Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 06, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | OBNK | |
Entity Registrant Name | ORIGIN BANCORP, INC. | |
Entity CIK | 0001516912 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | true | |
Entity Common Stock, Shares Outstanding | 23,745,985 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 66,312 | $ 71,008 |
Interest-bearing deposits in banks | 44,928 | 45,670 |
Total cash and cash equivalents | 111,240 | 116,678 |
Securities: | ||
Available for sale | 563,826 | 575,644 |
Held to maturity (fair value of $18,941 and $19,136 at March 31, 2019, and December 31, 2018, respectively) | 19,033 | 19,169 |
Securities carried at fair value through income | 11,510 | 11,361 |
Total securities | 594,369 | 606,174 |
Non-marketable equity securities held in other financial institutions | 42,314 | 42,149 |
Loans held for sale ($15,598 and $21,562 at fair value, at March 31, 2019, and December 31, 2018, respectively) | 42,265 | 52,210 |
Loans, net of allowance for loan losses of $35,578 and $34,203 at March 31, 2019, and December 31, 2018, respectively; $18,387 and $18,571 at fair value, at March 31, 2019, and December 31, 2018, respectively) | 3,802,765 | 3,754,902 |
Premises and equipment, net | 78,684 | 75,014 |
Mortgage servicing rights | 23,407 | 25,114 |
Cash surrender value of bank-owned life insurance | 32,888 | 32,706 |
Goodwill and other intangible assets, net | 32,497 | 32,861 |
Accrued interest receivable and other assets | 111,772 | 83,768 |
Total assets | 4,872,201 | 4,821,576 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing deposits | 977,919 | 951,015 |
Interest-bearing deposits | 2,101,706 | 2,027,720 |
Time deposits | 818,623 | 804,403 |
Total deposits | 3,898,248 | 3,783,138 |
Federal Home Loan Bank (FHLB) advances and other borrowings | 335,053 | 445,224 |
Junior subordinated debentures, net | 9,651 | 9,644 |
Accrued expenses and other liabilities | 61,127 | 33,791 |
Total liabilities | 4,304,079 | 4,271,797 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Preferred stock, no par value, 2,000,000 shares authorized, zero issued at March 31, 2019, and December 31, 2018 | 0 | 0 |
Common stock ($5.00 par value; 50,000,000 shares authorized; 23,745,985 and 23,726,559 shares issued at March 31, 2019, and December 31, 2018, respectively) | 118,730 | 118,633 |
Additional paid‑in capital | 242,579 | 242,041 |
Retained earnings | 205,289 | 191,585 |
Accumulated other comprehensive income (loss) | 1,524 | (2,480) |
Total equity | 568,122 | 549,779 |
Total liabilities and stockholders' equity | $ 4,872,201 | $ 4,821,576 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 18,941 | $ 19,136 |
Loans held for sale at fair value | 15,598 | 21,562 |
Allowance for loan losses | 35,578 | 34,203 |
Loans at fair value | $ 18,387 | $ 18,571 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value ($ per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 23,745,985 | 23,726,559 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and dividend income | ||
Interest and fees on loans | $ 49,175 | $ 37,474 |
Investment securities-taxable | 3,341 | 1,740 |
Investment securities-nontaxable | 858 | 1,184 |
Interest and dividend income on assets held in other financial institutions | 1,120 | 1,046 |
Total interest and dividend income | 54,494 | 41,444 |
Interest expense | ||
Interest-bearing deposits | 10,497 | 5,980 |
FHLB advances and other borrowings | 1,834 | 604 |
Subordinated debentures | 137 | 136 |
Total interest expense | 12,468 | 6,720 |
Net interest income | 42,026 | 34,724 |
Provision (benefit) for credit losses | 1,005 | (1,524) |
Net interest income after provision (benefit) for credit losses | 41,021 | 36,248 |
Noninterest income | ||
Mortgage banking revenue | 2,606 | 2,394 |
Gain (loss) on sales and disposals of other assets, net | 3 | (61) |
Other fee income | 276 | 452 |
Other income | 1,893 | 1,894 |
Total noninterest income | 11,604 | 9,800 |
Noninterest expense | ||
Salaries and employee benefits | 22,613 | 18,241 |
Occupancy and equipment, net | 4,044 | 3,653 |
Data processing | 1,587 | 1,473 |
Electronic banking | 689 | 743 |
Communications | 586 | 515 |
Advertising and marketing | 798 | 657 |
Professional services | 904 | 665 |
Regulatory assessments | 711 | 720 |
Loan related expenses | 669 | 713 |
Office and operations | 1,481 | 1,278 |
Other expenses | 1,299 | 1,199 |
Total noninterest expense | 35,381 | 29,857 |
Income before income tax expense | 17,244 | 16,191 |
Income tax expense | 3,089 | 2,784 |
Net income | 14,155 | 13,407 |
Preferred stock dividends | 0 | 1,115 |
Net income allocated to participating stockholders | 0 | 553 |
Net income available to common stockholders | $ 14,155 | $ 11,739 |
Basic earnings per common share ($ per share) | $ 0.60 | $ 0.60 |
Diluted earnings per common share ($ per share) | $ 0.60 | $ 0.60 |
Service charges and fees | ||
Noninterest income | ||
Revenue from contracts with customers | $ 3,316 | $ 3,014 |
Insurance commission and fee income | ||
Noninterest income | ||
Revenue from contracts with customers | $ 3,510 | $ 2,107 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 14,155 | $ 13,407 |
Securities available for sale and transferred securities: | ||
Net unrealized holding gains (losses) arising during the period | 5,165 | (5,683) |
Net losses realized as a yield adjustment in interest on investment securities | (3) | (3) |
Change in the net unrealized gains (losses) on investment securities, before tax | 5,162 | (5,686) |
Income tax expense (benefit) related to net unrealized gains (losses) arising during the period | 1,084 | (1,194) |
Change in the net unrealized gain (loss) on investment securities, net of tax | 4,078 | (4,492) |
Cash flow hedges: | ||
Net unrealized (losses) gains arising during the period | (80) | 165 |
Reclassification adjustment for (gain) losses included in net income | (14) | 17 |
Change in the net unrealized (loss) gain on cash flow hedges, before tax | (94) | 182 |
Income tax expense related to net unrealized (losses) gains on cash flow hedges | (20) | 38 |
Change in the net unrealized (loss) gain on cash flow hedges, net of tax | (74) | 144 |
Other comprehensive income (loss), net of tax | 4,004 | (4,348) |
Comprehensive income | $ 18,159 | $ 9,059 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock Series SBLF | [1] | Preferred Stock Series D | Common Stock | Preferred StockPreferred Stock Series SBLF | Preferred StockPreferred Stock Series D | Additional Paid-In Capital | Retained Earnings | Retained EarningsPreferred Stock Series SBLF | [1] | Retained EarningsPreferred Stock Series D | Accumulated Other Comprehensive Income (loss) | Less: Retirement Plan-Owned Shares |
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2017 | 19,518,752 | |||||||||||||
Stockholders' equity, beginning balance at Dec. 31, 2017 | $ 420,351 | $ 97,594 | $ 48,260 | $ 16,998 | $ 146,061 | $ 145,122 | $ 1,307 | $ (34,991) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 13,407 | 13,407 | ||||||||||||
Other comprehensive income (loss), net of tax | (4,348) | (4,348) | ||||||||||||
Recognition of stock compensation, net (in shares) | 6,489 | |||||||||||||
Recognition of stock compensation, net | 172 | $ 32 | 140 | |||||||||||
Dividends declared - preferred stock | $ (1,086) | $ (29) | $ (1,086) | $ (29) | ||||||||||
Dividends declared - common stock ($0.0325 per share) | (634) | (634) | ||||||||||||
Common shares outstanding, ending balance (in shares) at Mar. 31, 2018 | 19,525,241 | |||||||||||||
Stockholders' equity, ending balance at Mar. 31, 2018 | 427,833 | $ 97,626 | 48,260 | 16,998 | 146,201 | 156,498 | (2,759) | (34,991) | ||||||
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2018 | 23,726,559 | |||||||||||||
Stockholders' equity, beginning balance at Dec. 31, 2018 | 549,779 | $ 118,633 | 0 | 0 | 242,041 | 191,585 | (2,480) | 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Net income | 14,155 | 14,155 | ||||||||||||
Other comprehensive income (loss), net of tax | 4,004 | 4,004 | ||||||||||||
Recognition of stock compensation, net (in shares) | 19,426 | |||||||||||||
Recognition of stock compensation, net | 635 | $ 97 | 538 | |||||||||||
Dividends declared - common stock ($0.0325 per share) | (772) | (772) | ||||||||||||
Common shares outstanding, ending balance (in shares) at Mar. 31, 2019 | 23,745,985 | |||||||||||||
Stockholders' equity, ending balance at Mar. 31, 2019 | $ 568,122 | $ 118,730 | $ 0 | $ 0 | $ 242,579 | $ 205,289 | $ 1,524 | $ 0 | ||||||
[1] | The dividend rate on the Senior Non-Cumulative Perpetual Preferred stock, Series SBLF ("SBLF preferred stock") was payable quarterly at a fixed annual rate of 9%. The Company redeemed all 48,260 shares of the SBLF preferred stock in June 2018. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 1 Months Ended | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Preferred stock dividends declared ($ per share) | $ 0.0325 | ||
Common stock dividends declared ($ per share) | $ 0.0325 | $ 0.0325 | |
Preferred Stock Series SBLF | |||
Fixed annual rate | 9.00% | ||
Shares redeemed (shares) | 48,260 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 14,155 | $ 13,407 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (benefit) for credit losses | 1,005 | (1,524) |
Depreciation and amortization | 1,597 | 1,342 |
Net amortization on securities | 32 | 353 |
Amortization of investments in tax credit funds | 405 | 488 |
Deferred income tax (benefit) expense | (346) | 533 |
Stock-based compensation expense | 470 | 194 |
Originations of mortgage loans held for sale | (46,100) | (74,938) |
Proceeds from mortgage loans held for sale | 49,507 | 84,528 |
Gain on mortgage loans held for sale, including origination of servicing rights | (1,380) | (2,049) |
Gain on mortgage loans held for sale, including origination of servicing rights | (1,097) | (2,024) |
Net (gain) loss on disposals of premises and equipment | (11) | 26 |
Increase in the cash surrender value of life insurance | (182) | (192) |
Net losses on sales and write downs of other real estate owned | 8 | 35 |
Other operating activities, net | (830) | 4,198 |
Net cash provided by operating activities | 18,330 | 26,401 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (6,825) | (118,334) |
Maturities, paydowns and calls of securities available for sale | 23,777 | 102,671 |
Maturities, paydowns and calls of securities held to maturity | 135 | 327 |
Net purchases of non-marketable equity securities held in other financial institutions | (22) | 0 |
Originations of mortgage warehouse loans | (786,112) | (943,243) |
Proceeds from pay-offs of mortgage warehouse loans | 791,239 | 1,007,133 |
Net increase in loans, excluding mortgage warehouse and loans held for sale | (49,377) | (70,945) |
Return of capital on limited partnership investments | 75 | 144 |
Capital calls on limited partnership investments | 0 | (1,450) |
Purchases of premises and equipment | (5,058) | (544) |
Proceeds from sales of premises and equipment | 11 | 53 |
Proceeds from sales of other real estate owned | 72 | 148 |
Net cash used in investing activities | (32,085) | (24,040) |
Cash flows from financing activities: | ||
Net increase in deposits | 115,110 | 68,724 |
Repayments on FHLB advances | (207) | (248) |
Net decrease in other borrowed funds | (100,000) | 0 |
Net decrease in securities sold under agreements to repurchase | (5,983) | (8,996) |
Dividends paid | (768) | (1,749) |
Taxes paid related to net share settlement of equity awards | 0 | (22) |
Cash received from exercise of stock options | 165 | 0 |
Net cash provided by financing activities | 8,317 | 57,709 |
Net (decrease) increase in cash and cash equivalents | (5,438) | 60,070 |
Cash and cash equivalents at beginning of period | 116,678 | 187,187 |
Cash and cash equivalents at end of period | 111,240 | 247,257 |
Interest paid | 12,106 | 6,879 |
Income taxes paid | 0 | 1 |
Significant non-cash transactions: | ||
Real estate acquired in settlement of loans | $ 0 | $ 405 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 - Significant Accounting Policies Nature of Operations . Origin Bancorp, Inc. ("Company") is a financial holding company headquartered in Ruston, Louisiana. The Company's wholly owned bank subsidiary, Origin Bank ("Bank"), provides a broad range of financial services to businesses, municipalities, high net worth individuals and retail clients. The Company currently operates 42 banking centers located in North Louisiana, Central Mississippi, Dallas/Fort Worth and Houston, Texas. The Company principally operates in one business segment, community banking. Basis of Presentation . The condensed consolidated financial statements in this quarterly report on Form 10-Q include the accounts of the Company and all other entities in which Origin Bancorp, Inc. has a controlling financial interest, including the Bank and Davison Insurance Agency, LLC ("Davison Insurance"), doing business as Thomas & Farr ("T&F") and Reeves, Coon and Funderburg ("RCF"). All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements in this quarterly report on Form 10-Q have not been audited by an independent registered public accounting firm, excluding the figures as of December 31, 2018, but in the opinion of management, reflect all adjustments necessary for fair presentation of the Company's financial position and results of operations for the periods presented. These condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and with the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018, included in the Company's annual report on Form 10-K ("2018 Form 10-K") filed with the SEC. Operating results for the interim periods disclosed herein are not necessarily indicative of results that may be expected for a full year. Certain prior year amounts have been reclassified to conform to the current year financial statement presentations. These reclassifications did not impact previously reported net income or comprehensive income. The Company's significant accounting policies, including those for loans, impaired loans, non-accrual loans and allowance for loan losses, are described in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2018, included in the Company's 2018 Form 10-K ("Note 1"). There have been no significant changes to these policies since December 31, 2018. Effective January 1, 2019, two accounting policies were revised and updated from the accounting policies described in Note 1. Effective January 1, 2019, the Company began calculating earnings per share using the treasury method due to the conversion and redemption of all material participating securities during 2018, which eliminated the requirement to calculate earnings per share using the two-class method. See the discussion below titled "Earnings Per Share " for an explanation of these methodologies. Additionally, on January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) , resulting in a change to the Company's lease accounting policies. See the discussion below titled "Effect of Recently Adopted Accounting Standards" for a description of policy revisions resulting from the Company's adoption of ASU 2016-02. There have been no other significant changes to the Company's accounting policies since December 31, 2018. For interim reporting purposes, the Company follows the same accounting policies and considers each interim period as an integral part of an annual period. Use of Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Material estimates that are particularly susceptible to change include the allowance for loan losses; the evaluation of investment securities for other than temporary impairment; fair value measurements of assets and liabilities; and income taxes. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Company's consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual results could differ from those estimates. Earnings Per Share . Basic and diluted earnings per common share for periods beginning after December 31, 2018, are calculated using the treasury method. Under the treasury method, basic earnings per share is calculated as net income divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities in calculating earnings per share. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under stock options and restricted stock awards. Basic and diluted earnings per common share for periods ending on or before December 31, 2018, were calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared (distributed earnings) and participation rights in undistributed earnings. Distributed and undistributed earnings were allocated between common and participating security stockholders based on their respective rights to receive dividends. Share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents were considered participating securities (e.g., restricted stock grants). Preferred stock that receives dividends based on dividends paid on common stock was also considered a participating security (e.g., Series D preferred stock). Undistributed net losses were not allocated to holders of participating securities, as they did not have a contractual obligation to fund the losses incurred by the Company. Net income attributable to common stockholders was then divided by the weighted average number of common shares outstanding during the period, net of participating securities and reduced for average unallocated shares held by the Company's Employee Retirement Plan ("Retirement Plan"). Diluted income per common share under the two-class method considers common stock issuable under the assumed release of unvested restricted stock awards, convertible preferred stock being converted to common stock, and the assumed exercise of stock options granted. The dilutive effect of share-based payment awards that were not deemed to be participating securities was calculated using the treasury stock method, which assumes that the proceeds from exercise were used to purchase common stock at the average market price for the period. The dilutive effect of participating securities was calculated using the more dilutive of the treasury stock method (which assumes that the participating securities are exercised/released) or the two-class method (which assumes that the participating securities are not exercised/released and earnings are reallocated between common and participating security stockholders). Potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. Effect of Recently Adopted Accounting Standards ASU No. 2016-02 — Leases (Topic 842). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use ("ROU") asset on the balance sheet for operating leases. Accounting for finance (formerly known as capital) leases is substantially unchanged. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this ASU as of January 1, 2019. Please see Note 6 - Leases for more information. Effect of Newly Issued But Not Yet Effective Accounting Standards ASU No. 2018-13, Fair Value Measurement - (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in Financial Accounting Standards Board ("FASB") Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. For public business entities that file reports with the SEC, the amendments in the update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact of this ASU on the consolidated financial statements and disclosures. ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP. However Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This ASU affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company anticipates a significant change in the processes and procedures to calculate the loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses at the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact on its results of operations, financial position or disclosures. However, the Company has begun developing processes and procedures to ensure the Company is compliant at the required adoption date. Among other things, the Company has initiated data gathering and assessment to support forecasting of asset quality, loan balances, and portfolio net charge-offs and developing asset quality forecast models in preparation for the implementation of this standard. For public business entities that are SEC filers, the amendments in the update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 - Earnings Per Share Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2019 (1) 2018 (1) Basic earnings per common share Net income $ 14,155 $ 13,407 Less: Dividends to preferred stock — 1,115 Less: Net income allocated to participating stockholders — 553 Net income available to common stockholders $ 14,155 $ 11,739 Weighted average common shares outstanding 23,569,576 19,459,278 Basic earnings per common share $ 0.60 $ 0.60 Diluted earnings per common share Diluted earnings applicable to common stockholders (2) $ 14,155 $ 11,771 Weighted average diluted common shares outstanding: Weighted average common shares outstanding 23,569,576 19,459,278 Dilutive effect of stock-based awards 206,773 216,195 Weighted average diluted common shares outstanding 23,776,349 19,675,473 Diluted earnings per common share $ 0.60 $ 0.60 ____________________________ (1) Series D preferred stockholders were participating stockholders during the three months ended March 31, 2018, requiring the Company to calculate earnings per share using the two-class method. Subsequent to the conversion of all Series D preferred stock in June 2018, the Company used the treasury method for the computation of earnings per share, including the period ended March 31, 2019. (2) The two-class method for the computation of earnings per share was used for the quarter ended March 31, 2018. Net income available to common stockholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common stock equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate earnings to common stockholders and participating securities for the purposes of calculating diluted earnings per share. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3 - Securities The following table is a summary of the amortized cost and estimated fair value, including gross unrealized gains and losses, of available for sale, held to maturity and securities carried at fair value through income for the dates indicated: (Dollars in thousands) Amortized Gross Gross Fair March 31, 2019 Available for sale: State and municipal securities $ 93,222 $ 2,093 $ (22 ) $ 95,293 Corporate bonds 11,007 300 — 11,307 U.S. Government and agency securities 61,273 109 (9 ) 61,373 Commercial mortgage-backed securities 12,180 188 — 12,368 Residential mortgage-backed securities 185,023 1,462 (993 ) 185,492 Commercial collateralized mortgage obligations 4,377 19 — 4,396 Residential collateralized mortgage obligations 194,985 514 (1,902 ) 193,597 Total $ 562,067 $ 4,685 $ (2,926 ) $ 563,826 Held to maturity: State and municipal securities $ 19,033 $ — $ (92 ) $ 18,941 Securities carried at fair value through income: State and municipal securities (1) $ 11,503 $ — $ — $ 11,510 December 31, 2018 Available for sale: State and municipal securities $ 99,780 $ 1,266 $ (163 ) $ 100,883 Corporate bonds 10,997 102 (65 ) 11,034 U.S. Government and agency securities 61,122 82 (54 ) 61,150 Commercial mortgage-backed securities 16,672 94 — 16,766 Residential mortgage-backed securities 188,058 417 (2,160 ) 186,315 Residential collateralized mortgage obligations 202,422 315 (3,241 ) 199,496 Total $ 579,051 $ 2,276 $ (5,683 ) $ 575,644 Held to maturity: State and municipal securities $ 19,169 $ — $ (33 ) $ 19,136 Securities carried at fair value through income: State and municipal securities (1) $ 11,503 $ — $ — $ 11,361 ____________________________ (1) Securities carried at fair value through income have no unrealized gains or losses at the balance sheet date as all changes in value have been recognized in the condensed consolidated statements of income. See Note 5 - Fair Value of Financial Instruments for more information. Securities with unrealized losses at March 31, 2019 , and December 31, 2018 , aggregated by investment category and those individual securities that have been in a continuous unrealized loss position for less than 12 months and for 12 months or more were as follows: (Dollars in thousands) Less than 12 Months 12 Months or More Total March 31, 2019 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for sale: State and municipal securities $ 1,050 $ (1 ) $ 2,319 $ (21 ) $ 3,369 $ (22 ) U.S. Government and agency securities 737 (9 ) — — 737 (9 ) Residential mortgage-backed securities 1,056 (5 ) 73,622 (988 ) 74,678 (993 ) Residential collateralized mortgage obligations 8,561 (15 ) 119,291 (1,887 ) 127,852 (1,902 ) Total $ 11,404 $ (30 ) $ 195,232 $ (2,896 ) $ 206,636 $ (2,926 ) Held to maturity: State and municipal securities $ 18,941 $ (92 ) $ — $ — $ 18,941 $ (92 ) December 31, 2018 Available for sale: State and municipal securities $ 13,101 $ (50 ) $ 8,463 $ (113 ) $ 21,564 $ (163 ) Corporate bonds 7,932 (65 ) — — 7,932 (65 ) U.S. Government and agency securities 56,271 (54 ) — — 56,271 (54 ) Residential mortgage-backed securities 18,836 (65 ) 77,471 (2,095 ) 96,307 (2,160 ) Residential collateralized mortgage obligations 14,711 (79 ) 120,601 (3,162 ) 135,312 (3,241 ) Total $ 110,851 $ (313 ) $ 206,535 $ (5,370 ) $ 317,386 $ (5,683 ) Held to maturity: State and municipal securities $ 13,921 $ (33 ) $ — $ — $ 13,921 $ (33 ) At March 31, 2019 , the Company had 77 individual securities that were in an unrealized loss position. The unrealized losses for each of the securities related to market interest rate changes. The Company has considered the current market for the securities in an unrealized loss position, as well as the severity and duration of the impairments, and expects that the value will recover. Management does not intend to sell these investments until the fair value exceeds amortized cost and it is more likely than not that the Company will not be required to sell debt securities before the anticipated recovery of the amortized cost basis of the security; thus, the impairment is determined not to be other-than-temporary. The following table presents the amortized cost and fair value of securities available for sale and held to maturity at March 31, 2019 , grouped by contractual maturity. Mortgage-backed securities and collateralized mortgage obligations, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities and collateralized mortgage obligations will differ from contractual maturities as a result of prepayments made on the underlying mortgages. (Dollars in thousands) Held to Maturity Available for Sale March 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ — $ — $ 59,523 $ 59,552 Due after one year through five years 13,820 13,808 24,357 24,731 Due after five years through ten years — — 76,290 78,255 Due after ten years 5,213 5,133 5,332 5,435 Commercial mortgage-backed securities — — 12,180 12,368 Residential mortgage-backed securities — — 185,023 185,492 Commercial collateralized mortgage obligations — — 4,377 4,396 Residential collateralized mortgage obligations — — 194,985 193,597 Total $ 19,033 $ 18,941 $ 562,067 $ 563,826 The following table presents carrying amounts of securities pledged as collateral for public deposits and repurchase agreements for the period ends presented. (Dollars in thousands) March 31, 2019 December 31, 2018 Carrying value of securities pledged to secure public deposits $ 334,352 $ 364,055 Carrying value of securities pledged to repurchase agreements 39,477 48,847 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans | Note 4 - Loans Loans consisted of the following: (Dollars in thousands) March 31, 2019 December 31, 2018 Loans held for sale $ 42,265 $ 52,210 Loans held for investment: Loans secured by real estate: Commercial real estate $ 1,202,269 $ 1,228,402 Construction/land/land development 488,167 429,660 Residential real estate 638,064 629,714 Total real estate 2,328,500 2,287,776 Commercial and industrial 1,287,300 1,272,566 Mortgage warehouse lines of credit 202,744 207,871 Consumer 19,799 20,892 Total loans held for investment (1) 3,838,343 3,789,105 Less: Allowance for loan losses 35,578 34,203 Net loans held for investment $ 3,802,765 $ 3,754,902 ____________________________ (1) Includes net deferred loan fees of $3.3 million and $3.2 million at March 31, 2019 , and December 31, 2018 , respectively. Included in total loans held for investment were $18.4 million and $18.6 million of commercial real estate loans for which the fair value option was elected as of March 31, 2019 , and December 31, 2018 , respectively. The Company mitigates the interest rate component of fair value risk on loans at fair value by entering into derivative interest rate contracts. See Note 5 - Fair Value of Financial Instruments for more information on loans for which the fair value option has been elected. Credit quality indicators . As part of the Company's commitment to manage the credit quality of its loan portfolio, management annually updates and evaluates certain credit quality indicators, which include but are not limited to (i) weighted-average risk rating of the loan portfolio, (ii) net charge-offs, (iii) level of non-performing loans, (iv) level of classified loans, and (v) the general economic conditions in the states in which the Company operates. The Company maintains an internal risk rating system where ratings are assigned to individual loans based on assessed risk. Loan risk ratings are the primary indicator of credit quality for the loan portfolio and are continually evaluated to ensure they are appropriate based on currently available information. The following is a summary description of the Company's internal risk ratings: • Pass (1-6) Loans within this risk rating are further categorized as follows: Minimal risk (1) Well-collateralized by cash equivalent instruments held by the Bank. Moderate risk (2) Borrowers with excellent asset quality and liquidity. Borrowers' capitalization and liquidity exceed industry norms. Borrowers in this category have significant levels of liquid assets and have a low level of leverage. Better than average risk (3) Borrowers with strong financial strength and excellent liquidity that consistently demonstrate strong operating performance. Borrowers in this category generally have a sizable net worth that can be converted into liquid assets within 12 months. Average risk (4) Borrowers with sound credit quality and financial performance, including liquidity. Borrowers are supported by sufficient cash flow coverage generated through operations across the full business cycle. Marginally acceptable risk (5) Loans generally meet minimum requirements for an acceptable loan in accordance with lending policy, but possess one or more attributes that cause the overall risk profile to be higher than the majority of newly approved loans. Watch (6) A passing loan with one or more factors that identify a potential weakness in the overall ability of the borrower to repay the loan. These weaknesses are generally mitigated by other factors that reduce the risk of delinquency or loss. • Special Mention (7) This grade is intended to be temporary and includes borrowers whose credit quality has deteriorated and is at risk of further decline. • Substandard (8) This grade includes "Substandard" loans under regulatory guidelines. Substandard loans exhibit a well-defined weakness that jeopardizes debt repayment in accordance with contractual agreements, even though the loan may be performing. These obligations are characterized by the distinct possibility that a loss may be incurred if these weaknesses are not corrected and repayment may be dependent upon collateral liquidation or secondary source of repayment. • Doubtful (9) This grade includes "Doubtful" loans under regulatory guidelines. Such loans are placed on nonaccrual status and repayment may be dependent upon collateral with no readily determinable valuation or valuations that are highly subjective in nature. Repayment for these loans is considered improbable based on currently existing facts and circumstances. • Loss (0) This grade includes "Loss" loans under regulatory guidelines. Loss loans are charged-off or written down when repayment is not expected. The recorded investment in loans by credit quality indicator at March 31, 2019 , and December 31, 2018 , excluding loans held for sale, were as follows: March 31, 2019 (Dollars in thousands) Pass Special Mention Substandard Doubtful Loss Total Loans secured by real estate: Commercial real estate $ 1,169,170 $ 14,272 $ 18,827 $ — $ — $ 1,202,269 Construction/land/land development 484,912 1,004 2,251 — — 488,167 Residential real estate 628,612 1,132 8,320 — — 638,064 Total real estate 2,282,694 16,408 29,398 — — 2,328,500 Commercial and industrial 1,217,732 25,253 44,315 — — 1,287,300 Mortgage warehouse lines of credit 202,744 — — — — 202,744 Consumer 19,593 — 206 — — 19,799 Total loans held for investment $ 3,722,763 $ 41,661 $ 73,919 $ — $ — $ 3,838,343 December 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Loss Total Loans secured by real estate: Commercial real estate $ 1,206,194 $ 3,101 $ 19,107 $ — $ — $ 1,228,402 Construction/land/land development 426,770 157 2,733 — — 429,660 Residential real estate 617,996 1,142 10,576 — — 629,714 Total real estate 2,250,960 4,400 32,416 — — 2,287,776 Commercial and industrial 1,190,718 34,964 46,884 — — 1,272,566 Mortgage warehouse lines of credit 207,871 — — — — 207,871 Consumer 20,712 — 180 — — 20,892 Total loans held for investment $ 3,670,261 $ 39,364 $ 79,480 $ — $ — $ 3,789,105 The following tables present the Company's loan portfolio aging analysis at the dates indicated: March 31, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ 3,079 $ — $ 8,370 $ 11,449 $ 1,190,820 $ 1,202,269 $ — Construction/land/land development 572 612 56 1,240 486,927 488,167 — Residential real estate 2,424 317 2,988 5,729 632,335 638,064 — Total real estate 6,075 929 11,414 18,418 2,310,082 2,328,500 — Commercial and industrial 5,143 145 14,021 19,309 1,267,991 1,287,300 — Mortgage warehouse lines of credit — — — — 202,744 202,744 — Consumer 73 36 5 114 19,685 19,799 — Total loans held for investment $ 11,291 $ 1,110 $ 25,440 $ 37,841 $ 3,800,502 $ 3,838,343 $ — December 31, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ 458 $ 1,409 $ 7,224 $ 9,091 $ 1,219,311 $ 1,228,402 $ — Construction/land/land development 2,657 — 435 3,092 426,568 429,660 — Residential real estate 2,137 527 4,149 6,813 622,901 629,714 — Total real estate 5,252 1,936 11,808 18,996 2,268,780 2,287,776 — Commercial and industrial 276 8,263 6,157 14,696 1,257,870 1,272,566 — Mortgage warehouse lines of credit — — — — 207,871 207,871 — Consumer 383 8 2 393 20,499 20,892 — Total loans held for investment $ 5,911 $ 10,207 $ 17,967 $ 34,085 $ 3,755,020 $ 3,789,105 $ — The following tables detail activity in the allowance for loan losses by portfolio segment. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Three Months Ended March 31, 2019 (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Benefit) (1) Ending Balance Loans secured by real estate: Commercial real estate $ 8,999 $ 89 $ 51 $ 297 $ 9,258 Construction/land/land development 3,331 — 1 347 3,679 Residential real estate 5,705 — 27 (155 ) 5,577 Commercial and industrial 15,616 511 1,074 296 16,475 Mortgage warehouse lines of credit 316 — — 49 365 Consumer 236 8 7 (11 ) 224 Total $ 34,203 $ 608 $ 1,160 $ 823 $ 35,578 ____________________________ (1) The $1.0 million provision for credit losses on the condensed consolidated statements of income includes a $823,000 net loan loss provision and a $182,000 provision for off-balance sheet commitments for the three months ended March 31, 2019 . Three Months Ended March 31, 2018 (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Benefit) (1) Ending Balance Loans secured by real estate: Commercial real estate $ 8,998 $ 9 $ 127 $ 1,028 $ 10,144 Construction/land/land development 2,950 — 1 (244 ) 2,707 Residential real estate 5,807 9 19 (346 ) 5,471 Commercial and industrial 18,831 1,703 174 (1,965 ) 15,337 Mortgage warehouse lines of credit 214 — — (56 ) 158 Consumer 283 17 24 25 315 Total $ 37,083 $ 1,738 $ 345 $ (1,558 ) $ 34,132 ____________________________ (1) The $1.5 million benefit for credit losses on the condensed consolidated statements of income includes a $1.6 million net loan loss benefit and a $34,000 provision for off-balance sheet commitments for the three months ended March 31, 2018 . The following tables present the balance of loans receivable by method of impairment evaluation at the dates indicated: March 31, 2019 (Dollars in thousands) Period End Allowance Allocated to Loans Individually Evaluated for Impairment Period End Allowance Allocated to Loans Collectively Evaluated for Impairment Period End Loan Balance Individually Evaluated for Impairment Period End Loan Balance Collectively Evaluated for Impairment (1) Loans secured by real estate: Commercial real estate $ — $ 9,258 $ 9,099 $ 1,174,783 Construction/land/land development 1 3,678 1,002 487,165 Residential real estate 15 5,562 4,867 633,197 Commercial and industrial 183 16,292 15,728 1,271,572 Mortgage warehouse lines of credit — 365 — 202,744 Consumer 1 223 168 19,631 Total $ 200 $ 35,378 $ 30,864 $ 3,789,092 ____________________________ (1) Excludes $18.4 million of commercial real estate loans at fair value, which are not evaluated for impairment due to the fair value option election. See Note 5 - Fair Value of Financial Instruments for more information. December 31, 2018 (Dollars in thousands) Period End Allowance Allocated to Loans Individually Evaluated for Impairment Period End Allowance Allocated to Loans Collectively Evaluated for Impairment Period End Loan Balance Individually Evaluated for Impairment Period End Loan Balance Collectively Evaluated for Impairment (1) Loans secured by real estate: Commercial real estate $ 5 $ 8,994 $ 8,773 $ 1,201,058 Construction/land/land development 19 3,312 1,017 428,643 Residential real estate 68 5,637 6,876 622,838 Commercial and industrial 255 15,361 16,428 1,256,138 Mortgage warehouse lines of credit — 316 — 207,871 Consumer 19 217 184 20,708 Total $ 366 $ 33,837 $ 33,278 $ 3,737,256 ____________________________ (1) Excludes $18.6 million of commercial real estate loans at fair value, which are not evaluated for impairment due to the fair value option election. See Note 5 - Fair Value of Financial Instruments for more information. The following tables present impaired loans at the dates indicated. No mortgage warehouse lines of credit were impaired at either March 31, 2019 , or December 31, 2018 . March 31, 2019 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with an Allowance Total Recorded Investment Allocation of Allowance for Loan Losses Loans secured by real estate: Commercial real estate $ 11,318 $ 9,052 $ 47 $ 9,099 $ — Construction/land/land development 1,320 876 126 1,002 1 Residential real estate 5,764 4,165 702 4,867 15 Total real estate 18,402 14,093 875 14,968 16 Commercial and industrial 18,304 15,278 450 15,728 183 Consumer 185 — 168 168 1 Total impaired loans $ 36,891 $ 29,371 $ 1,493 $ 30,864 $ 200 December 31, 2018 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with an Allowance Total Recorded Investment Allocation of Allowance for Loan Losses Loans secured by real estate: Commercial real estate $ 10,894 $ 8,725 $ 48 $ 8,773 $ 5 Construction/land/land development 1,329 838 179 1,017 19 Residential real estate 7,815 6,092 784 6,876 68 Total real estate 20,038 15,655 1,011 16,666 92 Commercial and industrial 18,883 15,806 622 16,428 255 Consumer 202 — 184 184 19 Total impaired loans $ 39,123 $ 31,461 $ 1,817 $ 33,278 $ 366 The average recorded investment and interest recognized on impaired loans while classified as impaired for the three months ended March 31, 2019 and 2018 , were as follows: Three Months Ended March 31, 2019 2018 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Loans secured by real estate: Commercial real estate $ 9,076 $ 5 $ 9,864 $ 27 Construction/land/land development 1,013 2 1,847 9 Residential real estate 5,953 7 7,665 24 Total real estate 16,042 14 19,376 60 Commercial and industrial 16,191 6 17,717 88 Consumer 178 1 256 3 Total impaired loans $ 32,411 $ 21 $ 37,349 $ 151 All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Subsequent receipts on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Troubled debt restructurings ("TDRs") are included in certain loan categories within impaired loans. At March 31, 2019 , the Company had no funding commitments in connection with impaired loans. Non-performing (nonaccrual) loans held for investment were as follows: (Dollars in thousands) March 31, 2019 December 31, 2018 Loans secured by real estate: Commercial real estate $ 8,622 $ 8,281 Construction/land/land development 922 935 Residential real estate 5,196 6,668 Total real estate 14,740 15,884 Commercial and industrial 15,309 15,792 Consumer 206 180 Total nonaccrual loans $ 30,255 $ 31,856 For the three months ended March 31, 2019 and 2018 , gross interest income that would have been recorded if the nonaccruing loans had been current in accordance with their original terms was $355,000 and $430,000 , respectively. No interest income was recorded on these loans while they were considered nonaccrual during the three months ended March 31, 2019 or 2018 . The Company elects the fair value option for recording residential mortgage loans held for sale, as well as certain commercial real estate and commercial and industrial loans, in accordance with U.S. GAAP. The Company had $1.4 million of nonaccrual mortgage loans held for sale that were recorded using the fair value option election at March 31, 2019 , and $741,000 at December 31, 2018 . There were no nonaccrual loans held for investment that were recorded using the fair value option election at March 31, 2019 , or December 31, 2018 . The following is a summary of loans classified as TDRs. (Dollars in thousands) March 31, 2019 December 31, 2018 TDRs Nonaccrual TDRs $ 6,082 $ 5,793 Performing TDRs 1,270 2,054 Total $ 7,352 $ 7,847 The following table presents the pre-modification balance of TDR modifications that occurred during the periods indicated and the ending balances by concession type as of the period presented. Three Months Ended March 31, 2019 (Dollars in thousands) Number of Loans Restructured Pre-modification Recorded Balance Term Concessions Combination Total Modifications Loans secured by real estate: Construction/land/land development 1 $ 361 $ — $ 360 $ 360 Commercial and industrial 1 19 18 — 18 Total 2 $ 380 $ 18 $ 360 $ 378 Three Months Ended March 31, 2018 (Dollars in thousands) Number of Loans Restructured Pre-modification Recorded Balance Term Concessions Interest Rate Concessions Combination Total Modifications Loans secured by real estate: Residential real estate 1 $ 94 $ — $ — $ 91 $ 91 During the three months ended March 31, 2019 and 2018 , no loan defaulted after having been modified as a TDR within the previous 12 months. A payment default is defined as a loan that was 90 or more days past due. The modifications made during the three months ended March 31, 2019 , did not significantly impact the Company's determination of the allowance for loan losses. The Company monitors the performance of the modified loans to their restructured terms on an ongoing basis. In the event of a subsequent default, the allowance for loan losses continues to be reassessed on the basis of an individual evaluation of the loan. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Note 5 - Fair Value of Financial Instruments Fair value is the exchange price that is expected to be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Certain assets and liabilities are recorded in the Company's condensed consolidated financial statements at fair value. Some are recorded on a recurring basis and some on a non-recurring basis. The Company utilizes fair value measurement to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach to estimate the fair values of its financial instruments. Such valuation techniques are consistently applied. A hierarchy for fair value has been established which categorizes the valuation techniques into three levels used to measure fair value. The three levels are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Fair value is based on significant other observable inputs that are generally determined based on a single price for each financial instrument provided to the Company by an unrelated third-party pricing service and is based on one or more of the following: • Quoted prices for similar, but not identical, assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in markets that are not active; • Inputs other than quoted prices that are observable, such as interest rate and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and • Other inputs derived from or corroborated by observable market inputs. Level 3 - Prices or valuation techniques that require inputs that are both significant and unobservable in the market. These instruments are valued using the best information available, some of which is internally developed, and reflects the Company's own assumptions about the risk premiums that market participants would generally require and the assumptions they would use. There were no transfers between fair value reporting levels for any period presented. Fair Values of Assets and Liabilities Recorded on a Recurring Basis The following tables summarize financial assets and financial liabilities recorded at fair value on a recurring basis at March 31, 2019 , and December 31, 2018 , segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. There were no changes in the valuation techniques during March 31, 2019 , or December 31, 2018 . March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 56,986 $ 38,307 $ 95,293 Corporate bonds — 11,307 — 11,307 U.S. Government and agency securities 55,891 5,482 — 61,373 Commercial mortgage-backed securities — 12,368 — 12,368 Residential mortgage-backed securities — 185,492 — 185,492 Commercial collateralized mortgage obligations — 4,396 — 4,396 Residential collateralized mortgage obligations — 193,597 — 193,597 Securities available for sale 55,891 469,628 38,307 563,826 Securities carried at fair value through income — — 11,510 11,510 Loans held for sale — 15,598 — 15,598 Loans at fair value — — 18,387 18,387 Mortgage servicing rights — — 23,407 23,407 Other assets - derivatives — 5,816 — 5,816 Total recurring fair value measurements - assets $ 55,891 $ 491,042 $ 91,611 $ 638,544 Other liabilities - derivatives $ — $ (5,047 ) $ — $ (5,047 ) Total recurring fair value measurements - liabilities $ — $ (5,047 ) $ — $ (5,047 ) December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 61,522 $ 39,361 $ 100,883 Corporate bonds — 11,034 — 11,034 U.S. Government and agency securities 55,515 5,635 — 61,150 Commercial mortgage-backed securities — 16,766 — 16,766 Residential mortgage-backed securities — 186,315 — 186,315 Residential collateralized mortgage obligations — 199,496 — 199,496 Securities available for sale 55,515 480,768 39,361 575,644 Securities carried at fair value through income — — 11,361 11,361 Loans held for sale — 21,562 — 21,562 Loans at fair value — — 18,571 18,571 Mortgage servicing rights — — 25,114 25,114 Other assets - derivatives — 3,563 — 3,563 Total recurring fair value measurements - assets $ 55,515 $ 505,893 $ 94,407 $ 655,815 Other liabilities - derivatives $ — $ (2,846 ) $ — $ (2,846 ) Total recurring fair value measurements - liabilities $ — $ (2,846 ) $ — $ (2,846 ) The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2019 and 2018 , are summarized as follows: (Dollars in thousands) Loans at Fair Value MSRs Securities Available for Sale Securities at Fair Value Through Income Balance at January 1, 2019 $ 18,571 $ 25,114 $ 39,361 $ 11,361 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — (1,990 ) — — Other noninterest income 72 — — 149 Gain recognized in accumulated other comprehensive income — — 694 — Purchases, issuances, sales and settlements: Originations — 283 — — Purchases — — — — Settlements (256 ) — (1,748 ) — Balance at March 31, 2019 $ 18,387 $ 23,407 $ 38,307 $ 11,510 Balance at January 1, 2018 $ 26,611 $ 24,182 $ 42,015 $ 12,033 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — 1,274 — — Other noninterest income (295 ) — — (310 ) Loss recognized in accumulated other comprehensive income — — (727 ) — Purchases, issuances, sales, and settlements: Originations — 543 — — Purchases — — 259 — Settlements (382 ) — (1,586 ) — Balance at March 31, 2018 $ 25,934 $ 25,999 $ 39,961 $ 11,723 ____________________________ (1) Total mortgage banking revenue includes changes in fair value due to market changes and run-off. The following methodologies were used to measure the fair value of financial assets and liabilities valued on a recurring basis: Securities Available for Sale Securities classified as available for sale are reported at fair value utilizing Level 1, Level 2 or Level 3 inputs. For Level 2 securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that includes, but is not limited to dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, market consensus prepayment speeds, credit information and the security's terms and conditions. In order to ensure the fair values are consistent with Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures , the Company periodically checks the fair value by comparing them to another pricing source, such as Bloomberg LP. The third-party pricing service is subject to an annual review of internal controls in accordance with the Statement on Standards for Attestation Engagement No.16, which was made available to the Company. In certain cases where Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Mortgage Servicing Rights ("MSR") The carrying amounts of the MSRs equal fair value and are valued on a discounted cash flow valuation technique. The significant assumptions used to value MSRs were as follows: March 31, 2019 December 31, 2018 Prepayment speed 11.10 % 9.90 % Discount rate 10.36 10.42 In recent years, there have been significant market-driven fluctuations in the assumptions listed above. These fluctuations can be rapid and may continue to be significant. Therefore, estimating these assumptions within ranges that market participants would use in determining the fair value of MSRs requires significant management judgment. Derivatives Fair values for interest rate swap agreements are based upon the amounts that are required to settle the contracts. Fair values for derivative loan commitments and forward loan sale commitments are based on fair values of the underlying mortgage loans and the probability of such commitments being exercised. Significant management judgment and estimation is required in determining these fair value measurements. Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected Certain assets are measured at fair value on a recurring basis due to the Company's election to adopt fair value accounting treatment for those assets. This election allows for a more effective offset of the changes in fair values of the assets and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC 815, Derivatives and Hedging. For assets for which the fair value has been elected, the earned current contractual interest payment is recognized in interest income, loan origination costs and fees on fair value option loans are recognized in earnings as incurred and not deferred. At March 31, 2019 , and December 31, 2018 , there were no gains or losses recorded attributable to changes in instrument-specific credit risk. The following tables summarize the difference between the fair value and the unpaid principal balance for financial instruments for which the fair value option has been elected. March 31, 2019 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 15,598 $ 15,172 $ 426 Commercial real estate loans held for investment (2) 18,387 18,136 251 Securities carried at fair value through income 11,510 11,503 7 Total $ 45,495 $ 44,811 $ 684 ____________________________ (1) A total of $1.4 million of loans held for sale were designated as nonaccrual or 90 days or more past due at March 31, 2019 . Of this balance, $1.0 million was guaranteed by U.S. Government agencies. (2) There were no commercial real estate loans for which the fair value had been elected that were designated as nonaccrual or 90 days or more past due at March 31, 2019 . December 31, 2018 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 21,562 $ 21,173 $ 389 Commercial real estate loans held for investment (2) 18,571 18,391 180 Securities carried at fair value through income 11,361 11,503 (142 ) Total $ 51,494 $ 51,067 $ 427 ____________________________ (1) A total of $741,000 of loans held for sale were designated as nonaccrual or 90 days or more past due at December 31, 2018 . Of this balance, $582,000 was guaranteed by U.S. Government agencies. (2) There were no commercial real estate loans for which the fair value had been elected that were designated as nonaccrual or 90 days or more past due at December 31, 2018 . Changes in the fair value of assets for which the Company elected the fair value option are classified in the condensed consolidated statement of income line items reflected in the following table. Three Months Ended March 31, (Dollars in thousands) 2019 2018 Changes in fair value included in noninterest income: Mortgage banking revenue $ 37 $ (324 ) Other income: Loans at fair value held for investment 72 (295 ) Securities carried at fair value through income 149 (310 ) Total impact on other income 221 (605 ) Total fair value option impact on noninterest income (1) $ 258 $ (929 ) ____________________________ (1) The fair value option impact on noninterest income is offset by the derivative gain/loss recognized in noninterest income. Please see Note 7 - Mortgage Banking for more detail. The following methodologies were used to measure the fair value of financial assets valued on a recurring basis for which the fair value option was elected: Securities at Fair Value through Income Securities carried at fair value through income are valued using a discounted cash flow with a credit spread applied to each instrument based on the creditworthiness of each issuer. Credit spreads ranged from 126 to 227 basis points at both March 31, 2019 , and December 31, 2018 . The Company believes the fair value approximates the price it would receive upon a sale in an orderly market transaction ("exit price"). Loans Held for Sale Fair values for loans held for sale are established using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans allocated. The Company believes the fair value approximates an exit price. Loans Held for Investment For loans held for investment for which the fair value option has been elected, fair values are calculated using a discounted cash flow model with inputs including observable interest rate curves and unobservable credit adjustment spreads based on credit risk inherent in the loan. Credit spreads ranged from 290 to 413 basis points at both March 31, 2019 , and December 31, 2018 . The Company believes the fair value approximates an exit price. Fair Value of Assets Recorded on a Nonrecurring Basis Equity Securities without Readily Determinable Fair Values Equity securities without readily determinable fair values totaled $42.3 million at March 31, 2019 , and are shown on the face of the condensed consolidated balance sheet. The majority of the Company's equity investments qualify for the practical expedient allowed for equity securities without a readily determinable fair value, such that the Company has elected to carry these securities at cost adjusted for any observable transactions during the period, less any impairment. To date, no impairment has been recorded on the Company's investments in equity securities that do not have readily determinable fair values. Government National Mortgage Association Repurchase Asset The Company recorded $26.7 million and $30.6 million , respectively, at March 31, 2019 , and December 31, 2018 , for Government National Mortgage Association ("GNMA") repurchase assets included in mortgage loans held for sale on the condensed consolidated balance sheet. The assets are valued at the lower of cost or market and, where market is lower than cost, valued using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans allocated. The Company believes the fair value approximates an exit price. Please see Note 7 - Mortgage Banking for more information on the GNMA repurchase asset. Collateral Dependent Impaired Loans Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. If the impaired loan is identified as collateral-dependent, the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Impaired loans that are collateral-dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. The fair value of impaired loans with specific allocated losses was approximately $1.3 million and $1.4 million at March 31, 2019 , and December 31, 2018 , respectively. Non-Financial Assets Foreclosed assets held for sale are the only non-financial assets valued on a non-recurring basis that are initially recorded by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company's recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The carrying value and fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on observable market data and was $3.7 million at both March 31, 2019 , and December 31, 2018 . At March 31, 2019 , the Company had $2.4 million in residential mortgage loans in the process of foreclosure. Fair Values of Financial Instruments Not Recorded at Fair Value The carrying value and estimated fair values of financial instruments not recorded at fair value are as follows: (Dollars in thousands) March 31, 2019 December 31, 2018 Financial assets: Carrying Estimated Carrying Value Estimated Fair Value Level 1 inputs: Cash and cash equivalents $ 111,240 $ 111,240 $ 116,678 $ 116,678 Level 2 inputs: Securities held to maturity 19,033 18,941 19,169 19,136 Non-marketable equity securities held in other financial institutions 42,314 42,314 42,149 42,149 Accrued interest and loan fees receivable 15,872 15,872 16,454 16,454 Level 3 inputs: Loans held for investment, net (1) 3,784,378 3,639,333 3,736,331 3,605,142 Financial liabilities: Level 2 inputs: Deposits 3,898,248 3,710,982 3,783,138 3,537,283 FHLB advances and other borrowings 335,053 338,518 445,224 444,286 Junior subordinated debentures 9,651 10,721 9,644 10,723 Accrued interest payable 3,041 3,041 2,679 2,679 ____________________________ (1) Loans held for investment, net does not include loans for which the fair value option had been elected at March 31, 2019 , or December 31, 2018 , as these loans are carried at fair value on a recurring basis. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Note 6 - Leases The Company adopted ASU No. 2016-02 — Leases (Topic 842) as of January 1, 2019, and recognized a $321,000 cumulative effect adjustment credit, net of tax, to retained earnings. The Company elected the package of practical expedients, which among other things, does not require reassessment of lease classification. The Company determines if an arrangement is a lease at inception. Operating lease assets are included in accrued interest receivable and other assets, operating lease liabilities are included in accrued expenses and other liabilities in the Company's consolidated balance sheets. The Company has made an accounting policy election not to recognize short-term lease assets and liabilities (less than a 12-month term) or immaterial equipment and server space leases in its balance sheets, the Company recognizes the lease expense for these leases on a straight-line basis over the life of the lease. The Company has no material finance leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses an estimated incremental collateralized borrowing rate, which is derived from information available at the lease commencement date and gives consideration to the applicable FHLB borrowing rates, when determining the present value of lease payments. The Company's lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any residual value guarantees. All of the Company's operating long-term leases are real estate leases, which account for the lease and non-lease components as a single lease component. The Company leases certain real estate for its banking and insurance premises, as well as certain equipment, under non-cancelable operating leases that expire at various dates through 2038. The balance sheet details and components of the Company's lease expense were as follows: (Dollars in thousands) At and for the Three Months Ended March 31, 2019 Operating lease right of use assets (included in Accrued interest receivable and other assets) $ 26,267 Operating lease liabilities (included in Accrued expenses and other liabilities) 28,247 Finance lease liabilities (included in Accrued expenses and other liabilities) 444 Lease expense: Operating lease expense 1,146 Other lease expense 62 Total lease expense $ 1,208 Weighted average remaining lease term (years) - operating leases 9.87 Weighted average discount rate - operating leases 3.48 % Right of use assets obtained in exchange for new operating lease liabilities $ 940 Maturities of operating lease liabilities were as follows: March 31, 2019 Year 1 $ 4,799 Year 2 4,458 Year 3 3,893 Year 4 3,687 Year 5 3,279 Year 6 and thereafter 13,845 Total lease payments 33,961 Less: Imputed interest 5,714 Total lease obligations $ 28,247 Total lease expense was $956,000 for the three months ended March 31, 2018. The Company had one sale-leaseback transaction from 2017 that resulted in a loss on sale. The loss was previously deferred and was being amortized to lease expense over the term of the lease. Upon the Company's adoption of ASU 842, the deferred loss of $962,000 was combined with the ROU asset. Supplemental cash flow related to leases was as follows: Three Months Ended March 31, 2019 Operating cash flows from operating leases $ 1,173 |
Leases | Note 6 - Leases The Company adopted ASU No. 2016-02 — Leases (Topic 842) as of January 1, 2019, and recognized a $321,000 cumulative effect adjustment credit, net of tax, to retained earnings. The Company elected the package of practical expedients, which among other things, does not require reassessment of lease classification. The Company determines if an arrangement is a lease at inception. Operating lease assets are included in accrued interest receivable and other assets, operating lease liabilities are included in accrued expenses and other liabilities in the Company's consolidated balance sheets. The Company has made an accounting policy election not to recognize short-term lease assets and liabilities (less than a 12-month term) or immaterial equipment and server space leases in its balance sheets, the Company recognizes the lease expense for these leases on a straight-line basis over the life of the lease. The Company has no material finance leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses an estimated incremental collateralized borrowing rate, which is derived from information available at the lease commencement date and gives consideration to the applicable FHLB borrowing rates, when determining the present value of lease payments. The Company's lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any residual value guarantees. All of the Company's operating long-term leases are real estate leases, which account for the lease and non-lease components as a single lease component. The Company leases certain real estate for its banking and insurance premises, as well as certain equipment, under non-cancelable operating leases that expire at various dates through 2038. The balance sheet details and components of the Company's lease expense were as follows: (Dollars in thousands) At and for the Three Months Ended March 31, 2019 Operating lease right of use assets (included in Accrued interest receivable and other assets) $ 26,267 Operating lease liabilities (included in Accrued expenses and other liabilities) 28,247 Finance lease liabilities (included in Accrued expenses and other liabilities) 444 Lease expense: Operating lease expense 1,146 Other lease expense 62 Total lease expense $ 1,208 Weighted average remaining lease term (years) - operating leases 9.87 Weighted average discount rate - operating leases 3.48 % Right of use assets obtained in exchange for new operating lease liabilities $ 940 Maturities of operating lease liabilities were as follows: March 31, 2019 Year 1 $ 4,799 Year 2 4,458 Year 3 3,893 Year 4 3,687 Year 5 3,279 Year 6 and thereafter 13,845 Total lease payments 33,961 Less: Imputed interest 5,714 Total lease obligations $ 28,247 Total lease expense was $956,000 for the three months ended March 31, 2018. The Company had one sale-leaseback transaction from 2017 that resulted in a loss on sale. The loss was previously deferred and was being amortized to lease expense over the term of the lease. Upon the Company's adoption of ASU 842, the deferred loss of $962,000 was combined with the ROU asset. Supplemental cash flow related to leases was as follows: Three Months Ended March 31, 2019 Operating cash flows from operating leases $ 1,173 |
Leases | Note 6 - Leases The Company adopted ASU No. 2016-02 — Leases (Topic 842) as of January 1, 2019, and recognized a $321,000 cumulative effect adjustment credit, net of tax, to retained earnings. The Company elected the package of practical expedients, which among other things, does not require reassessment of lease classification. The Company determines if an arrangement is a lease at inception. Operating lease assets are included in accrued interest receivable and other assets, operating lease liabilities are included in accrued expenses and other liabilities in the Company's consolidated balance sheets. The Company has made an accounting policy election not to recognize short-term lease assets and liabilities (less than a 12-month term) or immaterial equipment and server space leases in its balance sheets, the Company recognizes the lease expense for these leases on a straight-line basis over the life of the lease. The Company has no material finance leases. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU lease assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses an estimated incremental collateralized borrowing rate, which is derived from information available at the lease commencement date and gives consideration to the applicable FHLB borrowing rates, when determining the present value of lease payments. The Company's lease term includes options to extend the lease when it is reasonably certain that the Company will exercise that option. The Company's lease agreements do not contain any residual value guarantees. All of the Company's operating long-term leases are real estate leases, which account for the lease and non-lease components as a single lease component. The Company leases certain real estate for its banking and insurance premises, as well as certain equipment, under non-cancelable operating leases that expire at various dates through 2038. The balance sheet details and components of the Company's lease expense were as follows: (Dollars in thousands) At and for the Three Months Ended March 31, 2019 Operating lease right of use assets (included in Accrued interest receivable and other assets) $ 26,267 Operating lease liabilities (included in Accrued expenses and other liabilities) 28,247 Finance lease liabilities (included in Accrued expenses and other liabilities) 444 Lease expense: Operating lease expense 1,146 Other lease expense 62 Total lease expense $ 1,208 Weighted average remaining lease term (years) - operating leases 9.87 Weighted average discount rate - operating leases 3.48 % Right of use assets obtained in exchange for new operating lease liabilities $ 940 Maturities of operating lease liabilities were as follows: March 31, 2019 Year 1 $ 4,799 Year 2 4,458 Year 3 3,893 Year 4 3,687 Year 5 3,279 Year 6 and thereafter 13,845 Total lease payments 33,961 Less: Imputed interest 5,714 Total lease obligations $ 28,247 Total lease expense was $956,000 for the three months ended March 31, 2018. The Company had one sale-leaseback transaction from 2017 that resulted in a loss on sale. The loss was previously deferred and was being amortized to lease expense over the term of the lease. Upon the Company's adoption of ASU 842, the deferred loss of $962,000 was combined with the ROU asset. Supplemental cash flow related to leases was as follows: Three Months Ended March 31, 2019 Operating cash flows from operating leases $ 1,173 |
Mortgage Banking
Mortgage Banking | 3 Months Ended |
Mar. 31, 2019 | |
Mortgage Banking [Abstract] | |
Mortgage Banking | Note 7 - Mortgage Banking The following table presents the Company's revenue from mortgage banking operations: (Dollars in thousands) Three Months Ended March 31, Mortgage banking revenue 2019 2018 Origination $ 130 $ 210 Gain on sale of loans held for sale 1,097 2,024 Servicing 1,699 1,837 Total gross mortgage revenue 2,926 4,071 Mortgage derivatives gain (loss) 210 (539 ) MSR change due to payoffs and paydowns (718 ) (784 ) MSR and hedge fair value adjustment 188 (379 ) Gain on MSR sale (1) — 25 Mortgage banking revenue $ 2,606 $ 2,394 ____________________________ (1) Amount shown during the three months ended March 31, 2018 , reflects final settlement on a loan servicing portfolio sold during the three months ended December 31, 2017. Management uses forward contracts on mortgage-backed securities to mitigate the impact of changes in fair value of MSRs. See Note 8 - Derivative Financial Instruments for further information. Mortgage Servicing Rights Activity in MSRs was as follows: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 25,114 $ 24,182 Origination of servicing rights 283 543 Change in fair value, including amortization, net (1,990 ) 1,274 Balance at end of period $ 23,407 $ 25,999 The Company receives annual servicing fee income approximating 0.28% of the outstanding balance of the underlying loans. In connection with the Company's activities as a servicer of mortgage loans, the investors and the securitization trusts have no recourse to the Company's assets for failure of debtors to pay when due. The Company is potentially subject to losses in its loan servicing portfolio due to loan foreclosures. The Company has obligations to either repurchase the outstanding principal balance of a loan or make the purchaser whole for the economic benefits of a loan if it is determined that the loan sold was in violation of representations or warranties made by it at the time of the sale, which the Company refers to as mortgage loan servicing putback expenses. Such representations and warranties typically include those made regarding loans that had missing or insufficient file documentation and/or loans obtained through fraud by borrowers or other third parties. Putback claims may be made until the loan is paid in full. When a putback claim is received, the Company evaluates the claim and takes appropriate actions based on the nature of the claim. The Company is required by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation to provide a response to putback claims within 60 days of the date of receipt. There were no mortgage loan servicing putback expenses incurred by the Company for either the three months ended March 31, 2019 or 2018. At both March 31, 2019 , and December 31, 2018 , the reserve for mortgage loan servicing putback expenses totaled $196,000 . There is inherent uncertainty in reasonably estimating the requirement for reserves against future mortgage loan servicing putback expenses. Future putback expenses depend on many subjective factors, including the review procedures of the purchasers, the potential refinance activity on loans sold with servicing released and the subsequent consequences under the representations and warranties. GNMA optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing. At the servicer's option and without GNMA's prior authorization, the servicer may repurchase a delinquent loan for an amount equal to 100% of the remaining principal balance of the loan. This buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be included in the balance sheet as mortgage loans held for sale, regardless of whether the Company intends to exercise the buy-back option. These loans totaled $26.7 million and $30.6 million at March 31, 2019 , and December 31, 2018 , respectively, and were recorded as mortgage loans held for sale, at the lower of cost or fair value with a corresponding liability in FHLB advances and other borrowings on the Company's condensed consolidated balance sheets. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 8 - Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company enters into derivative financial instruments to manage risks related to differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments, as well as to manage changes in fair values of some assets which are marked at fair value through the condensed consolidated statement of income on a recurring basis. Cash Flow Hedges of Interest Rate Risk The Company is a party to two interest rate swap agreements under which the Company receives interest at a variable rate and pays at a fixed rate. The derivative instruments represented by the swap agreements are designated as cash flow hedges of the Company's forecasted variable cash flows under its junior subordinated debentures. During the term of the swap agreements, the effective portion of changes in the fair value of the derivative instruments are recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the periods that the hedged forecasted variable-rate interest payments affected earnings. There was no ineffective portion of the changes in fair value of the derivatives recognized directly in earnings. The entire swap fair values will be reclassified into earnings before the respective expiration dates of the swap agreements. Derivatives Not Designated as Hedges Customer interest rate derivative program The Company offers certain derivatives products, primarily interest rate swaps, directly to qualified commercial banking customers to facilitate their risk management strategies. In some instances, the Company acts only as an intermediary, simultaneously entering into offsetting agreements with unrelated financial institutions, thereby mitigating its net risk exposure resulting from such transactions without significantly impacting its results of operations. Because the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivatives and any offsetting derivatives are recognized directly in earnings as a component of noninterest income. Mortgage banking derivatives The Company enters into certain derivative agreements as part of its mortgage banking and related risk management activities. These agreements include interest rate lock commitments on prospective residential mortgage loans and forward contracts to sell these loans to investors on a mandatory delivery basis. The Company also economically hedges the value of MSRs by entering into a series of commitments to purchase mortgage-backed securities in the future. Fair Values of Derivative Instruments on the Balance Sheet The following tables disclose the fair value of derivative instruments in the Company's condensed consolidated balance sheets at March 31, 2019 , and December 31, 2018 , as well as the effect of these derivative instruments on the Company's condensed consolidated statements of income for the three months ended March 31, 2019 and 2018 : Notional Amounts (1) Fair Values (Dollars in thousands) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Derivatives designated as cash flow hedging instruments: Interest rate swaps included in other assets $ 10,500 $ 10,500 $ 58 $ 152 Derivatives not designated as hedging instruments: Interest rate swaps included in other assets $ 150,487 $ 127,512 $ 4,354 $ 2,302 Interest rate swaps included in other liabilities 168,747 145,857 (4,901 ) (2,625 ) Forward commitments to purchase mortgage-backed securities included in other assets 290,000 140,000 906 709 Forward commitments to sell residential mortgage loans included in other liabilities 28,150 24,750 (146 ) (221 ) Interest rate-lock commitments on residential mortgage loans included in other assets 24,896 16,244 498 400 $ 662,280 $ 454,363 $ 711 $ 565 ____________________________ (1) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the condensed consolidated balance sheets. The weighted-average rates paid and received for interest rate swaps at March 31, 2019 , were as follows: Weighted-Average Interest Rate Paid Interest Rate Received Interest rate swaps: Cash flow hedges 4.81 % 5.42 % Non-hedging interest rate swaps - financial institution counterparties 5.02 4.72 Non-hedging interest rate swaps - customer counterparties 4.80 5.06 Gains and losses recognized on derivative instruments not designated as hedging instruments were as follows: (Dollars in thousands) Three Months Ended March 31, Derivatives not designated as hedging instruments: 2019 2018 Amount of gain (loss) recognized in mortgage banking revenue (1) $ 1,311 $ (1,661 ) Amount of (loss) gain recognized in other non-interest income (225 ) 523 ____________________________ (1) Gains and losses on these instruments are largely offset by market fluctuations in mortgage servicing rights. See Note 7 - Mortgage Banking for more information on components of mortgage banking revenue. Some interest rate swaps included in other assets were subject to a master netting arrangement with the counterparty in all years presented and could be offset against some amounts included in interest rate swaps included in other liabilities. The Company has chosen not to net these exposures in the condensed consolidated balance sheets, and any impact of netting these amounts would not be significant. At March 31, 2019 , and December 31, 2018 , the Company had cash collateral on deposit with swap counterparties totaling $5.0 million and $1.9 million , respectively. These amounts are included in interest-bearing deposits in banks in the condensed consolidated balance sheets and are considered restricted cash until such time as the underlying swaps are settled. |
Stock and Incentive Compensatio
Stock and Incentive Compensation Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock and Incentive Compensation Plans | Note 9 - Stock and Incentive Compensation Plans The Company has granted, and currently has outstanding, stock and incentive compensation awards subject to the provisions of the Company's 2012 Stock Incentive Plan (the "2012 Plan"). Additionally, awards have been issued prior to the establishment of the 2012 Plan, some of which are still outstanding at March 31, 2019 . The 2012 Plan is designed to provide flexibility to the Company regarding its ability to motivate, attract and retain the services of key officers, employees and directors. The 2012 Plan allows the Company to make grants of dividend equivalent rights, incentive stock options, non-qualified stock options, performance unit awards, restricted stock awards, restricted stock units and stock appreciation rights. At March 31, 2019 , the maximum number of shares of the Company's common stock available for issuance under the 2012 Plan was 987,324 shares. Share-based compensation cost charged to income for the three months ended March 31, 2019 and 2018 , is presented below: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Restricted stock $ 470 $ 194 Total stock compensation expense $ 470 $ 194 Related tax benefits recognized in net income $ 99 $ 41 Restricted Stock Grants The Company's restricted stock grants are time-vested awards and are granted to the Company's Board of Directors, executives and senior management team. The service period in which time-vested awards are earned ranges from one to five years . Time-vested awards are valued utilizing the fair value of the Company's stock at the grant date. These awards are expensed on a straight-line method over the requisite service period, with forfeitures recognized as they occur. The following table summarizes the Company's time-vested award activity: Three Months Ended March 31, 2019 2018 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested shares, January 1, 174,407 $ 35.01 61,293 $ 24.61 Granted 976 35.91 7,334 25.41 Vested (3,568 ) 25.25 (4,397 ) 24.91 Forfeited (1,550 ) 23.64 — — Nonvested shares, March 31, 170,265 $ 35.32 64,230 $ 24.68 During the three months ended March 31, 2019 , no shares were retired by the Company upon vesting of restricted stock awards. During the three months ended March 31, 2018 , award recipients surrendered and the Company retired 845 shares to cover taxes owed upon the vesting of restricted stock awards. At March 31, 2019 , there was $4.9 million of total unrecognized compensation cost related to nonvested restricted shares awarded under the 2012 Plan. That cost is expected to be recognized over a weighted average period of 3.13 years. Stock Option Grants The Company issues common stock options to select officers and employees through individual agreements and as a result of obligations assumed in association with certain business combinations. As a result, both incentive and nonqualified stock options have been issued and may be issued in the future. The exercise price of each option varies by agreement and is based on either the fair value of the stock at the date of the grant in circumstances where option grants occurred or based on the previously committed exercise price in the case of options acquired through merger. No outstanding stock option has a term that exceeds twenty years . Vesting periods range from immediate to ten years from the date of grant or merger. The Company recognizes compensation cost for stock option grants over the required service period based upon the grant date fair-value, which is established using a Black-Scholes valuation model. The Black-Scholes valuation model uses assumptions of risk-free interest rates, expected term of stock options, expected stock price volatility and expected dividends. Forfeitures are recognized as they occur. The table below summarizes the status of the Company's stock options and changes during the three months ended March 31, 2019 and 2018 . (Dollars in thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Three months ended March 31, 2018 Outstanding at January 1, 2018 319,500 $ 10.65 7.07 $ 4,840 Outstanding at March 31, 2018 319,500 10.65 6.82 4,843 Three months ended March 31, 2019 Outstanding at January 1, 2019 274,000 $ 10.38 6.75 $ 6,493 Exercised (20,000 ) 8.25 — — Outstanding at March 31, 2019 254,000 10.55 6.56 5,969 Exercisable at March 31, 2019 254,000 $ 10.55 6.56 $ 5,969 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10 - Income Taxes The provision for income taxes was as follows: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Federal income taxes: Current $ 3,167 $ 2,175 Deferred (336 ) 501 State income taxes: Current 268 76 Deferred (10 ) 32 Income tax expense $ 3,089 $ 2,784 Effective income tax rate 17.9 % 17.2 % The effective income tax rates differed from the U.S. statutory federal income tax rates of 21% during 2019 and 2018, primarily due to the effect of tax-exempt income from securities, low income housing and qualified school construction bond tax credits, tax-exempt income from life insurance policies and income tax effects associated with stock-based compensation. Because of these items, the Company expects the effective income tax rate to continue to remain below the U.S. statutory rate. These tax-exempt items can have a larger than proportional effect on the effective income tax rate as net income decreases. During the first quarter of 2018, the Company adopted the provisions of ASU 2018-02 which resulted in a $282,000 adjustment from accumulated other comprehensive income to retained earnings. The Company files a consolidated income tax return in the U.S. federal jurisdiction and various states. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities in these taxing jurisdictions for the years before 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Note 11 - Accumulated Other Comprehensive Income Accumulated other comprehensive income ("AOCI") includes the after-tax change in unrealized gains and losses on available for sale ("AFS") securities and cash flow hedging activities. (Dollars in thousands) Unrealized Gains on AFS Securities Cash Flow Hedges Accumulated Other Comprehensive Income Balance at January 1, 2019 $ (2,601 ) $ 121 $ (2,480 ) Net change 4,078 (74 ) 4,004 Balance at March 31, 2019 $ 1,477 $ 47 $ 1,524 Balance at January 1, 2018 $ 1,280 $ 27 $ 1,307 Net change (4,492 ) 144 (4,348 ) Reclassification of tax effects related to the adoption of ASU 2018-02 (1) : Current (293 ) 17 (276 ) Deferred 569 (11 ) 558 Balance at March 31, 2018 $ (2,936 ) $ 177 $ (2,759 ) ____________________________ (1) During the first quarter of 2018, the Company adopted ASU 2018-02. The ASU was issued by the FASB in February 2018, to address the issue of other comprehensive income or loss that became stranded in AOCI as a result of the re-measurement of an entity's deferred income tax assets and liabilities following the reduction of the U.S. federal corporate tax rate from 35% to 21% pursuant to the enactment of the Tax Cuts and Jobs Act in December 2017. The Company also had certain current tax amounts stranded in AOCI that resulted from a tax accounting election to tax net gains and losses on AFS securities and cash flow hedges as current items beginning in 2016. The Company reclassifies the taxes from AOCI to earnings as the individual securities and hedges are realized. Due to the change in corporate tax rates, the Company had certain net gains and losses taxed at the 35% rate reflected in AOCI. As these transactions are realized over time, they will flow through income tax expense at the 21% rate. Rather than adjusting income tax expense for the difference as each of these securities and instruments are realized, the Company elected to adjust the difference (stranded tax effect) to retained earnings, consistent with the treatment of the deferred tax adjustment. |
Capital and Regulatory Matters
Capital and Regulatory Matters | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Capital and Regulatory Matters | Note 12 - Capital and Regulatory Matters The Company (on a consolidated basis) and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company's consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Company is subject to the Basel III regulatory capital framework (the "Basel III Capital Rules"). Starting in January 2016, the implementation of the capital conservation buffer was effective for the Company starting at the 0.625% level, and increasing 0.625% each year thereafter, until it reached 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company's ability to make capital distributions, which includes dividend payments, stock repurchases and discretionary bonus payments to executive officers. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, CET1 and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, at March 31, 2019 , and December 31, 2018 , that the Company and the Bank met all capital adequacy requirements to which they are subject, including the capital buffer requirement. At March 31, 2019 , and December 31, 2018 , the Bank's capital ratios exceeded those levels necessary to be categorized as "well capitalized" under the regulatory framework for prompt corrective action. To be categorized as "well capitalized," the Bank must maintain minimum total risk based, CET1, Tier 1 risk based and Tier 1 leverage ratios as set forth in the table. The actual capital amounts and ratios of the Company and Bank at March 31, 2019 , and December 31, 2018 , are presented in the following table: (Dollars in thousands) Actual Minimum Capital Required - Basel III Fully Phased-In To be Well Capitalized Under Prompt Corrective Action Provisions March 31, 2019 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. $ 534,230 12.05 % $ 310,382 7.00 % N/A N/A Origin Bank 523,866 11.85 309,522 7.00 $ 287,413 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 543,555 12.26 376,893 8.50 N/A N/A Origin Bank 523,866 11.85 375,848 8.50 353,739 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 580,763 13.10 465,572 10.50 N/A N/A Origin Bank 561,074 12.69 464,282 10.50 442,174 10.00 Leverage Ratio Origin Bancorp, Inc. 543,555 11.23 193,656 4.00 N/A N/A Origin Bank 523,866 10.85 193,150 4.00 241,437 5.00 December 31, 2018 Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. $ 519,468 11.94 % $ 304,431 7.00 % N/A N/A Origin Bank 508,826 11.73 303,621 7.00 $ 281,934 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 528,786 12.16 369,668 8.50 N/A N/A Origin Bank 508,826 11.73 368,683 8.50 346,996 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 564,437 12.98 456,647 10.50 N/A N/A Origin Bank 544,477 12.55 455,430 10.50 433,743 10.00 Leverage Ratio Origin Bancorp, Inc. 528,786 11.21 188,711 4.00 N/A N/A Origin Bank 508,826 10.81 188,229 4.00 235,287 5.00 In the ordinary course of business, the Company depends on dividends from the Bank to provide funds for the payment of dividends to stockholders and to provide for other cash requirements. Banking regulations may limit the amount of dividends that may be paid. Approval by regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. Approval is also required if dividends declared and paid exceed the Bank's year-to-date net income combined with the retained net income for the preceding year. Under the foregoing dividend restrictions and while maintaining its "well capitalized" status, management believes that at March 31, 2019 , the Bank could pay aggregate dividends of up to $61.0 million to the Company without prior regulatory approval. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 - Commitments and Contingencies Credit Related Commitments In the normal course of business, the Company enters into financial instruments, such as commitments to extend credit and letters of credit, to meet the financing needs of its customers. Such instruments are not reflected in the accompanying consolidated financial statements until they are funded, although they expose the Company to varying degrees of credit risk and interest rate risk in much the same way as funded loans. Commitments to extend credit include revolving commercial credit lines, nonrevolving loan commitments issued mainly to finance the acquisition and development or construction of real property or equipment, and credit card and personal credit lines. The availability of funds under commercial credit lines and loan commitments generally depends on whether the borrower continues to meet credit standards established in the underlying contract and has not violated other contractual conditions. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee by the borrower. Credit card and personal credit lines are generally subject to cancellation if the borrower's credit quality deteriorates. A number of commercial and personal credit lines are used only partially or, in some cases, not at all before they expire, and the total commitment amounts do not necessarily represent future cash requirements of the Company. A substantial majority of the letters of credit are standby agreements that obligate the Company to fulfill a customer's financial commitments to a third party if the customer is unable to perform. The Company issues standby letters of credit primarily to provide credit enhancement to its customers' other commercial or public financing arrangements and to help them demonstrate financial capacity to vendors of essential goods and services. The contract amounts of these instruments reflect the Company's exposure to credit risk. The Company undertakes the same credit evaluation in making loan commitments and assuming conditional obligations as it does for on-balance sheet instruments and may require collateral or other credit support. These off-balance sheet financial instruments are summarized below: (Dollars in thousands) March 31, 2019 December 31, 2018 Commitments to extend credit $ 1,219,539 $ 1,178,735 Standby letters of credit 50,781 46,860 In addition to the above, the Company guarantees the credit card debt of certain customers to the merchant bank that issues the credit cards. These guarantees are in place for as long as the guaranteed credit card is open. At March 31, 2019 , and December 31, 2018 , these credit card guarantees totaled $557,000 and $772,000 , respectively. This amount represents the maximum potential amount of future payments under the guarantee for which the Company would be responsible in the event of customer non-payment. At March 31, 2019 , and December 31, 2018 , the Company had FHLB letters of credit totaling $187.2 million and $172.0 million , respectively, available to secure public deposits, and for other purposes required or permitted by law. Management establishes an asset-specific allowance for certain lending-related commitments and computes a formula-based allowance for performing consumer and commercial lending-related commitments. These are computed using a methodology similar to that used for the commercial loan portfolio, modified for expected maturities and probabilities of drawdown. The reserve for lending-related commitments was $1.6 million and $1.4 million at March 31, 2019 , and December 31, 2018 , respectively, and is included in other liabilities in the accompanying condensed consolidated balance sheets. Loss Contingencies From time to time the Company is also party to various legal actions arising in the ordinary course of business. At this time, management does not expect that loss contingencies, if any, arising from any such proceedings, either individually or in the aggregate, would have a material adverse effect on the consolidated financial position or liquidity of the Company. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation . The condensed consolidated financial statements in this quarterly report on Form 10-Q include the accounts of the Company and all other entities in which Origin Bancorp, Inc. has a controlling financial interest, including the Bank and Davison Insurance Agency, LLC ("Davison Insurance"), doing business as Thomas & Farr ("T&F") and Reeves, Coon and Funderburg ("RCF"). All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements in this quarterly report on Form 10-Q have not been audited by an independent registered public accounting firm, excluding the figures as of December 31, 2018, but in the opinion of management, reflect all adjustments necessary for fair presentation of the Company's financial position and results of operations for the periods presented. These condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") and with the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2018, included in the Company's annual report on Form 10-K ("2018 Form 10-K") filed with the SEC. Operating results for the interim periods disclosed herein are not necessarily indicative of results that may be expected for a full year. Certain prior year amounts have been reclassified to conform to the current year financial statement presentations. These reclassifications did not impact previously reported net income or comprehensive income. The Company's significant accounting policies, including those for loans, impaired loans, non-accrual loans and allowance for loan losses, are described in Note 1 of the Notes to Consolidated Financial Statements for the year ended December 31, 2018, included in the Company's 2018 Form 10-K ("Note 1"). There have been no significant changes to these policies since December 31, 2018. Effective January 1, 2019, two accounting policies were revised and updated from the accounting policies described in Note 1. Effective January 1, 2019, the Company began calculating earnings per share using the treasury method due to the conversion and redemption of all material participating securities during 2018, which eliminated the requirement to calculate earnings per share using the two-class method. See the discussion below titled "Earnings Per Share " for an explanation of these methodologies. Additionally, on January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) , resulting in a change to the Company's lease accounting policies. See the discussion below titled "Effect of Recently Adopted Accounting Standards" for a description of policy revisions resulting from the Company's adoption of ASU 2016-02. There have been no other significant changes to the Company's accounting policies since December 31, 2018. For interim reporting purposes, the Company follows the same accounting policies and considers each interim period as an integral part of an annual period. |
Use of Estimates | Use of Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Material estimates that are particularly susceptible to change include the allowance for loan losses; the evaluation of investment securities for other than temporary impairment; fair value measurements of assets and liabilities; and income taxes. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Company's consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual results could differ from those estimates. |
Earnings Per Share | Earnings Per Share . Basic and diluted earnings per common share for periods beginning after December 31, 2018, are calculated using the treasury method. Under the treasury method, basic earnings per share is calculated as net income divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities in calculating earnings per share. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under stock options and restricted stock awards. Basic and diluted earnings per common share for periods ending on or before December 31, 2018, were calculated using the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for each share of common stock and participating securities according to dividends declared (distributed earnings) and participation rights in undistributed earnings. Distributed and undistributed earnings were allocated between common and participating security stockholders based on their respective rights to receive dividends. Share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents were considered participating securities (e.g., restricted stock grants). Preferred stock that receives dividends based on dividends paid on common stock was also considered a participating security (e.g., Series D preferred stock). Undistributed net losses were not allocated to holders of participating securities, as they did not have a contractual obligation to fund the losses incurred by the Company. Net income attributable to common stockholders was then divided by the weighted average number of common shares outstanding during the period, net of participating securities and reduced for average unallocated shares held by the Company's Employee Retirement Plan ("Retirement Plan"). Diluted income per common share under the two-class method considers common stock issuable under the assumed release of unvested restricted stock awards, convertible preferred stock being converted to common stock, and the assumed exercise of stock options granted. The dilutive effect of share-based payment awards that were not deemed to be participating securities was calculated using the treasury stock method, which assumes that the proceeds from exercise were used to purchase common stock at the average market price for the period. The dilutive effect of participating securities was calculated using the more dilutive of the treasury stock method (which assumes that the participating securities are exercised/released) or the two-class method (which assumes that the participating securities are not exercised/released and earnings are reallocated between common and participating security stockholders). Potentially dilutive common stock equivalents were excluded from the computation of diluted earnings per common share in periods in which the effect would be antidilutive. |
Effect of Recently Adopted Accounting Standards and Effect of Newly Issued But Not Yet Effective Accounting Standards | Effect of Recently Adopted Accounting Standards ASU No. 2016-02 — Leases (Topic 842). ASU 2016-02 requires lessees to recognize a lease liability and a right-of-use ("ROU") asset on the balance sheet for operating leases. Accounting for finance (formerly known as capital) leases is substantially unchanged. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted this ASU as of January 1, 2019. Please see Note 6 - Leases for more information. Effect of Newly Issued But Not Yet Effective Accounting Standards ASU No. 2018-13, Fair Value Measurement - (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU modify the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the concepts in Financial Accounting Standards Board ("FASB") Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements, including the consideration of costs and benefits. For public business entities that file reports with the SEC, the amendments in the update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company is evaluating the impact of this ASU on the consolidated financial statements and disclosures. ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current U.S. GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis of the financial assets to present the net amount expected to be collected. For available for sale debt securities, credit losses should be measured in a manner similar to current U.S. GAAP. However Topic 326 will require that credit losses be presented as an allowance rather than as a write-down. This ASU affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The Company anticipates a significant change in the processes and procedures to calculate the loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company expects to recognize a one-time cumulative effect adjustment to the allowance for loan losses at the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact on its results of operations, financial position or disclosures. However, the Company has begun developing processes and procedures to ensure the Company is compliant at the required adoption date. Among other things, the Company has initiated data gathering and assessment to support forecasting of asset quality, loan balances, and portfolio net charge-offs and developing asset quality forecast models in preparation for the implementation of this standard. For public business entities that are SEC filers, the amendments in the update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company continues to evaluate the impact of this ASU on the consolidated financial statements and disclosures. During the first quarter of 2018, the Company adopted ASU 2018-02. The ASU was issued by the FASB in February 2018, to address the issue of other comprehensive income or loss that became stranded in AOCI as a result of the re-measurement of an entity's deferred income tax assets and liabilities following the reduction of the U.S. federal corporate tax rate from 35% to 21% pursuant to the enactment of the Tax Cuts and Jobs Act in December 2017. The Company also had certain current tax amounts stranded in AOCI that resulted from a tax accounting election to tax net gains and losses on AFS securities and cash flow hedges as current items beginning in 2016. The Company reclassifies the taxes from AOCI to earnings as the individual securities and hedges are realized. Due to the change in corporate tax rates, the Company had certain net gains and losses taxed at the 35% rate reflected in AOCI. As these transactions are realized over time, they will flow through income tax expense at the 21% rate. Rather than adjusting income tax expense for the difference as each of these securities and instruments are realized, the Company elected to adjust the difference (stranded tax effect) to retained earnings, consistent with the treatment of the deferred tax adjustment. |
Loans, Nonaccrual Status | All interest accrued but not received for loans placed on nonaccrual status is reversed against interest income. Subsequent receipts on nonaccrual loans are recorded as a reduction of principal, and interest income is recorded only after principal recovery is reasonably assured. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Loans, Held-for-Sale | The Company elects the fair value option for recording residential mortgage loans held for sale, as well as certain commercial real estate and commercial and industrial loans, in accordance with U.S. GAAP. |
Fair Value of Financial Instruments | Derivatives Fair values for interest rate swap agreements are based upon the amounts that are required to settle the contracts. Fair values for derivative loan commitments and forward loan sale commitments are based on fair values of the underlying mortgage loans and the probability of such commitments being exercised. Significant management judgment and estimation is required in determining these fair value measurements. Fair Values of Assets Recorded on a Recurring Basis for which the Fair Value Option has been Elected Certain assets are measured at fair value on a recurring basis due to the Company's election to adopt fair value accounting treatment for those assets. This election allows for a more effective offset of the changes in fair values of the assets and the derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC 815, Derivatives and Hedging. For assets for which the fair value has been elected, the earned current contractual interest payment is recognized in interest income, loan origination costs and fees on fair value option loans are recognized in earnings as incurred and not deferred. Securities Available for Sale Securities classified as available for sale are reported at fair value utilizing Level 1, Level 2 or Level 3 inputs. For Level 2 securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that includes, but is not limited to dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, market consensus prepayment speeds, credit information and the security's terms and conditions. In order to ensure the fair values are consistent with Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures , the Company periodically checks the fair value by comparing them to another pricing source, such as Bloomberg LP. The third-party pricing service is subject to an annual review of internal controls in accordance with the Statement on Standards for Attestation Engagement No.16, which was made available to the Company. In certain cases where Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Mortgage Servicing Rights ("MSR") The carrying amounts of the MSRs equal fair value and are valued on a discounted cash flow valuation technique. The following methodologies were used to measure the fair value of financial assets valued on a recurring basis for which the fair value option was elected: Securities at Fair Value through Income Securities carried at fair value through income are valued using a discounted cash flow with a credit spread applied to each instrument based on the creditworthiness of each issuer. Credit spreads ranged from 126 to 227 basis points at both March 31, 2019 , and December 31, 2018 . The Company believes the fair value approximates the price it would receive upon a sale in an orderly market transaction ("exit price"). Loans Held for Sale Fair values for loans held for sale are established using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans allocated. The Company believes the fair value approximates an exit price. Loans Held for Investment For loans held for investment for which the fair value option has been elected, fair values are calculated using a discounted cash flow model with inputs including observable interest rate curves and unobservable credit adjustment spreads based on credit risk inherent in the loan. Credit spreads ranged from 290 to 413 basis points at both March 31, 2019 , and December 31, 2018 . The Company believes the fair value approximates an exit price. Fair Value of Assets Recorded on a Nonrecurring Basis Equity Securities without Readily Determinable Fair Values Equity securities without readily determinable fair values totaled $42.3 million at March 31, 2019 , and are shown on the face of the condensed consolidated balance sheet. The majority of the Company's equity investments qualify for the practical expedient allowed for equity securities without a readily determinable fair value, such that the Company has elected to carry these securities at cost adjusted for any observable transactions during the period, less any impairment. To date, no impairment has been recorded on the Company's investments in equity securities that do not have readily determinable fair values. Government National Mortgage Association Repurchase Asset The Company recorded $26.7 million and $30.6 million , respectively, at March 31, 2019 , and December 31, 2018 , for Government National Mortgage Association ("GNMA") repurchase assets included in mortgage loans held for sale on the condensed consolidated balance sheet. The assets are valued at the lower of cost or market and, where market is lower than cost, valued using anticipated sale prices for loans allocated to a sale commitment, and those unallocated to a commitment are valued based on the interest rate and term for similar loans allocated. The Company believes the fair value approximates an exit price. Please see Note 7 - Mortgage Banking for more information on the GNMA repurchase asset. Collateral Dependent Impaired Loans Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for determining the amount of impairment include estimating fair value using the fair value of the collateral for collateral-dependent loans. If the impaired loan is identified as collateral-dependent, the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Impaired loans that are collateral-dependent are classified within Level 3 of the fair value hierarchy when impairment is determined using the fair value method. The fair value of impaired loans with specific allocated losses was approximately $1.3 million and $1.4 million at March 31, 2019 , and December 31, 2018 , respectively. Non-Financial Assets Foreclosed assets held for sale are the only non-financial assets valued on a non-recurring basis that are initially recorded by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company's recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. Fair value is the exchange price that is expected to be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Certain assets and liabilities are recorded in the Company's condensed consolidated financial statements at fair value. Some are recorded on a recurring basis and some on a non-recurring basis. The Company utilizes fair value measurement to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The determination of fair values of financial instruments often requires the use of estimates. In cases where quoted market values in an active market are not available, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach to estimate the fair values of its financial instruments. Such valuation techniques are consistently applied. A hierarchy for fair value has been established which categorizes the valuation techniques into three levels used to measure fair value. The three levels are as follows: Level 1 - Fair value is based on unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Fair value is based on significant other observable inputs that are generally determined based on a single price for each financial instrument provided to the Company by an unrelated third-party pricing service and is based on one or more of the following: • Quoted prices for similar, but not identical, assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in markets that are not active; • Inputs other than quoted prices that are observable, such as interest rate and yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates; and • Other inputs derived from or corroborated by observable market inputs. Level 3 - Prices or valuation techniques that require inputs that are both significant and unobservable in the market. These instruments are valued using the best information available, some of which is internally developed, and reflects the Company's own assumptions about the risk premiums that market participants would generally require and the assumptions they would use. |
Derivative Financial Instruments | Some interest rate swaps included in other assets were subject to a master netting arrangement with the counterparty in all years presented and could be offset against some amounts included in interest rate swaps included in other liabilities. The Company has chosen not to net these exposures in the condensed consolidated balance sheets, and any impact of netting these amounts would not be significant. Note 8 - Derivative Financial Instruments Risk Management Objective of Using Derivatives The Company enters into derivative financial instruments to manage risks related to differences in the amount, timing, and duration of the Company's known or expected cash receipts and its known or expected cash payments, as well as to manage changes in fair values of some assets which are marked at fair value through the condensed consolidated statement of income on a recurring basis. Cash Flow Hedges of Interest Rate Risk The Company is a party to two interest rate swap agreements under which the Company receives interest at a variable rate and pays at a fixed rate. The derivative instruments represented by the swap agreements are designated as cash flow hedges of the Company's forecasted variable cash flows under its junior subordinated debentures. During the term of the swap agreements, the effective portion of changes in the fair value of the derivative instruments are recorded in accumulated other comprehensive income and subsequently reclassified into earnings in the periods that the hedged forecasted variable-rate interest payments affected earnings. There was no ineffective portion of the changes in fair value of the derivatives recognized directly in earnings. The entire swap fair values will be reclassified into earnings before the respective expiration dates of the swap agreements. Derivatives Not Designated as Hedges Customer interest rate derivative program The Company offers certain derivatives products, primarily interest rate swaps, directly to qualified commercial banking customers to facilitate their risk management strategies. In some instances, the Company acts only as an intermediary, simultaneously entering into offsetting agreements with unrelated financial institutions, thereby mitigating its net risk exposure resulting from such transactions without significantly impacting its results of operations. Because the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivatives and any offsetting derivatives are recognized directly in earnings as a component of noninterest income. Mortgage banking derivatives The Company enters into certain derivative agreements as part of its mortgage banking and related risk management activities. These agreements include interest rate lock commitments on prospective residential mortgage loans and forward contracts to sell these loans to investors on a mandatory delivery basis. The Company also economically hedges the value of MSRs by entering into a series of commitments to purchase mortgage-backed securities in the future. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended March 31, (Dollars in thousands, except per share amounts) 2019 (1) 2018 (1) Basic earnings per common share Net income $ 14,155 $ 13,407 Less: Dividends to preferred stock — 1,115 Less: Net income allocated to participating stockholders — 553 Net income available to common stockholders $ 14,155 $ 11,739 Weighted average common shares outstanding 23,569,576 19,459,278 Basic earnings per common share $ 0.60 $ 0.60 Diluted earnings per common share Diluted earnings applicable to common stockholders (2) $ 14,155 $ 11,771 Weighted average diluted common shares outstanding: Weighted average common shares outstanding 23,569,576 19,459,278 Dilutive effect of stock-based awards 206,773 216,195 Weighted average diluted common shares outstanding 23,776,349 19,675,473 Diluted earnings per common share $ 0.60 $ 0.60 ____________________________ (1) Series D preferred stockholders were participating stockholders during the three months ended March 31, 2018, requiring the Company to calculate earnings per share using the two-class method. Subsequent to the conversion of all Series D preferred stock in June 2018, the Company used the treasury method for the computation of earnings per share, including the period ended March 31, 2019. (2) The two-class method for the computation of earnings per share was used for the quarter ended March 31, 2018. Net income available to common stockholders for basic and diluted earnings per share may differ under the two-class method as a result of adding common stock equivalents for options to dilutive shares outstanding, which alters the ratio used to allocate earnings to common stockholders and participating securities for the purposes of calculating diluted earnings per share. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Estimated Fair Value of Securities | The following table is a summary of the amortized cost and estimated fair value, including gross unrealized gains and losses, of available for sale, held to maturity and securities carried at fair value through income for the dates indicated: (Dollars in thousands) Amortized Gross Gross Fair March 31, 2019 Available for sale: State and municipal securities $ 93,222 $ 2,093 $ (22 ) $ 95,293 Corporate bonds 11,007 300 — 11,307 U.S. Government and agency securities 61,273 109 (9 ) 61,373 Commercial mortgage-backed securities 12,180 188 — 12,368 Residential mortgage-backed securities 185,023 1,462 (993 ) 185,492 Commercial collateralized mortgage obligations 4,377 19 — 4,396 Residential collateralized mortgage obligations 194,985 514 (1,902 ) 193,597 Total $ 562,067 $ 4,685 $ (2,926 ) $ 563,826 Held to maturity: State and municipal securities $ 19,033 $ — $ (92 ) $ 18,941 Securities carried at fair value through income: State and municipal securities (1) $ 11,503 $ — $ — $ 11,510 December 31, 2018 Available for sale: State and municipal securities $ 99,780 $ 1,266 $ (163 ) $ 100,883 Corporate bonds 10,997 102 (65 ) 11,034 U.S. Government and agency securities 61,122 82 (54 ) 61,150 Commercial mortgage-backed securities 16,672 94 — 16,766 Residential mortgage-backed securities 188,058 417 (2,160 ) 186,315 Residential collateralized mortgage obligations 202,422 315 (3,241 ) 199,496 Total $ 579,051 $ 2,276 $ (5,683 ) $ 575,644 Held to maturity: State and municipal securities $ 19,169 $ — $ (33 ) $ 19,136 Securities carried at fair value through income: State and municipal securities (1) $ 11,503 $ — $ — $ 11,361 ____________________________ (1) Securities carried at fair value through income have no unrealized gains or losses at the balance sheet date as all changes in value have been recognized in the condensed consolidated statements of income. See Note 5 - Fair Value of Financial Instruments for more information. |
Schedule of Securities with Unrealized Loss | Securities with unrealized losses at March 31, 2019 , and December 31, 2018 , aggregated by investment category and those individual securities that have been in a continuous unrealized loss position for less than 12 months and for 12 months or more were as follows: (Dollars in thousands) Less than 12 Months 12 Months or More Total March 31, 2019 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for sale: State and municipal securities $ 1,050 $ (1 ) $ 2,319 $ (21 ) $ 3,369 $ (22 ) U.S. Government and agency securities 737 (9 ) — — 737 (9 ) Residential mortgage-backed securities 1,056 (5 ) 73,622 (988 ) 74,678 (993 ) Residential collateralized mortgage obligations 8,561 (15 ) 119,291 (1,887 ) 127,852 (1,902 ) Total $ 11,404 $ (30 ) $ 195,232 $ (2,896 ) $ 206,636 $ (2,926 ) Held to maturity: State and municipal securities $ 18,941 $ (92 ) $ — $ — $ 18,941 $ (92 ) December 31, 2018 Available for sale: State and municipal securities $ 13,101 $ (50 ) $ 8,463 $ (113 ) $ 21,564 $ (163 ) Corporate bonds 7,932 (65 ) — — 7,932 (65 ) U.S. Government and agency securities 56,271 (54 ) — — 56,271 (54 ) Residential mortgage-backed securities 18,836 (65 ) 77,471 (2,095 ) 96,307 (2,160 ) Residential collateralized mortgage obligations 14,711 (79 ) 120,601 (3,162 ) 135,312 (3,241 ) Total $ 110,851 $ (313 ) $ 206,535 $ (5,370 ) $ 317,386 $ (5,683 ) Held to maturity: State and municipal securities $ 13,921 $ (33 ) $ — $ — $ 13,921 $ (33 ) |
Securities Classified by Contractual Maturity | The following table presents the amortized cost and fair value of securities available for sale and held to maturity at March 31, 2019 , grouped by contractual maturity. Mortgage-backed securities and collateralized mortgage obligations, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities and collateralized mortgage obligations will differ from contractual maturities as a result of prepayments made on the underlying mortgages. (Dollars in thousands) Held to Maturity Available for Sale March 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ — $ — $ 59,523 $ 59,552 Due after one year through five years 13,820 13,808 24,357 24,731 Due after five years through ten years — — 76,290 78,255 Due after ten years 5,213 5,133 5,332 5,435 Commercial mortgage-backed securities — — 12,180 12,368 Residential mortgage-backed securities — — 185,023 185,492 Commercial collateralized mortgage obligations — — 4,377 4,396 Residential collateralized mortgage obligations — — 194,985 193,597 Total $ 19,033 $ 18,941 $ 562,067 $ 563,826 |
Securities Pledged as Collateral | The following table presents carrying amounts of securities pledged as collateral for public deposits and repurchase agreements for the period ends presented. (Dollars in thousands) March 31, 2019 December 31, 2018 Carrying value of securities pledged to secure public deposits $ 334,352 $ 364,055 Carrying value of securities pledged to repurchase agreements 39,477 48,847 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consisted of the following: (Dollars in thousands) March 31, 2019 December 31, 2018 Loans held for sale $ 42,265 $ 52,210 Loans held for investment: Loans secured by real estate: Commercial real estate $ 1,202,269 $ 1,228,402 Construction/land/land development 488,167 429,660 Residential real estate 638,064 629,714 Total real estate 2,328,500 2,287,776 Commercial and industrial 1,287,300 1,272,566 Mortgage warehouse lines of credit 202,744 207,871 Consumer 19,799 20,892 Total loans held for investment (1) 3,838,343 3,789,105 Less: Allowance for loan losses 35,578 34,203 Net loans held for investment $ 3,802,765 $ 3,754,902 ____________________________ (1) Includes net deferred loan fees of $3.3 million and $3.2 million at March 31, 2019 , and December 31, 2018 , respectively. |
Recorded Investment in Loans by Credit Quality Indicator | The following is a summary description of the Company's internal risk ratings: • Pass (1-6) Loans within this risk rating are further categorized as follows: Minimal risk (1) Well-collateralized by cash equivalent instruments held by the Bank. Moderate risk (2) Borrowers with excellent asset quality and liquidity. Borrowers' capitalization and liquidity exceed industry norms. Borrowers in this category have significant levels of liquid assets and have a low level of leverage. Better than average risk (3) Borrowers with strong financial strength and excellent liquidity that consistently demonstrate strong operating performance. Borrowers in this category generally have a sizable net worth that can be converted into liquid assets within 12 months. Average risk (4) Borrowers with sound credit quality and financial performance, including liquidity. Borrowers are supported by sufficient cash flow coverage generated through operations across the full business cycle. Marginally acceptable risk (5) Loans generally meet minimum requirements for an acceptable loan in accordance with lending policy, but possess one or more attributes that cause the overall risk profile to be higher than the majority of newly approved loans. Watch (6) A passing loan with one or more factors that identify a potential weakness in the overall ability of the borrower to repay the loan. These weaknesses are generally mitigated by other factors that reduce the risk of delinquency or loss. • Special Mention (7) This grade is intended to be temporary and includes borrowers whose credit quality has deteriorated and is at risk of further decline. • Substandard (8) This grade includes "Substandard" loans under regulatory guidelines. Substandard loans exhibit a well-defined weakness that jeopardizes debt repayment in accordance with contractual agreements, even though the loan may be performing. These obligations are characterized by the distinct possibility that a loss may be incurred if these weaknesses are not corrected and repayment may be dependent upon collateral liquidation or secondary source of repayment. • Doubtful (9) This grade includes "Doubtful" loans under regulatory guidelines. Such loans are placed on nonaccrual status and repayment may be dependent upon collateral with no readily determinable valuation or valuations that are highly subjective in nature. Repayment for these loans is considered improbable based on currently existing facts and circumstances. • Loss (0) This grade includes "Loss" loans under regulatory guidelines. Loss loans are charged-off or written down when repayment is not expected. The recorded investment in loans by credit quality indicator at March 31, 2019 , and December 31, 2018 , excluding loans held for sale, were as follows: March 31, 2019 (Dollars in thousands) Pass Special Mention Substandard Doubtful Loss Total Loans secured by real estate: Commercial real estate $ 1,169,170 $ 14,272 $ 18,827 $ — $ — $ 1,202,269 Construction/land/land development 484,912 1,004 2,251 — — 488,167 Residential real estate 628,612 1,132 8,320 — — 638,064 Total real estate 2,282,694 16,408 29,398 — — 2,328,500 Commercial and industrial 1,217,732 25,253 44,315 — — 1,287,300 Mortgage warehouse lines of credit 202,744 — — — — 202,744 Consumer 19,593 — 206 — — 19,799 Total loans held for investment $ 3,722,763 $ 41,661 $ 73,919 $ — $ — $ 3,838,343 December 31, 2018 (Dollars in thousands) Pass Special Mention Substandard Doubtful Loss Total Loans secured by real estate: Commercial real estate $ 1,206,194 $ 3,101 $ 19,107 $ — $ — $ 1,228,402 Construction/land/land development 426,770 157 2,733 — — 429,660 Residential real estate 617,996 1,142 10,576 — — 629,714 Total real estate 2,250,960 4,400 32,416 — — 2,287,776 Commercial and industrial 1,190,718 34,964 46,884 — — 1,272,566 Mortgage warehouse lines of credit 207,871 — — — — 207,871 Consumer 20,712 — 180 — — 20,892 Total loans held for investment $ 3,670,261 $ 39,364 $ 79,480 $ — $ — $ 3,789,105 |
Loan Portfolio Aging Analysis | The following tables present the Company's loan portfolio aging analysis at the dates indicated: March 31, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ 3,079 $ — $ 8,370 $ 11,449 $ 1,190,820 $ 1,202,269 $ — Construction/land/land development 572 612 56 1,240 486,927 488,167 — Residential real estate 2,424 317 2,988 5,729 632,335 638,064 — Total real estate 6,075 929 11,414 18,418 2,310,082 2,328,500 — Commercial and industrial 5,143 145 14,021 19,309 1,267,991 1,287,300 — Mortgage warehouse lines of credit — — — — 202,744 202,744 — Consumer 73 36 5 114 19,685 19,799 — Total loans held for investment $ 11,291 $ 1,110 $ 25,440 $ 37,841 $ 3,800,502 $ 3,838,343 $ — December 31, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Loans Past Due 90 Days or More Total Past Due Current Loans Total Loans Receivable Accruing Loans 90 or More Days Past Due Loans secured by real estate: Commercial real estate $ 458 $ 1,409 $ 7,224 $ 9,091 $ 1,219,311 $ 1,228,402 $ — Construction/land/land development 2,657 — 435 3,092 426,568 429,660 — Residential real estate 2,137 527 4,149 6,813 622,901 629,714 — Total real estate 5,252 1,936 11,808 18,996 2,268,780 2,287,776 — Commercial and industrial 276 8,263 6,157 14,696 1,257,870 1,272,566 — Mortgage warehouse lines of credit — — — — 207,871 207,871 — Consumer 383 8 2 393 20,499 20,892 — Total loans held for investment $ 5,911 $ 10,207 $ 17,967 $ 34,085 $ 3,755,020 $ 3,789,105 $ — |
Allowance for Loan Losses by Portfolio Segment | The following tables detail activity in the allowance for loan losses by portfolio segment. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Three Months Ended March 31, 2019 (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Benefit) (1) Ending Balance Loans secured by real estate: Commercial real estate $ 8,999 $ 89 $ 51 $ 297 $ 9,258 Construction/land/land development 3,331 — 1 347 3,679 Residential real estate 5,705 — 27 (155 ) 5,577 Commercial and industrial 15,616 511 1,074 296 16,475 Mortgage warehouse lines of credit 316 — — 49 365 Consumer 236 8 7 (11 ) 224 Total $ 34,203 $ 608 $ 1,160 $ 823 $ 35,578 ____________________________ (1) The $1.0 million provision for credit losses on the condensed consolidated statements of income includes a $823,000 net loan loss provision and a $182,000 provision for off-balance sheet commitments for the three months ended March 31, 2019 . Three Months Ended March 31, 2018 (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Benefit) (1) Ending Balance Loans secured by real estate: Commercial real estate $ 8,998 $ 9 $ 127 $ 1,028 $ 10,144 Construction/land/land development 2,950 — 1 (244 ) 2,707 Residential real estate 5,807 9 19 (346 ) 5,471 Commercial and industrial 18,831 1,703 174 (1,965 ) 15,337 Mortgage warehouse lines of credit 214 — — (56 ) 158 Consumer 283 17 24 25 315 Total $ 37,083 $ 1,738 $ 345 $ (1,558 ) $ 34,132 ____________________________ (1) The $1.5 million benefit for credit losses on the condensed consolidated statements of income includes a $1.6 million net loan loss benefit and a $34,000 provision for off-balance sheet commitments for the three months ended March 31, 2018 . |
Loans Receivable by Method of Impairment Evaluation | The following tables present the balance of loans receivable by method of impairment evaluation at the dates indicated: March 31, 2019 (Dollars in thousands) Period End Allowance Allocated to Loans Individually Evaluated for Impairment Period End Allowance Allocated to Loans Collectively Evaluated for Impairment Period End Loan Balance Individually Evaluated for Impairment Period End Loan Balance Collectively Evaluated for Impairment (1) Loans secured by real estate: Commercial real estate $ — $ 9,258 $ 9,099 $ 1,174,783 Construction/land/land development 1 3,678 1,002 487,165 Residential real estate 15 5,562 4,867 633,197 Commercial and industrial 183 16,292 15,728 1,271,572 Mortgage warehouse lines of credit — 365 — 202,744 Consumer 1 223 168 19,631 Total $ 200 $ 35,378 $ 30,864 $ 3,789,092 ____________________________ (1) Excludes $18.4 million of commercial real estate loans at fair value, which are not evaluated for impairment due to the fair value option election. See Note 5 - Fair Value of Financial Instruments for more information. December 31, 2018 (Dollars in thousands) Period End Allowance Allocated to Loans Individually Evaluated for Impairment Period End Allowance Allocated to Loans Collectively Evaluated for Impairment Period End Loan Balance Individually Evaluated for Impairment Period End Loan Balance Collectively Evaluated for Impairment (1) Loans secured by real estate: Commercial real estate $ 5 $ 8,994 $ 8,773 $ 1,201,058 Construction/land/land development 19 3,312 1,017 428,643 Residential real estate 68 5,637 6,876 622,838 Commercial and industrial 255 15,361 16,428 1,256,138 Mortgage warehouse lines of credit — 316 — 207,871 Consumer 19 217 184 20,708 Total $ 366 $ 33,837 $ 33,278 $ 3,737,256 ____________________________ (1) Excludes $18.6 million of commercial real estate loans at fair value, which are not evaluated for impairment due to the fair value option election. See Note 5 - Fair Value of Financial Instruments for more information. |
Impaired Loans | The following tables present impaired loans at the dates indicated. No mortgage warehouse lines of credit were impaired at either March 31, 2019 , or December 31, 2018 . March 31, 2019 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with an Allowance Total Recorded Investment Allocation of Allowance for Loan Losses Loans secured by real estate: Commercial real estate $ 11,318 $ 9,052 $ 47 $ 9,099 $ — Construction/land/land development 1,320 876 126 1,002 1 Residential real estate 5,764 4,165 702 4,867 15 Total real estate 18,402 14,093 875 14,968 16 Commercial and industrial 18,304 15,278 450 15,728 183 Consumer 185 — 168 168 1 Total impaired loans $ 36,891 $ 29,371 $ 1,493 $ 30,864 $ 200 December 31, 2018 (Dollars in thousands) Unpaid Contractual Principal Balance Recorded Investment with no Allowance Recorded Investment with an Allowance Total Recorded Investment Allocation of Allowance for Loan Losses Loans secured by real estate: Commercial real estate $ 10,894 $ 8,725 $ 48 $ 8,773 $ 5 Construction/land/land development 1,329 838 179 1,017 19 Residential real estate 7,815 6,092 784 6,876 68 Total real estate 20,038 15,655 1,011 16,666 92 Commercial and industrial 18,883 15,806 622 16,428 255 Consumer 202 — 184 184 19 Total impaired loans $ 39,123 $ 31,461 $ 1,817 $ 33,278 $ 366 The average recorded investment and interest recognized on impaired loans while classified as impaired for the three months ended March 31, 2019 and 2018 , were as follows: Three Months Ended March 31, 2019 2018 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Loans secured by real estate: Commercial real estate $ 9,076 $ 5 $ 9,864 $ 27 Construction/land/land development 1,013 2 1,847 9 Residential real estate 5,953 7 7,665 24 Total real estate 16,042 14 19,376 60 Commercial and industrial 16,191 6 17,717 88 Consumer 178 1 256 3 Total impaired loans $ 32,411 $ 21 $ 37,349 $ 151 |
Non-performing (Nonaccrual) Loans Held for Investment | Non-performing (nonaccrual) loans held for investment were as follows: (Dollars in thousands) March 31, 2019 December 31, 2018 Loans secured by real estate: Commercial real estate $ 8,622 $ 8,281 Construction/land/land development 922 935 Residential real estate 5,196 6,668 Total real estate 14,740 15,884 Commercial and industrial 15,309 15,792 Consumer 206 180 Total nonaccrual loans $ 30,255 $ 31,856 |
Loans Classified as Troubled Debt Restructurings (TDRs) | The following is a summary of loans classified as TDRs. (Dollars in thousands) March 31, 2019 December 31, 2018 TDRs Nonaccrual TDRs $ 6,082 $ 5,793 Performing TDRs 1,270 2,054 Total $ 7,352 $ 7,847 The following table presents the pre-modification balance of TDR modifications that occurred during the periods indicated and the ending balances by concession type as of the period presented. Three Months Ended March 31, 2019 (Dollars in thousands) Number of Loans Restructured Pre-modification Recorded Balance Term Concessions Combination Total Modifications Loans secured by real estate: Construction/land/land development 1 $ 361 $ — $ 360 $ 360 Commercial and industrial 1 19 18 — 18 Total 2 $ 380 $ 18 $ 360 $ 378 Three Months Ended March 31, 2018 (Dollars in thousands) Number of Loans Restructured Pre-modification Recorded Balance Term Concessions Interest Rate Concessions Combination Total Modifications Loans secured by real estate: Residential real estate 1 $ 94 $ — $ — $ 91 $ 91 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets and Liabilities Recorded on a Recurring Basis | The following tables summarize financial assets and financial liabilities recorded at fair value on a recurring basis at March 31, 2019 , and December 31, 2018 , segregated by the level of valuation inputs within the fair value hierarchy utilized to measure fair value. There were no changes in the valuation techniques during March 31, 2019 , or December 31, 2018 . March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 56,986 $ 38,307 $ 95,293 Corporate bonds — 11,307 — 11,307 U.S. Government and agency securities 55,891 5,482 — 61,373 Commercial mortgage-backed securities — 12,368 — 12,368 Residential mortgage-backed securities — 185,492 — 185,492 Commercial collateralized mortgage obligations — 4,396 — 4,396 Residential collateralized mortgage obligations — 193,597 — 193,597 Securities available for sale 55,891 469,628 38,307 563,826 Securities carried at fair value through income — — 11,510 11,510 Loans held for sale — 15,598 — 15,598 Loans at fair value — — 18,387 18,387 Mortgage servicing rights — — 23,407 23,407 Other assets - derivatives — 5,816 — 5,816 Total recurring fair value measurements - assets $ 55,891 $ 491,042 $ 91,611 $ 638,544 Other liabilities - derivatives $ — $ (5,047 ) $ — $ (5,047 ) Total recurring fair value measurements - liabilities $ — $ (5,047 ) $ — $ (5,047 ) December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 61,522 $ 39,361 $ 100,883 Corporate bonds — 11,034 — 11,034 U.S. Government and agency securities 55,515 5,635 — 61,150 Commercial mortgage-backed securities — 16,766 — 16,766 Residential mortgage-backed securities — 186,315 — 186,315 Residential collateralized mortgage obligations — 199,496 — 199,496 Securities available for sale 55,515 480,768 39,361 575,644 Securities carried at fair value through income — — 11,361 11,361 Loans held for sale — 21,562 — 21,562 Loans at fair value — — 18,571 18,571 Mortgage servicing rights — — 25,114 25,114 Other assets - derivatives — 3,563 — 3,563 Total recurring fair value measurements - assets $ 55,515 $ 505,893 $ 94,407 $ 655,815 Other liabilities - derivatives $ — $ (2,846 ) $ — $ (2,846 ) Total recurring fair value measurements - liabilities $ — $ (2,846 ) $ — $ (2,846 ) |
Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2019 and 2018 , are summarized as follows: (Dollars in thousands) Loans at Fair Value MSRs Securities Available for Sale Securities at Fair Value Through Income Balance at January 1, 2019 $ 18,571 $ 25,114 $ 39,361 $ 11,361 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — (1,990 ) — — Other noninterest income 72 — — 149 Gain recognized in accumulated other comprehensive income — — 694 — Purchases, issuances, sales and settlements: Originations — 283 — — Purchases — — — — Settlements (256 ) — (1,748 ) — Balance at March 31, 2019 $ 18,387 $ 23,407 $ 38,307 $ 11,510 Balance at January 1, 2018 $ 26,611 $ 24,182 $ 42,015 $ 12,033 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — 1,274 — — Other noninterest income (295 ) — — (310 ) Loss recognized in accumulated other comprehensive income — — (727 ) — Purchases, issuances, sales, and settlements: Originations — 543 — — Purchases — — 259 — Settlements (382 ) — (1,586 ) — Balance at March 31, 2018 $ 25,934 $ 25,999 $ 39,961 $ 11,723 ____________________________ (1) Total mortgage banking revenue includes changes in fair value due to market changes and run-off. |
Significant Assumptions Used to Value Mortgage Servicing Rights | The significant assumptions used to value MSRs were as follows: March 31, 2019 December 31, 2018 Prepayment speed 11.10 % 9.90 % Discount rate 10.36 10.42 |
Difference Between Fair Value and the Unpaid Principal Balance for Financial Instruments for which the Fair Value Option has been Elected and Classification in Income Statement | Changes in the fair value of assets for which the Company elected the fair value option are classified in the condensed consolidated statement of income line items reflected in the following table. Three Months Ended March 31, (Dollars in thousands) 2019 2018 Changes in fair value included in noninterest income: Mortgage banking revenue $ 37 $ (324 ) Other income: Loans at fair value held for investment 72 (295 ) Securities carried at fair value through income 149 (310 ) Total impact on other income 221 (605 ) Total fair value option impact on noninterest income (1) $ 258 $ (929 ) ____________________________ (1) The fair value option impact on noninterest income is offset by the derivative gain/loss recognized in noninterest income. Please see Note 7 - Mortgage Banking for more detail. The following tables summarize the difference between the fair value and the unpaid principal balance for financial instruments for which the fair value option has been elected. March 31, 2019 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 15,598 $ 15,172 $ 426 Commercial real estate loans held for investment (2) 18,387 18,136 251 Securities carried at fair value through income 11,510 11,503 7 Total $ 45,495 $ 44,811 $ 684 ____________________________ (1) A total of $1.4 million of loans held for sale were designated as nonaccrual or 90 days or more past due at March 31, 2019 . Of this balance, $1.0 million was guaranteed by U.S. Government agencies. (2) There were no commercial real estate loans for which the fair value had been elected that were designated as nonaccrual or 90 days or more past due at March 31, 2019 . December 31, 2018 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 21,562 $ 21,173 $ 389 Commercial real estate loans held for investment (2) 18,571 18,391 180 Securities carried at fair value through income 11,361 11,503 (142 ) Total $ 51,494 $ 51,067 $ 427 ____________________________ (1) A total of $741,000 of loans held for sale were designated as nonaccrual or 90 days or more past due at December 31, 2018 . Of this balance, $582,000 was guaranteed by U.S. Government agencies. (2) There were no commercial real estate loans for which the fair value had been elected that were designated as nonaccrual or 90 days or more past due at December 31, 2018 . |
Carrying Value and Estimated Fair Value of Financial Instruments Not Measured at Fair Value | The carrying value and estimated fair values of financial instruments not recorded at fair value are as follows: (Dollars in thousands) March 31, 2019 December 31, 2018 Financial assets: Carrying Estimated Carrying Value Estimated Fair Value Level 1 inputs: Cash and cash equivalents $ 111,240 $ 111,240 $ 116,678 $ 116,678 Level 2 inputs: Securities held to maturity 19,033 18,941 19,169 19,136 Non-marketable equity securities held in other financial institutions 42,314 42,314 42,149 42,149 Accrued interest and loan fees receivable 15,872 15,872 16,454 16,454 Level 3 inputs: Loans held for investment, net (1) 3,784,378 3,639,333 3,736,331 3,605,142 Financial liabilities: Level 2 inputs: Deposits 3,898,248 3,710,982 3,783,138 3,537,283 FHLB advances and other borrowings 335,053 338,518 445,224 444,286 Junior subordinated debentures 9,651 10,721 9,644 10,723 Accrued interest payable 3,041 3,041 2,679 2,679 ____________________________ (1) Loans held for investment, net does not include loans for which the fair value option had been elected at March 31, 2019 , or December 31, 2018 , as these loans are carried at fair value on a recurring basis. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Balance Sheet Details | The balance sheet details and components of the Company's lease expense were as follows: (Dollars in thousands) At and for the Three Months Ended March 31, 2019 Operating lease right of use assets (included in Accrued interest receivable and other assets) $ 26,267 Operating lease liabilities (included in Accrued expenses and other liabilities) 28,247 Finance lease liabilities (included in Accrued expenses and other liabilities) 444 Lease expense: Operating lease expense 1,146 Other lease expense 62 Total lease expense $ 1,208 Weighted average remaining lease term (years) - operating leases 9.87 Weighted average discount rate - operating leases 3.48 % Right of use assets obtained in exchange for new operating lease liabilities $ 940 |
Components of Lease Expense and Supplemental Cash Flow Related to Leases | Supplemental cash flow related to leases was as follows: Three Months Ended March 31, 2019 Operating cash flows from operating leases $ 1,173 The balance sheet details and components of the Company's lease expense were as follows: (Dollars in thousands) At and for the Three Months Ended March 31, 2019 Operating lease right of use assets (included in Accrued interest receivable and other assets) $ 26,267 Operating lease liabilities (included in Accrued expenses and other liabilities) 28,247 Finance lease liabilities (included in Accrued expenses and other liabilities) 444 Lease expense: Operating lease expense 1,146 Other lease expense 62 Total lease expense $ 1,208 Weighted average remaining lease term (years) - operating leases 9.87 Weighted average discount rate - operating leases 3.48 % Right of use assets obtained in exchange for new operating lease liabilities $ 940 |
Maturities of Operating Lease Liabilities | Maturities of operating lease liabilities were as follows: March 31, 2019 Year 1 $ 4,799 Year 2 4,458 Year 3 3,893 Year 4 3,687 Year 5 3,279 Year 6 and thereafter 13,845 Total lease payments 33,961 Less: Imputed interest 5,714 Total lease obligations $ 28,247 |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Mortgage Banking [Abstract] | |
Mortgage Banking Operations | The following table presents the Company's revenue from mortgage banking operations: (Dollars in thousands) Three Months Ended March 31, Mortgage banking revenue 2019 2018 Origination $ 130 $ 210 Gain on sale of loans held for sale 1,097 2,024 Servicing 1,699 1,837 Total gross mortgage revenue 2,926 4,071 Mortgage derivatives gain (loss) 210 (539 ) MSR change due to payoffs and paydowns (718 ) (784 ) MSR and hedge fair value adjustment 188 (379 ) Gain on MSR sale (1) — 25 Mortgage banking revenue $ 2,606 $ 2,394 ____________________________ (1) Amount shown during the three months ended March 31, 2018 , reflects final settlement on a loan servicing portfolio sold during the three months ended December 31, 2017. |
Schedule of Activity in Mortgages Servicing Rights (MSRs) | Activity in MSRs was as follows: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 25,114 $ 24,182 Origination of servicing rights 283 543 Change in fair value, including amortization, net (1,990 ) 1,274 Balance at end of period $ 23,407 $ 25,999 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments on the Balance Sheet | The following tables disclose the fair value of derivative instruments in the Company's condensed consolidated balance sheets at March 31, 2019 , and December 31, 2018 , as well as the effect of these derivative instruments on the Company's condensed consolidated statements of income for the three months ended March 31, 2019 and 2018 : Notional Amounts (1) Fair Values (Dollars in thousands) March 31, 2019 December 31, 2018 March 31, 2019 December 31, 2018 Derivatives designated as cash flow hedging instruments: Interest rate swaps included in other assets $ 10,500 $ 10,500 $ 58 $ 152 Derivatives not designated as hedging instruments: Interest rate swaps included in other assets $ 150,487 $ 127,512 $ 4,354 $ 2,302 Interest rate swaps included in other liabilities 168,747 145,857 (4,901 ) (2,625 ) Forward commitments to purchase mortgage-backed securities included in other assets 290,000 140,000 906 709 Forward commitments to sell residential mortgage loans included in other liabilities 28,150 24,750 (146 ) (221 ) Interest rate-lock commitments on residential mortgage loans included in other assets 24,896 16,244 498 400 $ 662,280 $ 454,363 $ 711 $ 565 ____________________________ (1) Notional or contractual amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk and are not reflected in the condensed consolidated balance sheets. |
Weighted-average Rates Paid and Received for Interest Rate Swaps | The weighted-average rates paid and received for interest rate swaps at March 31, 2019 , were as follows: Weighted-Average Interest Rate Paid Interest Rate Received Interest rate swaps: Cash flow hedges 4.81 % 5.42 % Non-hedging interest rate swaps - financial institution counterparties 5.02 4.72 Non-hedging interest rate swaps - customer counterparties 4.80 5.06 |
Gains and Losses Recognized on Derivative Instruments Not Designated as Hedging Instruments | Gains and losses recognized on derivative instruments not designated as hedging instruments were as follows: (Dollars in thousands) Three Months Ended March 31, Derivatives not designated as hedging instruments: 2019 2018 Amount of gain (loss) recognized in mortgage banking revenue (1) $ 1,311 $ (1,661 ) Amount of (loss) gain recognized in other non-interest income (225 ) 523 ____________________________ (1) Gains and losses on these instruments are largely offset by market fluctuations in mortgage servicing rights. See Note 7 - Mortgage Banking for more information on components of mortgage banking revenue. |
Stock and Incentive Compensat_2
Stock and Incentive Compensation Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Compensation Cost Charged to Income | Share-based compensation cost charged to income for the three months ended March 31, 2019 and 2018 , is presented below: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Restricted stock $ 470 $ 194 Total stock compensation expense $ 470 $ 194 Related tax benefits recognized in net income $ 99 $ 41 |
Time-vested Award Activity | The following table summarizes the Company's time-vested award activity: Three Months Ended March 31, 2019 2018 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested shares, January 1, 174,407 $ 35.01 61,293 $ 24.61 Granted 976 35.91 7,334 25.41 Vested (3,568 ) 25.25 (4,397 ) 24.91 Forfeited (1,550 ) 23.64 — — Nonvested shares, March 31, 170,265 $ 35.32 64,230 $ 24.68 |
Stock Option Activity | The table below summarizes the status of the Company's stock options and changes during the three months ended March 31, 2019 and 2018 . (Dollars in thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Three months ended March 31, 2018 Outstanding at January 1, 2018 319,500 $ 10.65 7.07 $ 4,840 Outstanding at March 31, 2018 319,500 10.65 6.82 4,843 Three months ended March 31, 2019 Outstanding at January 1, 2019 274,000 $ 10.38 6.75 $ 6,493 Exercised (20,000 ) 8.25 — — Outstanding at March 31, 2019 254,000 10.55 6.56 5,969 Exercisable at March 31, 2019 254,000 $ 10.55 6.56 $ 5,969 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes was as follows: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Federal income taxes: Current $ 3,167 $ 2,175 Deferred (336 ) 501 State income taxes: Current 268 76 Deferred (10 ) 32 Income tax expense $ 3,089 $ 2,784 Effective income tax rate 17.9 % 17.2 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income ("AOCI") includes the after-tax change in unrealized gains and losses on available for sale ("AFS") securities and cash flow hedging activities. (Dollars in thousands) Unrealized Gains on AFS Securities Cash Flow Hedges Accumulated Other Comprehensive Income Balance at January 1, 2019 $ (2,601 ) $ 121 $ (2,480 ) Net change 4,078 (74 ) 4,004 Balance at March 31, 2019 $ 1,477 $ 47 $ 1,524 Balance at January 1, 2018 $ 1,280 $ 27 $ 1,307 Net change (4,492 ) 144 (4,348 ) Reclassification of tax effects related to the adoption of ASU 2018-02 (1) : Current (293 ) 17 (276 ) Deferred 569 (11 ) 558 Balance at March 31, 2018 $ (2,936 ) $ 177 $ (2,759 ) ____________________________ (1) During the first quarter of 2018, the Company adopted ASU 2018-02. The ASU was issued by the FASB in February 2018, to address the issue of other comprehensive income or loss that became stranded in AOCI as a result of the re-measurement of an entity's deferred income tax assets and liabilities following the reduction of the U.S. federal corporate tax rate from 35% to 21% pursuant to the enactment of the Tax Cuts and Jobs Act in December 2017. The Company also had certain current tax amounts stranded in AOCI that resulted from a tax accounting election to tax net gains and losses on AFS securities and cash flow hedges as current items beginning in 2016. The Company reclassifies the taxes from AOCI to earnings as the individual securities and hedges are realized. Due to the change in corporate tax rates, the Company had certain net gains and losses taxed at the 35% rate reflected in AOCI. As these transactions are realized over time, they will flow through income tax expense at the 21% rate. Rather than adjusting income tax expense for the difference as each of these securities and instruments are realized, the Company elected to adjust the difference (stranded tax effect) to retained earnings, consistent with the treatment of the deferred tax adjustment. |
Capital and Regulatory Matters
Capital and Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Actual Capital Amounts and Ratios | The actual capital amounts and ratios of the Company and Bank at March 31, 2019 , and December 31, 2018 , are presented in the following table: (Dollars in thousands) Actual Minimum Capital Required - Basel III Fully Phased-In To be Well Capitalized Under Prompt Corrective Action Provisions March 31, 2019 Amount Ratio Amount Ratio Amount Ratio Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. $ 534,230 12.05 % $ 310,382 7.00 % N/A N/A Origin Bank 523,866 11.85 309,522 7.00 $ 287,413 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 543,555 12.26 376,893 8.50 N/A N/A Origin Bank 523,866 11.85 375,848 8.50 353,739 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 580,763 13.10 465,572 10.50 N/A N/A Origin Bank 561,074 12.69 464,282 10.50 442,174 10.00 Leverage Ratio Origin Bancorp, Inc. 543,555 11.23 193,656 4.00 N/A N/A Origin Bank 523,866 10.85 193,150 4.00 241,437 5.00 December 31, 2018 Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. $ 519,468 11.94 % $ 304,431 7.00 % N/A N/A Origin Bank 508,826 11.73 303,621 7.00 $ 281,934 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 528,786 12.16 369,668 8.50 N/A N/A Origin Bank 508,826 11.73 368,683 8.50 346,996 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 564,437 12.98 456,647 10.50 N/A N/A Origin Bank 544,477 12.55 455,430 10.50 433,743 10.00 Leverage Ratio Origin Bancorp, Inc. 528,786 11.21 188,711 4.00 N/A N/A Origin Bank 508,826 10.81 188,229 4.00 235,287 5.00 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Financial Instruments | These off-balance sheet financial instruments are summarized below: (Dollars in thousands) March 31, 2019 December 31, 2018 Commitments to extend credit $ 1,219,539 $ 1,178,735 Standby letters of credit 50,781 46,860 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2019centersegment | |
Accounting Policies [Abstract] | |
Number of banking centers | center | 42 |
Number of segments | segment | 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic earnings per common share | ||
Net income | $ 14,155 | $ 13,407 |
Less: Dividends to preferred stock | 0 | 1,115 |
Net income allocated to participating stockholders | 0 | 553 |
Net income available to common stockholders | $ 14,155 | $ 11,739 |
Weighted average common shares outstanding (in shares) | 23,569,576 | 19,459,278 |
Basic earnings per common share ($ per share) | $ 0.60 | $ 0.60 |
Diluted earnings per common share | ||
Diluted earnings (loss) applicable to common stockholders (in shares) | $ 14,155 | $ 11,771 |
Weighted average diluted common shares outstanding | ||
Weighted average common shares outstanding (in shares) | 23,569,576 | 19,459,278 |
Dilutive effect of common stock options (in shares) | 206,773 | 216,195 |
Weighted average diluted common shares outstanding (in shares) | 23,776,349 | 19,675,473 |
Diluted earnings per common share ($ per share) | $ 0.60 | $ 0.60 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available for sale | ||
Amortized Cost | $ 562,067 | $ 579,051 |
Available for sale, gross unrealized gains | 4,685 | 2,276 |
Available for sale, gross unrealized losses | (2,926) | (5,683) |
Available for sale, fair value | 563,826 | 575,644 |
Held to maturity | ||
Amortized Cost | 19,033 | 19,169 |
Securities held to maturity, fair value | 18,941 | 19,136 |
Securities carried at fair value through income, fair value | 11,510 | 11,361 |
State and municipal securities | ||
Available for sale | ||
Amortized Cost | 93,222 | 99,780 |
Available for sale, gross unrealized gains | 2,093 | 1,266 |
Available for sale, gross unrealized losses | (22) | (163) |
Available for sale, fair value | 95,293 | 100,883 |
Held to maturity | ||
Amortized Cost | 19,033 | 19,169 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | (92) | (33) |
Securities held to maturity, fair value | 18,941 | 19,136 |
Securities carried at fair value through income, amortized cost | 11,503 | 11,503 |
Securities carried at fair value through income, fair value | 11,510 | 11,361 |
Corporate bonds | ||
Available for sale | ||
Amortized Cost | 11,007 | 10,997 |
Available for sale, gross unrealized gains | 300 | 102 |
Available for sale, gross unrealized losses | 0 | (65) |
Available for sale, fair value | 11,307 | 11,034 |
U.S. Government and agency securities | ||
Available for sale | ||
Amortized Cost | 61,273 | 61,122 |
Available for sale, gross unrealized gains | 109 | 82 |
Available for sale, gross unrealized losses | (9) | (54) |
Available for sale, fair value | 61,373 | 61,150 |
Commercial mortgage-backed securities | ||
Available for sale | ||
Amortized Cost | 16,672 | |
Available for sale, gross unrealized gains | 188 | 94 |
Available for sale, gross unrealized losses | 0 | 0 |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 12,368 | |
Available for sale, fair value | 16,766 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 12,180 | |
Residential mortgage-backed securities | ||
Available for sale | ||
Amortized Cost | 188,058 | |
Available for sale, gross unrealized gains | 1,462 | 417 |
Available for sale, gross unrealized losses | (993) | (2,160) |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 185,492 | |
Available for sale, fair value | 186,315 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 185,023 | |
Commercial collateralized mortgage obligations | ||
Available for sale | ||
Available for sale, gross unrealized gains | 19 | |
Available for sale, gross unrealized losses | 0 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | 4,377 | |
Residential collateralized mortgage obligations | ||
Available for sale | ||
Amortized Cost | 202,422 | |
Available for sale, gross unrealized gains | 514 | 315 |
Available for sale, gross unrealized losses | (1,902) | (3,241) |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Fair Value | 193,597 | |
Available for sale, fair value | $ 199,496 | |
Debt Securities, Available-for-sale, Maturity, without Single Maturity Date, Amortized Cost | $ 194,985 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than 12 Months | $ 11,404 | $ 110,851 |
12 Months or More | 195,232 | 206,535 |
Total | 206,636 | 317,386 |
Unrealized Loss | ||
Less than 12 Months | (30) | (313) |
12 Months or More | (2,896) | (5,370) |
Total | (2,926) | (5,683) |
State and municipal securities | ||
Fair Value | ||
Less than 12 Months | 1,050 | 13,101 |
12 Months or More | 2,319 | 8,463 |
Total | 3,369 | 21,564 |
Unrealized Loss | ||
Less than 12 Months | (1) | (50) |
12 Months or More | (21) | (113) |
Total | (22) | (163) |
Fair Value | ||
Less than 12 Months | 18,941 | 13,921 |
12 Months or More | 0 | 0 |
Total | 18,941 | 13,921 |
Unrealized Loss | ||
Less than 12 Months | (92) | (33) |
12 Months or More | 0 | 0 |
Total | (92) | (33) |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 7,932 | |
12 Months or More | 0 | |
Total | 7,932 | |
Unrealized Loss | ||
Less than 12 Months | (65) | |
12 Months or More | 0 | |
Total | (65) | |
U.S. Government and agency securities | ||
Fair Value | ||
Less than 12 Months | 737 | 56,271 |
12 Months or More | 0 | 0 |
Total | 737 | 56,271 |
Unrealized Loss | ||
Less than 12 Months | (9) | (54) |
12 Months or More | 0 | 0 |
Total | (9) | (54) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 1,056 | 18,836 |
12 Months or More | 73,622 | 77,471 |
Total | 74,678 | 96,307 |
Unrealized Loss | ||
Less than 12 Months | (5) | (65) |
12 Months or More | (988) | (2,095) |
Total | (993) | (2,160) |
Residential collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 8,561 | 14,711 |
12 Months or More | 119,291 | 120,601 |
Total | 127,852 | 135,312 |
Unrealized Loss | ||
Less than 12 Months | (15) | (79) |
12 Months or More | (1,887) | (3,162) |
Total | $ (1,902) | $ (3,241) |
Securities - Narrative (Details
Securities - Narrative (Details) | Mar. 31, 2019security |
Investments, Debt and Equity Securities [Abstract] | |
Number of securities in an unrealized loss positions (in security) | 77 |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 59,523 | |
Due after one year through five years | 24,357 | |
Due after five years through ten years | 76,290 | |
Due after ten years | 5,332 | |
Amortized Cost | 562,067 | $ 579,051 |
Fair Value | ||
Due in one year or less | 59,552 | |
Due after one year through five years | 24,731 | |
Due after five years through ten years | 78,255 | |
Due after ten years | 5,435 | |
Fair Value | 563,826 | 575,644 |
Amortized Cost | ||
Due in one year or less | 0 | |
Due after one year through five years | 13,820 | |
Due after five years through ten years | 0 | |
Due after ten years | 5,213 | |
Amortized Cost | 19,033 | 19,169 |
Fair Value | ||
Due in one year or less | 0 | |
Due after one year through five years | 13,808 | |
Due after five years through ten years | 0 | |
Due after ten years | 5,133 | |
Fair Value | 18,941 | 19,136 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 12,180 | |
Amortized Cost | 16,672 | |
Fair Value | ||
Without single maturity date | 12,368 | |
Fair Value | 16,766 | |
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 185,023 | |
Amortized Cost | 188,058 | |
Fair Value | ||
Without single maturity date | 185,492 | |
Fair Value | 186,315 | |
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Commercial collateralized mortgage obligations | ||
Amortized Cost | ||
Without single maturity date | 4,377 | |
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Residential collateralized mortgage obligations | ||
Amortized Cost | ||
Without single maturity date | 194,985 | |
Amortized Cost | 202,422 | |
Fair Value | ||
Without single maturity date | 193,597 | |
Fair Value | $ 199,496 | |
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | $ 0 |
Securities - Securities Pledged
Securities - Securities Pledged as Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying value of securities pledged to secure public deposits | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities pledged as collateral | $ 334,352 | $ 364,055 |
Carrying value of securities pledged to repurchase agreements | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities pledged as collateral | $ 39,477 | $ 48,847 |
Loans - Schedule of Loans (Deta
Loans - Schedule of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | $ 42,265 | $ 52,210 | ||
Loans held for investment | 3,838,343 | 3,789,105 | ||
Less: Allowance for loan losses | 35,578 | 34,203 | $ 34,132 | $ 37,083 |
Net loans held for investment | 3,802,765 | 3,754,902 | ||
Net deferred loan fees | 3,300 | 3,200 | ||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for investment | 2,328,500 | 2,287,776 | ||
Real estate | Commercial real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for investment | 1,202,269 | 1,228,402 | ||
Less: Allowance for loan losses | 9,258 | 8,999 | 10,144 | 8,998 |
Real estate | Construction/land/land development | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for investment | 488,167 | 429,660 | ||
Less: Allowance for loan losses | 3,679 | 3,331 | 2,707 | 2,950 |
Real estate | Residential real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for investment | 638,064 | 629,714 | ||
Less: Allowance for loan losses | 5,577 | 5,705 | 5,471 | 5,807 |
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for investment | 1,287,300 | 1,272,566 | ||
Less: Allowance for loan losses | 16,475 | 15,616 | 15,337 | 18,831 |
Mortgage warehouse lines of credit | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for investment | 202,744 | 207,871 | ||
Less: Allowance for loan losses | 365 | 316 | 158 | 214 |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for investment | 19,799 | 20,892 | ||
Less: Allowance for loan losses | $ 224 | $ 236 | $ 315 | $ 283 |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | Dec. 31, 2018USD ($) | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment at fair value | $ 18,387,000 | $ 18,571,000 | |
Nonaccrual mortgage loans held for sale recorded at fair value | $ 1,400,000 | 741,000 | |
Number of loans that defaulted | loan | 0 | 0 | |
Nonperforming Financial Instruments | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Gross interest income that would have been recorded | $ 355,000 | $ 430,000 | |
Interest income | 0 | $ 0 | |
Real estate | Commercial real estate | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for investment at fair value | $ 18,400,000 | $ 18,600,000 |
Loans - Loans by Credit Quality
Loans - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | $ 3,838,343 | $ 3,789,105 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 3,722,763 | 3,670,261 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 41,661 | 39,364 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 73,919 | 79,480 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 2,328,500 | 2,287,776 |
Real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 2,282,694 | 2,250,960 |
Real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 16,408 | 4,400 |
Real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 29,398 | 32,416 |
Real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 1,202,269 | 1,228,402 |
Real estate | Commercial real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 1,169,170 | 1,206,194 |
Real estate | Commercial real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 14,272 | 3,101 |
Real estate | Commercial real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 18,827 | 19,107 |
Real estate | Commercial real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Commercial real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Construction/land/land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 488,167 | 429,660 |
Real estate | Construction/land/land development | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 484,912 | 426,770 |
Real estate | Construction/land/land development | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 1,004 | 157 |
Real estate | Construction/land/land development | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 2,251 | 2,733 |
Real estate | Construction/land/land development | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Construction/land/land development | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 638,064 | 629,714 |
Real estate | Residential real estate | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 628,612 | 617,996 |
Real estate | Residential real estate | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 1,132 | 1,142 |
Real estate | Residential real estate | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 8,320 | 10,576 |
Real estate | Residential real estate | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Real estate | Residential real estate | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 1,287,300 | 1,272,566 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 1,217,732 | 1,190,718 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 25,253 | 34,964 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 44,315 | 46,884 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Commercial and industrial | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse lines of credit | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 202,744 | 207,871 |
Mortgage warehouse lines of credit | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 202,744 | 207,871 |
Mortgage warehouse lines of credit | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse lines of credit | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse lines of credit | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Mortgage warehouse lines of credit | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 19,799 | 20,892 |
Consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 19,593 | 20,712 |
Consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 206 | 180 |
Consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | 0 | 0 |
Consumer | Loss | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans held for investment | $ 0 | $ 0 |
Loans - Loan Portfolio Aging An
Loans - Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 37,841 | $ 34,085 |
Current Loans | 3,800,502 | 3,755,020 |
Total Loans Receivable | 3,838,343 | 3,789,105 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,291 | 5,911 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,110 | 10,207 |
Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 25,440 | 17,967 |
Real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 18,418 | 18,996 |
Current Loans | 2,310,082 | 2,268,780 |
Total Loans Receivable | 2,328,500 | 2,287,776 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 6,075 | 5,252 |
Real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 929 | 1,936 |
Real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,414 | 11,808 |
Real estate | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 11,449 | 9,091 |
Current Loans | 1,190,820 | 1,219,311 |
Total Loans Receivable | 1,202,269 | 1,228,402 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,079 | 458 |
Real estate | Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 1,409 |
Real estate | Commercial real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 8,370 | 7,224 |
Real estate | Construction/land/land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,240 | 3,092 |
Current Loans | 486,927 | 426,568 |
Total Loans Receivable | 488,167 | 429,660 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Construction/land/land development | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 572 | 2,657 |
Real estate | Construction/land/land development | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 612 | 0 |
Real estate | Construction/land/land development | Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 56 | 435 |
Real estate | Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,729 | 6,813 |
Current Loans | 632,335 | 622,901 |
Total Loans Receivable | 638,064 | 629,714 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,424 | 2,137 |
Real estate | Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 317 | 527 |
Real estate | Residential real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,988 | 4,149 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 19,309 | 14,696 |
Current Loans | 1,267,991 | 1,257,870 |
Total Loans Receivable | 1,287,300 | 1,272,566 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 5,143 | 276 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 145 | 8,263 |
Commercial and industrial | Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 14,021 | 6,157 |
Mortgage warehouse lines of credit | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current Loans | 202,744 | 207,871 |
Total Loans Receivable | 202,744 | 207,871 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Mortgage warehouse lines of credit | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Mortgage warehouse lines of credit | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Mortgage warehouse lines of credit | Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 114 | 393 |
Current Loans | 19,685 | 20,499 |
Total Loans Receivable | 19,799 | 20,892 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 73 | 383 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 36 | 8 |
Consumer | Loans Past Due 90 Days or More | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 5 | $ 2 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | $ 34,203 | $ 37,083 |
Charge-offs | 608 | 1,738 |
Recoveries | 1,160 | 345 |
Provision (Benefit) | 823 | (1,558) |
Ending Balance | 35,578 | 34,132 |
Provision (benefit) for credit losses | 1,005 | (1,524) |
Provision (release of provision) for off-balance sheet commitments | 182 | 34 |
Real estate | Commercial real estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 8,999 | 8,998 |
Charge-offs | 89 | 9 |
Recoveries | 51 | 127 |
Provision (Benefit) | 297 | 1,028 |
Ending Balance | 9,258 | 10,144 |
Real estate | Construction/land/land development | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 3,331 | 2,950 |
Charge-offs | 0 | 0 |
Recoveries | 1 | 1 |
Provision (Benefit) | 347 | (244) |
Ending Balance | 3,679 | 2,707 |
Real estate | Residential real estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 5,705 | 5,807 |
Charge-offs | 0 | 9 |
Recoveries | 27 | 19 |
Provision (Benefit) | (155) | (346) |
Ending Balance | 5,577 | 5,471 |
Commercial and industrial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 15,616 | 18,831 |
Charge-offs | 511 | 1,703 |
Recoveries | 1,074 | 174 |
Provision (Benefit) | 296 | (1,965) |
Ending Balance | 16,475 | 15,337 |
Mortgage warehouse lines of credit | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 316 | 214 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (Benefit) | 49 | (56) |
Ending Balance | 365 | 158 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning Balance | 236 | 283 |
Charge-offs | 8 | 17 |
Recoveries | 7 | 24 |
Provision (Benefit) | (11) | 25 |
Ending Balance | $ 224 | $ 315 |
Loans - Impaired Loans Evaluate
Loans - Impaired Loans Evaluated Individually and Collectively (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Period End Allowance Allocated to Loans Individually Evaluated for Impairment | $ 200 | $ 366 |
Period End Allowance Allocated to Loans Collectively Evaluated for Impairment | 35,378 | 33,837 |
Period End Loan Balance Individually Evaluated for Impairment | 30,864 | 33,278 |
Period End Loan Balance Collectively Evaluated for Impairment | 3,789,092 | 3,737,256 |
Loans held for investment at fair value | 18,387 | 18,571 |
Real estate | Commercial real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Period End Allowance Allocated to Loans Individually Evaluated for Impairment | 0 | 5 |
Period End Allowance Allocated to Loans Collectively Evaluated for Impairment | 9,258 | 8,994 |
Period End Loan Balance Individually Evaluated for Impairment | 9,099 | 8,773 |
Period End Loan Balance Collectively Evaluated for Impairment | 1,174,783 | 1,201,058 |
Loans held for investment at fair value | 18,400 | 18,600 |
Real estate | Construction/land/land development | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Period End Allowance Allocated to Loans Individually Evaluated for Impairment | 1 | 19 |
Period End Allowance Allocated to Loans Collectively Evaluated for Impairment | 3,678 | 3,312 |
Period End Loan Balance Individually Evaluated for Impairment | 1,002 | 1,017 |
Period End Loan Balance Collectively Evaluated for Impairment | 487,165 | 428,643 |
Real estate | Residential real estate | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Period End Allowance Allocated to Loans Individually Evaluated for Impairment | 15 | 68 |
Period End Allowance Allocated to Loans Collectively Evaluated for Impairment | 5,562 | 5,637 |
Period End Loan Balance Individually Evaluated for Impairment | 4,867 | 6,876 |
Period End Loan Balance Collectively Evaluated for Impairment | 633,197 | 622,838 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Period End Allowance Allocated to Loans Individually Evaluated for Impairment | 183 | 255 |
Period End Allowance Allocated to Loans Collectively Evaluated for Impairment | 16,292 | 15,361 |
Period End Loan Balance Individually Evaluated for Impairment | 15,728 | 16,428 |
Period End Loan Balance Collectively Evaluated for Impairment | 1,271,572 | 1,256,138 |
Mortgage warehouse lines of credit | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Period End Allowance Allocated to Loans Individually Evaluated for Impairment | 0 | 0 |
Period End Allowance Allocated to Loans Collectively Evaluated for Impairment | 365 | 316 |
Period End Loan Balance Individually Evaluated for Impairment | 0 | 0 |
Period End Loan Balance Collectively Evaluated for Impairment | 202,744 | 207,871 |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Period End Allowance Allocated to Loans Individually Evaluated for Impairment | 1 | 19 |
Period End Allowance Allocated to Loans Collectively Evaluated for Impairment | 223 | 217 |
Period End Loan Balance Individually Evaluated for Impairment | 168 | 184 |
Period End Loan Balance Collectively Evaluated for Impairment | $ 19,631 | $ 20,708 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | $ 36,891 | $ 39,123 |
Recorded Investment with no Allowance | 29,371 | 31,461 |
Recorded Investment with an Allowance | 1,493 | 1,817 |
Total Recorded Investment | 30,864 | 33,278 |
Allocation of Allowance for Loan Losses | 200 | 366 |
Real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 18,402 | 20,038 |
Recorded Investment with no Allowance | 14,093 | 15,655 |
Recorded Investment with an Allowance | 875 | 1,011 |
Total Recorded Investment | 14,968 | 16,666 |
Allocation of Allowance for Loan Losses | 16 | 92 |
Real estate | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 11,318 | 10,894 |
Recorded Investment with no Allowance | 9,052 | 8,725 |
Recorded Investment with an Allowance | 47 | 48 |
Total Recorded Investment | 9,099 | 8,773 |
Allocation of Allowance for Loan Losses | 0 | 5 |
Real estate | Construction/land/land development | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 1,320 | 1,329 |
Recorded Investment with no Allowance | 876 | 838 |
Recorded Investment with an Allowance | 126 | 179 |
Total Recorded Investment | 1,002 | 1,017 |
Allocation of Allowance for Loan Losses | 1 | 19 |
Real estate | Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 5,764 | 7,815 |
Recorded Investment with no Allowance | 4,165 | 6,092 |
Recorded Investment with an Allowance | 702 | 784 |
Total Recorded Investment | 4,867 | 6,876 |
Allocation of Allowance for Loan Losses | 15 | 68 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 18,304 | 18,883 |
Recorded Investment with no Allowance | 15,278 | 15,806 |
Recorded Investment with an Allowance | 450 | 622 |
Total Recorded Investment | 15,728 | 16,428 |
Allocation of Allowance for Loan Losses | 183 | 255 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Contractual Principal Balance | 185 | 202 |
Recorded Investment with no Allowance | 0 | 0 |
Recorded Investment with an Allowance | 168 | 184 |
Total Recorded Investment | 168 | 184 |
Allocation of Allowance for Loan Losses | $ 1 | $ 19 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment and Interest Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | $ 32,411 | $ 37,349 |
Interest Income Recognized | 21 | 151 |
Real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 16,042 | 19,376 |
Interest Income Recognized | 14 | 60 |
Real estate | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 9,076 | 9,864 |
Interest Income Recognized | 5 | 27 |
Real estate | Construction/land/land development | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 1,013 | 1,847 |
Interest Income Recognized | 2 | 9 |
Real estate | Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 5,953 | 7,665 |
Interest Income Recognized | 7 | 24 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 16,191 | 17,717 |
Interest Income Recognized | 6 | 88 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Average Recorded Investment | 178 | 256 |
Interest Income Recognized | $ 1 | $ 3 |
Loans - Non Performing (Nonaccr
Loans - Non Performing (Nonaccrual) Loans Held For Investment (Details) - Nonperforming Financial Instruments - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | $ 30,255 | $ 31,856 |
Real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | 14,740 | 15,884 |
Real estate | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | 8,622 | 8,281 |
Real estate | Construction/land/land development | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | 922 | 935 |
Real estate | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | 5,196 | 6,668 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | 15,309 | 15,792 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total nonaccrual loans | $ 206 | $ 180 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Modifications [Line Items] | ||
Loans classified as troubled debt restructurings | $ 7,352 | $ 7,847 |
Nonaccrual TDRs | ||
Financing Receivable, Modifications [Line Items] | ||
Loans classified as troubled debt restructurings | 6,082 | 5,793 |
Performing TDRs | ||
Financing Receivable, Modifications [Line Items] | ||
Loans classified as troubled debt restructurings | $ 1,270 | $ 2,054 |
Loans - Pre-Modification Balanc
Loans - Pre-Modification Balances of TDR (Details) - Nonperforming Financial Instruments $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)loan | Mar. 31, 2018USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of loans restructured | loan | 2 | |
Pre-modification recorded balance | $ 380 | |
Total Modifications | $ 378 | |
Real estate | Construction/land/land development | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans restructured | loan | 1 | |
Pre-modification recorded balance | $ 361 | |
Total Modifications | $ 360 | |
Real estate | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans restructured | loan | 1 | |
Pre-modification recorded balance | $ 94 | |
Total Modifications | 91 | |
Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of loans restructured | loan | 1 | |
Pre-modification recorded balance | $ 19 | |
Total Modifications | 18 | |
Term Concessions | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | 18 | |
Term Concessions | Real estate | Construction/land/land development | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | 0 | |
Term Concessions | Real estate | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | 0 | |
Term Concessions | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | 18 | |
Interest Rate Concessions | Real estate | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | 0 | |
Combination | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | 360 | |
Combination | Real estate | Construction/land/land development | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | 360 | |
Combination | Real estate | Residential real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | $ 91 | |
Combination | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Total Modifications | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Value of Assets and Liabilities Recorded on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | $ 563,826 | $ 575,644 | ||
Securities carried at fair value through income | 11,510 | 11,361 | ||
Loans held for sale | 15,598 | 21,562 | ||
Loans at fair value | 18,387 | 18,571 | ||
Mortgage servicing rights | 23,407 | 25,114 | $ 25,999 | $ 24,182 |
State and municipal securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 95,293 | 100,883 | ||
Securities carried at fair value through income | 11,510 | 11,361 | ||
Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 11,307 | 11,034 | ||
U.S. Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 61,373 | 61,150 | ||
Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 16,766 | |||
Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 186,315 | |||
Residential collateralized mortgage obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 199,496 | |||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 563,826 | 575,644 | ||
Securities carried at fair value through income | 11,510 | 11,361 | ||
Loans held for sale | 15,598 | 21,562 | ||
Loans at fair value | 18,387 | 18,571 | ||
Mortgage servicing rights | 23,407 | 25,114 | ||
Other assets - derivatives | 5,816 | 3,563 | ||
Total recurring fair value measurements - assets | 638,544 | 655,815 | ||
Other liabilities - derivatives | (5,047) | (2,846) | ||
Total recurring fair value measurements - liabilities | (5,047) | (2,846) | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 55,891 | 55,515 | ||
Securities carried at fair value through income | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans at fair value | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Other assets - derivatives | 0 | 0 | ||
Total recurring fair value measurements - assets | 55,891 | 55,515 | ||
Other liabilities - derivatives | 0 | 0 | ||
Total recurring fair value measurements - liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 469,628 | 480,768 | ||
Securities carried at fair value through income | 0 | 0 | ||
Loans held for sale | 15,598 | 21,562 | ||
Loans at fair value | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Other assets - derivatives | 5,816 | 3,563 | ||
Total recurring fair value measurements - assets | 491,042 | 505,893 | ||
Other liabilities - derivatives | (5,047) | (2,846) | ||
Total recurring fair value measurements - liabilities | (5,047) | (2,846) | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 38,307 | 39,361 | ||
Securities carried at fair value through income | 11,510 | 11,361 | ||
Loans held for sale | 0 | 0 | ||
Loans at fair value | 18,387 | 18,571 | ||
Mortgage servicing rights | 23,407 | 25,114 | ||
Other assets - derivatives | 0 | 0 | ||
Total recurring fair value measurements - assets | 91,611 | 94,407 | ||
Other liabilities - derivatives | 0 | 0 | ||
Total recurring fair value measurements - liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring | State and municipal securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 95,293 | 100,883 | ||
Fair Value, Measurements, Recurring | State and municipal securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | State and municipal securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 56,986 | 61,522 | ||
Fair Value, Measurements, Recurring | State and municipal securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 38,307 | 39,361 | ||
Fair Value, Measurements, Recurring | Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 11,307 | 11,034 | ||
Fair Value, Measurements, Recurring | Corporate bonds | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Corporate bonds | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 11,307 | 11,034 | ||
Fair Value, Measurements, Recurring | Corporate bonds | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | U.S. Government and agency securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 61,373 | 61,150 | ||
Fair Value, Measurements, Recurring | U.S. Government and agency securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 55,891 | 55,515 | ||
Fair Value, Measurements, Recurring | U.S. Government and agency securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 5,482 | 5,635 | ||
Fair Value, Measurements, Recurring | U.S. Government and agency securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 12,368 | 16,766 | ||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 12,368 | 16,766 | ||
Fair Value, Measurements, Recurring | Commercial mortgage-backed securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 185,492 | 186,315 | ||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 185,492 | 186,315 | ||
Fair Value, Measurements, Recurring | Residential mortgage-backed securities | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 4,396 | |||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | |||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 4,396 | |||
Fair Value, Measurements, Recurring | Commercial collateralized mortgage obligations | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | |||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 193,597 | 199,496 | ||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | 193,597 | 199,496 | ||
Fair Value, Measurements, Recurring | Residential collateralized mortgage obligations | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Securities available for sale | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Changes in Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Loans at Fair Value | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | $ 18,571 | $ 26,611 |
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Purchases | 0 | 0 |
Settlements | (256) | (382) |
Balance at end of period | 18,387 | 25,934 |
Loans at Fair Value | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Loans at Fair Value | Other noninterest income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 72 | (295) |
MSRs | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 25,114 | 24,182 |
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 283 | 543 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 23,407 | 25,999 |
MSRs | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | (1,990) | 1,274 |
MSRs | Other noninterest income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities Available for Sale | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 39,361 | 42,015 |
Gain (loss) recognized in accumulated other comprehensive income | 694 | (727) |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Purchases | 0 | 259 |
Settlements | (1,748) | (1,586) |
Balance at end of period | 38,307 | 39,961 |
Securities Available for Sale | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities Available for Sale | Other noninterest income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities at Fair Value Through Income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 11,361 | 12,033 |
Gain (loss) recognized in accumulated other comprehensive income | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Purchases | 0 | 0 |
Settlements | 0 | 0 |
Balance at end of period | 11,510 | 11,723 |
Securities at Fair Value Through Income | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 0 | 0 |
Securities at Fair Value Through Income | Other noninterest income | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | $ 149 | $ (310) |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assumptions Used to Value Mortgage Servicing Rights (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Prepayment speed | 11.10% | 9.90% |
Discount rate | 10.36% | 10.42% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Difference Between Fair Value and Unpaid Principal Balance (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 45,495,000 | $ 51,494,000 |
Aggregate Unpaid Principal Balance | 44,811,000 | 51,067,000 |
Difference | 684,000 | 427,000 |
Nonaccrual mortgage loans held for sale recorded at fair value | 1,400,000 | 741,000 |
Loans for which the fair value had been elected that were designated as nonaccrual or past due 90 days or more | 0 | 0 |
Loans held for sale | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | 15,598,000 | 21,562,000 |
Aggregate Unpaid Principal Balance | 15,172,000 | 21,173,000 |
Difference | 426,000 | 389,000 |
Commercial real estate loans held for investment | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | 18,387,000 | 18,571,000 |
Aggregate Unpaid Principal Balance | 18,136,000 | 18,391,000 |
Difference | 251,000 | 180,000 |
Securities carried at fair value through income | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | 11,510,000 | 11,361,000 |
Aggregate Unpaid Principal Balance | 11,503,000 | 11,503,000 |
Difference | 7,000 | (142,000) |
US Government Agencies Debt Securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, 90 days or more past due | $ 1,000,000 | $ 582,000 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Changes in Fair Value of Assets Classified in the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Mortgage banking revenue | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Fair value option impact on noninterest income | $ 37 | $ (324) |
Other income | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Fair value option impact on noninterest income | 221 | (605) |
Noninterest income | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Fair value option impact on noninterest income | 258 | (929) |
Loans at fair value held for investment | Other income | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Fair value option impact on noninterest income | 72 | (295) |
Securities carried at fair value through income | Other income | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Fair value option impact on noninterest income | $ 149 | $ (310) |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities without readily determinable fair value | $ 42,300,000 | |
Impairment recorded on investments in equity securities that do not have readily determinable fair values | 0 | |
Liability to repurchase past due GNMA loans | 26,700,000 | $ 30,600,000 |
Fair value of impaired loans | 30,864,000 | 33,278,000 |
Real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of impaired loans | 14,968,000 | 16,666,000 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of impaired loans | 1,300,000 | 1,400,000 |
Foreclosed assets | 3,700,000 | $ 3,700,000 |
Residential real estate | Fair Value, Measurements, Nonrecurring | Level 3 | Real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Residential mortgage loans in the process of foreclosure | $ 2,400,000 | |
Minimum | Measurement Input, Credit Spread | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit spread, securities at fair value through income | 1.26% | |
Credit spread, loans held-for-investment | 2.90% | |
Maximum | Measurement Input, Credit Spread | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Credit spread, securities at fair value through income | 2.27% | |
Credit spread, loans held-for-investment | 4.13% |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments - Carrying Value and Estimated Fair Values of Financial Instruments Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | $ 18,941 | $ 19,136 |
Carrying Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 111,240 | 116,678 |
Carrying Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 19,033 | 19,169 |
Non-marketable equity securities held in other financial institutions | 42,314 | 42,149 |
Accrued interest and loan fees receivable | 15,872 | 16,454 |
Deposits | 3,898,248 | 3,783,138 |
FHLB advances and other borrowings | 335,053 | 445,224 |
Junior subordinated debentures | 9,651 | 9,644 |
Accrued interest payable | 3,041 | 2,679 |
Carrying Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, net | 3,784,378 | 3,736,331 |
Estimated Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 111,240 | 116,678 |
Estimated Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 18,941 | 19,136 |
Non-marketable equity securities held in other financial institutions | 42,314 | 42,149 |
Accrued interest and loan fees receivable | 15,872 | 16,454 |
Deposits | 3,710,982 | 3,537,283 |
FHLB advances and other borrowings | 338,518 | 444,286 |
Junior subordinated debentures | 10,721 | 10,723 |
Accrued interest payable | 3,041 | 2,679 |
Estimated Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans held for investment, net | $ 3,639,333 | $ 3,605,142 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Mar. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment credit, net of tax | $ 321 | $ 0 | |
Lease expense | $ 956 | ||
Deferred loss | 962 | ||
Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment credit, net of tax | 321 | $ (282) | |
ASU No. 2016-02 — Leases | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment credit, net of tax | $ 321 |
Leases - Balance Sheet Details
Leases - Balance Sheet Details and Components of Lease Expense (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease right of use assets (included in Accrued interest receivable and other assets) | $ 26,267 |
Operating lease liabilities (included in Accrued expenses and other liabilities) | 28,247 |
Finance lease liabilities (included in Accrued expenses and other liabilities) | 444 |
Lease expense: | |
Operating lease expense | 1,146 |
Other lease expense | 62 |
Total lease expense | $ 1,208 |
Weighted average remaining lease term (years) - operating leases | 9 years 10 months 14 days |
Weighted average discount rate - operating leases | 3.48% |
Right of use assets obtained in exchange for new operating lease liabilities | $ 940 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Year 1 | $ 4,799 |
Year 2 | 4,458 |
Year 3 | 3,893 |
Year 4 | 3,687 |
Year 5 | 3,279 |
Year 6 and thereafter | 13,845 |
Total lease payments | 33,961 |
Less: Imputed interest | 5,714 |
Total lease obligations | $ 28,247 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Related to Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 1,173 |
Mortgage Banking - Mortgage Ban
Mortgage Banking - Mortgage Banking Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Mortgage Banking [Abstract] | ||
Origination | $ 130 | $ 210 |
Gain on sale of loans held for sale | 1,097 | 2,024 |
Servicing | 1,699 | 1,837 |
Total gross mortgage revenue | 2,926 | 4,071 |
Mortgage derivatives gain (loss) | 210 | (539) |
MSR change due to payoffs and paydowns | (718) | (784) |
MSR and hedge fair value adjustment | 188 | (379) |
Gain on MSR sale | 0 | 25 |
Mortgage banking revenue | $ 2,606 | $ 2,394 |
Mortgage Banking - Activity in
Mortgage Banking - Activity in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance at beginning of period | $ 25,114 | $ 24,182 |
Origination of servicing rights | 283 | 543 |
Change in fair value, including amortization, net | (1,990) | 1,274 |
Balance at end of period | $ 23,407 | $ 25,999 |
Mortgage Banking - Narrative (D
Mortgage Banking - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Mortgage Banking [Abstract] | |||
Annual servicing fee income rate | 0.28% | ||
Mortgage loan servicing putback expenses | $ 0 | $ 0 | |
Reserve for mortgage loan servicing putback expenses | 196,000 | $ 196,000 | |
Liability to repurchase past due GNMA loans | $ 26,700,000 | $ 30,600,000 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) $ in Millions | Mar. 31, 2019USD ($)instrument | Dec. 31, 2018USD ($) |
Derivative [Line Items] | ||
Cash collateral on deposit | $ | $ 5 | $ 1.9 |
Interest Rate Swap | Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Number of instruments held | instrument | 2 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | $ 662,280 | $ 454,363 |
Fair Values | 711 | 565 |
Not Designated as Hedging Instrument | Interest Rate Swap | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 150,487 | 127,512 |
Fair Values | 4,354 | 2,302 |
Not Designated as Hedging Instrument | Interest Rate Swap | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 168,747 | 145,857 |
Fair Values | (4,901) | (2,625) |
Not Designated as Hedging Instrument | Forward Commitment to Purchase | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 290,000 | 140,000 |
Fair Values | 906 | 709 |
Not Designated as Hedging Instrument | Forward Commitment to Sell | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 28,150 | 24,750 |
Fair Values | (146) | (221) |
Not Designated as Hedging Instrument | Interest Rate Lock Commitments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 24,896 | 16,244 |
Fair Values | 498 | 400 |
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Swap | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 10,500 | 10,500 |
Fair Values | $ 58 | $ 152 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Weighted-average Rates Paid and Received (Details) - Interest Rate Swap | Mar. 31, 2019 |
Designated as Hedging Instrument | Interest Rate Paid | |
Derivative [Line Items] | |
Weighted-average rates | 4.81% |
Designated as Hedging Instrument | Interest Rate Received | |
Derivative [Line Items] | |
Weighted-average rates | 5.42% |
Not Designated as Hedging Instrument | Interest Rate Paid | Financial Institution | |
Derivative [Line Items] | |
Weighted-average rates | 5.02% |
Not Designated as Hedging Instrument | Interest Rate Paid | Customer | |
Derivative [Line Items] | |
Weighted-average rates | 4.80% |
Not Designated as Hedging Instrument | Interest Rate Received | Financial Institution | |
Derivative [Line Items] | |
Weighted-average rates | 4.72% |
Not Designated as Hedging Instrument | Interest Rate Received | Customer | |
Derivative [Line Items] | |
Weighted-average rates | 5.06% |
Derivative Financial Instrume_6
Derivative Financial Instruments - Gains and Losses Recognized on Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Mortgage banking revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized on derivatives not designated as hedging instruments | $ 1,311 | $ (1,661) |
Noninterest income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized on derivatives not designated as hedging instruments | $ (225) | $ 523 |
Stock and Incentive Compensat_3
Stock and Incentive Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Outstanding stock options term (does not exceed) | 20 years | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Shares surrendered to cover taxes owed upon the vesting of restricted stock awards (in shares) | 0 | 845 |
Unrecognized compensation cost | $ 4.9 | |
Unrecognized compensation cost weighted average period for recognition | 3 years 1 month 16 days | |
2012 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Maximum number of common stock available for issuance (in shares) | 987,324 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Vesting period from the date of grant or merger | 0 years | |
Minimum | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Service period | 1 year | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Vesting period from the date of grant or merger | 10 years | |
Maximum | Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Service period | 5 years |
Stock and Incentive Compensat_4
Stock and Incentive Compensation Plans - Share-based Compensation Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock compensation expense | $ 470 | $ 194 |
Related tax benefits recognized in net income | 99 | 41 |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock compensation expense | $ 470 | $ 194 |
Stock and Incentive Compensat_5
Stock and Incentive Compensation Plans - Time-vested Award Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Shares | ||
Nonvested shares, beginning balance (in shares) | 174,407 | 61,293 |
Granted (in shares) | 976 | 7,334 |
Vested (in shares) | (3,568) | (4,397) |
Forfeited (in shares) | (1,550) | 0 |
Nonvested shares, ending balance (in shares) | 170,265 | 64,230 |
Weighted Average Grant-Date Fair Value | ||
Nonvested shares, ending balance ($ per share) | $ 35.01 | $ 24.61 |
Granted ($ per share) | 35.91 | 25.41 |
Vested ($ per share) | 25.25 | 24.91 |
Forfeited ($ per share) | 23.64 | 0 |
Nonvested shares, beginning balance ($ per share) | $ 35.32 | $ 24.68 |
Stock and Incentive Compensat_6
Stock and Incentive Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | ||||
Outstanding, beginning of period (in shares) | 274,000 | 319,500 | 319,500 | |
Exercised (in shares) | (20,000) | |||
Outstanding, end of period (in shares) | 254,000 | 319,500 | 274,000 | 319,500 |
Exercisable (in shares) | 254,000 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period ($ per share) | $ 10.38 | $ 10.65 | $ 10.65 | |
Exercised ($ per share) | 8.25 | |||
Outstanding, end of period ($ per share) | 10.55 | $ 10.65 | $ 10.38 | $ 10.65 |
Exercisable, end ($ per share) | $ 10.55 | |||
Weighted average remaining contractual term (in years) | 6 years 6 months 21 days | 6 years 9 months 25 days | 6 years 9 months | 7 years 26 days |
Weighted average remaining contractual term, exercisable (in years) | 6 years 6 months 21 days | |||
Aggregate intrinsic value | $ 5,969 | $ 4,843 | $ 6,493 | $ 4,840 |
Aggregate intrinsic value, exercisable | $ 5,969 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Federal income taxes: | ||
Current | $ 3,167 | $ 2,175 |
Deferred | (336) | 501 |
State income taxes: | ||
Current | 268 | 76 |
Deferred | (10) | 32 |
Income tax expense (benefit) | $ 3,089 | $ 2,784 |
Effective income tax rate | 17.90% | 17.20% |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from accumulated other comprehensive income | $ (1,524) | $ 2,480 | |
Reclassification to retained earnings | $ 205,289 | $ 191,585 | |
Accounting Standards Update 2018-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Reclassification from accumulated other comprehensive income | $ 282 | ||
Reclassification to retained earnings | $ 282 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | $ 549,779 | $ 420,351 |
Net change | 4,004 | (4,348) |
Reclassification of tax effects related to the adoption of ASU 2018-02, current | (276) | |
Reclassification of tax effects related to the adoption of ASU 2018-02, deferred | 558 | |
Stockholders' equity, ending balance | 568,122 | 427,833 |
Unrealized Gains on AFS Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (2,601) | 1,280 |
Net change | 4,078 | (4,492) |
Reclassification of tax effects related to the adoption of ASU 2018-02, current | (293) | |
Reclassification of tax effects related to the adoption of ASU 2018-02, deferred | 569 | |
Stockholders' equity, ending balance | 1,477 | (2,936) |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 121 | 27 |
Net change | (74) | 144 |
Reclassification of tax effects related to the adoption of ASU 2018-02, current | 17 | |
Reclassification of tax effects related to the adoption of ASU 2018-02, deferred | (11) | |
Stockholders' equity, ending balance | 47 | 177 |
Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (2,480) | 1,307 |
Net change | 4,004 | (4,348) |
Stockholders' equity, ending balance | $ 1,524 | $ (2,759) |
Capital and Regulatory Matter_2
Capital and Regulatory Matters (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Origin Bancorp, Inc. | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 534,230 | $ 519,468 |
Actual, ratio | 12.05% | 11.94% |
Minimum capital required, amount | $ 310,382 | $ 304,431 |
Minimum capital required, ratio | 7.00% | 7.00% |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 543,555 | $ 528,786 |
Actual, ratio | 12.26% | 12.16% |
Minimum capital required, amount | $ 376,893 | $ 369,668 |
Minimum capital required, ratio | 8.50% | 8.50% |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 580,763 | $ 564,437 |
Actual, ratio | 13.10% | 12.98% |
Minimum capital required, amount | $ 465,572 | $ 456,647 |
Minimum capital required, ratio | 10.50% | 10.50% |
Leverage Ratio | ||
Actual, amount | $ 543,555 | $ 528,786 |
Actual, ratio | 11.23% | 11.21% |
Minimum capital required, amount | $ 193,656 | $ 188,711 |
Minimum capital required, ratio | 4.00% | 4.00% |
Origin Bank | Origin Bank | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 523,866 | $ 508,826 |
Actual, ratio | 11.85% | 11.73% |
Minimum capital required, amount | $ 309,522 | $ 303,621 |
Minimum capital required, ratio | 7.00% | 7.00% |
Well capitalized, amount | $ 287,413 | $ 281,934 |
Well capitalized, ratio | 6.50% | 6.50% |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 523,866 | $ 508,826 |
Actual, ratio | 11.85% | 11.73% |
Minimum capital required, amount | $ 375,848 | $ 368,683 |
Minimum capital required, ratio | 8.50% | 8.50% |
Well capitalized, amount | $ 353,739 | $ 346,996 |
Well capitalized, ratio | 8.00% | 8.00% |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 561,074 | $ 544,477 |
Actual, ratio | 12.69% | 12.55% |
Minimum capital required, amount | $ 464,282 | $ 455,430 |
Minimum capital required, ratio | 10.50% | 10.50% |
Well capitalized, amount | $ 442,174 | $ 433,743 |
Well capitalized, ratio | 10.00% | 10.00% |
Leverage Ratio | ||
Actual, amount | $ 523,866 | $ 508,826 |
Actual, ratio | 10.85% | 10.81% |
Minimum capital required, amount | $ 193,150 | $ 188,229 |
Minimum capital required, ratio | 4.00% | 4.00% |
Well capitalized, amount | $ 241,437 | $ 235,287 |
Well capitalized, ratio | 5.00% | 5.00% |
Aggregate dividends without prior regulatory approval | $ 61,000 |
Commitments and Contingencies -
Commitments and Contingencies - Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instrument | $ 1,219,539 | $ 1,178,735 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instrument | $ 50,781 | $ 46,860 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Credit card guarantees | $ 557 | $ 772 |
FHLB letters of credit | 187,200 | 172,000 |
Lending-related Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Reserve for lending related commitments | $ 1,600 | $ 1,400 |
Uncategorized Items - obnk-2019
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 282,000 |