and Small Business Administration (“SBA”) lending. The regulatory environment is the same for the markets as well. The chief operating decision maker monitors the revenue and costs of the markets; however, operations are managed, including allocation of resources, and financial performance is evaluated on a Company-wide basis. As a result, the markets are aggregated into one reportable segment. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2020, cash equivalents consisted primarily of both interest-bearing and noninterest bearing accounts with other banks. Approximately $319 million of the Company’s cash and cash equivalents were held at the Federal Reserve Bank of Kansas City at December 31, 2020. The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2020 was $0. In addition, the Company is required from time to time to place cash collateral with a third party as part of its back-to-back swap agreements. At December 31, 2020, $32 million was required as cash collateral. At December 31, 2020, the Company’s cash accounts, excluding funds at the Federal Reserve Bank and funds required as cash collateral, exceeded federally insured limits by $44 million. Securities Debt securities for which the Company has no immediate plan to sell but which may be sold in the future, are classified as available-for-sale (“AFS”) and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of debt securities are recorded on the trade date and are determined using the specific identification method. Equity securities for which the Company has no immediate plan to sell but which may be sold in the future are recorded at fair value with unrealized gains and losses included in earnings. Gains and losses on the sale of equity securities are recorded on the trade date and are determined using the specific identification method. During the period ended December 31, 2020, the Company received an equity security as part of a restructured loan. The Company elected a measurement alternative for the equity investment since it did not have a readily determinable fair value and did not qualify for the practical expedient to estimate fair value using the net asset value per share. A cost basis was calculated for the equity investment. The recorded balance will adjust for any impairment or adjusted for any observable price changes for an identical or similar investment of the same issuer. The Company routinely conducts periodic reviews to identify and evaluate each investment security to determine whether an OTTI has occurred. For available-for-sale securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. Nonperforming Loans Nonperforming loans are loans for which we do not accrue interest income. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. A credit is considered well secured if it is secured by collateral in the form of liens or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full or is secured by the guaranty of a financially responsible party. A debt is in the process of collection if collection of the debt is proceeding in due course either through legal action, including enforcement procedures, or in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual 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 nonaccrual 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. When payments are received on nonaccrual loans, payments are applied to principal unless there is a clear indication that the quality of the loan has improved to the point that it can be placed back on accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the loan balance is not collectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of its ability to collect the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are individually 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 the remaining pool of loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. 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. 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 or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on an individual loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral, if the loan is collateral dependent. 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. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 35 - 40 years Leasehold improvements 5 - 15 years Furniture and fixtures 5 - 7 years Equipment 3 - 5 years Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Restricted Equity Securities Restricted equity securities include investments in FHLB Topeka, Bankers’ Bank of Kansas and Bankers Bank stock. FHLB Topeka is a Federal Home Loan Bank and its stock is a required investment for institutions that are members of the Federal Home Loan System. The required investment in the common stock is based on a predetermined formula. The Bankers’ Bank of Kansas and Bankers Bank are correspondent banks located in Wichita, Kansas and Oklahoma City, Oklahoma, respectively. Each of these investments is carried at cost and evaluated for impairment. Bank-Owned Life Insurance The Company has purchased life insurance policies on certain key employees that are accounted for under the fair value method. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value. Changes in cash surrender value are recorded in earnings in the period in which the changes occur. Foreclosed Assets Held-for-Sale Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expenses from foreclosed assets. Goodwill Goodwill was evaluated annually for impairment or more frequently if impairment indicators were present. A qualitative assessment was performed to determine whether the existence of events or circumstances led to a determination that it was more likely than not the fair value was less than the carrying amount, including goodwill. If, based on the evaluation, it was determined to be more likely than not that the fair value was less than the carrying value, then goodwill was tested further for impairment. If the implied fair value of goodwill was lower than its carrying amount, a goodwill impairment was indicated and goodwill was written down to its implied fair value. Core Deposit Intangible The core deposit intangible represents the identified intangible asset relating to the deposit relationships acquired in past business combinations. The value of the core deposit intangible is based primarily upon the expected future benefits of earnings capacity attributable to those deposits. Related Party Transactions The Company extends credit and receives deposits from related parties. In management’s opinion, the loans and deposits were made in the ordinary course of business and made on similar terms as those prevailing at the time with other persons. Related party loans totaled $16 million at both December 31, 2020 and 2019. Related party deposits totaled $55 million and $66 million at December 31, 2020 and 2019, respectively. Stock-Based Compensation The Company accounts for all stock-based compensation transactions in accordance with Accounting Standard Codification (“ASC”) 718, Compensation - Stock Compensation, which requires that stock compensation transactions be recognized as compensation expense in the consolidated statement of income and other comprehensive income based on their fair values on the measurement date. The Company recognizes forfeitures as they occur. New shares are issued upon exercise of an award. The Company records permanent tax differences through the income tax provision upon vesting or exercise of a stock-based award. The various stock-based compensation plans are described more fully in Note 16: Stock-Based Compensation . Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership; (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: (i) current; and (ii) deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term, more likely than not, means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. Due to the carry forward of federal net operating losses, all prior years remain subject to examination by federal tax authorities. Earnings Per Share Basic earnings per share represent net income available to common stockholders divided by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential shares that would have been outstanding if dilutive potential common stock had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common stock that may be issued by the Company is determined using the treasury stock method. Fair Values of Financial Instruments The Company follows the applicable accounting guidance for fair value measurements and disclosures for all applicable financial and nonfinancial assets and liabilities. ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The Company values financial instruments based upon quoted market prices, where available. If market prices are not available, fair value is based on pricing models that use available information including quoted prices for similar assets or liabilities in active markets, market indicators, and industry and economic events. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities. Derivative Financial Instruments ASC 815, Derivatives and Hedging, provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (i) how and why an entity uses derivative instruments; (ii) how the entity accounts for derivative instruments and related hedged items; and (iii) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit risk related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. In accordance with the Financial Accounting Standards Board's (“FASB”) fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counter-party portfolio. Initial Public Offering On August 19, 2019, the Company completed its initial public offering (“IPO”) of common shares. The Company issued and sold 5,750,000 common shares at a public offering price of $14.50 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $76 million from the IPO. In addition, certain selling stockholders participated in the offering and sold an aggregate of 1,261,589 common shares at a public offering price of $14.50 per share. The Company did not receive any proceeds from the sales of shares by the selling stockholders. On September 17, 2019, the underwriters partially exercised their option to purchase additional shares. The Company issued and sold 844,362 common shares at a public offering price of $14.50 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $11 million. 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. Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) The CARES Act allowed financial institutions to elect not to consider whether loan modifications relating to the COVID-19 pandemic that they make between March 1, 2020 and December 31, 2020 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 met the criteria was overseen by the Office of the Chief Credit Officer and his team. Extension of TDR Relief in the Consolidated Appropriations Act, 2021 Recent Accounting Pronouncements The following ASUs represent changes to current accounting guidance that will be adopted in future years: Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2020-05 Effective immediately, but included here for information purposes as it relates to the ASU listed in the “description” section. Amended the mandatory effective date for ASU 2016-02 (Leases). No expected impact to the financial statements, but delays certain ASUs for private companies, and EGCs that elected to use the private company effective dates for new or revised accounting standards. ASU 2019-10 Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Effective immediately, but included here for informational purposes as it relates to the ASU listed in the “ description” section. Amended the mandatory effective dates for all entities related to: (i) credit losses - ASU 2016-13; (ii) goodwill - ASU 2017-04; (iii) leases - ASU 2016-02; and (iv) hedging - ASU 2017-12 The amended dates were incorporated into the “anticipated date of adoption” section for the appropriate ASU below. No expected impact to the financial statements, but delays certain ASUs for private companies, smaller reporting companies and EGCs that elected to use the private company effective dates for new or revised accounting standards. If a company loses its EGC status during the fiscal year, the company would be required to review all ASUs as a PBE and adopt any ASU effective for PBEs as of the first day of that year. ASU 2018-15 Intangibles-Goodwill and Other-Internal-Use Software ASU 2018-15 will be effective for the Company on December 31, 2021. Early adoption is permitted including adoption in any interim period. The amendments will be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. The Company plans to use the guidance on a prospective basis. At this time, an estimate of the impact to the Company’s financial statements is not known, but may increase our intangible asset balance and create an amortization period for costs previously expensed immediately. 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. Requires an entity to utilize a new impairment mod |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands, except per share data) Earnings per Share Net income $ 12,601 $ 28,473 $ 19,590 Less: preferred stock dividends — 175 2,100 Net income available to common stockholders $ 12,601 $ 28,298 $ 17,490 Weighted average common shares 52,070,624 47,679,184 36,422,612 Earnings per share $ 0.24 $ 0.59 $ 0.48 Dilutive Earnings Per Share Net income available to common stockholders $ 12,601 $ 28,298 $ 17,490 Weighted average common shares 52,070,624 47,679,184 36,422,612 Effect of dilutive shares 477,923 896,951 1,069,955 Weighted average dilutive common shares 52,548,547 48,576,135 37,492,567 Diluted earnings per share $ 0.24 $ 0.58 $ 0.47 Stock-based awards not included because to do so would be antidilutive 1,014,639 521,659 407,852 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Available-for-Sale Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses, of period end available-for-sale securities consisted of the following: December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale securities Mortgage-backed - GSE residential $ 104,839 $ 4,277 $ — $ 109,116 Collateralized mortgage obligations - GSE residential 52,070 984 42 53,012 State and political subdivisions 454,486 33,642 31 488,097 Corporate bonds 4,259 104 — 4,363 Total available-for-sale securities $ 615,654 $ 39,007 $ 73 $ 654,588 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale 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 securities $ 717,682 $ 22,377 $ 586 $ 739,473 The carrying value of securities pledged as collateral was $16 million and $41 million at December 31, 2020 and 2019, respectively. The following table summarizes the gross realized gains and losses from sales or maturities of AFS securities: For the Year Ended December 31, 2020 Gross Realized Gains (1) Gross Realized Losses Net Realized Gain (Dollars in thousands) Available-for-sale securities $ 1,788 $ 84 $ 1,704 (1) Included $75 thousand related to a previously disclosed OTTI municipal security that was settled in 2020. For the Year Ended December 31, 2019 Gross Realized Gains Gross Realized Losses Net Realized Gain (Dollars in thousands) Available-for-sale securities $ 1,043 $ 56 $ 987 For the Year Ended December 31, 2018 Gross Realized Gains Gross Realized Losses Net Realized Gain (Dollars in thousands) Available-for-sale securities $ 2,083 $ 1,545 $ 538 Maturity Schedule The amortized cost, fair value, and weighted average yield of available-for-sale securities by contractual maturity, are shown below: December 31, 2020 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ 48 $ 199 $ 104,592 $ 104,839 Estimated fair value $ — $ 51 $ 212 $ 108,853 $ 109,116 Weighted average yield (2) — % 4.57 % 3.95 % 1.96 % 1.96 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,483 $ 49,587 $ 52,070 Estimated fair value $ — $ — $ 2,721 $ 50,291 $ 53,012 Weighted average yield (2) — % — % 2.77 % 1.02 % 1.11 % State and political subdivisions Amortized cost $ 653 $ 7,661 $ 62,313 $ 383,859 $ 454,486 Estimated fair value $ 657 $ 7,846 $ 67,844 $ 411,750 $ 488,097 Weighted average yield (2) 8.18 % 5.40 % 3.40 % 2.94 % 3.05 % Corporate bonds Amortized cost $ — $ 358 $ 3,901 $ — $ 4,259 Estimated fair value $ — $ 368 $ 3,995 $ — $ 4,363 Weighted average yield (2) — % 4.70 % 4.54 % — % 4.55 % Total available-for-sale securities Amortized cost $ 653 $ 8,067 $ 68,896 $ 538,038 $ 615,654 Estimated fair value $ 657 $ 8,265 $ 74,772 $ 570,894 $ 654,588 Weighted average yield (2) 8.18 % 5.36 % 3.44 % 2.57 % 2.71 % (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. December 31, 2019 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ — $ 329 $ 150,708 $ 151,037 Estimated fair value $ — $ — $ 341 $ 152,171 $ 152,512 Weighted average yield (2) — % — % 4.01 % 2.57 % 2.58 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,527 $ 126,349 $ 128,876 Estimated fair value $ — $ — $ 2,594 $ 126,618 $ 129,212 Weighted average yield (2) — % — % 2.77 % 2.47 % 2.47 % State and political subdivisions Amortized cost $ 523 $ 6,050 $ 51,747 $ 378,128 $ 436,448 Estimated fair value $ 523 $ 6,169 $ 55,001 $ 394,647 $ 456,340 Weighted average yield (2) 9.38 % 5.76 % 3.59 % 3.08 % 3.19 % Corporate bonds Amortized cost $ — $ — $ 1,321 $ — $ 1,321 Estimated fair value $ — $ — $ 1,409 $ — $ 1,409 Weighted average yield (2) — % — % 5.68 % — % 5.68 % Total available-for-sale securities Amortized cost $ 523 $ 6,050 $ 55,924 $ 655,185 $ 717,682 Estimated fair value $ 523 $ 6,169 $ 59,345 $ 673,436 $ 739,473 Weighted average yield (2) 9.38 % 5.76 % 3.60 % 2.85 % 2.94 % (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. Gross Unrealized Losses Certain investments in AFS securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2020 and 2019, was $18 million and $108 million, which was approximately 3% and 15%, respectively, of the Company’s available-for-sale debt security portfolio. The unrealized losses on the Company’s investments in state and political subdivisions were caused by interest rate changes and adjustments in credit ratings. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The unrealized losses on the Company’s investments in collateralized mortgage-backed securities and obligations were caused by interest rate changes and market assumptions about prepayment speeds. The Company expects to recover the amortized cost basis over the term of the securities. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be OTTI at December 31, 2020. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. The following table shows available-for-sale securities gross unrealized losses, the number of securities that are in an unrealized loss position, and fair value of the Company’s investments with unrealized losses that are not deemed to be OTTI, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020 and 2019: December 31, 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 Securities Mortgage-backed - GSE residential $ — $ — — $ — $ — — $ — $ — — Collateralized mortgage obligations - GSE residential 9,933 42 5 — — — 9,933 42 5 State and political subdivisions 8,525 31 8 25 — 1 8,550 31 9 Corporate bonds — — — — — — — — — Total temporarily impaired AFS securities $ 18,458 $ 73 13 $ 25 $ — 1 $ 18,483 $ 73 14 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 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 AFS securities $ 78,881 $ 339 21 $ 29,185 $ 247 15 $ 108,066 $ 586 36 Other-Than-Temporary Impairment Upon acquisition of a security, the Company decides whether it is within the scope of the accounting guidance for beneficial interests in securitized financial assets or will be evaluated for impairment under the accounting guidance for investments. The accounting guidance for beneficial interests in securitized financial assets provides incremental impairment guidance for a subset of the securities within the scope of the guidance. For securities where the security is a beneficial interest in securitized financial assets, the Company uses the beneficial interests in securitized financial asset impairment model. For securities where the security is not a beneficial interest in securitized financial assets, the Company uses the securities impairment model. The Company routinely conducts periodic reviews to identify and evaluate each investment security to determine whether an OTTI has occurred. Economic models are used to determine whether an OTTI has occurred on these securities. The Company recorded no OTTI losses on AFS securities in 2020, 2019 or 2018. Equity Securities Equity securities consist of a $2 million investment in Community Reinvestment Act (“CRA”) mutual fund and an $11 million privately-held security acquired in 2020 as part of a debt restructuring. Equity securities are included in other assets on the Consolidated Balance Sheets. The privately-held security was acquired in partial satisfaction of debts previously contracted. The Company used a discounted cash flow model, a market transactions model and a public valuation approach to determine the security’s cost basis. The Company elected a measurement alternative that allows the security to remain at cost until an impairment is identified or an observable price change for an identical or similar investment of the same issuer occurs. Impairment is recorded when there is evidence that the expected fair value of the investment has declined to below the recorded cost. No changes to the cost basis occurred in 2020. The Company is required to make good faith efforts to dispose of the security. The shares may be held for a maximum of five years, subject to a five year extension that would result in a change to Tier 1 capital. The following is a summary of the recorded fair value and the unrealized and realized gains and losses recognized in net income on equity securities: For the Year Ended December 31, 2020 2019 (Dollars in thousands) Net gains recognized during the period on equity securities $ 46 $ 62 Less: net gains recognized during the period on equity securities sold during the period — — Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ 46 $ 62 |
Loans and Allowance for Loan Le
Loans and Allowance for Loan Leases | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | = 90 Days and Accruing (Dollars in thousands) Commercial $ 8,497 $ 264 $ 11,236 $ 19,997 $ 1,318,760 $ 1,338,757 $ — Energy — — 7,173 7,173 338,060 345,233 372 Commercial real estate 63 7,677 4,825 12,565 1,166,969 1,179,534 — Construction and land development — — — — 563,144 563,144 — Residential and multifamily real estate 1,577 — 3,520 5,097 675,835 680,932 652 PPP — — — — 292,230 292,230 — Consumer — — — — 55,270 55,270 — Total $ 10,137 $ 7,941 $ 26,754 $ 44,832 $ 4,410,268 $ 4,455,100 $ 1,024 As of 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) 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 and multifamily real estate 2,347 — 1,919 4,266 394,429 398,695 — PPP — — — — — — — Consumer 2 254 — 256 44,907 45,163 — Total $ 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 December 31, 2020 and December 31, 2019: As of or For the Year Ended December 31, 2020 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a specific valuation Commercial $ 36,111 $ 50,245 $ — $ 29,591 $ 1,143 Energy 3,864 6,677 — 6,710 53 Commercial real estate 10,079 11,663 — 11,952 390 Construction and land development — — — — — Residential and multifamily real estate 6,329 6,585 — 6,315 145 PPP — — — — — Consumer 244 244 — 250 — Loans with a specific valuation Commercial 8,567 8,567 1,115 8,637 249 Energy 22,181 27,460 3,370 23,823 542 Commercial real estate 34,239 34,239 5,048 27,980 1,035 Construction and land development — — — — — Residential and multifamily real estate — — — — — PPP — — — — — Consumer — — — — — Total Commercial 44,678 58,812 1,115 38,228 1,392 Energy 26,045 34,137 3,370 30,533 595 Commercial real estate 44,318 45,902 5,048 39,932 1,425 Construction and land development — — — — — Residential and multifamily real estate 6,329 6,585 — 6,315 145 PPP — — — — — Consumer 244 244 — 250 — $ 121,614 $ 145,680 $ 9,533 $ 3,557 As of or For the Year Ended December 31, 2019 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a specific valuation Commercial $ 35,846 $ 35,846 $ — $ 44,646 $ 1,549 Energy 2,864 2,864 — 4,381 199 Commercial real estate 9,464 9,464 — 12,907 669 Construction and land development — — — — — Residential and multifamily real estate 2,139 2,139 — 2,140 14 PPP — — — — — Consumer — — — — — Loans with a specific valuation Commercial 35,030 40,030 19,942 39,688 460 Energy 6,880 9,880 1,949 10,547 264 Commercial real estate 1,028 1,028 210 1,037 47 Construction and land development — — — — — Residential and multifamily real estate 249 249 197 249 10 PPP — — — — — Consumer — — — — — Total Commercial 70,876 75,876 19,942 84,334 2,009 Energy 9,744 12,744 1,949 14,928 463 Commercial real estate 10,492 10,492 210 13,944 716 Construction and land development — — — — — Residential and multifamily real estate 2,388 2,388 197 2,389 24 PPP — — — — — Consumer — — — — — $ 93,500 $ 101,500 $ 22,298 $ 3,212 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 December 31, 2020 and 2019: As of December 31, 2020 2019 (Dollars in thousands) Commercial $ 26,691 $ 32,130 Energy 25,927 4,540 Commercial real estate 19,088 1,063 Construction and land development — — Residential and multifamily real estate 3,101 1,942 PPP — — Consumer 244 — Total nonaccrual loans $ 75,051 $ 39,675 Troubled Debt Restructurings (“TDR”) 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 as permitted by the CARES Act. A TDR may also exist if the borrower transfers to the Bank: (i) receivables for third parties; (ii) real estate; (iii) other assets; or (iv) an equity position in the borrower to fully or partially satisfy a loan or the issuance or other granting of an equity position to the Bank to fully or partially satisfy a debt unless the equity position is granted pursuant to existing terms for converting the debt into an equity position. Once an obligation has been restructured, the loan continues to be considered restructured until: (i) the obligation is paid in full or (ii) the borrower is in compliance with its modified terms for at least 12 consecutive months, the loan has a market rate, and the borrower could obtain similar terms from another bank. When a loan undergoes a TDR, the determination of whether the loan would remain on accrual status depends on several factors including: (i) the accrual status prior to the restructuring; (ii) the borrower’s demonstrated performance under the previous terms; and (iii) the Bank’s credit evaluation of the borrower’s capacity to continue to perform under the restructured terms. Loans identified as TDRs are evaluated for impairment using the present value of the expected cash flows or the estimated fair value of the collateral if the loan is collateral dependent. The fair value is determined, when possible, by an appraisal of the property less estimated costs related to liquidation of the collateral. The appraisal amount may also be adjusted for current market conditions. Adjustments to reflect the present value of the expected cash flows or the estimated fair value of collateral dependent loans are a component in determining an appropriate allowance, and as such, may result in increases or decreases to the provision for loan losses in current and future earnings. The table below presents loans restructured during the years ended December 31, 2020 and 2019, including the post-modification outstanding balance and the type of concession made: For the Year Ended December 31, 2020 2019 (Dollars in thousands) Commercial - Debt forgiveness $ 17,297 $ — - Reduction of monthly payment 1,224 994 - Extension of maturity date — 30,005 - Interest rate reduction 3,171 — Energy - Reduction of monthly payment 7,825 — - Extension of maturity date 2,340 — Commercial real estate - Deferred payment 21,210 — - Reduction of monthly payment — 3,767 Total troubled debt restructurings $ 53,067 $ 34,766 As of December 31, 2020, the modifications related to the troubled debt restructurings above did not impact the allowance for loan losses because the loans were previously impaired and evaluated on an individual basis or sufficient collateral was obtained. The restructured loans had a total specific valuation allowance of $4 million and $18 million as of December 31, 2020 and 2019, respectively. For the year ended December 31, 2020 and 2019, the TDRs outstanding resulted in charge-offs of $26 million and $5 million and recoveries of $0 and $0, respectively. No TDRs modified within the past 12 months defaulted in 2020. During 2019, one commercial TDR modified within the past 12 months defaulted with an outstanding balance of $28 million. The balance of restructured loans and the balance of those loans that are in default at any time during the past 12 months at December 31, 2020 and 2019 is provided below: For the Year Ended December 31, 2020 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 7 $ 22,759 $ 2,776 7 $ 31,770 $ 831 Energy 4 11,053 2,713 2 2,864 — Commercial real estate 4 26,038 — 3 4,909 — Construction and land development — — — — — — Residential and multifamily real estate 2 3,245 — — — — PPP — — — — — — Consumer — — — — — — Total troubled debt restructured loans 17 $ 63,095 $ 5,489 12 $ 39,543 $ 831 (1) Default is considered to mean 90 days or more past due as to interest or principal. During the year ended December 31, 2020, $1 million of interest income was recognized related to the $63 million in TDRs above. If the loans had been current in accordance with their original terms and had been outstanding throughout the period or since inception, the gross interest income that would have been recorded for the year ended December 31, 2020 would have been $2 million. During the year ended December 31, 2019, $1 million of interest income was recognized related to the $40 million in TDRs above. If the loans had been current in accordance with their original terms and had been outstanding throughout the period or since inception, the gross interest income that would have been recorded for the year ended December 31, 2019 would have been $2 million. The majority of actual and potential interest income related to one loan relationship restructured late in the second quarter of 2019." id="sjs-B4">Loans and Allowance for Loan Losses Categories of loans at December 31, 2020 and 2019 include: As of December 31, 2020 2019 (Dollars in thousands) Commercial $ 1,338,757 $ 1,356,817 Energy 345,233 408,573 Commercial real estate 1,179,534 1,024,041 Construction and land development 563,144 628,418 Residential and multifamily real estate 680,932 398,695 Paycheck Protection Program ("PPP") 292,230 — Consumer 55,270 45,163 Gross loans 4,455,100 3,861,707 Less: Allowance for loan losses 75,295 56,896 Less: Net deferred loan fees and costs 13,203 9,463 Net loans $ 4,366,602 $ 3,795,348 The following tables summarize the activity in the allowance for loan losses by portfolio segment and disaggregated based on the Company’s impairment methodology. The allocation in one portfolio segment does not preclude its availability to absorb losses in other segments: As of or For the Year Ended December 31, 2020 Commercial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Provision charged to expense 19,959 16,867 15,853 96 3,700 — 225 56,700 Charged-off (31,205) (5,091) (1,584) — (445) — (104) (38,429) Recoveries 75 — — — 41 — 12 128 Ending balance $ 24,693 $ 18,341 $ 22,354 $ 3,612 $ 5,842 $ — $ 453 $ 75,295 Ending balance Individually evaluated for impairment $ 1,115 $ 3,370 $ 5,048 $ — $ — $ — $ — $ 9,533 Collectively evaluated for impairment $ 23,578 $ 14,971 $ 17,306 $ 3,612 $ 5,842 $ — $ 453 $ 65,762 Allocated to loans Individually evaluated for impairment $ 44,678 $ 26,045 $ 44,318 $ — $ 6,329 $ — $ 244 $ 121,614 Collectively evaluated for impairment $ 1,294,079 $ 319,188 $ 1,135,216 $ 563,144 $ 674,603 $ 292,230 $ 55,026 $ 4,333,486 Ending balance $ 1,338,757 $ 345,233 $ 1,179,534 $ 563,144 $ 680,932 $ 292,230 $ 55,270 $ 4,455,100 As of or For the Year Ended December 31, 2019 Commercial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 Provision charged to expense 27,219 (1,273) 1,771 1,041 1,090 — $ 52 29,900 Charged-off (7,954) (3,000) (441) — (8) — $ (20) (11,423) Recoveries 15 576 — — — — $ 2 593 Ending balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Ending balance 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 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 As of or For the Year Ended December 31, 2018 Commercial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 11,378 $ 7,726 $ 4,668 $ 1,200 $ 905 $ — $ 214 $ 26,091 Provision charged to expense 5,720 3,717 2,087 1,275 559 — 142 13,500 Charged-off (976) (1,256) — — — — (71) (2,303) Recoveries 462 75 — — — — 1 538 Ending balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 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 and Multifamily 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% 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. Loans by Risk Rating The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating category and portfolio segment: As of December 31, 2020 Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) Commercial $ 1,182,519 $ 66,142 $ 63,407 $ 26,124 $ 565 $ — $ 1,338,757 Energy 145,598 90,134 83,574 22,177 3,750 — 345,233 Commercial real estate 1,035,056 67,710 57,680 19,088 — — 1,179,534 Construction and land development 561,871 125 1,148 — — — 563,144 Residential and multifamily real estate 672,327 305 5,199 3,101 — — 680,932 PPP 292,230 — — — — — 292,230 Consumer 55,026 — — 244 — — 55,270 Total $ 3,944,627 $ 224,416 $ 211,008 $ 70,734 $ 4,315 $ — $ 4,455,100 As of December 31, 2019 Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) 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 and multifamily real estate 394,495 1,789 469 1,942 — — 398,695 PPP — — — — — — — Consumer 45,163 — — — — — 45,163 Total $ 3,727,182 $ 47,629 $ 47,221 $ 34,192 $ 5,483 $ — $ 3,861,707 Loan Portfolio Aging Analysis The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2020 and 2019: As of December 31, 2020 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) Commercial $ 8,497 $ 264 $ 11,236 $ 19,997 $ 1,318,760 $ 1,338,757 $ — Energy — — 7,173 7,173 338,060 345,233 372 Commercial real estate 63 7,677 4,825 12,565 1,166,969 1,179,534 — Construction and land development — — — — 563,144 563,144 — Residential and multifamily real estate 1,577 — 3,520 5,097 675,835 680,932 652 PPP — — — — 292,230 292,230 — Consumer — — — — 55,270 55,270 — Total $ 10,137 $ 7,941 $ 26,754 $ 44,832 $ 4,410,268 $ 4,455,100 $ 1,024 As of 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) 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 and multifamily real estate 2,347 — 1,919 4,266 394,429 398,695 — PPP — — — — — — — Consumer 2 254 — 256 44,907 45,163 — Total $ 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 December 31, 2020 and December 31, 2019: As of or For the Year Ended December 31, 2020 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a specific valuation Commercial $ 36,111 $ 50,245 $ — $ 29,591 $ 1,143 Energy 3,864 6,677 — 6,710 53 Commercial real estate 10,079 11,663 — 11,952 390 Construction and land development — — — — — Residential and multifamily real estate 6,329 6,585 — 6,315 145 PPP — — — — — Consumer 244 244 — 250 — Loans with a specific valuation Commercial 8,567 8,567 1,115 8,637 249 Energy 22,181 27,460 3,370 23,823 542 Commercial real estate 34,239 34,239 5,048 27,980 1,035 Construction and land development — — — — — Residential and multifamily real estate — — — — — PPP — — — — — Consumer — — — — — Total Commercial 44,678 58,812 1,115 38,228 1,392 Energy 26,045 34,137 3,370 30,533 595 Commercial real estate 44,318 45,902 5,048 39,932 1,425 Construction and land development — — — — — Residential and multifamily real estate 6,329 6,585 — 6,315 145 PPP — — — — — Consumer 244 244 — 250 — $ 121,614 $ 145,680 $ 9,533 $ 3,557 As of or For the Year Ended December 31, 2019 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a specific valuation Commercial $ 35,846 $ 35,846 $ — $ 44,646 $ 1,549 Energy 2,864 2,864 — 4,381 199 Commercial real estate 9,464 9,464 — 12,907 669 Construction and land development — — — — — Residential and multifamily real estate 2,139 2,139 — 2,140 14 PPP — — — — — Consumer — — — — — Loans with a specific valuation Commercial 35,030 40,030 19,942 39,688 460 Energy 6,880 9,880 1,949 10,547 264 Commercial real estate 1,028 1,028 210 1,037 47 Construction and land development — — — — — Residential and multifamily real estate 249 249 197 249 10 PPP — — — — — Consumer — — — — — Total Commercial 70,876 75,876 19,942 84,334 2,009 Energy 9,744 12,744 1,949 14,928 463 Commercial real estate 10,492 10,492 210 13,944 716 Construction and land development — — — — — Residential and multifamily real estate 2,388 2,388 197 2,389 24 PPP — — — — — Consumer — — — — — $ 93,500 $ 101,500 $ 22,298 $ 3,212 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 December 31, 2020 and 2019: As of December 31, 2020 2019 (Dollars in thousands) Commercial $ 26,691 $ 32,130 Energy 25,927 4,540 Commercial real estate 19,088 1,063 Construction and land development — — Residential and multifamily real estate 3,101 1,942 PPP — — Consumer 244 — Total nonaccrual loans $ 75,051 $ 39,675 Troubled Debt Restructurings (“TDR”) 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 as permitted by the CARES Act. A TDR may also exist if the borrower transfers to the Bank: (i) receivables for third parties; (ii) real estate; (iii) other assets; or (iv) an equity position in the borrower to fully or partially satisfy a loan or the issuance or other granting of an equity position to the Bank to fully or partially satisfy a debt unless the equity position is granted pursuant to existing terms for converting the debt into an equity position. Once an obligation has been restructured, the loan continues to be considered restructured until: (i) the obligation is paid in full or (ii) the borrower is in compliance with its modified terms for at least 12 consecutive months, the loan has a market rate, and the borrower could obtain similar terms from another bank. When a loan undergoes a TDR, the determination of whether the loan would remain on accrual status depends on several factors including: (i) the accrual status prior to the restructuring; (ii) the borrower’s demonstrated performance under the previous terms; and (iii) the Bank’s credit evaluation of the borrower’s capacity to continue to perform under the restructured terms. Loans identified as TDRs are evaluated for impairment using the present value of the expected cash flows or the estimated fair value of the collateral if the loan is collateral dependent. The fair value is determined, when possible, by an appraisal of the property less estimated costs related to liquidation of the collateral. The appraisal amount may also be adjusted for current market conditions. Adjustments to reflect the present value of the expected cash flows or the estimated fair value of collateral dependent loans are a component in determining an appropriate allowance, and as such, may result in increases or decreases to the provision for loan losses in current and future earnings. The table below presents loans restructured during the years ended December 31, 2020 and 2019, including the post-modification outstanding balance and the type of concession made: For the Year Ended December 31, 2020 2019 (Dollars in thousands) Commercial - Debt forgiveness $ 17,297 $ — - Reduction of monthly payment 1,224 994 - Extension of maturity date — 30,005 - Interest rate reduction 3,171 — Energy - Reduction of monthly payment 7,825 — - Extension of maturity date 2,340 — Commercial real estate - Deferred payment 21,210 — - Reduction of monthly payment — 3,767 Total troubled debt restructurings $ 53,067 $ 34,766 As of December 31, 2020, the modifications related to the troubled debt restructurings above did not impact the allowance for loan losses because the loans were previously impaired and evaluated on an individual basis or sufficient collateral was obtained. The restructured loans had a total specific valuation allowance of $4 million and $18 million as of December 31, 2020 and 2019, respectively. For the year ended December 31, 2020 and 2019, the TDRs outstanding resulted in charge-offs of $26 million and $5 million and recoveries of $0 and $0, respectively. No TDRs modified within the past 12 months defaulted in 2020. During 2019, one commercial TDR modified within the past 12 months defaulted with an outstanding balance of $28 million. The balance of restructured loans and the balance of those loans that are in default at any time during the past 12 months at December 31, 2020 and 2019 is provided below: For the Year Ended December 31, 2020 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 7 $ 22,759 $ 2,776 7 $ 31,770 $ 831 Energy 4 11,053 2,713 2 2,864 — Commercial real estate 4 26,038 — 3 4,909 — Construction and land development — — — — — — Residential and multifamily real estate 2 3,245 — — — — PPP — — — — — — Consumer — — — — — — Total troubled debt restructured loans 17 $ 63,095 $ 5,489 12 $ 39,543 $ 831 (1) Default is considered to mean 90 days or more past due as to interest or principal. During the year ended December 31, 2020, $1 million of interest income was recognized related to the $63 million in TDRs above. If the loans had been current in accordance with their original terms and had been outstanding throughout the period or since inception, the gross interest income that would have been recorded for the year ended December 31, 2020 would have been $2 million. During the year ended December 31, 2019, $1 million of interest income was recognized related to the $40 million in TDRs above. If the loans had been current in accordance with their original terms and had been outstanding throughout the period or since inception, the gross interest income that would have been recorded for the year ended December 31, 2019 would have been $2 million. The majority of actual and potential interest income related to one loan relationship restructured late in the second quarter of 2019. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Major classifications of premises and equipment, stated at cost, are as follows: As of December 31, 2020 2019 (Dollars in thousands) Land $ 7,384 $ 7,384 Building and improvements 62,331 59,500 Construction in progress 95 524 Furniture and fixtures 14,073 12,851 Equipment 9,587 9,158 93,470 89,417 Less: accumulated depreciation 22,961 19,207 Premises and equipment, net $ 70,509 $ 70,210 |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangible | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangible | Goodwill and Core Deposit Intangible As a result of economic conditions 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. Since the core deposit intangible (“CDI”) outstanding came from the same reporting unit, the Company conducted an impairment test of 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. Following the June 30, 2020 impairment test, no additional qualitative factors arose requiring us to perform another CDI impairment test. 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 change in goodwill and core deposit intangible during the years ended December 31, 2020 and 2019 were: Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount (Dollars in thousands) December 31, 2020 Goodwill $ 7,397 $ — $ 7,397 $ — Core deposit intangible 1,014 806 — 208 Total goodwill and intangible assets $ 8,411 $ 806 $ 7,397 $ 208 December 31, 2019 Goodwill $ 7,397 $ — $ — $ 7,397 Core deposit intangible 1,014 717 — 297 Total goodwill and intangible assets $ 8,411 $ 717 $ — $ 7,694 The remaining CDI balance will amortize over the next three years. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging ActivitiesDerivatives not designated as hedges are not speculative and result from a service provided 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. Interest rate derivatives associated with this program do not meet the strict hedge accounting requirements and changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings. 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 nonperformance risk, also known as the credit valuation adjustment (“CVA”), was adjusted from a default methodology to an internal review process by the Company. Management believes this change better aligns with the Company’s credit methodology and underwriting standards. As a result of the change in methodology, the Company recorded an adjustment to increase swap fee income, net, by approximately $800 thousand, related to swaps closed as of June 30, 2019. If no defaults occur for derivatives not designated as hedges, the change in methodology will lower future swap fee income, net, by the same amount. As of December 31, 2020 and 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: December 31, 2020 December 31, 2019 Product Number of Instruments Notional Amount Number of Instruments Notional Amount (Dollars in thousands) Back-to-back swaps 56 $ 515,567 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 December 31, 2020 and 2019: Asset Derivatives Liability Derivatives Balance Sheet As of December 31, Balance Sheet As of December 31, Location 2020 2019 Location 2020 2019 (Dollars in thousands) Derivatives not designated as hedging instruments Interest rate products Other assets $24,094 $9,838 Other liabilities $ 24,454 $ 9,907 |
Foreclosed Assets
Foreclosed Assets | 12 Months Ended |
Dec. 31, 2020 | |
Other Real Estate, Foreclosed Assets, and Repossessed Assets [Abstract] | |
Foreclosed Assets | Foreclosed AssetsForeclosed assets consisted of commercial use facilities and raw land at December 31, 2020. During 2020, the Company sold the industrial facilities that were foreclosed upon in 2019 and impaired the raw land foreclosed upon in 2019 . Upon acquisition, foreclosed assets are recorded at fair value less estimated selling costs at the date of foreclosure, establishing a new cost basis. They are subsequently carried at the lower of cost or fair value less estimated selling costs. Income and losses are reported on the Consolidated Statements of Income under the foreclosed assets, net section. |
Interest-bearing Time Deposits
Interest-bearing Time Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Maturities of Time Deposits [Abstract] | |
Interest-bearing Time Deposits | Interest-bearing Time Deposits Interest-bearing time deposits in denominations of $250 thousand or more were $524 million and $692 million as of December 31, 2020 and 2019, respectively. The Company acquires brokered deposits in the normal course of business. At December 31, 2020 and 2019, brokered deposits of approximately $188 million and $392 million, respectively, were included in the Company’s time deposit balance. Reciprocal deposits, which includes The Certificate of Deposit Account Registry Services (“CDARS”) discussed below, are treated as core deposits instead of brokered deposits and are not included in the above amounts. The Company is a member of CDARS that allows depositors to receive FDIC insurance on amounts greater than the FDIC insurance limit, which is currently $250,000. CDARS allows institutions to break large deposits into smaller amounts and place them in a network of other CDARS institutions to ensure full FDIC insurance is gained on the entire deposit. CDARS totaled approximately $75 million and $42 million as of December 31, 2020 and 2019, respectively. The scheduled maturities for time deposits are provided in Note 10: Borrowing Arrangements below. |
Borrowing Arrangements
Borrowing Arrangements | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements The following table summarizes borrowings at December 31, 2020 and 2019: As of and For the Year Ended December 31, 2020 2019 (Dollars in thousands) Balance Rate (6) Maximum Balance at Any End of Month Balance Rate (6) Maximum Balance at Any End of Month Repurchase agreements (1) $ 2,306 0.15% $ 57,259 $ 14,921 1.00% $ 72,048 Federal funds purchased (2) — NA 30,000 — NA 25,000 FHLB advances (3) 293,100 1.78 450,659 358,743 1.84 358,743 FHLB line of credit (3) — NA 20,000 — NA 30,000 Federal Reserve Borrowing (4) — NA 15,000 — NA — Trust preferred security (5) 963 1.96% $ 963 921 3.63% $ 921 Total borrowings $ 296,369 $ 374,585 (1) Repurchase agreements consist of Bank obligations to other parties payable on demand and generally have one day maturities. The obligations are collateralized by securities of U.S. government sponsored enterprises and mortgage-backed securities and such collateral is held by a third-party custodian. The year-to-date average daily balance was $32 million and $44 million for the years ended December 31, 2020 and 2019, respectively. The securities, mortgage-backed government sponsored residential securities, pledged for customer repurchase agreements were $6 million and $37 million at December 31, 2020 and 2019, respectively. (2) Federal funds purchased include short-term funds that are borrowed from another bank. The Bank is part of a third-party service that allows us to borrow amounts from another bank if the bank has approved us for credit. Federal funds purchased generally have one day maturities. (3) FHLB advances and line of credit are collateralized by a blanket floating lien on certain loans, as well as, unrestricted securities. FHLB advances are at a fixed rate, ranging from 0.37% to 2.88% and are subject to restrictions or penalties in the event of prepayment. The FHLB line of credit has a variable interest rate that reprices daily based on FHLB’s cost of funds and matur es on May 14, 2021. (4) Federal Reserve borrowings are collateralized by certain available-for-sale securities and certain loans. The Federal Reserve discount window advance rates are variable and based on an established discount rate determined by the Reserve Banks’ board of directors, subject to review and determination by the Board of Governors. The borrowings typically mature in 90 days. (5) On June 30, 2010, the Company assumed a liability with a fair value of $1 million related to the assumption of trust preferred securities issued by Leawood Bancshares Statutory Trust I for $4 million on September 30, 2005. In 2012, the Company settled litigation related to the trust preferred securities which decreased the principal balance by $1.5 million and the recorded balance by approximately $400 thousand. The difference between the recorded amount and the contract value of $2.5 million is being accreted to the maturity date in 2035. Distributions will be paid on each security at a variable annual rate of interest, equal to LIBOR, plus 1.74%. (6) Represents the year-end weighted average interest rate. The following table summarizes the Company’s other borrowing capacities at December 31, 2020 and 2019: As of December 31, 2020 2019 (Dollars in thousands) FHLB borrowing capacity relating to loans $ 518,191 $ 490,218 FHLB borrowing capacity relating to securities — — Total FHLB borrowing capacity $ 518,191 $ 490,218 Unused Federal Reserve borrowing capacity $ 435,805 $ 287,857 The scheduled maturities, excluding interest, of the Company’s borrowings at December 31, 2020 were as follows: As of December 31, 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 $ 867,927 $ 114,963 $ 44,392 $ 15,501 $ 699 $ — $ 1,043,482 Fed funds purchased & repurchase agreements 2,306 — — — — — 2,306 FHLB borrowings 16,500 21,500 35,000 — 5,100 215,000 293,100 Trust preferred securities (1) — — — — — 963 963 Total $ 886,733 $ 136,463 $ 79,392 $ 15,501 $ 5,799 $ 215,963 $ 1,339,851 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes includes these components: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Taxes currently payable (receivable) $ 7,970 $ 7,624 $ (2,155) Deferred income tax liability (5,257) (3,486) (239) Income tax expense (benefit) $ 2,713 $ 4,138 $ (2,394) An income tax reconciliation at the statutory rate to the Company’s actual income tax expense (benefit) is shown below: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Computed at the statutory rate (21%) $ 3,216 $ 6,848 $ 3,611 Increase (decrease) resulting from Tax-exempt income (3,109) (2,913) (3,508) Nondeductible expenses 194 356 380 State tax credit — (1,361) (3,129) State income tax expense (benefit) 679 1,288 687 Equity-based compensation 179 (88) (445) Goodwill impairment 1,553 — — Other adjustments 1 8 10 Actual tax expense (benefit) $ 2,713 $ 4,138 $ (2,394) The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets within other assets are presented below: As of December 31, December 31, 2020 December 31, 2019 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 18,124 $ 13,928 Lease incentive 564 294 Impairment of available-for-sale securities — 493 Loan fees 3,178 2,317 Accrued expenses 2,128 2,131 Deferred compensation 2,474 2,444 State tax credit 2,621 3,287 Other 946 420 Total deferred tax asset 30,035 25,314 Deferred tax liability Net unrealized gain on securities available-for-sale (9,531) (5,339) FHLB stock basis (1,209) (996) Premises and equipment (2,881) (3,620) Other (1,601) (1,577) Total deferred tax liability (15,222) (11,532) Net deferred tax asset $ 14,813 $ 13,782 The Company has approximately $1 million of federal net operating loss carry-forwards, which expire after 2028. The net operating loss is subject to annual usage limitations of $180 thousand per year, but may include unused amounts from prior years. The Company fully expects to utilize the entire net operating loss carry-forwards before they expire. State Tax Exam During 2019, the Company received notice of a state tax audit for tax years ended December 31, 2016, 2017 and 2018. The resolution of findings did not have a material adverse effect on the consolidated financial position, result of operations and cash flows of the Company. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income | Changes in Accumulated Other Comprehensive Income Amounts reclassified from accumulated other comprehensive income (“AOCI”) and the affected line items in the consolidated statements of income were as follows: For the Year Ended December 31, Affected Line Item in the 2020 2019 2018 Statements of Income (Dollars in thousands) Unrealized gains on available-for-sale securities $ 1,704 $ 987 $ 538 Gain on sale of available-for-sale debt securities Less: tax effect 415 242 132 Income tax expense Net reclassified amount $ 1,289 $ 745 $ 406 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 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. The Basel III Capital Rules (“Basel III”) were jointly published by three federal banking regulatory agencies. Basel III defines the components of capital, risk weighting and other issues affecting the numerator and denominator in regulatory capital ratios. 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. The actions may include dividend payment restrictions, require the adoption of remedial measures to increase capital, terminate FDIC deposit insurance, and mandate the appointment of a conservator or receiver in severe cases. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital not reflected in these consolidated financial statements. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and tier I capital (as defined) to risk-weighted assets (as defined), common equity tier I capital (as defined) to risk-weighted assets (as defined), and of tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2020, the Company and the Bank met all capital adequacy requirements to which they are subject. As of December 31, 2020, the most recent notification from the applicable regulatory agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized , the Bank must maintain minimum total risk-based, tier I risk-based, common equity tier I risk-based and tier I leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the Bank’s category. The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2020 and 2019 are presented in the following table: Actual Minimum Capital Required - Basel III Required to be Considered Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 Total Capital to Risk-Weighted Assets Consolidated $ 656,806 13.1 % $ 527,486 10.5 % N/A N/A Bank 611,533 12.2 527,217 10.5 $ 502,111 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 593,865 11.8 427,012 8.5 N/A N/A Bank 548,615 10.9 426,794 8.5 401,689 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 592,902 11.8 351,657 7.0 N/A N/A Bank 548,615 10.9 351,478 7.0 326,372 6.5 Tier I Capital to Average Assets Consolidated 593,865 10.8 219,550 4.0 N/A N/A Bank $ 548,615 10.0 % $ 219,441 4.0 % $ 274,302 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 12.1 191,093 4.0 N/A N/A Bank $ 524,704 11.0 % $ 191,170 4.0 % $ 238,963 5.0 % The above minimum capital requirements include the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer was 2.5% at December 31, 2020 and 2019. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plan | Employee Benefit PlanThe Company has a retirement savings 401(k) plan covering substantially all employees. Employees may contribute a portion of their compensation to the plan. During 2020, 2019 and 2018, Company contributions to the plan were 100% on the first 1% of employees’ salary deferral amounts plus 50% of employees’ salary deferral amounts over 1%, but capped at 6% of employees’ compensation. Additional contributions are discretionary and are determined annually by the Board of Directors. Company contributions to the plan were $1 million, $1 million and $891 thousand for 2020, 2019 and 2018, respectively. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company adopted ASU 2014-09, “ Revenue from Contracts with Customers (Topic 606)” and its related amendments as of January 1, 2019 using the modified retrospective approach. The implementation had no material impact on the measurement or recognition of revenue of either current or prior periods. The categories are selected based on the nature, amount, timing, and uncertainty of revenue and cash flows. The following presents descriptions of revenue categories within the scope of ASU 2014-09 (ASC 606): Service charges and fees (rebates) on customer accounts - This segment consists of monthly fees for the services rendered on customer deposit accounts, including maintenance charges, overdraft fees, and processing fees. The monthly fee structures are typically based on type of account, volume, and activity. The customer is typically billed monthly and pays the bill from their deposit account. The Company satisfies the performance obligation related to providing depository accounts monthly as transactions are processed and deposit service charge revenue is recorded. ATM and credit card interchange income - This segment consists of fees charged for use of the Company’s ATMs, as well as, an interchange fee with credit card and debit card service providers. ATM fees and interchange fees are based on the number of transactions, as well as, the underlying agreements. Customers are typically billed monthly. The Company satisfies the performance obligation related to ATM and interchange fees monthly as transactions are processed and revenue is recorded. International fees - This segment consists of fees earned from foreign exchange transactions and preparation of international documentation. International fees are based on underlying agreements that describe the Company’s performance obligation and the related fee. Customers are typically billed and cash is received once the service or transaction is complete. The Company satisfies the performance obligation related to international fees monthly as transactions are processed and revenue is recorded. Other fees - This segment consists of numerous, smaller fees such as wire transfer fees, check cashing fees, and check printing fees. Other fees are typically billed to customers on a monthly basis. Performance obligations for other fees are satisfied at the time that the service is rendered. The following table disaggregates the noninterest income subject to ASU 2014-09 by category: For the Year Ended December 31, 2020 2019 (Dollars in thousands) Noninterest income subject to ASU 2014-09 Service charges and fees (rebates) on customer accounts $ 2,803 $ 604 ATM and credit card interchange income 4,379 1,785 International fees 1,091 716 Other fees 87 122 Total noninterest income from contracts with customers 8,360 3,227 Noninterest income not subject to ASU 2014-09 Other noninterest income 3,373 5,480 Total noninterest income $ 11,733 $ 8,707 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based CompensationThe Company issues stock-based compensation in the form of non-vested restricted stock and stock appreciation rights under the 2018 Omnibus Equity Incentive Plan (“Omnibus Plan”). In addition, the Company has an Employee Stock Purchase Plan (“ESPP”) that was suspended effective April 1, 2019 and reinstituted effective July 1, 2020. The Omnibus Plan will expire on the tenth anniversary of its effective date. The aggregate number of shares authorized for future issuance under the Omnibus Plan is 2,083,353 shares as of December 31, 2020. The Company will issue new common shares upon exercise or vesting of stock-based awards. During 2018, the Company announced a 2-for-1 stock split effected in the form of a dividend. The stock split was effective on December 21, 2018. Except as described herein, stock-based awards were retroactively adjusted for all periods presented to reflect the change in capital structure. During 2018, awards issued under the Stock Settled Appreciation Right (“SSAR”) Plan, Equity Incentive Plan, Employee Equity Incentive Plan and New Market Founder Plan were assumed under the Omnibus Plan as agreed upon with participants, impacting all participants who agreed to the assumption. The awards are called “Legacy Awards.” Material terms and conditions of Legacy Awards remain unchanged; therefore, no modification to their fair market value was required. Going forward, all awards will be issued under the Omnibus Plan. During 2018, several events, including the ones mentioned above, impacted stock-based compensation. A table showing the events and the impact to stock-based compensation is provided at the end of Note 16. The table below summarizes stock-based compensation for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Stock appreciation rights $ 994 $ 1,243 $ 1,457 Performance-based stock awards 249 271 578 Restricted stock awards 3,078 3,174 2,404 Employee stock purchase plan 42 36 165 Total stock-based compensation $ 4,363 $ 4,724 $ 4,604 Stock Settled Appreciation Rights SSARs are granted based on the fair market value of the Company’s common stock. SSARs typically vest in equal amounts over a seven-year period, commencing on the first anniversary of the effective date of grant and have fifteen-year contractual terms for Legacy Awards and ten-year contractual terms for all other SSARs. Legacy Awards include retirement eligibility upon the participant’s 65th birthday, five years of participation, and after one year holding the grant. The exercise of a SSAR entitles the participant to the excess of the exercise price over the grant price for each SSAR. Exercise price is based on the fair market value of the Company’s common shares. During 2018, the Company issued 100,000 SSARs with a strike price of $28.50 to a nonemployee. The SSARs vest in equal amounts over a five-year period, commencing on the first anniversary of the effective date of grant and have a five-year contractual term. The Company determined that the award did not require substantive service, which required the award to be fully expensed at the grant date. Because the award is to a nonemployee, the fair market value for this award was adjusted quarterly until the Company adopted ASU 2018-07 in the first quarter of 2019, which set the fair market value for this award. Additional information on ASU 2018-07 can be found in Note 1: Nature of Operations and Summary of Significant Accounting Policies within the Notes to the Consolidated Financial Statements. The SSAR was not adjusted with respect to the 2-for-1 stock split in accordance with the underlying agreements with the nonemployee and the applicable plan, which did not provide for adjustment. During 2018, the Company accelerated the vesting of 107,482 SSARs in accordance with the Chairman Emeritus Agreement. The acceleration resulted in $430 thousand in additional expense due to modification accounting. Both the award to the nonemployee and modification to existing SSARs are included in the tables below. During 2018, 240,000 SSARs were granted that vest in equal amounts over a three-year period, commencing on the first anniversary of the effective date of grant and have fifteen-year contractual terms. The calculated value of each share award is estimated at the grant date using a Black-Scholes option valuation model. Expected volatility is primarily based on an internal model that calculates the historical volatility of the Company’s stock since the IPO and several peer group banks’ weekly average stock prices before the IPO over the expected term. The expected term of stock granted represents the period of time that shares are expected to be outstanding. The risk-free rate for periods within the contractual life of the share award is based on the U.S. Treasury yield curve. For the expected term, the Company uses the simplified method described in SAB Topic 14.D.2. This method uses an expected term based on the midpoint between the vesting date and the end of the contractual term. This method is used for the majority of SSARs, because the Company does not have a significant pool of SSARs that have been exercised. For some SSARs that are granted to participants who will be retirement eligible during the term of the award, a separate analysis is performed that focuses more on expected retirement date. The following table provides the range of assumptions used in the Black-Scholes valuation model, the weighted average grant date fair value, and information related to SSARs exercised for the following years, as well as, the remaining compensation cost to be recognized and period over which the amount will be recognized as of the dates indicated: For the Year Ended December 31, 2020 2019 (1) 2018 (Dollars in thousands, except per share data) Assumptions: Expected volatility 20.34% 24.63% - 33.63% 25.69% - 42.99% Expected dividends 0.00% 0.00% 0.00% Expected term (in years) 6.00 4.24 - 7.00 4.00 - 9.50 Risk-free rate 0.38% 1.45% - 2.55% 2.50% - 2.94% Weighted average grant date fair value per share $1.93 $5.43 $4.68 Aggregate intrinsic value of SSARs exercised $571 $493 $2,214 Total fair value of SSARs vested during the year $1,245 $1,171 $1,710 Unrecognized compensation information: Unrecognized compensation cost $1,737 $2,904 $3,730 Period remaining (in years) 3.3 3.9 3.9 (1) The Black-Scholes inputs include a revaluation of a nonemployee SSAR upon adoption of ASU 2018-07, as well as, SSARs granted during the period. A summary of SSAR activity during and as of December 31, 2020 is presented below: Stock Settled Appreciation Rights Units Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding, January 1, 2020 1,772,652 $ 10.31 9.20 Granted 25,907 9.35 9.42 Exercised (140,354) 5.94 Forfeited or expired (68,530) 9.14 Outstanding, December 31, 2020 1,589,675 $ 10.73 8.45 Exercisable, December 31, 2020 991,130 $ 9.59 8.14 Performance-Based Stock Awards (“PBSAs”) The Company awards PBSAs to key officers of the Company. The stock settled awards are typically granted annually as determined by the Compensation Committee. The performance-based shares typically cliff-vest at the end of three years based on attainment of certain performance metrics developed by the Compensation Committee. The ultimate number of shares issuable under each performance award is the product of the award target and the award payout percentage given the level of achievement. The award payout percentages by level of achievement range between 0% of target and 150% of target. During 2016, the Company awarded PBSAs to New Market Founders. A New Market Founder is a nonemployee, adviser chosen in a selected market to facilitate expansion of banking relationships. During 2016, 110,900 PBSAs were granted and cliff-vest on December 31, 2021. No compensation expense was recognized as part of this plan during 2018. The Company adopted ASU 2018-07 in the first quarter of 2019, which set the fair market value for this award. The Company determined that no substantial service existed for this award, resulting in a cumulative effect adjustment of approximately $2 million to retained earnings. Increases to the expected or actual award payout percentages from the date ASU 2018-07 was adopted will be immediately expensed going forward. Reductions to the expected or actual award payout percentages from the date ASU 2018-07 was adopted will be adjusted through retained earnings. Issuance of the above New Market Founder PBSAs is based upon four equally weighted market measures: total assets, total loans, return on assets and classified assets to capital as of December 31, 2021. 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 to 150% of target. Achievement between 50% of target (“threshold”) and 150% (“stretch”) will result in an award payout percentage determined based on straight-line interpolation between the percentiles. A maximum of 248,841 units could be issued. The following table summarizes the status of and changes in the performance-based awards: Performance-Based 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 (1,900) 13.55 Unvested, December 31, 2020 231,631 $ 10.51 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 Legacy Awards and vest in equal amounts over three years for all other RSUs. The service based RSAs typically cliff-vest after one year. During 2018, 60,000 Legacy RSUs were granted with a grant date fair market value of $14.25 per unit and vests in equal amounts over a three-year period, commencing on the first anniversary of the effective date of grant. During 2018, the Company accelerated the vesting of 74,280 RSUs in accordance with the Chairman Emeritus Agreement. The acceleration resulted in $694 thousand to be immediately expensed instead of over the initial expected service period. 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 (231,845) 15.37 Forfeited (33,015) 14.62 Unvested, December 31, 2020 369,217 $ 12.61 Employee Stock Purchase Plan The Company has an ESPP whereby employees are eligible for the plan when they have met certain requirements concerning period of credited service and minimum hours worked. The calculated value of each unit award is estimated at the start of the offering period using a Black-Scholes option valuation model that used the assumptions noted in the following table: For the Year Ended December 31, 2020 2019 2018 Assumptions: Expected volatility 22.50% 7.60% 7.60% Expected dividends 0.00% 0.00% 0.00% Expected term (in years) 0.50 1 1 Risk-free rate 0.17% 2.09% 2.09% 2018 Events Due to the number of events that occurred in 2018, a table of events and the impact to equity based compensation is provided below followed by additional detail under the table: Change Change in in Number of Event Event Cumulative Awards Issued / Additional Date Type Expense Exercised Notes (Dollars in thousands) January 2018 EIP Modification: from performance awards to time-vested awards $ 1,294 None Awards were exchanged at “Target” representing 100% of the original award. 282,192 PBSAs were forfeited and replaced with 282,192 RSUs. May 2018 Chairman Emeritus Agreement: SSAR and RSU vesting was accelerated $ 1,124 201,334 SSARs were exercised and 74,280 RSUs vested 101,178 common shares were issued. October 2018 New Plan Approved: Existing awards were canceled and regranted under the Omnibus Plan as agreed with certain participants. – SSARs None None 1,595,430 SSARs were forfeited and regranted under the Omnibus Plan – RSUs None None 298,254 RSUs were forfeited and regranted under the Omnibus Plan – PBSAs None None 159,384 PBSAs were forfeited and regranted under the Omnibus Plan December 2018 Stock Split: 2-for-1 Stock Split occurred None All awards, excluding 100,000 SSARs were split All awards, other than the noted SSARs, were retroactively adjusted for all periods presented to reflect the 2-for-1 split In January 2018, the Company modified the Equity Incentive Plan to allow the Compensation Committee to award performance-based awards or service-based awards. The Compensation Committee modified awards granted in 2016 and 2017 from performance-based to service-based awards. The modification resulted in a $1 million increase in expense that will be recognized over the remaining service period. A total of 25 participants were impacted by this modification. During 2018, $989 thousand was recognized, including $61 thousand in forfeiture credits. The remaining $216 thousand was recognized in 2019. In May 2018, the Company’s former Chief Executive Officer became the Company’s Chairman Emeritus. As part of this transition, restricted stock units issued under the Equity Incentive Plan in 2016, 2017, and 2018 were fully vested. The modification resulted in $694 thousand of additional expense. In addition, all SSARs awarded under the Stock Appreciation Rights Plan were considered fully-vested. This modification resulted in $430 thousand of additional expense. All awards were converted to common stock and 101,178 common shares were issued. The Chairman Emeritus Agreement also granted 100,000 SSARs that will vest equally over five years. |
Stock Warrants
Stock Warrants | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stock Warrants | Changes in Accumulated Other Comprehensive Income Amounts reclassified from accumulated other comprehensive income (“AOCI”) and the affected line items in the consolidated statements of income were as follows: For the Year Ended December 31, Affected Line Item in the 2020 2019 2018 Statements of Income (Dollars in thousands) Unrealized gains on available-for-sale securities $ 1,704 $ 987 $ 538 Gain on sale of available-for-sale debt securities Less: tax effect 415 242 132 Income tax expense Net reclassified amount $ 1,289 $ 745 $ 406 |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Operating Leases | Operating Leases During 2020, the Bank began occupying office space in Kansas City, Missouri and Frisco, Texas. The Kansas City, non-cancellable lease has a term of 15 years with four, five-year renewal options. The Bank received a construction allowance of $1 million. The Frisco, non-cancellable lease has a term of 86 months with two, five-year renewal options. The Bank received a construction allowance of $212 thousand. The Company has various, non-cancellable operating leases for office space in its respective markets. Three operating leases included tenant improvement allowances. In accordance with ASC 840, the Company is amortizing the benefit through occupancy expense over the expected life of the lease. Rent expense for the periods presented was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Rental Expense $ 2,871 $ 2,526 $ 3,323 Future minimum lease payments under operating leases were as follows: (Dollars in thousands) 2021 $ 2,837 2022 2,910 2023 2,956 2024 2,621 2025 2,627 Thereafter $ 16,716 |
Disclosure about Fair Value of
Disclosure about Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Disclosure about Fair Value of Financial Instruments | Disclosure 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 December 31, 2020 and 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 7: Derivatives Nonrecurring Measurements The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall: December 31, 2020 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs (Dollars in thousands) Collateral-dependent impaired loans $ 55,454 $ — $ — $ 55,454 Foreclosed assets held-for-sale $ 2,347 $ — $ — $ 2,347 December 31, 2019 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable 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, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. 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 Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by 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 Chief Credit Officer by comparison to historical results. Foreclosed Assets Held-for-Sale The fair value of foreclosed assets held-for-sale is based on the appraised fair value of the collateral, less estimated cost to sell. Unobservable (Level 3) Inputs $29 million of collateral dependent impaired loans had appraisals that were more than one year old at December 31, 2020. The Company increased the marketability discount to compensate for the aged appraisals. Increased discounts on other loans resulted from the COVID-19 pandemic’s impact. The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2020 and 2019: As of December 31, 2020 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral dependent impaired loans $ 55,454 Market comparable properties Marketability discount 1% - 98% (24%) Foreclosed assets held-for-sale $ 2,347 Market comparable properties Marketability discount 7% - 10% 9% As of 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%) See Note 16: Stock-Based Compensation for quantitative information about unobservable inputs used in the fair value measurement of stock appreciation rights. The following tables present the estimated fair values of the Company’s financial instruments at December 31, 2020 and 2019: December 31, 2020 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 408,810 $ 408,810 $ — $ — $ 408,810 Available-for-sale securities 654,588 — 654,588 — 654,588 Loans, net of allowance for loan losses 4,366,602 — — 4,351,970 4,351,970 Restricted equity securities 15,543 — — 15,543 15,543 Interest receivable 17,236 — 17,236 — 17,236 Equity securities 13,436 — 2,247 11,189 13,436 Derivative assets 24,094 — 24,094 — 24,094 Total $ 5,500,309 $ 408,810 $ 698,165 $ 4,378,702 $ 5,485,677 Financial Liabilities Deposits $ 4,694,740 $ 718,459 $ — $ 4,015,792 $ 4,734,251 Federal funds purchased and repurchase agreements 2,306 — 2,306 — 2,306 Federal Home Loan Bank advances 293,100 — 309,020 — 309,020 Other borrowings 963 — 2,024 — 2,024 Interest payable 2,163 — 2,163 — 2,163 Derivative liabilities 24,454 — 24,454 — 24,454 Total $ 5,017,726 $ 718,459 $ 339,967 $ 4,015,792 $ 5,074,218 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 739,473 — 739,473 — 739,473 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 Equity security 2,161 — 2,161 — 2,161 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 |
Significant Estimates and Conce
Significant Estimates and Concentrations | 12 Months Ended |
Dec. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Significant Estimates and Concentrations | Significant Estimates and Concentrations GAAP requires disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are reflected in Note 4: Loans and Allowance for Loan Losses . Current vulnerabilities due to certain concentrations of credit risk are discussed in Note 21: Commitments and Credit Risk . Credit risk related to derivatives is reflected in the Note 7: Derivatives and Hedging Activities . Estimates related to equity awards are reflected in Note 16: Stock-Based Compensation . Other significant estimates and concentrations not discussed in those footnotes include: Investments The Company invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such change could materially affect the amounts reported in the accompanying consolidated balance sheets. 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 that 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. |
Commitments and Credit Risk
Commitments and Credit Risk | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Credit Risk | Commitments and Credit Risk The Company had the following commitments at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 (Dollars in thousands) Commitments to originate loans $ 99,596 $ 134,652 Standby letters of credit 48,607 39,035 Lines of credit 1,423,038 1,351,873 Future lease commitments — 20,935 Total $ 1,571,241 $ 1,546,495 Commitments to Originate Loans Commitments to originate loans are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case by case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third-party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under nonfinancial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. Fees for letters of credit are initially recorded by the Company as deferred revenue and are included in earnings at the termination of the respective agreements. Should the Company be obligated to perform under the standby letters of credit, the Company may seek recourse from the customer for reimbursement of amounts paid. Lines of Credit Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case by case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance sheet instruments. |
Stock Offerings and Repurchases
Stock Offerings and Repurchases | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stocks Offerings and Repurchases | Stock Offerings and Repurchases In October 2020, the Company announced a $20 million program to repurchase CrossFirst’s common stock. The repurchased shares are held in the treasury stock account until sold or retired and will be accounted for on a first-in first-out method. The Company completed its IPO on August 19, 2019 in which it issued and sold 6,594,362 common shares including 844,362 shares pursuant to the underwriters’ partial exercise of their over-allotment option. The common shares were sold at an initial public offering price of $14.50 per share. After deducting the underwriting discounts and offering expenses, the Company received total net proceeds of $87 million. The Company redeemed all, 1,200,000, of its 7.00% Series A Non-Cumulative Perpetual Preferred Stock (the “Series A Preferred Shares”) on January 30, 2019 (the “Redemption Date”). On the Redemption Date, we redeemed each outstanding Series A Preferred Share at a redemption price of $25.00 per share. From and after the Redemption Date, all of the Series A Preferred Shares ceased to be outstanding, all dividends with respect to the Series A Preferred Shares ceased to accrue and all rights with respect to the Series A Preferred Shares ceased and terminated, except the rights of holders to receive the redemption price per share of the Series A Preferred Shares. The impact of the redemption was a reduction of approximately $30 million in cash and cash equivalents and stockholders’ equity. The redemption did not impact the income statement. Effective December 21, 2018, the Company effected a 2-for-1 stock split in the form of a dividend. Share data and per share data were retroactively adjusted for the periods presented to reflect the change in capital structure. Prior to its IPO, the Company issued the majority of common shares through private placements. In addition, the Company had employee plans that allowed certain individuals to purchase common shares outside of a private placement. The Company has various stock-based awards that are converted into common stock upon vest or exercise. Additional information related to stock-based awards can be found in Note 16: Stock-Based Compensation and information related to warrants can be found in Note 17: Stock Warrants |
Parent Company Condensed Financ
Parent Company Condensed Financial Statements | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Condensed Financial Statements | Parent Company Condensed Financial Statements The following are the condensed financial statements of CrossFirst Bankshares, Inc. (Parent only) for the periods indicated: Condensed Balance Sheets Year Ended December 31, 2020 2019 (Dollars in thousands) Assets Investment in consolidated subsidiaries Banks $ 580,162 $ 551,084 Nonbanks — 870 Cash 46,676 52,478 Other assets 1,756 1,364 Total assets $ 628,594 $ 605,796 Liabilities and stockholders’ equity Trust preferred securities, net $ 963 $ 921 Other liabilities 3,203 3,231 Total liabilities 4,166 4,152 Stockholders’ equity Common stock 523 520 Treasury stock at cost (6,061) — Additional paid-in capital 522,911 519,870 Retained earnings 77,652 64,803 Accumulated other comprehensive income 29,403 16,451 Total stockholders’ equity 624,428 601,644 Total liabilities and stockholders’ equity $ 628,594 $ 605,796 Condensed Statements of Income For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Income Earnings of consolidated subsidiaries $ 13,682 $ 28,814 $ 24,330 Management fees charged to subsidiaries 8,520 7,500 6,000 Other (18) (4) 3 Total income 22,184 36,310 30,333 Expense Salaries and employee benefits 5,143 4,584 8,139 Occupancy, net 405 275 368 Other 4,220 3,044 3,734 Total expense 9,768 7,903 12,241 Income tax benefit (185) (66) (1,498) Net income $ 12,601 $ 28,473 $ 19,590 Condensed Statements of Cash Flows For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Operating Activities Net income $ 12,601 $ 28,473 $ 19,590 Items not requiring (providing) cash Earnings of consolidated subsidiaries (13,682) (28,814) (24,330) Share-based incentive compensation 1,917 1,974 2,224 Other adjustments (412) 5,343 1,367 Net cash provided by (used in) operating activities 424 6,976 (1,149) Investing Activities Decrease (increase) in investment in subsidiaries 870 (49,825) (157,900) Net cash provided by (used in) investing activities 870 (49,825) (157,900) Financing Activities Redemption of preferred stock — (30,000) — Dividends paid on preferred stock — (700) (2,100) Issuance of common stock, net 3 88,324 203,848 Common stock purchased and retired — (155) (11,024) Open market common share repurchases (6,061) — — Acquisition of common stock for tax withholding obligations (1,236) (245) (2,132) Proceeds from employee stock purchase plan 151 547 367 Net decrease in employee receivables 47 117 71 Net cash provided by (used in) financing activities (7,096) 57,888 189,030 Increase (decrease) in cash (5,802) 15,039 29,981 Cash at beginning of year 52,478 37,439 7,458 Cash at end of year $ 46,676 $ 52,478 $ 37,439 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsSubsequent events have been evaluated through February 26, 2021, which is the date the consolidated financial statements were available to be issued. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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 and its wholly-owned subsidiary, CrossFirst Investments, Inc., CFBSA I, LLC, CFBSA II, LLC and CFSA. All significant intercompany accounts and transactions were eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, valuation of deferred tax assets, other-than-temporary impairments (“OTTI”), stock based compensation, derivatives, and fair values of financial instruments. |
Change in Accounting Principle, Recent Accounting Pronouncements and Accounting Guidance Adopted | 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 following ASUs represent changes to current accounting guidance that will be adopted in future years: Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2020-05 Effective immediately, but included here for information purposes as it relates to the ASU listed in the “description” section. Amended the mandatory effective date for ASU 2016-02 (Leases). No expected impact to the financial statements, but delays certain ASUs for private companies, and EGCs that elected to use the private company effective dates for new or revised accounting standards. ASU 2019-10 Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Effective immediately, but included here for informational purposes as it relates to the ASU listed in the “ description” section. Amended the mandatory effective dates for all entities related to: (i) credit losses - ASU 2016-13; (ii) goodwill - ASU 2017-04; (iii) leases - ASU 2016-02; and (iv) hedging - ASU 2017-12 The amended dates were incorporated into the “anticipated date of adoption” section for the appropriate ASU below. No expected impact to the financial statements, but delays certain ASUs for private companies, smaller reporting companies and EGCs that elected to use the private company effective dates for new or revised accounting standards. If a company loses its EGC status during the fiscal year, the company would be required to review all ASUs as a PBE and adopt any ASU effective for PBEs as of the first day of that year. ASU 2018-15 Intangibles-Goodwill and Other-Internal-Use Software ASU 2018-15 will be effective for the Company on December 31, 2021. Early adoption is permitted including adoption in any interim period. The amendments will be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. The Company plans to use the guidance on a prospective basis. At this time, an estimate of the impact to the Company’s financial statements is not known, but may increase our intangible asset balance and create an amortization period for costs previously expensed immediately. 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. Requires an entity to utilize a new impairment model known as the current expected credit loss model to estimate its lifetime expected credit loss and record an allowance that, when deducted from 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. The Company completed parallel runs in 2019. During the period ended December 31, 2020, the Company continued to perform parallel runs using 2020 data and continued to recalibrate inputs as necessary. The Company is evaluating the internal control changes that will be necessary to transition to the third-party platform. At this time, an estimate of the impact cannot be established as the Company continues to evaluate the inputs into the model. The actual impact could be significantly affected by the composition, characteristics, and quality of the underlying loan portfolio at the time of adoption. 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 update requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach with the option to elect certain practical expedients. The update will also increase disclosures around leases, including qualitative and specific quantitative measures. The Company expects to apply the update as of the beginning of the period of adoption and the Company does not plan to restate comparative periods. The Company expects to elect certain optional practical expedients. Accounting Guidance Adopted During Fiscal Years 2020, 2019, and 2018 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 December 31, 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. ASU 2018-07: Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting January 2019 Early adoption Expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, excluding share-based payments used to effectively provide: (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers . The amendments include: (i) grants are measured at grant-date fair value of the equity instruments; (ii) equity-classified nonemployee share-based payment awards are measured at the grant date; (iii) performance based awards are measured based on the probability of satisfying the performance conditions and (iv) in general, non-employee share-based payment awards will continue to be subject to the requirements of ASC 718 unless modified after the good has been delivered, the service has been rendered, any other conditions necessary to earn the right to benefit from the instrument have been satisfied, and the nonemployee is no longer providing goods or services. The Company had 216,960 stock-based awards to non-employees as of the implementation date, including 116,960 performance-based restricted stock units. The adoption of the ASU allowed the Company to: (i) set the fair market value of the non-employee awards as of the adoption date; and (ii) start to expense the performance-based restricted stock units based on the probability of satisfying the performance conditions. In addition, the Company recorded a $306 thousand deferred tax asset that was offset with retained earnings to account for the tax impact. The Company will record forfeitures as they occur and base fair market values on the expected term, like the Company’s accounting for employee-based awards. ASU 2016-01: Financial Instruments-Overall (Subtopic 825-10) January 2019 Required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of practicability exceptions in determining the fair value of loans. The Company transferred $69 thousand from accumulated other comprehensive loss to retained earnings in January 2019. There was no impact to the income statement on the adoption date. ASU 2014-09: Revenue from Contracts with Customers January 2019 Amended guidance related to revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Replaced nearly all existing revenue recognition guidance, including industry specific guidance, established a new control based revenue recognition model, changed the basis for deciding when revenue is recognized over time or at a point in time, provided new and more detailed guidance on specific topics and expands and improves disclosures about revenue. The accounting update did not materially impact the financial statements or recognition of revenues. ASU 2018-02: Income Statement Reporting Comprehensive Income (Topic 220) February 2018, retrospectively applied to 2017 Allowed a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company recognized a reclassification totaling $1 million related to items in accumulated other comprehensive income. ASU 2017-09: Compensation -Stock Compensation (Topic 718): Scope of Modification Accounting January 2018 Provides guidance about which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: (i) The fair value does not change as a result of the modification or the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The adoption of ASU 2017-09 did not have a significant impact on the Company’s consolidated financial statements. |
Changes Affecting Comparability | Changes Affecting Comparability For the year ended December 31, 2020, the Company consolidated “equipment costs, other asset depreciation and amortization” into “other noninterest expense” within the Consolidated Statements of Income. In addition, the Company broke out “foreclosed assets, net” that was previously consolidated. As a result, changes within the Consolidated Statements of Income in the prior periods were made to conform to the current period presentation. The changes: (i) consolidate lower balance line items or (ii) provide additional detail about the Company’s operations. The changes had no impact on net income. During 2020, the Company changed loans individually evaluated for impairment. A discussion regarding this change is provided in Note 4: Loans and Allowance for Loan Losses . The Company separated substandard loans into performing and nonperforming categories that were previously consolidated within the loan footnote disclosures. The new approach provided a better estimate of potential losses inherent in the substandard portfolio. The change in disclosure did not impa ct the Company's impaired loan information at December 31, 2019 or ALLL information for the year ended December 31, 2019 as presented in Note 4: Loans and Allowance for Loan Losses . Beginning in 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. During 2020, the Company moved “equity securities” from the “available-for-sale securities - taxable” into “other assets.” The equity securities were moved from “available-for-sale securities” to “equity securities” in Note 19: Disclosure about Fair Value of Financial Instruments |
Operating Segments | Operating Segments An operating segment is a component of an entity that has separate financial information related to its business activities and is reviewed by the chief operating decision maker on a regular basis to allocate resources and assess performance. The Company identifies the following markets as operating segments: (i) Kansas City, Missouri and Leawood, Kansas; (ii) Wichita, Kansas; (iii) Oklahoma City, Oklahoma; (iv) Tulsa, Oklahoma; (v) Energy bank; and (vi) Dallas and Frisco, Texas. These markets provide similar products and services using a similar process to a similar customer base. Our products and services include, but are not limited to, loans; checking and savings accounts; time deposits and credit cards. Loan products include commercial, real estate, consumer, and Small Business Administration (“SBA”) lending. The regulatory environment is the same for the markets as well. The chief operating decision maker monitors the revenue and costs of the markets; however, operations are managed, including allocation of resources, and financial performance is evaluated on a Company-wide basis. As a result, the markets are aggregated into one reportable segment. |
Cash Equivalents | Cash EquivalentsThe Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2020, cash equivalents consisted primarily of both interest-bearing and noninterest bearing accounts with other banks. Approximately $319 million of the Company’s cash and cash equivalents were held at the Federal Reserve Bank of Kansas City at December 31, 2020. The Company is required to maintain reserve funds in cash and/or on deposit with the Federal Reserve Bank. The reserve required at December 31, 2020 was $0. In addition, the Company is required from time to time to place cash collateral with a third party as part of its back-to-back swap agreements. |
Securities | Securities Debt securities for which the Company has no immediate plan to sell but which may be sold in the future, are classified as available-for-sale (“AFS”) and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of debt securities are recorded on the trade date and are determined using the specific identification method. Equity securities for which the Company has no immediate plan to sell but which may be sold in the future are recorded at fair value with unrealized gains and losses included in earnings. Gains and losses on the sale of equity securities are recorded on the trade date and are determined using the specific identification method. During the period ended December 31, 2020, the Company received an equity security as part of a restructured loan. The Company elected a measurement alternative for the equity investment since it did not have a readily determinable fair value and did not qualify for the practical expedient to estimate fair value using the net asset value per share. A cost basis was calculated for the equity investment. The recorded balance will adjust for any impairment or adjusted for any observable price changes for an identical or similar investment of the same issuer. The Company routinely conducts periodic reviews to identify and evaluate each investment security to determine whether an OTTI has occurred. For available-for-sale securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive income. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. |
Nonperforming Loans | Nonperforming Loans Nonperforming loans are loans for which we do not accrue interest income. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well secured and in process of collection. A credit is considered well secured if it is secured by collateral in the form of liens or pledges of real or personal property, including securities, that have a realizable value sufficient to discharge the debt (including accrued interest) in full or is secured by the guaranty of a financially responsible party. A debt is in the process of collection if collection of the debt is proceeding in due course either through legal action, including enforcement procedures, or in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to a current status. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual 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 nonaccrual 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. When payments are received on nonaccrual loans, payments are applied to principal unless there is a clear indication that the quality of the loan has improved to the point that it can be placed back on accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the loan balance is not collectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of its ability to collect the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. |
Impaired Loans | 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 or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on an individual loan basis by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral, if the loan is collateral dependent. 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. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Expected terms include lease option periods to the extent that the exercise of such options is reasonably assured. The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 35 - 40 years Leasehold improvements 5 - 15 years Furniture and fixtures 5 - 7 years Equipment 3 - 5 years |
Long-Lived Asset Impairment | Long-Lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. |
Restricted Equity Securities | Restricted Equity Securities Restricted equity securities include investments in FHLB Topeka, Bankers’ Bank of Kansas and Bankers Bank stock. FHLB Topeka is a Federal Home Loan Bank and its stock is a required investment for institutions that are members of the Federal Home Loan System. The required investment in the common stock is based on a predetermined formula. The Bankers’ Bank of Kansas and Bankers Bank are correspondent banks located in Wichita, Kansas and Oklahoma City, Oklahoma, respectively. Each of these investments is carried at cost and evaluated for impairment. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company has purchased life insurance policies on certain key employees that are accounted for under the fair value method. Bank-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value. Changes in cash surrender value are recorded in earnings in the period in which the changes occur. |
Foreclosed Assets Held-for-Sale | Foreclosed Assets Held-for-Sale Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in net income or expenses from foreclosed assets. |
Goodwill | GoodwillGoodwill was evaluated annually for impairment or more frequently if impairment indicators were present. A qualitative assessment was performed to determine whether the existence of events or circumstances led to a determination that it was more likely than not the fair value was less than the carrying amount, including goodwill. If, based on the evaluation, it was determined to be more likely than not that the fair value was less than the carrying value, then goodwill was tested further for impairment. If the implied fair value of goodwill was lower than its carrying amount, a goodwill impairment was indicated and goodwill was written down to its implied fair value. |
Core Deposit Intangible | Core Deposit IntangibleThe core deposit intangible represents the identified intangible asset relating to the deposit relationships acquired in past business combinations. The value of the core deposit intangible is based primarily upon the expected future benefits of earnings capacity attributable to those deposits. |
Related Party Transactions | Related Party TransactionsThe Company extends credit and receives deposits from related parties. In management’s opinion, the loans and deposits were made in the ordinary course of business and made on similar terms as those prevailing at the time with other persons. |
Stock-Based Compensation | Stock-Based CompensationThe Company accounts for all stock-based compensation transactions in accordance with Accounting Standard Codification (“ASC”) 718, Compensation - Stock Compensation, which requires that stock compensation transactions be recognized as compensation expense in the consolidated statement of income and other comprehensive income based on their fair values on the measurement date. The Company recognizes forfeitures as they occur. New shares are issued upon exercise of an award. The Company records permanent tax differences through the income tax provision upon vesting or exercise of a stock-based award. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership; (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: (i) current; and (ii) deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax bases of assets and liabilities and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term, more likely than not, means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. |
Earnings Per Share | Earnings Per Share Basic earnings per share represent net income available to common stockholders divided by the weighted average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential shares that would have been outstanding if dilutive potential common stock had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common stock that may be issued by the Company is determined using the treasury stock method. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments The Company follows the applicable accounting guidance for fair value measurements and disclosures for all applicable financial and nonfinancial assets and liabilities. ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. The Company values financial instruments based upon quoted market prices, where available. If market prices are not available, fair value is based on pricing models that use available information including quoted prices for similar assets or liabilities in active markets, market indicators, and industry and economic events. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities. |
Derivative Financial Instruments | Derivative Financial Instruments ASC 815, Derivatives and Hedging, provides the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (i) how and why an entity uses derivative instruments; (ii) how the entity accounts for derivative instruments and related hedged items; and (iii) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit risk related contingent features in derivative instruments. As required by ASC 815, the Company records all derivatives on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted transactions in a cash flow hedge. In accordance with the Financial Accounting Standards Board's (“FASB”) fair value measurement guidance in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counter-party portfolio. |
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 (TDRs) | Troubled Debt Restructurings (“TDR”) 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 as permitted by the CARES Act. A TDR may also exist if the borrower transfers to the Bank: (i) receivables for third parties; (ii) real estate; (iii) other assets; or (iv) an equity position in the borrower to fully or partially satisfy a loan or the issuance or other granting of an equity position to the Bank to fully or partially satisfy a debt unless the equity position is granted pursuant to existing terms for converting the debt into an equity position. Once an obligation has been restructured, the loan continues to be considered restructured until: (i) the obligation is paid in full or (ii) the borrower is in compliance with its modified terms for at least 12 consecutive months, the loan has a market rate, and the borrower could obtain similar terms from another bank. When a loan undergoes a TDR, the determination of whether the loan would remain on accrual status depends on several factors including: (i) the accrual status prior to the restructuring; (ii) the borrower’s demonstrated performance under the previous terms; and (iii) the Bank’s credit evaluation of the borrower’s capacity to continue to perform under the restructured terms. Loans identified as TDRs are evaluated for impairment using the present value of the expected cash flows or the estimated fair value of the collateral if the loan is collateral dependent. The fair value is determined, when possible, by an appraisal of the property less estimated costs related to liquidation of the collateral. The appraisal amount may also be adjusted for current market conditions. Adjustments to reflect the present value of the expected cash flows or the estimated fair value of collateral dependent loans are a component in determining an appropriate allowance, and as such, may result in increases or decreases to the provision for loan losses in current and future earnings. |
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 Chief Credit Officer. Appraisals are reviewed for accuracy and consistency by 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 Chief Credit Officer by comparison to historical results. Foreclosed Assets Held-for-Sale The fair value of foreclosed assets held-for-sale is based on the appraised fair value of the collateral, less estimated cost to sell. |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives | The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 35 - 40 years Leasehold improvements 5 - 15 years Furniture and fixtures 5 - 7 years Equipment 3 - 5 years Major classifications of premises and equipment, stated at cost, are as follows: As of December 31, 2020 2019 (Dollars in thousands) Land $ 7,384 $ 7,384 Building and improvements 62,331 59,500 Construction in progress 95 524 Furniture and fixtures 14,073 12,851 Equipment 9,587 9,158 93,470 89,417 Less: accumulated depreciation 22,961 19,207 Premises and equipment, net $ 70,509 $ 70,210 |
Schedule of Recent Accounting Pronouncements, Adopted Accounting Guidance and Changes in Accounting Principles | The following ASUs represent changes to current accounting guidance that will be adopted in future years: Standard Anticipated Date of Adoption Description Effect on Financial Statements or Other Significant Matters ASU 2020-05 Effective immediately, but included here for information purposes as it relates to the ASU listed in the “description” section. Amended the mandatory effective date for ASU 2016-02 (Leases). No expected impact to the financial statements, but delays certain ASUs for private companies, and EGCs that elected to use the private company effective dates for new or revised accounting standards. ASU 2019-10 Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842): Effective Dates Effective immediately, but included here for informational purposes as it relates to the ASU listed in the “ description” section. Amended the mandatory effective dates for all entities related to: (i) credit losses - ASU 2016-13; (ii) goodwill - ASU 2017-04; (iii) leases - ASU 2016-02; and (iv) hedging - ASU 2017-12 The amended dates were incorporated into the “anticipated date of adoption” section for the appropriate ASU below. No expected impact to the financial statements, but delays certain ASUs for private companies, smaller reporting companies and EGCs that elected to use the private company effective dates for new or revised accounting standards. If a company loses its EGC status during the fiscal year, the company would be required to review all ASUs as a PBE and adopt any ASU effective for PBEs as of the first day of that year. ASU 2018-15 Intangibles-Goodwill and Other-Internal-Use Software ASU 2018-15 will be effective for the Company on December 31, 2021. Early adoption is permitted including adoption in any interim period. The amendments will be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal use software. The Company plans to use the guidance on a prospective basis. At this time, an estimate of the impact to the Company’s financial statements is not known, but may increase our intangible asset balance and create an amortization period for costs previously expensed immediately. 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. Requires an entity to utilize a new impairment model known as the current expected credit loss model to estimate its lifetime expected credit loss and record an allowance that, when deducted from 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. The Company completed parallel runs in 2019. During the period ended December 31, 2020, the Company continued to perform parallel runs using 2020 data and continued to recalibrate inputs as necessary. The Company is evaluating the internal control changes that will be necessary to transition to the third-party platform. At this time, an estimate of the impact cannot be established as the Company continues to evaluate the inputs into the model. The actual impact could be significantly affected by the composition, characteristics, and quality of the underlying loan portfolio at the time of adoption. 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 update requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach with the option to elect certain practical expedients. The update will also increase disclosures around leases, including qualitative and specific quantitative measures. The Company expects to apply the update as of the beginning of the period of adoption and the Company does not plan to restate comparative periods. The Company expects to elect certain optional practical expedients. Accounting Guidance Adopted During Fiscal Years 2020, 2019, and 2018 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 December 31, 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. ASU 2018-07: Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting January 2019 Early adoption Expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees, excluding share-based payments used to effectively provide: (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers . The amendments include: (i) grants are measured at grant-date fair value of the equity instruments; (ii) equity-classified nonemployee share-based payment awards are measured at the grant date; (iii) performance based awards are measured based on the probability of satisfying the performance conditions and (iv) in general, non-employee share-based payment awards will continue to be subject to the requirements of ASC 718 unless modified after the good has been delivered, the service has been rendered, any other conditions necessary to earn the right to benefit from the instrument have been satisfied, and the nonemployee is no longer providing goods or services. The Company had 216,960 stock-based awards to non-employees as of the implementation date, including 116,960 performance-based restricted stock units. The adoption of the ASU allowed the Company to: (i) set the fair market value of the non-employee awards as of the adoption date; and (ii) start to expense the performance-based restricted stock units based on the probability of satisfying the performance conditions. In addition, the Company recorded a $306 thousand deferred tax asset that was offset with retained earnings to account for the tax impact. The Company will record forfeitures as they occur and base fair market values on the expected term, like the Company’s accounting for employee-based awards. ASU 2016-01: Financial Instruments-Overall (Subtopic 825-10) January 2019 Required equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. Emphasized the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of practicability exceptions in determining the fair value of loans. The Company transferred $69 thousand from accumulated other comprehensive loss to retained earnings in January 2019. There was no impact to the income statement on the adoption date. ASU 2014-09: Revenue from Contracts with Customers January 2019 Amended guidance related to revenue from contracts with customers. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Replaced nearly all existing revenue recognition guidance, including industry specific guidance, established a new control based revenue recognition model, changed the basis for deciding when revenue is recognized over time or at a point in time, provided new and more detailed guidance on specific topics and expands and improves disclosures about revenue. The accounting update did not materially impact the financial statements or recognition of revenues. ASU 2018-02: Income Statement Reporting Comprehensive Income (Topic 220) February 2018, retrospectively applied to 2017 Allowed a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. The Company recognized a reclassification totaling $1 million related to items in accumulated other comprehensive income. ASU 2017-09: Compensation -Stock Compensation (Topic 718): Scope of Modification Accounting January 2018 Provides guidance about which changes to terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: (i) The fair value does not change as a result of the modification or the modification does not affect any of the inputs to the valuation technique that the entity uses to value the award, the entity is not required to estimate the value immediately before and after the modification; (ii) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified and (iii) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The adoption of ASU 2017-09 did not have a significant impact on the Company’s consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of the Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands, except per share data) Earnings per Share Net income $ 12,601 $ 28,473 $ 19,590 Less: preferred stock dividends — 175 2,100 Net income available to common stockholders $ 12,601 $ 28,298 $ 17,490 Weighted average common shares 52,070,624 47,679,184 36,422,612 Earnings per share $ 0.24 $ 0.59 $ 0.48 Dilutive Earnings Per Share Net income available to common stockholders $ 12,601 $ 28,298 $ 17,490 Weighted average common shares 52,070,624 47,679,184 36,422,612 Effect of dilutive shares 477,923 896,951 1,069,955 Weighted average dilutive common shares 52,548,547 48,576,135 37,492,567 Diluted earnings per share $ 0.24 $ 0.58 $ 0.47 Stock-based awards not included because to do so would be antidilutive 1,014,639 521,659 407,852 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Approximate Fair Values of Available-for-Sale Debt and Equity Securities | The amortized cost and approximate fair values, together with gross unrealized gains and losses, of period end available-for-sale securities consisted of the following: December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale securities Mortgage-backed - GSE residential $ 104,839 $ 4,277 $ — $ 109,116 Collateralized mortgage obligations - GSE residential 52,070 984 42 53,012 State and political subdivisions 454,486 33,642 31 488,097 Corporate bonds 4,259 104 — 4,363 Total available-for-sale securities $ 615,654 $ 39,007 $ 73 $ 654,588 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Approximate Fair Value (Dollars in thousands) Available-for-sale 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 securities $ 717,682 $ 22,377 $ 586 $ 739,473 |
Schedule of Gross Realized Gains and Losses from Sales or Maturities of Available-for-Sale Securities | The following table summarizes the gross realized gains and losses from sales or maturities of AFS securities: For the Year Ended December 31, 2020 Gross Realized Gains (1) Gross Realized Losses Net Realized Gain (Dollars in thousands) Available-for-sale securities $ 1,788 $ 84 $ 1,704 (1) Included $75 thousand related to a previously disclosed OTTI municipal security that was settled in 2020. For the Year Ended December 31, 2019 Gross Realized Gains Gross Realized Losses Net Realized Gain (Dollars in thousands) Available-for-sale securities $ 1,043 $ 56 $ 987 For the Year Ended December 31, 2018 Gross Realized Gains Gross Realized Losses Net Realized Gain (Dollars in thousands) Available-for-sale securities $ 2,083 $ 1,545 $ 538 |
Schedule of Amortized Cost, Fair Value and Weighted Average Yield of Available-for-Sale Debt Securities by Contractual Maturity | The amortized cost, fair value, and weighted average yield of available-for-sale securities by contractual maturity, are shown below: December 31, 2020 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ 48 $ 199 $ 104,592 $ 104,839 Estimated fair value $ — $ 51 $ 212 $ 108,853 $ 109,116 Weighted average yield (2) — % 4.57 % 3.95 % 1.96 % 1.96 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,483 $ 49,587 $ 52,070 Estimated fair value $ — $ — $ 2,721 $ 50,291 $ 53,012 Weighted average yield (2) — % — % 2.77 % 1.02 % 1.11 % State and political subdivisions Amortized cost $ 653 $ 7,661 $ 62,313 $ 383,859 $ 454,486 Estimated fair value $ 657 $ 7,846 $ 67,844 $ 411,750 $ 488,097 Weighted average yield (2) 8.18 % 5.40 % 3.40 % 2.94 % 3.05 % Corporate bonds Amortized cost $ — $ 358 $ 3,901 $ — $ 4,259 Estimated fair value $ — $ 368 $ 3,995 $ — $ 4,363 Weighted average yield (2) — % 4.70 % 4.54 % — % 4.55 % Total available-for-sale securities Amortized cost $ 653 $ 8,067 $ 68,896 $ 538,038 $ 615,654 Estimated fair value $ 657 $ 8,265 $ 74,772 $ 570,894 $ 654,588 Weighted average yield (2) 8.18 % 5.36 % 3.44 % 2.57 % 2.71 % (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. December 31, 2019 Within After One to After Five to After One Year Five Years Ten Years Ten Years Total (Dollars in thousands) Available-for-sale securities Mortgage-backed - GSE residential (1) Amortized cost $ — $ — $ 329 $ 150,708 $ 151,037 Estimated fair value $ — $ — $ 341 $ 152,171 $ 152,512 Weighted average yield (2) — % — % 4.01 % 2.57 % 2.58 % Collateralized mortgage obligations - GSE residential (1) Amortized cost $ — $ — $ 2,527 $ 126,349 $ 128,876 Estimated fair value $ — $ — $ 2,594 $ 126,618 $ 129,212 Weighted average yield (2) — % — % 2.77 % 2.47 % 2.47 % State and political subdivisions Amortized cost $ 523 $ 6,050 $ 51,747 $ 378,128 $ 436,448 Estimated fair value $ 523 $ 6,169 $ 55,001 $ 394,647 $ 456,340 Weighted average yield (2) 9.38 % 5.76 % 3.59 % 3.08 % 3.19 % Corporate bonds Amortized cost $ — $ — $ 1,321 $ — $ 1,321 Estimated fair value $ — $ — $ 1,409 $ — $ 1,409 Weighted average yield (2) — % — % 5.68 % — % 5.68 % Total available-for-sale securities Amortized cost $ 523 $ 6,050 $ 55,924 $ 655,185 $ 717,682 Estimated fair value $ 523 $ 6,169 $ 59,345 $ 673,436 $ 739,473 Weighted average yield (2) 9.38 % 5.76 % 3.60 % 2.85 % 2.94 % (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 Investments' Gross Unrealized Losses, Number of Securities and Fair Value of Investments | The following table shows available-for-sale securities gross unrealized losses, the number of securities that are in an unrealized loss position, and fair value of the Company’s investments with unrealized losses that are not deemed to be OTTI, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2020 and 2019: December 31, 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 Securities Mortgage-backed - GSE residential $ — $ — — $ — $ — — $ — $ — — Collateralized mortgage obligations - GSE residential 9,933 42 5 — — — 9,933 42 5 State and political subdivisions 8,525 31 8 25 — 1 8,550 31 9 Corporate bonds — — — — — — — — — Total temporarily impaired AFS securities $ 18,458 $ 73 13 $ 25 $ — 1 $ 18,483 $ 73 14 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 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 AFS securities $ 78,881 $ 339 21 $ 29,185 $ 247 15 $ 108,066 $ 586 36 |
Schedule of Recorded Fair Value and Gains and Losses on Equity Securities | The following is a summary of the recorded fair value and the unrealized and realized gains and losses recognized in net income on equity securities: For the Year Ended December 31, 2020 2019 (Dollars in thousands) Net gains recognized during the period on equity securities $ 46 $ 62 Less: net gains recognized during the period on equity securities sold during the period — — Unrealized gain recognized during the reporting period on equity securities still held at the reporting date $ 46 $ 62 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Categories of Loans | Categories of loans at December 31, 2020 and 2019 include: As of December 31, 2020 2019 (Dollars in thousands) Commercial $ 1,338,757 $ 1,356,817 Energy 345,233 408,573 Commercial real estate 1,179,534 1,024,041 Construction and land development 563,144 628,418 Residential and multifamily real estate 680,932 398,695 Paycheck Protection Program ("PPP") 292,230 — Consumer 55,270 45,163 Gross loans 4,455,100 3,861,707 Less: Allowance for loan losses 75,295 56,896 Less: Net deferred loan fees and costs 13,203 9,463 Net loans $ 4,366,602 $ 3,795,348 |
Schedule of Activity in Allowance for Loan Losses by Portfolio Segment | The following tables summarize the activity in the allowance for loan losses by portfolio segment and disaggregated based on the Company’s impairment methodology. The allocation in one portfolio segment does not preclude its availability to absorb losses in other segments: As of or For the Year Ended December 31, 2020 Commercial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Provision charged to expense 19,959 16,867 15,853 96 3,700 — 225 56,700 Charged-off (31,205) (5,091) (1,584) — (445) — (104) (38,429) Recoveries 75 — — — 41 — 12 128 Ending balance $ 24,693 $ 18,341 $ 22,354 $ 3,612 $ 5,842 $ — $ 453 $ 75,295 Ending balance Individually evaluated for impairment $ 1,115 $ 3,370 $ 5,048 $ — $ — $ — $ — $ 9,533 Collectively evaluated for impairment $ 23,578 $ 14,971 $ 17,306 $ 3,612 $ 5,842 $ — $ 453 $ 65,762 Allocated to loans Individually evaluated for impairment $ 44,678 $ 26,045 $ 44,318 $ — $ 6,329 $ — $ 244 $ 121,614 Collectively evaluated for impairment $ 1,294,079 $ 319,188 $ 1,135,216 $ 563,144 $ 674,603 $ 292,230 $ 55,026 $ 4,333,486 Ending balance $ 1,338,757 $ 345,233 $ 1,179,534 $ 563,144 $ 680,932 $ 292,230 $ 55,270 $ 4,455,100 As of or For the Year Ended December 31, 2019 Commercial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 Provision charged to expense 27,219 (1,273) 1,771 1,041 1,090 — $ 52 29,900 Charged-off (7,954) (3,000) (441) — (8) — $ (20) (11,423) Recoveries 15 576 — — — — $ 2 593 Ending balance $ 35,864 $ 6,565 $ 8,085 $ 3,516 $ 2,546 $ — $ 320 $ 56,896 Ending balance 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 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 As of or For the Year Ended December 31, 2018 Commercial Energy Commercial Real Estate Construction and Land Development Residential and Multifamily Real Estate PPP Consumer Total (Dollars in thousands) Allowance for loan losses Beginning balance $ 11,378 $ 7,726 $ 4,668 $ 1,200 $ 905 $ — $ 214 $ 26,091 Provision charged to expense 5,720 3,717 2,087 1,275 559 — 142 13,500 Charged-off (976) (1,256) — — — — (71) (2,303) Recoveries 462 75 — — — — 1 538 Ending balance $ 16,584 $ 10,262 $ 6,755 $ 2,475 $ 1,464 $ — $ 286 $ 37,826 |
Schedule of Credit Risk | The following tables present the credit risk profile of the Company’s loan portfolio based on an internal rating category and portfolio segment: As of December 31, 2020 Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) Commercial $ 1,182,519 $ 66,142 $ 63,407 $ 26,124 $ 565 $ — $ 1,338,757 Energy 145,598 90,134 83,574 22,177 3,750 — 345,233 Commercial real estate 1,035,056 67,710 57,680 19,088 — — 1,179,534 Construction and land development 561,871 125 1,148 — — — 563,144 Residential and multifamily real estate 672,327 305 5,199 3,101 — — 680,932 PPP 292,230 — — — — — 292,230 Consumer 55,026 — — 244 — — 55,270 Total $ 3,944,627 $ 224,416 $ 211,008 $ 70,734 $ 4,315 $ — $ 4,455,100 As of December 31, 2019 Pass Special Mention Substandard Substandard Doubtful Loss Total (Dollars in thousands) 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 and multifamily real estate 394,495 1,789 469 1,942 — — 398,695 PPP — — — — — — — Consumer 45,163 — — — — — 45,163 Total $ 3,727,182 $ 47,629 $ 47,221 $ 34,192 $ 5,483 $ — $ 3,861,707 |
Schedule of Loan Portfolio Aging Analysis | The following tables present the Company’s loan portfolio aging analysis of the recorded investment in loans as of December 31, 2020 and 2019: As of December 31, 2020 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) Commercial $ 8,497 $ 264 $ 11,236 $ 19,997 $ 1,318,760 $ 1,338,757 $ — Energy — — 7,173 7,173 338,060 345,233 372 Commercial real estate 63 7,677 4,825 12,565 1,166,969 1,179,534 — Construction and land development — — — — 563,144 563,144 — Residential and multifamily real estate 1,577 — 3,520 5,097 675,835 680,932 652 PPP — — — — 292,230 292,230 — Consumer — — — — 55,270 55,270 — Total $ 10,137 $ 7,941 $ 26,754 $ 44,832 $ 4,410,268 $ 4,455,100 $ 1,024 As of 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) 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 and multifamily real estate 2,347 — 1,919 4,266 394,429 398,695 — PPP — — — — — — — Consumer 2 254 — 256 44,907 45,163 — Total $ 6,292 $ 530 $ 42,012 $ 48,834 $ 3,812,873 $ 3,861,707 $ 4,591 |
Schedule of Impaired Loans | The following tables present loans individually evaluated for impairment, including all restructured and formerly restructured loans, for the periods ended December 31, 2020 and December 31, 2019: As of or For the Year Ended December 31, 2020 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a specific valuation Commercial $ 36,111 $ 50,245 $ — $ 29,591 $ 1,143 Energy 3,864 6,677 — 6,710 53 Commercial real estate 10,079 11,663 — 11,952 390 Construction and land development — — — — — Residential and multifamily real estate 6,329 6,585 — 6,315 145 PPP — — — — — Consumer 244 244 — 250 — Loans with a specific valuation Commercial 8,567 8,567 1,115 8,637 249 Energy 22,181 27,460 3,370 23,823 542 Commercial real estate 34,239 34,239 5,048 27,980 1,035 Construction and land development — — — — — Residential and multifamily real estate — — — — — PPP — — — — — Consumer — — — — — Total Commercial 44,678 58,812 1,115 38,228 1,392 Energy 26,045 34,137 3,370 30,533 595 Commercial real estate 44,318 45,902 5,048 39,932 1,425 Construction and land development — — — — — Residential and multifamily real estate 6,329 6,585 — 6,315 145 PPP — — — — — Consumer 244 244 — 250 — $ 121,614 $ 145,680 $ 9,533 $ 3,557 As of or For the Year Ended December 31, 2019 Recorded Balance Unpaid Principal Balance Specific Allowance Average Investment Impaired Loans Interest Income Recognized (Dollars in thousands) Loans without a specific valuation Commercial $ 35,846 $ 35,846 $ — $ 44,646 $ 1,549 Energy 2,864 2,864 — 4,381 199 Commercial real estate 9,464 9,464 — 12,907 669 Construction and land development — — — — — Residential and multifamily real estate 2,139 2,139 — 2,140 14 PPP — — — — — Consumer — — — — — Loans with a specific valuation Commercial 35,030 40,030 19,942 39,688 460 Energy 6,880 9,880 1,949 10,547 264 Commercial real estate 1,028 1,028 210 1,037 47 Construction and land development — — — — — Residential and multifamily real estate 249 249 197 249 10 PPP — — — — — Consumer — — — — — Total Commercial 70,876 75,876 19,942 84,334 2,009 Energy 9,744 12,744 1,949 14,928 463 Commercial real estate 10,492 10,492 210 13,944 716 Construction and land development — — — — — Residential and multifamily real estate 2,388 2,388 197 2,389 24 PPP — — — — — Consumer — — — — — $ 93,500 $ 101,500 $ 22,298 $ 3,212 |
Schedule of Nonaccrual Loans | The following table presents the Company’s non-accrual loans by loan category at December 31, 2020 and 2019: As of December 31, 2020 2019 (Dollars in thousands) Commercial $ 26,691 $ 32,130 Energy 25,927 4,540 Commercial real estate 19,088 1,063 Construction and land development — — Residential and multifamily real estate 3,101 1,942 PPP — — Consumer 244 — Total nonaccrual loans $ 75,051 $ 39,675 |
Schedule of Loans Restructured | The table below presents loans restructured during the years ended December 31, 2020 and 2019, including the post-modification outstanding balance and the type of concession made: For the Year Ended December 31, 2020 2019 (Dollars in thousands) Commercial - Debt forgiveness $ 17,297 $ — - Reduction of monthly payment 1,224 994 - Extension of maturity date — 30,005 - Interest rate reduction 3,171 — Energy - Reduction of monthly payment 7,825 — - Extension of maturity date 2,340 — Commercial real estate - Deferred payment 21,210 — - Reduction of monthly payment — 3,767 Total troubled debt restructurings $ 53,067 $ 34,766 The balance of restructured loans and the balance of those loans that are in default at any time during the past 12 months at December 31, 2020 and 2019 is provided below: For the Year Ended December 31, 2020 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 7 $ 22,759 $ 2,776 7 $ 31,770 $ 831 Energy 4 11,053 2,713 2 2,864 — Commercial real estate 4 26,038 — 3 4,909 — Construction and land development — — — — — — Residential and multifamily real estate 2 3,245 — — — — PPP — — — — — — Consumer — — — — — — Total troubled debt restructured loans 17 $ 63,095 $ 5,489 12 $ 39,543 $ 831 (1) Default is considered to mean 90 days or more past due as to interest or principal. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Major Classifications of Premises and Equipment | The estimated useful lives for each major depreciable classification of premises and equipment are as follows: Buildings and improvements 35 - 40 years Leasehold improvements 5 - 15 years Furniture and fixtures 5 - 7 years Equipment 3 - 5 years Major classifications of premises and equipment, stated at cost, are as follows: As of December 31, 2020 2019 (Dollars in thousands) Land $ 7,384 $ 7,384 Building and improvements 62,331 59,500 Construction in progress 95 524 Furniture and fixtures 14,073 12,851 Equipment 9,587 9,158 93,470 89,417 Less: accumulated depreciation 22,961 19,207 Premises and equipment, net $ 70,509 $ 70,210 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangible (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Goodwill and Core Deposit Intangible | The change in goodwill and core deposit intangible during the years ended December 31, 2020 and 2019 were: Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount (Dollars in thousands) December 31, 2020 Goodwill $ 7,397 $ — $ 7,397 $ — Core deposit intangible 1,014 806 — 208 Total goodwill and intangible assets $ 8,411 $ 806 $ 7,397 $ 208 December 31, 2019 Goodwill $ 7,397 $ — $ — $ 7,397 Core deposit intangible 1,014 717 — 297 Total goodwill and intangible assets $ 8,411 $ 717 $ — $ 7,694 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Derivatives | As of December 31, 2020 and 2019, the Company had the following outstanding derivatives that were not designated as hedges in qualifying hedging relationships: December 31, 2020 December 31, 2019 Product Number of Instruments Notional Amount Number of Instruments Notional Amount (Dollars in thousands) Back-to-back swaps 56 $ 515,567 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 December 31, 2020 and 2019: Asset Derivatives Liability Derivatives Balance Sheet As of December 31, Balance Sheet As of December 31, Location 2020 2019 Location 2020 2019 (Dollars in thousands) Derivatives not designated as hedging instruments Interest rate products Other assets $24,094 $9,838 Other liabilities $ 24,454 $ 9,907 |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Borrowings | The following table summarizes borrowings at December 31, 2020 and 2019: As of and For the Year Ended December 31, 2020 2019 (Dollars in thousands) Balance Rate (6) Maximum Balance at Any End of Month Balance Rate (6) Maximum Balance at Any End of Month Repurchase agreements (1) $ 2,306 0.15% $ 57,259 $ 14,921 1.00% $ 72,048 Federal funds purchased (2) — NA 30,000 — NA 25,000 FHLB advances (3) 293,100 1.78 450,659 358,743 1.84 358,743 FHLB line of credit (3) — NA 20,000 — NA 30,000 Federal Reserve Borrowing (4) — NA 15,000 — NA — Trust preferred security (5) 963 1.96% $ 963 921 3.63% $ 921 Total borrowings $ 296,369 $ 374,585 (1) Repurchase agreements consist of Bank obligations to other parties payable on demand and generally have one day maturities. The obligations are collateralized by securities of U.S. government sponsored enterprises and mortgage-backed securities and such collateral is held by a third-party custodian. The year-to-date average daily balance was $32 million and $44 million for the years ended December 31, 2020 and 2019, respectively. The securities, mortgage-backed government sponsored residential securities, pledged for customer repurchase agreements were $6 million and $37 million at December 31, 2020 and 2019, respectively. (2) Federal funds purchased include short-term funds that are borrowed from another bank. The Bank is part of a third-party service that allows us to borrow amounts from another bank if the bank has approved us for credit. Federal funds purchased generally have one day maturities. (3) FHLB advances and line of credit are collateralized by a blanket floating lien on certain loans, as well as, unrestricted securities. FHLB advances are at a fixed rate, ranging from 0.37% to 2.88% and are subject to restrictions or penalties in the event of prepayment. The FHLB line of credit has a variable interest rate that reprices daily based on FHLB’s cost of funds and matur es on May 14, 2021. (4) Federal Reserve borrowings are collateralized by certain available-for-sale securities and certain loans. The Federal Reserve discount window advance rates are variable and based on an established discount rate determined by the Reserve Banks’ board of directors, subject to review and determination by the Board of Governors. The borrowings typically mature in 90 days. (5) On June 30, 2010, the Company assumed a liability with a fair value of $1 million related to the assumption of trust preferred securities issued by Leawood Bancshares Statutory Trust I for $4 million on September 30, 2005. In 2012, the Company settled litigation related to the trust preferred securities which decreased the principal balance by $1.5 million and the recorded balance by approximately $400 thousand. The difference between the recorded amount and the contract value of $2.5 million is being accreted to the maturity date in 2035. Distributions will be paid on each security at a variable annual rate of interest, equal to LIBOR, plus 1.74%. (6) Represents the year-end weighted average interest rate. |
Schedule of Other Borrowing Capacities | The following table summarizes the Company’s other borrowing capacities at December 31, 2020 and 2019: As of December 31, 2020 2019 (Dollars in thousands) FHLB borrowing capacity relating to loans $ 518,191 $ 490,218 FHLB borrowing capacity relating to securities — — Total FHLB borrowing capacity $ 518,191 $ 490,218 Unused Federal Reserve borrowing capacity $ 435,805 $ 287,857 |
Schedule of Scheduled Maturities for Borrowings | The scheduled maturities, excluding interest, of the Company’s borrowings at December 31, 2020 were as follows: As of December 31, 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 $ 867,927 $ 114,963 $ 44,392 $ 15,501 $ 699 $ — $ 1,043,482 Fed funds purchased & repurchase agreements 2,306 — — — — — 2,306 FHLB borrowings 16,500 21,500 35,000 — 5,100 215,000 293,100 Trust preferred securities (1) — — — — — 963 963 Total $ 886,733 $ 136,463 $ 79,392 $ 15,501 $ 5,799 $ 215,963 $ 1,339,851 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes includes these components: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Taxes currently payable (receivable) $ 7,970 $ 7,624 $ (2,155) Deferred income tax liability (5,257) (3,486) (239) Income tax expense (benefit) $ 2,713 $ 4,138 $ (2,394) |
Schedule of the Reconciliation of Income Tax Expense (Benefit) | An income tax reconciliation at the statutory rate to the Company’s actual income tax expense (benefit) is shown below: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Computed at the statutory rate (21%) $ 3,216 $ 6,848 $ 3,611 Increase (decrease) resulting from Tax-exempt income (3,109) (2,913) (3,508) Nondeductible expenses 194 356 380 State tax credit — (1,361) (3,129) State income tax expense (benefit) 679 1,288 687 Equity-based compensation 179 (88) (445) Goodwill impairment 1,553 — — Other adjustments 1 8 10 Actual tax expense (benefit) $ 2,713 $ 4,138 $ (2,394) |
Schedule of Tax Effects of Temporary Differences Related to Deferred Taxes | The tax effects of temporary differences related to deferred taxes shown on the consolidated balance sheets within other assets are presented below: As of December 31, December 31, 2020 December 31, 2019 (Dollars in thousands) Deferred tax assets Allowance for loan losses $ 18,124 $ 13,928 Lease incentive 564 294 Impairment of available-for-sale securities — 493 Loan fees 3,178 2,317 Accrued expenses 2,128 2,131 Deferred compensation 2,474 2,444 State tax credit 2,621 3,287 Other 946 420 Total deferred tax asset 30,035 25,314 Deferred tax liability Net unrealized gain on securities available-for-sale (9,531) (5,339) FHLB stock basis (1,209) (996) Premises and equipment (2,881) (3,620) Other (1,601) (1,577) Total deferred tax liability (15,222) (11,532) Net deferred tax asset $ 14,813 $ 13,782 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Amounts Reclassified from AOCI | Amounts reclassified from accumulated other comprehensive income (“AOCI”) and the affected line items in the consolidated statements of income were as follows: For the Year Ended December 31, Affected Line Item in the 2020 2019 2018 Statements of Income (Dollars in thousands) Unrealized gains on available-for-sale securities $ 1,704 $ 987 $ 538 Gain on sale of available-for-sale debt securities Less: tax effect 415 242 132 Income tax expense Net reclassified amount $ 1,289 $ 745 $ 406 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Banking Regulation, Risk-Based Information [Abstract] | |
Schedule of Actual Capital Amounts and Ratios | The Company’s and the Bank’s actual capital amounts and ratios as of December 31, 2020 and 2019 are presented in the following table Actual Minimum Capital Required - Basel III Required to be Considered Well Capitalized Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2020 Total Capital to Risk-Weighted Assets Consolidated $ 656,806 13.1 % $ 527,486 10.5 % N/A N/A Bank 611,533 12.2 527,217 10.5 $ 502,111 10.0 % Tier I Capital to Risk-Weighted Assets Consolidated 593,865 11.8 427,012 8.5 N/A N/A Bank 548,615 10.9 426,794 8.5 401,689 8.0 Common Equity Tier 1 to Risk-Weighted Assets Consolidated 592,902 11.8 351,657 7.0 N/A N/A Bank 548,615 10.9 351,478 7.0 326,372 6.5 Tier I Capital to Average Assets Consolidated 593,865 10.8 219,550 4.0 N/A N/A Bank $ 548,615 10.0 % $ 219,441 4.0 % $ 274,302 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 12.1 191,093 4.0 N/A N/A Bank $ 524,704 11.0 % $ 191,170 4.0 % $ 238,963 5.0 % |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Non-Interest Income | The following table disaggregates the noninterest income subject to ASU 2014-09 by category: For the Year Ended December 31, 2020 2019 (Dollars in thousands) Noninterest income subject to ASU 2014-09 Service charges and fees (rebates) on customer accounts $ 2,803 $ 604 ATM and credit card interchange income 4,379 1,785 International fees 1,091 716 Other fees 87 122 Total noninterest income from contracts with customers 8,360 3,227 Noninterest income not subject to ASU 2014-09 Other noninterest income 3,373 5,480 Total noninterest income $ 11,733 $ 8,707 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation | The table below summarizes stock-based compensation for the years ended December 31, 2020, 2019, and 2018: For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Stock appreciation rights $ 994 $ 1,243 $ 1,457 Performance-based stock awards 249 271 578 Restricted stock awards 3,078 3,174 2,404 Employee stock purchase plan 42 36 165 Total stock-based compensation $ 4,363 $ 4,724 $ 4,604 |
Schedule of Assumptions Used in the Black-Scholes Valuation Model for SSARs | The following table provides the range of assumptions used in the Black-Scholes valuation model, the weighted average grant date fair value, and information related to SSARs exercised for the following years, as well as, the remaining compensation cost to be recognized and period over which the amount will be recognized as of the dates indicated: For the Year Ended December 31, 2020 2019 (1) 2018 (Dollars in thousands, except per share data) Assumptions: Expected volatility 20.34% 24.63% - 33.63% 25.69% - 42.99% Expected dividends 0.00% 0.00% 0.00% Expected term (in years) 6.00 4.24 - 7.00 4.00 - 9.50 Risk-free rate 0.38% 1.45% - 2.55% 2.50% - 2.94% Weighted average grant date fair value per share $1.93 $5.43 $4.68 Aggregate intrinsic value of SSARs exercised $571 $493 $2,214 Total fair value of SSARs vested during the year $1,245 $1,171 $1,710 Unrecognized compensation information: Unrecognized compensation cost $1,737 $2,904 $3,730 Period remaining (in years) 3.3 3.9 3.9 (1) The Black-Scholes inputs include a revaluation of a nonemployee SSAR upon adoption of ASU 2018-07, as well as, SSARs granted during the period. |
Summary of SSAR activity | A summary of SSAR activity during and as of December 31, 2020 is presented below: Stock Settled Appreciation Rights Units Weighted Average Exercise Price Weighted Average Remaining Contractual Term Outstanding, January 1, 2020 1,772,652 $ 10.31 9.20 Granted 25,907 9.35 9.42 Exercised (140,354) 5.94 Forfeited or expired (68,530) 9.14 Outstanding, December 31, 2020 1,589,675 $ 10.73 8.45 Exercisable, December 31, 2020 991,130 $ 9.59 8.14 |
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 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 (1,900) 13.55 Unvested, December 31, 2020 231,631 $ 10.51 |
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 (231,845) 15.37 Forfeited (33,015) 14.62 Unvested, December 31, 2020 369,217 $ 12.61 |
Schedule of Assumptions Using the Black-Scholes Valuation Model for ESPPs | The calculated value of each unit award is estimated at the start of the offering period using a Black-Scholes option valuation model that used the assumptions noted in the following table: For the Year Ended December 31, 2020 2019 2018 Assumptions: Expected volatility 22.50% 7.60% 7.60% Expected dividends 0.00% 0.00% 0.00% Expected term (in years) 0.50 1 1 Risk-free rate 0.17% 2.09% 2.09% |
Schedule of Events and the Impact to Equity Based Compensation | Due to the number of events that occurred in 2018, a table of events and the impact to equity based compensation is provided below followed by additional detail under the table: Change Change in in Number of Event Event Cumulative Awards Issued / Additional Date Type Expense Exercised Notes (Dollars in thousands) January 2018 EIP Modification: from performance awards to time-vested awards $ 1,294 None Awards were exchanged at “Target” representing 100% of the original award. 282,192 PBSAs were forfeited and replaced with 282,192 RSUs. May 2018 Chairman Emeritus Agreement: SSAR and RSU vesting was accelerated $ 1,124 201,334 SSARs were exercised and 74,280 RSUs vested 101,178 common shares were issued. October 2018 New Plan Approved: Existing awards were canceled and regranted under the Omnibus Plan as agreed with certain participants. – SSARs None None 1,595,430 SSARs were forfeited and regranted under the Omnibus Plan – RSUs None None 298,254 RSUs were forfeited and regranted under the Omnibus Plan – PBSAs None None 159,384 PBSAs were forfeited and regranted under the Omnibus Plan December 2018 Stock Split: 2-for-1 Stock Split occurred None All awards, excluding 100,000 SSARs were split All awards, other than the noted SSARs, were retroactively adjusted for all periods presented to reflect the 2-for-1 split |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Rental Expense | The Company has various, non-cancellable operating leases for office space in its respective markets. Three operating leases included tenant improvement allowances. In accordance with ASC 840, the Company is amortizing the benefit through occupancy expense over the expected life of the lease. Rent expense for the periods presented was as follows: Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Rental Expense $ 2,871 $ 2,526 $ 3,323 |
Schedule of Future Minimum Lease Payments Under Operating Leases | Future minimum lease payments under operating leases were as follows: (Dollars in thousands) 2021 $ 2,837 2022 2,910 2023 2,956 2024 2,621 2025 2,627 Thereafter $ 16,716 |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements on a 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 December 31, 2020 and 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 7: Derivatives |
Schedule of Fair Value Measurement of Assets on a Nonrecurring Basis | The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall: December 31, 2020 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs (Dollars in thousands) Collateral-dependent impaired loans $ 55,454 $ — $ — $ 55,454 Foreclosed assets held-for-sale $ 2,347 $ — $ — $ 2,347 December 31, 2019 Fair Value Measurements Using Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Unobservable Inputs (Dollars in thousands) Collateral-dependent impaired loans $ 20,889 $ — $ — $ 20,889 |
Schedule of Nonrecurring Level 3 Fair Value Measurements | The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements at December 31, 2020 and 2019: As of December 31, 2020 Fair Value Valuation Techniques Unobservable Inputs Range (Dollars in thousands) Collateral dependent impaired loans $ 55,454 Market comparable properties Marketability discount 1% - 98% (24%) Foreclosed assets held-for-sale $ 2,347 Market comparable properties Marketability discount 7% - 10% 9% As of 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%) |
Schedule of Estimated Fair Value of Financial Instruments | The following tables present the estimated fair values of the Company’s financial instruments at December 31, 2020 and 2019: December 31, 2020 Carrying Fair Value Measurements Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial Assets Cash and cash equivalents $ 408,810 $ 408,810 $ — $ — $ 408,810 Available-for-sale securities 654,588 — 654,588 — 654,588 Loans, net of allowance for loan losses 4,366,602 — — 4,351,970 4,351,970 Restricted equity securities 15,543 — — 15,543 15,543 Interest receivable 17,236 — 17,236 — 17,236 Equity securities 13,436 — 2,247 11,189 13,436 Derivative assets 24,094 — 24,094 — 24,094 Total $ 5,500,309 $ 408,810 $ 698,165 $ 4,378,702 $ 5,485,677 Financial Liabilities Deposits $ 4,694,740 $ 718,459 $ — $ 4,015,792 $ 4,734,251 Federal funds purchased and repurchase agreements 2,306 — 2,306 — 2,306 Federal Home Loan Bank advances 293,100 — 309,020 — 309,020 Other borrowings 963 — 2,024 — 2,024 Interest payable 2,163 — 2,163 — 2,163 Derivative liabilities 24,454 — 24,454 — 24,454 Total $ 5,017,726 $ 718,459 $ 339,967 $ 4,015,792 $ 5,074,218 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 739,473 — 739,473 — 739,473 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 Equity security 2,161 — 2,161 — 2,161 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) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Commitments | The Company had the following commitments at December 31, 2020 and 2019: December 31, 2020 December 31, 2019 (Dollars in thousands) Commitments to originate loans $ 99,596 $ 134,652 Standby letters of credit 48,607 39,035 Lines of credit 1,423,038 1,351,873 Future lease commitments — 20,935 Total $ 1,571,241 $ 1,546,495 |
Parent Company Condensed Fina_2
Parent Company Condensed Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | The following are the condensed financial statements of CrossFirst Bankshares, Inc. (Parent only) for the periods indicated: Condensed Balance Sheets Year Ended December 31, 2020 2019 (Dollars in thousands) Assets Investment in consolidated subsidiaries Banks $ 580,162 $ 551,084 Nonbanks — 870 Cash 46,676 52,478 Other assets 1,756 1,364 Total assets $ 628,594 $ 605,796 Liabilities and stockholders’ equity Trust preferred securities, net $ 963 $ 921 Other liabilities 3,203 3,231 Total liabilities 4,166 4,152 Stockholders’ equity Common stock 523 520 Treasury stock at cost (6,061) — Additional paid-in capital 522,911 519,870 Retained earnings 77,652 64,803 Accumulated other comprehensive income 29,403 16,451 Total stockholders’ equity 624,428 601,644 Total liabilities and stockholders’ equity $ 628,594 $ 605,796 |
Condensed Statements of Income | Condensed Statements of Income For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Income Earnings of consolidated subsidiaries $ 13,682 $ 28,814 $ 24,330 Management fees charged to subsidiaries 8,520 7,500 6,000 Other (18) (4) 3 Total income 22,184 36,310 30,333 Expense Salaries and employee benefits 5,143 4,584 8,139 Occupancy, net 405 275 368 Other 4,220 3,044 3,734 Total expense 9,768 7,903 12,241 Income tax benefit (185) (66) (1,498) Net income $ 12,601 $ 28,473 $ 19,590 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the Year Ended December 31, 2020 2019 2018 (Dollars in thousands) Operating Activities Net income $ 12,601 $ 28,473 $ 19,590 Items not requiring (providing) cash Earnings of consolidated subsidiaries (13,682) (28,814) (24,330) Share-based incentive compensation 1,917 1,974 2,224 Other adjustments (412) 5,343 1,367 Net cash provided by (used in) operating activities 424 6,976 (1,149) Investing Activities Decrease (increase) in investment in subsidiaries 870 (49,825) (157,900) Net cash provided by (used in) investing activities 870 (49,825) (157,900) Financing Activities Redemption of preferred stock — (30,000) — Dividends paid on preferred stock — (700) (2,100) Issuance of common stock, net 3 88,324 203,848 Common stock purchased and retired — (155) (11,024) Open market common share repurchases (6,061) — — Acquisition of common stock for tax withholding obligations (1,236) (245) (2,132) Proceeds from employee stock purchase plan 151 547 367 Net decrease in employee receivables 47 117 71 Net cash provided by (used in) financing activities (7,096) 57,888 189,030 Increase (decrease) in cash (5,802) 15,039 29,981 Cash at beginning of year 52,478 37,439 7,458 Cash at end of year $ 46,676 $ 52,478 $ 37,439 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies - Narrative (Details) $ / shares in Units, $ in Thousands | Sep. 17, 2019USD ($)$ / sharesshares | Aug. 19, 2019USD ($)$ / sharesshares | Dec. 21, 2018 | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2019USD ($)shares | ||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Stock split ratio | 2 | 2 | ||||||||
Number of reportable segments | segment | 1 | |||||||||
Cash and cash equivalents held at bank | $ 319,000 | |||||||||
Required reserve | 0 | |||||||||
Cash collateral | 32,000 | |||||||||
Cash in excess of federally insured limits | 44,000 | |||||||||
Cumulative effect adjustment | $ 490,336 | 624,428 | $ 287,147 | $ 601,644 | ||||||
Deferred tax assets | 14,813 | 13,782 | ||||||||
Retained earnings | 77,652 | 64,803 | ||||||||
Reclassification of stranded tax effects due to Tax Cuts and Jobs Act | 1,000 | |||||||||
Affiliated Entity | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Related party loans | 16,000 | 16,000 | ||||||||
Deposits from related parties | 55,000 | 66,000 | ||||||||
IPO | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Shares sold and issued (in shares) | shares | 5,750,000 | |||||||||
Price of stock per share (in dollars per share) | $ / shares | $ 14.50 | |||||||||
Total proceeds on sale of stock | $ 76,000 | |||||||||
Stockholders Public Offering | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Shares sold and issued (in shares) | shares | 1,261,589 | |||||||||
Price of stock per share (in dollars per share) | $ / shares | $ 14.50 | |||||||||
Underwriters' Overallotment Option | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Shares sold and issued (in shares) | shares | 844,362 | 844,362 | ||||||||
Price of stock per share (in dollars per share) | $ / shares | $ 14.50 | $ 14.50 | ||||||||
Total proceeds on sale of stock | $ 11,000 | |||||||||
Accounting Standards Update 2018-07 | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Deferred tax assets | $ 306 | |||||||||
Retained earnings | $ 306 | |||||||||
Accounting Standards Update 2018-07 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | 306 | |||||||||
Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | 0 | |||||||||
Non-employees | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Outstanding awards (in shares) | shares | 216,960 | |||||||||
Non-employees | Performance Based Restricted Stock Units | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Outstanding awards (in shares) | shares | 116,960 | |||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | (3,010) | 29,403 | 7,026 | 16,451 | ||||||
Accumulated Other Comprehensive Income (Loss) | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | 69 | $ 69 | ||||||||
Retained Earnings | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | [1] | 38,371 | 77,652 | 23,694 | 64,803 | |||||
Retained Earnings | Accounting Standards Update 2018-07 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | (1,853) | [1] | (2,000) | |||||||
Retained Earnings | Accounting Standards Update 2016-01 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | (69) | [1] | (69) | |||||||
Additional Paid-in Capital | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | 454,512 | 522,911 | $ 256,108 | $ 519,870 | ||||||
Additional Paid-in Capital | Accounting Standards Update 2018-07 | Cumulative Effect, Period of Adoption, Adjustment | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Cumulative effect adjustment | $ 2,159 | $ 2,000 | ||||||||
LIBOR | ||||||||||
Subsidiary, Sale of Stock [Line Items] | ||||||||||
Loans tied to LIBOR | $ 1,000,000 | |||||||||
[1] | (1) Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018. |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies - Property Plant Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Building and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 35 years |
Building and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 40 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 15 years |
Furniture and fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 7 years |
Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 3 years |
Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | 5 years |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings per Share | |||
Net income | $ 12,601 | $ 28,473 | $ 19,590 |
Less: preferred stock dividends | 0 | 175 | 2,100 |
Net income available to common stockholders | $ 12,601 | $ 28,298 | $ 17,490 |
Weighted average common shares (in shares) | 52,070,624 | 47,679,184 | 36,422,612 |
Earnings per share (in dollars per share) | $ 0.24 | $ 0.59 | $ 0.48 |
Dilutive Earnings Per Share | |||
Net income available to common stockholders | $ 12,601 | $ 28,298 | $ 17,490 |
Weighted average common shares (in shares) | 52,070,624 | 47,679,184 | 36,422,612 |
Effect of dilutive shares (in shares) | 477,923 | 896,951 | 1,069,955 |
Weighted average dilutive common shares (in shares) | 52,548,547 | 48,576,135 | 37,492,567 |
Diluted earnings per share (in dollars per share) | $ 0.24 | $ 0.58 | $ 0.47 |
Stock-based awards not included because to do so would be antidilutive (in shares) | 1,014,639 | 521,659 | 407,852 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||
Amortized Cost | $ 615,654 | $ 717,682 |
Gross Unrealized Gains | 39,007 | 22,377 |
Gross Unrealized Losses | 73 | 586 |
Approximate Fair Value | 654,588 | 739,473 |
Mortgage-backed - GSE residential | ||
Available-for-sale securities | ||
Amortized Cost | 104,839 | 151,037 |
Gross Unrealized Gains | 4,277 | 1,668 |
Gross Unrealized Losses | 0 | 193 |
Approximate Fair Value | 109,116 | 152,512 |
Collateralized mortgage obligations - GSE residential | ||
Available-for-sale securities | ||
Amortized Cost | 52,070 | 128,876 |
Gross Unrealized Gains | 984 | 625 |
Gross Unrealized Losses | 42 | 289 |
Approximate Fair Value | 53,012 | 129,212 |
State and political subdivisions | ||
Available-for-sale securities | ||
Amortized Cost | 454,486 | 436,448 |
Gross Unrealized Gains | 33,642 | 19,996 |
Gross Unrealized Losses | 31 | 104 |
Approximate Fair Value | 488,097 | 456,340 |
Corporate bonds | ||
Available-for-sale securities | ||
Amortized Cost | 4,259 | 1,321 |
Gross Unrealized Gains | 104 | 88 |
Gross Unrealized Losses | 0 | 0 |
Approximate Fair Value | $ 4,363 | $ 1,409 |
Securities - Available-for-sale
Securities - Available-for-sale Securities Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments, Debt and Equity Securities [Abstract] | ||
Securities pledged as collateral | $ 16 | $ 41 |
Securities - Gross Realized Gai
Securities - Gross Realized Gains and Losses from Sales or Maturities of Available-for-Sale Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
AFS debt securities, gross realized gains | $ 1,788,000 | $ 1,043,000 | $ 2,083,000 |
AFS debt securities, gross realized losses | 84,000 | 56,000 | 1,545,000 |
AFS debt securities, net realized gain | 1,704,000 | $ 987,000 | $ 538,000 |
Gross realized gains on available-for-sale securities included an other-than-temporary impaired municipal security settled in 2020 | $ 75,000 |
Securities - Amortized Cost, Fa
Securities - Amortized Cost, Fair Value and Weighted Average Yield by Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Within one year | $ 653 | $ 523 |
After one to five years | 8,067 | 6,050 |
After five to ten years | 68,896 | 55,924 |
After ten years | 538,038 | 655,185 |
Amortized Cost | 615,654 | 717,682 |
Estimated fair value | ||
Within one year | 657 | 523 |
After one to five years | 8,265 | 6,169 |
After five to ten years | 74,772 | 59,345 |
After ten years | 570,894 | 673,436 |
Total | $ 654,588 | $ 739,473 |
Weighted average yield | ||
Within one year | 8.18% | 9.38% |
After one to five years | 5.36% | 5.76% |
After five to ten years | 3.44% | 3.60% |
After ten years | 2.57% | 2.85% |
Total | 2.71% | 2.94% |
Mortgage-backed - GSE residential | ||
Amortized cost | ||
Within one year | $ 0 | $ 0 |
After one to five years | 48 | 0 |
After five to ten years | 199 | 329 |
After ten years | 104,592 | 150,708 |
Amortized Cost | 104,839 | 151,037 |
Estimated fair value | ||
Within one year | 0 | 0 |
After one to five years | 51 | 0 |
After five to ten years | 212 | 341 |
After ten years | 108,853 | 152,171 |
Total | $ 109,116 | $ 152,512 |
Weighted average yield | ||
Within one year | 0.00% | 0.00% |
After one to five years | 4.57% | 0.00% |
After five to ten years | 3.95% | 4.01% |
After ten years | 1.96% | 2.57% |
Total | 1.96% | 2.58% |
Collateralized mortgage obligations - GSE residential | ||
Amortized cost | ||
Within one year | $ 0 | $ 0 |
After one to five years | 0 | 0 |
After five to ten years | 2,483 | 2,527 |
After ten years | 49,587 | 126,349 |
Amortized Cost | 52,070 | 128,876 |
Estimated fair value | ||
Within one year | 0 | 0 |
After one to five years | 0 | 0 |
After five to ten years | 2,721 | 2,594 |
After ten years | 50,291 | 126,618 |
Total | $ 53,012 | $ 129,212 |
Weighted average yield | ||
Within one year | 0.00% | 0.00% |
After one to five years | 0.00% | 0.00% |
After five to ten years | 2.77% | 2.77% |
After ten years | 1.02% | 2.47% |
Total | 1.11% | 2.47% |
State and political subdivisions | ||
Amortized cost | ||
Within one year | $ 653 | $ 523 |
After one to five years | 7,661 | 6,050 |
After five to ten years | 62,313 | 51,747 |
After ten years | 383,859 | 378,128 |
Amortized Cost | 454,486 | 436,448 |
Estimated fair value | ||
Within one year | 657 | 523 |
After one to five years | 7,846 | 6,169 |
After five to ten years | 67,844 | 55,001 |
After ten years | 411,750 | 394,647 |
Total | $ 488,097 | $ 456,340 |
Weighted average yield | ||
Within one year | 8.18% | 9.38% |
After one to five years | 5.40% | 5.76% |
After five to ten years | 3.40% | 3.59% |
After ten years | 2.94% | 3.08% |
Total | 3.05% | 3.19% |
Corporate bonds | ||
Amortized cost | ||
Within one year | $ 0 | $ 0 |
After one to five years | 358 | 0 |
After five to ten years | 3,901 | 1,321 |
After ten years | 0 | 0 |
Amortized Cost | 4,259 | 1,321 |
Estimated fair value | ||
Within one year | 0 | 0 |
After one to five years | 368 | 0 |
After five to ten years | 3,995 | 1,409 |
After ten years | 0 | 0 |
Total | $ 4,363 | $ 1,409 |
Weighted average yield | ||
Within one year | 0.00% | 0.00% |
After one to five years | 4.70% | 0.00% |
After five to ten years | 4.54% | 5.68% |
After ten years | 0.00% | 0.00% |
Total | 4.55% | 5.68% |
Securities - Gross Unrealized L
Securities - Gross Unrealized Losses Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Debt securities at an amount less than historical cost | $ 18,483 | $ 108,066 |
Unrealized Loss Position | Available-for-sale Investment Portfolio | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Debt securities at an amount less than historical cost, percentage | 3.00% | 15.00% |
Securities - Gross Unrealized_2
Securities - Gross Unrealized Losses (Details) $ in Thousands | Dec. 31, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Less than 12 Months | ||
Fair Value | $ 18,458 | $ 78,881 |
Unrealized Losses | $ 73 | $ 339 |
Number of Securities | security | 13 | 21 |
12 Months or More | ||
Fair Value | $ 25 | $ 29,185 |
Unrealized Losses | $ 0 | $ 247 |
Number of Securities | security | 1 | 15 |
Total | ||
Fair Value | $ 18,483 | $ 108,066 |
Unrealized Losses | $ 73 | $ 586 |
Number of Securities | security | 14 | 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 | $ 9,933 | $ 48,980 |
Unrealized Losses | $ 42 | $ 199 |
Number of Securities | security | 5 | 7 |
12 Months or More | ||
Fair Value | $ 0 | $ 8,622 |
Unrealized Losses | $ 0 | $ 90 |
Number of Securities | security | 0 | 9 |
Total | ||
Fair Value | $ 9,933 | $ 57,602 |
Unrealized Losses | $ 42 | $ 289 |
Number of Securities | security | 5 | 16 |
State and political subdivisions | ||
Less than 12 Months | ||
Fair Value | $ 8,525 | $ 21,412 |
Unrealized Losses | $ 31 | $ 102 |
Number of Securities | security | 8 | 11 |
12 Months or More | ||
Fair Value | $ 25 | $ 167 |
Unrealized Losses | $ 0 | $ 2 |
Number of Securities | security | 1 | 2 |
Total | ||
Fair Value | $ 8,550 | $ 21,579 |
Unrealized Losses | $ 31 | $ 104 |
Number of Securities | security | 9 | 13 |
Corporate bonds | ||
Less than 12 Months | ||
Fair Value | $ 0 | $ 530 |
Unrealized Losses | $ 0 | $ 0 |
Number of Securities | security | 0 | 1 |
12 Months or More | ||
Fair Value | $ 0 | $ 0 |
Unrealized Losses | $ 0 | $ 0 |
Number of Securities | security | 0 | 0 |
Total | ||
Fair Value | $ 0 | $ 530 |
Unrealized Losses | $ 0 | $ 0 |
Number of Securities | security | 0 | 1 |
Securities - Other Than Tempora
Securities - Other Than Temporary Impairment Losses (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Other-than-temporary impairment loss | $ 0 | $ 0 | $ 0 |
Securities - Equity Securities
Securities - Equity Securities Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Mutual Fund | |
Debt and Equity Securities, FV-NI [Line Items] | |
Equity securities | $ 2 |
Private Equity Security | |
Debt and Equity Securities, FV-NI [Line Items] | |
Equity securities | $ 11 |
Acquired privately-held security, term | 5 years |
Acquired privately-held security, extension term | 5 years |
Securities - Equity Securitie_2
Securities - Equity Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Net gains recognized during the period on equity securities | $ 46 | $ 62 |
Less: net gains recognized during the period on equity securities sold during the period | 0 | 0 |
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date | $ 46 | $ 62 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Leases - Categories of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 4,455,100 | $ 3,861,707 | ||
Less: Allowance for loan losses | 75,295 | 56,896 | $ 37,826 | $ 26,091 |
Less: Net deferred loan fees and costs | 13,203 | 9,463 | ||
Net loans | 4,366,602 | 3,795,348 | ||
Commercial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 1,338,757 | 1,356,817 | ||
Less: Allowance for loan losses | 24,693 | 35,864 | 16,584 | 11,378 |
Energy | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 345,233 | 408,573 | ||
Less: Allowance for loan losses | 18,341 | 6,565 | 10,262 | 7,726 |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 1,179,534 | 1,024,041 | ||
Less: Allowance for loan losses | 22,354 | 8,085 | 6,755 | 4,668 |
Construction and land development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 563,144 | 628,418 | ||
Less: Allowance for loan losses | 3,612 | 3,516 | 2,475 | 1,200 |
Residential and multifamily real estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 680,932 | 398,695 | ||
Less: Allowance for loan losses | 5,842 | 2,546 | 1,464 | 905 |
Paycheck Protection Program ("PPP") | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 292,230 | 0 | ||
Less: Allowance for loan losses | 0 | 0 | 0 | 0 |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | 55,270 | 45,163 | ||
Less: Allowance for loan losses | $ 453 | $ 320 | $ 286 | $ 214 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Leases - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for loan losses | |||
Beginning balance | $ 56,896 | $ 37,826 | $ 26,091 |
Provision charged to expense | 56,700 | 29,900 | 13,500 |
Charged-off | (38,429) | (11,423) | (2,303) |
Recoveries | 128 | 593 | 538 |
Ending balance | 75,295 | 56,896 | 37,826 |
Ending balance | |||
Individually evaluated for impairment | 9,533 | 22,298 | |
Collectively evaluated for impairment | 65,762 | 34,598 | |
Allocated to loans | |||
Individually evaluated for impairment | 121,614 | 93,500 | |
Collectively evaluated for impairment | 4,333,486 | 3,768,207 | |
Total Loans Receivable | 4,455,100 | 3,861,707 | |
Commercial | |||
Allowance for loan losses | |||
Beginning balance | 35,864 | 16,584 | 11,378 |
Provision charged to expense | 19,959 | 27,219 | 5,720 |
Charged-off | (31,205) | (7,954) | (976) |
Recoveries | 75 | 15 | 462 |
Ending balance | 24,693 | 35,864 | 16,584 |
Ending balance | |||
Individually evaluated for impairment | 1,115 | 19,942 | |
Collectively evaluated for impairment | 23,578 | 15,922 | |
Allocated to loans | |||
Individually evaluated for impairment | 44,678 | 70,876 | |
Collectively evaluated for impairment | 1,294,079 | 1,285,941 | |
Total Loans Receivable | 1,338,757 | 1,356,817 | |
Energy | |||
Allowance for loan losses | |||
Beginning balance | 6,565 | 10,262 | 7,726 |
Provision charged to expense | 16,867 | (1,273) | 3,717 |
Charged-off | (5,091) | (3,000) | (1,256) |
Recoveries | 0 | 576 | 75 |
Ending balance | 18,341 | 6,565 | 10,262 |
Ending balance | |||
Individually evaluated for impairment | 3,370 | 1,949 | |
Collectively evaluated for impairment | 14,971 | 4,616 | |
Allocated to loans | |||
Individually evaluated for impairment | 26,045 | 9,744 | |
Collectively evaluated for impairment | 319,188 | 398,829 | |
Total Loans Receivable | 345,233 | 408,573 | |
Commercial real estate | |||
Allowance for loan losses | |||
Beginning balance | 8,085 | 6,755 | 4,668 |
Provision charged to expense | 15,853 | 1,771 | 2,087 |
Charged-off | (1,584) | (441) | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 22,354 | 8,085 | 6,755 |
Ending balance | |||
Individually evaluated for impairment | 5,048 | 210 | |
Collectively evaluated for impairment | 17,306 | 7,875 | |
Allocated to loans | |||
Individually evaluated for impairment | 44,318 | 10,492 | |
Collectively evaluated for impairment | 1,135,216 | 1,013,549 | |
Total Loans Receivable | 1,179,534 | 1,024,041 | |
Construction and land development | |||
Allowance for loan losses | |||
Beginning balance | 3,516 | 2,475 | 1,200 |
Provision charged to expense | 96 | 1,041 | 1,275 |
Charged-off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 3,612 | 3,516 | 2,475 |
Ending balance | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 3,612 | 3,516 | |
Allocated to loans | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 563,144 | 628,418 | |
Total Loans Receivable | 563,144 | 628,418 | |
Residential and multifamily real estate | |||
Allowance for loan losses | |||
Beginning balance | 2,546 | 1,464 | 905 |
Provision charged to expense | 3,700 | 1,090 | 559 |
Charged-off | (445) | (8) | 0 |
Recoveries | 41 | 0 | 0 |
Ending balance | 5,842 | 2,546 | 1,464 |
Ending balance | |||
Individually evaluated for impairment | 0 | 197 | |
Collectively evaluated for impairment | 5,842 | 2,349 | |
Allocated to loans | |||
Individually evaluated for impairment | 6,329 | 2,388 | |
Collectively evaluated for impairment | 674,603 | 396,307 | |
Total Loans Receivable | 680,932 | 398,695 | |
Paycheck Protection Program ("PPP") | |||
Allowance for loan losses | |||
Beginning balance | 0 | 0 | 0 |
Provision charged to expense | 0 | 0 | 0 |
Charged-off | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Ending balance | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Allocated to loans | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 292,230 | 0 | |
Total Loans Receivable | 292,230 | 0 | |
Consumer | |||
Allowance for loan losses | |||
Beginning balance | 320 | 286 | 214 |
Provision charged to expense | 225 | 52 | 142 |
Charged-off | (104) | (20) | (71) |
Recoveries | 12 | 2 | 1 |
Ending balance | 453 | 320 | $ 286 |
Ending balance | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 453 | 320 | |
Allocated to loans | |||
Individually evaluated for impairment | 244 | 0 | |
Collectively evaluated for impairment | 55,026 | 45,163 | |
Total Loans Receivable | $ 55,270 | $ 45,163 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Leases - Internal Risk Ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 4,455,100 | $ 3,861,707 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,944,627 | 3,727,182 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 224,416 | 47,629 |
Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 211,008 | 47,221 |
Substandard Performing | Nonperforming Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 70,734 | 34,192 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,315 | 5,483 |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,338,757 | 1,356,817 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,182,519 | 1,258,952 |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 66,142 | 27,069 |
Commercial | Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 63,407 | 38,666 |
Commercial | Substandard Performing | Nonperforming Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 26,124 | 32,130 |
Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 565 | 0 |
Commercial | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Energy | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 345,233 | 408,573 |
Energy | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 145,598 | 392,233 |
Energy | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 90,134 | 9,460 |
Energy | Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 83,574 | 2,340 |
Energy | Substandard Performing | Nonperforming Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 22,177 | 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 | 1,179,534 | 1,024,041 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,035,056 | 1,007,921 |
Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 67,710 | 9,311 |
Commercial real estate | Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 57,680 | 5,746 |
Commercial real estate | Substandard Performing | Nonperforming Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 19,088 | 120 |
Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 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 | 563,144 | 628,418 |
Construction and land development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 561,871 | 628,418 |
Construction and land development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 125 | 0 |
Construction and land development | Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 1,148 | 0 |
Construction and land development | Substandard Performing | Nonperforming Financial Instruments | ||
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 and multifamily real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 680,932 | 398,695 |
Residential and multifamily real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 672,327 | 394,495 |
Residential and multifamily real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 305 | 1,789 |
Residential and multifamily real estate | Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 5,199 | 469 |
Residential and multifamily real estate | Substandard Performing | Nonperforming Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 3,101 | 1,942 |
Residential and multifamily real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Residential and multifamily 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 | 292,230 | 0 |
Paycheck Protection Program ("PPP") | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 292,230 | 0 |
Paycheck Protection Program ("PPP") | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Paycheck Protection Program ("PPP") | Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Paycheck Protection Program ("PPP") | Substandard Performing | Nonperforming Financial Instruments | ||
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 | 55,270 | 45,163 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 55,026 | 45,163 |
Consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | Substandard Performing | Performing Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | Substandard Performing | Nonperforming Financial Instruments | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 244 | 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 Leases - Loan Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 44,832 | $ 48,834 |
Current | 4,410,268 | 3,812,873 |
Total Loans Receivable | 4,455,100 | 3,861,707 |
Loans >= 90 Days and Accruing | 1,024 | 4,591 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 10,137 | 6,292 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,941 | 530 |
90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 26,754 | 42,012 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 19,997 | 32,278 |
Current | 1,318,760 | 1,324,539 |
Total Loans Receivable | 1,338,757 | 1,356,817 |
Loans >= 90 Days and Accruing | 0 | 37 |
Commercial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 8,497 | 1,091 |
Commercial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 264 | 276 |
Commercial | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11,236 | 30,911 |
Energy | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,173 | 6,933 |
Current | 338,060 | 401,640 |
Total Loans Receivable | 345,233 | 408,573 |
Loans >= 90 Days and Accruing | 372 | 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 | 0 | 0 |
Energy | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,173 | 4,593 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 12,565 | 4,905 |
Current | 1,166,969 | 1,019,136 |
Total Loans Receivable | 1,179,534 | 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 | 63 | 316 |
Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,677 | 0 |
Commercial real estate | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,825 | 4,589 |
Construction and land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 196 |
Current | 563,144 | 628,222 |
Total Loans Receivable | 563,144 | 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 and multifamily real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,097 | 4,266 |
Current | 675,835 | 394,429 |
Total Loans Receivable | 680,932 | 398,695 |
Loans >= 90 Days and Accruing | 652 | 0 |
Residential and multifamily real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,577 | 2,347 |
Residential and multifamily real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Residential and multifamily real estate | 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,520 | 1,919 |
Paycheck Protection Program ("PPP") | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current | 292,230 | 0 |
Total Loans Receivable | 292,230 | 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 | 55,270 | 44,907 |
Total Loans Receivable | 55,270 | 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 Leases - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Recorded Balance | ||
Total | $ 121,614 | $ 93,500 |
Unpaid Principal Balance | ||
Total | 145,680 | 101,500 |
Specific Allowance | 9,533 | 22,298 |
Interest Income Recognized | ||
Total | 3,557 | 3,212 |
Commercial | ||
Recorded Balance | ||
Loans without a specific valuation | 36,111 | 35,846 |
Loans with a specific valuation | 8,567 | 35,030 |
Total | 44,678 | 70,876 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 50,245 | 35,846 |
Loans with a specific valuation | 8,567 | 40,030 |
Total | 58,812 | 75,876 |
Specific Allowance | 1,115 | 19,942 |
Average Investment Impaired Loans | ||
Loans without a specific valuation | 29,591 | 44,646 |
Loans with a specific valuation | 8,637 | 39,688 |
Total | 38,228 | 84,334 |
Interest Income Recognized | ||
Loans without a specific valuation | 1,143 | 1,549 |
Loans with a specific valuation | 249 | 460 |
Total | 1,392 | 2,009 |
Energy | ||
Recorded Balance | ||
Loans without a specific valuation | 3,864 | 2,864 |
Loans with a specific valuation | 22,181 | 6,880 |
Total | 26,045 | 9,744 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 6,677 | 2,864 |
Loans with a specific valuation | 27,460 | 9,880 |
Total | 34,137 | 12,744 |
Specific Allowance | 3,370 | 1,949 |
Average Investment Impaired Loans | ||
Loans without a specific valuation | 6,710 | 4,381 |
Loans with a specific valuation | 23,823 | 10,547 |
Total | 30,533 | 14,928 |
Interest Income Recognized | ||
Loans without a specific valuation | 53 | 199 |
Loans with a specific valuation | 542 | 264 |
Total | 595 | 463 |
Commercial real estate | ||
Recorded Balance | ||
Loans without a specific valuation | 10,079 | 9,464 |
Loans with a specific valuation | 34,239 | 1,028 |
Total | 44,318 | 10,492 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 11,663 | 9,464 |
Loans with a specific valuation | 34,239 | 1,028 |
Total | 45,902 | 10,492 |
Specific Allowance | 5,048 | 210 |
Average Investment Impaired Loans | ||
Loans without a specific valuation | 11,952 | 12,907 |
Loans with a specific valuation | 27,980 | 1,037 |
Total | 39,932 | 13,944 |
Interest Income Recognized | ||
Loans without a specific valuation | 390 | 669 |
Loans with a specific valuation | 1,035 | 47 |
Total | 1,425 | 716 |
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 |
Average Investment Impaired Loans | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Interest Income Recognized | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Residential and multifamily real estate | ||
Recorded Balance | ||
Loans without a specific valuation | 6,329 | 2,139 |
Loans with a specific valuation | 0 | 249 |
Total | 6,329 | 2,388 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 6,585 | 2,139 |
Loans with a specific valuation | 0 | 249 |
Total | 6,585 | 2,388 |
Specific Allowance | 0 | 197 |
Average Investment Impaired Loans | ||
Loans without a specific valuation | 6,315 | 2,140 |
Loans with a specific valuation | 0 | 249 |
Total | 6,315 | 2,389 |
Interest Income Recognized | ||
Loans without a specific valuation | 145 | 14 |
Loans with a specific valuation | 0 | 10 |
Total | 145 | 24 |
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 |
Average Investment Impaired Loans | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Interest Income Recognized | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 0 | 0 |
Consumer | ||
Recorded Balance | ||
Loans without a specific valuation | 244 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 244 | 0 |
Unpaid Principal Balance | ||
Loans without a specific valuation | 244 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 244 | 0 |
Specific Allowance | 0 | 0 |
Average Investment Impaired Loans | ||
Loans without a specific valuation | 250 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | 250 | 0 |
Interest Income Recognized | ||
Loans without a specific valuation | 0 | 0 |
Loans with a specific valuation | 0 | 0 |
Total | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Leases - Nonaccrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | $ 75,051 | $ 39,675 |
Commercial | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 26,691 | 32,130 |
Energy | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 25,927 | 4,540 |
Commercial real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 19,088 | 1,063 |
Construction and land development | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Residential and multifamily real estate | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 3,101 | 1,942 |
Paycheck Protection Program ("PPP") | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | 0 | 0 |
Consumer | ||
Financing Receivable, Nonaccrual [Line Items] | ||
Total nonaccrual loans | $ 244 | $ 0 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Leases - Troubled Debt Restructuring Loans (Details) | 12 Months Ended | |
Dec. 31, 2020USD ($)loancontract | Dec. 31, 2019USD ($)loancontract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | $ 53,067,000 | $ 34,766,000 |
Number of Loans | loan | 17 | 12 |
Outstanding Balance | $ 63,095,000 | $ 39,543,000 |
Balance 90 Days Past Due at Any Time During Previous 12 Months | 5,489,000 | 831,000 |
Total specific valuation allowance for restructured loans | 4,000,000 | 18,000,000 |
Troubled debt restructurings, charge-offs | 26,000,000 | 5,000,000 |
Troubled debt restructurings, recoveries | 0 | 0 |
Interest income recognized on TDRs | 1,000,000 | 1,000,000 |
Gross interest income if loan had been current in accordance with original terms | $ 2,000,000 | $ 2,000,000 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 7 | 7 |
Outstanding Balance | $ 22,759,000 | $ 31,770,000 |
Balance 90 Days Past Due at Any Time During Previous 12 Months | $ 2,776,000 | $ 831,000 |
Number of TDR loans modified within the previous twelve months default | loan | 1 | |
Commercial | One Commercial Borrower | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Balance 90 Days Past Due at Any Time During Previous 12 Months | $ 28,000,000 | |
Energy | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 4 | 2 |
Outstanding Balance | $ 11,053,000 | $ 2,864,000 |
Balance 90 Days Past Due at Any Time During Previous 12 Months | $ 2,713,000 | $ 0 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 4 | 3 |
Outstanding Balance | $ 26,038,000 | $ 4,909,000 |
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 | loan | 0 | 0 |
Outstanding Balance | $ 0 | $ 0 |
Balance 90 Days Past Due at Any Time During Previous 12 Months | $ 0 | $ 0 |
Residential and multifamily real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 0 |
Outstanding Balance | $ 3,245,000 | $ 0 |
Balance 90 Days Past Due at Any Time During Previous 12 Months | $ 0 | $ 0 |
Paycheck Protection Program ("PPP") | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | contract | 0 | 0 |
Outstanding Balance | $ 0 | $ 0 |
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 | loan | 0 | 0 |
Outstanding Balance | $ 0 | $ 0 |
Balance 90 Days Past Due at Any Time During Previous 12 Months | 0 | 0 |
Debt forgiveness | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | 17,297,000 | 0 |
Deferred payment | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | 21,210,000 | 0 |
Reduction of monthly payment | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | 1,224,000 | 994,000 |
Reduction of monthly payment | Energy | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | 7,825,000 | 0 |
Reduction of monthly payment | Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | 0 | 3,767,000 |
Extension of maturity date | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | 0 | 30,005,000 |
Extension of maturity date | Energy | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | 2,340,000 | 0 |
Interest rate reduction | Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Total troubled debt restructurings | $ 3,171,000 | $ 0 |
Premises and Equipment - Major
Premises and Equipment - Major Classifications of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 93,470 | $ 89,417 |
Less: accumulated depreciation | 22,961 | 19,207 |
Premises and equipment, net | 70,509 | 70,210 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 7,384 | 7,384 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 62,331 | 59,500 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 95 | 524 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 14,073 | 12,851 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 9,587 | $ 9,158 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangible - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 7,000 | $ 7,397 | $ 0 | $ 0 |
Finite-lived intangible asset, remaining amortization period | 3 years |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangible - Carrying Basis and Accumulated Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Gross Carrying Amount | $ 7,397 | $ 7,397 |
Goodwill, Impairment | 7,397 | 0 |
Goodwill, Net Carrying Amount | 0 | 7,397 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Gross Carrying Amount | 1,014 | 1,014 |
Accumulated Amortization | 806 | 717 |
Net Carrying Amount | 208 | 297 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Gross Carrying Amount | 8,411 | 8,411 |
Accumulated Amortization | 806 | 717 |
Net Carrying Amount | $ 208 | $ 7,694 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||||
Swap fee income | $ (204) | $ 2,753 | $ 285 | |
Derivative instruments not designated as hedging instruments, loss | $ 290 | |||
Change in Accounting Method Accounted for as Change in Estimate | ||||
Derivative [Line Items] | ||||
Swap fee income | $ 800 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Derivatives Not Designated as Hedging Instruments (Details) - Back-to-back swaps - Not Designated as Hedging Instrument $ in Thousands | Dec. 31, 2020USD ($)derivative | Dec. 31, 2019USD ($)derivative |
Derivative [Line Items] | ||
Number of Instruments | derivative | 56 | 56 |
Notional Amount | $ | $ 515,567 | $ 380,050 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Fair Value of Derivatives (Details) - Not Designated as Hedging Instrument - Interest rate products - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Other assets | ||
Derivative [Line Items] | ||
Asset Derivatives | $ 24,094 | $ 9,838 |
Other liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives | $ 24,454 | $ 9,907 |
Interest-bearing Time Deposits
Interest-bearing Time Deposits (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Maturities of Time Deposits [Abstract] | ||
Interest-bearing time deposits in denominations of $250,000 or more | $ 524 | $ 692 |
Brokered deposits | 188 | 392 |
CDARS | $ 75 | $ 42 |
Borrowing Arrangements - Borrow
Borrowing Arrangements - Borrowings Summary (Details) - USD ($) $ in Thousands | Jun. 30, 2010 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2012 | Sep. 30, 2005 |
Debt Instrument [Line Items] | |||||
Balance | $ 296,369 | $ 374,585 | |||
Securities sold under agreements to repurchase, average daily balance | 32,000 | 44,000 | |||
Securities pledged for repurchase agreements | 6,000 | 37,000 | |||
Borrowings | 963 | ||||
FHLB advances | |||||
Debt Instrument [Line Items] | |||||
Balance | $ 293,100 | $ 358,743 | |||
Rate | 1.78% | 1.84% | |||
Maximum balance at any end of month | $ 450,659 | $ 358,743 | |||
FHLB line of credit | |||||
Debt Instrument [Line Items] | |||||
Balance | 0 | 0 | |||
Maximum balance at any end of month | 20,000 | 30,000 | |||
Trust preferred security | |||||
Debt Instrument [Line Items] | |||||
Balance | $ 963 | $ 921 | |||
Rate | 1.96% | 3.63% | |||
Maximum balance at any end of month | $ 963 | $ 921 | |||
Fair value of assumed liability | $ 1,000 | ||||
Borrowings | $ 4,000 | ||||
Decrease in principal balance | $ 1,500 | ||||
Decrease in recorded balance | 400 | ||||
Difference between recorded amount and contract value | $ 2,500 | ||||
Repurchase agreements | |||||
Debt Instrument [Line Items] | |||||
Balance | $ 2,306 | $ 14,921 | |||
Rate | 0.15% | 1.00% | |||
Maximum balance at any end of month | $ 57,259 | $ 72,048 | |||
Maturities term | 1 day | ||||
Federal funds purchased | |||||
Debt Instrument [Line Items] | |||||
Balance | $ 0 | 0 | |||
Maximum balance at any end of month | $ 30,000 | 25,000 | |||
Maturities term | 1 day | ||||
Federal Reserve Borrowing | |||||
Debt Instrument [Line Items] | |||||
Balance | $ 0 | 0 | |||
Maximum balance at any end of month | $ 15,000 | $ 0 | |||
Minimum | |||||
Debt Instrument [Line Items] | |||||
FHLB advances, fixed rate | 0.37% | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
FHLB advances, fixed rate | 2.88% | ||||
LIBOR | Trust preferred security | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.74% |
Borrowing Arrangements - Borr_2
Borrowing Arrangements - Borrowing Capacity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Unused Federal Reserve borrowing capacity | $ 435,805 | $ 287,857 |
Total FHLB borrowing capacity | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 518,191 | 490,218 |
FHLB borrowing capacity relating to loans | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | 518,191 | 490,218 |
FHLB borrowing capacity relating to securities | ||
Debt Instrument [Line Items] | ||
Borrowing capacity | $ 0 | $ 0 |
Borrowing Arrangements - Borr_3
Borrowing Arrangements - Borrowing Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Time deposits | ||
Within One Year | $ 867,927 | |
One to Two Years | 114,963 | |
Two to Three Years | 44,392 | |
Three to Four Years | 15,501 | |
Four to Five Years | 699 | |
After Five Years | 0 | |
Total | 1,043,482 | $ 1,239,746 |
Fed funds purchased & repurchase agreements | 2,306 | 14,921 |
FHLB borrowings | ||
Within One Year | 16,500 | |
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 | 293,100 | $ 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 | 963 | |
Total | 963 | |
Total | ||
Within One Year | 886,733 | |
One to Two Years | 136,463 | |
Two to Three Years | 79,392 | |
Three to Four Years | 15,501 | |
Four to Five Years | 5,799 | |
After Five Years | 215,963 | |
Total | 1,339,851 | |
Contract value | $ 2,600 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Taxes currently payable (receivable) | $ 7,970 | $ 7,624 | $ (2,155) | |
Deferred income tax liability | (5,257) | (3,486) | (239) | |
Income tax expense (benefit) | $ (2,394) | $ 2,713 | $ 4,138 | $ (2,394) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Computed at the statutory rate (21%) | $ 3,611 | $ 3,216 | $ 6,848 | |
Increase (decrease) resulting from | ||||
Tax-exempt income | (3,508) | (3,109) | (2,913) | |
Nondeductible expenses | 380 | 194 | 356 | |
State tax credit | (3,129) | 0 | (1,361) | |
State income tax expense (benefit) | 687 | 679 | 1,288 | |
Equity-based compensation | (445) | 179 | (88) | |
Goodwill impairment | 0 | 1,553 | 0 | |
Other adjustments | 10 | 1 | 8 | |
Income tax expense (benefit) | $ (2,394) | $ 2,713 | $ 4,138 | $ (2,394) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | |||
Tax benefit | $ 2,000 | ||
Federal tax expense | 362 | ||
Deferred tax asset | 3,287 | $ 2,621 | |
Operating loss annual usage limit | 180 | ||
Tax Year 2019 | |||
Tax Credit Carryforward [Line Items] | |||
Deferred tax asset | 1,000 | 2,000 | |
State Tax Credit | |||
Tax Credit Carryforward [Line Items] | |||
Tax credit | $ 2,000 | $ 3,000 | |
Federal | |||
Tax Credit Carryforward [Line Items] | |||
Operating loss carry-forwards | $ 1,000 |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets | ||
Allowance for loan losses | $ 18,124 | $ 13,928 |
Lease incentive | 564 | 294 |
Impairment of available-for-sale securities | 0 | 493 |
Loan fees | 3,178 | 2,317 |
Accrued expenses | 2,128 | 2,131 |
Deferred compensation | 2,474 | 2,444 |
State tax credit | 2,621 | 3,287 |
Other | 946 | 420 |
Total deferred tax asset | 30,035 | 25,314 |
Deferred tax liability | ||
Net unrealized gain on securities available-for-sale | (9,531) | (5,339) |
FHLB stock basis | (1,209) | (996) |
Premises and equipment | (2,881) | (3,620) |
Other | (1,601) | (1,577) |
Total deferred tax liability | (15,222) | (11,532) |
Net deferred tax asset | $ 14,813 | $ 13,782 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain on sale of available-for-sale debt securities | $ 1,704 | $ 987 | $ 538 | |
Income tax expense | $ (2,394) | 2,713 | 4,138 | (2,394) |
Net Income | 12,601 | 28,473 | 19,590 | |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain on sale of available-for-sale debt securities | 1,704 | 987 | 538 | |
Income tax expense | 415 | 242 | 132 | |
Net Income | $ 1,289 | $ 745 | $ 406 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 656,806 | $ 633,228 |
Actual, ratio | 0.131 | 0.134 |
Minimum capital required, Basel III, amount | $ 527,486 | $ 495,095 |
Minimum capital required, Basel III, ratio | 0.105 | 0.105 |
Tier I Capital to Risk-Weighted Assets | ||
Actual, amount | $ 593,865 | $ 576,332 |
Actual, ratio | 0.118 | 0.122 |
Minimum capital required, Basel III, amount | $ 427,012 | $ 400,791 |
Minimum capital required, Basel III, ratio | 0.085 | 0.085 |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Actual, amount | $ 592,902 | $ 575,411 |
Actual, ratio | 0.118 | 0.122 |
Minimum capital required, Basel III, amount | $ 351,657 | $ 330,063 |
Minimum capital required, Basel III, ratio | 7.00% | 7.00% |
Tier I Capital to Average Assets | ||
Actual, amount | $ 593,865 | $ 576,332 |
Actual, ratio | 0.108 | 0.121 |
Minimum capital required, Basel III, amount | $ 219,550 | $ 191,093 |
Minimum capital required, Basel III, ratio | 0.040 | 0.040 |
Bank | ||
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 611,533 | $ 581,600 |
Actual, ratio | 0.122 | 0.123 |
Minimum capital required, Basel III, amount | $ 527,217 | $ 494,954 |
Minimum capital required, Basel III, ratio | 0.105 | 0.105 |
Required to be considered well capitalized, amount | $ 502,111 | $ 471,385 |
Required to be considered well capitalized, ratio | 0.100 | 0.100 |
Tier I Capital to Risk-Weighted Assets | ||
Actual, amount | $ 548,615 | $ 524,704 |
Actual, ratio | 0.109 | 0.111 |
Minimum capital required, Basel III, amount | $ 426,794 | $ 400,677 |
Minimum capital required, Basel III, ratio | 0.085 | 0.085 |
Required to be considered well capitalized, amount | $ 401,689 | $ 377,108 |
Required to be considered well capitalized, ratio | 0.080 | 0.080 |
Common Equity Tier 1 to Risk-Weighted Assets | ||
Actual, amount | $ 548,615 | $ 524,704 |
Actual, ratio | 0.109 | 0.111 |
Minimum capital required, Basel III, amount | $ 351,478 | $ 329,970 |
Minimum capital required, Basel III, ratio | 7.00% | 7.00% |
Required to be considered well capitalized, amount | $ 326,372 | $ 306,400 |
Required to be considered well capitalized, ratio | 6.50% | 6.50% |
Tier I Capital to Average Assets | ||
Actual, amount | $ 548,615 | $ 524,704 |
Actual, ratio | 0.100 | 0.110 |
Minimum capital required, Basel III, amount | $ 219,441 | $ 191,170 |
Minimum capital required, Basel III, ratio | 0.040 | 0.040 |
Required to be considered well capitalized, amount | $ 274,302 | $ 238,963 |
Required to be considered well capitalized, ratio | 0.050 | 0.050 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions | $ 1,000 | $ 1,000 | $ 891 |
First 1% of Employees Salary Deferral Amounts | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions to the plan, percentage | 100.00% | 100.00% | 100.00% |
Percent of employees' gross pay | 1.00% | 1.00% | 1.00% |
Salary Deferral Amounts Over 1% | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Company contributions to the plan, percentage | 50.00% | 50.00% | 50.00% |
Percent of employees' gross pay | 1.00% | 1.00% | 1.00% |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percent of employees' gross pay | 6.00% | 6.00% | 6.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Noninterest income subject to ASU 2014-09 | |||
Total noninterest income from contracts with customers | $ 8,360 | $ 3,227 | |
Noninterest income not subject to ASU 2014-09 | |||
Other noninterest income | 3,373 | 5,480 | |
Total non-interest income | 11,733 | 8,707 | $ 6,083 |
Service charges and fees (rebates) on customer accounts | |||
Noninterest income subject to ASU 2014-09 | |||
Total noninterest income from contracts with customers | 2,803 | 604 | 444 |
ATM and credit card interchange income | |||
Noninterest income subject to ASU 2014-09 | |||
Total noninterest income from contracts with customers | 4,379 | 1,785 | $ 1,224 |
International fees | |||
Noninterest income subject to ASU 2014-09 | |||
Total noninterest income from contracts with customers | 1,091 | 716 | |
Other fees | |||
Noninterest income subject to ASU 2014-09 | |||
Total noninterest income from contracts with customers | $ 87 | $ 122 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | Dec. 21, 2018 | Dec. 31, 2018USD ($) | May 31, 2018USD ($)shares | Jan. 31, 2018USD ($)participantshares | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($)market_measure$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2016shares | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Stock split ratio | 2 | 2 | |||||||||||||
Compensation expense | $ 4,604,000 | $ 4,363,000 | $ 4,724,000 | ||||||||||||
Cumulative effect adjustment | $ (490,336,000) | (490,336,000) | $ (624,428,000) | (601,644,000) | $ (490,336,000) | $ (287,147,000) | |||||||||
Omnibus Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares authorized for future issuance (in shares) | shares | 2,083,353 | ||||||||||||||
Equity Incentive Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Plan modification, incremental cost | $ 1,124,000 | $ 1,294,000 | 216,000 | 989,000 | |||||||||||
Plan modification, cost of forfeiture credits | $ 61,000 | ||||||||||||||
Number of participants impacted by modification | participant | 25 | ||||||||||||||
Stock appreciation rights | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 7 years | 3 years | |||||||||||||
Expiration period | 15 years | ||||||||||||||
Granted (in shares) | shares | 25,907 | 240,000 | |||||||||||||
Shares with accelerated vesting (in shares) | shares | 107,482 | ||||||||||||||
Accelerated vesting cost | $ 430,000 | ||||||||||||||
Compensation expense | 1,457,000 | $ 994,000 | 1,243,000 | ||||||||||||
Unrecognized compensation expense | 3,730,000 | 3,730,000 | $ 1,737,000 | $ 2,904,000 | $ 3,730,000 | ||||||||||
Period for recognizing stock-based compensation expense | 3 years 3 months 18 days | 3 years 10 months 24 days | 3 years 10 months 24 days | ||||||||||||
Stock appreciation rights | Equity Incentive Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 5 years | ||||||||||||||
Granted (in shares) | shares | 100,000 | ||||||||||||||
Plan modification, incremental cost | $ 430,000 | ||||||||||||||
Stock Appreciation Rights - Legacy Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Expiration period | 15 years | ||||||||||||||
Minimum period after holding grant for retirement eligibility | 1 year | ||||||||||||||
Minimum service period for retirement eligibility | 5 years | ||||||||||||||
Other Stock Appreciation Rights | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Expiration period | 10 years | 5 years | |||||||||||||
Performance-Based Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 3 years | ||||||||||||||
Granted (in shares) | shares | 41,283 | ||||||||||||||
Compensation expense | 578,000 | $ 249,000 | $ 271,000 | ||||||||||||
Unrecognized compensation expense | $ 488,000 | ||||||||||||||
Period for recognizing stock-based compensation expense | 1 year 8 months 12 days | ||||||||||||||
Grant date fair market value (in dollars per share) | $ / shares | $ 13.55 | ||||||||||||||
Restricted Stock Units and Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | shares | 293,297 | ||||||||||||||
Unrecognized compensation expense | $ 3,000,000 | ||||||||||||||
Period for recognizing stock-based compensation expense | 1 year 8 months 12 days | ||||||||||||||
Grant date fair market value (in dollars per share) | $ / shares | $ 11.84 | ||||||||||||||
Restricted Stock Units | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares with accelerated vesting (in shares) | shares | 74,280 | ||||||||||||||
Accelerated vesting cost | $ 694,000 | ||||||||||||||
Restricted Stock Units | Equity Incentive Plan | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Granted (in shares) | shares | 282,192 | ||||||||||||||
Plan modification, incremental cost | $ 694,000 | ||||||||||||||
Restricted Stock Units - Legacy Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 3 years | 3 years | |||||||||||||
Granted (in shares) | shares | 60,000 | ||||||||||||||
Grant date fair market value (in dollars per share) | $ / shares | $ 14.25 | ||||||||||||||
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 | ||||||||||||||
Compensation expense | 2,404,000 | $ 3,078,000 | 3,174,000 | ||||||||||||
Minimum | Performance-Based Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award payout percentage | 0.00% | ||||||||||||||
Maximum | Performance-Based Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award payout percentage | 150.00% | ||||||||||||||
Retained Earnings | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Cumulative effect adjustment | [1] | (38,371,000) | (38,371,000) | $ (77,652,000) | $ (64,803,000) | $ (38,371,000) | $ (23,694,000) | ||||||||
Accounting Standards Update 2018-07 | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Cumulative effect adjustment | (306,000) | (306,000) | (306,000) | ||||||||||||
Accounting Standards Update 2018-07 | Retained Earnings | Cumulative Effect, Period of Adoption, Adjustment | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Cumulative effect adjustment | $ 1,853,000 | [1] | $ 1,853,000 | [1] | $ 1,853,000 | [1] | $ 2,000,000 | ||||||||
Non-employees | Stock appreciation rights | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 5 years | ||||||||||||||
Granted (in shares) | shares | 100,000 | ||||||||||||||
Strike price (in dollars per share) | $ / shares | $ 28.50 | ||||||||||||||
Non-employees | Performance-Based Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares authorized for future issuance (in shares) | shares | 248,841 | ||||||||||||||
Granted (in shares) | shares | 110,900 | ||||||||||||||
Compensation expense | $ 0 | ||||||||||||||
Number of equally weighted market measures | market_measure | 4 | ||||||||||||||
Non-employees | Minimum | Performance-Based Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award payout percentage | 0.00% | ||||||||||||||
Threshold award payout percentage for straight-line interpolation | 50.00% | ||||||||||||||
Non-employees | Maximum | Performance-Based Awards | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award payout percentage | 150.00% | ||||||||||||||
Threshold award payout percentage for straight-line interpolation | 150.00% | ||||||||||||||
[1] | (1) Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018. |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | $ 4,604 | $ 4,363 | $ 4,724 |
Stock appreciation rights | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | 1,457 | 994 | 1,243 |
Performance-based stock awards | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | 578 | 249 | 271 |
Restricted stock awards | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | 2,404 | 3,078 | 3,174 |
Employee stock purchase plan | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total stock-based compensation | $ 165 | $ 42 | $ 36 |
Stock-Based Compensation - SSAR
Stock-Based Compensation - SSARs Assumptions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions: | |||
Expected term (in years) | 6 years | ||
Minimum | |||
Assumptions: | |||
Expected term (in years) | 4 years 2 months 26 days | 4 years | |
Maximum | |||
Assumptions: | |||
Expected term (in years) | 7 years | 9 years 6 months | |
Stock appreciation rights | |||
Assumptions: | |||
Expected volatility | 20.34% | ||
Expected volatility, minimum | 24.63% | 25.69% | |
Expected volatility, maximum | 33.63% | 42.99% | |
Expected dividends | 0.00% | 0.00% | 0.00% |
Risk-free rate | 0.38% | ||
Risk-free rate, minimum | 1.45% | 2.50% | |
Risk-free rate, maximum | 2.55% | 2.94% | |
Weighted average fair value per share at grant date (in dollars per share) | $ 1.93 | $ 5.43 | $ 4.68 |
Aggregate intrinsic value of SSARs exercised | $ 571 | $ 493 | $ 2,214 |
Total fair value of SSARs vested during the year | 1,245 | 1,171 | 1,710 |
Unrecognized compensation information: | |||
Unrecognized compensation cost | $ 1,737 | $ 2,904 | $ 3,730 |
Period remaining (in years) | 3 years 3 months 18 days | 3 years 10 months 24 days | 3 years 10 months 24 days |
Stock-Based Compensation - SS_2
Stock-Based Compensation - SSARs Activity (Details) - Stock appreciation rights - $ / shares | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Units | ||||
Beginning balance (in shares) | 1,772,652 | |||
Granted (in shares) | 25,907 | 240,000 | ||
Exercised (in shares) | (140,354) | |||
Forfeited or expired (in shares) | (68,530) | |||
Ending balance (in shares) | 1,589,675 | 1,772,652 | ||
Exercisable (in shares) | 991,130 | |||
Weighted Average Exercise Price | ||||
Beginning balance, weighted average exercise price (in dollars per share) | $ 10.73 | $ 10.31 | $ 10.73 | |
Granted, weighted average exercise price (in dollars per share) | 9.35 | |||
Exercised, weighted average exercise price (in dollars per share) | 5.94 | |||
Forfeited or expired, weighted average exercise price (in dollars per share) | 9.14 | |||
Ending balance, weighted average exercise price (in dollars per share) | $ 10.73 | $ 10.31 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 9.59 | |||
Weighted Average Remaining Contractual Term | ||||
Weighted average remaining contractual term | 8 years 5 months 12 days | 9 years 2 months 12 days | ||
Weighted average remaining contractual term, granted | 9 years 5 months 1 day | |||
Weighted average remaining contractual term, exercisable | 8 years 1 month 20 days |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-Based Awards Activity (Details) - Performance-Based Awards | 12 Months Ended |
Dec. 31, 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 | (1,900) |
Ending balance (in shares) | shares | 231,631 |
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 | 13.55 |
Ending balance (in dollars per share) | $ / shares | $ 10.51 |
Stock-Based Compensation - RSUs
Stock-Based Compensation - RSUs and RSAs Activity (Details) - Restricted Stock Units and Awards | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Number of Shares | |
Beginning balance (in shares) | shares | 340,780 |
Granted (in shares) | shares | 293,297 |
Vested (in shares) | shares | (231,845) |
Forfeited (in shares) | shares | (33,015) |
Ending balance (in shares) | shares | 369,217 |
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 | 15.37 |
Forfeited (in dollars per share) | $ / shares | 14.62 |
Ending balance (in dollars per share) | $ / shares | $ 12.61 |
Stock-Based Compensation - ESPP
Stock-Based Compensation - ESPP Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assumptions: | |||
Expected term (in years) | 6 years | ||
Employee stock purchase plan | |||
Assumptions: | |||
Expected volatility | 22.50% | 7.60% | 7.60% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 6 months | 1 year | 1 year |
Risk-free rate | 0.17% | 2.09% | 2.09% |
Stock-Based Compensation - Even
Stock-Based Compensation - Events and the Impact to Equity Based Compensation (Details) $ in Thousands | Dec. 21, 2018 | Dec. 31, 2018shares | Oct. 31, 2018shares | May 31, 2018USD ($)shares | Jan. 31, 2018USD ($)shares | Dec. 31, 2020shares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock split ratio | 2 | 2 | ||||||
Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan modification, incremental cost | $ | $ 1,124 | $ 1,294 | $ 216 | $ 989 | ||||
Awards exchanged, percentage of original award | 100.00% | |||||||
Shares issued (in shares) | 101,178 | |||||||
Performance Based Restricted Stock Units | Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares forfeited (in shares) | 282,192 | |||||||
Performance Based Restricted Stock Units | Omnibus Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares forfeited (in shares) | 159,384 | |||||||
Restricted Stock Units | Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan modification, incremental cost | $ | $ 694 | |||||||
Issuance of stock (in shares) | 282,192 | |||||||
Shares vested (in shares) | 74,280 | |||||||
Restricted Stock Units | Omnibus Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares forfeited (in shares) | 298,254 | |||||||
Stock appreciation rights | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares exercised (in shares) | 140,354 | |||||||
Shares forfeited (in shares) | 68,530 | |||||||
Shares excluded from stock split (in shares) | 100,000 | |||||||
Stock appreciation rights | Equity Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Plan modification, incremental cost | $ | $ 430 | |||||||
Shares exercised (in shares) | 201,334 | |||||||
Stock appreciation rights | Omnibus Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares issued (in shares) | 1,595,430 |
Stock Warrants (Details)
Stock Warrants (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Warrants outstanding (in shares) | 113,500 | 113,500 | |
Strike price (in dollars per share) | $ 5 | $ 5 | |
Warrants modified (in shares) | 113,500 | ||
Warrants forfeited (in shares) | 10,000 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($)renewal_option | |
Office Space Lease, Kansas City, Missouri | |
Operating Leased Assets [Line Items] | |
Lease term | 15 years |
Number of renewal terms | renewal_option | 4 |
Renewal term | 5 years |
Construction allowance | $ | $ 1,000 |
Office Space Lease, Frisco, Texas | |
Operating Leased Assets [Line Items] | |
Lease term | 86 months |
Number of renewal terms | renewal_option | 2 |
Renewal term | 5 years |
Construction allowance | $ | $ 212 |
Operating Leases - Rental Expen
Operating Leases - Rental Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Rental Expense | $ 2,871 | $ 2,526 | $ 3,323 |
Operating Leases - Future Minim
Operating Leases - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2021 | $ 2,837 |
2022 | 2,910 |
2023 | 2,956 |
2024 | 2,621 |
2025 | 2,627 |
Thereafter | $ 16,716 |
Disclosure about Fair Value o_2
Disclosure about Fair Value of Financial Instruments - Nonrecurring Measurements (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | $ 55,454 | $ 20,889 |
Foreclosed assets held-for-sale | 2,347 | |
Quoted Prices in Active Markets for Identical Assets (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 | |
Significant Other Observable Inputs (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 | |
Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 55,454 | $ 20,889 |
Foreclosed assets held-for-sale | $ 2,347 |
Disclosure about Fair Value o_3
Disclosure about Fair Value of Financial Instruments - Unobservable Inputs (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans with appraisals more than one year old | $ 29,000 | |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 55,454 | $ 20,889 |
Foreclosed assets held-for-sale | 2,347 | |
Unobservable Inputs (Level 3) | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans | 55,454 | $ 20,889 |
Foreclosed assets held-for-sale | $ 2,347 | |
Unobservable Inputs (Level 3) | Marketability discount | Market comparable properties | Minimum | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans, measurement input | 0.01 | 0.10 |
Foreclosed assets held for sale, measurement input | 0.07 | |
Unobservable Inputs (Level 3) | Marketability discount | Market comparable properties | Maximum | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans, measurement input | 0.98 | 0.15 |
Foreclosed assets held for sale, measurement input | 0.10 | |
Unobservable Inputs (Level 3) | Marketability discount | Market comparable properties | Weighted Average | Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral-dependent impaired loans, measurement input | 0.24 | 0.12 |
Foreclosed assets held for sale, measurement input | 0.09 |
Disclosure about Fair Value o_4
Disclosure about Fair Value of Financial Instruments - Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Assets | ||
Restricted equity securities | $ 15,543 | $ 17,278 |
Carrying Amount | ||
Financial Assets | ||
Cash and cash equivalents | 408,810 | 187,320 |
Available-for-sale securities | 654,588 | 739,473 |
Loans, net of allowance for loan losses | 4,366,602 | 3,795,348 |
Restricted equity securities | 15,543 | 17,278 |
Interest receivable | 17,236 | 15,716 |
Equity securities | 13,436 | 2,161 |
Derivative assets | 24,094 | 9,838 |
Total | 5,500,309 | 4,767,134 |
Financial Liabilities | ||
Deposits | 4,694,740 | 3,923,759 |
Federal funds purchased and repurchase agreements | 2,306 | 14,921 |
Federal Home Loan Bank advances | 293,100 | 358,743 |
Other borrowings | 963 | 921 |
Interest payable | 2,163 | 4,584 |
Derivative liabilities | 24,454 | 9,907 |
Total | 5,017,726 | 4,312,835 |
Fair Value Measurements | ||
Financial Assets | ||
Cash and cash equivalents | 408,810 | 187,320 |
Available-for-sale securities | 654,588 | 739,473 |
Loans, net of allowance for loan losses | 4,351,970 | 3,810,818 |
Restricted equity securities | 15,543 | 17,278 |
Interest receivable | 17,236 | 15,716 |
Equity securities | 13,436 | 2,161 |
Derivative assets | 24,094 | 9,838 |
Total | 5,485,677 | 4,782,604 |
Financial Liabilities | ||
Deposits | 4,734,251 | 3,928,838 |
Federal funds purchased and repurchase agreements | 2,306 | 14,921 |
Federal Home Loan Bank advances | 309,020 | 357,859 |
Other borrowings | 2,024 | 2,147 |
Interest payable | 2,163 | 4,584 |
Derivative liabilities | 24,454 | 9,907 |
Total | 5,074,218 | 4,318,256 |
Fair Value Measurements | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Assets | ||
Cash and cash equivalents | 408,810 | 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 |
Equity securities | 0 | 0 |
Derivative assets | 0 | 0 |
Total | 408,810 | 187,320 |
Financial Liabilities | ||
Deposits | 718,459 | 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 | 718,459 | 521,826 |
Fair Value Measurements | Significant Other Observable Inputs (Level 2) | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 654,588 | 739,473 |
Loans, net of allowance for loan losses | 0 | 0 |
Restricted equity securities | 0 | 0 |
Interest receivable | 17,236 | 15,716 |
Equity securities | 2,247 | 2,161 |
Derivative assets | 24,094 | 9,838 |
Total | 698,165 | 767,188 |
Financial Liabilities | ||
Deposits | 0 | 0 |
Federal funds purchased and repurchase agreements | 2,306 | 14,921 |
Federal Home Loan Bank advances | 309,020 | 357,859 |
Other borrowings | 2,024 | 2,147 |
Interest payable | 2,163 | 4,584 |
Derivative liabilities | 24,454 | 9,907 |
Total | 339,967 | 389,418 |
Fair Value Measurements | Unobservable Inputs (Level 3) | ||
Financial Assets | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Loans, net of allowance for loan losses | 4,351,970 | 3,810,818 |
Restricted equity securities | 15,543 | 17,278 |
Interest receivable | 0 | 0 |
Equity securities | 11,189 | 0 |
Derivative assets | 0 | 0 |
Total | 4,378,702 | 3,828,096 |
Financial Liabilities | ||
Deposits | 4,015,792 | 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 | $ 4,015,792 | $ 3,407,012 |
Commitments and Credit Risk (De
Commitments and Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Total | $ 1,571,241 | $ 1,546,495 |
Commitments to originate loans | ||
Loss Contingencies [Line Items] | ||
Total | 99,596 | 134,652 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Total | 48,607 | 39,035 |
Lines of credit | ||
Loss Contingencies [Line Items] | ||
Total | 1,423,038 | 1,351,873 |
Future lease commitments | ||
Loss Contingencies [Line Items] | ||
Total | $ 0 | $ 20,935 |
Stocks Offerings and Repurchase
Stocks Offerings and Repurchases (Details) | Sep. 17, 2019USD ($)$ / sharesshares | Aug. 19, 2019USD ($)$ / sharesshares | Jan. 30, 2019USD ($)$ / sharesshares | Dec. 21, 2018 | Dec. 31, 2018 | Oct. 31, 2020USD ($) |
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 20,000,000 | |||||
Stock split ratio | 2 | 2 | ||||
Series A Preferred Shares | ||||||
Class of Stock [Line Items] | ||||||
Dividend rate of preferred stock | 7.00% | |||||
Preferred shares outstanding (in shares) | shares | 1,200,000 | |||||
Redemption price (in dollars per share) | $ / shares | $ 25 | |||||
Redemption amount of preferred shares | $ 30,000,000 | |||||
IPO and Underwriter's Overallotment Option | ||||||
Class of Stock [Line Items] | ||||||
Shares sold and issued (in shares) | shares | 6,594,362 | |||||
Total proceeds on sale of stock | $ 87,000,000 | |||||
Underwriters' Overallotment Option | ||||||
Class of Stock [Line Items] | ||||||
Shares sold and issued (in shares) | shares | 844,362 | 844,362 | ||||
Price of stock per share (in dollars per share) | $ / shares | $ 14.50 | $ 14.50 | ||||
Total proceeds on sale of stock | $ 11,000,000 |
Parent Company Condensed Fina_3
Parent Company Condensed Financial Statements - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||||
Cash | $ 408,810 | $ 187,320 | ||
Other assets | 55,962 | 28,886 | ||
Total assets | 5,659,303 | 4,931,233 | ||
Liabilities and stockholders’ equity | ||||
Trust preferred securities, net | 963 | 921 | ||
Total liabilities | 5,034,875 | 4,329,589 | ||
Stockholders’ equity | ||||
Common stock | 523 | 520 | ||
Treasury stock, at cost | (6,061) | 0 | ||
Additional paid-in capital | 522,911 | 519,870 | ||
Retained earnings | 77,652 | 64,803 | ||
Accumulated other comprehensive income | 29,403 | 16,451 | ||
Total stockholders’ equity | 624,428 | 601,644 | $ 490,336 | $ 287,147 |
Total liabilities and stockholders’ equity | 5,659,303 | 4,931,233 | ||
Parent Company | ||||
Assets | ||||
Cash | 46,676 | 52,478 | ||
Other assets | 1,756 | 1,364 | ||
Total assets | 628,594 | 605,796 | ||
Liabilities and stockholders’ equity | ||||
Trust preferred securities, net | 963 | 921 | ||
Other liabilities | 3,203 | 3,231 | ||
Total liabilities | 4,166 | 4,152 | ||
Stockholders’ equity | ||||
Common stock | 523 | 520 | ||
Treasury stock, at cost | (6,061) | 0 | ||
Additional paid-in capital | 522,911 | 519,870 | ||
Retained earnings | 77,652 | 64,803 | ||
Accumulated other comprehensive income | 29,403 | 16,451 | ||
Total stockholders’ equity | 624,428 | 601,644 | ||
Total liabilities and stockholders’ equity | 628,594 | 605,796 | ||
Banks | Parent Company | ||||
Assets | ||||
Investment in consolidated subsidiaries | 580,162 | 551,084 | ||
Nonbanks | Parent Company | ||||
Assets | ||||
Investment in consolidated subsidiaries | $ 0 | $ 870 |
Parent Company Condensed Fina_4
Parent Company Condensed Financial Statements - Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income | ||||
Other | $ 1,198 | $ 917 | $ 967 | |
Expense | ||||
Salaries and employee benefits | 57,747 | 57,114 | 56,118 | |
Occupancy, net | 8,701 | 8,349 | 8,214 | |
Other | 8,677 | 8,026 | 7,601 | |
Income tax benefit | $ (2,394) | 2,713 | 4,138 | (2,394) |
Net Income | 12,601 | 28,473 | 19,590 | |
Parent Company | ||||
Income | ||||
Earnings of consolidated subsidiaries | 13,682 | 28,814 | 24,330 | |
Management fees charged to subsidiaries | 8,520 | 7,500 | 6,000 | |
Other | (18) | (4) | 3 | |
Total income | 22,184 | 36,310 | 30,333 | |
Expense | ||||
Salaries and employee benefits | 5,143 | 4,584 | 8,139 | |
Occupancy, net | 405 | 275 | 368 | |
Other | 4,220 | 3,044 | 3,734 | |
Total expense | 9,768 | 7,903 | 12,241 | |
Income tax benefit | (185) | (66) | (1,498) | |
Net Income | $ 12,601 | $ 28,473 | $ 19,590 |
Parent Company Condensed Fina_5
Parent Company Condensed Financial Statements - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | |||
Net income | $ 12,601 | $ 28,473 | $ 19,590 |
Share-based incentive compensation | 4,363 | 4,725 | 4,604 |
Net cash provided by operating activities | 80,453 | 73,830 | 45,850 |
Investing Activities | |||
Net cash used in investing activities | (544,590) | (861,874) | (1,084,446) |
Financing Activities | |||
Redemption of preferred stock | 0 | (30,000) | 0 |
Dividends paid on preferred stock | 0 | (700) | (2,100) |
Issuance of common stock, net | 3 | 88,324 | 203,848 |
Common stock purchased and retired/ Open market common shares repurchases | (6,061) | (155) | (11,024) |
Proceeds from employee stock purchase plan | 151 | 547 | 367 |
Net decrease in employee receivables | 47 | 117 | 71 |
Net cash provided by (used in) financing activities | 685,627 | 758,823 | 1,124,317 |
Increase (Decrease) in Cash and Cash Equivalents | 221,490 | (29,221) | 85,721 |
Cash and Cash Equivalents, Beginning of Period | 187,320 | 216,541 | 130,820 |
Cash and Cash Equivalents, End of Period | 408,810 | 187,320 | 216,541 |
Parent Company | |||
Operating Activities | |||
Net income | 12,601 | 28,473 | 19,590 |
Earnings of consolidated subsidiaries | (13,682) | (28,814) | (24,330) |
Share-based incentive compensation | 1,917 | 1,974 | 2,224 |
Other adjustments | (412) | 5,343 | 1,367 |
Net cash provided by operating activities | 424 | 6,976 | (1,149) |
Investing Activities | |||
Decrease (increase) in investment in subsidiaries | 870 | (49,825) | (157,900) |
Net cash used in investing activities | 870 | (49,825) | (157,900) |
Financing Activities | |||
Redemption of preferred stock | 0 | (30,000) | 0 |
Dividends paid on preferred stock | 0 | (700) | (2,100) |
Issuance of common stock, net | 3 | 88,324 | 203,848 |
Common stock purchased and retired/ Open market common shares repurchases | (6,061) | (155) | (11,024) |
Acquisition of common stock for tax withholding obligations | (1,236) | (245) | (2,132) |
Proceeds from employee stock purchase plan | 151 | 547 | 367 |
Net decrease in employee receivables | 47 | 117 | 71 |
Net cash provided by (used in) financing activities | (7,096) | 57,888 | 189,030 |
Increase (Decrease) in Cash and Cash Equivalents | (5,802) | 15,039 | 29,981 |
Cash and Cash Equivalents, Beginning of Period | 52,478 | 37,439 | 7,458 |
Cash and Cash Equivalents, End of Period | $ 46,676 | $ 52,478 | $ 37,439 |