Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | STXB | |
Entity Registrant Name | Spirit of Texas Bancshares, Inc. | |
Entity Central Index Key | 0001499453 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 17,169,153 | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, no par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-38484 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 90-0499552 | |
Entity Address, Address Line One | 1836 Spirit of Texas Way | |
Entity Address, City or Town | Conroe | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77301 | |
City Area Code | 936 | |
Local Phone Number | 521-1836 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets: | |||
Cash and due from banks | $ 57,651,000 | $ 31,396,000 | |
Interest-bearing deposits in other banks | 82,448,000 | 231,638,000 | |
Total cash and cash equivalents | 140,099,000 | 263,034,000 | |
Investment securities: | |||
Available for sale securities, at fair value | 434,223,000 | 212,420,000 | |
Equity investments, at fair value | 23,877,000 | 24,000,000 | |
Total investment securities | 458,100,000 | 236,420,000 | |
Loans held for sale | 3,220,000 | 1,470,000 | |
Loans: | |||
Loans held for investment | [1] | 2,272,089,000 | 2,388,532,000 |
Less: allowance for loan and lease losses | (16,527,000) | (16,026,000) | |
Loans, net | 2,255,562,000 | 2,372,506,000 | |
Premises and equipment, net | 79,408,000 | 83,348,000 | |
Accrued interest receivable | 9,071,000 | 11,199,000 | |
Other real estate owned and repossessed assets | 140,000 | 133,000 | |
Goodwill | 77,681,000 | 77,681,000 | |
Core deposit intangible | 6,240,000 | 7,818,000 | |
SBA servicing asset | 2,567,000 | 2,953,000 | |
Deferred tax asset, net | 1,962,000 | 1,085,000 | |
Bank-owned life insurance | 31,161,000 | 15,969,000 | |
Federal Home Loan Bank and other bank stock, at cost | 5,734,000 | 5,718,000 | |
Right of use asset | 5,569,000 | ||
Other assets | 8,241,000 | 5,425,000 | |
Total assets | 3,084,755,000 | 3,084,759,000 | |
Transaction accounts: | |||
Noninterest-bearing | 772,032,000 | 727,543,000 | |
Interest-bearing | 1,192,067,000 | 1,092,934,000 | |
Total transaction accounts | 1,964,099,000 | 1,820,477,000 | |
Time deposits | 608,073,000 | 638,658,000 | |
Total deposits | 2,572,172,000 | 2,459,135,000 | |
Accrued interest payable | 860,000 | 1,303,000 | |
Short-term borrowings | 10,000,000 | ||
Long-term borrowings | 119,052,000 | 242,020,000 | |
Operating lease liability | 5,730,000 | ||
Other liabilities | 9,173,000 | 11,522,000 | |
Total liabilities | 2,706,987,000 | 2,723,980,000 | |
Commitments and contingencies (Note 14) | |||
Stockholders' Equity: | |||
Common stock, no par value; 50 million shares authorized; 18,470,371 and 18,329,593 shares issued; 17,164,103 and 17,081,831 shares outstanding | 301,202,000 | 298,850,000 | |
Retained earnings | 96,111,000 | 76,683,000 | |
Accumulated other comprehensive income (loss) | (2,690,000) | 1,005,000 | |
Treasury stock, 1,306,268 and 1,247,762 shares repurchased | (16,855,000) | (15,759,000) | |
Total stockholders' equity | 377,768,000 | 360,779,000 | |
Total liabilities and stockholders' equity | $ 3,084,755,000 | $ 3,084,759,000 | |
[1] | Organic loans balance includes $(10.2) million and $(8.2) million of deferred fees, cost, premium and discount as of June 30, 2021 and December 31, 2020, respectively. |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0 | $ 0 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 18,470,371 | 18,329,593 |
Common stock, shares, outstanding | 17,164,103 | 17,081,831 |
Treasury stock, shares repurchased | 1,306,268 | 1,247,762 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Interest and fees on loans | $ 30,995 | $ 29,912 | $ 60,824 | $ 57,321 |
Interest and dividends on investment securities | 1,641 | 457 | 2,756 | 961 |
Other interest income | 118 | 185 | 343 | 1,085 |
Total interest income | 32,754 | 30,554 | 63,923 | 59,367 |
Interest expense: | ||||
Interest on deposits | 2,081 | 3,945 | 4,408 | 8,452 |
Interest on FHLB advances and other borrowings | 972 | 558 | 1,975 | 1,066 |
Total interest expense | 3,053 | 4,503 | 6,383 | 9,518 |
Net interest income | 29,701 | 26,051 | 57,540 | 49,849 |
Provision for loan losses | 1,349 | 2,838 | 2,435 | 4,009 |
Net interest income after provision for loan losses | 28,352 | 23,213 | 55,105 | 45,840 |
Noninterest income: | ||||
Service charges and fees | 1,539 | 1,270 | 2,973 | 2,581 |
SBA loan servicing fees | 203 | 256 | 527 | 266 |
Mortgage referral fees | 384 | 357 | 658 | 559 |
Swap referral fees | 127 | 262 | 557 | 842 |
Gain on sales of loans, net | 326 | 254 | 790 | |
Gain on sales of investment securities | 5 | |||
Swap fees | 1,411 | 1,532 | ||
Other noninterest income | 194 | 94 | (29) | 239 |
Total noninterest income | 3,858 | 2,565 | 6,477 | 5,277 |
Noninterest expense: | ||||
Salaries and employee benefits | 9,603 | 7,946 | 18,823 | 19,735 |
Occupancy and equipment expenses | 2,354 | 2,761 | 5,016 | 5,076 |
Professional services | 457 | 716 | 981 | 1,611 |
Data processing and network | 931 | 849 | 2,160 | 1,592 |
Regulatory assessments and insurance | 483 | 379 | 1,018 | 781 |
Amortization of intangibles | 755 | 919 | 1,578 | 1,865 |
Advertising | 47 | 119 | 125 | 272 |
Marketing | 70 | 38 | 163 | 198 |
Telephone expense | 599 | 483 | 1,098 | 890 |
Conversion expense | 69 | 1,546 | ||
Other operating expenses | 1,486 | 1,825 | 2,457 | 3,498 |
Total noninterest expense | 16,785 | 16,104 | 33,419 | 37,064 |
Income before income tax expense | 15,425 | 9,674 | 28,163 | 14,053 |
Income tax expense | 3,015 | 1,980 | 5,667 | 2,285 |
Net income | $ 12,410 | $ 7,694 | $ 22,496 | $ 11,768 |
Earnings per common share: | ||||
Basic | $ 0.72 | $ 0.44 | $ 1.31 | $ 0.66 |
Diluted | $ 0.70 | $ 0.44 | $ 1.28 | $ 0.65 |
Weighted average common shares outstanding: | ||||
Basic | 17,152,217 | 17,581,959 | 17,128,233 | 17,883,034 |
Diluted | 17,627,958 | 17,612,919 | 17,572,066 | 17,999,206 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 12,410 | $ 7,694 | $ 22,496 | $ 11,768 |
Other comprehensive income (loss) : | ||||
Unrealized net holding gain (loss) on investment securities available for sale, net of (tax) and benefit of $(253), $(143), $1,163 and $(160), respectively | 976 | 540 | (4,513) | 605 |
Reclassification adjustment for realized gains on investment securities available for sale included in net income, net of taxes of $0, $0, $1 and $0, respectively | (4) | |||
Change in accumulated gain (loss) on effective cash flow hedge derivatives, net of (tax) and benefit of $125 and $(212), respectively | (442) | 822 | ||
Total other comprehensive income (loss) | 534 | 540 | (3,695) | 605 |
Total comprehensive income | $ 12,944 | $ 8,234 | $ 18,801 | $ 12,373 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized net holding gain (loss) on investment securities available for sale, (tax) and benefit | $ (253) | $ (143) | $ 1,163 | $ (160) |
Reclassification adjustment for realized gains on investment securities available for sale included in net income, tax | 0 | $ 0 | 1 | $ 0 |
Change in accumulated gain (loss) on effective cash flow hedge derivatives, net of (tax) and benefit | $ 125 | $ (212) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income |
Balance at Dec. 31, 2019 | $ 345,705 | $ 297,188 | $ 48,139 | $ (289) | $ 667 |
Balance (in shares) at Dec. 31, 2019 | 18,258,222 | ||||
Net income | 11,768 | 11,768 | |||
Exercise of stock options and warrants | 430 | $ 430 | |||
Exercise of stock options and warrants (in shares) | 34,500 | ||||
Stock-based compensation | 558 | $ 558 | |||
Treasury stock purchases | (11,489) | (11,489) | |||
Treasury stock purchases (in shares) | (924,149) | ||||
Other comprehensive income (loss) | 605 | 605 | |||
Balance at Jun. 30, 2020 | 347,577 | $ 298,176 | 59,907 | (11,778) | 1,272 |
Balance (in shares) at Jun. 30, 2020 | 17,368,573 | ||||
Balance at Mar. 31, 2020 | 345,817 | $ 297,966 | 52,213 | (5,094) | 732 |
Balance (in shares) at Mar. 31, 2020 | 17,969,012 | ||||
Net income | 7,694 | 7,694 | |||
Exercise of stock options and warrants | 29 | $ 29 | |||
Exercise of stock options and warrants (in shares) | 2,500 | ||||
Stock-based compensation | 181 | $ 181 | |||
Treasury stock purchases | (6,684) | (6,684) | |||
Treasury stock purchases (in shares) | (602,939) | ||||
Other comprehensive income (loss) | 540 | 540 | |||
Balance at Jun. 30, 2020 | 347,577 | $ 298,176 | 59,907 | (11,778) | 1,272 |
Balance (in shares) at Jun. 30, 2020 | 17,368,573 | ||||
Balance at Dec. 31, 2020 | 360,779 | $ 298,850 | 76,683 | (15,759) | 1,005 |
Balance (in shares) at Dec. 31, 2020 | 17,081,831 | ||||
Net income | 22,496 | 22,496 | |||
Common stock dividends declared | (3,068) | (3,068) | |||
Exercise of stock options and warrants | 1,867 | $ 1,867 | |||
Exercise of stock options and warrants (in shares) | 140,778 | ||||
Stock-based compensation | 485 | $ 485 | |||
Treasury stock purchases | (1,096) | (1,096) | |||
Treasury stock purchases (in shares) | (58,506) | ||||
Other comprehensive income (loss) | (3,695) | (3,695) | |||
Balance at Jun. 30, 2021 | 377,768 | $ 301,202 | 96,111 | (16,855) | (2,690) |
Balance (in shares) at Jun. 30, 2021 | 17,164,103 | ||||
Balance at Mar. 31, 2021 | 365,758 | $ 300,591 | 85,246 | (16,855) | (3,224) |
Balance (in shares) at Mar. 31, 2021 | 17,136,553 | ||||
Net income | 12,410 | 12,410 | |||
Common stock dividends declared | (1,545) | (1,545) | |||
Exercise of stock options and warrants | 333 | $ 333 | |||
Exercise of stock options and warrants (in shares) | 27,550 | ||||
Stock-based compensation | 278 | $ 278 | |||
Other comprehensive income (loss) | 534 | 534 | |||
Balance at Jun. 30, 2021 | $ 377,768 | $ 301,202 | $ 96,111 | $ (16,855) | $ (2,690) |
Balance (in shares) at Jun. 30, 2021 | 17,164,103 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Statement Of Stockholders Equity [Abstract] | ||
Common stock dividends declared per share | $ 0.09 | $ 0.07 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities: | ||
Net income | $ 22,496 | $ 11,768 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 2,435 | 4,009 |
Depreciation and amortization | 2,199 | 2,232 |
Net amortization (accretion) of premium (discount) on investment securities | 1,122 | (146) |
Amortization of core deposit intangible | 1,578 | 1,865 |
Accretion of discount on retained SBA loans | (506) | (565) |
Deferred tax expense | 204 | 620 |
Originations of loans held for sale | (3,796) | (13,828) |
Proceeds from loans held for sale | 2,209 | 10,945 |
Net gains on sale of loans held for sale | (155) | (790) |
Gain on sale of investment securities | (5) | |
Loss on sale of other real estate owned | 3 | 1 |
Gain on sale of premises and equipment | (124) | |
Fair value adjustment on SBA servicing asset | 424 | 429 |
Stock-based compensation | 485 | 558 |
Increase in cash surrender value of BOLI | (192) | (177) |
Net change in operating assets and liabilities: | ||
Net change in accrued interest receivable | 2,112 | (4,968) |
Net change in accrued interest payable | (440) | (233) |
Net change in other assets | (7,351) | 73 |
Net change in other liabilities | 3,381 | 484 |
Net cash provided by operating activities | 26,079 | 12,277 |
Cash Flows From Investing Activities: | ||
Purchases of investment securities available for sale | (755,341) | (33,995) |
Sales of investment securities available for sale | 6,914 | |
Paydown and maturities of investment securities available for sale | 519,820 | 41,451 |
Purchase of FHLB and other bank stock | (16) | (82) |
Sale of FHLB and other bank stock | 2,696 | |
Proceeds from the sale of loans held for investment | 45,193 | 50,208 |
Net change in loans | 66,135 | (453,767) |
Proceeds from the sale of other real estate owned | 130 | 34 |
Purchase of premises and equipment | (730) | (4,043) |
Proceeds from the sale of premises and equipment | 1,092 | |
Net cash received from branch sale | 60 | |
Net cash (paid) in business combination | (129,461) | |
Purchase of BOLI | (15,000) | |
Net cash used in investing activities | (131,743) | (526,959) |
Cash Flows From Financing Activities: | ||
Net change in deposits | 117,994 | 347,192 |
Proceeds from long-term borrowings | 51,000 | 105,780 |
Repayment of long-term borrowings | (172,136) | (26,429) |
Proceeds from short-term borrowings | 23,753 | |
Repayment of short-term borrowings | (10,000) | (13,753) |
Net change in secured borrowings | (1,832) | (1,415) |
Common stock dividends | (3,068) | |
Purchase of treasury stock | (1,096) | (11,489) |
Exercise of stock options and warrants | 1,867 | 430 |
Net cash (used in) provided by financing activities | (17,271) | 424,069 |
Net Change in Cash and Cash Equivalents | (122,935) | (90,613) |
Cash and Cash Equivalents at Beginning of Period | 263,034 | 325,957 |
Cash and Cash Equivalents at End of Period | 140,099 | 235,344 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 6,826 | 9,712 |
Income taxes paid | 7,300 | 2,000 |
Supplemental disclosure of noncash investing and financing activities: | ||
Transfer of loans to other real estate owned and repossessed assets | $ 140 | 125 |
Fair value of assets acquired in business combination, excluding cash | 259,416 | |
Goodwill recorded | 11,456 | |
Liabilities assumed in business combination | $ 141,412 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Spirit of Texas Bancshares, Inc. (“Spirit” or the “Company”) is a Texas corporation and registered bank holding company headquartered in Conroe, Texas that provides, through its bank subsidiary, Spirit of Texas Bank SSB (the “Bank”), a variety of financial services to individuals and corporate customers that are largely located or conducting business in Texas, and which operate in primarily agricultural, light industrial and commercial areas. Risks and Uncertainties COVID-19 Pandemic In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China, and has since spread worldwide. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. In addition, a new Delta variant of COVID-19, which appears to be the most transmissible variant to date, has begun to spread in the United States in 2021. The impact of the Delta variant cannot be predicted at this time, and could depend on numerous factors, including vaccination rates among the population, the effectiveness of COVID-19 vaccines against the Delta variant, and the response by governmental bodies and regulators. The ongoing COVID-19 pandemic has severely impacted the level of economic activity in the local, national and global economies and financial markets. During the first and second quarters of 2020, many businesses in Texas and throughout the United States were temporarily closed due to social distancing and/or shelter in place orders. As of June 30, 2021, businesses in Texas have been allowed to re-open; however, the Company and its customers continue to be adversely affected by the ongoing COVID-19 pandemic. The extent to which the COVID-19 pandemic negatively impacts the Company's business, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, is unknown at this time and will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. If the pandemic is sustained for a prolonged period of time, it may further adversely impact the Company and impair the ability of the Company's customers to fulfill their contractual obligations to the Company. This could materially and adversely affect the Company’s business operations, asset valuations, financial condition, and results of operations. For additional risks related to the ongoing COVID-19 pandemic, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2021, and the Company’s other filings with the SEC. In response to the pandemic, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). This legislation aims to provide relief for individuals and businesses that have been negatively impacted by the coronavirus pandemic. Section 4013 of the CARES Act provides financial institutions the opportunity to opt out of applying the “troubled debt restructuring” (“TDR”) accounting guidance in the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) 310-40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) December 31, 2020. Section 541 of the Consolidated Appropriations Act, 2021, amended Section 4013 of the CARES Act to extend this relief to the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) January 1, 2022. A financial institution may elect to suspend U.S. generally accepted accounting principles (“GAAP”) only for a loan that was not more than 30 days past due as of December 31, 2019. The Bank adopted this provision of the CARES Act. Additionally, the CARES Act contained provisions that impact federal income taxes including but not limited to an extension to pay and file federal tax returns, bonus depreciation on qualified improvement property and the ability to carry back certain net operating losses to a prior year. The Bank utilized the filing and payment extension and net operating loss carryback provisions of the CARES Act. Basis of Presentation The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and financial reporting policies the Company follows conform, in all material respects, to GAAP and to general practices with the financial services industry. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. Recently Issued Accounting Pronouncements ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)” – Issued in August 2020, Accounting Standards Update (“ASU”) No. 2020-06 addresses accounting complexities regarding convertible debt instruments and the derivatives scope exception for contracts in an entity’s own equity. The ASU reduces the number of available accounting models for convertible debt instruments in an attempt to reduce complexity and variation in practice. Additionally, the ASU improves the applicability of the derivatives scope exception for contracts in an entity’s own equity by clarifying settlement guidance and balance sheet classification. ASU 2020-06 is effective for public entities for fiscal years beginning after December 15, 2021 and for and for all other entities in fiscal years beginning after December 15, 2023. Management does not believe adoption of this ASU will have a material impact on the consolidated financial statements given that the Company does not currently hold any convertible debt instruments or any in-scope derivative contracts. ASU 2019-11, “Financial Instruments-Credit Losses: Codification Improvements Topic 326” – Issued in November 2019, ASU No. 2019-11 clarifies and addresses specific issues about certain aspects of the amendments in ASU 2016-13. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. See the discussions regarding the adoption of ASU 2016-13 below. ASU 2019-10, “Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” – Issued in November 2019, ASU No. 2019-10 addresses the change in philosophy to the effective dates including amendments issued after the issuance of the original ASUs. See the discussions regarding the adoption of ASU 2016-13 and ASU 2016-02 below. ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” – Issued in April 2019, ASU No. 2019-04 clarifies a number of issues discussed at the June 2018 and November 2018 Credit Losses Transition Resource Group meetings. The clarifications address a variety of identified issues including but not limited to the treatment of accrued interest receivable as it relates to the allowance for credit losses, transfers between loan classifications and categories, recoveries, and using projections of future interest rate environments in expected cash flow calculations. Management is evaluating these clarifications concurrently with our assessment of ASU 2016-13. ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Issued in June 2016, ASU 2016-13 will add FASB ASC Topic 326, “Financial Instruments-Credit Losses,” and finalizes amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.” The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The amendments of ASU 2016-13 eliminate the probable initial recognition threshold and, in turn, reflect an entity’s current estimate of all expected credit losses. ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down. The amendments of ASU 2016-13 were originally effective for public entities for interim and annual periods beginning after December 15, 2019 and for all other entities for periods beginning after December 15, 2020. Issued in November 2019, ASU 2019-10, “ ” alters the effective date of ASU 2016-13 for private companies. Under the provisions of ASU 2019-10, ASU 2016-13 is now effective for fiscal years beginning after December 15, 2022 including interim periods within those years for non-public business entities. Earlier application is permitted for interim and annual periods beginning after December 15, 2018. Management has elected to adopt this ASU using the updated private company effective date and is currently evaluating the impact this ASU will have on the consolidated financial statements and that evaluation will depend on economic conditions and the composition of the Company’s loan and lease portfolio at the time of adoption. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE 2. REVENUE RECOGNITION Spirit accounts for revenue from contracts with customers in accordance with FASB ASC Topic 606, “Revenue from Contracts with Customers,” which provides that revenue be recognized in a manner that depicts the transfer of goods or services to a customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Revenue from contracts with customers is recognized either over time as performance obligations are fulfilled, or at a point in time when control of the goods or services are transferred to the customer. Spirit’s noninterest income, excluding all of U.S. Small Business Administration (“SBA”) loan servicing fees, gain on sales of loans, net, and gain on sales of investment securities, are considered within the scope of FASB ASC Topic 606. Each category of in-scope revenue streams is discussed below. Deposit Accounts Core Service Charges Core service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts) and monthly service fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Deposit Account Transaction Based Fee Income Transaction based fee income on deposit accounts consists of variable revenue streams associated with activities which a deposit account holder may initiate on a transaction by transaction basis. The majority of transaction based fee income arises from interchange revenue received when deposit customers use a debit card for a point of sale transaction over a third-party card payment network. Interchange revenue is recorded net of related interchange expenses in the month in which the transaction occurs. Merchant services income is realized through a third party service provider who is contracted by the Bank under a referral arrangement. Such fees represent fees charged to merchants to process their debit card transactions, in addition to account management fees. The third-party service provider also issues credit cards as private label in the Company's name in exchange for a referral fee. Fees are earned and recorded in the same period as the referral occurs and the card is issued. Other transaction based service charges on deposit accounts include revenue from processing wire transfers, issuing cashier’s checks, processing check orders, and renting safe deposit boxes. The Company’s performance obligation related to these service charges is largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or charged to the customers’ account in the period the service is provided. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Referral Fees Spirit utilizes third-party vendors to provide services to the Company and its customers that are not economically feasible to provide on a stand-alone basis. These services include access to the secondary market for mortgage loans not held for investment and providing interest rate swaps to customers interested in hedging interest rate risk. In exchange for providing these third-party vendors with new customers, Spirit receives a referral fee. With respect to mortgage referral fees, the Company’s performance obligation is satisfied when the referred customer closes a mortgage loan with the third-party vendor and payment of the referral fee is typically received immediately. Swap referral fees are recognized when an existing or new loan customer enters into a swap agreement with the third-party vendor. Spirit is not a counterparty to the swap, and the performance obligation is satisfied at the time the swap agreement is signed. Payment of the referral fee is received within three days of the signed swap agreement. The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Non-Interest Income In-scope of Topic 606 Deposit accounts core service charges $ 379 $ 312 $ 735 $ 523 Deposit account transaction based fee income 1,160 958 2,238 2,058 Swap referral fees 127 262 557 842 Mortgage referral fees 384 357 658 559 Non-Interest Income (in-scope of Topic 606) 2,050 1,889 4,188 3,982 Non-Interest Income (out-of-scope of Topic 606) 1,808 676 2,289 1,295 Total Non-Interest Income $ 3,858 $ 2,565 $ 6,477 $ 5,277 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s non-interest revenue streams are largely based on transactional activity, or standard month-end revenue accruals. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. The Company did not have any signif icant contract balances at June 30, 202 1 or December 31, 20 20 . Contract Acquisition Costs In connection with the adoption of FASB ASC Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company has not capitalized any contract acquisition costs for the three or six months ending June 30, 2021 or 2020. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | NOTE 3. INVESTMENT SECURITIES The amortized cost, gross unrealized gains and losses and approximate fair values of securities available for sale are as follows: Amortized Unrealized Fair June 30, 2021 Cost Gains Losses Value (Dollars in thousands) Available for sale: State and municipal obligations 35,583 226 125 35,684 Residential mortgage-backed securities 360,336 1 5,682 354,654 Corporate bonds 42,723 1,242 80 43,885 Total available for sale $ 438,642 $ 1,469 $ 5,887 $ 434,223 Amortized Unrealized Fair December 31, 2020 Cost Gains Losses Value (Dollars in thousands) Available for sale: State and municipal obligations $ 36,258 $ 927 $ - $ 37,185 Residential mortgage-backed securities 132,130 278 267 132,142 Corporate bonds and other debt securities 42,768 433 109 43,093 Total available for sale $ 211,156 $ 1,638 $ 376 $ 212,420 Taxable interest and dividends on investment securities were $1.5 million and $419 thousand for the three months ended June 30, 2021 and 2020, respectively. Tax-exempt interest and dividends on investment securities were $156 thousand and $38 thousand for the three months ended June 30, 2021 and 2020, respectively. Taxable interest and dividends on investment securities were $2.4 million and $884 thousand for the six months ended June 30, 2021 and 2020, respectively. Tax-exempt interest and dividends on investment securities were $313 thousand and $77 thousand for the six months ended June 30, 2021 and 2020, respectively. There were $248.1 million and $91.5 million of securities pledged to collateralize public funds at June 30, 2021 The amortized cost and estimated fair value of securities available for sale, by contractual maturity, are as follows for the period presented: Amortized Fair June 30, 2021 Cost Value (Dollars in thousands) Available for sale: Due in one year or less $ 318 $ 318 Due after one year through five years 9,476 9,590 Due after five years through ten years 31,014 32,109 Due after ten years 37,498 37,552 Residential mortgage-backed securities 360,336 354,654 Total available for sale $ 438,642 $ 434,223 For purposes of the maturity table, residential mortgage-backed securities, the principal of which are repaid periodically, are presented as a single amount. The expected lives of these securities will differ from contractual maturities because borrowers may have the right to prepay the underlying loans with or without prepayment penalties. The following tables present the estimated fair values and gross unrealized losses on investment securities available for sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position as of the periods presented: Less than 12 Months 12 Months or More Total June 30, 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Treasury securities $ — $ — $ — $ — $ — $ — State and municipal obligations 14 — 12,995 125 13,009 125 Residential mortgage-backed securities — — 354,553 5,682 354,553 5,682 Corporate bonds — — 1,011 80 1,011 80 Total available for sale $ 14 $ — $ 368,559 $ 5,887 $ 368,573 $ 5,887 Less than 12 Months 12 Months or More Total December 31, 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Treasury securities $ — $ — $ — $ — $ - $ - State and municipal obligations — — — — — — Residential mortgage-backed securities 53,598 267 — — 53,598 267 Corporate bonds and other debt securities 17,087 109 — — 17,087 109 Total available for sale $ 70,685 $ 376 $ - $ - $ 70,685 $ 376 At June 30, 2021, the Company’s securities portfolio consisted of 109 securities, 73 of which were in an unrealized loss position. The Company monitors its investment securities for other-than-temporary-impairment (“OTTI”). Impairment is evaluated on an individual security basis considering numerous factors, and its relative significance. The Company has evaluated the nature of unrealized losses in the investment securities portfolio to determine if OTTI exists. The unrealized losses relate to changes in market interest rates and specific market conditions that do not represent credit-related impairments. Furthermore, the Company does not intend to sell nor is it more likely than not that it will be required to sell these investments before the recovery of their amortized cost basis. Management has completed an assessment of each security in an unrealized loss position for credit impairment and has determined that no individual security was other-than-temporarily impaired at June 30, 2021. The following describes the basis under which the Company has evaluated OTTI: Municipal, Residential Mortgage-Backed Securities (“MBS”), and Corporate Debt: The unrealized losses associated with state and municipal obligations, residential mortgage-backed securities, and corporate bonds and other debt securities are primarily driven by changes in interest rates. At June 30, 2021, the unrealized losses for these securities resulted primarily from changes in interest rates and spreads. There were no sales of investment securities for the three months ended June 30, 2021 or 2020. Sales proceeds from the sale of available for sale securities for the six months ended June 30, 2021 were $6.9 million, which resulted in gross realized gains of $5 thousand. There were no securities sold for the six months ended June 30, 2020. Equity Investments: Equity investments at fair value consist of an investment in the CCM Community Impact Bond Fund. At June 30, 2021 and December 31, 2020, the fair value of equity securities totaled $23.9 million and $24.0 million, respectively. Subsequent changes in fair value are recognized in other noninterest income. For the three months ended June 30, 2021 a loss of $67 thousand was included in other noninterest income. For the six months ended June 30, 2021, a loss of $333 thousand was included in other non-interest income. The Company did not hold any equity securities for the three or six months ended June 30, 2020. As such, there were no fair value changes for the three or six months ended June 30, 2020. |
Loans
Loans | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans | NOTE 4. LOANS Total loans held in portfolio consisted of the following at June 30, 2021 and December 31, 2020: June 30, 2021 Acquired Loans (1) Organic Loans Total Loans (Dollars in thousands) Commercial and industrial loans (2) $ 39,073 $ 496,535 $ 535,608 Real estate: 1-4 single family residential loans 76,023 280,480 356,503 Construction, land and development 51,718 293,702 345,420 Commercial real estate loans (including multifamily) 300,039 664,526 964,565 Consumer loans and leases 1,854 6,590 8,444 Municipal and other loans 4,850 56,699 61,549 Total loans held in portfolio (3) $ 473,557 $ 1,798,532 $ 2,272,089 December 31, 2020 Acquired Loans (1) Organic Loans Total Loans (Dollars in thousands) Commercial and industrial loans (2) $ 53,857 $ 521,129 $ 574,986 Real estate: 1-4 single family residential loans 93,840 270,299 364,139 Construction, land and development 131,734 283,754 415,488 Commercial real estate loans (including multifamily) 333,489 623,254 956,743 Consumer loans and leases 3,088 8,650 11,738 Municipal and other loans 6,103 59,335 65,438 Total loans held in portfolio (3) $ 622,111 $ 1,766,421 $ 2,388,532 (1) Acquired loans include loans acquired in the acquisitions of Comanche, National Corporation, First Beeville Financial Corporation, and Chandler Bancorp, Inc. and its subsidiary, Citizens State Bank (together, “Citizens”), and the Simmons Bank branch acquisition. All loans originated after acquisition close date are included in organic loans. (2 ) Organic loans balance includes $64.9 million and $70.8 million of the unguaranteed portion of SBA loans as of June 30, 2021 and December 31, 2020, respectively. (3 ) Organic loans balance includes $(10.2) million and $(8.2) million of deferred fees, cost, premium and discount as of June 30, 2021 and December 31, 2020, respectively. At June 30, 2021 and December 31, 2020, the Company had pledged loans as collateral for Federal Home Loan Bank (“FHLB”) advances of $969.6 million and $927.3 million, respectively. Additionally, at June 30, 2021 and December 31, 2020, the Company had pledged loans as collateral associated with the Paycheck Protection Program Liquidity Facility (“PPPLF”) of $37.2 million and $149.8 million, respectively. The Company originates and sells loans secured by the SBA. The Company retains the unguaranteed portion of the loan and servicing on the loans sold and receives a fee based upon the principal balance outstanding. During the three months ended June 30, 2021, the Company did not have any loan sales. During the three months ended June 30, 2020, the Company sold approximately During the fourth quarter of 2020 and continuing into the first quarter of 2021, we originated loans to qualified mid-sized businesses under the Main Street Lending Program administered by the Federal Reserve Bank of Boston special purpose vehicle. Under the terms of the program 95 percent of the loan balance is purchased by the Federal Reserve Bank of Boston special purpose vehicle one day following origination. During the three months ended June 30, 2021, the Company did not have any Main Street loan sales. approximately $ 10.5 million of loans to the Federal Reserve Bank of Boston special purpose vehicle. The loan sales resulted in realized gains of $ 99 thousand for the six months ended June 30, 2021. In April 2020, we began originating loans to qualified small businesses under the Paycheck Protection Program (the “PPP”) administered by the SBA under the provisions of the CARES Act. Total PPP loans originated by the Bank and not forgiven by the SBA as of June 30, 2021 were $187.7 million and are included in the commercial and industrial segment of our loan portfolio. These loans are fully guaranteed by the SBA, carry a contractual term of two to five years, depending on the date of origination, and an interest rate of 1.00%. In conjunction with originating PPP loans, the Company has $4.8 million of deferred origination fees, net of costs at June 30, 2021 which will be recognized over the 2.2 year weighted average life of the loans or at the date of forgiveness by the SBA if earlier. In conjunction with the PPP, we are also currently participating in the PPPLF which extends loans to banks who are loaning money to small businesses under the PPP. The amount of borrowings under the PPPLF as of June 30, 2021 was $37.2 million and is non-recourse and secured by the amount of the PPP loans we originate. The maturity date of a borrowing under the PPPLF is equal to the maturity date of the PPP loan pledged to secure the borrowing and would be accelerated (i) if the underlying PPP loan goes into default and is sold to the SBA to realize on the SBA guarantee or (ii) to the extent that any loan forgiveness reimbursement is received from the SBA. Borrowings under the PPPLF are included in long-term liabilities on the consolidated balance sheet and bear interest at a rate of 0.35%. Additionally, a bank may exclude all PPP loans pledged as collateral to the PPPLF from its average total consolidated assets for the purposes of calculating its leverage ratio, while PPP loans that are not pledged as collateral to the PPPLF will be included. Due to the rights retained on certain loan participations sold, the Company is deemed to have retained effective control over these loans under ASC 860, “Transfers and Servicing.” These loans can no longer be reported as sold, and must be reported on the balance sheet as loans held for investment regardless of whether the Company intends to exercise its rights. These loans are reported as loans held for investment with the offsetting liability recorded as long-term borrowings. The amount of secured borrowings included in loans held for investment and long-term borrowings at June 30, 2021 and December 31, 2020 was $2.2 million and $4.0 million, respectively. Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of loans serviced for others, including SBA loans, were $173.3 million and $193.3 million at June 30, 2021 and December 31, 2020, respectively. In the ordinary course of business, the Company makes loans to executive officers and directors. Loans to these related parties, including companies in which they are principal owners, are as follows for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands) Principal outstanding, beginning of year $ 6,778 $ 7,447 $ 7,581 $ 6,005 Additions (reductions) of affiliations — — — — New loans made in current year 80 1,130 1,052 2,849 Repayments (787 ) (1,649 ) (2,562 ) (1,926 ) Principal outstanding, end of year $ 6,071 $ 6,928 $ 6,071 $ 6,928 There were $2.0 million in unfunded commitments to related parties at June 30, 2021. There were $1.8 million in unfunded commitments to related parties at December 31, 2020. |
Allowance for Loan and Lease Lo
Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses | NOTE 5. ALLOWANCE FOR LOAN AND LEASE LOSSES The allowance for loan and lease losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses that have been incurred within the existing portfolio of loans. The allowance, in the judgment of management, is necessary to reserve for estimated loan losses and risks inherent in the loan portfolio. The methodology is based on historical loss experience by type of credit and internal risk grade, changes in the composition and volume of the portfolio, and specific loss allocations, with adjustments for current events and conditions. The Company’s process for determining the appropriate level of the allowance for loan and lease losses is designated to account for credit deterioration as it occurs. At June 30, 2021, purchased credit impaired loans totalled $547 thousand and the Company believes that all contractual principal and interest will be received. Purchased credit impaired loans are not included in the impaired loans disclosure within this Note. At June 30, 2021 no provision for loan losses has been recorded for PPP loans. PPP loans are fully guaranteed by the SBA and therefore carry a zero percent reserve. PPP loans also carry a put-back provision in the event that a PPP loan is fraudulently originated and the Bank is at fault. Management does not deem a put-back reserve necessary at this time. The following tables present information related to allowance for loan and lease losses for the periods presented: Allowance Rollforward Three Months Ended June 30, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 9,682 $ (1,136 ) $ 17 $ 1,183 $ 9,746 Real estate: 1-4 single family residential loans 84 (12 ) 1 66 139 Construction, land and development loans 1,886 — — (589 ) 1,297 Commercial real estate loans (including multifamily) 4,456 — — 683 5,139 Consumer loans and leases 113 (14 ) 6 (11 ) 94 Municipal and other loans 93 — 2 17 112 Ending allowance balance $ 16,314 $ (1,162 ) $ 26 $ 1,349 $ 16,527 Allowance Rollforward Three Months Ended June 30, 2020 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 4,484 $ (455 ) $ 5 $ 2,279 $ 6,313 Real estate: 1-4 single family residential loans 35 — — 72 107 Construction, land and development loans 1,293 — — (35 ) 1,258 Commercial real estate loans (including multifamily) 1,749 — — 414 2,163 Consumer loans and leases 51 (107 ) 2 103 49 Municipal and other loans 8 — 2 5 15 Ending allowance balance $ 7,620 $ (562 ) $ 9 $ 2,838 $ 9,905 Allowance Rollforward Six Months Ended June 30, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 9,086 $ (1,946 ) $ 34 $ 2,572 $ 9,746 Real estate: 1-4 single family residential loans 147 (13 ) 1 4 139 Construction, land and development loans 1,744 — — (447 ) 1,297 Commercial real estate loans (including multifamily) 4,843 — — 296 5,139 Consumer loans and leases 145 (33 ) 20 (38 ) 94 Municipal and other loans 61 — 3 48 112 Ending allowance balance $ 16,026 $ (1,992 ) $ 58 $ 2,435 $ 16,527 Allowance Rollforward Six Months Ended June 30, 2020 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 4,078 $ (709 ) $ 9 $ 2,935 $ 6,313 Real estate: 1-4 single family residential loans 31 — — 76 107 Construction, land and development loans 1,055 — — 203 1,258 Commercial real estate loans (including multifamily) 1,451 — — 712 2,163 Consumer loans and leases 68 (159 ) 14 126 49 Municipal and other loans 54 — 4 (43 ) 15 Ending allowance balance $ 6,737 $ (868 ) $ 27 $ 4,009 $ 9,905 Credit Quality Indicators In evaluating credit risk, the Company looks at multiple factors; however, management considers delinquency status to be the most meaningful indicator of the credit quality of 1-4 single family residential, home equity loans and lines of credit and consumer loans. Delinquency statistics are updated at least monthly. Internal risk ratings are considered the most meaningful indicator of credit quality for commercial, construction, land and development and commercial real estate loans. Internal risk ratings are updated on a continuous basis. The following tables present an aging analysis of the recorded investment for delinquent loans by portfolio and segment for the periods presented: Accruing June 30, 2021 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 530,361 $ 70 $ 278 $ — $ 4,899 $ 535,608 Real estate: 1-4 single family residential loans 355,733 411 112 — 247 356,503 Construction, land and development 342,852 2,568 — — — 345,420 Commercial real estate loans (including multifamily) 961,510 761 — — 2,294 964,565 Consumer loans and leases 8,357 21 — — 66 8,444 Municipal and other loans 61,509 24 — — 16 61,549 Total loans $ 2,260,322 $ 3,855 $ 390 $ — $ 7,522 $ 2,272,089 Accruing December 31, 2020 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 567,491 $ 2,295 $ 271 $ - $ 4,929 $ 574,986 Real estate: 1-4 single family residential loans 362,505 99 28 — 1,507 364,139 Construction, land and development 415,135 136 — — 217 415,488 Commercial real estate loans (including multifamily) 953,823 1,084 — — 1,836 956,743 Consumer loans and leases 11,618 8 4 — 108 11,738 Municipal and other loans 65,416 — 22 — — 65,438 Total loans $ 2,375,988 $ 3,622 $ 325 $ - $ 8,597 $ 2,388,532 There were no loans 90 days or more past due and still accruing at June 30, 2021. There were no loans 90 days or more past due and still accruing at December 31, 2020. All loans with active deferral periods related to the COVID-19 pandemic are excluded from non-accrual and days past due reporting. At June 30, 2021, non-accrual loans that were 30 to 59 days past due equaled $1.3 million, non-accrual loans that were 60 to 89 days past due equaled $871 thousand and non-accrual loans that were 90 days or more past due equaled $2.3 million. At December 31, 2020, non-accrual loans that were 30 to 59 days past due were $930 thousand, non-accrual loans that were 60 to 89 days past due equaled $545 thousand, and non-accrual loans that were 90 days or more past due equaled $2.2 million. Loans exhibiting potential credit weaknesses that deserve management’s close attention and that if left uncorrected may result in deterioration of the repayment capacity of the borrower are categorized as special mention. Loans with well-defined credit weaknesses including payment defaults, declining collateral values, frequent overdrafts, operating losses, increasing balance sheet leverage, inadequate cash flow, project cost overruns, unreasonable construction delays, past due real estate taxes or exhausted interest reserves are assigned an internal risk rating of substandard. Loans classified as substandard can be on an accrual or non-accrual basis, as determined by its unique characteristics. A loan with a weakness so severe that collection in full is highly questionable or improbable will be assigned an internal risk rating of doubtful. The following tables summarize the Company’s loans by key indicators of credit quality for the periods presented: June 30, 2021 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 517,304 $ 1,985 $ 16,303 $ 16 Real estate: 1-4 single family residential loans 355,789 — 714 — Construction, land and development 342,851 2,569 — — Commercial real estate loans (including multifamily) 908,374 42,672 13,519 — Consumer loans and leases 8,378 — 61 5 Municipal and other loans 57,445 4,012 92 — Total loans $ 2,190,141 $ 51,238 $ 30,689 $ 21 December 31, 2020 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 554,685 $ 1,332 $ 18,723 $ 246 Real estate: 1-4 single family residential loans 360,337 — 3,802 — Construction, land and development 411,151 4,120 217 — Commercial real estate loans (including multifamily) 935,865 10,913 9,965 — Consumer loans and leases 11,626 — 112 — Municipal and other loans 62,273 3,085 80 — Total loans $ 2,335,937 $ 19,450 $ 32,899 $ 246 Internal risk ratings and other credit metrics are key factors in identifying loans to be individually evaluated for impairment and impact management’s estimates of loss factors used in determining the amount of the allowance for loan and lease losses. The following tables show the Company’s investment in loans disaggregated based on the method of evaluating impairment for the periods presented: Loans - Recorded Investment Allowance for Credit Loss June 30, 2021 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 4,942 $ 530,666 $ 3,376 $ 6,370 Real estate: 1-4 single family residential loans 372 356,131 1 138 Construction, land and development — 345,420 — 1,297 Commercial real estate loans (including multifamily) 2,294 962,271 508 4,631 Consumer loans and leases 66 8,378 66 28 Municipal and other loans 69 61,480 53 59 Total loans $ 7,743 $ 2,264,346 $ 4,004 $ 12,523 Loans - Recorded Investment Allowance for Credit Loss December 31, 2020 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 4,978 $ 570,008 $ 3,488 $ 5,598 Real estate: 1-4 single family residential loans 1,637 362,502 1 146 Construction, land and development 217 415,271 — 1,744 Commercial real estate loans (including multifamily) 1,837 954,906 500 4,343 Consumer loans and leases 108 11,630 90 55 Municipal and other loans 52 65,386 — 61 Total loans $ 8,829 $ 2,379,703 $ 4,079 $ 11,947 The following tables set forth certain information regarding the Company’s impaired loans that were evaluated for specific reserves for the periods presented: Impaired Loans - With Allowance Impaired Loans - With no Allowance June 30, 2021 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 3,781 $ 3,825 $ 3,376 $ 1,161 $ 1,164 Real estate: 1-4 single family residential loans 4 3 1 368 369 Construction, land and development — — — — — Commercial real estate loans (including multifamily) 847 853 508 1,447 1,446 Consumer loans and leases 66 66 66 — — Municipal and other loans 69 70 53 — — Total loans $ 4,767 $ 4,817 $ 4,004 $ 2,976 $ 2,979 Impaired Loans - With Allowance Impaired Loans - With no Allowance December 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 4,407 $ 4,453 $ 3,488 $ 566 $ 571 Real estate: 1-4 single family residential loans 5 5 1 1,632 1,612 Construction, land and development — — — 217 215 Commercial real estate loans (including multifamily) 1,308 1,281 500 528 528 Consumer loans and leases 90 90 90 24 28 Municipal and other loans — — — 52 52 Total loans $ 5,810 $ 5,829 $ 4,079 $ 3,019 $ 3,006 Three Months Ended June 30, 2021 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Commercial and industrial loans $ 5,497 $ 3,590 $ — Real estate: 1-4 single family residential loans 671 — 1,547 — Construction, land and development — — 216 — Commercial real estate loans (including multifamily) 1,375 — 2,232 — Consumer loans and leases 57 — 11 — Municipal and other loans 66 — — — Total loans $ 7,666 $ — $ 7,596 $ — Troubled Debt Restructurings: The following table provides a summary of troubled debt restructurings (“TDRs”) based upon delinquency status, all of which are considered impaired, for the periods presented: June 30, 2021 December 31, 2020 Number of contracts Recorded Investment Number of contracts Recorded Investment (Dollars in thousands) Performing TDRs: Commercial and industrial loans 2 $ 43 2 $ 49 Real estate: 1-4 single family residential loans 2 124 3 130 Construction, land and development — — — — Commercial real estate loans (including multifamily) — — — — Consumer loans and leases — — — — Municipal and other loans 1 53 1 52 Total performing TDRs 5 220 6 231 Nonperforming TDRs 14 870 14 652 Total TDRs 19 $ 1,090 20 $ 883 Allowance attributable to TDRs $ 408 $ 421 The following table summarizes TDRs, and includes newly designated TDRs as well as modifications made to existing TDRs, for the periods presented. Modifications may include, but are not limited to, granting a material extension of time, entering into a forbearance agreement, adjusting the interest rate, accepting interest only payments for an extended period of time, a change in the amortization period or a combination of any of these. Post-modification balances represent the recorded investment at the end of Day 2 in which the modification was made. The CARES Act includes a provision for the Company to opt out of applying the TDR accounting guidance in ASC 310-40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (i) January 1, 2022 or (ii) 60 days after the termination of the COVID-19 national emergency are eligible for this relief if the related loans were not more than 30 days past due as of December 31, 2019. Loans with an unpaid principal balance of $2.6 million remained in active deferral periods at June 30,2021. Three Months Ended June 30, 2021 2020 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance (Dollars in thousands) Commercial and industrial loans — $ — $ — $ — 1 $ 276 $ 276 $ 276 Real estate: 1-4 single family residential loans — — — — — — — — Construction, land and development — — — — — — — — Commercial real estate loans (including multifamily) — — — — — Consumer loans and leases — — — — — — — — Municipal and other loans — — — — — — — — For the Six Months Ended June 30, 2021 2020 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance (Dollars in thousands) Commercial and industrial loans — $ — $ — $ — 5 $ 444 $ 444 $ 332 Real estate: 1-4 single family residential loans — — — — — — — — Construction, land and development — — — — — — — — Commercial real estate loans (including multifamily) 2 321 321 — — — — — Consumer loans and leases — — — — — — — — Municipal and other loans — — — — — — — — There have been no defaults of TDRs that took place within the three or six months ended June 30, 2021 and 2020. |
Goodwill and Intangibles
Goodwill and Intangibles | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | NOTE 6. GOODWILL AND INTANGIBLES Goodwill and other intangible assets, which consist of core deposit intangibles, are summarized as follows: Six Months Ended June 30, 2021 Year Ended December 31, 2020 (Dollars in thousands) Beginning goodwill $ 77,681 $ 68,503 Arising from business combination — 11,456 Measurement Period Adjustments — (2,278 ) Ending goodwill $ 77,681 $ 77,681 Core deposit intangible 19,722 19,722 Arising from business combination — — Less: Accumulated amortization (13,482 ) (11,904 ) Core deposit intangible, net $ 6,240 $ 7,818 Amortization expense for core deposit intangibles for the three months ended June 30, 2021 and 2020 totaled $755 thousand and $919 thousand, respectively. Amortization expense for core deposit intangibles for the six months ended June 30, 2021 and 2020 totaled $1.6 million and $1.9 million, respectively. The estimated amount of amortization expense for core deposit intangibles to be recognized over the next five fiscal years is as follows: Type of intangibles Remainder of 2021 2022 2023 2024 2025 2026 (Dollars in thousands) Core deposit intangible $ 1,450 $ 2,219 $ 1,575 $ 745 $ 200 $ 51 |
SBA Servicing Asset
SBA Servicing Asset | 6 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
SBA Servicing Asset | NOTE 7. SBA SERVICING ASSET SBA servicing assets are recognized separately when rights are acquired through the sale of the guaranteed portion of SBA loans. These servicing rights are initially measured at fair value at the date of sale and included in the gain on sale. Updated fair values are obtained from an independent third party on a quarterly basis and adjustments are presented in SBA loan servicing fees on the consolidated statements of income. To determine the fair value of SBA servicing rights, the Company uses market prices for comparable servicing contracts, when available, or alternatively, uses a valuation model that calculates the present value of estimated future net servicing income. Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balances of SBA loans serviced for others were $173.3 million and $193.3 million at June 30, 2021 and December 31, 2020, respectively. SBA loan servicing fees were $ thousand and $ 256 thousand for the three months ended June 30 , 20 2 1 and 20 20 , respectively. SBA loan servicing fees were $ 527 thousand and $ 266 thousand for the six months ended June 30, 2021 and 2020, respectively. The risks inherent in the SBA servicing asset relate primarily to changes in prepayments that result from shifts in interest rates. The following summarizes the activity pertaining to SBA servicing rights, which are in the consolidated balance sheets, for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands) Beginning balance $ 2,821 $ 3,055 $ 2,953 $ 3,355 Origination of servicing assets — 84 38 189 Change in fair value: Due to run-off (135 ) (135 ) (270 ) (275 ) Due to market changes (119 ) 111 (154 ) (154 ) Ending balance $ 2,567 $ 3,115 $ 2,567 $ 3,115 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Leases | NOTE 8. LEASES ASU 2016-02, “Leases (Topic 842),” became effective for the Company on January 1, 2021. The Company adopted FASB ASC Topic 842 utilizing the modified retrospective transition approach prescribed by ASU 2018-11, “ Leases (Topic 842): Targeted Improvements.” Once the Company identifies and determines certain contracts are leases according to FASB ASC Topic 842, the Company classifies it as an operating or a finance lease and recognizes a right-of-use (“ROU”) asset and a lease liability at the lease commencement date. The lease liability represents the present value of the lease payments that remain unpaid as of the commencement date and ROU is the initial lease liability recognized for the lease plus any lease payments made to the lessor at or before the commencement date as well as any initial direct costs less any lease incentives received. The Company does not have any finance leases at June 30, 2021. The Company has operating leases for its office branches, operations offices, and certain equipment utilized at those properties. Property leases typically have original lease terms ranging from 1 to 10 years, some of which may also include an option to extend the lease beyond the original lease term. The Company includes renewal and termination options within the lease term if deemed reasonably certain of exercise. The remainder of the lease portfolio is comprised of equipment leases that have remaining lease terms of 1 year to 3 years. Operating leases may vary in term and, from time to time, include incentives and/or rent escalations. Examples of these type of incentives may include periods of “free” rent and leasehold improvement incentives. The Company recognizes incentives on a straight-line basis over the lease term as a reduction or increase to rent expense, as applicable, within occupancy and equipment expenses in the consolidated statements of income. As of June 30, 2021, the Company’s operating lease ROU asset and operating lease liability totaled $5.6 million and $5.7 million, respectively. The Company’s leases typically have one or more renewal options included in the lease contract. Due to the nature of the Company’s leases, for leases with renewal options available, the Company evaluates each lease to determine if exercise of the renewal option is reasonably certain. In order to calculate its ROU assets and lease liabilities, FASB ASC Topic 842 requires the Company to use the rate of interest implicit in the lease when readily determinable. If the rate implicit in the lease is not readily determinable, the Company is required to use its incremental borrowing rate, which is the rate of interest the Company would have to pay to borrow on a collateralized basis over a similar term in a similar economic environment. The Company was unable to determine the implicit interest rate in any of the leases and therefore used its incremental borrowing rate. The table below presents additional information related to the Company’s leases as of June 30, 2021: June 30, 2021 Weighted-average remaining term (in years) - operating leases 4.30 Weighted-average discount rate - operating leases (1) 4.00 % (1) The incremental borrowing rate used to calculate the lease liability was determined based on facts and circumstances of the economic environment and the Company's credit standing as of the effective date of ASC 842. Additionally, the total lease term and total lease payments were also considered in determining the rate. The Company’s leases have remaining lease terms of 1 to 10 years, with a weighted average lease term of 4.30 years at June 30, 2021. The following is a schedule of the Company’s operating lease liabilities by contractual maturity as of June 30, 2021: (Dollars in thousands) 2021 (excluding 6 months ended June 30, 2021) 1,113 2022 1,784 2023 1,009 2024 812 2025 625 Thereafter 883 Total Lease Payments 6,226 Less: Imputed Interest 496 Total present value of lease liabilities 5,730 Total operating lease costs of $513 thousand were included as part of occupancy and equipment expense for the three months ended June 30, 2021. Total operating lease costs of $1.3 million were included as part of occupancy and equipment expense for the six months ended June 30, 2021. The below table shows the supplemental cash flow information related to the Company’s operating leases for the three and six months ended June 30, 2021: Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 (Dollars in thousands) Operating cash flows (fixed payments) included in occupancy and equipment expenses $ 559 $ 1,130 Operating cash flows (liability reduction) included in occupancy and equipment expenses 501 839 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Deposits By Component Alternative [Abstract] | |
Deposits | NOTE 9. DEPOSITS The following table sets forth the Company’s deposits by category for the periods presented: June 30, 2021 December 31, 2020 (Dollars in thousands) Noninterest-bearing demand deposits $ 772,032 $ 727,543 Interest-bearing demand deposits 529,513 472,075 Interest-bearing NOW accounts 10,763 10,288 Savings and money market accounts 651,791 610,571 Time deposits 608,073 638,658 Total deposits $ 2,572,172 $ 2,459,135 Time deposits $100,000 and greater $ 496,588 $ 515,738 Time deposits $250,000 and greater 195,533 190,236 Related party deposits (executive officers and directors) 14,763 18,767 The aggregate amount of overdraft demand deposits reclassified to loans was $138 thousand and $88 thousand at June 30, 2021 and December 31, 2020, respectively. The aggregate amount of maturities for time deposits for each of the five years following the latest balance sheet date totaled $504.5 million, $78.1 million, $9.8 million, $6.8 million and $8.8 million, respectively. The Company held no brokered certificates of deposit as of June 30, 2021 and December 31, 2020. |
FHLB and Other Borrowings
FHLB and Other Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
FHLB and Other Borrowings | NOTE 10. FHLB AND OTHER BORROWINGS The FHLB allows us to borrow, both short and long-term, on a blanket floating lien status collateralized by certain securities and loans. At June 30, 2021 and December 31, 2020, the Company had pledged loans as collateral for FHLB advances of $969.6 million and $927.3 million, respectively. At June 30, 2021, the Company had additional capacity to borrow from the FHLB of $778.2 million. Short-term borrowings Short-term FHLB borrowings : At June 30, 2021, the Company had no short-term FHLB borrowings. As of December 31, 2020, the Company had $10 million of short term FHLB borrowings with an average interest rate of 0.70%. All short-term FHLB borrowings outstanding at December 31, 2020 had fixed interest rates. Long-term borrowings Line of Credit : The Company entered into an unsecured line of credit with a third party lender in May 2017 which allowed it to borrow up to $20.0 million. The interest rate on the facility is LIBOR plus 4.00% per annum, and unpaid principal and interest is due at the stated maturity on May 12, 2022. The line of credit may be prepaid at any time without penalty, so long as such prepayment includes the payment of all interest accrued through the date of the repayments, and, in the case of prepayment of the entire loan, the amount of attorneys’ fees and disbursements of the lender. During 2019, the line of credit was increased to a total borrowing capacity of $50.0 million. There were no outstanding advances at June 30, 2021 or December 30, 2020. Long-term FHLB borrowings : Long-term borrowings from the FHLB outstanding for the periods presented are as follows: Range of Weighted Range of Weighted June 30, Contractual Average December 31, Contractual Average 2021 Interest Rates Interest Rate 2020 Interest Rates Interest Rate (Dollars in thousands) Repayable during the years ending December 31, 2021 4,010 1.48% - 2.99% 0.36 % 8,636 1.48% - 2.99% 1.73 % 2022 1,405 1.86% - 2.99% 0.95 % 4,584 1.86% - 2.99% 2.23 % 2023 6,141 1.86% - 2.99% 1.29 % 6,489 1.86% - 2.99% 2.44 % 2024 10,496 1.86% - 2.99% 1.84 % 10,723 1.86% - 2.99% 2.62 % 2025 2,578 1.86% - 2.99% 0.74 % 2,649 1.86% - 2.99% 2.26 % 2026-2032 18,678 2.10% - 2.99% 1.51 % 18,809 2.10% - 2.99% 2.26 % Total long-term FHLB borrowings $ 43,308 $ 51,890 For the three months ended June 30, 2021 and the year ended December 31, 2020, the Company maintained long-term borrowings with the FHLB averaging $60.9 million and $65.0 million, respectively, with an average cost of approximately 2.29%. Substantially all long-term FHLB borrowings outstanding at June 30, 2021 and December 31, 2020 had fixed interest rates. At both June 30, 2021 and December 31, 2020, $16 million of FHLB borrowings outstanding were callable. The Company maintained five, unsecured Federal Funds lines of credit with commercial banks which provide for extensions of credit with an availability to borrow up to an aggregate $115.0 million as of June 30, 2021. There were no advances under these lines of credit outstanding as of June 30, 2021. Paycheck Protection Program Liquidity Facility: In conjunction with the PPP, we are also currently participating in the PPPLF which extends loans to banks that are loaning money to small businesses under the PPP. The amount outstanding at June 30, 2021 and December 31, 2020 was $37.2 million and $149.8 million, respectively, and is non-recourse and secured by the amount of the PPP loans we originated. The maturity date of a borrowing under the PPPLF is equal to the maturity date of the PPP loan pledged to secure the borrowing and would be accelerated (i) if the underlying PPP loan goes into default and is sold to the SBA to realize on the SBA guarantee or (ii) to the extent that any loan forgiveness reimbursement is received from the SBA. Borrowings under the PPPLF are included in long-term liabilities on the Company’s consolidated balance sheet and bear interest at a rate of 0.35%. Subordinated Notes: On July 24, 2020, the Company issued $37 million aggregate principal amount of 6.00% fixed-to-floating rate subordinated notes due 2030 (the “Notes”). The Notes initially bear interest at a fixed annual rate of 6.00%, payable quarterly, in arrears, to, but excluding, July 31, 2025. From and including July 31, 2025, to, but excluding, the maturity date or earlier redemption date, the interest rate will reset quarterly to an interest rate per annum equal to a benchmark rate, which is expected to be the then-current three-month Secured Overnight Financing Rate, as published by the Federal Reserve Bank of New York (provided, that in the event the benchmark rate is less than zero, the benchmark rate will be deemed to be zero) plus 592 basis points, payable quarterly , in arrears. The amount outstanding at each of June 30 , 2021 and December 31, 2020 was $ 37.0 million . Secured borrowings : Due to the rights retained on certain loan participations sold, the Company is deemed to have retained effective control over these loans under FASB ASC Topic 860, “Transfers and Servicing”, and therefore these participations sold must be accounted for as a secured borrowing. At June 30, 2021, total secured borrowings were $2.2 million which are included in loans held for investment and long-term borrowings. At December 31, 2020, total secured borrowings were $4.0 million which are included in loans held for investment and long-term borrowings. None of the secured borrowings mature in the next five years following the latest balance sheet date |
Stock-Based Compensation and Ot
Stock-Based Compensation and Other Benefit Plans | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation and Other Benefit Plans | NOTE 11. STOCK-BASED COMPENSATION AND OTHER BENEFIT PLANS Spirit of Texas Bancshares, Inc. 2008 Stock Plan (the “2008 Stock Plan”) Option activity for the period indicated is summarized as follows: 2008 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2021 840,872 $ - Granted — Exercised (130,700 ) $ 13.61 1,206 Forfeited (260 ) $ 14.15 Expired — — Outstanding at June 30, 2021 709,912 $ 13.45 6,666 3.06 Vested and exercisable at June 30, 2021 701,122 $ 13.46 6,577 3.03 The total unrecognized compensation cost of $7 thousand related to the 2008 Stock Plan for the share awards outstanding at June 30, 2021 will be recognized over a weighted average remaining period of 0.30 years. Spirit of Texas Bancshares, Inc. 2017 Stock Plan (the “2017 Stock Plan”) Option activity for the period indicated is summarized as follows: 2017 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2021 197,714 $ - Granted — $ - — Exercised (2,250 ) $ 15.00 18 Forfeited (250 ) $ - Expired (5,958 ) $ - Outstanding at June 30, 2021 189,256 $ 17.48 1,014 6.19 Vested and exercisable at June 30, 2021 131,988 $ 17.01 769 6.09 The total unrecognized compensation cost of $240 thousand related to the 2017 Stock Plan for the share awards outstanding at June 30, 2021 will be recognized over a weighted average remaining period of 1.65 years. 2017 Stock Plan – Restricted Stock Unit Awards During the six month period ending June 30, 2021, the Company granted a total of 81,807 restricted stock units to employees and directors that vest in full (i.e., cliff vesting) on the five year anniversary of the grant date. The aggregate fair value of the restricted stock units on the respective grant date s was $ million and will be recognized as compensation expense over the requisite vesting period ending on the respective five year anniversary of the restricted stock unit award’s grant date. The following table presents the activity during the period indicated related to restricted stock units from the 2017 Stock Plan: 2017 Stock Plan Restricted Stock Unit Awards Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 200,239 $ 13.31 Granted 81,807 Vested (25,691 ) Forfeited (8,981 ) Outstanding at June 30, 2021 247,374 $ 16.50 A summary of selected data related to stock-based compensation expense for the three months ended June 30, 2021 and 2020 are as follows: Restricted Stock Unit Awards June 30, 2021 2020 (Dollars in thousands) Stock-based compensation expense $ 369 $ 473 Unrecognized compensation expense related to stock-based compensation $ 3,750 $ 1,611 Weighted-average life over which expense is expected to be recognized (years) 4.08 4.46 Warrants In connection with the acquisition of Oasis Bank in 2012, the Company issued warrants for 19,140 shares of stock (the “Oasis Bank Warrants”). The Oasis Bank Warrants are exercisable at $12.84 per share and expire in November 2022 Oasis Warrants Warrants Weighted Average Exercise Price Aggregate Intrinsic Value (thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2021 19,140 $ 12.84 Granted — — Exercised (3,828 ) 12.84 $ 38 Forfeited — — Expired — — Outstanding at June 30, 2021 15,312 $ 12.84 $ 153 1.67 Vested and exercisable at June 30, 2021 15,312 $ 12.84 $ 153 1.67 |
Basic and Diluted Earnings Per
Basic and Diluted Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Common Share | NOTE 12. BASIC AND DILUTED EARNINGS PER COMMON SHARE The following table presents the computation of basic and diluted earnings per share for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands, except per share data) Net income available to common stockholders $ 12,410 $ 7,694 $ 22,496 $ 11,768 Weighted average number of common shares - basic 17,152,217 17,581,959 17,128,233 17,883,034 Effect of dilutive securities: Employee stock-based compensation awards and warrants 475,741 30,960 443,832 116,172 Weighted average number of common shares - diluted 17,627,958 17,612,919 17,572,066 17,999,206 Basic earnings per common share $ 0.72 $ 0.44 $ 1.31 $ 0.66 Diluted earnings per common share $ 0.70 $ 0.44 $ 1.28 $ 0.65 Anti-dilutive warrants and stock options — - — - |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13. INCOME TAXES The effective tax rates for the three months ended June 30, 2021 and 2020 were 19.6% and 20.5%, respectively. The effective tax rate for the three months ended June 30, 2021 was favorably impacted by tax benefits received related to the exercise of non-qualified stock options. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 14. COMMITMENTS AND CONTINGENCIES The Company issues off-balance sheet financial instruments in connection with its lending activities and to meet the financing needs of its customers. These financial instruments include commitments to fund loans and lines of credit as well as commercial and standby letters of credit. These commitments expose the Company to varying degrees of credit and market risk which are essentially the same as those involved in extending loans to customers. The Company follows the same credit policies in making commitments as it does for instruments recorded on the Company’s consolidated balance sheet. Collateral is obtained based on management’s assessment of the customer’s credit risk. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. As of and for both periods ending June 30, 2021 and December 31, 2020, the Company’s reserve for unfunded commitments totaled $90 Fees collected on off-balance sheet financial instruments represent the fair value of those commitments and are deferred and amortized over their term. Financial Instruments Commitments Unfunded commitments are as follows for the periods presented: June 30, 2021 December 31, 2020 (Dollars in thousands) Unfunded loan commitments $ 365,344 $ 309,411 Commercial and standby letters of credit 4,018 3,272 Total $ 369,362 $ 312,683 Unfunded loan commitments: Commitments to extend credit 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 many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if it is deemed necessary by the Company upon extension of credit, is based upon management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. Commercial and standby letters of credit: Letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Letters of credit are primarily issued to support trade transactions or guarantee arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments if deemed necessary. Other Commitments and Contingencies Legal Proceedings The Company, from time to time, is involved as plaintiff or defendant in various legal actions arising in the normal course of business. While the ultimate outcome of any such proceedings cannot be predicted with certainty, it is the opinion of management, based upon advice of legal counsel, that no proceedings exist, either individually or in the aggregate, which, if determined adversely to the Company, would have a material effect on the Company’s consolidated balance sheet, results of operations or cash flows. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 15. FAIR VALUE MEASUREMENTS When determining the fair value measurements for assets and liabilities and the related fair value hierarchy, the Company considers the principal or most advantageous market in which it would transact and the assumptions that market participants would use when pricing the asset or liability. When possible, the Company looks to active and observable markets to price identical assets or liabilities. When identical assets and liabilities are not traded in active markets, the Company looks to market observable data for similar assets and liabilities. It is the Company’s policy to maximize the use of observable inputs, minimize the use of unobservable inputs and use unobservable inputs to measure fair value to the extent that observable inputs are not available. The need to use unobservable inputs generally results from the lack of market liquidity, resulting in diminished observability of both actual trades and assumptions that would otherwise be available to value these instruments, or the value of the underlying collateral is not market observable. Although third party price indications may be available for an asset or liability, limited trading activity would make it difficult to support the observability of these quotations. Financial Instruments Carried at Fair Value on a Recurring Basis The following is a description of the valuation methodologies used for financial instruments measured at fair value on a recurring basis, as well as the general classification of each instrument under the valuation hierarchy. Investment Securities—Investment securities available for sale are carried at fair value on a recurring basis. When available, fair value is based on quoted prices for the identical security in an active market and as such, would be classified as Level 1. If quoted market prices are not available, fair values are estimated using quoted prices of securities with similar characteristics, discounted cash flows or matrix pricing models. Investment securities available for sale for which Level 1 valuations are not available are classified as Level 2, and include U.S. government agencies and sponsored enterprises obligations and agency mortgage-backed securities; state and municipal obligations; asset-backed securities; and corporate debt and other securities. Pricing of these securities is generally spread driven. Observable inputs that may impact the valuation of these securities include benchmark yield curves, credit spreads, reported trades, dealer quotes, bids, issuer spreads, current rating, historical constant prepayment rates, historical voluntary prepayment rates, structural and waterfall features of individual securities, published collateral data, and for certain securities, historical constant default rates and default severities. SBA Servicing Asset—The SBA servicing asset is carried at fair value on a recurring basis. To determine the fair value of SBA servicing rights, the Company uses market prices for comparable servicing contracts, when available, or alternatively, uses a valuation model that calculates the present value of estimated future net servicing income. In using this valuation method, the Company incorporates assumptions that market participants would use in estimating future net servicing income, which includes estimates of the cost to service, the discount rate, custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, default rates, late fees and losses. The SBA servicing asset is classified as Level 3. The following tables present the assets and liabilities measured at fair value on a recurring basis for the periods presented: June 30, 2021 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: State and municipal obligations — 35,684 — 35,684 Residential mortgage-backed securities — 354,654 — 354,654 SBA servicing rights — — 2,567 2,567 Equity securities at fair value 23,877 — — 23,877 Corporate bonds — 43,885 — 43,885 Customer interest rate swaps — 3,107 — 3,107 Cash flow hedge derivative — 1,034 — 1,034 Liabilities: Correspondent interest rate swaps — 3,107 — 3,107 Total $ 23,877 $ 441,471 $ 2,567 $ 467,915 December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: State and municipal obligations — 37,185 — 37,185 Residential mortgage-backed securities — 132,142 — 132,142 SBA servicing rights — — 2,953 2,953 Equity securities at fair value 24,000 24,000 Corporate bonds — 43,093 43,093 Customer interest rate swaps — 3,009 3,009 Liabilities: Correspondent interest rate swaps — 3,009 3,009 Total $ 24,000 $ 218,438 $ 2,953 $ 245,391 There were no transfers of financial assets between levels of the fair value hierarchy during the three or six months ended June 30, 2021. Financial Instruments Measured at Fair Value on a Non-Recurring Basis The following is a description of the methodologies used to estimate the fair values of assets and liabilities measured at fair value on a non-recurring basis, and the level within the fair value hierarchy in which those measurements are typically classified. Impaired loans and other real estate owned (“OREO”)—The carrying amount of collateral dependent impaired loans is typically based on the fair value of the underlying collateral, which may be real estate or other business assets, less estimated costs to sell. The carrying value of OREO is initially measured based on the fair value, less estimated cost to sell, of the real estate acquired in foreclosure and subsequently adjusted to the lower of cost or estimated fair value, less estimated cost to sell. Fair values of real estate collateral are typically based on real estate appraisals which utilize market and income valuation techniques incorporating both observable and unobservable inputs. When current appraisals are not available, the Company may use brokers’ price opinions, home price indices, or other available information about changes in real estate market conditions to adjust the latest appraised value available. These adjustments to appraised values may be subjective and involve significant management judgment. The fair value of collateral consisting of other business assets is generally based on appraisals that use market approaches to valuation, incorporating primarily unobservable inputs. Fair value measurements related to collateral dependent impaired loans and OREO are classified within Level 3 of the fair value hierarchy. The following tables provide information about certain assets measured at fair value on a non-recurring basis: Estimated Fair Value June 30, 2021 December 31, 2020 (Dollars in thousands) Assets (classified in Level 3): Impaired loans $ 5,146 $ 4,948 Other real estate and repossessed assets 140 133 Impairment charges resulting from the non-recurring changes in fair value of underlying collateral of impaired loans are included in the provision for loan losses in the consolidated statement of income. Impairment charges resulting from the non-recurring changes in fair value of OREO are included in other real estate and acquired assets resolution expenses in the consolidated statement of income. The following tables show significant unobservable inputs used in the recurring and non-recurring fair value measurements of Level 3 assets as of the dates indicated: Level 3 Asset Fair Value Valuation Technique Unobservable Inputs Range/Weighted Average June 30, 2021 Non-recurring: Impaired loans $ 5,146 Third party appraisals Collateral discounts 0.0% - 100.0% (33.7%) Other real estate owned 140 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % Recurring: SBA servicing assets 2,567 Discounted cash flows Conditional prepayment rate 12.9 % Discount rate 10.0 % December 31, 2020 Non-recurring: Impaired loans $ 4,948 Third party appraisals Collateral discounts 0.0% - 100.0% (34.1%) Other real estate owned 133 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % Recurring: SBA servicing assets 2,953 Discounted cash flows Conditional prepayment rate 12.5 % Discount rate 10.0 % The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows for the periods presented: June 30, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 140,099 $ 140,099 $ 140,099 $ — $ — Equity investments at fair value 23,877 23,877 23,877 Available for sale securities 434,223 434,223 — 434,223 — FHLB and other bank stock 5,734 5,734 — 5,734 — Loans, net 2,255,562 2,248,890 — — 2,248,890 Loans held for sale 3,220 3,455 — 3,455 — Accrued interest receivable 9,071 9,071 — 9,071 — Bank-owned life insurance 31,161 31,161 — 31,161 — SBA servicing rights 2,567 2,567 — — 2,567 Customer interest rate swaps 3,107 3,107 — 3,107 — Cash flow hedge derivative 1,034 1,034 — 1,034 — Financial Liabilities: Deposits $ 2,572,172 2,528,210 $ — $ 2,528,210 $ — Accrued interest payable 860 860 — 860 — Long-term borrowings 119,052 124,469 — 124,469 — Correspondent interest rate swaps 3,107 3,107 — 3,107 — December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 263,034 $ 263,034 $ 263,034 $ — $ — Equity investments at fair value 24,000 24,000 $ 24,000 $ — $ — Available for sale securities 212,420 212,420 — 212,420 — FHLB and other bank stock 5,718 5,718 — 5,718 — Loans, net 2,372,506 2,364,646 — — 2,364,646 Loans held for sale 1,470 1,598 — 1,598 — Accrued interest receivable 11,199 11,199 — 11,199 — Bank-owned life insurance 15,969 15,969 — 15,969 — SBA servicing rights 2,953 2,953 — — 2,953 Customer interest rate swaps 3,009 3,009 - 3,009 - Financial Liabilities: Deposits $ 2,459,135 $ 2,427,412 $ — $ 2,427,412 $ — Accrued interest payable 1,303 1,303 — 1,303 — Short-term borrowings 10,000 10,136 — 10,136 — Long-term borrowings 242,020 245,311 — 245,311 — Correspondent interest rate swaps 3,009 3,009 — 3,009 — Certain financial instruments are carried at amounts that approximate fair value due to their short-term nature and generally negligible credit risk. Financial instruments for which fair value approximates the carrying amount at June 30, 2021 and December 31, 2020, include cash and cash equivalents and accrued interest receivable and payable. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instrument Detail [Abstract] | |
Derivative Financial Instruments | NOTE 16. DERIVATIVE FINANCIAL INSTRUMENTS The Company offers a loan hedging program to certain loan customers. Through this program, the Company originates a variable rate loan with the customer. The Company and the customer will then enter into a fixed interest rate swap. Lastly, an identical offsetting swap is entered into by the Company with a correspondent bank. These “back-to-back” swap arrangements are intended to offset each other and allow the Company to book a variable rate loan, while providing the customer with a contract for fixed interest payments. In these arrangements, the Company’s net cash flow is equal to the interest income received from the variable rate loan originated with the customer. These customer swaps are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. The changes in fair value is recognized in the income statement in other income and fees. The Company is required to hold cash as collateral for the swaps. Total cash held as collateral for swaps was $3.4 million and $2.6 million at June 30, 2021 and December 31, 2020, respectively. At June 30, 2021 and December 31, 2020 interest rate swaps related to the Company’s loan hedging program that were outstanding are presented in the following table: June 30, 2021 December 31, 2020 (Dollars in thousands) Interest rate swaps on loans with customers Notional amount $ 197,315 $ 85,696 Weighted average remaining term (years) 4.27 4.58 Receive fixed rate (weighted average) 3.23 % 4.23 % Pay variable rate (weighted average) 4.45 % 4.52 % Estimated fair value $ 3,107 $ 3,009 June 30, 2021 December 31, 2020 (Dollars in thousands) Interest rate swaps on loans with correspondents Notional amount $ 197,315 $ 85,696 Weighted average remaining term (years) 4.27 4.58 Pay fixed rate (weighted average) 4.45 % 4.52 % Receive variable rate (weighted average) 3.23 % 4.23 % Estimated fair value $ 3,107 $ 3,009 Interest rate swaps with correspondents are subject to a master netting agreement. The Company has elected to net interest rate swap positions on the consolidated balance sheet. On January 6, 2021, we entered into an $80.0 million 0.5515% pay-fixed receive-float forward starting interest rate swap in order to hedge our risk of variability in cash flows (future interest payments) attributable to changes in the 1-month Federal Funds benchmark interest rate from interest rate swap (the hedging instrument) was designated and qualifies under hedge accounting as a cash flow hedge. The hedge is highly effective, and any future changes in value will be recorded in Other Comprehensive Income until the time that the underlying cash flows (future interest payments) are recorded in the income statement. The hedge is expected to remain highly effective and effectiveness will be assessed periodically throughout the term of the hedge relationship. At June 30, 2021, the Company recorded $442 thousand in Other Comprehensive Loss related to the interest rate swap |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations Spirit of Texas Bancshares, Inc. (“Spirit” or the “Company”) is a Texas corporation and registered bank holding company headquartered in Conroe, Texas that provides, through its bank subsidiary, Spirit of Texas Bank SSB (the “Bank”), a variety of financial services to individuals and corporate customers that are largely located or conducting business in Texas, and which operate in primarily agricultural, light industrial and commercial areas. |
Risks and Uncertainties | Risks and Uncertainties COVID-19 Pandemic In December 2019, a novel strain of coronavirus (“COVID-19”) was reported to have surfaced in Wuhan, China, and has since spread worldwide. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. In addition, a new Delta variant of COVID-19, which appears to be the most transmissible variant to date, has begun to spread in the United States in 2021. The impact of the Delta variant cannot be predicted at this time, and could depend on numerous factors, including vaccination rates among the population, the effectiveness of COVID-19 vaccines against the Delta variant, and the response by governmental bodies and regulators. The ongoing COVID-19 pandemic has severely impacted the level of economic activity in the local, national and global economies and financial markets. During the first and second quarters of 2020, many businesses in Texas and throughout the United States were temporarily closed due to social distancing and/or shelter in place orders. As of June 30, 2021, businesses in Texas have been allowed to re-open; however, the Company and its customers continue to be adversely affected by the ongoing COVID-19 pandemic. The extent to which the COVID-19 pandemic negatively impacts the Company's business, results of operations, and financial condition, as well as its regulatory capital and liquidity ratios, is unknown at this time and will depend on future developments, including the scope and duration of the pandemic and actions taken by governmental authorities and other third parties in response to the pandemic. If the pandemic is sustained for a prolonged period of time, it may further adversely impact the Company and impair the ability of the Company's customers to fulfill their contractual obligations to the Company. This could materially and adversely affect the Company’s business operations, asset valuations, financial condition, and results of operations. For additional risks related to the ongoing COVID-19 pandemic, see “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on March 5, 2021, and the Company’s other filings with the SEC. In response to the pandemic, the President of the United States signed into law the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”). This legislation aims to provide relief for individuals and businesses that have been negatively impacted by the coronavirus pandemic. Section 4013 of the CARES Act provides financial institutions the opportunity to opt out of applying the “troubled debt restructuring” (“TDR”) accounting guidance in the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) 310-40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) December 31, 2020. Section 541 of the Consolidated Appropriations Act, 2021, amended Section 4013 of the CARES Act to extend this relief to the earlier of (i) 60 days after the end of the national emergency proclamation or (ii) January 1, 2022. A financial institution may elect to suspend U.S. generally accepted accounting principles (“GAAP”) only for a loan that was not more than 30 days past due as of December 31, 2019. The Bank adopted this provision of the CARES Act. Additionally, the CARES Act contained provisions that impact federal income taxes including but not limited to an extension to pay and file federal tax returns, bonus depreciation on qualified improvement property and the ability to carry back certain net operating losses to a prior year. The Bank utilized the filing and payment extension and net operating loss carryback provisions of the CARES Act. |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. The accounting and financial reporting policies the Company follows conform, in all material respects, to GAAP and to general practices with the financial services industry. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40)” – Issued in August 2020, Accounting Standards Update (“ASU”) No. 2020-06 addresses accounting complexities regarding convertible debt instruments and the derivatives scope exception for contracts in an entity’s own equity. The ASU reduces the number of available accounting models for convertible debt instruments in an attempt to reduce complexity and variation in practice. Additionally, the ASU improves the applicability of the derivatives scope exception for contracts in an entity’s own equity by clarifying settlement guidance and balance sheet classification. ASU 2020-06 is effective for public entities for fiscal years beginning after December 15, 2021 and for and for all other entities in fiscal years beginning after December 15, 2023. Management does not believe adoption of this ASU will have a material impact on the consolidated financial statements given that the Company does not currently hold any convertible debt instruments or any in-scope derivative contracts. ASU 2019-11, “Financial Instruments-Credit Losses: Codification Improvements Topic 326” – Issued in November 2019, ASU No. 2019-11 clarifies and addresses specific issues about certain aspects of the amendments in ASU 2016-13. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. See the discussions regarding the adoption of ASU 2016-13 below. ASU 2019-10, “Financial Instruments-Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842)” – Issued in November 2019, ASU No. 2019-10 addresses the change in philosophy to the effective dates including amendments issued after the issuance of the original ASUs. See the discussions regarding the adoption of ASU 2016-13 and ASU 2016-02 below. ASU 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” – Issued in April 2019, ASU No. 2019-04 clarifies a number of issues discussed at the June 2018 and November 2018 Credit Losses Transition Resource Group meetings. The clarifications address a variety of identified issues including but not limited to the treatment of accrued interest receivable as it relates to the allowance for credit losses, transfers between loan classifications and categories, recoveries, and using projections of future interest rate environments in expected cash flow calculations. Management is evaluating these clarifications concurrently with our assessment of ASU 2016-13. ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” Issued in June 2016, ASU 2016-13 will add FASB ASC Topic 326, “Financial Instruments-Credit Losses,” and finalizes amendments to FASB ASC Subtopic 825-15, “Financial Instruments-Credit Losses.” The amendments of ASU 2016-13 are intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The amendments of ASU 2016-13 eliminate the probable initial recognition threshold and, in turn, reflect an entity’s current estimate of all expected credit losses. ASU 2016-13 does not specify the method for measuring expected credit losses, and an entity is allowed to apply methods that reasonably reflect its expectations of the credit loss estimate. Additionally, the amendments of ASU 2016-13 require that credit losses on available for sale debt securities be presented as an allowance rather than as a write-down. The amendments of ASU 2016-13 were originally effective for public entities for interim and annual periods beginning after December 15, 2019 and for all other entities for periods beginning after December 15, 2020. Issued in November 2019, ASU 2019-10, “ ” alters the effective date of ASU 2016-13 for private companies. Under the provisions of ASU 2019-10, ASU 2016-13 is now effective for fiscal years beginning after December 15, 2022 including interim periods within those years for non-public business entities. Earlier application is permitted for interim and annual periods beginning after December 15, 2018. Management has elected to adopt this ASU using the updated private company effective date and is currently evaluating the impact this ASU will have on the consolidated financial statements and that evaluation will depend on economic conditions and the composition of the Company’s loan and lease portfolio at the time of adoption. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Non-Interest Income, Segregated by Revenue Streams in-Scope and Out-of-Scope of Topic 606 | The following presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Non-Interest Income In-scope of Topic 606 Deposit accounts core service charges $ 379 $ 312 $ 735 $ 523 Deposit account transaction based fee income 1,160 958 2,238 2,058 Swap referral fees 127 262 557 842 Mortgage referral fees 384 357 658 559 Non-Interest Income (in-scope of Topic 606) 2,050 1,889 4,188 3,982 Non-Interest Income (out-of-scope of Topic 606) 1,808 676 2,289 1,295 Total Non-Interest Income $ 3,858 $ 2,565 $ 6,477 $ 5,277 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Fair Values of Securities Available for Sale | The amortized cost, gross unrealized gains and losses and approximate fair values of securities available for sale are as follows: Amortized Unrealized Fair June 30, 2021 Cost Gains Losses Value (Dollars in thousands) Available for sale: State and municipal obligations 35,583 226 125 35,684 Residential mortgage-backed securities 360,336 1 5,682 354,654 Corporate bonds 42,723 1,242 80 43,885 Total available for sale $ 438,642 $ 1,469 $ 5,887 $ 434,223 Amortized Unrealized Fair December 31, 2020 Cost Gains Losses Value (Dollars in thousands) Available for sale: State and municipal obligations $ 36,258 $ 927 $ - $ 37,185 Residential mortgage-backed securities 132,130 278 267 132,142 Corporate bonds and other debt securities 42,768 433 109 43,093 Total available for sale $ 211,156 $ 1,638 $ 376 $ 212,420 |
Schedule of Securities Available for Sale by Contractual Maturity | The amortized cost and estimated fair value of securities available for sale, by contractual maturity, are as follows for the period presented: Amortized Fair June 30, 2021 Cost Value (Dollars in thousands) Available for sale: Due in one year or less $ 318 $ 318 Due after one year through five years 9,476 9,590 Due after five years through ten years 31,014 32,109 Due after ten years 37,498 37,552 Residential mortgage-backed securities 360,336 354,654 Total available for sale $ 438,642 $ 434,223 |
Schedule of Investment Securities Available for Sale and Aggregated by Investment Category and Length of Time Individual Securities in Continuous Unrealized Loss Position | The following tables present the estimated fair values and gross unrealized losses on investment securities available for sale, aggregated by investment category and length of time individual securities have been in a continuous unrealized loss position as of the periods presented: Less than 12 Months 12 Months or More Total June 30, 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Treasury securities $ — $ — $ — $ — $ — $ — State and municipal obligations 14 — 12,995 125 13,009 125 Residential mortgage-backed securities — — 354,553 5,682 354,553 5,682 Corporate bonds — — 1,011 80 1,011 80 Total available for sale $ 14 $ — $ 368,559 $ 5,887 $ 368,573 $ 5,887 Less than 12 Months 12 Months or More Total December 31, 2020 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss (Dollars in thousands) Available for sale: U.S. Treasury securities $ — $ — $ — $ — $ - $ - State and municipal obligations — — — — — — Residential mortgage-backed securities 53,598 267 — — 53,598 267 Corporate bonds and other debt securities 17,087 109 — — 17,087 109 Total available for sale $ 70,685 $ 376 $ - $ - $ 70,685 $ 376 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Total Loans Held in Portfolio | Total loans held in portfolio consisted of the following at June 30, 2021 and December 31, 2020: June 30, 2021 Acquired Loans (1) Organic Loans Total Loans (Dollars in thousands) Commercial and industrial loans (2) $ 39,073 $ 496,535 $ 535,608 Real estate: 1-4 single family residential loans 76,023 280,480 356,503 Construction, land and development 51,718 293,702 345,420 Commercial real estate loans (including multifamily) 300,039 664,526 964,565 Consumer loans and leases 1,854 6,590 8,444 Municipal and other loans 4,850 56,699 61,549 Total loans held in portfolio (3) $ 473,557 $ 1,798,532 $ 2,272,089 December 31, 2020 Acquired Loans (1) Organic Loans Total Loans (Dollars in thousands) Commercial and industrial loans (2) $ 53,857 $ 521,129 $ 574,986 Real estate: 1-4 single family residential loans 93,840 270,299 364,139 Construction, land and development 131,734 283,754 415,488 Commercial real estate loans (including multifamily) 333,489 623,254 956,743 Consumer loans and leases 3,088 8,650 11,738 Municipal and other loans 6,103 59,335 65,438 Total loans held in portfolio (3) $ 622,111 $ 1,766,421 $ 2,388,532 (1) Acquired loans include loans acquired in the acquisitions of Comanche, National Corporation, First Beeville Financial Corporation, and Chandler Bancorp, Inc. and its subsidiary, Citizens State Bank (together, “Citizens”), and the Simmons Bank branch acquisition. All loans originated after acquisition close date are included in organic loans. (2 ) Organic loans balance includes $64.9 million and $70.8 million of the unguaranteed portion of SBA loans as of June 30, 2021 and December 31, 2020, respectively. (3 ) Organic loans balance includes $(10.2) million and $(8.2) million of deferred fees, cost, premium and discount as of June 30, 2021 and December 31, 2020, respectively. |
Summary of Loans to Related Parties and Principal Owners | In the ordinary course of business, the Company makes loans to executive officers and directors. Loans to these related parties, including companies in which they are principal owners, are as follows for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands) Principal outstanding, beginning of year $ 6,778 $ 7,447 $ 7,581 $ 6,005 Additions (reductions) of affiliations — — — — New loans made in current year 80 1,130 1,052 2,849 Repayments (787 ) (1,649 ) (2,562 ) (1,926 ) Principal outstanding, end of year $ 6,071 $ 6,928 $ 6,071 $ 6,928 |
Allowance for Loan and Lease _2
Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Allowance for Loan and Lease Losses | The following tables present information related to allowance for loan and lease losses for the periods presented: Allowance Rollforward Three Months Ended June 30, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 9,682 $ (1,136 ) $ 17 $ 1,183 $ 9,746 Real estate: 1-4 single family residential loans 84 (12 ) 1 66 139 Construction, land and development loans 1,886 — — (589 ) 1,297 Commercial real estate loans (including multifamily) 4,456 — — 683 5,139 Consumer loans and leases 113 (14 ) 6 (11 ) 94 Municipal and other loans 93 — 2 17 112 Ending allowance balance $ 16,314 $ (1,162 ) $ 26 $ 1,349 $ 16,527 Allowance Rollforward Three Months Ended June 30, 2020 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 4,484 $ (455 ) $ 5 $ 2,279 $ 6,313 Real estate: 1-4 single family residential loans 35 — — 72 107 Construction, land and development loans 1,293 — — (35 ) 1,258 Commercial real estate loans (including multifamily) 1,749 — — 414 2,163 Consumer loans and leases 51 (107 ) 2 103 49 Municipal and other loans 8 — 2 5 15 Ending allowance balance $ 7,620 $ (562 ) $ 9 $ 2,838 $ 9,905 Allowance Rollforward Six Months Ended June 30, 2021 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 9,086 $ (1,946 ) $ 34 $ 2,572 $ 9,746 Real estate: 1-4 single family residential loans 147 (13 ) 1 4 139 Construction, land and development loans 1,744 — — (447 ) 1,297 Commercial real estate loans (including multifamily) 4,843 — — 296 5,139 Consumer loans and leases 145 (33 ) 20 (38 ) 94 Municipal and other loans 61 — 3 48 112 Ending allowance balance $ 16,026 $ (1,992 ) $ 58 $ 2,435 $ 16,527 Allowance Rollforward Six Months Ended June 30, 2020 Beginning Balance Charge-offs Recoveries Provision Ending Balance (Dollars in thousands) Commercial and industrial loans $ 4,078 $ (709 ) $ 9 $ 2,935 $ 6,313 Real estate: 1-4 single family residential loans 31 — — 76 107 Construction, land and development loans 1,055 — — 203 1,258 Commercial real estate loans (including multifamily) 1,451 — — 712 2,163 Consumer loans and leases 68 (159 ) 14 126 49 Municipal and other loans 54 — 4 (43 ) 15 Ending allowance balance $ 6,737 $ (868 ) $ 27 $ 4,009 $ 9,905 |
Summary of Aging Analysis of Recorded Investment for Delinquent Loans by Portfolio and Segment | The following tables present an aging analysis of the recorded investment for delinquent loans by portfolio and segment for the periods presented: Accruing June 30, 2021 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 530,361 $ 70 $ 278 $ — $ 4,899 $ 535,608 Real estate: 1-4 single family residential loans 355,733 411 112 — 247 356,503 Construction, land and development 342,852 2,568 — — — 345,420 Commercial real estate loans (including multifamily) 961,510 761 — — 2,294 964,565 Consumer loans and leases 8,357 21 — — 66 8,444 Municipal and other loans 61,509 24 — — 16 61,549 Total loans $ 2,260,322 $ 3,855 $ 390 $ — $ 7,522 $ 2,272,089 Accruing December 31, 2020 Current 30 to 59 Days Past Due 60 to 89 Days Past Due 90 Days or More Past Due Non- Accrual Total (Dollars in thousands) Commercial and industrial loans $ 567,491 $ 2,295 $ 271 $ - $ 4,929 $ 574,986 Real estate: 1-4 single family residential loans 362,505 99 28 — 1,507 364,139 Construction, land and development 415,135 136 — — 217 415,488 Commercial real estate loans (including multifamily) 953,823 1,084 — — 1,836 956,743 Consumer loans and leases 11,618 8 4 — 108 11,738 Municipal and other loans 65,416 — 22 — — 65,438 Total loans $ 2,375,988 $ 3,622 $ 325 $ - $ 8,597 $ 2,388,532 |
Summary of Loans by Key Indicators of Credit Quality | The following tables summarize the Company’s loans by key indicators of credit quality for the periods presented: June 30, 2021 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 517,304 $ 1,985 $ 16,303 $ 16 Real estate: 1-4 single family residential loans 355,789 — 714 — Construction, land and development 342,851 2,569 — — Commercial real estate loans (including multifamily) 908,374 42,672 13,519 — Consumer loans and leases 8,378 — 61 5 Municipal and other loans 57,445 4,012 92 — Total loans $ 2,190,141 $ 51,238 $ 30,689 $ 21 December 31, 2020 Pass Special Mention Substandard Doubtful (Dollars in thousands) Commercial and industrial loans $ 554,685 $ 1,332 $ 18,723 $ 246 Real estate: 1-4 single family residential loans 360,337 — 3,802 — Construction, land and development 411,151 4,120 217 — Commercial real estate loans (including multifamily) 935,865 10,913 9,965 — Consumer loans and leases 11,626 — 112 — Municipal and other loans 62,273 3,085 80 — Total loans $ 2,335,937 $ 19,450 $ 32,899 $ 246 |
Summary of Investment in Loans Disaggregated Based on Method of Evaluating Impairment | The following tables show the Company’s investment in loans disaggregated based on the method of evaluating impairment for the periods presented: Loans - Recorded Investment Allowance for Credit Loss June 30, 2021 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 4,942 $ 530,666 $ 3,376 $ 6,370 Real estate: 1-4 single family residential loans 372 356,131 1 138 Construction, land and development — 345,420 — 1,297 Commercial real estate loans (including multifamily) 2,294 962,271 508 4,631 Consumer loans and leases 66 8,378 66 28 Municipal and other loans 69 61,480 53 59 Total loans $ 7,743 $ 2,264,346 $ 4,004 $ 12,523 Loans - Recorded Investment Allowance for Credit Loss December 31, 2020 Individually Evaluated for Impairment Collectively Evaluated for Impairment Individually Evaluated for Impairment Collectively Evaluated for Impairment (Dollars in thousands) Commercial and industrial loans $ 4,978 $ 570,008 $ 3,488 $ 5,598 Real estate: 1-4 single family residential loans 1,637 362,502 1 146 Construction, land and development 217 415,271 — 1,744 Commercial real estate loans (including multifamily) 1,837 954,906 500 4,343 Consumer loans and leases 108 11,630 90 55 Municipal and other loans 52 65,386 — 61 Total loans $ 8,829 $ 2,379,703 $ 4,079 $ 11,947 |
Summary of Information Regarding Impaired Loans Evaluated for Specific Reserves | The following tables set forth certain information regarding the Company’s impaired loans that were evaluated for specific reserves for the periods presented: Impaired Loans - With Allowance Impaired Loans - With no Allowance June 30, 2021 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 3,781 $ 3,825 $ 3,376 $ 1,161 $ 1,164 Real estate: 1-4 single family residential loans 4 3 1 368 369 Construction, land and development — — — — — Commercial real estate loans (including multifamily) 847 853 508 1,447 1,446 Consumer loans and leases 66 66 66 — — Municipal and other loans 69 70 53 — — Total loans $ 4,767 $ 4,817 $ 4,004 $ 2,976 $ 2,979 Impaired Loans - With Allowance Impaired Loans - With no Allowance December 31, 2020 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance (Dollars in thousands) Commercial and industrial loans $ 4,407 $ 4,453 $ 3,488 $ 566 $ 571 Real estate: 1-4 single family residential loans 5 5 1 1,632 1,612 Construction, land and development — — — 217 215 Commercial real estate loans (including multifamily) 1,308 1,281 500 528 528 Consumer loans and leases 90 90 90 24 28 Municipal and other loans — — — 52 52 Total loans $ 5,810 $ 5,829 $ 4,079 $ 3,019 $ 3,006 Three Months Ended June 30, 2021 2020 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Commercial and industrial loans $ 5,497 $ 3,590 $ — Real estate: 1-4 single family residential loans 671 — 1,547 — Construction, land and development — — 216 — Commercial real estate loans (including multifamily) 1,375 — 2,232 — Consumer loans and leases 57 — 11 — Municipal and other loans 66 — — — Total loans $ 7,666 $ — $ 7,596 $ — |
Summary of Troubled Debt Restructurings (TDRs) Based Upon Delinquency Status | The following table provides a summary of troubled debt restructurings (“TDRs”) based upon delinquency status, all of which are considered impaired, for the periods presented: June 30, 2021 December 31, 2020 Number of contracts Recorded Investment Number of contracts Recorded Investment (Dollars in thousands) Performing TDRs: Commercial and industrial loans 2 $ 43 2 $ 49 Real estate: 1-4 single family residential loans 2 124 3 130 Construction, land and development — — — — Commercial real estate loans (including multifamily) — — — — Consumer loans and leases — — — — Municipal and other loans 1 53 1 52 Total performing TDRs 5 220 6 231 Nonperforming TDRs 14 870 14 652 Total TDRs 19 $ 1,090 20 $ 883 Allowance attributable to TDRs $ 408 $ 421 |
Summary of Newly Designated TDRs and Modifications to Existing TDRs | The following table summarizes TDRs, and includes newly designated TDRs as well as modifications made to existing TDRs, for the periods presented. Modifications may include, but are not limited to, granting a material extension of time, entering into a forbearance agreement, adjusting the interest rate, accepting interest only payments for an extended period of time, a change in the amortization period or a combination of any of these. Post-modification balances represent the recorded investment at the end of Day 2 in which the modification was made. The CARES Act includes a provision for the Company to opt out of applying the TDR accounting guidance in ASC 310-40 for certain loan modifications. Loan modifications made between March 1, 2020 and the earlier of (i) January 1, 2022 or (ii) 60 days after the termination of the COVID-19 national emergency are eligible for this relief if the related loans were not more than 30 days past due as of December 31, 2019. Loans with an unpaid principal balance of $2.6 million remained in active deferral periods at June 30,2021. Three Months Ended June 30, 2021 2020 Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance Number of Contracts Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Related Allowance (Dollars in thousands) Commercial and industrial loans — $ — $ — $ — 1 $ 276 $ 276 $ 276 Real estate: 1-4 single family residential loans — — — — — — — — Construction, land and development — — — — — — — — Commercial real estate loans (including multifamily) — — — — — Consumer loans and leases — — — — — — — — Municipal and other loans — — — — — — — — |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | Goodwill and other intangible assets, which consist of core deposit intangibles, are summarized as follows: Six Months Ended June 30, 2021 Year Ended December 31, 2020 (Dollars in thousands) Beginning goodwill $ 77,681 $ 68,503 Arising from business combination — 11,456 Measurement Period Adjustments — (2,278 ) Ending goodwill $ 77,681 $ 77,681 Core deposit intangible 19,722 19,722 Arising from business combination — — Less: Accumulated amortization (13,482 ) (11,904 ) Core deposit intangible, net $ 6,240 $ 7,818 |
Schedule of Estimated Amortization Expense for Intangibles | The estimated amount of amortization expense for core deposit intangibles to be recognized over the next five fiscal years is as follows: Type of intangibles Remainder of 2021 2022 2023 2024 2025 2026 (Dollars in thousands) Core deposit intangible $ 1,450 $ 2,219 $ 1,575 $ 745 $ 200 $ 51 |
SBA Servicing Asset (Tables)
SBA Servicing Asset (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Summary of Activity Pertaining to SBA Servicing Rights | The following summarizes the activity pertaining to SBA servicing rights, which are in the consolidated balance sheets, for the three and six months ended June 30, 2021 and 2020: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands) Beginning balance $ 2,821 $ 3,055 $ 2,953 $ 3,355 Origination of servicing assets — 84 38 189 Change in fair value: Due to run-off (135 ) (135 ) (270 ) (275 ) Due to market changes (119 ) 111 (154 ) (154 ) Ending balance $ 2,567 $ 3,115 $ 2,567 $ 3,115 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Schedule of Additional Information Related to Company's Leases | The table below presents additional information related to the Company’s leases as of June 30, 2021: June 30, 2021 Weighted-average remaining term (in years) - operating leases 4.30 Weighted-average discount rate - operating leases (1) 4.00 % (1) The incremental borrowing rate used to calculate the lease liability was determined based on facts and circumstances of the economic environment and the Company's credit standing as of the effective date of ASC 842. Additionally, the total lease term and total lease payments were also considered in determining the rate. |
Schedule of Company's Operating Lease Liabilities by Contractual Maturity | The following is a schedule of the Company’s operating lease liabilities by contractual maturity as of June 30, 2021: (Dollars in thousands) 2021 (excluding 6 months ended June 30, 2021) 1,113 2022 1,784 2023 1,009 2024 812 2025 625 Thereafter 883 Total Lease Payments 6,226 Less: Imputed Interest 496 Total present value of lease liabilities 5,730 |
Schedule of Supplemental Cash Flow Information Related to Company's Operating Leases | The below table shows the supplemental cash flow information related to the Company’s operating leases for the three and six months ended June 30, 2021: Three Months Ended Six Months Ended June 30, 2021 June 30, 2021 (Dollars in thousands) Operating cash flows (fixed payments) included in occupancy and equipment expenses $ 559 $ 1,130 Operating cash flows (liability reduction) included in occupancy and equipment expenses 501 839 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deposits By Component Alternative [Abstract] | |
Summary of Deposits by Category | The following table sets forth the Company’s deposits by category for the periods presented: June 30, 2021 December 31, 2020 (Dollars in thousands) Noninterest-bearing demand deposits $ 772,032 $ 727,543 Interest-bearing demand deposits 529,513 472,075 Interest-bearing NOW accounts 10,763 10,288 Savings and money market accounts 651,791 610,571 Time deposits 608,073 638,658 Total deposits $ 2,572,172 $ 2,459,135 Time deposits $100,000 and greater $ 496,588 $ 515,738 Time deposits $250,000 and greater 195,533 190,236 Related party deposits (executive officers and directors) 14,763 18,767 |
FHLB and Other Borrowings (Tabl
FHLB and Other Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Long-Term Borrowings from FHLB Outstanding | Long-term borrowings from the FHLB outstanding for the periods presented are as follows: Range of Weighted Range of Weighted June 30, Contractual Average December 31, Contractual Average 2021 Interest Rates Interest Rate 2020 Interest Rates Interest Rate (Dollars in thousands) Repayable during the years ending December 31, 2021 4,010 1.48% - 2.99% 0.36 % 8,636 1.48% - 2.99% 1.73 % 2022 1,405 1.86% - 2.99% 0.95 % 4,584 1.86% - 2.99% 2.23 % 2023 6,141 1.86% - 2.99% 1.29 % 6,489 1.86% - 2.99% 2.44 % 2024 10,496 1.86% - 2.99% 1.84 % 10,723 1.86% - 2.99% 2.62 % 2025 2,578 1.86% - 2.99% 0.74 % 2,649 1.86% - 2.99% 2.26 % 2026-2032 18,678 2.10% - 2.99% 1.51 % 18,809 2.10% - 2.99% 2.26 % Total long-term FHLB borrowings $ 43,308 $ 51,890 |
Stock-Based Compensation and _2
Stock-Based Compensation and Other Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Activity Indicated Related to Restricted Stock Units | The following table presents the activity during the period indicated related to restricted stock units from the 2017 Stock Plan: 2017 Stock Plan Restricted Stock Unit Awards Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2021 200,239 $ 13.31 Granted 81,807 Vested (25,691 ) Forfeited (8,981 ) Outstanding at June 30, 2021 247,374 $ 16.50 |
Summary of Stock Based Compensation Expense | A summary of selected data related to stock-based compensation expense for the three months ended June 30, 2021 and 2020 are as follows: Restricted Stock Unit Awards June 30, 2021 2020 (Dollars in thousands) Stock-based compensation expense $ 369 $ 473 Unrecognized compensation expense related to stock-based compensation $ 3,750 $ 1,611 Weighted-average life over which expense is expected to be recognized (years) 4.08 4.46 |
Oasis Warrants | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Warrant Activity | Activity for the Oasis Bank Warrants for the period indicated is summarized as follows: Oasis Warrants Warrants Weighted Average Exercise Price Aggregate Intrinsic Value (thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2021 19,140 $ 12.84 Granted — — Exercised (3,828 ) 12.84 $ 38 Forfeited — — Expired — — Outstanding at June 30, 2021 15,312 $ 12.84 $ 153 1.67 Vested and exercisable at June 30, 2021 15,312 $ 12.84 $ 153 1.67 |
2008 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Option Activity | Option activity for the period indicated is summarized as follows: 2008 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2021 840,872 $ - Granted — Exercised (130,700 ) $ 13.61 1,206 Forfeited (260 ) $ 14.15 Expired — — Outstanding at June 30, 2021 709,912 $ 13.45 6,666 3.06 Vested and exercisable at June 30, 2021 701,122 $ 13.46 6,577 3.03 |
2017 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Summary of Option Activity | Option activity for the period indicated is summarized as follows: 2017 Stock Plan Options Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Life (Years) Outstanding at January 1, 2021 197,714 $ - Granted — $ - — Exercised (2,250 ) $ 15.00 18 Forfeited (250 ) $ - Expired (5,958 ) $ - Outstanding at June 30, 2021 189,256 $ 17.48 1,014 6.19 Vested and exercisable at June 30, 2021 131,988 $ 17.01 769 6.09 |
Basic and Diluted Earnings Pe_2
Basic and Diluted Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Dollars in thousands, except per share data) Net income available to common stockholders $ 12,410 $ 7,694 $ 22,496 $ 11,768 Weighted average number of common shares - basic 17,152,217 17,581,959 17,128,233 17,883,034 Effect of dilutive securities: Employee stock-based compensation awards and warrants 475,741 30,960 443,832 116,172 Weighted average number of common shares - diluted 17,627,958 17,612,919 17,572,066 17,999,206 Basic earnings per common share $ 0.72 $ 0.44 $ 1.31 $ 0.66 Diluted earnings per common share $ 0.70 $ 0.44 $ 1.28 $ 0.65 Anti-dilutive warrants and stock options — - — - |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Unfunded Commitments | Unfunded commitments are as follows for the periods presented: June 30, 2021 December 31, 2020 (Dollars in thousands) Unfunded loan commitments $ 365,344 $ 309,411 Commercial and standby letters of credit 4,018 3,272 Total $ 369,362 $ 312,683 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present the assets and liabilities measured at fair value on a recurring basis for the periods presented: June 30, 2021 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: State and municipal obligations — 35,684 — 35,684 Residential mortgage-backed securities — 354,654 — 354,654 SBA servicing rights — — 2,567 2,567 Equity securities at fair value 23,877 — — 23,877 Corporate bonds — 43,885 — 43,885 Customer interest rate swaps — 3,107 — 3,107 Cash flow hedge derivative — 1,034 — 1,034 Liabilities: Correspondent interest rate swaps — 3,107 — 3,107 Total $ 23,877 $ 441,471 $ 2,567 $ 467,915 December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: State and municipal obligations — 37,185 — 37,185 Residential mortgage-backed securities — 132,142 — 132,142 SBA servicing rights — — 2,953 2,953 Equity securities at fair value 24,000 24,000 Corporate bonds — 43,093 43,093 Customer interest rate swaps — 3,009 3,009 Liabilities: Correspondent interest rate swaps — 3,009 3,009 Total $ 24,000 $ 218,438 $ 2,953 $ 245,391 |
Schedule of Assets Measured at Fair Value on Non-Recurring Basis | The following tables provide information about certain assets measured at fair value on a non-recurring basis: Estimated Fair Value June 30, 2021 December 31, 2020 (Dollars in thousands) Assets (classified in Level 3): Impaired loans $ 5,146 $ 4,948 Other real estate and repossessed assets 140 133 |
Significant Unobservable Inputs Used in Recurring and Non-Recurring Fair Value Measurements | The following tables show significant unobservable inputs used in the recurring and non-recurring fair value measurements of Level 3 assets as of the dates indicated: Level 3 Asset Fair Value Valuation Technique Unobservable Inputs Range/Weighted Average June 30, 2021 Non-recurring: Impaired loans $ 5,146 Third party appraisals Collateral discounts 0.0% - 100.0% (33.7%) Other real estate owned 140 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % Recurring: SBA servicing assets 2,567 Discounted cash flows Conditional prepayment rate 12.9 % Discount rate 10.0 % December 31, 2020 Non-recurring: Impaired loans $ 4,948 Third party appraisals Collateral discounts 0.0% - 100.0% (34.1%) Other real estate owned 133 Third party appraisals Collateral discounts and estimated cost to sell 10.0 % Recurring: SBA servicing assets 2,953 Discounted cash flows Conditional prepayment rate 12.5 % Discount rate 10.0 % |
Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values, as well as the level within the fair value hierarchy, of the Company’s financial instruments are as follows for the periods presented: June 30, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 140,099 $ 140,099 $ 140,099 $ — $ — Equity investments at fair value 23,877 23,877 23,877 Available for sale securities 434,223 434,223 — 434,223 — FHLB and other bank stock 5,734 5,734 — 5,734 — Loans, net 2,255,562 2,248,890 — — 2,248,890 Loans held for sale 3,220 3,455 — 3,455 — Accrued interest receivable 9,071 9,071 — 9,071 — Bank-owned life insurance 31,161 31,161 — 31,161 — SBA servicing rights 2,567 2,567 — — 2,567 Customer interest rate swaps 3,107 3,107 — 3,107 — Cash flow hedge derivative 1,034 1,034 — 1,034 — Financial Liabilities: Deposits $ 2,572,172 2,528,210 $ — $ 2,528,210 $ — Accrued interest payable 860 860 — 860 — Long-term borrowings 119,052 124,469 — 124,469 — Correspondent interest rate swaps 3,107 3,107 — 3,107 — December 31, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Financial Assets: Cash and cash equivalents $ 263,034 $ 263,034 $ 263,034 $ — $ — Equity investments at fair value 24,000 24,000 $ 24,000 $ — $ — Available for sale securities 212,420 212,420 — 212,420 — FHLB and other bank stock 5,718 5,718 — 5,718 — Loans, net 2,372,506 2,364,646 — — 2,364,646 Loans held for sale 1,470 1,598 — 1,598 — Accrued interest receivable 11,199 11,199 — 11,199 — Bank-owned life insurance 15,969 15,969 — 15,969 — SBA servicing rights 2,953 2,953 — — 2,953 Customer interest rate swaps 3,009 3,009 - 3,009 - Financial Liabilities: Deposits $ 2,459,135 $ 2,427,412 $ — $ 2,427,412 $ — Accrued interest payable 1,303 1,303 — 1,303 — Short-term borrowings 10,000 10,136 — 10,136 — Long-term borrowings 242,020 245,311 — 245,311 — Correspondent interest rate swaps 3,009 3,009 — 3,009 — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Table) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instrument Detail [Abstract] | |
Summary of Interest Rate Swaps Related to Company's Loan Hedging Program | At June 30, 2021 and December 31, 2020 interest rate swaps related to the Company’s loan hedging program that were outstanding are presented in the following table: June 30, 2021 December 31, 2020 (Dollars in thousands) Interest rate swaps on loans with customers Notional amount $ 197,315 $ 85,696 Weighted average remaining term (years) 4.27 4.58 Receive fixed rate (weighted average) 3.23 % 4.23 % Pay variable rate (weighted average) 4.45 % 4.52 % Estimated fair value $ 3,107 $ 3,009 June 30, 2021 December 31, 2020 (Dollars in thousands) Interest rate swaps on loans with correspondents Notional amount $ 197,315 $ 85,696 Weighted average remaining term (years) 4.27 4.58 Pay fixed rate (weighted average) 4.45 % 4.52 % Receive variable rate (weighted average) 3.23 % 4.23 % Estimated fair value $ 3,107 $ 3,009 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Non-Interest Income, Segregated by Revenue Streams in-Scope and Out-of-Scope of Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Noninterest income: | ||||
Non-Interest Income | $ 3,858 | $ 2,565 | $ 6,477 | $ 5,277 |
Accounting Standards Update 2014-09 | ||||
Noninterest income: | ||||
Non-Interest Income (in-scope of Topic 606) | 2,050 | 1,889 | 4,188 | 3,982 |
Out-of-scope of Topic 606 | ||||
Noninterest income: | ||||
Non-Interest Income | 1,808 | 676 | 2,289 | 1,295 |
Deposit accounts core service charges | Accounting Standards Update 2014-09 | ||||
Noninterest income: | ||||
Non-Interest Income (in-scope of Topic 606) | 379 | 312 | 735 | 523 |
Deposit account transaction based fee income | Accounting Standards Update 2014-09 | ||||
Noninterest income: | ||||
Non-Interest Income (in-scope of Topic 606) | 1,160 | 958 | 2,238 | 2,058 |
Swap referral fees | Accounting Standards Update 2014-09 | ||||
Noninterest income: | ||||
Non-Interest Income (in-scope of Topic 606) | 127 | 262 | 557 | 842 |
Mortgage referral fees | Accounting Standards Update 2014-09 | ||||
Noninterest income: | ||||
Non-Interest Income (in-scope of Topic 606) | $ 384 | $ 357 | $ 658 | $ 559 |
Investment Securities - Schedul
Investment Securities - Schedule of Fair Values of Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | $ 438,642 | $ 211,156 |
Securities available for sale, Unrealized Gains | 1,469 | 1,638 |
Securities available for sale, Unrealized Losses | 5,887 | 376 |
Available for sale securities, at fair value | 434,223 | 212,420 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 42,723 | |
Securities available for sale, Unrealized Gains | 1,242 | |
Securities available for sale, Unrealized Losses | 80 | |
Available for sale securities, at fair value | 43,885 | |
State and Municipal Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 35,583 | 36,258 |
Securities available for sale, Unrealized Gains | 226 | 927 |
Securities available for sale, Unrealized Losses | 125 | |
Available for sale securities, at fair value | 35,684 | 37,185 |
Residential Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 360,336 | 132,130 |
Securities available for sale, Unrealized Gains | 1 | 278 |
Securities available for sale, Unrealized Losses | 5,682 | 267 |
Available for sale securities, at fair value | $ 354,654 | 132,142 |
Corporate Bonds and Other Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, Amortized Cost | 42,768 | |
Securities available for sale, Unrealized Gains | 433 | |
Securities available for sale, Unrealized Losses | 109 | |
Available for sale securities, at fair value | $ 43,093 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)Security | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)Security | Jun. 30, 2020USD ($)Security | Dec. 31, 2020USD ($) | |
Investments Debt And Equity Securities [Abstract] | |||||
Taxable interest and dividends on investment securities | $ 1,500,000 | $ 419,000 | $ 2,400,000 | $ 884,000 | |
Tax-exempt interest on investment securities | 156,000 | 38,000 | 313,000 | $ 77,000 | |
Available for sale securities pledged | $ 248,100,000 | $ 248,100,000 | $ 91,500,000 | ||
Debt Securities, Available-for-sale, Restriction Type [Extensible List] | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | us-gaap:CollateralPledgedMember | ||
Available for sale, securities number of positions | Security | 109 | 109 | |||
Available for sale, securities in unrealized loss positions, number of positions | Security | 73 | 73 | |||
Available for sale securities, gross realized gain (loss), excluding other than temporary impairments | $ 0 | ||||
Sales of investment securities available for sale | $ 0 | 0 | 6,914,000 | ||
Gross realized gains | 5,000 | ||||
Number of securities sold | Security | 0 | ||||
Equity investments, at fair value | 23,877,000 | 0 | 23,877,000 | $ 0 | $ 24,000,000 |
Fair value changes | $ (67,000) | $ 0 | $ (333,000) | $ 0 |
Investment Securities - Sched_2
Investment Securities - Schedule of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available for sale: | ||
Due in one year or less, Amortized Cost | $ 318 | |
Due after one year through five years, Amortized Cost | 9,476 | |
Due after five years through ten years, Amortized Cost | 31,014 | |
Due after ten years, Amortized Cost | 37,498 | |
Total available for sale, Amortized Cost | 438,642 | $ 211,156 |
Available for sale: | ||
Due in one year or less, Fair Value | 318 | |
Due after one year through five years. Fair Value | 9,590 | |
Due after five years through ten years. Fair Value | 32,109 | |
Due after ten years. Fair Value | 37,552 | |
Total available for sale, Fair Value | 434,223 | 212,420 |
Residential Mortgage-backed Securities | ||
Available for sale: | ||
Total available for sale, Amortized Cost | 360,336 | 132,130 |
Available for sale: | ||
Total available for sale, Fair Value | $ 354,654 | $ 132,142 |
Investment Securities - Sched_3
Investment Securities - Schedule of Investment Securities Available for Sale and Aggregated by Investment Category and Length of Time Individual Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | $ 14 | $ 70,685 |
Investment Securities, Available for sale, Unrealized Loss, Less than 12 Months | 376 | |
Investment Securities, Available for sale, Fair Value, 12 Months or More | 368,559 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 5,887 | |
Investment Securities, Available for sale, Fair Value | 368,573 | 70,685 |
Investment Securities, Available for sale, Unrealized Loss | 5,887 | 376 |
Corporate Bonds | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, 12 Months or More | 1,011 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 80 | |
Investment Securities, Available for sale, Fair Value | 1,011 | |
Investment Securities, Available for sale, Unrealized Loss | 80 | |
State and Municipal Obligations | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | 14 | |
Investment Securities, Available for sale, Fair Value, 12 Months or More | 12,995 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 125 | |
Investment Securities, Available for sale, Fair Value | 13,009 | |
Investment Securities, Available for sale, Unrealized Loss | 125 | |
Residential Mortgage-backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | 53,598 | |
Investment Securities, Available for sale, Unrealized Loss, Less than 12 Months | 267 | |
Investment Securities, Available for sale, Fair Value, 12 Months or More | 354,553 | |
Investment Securities, Available for sale, Unrealized Loss, 12 Months or More | 5,682 | |
Investment Securities, Available for sale, Fair Value | 354,553 | 53,598 |
Investment Securities, Available for sale, Unrealized Loss | $ 5,682 | 267 |
Corporate Bonds and Other Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment Securities, Available for sale, Fair Value, Less than 12 Months | 17,087 | |
Investment Securities, Available for sale, Unrealized Loss, Less than 12 Months | 109 | |
Investment Securities, Available for sale, Fair Value | 17,087 | |
Investment Securities, Available for sale, Unrealized Loss | $ 109 |
Loans - Summary of Total Loans
Loans - Summary of Total Loans Held in Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [1] | $ 2,272,089 | $ 2,388,532 |
Commercial and Industrial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [2] | 535,608 | 574,986 |
Consumer Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 8,444 | 11,738 | |
Municipal and Other Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 61,549 | 65,438 | |
Acquired Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [1],[3] | 473,557 | 622,111 |
Acquired Loans | Commercial and Industrial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [2],[3] | 39,073 | 53,857 |
Acquired Loans | Consumer Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [3] | 1,854 | 3,088 |
Acquired Loans | Municipal and Other Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [3] | 4,850 | 6,103 |
Organic Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [1] | 1,798,532 | 1,766,421 |
Organic Loans | Commercial and Industrial Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [2] | 496,535 | 521,129 |
Organic Loans | Consumer Loans and Leases | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 6,590 | 8,650 | |
Organic Loans | Municipal and Other Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 56,699 | 59,335 | |
Real Estate | 1-4 Single Family Residential Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 356,503 | 364,139 | |
Real Estate | Construction, Land and Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 345,420 | 415,488 | |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 964,565 | 956,743 | |
Real Estate | Acquired Loans | 1-4 Single Family Residential Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [3] | 76,023 | 93,840 |
Real Estate | Acquired Loans | Construction, Land and Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [3] | 51,718 | 131,734 |
Real Estate | Acquired Loans | Commercial Real Estate Loans (Including Multifamily) | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | [3] | 300,039 | 333,489 |
Real Estate | Organic Loans | 1-4 Single Family Residential Loans | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 280,480 | 270,299 | |
Real Estate | Organic Loans | Construction, Land and Development | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | 293,702 | 283,754 | |
Real Estate | Organic Loans | Commercial Real Estate Loans (Including Multifamily) | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held in portfolio | $ 664,526 | $ 623,254 | |
[1] | Organic loans balance includes $(10.2) million and $(8.2) million of deferred fees, cost, premium and discount as of June 30, 2021 and December 31, 2020, respectively. | ||
[2] | Organic loans balance includes $64.9 million and $70.8 million of the unguaranteed portion of SBA loans as of June 30, 2021 and December 31, 2020, respectively. | ||
[3] | Acquired loans include loans acquired in the acquisitions of Comanche, National Corporation, First Beeville Financial Corporation, and Chandler Bancorp, Inc. and its subsidiary, Citizens State Bank (together, “Citizens”), and the Simmons Bank branch acquisition. All loans originated after acquisition close date are included in organic loans. |
Loans - Summary of Total Loan_2
Loans - Summary of Total Loans Held in Portfolio (Parenthetical) (Details) - Organic Loans - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Deferred fees, cost, premium and discount | $ (10.2) | $ (8.2) |
SBA Loans | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Unguaranteed portion of U.S loans | $ 64.9 | $ 70.8 |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Pledged loans, collateral for FHLB advances | $ 969,600,000 | $ 969,600,000 | $ 927,300,000 | |||
Pledged loans, collateral under PPPLF | 37,200,000 | 37,200,000 | 149,800,000 | |||
Loan sales | $ 0 | |||||
Servicing loans sold | 345,900,000 | 400,300,000 | ||||
Realized gains on servicing loans sold | 99,000 | |||||
Percentage of loan balance purchased | 95.00% | |||||
Main street loan sales | $ 0 | |||||
Unpaid principal balances of loans serviced | 10,500,000 | 10,500,000 | ||||
Amount outstanding | [1] | 2,272,089,000 | 2,272,089,000 | 2,388,532,000 | ||
Unfunded commitments to related parties | 369,362,000 | 369,362,000 | 312,683,000 | |||
Executive Officers and Directors | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unfunded commitments to related parties | 2,000,000 | 2,000,000 | 1,800 | |||
Loan Held for Investment and Long-term Borrowings | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Secured borrowings | 2,200,000 | 2,200,000 | 4,000,000 | |||
Consumer Mortgage Loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Recorded mortgage loans in process of foreclosure | 0 | 0 | 0 | |||
SBA Loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Unpaid principal balances of loans serviced | 173,300,000 | 173,300,000 | $ 193,300,000 | |||
Paycheck protection program loans under CARES Act | 187,700,000 | $ 187,700,000 | ||||
PPP loan interest rate | 1.00% | |||||
Deferred origination fees | $ 4,800,000 | |||||
Weighted average life of debt | 2 years 2 months 12 days | |||||
Amount outstanding | $ 37,200,000 | $ 37,200,000 | ||||
Interest rate | 0.35% | 0.35% | ||||
SBA Loans | Maximum | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Paycheck protection program loans contractual term | 5 years | |||||
SBA Loans | Minimum | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Paycheck protection program loans contractual term | 2 years | |||||
SBA Loans | Third Party | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Servicing loans sold | $ 4,500,000 | $ 2,000,000 | $ 10,100,000 | |||
Realized gains on servicing loans sold | $ 326,000 | $ 155,000 | $ 790,000 | |||
[1] | Organic loans balance includes $(10.2) million and $(8.2) million of deferred fees, cost, premium and discount as of June 30, 2021 and December 31, 2020, respectively. |
Loans - Summary of Loans to Rel
Loans - Summary of Loans to Related Parties and Principal Owners (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Receivables [Abstract] | ||||
Principal outstanding, beginning of year | $ 6,778 | $ 7,447 | $ 7,581 | $ 6,005 |
New loans made in current year | 80 | 1,130 | 1,052 | 2,849 |
Repayments | (787) | (1,649) | (2,562) | (1,926) |
Principal outstanding, end of year | $ 6,071 | $ 6,928 | $ 6,071 | $ 6,928 |
Allowance for Loan and Lease _3
Allowance for Loan and Lease Losses - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($)Loan | Jun. 30, 2020USD ($)Loan | Jun. 30, 2021USD ($)Loan | Jun. 30, 2020USD ($)Loan | Dec. 31, 2020USD ($)Loan | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Provision for loan losses | $ 1,349,000 | $ 2,838,000 | $ 2,435,000 | $ 4,009,000 | |
Non-accrual loans, Past due | $ 7,522,000 | $ 7,522,000 | $ 8,597,000 | ||
Number of restructured loans, defaulted | Loan | 0 | 0 | 0 | 0 | |
Covid-19 | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Description of Loan modifications | Loan modifications made between March 1, 2020 and the earlier of (i) January 1, 2022 or (ii) 60 days after the termination of the COVID-19 national emergency are eligible for this relief if the related loans were not more than 30 days past due as of December 31, 2019. | ||||
Payments remaining in deferral | $ 2,600,000 | $ 2,600,000 | |||
Financing Receivables, Past Due Greater Than 90 Days or More and Still Accruing | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Recorded investment, 90 days past due and still accruing number of loans | Loan | 0 | 0 | 0 | ||
Non-accrual loans, Past due | $ 2,300,000 | $ 2,300,000 | $ 2,200,000 | ||
Financing Receivables, 30 to 59 Days Past Due | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Non-accrual loans, Past due | 1,300,000 | 1,300,000 | 930,000 | ||
Financing Receivables, 60 to 89 Days Past Due | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Non-accrual loans, Past due | 871,000 | 871,000 | $ 545,000 | ||
Paycheck Protection Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Provision for loan losses | $ 0 | ||||
Percentage Reserve | 0.00% | ||||
Purchased Credit Impaired Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Impaired loans | $ 547,000 | $ 547,000 |
Allowance for Loan and Lease _4
Allowance for Loan and Lease Losses - Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | $ 16,314 | $ 7,620 | $ 16,026 | $ 6,737 |
Charge-offs | (1,162) | (562) | (1,992) | (868) |
Recoveries | 26 | 9 | 58 | 27 |
Provision | 1,349 | 2,838 | 2,435 | 4,009 |
Ending Balance | 16,527 | 9,905 | 16,527 | 9,905 |
Commercial and Industrial Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 9,682 | 4,484 | 9,086 | 4,078 |
Charge-offs | (1,136) | (455) | (1,946) | (709) |
Recoveries | 17 | 5 | 34 | 9 |
Provision | 1,183 | 2,279 | 2,572 | 2,935 |
Ending Balance | 9,746 | 6,313 | 9,746 | 6,313 |
Real Estate | 1-4 Single Family Residential Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 84 | 35 | 147 | 31 |
Charge-offs | (12) | (13) | ||
Recoveries | 1 | 1 | ||
Provision | 66 | 72 | 4 | 76 |
Ending Balance | 139 | 107 | 139 | 107 |
Real Estate | Construction, Land and Development Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 1,886 | 1,293 | 1,744 | 1,055 |
Provision | (589) | (35) | (447) | 203 |
Ending Balance | 1,297 | 1,258 | 1,297 | 1,258 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 4,456 | 1,749 | 4,843 | 1,451 |
Provision | 683 | 414 | 296 | 712 |
Ending Balance | 5,139 | 2,163 | 5,139 | 2,163 |
Consumer Loans and Leases | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 113 | 51 | 145 | 68 |
Charge-offs | (14) | (107) | (33) | (159) |
Recoveries | 6 | 2 | 20 | 14 |
Provision | (11) | 103 | (38) | 126 |
Ending Balance | 94 | 49 | 94 | 49 |
Municipal and Other Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Beginning Balance | 93 | 8 | 61 | 54 |
Recoveries | 2 | 2 | 3 | 4 |
Provision | 17 | 5 | 48 | (43) |
Ending Balance | $ 112 | $ 15 | $ 112 | $ 15 |
Allowance for Loan and Lease _5
Allowance for Loan and Lease Losses - Summary of Aging Analysis of Recorded Investment for Delinquent Loans by Portfolio and Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | $ 2,260,322 | $ 2,375,988 |
Recorded investment, Non-accrual | 7,522 | 8,597 |
Recorded investment, Total | 2,272,089 | 2,388,532 |
Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 3,855 | 3,622 |
Recorded investment, Non-accrual | 1,300 | 930 |
Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 390 | 325 |
Recorded investment, Non-accrual | 871 | 545 |
Financing Receivables, Past Due Greater Than 90 Days or More and Still Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Non-accrual | 2,300 | 2,200 |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 530,361 | 567,491 |
Recorded investment, Non-accrual | 4,899 | 4,929 |
Recorded investment, Total | 535,608 | 574,986 |
Commercial and Industrial Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 70 | 2,295 |
Commercial and Industrial Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 278 | 271 |
Real Estate | 1-4 Single Family Residential Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 355,733 | 362,505 |
Recorded investment, Non-accrual | 247 | 1,507 |
Recorded investment, Total | 356,503 | 364,139 |
Real Estate | 1-4 Single Family Residential Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 411 | 99 |
Real Estate | 1-4 Single Family Residential Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 112 | 28 |
Real Estate | Construction, Land and Development | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 342,852 | 415,135 |
Recorded investment, Non-accrual | 217 | |
Recorded investment, Total | 345,420 | 415,488 |
Real Estate | Construction, Land and Development | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 2,568 | 136 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 961,510 | 953,823 |
Recorded investment, Non-accrual | 2,294 | 1,836 |
Recorded investment, Total | 964,565 | 956,743 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 761 | 1,084 |
Consumer Loans and Leases | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 8,357 | 11,618 |
Recorded investment, Non-accrual | 66 | 108 |
Recorded investment, Total | 8,444 | 11,738 |
Consumer Loans and Leases | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 21 | 8 |
Consumer Loans and Leases | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | 4 | |
Municipal and Other Loans | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Current | 61,509 | 65,416 |
Recorded investment, Non-accrual | 16 | |
Recorded investment, Total | 61,549 | 65,438 |
Municipal and Other Loans | Financing Receivables, 30 to 59 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | $ 24 | |
Municipal and Other Loans | Financing Receivables, 60 to 89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Recorded investment, Accruing, Past due | $ 22 |
Allowance for Loan and Lease _6
Allowance for Loan and Lease Losses - Summary of Loans by Key Indicators of Credit Quality (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 2,272,089 | $ 2,388,532 |
Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,190,141 | 2,335,937 |
Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 51,238 | 19,450 |
Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 30,689 | 32,899 |
Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 21 | 246 |
Commercial and Industrial Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 535,608 | 574,986 |
Commercial and Industrial Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 517,304 | 554,685 |
Commercial and Industrial Loans | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 1,985 | 1,332 |
Commercial and Industrial Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 16,303 | 18,723 |
Commercial and Industrial Loans | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 16 | 246 |
Real Estate | 1-4 Single Family Residential Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 356,503 | 364,139 |
Real Estate | 1-4 Single Family Residential Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 355,789 | 360,337 |
Real Estate | 1-4 Single Family Residential Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 714 | 3,802 |
Real Estate | Construction, Land and Development | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 345,420 | 415,488 |
Real Estate | Construction, Land and Development | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 342,851 | 411,151 |
Real Estate | Construction, Land and Development | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 2,569 | 4,120 |
Real Estate | Construction, Land and Development | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 217 | |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 964,565 | 956,743 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 908,374 | 935,865 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 42,672 | 10,913 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 13,519 | 9,965 |
Consumer Loans and Leases | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 8,444 | 11,738 |
Consumer Loans and Leases | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 8,378 | 11,626 |
Consumer Loans and Leases | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 61 | 112 |
Consumer Loans and Leases | Doubtful | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 5 | |
Municipal and Other Loans | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 61,549 | 65,438 |
Municipal and Other Loans | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 57,445 | 62,273 |
Municipal and Other Loans | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | 4,012 | 3,085 |
Municipal and Other Loans | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Total loans | $ 92 | $ 80 |
Allowance for Loan and Lease _7
Allowance for Loan and Lease Losses - Summary of Investment in Loans Disaggregated Based on Method of Evaluating Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | $ 7,743 | $ 8,829 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 2,264,346 | 2,379,703 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 4,004 | 4,079 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 12,523 | 11,947 |
Commercial and Industrial Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 4,942 | 4,978 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 530,666 | 570,008 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 3,376 | 3,488 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 6,370 | 5,598 |
Real Estate | 1-4 Single Family Residential Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 372 | 1,637 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 356,131 | 362,502 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 1 | 1 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 138 | 146 |
Real Estate | Construction, Land and Development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 217 | |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 345,420 | 415,271 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 1,297 | 1,744 |
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 2,294 | 1,837 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 962,271 | 954,906 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 508 | 500 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 4,631 | 4,343 |
Consumer Loans and Leases | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 66 | 108 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 8,378 | 11,630 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 66 | 90 |
Allowance for Credit Loss, Collectively Evaluated for Impairment | 28 | 55 |
Municipal and Other Loans | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans - Recorded Investment, Individually Evaluated for Impairment | 69 | 52 |
Loans - Recorded Investment, Collectively Evaluated for Impairment | 61,480 | 65,386 |
Allowance for Credit Loss, Individually Evaluated for Impairment | 53 | |
Allowance for Credit Loss, Collectively Evaluated for Impairment | $ 59 | $ 61 |
Allowance for Loan and Lease _8
Allowance for Loan and Lease Losses - Summary of Information Regarding Impaired Loans Evaluated for Specific Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Financing Receivable Impaired [Line Items] | |||
Impaired Loans - With Allowance, Recorded Investment | $ 4,767 | $ 5,810 | |
Impaired Loans - With Allowance, Unpaid Principal Balance | 4,817 | 5,829 | |
Impaired Loans - With Allowance, Related Allowance | 4,004 | 4,079 | |
Impaired Loans - With no Allowance, Recorded Investment | 2,976 | 3,019 | |
Impaired Loans - With no Allowance, Unpaid Principal Balance | 2,979 | 3,006 | |
Average Recorded Investment | 7,666 | $ 7,596 | |
Commercial and Industrial Loans | |||
Financing Receivable Impaired [Line Items] | |||
Impaired Loans - With Allowance, Recorded Investment | 3,781 | 4,407 | |
Impaired Loans - With Allowance, Unpaid Principal Balance | 3,825 | 4,453 | |
Impaired Loans - With Allowance, Related Allowance | 3,376 | 3,488 | |
Impaired Loans - With no Allowance, Recorded Investment | 1,161 | 566 | |
Impaired Loans - With no Allowance, Unpaid Principal Balance | 1,164 | 571 | |
Average Recorded Investment | 5,497 | 3,590 | |
Real Estate | 1-4 Single Family Residential Loans | |||
Financing Receivable Impaired [Line Items] | |||
Impaired Loans - With Allowance, Recorded Investment | 4 | 5 | |
Impaired Loans - With Allowance, Unpaid Principal Balance | 3 | 5 | |
Impaired Loans - With Allowance, Related Allowance | 1 | 1 | |
Impaired Loans - With no Allowance, Recorded Investment | 368 | 1,632 | |
Impaired Loans - With no Allowance, Unpaid Principal Balance | 369 | 1,612 | |
Average Recorded Investment | 671 | 1,547 | |
Real Estate | Construction, Land and Development | |||
Financing Receivable Impaired [Line Items] | |||
Impaired Loans - With no Allowance, Recorded Investment | 217 | ||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 215 | ||
Average Recorded Investment | 216 | ||
Real Estate | Commercial Real Estate Loans (Including Multifamily) | |||
Financing Receivable Impaired [Line Items] | |||
Impaired Loans - With Allowance, Recorded Investment | 847 | 1,308 | |
Impaired Loans - With Allowance, Unpaid Principal Balance | 853 | 1,281 | |
Impaired Loans - With Allowance, Related Allowance | 508 | 500 | |
Impaired Loans - With no Allowance, Recorded Investment | 1,447 | 528 | |
Impaired Loans - With no Allowance, Unpaid Principal Balance | 1,446 | 528 | |
Average Recorded Investment | 1,375 | 2,232 | |
Consumer Loans and Leases | |||
Financing Receivable Impaired [Line Items] | |||
Impaired Loans - With Allowance, Recorded Investment | 66 | 90 | |
Impaired Loans - With Allowance, Unpaid Principal Balance | 66 | 90 | |
Impaired Loans - With Allowance, Related Allowance | 66 | 90 | |
Impaired Loans - With no Allowance, Recorded Investment | 24 | ||
Impaired Loans - With no Allowance, Unpaid Principal Balance | 28 | ||
Average Recorded Investment | 57 | $ 11 | |
Municipal and Other Loans | |||
Financing Receivable Impaired [Line Items] | |||
Impaired Loans - With Allowance, Recorded Investment | 69 | ||
Impaired Loans - With Allowance, Unpaid Principal Balance | 70 | ||
Impaired Loans - With Allowance, Related Allowance | 53 | ||
Impaired Loans - With no Allowance, Recorded Investment | 52 | ||
Impaired Loans - With no Allowance, Unpaid Principal Balance | $ 52 | ||
Average Recorded Investment | $ 66 |
Allowance for Loan and Lease _9
Allowance for Loan and Lease Losses - Summary of Troubled Debt Restructurings (TDRs) Based Upon Delinquency Status (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020Contract | Jun. 30, 2021USD ($)Contract | Jun. 30, 2020Contract | Dec. 31, 2020USD ($)Contract | |
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 19 | 20 | ||
Recorded Investment | $ | $ 1,090 | $ 883 | ||
Allowance attributable to TDRs | $ | $ 408 | $ 421 | ||
Commercial and Industrial Loans | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 1 | 5 | ||
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 2 | |||
Performing TDRs | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 5 | 6 | ||
Recorded Investment | $ | $ 220 | $ 231 | ||
Performing TDRs | Commercial and Industrial Loans | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 2 | 2 | ||
Recorded Investment | $ | $ 43 | $ 49 | ||
Performing TDRs | Real Estate | 1-4 Single Family Residential Loans | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 2 | 3 | ||
Recorded Investment | $ | $ 124 | $ 130 | ||
Performing TDRs | Municipal and Other Loans | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 1 | 1 | ||
Recorded Investment | $ | $ 53 | $ 52 | ||
Nonperforming TDRs | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | 14 | 14 | ||
Recorded Investment | $ | $ 870 | $ 652 |
Allowance for Loan and Lease_10
Allowance for Loan and Lease Losses - Summary of Newly Designated TDRs and Modifications to Existing TDRs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020USD ($)Contract | Jun. 30, 2021USD ($)Contract | Jun. 30, 2020USD ($)Contract | Dec. 31, 2020Contract | |
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | Contract | 19 | 20 | ||
Commercial and Industrial Loans | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | Contract | 1 | 5 | ||
Pre-Modification Outstanding Recorded Investment | $ 276 | $ 444 | ||
Post-Modification Outstanding Recorded Investment | 276 | 444 | ||
Related Allowance | $ 276 | $ 332 | ||
Real Estate | Commercial Real Estate Loans (Including Multifamily) | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of contracts | Contract | 2 | |||
Pre-Modification Outstanding Recorded Investment | $ 321 | |||
Post-Modification Outstanding Recorded Investment | $ 321 |
Goodwill and Intangibles - Sche
Goodwill and Intangibles - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning goodwill | $ 77,681 | $ 68,503 |
Arising from business combination | 11,456 | |
Measurement Period Adjustments | (2,278) | |
Ending goodwill | 77,681 | 77,681 |
Core deposit intangible | 19,722 | 19,722 |
Less: Accumulated amortization | (13,482) | (11,904) |
Core deposit intangible, net | $ 6,240 | $ 7,818 |
Goodwill and Intangibles - Addi
Goodwill and Intangibles - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 755 | $ 919 | $ 1,578 | $ 1,865 |
Core Deposit Intangible | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 755 | $ 919 | $ 1,600 | $ 1,900 |
Goodwill and Intangibles - Sc_2
Goodwill and Intangibles - Schedule of Estimated Amortization Expense for Intangibles (Details) - Core Deposit Intangible $ in Thousands | Jun. 30, 2021USD ($) |
Finite Lived Intangible Assets [Line Items] | |
Remainder of 2021 | $ 1,450 |
2022 | 2,219 |
2023 | 1,575 |
2024 | 745 |
2025 | 200 |
2026 | $ 51 |
SBA Servicing Asset - Additiona
SBA Servicing Asset - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Servicing Assets At Fair Value [Line Items] | |||||
Unpaid principal balances of loans serviced | $ 10,500 | $ 10,500 | |||
SBA Loans | |||||
Servicing Assets At Fair Value [Line Items] | |||||
Unpaid principal balances of loans serviced | 173,300 | 173,300 | $ 193,300 | ||
Loan expenses | $ 203 | $ 256 | $ 527 | $ 266 |
SBA Servicing Asset - Summary o
SBA Servicing Asset - Summary of Activity Pertaining to SBA Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Transfers And Servicing Of Financial Assets [Abstract] | ||||
Beginning balance | $ 2,821 | $ 3,055 | $ 2,953 | $ 3,355 |
Origination of servicing assets | 84 | 38 | 189 | |
Change in fair value: | ||||
Due to run-off | (135) | (135) | (270) | (275) |
Due to market changes | (119) | 111 | (154) | (154) |
Ending balance | $ 2,567 | $ 3,115 | $ 2,567 | $ 3,115 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Lessee Lease Description [Line Items] | ||
Lessee, operating lease, existence of option to extend | true | |
Lessee, operating lease, existence of option to terminate | true | |
Right of use asset | $ 5,569 | $ 5,569 |
Operating lease liability | $ 5,730 | $ 5,730 |
Weighted average lease term | 4 years 3 months 18 days | 4 years 3 months 18 days |
Operating lease costs | $ 513 | $ 1,300 |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Operating lease, remaining lease terms | 1 year | 1 year |
Minimum | Property | ||
Lessee Lease Description [Line Items] | ||
Operating lease term | 1 year | 1 year |
Minimum | Equipment | ||
Lessee Lease Description [Line Items] | ||
Operating lease, remaining lease terms | 1 year | 1 year |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Operating lease, remaining lease terms | 10 years | 10 years |
Maximum | Property | ||
Lessee Lease Description [Line Items] | ||
Operating lease term | 10 years | 10 years |
Maximum | Equipment | ||
Lessee Lease Description [Line Items] | ||
Operating lease, remaining lease terms | 3 years | 3 years |
Leases - Schedule of Additional
Leases - Schedule of Additional Information Related to Company's Leases (Details) | Jun. 30, 2021 | |
Leases [Abstract] | ||
Weighted-average remaining term (in years) - operating leases | 4 years 3 months 18 days | |
Weighted-average discount rate - operating leases | 4.00% | [1] |
[1] | The incremental borrowing rate used to calculate the lease liability was determined based on facts and circumstances of the economic environment and the Company's credit standing as of the effective date of ASC 842. Additionally, the total lease term and total lease payments were also considered in determining the rate. |
Leases - Schedule of Company's
Leases - Schedule of Company's Operating Lease Liabilities by Contractual Maturity (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Contractual Obligation Fiscal Year Maturity Schedule [Abstract] | |
2021 (excluding 6 months ended June 30, 2021) | $ 1,113 |
2022 | 1,784 |
2023 | 1,009 |
2024 | 812 |
2025 | 625 |
Thereafter | 883 |
Total Lease Payments | 6,226 |
Less: Imputed Interest | 496 |
Operating lease liability | $ 5,730 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Company's Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021 | Jun. 30, 2021 | |
Leases [Abstract] | ||
Operating cash flows (fixed payments) included in occupancy and equipment expenses | $ 559 | $ 1,130 |
Operating cash flows (liability reduction) included in occupancy and equipment expenses | $ 501 | $ 839 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits by Category (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits By Component Alternative [Abstract] | ||
Noninterest-bearing demand deposits | $ 772,032 | $ 727,543 |
Interest-bearing demand deposits | 529,513 | 472,075 |
Interest-bearing NOW accounts | 10,763 | 10,288 |
Savings and money market accounts | 651,791 | 610,571 |
Time deposits | 608,073 | 638,658 |
Total deposits | 2,572,172 | 2,459,135 |
Time deposits $100,000 and greater | 496,588 | 515,738 |
Time deposits $250,000 and greater | 195,533 | 190,236 |
Related party deposits (executive officers and directors) | $ 14,763 | $ 18,767 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Deposits By Component Alternative [Abstract] | ||
Aggregate amount of overdraft demand deposits reclassified to loans | $ 138,000 | $ 88,000 |
Aggregate amount of maturities for time deposits, period | 5 years | |
Aggregate amount of maturities for time deposits, year one | $ 504,500,000 | |
Aggregate amount of maturities for time deposits, year two | 78,100,000 | |
Aggregate amount of maturities for time deposits, year three | 9,800,000 | |
Aggregate amount of maturities for time deposits, year four | 6,800,000 | |
Aggregate amount of maturities for time deposits, year five | 8,800,000 | |
Brokered certificates of deposits | $ 0 | $ 0 |
FHLB and Other Borrowings - Add
FHLB and Other Borrowings - Additional Information (Details) | Jul. 24, 2020USD ($) | May 31, 2017USD ($) | Jun. 30, 2021USD ($)LineOfCredit | Dec. 31, 2020USD ($) | |
Federal Home Loan Bank Advances [Line Items] | |||||
Pledged loans, collateral for FHLB advances | $ 969,600,000 | $ 927,300,000 | |||
FHLB maximum borrowing capacity | 778,200,000 | ||||
Amount outstanding | [1] | 2,272,089,000 | 2,388,532,000 | ||
Loan Held for Investment and Long-term Borrowings | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
Secured borrowings | 2,200,000 | 4,000,000 | |||
Subordinated Notes Due 2030 | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
Interest rate | 6.00% | ||||
Fixed floating rate of subordinated notes | 6.00% | ||||
Proceeds from issuance of subordinated debt | $ 37,000,000 | ||||
Frequency of payment | quarterly | ||||
Amount outstanding | 37,000,000 | 37,000,000 | |||
Secured Debt | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
Aggregate amount of maturities for secured borrowings, year one | 0 | ||||
Aggregate amount of maturities for secured borrowings, year two | 0 | ||||
Aggregate amount of maturities for secured borrowings, year three | 0 | ||||
Aggregate amount of maturities for secured borrowings, year four | 0 | ||||
Aggregate amount of maturities for secured borrowings, year five | 0 | ||||
Paycheck Protection Program Liquidity Facility | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
Amount outstanding | $ 37,200,000 | 149,800,000 | |||
Interest rate | 0.35% | ||||
Unsecured Line Of Credit | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
Maximum borrowing capacity | $ 115,000,000 | ||||
Line of credit facility, drawn amount | $ 0 | ||||
Number of lines of credit | LineOfCredit | 5 | ||||
Third Party Lender | Unsecured Line Of Credit | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
Maximum borrowing capacity | $ 20,000,000 | ||||
Line of credit facility, expiration date | May 12, 2022 | ||||
Line of credit facility, remaining borrowing capacity | 50,000,000 | ||||
Line of credit facility, drawn amount | $ 0 | 0 | |||
Third Party Lender | Unsecured Line Of Credit | London Interbank Offered Rate (LIBOR) | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
Debt instrument basis spread on variable rate | 4.00% | ||||
Short-term Debt | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
FHLB borrowings | 0 | $ 10,000,000 | |||
FHLB borrowings, average interest rate | 0.70% | ||||
Long-term Debt | |||||
Federal Home Loan Bank Advances [Line Items] | |||||
FHLB borrowings | $ 60,900,000 | $ 65,000,000 | |||
FHLB borrowings, average interest rate | 2.29% | ||||
FHLB outstanding callable | $ 16,000,000 | $ 16,000,000 | |||
[1] | Organic loans balance includes $(10.2) million and $(8.2) million of deferred fees, cost, premium and discount as of June 30, 2021 and December 31, 2020, respectively. |
FHLB and Other Borrowings - Sch
FHLB and Other Borrowings - Schedule of Long-Term Borrowings from FHLB Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Federal Home Loan Bank, Advances, Fiscal Year Maturity [Abstract] | ||
Due in remainder of fiscal year | $ 4,010 | |
Due in next twelve | 1,405 | $ 8,636 |
Due in year two | 6,141 | 4,584 |
Due in year three | 10,496 | 6,489 |
Due in year four | 2,578 | 10,723 |
Due in year five | 18,678 | 2,649 |
Due in year six | 18,809 | |
Total long-term FHLB borrowings | $ 43,308 | $ 51,890 |
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Weighted average interest rate, remainder of fiscal year | 0.36% | |
Weighted average interest rate, with in one year | 0.95% | 1.73% |
Weighted average interest rate, year two | 1.29% | 2.23% |
Weighted average interest rate, year three | 1.84% | 2.44% |
Weighted average interest rate, year four | 0.74% | 2.62% |
Weighted average interest rate, year five | 1.51% | 2.26% |
Weighted average interest rate, year six | 2.26% | |
Minimum | 2021 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 1.48% | 1.48% |
Minimum | 2022 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 1.86% | 1.86% |
Minimum | 2023 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 1.86% | 1.86% |
Minimum | 2024 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 1.86% | 1.86% |
Minimum | 2025 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 1.86% | 1.86% |
Minimum | 2026-2032 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 2.10% | 2.10% |
Maximum | 2021 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 2.99% | 2.99% |
Maximum | 2022 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 2.99% | 2.99% |
Maximum | 2023 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 2.99% | 2.99% |
Maximum | 2024 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 2.99% | 2.99% |
Maximum | 2025 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 2.99% | 2.99% |
Maximum | 2026-2032 | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Range of contractual interest rate | 2.99% | 2.99% |
Stock-Based Compensation and _3
Stock-Based Compensation and Other Benefit Plans - Summary of Option Activity (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
2008 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options, Outstanding | 840,872 |
Options, Exercised | (130,700) |
Options, Forfeited | (260) |
Options, Outstanding | 709,912 |
Options, Vested and exercisable | 701,122 |
Weighted Average Exercise Price, Exercised | $ / shares | $ 13.61 |
Weighted Average Exercise Price, Forfeited | $ / shares | 14.15 |
Weighted Average Exercise Price, Outstanding | $ / shares | 13.45 |
Weighted Average Exercise Price, Vested and exercisable | $ / shares | $ 13.46 |
Aggregate Intrinsic Value, Exercised | $ | $ 1,206 |
Aggregate Intrinsic Value, Outstanding | $ | 6,666 |
Vested and exercisable at June 30, 2021 | $ | $ 6,577 |
Weighted Average Remaining Contractual Life (Years), Outstanding | 3 years 21 days |
Weighted Average Remaining Contractual Life (Years), Vested and Exercisable | 3 years 10 days |
2017 Stock Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options, Outstanding | 197,714 |
Options, Exercised | (2,250) |
Options, Forfeited | (250) |
Options, Expired | (5,958) |
Options, Outstanding | 189,256 |
Options, Vested and exercisable | 131,988 |
Weighted Average Exercise Price, Exercised | $ / shares | $ 15 |
Weighted Average Exercise Price, Outstanding | $ / shares | 17.48 |
Weighted Average Exercise Price, Vested and exercisable | $ / shares | $ 17.01 |
Aggregate Intrinsic Value, Exercised | $ | $ 18 |
Aggregate Intrinsic Value, Outstanding | $ | 1,014 |
Vested and exercisable at June 30, 2021 | $ | $ 769 |
Weighted Average Remaining Contractual Life (Years), Outstanding | 6 years 2 months 8 days |
Weighted Average Remaining Contractual Life (Years), Vested and Exercisable | 6 years 1 month 2 days |
Stock-Based Compensation and _4
Stock-Based Compensation and Other Benefit Plans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | |
Oasis Warrants | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Warrants shares, issue | 19,140 | ||
Warrant exercise price | $ 12.84 | $ 12.84 | |
Warrants exercisable expire date | Nov. 30, 2022 | ||
2008 Stock Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 7,000 | $ 7,000 | |
Compensation cost recognized weighted average remaining period | 3 months 18 days | ||
2017 Stock Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | 240,000 | $ 240,000 | |
Compensation cost recognized weighted average remaining period | 1 year 7 months 24 days | ||
2017 Stock Plan | Restricted Stock Unit Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 3,750,000 | $ 1,611,000 | $ 3,750,000 |
Compensation cost recognized weighted average remaining period | 4 years 29 days | 4 years 5 months 15 days | |
Restricted stock units granted | 81,807 | ||
Aggregate fair value of restricted stock | $ 1,800 |
Stock-Based Compensation and _5
Stock-Based Compensation and Other Benefit Plans - Summary of Activity Indicated Related to Restricted Stock Units (Details) - 2017 Stock Plan - Restricted Stock Unit Awards | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Shares, Outstanding, Beginning balance | 200,239 |
Shares, Granted | 81,807 |
Shares, Vested | (25,691) |
Shares, Forfeited | (8,981) |
Shares, Outstanding, Ending balance | 247,374 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 13.31 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 16.50 |
Stock Based Compensation and Ot
Stock Based Compensation and Other Benefit Plans - Summary of Stock Based Compensation Expense (Details) - 2017 Stock Plan - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized compensation expense related to stock-based compensation | $ 240 | $ 240 | |
Weighted-average life over which expense is expected to be recognized (years) | 1 year 7 months 24 days | ||
Restricted Stock Unit Awards | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | 369 | $ 473 | |
Unrecognized compensation expense related to stock-based compensation | $ 3,750 | $ 1,611 | $ 3,750 |
Weighted-average life over which expense is expected to be recognized (years) | 4 years 29 days | 4 years 5 months 15 days |
Stock-Based Compensation and _6
Stock-Based Compensation and Other Benefit Plans - Summary of Activity for the Oasis Bank Warrants (Details) - Oasis Warrants $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Warrants, Outstanding | shares | 19,140 |
Warrants, Exercised | shares | (3,828) |
Warrants, Outstanding | shares | 15,312 |
Warrants, Vested and exercisable | shares | 15,312 |
Weighted Average Exercise Price, Outstanding | $ / shares | $ 12.84 |
Weighted Average Exercise Price, Exercised | $ / shares | 12.84 |
Weighted Average Exercise Price, Outstanding | $ / shares | 12.84 |
Weighted Average Exercise Price, Vested and exercisable | $ / shares | $ 12.84 |
Aggregate Intrinsic Value, Exercised | $ | $ 38 |
Aggregate Intrinsic Value, Outstanding | $ | 153 |
Aggregate Intrinsic Value, Vested and exercisable | $ | $ 153 |
Weighted Average Remaining Contractual Life (Years), Outstanding | 1 year 8 months 1 day |
Weighted Average Remaining Contractual Life (Years), Vested and Exercisable | 1 year 8 months 1 day |
Basic and Diluted Earnings Pe_3
Basic and Diluted Earnings Per Common Share - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income available to common stockholders | $ 12,410 | $ 7,694 | $ 22,496 | $ 11,768 |
Weighted average number of common shares - basic | 17,152,217 | 17,581,959 | 17,128,233 | 17,883,034 |
Effect of dilutive securities: | ||||
Employee stock-based compensation awards and warrants | 475,741 | 30,960 | 443,832 | 116,172 |
Weighted average number of common shares - diluted | 17,627,958 | 17,612,919 | 17,572,066 | 17,999,206 |
Basic earnings per common share | $ 0.72 | $ 0.44 | $ 1.31 | $ 0.66 |
Diluted earnings per common share | $ 0.70 | $ 0.44 | $ 1.28 | $ 0.65 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 19.60% | 20.50% | 20.10% | 16.30% |
Discrete income tax benefit | $ 575 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Unfunded Commitments | Commitments for Exposure to Credit Loss | ||
Loss Contingencies [Line Items] | ||
Reserve for unfunded commitments | $ 90 | $ 90 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Unfunded Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Supply Commitment [Line Items] | ||
Unfunded commitments, Total | $ 369,362 | $ 312,683 |
Commercial and Standby Letters of Credit | ||
Supply Commitment [Line Items] | ||
Unfunded commitments, Total | 4,018 | 3,272 |
Unfunded Loan Commitments | ||
Supply Commitment [Line Items] | ||
Unfunded commitments, Total | $ 365,344 | $ 309,411 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Total available for sale, Fair Value | $ 434,223 | $ 212,420 |
State and Municipal Obligations | ||
Assets: | ||
Total available for sale, Fair Value | 35,684 | 37,185 |
Residential Mortgage-backed Securities | ||
Assets: | ||
Total available for sale, Fair Value | 354,654 | 132,142 |
Level 2 | ||
Assets: | ||
Total available for sale, Fair Value | 434,223 | 212,420 |
Corporate Bonds | ||
Assets: | ||
Total available for sale, Fair Value | 43,885 | |
Fair Value Measurements on Recurring Basis | ||
Assets: | ||
Total available for sale, Fair Value | 467,915 | 245,391 |
Fair Value Measurements on Recurring Basis | State and Municipal Obligations | ||
Assets: | ||
Total available for sale, Fair Value | 35,684 | 37,185 |
Fair Value Measurements on Recurring Basis | Residential Mortgage-backed Securities | ||
Assets: | ||
Total available for sale, Fair Value | 354,654 | 132,142 |
Fair Value Measurements on Recurring Basis | SBA Servicing Rights | ||
Assets: | ||
Total available for sale, Fair Value | 2,567 | 2,953 |
Fair Value Measurements on Recurring Basis | Equity Securities at Fair Value | ||
Assets: | ||
Total available for sale, Fair Value | 23,877 | 24,000 |
Fair Value Measurements on Recurring Basis | Customer Interest Rate Swaps | ||
Assets: | ||
Total available for sale, Fair Value | 3,107 | 3,009 |
Fair Value Measurements on Recurring Basis | Cash Flow Hedge Derivative | ||
Assets: | ||
Total available for sale, Fair Value | 1,034 | |
Fair Value Measurements on Recurring Basis | Correspondent Interest Rate Swaps | ||
Liabilities: | ||
Total available for sale, Fair Value | 3,107 | 3,009 |
Fair Value Measurements on Recurring Basis | Level 1 | ||
Assets: | ||
Total available for sale, Fair Value | 23,877 | 24,000 |
Fair Value Measurements on Recurring Basis | Level 1 | Equity Securities at Fair Value | ||
Assets: | ||
Total available for sale, Fair Value | 23,877 | 24,000 |
Fair Value Measurements on Recurring Basis | Level 2 | ||
Assets: | ||
Total available for sale, Fair Value | 441,471 | 218,438 |
Fair Value Measurements on Recurring Basis | Level 2 | State and Municipal Obligations | ||
Assets: | ||
Total available for sale, Fair Value | 35,684 | 37,185 |
Fair Value Measurements on Recurring Basis | Level 2 | Residential Mortgage-backed Securities | ||
Assets: | ||
Total available for sale, Fair Value | 354,654 | 132,142 |
Fair Value Measurements on Recurring Basis | Level 2 | Customer Interest Rate Swaps | ||
Assets: | ||
Total available for sale, Fair Value | 3,107 | 3,009 |
Fair Value Measurements on Recurring Basis | Level 2 | Cash Flow Hedge Derivative | ||
Assets: | ||
Total available for sale, Fair Value | 1,034 | |
Fair Value Measurements on Recurring Basis | Level 2 | Correspondent Interest Rate Swaps | ||
Liabilities: | ||
Total available for sale, Fair Value | 3,107 | 3,009 |
Fair Value Measurements on Recurring Basis | Level 3 | ||
Assets: | ||
Total available for sale, Fair Value | 2,567 | 2,953 |
Fair Value Measurements on Recurring Basis | Level 3 | SBA Servicing Rights | ||
Assets: | ||
Total available for sale, Fair Value | 2,567 | 2,953 |
Fair Value Measurements on Recurring Basis | Corporate Bonds | ||
Assets: | ||
Total available for sale, Fair Value | 43,885 | 43,093 |
Fair Value Measurements on Recurring Basis | Corporate Bonds | Level 2 | ||
Assets: | ||
Total available for sale, Fair Value | $ 43,885 | $ 43,093 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Fair Value Disclosures [Abstract] | ||
Fair value, assets, level 1 to level 2 transfers | $ 0 | $ 0 |
Fair value, assets, level 2 to level 1 transfers | 0 | 0 |
Fair value, assets, transfers into level 3 | 0 | 0 |
Fair value, assets, transfers out of level 3 | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Assets Measured at Fair Value on Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets (classified in Level 3): | ||
Other real estate owned and repossessed assets | $ 140 | $ 133 |
Level 3 | Fair Value Measurements on Non-Recurring Basis | ||
Assets (classified in Level 3): | ||
Impaired loans | 5,146 | 4,948 |
Other real estate owned and repossessed assets | $ 140 | $ 133 |
Fair Value Measurements - Signi
Fair Value Measurements - Significant Unobservable Inputs Used in Recurring and Non-Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Other real estate owned | $ 140 | $ 133 | ||||
SBA servicing asset | 2,567 | $ 2,821 | 2,953 | $ 3,115 | $ 3,055 | $ 3,355 |
Level 3 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
SBA servicing asset | 2,567 | 2,953 | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Impaired loans | 5,146 | 4,948 | ||||
Other real estate owned | $ 140 | $ 133 | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Weighted Average | Collateral Discounts | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Range/Weighted Average | 33.70% | 34.10% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Weighted Average | Collateral Discounts and Estimated Cost to Sell | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Range/Weighted Average | 10.00% | 10.00% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Minimum | Collateral Discounts | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Range/Weighted Average | 0.00% | 0.00% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Maximum | Collateral Discounts | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Range/Weighted Average | 100.00% | 100.00% | ||||
Level 3 | Fair Value Measurements on Non-Recurring Basis | Third Party Appraisals | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Impaired loans | $ 5,146 | $ 4,948 | ||||
Other real estate owned | $ 140 | $ 133 | ||||
Level 3 | Fair Value Measurements on Recurring Basis | Weighted Average | Conditional Prepayment Rate | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Range/Weighted Average | 12.90% | 12.50% | ||||
Level 3 | Fair Value Measurements on Recurring Basis | Weighted Average | Discount Rate | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Range/Weighted Average | 10.00% | 10.00% | ||||
Level 3 | Fair Value Measurements on Recurring Basis | Discounted Cash Flows | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
SBA servicing asset | $ 2,567 | $ 2,953 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||||||
Total available for sale, Fair Value | $ 434,223 | $ 212,420 | ||||
SBA servicing rights | 2,567 | $ 2,821 | 2,953 | $ 3,115 | $ 3,055 | $ 3,355 |
Level 1 | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 140,099 | 263,034 | ||||
Equity investments at fair value | 23,877 | 24,000 | ||||
Level 2 | ||||||
Financial Assets: | ||||||
Total available for sale, Fair Value | 434,223 | 212,420 | ||||
FHLB and other bank stock | 5,734 | 5,718 | ||||
Loans held for sale | 3,455 | 1,598 | ||||
Accrued interest receivable | 9,071 | 11,199 | ||||
Bank-owned life insurance | 31,161 | 15,969 | ||||
Customer interest rate swaps | 3,107 | 3,009 | ||||
Cash flow hedge derivative | 1,034 | |||||
Financial Liabilities: | ||||||
Deposits | 2,528,210 | 2,427,412 | ||||
Accrued interest payable | 860 | 1,303 | ||||
Short-term borrowings | 10,136 | |||||
Long-term borrowings | 124,469 | 245,311 | ||||
Correspondent interest rate swaps | 3,107 | 3,009 | ||||
Level 3 | ||||||
Financial Assets: | ||||||
Loans, net | 2,248,890 | 2,364,646 | ||||
SBA servicing rights | 2,567 | 2,953 | ||||
Carrying Value | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 140,099 | 263,034 | ||||
Equity investments at fair value | 23,877 | 24,000 | ||||
Total available for sale, Fair Value | 434,223 | 212,420 | ||||
FHLB and other bank stock | 5,734 | 5,718 | ||||
Loans, net | 2,255,562 | 2,372,506 | ||||
Loans held for sale | 3,220 | 1,470 | ||||
Accrued interest receivable | 9,071 | 11,199 | ||||
Bank-owned life insurance | 31,161 | 15,969 | ||||
SBA servicing rights | 2,567 | 2,953 | ||||
Customer interest rate swaps | 3,107 | 3,009 | ||||
Cash flow hedge derivative | 1,034 | |||||
Financial Liabilities: | ||||||
Deposits | 2,572,172 | 2,459,135 | ||||
Accrued interest payable | 860 | 1,303 | ||||
Short-term borrowings | 10,000 | |||||
Long-term borrowings | 119,052 | 242,020 | ||||
Correspondent interest rate swaps | 3,107 | 3,009 | ||||
Fair Value | ||||||
Financial Assets: | ||||||
Cash and cash equivalents | 140,099 | 263,034 | ||||
Equity investments at fair value | 23,877 | 24,000 | ||||
Total available for sale, Fair Value | 434,223 | 212,420 | ||||
FHLB and other bank stock | 5,734 | 5,718 | ||||
Loans, net | 2,248,890 | 2,364,646 | ||||
Loans held for sale | 3,455 | 1,598 | ||||
Accrued interest receivable | 9,071 | 11,199 | ||||
Bank-owned life insurance | 31,161 | 15,969 | ||||
SBA servicing rights | 2,567 | 2,953 | ||||
Customer interest rate swaps | 3,107 | 3,009 | ||||
Cash flow hedge derivative | 1,034 | |||||
Financial Liabilities: | ||||||
Deposits | 2,528,210 | 2,427,412 | ||||
Accrued interest payable | 860 | 1,303 | ||||
Short-term borrowings | 10,136 | |||||
Long-term borrowings | 124,469 | 245,311 | ||||
Correspondent interest rate swaps | $ 3,107 | $ 3,009 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jan. 06, 2021 | Dec. 31, 2020 | |
Derivatives Fair Value [Line Items] | ||||
Changes in value of hedging instrument recorded in other comprehensive income | $ 442 | $ (822) | ||
Interest Rate Swap | ||||
Derivatives Fair Value [Line Items] | ||||
Total cash held as collateral for swaps | $ 3,400 | 3,400 | $ 2,600 | |
Amount of pay-fixed receive-float forward | $ 80,000 | |||
Interest rate of pay-fixed receive-float forward | 0.5515% | |||
Changes in value of hedging instrument recorded in other comprehensive income | $ 442,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Interest Rate Swaps Related to Company's Loan Hedging Program (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Interest Rate Swaps on Loans with Customers | ||
Derivatives Fair Value [Line Items] | ||
Notional amount | $ 197,315 | $ 85,696 |
Weighted average remaining term (years) | 4 years 3 months 7 days | 4 years 6 months 29 days |
Receive/Pay fixed rate (weighted average) | 3.23% | 4.23% |
Pay/Receive variable rate (weighted average) | 4.45% | 4.52% |
Estimated fair value | $ 3,107 | $ 3,009 |
Interest Rate Swaps on Loans with Correspondents | ||
Derivatives Fair Value [Line Items] | ||
Notional amount | $ 197,315 | $ 85,696 |
Weighted average remaining term (years) | 4 years 3 months 7 days | 4 years 6 months 29 days |
Receive/Pay fixed rate (weighted average) | 4.45% | 4.52% |
Pay/Receive variable rate (weighted average) | 3.23% | 4.23% |
Estimated fair value | $ 3,107 | $ 3,009 |