Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38487 | |
Entity Registrant Name | Origin Bancorp, Inc. | |
Entity Incorporation, State or Country Code | LA | |
Entity Tax Identification Number | 72-1192928 | |
Entity Address, Address Line One | 500 South Service Road East | |
Entity Address, City or Town | Ruston | |
Entity Address, State or Province | LA | |
Entity Address, Postal Zip Code | 71270 | |
City Area Code | 318 | |
Local Phone Number | 255-2222 | |
Title of 12(b) Security | Common Stock, par value $5.00 per share | |
Trading Symbol | OBNK | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 23,488,884 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity CIK | 0001516912 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 64,330 | $ 60,544 |
Interest-bearing deposits in banks | 200,571 | 316,670 |
Total cash and cash equivalents | 264,901 | 377,214 |
Securities: | ||
Available for sale | 980,132 | 1,004,674 |
Held to maturity, net allowance for credit losses of $66 at both March 31, 2021, and December 31, 2020 (fair value of $40,800 and $41,205 at March 31, 2021, and December 31, 2020, respectively) | 37,983 | 38,128 |
Securities carried at fair value through income | 11,077 | 11,554 |
Total securities | 1,029,192 | 1,054,356 |
Non-marketable equity securities held in other financial institutions | 47,274 | 62,586 |
Loans held for sale ($82,706 and $136,026 at fair value at March 31, 2021, and December 31, 2020, respectively) | 144,950 | 191,512 |
Loans, net of allowance for credit losses of $85,136 and $86,670 at March 31, 2021, and December 31, 2020, respectively ($13,578 and $17,011 at fair value at March 31, 2021, and December 31, 2020, respectively) | 5,764,624 | 5,638,103 |
Premises and equipment, net | 81,064 | 81,763 |
Mortgage servicing rights | 17,552 | 13,660 |
Cash surrender value of bank-owned life insurance | 37,757 | 37,553 |
Goodwill and other intangible assets, net | 30,246 | 30,480 |
Accrued interest receivable and other assets | 145,615 | 141,041 |
Total assets | 7,563,175 | 7,628,268 |
Liabilities and Stockholders' Equity | ||
Noninterest-bearing deposits | 1,736,534 | 1,607,564 |
Interest-bearing deposits | 3,962,082 | 3,478,985 |
Time deposits | 647,578 | 664,766 |
Total deposits | 6,346,194 | 5,751,315 |
Federal Home Loan Bank ("FHLB") advances and other borrowings | 325,751 | 984,608 |
Subordinated debentures, net | 157,239 | 157,181 |
Accrued expenses and other liabilities | 77,636 | 88,014 |
Total liabilities | 6,906,820 | 6,981,118 |
Commitments and contingencies | 0 | 0 |
Stockholders' equity: | ||
Preferred stock, no par value, 2,000,000 shares authorized | 0 | 0 |
Common stock ($5.00 par value; 50,000,000 shares authorized; 23,488,884 and 23,506,312 shares issued at March 31, 2021, and December 31, 2020, respectively) | 117,444 | 117,532 |
Additional paid‑in capital | 236,934 | 237,341 |
Retained earnings | 289,792 | 266,628 |
Accumulated other comprehensive income | 12,185 | 25,649 |
Total stockholders' equity | 656,355 | 647,150 |
Total liabilities and stockholders' equity | $ 7,563,175 | $ 7,628,268 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Municipal securities | $ 66 | $ 66 |
Fair Value | 40,800 | 41,205 |
Loans held for sale | 82,706 | 136,026 |
Loans, allowance for credit losses | 85,136 | 86,670 |
Loans at fair value | $ 13,578 | $ 17,011 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 23,488,884 | 23,506,312 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest and dividend income | ||
Interest and fees on loans | $ 56,810 | $ 50,049 |
Investment securities-taxable | 3,300 | 2,712 |
Investment securities-nontaxable | 1,672 | 758 |
Interest and dividend income on assets held in other financial institutions | 345 | 1,497 |
Total interest and dividend income | 62,127 | 55,016 |
Interest expense | ||
Interest-bearing deposits | 3,789 | 10,250 |
FHLB advances and other borrowings | 1,269 | 1,351 |
Subordinated debentures | 1,830 | 605 |
Total interest expense | 6,888 | 12,206 |
Net interest income | 55,239 | 42,810 |
Provision for credit losses | 1,412 | 18,531 |
Net interest income after provision for credit losses | 53,827 | 24,279 |
Noninterest income | ||
Mortgage banking revenue | 4,577 | 2,769 |
Gain on sales of securities, net | 1,668 | 54 |
Loss on sales and disposals of other assets, net | (38) | (25) |
Limited partnership investment income (loss) | 1,772 | (429) |
Swap fee income | 348 | 676 |
Other fee income | 771 | 466 |
Other income | 919 | 1,626 |
Total noninterest income | 17,131 | 12,144 |
Noninterest expense | ||
Salaries and employee benefits | 22,325 | 21,988 |
Occupancy and equipment, net | 4,339 | 4,221 |
Data processing | 2,173 | 2,003 |
Electronic banking | 961 | 900 |
Communications | 415 | 477 |
Advertising and marketing | 680 | 711 |
Professional services | 973 | 1,171 |
Regulatory assessments | 1,170 | 615 |
Loan related expenses | 1,705 | 1,142 |
Office and operations | 1,454 | 1,441 |
Intangible asset amortization | 234 | 299 |
Franchise tax expense | 619 | 496 |
Other expenses | 2,388 | 633 |
Total noninterest expense | 39,436 | 36,097 |
Income before income taxes | 31,522 | 326 |
Income tax expense (benefit) | 6,009 | (427) |
Net income | $ 25,513 | $ 753 |
Basic earnings per common share (in dollars per share) | $ 1.09 | $ 0.03 |
Diluted earnings per common share (in dollars per share) | $ 1.08 | $ 0.03 |
Service charges and fees | ||
Noninterest income | ||
Revenue from contracts with customers | $ 3,343 | $ 3,320 |
Insurance commission and fee income | ||
Noninterest income | ||
Revenue from contracts with customers | $ 3,771 | $ 3,687 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 25,513 | $ 753 |
Securities available for sale and transferred securities: | ||
Net unrealized holding (loss) gain arising during the period | (15,852) | 12,771 |
Net losses realized as a yield adjustment in interest on investment securities | (3) | (3) |
Reclassification adjustment for net gain included in net income | (1,668) | (54) |
Change in the net unrealized gain on investment securities, before tax | (17,523) | 12,714 |
Income tax (benefit) expense related to net unrealized (loss) gain arising during the period | (3,680) | 2,670 |
Change in the net unrealized gain on investment securities, net of tax | (13,843) | 10,044 |
Cash flow hedges: | ||
Net unrealized gain (loss) arising during the period | 431 | (710) |
Reclassification adjustment for loss included in net income | (49) | (8) |
Change in the net unrealized gain (loss) on cash flow hedges, before tax | 480 | (702) |
Income tax expense (benefit) related to net unrealized gain (loss) on cash flow hedges | 101 | (147) |
Change in net unrealized position on cash flow hedges, net of tax | 379 | (555) |
Other comprehensive (loss) income, net of tax | (13,464) | 9,489 |
Comprehensive income | $ 12,049 | $ 10,242 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings | Retained EarningsAdjustment | Accumulated Other Comprehensive Income (loss) |
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2019 | 23,480,945 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ 599,262 | $ (760) | $ 117,405 | $ 235,623 | $ 239,901 | $ (760) | $ 6,333 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 753 | 753 | |||||
Other comprehensive income, net of tax | 9,489 | 9,489 | |||||
Recognition of stock compensation, net (in shares) | 25,871 | ||||||
Recognition of stock compensation, net | 784 | $ 129 | 655 | ||||
Dividends declared - common stock | (2,174) | (2,174) | |||||
Repurchase of common stock (in shares) | (30,868) | ||||||
Repurchase of common stock | (723) | $ (154) | (569) | ||||
Common shares outstanding, ending balance (in shares) at Mar. 31, 2020 | 23,475,948 | ||||||
Stockholders' equity, ending balance at Mar. 31, 2020 | 606,631 | $ 117,380 | 235,709 | 237,720 | 15,822 | ||
Common shares outstanding, beginning balance (in shares) at Dec. 31, 2020 | 23,506,312 | ||||||
Stockholders' equity, beginning balance at Dec. 31, 2020 | 647,150 | $ 117,532 | 237,341 | 266,628 | 25,649 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 25,513 | 25,513 | |||||
Other comprehensive income, net of tax | (13,464) | (13,464) | |||||
Recognition of stock compensation, net (in shares) | 20,140 | ||||||
Recognition of stock compensation, net | 761 | $ 100 | 661 | ||||
Dividends declared - common stock | $ (2,349) | (2,349) | |||||
Repurchase of common stock (in shares) | (37,568) | (37,568) | |||||
Repurchase of common stock | $ (1,256) | $ (188) | (1,068) | ||||
Common shares outstanding, ending balance (in shares) at Mar. 31, 2021 | 23,488,884 | ||||||
Stockholders' equity, ending balance at Mar. 31, 2021 | $ 656,355 | $ 117,444 | $ 236,934 | $ 289,792 | $ 12,185 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||
Common stock dividends declared (in dollars per share) | $ 0.10 | $ 0.0925 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 25,513 | $ 753 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for credit losses | 1,412 | 18,531 |
Depreciation and amortization | 1,695 | 1,735 |
Net amortization on securities | 1,748 | 552 |
Amortization of investments in tax credit funds | 373 | 368 |
Net realized gain on securities sold | (1,668) | (54) |
Deferred income tax (benefit) expense | (991) | (4,122) |
Stock-based compensation expense | 614 | 537 |
Originations of mortgage loans held for sale | (137,644) | (97,987) |
Proceeds from mortgage loans held for sale | 184,283 | 87,528 |
Gain on mortgage loans held for sale, including origination of servicing rights | (6,940) | (1,873) |
Mortgage servicing rights valuation adjustment | (1,949) | 5,228 |
Net loss on disposals of premises and equipment | 0 | 1 |
Increase in the cash surrender value of life insurance | (204) | (554) |
Net losses on sales and write downs of other real estate owned | 38 | 24 |
Other operating activities, net | 4,786 | (2,939) |
Net cash provided by operating activities | 71,066 | 7,728 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (71,717) | (131,064) |
Maturities, paydowns and calls of securities available for sale | 38,028 | 26,440 |
Proceeds from sales of securities available for sale | 40,493 | 22,375 |
Maturities, paydowns and calls of securities held to maturity | 142 | 138 |
Net sales (purchases) of non-marketable equity securities held in other financial institutions | 15,353 | (12,306) |
Originations of mortgage warehouse loans | (5,050,426) | (1,259,966) |
Proceeds from pay-offs of mortgage warehouse loans | 5,044,082 | 1,097,367 |
Net increase in loans, excluding mortgage warehouse and loans held for sale | (124,129) | (174,836) |
Bank-owned life insurance payout | 0 | 1,641 |
Capital calls on limited partnership investments | (225) | (150) |
Purchase of low income housing tax credit investments | (300) | 0 |
Purchases of premises and equipment | (813) | (1,173) |
Proceeds from sales of premises and equipment | 51 | 0 |
Proceeds from sales of other real estate owned | 269 | 20 |
Net cash used in investing activities | (109,192) | (431,514) |
Cash flows from financing activities: | ||
Net increase in deposits | 594,879 | 327,634 |
Repayments on long-term FHLB advances | (13,529) | (211) |
Proceeds from short-term FHLB advances | 6,053,425 | 400,000 |
Repayments on short-term FHLB advances | (6,703,425) | (100,000) |
Issuance of subordinated debentures, net | 0 | 68,847 |
Net decrease in securities sold under agreements to repurchase | (2,087) | (1,184) |
Dividends paid | (2,341) | (2,164) |
Cash received from exercise of stock options | 147 | 248 |
Common stock repurchased | (1,256) | (723) |
Net cash (used in) provided by financing activities | (74,187) | 692,447 |
Net (decrease) increase in cash and cash equivalents | (112,313) | 268,661 |
Cash and cash equivalents at beginning of period | 377,214 | 291,518 |
Cash and cash equivalents at end of period | 264,901 | 560,179 |
Interest paid | 6,999 | 11,965 |
Income taxes paid | 4,040 | 0 |
Significant non-cash transactions: | ||
Unsettled liability for investment purchases recorded at trade date | 1,376 | 8,760 |
Real estate acquired in settlement of loans | $ 2,575 | $ 588 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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 44 banking centers located in Dallas/Fort Worth and Houston, Texas, North Louisiana and in Mississippi. The Company principally operates in one business segment, community banking. Basis of Presentation . The 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 Agency, and Reeves, Coon and Funderburg ("RCF"). All significant intercompany balances and transactions have been eliminated in consolidation. The Company's accounting and financial reporting policies conform, in all material respects, to generally accepted accounting principles in the United States ("U.S. GAAP") and to general practices within the financial services industry. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The 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, 2020, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company's financial position and results of operations for the periods presented. These 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 consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2020, included in the Company's annual report on Form 10-K ("2020 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 period 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. Use of Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information that affect the amounts reported in the financial statements and disclosures provided, including the accompanying notes, and actual results could differ. Material estimates that are particularly susceptible to change include the allowance for credit losses for loans and available for sale securities; 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. Effect of Recently Adopted Accounting Standards ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies the accounting for income taxes by eliminating some exceptions to the general approach in Accounting Standards Codification (ASC) 740, Income Taxes. It also clarifies certain aspects of the existing guidance to promote more consistent application, among other things. The amendments were implemented effective January 1, 2021. Implementation of this ASU did not materially impact the consolidated financial statements or disclosures. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 2 - Earnings Per Share Basic and diluted earnings per common share 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. Diluted earnings per share includes the dilutive effect of additional potential common shares issuable under stock options and restricted stock awards. Information regarding the Company's basic and diluted earnings per common share is presented in the following table: (Dollars in thousands, except per share amounts) Three Months Ended March 31, Numerator: 2021 2020 Net income (basic and diluted) $ 25,513 $ 753 Denominator: Weighted average common shares outstanding 23,393,356 23,353,601 Dilutive effect of stock-based awards 197,074 176,611 Weighted average diluted common shares outstanding 23,590,430 23,530,212 Basic earnings per common share $ 1.09 $ 0.03 Diluted earnings per common share 1.08 0.03 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2021 | |
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 the allowance for credit losses and 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) March 31, 2021 Amortized Gross Gross Fair Allowance for Credit Losses Net Carrying Amount Available for sale: State and municipal securities $ 401,450 $ 13,364 $ (5,641) $ 409,173 $ — $ 409,173 Corporate bonds 68,293 2,056 (386) 69,963 — 69,963 U.S. government and agency securities 5,811 3 (177) 5,637 — 5,637 Commercial mortgage-backed securities 9,088 232 (357) 8,963 — 8,963 Residential mortgage-backed securities 200,265 5,738 (943) 205,060 — 205,060 Residential collateralized mortgage obligations 193,730 1,491 (1,415) 193,806 — 193,806 Asset-backed securities 85,938 1,593 (1) 87,530 — 87,530 Total $ 964,575 $ 24,477 $ (8,920) $ 980,132 $ — $ 980,132 Held to maturity: State and municipal securities $ 38,049 $ 2,751 $ — $ 40,800 $ (66) $ 37,983 Securities carried at fair value through income: State and municipal securities (1) $ 10,618 $ — $ — $ 11,077 $ — $ 11,077 December 31, 2020 Available for sale: State and municipal securities $ 420,559 $ 21,884 $ (258) $ 442,185 $ — $ 442,185 Corporate bonds 64,313 1,762 (137) 65,938 — 65,938 U.S. government and agency securities 851 3 (5) 849 — 849 Commercial mortgage-backed securities 10,814 266 — 11,080 — 11,080 Residential mortgage-backed securities 207,742 7,441 (232) 214,951 — 214,951 Residential collateralized mortgage obligations 193,865 1,739 (261) 195,343 — 195,343 Asset-backed securities 73,451 877 — 74,328 — 74,328 Total $ 971,595 $ 33,972 $ (893) $ 1,004,674 $ — $ 1,004,674 Held to maturity: State and municipal securities $ 38,194 $ 3,011 $ — $ 41,205 $ (66) $ 38,128 Securities carried at fair value through income: State and municipal securities (1) $ 10,618 $ — $ — $ 11,554 $ — $ 11,554 ____________________________ (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 consolidated statements of income. See Note 5 - Fair Value of Financial Instruments for more information. Securities with unrealized losses at March 31, 2021, and December 31, 2020, 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, 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for sale: State and municipal securities $ 147,815 $ (5,601) $ 1,520 $ (40) $ 149,335 $ (5,641) Corporate bonds 24,249 (386) — — 24,249 (386) U.S. government and agency securities 4,851 (173) 523 (4) 5,374 (177) Commercial mortgage-backed securities 6,475 (357) — — 6,475 (357) Residential mortgage-backed securities 54,673 (943) — — 54,673 (943) Residential collateralized mortgage obligations 90,832 (1,415) — — 90,832 (1,415) Asset-backed securities 6,868 (1) — — 6,868 (1) Total $ 335,763 $ (8,876) $ 2,043 $ (44) $ 337,806 $ (8,920) Held to maturity: State and municipal securities $ — $ — $ — $ — $ — $ — December 31, 2020 Available for sale: State and municipal securities $ 21,979 $ (258) $ — $ — $ 21,979 $ (258) Corporate bonds 30,513 (137) — — 30,513 (137) U.S. government and agency securities — — 568 (5) 568 (5) Residential mortgage-backed securities 23,178 (232) — — 23,178 (232) Residential collateralized mortgage obligations 43,911 (261) — — 43,911 (261) Total $ 119,581 $ (888) $ 568 $ (5) $ 120,149 $ (893) Held to maturity: State and municipal securities $ — $ — $ — $ — $ — $ — Management evaluates available for sale debt securities in unrealized loss positions to determine whether the impairment is due to credit-related factors or noncredit-related factors. Consideration is given to (1) the extent to which the fair value is less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the security for a period of time sufficient to allow for any anticipated recovery in fair value. At March 31, 2021, the Company had 134 available for sale debt securities in an unrealized loss position without an allowance for credit losses. Management does not have the intent to sell any of these securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of cost. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Accordingly, at March 31, 2021, management believes that the unrealized losses detailed in the previous table are due to noncredit-related factors, including changes in interest rates and other market conditions, and therefore no losses have been recognized in the Company’s consolidated statements of income. The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities. (Dollars in thousands) Municipal Securities Allowance for credit losses: Balance at January 1, 2021 $ 66 Credit loss expense — Balance at March 31, 2021 $ 66 Balance at January 1, 2020 $ — Impact of adopting ASC 326 96 Credit loss expense — Balance at March 31, 2020 $ 96 Accrued interest of $5.6 million and $2.7 million was not included in the calculation of the allowance at March 31, 2021, or March 31, 2020, respectively. There were no past due held-to-maturity securities or held-to-maturity securities in nonaccrual status at March 31, 2021, or December 31, 2020. Proceeds from sales and calls, and related gross gains and losses of securities available for sale, are shown below. Three Months Ended March 31, (Dollars in thousands) 2021 2020 Proceeds from sales $ 40,493 $ 22,375 Gross realized gains 1,700 103 Gross realized losses (32) (49) The following table presents the amortized cost and fair value of securities available for sale and held to maturity at March 31, 2021, grouped by contractual maturity. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities, collateralized mortgage obligations and asset-backed securities will differ from contractual maturities as a result of prepayments made on the underlying loans. (Dollars in thousands) Held to Maturity Available for Sale March 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 12,857 $ 12,862 $ 4,725 $ 4,772 Due after one year through five years — — 52,044 56,192 Due after five years through ten years 25,192 27,938 111,175 113,565 Due after ten years — — 307,610 310,244 Commercial mortgage-backed securities — — 9,088 8,963 Residential mortgage-backed securities — — 200,265 205,060 Residential collateralized mortgage obligations — — 193,730 193,806 Asset-backed securities — — 85,938 87,530 Total $ 38,049 $ 40,800 $ 964,575 $ 980,132 The following table presents carrying amounts of securities pledged as collateral for deposits and repurchase agreements for the period ends presented. (Dollars in thousands) March 31, 2021 December 31, 2020 Carrying value of securities pledged to secure public deposits $ 232,179 $ 289,537 Carrying value of securities pledged to repurchase agreements 9,949 10,982 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Loans | Note 4 - Loans Loans consist of the following: (Dollars in thousands) March 31, 2021 December 31, 2020 Loans held for sale $ 144,950 $ 191,512 LHFI: Loans secured by real estate: Commercial real estate $ 1,441,071 $ 1,370,928 Construction/land/land development 548,236 531,860 Residential real estate 904,753 885,120 Total real estate 2,894,060 2,787,908 Commercial and industrial (1) 1,834,498 1,817,862 Mortgage warehouse lines of credit 1,090,347 1,084,001 Consumer 17,277 17,991 Total loans accounted for at amortized cost 5,836,182 5,707,762 Loans accounted for at fair value 13,578 17,011 Total LHFI (2) 5,849,760 5,724,773 Less: Allowance for loan losses 85,136 86,670 LHFI, net $ 5,764,624 $ 5,638,103 ____________________________ (1) Includes $584.1 million and $546.5 million of PPP loans at March 31, 2021 and December 31, 2020, respectively. (2) Includes net deferred loan fees of $15.9 million and $13.7 million at March 31, 2021, and December 31, 2020, respectively. Included in total loans held for investment ("LHFI") were $13.6 million and $17.0 million of commercial real estate loans for which the fair value option was elected at March 31, 2021 and December 31, 2020, 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. The Company has been a participating lender in the Paycheck Protection Program ("PPP"). At March 31, 2021, there were approximately $584.1 million in PPP loans outstanding included in the Company’s commercial and industrial loan portfolio, including $11.5 million in net deferred loan fees. PPP loans have a maximum maturity of two years and earn interest at 1%. PPP loans are fully guaranteed by the U.S. government and can be forgiven by the SBA if the borrower uses the proceeds to pay specified expenses. The Company believes that the majority of its PPP loans will ultimately be forgiven by the SBA in accordance with the terms of the program. 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 (defined as substandard, doubtful and loss), 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. In connection with the review of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. The list of loans to be reviewed for possible individual evaluation consists of nonaccrual commercial loans over $100,000 with direct exposure, unsecured loans over 90 days past due, commercial loans classified substandard or worse over $100,000 with direct exposure, troubled debt restructurings ("TDRs"), consumer loans greater than $100,000 with a FICO score under 625, loans greater than $100,000 in which the borrower has filed bankruptcy, and all loans 180 days or more past due. Loans under $50,000 will be evaluated collectively in designated pools unless a loss exposure has been identified. Some additional risk elements considered by loan type include: • for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; • for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; • for residential mortgage loans, the borrower's ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral; and • for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower's business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral. The following table reflects recorded investments in loans by credit quality indicator and origination year at March 31, 2021, excluding loans held for sale and loans accounted for at fair value. The Company had an immaterial amount of revolving loans converted to term loans at March 31, 2021. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: (1) Pass $ 130,211 $ 394,179 $ 290,815 $ 289,673 $ 148,317 $ 124,443 $ 21,263 $ 1,398,901 Special mention 4,383 — — 1,154 20,707 — 2,110 28,354 Classified 1,904 3,473 1,587 2,782 1,427 2,529 114 13,816 Total commercial real estate loans $ 136,498 $ 397,652 $ 292,402 $ 293,609 $ 170,451 $ 126,972 $ 23,487 $ 1,441,071 Current period gross charge-offs $ — $ — $ — $ — $ 2 $ 26 $ — $ 28 Current period gross recoveries — — — — — 3 — 3 Current period net charge-offs (recoveries) $ — $ — $ — $ — $ 2 $ 23 $ — $ 25 (1) Excludes $13.6 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. Construction/land/land development: Pass $ 40,706 $ 193,152 $ 142,872 $ 119,935 $ 12,716 $ 2,505 $ 17,490 $ 529,376 Special mention — — 10,242 135 1,003 — — 11,380 Classified 306 317 1,079 716 1,508 291 3,263 7,480 Total construction/land/land development loans $ 41,012 $ 193,469 $ 154,193 $ 120,786 $ 15,227 $ 2,796 $ 20,753 $ 548,236 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — — — — Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 53,633 $ 354,359 $ 118,406 $ 114,721 $ 101,869 $ 89,887 $ 52,920 $ 885,795 Special mention 1,447 185 — — 801 196 — 2,629 Classified 94 1,658 2,354 2,955 2,214 6,826 228 16,329 Total residential real estate loans $ 55,174 $ 356,202 $ 120,760 $ 117,676 $ 104,884 $ 96,909 $ 53,148 $ 904,753 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — 9 — 9 Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ (9) $ — $ (9) Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial: Pass $ 254,777 $ 700,996 $ 137,792 $ 103,342 $ 22,396 $ 33,753 $ 471,812 $ 1,724,868 Special mention 217 4,631 2,275 25,902 408 14,458 4,125 52,016 Classified 4,474 1,228 11,786 5,753 4,942 10,198 19,233 57,614 Total commercial and industrial loans $ 259,468 $ 706,855 $ 151,853 $ 134,997 $ 27,746 $ 58,409 $ 495,170 $ 1,834,498 Current period gross charge-offs $ — $ 4 $ 54 $ — $ 362 $ 1,282 $ 1,253 $ 2,955 Current period gross recoveries — — 13 — 11 76 8 108 Current period net charge-offs (recoveries) $ — $ 4 $ 41 $ — $ 351 $ 1,206 $ 1,245 $ 2,847 Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 1,090,347 $ 1,090,347 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — — — — Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 1,858 $ 5,477 $ 2,656 $ 1,276 $ 154 $ 148 $ 5,652 $ 17,221 Classified — 28 9 1 — 5 13 56 Total consumer loans $ 1,858 $ 5,505 $ 2,665 $ 1,277 $ 154 $ 153 $ 5,665 $ 17,277 Current period gross charge-offs $ — $ — $ 22 $ 2 $ — $ 6 $ 14 $ 44 Current period gross recoveries — — — — — 13 — 13 Current period net charge-offs (recoveries) $ — $ — $ 22 $ 2 $ — $ (7) $ 14 $ 31 The following table reflects recorded investments in loans by credit quality indicator and origination year at December 31, 2020, excluding loans held for sale and loans accounted for at fair value. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2020. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: (1) Pass $ 393,317 $ 290,394 $ 312,051 $ 154,445 $ 46,132 $ 106,994 $ 18,419 $ 1,321,752 Special mention 824 113 2,410 20,691 — 1,656 2,145 27,839 Classified 2,806 1,678 6,704 6,586 1,476 1,093 994 21,337 Total commercial real estate loans $ 396,947 $ 292,185 $ 321,165 $ 181,722 $ 47,608 $ 109,743 $ 21,558 $ 1,370,928 Current period gross charge-offs $ — $ — $ — $ 3,622 $ 199 $ 1,103 $ — $ 4,924 Current period gross recoveries — — — — — 19 — 19 Current period net charge-offs $ — $ — $ — $ 3,622 $ 199 $ 1,084 $ — $ 4,905 (1) Excludes $17.0 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Construction/land/land development: Pass $ 189,311 $ 150,281 $ 138,000 $ 12,907 $ 1,812 $ 1,157 $ 18,892 $ 512,360 Special mention 323 10,421 135 1,003 — — — 11,882 Classified — 1,811 726 1,507 143 168 3,263 7,618 Total construction/land/land development loans $ 189,634 $ 162,513 $ 138,861 $ 15,417 $ 1,955 $ 1,325 $ 22,155 $ 531,860 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — 1 — 1 Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ (1) $ — $ (1) Residential real estate: Pass $ 367,652 $ 143,368 $ 103,450 $ 102,272 $ 41,522 $ 50,094 $ 53,854 $ 862,212 Special mention 188 — 29 1,875 9,287 803 — 12,182 Classified 1,857 2,403 2,982 511 1,344 1,533 96 10,726 Total residential real estate loans $ 369,697 $ 145,771 $ 106,461 $ 104,658 $ 52,153 $ 52,430 $ 53,950 $ 885,120 Current period gross charge-offs $ 94 $ 271 $ — $ 283 $ — $ 44 $ — $ 692 Current period gross recoveries — — — — — 202 — 202 Current period net charge-offs (recoveries) $ 94 $ 271 $ — $ 283 $ — $ (158) $ — $ 490 Commercial and industrial: Pass $ 851,780 $ 153,722 $ 110,092 $ 29,413 $ 9,927 $ 26,964 $ 511,220 $ 1,693,118 Special mention 4,860 2,059 26,438 423 — 14,843 8,077 56,700 Classified 5,436 12,250 5,859 5,450 5,950 6,707 26,392 68,044 Total commercial and industrial loans $ 862,076 $ 168,031 $ 142,389 $ 35,286 $ 15,877 $ 48,514 $ 545,689 $ 1,817,862 Current period gross charge-offs $ 189 $ 204 $ 87 $ 121 $ 3,228 $ 469 $ 2,404 $ 6,702 Current period gross recoveries — 42 20 81 185 112 582 1,022 Current period net charge-offs $ 189 $ 162 $ 67 $ 40 $ 3,043 $ 357 $ 1,822 $ 5,680 Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 1,084,001 $ 1,084,001 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — — — — Current period net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 6,702 $ 3,318 $ 1,578 $ 203 $ 116 $ 83 $ 5,935 $ 17,935 Classified 28 8 — — 6 1 13 56 Total consumer loans $ 6,730 $ 3,326 $ 1,578 $ 203 $ 122 $ 84 $ 5,948 $ 17,991 Current period gross charge-offs $ — $ 39 $ 23 $ 8 $ — $ 4 $ 2 $ 76 Current period gross recoveries — — 1 7 5 7 4 24 Current period net charge-offs (recoveries) $ — $ 39 $ 22 $ 1 $ (5) $ (3) $ (2) $ 52 The following tables present the Company's loan portfolio aging analysis at the dates indicated: March 31, 2021 (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 (1) $ 1,055 $ — $ 571 $ 1,626 $ 1,453,023 $ 1,454,649 $ — Construction/land/land development 257 253 1,832 2,342 545,894 548,236 — Residential real estate 2,287 4,361 3,116 9,764 894,989 904,753 — Total real estate 3,599 4,614 5,519 13,732 2,893,906 2,907,638 — Commercial and industrial 791 165 11,825 12,781 1,821,717 1,834,498 — Mortgage warehouse lines of credit — — — — 1,090,347 1,090,347 — Consumer 58 1 2 61 17,216 17,277 — Total LHFI $ 4,448 $ 4,780 $ 17,346 $ 26,574 $ 5,823,186 $ 5,849,760 $ — ____________________________ (1) Includes $13.6 million of commercial real estate loans at fair value December 31, 2020 (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 (1) $ 1,072 $ — $ 3,172 $ 4,244 $ 1,383,695 $ 1,387,939 $ — Construction/land/land development 369 1 2,328 2,698 529,162 531,860 — Residential real estate 3,774 134 364 4,272 880,848 885,120 — Total real estate 5,215 135 5,864 11,214 2,793,705 2,804,919 — Commercial and industrial 703 1,097 12,625 14,425 1,803,437 1,817,862 — Mortgage warehouse lines of credit — — — — 1,084,001 1,084,001 — Consumer 113 9 2 124 17,867 17,991 — Total LHFI $ 6,031 $ 1,241 $ 18,491 $ 25,763 $ 5,699,010 $ 5,724,773 $ — ____________________________ (1) Includes $17.0 million of commercial real estate loans at fair value The following tables detail activity in the allowance for loan credit losses by portfolio segment. Accrued interest of $20.2 million and $12.6 million was not included in the book value for the purposes of calculating the allowance at March 31, 2021 and March 31, 2020, respectively. 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, 2021 (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Benefit) (1) Ending Balance Loans secured by real estate: Commercial real estate $ 15,430 $ 28 $ 3 $ 2,992 $ 18,397 Construction/land/land development 8,191 — — (802) 7,389 Residential real estate 9,418 — 9 (1,133) 8,294 Commercial and industrial 51,857 2,955 108 332 49,342 Mortgage warehouse lines of credit 856 — — 67 923 Consumer 918 44 13 (96) 791 Total $ 86,670 $ 3,027 $ 133 $ 1,360 $ 85,136 ____________________________ (1) The $1.4 million provision for credit losses on the consolidated statements of income includes a $1.4 million net loan loss provision, and a $52,000 provision for off-balance sheet commitments for the three months ended March 31, 2021. Three Months Ended March 31, 2020 (Dollars in thousands) Beginning Balance Impact of Adopting ASC 326 Charge-offs Recoveries Provision (1) Ending Balance Loans secured by real estate: Commercial real estate $ 10,013 $ (5,052) $ 172 $ 2 $ 4,463 $ 9,254 Construction/land/land development 3,711 1,141 — — 202 5,054 Residential real estate 6,332 (2,526) 49 149 589 4,495 Commercial and industrial 16,960 7,296 1,180 169 12,578 35,823 Mortgage warehouse lines of credit 262 29 — — 488 779 Consumer 242 360 24 4 76 658 Total $ 37,520 $ 1,248 $ 1,425 $ 324 $ 18,396 $ 56,063 ____________________________ (1) The $18.5 million provision for credit losses on the consolidated statements of income includes a $18.4 million net loan loss provision and a $135,000 provision for off-balance sheet commitments for the three months ended March 31, 2020. The decrease in provision expense compared to the quarter ended March 31, 2020, was primarily due to improvement in forecasted economic conditions during the quarter ended March 31, 2021, as compared to forecasted worsening economic conditions during the quarter ended March 31, 2020. The Company's credit quality profile in relation to the allowance for loan credit losses drove a decline of $1.6 million in the collective reserve during the three months ended March 31, 2021, of which a $1.1 million decrease was related to qualitative factor changes across the Company’s risk pools for the three months ended March 31, 2021. Six commercial and industrial loans, reflecting four loan relationships, were written down during the quarter ended March 31, 2021, totaling $2.8 million. The provision for loan credit losses for the first quarter of 2020 was driven by a significant increase in uncertainty related to the economic impact of the current COVID-19 pandemic. Based upon the requirement of CECL, economic forecasts are essential for estimating the life of loan losses. The increased risk, as reflected in current and forecast adjustments, resulted in approximately $11.2 million in provision expense across the Company’s risk pools. An additional $6.0 million in provision expense was due to the current and forecast effects of individually evaluated loans. The provision for commercial real estate loans includes approximately $3.0 million in increased credit allowances related to individually evaluated loans. The provision for commercial and industrial loans includes $5.4 million related to current and forecast factors as well as approximately $3.0 million related to individually evaluated loans. The only significant charge-off in commercial and industrial loans during the first quarter of 2020 was for $732,000 on an operating loan secured by equipment. The following tables show the recorded investment in loans by loss estimation methodology at March 31, 2021, and December 31, 2020. March 31, 2021 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate (1) $ 1,438,054 $ 571 $ 2,446 $ 1,441,071 Construction/land/land development 545,796 2,112 328 548,236 Residential real estate 894,416 8,482 1,855 904,753 Commercial and industrial 1,814,453 9,388 10,657 1,834,498 Mortgage warehouse lines of credit 1,090,347 — — 1,090,347 Consumer 17,275 2 — 17,277 Total $ 5,800,341 $ 20,555 $ 15,286 $ 5,836,182 ____________________________ (1) Excludes $13.6 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. December 31, 2020 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate (1) $ 1,365,284 $ 3,173 $ 2,471 $ 1,370,928 Construction/land/land development 528,894 2,621 345 531,860 Residential real estate 879,015 2,009 4,096 885,120 Commercial and industrial 1,804,049 3,152 10,661 1,817,862 Mortgage warehouse lines of credit 1,084,001 — — 1,084,001 Consumer 17,991 — — 17,991 Total $ 5,679,234 $ 10,955 $ 17,573 $ 5,707,762 ____________________________ (1) Excludes $17.0 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. The following tables show the allowance for loan credit losses by loss estimation methodology at March 31, 2021, and December 31, 2020. March 31, 2021 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate $ 18,388 $ — $ 9 $ 18,397 Construction/land/land development 7,258 131 — 7,389 Residential real estate 7,992 — 302 8,294 Commercial and industrial 41,488 3,201 4,653 49,342 Mortgage warehouse lines of credit 923 — — 923 Consumer 789 2 — 791 Total $ 76,838 $ 3,334 $ 4,964 $ 85,136 December 31, 2020 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate $ 14,896 $ 525 $ 9 $ 15,430 Construction/land/land development 8,062 128 1 8,191 Residential real estate 8,983 — 435 9,418 Commercial and industrial 44,714 1,707 5,436 51,857 Mortgage warehouse lines of credit 856 — — 856 Consumer 918 — — 918 Total $ 78,429 $ 2,360 $ 5,881 $ 86,670 Note that the Company is not using the collateral maintenance agreement practical expedient. All fair value of collateral is real estate related. Collateral-dependent loans consist primarily of commercial real estate and commercial and industrial loans. These loans are individually evaluated when foreclosure is probable or when the repayment of the loan is expected to be provided substantially through the operation or sale of the underlying collateral. Loan balances are charged down to the underlying collateral value when they are deemed uncollectible. Nonaccrual LHFI were as follows: Nonaccrual With No Nonaccrual (Dollars in thousands) Loans secured by real estate: March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Commercial real estate $ 1,012 $ 1,053 $ 1,085 $ 3,704 Construction/land/land development 955 1,319 2,431 2,962 Residential real estate 8,901 2,436 10,692 6,530 Total real estate 10,868 4,808 14,208 13,196 Commercial and industrial 76 82 19,094 12,897 Consumer — — 56 56 Total nonaccrual loans $ 10,944 $ 4,890 $ 33,358 $ 26,149 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. At March 31, 2021, the Company had no funding commitments for which the terms have been modified in TDRs. For the three months ended March 31, 2021 and 2020, gross interest income that would have been recorded had the nonaccruing loans been current in accordance with their original terms was $341,000 and $354,000, respectively. No interest income was recorded on these loans while they were considered nonaccrual during the three months ended March 31, 2021 and 2020. The Company elects the fair value option for recording residential mortgage loans held for sale, as well as certain commercial real estate loans in accordance with U.S. GAAP. The Company had $963,000 of nonaccrual mortgage loans held for sale that were recorded using the fair value option election at March 31, 2021, compared to $681,000 at December 31, 2020. There were no nonaccrual LHFI that were recorded using the fair value option election at March 31, 2021, or December 31, 2020. Certain borrowers are currently unable to meet their contractual payment obligations because of the adverse effects of COVID-19. To help mitigate these effects, loan customers may apply for a deferral of payments, or portions thereof, for up to 90 days. The CARES Act and related guidance from the federal banking agencies provide financial institutions the option to temporarily suspend requirements under GAAP related to classification of certain loan modifications as TDRs to account for the current and anticipated effects of COVID-19. The CARES Act, as amended by the Consolidated Appropriations Act, 2021, specified that COVID-19 related loan modifications executed between March 1, 2020 and the earlier of (i) 60 days after the date of termination of the national emergency declared by the President and (ii) January 1, 2022, on loans that were current as of December 31, 2019 are not TDRs. Additionally, under guidance from the federal banking agencies, other short-term modifications made on a good faith basis in response to COVID-19 to borrowers that were current prior to any relief are not TDRs under ASC Subtopic 310-40, “Troubled Debt Restructuring by Creditors.” These modifications include short-term (e.g., up to six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant. At March 31, 2021, the Company had 24 loans totaling $5.3 million under COVID-19 related forbearance agreements that were not treated as TDRs pursuant to the CARES Act and interagency guidance compared to 49 loans totaling $97.7 million at December 31, 2020. Loans classified as TDRs, excluding the impact of forbearances granted due to COVID-19, were as follows: (Dollars in thousands) March 31, 2021 December 31, 2020 TDRs Nonaccrual TDRs $ 5,515 $ 5,671 Performing TDRs 3,237 3,314 Total $ 8,752 $ 8,985 There were no loans classified as TDR's during the three months ended March 31, 2021. The tables below summarize loans classified as TDR's by loan and concession type during the three months ended March 31, 2020. Three Months Ended March 31, 2020 (Dollars in thousands) Number of Loans Restructured Pre-Modification Recorded Balance Term Concessions Interest Rate Concessions Combination of Term and Rate Concessions Total Modifications Commercial and industrial 2 $ 128 $ 127 $ — $ — $ 127 Total 2 $ 128 $ 127 $ — $ — $ 127 During the three months ended March 31, 2021, no loans defaulted after having been modified as a TDR within the previous 12 months. During the three months ended March 31, 2020, two loans with a combined outstanding principal balance of $2.3 million 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, 2020, did not significantly impact the Company's determination of the allowance for loan credit 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 credit losses continues to be reassessed on the basis of an individual evaluation of each loan. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 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, 2021, and December 31, 2020, 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 2021 or 2020. March 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 367,698 $ 41,475 $ 409,173 Corporate bonds — 69,963 — 69,963 U.S. government agency securities — 5,637 — 5,637 Commercial mortgage-backed securities — 8,963 — 8,963 Residential mortgage-backed securities — 205,060 — 205,060 Residential collateralized mortgage obligations — 193,806 — 193,806 Asset-backed securities — 87,530 — 87,530 Securities available for sale — 938,657 41,475 980,132 Securities carried at fair value through income — — 11,077 11,077 Loans held for sale — 82,706 — 82,706 Loans at fair value — — 13,578 13,578 Mortgage servicing rights — — 17,552 17,552 Other assets - derivatives — 17,677 — 17,677 Total recurring fair value measurements - assets $ — $ 1,039,040 $ 83,682 $ 1,122,722 Other liabilities - derivatives $ — $ (15,432) $ — $ (15,432) Total recurring fair value measurements - liabilities $ — $ (15,432) $ — $ (15,432) December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 398,120 $ 44,065 $ 442,185 Corporate bonds — 65,938 — 65,938 U.S. government agency securities — 849 — 849 Commercial mortgage-backed securities — 11,080 — 11,080 Residential mortgage-backed securities — 214,951 — 214,951 Residential collateralized mortgage obligations — 195,343 — 195,343 Asset-backed securities — 74,328 — 74,328 Securities available for sale — 960,609 44,065 1,004,674 Securities carried at fair value through income — — 11,554 11,554 Loans held for sale — 136,026 — 136,026 Loans at fair value — — 17,011 17,011 Mortgage servicing rights — — 13,660 13,660 Other assets - derivatives — 23,694 — 23,694 Total recurring fair value measurements - assets $ — $ 1,120,329 $ 86,290 $ 1,206,619 Other liabilities - derivatives $ — $ (23,020) $ — $ (23,020) Total recurring fair value measurements - liabilities $ — $ (23,020) $ — $ (23,020) The changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the three months ended March 31, 2021 and 2020, 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, 2021 $ 17,011 $ 13,660 $ 44,065 $ 11,554 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — 1,949 — — Other noninterest income (59) — — (477) Loss recognized in AOCI — — (489) — Purchases, issuances, sales and settlements: Originations — 1,943 — — Settlements (3,374) — (2,101) — Balance at March 31, 2021 $ 13,578 $ 17,552 $ 41,475 $ 11,077 Balance at January 1, 2020 $ 17,670 $ 20,697 $ 38,173 $ 11,513 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — (5,228) — — Other noninterest income 166 — — 729 Gain recognized in AOCI — — 160 — Purchases, issuances, sales and settlements: Originations — 653 — — Sales — — (1,908) — Settlements (247) — — — Balance at March 31, 2020 $ 17,589 $ 16,122 $ 36,425 $ 12,242 ____________________________ (1) Total mortgage banking revenue includes changes in fair value due to market changes and run-off. The Company obtains fair value measurements for loans at fair value, securities available for sale and securities at fair value through income from an independent pricing service, therefore, quantitative unobservable inputs are unknown. 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 may include 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, among other things. 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 other pricing sources, 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 Engagements 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 ("MSRs") The carrying amounts of the MSRs equal fair value and are valued using a discounted cash flow valuation technique. The significant assumptions used to value MSRs were as follows: March 31, 2021 December 31, 2020 Range Weighted Average (1) Range Weighted Average (1) Prepayment speeds 7.78% - 35.56% 14.47 % 11.82% - 37.95% 22.08 % Discount rates 9.00 - 10.50 9.50 7.83 - 9.09 8.27 __________________________ (1) The weighted average was calculated with reference to the principle balance of the underlying mortgages. In recent years, there have been significant market-driven fluctuations in the assumptions listed above. Loans with higher average coupon rates have a greater likelihood of prepayment during the current interest rate environment, while loans with lower average coupon rates have a lower likelihood of prepayment. The increase in rates since the year ended December 31, 2020, has caused an decrease in our weighted average prepayment speed and an increase in our discount rate assumptions used in the MSR valuation. 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 would be 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, 2021, and December 31, 2020, 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, 2021 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 82,706 $ 80,761 $ 1,945 Commercial real estate LHFI (2) 13,578 13,386 192 Securities carried at fair value through income 11,077 10,618 459 Total $ 107,361 $ 104,765 $ 2,596 ____________________________ (1) $963,000 of loans held for sale were designated as nonaccrual or 90 days or more past due at March 31, 2021. Of this balance, $826,000 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 March 31, 2021. December 31, 2020 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 136,026 $ 129,955 $ 6,071 Commercial real estate LHFI (2) 17,011 16,760 251 Securities carried at fair value through income 11,554 10,618 936 Total $ 164,591 $ 157,333 $ 7,258 ____________________________ (1) $681,000 of loans held for sale were designated as nonaccrual or 90 days or more past due at December 31, 2020. Of this balance, $473,000 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, 2020. Changes in the fair value of assets for which the Company elected the fair value option are classified in the consolidated statement of income line items reflected in the following table: (Dollars in thousands) Three Months Ended March 31, Changes in fair value included in noninterest income: 2021 2020 Mortgage banking revenue $ (4,125) $ 1,046 Other income: Loans at fair value held for investment (59) 166 Securities carried at fair value through income (477) 729 Total impact on other income (536) 895 Total fair value option impact on noninterest income (1) $ (4,661) $ 1,941 ____________________________ (1) The fair value option impact on noninterest income is offset by the derivative gain/loss recognized in noninterest income. Please see Note 6 - 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 credit worthiness of each issuer. Credit spreads ranged from 83 to 227 basis points at both March 31, 2021, and December 31, 2020. The Company believes the fair value approximates an 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. LHFI For LHFI 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 353 basis points at March 31, 2021, and 290 to 413 basis points at December 31, 2020. 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 $47.3 million and $62.6 million, at March 31, 2021, and December 31, 2020, respectively, and are shown on the face of the consolidated balance sheets. 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 $62.2 million and $55.5 million, respectively, at March 31, 2021, and December 31, 2020, for Government National Mortgage Association ("GNMA") repurchase assets included in mortgage loans held for sale on the consolidated balance sheets. 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 6 - Mortgage Banking for more information on the GNMA repurchase asset. Collateral Dependent Loans with Credit Losses Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists. Allowable methods for determining the amount of credit loss includes estimating the fair value using the fair value of the collateral for collateral-dependent loans. If the loan is identified as collateral-dependent, the fair value method of measuring the amount of credit loss is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Loans that have experienced a credit loss that are collateral-dependent are classified within Level 3 of the fair value hierarchy when the credit loss is determined using the fair value method. The fair value of loans that have experienced a credit loss with specific allocated losses was approximately $15.4 million and $12.3 million at March 31, 2021, and December 31, 2020, 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 credit 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 $3.9 million and $1.6 million at March 31, 2021, and December 31, 2020, respectively. At March 31, 2021, the Company had no residential mortgage loans in the process of foreclosure. Fair Values of Financial Instruments Not Recorded at Fair Value Loans The estimated fair value approximates carrying value for variable-rate loans that reprice frequently and with no significant change in credit risk. The fair value of fixed-rate loans and variable-rate loans which reprice on an infrequent basis is estimated by discounting future cash flows using exit level pricing, which combines the current interest rates at which similar loans with similar terms would be made to borrowers of similar credit quality and an estimated additional rate to reflect a liquidity premium. An overall valuation adjustment is made for specific credit risks as well as general portfolio credit risk. Deposits The estimated fair value approximates carrying value for demand deposits. The fair value of fixed-rate deposit liabilities with defined maturities is estimated by discounting future cash flows using the interest rates currently available for funding from the FHLB. The estimated fair value of deposits does not take into account the value of our long-term relationships with depositors, commonly known as core deposit intangibles, which are separate intangible assets, and not considered financial instruments. Nonetheless, the Company would likely realize a core deposit premium if the deposit portfolio were sold in the principal market for such deposits. Borrowed Funds The estimated fair value approximates carrying value for short-term borrowings. The fair value of long-term fixed-rate and fixed-to-floating-rate borrowings is estimated using quoted market prices, if available, or by discounting future cash flows using current interest rates for similar financial instruments. The estimated fair value approximates carrying value for variable-rate junior subordinated debentures that reprice quarterly. The carrying value and estimated fair values of financial instruments not recorded at fair value are as follows: (Dollars in thousands) Financial assets: March 31, 2021 December 31, 2020 Level 1 inputs: Carrying Estimated Carrying Estimated Cash and cash equivalents $ 264,901 $ 264,901 $ 377,214 $ 377,214 Level 2 inputs: Non-marketable equity securities held in other financial institutions 47,274 47,274 62,586 62,586 Accrued interest and loan fees receivable 27,450 27,450 27,146 27,146 Level 3 inputs: Securities held to maturity 37,983 40,800 38,128 41,205 LHFI, net (1) 5,751,046 5,729,954 5,621,092 5,802,744 Financial liabilities: Level 2 inputs: Deposits 6,346,194 6,349,699 5,751,315 5,756,312 FHLB advances and other borrowings 325,751 312,306 984,608 991,943 Subordinated debentures 157,239 156,451 157,181 156,395 Accrued interest payable 3,445 3,445 3,556 3,556 ____________________________ (1) Does not include loans for which the fair value option had been elected at March 31, 2021, or December 31, 2020, as these loans are carried at fair value on a recurring basis. |
Mortgage Banking
Mortgage Banking | 3 Months Ended |
Mar. 31, 2021 | |
Mortgage Banking [Abstract] | |
Mortgage Banking | Note 6 - 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 2021 2020 Origination $ 376 $ 275 Gain on sale of loans held for sale 6,940 1,873 Servicing 1,501 1,601 Total gross mortgage revenue 8,817 3,749 Mortgage HFS and pipeline fair value adjustment (3,158) 1,266 MSR valuation adjustment, net of amortization 1,949 (5,228) MSR hedge impact (3,031) 2,982 Mortgage banking revenue $ 4,577 $ 2,769 Management uses 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) 2021 2020 Balance at beginning of period $ 13,660 $ 20,697 Addition of servicing rights 1,943 653 Valuation adjustment, net of amortization 1,949 (5,228) Balance at end of period $ 17,552 $ 16,122 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 violated representations or warranties made by the Company and/or the borrower 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 the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation to provide a response to putback claims within 60 days of the date of receipt. The Company incurred $28,000 in mortgage loan servicing putback reserve expense for the three months ended March 31, 2021. At March 31, 2021, and December 31, 2020, the reserve for mortgage loan servicing putback expenses totaled $339,000 and $311,000, respectively. 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 and the potential refinance activity on loans sold with servicing released and the subsequent consequences under the representations and warranties. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 7 - Borrowings Borrowed funds are summarized as follows: (Dollars in thousands) March 31, 2021 December 31, 2020 Overnight repurchase agreements with depositors $ 6,321 $ 8,408 Short-term FHLB advances — 650,000 GNMA repurchase liability 62,244 55,485 Long-term FHLB advances 257,186 270,715 Total FHLB advances and other borrowings $ 325,751 $ 984,608 Subordinated debentures, net $ 157,239 $ 157,181 Additional details of certain FHLB advances are as follows: (Dollars in thousands) Amount Interest Rate Maturity Date At March 31, 2021: Long-term FHLB advance, callable quarterly, fixed rate $ 250,000 1.65 % 8/23/2033 At December 31, 2020: Short-term FHLB advance, fixed rate 650,000 0.10 1/4/2021 Long-term FHLB advance, callable quarterly, fixed rate 250,000 1.65 8/23/2033 Security for all indebtedness and outstanding commitments to the FHLB consists of a blanket floating lien on all of the Company's first mortgage loans, commercial real estate and other real estate loans, as well as the Company's investment in capital stock of the FHLB and deposit accounts at the FHLB. The net amounts available under the blanket floating lien at March 31, 2021 and December 31, 2020, were $1.05 billion and $456.9 million, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
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 consolidated statement of income on a recurring basis. Cash Flow Hedges of Interest Rate Risk The Company is a party to an interest rate swap agreement under which the Company receives interest at a variable rate and pays at a fixed rate. The derivative instrument represented by this swap agreement is designated as a cash flow hedge of the Company's forecasted variable cash flows under a variable-rate term borrowing agreement. During the term of the swap agreement, the effective portion of changes in the fair value of the derivative instrument 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 change in fair value of the derivative recognized directly in earnings. The entire swap fair value will be reclassified into earnings before the expiration date of the swap agreement. 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. From time to time, the Company shares in credit risk on interest rate swap arrangements, by entering into risk participation agreements with syndication partners. These are accounted for at fair value and disclosed as risk participation derivatives. 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 commitments 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 balance sheets at March 31, 2021, and December 31, 2020, as well as the effect of these derivative instruments on the Company's consolidated statements of income for the three months ended March 31, 2021 and 2020: (Dollars in thousands) Notional Amounts (1) Fair Values Derivatives designated as cash flow hedging instruments: March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Interest rate swaps included in other (liabilities) $ 21,000 $ 21,000 $ (227) $ (706) Derivatives not designated as hedging instruments: Interest rate swaps included in other assets $ 334,916 $ 326,542 $ 13,881 $ 20,207 Interest rate swaps included in other liabilities 355,306 347,096 (14,735) (21,321) Risk participation derivatives included in accrued expenses and other liabilities on the consolidated balance sheets 63,374 63,374 (13) (18) Forward commitments to purchase mortgage-backed securities included in other (liabilities) assets 78,000 107,000 (457) (317) Forward commitments to sell residential mortgage loans included in other liabilities 115,000 107,200 1,704 (658) Interest rate-lock commitments on residential mortgage loans included in other assets 80,273 79,554 2,092 3,487 $ 1,026,869 $ 1,030,766 $ 2,472 $ 1,380 ____________________________ (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 consolidated balance sheets. The weighted-average rates paid and received for interest rate swaps at March 31, 2021, were as follows: Weighted-Average Interest Rate Interest rate swaps: Paid Received Cash flow hedges 4.81 % 2.93 % Non-hedging interest rate swaps - financial institution counterparties 4.49 2.70 Non-hedging interest rate swaps - customer counterparties 2.75 4.51 Gains and losses recognized on derivative instruments not designated as hedging instruments are as follows: (Dollars in thousands) Three Months Ended March 31, Derivatives not designated as hedging instruments: 2021 2020 Amount of gain (loss) recognized in mortgage banking revenue (1) $ (1,206) $ 2,513 Amount of (loss) gain recognized in other non-interest income 307 (685) ____________________________ (1) Gains and losses on these instruments are largely offset by market fluctuations in mortgage servicing rights. See Note 6 - 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 consolidated balance sheets, and any impact of netting these amounts would not be significant. At March 31, 2021, and December 31, 2020, the Company had cash collateral on deposit with swap counterparties totaling $12.8 million and $22.2 million, respectively. These amounts are included in interest-bearing deposits in banks in the 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, 2021 | |
Share-based Payment Arrangement [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 were still outstanding at March 31, 2021. 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 incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock awards, restricted stock units, dividend equivalent rights, performance unit awards or any combination thereof. At March 31, 2021, the maximum number of shares of the Company's common stock available for issuance under the 2012 Plan was 915,819 shares. Share-based compensation cost charged to income for the three months ended March 31, 2021, and 2020, is presented below. There was no stock option expense for any of the periods shown. Three Months Ended March 31, (Dollars in thousands) 2021 2020 Restricted stock $ 614 $ 537 Related tax benefits recognized in net income 129 113 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 The following table summarizes the Company's time-vested award activity: Three Months Ended March 31, 2021 2020 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested shares, January 1, 103,359 $ 31.51 149,449 $ 35.15 Granted 6,286 33.82 — — Vested (1,782) 27.20 (2,073) 25.81 Forfeited (946) 24.69 (4,129) 37.14 Nonvested shares, March 31, 106,917 31.78 143,247 35.23 At March 31, 2021, there was $1.9 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 2.0 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, and all of the outstanding options are fully vested. 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 rate, 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, 2021 and 2020. (Dollars in thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Three Months Ended March 31, 2021 Outstanding at January 1, 2021 224,000 $ 10.86 4.92 $ 3,789 Exercised (14,800) 9.89 — — Outstanding and exercisable at March 31, 2021 209,200 10.93 5.05 6,587 Three Months Ended March 31, 2020 Outstanding at January 1, 2020 254,000 $ 10.55 5.81 $ 6,932 Exercised (30,000) 8.25 — — Outstanding and exercisable at March 31, 2020 224,000 10.86 5.67 2,104 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Note 10 - Accumulated Other Comprehensive Income Accumulated other comprehensive income ("AOCI") includes the after-tax change in unrealized gains and losses on AFS securities and cash flow hedging activities. (Dollars in thousands) Unrealized Gain (Loss) on AFS Securities Unrealized (Loss) Gain on Cash Flow Hedges Accumulated Other Comprehensive Income Balance at January 1, 2021 $ 26,206 $ (557) $ 25,649 Net change (13,843) 379 (13,464) Balance at March 31, 2021 $ 12,363 $ (178) $ 12,185 Balance at January 1, 2020 $ 6,412 $ (79) $ 6,333 Net change 10,044 (555) 9,489 Balance at March 31, 2020 $ 16,456 $ (634) $ 15,822 |
Capital and Regulatory Matters
Capital and Regulatory Matters | 3 Months Ended |
Mar. 31, 2021 | |
Banking Regulation [Abstract] | |
Capital and Regulatory Matters | Note 11 - 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 ("Basel III Capital Rules"), which includes a 2.5% capital conservation buffer effective for the Company as of 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 and stock repurchases and to pay discretionary bonuses 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, common equity Tier 1 capital, Tier 1 capital, Tier 1 capital, and total 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, 2021, and December 31, 2020, that the Company and the Bank met all capital adequacy requirements to which they are subject, including the capital buffer requirement. At March 31, 2021, and December 31, 2020, 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, common equity Tier 1 capital, Tier 1 risk based and Tier 1 leverage ratios as set forth in the table below. A final rule adopted by the federal banking agencies in February 2019 provides banking organizations with the option to phase in, over a three-year period, the adverse day-one regulatory capital effects of the adoption of CECL. In addition, on March 27, 2020, the federal banking agencies issued an interim final rule that gives banking organizations that implement CECL before the end of 2020 the option to delay for two years CECL’s adverse effects on regulatory capital. Origin elected to adopt CECL in the first quarter of 2020 and exercised the option to delay the estimated impact of the adoption of CECL on our regulatory capital for two years (from January 2020 through December 31, 2021), which resulted in a 19 basis point benefit to the common equity Tier 1 capital to risk-weighted assets capital ratio at December 31, 2020. The two-year delay will be followed by the three-year transition period of CECL's initial impact on our regulatory capital (from January 1, 2022 through December 31, 2024). The actual capital amounts and ratios of the Company and Bank at March 31, 2021, and December 31, 2020, are presented in the following table: (Dollars in thousands) March 31, 2021 Actual Minimum Capital Required - Basel III To be Well Capitalized Under Prompt Corrective Action Provisions Common Equity Tier 1 Capital to Risk-Weighted Assets Amount Ratio Amount Ratio Amount Ratio Origin Bancorp, Inc. $ 626,931 10.17 % $ 431,516 7.00 % N/A N/A Origin Bank 660,585 10.74 430,549 7.00 $ 399,795 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 636,315 10.32 524,097 8.50 N/A N/A Origin Bank 660,585 10.74 522,809 8.50 492,056 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 858,644 13.92 647,684 10.50 N/A N/A Origin Bank 804,330 13.08 645,678 10.50 614,931 10.00 Leverage Ratio Origin Bancorp, Inc. 636,315 8.67 293,571 4.00 N/A N/A Origin Bank 660,585 9.02 292,942 4.00 366,178 5.00 December 31, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 604,306 9.95 425,012 7.00 N/A N/A Origin Bank 637,863 10.53 424,010 7.00 393,724 6.50 Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 613,682 10.11 516,107 8.50 N/A N/A Origin Bank 637,863 10.53 514,870 8.50 484,583 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 837,058 13.79 637,539 10.50 N/A N/A Origin Bank 782,503 12.92 636,019 10.50 605,732 10.00 Leverage Ratio Origin Bancorp, Inc. 613,682 8.62 284,771 4.00 N/A N/A Origin Bank 637,863 8.99 283,842 4.00 354,802 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, which was $43.4 million at March 31, 2021. Stock Repurchases During the first quarter of 2021, the Company repurchased a total of 37,568 shares of its common stock pursuant to its stock buyback program at an average price per share of $33.42, for an aggregate purchase price of $1.3 million. Prior to 2021, the Company had cumulatively repurchased an aggregate 330,868 common stock shares for a total purchase price of $10.8 million under the stock buyback program. As of March 31, 2021, the Company's board of directors has approved approximately $28.0 million remaining to be purchased under the program. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12 - 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, 2021 December 31, 2020 Commitments to extend credit $ 1,390,528 $ 1,341,501 Standby letters of credit 48,967 42,911 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, 2021, and December 31, 2020, these credit card guarantees totaled $205,000 and $200,000, 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, 2021, the Company held 37 unfunded letters of credit from the FHLB totaling $590.9 million with expiration dates ranging from April 20, 2021, to March 22, 2023. At December 31, 2020, the Company held 35 unfunded letters of credit from the FHLB totaling $527.4 million with expiration dates ranging from January 20, 2021, to November 4, 2022. 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 $2.4 million and $2.3 million at March 31, 2021, and December 31, 2020, respectively, and is included in accrued expenses and other liabilities in the accompanying 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, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation . The 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 Agency, and Reeves, Coon and Funderburg ("RCF"). All significant intercompany balances and transactions have been eliminated in consolidation. The Company's accounting and financial reporting policies conform, in all material respects, to generally accepted accounting principles in the United States ("U.S. GAAP") and to general practices within the financial services industry. The Company has evaluated subsequent events for potential recognition and/or disclosure through the date these consolidated financial statements were issued. The 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, 2020, but in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company's financial position and results of operations for the periods presented. These 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 consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2020, included in the Company's annual report on Form 10-K ("2020 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 period 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. |
Use of Estimates | Use of Estimates . The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions based on available information that affect the amounts reported in the financial statements and disclosures provided, including the accompanying notes, and actual results could differ. Material estimates that are particularly susceptible to change include the allowance for credit losses for loans and available for sale securities; 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. |
Effect of Recently Adopted Accounting Standards | ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 simplifies the accounting for income taxes by eliminating some exceptions to the general approach in Accounting Standards Codification (ASC) 740, Income Taxes. It also clarifies certain aspects of the existing guidance to promote more consistent application, among other things. The amendments were implemented effective January 1, 2021. Implementation of this ASU did not materially impact the consolidated financial statements or disclosures. |
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 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 loans in accordance with U.S. GAAP. |
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 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. 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 may include 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, among other things. 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 other pricing sources, 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 Engagements 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 ("MSRs") Derivatives Fair values for interest rate swap agreements are based upon the amounts that would be 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. 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. 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 credit worthiness of each issuer. Credit spreads ranged from 83 to 227 basis points at both March 31, 2021, and December 31, 2020. The Company believes the fair value approximates an 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. LHFI For LHFI 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 353 basis points at March 31, 2021, and 290 to 413 basis points at December 31, 2020. 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 $47.3 million and $62.6 million, at March 31, 2021, and December 31, 2020, respectively, and are shown on the face of the consolidated balance sheets. 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 $62.2 million and $55.5 million, respectively, at March 31, 2021, and December 31, 2020, for Government National Mortgage Association ("GNMA") repurchase assets included in mortgage loans held for sale on the consolidated balance sheets. 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 6 - Mortgage Banking for more information on the GNMA repurchase asset. Collateral Dependent Loans with Credit Losses Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured to determine if any credit loss exists. Allowable methods for determining the amount of credit loss includes estimating the fair value using the fair value of the collateral for collateral-dependent loans. If the loan is identified as collateral-dependent, the fair value method of measuring the amount of credit loss is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. Loans that have experienced a credit loss that are collateral-dependent are classified within Level 3 of the fair value hierarchy when the credit loss is determined using the fair value method. The fair value of loans that have experienced a credit loss with specific allocated losses was approximately $15.4 million and $12.3 million at March 31, 2021, and December 31, 2020, respectively. Non-Financial Assets |
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 consolidated statement of income on a recurring basis. Cash Flow Hedges of Interest Rate Risk The Company is a party to an interest rate swap agreement under which the Company receives interest at a variable rate and pays at a fixed rate. The derivative instrument represented by this swap agreement is designated as a cash flow hedge of the Company's forecasted variable cash flows under a variable-rate term borrowing agreement. During the term of the swap agreement, the effective portion of changes in the fair value of the derivative instrument 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 change in fair value of the derivative recognized directly in earnings. The entire swap fair value will be reclassified into earnings before the expiration date of the swap agreement. 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. From time to time, the Company shares in credit risk on interest rate swap arrangements, by entering into risk participation agreements with syndication partners. These are accounted for at fair value and disclosed as risk participation derivatives. 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 commitments 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, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | (Dollars in thousands, except per share amounts) Three Months Ended March 31, Numerator: 2021 2020 Net income (basic and diluted) $ 25,513 $ 753 Denominator: Weighted average common shares outstanding 23,393,356 23,353,601 Dilutive effect of stock-based awards 197,074 176,611 Weighted average diluted common shares outstanding 23,590,430 23,530,212 Basic earnings per common share $ 1.09 $ 0.03 Diluted earnings per common share 1.08 0.03 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 the allowance for credit losses and 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) March 31, 2021 Amortized Gross Gross Fair Allowance for Credit Losses Net Carrying Amount Available for sale: State and municipal securities $ 401,450 $ 13,364 $ (5,641) $ 409,173 $ — $ 409,173 Corporate bonds 68,293 2,056 (386) 69,963 — 69,963 U.S. government and agency securities 5,811 3 (177) 5,637 — 5,637 Commercial mortgage-backed securities 9,088 232 (357) 8,963 — 8,963 Residential mortgage-backed securities 200,265 5,738 (943) 205,060 — 205,060 Residential collateralized mortgage obligations 193,730 1,491 (1,415) 193,806 — 193,806 Asset-backed securities 85,938 1,593 (1) 87,530 — 87,530 Total $ 964,575 $ 24,477 $ (8,920) $ 980,132 $ — $ 980,132 Held to maturity: State and municipal securities $ 38,049 $ 2,751 $ — $ 40,800 $ (66) $ 37,983 Securities carried at fair value through income: State and municipal securities (1) $ 10,618 $ — $ — $ 11,077 $ — $ 11,077 December 31, 2020 Available for sale: State and municipal securities $ 420,559 $ 21,884 $ (258) $ 442,185 $ — $ 442,185 Corporate bonds 64,313 1,762 (137) 65,938 — 65,938 U.S. government and agency securities 851 3 (5) 849 — 849 Commercial mortgage-backed securities 10,814 266 — 11,080 — 11,080 Residential mortgage-backed securities 207,742 7,441 (232) 214,951 — 214,951 Residential collateralized mortgage obligations 193,865 1,739 (261) 195,343 — 195,343 Asset-backed securities 73,451 877 — 74,328 — 74,328 Total $ 971,595 $ 33,972 $ (893) $ 1,004,674 $ — $ 1,004,674 Held to maturity: State and municipal securities $ 38,194 $ 3,011 $ — $ 41,205 $ (66) $ 38,128 Securities carried at fair value through income: State and municipal securities (1) $ 10,618 $ — $ — $ 11,554 $ — $ 11,554 ____________________________ (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 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, 2021, and December 31, 2020, 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, 2021 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available for sale: State and municipal securities $ 147,815 $ (5,601) $ 1,520 $ (40) $ 149,335 $ (5,641) Corporate bonds 24,249 (386) — — 24,249 (386) U.S. government and agency securities 4,851 (173) 523 (4) 5,374 (177) Commercial mortgage-backed securities 6,475 (357) — — 6,475 (357) Residential mortgage-backed securities 54,673 (943) — — 54,673 (943) Residential collateralized mortgage obligations 90,832 (1,415) — — 90,832 (1,415) Asset-backed securities 6,868 (1) — — 6,868 (1) Total $ 335,763 $ (8,876) $ 2,043 $ (44) $ 337,806 $ (8,920) Held to maturity: State and municipal securities $ — $ — $ — $ — $ — $ — December 31, 2020 Available for sale: State and municipal securities $ 21,979 $ (258) $ — $ — $ 21,979 $ (258) Corporate bonds 30,513 (137) — — 30,513 (137) U.S. government and agency securities — — 568 (5) 568 (5) Residential mortgage-backed securities 23,178 (232) — — 23,178 (232) Residential collateralized mortgage obligations 43,911 (261) — — 43,911 (261) Total $ 119,581 $ (888) $ 568 $ (5) $ 120,149 $ (893) Held to maturity: State and municipal securities $ — $ — $ — $ — $ — $ — |
Schedule of Allowance for Credit Losses for Held -to -Maturity Securities | The following table presents the activity in the allowance for credit losses for held-to-maturity debt securities. (Dollars in thousands) Municipal Securities Allowance for credit losses: Balance at January 1, 2021 $ 66 Credit loss expense — Balance at March 31, 2021 $ 66 Balance at January 1, 2020 $ — Impact of adopting ASC 326 96 Credit loss expense — Balance at March 31, 2020 $ 96 |
Proceeds from Sales of Securities Available for Sale and Gross Gains | Proceeds from sales and calls, and related gross gains and losses of securities available for sale, are shown below. Three Months Ended March 31, (Dollars in thousands) 2021 2020 Proceeds from sales $ 40,493 $ 22,375 Gross realized gains 1,700 103 Gross realized losses (32) (49) |
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, 2021, grouped by contractual maturity. Mortgage-backed securities, collateralized mortgage obligations and asset-backed securities, which do not have contractual payments due at a single maturity date, are shown separately. Actual maturities for mortgage-backed securities, collateralized mortgage obligations and asset-backed securities will differ from contractual maturities as a result of prepayments made on the underlying loans. (Dollars in thousands) Held to Maturity Available for Sale March 31, 2021 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 12,857 $ 12,862 $ 4,725 $ 4,772 Due after one year through five years — — 52,044 56,192 Due after five years through ten years 25,192 27,938 111,175 113,565 Due after ten years — — 307,610 310,244 Commercial mortgage-backed securities — — 9,088 8,963 Residential mortgage-backed securities — — 200,265 205,060 Residential collateralized mortgage obligations — — 193,730 193,806 Asset-backed securities — — 85,938 87,530 Total $ 38,049 $ 40,800 $ 964,575 $ 980,132 |
Securities Pledged as Collateral | The following table presents carrying amounts of securities pledged as collateral for deposits and repurchase agreements for the period ends presented. (Dollars in thousands) March 31, 2021 December 31, 2020 Carrying value of securities pledged to secure public deposits $ 232,179 $ 289,537 Carrying value of securities pledged to repurchase agreements 9,949 10,982 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Loans | Loans consist of the following: (Dollars in thousands) March 31, 2021 December 31, 2020 Loans held for sale $ 144,950 $ 191,512 LHFI: Loans secured by real estate: Commercial real estate $ 1,441,071 $ 1,370,928 Construction/land/land development 548,236 531,860 Residential real estate 904,753 885,120 Total real estate 2,894,060 2,787,908 Commercial and industrial (1) 1,834,498 1,817,862 Mortgage warehouse lines of credit 1,090,347 1,084,001 Consumer 17,277 17,991 Total loans accounted for at amortized cost 5,836,182 5,707,762 Loans accounted for at fair value 13,578 17,011 Total LHFI (2) 5,849,760 5,724,773 Less: Allowance for loan losses 85,136 86,670 LHFI, net $ 5,764,624 $ 5,638,103 ____________________________ (1) Includes $584.1 million and $546.5 million of PPP loans at March 31, 2021 and December 31, 2020, respectively. (2) Includes net deferred loan fees of $15.9 million and $13.7 million at March 31, 2021, and December 31, 2020, 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. In connection with the review of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. The list of loans to be reviewed for possible individual evaluation consists of nonaccrual commercial loans over $100,000 with direct exposure, unsecured loans over 90 days past due, commercial loans classified substandard or worse over $100,000 with direct exposure, troubled debt restructurings ("TDRs"), consumer loans greater than $100,000 with a FICO score under 625, loans greater than $100,000 in which the borrower has filed bankruptcy, and all loans 180 days or more past due. Loans under $50,000 will be evaluated collectively in designated pools unless a loss exposure has been identified. Some additional risk elements considered by loan type include: • for commercial real estate loans, the debt service coverage ratio, operating results of the owner in the case of owner occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; • for construction, land and land development loans, the perceived feasibility of the project, including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; • for residential mortgage loans, the borrower's ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan-to-value ratio, and the age, condition and marketability of the collateral; and • for commercial and industrial loans, the debt service coverage ratio (income from the business in excess of operating expenses compared to loan repayment requirements), the operating results of the commercial, industrial or professional enterprise, the borrower's business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral. The following table reflects recorded investments in loans by credit quality indicator and origination year at March 31, 2021, excluding loans held for sale and loans accounted for at fair value. The Company had an immaterial amount of revolving loans converted to term loans at March 31, 2021. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: (1) Pass $ 130,211 $ 394,179 $ 290,815 $ 289,673 $ 148,317 $ 124,443 $ 21,263 $ 1,398,901 Special mention 4,383 — — 1,154 20,707 — 2,110 28,354 Classified 1,904 3,473 1,587 2,782 1,427 2,529 114 13,816 Total commercial real estate loans $ 136,498 $ 397,652 $ 292,402 $ 293,609 $ 170,451 $ 126,972 $ 23,487 $ 1,441,071 Current period gross charge-offs $ — $ — $ — $ — $ 2 $ 26 $ — $ 28 Current period gross recoveries — — — — — 3 — 3 Current period net charge-offs (recoveries) $ — $ — $ — $ — $ 2 $ 23 $ — $ 25 (1) Excludes $13.6 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. Construction/land/land development: Pass $ 40,706 $ 193,152 $ 142,872 $ 119,935 $ 12,716 $ 2,505 $ 17,490 $ 529,376 Special mention — — 10,242 135 1,003 — — 11,380 Classified 306 317 1,079 716 1,508 291 3,263 7,480 Total construction/land/land development loans $ 41,012 $ 193,469 $ 154,193 $ 120,786 $ 15,227 $ 2,796 $ 20,753 $ 548,236 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — — — — Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ — $ — $ — Residential real estate: Pass $ 53,633 $ 354,359 $ 118,406 $ 114,721 $ 101,869 $ 89,887 $ 52,920 $ 885,795 Special mention 1,447 185 — — 801 196 — 2,629 Classified 94 1,658 2,354 2,955 2,214 6,826 228 16,329 Total residential real estate loans $ 55,174 $ 356,202 $ 120,760 $ 117,676 $ 104,884 $ 96,909 $ 53,148 $ 904,753 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — 9 — 9 Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ (9) $ — $ (9) Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2021 2020 2019 2018 2017 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial: Pass $ 254,777 $ 700,996 $ 137,792 $ 103,342 $ 22,396 $ 33,753 $ 471,812 $ 1,724,868 Special mention 217 4,631 2,275 25,902 408 14,458 4,125 52,016 Classified 4,474 1,228 11,786 5,753 4,942 10,198 19,233 57,614 Total commercial and industrial loans $ 259,468 $ 706,855 $ 151,853 $ 134,997 $ 27,746 $ 58,409 $ 495,170 $ 1,834,498 Current period gross charge-offs $ — $ 4 $ 54 $ — $ 362 $ 1,282 $ 1,253 $ 2,955 Current period gross recoveries — — 13 — 11 76 8 108 Current period net charge-offs (recoveries) $ — $ 4 $ 41 $ — $ 351 $ 1,206 $ 1,245 $ 2,847 Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 1,090,347 $ 1,090,347 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — — — — Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 1,858 $ 5,477 $ 2,656 $ 1,276 $ 154 $ 148 $ 5,652 $ 17,221 Classified — 28 9 1 — 5 13 56 Total consumer loans $ 1,858 $ 5,505 $ 2,665 $ 1,277 $ 154 $ 153 $ 5,665 $ 17,277 Current period gross charge-offs $ — $ — $ 22 $ 2 $ — $ 6 $ 14 $ 44 Current period gross recoveries — — — — — 13 — 13 Current period net charge-offs (recoveries) $ — $ — $ 22 $ 2 $ — $ (7) $ 14 $ 31 The following table reflects recorded investments in loans by credit quality indicator and origination year at December 31, 2020, excluding loans held for sale and loans accounted for at fair value. The Company had an immaterial amount of revolving loans converted to term loans at December 31, 2020. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: (1) Pass $ 393,317 $ 290,394 $ 312,051 $ 154,445 $ 46,132 $ 106,994 $ 18,419 $ 1,321,752 Special mention 824 113 2,410 20,691 — 1,656 2,145 27,839 Classified 2,806 1,678 6,704 6,586 1,476 1,093 994 21,337 Total commercial real estate loans $ 396,947 $ 292,185 $ 321,165 $ 181,722 $ 47,608 $ 109,743 $ 21,558 $ 1,370,928 Current period gross charge-offs $ — $ — $ — $ 3,622 $ 199 $ 1,103 $ — $ 4,924 Current period gross recoveries — — — — — 19 — 19 Current period net charge-offs $ — $ — $ — $ 3,622 $ 199 $ 1,084 $ — $ 4,905 (1) Excludes $17.0 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. Term Loans Amortized Cost Basis by Origination Year (Dollars in thousands) 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Construction/land/land development: Pass $ 189,311 $ 150,281 $ 138,000 $ 12,907 $ 1,812 $ 1,157 $ 18,892 $ 512,360 Special mention 323 10,421 135 1,003 — — — 11,882 Classified — 1,811 726 1,507 143 168 3,263 7,618 Total construction/land/land development loans $ 189,634 $ 162,513 $ 138,861 $ 15,417 $ 1,955 $ 1,325 $ 22,155 $ 531,860 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — 1 — 1 Current period net charge-offs (recoveries) $ — $ — $ — $ — $ — $ (1) $ — $ (1) Residential real estate: Pass $ 367,652 $ 143,368 $ 103,450 $ 102,272 $ 41,522 $ 50,094 $ 53,854 $ 862,212 Special mention 188 — 29 1,875 9,287 803 — 12,182 Classified 1,857 2,403 2,982 511 1,344 1,533 96 10,726 Total residential real estate loans $ 369,697 $ 145,771 $ 106,461 $ 104,658 $ 52,153 $ 52,430 $ 53,950 $ 885,120 Current period gross charge-offs $ 94 $ 271 $ — $ 283 $ — $ 44 $ — $ 692 Current period gross recoveries — — — — — 202 — 202 Current period net charge-offs (recoveries) $ 94 $ 271 $ — $ 283 $ — $ (158) $ — $ 490 Commercial and industrial: Pass $ 851,780 $ 153,722 $ 110,092 $ 29,413 $ 9,927 $ 26,964 $ 511,220 $ 1,693,118 Special mention 4,860 2,059 26,438 423 — 14,843 8,077 56,700 Classified 5,436 12,250 5,859 5,450 5,950 6,707 26,392 68,044 Total commercial and industrial loans $ 862,076 $ 168,031 $ 142,389 $ 35,286 $ 15,877 $ 48,514 $ 545,689 $ 1,817,862 Current period gross charge-offs $ 189 $ 204 $ 87 $ 121 $ 3,228 $ 469 $ 2,404 $ 6,702 Current period gross recoveries — 42 20 81 185 112 582 1,022 Current period net charge-offs $ 189 $ 162 $ 67 $ 40 $ 3,043 $ 357 $ 1,822 $ 5,680 Mortgage Warehouse Lines of Credit: Pass $ — $ — $ — $ — $ — $ — $ 1,084,001 $ 1,084,001 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Current period gross recoveries — — — — — — — — Current period net charge-offs $ — $ — $ — $ — $ — $ — $ — $ — Consumer: Pass $ 6,702 $ 3,318 $ 1,578 $ 203 $ 116 $ 83 $ 5,935 $ 17,935 Classified 28 8 — — 6 1 13 56 Total consumer loans $ 6,730 $ 3,326 $ 1,578 $ 203 $ 122 $ 84 $ 5,948 $ 17,991 Current period gross charge-offs $ — $ 39 $ 23 $ 8 $ — $ 4 $ 2 $ 76 Current period gross recoveries — — 1 7 5 7 4 24 Current period net charge-offs (recoveries) $ — $ 39 $ 22 $ 1 $ (5) $ (3) $ (2) $ 52 |
Loan Portfolio Aging Analysis | The following tables present the Company's loan portfolio aging analysis at the dates indicated: March 31, 2021 (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 (1) $ 1,055 $ — $ 571 $ 1,626 $ 1,453,023 $ 1,454,649 $ — Construction/land/land development 257 253 1,832 2,342 545,894 548,236 — Residential real estate 2,287 4,361 3,116 9,764 894,989 904,753 — Total real estate 3,599 4,614 5,519 13,732 2,893,906 2,907,638 — Commercial and industrial 791 165 11,825 12,781 1,821,717 1,834,498 — Mortgage warehouse lines of credit — — — — 1,090,347 1,090,347 — Consumer 58 1 2 61 17,216 17,277 — Total LHFI $ 4,448 $ 4,780 $ 17,346 $ 26,574 $ 5,823,186 $ 5,849,760 $ — ____________________________ (1) Includes $13.6 million of commercial real estate loans at fair value December 31, 2020 (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 (1) $ 1,072 $ — $ 3,172 $ 4,244 $ 1,383,695 $ 1,387,939 $ — Construction/land/land development 369 1 2,328 2,698 529,162 531,860 — Residential real estate 3,774 134 364 4,272 880,848 885,120 — Total real estate 5,215 135 5,864 11,214 2,793,705 2,804,919 — Commercial and industrial 703 1,097 12,625 14,425 1,803,437 1,817,862 — Mortgage warehouse lines of credit — — — — 1,084,001 1,084,001 — Consumer 113 9 2 124 17,867 17,991 — Total LHFI $ 6,031 $ 1,241 $ 18,491 $ 25,763 $ 5,699,010 $ 5,724,773 $ — ____________________________ (1) Includes $17.0 million of commercial real estate loans at fair value |
Allowance for Loan Losses by Portfolio Segment | The following tables detail activity in the allowance for loan credit losses by portfolio segment. Accrued interest of $20.2 million and $12.6 million was not included in the book value for the purposes of calculating the allowance at March 31, 2021 and March 31, 2020, respectively. 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, 2021 (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision (Benefit) (1) Ending Balance Loans secured by real estate: Commercial real estate $ 15,430 $ 28 $ 3 $ 2,992 $ 18,397 Construction/land/land development 8,191 — — (802) 7,389 Residential real estate 9,418 — 9 (1,133) 8,294 Commercial and industrial 51,857 2,955 108 332 49,342 Mortgage warehouse lines of credit 856 — — 67 923 Consumer 918 44 13 (96) 791 Total $ 86,670 $ 3,027 $ 133 $ 1,360 $ 85,136 ____________________________ (1) The $1.4 million provision for credit losses on the consolidated statements of income includes a $1.4 million net loan loss provision, and a $52,000 provision for off-balance sheet commitments for the three months ended March 31, 2021. Three Months Ended March 31, 2020 (Dollars in thousands) Beginning Balance Impact of Adopting ASC 326 Charge-offs Recoveries Provision (1) Ending Balance Loans secured by real estate: Commercial real estate $ 10,013 $ (5,052) $ 172 $ 2 $ 4,463 $ 9,254 Construction/land/land development 3,711 1,141 — — 202 5,054 Residential real estate 6,332 (2,526) 49 149 589 4,495 Commercial and industrial 16,960 7,296 1,180 169 12,578 35,823 Mortgage warehouse lines of credit 262 29 — — 488 779 Consumer 242 360 24 4 76 658 Total $ 37,520 $ 1,248 $ 1,425 $ 324 $ 18,396 $ 56,063 ____________________________ (1) The $18.5 million provision for credit losses on the consolidated statements of income includes a $18.4 million net loan loss provision and a $135,000 provision for off-balance sheet commitments for the three months ended March 31, 2020. The following tables show the recorded investment in loans by loss estimation methodology at March 31, 2021, and December 31, 2020. March 31, 2021 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate (1) $ 1,438,054 $ 571 $ 2,446 $ 1,441,071 Construction/land/land development 545,796 2,112 328 548,236 Residential real estate 894,416 8,482 1,855 904,753 Commercial and industrial 1,814,453 9,388 10,657 1,834,498 Mortgage warehouse lines of credit 1,090,347 — — 1,090,347 Consumer 17,275 2 — 17,277 Total $ 5,800,341 $ 20,555 $ 15,286 $ 5,836,182 ____________________________ (1) Excludes $13.6 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. December 31, 2020 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate (1) $ 1,365,284 $ 3,173 $ 2,471 $ 1,370,928 Construction/land/land development 528,894 2,621 345 531,860 Residential real estate 879,015 2,009 4,096 885,120 Commercial and industrial 1,804,049 3,152 10,661 1,817,862 Mortgage warehouse lines of credit 1,084,001 — — 1,084,001 Consumer 17,991 — — 17,991 Total $ 5,679,234 $ 10,955 $ 17,573 $ 5,707,762 ____________________________ (1) Excludes $17.0 million of commercial real estate loans at fair value, which are not included in the loss estimation methodology due to the fair value option election. The following tables show the allowance for loan credit losses by loss estimation methodology at March 31, 2021, and December 31, 2020. March 31, 2021 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate $ 18,388 $ — $ 9 $ 18,397 Construction/land/land development 7,258 131 — 7,389 Residential real estate 7,992 — 302 8,294 Commercial and industrial 41,488 3,201 4,653 49,342 Mortgage warehouse lines of credit 923 — — 923 Consumer 789 2 — 791 Total $ 76,838 $ 3,334 $ 4,964 $ 85,136 December 31, 2020 Collectively Evaluated Individually Evaluated (Dollars in thousands) Probability of Default Fair Value of Collateral Discounted Cash Flow Total Loans secured by real estate: Commercial real estate $ 14,896 $ 525 $ 9 $ 15,430 Construction/land/land development 8,062 128 1 8,191 Residential real estate 8,983 — 435 9,418 Commercial and industrial 44,714 1,707 5,436 51,857 Mortgage warehouse lines of credit 856 — — 856 Consumer 918 — — 918 Total $ 78,429 $ 2,360 $ 5,881 $ 86,670 |
Non-performing (Nonaccrual) Loans Held for Investment | Nonaccrual LHFI were as follows: Nonaccrual With No Nonaccrual (Dollars in thousands) Loans secured by real estate: March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Commercial real estate $ 1,012 $ 1,053 $ 1,085 $ 3,704 Construction/land/land development 955 1,319 2,431 2,962 Residential real estate 8,901 2,436 10,692 6,530 Total real estate 10,868 4,808 14,208 13,196 Commercial and industrial 76 82 19,094 12,897 Consumer — — 56 56 Total nonaccrual loans $ 10,944 $ 4,890 $ 33,358 $ 26,149 |
Loans Classified as Troubled Debt Restructurings (TDRs) | Loans classified as TDRs, excluding the impact of forbearances granted due to COVID-19, were as follows: (Dollars in thousands) March 31, 2021 December 31, 2020 TDRs Nonaccrual TDRs $ 5,515 $ 5,671 Performing TDRs 3,237 3,314 Total $ 8,752 $ 8,985 There were no loans classified as TDR's during the three months ended March 31, 2021. The tables below summarize loans classified as TDR's by loan and concession type during the three months ended March 31, 2020. Three Months Ended March 31, 2020 (Dollars in thousands) Number of Loans Restructured Pre-Modification Recorded Balance Term Concessions Interest Rate Concessions Combination of Term and Rate Concessions Total Modifications Commercial and industrial 2 $ 128 $ 127 $ — $ — $ 127 Total 2 $ 128 $ 127 $ — $ — $ 127 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021, and December 31, 2020, 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 2021 or 2020. March 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 367,698 $ 41,475 $ 409,173 Corporate bonds — 69,963 — 69,963 U.S. government agency securities — 5,637 — 5,637 Commercial mortgage-backed securities — 8,963 — 8,963 Residential mortgage-backed securities — 205,060 — 205,060 Residential collateralized mortgage obligations — 193,806 — 193,806 Asset-backed securities — 87,530 — 87,530 Securities available for sale — 938,657 41,475 980,132 Securities carried at fair value through income — — 11,077 11,077 Loans held for sale — 82,706 — 82,706 Loans at fair value — — 13,578 13,578 Mortgage servicing rights — — 17,552 17,552 Other assets - derivatives — 17,677 — 17,677 Total recurring fair value measurements - assets $ — $ 1,039,040 $ 83,682 $ 1,122,722 Other liabilities - derivatives $ — $ (15,432) $ — $ (15,432) Total recurring fair value measurements - liabilities $ — $ (15,432) $ — $ (15,432) December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total State and municipal securities $ — $ 398,120 $ 44,065 $ 442,185 Corporate bonds — 65,938 — 65,938 U.S. government agency securities — 849 — 849 Commercial mortgage-backed securities — 11,080 — 11,080 Residential mortgage-backed securities — 214,951 — 214,951 Residential collateralized mortgage obligations — 195,343 — 195,343 Asset-backed securities — 74,328 — 74,328 Securities available for sale — 960,609 44,065 1,004,674 Securities carried at fair value through income — — 11,554 11,554 Loans held for sale — 136,026 — 136,026 Loans at fair value — — 17,011 17,011 Mortgage servicing rights — — 13,660 13,660 Other assets - derivatives — 23,694 — 23,694 Total recurring fair value measurements - assets $ — $ 1,120,329 $ 86,290 $ 1,206,619 Other liabilities - derivatives $ — $ (23,020) $ — $ (23,020) Total recurring fair value measurements - liabilities $ — $ (23,020) $ — $ (23,020) |
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, 2021 and 2020, 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, 2021 $ 17,011 $ 13,660 $ 44,065 $ 11,554 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — 1,949 — — Other noninterest income (59) — — (477) Loss recognized in AOCI — — (489) — Purchases, issuances, sales and settlements: Originations — 1,943 — — Settlements (3,374) — (2,101) — Balance at March 31, 2021 $ 13,578 $ 17,552 $ 41,475 $ 11,077 Balance at January 1, 2020 $ 17,670 $ 20,697 $ 38,173 $ 11,513 Gain (loss) recognized in earnings: Mortgage banking revenue (1) — (5,228) — — Other noninterest income 166 — — 729 Gain recognized in AOCI — — 160 — Purchases, issuances, sales and settlements: Originations — 653 — — Sales — — (1,908) — Settlements (247) — — — Balance at March 31, 2020 $ 17,589 $ 16,122 $ 36,425 $ 12,242 ____________________________ (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, 2021 December 31, 2020 Range Weighted Average (1) Range Weighted Average (1) Prepayment speeds 7.78% - 35.56% 14.47 % 11.82% - 37.95% 22.08 % Discount rates 9.00 - 10.50 9.50 7.83 - 9.09 8.27 __________________________ (1) The weighted average was calculated with reference to the principle balance of the underlying mortgages. |
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 | 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, 2021 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 82,706 $ 80,761 $ 1,945 Commercial real estate LHFI (2) 13,578 13,386 192 Securities carried at fair value through income 11,077 10,618 459 Total $ 107,361 $ 104,765 $ 2,596 ____________________________ (1) $963,000 of loans held for sale were designated as nonaccrual or 90 days or more past due at March 31, 2021. Of this balance, $826,000 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 March 31, 2021. December 31, 2020 (Dollars in thousands) Aggregate Fair Value Aggregate Unpaid Principal Balance Difference Loans held for sale (1) $ 136,026 $ 129,955 $ 6,071 Commercial real estate LHFI (2) 17,011 16,760 251 Securities carried at fair value through income 11,554 10,618 936 Total $ 164,591 $ 157,333 $ 7,258 ____________________________ (1) $681,000 of loans held for sale were designated as nonaccrual or 90 days or more past due at December 31, 2020. Of this balance, $473,000 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, 2020. Changes in the fair value of assets for which the Company elected the fair value option are classified in the consolidated statement of income line items reflected in the following table: (Dollars in thousands) Three Months Ended March 31, Changes in fair value included in noninterest income: 2021 2020 Mortgage banking revenue $ (4,125) $ 1,046 Other income: Loans at fair value held for investment (59) 166 Securities carried at fair value through income (477) 729 Total impact on other income (536) 895 Total fair value option impact on noninterest income (1) $ (4,661) $ 1,941 ____________________________ (1) The fair value option impact on noninterest income is offset by the derivative gain/loss recognized in noninterest income. Please see Note 6 - Mortgage Banking for more detail. |
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) Financial assets: March 31, 2021 December 31, 2020 Level 1 inputs: Carrying Estimated Carrying Estimated Cash and cash equivalents $ 264,901 $ 264,901 $ 377,214 $ 377,214 Level 2 inputs: Non-marketable equity securities held in other financial institutions 47,274 47,274 62,586 62,586 Accrued interest and loan fees receivable 27,450 27,450 27,146 27,146 Level 3 inputs: Securities held to maturity 37,983 40,800 38,128 41,205 LHFI, net (1) 5,751,046 5,729,954 5,621,092 5,802,744 Financial liabilities: Level 2 inputs: Deposits 6,346,194 6,349,699 5,751,315 5,756,312 FHLB advances and other borrowings 325,751 312,306 984,608 991,943 Subordinated debentures 157,239 156,451 157,181 156,395 Accrued interest payable 3,445 3,445 3,556 3,556 ____________________________ (1) Does not include loans for which the fair value option had been elected at March 31, 2021, or December 31, 2020, as these loans are carried at fair value on a recurring basis. |
Mortgage Banking (Tables)
Mortgage Banking (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 2021 2020 Origination $ 376 $ 275 Gain on sale of loans held for sale 6,940 1,873 Servicing 1,501 1,601 Total gross mortgage revenue 8,817 3,749 Mortgage HFS and pipeline fair value adjustment (3,158) 1,266 MSR valuation adjustment, net of amortization 1,949 (5,228) MSR hedge impact (3,031) 2,982 Mortgage banking revenue $ 4,577 $ 2,769 |
Schedule of Activity in Mortgages Servicing Rights (MSRs) | Activity in MSRs was as follows: Three Months Ended March 31, (Dollars in thousands) 2021 2020 Balance at beginning of period $ 13,660 $ 20,697 Addition of servicing rights 1,943 653 Valuation adjustment, net of amortization 1,949 (5,228) Balance at end of period $ 17,552 $ 16,122 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Borrowed Funds | Borrowed funds are summarized as follows: (Dollars in thousands) March 31, 2021 December 31, 2020 Overnight repurchase agreements with depositors $ 6,321 $ 8,408 Short-term FHLB advances — 650,000 GNMA repurchase liability 62,244 55,485 Long-term FHLB advances 257,186 270,715 Total FHLB advances and other borrowings $ 325,751 $ 984,608 Subordinated debentures, net $ 157,239 $ 157,181 Additional details of certain FHLB advances are as follows: (Dollars in thousands) Amount Interest Rate Maturity Date At March 31, 2021: Long-term FHLB advance, callable quarterly, fixed rate $ 250,000 1.65 % 8/23/2033 At December 31, 2020: Short-term FHLB advance, fixed rate 650,000 0.10 1/4/2021 Long-term FHLB advance, callable quarterly, fixed rate 250,000 1.65 8/23/2033 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 balance sheets at March 31, 2021, and December 31, 2020, as well as the effect of these derivative instruments on the Company's consolidated statements of income for the three months ended March 31, 2021 and 2020: (Dollars in thousands) Notional Amounts (1) Fair Values Derivatives designated as cash flow hedging instruments: March 31, 2021 December 31, 2020 March 31, 2021 December 31, 2020 Interest rate swaps included in other (liabilities) $ 21,000 $ 21,000 $ (227) $ (706) Derivatives not designated as hedging instruments: Interest rate swaps included in other assets $ 334,916 $ 326,542 $ 13,881 $ 20,207 Interest rate swaps included in other liabilities 355,306 347,096 (14,735) (21,321) Risk participation derivatives included in accrued expenses and other liabilities on the consolidated balance sheets 63,374 63,374 (13) (18) Forward commitments to purchase mortgage-backed securities included in other (liabilities) assets 78,000 107,000 (457) (317) Forward commitments to sell residential mortgage loans included in other liabilities 115,000 107,200 1,704 (658) Interest rate-lock commitments on residential mortgage loans included in other assets 80,273 79,554 2,092 3,487 $ 1,026,869 $ 1,030,766 $ 2,472 $ 1,380 ____________________________ (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 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, 2021, were as follows: Weighted-Average Interest Rate Interest rate swaps: Paid Received Cash flow hedges 4.81 % 2.93 % Non-hedging interest rate swaps - financial institution counterparties 4.49 2.70 Non-hedging interest rate swaps - customer counterparties 2.75 4.51 |
Gains and Losses Recognized on Derivative Instruments Not Designated as Hedging Instruments | Gains and losses recognized on derivative instruments not designated as hedging instruments are as follows: (Dollars in thousands) Three Months Ended March 31, Derivatives not designated as hedging instruments: 2021 2020 Amount of gain (loss) recognized in mortgage banking revenue (1) $ (1,206) $ 2,513 Amount of (loss) gain recognized in other non-interest income 307 (685) ____________________________ (1) Gains and losses on these instruments are largely offset by market fluctuations in mortgage servicing rights. See Note 6 - 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, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation Cost Charged to Income | Share-based compensation cost charged to income for the three months ended March 31, 2021, and 2020, is presented below. There was no stock option expense for any of the periods shown. Three Months Ended March 31, (Dollars in thousands) 2021 2020 Restricted stock $ 614 $ 537 Related tax benefits recognized in net income 129 113 |
Time-Vested Award Activity | The following table summarizes the Company's time-vested award activity: Three Months Ended March 31, 2021 2020 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested shares, January 1, 103,359 $ 31.51 149,449 $ 35.15 Granted 6,286 33.82 — — Vested (1,782) 27.20 (2,073) 25.81 Forfeited (946) 24.69 (4,129) 37.14 Nonvested shares, March 31, 106,917 31.78 143,247 35.23 |
Stock Option Activity | The table below summarizes the status of the Company's stock options and changes during the three months ended March 31, 2021 and 2020. (Dollars in thousands, except per share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Three Months Ended March 31, 2021 Outstanding at January 1, 2021 224,000 $ 10.86 4.92 $ 3,789 Exercised (14,800) 9.89 — — Outstanding and exercisable at March 31, 2021 209,200 10.93 5.05 6,587 Three Months Ended March 31, 2020 Outstanding at January 1, 2020 254,000 $ 10.55 5.81 $ 6,932 Exercised (30,000) 8.25 — — Outstanding and exercisable at March 31, 2020 224,000 10.86 5.67 2,104 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | Accumulated other comprehensive income ("AOCI") includes the after-tax change in unrealized gains and losses on AFS securities and cash flow hedging activities. (Dollars in thousands) Unrealized Gain (Loss) on AFS Securities Unrealized (Loss) Gain on Cash Flow Hedges Accumulated Other Comprehensive Income Balance at January 1, 2021 $ 26,206 $ (557) $ 25,649 Net change (13,843) 379 (13,464) Balance at March 31, 2021 $ 12,363 $ (178) $ 12,185 Balance at January 1, 2020 $ 6,412 $ (79) $ 6,333 Net change 10,044 (555) 9,489 Balance at March 31, 2020 $ 16,456 $ (634) $ 15,822 |
Capital and Regulatory Matters
Capital and Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Banking Regulation [Abstract] | |
Actual Capital Amounts and Ratios | The actual capital amounts and ratios of the Company and Bank at March 31, 2021, and December 31, 2020, are presented in the following table: (Dollars in thousands) March 31, 2021 Actual Minimum Capital Required - Basel III To be Well Capitalized Under Prompt Corrective Action Provisions Common Equity Tier 1 Capital to Risk-Weighted Assets Amount Ratio Amount Ratio Amount Ratio Origin Bancorp, Inc. $ 626,931 10.17 % $ 431,516 7.00 % N/A N/A Origin Bank 660,585 10.74 430,549 7.00 $ 399,795 6.50 % Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 636,315 10.32 524,097 8.50 N/A N/A Origin Bank 660,585 10.74 522,809 8.50 492,056 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 858,644 13.92 647,684 10.50 N/A N/A Origin Bank 804,330 13.08 645,678 10.50 614,931 10.00 Leverage Ratio Origin Bancorp, Inc. 636,315 8.67 293,571 4.00 N/A N/A Origin Bank 660,585 9.02 292,942 4.00 366,178 5.00 December 31, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 604,306 9.95 425,012 7.00 N/A N/A Origin Bank 637,863 10.53 424,010 7.00 393,724 6.50 Tier 1 Capital to Risk-Weighted Assets Origin Bancorp, Inc. 613,682 10.11 516,107 8.50 N/A N/A Origin Bank 637,863 10.53 514,870 8.50 484,583 8.00 Total Capital to Risk-Weighted Assets Origin Bancorp, Inc. 837,058 13.79 637,539 10.50 N/A N/A Origin Bank 782,503 12.92 636,019 10.50 605,732 10.00 Leverage Ratio Origin Bancorp, Inc. 613,682 8.62 284,771 4.00 N/A N/A Origin Bank 637,863 8.99 283,842 4.00 354,802 5.00 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance Sheet Financial Instruments | These off-balance sheet financial instruments are summarized below: (Dollars in thousands) March 31, 2021 December 31, 2020 Commitments to extend credit $ 1,390,528 $ 1,341,501 Standby letters of credit 48,967 42,911 |
Significant Accounting Polici_3
Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2021segmentcenter | |
Accounting Policies [Abstract] | |
Number of banking centers | center | 44 |
Number of segments | segment | 1 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income (basic and diluted) | $ 25,513 | $ 753 |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 23,393,356 | 23,353,601 |
Dilutive effect of stock-based awards (in shares) | 197,074 | 176,611 |
Weighted average diluted common shares outstanding (in shares) | 23,590,430 | 23,530,212 |
Basic earnings per common share (in dollars per share) | $ 1.09 | $ 0.03 |
Diluted earnings per common share (in dollars per share) | $ 1.08 | $ 0.03 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Available for sale: | ||||
Available for sale, amortized cost | $ 964,575 | $ 971,595 | ||
Available for sale, gross unrealized gains | 24,477 | 33,972 | ||
Available for sale, gross unrealized losses | (8,920) | (893) | ||
Available for sale, fair value | 980,132 | 1,004,674 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 980,132 | 1,004,674 | ||
Held to maturity: | ||||
Held to maturity, amortized cost | 38,049 | |||
Held to maturity, allowance for credit losses | 40,800 | 41,205 | ||
Held to maturity, allowance for credit losses | (66) | (66) | $ (96) | $ 0 |
Held to maturity, net carrying amount | 37,983 | 38,128 | ||
Securities carried at fair value through income: | ||||
Securities carried at fair value through income, fair value | 11,077 | 11,554 | ||
State and municipal securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 401,450 | 420,559 | ||
Available for sale, gross unrealized gains | 13,364 | 21,884 | ||
Available for sale, gross unrealized losses | (5,641) | (258) | ||
Available for sale, fair value | 409,173 | 442,185 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 409,173 | 442,185 | ||
Held to maturity: | ||||
Held to maturity, amortized cost | 38,049 | 38,194 | ||
Held to maturity, gross unrealized gains | 2,751 | 3,011 | ||
Held to maturity, gross unrealized losses | 0 | 0 | ||
Held to maturity, allowance for credit losses | (66) | (66) | ||
Held to maturity, net carrying amount | 37,983 | 38,128 | ||
Securities carried at fair value through income: | ||||
Securities carried at fair value through income, amortized cost | 10,618 | 10,618 | ||
Securities carried at fair value through income, fair value | 11,077 | 11,554 | ||
Securities carried at fair value through income, net carrying amount | 11,077 | 11,554 | ||
Corporate bonds | ||||
Available for sale: | ||||
Available for sale, amortized cost | 68,293 | 64,313 | ||
Available for sale, gross unrealized gains | 2,056 | 1,762 | ||
Available for sale, gross unrealized losses | (386) | (137) | ||
Available for sale, fair value | 69,963 | 65,938 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 69,963 | 65,938 | ||
U.S. government and agency securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 5,811 | 851 | ||
Available for sale, gross unrealized gains | 3 | 3 | ||
Available for sale, gross unrealized losses | (177) | (5) | ||
Available for sale, fair value | 5,637 | 849 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 5,637 | 849 | ||
Commercial mortgage-backed securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 9,088 | 10,814 | ||
Available for sale, gross unrealized gains | 232 | 266 | ||
Available for sale, gross unrealized losses | (357) | 0 | ||
Available for sale, fair value | 8,963 | 11,080 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 8,963 | 11,080 | ||
Residential mortgage-backed securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 200,265 | 207,742 | ||
Available for sale, gross unrealized gains | 5,738 | 7,441 | ||
Available for sale, gross unrealized losses | (943) | (232) | ||
Available for sale, fair value | 205,060 | 214,951 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 205,060 | 214,951 | ||
Residential collateralized mortgage obligations | ||||
Available for sale: | ||||
Available for sale, amortized cost | 193,730 | 193,865 | ||
Available for sale, gross unrealized gains | 1,491 | 1,739 | ||
Available for sale, gross unrealized losses | (1,415) | (261) | ||
Available for sale, fair value | 193,806 | 195,343 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | 193,806 | 195,343 | ||
Asset-backed securities | ||||
Available for sale: | ||||
Available for sale, amortized cost | 85,938 | 73,451 | ||
Available for sale, gross unrealized gains | 1,593 | 877 | ||
Available for sale, gross unrealized losses | (1) | 0 | ||
Available for sale, fair value | 87,530 | 74,328 | ||
Available for sale, allowance for credit losses | 0 | 0 | ||
Available-for-sale, net carrying amount | $ 87,530 | $ 74,328 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value | ||
Less than 12 Months | $ 335,763 | $ 119,581 |
12 Months or More | 2,043 | 568 |
Total | 337,806 | 120,149 |
Unrealized Loss | ||
Less than 12 Months | (8,876) | (888) |
12 Months or More | (44) | (5) |
Total | (8,920) | (893) |
State and municipal securities | ||
Fair Value | ||
Less than 12 Months | 147,815 | 21,979 |
12 Months or More | 1,520 | 0 |
Total | 149,335 | 21,979 |
Unrealized Loss | ||
Less than 12 Months | (5,601) | (258) |
12 Months or More | (40) | 0 |
Total | (5,641) | (258) |
Fair Value | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Unrealized Loss | ||
Less than 12 Months | 0 | 0 |
12 Months or More | 0 | 0 |
Total | 0 | 0 |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 24,249 | 30,513 |
12 Months or More | 0 | 0 |
Total | 24,249 | 30,513 |
Unrealized Loss | ||
Less than 12 Months | (386) | (137) |
12 Months or More | 0 | 0 |
Total | (386) | (137) |
U.S. government and agency securities | ||
Fair Value | ||
Less than 12 Months | 4,851 | 0 |
12 Months or More | 523 | 568 |
Total | 5,374 | 568 |
Unrealized Loss | ||
Less than 12 Months | (173) | 0 |
12 Months or More | (4) | (5) |
Total | (177) | (5) |
Commercial mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 6,475 | |
12 Months or More | 0 | |
Total | 6,475 | |
Unrealized Loss | ||
Less than 12 Months | (357) | |
12 Months or More | 0 | |
Total | (357) | |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than 12 Months | 54,673 | 23,178 |
12 Months or More | 0 | 0 |
Total | 54,673 | 23,178 |
Unrealized Loss | ||
Less than 12 Months | (943) | (232) |
12 Months or More | 0 | 0 |
Total | (943) | (232) |
Residential collateralized mortgage obligations | ||
Fair Value | ||
Less than 12 Months | 90,832 | 43,911 |
12 Months or More | 0 | 0 |
Total | 90,832 | 43,911 |
Unrealized Loss | ||
Less than 12 Months | (1,415) | (261) |
12 Months or More | 0 | 0 |
Total | (1,415) | $ (261) |
Asset-backed securities | ||
Fair Value | ||
Less than 12 Months | 6,868 | |
12 Months or More | 0 | |
Total | 6,868 | |
Unrealized Loss | ||
Less than 12 Months | (1) | |
12 Months or More | 0 | |
Total | $ (1) |
Securities - Narrative (Details
Securities - Narrative (Details) | Mar. 31, 2021USD ($)security | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) |
Investments, Debt and Equity Securities [Abstract] | |||
Number of securities in an unrealized loss positions (in security) | security | 134 | ||
Held-to-maturity securities, accrued interest | $ 5,600,000 | $ 2,700,000 | |
Held-to-maturity securities past due | $ 0 | $ 0 |
Securities -Allowance for Credi
Securities -Allowance for Credit Losses for Held -to - Maturity Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for credit losses: | ||
Beginning Balance | $ 66 | $ 0 |
Credit loss expense | 0 | 0 |
Impact of adopting ASC 326 | 66 | 96 |
Ending Balance | $ 66 | 96 |
Adjustment | ||
Allowance for credit losses: | ||
Beginning Balance | 96 | |
Impact of adopting ASC 326 | $ 96 |
Securities - Proceeds from Sale
Securities - Proceeds from Sales of Securities Available for Sale and Gross Gains (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 40,493 | $ 22,375 |
Gross realized gains | 1,700 | 103 |
Gross realized losses | $ (32) | $ (49) |
Securities - Contractual Maturi
Securities - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 12,857 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 25,192 | |
Due after ten years | 0 | |
Held to maturity, amortized cost | 38,049 | |
Fair Value | ||
Due in one year or less | 12,862 | |
Due after one year through five years | 0 | |
Due after five years through ten years | 27,938 | |
Due after ten years | 0 | |
Held to maturity, fair value | 40,800 | $ 41,205 |
Amortized Cost | ||
Due in one year or less | 4,725 | |
Due after one year through five years | 52,044 | |
Due after five years through ten years | 111,175 | |
Due after ten years | 307,610 | |
Available for sale, amortized cost | 964,575 | 971,595 |
Fair Value | ||
Due in one year or less | 4,772 | |
Due after one year through five years | 56,192 | |
Due after five years through ten years | 113,565 | |
Due after ten years | 310,244 | |
Available for sale, fair value | 980,132 | 1,004,674 |
Commercial mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 9,088 | |
Available for sale, amortized cost | 9,088 | 10,814 |
Fair Value | ||
Without single maturity date | 8,963 | |
Available for sale, fair value | 8,963 | 11,080 |
Residential mortgage-backed securities | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 200,265 | |
Available for sale, amortized cost | 200,265 | 207,742 |
Fair Value | ||
Without single maturity date | 205,060 | |
Available for sale, fair value | 205,060 | 214,951 |
Residential collateralized mortgage obligations | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 193,730 | |
Available for sale, amortized cost | 193,730 | 193,865 |
Fair Value | ||
Without single maturity date | 193,806 | |
Available for sale, fair value | 193,806 | 195,343 |
Asset-backed securities | ||
Amortized Cost | ||
Without single maturity date | 0 | |
Fair Value | ||
Without single maturity date | 0 | |
Amortized Cost | ||
Without single maturity date | 85,938 | |
Available for sale, amortized cost | 85,938 | 73,451 |
Fair Value | ||
Without single maturity date | 87,530 | |
Available for sale, fair value | $ 87,530 | $ 74,328 |
Securities - Securities Pledged
Securities - Securities Pledged as Collateral (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Carrying value of securities pledged to secure public deposits | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities pledged as collateral | $ 232,179 | $ 289,537 |
Carrying value of securities pledged to repurchase agreements | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Securities pledged as collateral | $ 9,949 | $ 10,982 |
Loans - Schedule of Loans (Deta
Loans - Schedule of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Loans and Leases Receivable Disclosure [Line Items] | ||||
Loans held for sale | $ 144,950 | $ 191,512 | ||
Total | 5,836,182 | 5,707,762 | ||
Loans accounted for at fair value | 13,578 | 17,011 | ||
Total Loans Receivable | 5,849,760 | 5,724,773 | ||
Less: Allowance for loan losses | 85,136 | 86,670 | $ 56,063 | $ 37,520 |
LHFI, net | 5,764,624 | 5,638,103 | ||
Net deferred loan fees | 15,900 | 13,700 | ||
Paycheck Protection Program | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 584,100 | 546,500 | ||
Net deferred loan fees | 11,500 | |||
Real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 2,894,060 | 2,787,908 | ||
Total Loans Receivable | 2,907,638 | 2,804,919 | ||
Real estate | Commercial real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 1,441,071 | 1,370,928 | ||
Loans accounted for at fair value | 13,600 | 17,000 | ||
Total Loans Receivable | 1,454,649 | 1,387,939 | ||
Less: Allowance for loan losses | 18,397 | 15,430 | 9,254 | 10,013 |
Real estate | Construction/land/land development | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 548,236 | 531,860 | ||
Total Loans Receivable | 548,236 | 531,860 | ||
Less: Allowance for loan losses | 7,389 | 8,191 | 5,054 | 3,711 |
Real estate | Residential real estate | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 904,753 | 885,120 | ||
Total Loans Receivable | 904,753 | 885,120 | ||
Less: Allowance for loan losses | 8,294 | 9,418 | 4,495 | 6,332 |
Commercial and industrial | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 1,834,498 | 1,817,862 | ||
Total Loans Receivable | 1,834,498 | 1,817,862 | ||
Less: Allowance for loan losses | 49,342 | 51,857 | 35,823 | 16,960 |
Mortgage warehouse lines of credit | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 1,090,347 | 1,084,001 | ||
Total Loans Receivable | 1,090,347 | 1,084,001 | ||
Less: Allowance for loan losses | 923 | 856 | 779 | 262 |
Consumer | ||||
Loans and Leases Receivable Disclosure [Line Items] | ||||
Total | 17,277 | 17,991 | ||
Total Loans Receivable | 17,277 | 17,991 | ||
Less: Allowance for loan losses | $ 791 | $ 918 | $ 658 | $ 242 |
Loans - Narrative (Details)
Loans - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2021USD ($)loan | Mar. 31, 2020USD ($)loan | Dec. 31, 2020USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment at fair value | $ 13,578,000 | $ 17,011,000 | |
Loans held for investment | 5,836,182,000 | 5,707,762,000 | |
Net deferred loan fees | 15,900,000 | 13,700,000 | |
Decline in total collective reserves | 1,600,000 | ||
Increase (decrease) related to qualitative factors across risk pools | (1,100,000) | ||
Provision expense | $ 11,200,000 | ||
Provision expense as a result of COVID-19 due to effects of individually evaluated loans | $ 6,000,000 | ||
Nonaccrual mortgage loans held for sale recorded at fair value | $ 963,000 | $ 681,000 | |
Number of loans in COVID-19 related forbearance | loan | 24 | 49 | |
Loans in COVID-19 related forbearance | $ 5,300,000 | $ 97,700,000 | |
Number of loans that defaulted | loan | 0 | 2 | |
Paycheck Protection Program | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $ 584,100,000 | 546,500,000 | |
Net deferred loan fees | 11,500,000 | ||
Nonperforming Financial Instruments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross interest income that would have been recorded | 341,000 | $ 354,000 | |
Interest income | 0 | 0 | |
Outstanding principal balance | 2,300,000 | ||
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Charge-off as a result of COVID-19 | 732,000 | ||
Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | 2,894,060,000 | 2,787,908,000 | |
Real estate | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment at fair value | 13,600,000 | 17,000,000 | |
Loans held for investment | 1,441,071,000 | 1,370,928,000 | |
Increase in credit allowance related to individually impaired loans | 3,000,000 | ||
Commercial Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment | $ 1,834,498,000 | $ 1,817,862,000 | |
Number of significant loan write-offs | loan | 6 | ||
Charge-off as a result of COVID-19 | $ 2,800,000 | ||
Number of loan relationships | loan | 4 | ||
Provision expense | 5,400,000 | ||
Provision expense as a result of COVID-19 due to effects of individually evaluated loans | $ 3,000,000 |
Loans - Loans by Credit Quality
Loans - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | $ 5,836,182 | $ 5,707,762 | |
Total Loans Receivable | 5,849,760 | 5,724,773 | |
Charge-offs | 3,027 | $ 1,425 | |
Total, Current period gross recoveries | 133 | 324 | |
Loans at fair value | 13,578 | 17,011 | |
Real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 2,894,060 | 2,787,908 | |
Total Loans Receivable | 2,907,638 | 2,804,919 | |
Real estate | Commercial real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 136,498 | ||
2020 | 397,652 | 396,947 | |
2019 | 292,402 | 292,185 | |
2018 | 293,609 | 321,165 | |
2017 | 170,451 | 181,722 | |
2016 | 47,608 | ||
Prior | 126,972 | 109,743 | |
Revolving Loans Amortized Cost Basis | 23,487 | 21,558 | |
Total | 1,441,071 | 1,370,928 | |
Total Loans Receivable | 1,454,649 | 1,387,939 | |
2021, Current period gross charge-offs | 0 | ||
2020, Current period gross charge-offs | 0 | 0 | |
2019, Current period gross charge-offs | 0 | 0 | |
2018, Current period gross charge-offs | 0 | 0 | |
2017, Current period gross charge-offs | 2 | 3,622 | |
2016, Current period gross charge-offs | 199 | ||
Prior, Current period gross charge-offs | 26 | 1,103 | |
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 0 | 0 | |
Charge-offs | 28 | 172 | 4,924 |
2021, Current period gross recoveries | 0 | ||
2020, Current period gross recoveries | 0 | 0 | |
2019, Current period gross recoveries | 0 | 0 | |
2018, Current period gross recoveries | 0 | 0 | |
2017, Current period gross recoveries | 0 | 0 | |
2016, Current period gross recoveries | 0 | ||
Prior, Current period gross recoveries | 3 | 19 | |
Revolving Loans Amortized Cost Basis, Current period gross recoveries | 0 | 0 | |
Total, Current period gross recoveries | 3 | 2 | 19 |
2021, Current period net charge-offs (recoveries) | 0 | ||
2020, Current period net charge-offs (recoveries) | 0 | 0 | |
2019, Current period net charge-offs (recoveries) | 0 | 0 | |
2018, Current period net charge-offs (recoveries) | 0 | 0 | |
2017, Current period net charge-offs (recoveries) | 2 | 3,622 | |
2016, Current period net charge-offs (recoveries) | 199 | ||
Prior, Current period net charge-offs (recoveries) | 23 | 1,084 | |
Revolving Loans Amortized Cost Basis, Current period net charge-offs (recoveries) | 0 | 0 | |
Total, Current period net charge-offs (recoveries) | 25 | 4,905 | |
Loans at fair value | 13,600 | 17,000 | |
Real estate | Commercial real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 130,211 | ||
2020 | 394,179 | 393,317 | |
2019 | 290,815 | 290,394 | |
2018 | 289,673 | 312,051 | |
2017 | 148,317 | 154,445 | |
2016 | 46,132 | ||
Prior | 124,443 | 106,994 | |
Revolving Loans Amortized Cost Basis | 21,263 | 18,419 | |
Total | 1,398,901 | 1,321,752 | |
Real estate | Commercial real estate | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 4,383 | ||
2020 | 0 | 824 | |
2019 | 0 | 113 | |
2018 | 1,154 | 2,410 | |
2017 | 20,707 | 20,691 | |
2016 | 0 | ||
Prior | 0 | 1,656 | |
Revolving Loans Amortized Cost Basis | 2,110 | 2,145 | |
Total | 28,354 | 27,839 | |
Real estate | Commercial real estate | Classified | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 1,904 | ||
2020 | 3,473 | 2,806 | |
2019 | 1,587 | 1,678 | |
2018 | 2,782 | 6,704 | |
2017 | 1,427 | 6,586 | |
2016 | 1,476 | ||
Prior | 2,529 | 1,093 | |
Revolving Loans Amortized Cost Basis | 114 | 994 | |
Total | 13,816 | 21,337 | |
Real estate | Construction/land/land development | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 41,012 | ||
2020 | 193,469 | 189,634 | |
2019 | 154,193 | 162,513 | |
2018 | 120,786 | 138,861 | |
2017 | 15,227 | 15,417 | |
2016 | 1,955 | ||
Prior | 2,796 | 1,325 | |
Revolving Loans Amortized Cost Basis | 20,753 | 22,155 | |
Total | 548,236 | 531,860 | |
Total Loans Receivable | 548,236 | 531,860 | |
2021, Current period gross charge-offs | 0 | ||
2020, Current period gross charge-offs | 0 | 0 | |
2019, Current period gross charge-offs | 0 | 0 | |
2018, Current period gross charge-offs | 0 | 0 | |
2017, Current period gross charge-offs | 0 | 0 | |
2016, Current period gross charge-offs | 0 | ||
Prior, Current period gross charge-offs | 0 | 0 | |
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 0 | 0 | |
Charge-offs | 0 | 0 | 0 |
2021, Current period gross recoveries | 0 | ||
2020, Current period gross recoveries | 0 | 0 | |
2019, Current period gross recoveries | 0 | 0 | |
2018, Current period gross recoveries | 0 | 0 | |
2017, Current period gross recoveries | 0 | 0 | |
2016, Current period gross recoveries | 0 | ||
Prior, Current period gross recoveries | 0 | 1 | |
Revolving Loans Amortized Cost Basis, Current period gross recoveries | 0 | 0 | |
Total, Current period gross recoveries | 0 | 0 | 1 |
2021, Current period net charge-offs (recoveries) | 0 | ||
2020, Current period net charge-offs (recoveries) | 0 | 0 | |
2019, Current period net charge-offs (recoveries) | 0 | 0 | |
2018, Current period net charge-offs (recoveries) | 0 | 0 | |
2017, Current period net charge-offs (recoveries) | 0 | 0 | |
2016, Current period net charge-offs (recoveries) | 0 | ||
Prior, Current period net charge-offs (recoveries) | 0 | (1) | |
Revolving Loans Amortized Cost Basis, Current period net charge-offs (recoveries) | 0 | 0 | |
Total, Current period net charge-offs (recoveries) | 0 | (1) | |
Real estate | Construction/land/land development | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 40,706 | ||
2020 | 193,152 | 189,311 | |
2019 | 142,872 | 150,281 | |
2018 | 119,935 | 138,000 | |
2017 | 12,716 | 12,907 | |
2016 | 1,812 | ||
Prior | 2,505 | 1,157 | |
Revolving Loans Amortized Cost Basis | 17,490 | 18,892 | |
Total Loans Receivable | 529,376 | 512,360 | |
Real estate | Construction/land/land development | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 0 | ||
2020 | 0 | 323 | |
2019 | 10,242 | 10,421 | |
2018 | 135 | 135 | |
2017 | 1,003 | 1,003 | |
2016 | 0 | ||
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Total Loans Receivable | 11,380 | 11,882 | |
Real estate | Construction/land/land development | Classified | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 306 | ||
2020 | 317 | 0 | |
2019 | 1,079 | 1,811 | |
2018 | 716 | 726 | |
2017 | 1,508 | 1,507 | |
2016 | 143 | ||
Prior | 291 | 168 | |
Revolving Loans Amortized Cost Basis | 3,263 | 3,263 | |
Total Loans Receivable | 7,480 | 7,618 | |
Real estate | Residential real estate | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 55,174 | ||
2020 | 356,202 | 369,697 | |
2019 | 120,760 | 145,771 | |
2018 | 117,676 | 106,461 | |
2017 | 104,884 | 104,658 | |
2016 | 52,153 | ||
Prior | 96,909 | 52,430 | |
Revolving Loans Amortized Cost Basis | 53,148 | 53,950 | |
Total | 904,753 | 885,120 | |
Total Loans Receivable | 904,753 | 885,120 | |
2021, Current period gross charge-offs | 0 | ||
2020, Current period gross charge-offs | 0 | 94 | |
2019, Current period gross charge-offs | 0 | 271 | |
2018, Current period gross charge-offs | 0 | 0 | |
2017, Current period gross charge-offs | 0 | 283 | |
2016, Current period gross charge-offs | 0 | ||
Prior, Current period gross charge-offs | 0 | 44 | |
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 0 | 0 | |
Charge-offs | 0 | 49 | 692 |
2021, Current period gross recoveries | 0 | ||
2020, Current period gross recoveries | 0 | 0 | |
2019, Current period gross recoveries | 0 | 0 | |
2018, Current period gross recoveries | 0 | 0 | |
2017, Current period gross recoveries | 0 | 0 | |
2016, Current period gross recoveries | 0 | ||
Prior, Current period gross recoveries | 9 | 202 | |
Revolving Loans Amortized Cost Basis, Current period gross recoveries | 0 | 0 | |
Total, Current period gross recoveries | 9 | 149 | 202 |
2021, Current period net charge-offs (recoveries) | 0 | ||
2020, Current period net charge-offs (recoveries) | 0 | 94 | |
2019, Current period net charge-offs (recoveries) | 0 | 271 | |
2018, Current period net charge-offs (recoveries) | 0 | 0 | |
2017, Current period net charge-offs (recoveries) | 0 | 283 | |
2016, Current period net charge-offs (recoveries) | 0 | ||
Prior, Current period net charge-offs (recoveries) | (9) | (158) | |
Revolving Loans Amortized Cost Basis, Current period net charge-offs (recoveries) | 0 | 0 | |
Total, Current period net charge-offs (recoveries) | (9) | 490 | |
Real estate | Residential real estate | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 53,633 | ||
2020 | 354,359 | 367,652 | |
2019 | 118,406 | 143,368 | |
2018 | 114,721 | 103,450 | |
2017 | 101,869 | 102,272 | |
2016 | 41,522 | ||
Prior | 89,887 | 50,094 | |
Revolving Loans Amortized Cost Basis | 52,920 | 53,854 | |
Total Loans Receivable | 885,795 | 862,212 | |
Real estate | Residential real estate | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 1,447 | ||
2020 | 185 | 188 | |
2019 | 0 | 0 | |
2018 | 0 | 29 | |
2017 | 801 | 1,875 | |
2016 | 9,287 | ||
Prior | 196 | 803 | |
Revolving Loans Amortized Cost Basis | 0 | 0 | |
Total Loans Receivable | 2,629 | 12,182 | |
Real estate | Residential real estate | Classified | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 94 | ||
2020 | 1,658 | 1,857 | |
2019 | 2,354 | 2,403 | |
2018 | 2,955 | 2,982 | |
2017 | 2,214 | 511 | |
2016 | 1,344 | ||
Prior | 6,826 | 1,533 | |
Revolving Loans Amortized Cost Basis | 228 | 96 | |
Total Loans Receivable | 16,329 | 10,726 | |
Commercial and industrial | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 259,468 | ||
2020 | 706,855 | 862,076 | |
2019 | 151,853 | 168,031 | |
2018 | 134,997 | 142,389 | |
2017 | 27,746 | 35,286 | |
2016 | 15,877 | ||
Prior | 58,409 | 48,514 | |
Revolving Loans Amortized Cost Basis | 495,170 | 545,689 | |
Total | 1,834,498 | 1,817,862 | |
Total Loans Receivable | 1,834,498 | 1,817,862 | |
2021, Current period gross charge-offs | 0 | ||
2020, Current period gross charge-offs | 4 | 189 | |
2019, Current period gross charge-offs | 54 | 204 | |
2018, Current period gross charge-offs | 0 | 87 | |
2017, Current period gross charge-offs | 362 | 121 | |
2016, Current period gross charge-offs | 3,228 | ||
Prior, Current period gross charge-offs | 1,282 | 469 | |
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 1,253 | 2,404 | |
Charge-offs | 2,955 | 1,180 | 6,702 |
2021, Current period gross recoveries | 0 | ||
2020, Current period gross recoveries | 0 | 0 | |
2019, Current period gross recoveries | 13 | 42 | |
2018, Current period gross recoveries | 0 | 20 | |
2017, Current period gross recoveries | 11 | 81 | |
2016, Current period gross recoveries | 185 | ||
Prior, Current period gross recoveries | 76 | 112 | |
Revolving Loans Amortized Cost Basis, Current period gross recoveries | 8 | 582 | |
Total, Current period gross recoveries | 108 | 169 | 1,022 |
2021, Current period net charge-offs (recoveries) | 0 | ||
2020, Current period net charge-offs (recoveries) | 4 | 189 | |
2019, Current period net charge-offs (recoveries) | 41 | 162 | |
2018, Current period net charge-offs (recoveries) | 0 | 67 | |
2017, Current period net charge-offs (recoveries) | 351 | 40 | |
2016, Current period net charge-offs (recoveries) | 3,043 | ||
Prior, Current period net charge-offs (recoveries) | 1,206 | 357 | |
Revolving Loans Amortized Cost Basis, Current period net charge-offs (recoveries) | 1,245 | 1,822 | |
Total, Current period net charge-offs (recoveries) | 2,847 | 5,680 | |
Commercial and industrial | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 254,777 | ||
2020 | 700,996 | 851,780 | |
2019 | 137,792 | 153,722 | |
2018 | 103,342 | 110,092 | |
2017 | 22,396 | 29,413 | |
2016 | 9,927 | ||
Prior | 33,753 | 26,964 | |
Revolving Loans Amortized Cost Basis | 471,812 | 511,220 | |
Total Loans Receivable | 1,724,868 | 1,693,118 | |
Commercial and industrial | Special mention | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 217 | ||
2020 | 4,631 | 4,860 | |
2019 | 2,275 | 2,059 | |
2018 | 25,902 | 26,438 | |
2017 | 408 | 423 | |
2016 | 0 | ||
Prior | 14,458 | 14,843 | |
Revolving Loans Amortized Cost Basis | 4,125 | 8,077 | |
Total Loans Receivable | 52,016 | 56,700 | |
Commercial and industrial | Classified | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 4,474 | ||
2020 | 1,228 | 5,436 | |
2019 | 11,786 | 12,250 | |
2018 | 5,753 | 5,859 | |
2017 | 4,942 | 5,450 | |
2016 | 5,950 | ||
Prior | 10,198 | 6,707 | |
Revolving Loans Amortized Cost Basis | 19,233 | 26,392 | |
Total Loans Receivable | 57,614 | 68,044 | |
Mortgage warehouse lines of credit | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Total | 1,090,347 | 1,084,001 | |
Total Loans Receivable | 1,090,347 | 1,084,001 | |
2021, Current period gross charge-offs | 0 | ||
2020, Current period gross charge-offs | 0 | 0 | |
2019, Current period gross charge-offs | 0 | 0 | |
2018, Current period gross charge-offs | 0 | 0 | |
2017, Current period gross charge-offs | 0 | 0 | |
2016, Current period gross charge-offs | 0 | ||
Prior, Current period gross charge-offs | 0 | 0 | |
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 0 | 0 | |
Charge-offs | 0 | 0 | 0 |
2021, Current period gross recoveries | 0 | ||
2020, Current period gross recoveries | 0 | 0 | |
2019, Current period gross recoveries | 0 | 0 | |
2018, Current period gross recoveries | 0 | 0 | |
2017, Current period gross recoveries | 0 | 0 | |
2016, Current period gross recoveries | 0 | ||
Prior, Current period gross recoveries | 0 | 0 | |
Revolving Loans Amortized Cost Basis, Current period gross recoveries | 0 | 0 | |
Total, Current period gross recoveries | 0 | 0 | 0 |
2021, Current period net charge-offs (recoveries) | 0 | ||
2020, Current period net charge-offs (recoveries) | 0 | 0 | |
2019, Current period net charge-offs (recoveries) | 0 | 0 | |
2018, Current period net charge-offs (recoveries) | 0 | 0 | |
2017, Current period net charge-offs (recoveries) | 0 | 0 | |
2016, Current period net charge-offs (recoveries) | 0 | ||
Prior, Current period net charge-offs (recoveries) | 0 | 0 | |
Revolving Loans Amortized Cost Basis, Current period net charge-offs (recoveries) | 0 | 0 | |
Total, Current period net charge-offs (recoveries) | 0 | 0 | |
Mortgage warehouse lines of credit | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 0 | ||
2020 | 0 | 0 | |
2019 | 0 | 0 | |
2018 | 0 | 0 | |
2017 | 0 | 0 | |
2016 | 0 | ||
Prior | 0 | 0 | |
Revolving Loans Amortized Cost Basis | 1,090,347 | 1,084,001 | |
Total Loans Receivable | 1,090,347 | 1,084,001 | |
Consumer | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 1,858 | ||
2020 | 5,505 | 6,730 | |
2019 | 2,665 | 3,326 | |
2018 | 1,277 | 1,578 | |
2017 | 154 | 203 | |
2016 | 122 | ||
Prior | 153 | 84 | |
Revolving Loans Amortized Cost Basis | 5,665 | 5,948 | |
Total | 17,277 | 17,991 | |
Total Loans Receivable | 17,277 | 17,991 | |
2021, Current period gross charge-offs | 0 | ||
2020, Current period gross charge-offs | 0 | 0 | |
2019, Current period gross charge-offs | 22 | 39 | |
2018, Current period gross charge-offs | 2 | 23 | |
2017, Current period gross charge-offs | 0 | 8 | |
2016, Current period gross charge-offs | 0 | ||
Prior, Current period gross charge-offs | 6 | 4 | |
Revolving Loans Amortized Cost Basis, Current period gross charge-offs | 14 | 2 | |
Charge-offs | 44 | 24 | 76 |
2021, Current period gross recoveries | 0 | ||
2020, Current period gross recoveries | 0 | 0 | |
2019, Current period gross recoveries | 0 | 0 | |
2018, Current period gross recoveries | 0 | 1 | |
2017, Current period gross recoveries | 0 | 7 | |
2016, Current period gross recoveries | 5 | ||
Prior, Current period gross recoveries | 13 | 7 | |
Revolving Loans Amortized Cost Basis, Current period gross recoveries | 0 | 4 | |
Total, Current period gross recoveries | 13 | $ 4 | 24 |
2021, Current period net charge-offs (recoveries) | 0 | ||
2020, Current period net charge-offs (recoveries) | 0 | 0 | |
2019, Current period net charge-offs (recoveries) | 22 | 39 | |
2018, Current period net charge-offs (recoveries) | 2 | 22 | |
2017, Current period net charge-offs (recoveries) | 0 | 1 | |
2016, Current period net charge-offs (recoveries) | (5) | ||
Prior, Current period net charge-offs (recoveries) | (7) | (3) | |
Revolving Loans Amortized Cost Basis, Current period net charge-offs (recoveries) | 14 | (2) | |
Total, Current period net charge-offs (recoveries) | 31 | 52 | |
Consumer | Pass | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 1,858 | ||
2020 | 5,477 | 6,702 | |
2019 | 2,656 | 3,318 | |
2018 | 1,276 | 1,578 | |
2017 | 154 | 203 | |
2016 | 116 | ||
Prior | 148 | 83 | |
Revolving Loans Amortized Cost Basis | 5,652 | 5,935 | |
Total Loans Receivable | 17,221 | 17,935 | |
Consumer | Classified | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
2021 | 0 | ||
2020 | 28 | 28 | |
2019 | 9 | 8 | |
2018 | 1 | 0 | |
2017 | 0 | 0 | |
2016 | 6 | ||
Prior | 5 | 1 | |
Revolving Loans Amortized Cost Basis | 13 | 13 | |
Total Loans Receivable | $ 56 | $ 56 |
Loans - Loan Portfolio Aging An
Loans - Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 26,574 | $ 25,763 |
Current Loans | 5,823,186 | 5,699,010 |
Total Loans Receivable | 5,849,760 | 5,724,773 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Loans at fair value | 13,578 | 17,011 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,448 | 6,031 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,780 | 1,241 |
Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 17,346 | 18,491 |
Real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13,732 | 11,214 |
Current Loans | 2,893,906 | 2,793,705 |
Total Loans Receivable | 2,907,638 | 2,804,919 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,599 | 5,215 |
Real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,614 | 135 |
Real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,519 | 5,864 |
Real estate | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,626 | 4,244 |
Current Loans | 1,453,023 | 1,383,695 |
Total Loans Receivable | 1,454,649 | 1,387,939 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Loans at fair value | 13,600 | 17,000 |
Real estate | Commercial real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,055 | 1,072 |
Real estate | Commercial real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Real estate | Commercial real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 571 | 3,172 |
Real estate | Construction/land/land development | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,342 | 2,698 |
Current Loans | 545,894 | 529,162 |
Total Loans Receivable | 548,236 | 531,860 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Construction/land/land development | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 257 | 369 |
Real estate | Construction/land/land development | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 253 | 1 |
Real estate | Construction/land/land development | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,832 | 2,328 |
Real estate | Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,764 | 4,272 |
Current Loans | 894,989 | 880,848 |
Total Loans Receivable | 904,753 | 885,120 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Real estate | Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,287 | 3,774 |
Real estate | Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,361 | 134 |
Real estate | Residential real estate | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,116 | 364 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 12,781 | 14,425 |
Current Loans | 1,821,717 | 1,803,437 |
Total Loans Receivable | 1,834,498 | 1,817,862 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 791 | 703 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 165 | 1,097 |
Commercial and industrial | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 11,825 | 12,625 |
Mortgage warehouse lines of credit | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Current Loans | 1,090,347 | 1,084,001 |
Total Loans Receivable | 1,090,347 | 1,084,001 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Mortgage warehouse lines of credit | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Mortgage warehouse lines of credit | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Mortgage warehouse lines of credit | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 61 | 124 |
Current Loans | 17,216 | 17,867 |
Total Loans Receivable | 17,277 | 17,991 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 58 | 113 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 9 |
Consumer | Loans Past Due 90 Days or More | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 2 | $ 2 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 86,670 | $ 37,520 | $ 37,520 |
Charge-offs | 3,027 | 1,425 | |
Recoveries | 133 | 324 | |
Provision (Benefit) | 1,360 | 18,396 | |
Ending Balance | 85,136 | 56,063 | 86,670 |
Accrued interest | 20,200 | 12,600 | |
Provision for credit losses | 1,400 | 18,500 | |
Provision (release) for off-balance sheet commitments | 52 | 135 | |
Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 1,248 | 1,248 | |
Real estate | Commercial real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 15,430 | 10,013 | 10,013 |
Charge-offs | 28 | 172 | 4,924 |
Recoveries | 3 | 2 | 19 |
Provision (Benefit) | 2,992 | 4,463 | |
Ending Balance | 18,397 | 9,254 | 15,430 |
Real estate | Commercial real estate | Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | (5,052) | (5,052) | |
Real estate | Construction/land/land development | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 8,191 | 3,711 | 3,711 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 1 |
Provision (Benefit) | (802) | 202 | |
Ending Balance | 7,389 | 5,054 | 8,191 |
Real estate | Construction/land/land development | Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 1,141 | 1,141 | |
Real estate | Residential real estate | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 9,418 | 6,332 | 6,332 |
Charge-offs | 0 | 49 | 692 |
Recoveries | 9 | 149 | 202 |
Provision (Benefit) | (1,133) | 589 | |
Ending Balance | 8,294 | 4,495 | 9,418 |
Real estate | Residential real estate | Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | (2,526) | (2,526) | |
Commercial and industrial | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 51,857 | 16,960 | 16,960 |
Charge-offs | 2,955 | 1,180 | 6,702 |
Recoveries | 108 | 169 | 1,022 |
Provision (Benefit) | 332 | 12,578 | |
Ending Balance | 49,342 | 35,823 | 51,857 |
Commercial and industrial | Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 7,296 | 7,296 | |
Mortgage warehouse lines of credit | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 856 | 262 | 262 |
Charge-offs | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 |
Provision (Benefit) | 67 | 488 | |
Ending Balance | 923 | 779 | 856 |
Mortgage warehouse lines of credit | Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 29 | 29 | |
Consumer | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | 918 | 242 | 242 |
Charge-offs | 44 | 24 | 76 |
Recoveries | 13 | 4 | 24 |
Provision (Benefit) | (96) | 76 | |
Ending Balance | $ 791 | 658 | 918 |
Consumer | Adjustment | |||
Allowance for Loan and Lease Losses [Roll Forward] | |||
Beginning Balance | $ 360 | $ 360 |
Loans - Recorded Investment in
Loans - Recorded Investment in Loans and Allowance for Credit Losses by Loss Estimation Methodology (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | $ 5,836,182 | $ 5,707,762 | ||
Loans, allowance for credit losses | 85,136 | 86,670 | $ 56,063 | $ 37,520 |
Loans at fair value | 13,578 | 17,011 | ||
Probability of Default | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Collectively evaluated, probability of default | 5,800,341 | 5,679,234 | ||
Loan balance collectively evaluated | 76,838 | 78,429 | ||
Fair Value of Collateral | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 20,555 | 10,955 | ||
Loan balance individually evaluated | 3,334 | 2,360 | ||
Discounted Cash Flow | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 15,286 | 17,573 | ||
Loan balance individually evaluated | 4,964 | 5,881 | ||
Real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | 2,894,060 | 2,787,908 | ||
Real estate | Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | 1,441,071 | 1,370,928 | ||
Loans, allowance for credit losses | 18,397 | 15,430 | 9,254 | 10,013 |
Loans at fair value | 13,600 | 17,000 | ||
Real estate | Commercial real estate | Probability of Default | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Collectively evaluated, probability of default | 1,438,054 | 1,365,284 | ||
Loan balance collectively evaluated | 18,388 | 14,896 | ||
Real estate | Commercial real estate | Fair Value of Collateral | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 571 | 3,173 | ||
Loan balance individually evaluated | 0 | 525 | ||
Real estate | Commercial real estate | Discounted Cash Flow | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 2,446 | 2,471 | ||
Loan balance individually evaluated | 9 | 9 | ||
Real estate | Construction/land/land development | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | 548,236 | 531,860 | ||
Loans, allowance for credit losses | 7,389 | 8,191 | 5,054 | 3,711 |
Real estate | Construction/land/land development | Probability of Default | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Collectively evaluated, probability of default | 545,796 | 528,894 | ||
Loan balance collectively evaluated | 7,258 | 8,062 | ||
Real estate | Construction/land/land development | Fair Value of Collateral | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 2,112 | 2,621 | ||
Loan balance individually evaluated | 131 | 128 | ||
Real estate | Construction/land/land development | Discounted Cash Flow | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 328 | 345 | ||
Loan balance individually evaluated | 0 | 1 | ||
Real estate | Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | 904,753 | 885,120 | ||
Loans, allowance for credit losses | 8,294 | 9,418 | 4,495 | 6,332 |
Real estate | Residential real estate | Probability of Default | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Collectively evaluated, probability of default | 894,416 | 879,015 | ||
Loan balance collectively evaluated | 7,992 | 8,983 | ||
Real estate | Residential real estate | Fair Value of Collateral | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 8,482 | 2,009 | ||
Loan balance individually evaluated | 0 | 0 | ||
Real estate | Residential real estate | Discounted Cash Flow | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 1,855 | 4,096 | ||
Loan balance individually evaluated | 302 | 435 | ||
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | 1,834,498 | 1,817,862 | ||
Loans, allowance for credit losses | 49,342 | 51,857 | 35,823 | 16,960 |
Commercial and industrial | Probability of Default | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Collectively evaluated, probability of default | 1,814,453 | 1,804,049 | ||
Loan balance collectively evaluated | 41,488 | 44,714 | ||
Commercial and industrial | Fair Value of Collateral | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 9,388 | 3,152 | ||
Loan balance individually evaluated | 3,201 | 1,707 | ||
Commercial and industrial | Discounted Cash Flow | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 10,657 | 10,661 | ||
Loan balance individually evaluated | 4,653 | 5,436 | ||
Mortgage warehouse lines of credit | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | 1,090,347 | 1,084,001 | ||
Loans, allowance for credit losses | 923 | 856 | 779 | 262 |
Mortgage warehouse lines of credit | Probability of Default | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Collectively evaluated, probability of default | 1,090,347 | 1,084,001 | ||
Loan balance collectively evaluated | 923 | 856 | ||
Mortgage warehouse lines of credit | Fair Value of Collateral | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 0 | 0 | ||
Loan balance individually evaluated | 0 | 0 | ||
Mortgage warehouse lines of credit | Discounted Cash Flow | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 0 | 0 | ||
Loan balance individually evaluated | 0 | 0 | ||
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Total | 17,277 | 17,991 | ||
Loans, allowance for credit losses | 791 | 918 | $ 658 | $ 242 |
Consumer | Probability of Default | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Collectively evaluated, probability of default | 17,275 | 17,991 | ||
Loan balance collectively evaluated | 789 | 918 | ||
Consumer | Fair Value of Collateral | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 2 | 0 | ||
Loan balance individually evaluated | 2 | 0 | ||
Consumer | Discounted Cash Flow | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Loan balance individually evaluated | 0 | 0 | ||
Loan balance individually evaluated | $ 0 | $ 0 |
Loans - Non Performing (Nonaccr
Loans - Non Performing (Nonaccrual) Loans Held For Investment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | $ 10,944 | $ 4,890 |
Nonaccrual | 33,358 | 26,149 |
Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 10,868 | 4,808 |
Nonaccrual | 14,208 | 13,196 |
Real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 1,012 | 1,053 |
Nonaccrual | 1,085 | 3,704 |
Real estate | Construction/land/land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 955 | 1,319 |
Nonaccrual | 2,431 | 2,962 |
Real estate | Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 8,901 | 2,436 |
Nonaccrual | 10,692 | 6,530 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 76 | 82 |
Nonaccrual | 19,094 | 12,897 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual With No Allowance for Credit Loss | 0 | 0 |
Nonaccrual | $ 56 | $ 56 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Loans classified as troubled debt restructurings | $ 8,752 | $ 8,985 |
Nonaccrual TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Loans classified as troubled debt restructurings | 5,515 | 5,671 |
Performing TDRs | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Loans classified as troubled debt restructurings | $ 3,237 | $ 3,314 |
Loans - Pre-Modification Balanc
Loans - Pre-Modification Balances of TDR (Details) - Nonperforming Financial Instruments $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)loan | |
Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans Restructured | loan | 2 |
Pre-Modification Recorded Balance | $ 128 |
Total Modifications | $ 127 |
Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans Restructured | loan | 2 |
Pre-Modification Recorded Balance | $ 128 |
Total Modifications | 127 |
Term Concessions | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Modifications | 127 |
Term Concessions | Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Modifications | 127 |
Interest Rate Concessions | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Modifications | 0 |
Interest Rate Concessions | Consumer | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Modifications | 0 |
Combination of Term and Rate Concessions | Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Total Modifications | 0 |
Combination of Term and Rate Concessions | Consumer | |
Financing Receivable, Troubled Debt Restructuring [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, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | $ 980,132 | $ 1,004,674 | ||
Securities carried at fair value through income | 11,077 | 11,554 | ||
Loans held for sale | 82,706 | 136,026 | ||
Loans at fair value | 13,578 | 17,011 | ||
Mortgage servicing rights | 17,552 | 13,660 | $ 16,122 | $ 20,697 |
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 980,132 | 1,004,674 | ||
Securities carried at fair value through income | 11,077 | 11,554 | ||
Loans held for sale | 82,706 | 136,026 | ||
Loans at fair value | 13,578 | 17,011 | ||
Mortgage servicing rights | 17,552 | 13,660 | ||
Other assets - derivatives | 17,677 | 23,694 | ||
Total recurring fair value measurements - assets | 1,122,722 | 1,206,619 | ||
Other liabilities - derivatives | (15,432) | (23,020) | ||
Total recurring fair value measurements - liabilities | (15,432) | (23,020) | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
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 | 0 | 0 | ||
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] | ||||
Available for sale | 938,657 | 960,609 | ||
Securities carried at fair value through income | 0 | 0 | ||
Loans held for sale | 82,706 | 136,026 | ||
Loans at fair value | 0 | 0 | ||
Mortgage servicing rights | 0 | 0 | ||
Other assets - derivatives | 17,677 | 23,694 | ||
Total recurring fair value measurements - assets | 1,039,040 | 1,120,329 | ||
Other liabilities - derivatives | (15,432) | (23,020) | ||
Total recurring fair value measurements - liabilities | (15,432) | (23,020) | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 41,475 | 44,065 | ||
Securities carried at fair value through income | 11,077 | 11,554 | ||
Loans held for sale | 0 | 0 | ||
Loans at fair value | 13,578 | 17,011 | ||
Mortgage servicing rights | 17,552 | 13,660 | ||
Other assets - derivatives | 0 | 0 | ||
Total recurring fair value measurements - assets | 83,682 | 86,290 | ||
Other liabilities - derivatives | 0 | 0 | ||
Total recurring fair value measurements - liabilities | 0 | 0 | ||
State and municipal securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 409,173 | 442,185 | ||
Securities carried at fair value through income | 11,077 | 11,554 | ||
State and municipal securities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 442,185 | |||
State and municipal securities | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
State and municipal securities | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 367,698 | 398,120 | ||
State and municipal securities | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 41,475 | 44,065 | ||
Corporate bonds | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 69,963 | 65,938 | ||
Corporate bonds | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 69,963 | 65,938 | ||
Corporate bonds | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Corporate bonds | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 69,963 | 65,938 | ||
Corporate bonds | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
U.S. government agency securities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 5,637 | 849 | ||
U.S. government agency securities | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
U.S. government agency securities | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 5,637 | 849 | ||
U.S. government agency securities | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Commercial mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 8,963 | 11,080 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 8,963 | 11,080 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 8,963 | 11,080 | ||
Commercial mortgage-backed securities | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 205,060 | 214,951 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 205,060 | 214,951 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 205,060 | 214,951 | ||
Residential mortgage-backed securities | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Residential collateralized mortgage obligations | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 193,806 | 195,343 | ||
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 193,806 | 195,343 | ||
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 193,806 | 195,343 | ||
Residential collateralized mortgage obligations | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 87,530 | 74,328 | ||
Asset-backed securities | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 87,530 | 74,328 | ||
Asset-backed securities | Fair Value, Measurements, Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 0 | 0 | ||
Asset-backed securities | Fair Value, Measurements, Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Available for sale | 87,530 | 74,328 | ||
Asset-backed securities | Fair Value, Measurements, Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
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, 2021 | Mar. 31, 2020 | |
Loans at Fair Value | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | $ 17,011 | $ 17,670 |
Loss recognized in AOCI | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Sales | 0 | |
Settlements | (3,374) | (247) |
Balance at end of period | 13,578 | 17,589 |
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 | (59) | 166 |
MSRs | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Balance at beginning of period | 13,660 | 20,697 |
Loss recognized in AOCI | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 1,943 | 653 |
Sales | 0 | |
Settlements | 0 | 0 |
Balance at end of period | 17,552 | 16,122 |
MSRs | Mortgage banking revenue | ||
Changes in Level 3 assets and liabilities measured at fair value on a recurring basis | ||
Gain (loss) recognized in earnings | 1,949 | (5,228) |
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 | 44,065 | 38,173 |
Loss recognized in AOCI | (489) | 160 |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Sales | (1,908) | |
Settlements | (2,101) | 0 |
Balance at end of period | 41,475 | 36,425 |
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 | 11,554 | 11,513 |
Loss recognized in AOCI | 0 | 0 |
Purchases, issuances, sales and settlements: | ||
Originations | 0 | 0 |
Sales | 0 | |
Settlements | 0 | 0 |
Balance at end of period | 11,077 | 12,242 |
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 | $ (477) | $ 729 |
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, 2021 | Dec. 31, 2020 | |
Minimum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Prepayment speeds | 7.78% | 11.82% |
Discount rates | 9.00% | 7.83% |
Maximum | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Prepayment speeds | 35.56% | 37.95% |
Discount rates | 10.50% | 9.09% |
Weighted Average | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Prepayment speeds | 14.47% | 22.08% |
Discount rates | 9.50% | 8.27% |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Difference Between Fair Value and Unpaid Principal Balance (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | $ 107,361,000 | $ 164,591,000 |
Aggregate Unpaid Principal Balance | 104,765,000 | 157,333,000 |
Difference | 2,596,000 | 7,258,000 |
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 | 82,706,000 | 136,026,000 |
Aggregate Unpaid Principal Balance | 80,761,000 | 129,955,000 |
Difference | 1,945,000 | 6,071,000 |
Loans, 90 days or more past due | 681,000 | |
Commercial real estate LHFI | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | 13,578,000 | 17,011,000 |
Aggregate Unpaid Principal Balance | 13,386,000 | 16,760,000 |
Difference | 192,000 | 251,000 |
Securities carried at fair value through income | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Aggregate Fair Value | 11,077,000 | 11,554,000 |
Aggregate Unpaid Principal Balance | 10,618,000 | 10,618,000 |
Difference | 459,000 | 936,000 |
U.S. government agency securities | ||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||
Loans, 90 days or more past due | $ 826,000 | $ 473,000 |
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, 2021 | Mar. 31, 2020 | |
Mortgage banking revenue | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Total fair value option impact on noninterest income | $ (4,125) | $ 1,046 |
Other income | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Total fair value option impact on noninterest income | (536) | 895 |
Other income | Loans at fair value held for investment | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Total fair value option impact on noninterest income | (59) | 166 |
Other income | Securities carried at fair value through income | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Total fair value option impact on noninterest income | (477) | 729 |
Noninterest income | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Total fair value option impact on noninterest income | $ (4,661) | $ 1,941 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Non-marketable equity securities held in other financial institutions | $ 47,274,000 | $ 62,586,000 |
Impairment recorded on investments in equity securities that do not have readily determinable fair values | 0 | |
Liability to repurchase past due GNMA loans | 62,200,000 | 55,500,000 |
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of impaired loans | 15,400,000 | 12,300,000 |
Foreclosed assets | 3,900,000 | $ 1,600,000 |
Residential real estate | Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, 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 | $ 0 | |
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 | 0.83% | 0.83% |
Credit spread, loans held-for-investment | 2.90% | 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% | 2.27% |
Credit spread, loans held-for-investment | 3.53% | 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, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | $ 40,800 | $ 41,205 |
Carrying Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 264,901 | 377,214 |
Carrying Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-marketable equity securities held in other financial institutions | 47,274 | 62,586 |
Accrued interest and loan fees receivable | 27,450 | 27,146 |
Deposits | 6,346,194 | 5,751,315 |
FHLB advances and other borrowings | 325,751 | 984,608 |
Subordinated debentures | 157,239 | 157,181 |
Accrued interest payable | 3,445 | 3,556 |
Carrying Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 37,983 | 38,128 |
LHFI , net | 5,751,046 | 5,621,092 |
Estimated Fair Value | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 264,901 | 377,214 |
Estimated Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non-marketable equity securities held in other financial institutions | 47,274 | 62,586 |
Accrued interest and loan fees receivable | 27,450 | 27,146 |
Deposits | 6,349,699 | 5,756,312 |
FHLB advances and other borrowings | 312,306 | 991,943 |
Subordinated debentures | 156,451 | 156,395 |
Accrued interest payable | 3,445 | 3,556 |
Estimated Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities held to maturity | 40,800 | 41,205 |
LHFI , net | $ 5,729,954 | $ 5,802,744 |
Mortgage Banking - Mortgage Ban
Mortgage Banking - Mortgage Banking Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Mortgage Banking [Abstract] | ||
Origination | $ 376 | $ 275 |
Gain on sale of loans held for sale | 6,940 | 1,873 |
Servicing | 1,501 | 1,601 |
Total gross mortgage revenue | 8,817 | 3,749 |
Mortgage HFS and pipeline fair value adjustment | (3,158) | 1,266 |
MSR valuation adjustment, net of amortization | 1,949 | (5,228) |
MSR hedge impact | (3,031) | 2,982 |
Mortgage banking revenue | $ 4,577 | $ 2,769 |
Mortgage Banking - Activity in
Mortgage Banking - Activity in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||
Balance at beginning of period | $ 13,660 | $ 20,697 |
Addition of servicing rights | 1,943 | 653 |
Valuation adjustment, net of amortization | 1,949 | (5,228) |
Balance at end of period | $ 17,552 | $ 16,122 |
Mortgage Banking - Narrative (D
Mortgage Banking - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Mortgage Banking [Abstract] | ||
Annual servicing fee income rate | 0.28% | |
Mortgage loan servicing putback expenses | $ 28 | |
Reserve for mortgage loan servicing putback expenses | 339 | $ 311 |
Liability to repurchase past due GNMA loans | $ 62,200 | $ 55,500 |
Borrowings - Summary of Borrowe
Borrowings - Summary of Borrowed Funds (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument, Redemption [Line Items] | ||
Federal Home Loan Bank ("FHLB") advances and other borrowings | $ 325,751 | $ 984,608 |
FHLB | ||
Debt Instrument, Redemption [Line Items] | ||
Net amounts available under the blanket floating lien | 1,050,000 | 456,900 |
GNMA repurchase liability | ||
Debt Instrument, Redemption [Line Items] | ||
Federal Home Loan Bank ("FHLB") advances and other borrowings | 62,244 | 55,485 |
Short-term FHLB advances | ||
Debt Instrument, Redemption [Line Items] | ||
Federal Home Loan Bank ("FHLB") advances and other borrowings | 257,186 | 270,715 |
Subordinated debentures, net | ||
Debt Instrument, Redemption [Line Items] | ||
Subordinated debentures, net | 157,239 | 157,181 |
Federal Home Loan Bank Advances Maturing August 23 2033 | ||
Debt Instrument, Redemption [Line Items] | ||
Amount | $ 250,000 | $ 250,000 |
Interest Rate | 1.65% | 1.65% |
Overnight repurchase agreements with depositors | ||
Debt Instrument, Redemption [Line Items] | ||
Federal Home Loan Bank ("FHLB") advances and other borrowings | $ 6,321 | $ 8,408 |
Short-term FHLB advances | ||
Debt Instrument, Redemption [Line Items] | ||
Federal Home Loan Bank ("FHLB") advances and other borrowings | $ 0 | 650,000 |
Federal Home Loan Bank Advances Maturing January 4 2021 | ||
Debt Instrument, Redemption [Line Items] | ||
Amount | $ 650,000 | |
Interest Rate | 0.10% |
Derivative Financial Instrume_3
Derivative Financial Instruments - Fair Value of Derivative Instruments on the Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | $ 1,026,869 | $ 1,030,766 |
Fair Values | 2,472 | 1,380 |
Interest Rate Swaps | Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 355,306 | 347,096 |
Fair Values | (14,735) | (21,321) |
Interest Rate Swaps | Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 334,916 | 326,542 |
Fair Values | 13,881 | 20,207 |
Risk Participation Derivative | Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 63,374 | 63,374 |
Fair Values | (13) | (18) |
Forward Commitments to Purchase | Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Values | (457) | (317) |
Forward Commitments to Purchase | Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 78,000 | 107,000 |
Forward Commitments to Sell | Derivatives Not Designated as Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 115,000 | 107,200 |
Fair Values | 1,704 | (658) |
Interest Rate-Lock Commitments | Derivatives Not Designated as Hedging Instruments | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 80,273 | 79,554 |
Fair Values | 2,092 | 3,487 |
Cash Flow Hedging | Interest Rate Swaps | Derivatives Designated as Cash Flow Hedging Instruments | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amounts | 21,000 | 21,000 |
Fair Values | $ (227) | $ (706) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Weighted-average Rates Paid and Received (Details) - Interest Rate Swaps | Mar. 31, 2021 |
Cash flow hedges | Paid | |
Derivative [Line Items] | |
Weighted-Average Interest Rate | 4.81% |
Cash flow hedges | Received | |
Derivative [Line Items] | |
Weighted-Average Interest Rate | 2.93% |
Financial Institution | Non-Hedging | Paid | |
Derivative [Line Items] | |
Weighted-Average Interest Rate | 4.49% |
Financial Institution | Non-Hedging | Received | |
Derivative [Line Items] | |
Weighted-Average Interest Rate | 2.70% |
Customer | Non-Hedging | Paid | |
Derivative [Line Items] | |
Weighted-Average Interest Rate | 2.75% |
Customer | Non-Hedging | Received | |
Derivative [Line Items] | |
Weighted-Average Interest Rate | 4.51% |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gains and Losses Recognized on Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Mortgage banking revenue | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized on derivatives not designated as hedging instruments | $ (1,206) | $ 2,513 |
Other non-interest income | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of gain (loss) recognized on derivatives not designated as hedging instruments | $ 307 | $ (685) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Cash collateral on deposit | $ 12.8 | $ 22.2 |
Stock and Incentive Compensat_3
Stock and Incentive Compensation Plans - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)shares | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Outstanding stock options term (does not exceed) | 20 years |
Restricted Stock | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Unrecognized compensation cost | $ | $ 1.9 |
Unrecognized compensation cost weighted average period for recognition | 2 years |
2012 Plan | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Maximum number of common stock available for issuance (in shares) | shares | 915,819 |
Minimum | Restricted Stock | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Service period in which time-vested awards are earned | 1 year |
Maximum | Restricted Stock | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
Service period in which time-vested awards are earned | 5 years |
Stock and Incentive Compensat_4
Stock and Incentive Compensation Plans - Share-based Compensation Cost (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock | $ 614,000 | $ 537,000 |
Related tax benefits recognized in net income | 129,000 | 113,000 |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stock | $ 0 | $ 0 |
Stock and Incentive Compensat_5
Stock and Incentive Compensation Plans - Time-vested Award Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Shares | ||
Nonvested shares, beginning balance (in shares) | 103,359 | 149,449 |
Granted (in shares) | 6,286 | 0 |
Vested (in shares) | (1,782) | (2,073) |
Forfeited (in shares) | (946) | (4,129) |
Nonvested shares, ending balance (in shares) | 106,917 | 143,247 |
Weighted Average Grant-Date Fair Value | ||
Nonvested shares, beginning balance (in dollars per share) | $ 31.51 | $ 35.15 |
Granted (in dollars per share) | 33.82 | 0 |
Vested (in dollars per share) | 27.20 | 25.81 |
Forfeited (in dollars per share) | 24.69 | 37.14 |
Nonvested shares, ending balance (in dollars per share) | $ 31.78 | $ 35.23 |
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, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||||
Outstanding at beginning of period (in shares) | 224,000 | 254,000 | 254,000 | |
Exercised (in shares) | (14,800) | (30,000) | ||
Outstanding at end of period (in shares) | 209,200 | 224,000 | 224,000 | 254,000 |
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 10.86 | $ 10.55 | $ 10.55 | |
Exercised (in dollars per share) | 9.89 | 8.25 | ||
Outstanding at end of period (in dollars per share) | $ 10.93 | $ 10.86 | $ 10.86 | $ 10.55 |
Weighted average remaining contractual term (in years) | 4 years 11 months 1 day | 5 years 9 months 21 days | ||
Weighted average remaining contractual term, exercisable (in years) | 5 years 18 days | 5 years 8 months 1 day | ||
Aggregate Intrinsic Value | $ 3,789 | $ 6,932 | ||
Aggregate intrinsic value, exercisable | $ 6,587 | $ 2,104 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | $ 647,150 | $ 599,262 |
Net change | (13,464) | 9,489 |
Stockholders' equity, ending balance | 656,355 | 606,631 |
Unrealized Gain (Loss) on AFS Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 26,206 | 6,412 |
Net change | (13,843) | 10,044 |
Stockholders' equity, ending balance | 12,363 | 16,456 |
Unrealized (Loss) Gain on Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | (557) | (79) |
Net change | 379 | (555) |
Stockholders' equity, ending balance | (178) | (634) |
Accumulated Other Comprehensive Income | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Stockholders' equity, beginning balance | 25,649 | 6,333 |
Net change | (13,464) | 9,489 |
Stockholders' equity, ending balance | $ 12,185 | $ 15,822 |
Capital and Regulatory Matter_2
Capital and Regulatory Matters - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)$ / sharesshares | Mar. 31, 2020USD ($) | Dec. 31, 2020 | |
Resale Agreement Counterparty [Line Items] | |||
Benefit to capital risk-weighted assets capital ratio, basis point | 0.0019 | ||
Repurchase of common stock (in shares) | shares | 37,568 | ||
Buyback program at a price per share (in dollars per share) | $ / shares | $ 33.42 | ||
Repurchase of common stock, value | $ 1,256 | $ 723 | |
Stock repurchase, cumulative shares | shares | 330,868 | ||
Stock repurchase, cumulative value | $ 10,800 | ||
Repurchased amount | 28,000 | ||
Origin Bank | Origin Bank | |||
Resale Agreement Counterparty [Line Items] | |||
Aggregate dividends without prior regulatory approval | $ 43,400 |
Capital and Regulatory Matter_3
Capital and Regulatory Matters - Actual Capital Amounts and Ratios (Details) $ in Thousands | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Origin Bancorp, Inc. | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 626,931 | $ 604,306 |
Actual, ratio | 0.1017 | 0.0995 |
Minimum capital required, amount | $ 431,516 | $ 425,012 |
Minimum capital required, ratio | 7.00% | 7.00% |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 636,315 | $ 613,682 |
Actual, ratio | 0.1032 | 0.1011 |
Minimum capital required, amount | $ 524,097 | $ 516,107 |
Minimum capital required, ratio | 0.0850 | 0.0850 |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 858,644 | $ 837,058 |
Actual, ratio | 0.1392 | 0.1379 |
Minimum capital required, amount | $ 647,684 | $ 637,539 |
Minimum capital required, ratio | 0.1050 | 0.1050 |
Leverage Ratio | ||
Actual, amount | $ 636,315 | $ 613,682 |
Actual, ratio | 0.0867 | 0.0862 |
Minimum capital required, amount | $ 293,571 | $ 284,771 |
Minimum capital required, ratio | 0.0400 | 0.0400 |
Origin Bank | Origin Bank | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 660,585 | $ 637,863 |
Actual, ratio | 0.1074 | 0.1053 |
Minimum capital required, amount | $ 430,549 | $ 424,010 |
Minimum capital required, ratio | 7.00% | 7.00% |
Well capitalized, amount | $ 399,795 | $ 393,724 |
Well capitalized, ratio | 6.50% | 6.50% |
Tier 1 Capital to Risk-Weighted Assets | ||
Actual, amount | $ 660,585 | $ 637,863 |
Actual, ratio | 0.1074 | 0.1053 |
Minimum capital required, amount | $ 522,809 | $ 514,870 |
Minimum capital required, ratio | 0.0850 | 0.0850 |
Well capitalized, amount | $ 492,056 | $ 484,583 |
Well capitalized, ratio | 0.0800 | 0.0800 |
Total Capital to Risk-Weighted Assets | ||
Actual, amount | $ 804,330 | $ 782,503 |
Actual, ratio | 0.1308 | 0.1292 |
Minimum capital required, amount | $ 645,678 | $ 636,019 |
Minimum capital required, ratio | 0.1050 | 0.1050 |
Well capitalized, amount | $ 614,931 | $ 605,732 |
Well capitalized, ratio | 0.1000 | 0.1000 |
Leverage Ratio | ||
Actual, amount | $ 660,585 | $ 637,863 |
Actual, ratio | 0.0902 | 0.0899 |
Minimum capital required, amount | $ 292,942 | $ 283,842 |
Minimum capital required, ratio | 0.0400 | 0.0400 |
Well capitalized, amount | $ 366,178 | $ 354,802 |
Well capitalized, ratio | 0.0500 | 0.0500 |
Commitments and Contingencies -
Commitments and Contingencies - Off-Balance Sheet Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instrument | $ 1,390,528 | $ 1,341,501 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instrument | $ 48,967 | $ 42,911 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) | Mar. 31, 2021USD ($)loan | Dec. 31, 2020USD ($)loan |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Credit card guarantees | $ 205,000 | $ 200,000 |
Lending-related Commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Reserve for lending related commitments | $ 2,400,000 | $ 2,300,000 |
Letter of credit | FHLB | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Number of instruments | loan | 37 | 35 |
Maximum borrowing capacity | $ 590,900,000 | $ 527,400,000 |
Uncategorized Items - obnk-2021
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |