Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 22, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-35854 | |
Entity Registrant Name | Independent Bank Group, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 13-4219346 | |
Entity Address, Address Line One | 7777 Henneman Way | |
Entity Address, City or Town | McKinney, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 75070-1711 | |
City Area Code | 972 | |
Local Phone Number | 562-9004 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | IBTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 42,952,479 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001564618 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 163,213 | $ 102,024 |
Interest-bearing deposits in other banks | 406,888 | 28,755 |
Cash and cash equivalents | 570,101 | 130,779 |
Certificates of deposit held in other banks | 5,715 | 1,225 |
Securities available for sale, at fair value | 1,083,816 | 685,350 |
Loans held for sale (includes $27,432 and $27,871 carried at fair value, respectively) | 32,929 | 32,727 |
Loans, net | 11,544,582 | 7,839,695 |
Premises and equipment, net | 240,991 | 167,866 |
Other real estate owned | 6,392 | 4,200 |
Federal Home Loan Bank (FHLB) of Dallas stock and other restricted stock | 29,918 | 26,870 |
Bank-owned life insurance (BOLI) | 214,106 | 129,521 |
Deferred tax asset | 9,259 | 13,180 |
Goodwill | 994,021 | 721,797 |
Other intangible assets, net | 106,855 | 45,042 |
Other assets | 120,442 | 51,713 |
Total assets | 14,959,127 | 9,849,965 |
Deposits: | ||
Noninterest-bearing | 3,218,055 | 2,145,930 |
Interest-bearing | 8,509,830 | 5,591,864 |
Total deposits | 11,727,885 | 7,737,794 |
FHLB advances | 555,000 | 290,000 |
Other borrowings | 212,642 | 137,316 |
Junior subordinated debentures | 53,775 | 27,852 |
Other liabilities | 110,893 | 50,570 |
Total liabilities | 12,660,195 | 8,243,532 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock (0 and 0 shares outstanding, respectively) | 0 | 0 |
Common stock (42,952,642 and 30,600,582 shares outstanding, respectively) | 430 | 306 |
Additional paid-in capital | 1,924,385 | 1,317,616 |
Retained earnings | 354,177 | 296,816 |
Accumulated other comprehensive income (loss) | 19,940 | (8,305) |
Total stockholders’ equity | 2,298,932 | 1,606,433 |
Total liabilities and stockholders’ equity | $ 14,959,127 | $ 9,849,965 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, shares outstanding (shares) | 42,952,642 | 30,600,582 |
Loans held for sale, fair value option | $ 27,432 | $ 27,871 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Interest and fees on loans | $ 154,664 | $ 103,104 | $ 457,626 | $ 277,993 |
Interest on taxable securities | 5,374 | 3,840 | 16,101 | 10,244 |
Interest on nontaxable securities | 2,074 | 1,103 | 6,426 | 3,475 |
Interest on interest-bearing deposits and other | 3,195 | 1,242 | 8,393 | 2,773 |
Total interest income | 165,307 | 109,289 | 488,546 | 294,485 |
Interest expense: | ||||
Interest on deposits | 33,386 | 17,380 | 92,550 | 40,006 |
Interest on FHLB advances | 2,730 | 3,121 | 8,324 | 7,854 |
Interest on other borrowings and repurchase agreements | 3,036 | 2,100 | 8,674 | 6,299 |
Interest on junior subordinated debentures | 762 | 420 | 2,310 | 1,182 |
Total interest expense | 39,914 | 23,021 | 111,858 | 55,341 |
Net interest income | 125,393 | 86,268 | 376,688 | 239,144 |
Provision for loan losses | 5,233 | 1,525 | 13,196 | 6,950 |
Net interest income after provision for loan losses | 120,160 | 84,743 | 363,492 | 232,194 |
Noninterest income: | ||||
Service charges on deposit accounts | 6,100 | 3,589 | 18,609 | 10,607 |
Investment management and trust | 2,497 | 0 | 7,238 | 0 |
Mortgage banking revenue | 4,824 | 5,111 | 11,619 | 12,134 |
Gain on sale of loans | 6,779 | 0 | 6,779 | 0 |
Gain on sale of branch | 1,549 | 0 | 1,549 | 0 |
Gain on sale of other real estate | 539 | 95 | 851 | 213 |
(Loss) gain on sale of securities available for sale | 0 | (115) | 265 | (349) |
(Loss) gain on sale and disposal of premises and equipment | (315) | 220 | (585) | 123 |
Increase in cash surrender value of BOLI | 1,402 | 831 | 4,135 | 2,328 |
Other | 3,949 | 3,018 | 9,487 | 7,281 |
Total noninterest income | 27,324 | 12,749 | 59,947 | 32,337 |
Noninterest expense: | ||||
Salaries and employee benefits | 37,645 | 30,114 | 120,557 | 82,072 |
Occupancy | 9,402 | 6,613 | 27,978 | 18,295 |
Data processing | 4,470 | 2,989 | 12,688 | 7,861 |
FDIC assessment (credit) | (2,139) | 760 | 71 | 2,213 |
Advertising and public relations | 467 | 583 | 1,942 | 1,300 |
Communications | 1,288 | 810 | 3,910 | 2,544 |
Other real estate owned expenses, net | 152 | 62 | 302 | 271 |
Impairment of other real estate | 0 | 0 | 1,424 | 85 |
Amortization of other intangible assets | 3,235 | 1,519 | 9,705 | 4,243 |
Professional fees | 2,057 | 1,175 | 4,771 | 3,427 |
Acquisition expense, including legal | 9,465 | 1,682 | 28,175 | 5,671 |
Other | 10,906 | 6,348 | 29,998 | 18,789 |
Total noninterest expense | 76,948 | 52,655 | 241,521 | 146,771 |
Income before taxes | 70,536 | 44,837 | 181,918 | 117,760 |
Income tax expense | 14,903 | 9,141 | 39,418 | 23,465 |
Net income | $ 55,633 | $ 35,696 | $ 142,500 | $ 94,295 |
Basic earnings per share (usd per share) | $ 1.30 | $ 1.17 | $ 3.29 | $ 3.22 |
Diluted earnings per share (usd per share) | $ 1.30 | $ 1.17 | $ 3.29 | $ 3.21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 55,633 | $ 35,696 | $ 142,500 | $ 94,295 |
Other comprehensive income (loss) before tax: | ||||
Change in net unrealized gains (losses) on available for sale securities during the year | 3,624 | (5,259) | 36,420 | (17,438) |
Reclassification for amount realized through sales of securities available for sale included in net income | 0 | 115 | (265) | 349 |
Other comprehensive income (loss) before tax | 3,624 | (5,144) | 36,155 | (17,089) |
Income tax expense (benefit) | 807 | (1,081) | 7,910 | (3,589) |
Other comprehensive income (loss), net of tax | 2,817 | (4,063) | 28,245 | (13,500) |
Comprehensive income | $ 58,450 | $ 31,633 | $ 170,745 | $ 80,795 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock $.01 Par Value 10 million shares authorized | Common Stock $.01 Par Value 100 million shares authorized | Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principles | $ 0 | $ 233 | $ (233) | |||
Beginning balance at Dec. 31, 2017 | 1,336,018 | $ 0 | $ 283 | $ 1,151,990 | 184,232 | (487) |
Beginning balance (shares) at Dec. 31, 2017 | 28,254,893 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 28,964 | 28,964 | ||||
Other comprehensive income (loss), net of tax | (8,446) | (8,446) | ||||
Restricted stock forfeited (shares) | (606) | |||||
Restricted stock forfeited | 0 | |||||
Restricted stock granted (shares) | 99,812 | |||||
Restricted stock granted | 0 | $ 1 | (1) | |||
Stock based compensation expense | 1,412 | 1,412 | ||||
Exercise of warrants (shares) | 8,874 | |||||
Exercise of warrants | 152 | 152 | ||||
Cash dividends ($0.25 per share at March 31, 2019, $0.25 per share at June 30, 2019, $0.25 per share at September 30, 2019, $0.12 per share at March 31, 2018, $0.14 per share at June 30, 2018, $0.14 per share at September 30, 2018) | (3,401) | (3,401) | ||||
Ending balance at Mar. 31, 2018 | 1,354,699 | 0 | $ 284 | 1,153,553 | 210,028 | (9,166) |
Ending balance (shares) at Mar. 31, 2018 | 28,362,973 | |||||
Beginning balance at Dec. 31, 2017 | 1,336,018 | 0 | $ 283 | 1,151,990 | 184,232 | (487) |
Beginning balance (shares) at Dec. 31, 2017 | 28,254,893 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 94,295 | |||||
Other comprehensive income (loss), net of tax | (13,500) | |||||
Ending balance at Sep. 30, 2018 | 1,567,184 | 0 | $ 305 | 1,313,981 | 267,118 | (14,220) |
Ending balance (shares) at Sep. 30, 2018 | 30,477,648 | |||||
Beginning balance at Mar. 31, 2018 | 1,354,699 | 0 | $ 284 | 1,153,553 | 210,028 | (9,166) |
Beginning balance (shares) at Mar. 31, 2018 | 28,362,973 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 29,635 | 29,635 | ||||
Other comprehensive income (loss), net of tax | (991) | (991) | ||||
Stock issued for acquisition of bank, net of offering costs of $804 in 2019 and $209 in 2018 (shares) | 2,071,981 | |||||
Stock issued for acquisition of bank, net of offering costs of $804 in 2019 and $209 in 2018 | 157,054 | $ 21 | 157,033 | |||
Restricted stock forfeited (shares) | (3,239) | |||||
Restricted stock forfeited | 0 | |||||
Restricted stock granted (shares) | 19,100 | |||||
Restricted stock granted | 0 | |||||
Stock based compensation expense | 1,543 | 1,543 | ||||
Exercise of warrants (shares) | 17,598 | |||||
Exercise of warrants | 303 | 303 | ||||
Cash dividends ($0.25 per share at March 31, 2019, $0.25 per share at June 30, 2019, $0.25 per share at September 30, 2019, $0.12 per share at March 31, 2018, $0.14 per share at June 30, 2018, $0.14 per share at September 30, 2018) | (3,974) | (3,974) | ||||
Ending balance at Jun. 30, 2018 | 1,538,269 | 0 | $ 305 | 1,312,432 | 235,689 | (10,157) |
Ending balance (shares) at Jun. 30, 2018 | 30,468,413 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 35,696 | 35,696 | ||||
Other comprehensive income (loss), net of tax | (4,063) | (4,063) | ||||
Restricted stock granted (shares) | 8,800 | |||||
Restricted stock granted | 0 | |||||
Stock based compensation expense | 1,541 | 1,541 | ||||
Exercise of warrants (shares) | 435 | |||||
Exercise of warrants | 8 | 8 | ||||
Cash dividends ($0.25 per share at March 31, 2019, $0.25 per share at June 30, 2019, $0.25 per share at September 30, 2019, $0.12 per share at March 31, 2018, $0.14 per share at June 30, 2018, $0.14 per share at September 30, 2018) | (4,267) | (4,267) | ||||
Ending balance at Sep. 30, 2018 | 1,567,184 | 0 | $ 305 | 1,313,981 | 267,118 | (14,220) |
Ending balance (shares) at Sep. 30, 2018 | 30,477,648 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cumulative effect of change in accounting principles | (926) | (926) | ||||
Beginning balance at Dec. 31, 2018 | 1,606,433 | 0 | $ 306 | 1,317,616 | 296,816 | (8,305) |
Beginning balance (shares) at Dec. 31, 2018 | 30,600,582 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 37,131 | 37,131 | ||||
Other comprehensive income (loss), net of tax | 11,776 | 11,776 | ||||
Stock issued for acquisition of bank, net of offering costs of $804 in 2019 and $209 in 2018 (shares) | 13,179,748 | |||||
Stock issued for acquisition of bank, net of offering costs of $804 in 2019 and $209 in 2018 | 601,068 | $ 132 | 600,936 | |||
Common stock repurchased (shares) | (225,903) | |||||
Common stock repurchased | (12,507) | $ (2) | (12,505) | |||
Restricted stock forfeited (shares) | (385) | |||||
Restricted stock forfeited | 0 | |||||
Restricted stock granted (shares) | 111,751 | |||||
Restricted stock granted | 0 | $ 1 | (1) | |||
Stock based compensation expense | 2,172 | 2,172 | ||||
Cash dividends ($0.25 per share at March 31, 2019, $0.25 per share at June 30, 2019, $0.25 per share at September 30, 2019, $0.12 per share at March 31, 2018, $0.14 per share at June 30, 2018, $0.14 per share at September 30, 2018) | (10,945) | (10,945) | ||||
Ending balance at Mar. 31, 2019 | 2,234,202 | 0 | $ 437 | 1,920,723 | 309,571 | 3,471 |
Ending balance (shares) at Mar. 31, 2019 | 43,665,793 | |||||
Beginning balance at Dec. 31, 2018 | 1,606,433 | 0 | $ 306 | 1,317,616 | 296,816 | (8,305) |
Beginning balance (shares) at Dec. 31, 2018 | 30,600,582 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 142,500 | |||||
Other comprehensive income (loss), net of tax | 28,245 | |||||
Ending balance at Sep. 30, 2019 | 2,298,932 | 0 | $ 430 | 1,924,385 | 354,177 | 19,940 |
Ending balance (shares) at Sep. 30, 2019 | 42,952,642 | |||||
Beginning balance at Mar. 31, 2019 | 2,234,202 | 0 | $ 437 | 1,920,723 | 309,571 | 3,471 |
Beginning balance (shares) at Mar. 31, 2019 | 43,665,793 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 49,736 | 49,736 | ||||
Other comprehensive income (loss), net of tax | 13,652 | 13,652 | ||||
Common stock repurchased (shares) | (726,002) | |||||
Common stock repurchased | (39,103) | $ (7) | (39,096) | |||
Restricted stock forfeited (shares) | (7,833) | |||||
Restricted stock forfeited | 0 | |||||
Restricted stock granted (shares) | 21,860 | |||||
Restricted stock granted | 0 | |||||
Stock based compensation expense | 1,752 | 1,752 | ||||
Cash dividends ($0.25 per share at March 31, 2019, $0.25 per share at June 30, 2019, $0.25 per share at September 30, 2019, $0.12 per share at March 31, 2018, $0.14 per share at June 30, 2018, $0.14 per share at September 30, 2018) | (10,897) | (10,897) | ||||
Ending balance at Jun. 30, 2019 | 2,249,342 | 0 | $ 430 | 1,922,475 | 309,314 | 17,123 |
Ending balance (shares) at Jun. 30, 2019 | 42,953,818 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 55,633 | 55,633 | ||||
Other comprehensive income (loss), net of tax | 2,817 | 2,817 | ||||
Common stock repurchased (shares) | (776) | |||||
Common stock repurchased | (41) | $ 0 | (41) | |||
Restricted stock forfeited (shares) | (5,397) | |||||
Restricted stock forfeited | 0 | |||||
Restricted stock granted (shares) | 4,997 | |||||
Restricted stock granted | 0 | |||||
Stock based compensation expense | 1,910 | 1,910 | ||||
Cash dividends ($0.25 per share at March 31, 2019, $0.25 per share at June 30, 2019, $0.25 per share at September 30, 2019, $0.12 per share at March 31, 2018, $0.14 per share at June 30, 2018, $0.14 per share at September 30, 2018) | (10,729) | (10,729) | ||||
Ending balance at Sep. 30, 2019 | $ 2,298,932 | $ 0 | $ 430 | $ 1,924,385 | $ 354,177 | $ 19,940 |
Ending balance (shares) at Sep. 30, 2019 | 42,952,642 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends paid (usd per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.14 | $ 0.14 | $ 0.12 | ||
Offering costs | $ 804 | $ 209 | ||||||
Common stock par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock shares authorized (shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 |
Preferred stock par value (usd per share) | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred stock shares authorized (shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 142,500 | $ 94,295 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation expense | 8,679 | 6,324 |
Accretion of income recognized on acquired loans | (35,228) | (9,386) |
Amortization of other intangibles assets | 9,705 | 4,243 |
Amortization of premium on securities, net | 2,053 | 2,768 |
Amortization of discount and origination costs on borrowings | 475 | 475 |
Stock based compensation expense | 5,834 | 4,496 |
Excess tax expense (benefit) on restricted stock vested | 21 | (632) |
FHLB stock dividends | (645) | (538) |
(Gain) loss on sale of securities available for sale | (265) | 349 |
Loss (gain) on sale of premises and equipment | 585 | (123) |
Gain on sale of loans | (6,779) | 0 |
Gain on sale of branch | (1,549) | 0 |
Gain on sale of other real estate owned | (851) | (213) |
Impairment of other real estate | 1,424 | 85 |
Impairment of other assets | 1,173 | 0 |
Deferred tax expense | 11,615 | 2,130 |
Provision for loan losses | 13,196 | 6,950 |
Increase in cash surrender value of BOLI | (4,135) | (2,328) |
Net gain on mortgage loans held for sale | (10,970) | (10,354) |
Originations of loans held for sale | (301,869) | (293,756) |
Proceeds from sale of loans held for sale | 312,637 | 315,582 |
Net change in other assets | (17,988) | (15,883) |
Net change in other liabilities | 9,271 | 1,121 |
Net cash provided by operating activities | 138,889 | 105,605 |
Cash flows from investing activities: | ||
Proceeds from maturities, calls and pay downs of securities available for sale | 5,328,060 | 2,213,168 |
Proceeds from sale of securities available for sale | 189,704 | 42,727 |
Purchases of securities available for sale | (5,321,693) | (2,249,373) |
Purchases of certificates of deposit held in other banks | (5,701) | 0 |
Proceeds from maturities of certificates of deposit held in other banks | 1,473 | 11,760 |
Proceeds from sale of loans | 90,025 | 0 |
Proceeds from surrender of bank owned life insurance contracts | 387 | 0 |
Purchase of bank owned life insurance contracts | 0 | (5,000) |
Purchases of FHLB stock and other restricted stock | (9,397) | (6,144) |
Proceeds from redemptions of FHLB stock and other restricted stock | 34,788 | 12,606 |
Net loans originated held for investment | (486,692) | (587,348) |
Originations of mortgage warehouse purchase loans | (8,430,885) | (3,869,234) |
Proceeds from pay-offs of mortgage warehouse purchase loans | 7,940,525 | 3,883,661 |
Additions to premises and equipment | (26,693) | (24,497) |
Proceeds from sale of premises and equipment | 2,100 | 14,479 |
Proceeds from sale of other real estate owned | 6,987 | 3,054 |
Cash received from acquired bank | 39,913 | 44,723 |
Cash paid in connection with acquisition | (9) | (31,016) |
Selling costs paid in connection with branch sale | (144) | 0 |
Net cash transferred in branch sale | (25,163) | 0 |
Net cash used in investing activities | (672,415) | (546,434) |
Cash flows from financing activities: | ||
Net increase in demand deposits, money market and savings accounts | 615,655 | 375,045 |
Net increase in time deposits | 284,872 | 181,907 |
Proceeds from FHLB advances | 1,600,000 | 1,110,000 |
Repayments of FHLB advances | (1,477,653) | (1,355,667) |
Proceeds from other borrowings | 56,000 | 0 |
Repayments of other borrowings | (21,000) | 0 |
Proceeds from exercise of common stock warrants | 0 | 463 |
Repurchase of common stock | (51,651) | 0 |
Offering costs paid in connection with acquired bank | (804) | (209) |
Dividends paid | (32,571) | (11,642) |
Net cash provided by financing activities | 972,848 | 299,897 |
Net change in cash and cash equivalents | 439,322 | (140,932) |
Cash and cash equivalents at beginning of year | 130,779 | 431,102 |
Cash and cash equivalents at end of year | $ 570,101 | $ 290,170 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of operations: Independent Bank Group, Inc. (IBG) through its subsidiary, Independent Bank, a Texas state banking corporation (Bank) (collectively known as the Company), provides a full range of banking services to individual and corporate customers in the North, Central and Southeast, Texas areas and along the Colorado Front Range, through its various branch locations in those areas. The Company is engaged in traditional community banking activities, which include commercial and retail lending, deposit gathering, investment and liquidity management activities. The Company’s primary deposit products are demand deposits, money market accounts and certificates of deposit and its primary lending products are commercial business and real estate, real estate mortgage and consumer loans. Basis of presentation: The accompanying consolidated financial statements include the accounts of IBG and all other entities in which IBG has controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation. In addition, the Company wholly-owns nine statutory business trusts that were formed for the purpose of issuing trust preferred securities and do not meet the criteria for consolidation. On January 1, 2019, the Company acquired Guaranty Bancorp (Guaranty) and its wholly owned subsidiary, Guaranty Bank and Trust Company (Guaranty Bank) and its wholly owned subsidiary, Private Capital Management, LLC. Guaranty was merged into the Company and dissolved and Guaranty Bank and its subsidiary was merged with the Bank as of acquisition date. The Company also acquired two statutory business trusts in connection with the acquisition as disclosed in Note 5 , Other Borrowings and Junior Subordinated Debentures. See Note 13 , Business Combinations, for more details of the Guaranty acquisition. The consolidated interim financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in the Company's Annual Report on Form10-K for the year ended December 31, 2018 . The consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. Segment reporting: The Company has one reportable segment. The Company’s chief operating decision-maker uses consolidated results to make operating and strategic decisions. Reclassifications: Certain prior period financial statement amounts have been reclassified to conform to current period presentation. The reclassifications have no effect on net income or stockholders' equity as previously reported. Subsequent events: Companies are required to evaluate events and transactions that occur after the balance sheet date but before the date the financial statements are issued. They must recognize in the financial statements the effect of all events or transactions that provide additional evidence of conditions that existed at the balance sheet date, including the estimates inherent in the financial statement preparation process. Entities shall not recognize the impact of events or transactions that provide evidence about conditions that did not exist at the balance sheet date but arose after that date. The Company has evaluated subsequent events through the date of filing these financial statements with the Securities and Exchange Commission (SEC) and noted no subsequent events requiring financial statement recognition or disclosure, except as disclosed in Note 14 . Share repurchase program: The Company established share repurchase programs in prior years which would allow the Company to purchase its common stock in the open market or in privately negotiated transactions. In general, share repurchase programs allow the Company to proactively manage its capital position and return excess capital to shareholders. On October 24, 2018, the Company announced the reestablishment of its share repurchase program. The program authorizes the Company to repurchase up to $75,000 of its common stock and was authorized to continue through October 1, 2019. On October 17, 2019, the repurchase program was renewed and authorized to continue through December 31, 2020. The Company has approval from the Federal Reserve to repurchase up to $60,000 in shares for 2019, of which $10,952 is remaining. The Company intends to request additional approvals, as necessary, for share buybacks in 2020. As of September 30, 2019 , the Company has repurchased a total of 897,738 shares of Company stock at a total cost of $49,048 under this program. Shares of Company stock repurchased to settle employee tax withholding related to vesting of stock awards during the period ended September 30, 2019 totaled 54,943 at a total cost of $2,603 and were not included under this program. Earnings per share: Basic earnings per common share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. The unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock warrants. The participating nonvested common stock was not included in dilutive shares as it was anti-dilutive for the three and nine months ended September 30, 2019 and 2018 . The Company's outstanding stock warrants were all exercised prior to December 31, 2018. For the three and nine months ended September 30, 2018, proceeds from the assumed exercise of dilutive stock warrants are assumed to be used to repurchase common stock at the average market price. The following table presents a reconciliation of net income available to common shareholders and the number of shares used in the calculation of basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic earnings per share: Net income $ 55,633 $ 35,696 $ 142,500 $ 94,295 Less: Undistributed earnings allocated to participating securities 329 262 731 729 Dividends paid on participating securities 79 36 216 104 Net income available to common shareholders $ 55,225 $ 35,398 $ 141,553 $ 93,462 Weighted average basic shares outstanding 42,636,030 30,219,561 43,056,441 29,035,729 Basic earnings per share $ 1.30 $ 1.17 $ 3.29 $ 3.22 Diluted earnings per share: Net income available to common shareholders $ 55,225 $ 35,398 $ 141,553 $ 93,462 Total weighted average basic shares outstanding 42,636,030 30,219,561 43,056,441 29,035,729 Add dilutive stock warrants — 90,114 — 91,292 Total weighted average diluted shares outstanding 42,636,030 30,309,675 43,056,441 29,127,021 Diluted earnings per share $ 1.30 $ 1.17 $ 3.29 $ 3.21 Anti-dilutive participating securities 46,223 62,588 60,001 112,797 |
Statement of Cash Flows
Statement of Cash Flows | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flows | Statement of Cash Flows As allowed by the accounting standards, the Company has chosen to report, on a net basis, its cash receipts and cash payments for time deposits accepted and repayments of those deposits, and loans made to customers and principal collections on those loans. The Company uses the indirect method to present cash flows from operating activities. Other supplemental cash flow information is presented below: Nine Months Ended September 30, 2019 2018 Cash transactions: Interest expense paid $ 110,059 $ 55,084 Income taxes paid $ 26,684 $ 17,159 Noncash transactions: Transfers of loans to other real estate owned $ 544 $ 410 Transfers of loans held for investment to loans held for sale $ 83,526 $ — Loans to facilitate the sale of other real estate owned $ 517 $ — Right-of-use assets obtained in exchange for lease liabilities $ 35,491 $ — Transfer of bank premises to other real estate $ 7,896 $ — Transfer of repurchase agreements to deposits $ 8,475 $ — Supplemental schedule of noncash investing activities from branch sale is as follows: Nine Months Ended September 30, 2019 2018 Noncash assets transferred: Loans, including accrued interest $ 796 $ — Premises and equipment 94 — Other assets 1 — Total assets $ 891 $ — Noncash liabilities transferred: Deposits, including accrued interest $ 27,721 $ — Other liabilities 27 — Total liabilities $ 27,748 $ — Cash and cash equivalents transferred in branch sale $ 206 $ — Deposit premium received $ 1,386 $ — Cash paid to buyer, net of deposit premium $ 24,957 $ — Supplemental schedule of noncash investing activities from acquisitions is as follows: Nine Months Ended September 30, 2019 2018 Noncash assets acquired Certificates of deposit held in other banks $ 262 $ — Securities available for sale 561,052 24,721 Restricted stock 27,794 3,357 Loans 2,789,868 651,769 Premises and equipment 65,786 4,863 Other real estate owned 1,829 — Goodwill 272,224 100,326 Other intangible assets 71,518 7,532 Bank owned life insurance 80,837 8,181 Other assets 31,987 6,393 Total assets acquired $ 3,903,157 $ 807,142 Noncash liabilities assumed: Deposits $ 3,108,810 $ 593,078 Repurchase agreements 8,475 — FHLB advances 142,653 60,000 Other borrowings 40,000 — Junior subordinated debentures 25,774 — Other liabilities 15,477 10,508 Total liabilities assumed $ 3,341,189 $ 663,586 Cash and cash equivalents acquired from acquisitions $ 39,913 $ 44,723 Cash paid to shareholders of acquired banks $ 9 $ 31,016 Fair value of common stock issued to shareholders of acquired banks $ 601,872 $ 157,263 |
Securities Available for Sale
Securities Available for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Securities Available for Sale | Securities Available for Sale Securities available for sale have been classified in the consolidated balance sheets according to management’s intent. The amortized cost of securities and their approximate fair values at September 30, 2019 and December 31, 2018 , are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale September 30, 2019 U.S. treasuries $ 50,060 $ 806 $ (31 ) $ 50,835 Government agency securities 179,980 1,238 (183 ) 181,035 Obligations of state and municipal subdivisions 334,017 11,011 (15 ) 345,013 Corporate bonds 7,021 174 — 7,195 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 486,646 12,075 (183 ) 498,538 Other securities 1,200 — — 1,200 $ 1,058,924 $ 25,304 $ (412 ) $ 1,083,816 December 31, 2018 U.S. treasuries $ 30,110 $ — $ (467 ) $ 29,643 Government agency securities 152,969 80 (2,819 ) 150,230 Obligations of state and municipal subdivisions 187,366 727 (3,086 ) 185,007 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 326,168 128 (5,826 ) 320,470 $ 696,613 $ 935 $ (12,198 ) $ 685,350 Securities with a carrying amount of approximately $182,966 and $219,927 at September 30, 2019 and December 31, 2018 , respectively, were pledged to secure public fund deposits and repurchase agreements. Proceeds from sale of securities available for sale and gross gains and gross losses for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds from sale $ — $ 15,254 $ 189,704 $ 42,727 Gross gains $ — $ 38 $ 293 $ 141 Gross losses $ — $ 153 $ 28 $ 490 The amortized cost and estimated fair value of securities available for sale at September 30, 2019 , by contractual maturity, are shown below. Maturities of pass-through certificates will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2019 Securities Available for Sale Amortized Cost Fair Value Due in one year or less $ 40,899 $ 40,918 Due from one year to five years 201,969 204,570 Due from five to ten years 170,968 175,410 Thereafter 158,442 164,380 572,278 585,278 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 486,646 498,538 $ 1,058,924 $ 1,083,816 The number of securities, unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of September 30, 2019 and December 31, 2018 , are summarized as follows: Less Than 12 Months Greater Than 12 Months Total Description of Securities Number of Securities Estimated Fair Value Unrealized Losses Number of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Securities Available for Sale September 30, 2019 U.S. treasuries — $ — $ — 3 $ 10,095 $ (31 ) $ 10,095 $ (31 ) Government agency securities 7 18,917 (57 ) 12 36,375 (126 ) 55,292 (183 ) Obligations of state and municipal subdivisions 7 4,147 (8 ) 2 1,435 (7 ) 5,582 (15 ) Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 10 22,252 (149 ) 4 6,961 (34 ) 29,213 (183 ) 24 $ 45,316 $ (214 ) 21 $ 54,866 $ (198 ) $ 100,182 $ (412 ) December 31, 2018 U.S. treasuries 1 $ 9,749 $ (6 ) 5 $ 19,894 $ (461 ) $ 29,643 $ (467 ) Government agency securities 4 6,068 (32 ) 43 126,745 (2,787 ) 132,813 (2,819 ) Obligations of state and municipal subdivisions 88 32,493 (326 ) 218 105,817 (2,760 ) 138,310 (3,086 ) Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 56 112,114 (1,031 ) 101 186,713 (4,795 ) 298,827 (5,826 ) 149 $ 160,424 $ (1,395 ) 367 $ 439,169 $ (10,803 ) $ 599,593 $ (12,198 ) Unrealized losses are generally due to changes in interest rates. The Company has the intent to hold these securities until maturity or a forecasted recovery, and it is more likely than not that the Company will not have to sell the securities before the recovery of their cost basis. As such, the losses are deemed to be temporary. |
Loans, Net and Allowance for Lo
Loans, Net and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans, Net and Allowance for Loan Losses | Loans, Net and Allowance for Loan Losses Loans, net, at September 30, 2019 and December 31, 2018 , consisted of the following: September 30, December 31, 2019 2018 Commercial $ 2,452,769 $ 1,361,104 Real estate: Commercial 5,933,498 4,141,356 Commercial construction, land and land development 1,181,675 905,421 Residential 1,511,236 1,049,521 Single-family interim construction 376,596 331,748 Agricultural 104,139 66,638 Consumer 36,237 31,759 Other 636 253 11,596,786 7,887,800 Deferred loan fees (1,757 ) (3,303 ) Allowance for loan losses (50,447 ) (44,802 ) $ 11,544,582 $ 7,839,695 The Company has certain lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by providing management with frequent reports related to loan production, loan quality, concentrations of credit, loan delinquencies and nonperforming and potential problem loans. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. The Company’s management examines current and projected cash flows to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. These cash flows, however, may not be as expected and the value of collateral securing the loans may fluctuate. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and may incorporate a personal guarantee; however, some short term loans may be made on an unsecured basis. Additionally, our commercial loan portfolio includes loans made to customers in the energy industry, which is a complex, technical and cyclical industry. Experienced bankers with specialized energy lending experience originate our energy loans. Companies in this industry produce, extract, develop, exploit and explore for oil and natural gas. Loans are primarily collateralized with proven producing oil and gas reserves based on a technical evaluation of these reserves. At September 30, 2019 and December 31, 2018 , there were approximately $185,682 and $135,034 of energy related loans outstanding, respectively. The Company has a mortgage warehouse purchase program, which provides a mortgage warehouse lending vehicle to third party mortgage bankers across a broad geographic scale. The mortgage loans are underwritten, in part, on approved investor takeout commitments. These loans have a very short duration ranging between 10 days and 15 days . In some cases, loans to larger mortgage originators may be financed for up to 60 days . These loans are reported as commercial loans since the loans are secured by notes receivable, not real estate. As of September 30, 2019 and December 31, 2018 , mortgage warehouse purchase loans outstanding totaled $660,650 and $170,290 , respectively. Commercial real estate loans are subject to underwriting standards and processes similar to commercial loans. These loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts, and the repayment of these loans is generally largely dependent on the successful operation of the property or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Company’s commercial real estate portfolio are diverse in terms of type and geographic location. Management monitors the diversification of the portfolio on a quarterly basis by type and geographic location. Management also tracks the level of owner occupied property versus non owner occupied property. At September 30, 2019 , the portfolio consisted of approximately 30% of owner occupied property. Land and commercial land development loans are underwritten using feasibility studies, independent appraisal reviews and financial analysis of the developers or property owners. Generally, borrowers must have a proven track record of success. Commercial construction loans are generally based upon estimates of cost and value of the completed project. These estimates may not be accurate. Commercial construction loans often involve the disbursement of substantial funds with the repayment dependent on the success of the ultimate project. Sources of repayment for these loans may be pre-committed permanent financing or sale of the developed property. The loans in this portfolio are geographically diverse and due to the increased risk are monitored closely by management and the board of directors on a quarterly basis. Residential real estate and single-family interim construction loans are underwritten primarily based on borrowers’ credit scores, documented income and minimum collateral values. Relatively small loan amounts are spread across many individual borrowers, which minimizes risk in the residential portfolio. In addition, management evaluates trends in past dues and current economic factors on a regular basis. Agricultural loans are collateralized by real estate and/or agricultural-related assets. Agricultural real estate loans are primarily comprised of loans for the purchase of farmland. Loan-to-value ratios on loans secured by farmland generally do not exceed 80% and have amortization periods limited to twenty years . Agricultural non-real estate loans are generally comprised of term loans to fund the purchase of equipment, livestock and seasonal operating lines to grain farmers to plant and harvest corn and soybeans. Specific underwriting standards have been established for agricultural-related loans including the establishment of projections for each operating year based on industry developed estimates of farm input costs and expected commodity yields and prices. Operating lines are typically written for one year and secured by the crop and other farm assets as considered necessary. Agricultural loans carry significant credit risks as they involve larger balances concentrated with single borrowers or groups of related borrowers. In addition, repayment of such loans depends on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. Farming operations may be affected by adverse weather conditions such as drought, hail or floods that can severely limit crop yields. Consumer loans represent less than 1% of the outstanding total loan portfolio. Collateral consists primarily of automobiles and other personal assets. Credit score analysis is used to supplement the underwriting process. Most of the Company’s lending activity occurs within the State of Texas, primarily in the north, central and southeast Texas regions and the State of Colorado, specifically along the Front Range area. As of September 30, 2019 , loans in the Colorado region represented about 28% of the total portfolio. A large percentage of the Company’s portfolio consists of commercial and residential real estate loans. As of September 30, 2019 and December 31, 2018 , there were no concentrations of loans related to a single industry in excess of 10% of total loans. The allowance for loan losses is an amount that management believes will be adequate to absorb estimated losses relating to specifically identified loans, as well as probable credit losses inherent in the balance of the loan portfolio. The allowance is derived from the following two components: 1) allowances established on individual impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values and the industry the customer operates and 2) allowances based on actual historical loss experience for the last three years for similar types of loans in the Company’s loan portfolio adjusted for primarily changes in the lending policies and procedures; collection, charge-off and recovery practices; nature and volume of the loan portfolio; change in value of underlying collateral; volume and severity of nonperforming loans; existence and effect of any concentrations of credit and the level of such concentrations and current, national and local economic and business conditions. This second component also includes an unallocated allowance to cover uncertainties that could affect management’s estimate of probable losses. The unallocated allowance reflects the imprecision inherent in the underlying assumptions used in the methodologies for estimating this component. The Company’s management continually evaluates the allowance for loan losses determined from the allowances established on individual loans and the amounts determined from historical loss percentages adjusted for the qualitative factors above. Should any of the factors considered by management change, the Company’s estimate of loan losses could also change and would affect the level of future provision expense. While the calculation of the allowance for loan losses utilizes management’s best judgment and all the information available, the adequacy of the allowance for loan losses is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. In addition, regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses, and may require the Bank to make additions to the allowance based on their judgment about information available to them at the time of their examinations. Loans requiring an allocated loan loss provision are generally identified at the servicing officer level based on review of weekly past due reports and/or the loan officer’s communication with borrowers. In addition, past due loans are discussed at weekly officer loan committee meetings to determine if classification is warranted. The Company’s credit department has implemented an internal risk based loan review process to identity potential internally classified loans that supplements the annual independent external loan review. The external review generally covers all loans greater than $3,825 annually. These reviews include analysis of borrower’s financial condition, payment histories and collateral values to determine if a loan should be internally classified. Generally, once classified, an impaired loan analysis is completed by the credit department to determine if the loan is impaired and the amount of allocated allowance required. The Texas and Colorado economies, specifically the Company’s lending area of north, central and southeast Texas and the Colorado Front Range area, continued to expand at a moderate pace during the third quarter of 2019. The Texas economy, which is the second largest in the nation, and the Colorado economy are above the U.S. economy in job creation and employment growth. Overall, the forecast is positive with continued moderate growth in the manufacturing and service sectors. The Texas and Colorado economies are expected to continue to grow in fourth quarter 2019 and into 2020 at a slower pace with a weakened outlook due to uncertainties about tariffs and trade relations and a tight labor market making it difficult to find workers. The risk of loss associated with all segments of the portfolio could increase due to these factors. The economy and other risk factors are minimized by the Company’s underwriting standards, which include the following principles: 1) financial strength of the borrower including strong earnings, high net worth, significant liquidity and acceptable debt to worth ratio, 2) managerial business competence, 3) ability to repay, 4) loan to value, 5) projected cash flow and 6) guarantor financial statements as applicable. The following is a summary of the activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2019 and 2018 : Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total Three months ended September 30, 2019 Balance at beginning of period $ 15,677 $ 29,662 $ 3,696 $ 1,511 $ 343 $ 252 $ 6 $ (72 ) $ 51,075 Provision for loan losses 3,151 2,318 (50 ) 54 (6 ) 15 108 (357 ) 5,233 Charge-offs (5,698 ) — (47 ) — — (31 ) (124 ) — (5,900 ) Recoveries 16 — — — — 8 15 — 39 Balance at end of period $ 13,146 $ 31,980 $ 3,599 $ 1,565 $ 337 $ 244 $ 5 $ (429 ) $ 50,447 Nine months ended September 30, 2019 Balance at beginning of period $ 11,793 $ 27,795 $ 3,320 $ 1,402 $ 241 $ 186 $ 3 $ 62 $ 44,802 Provision for loan losses 8,507 4,185 419 166 96 68 246 (491 ) 13,196 Charge-offs (7,221 ) (3 ) (140 ) (3 ) — (51 ) (303 ) — (7,721 ) Recoveries 67 3 — — — 41 59 — 170 Balance at end of period $ 13,146 $ 31,980 $ 3,599 $ 1,565 $ 337 $ 244 $ 5 $ (429 ) $ 50,447 Three months ended September 30, 2018 Balance at beginning of period $ 11,805 $ 26,192 $ 3,319 $ 1,643 $ 224 $ 187 $ 3 $ (65 ) $ 43,308 Provision for loan losses 1,887 149 (233 ) (151 ) 43 (2 ) 50 (218 ) 1,525 Charge-offs (2,538 ) (82 ) (1 ) — — (8 ) (56 ) — (2,685 ) Recoveries 1 5 1 — — 1 10 — 18 Balance at end of period $ 11,155 $ 26,264 $ 3,086 $ 1,492 $ 267 $ 178 $ 7 $ (283 ) $ 42,166 Nine months ended September 30, 2018 Balance at beginning of period $ 10,599 $ 23,301 $ 3,447 $ 1,583 $ 250 $ 205 $ (32 ) $ 49 $ 39,402 Provision for loan losses 4,183 3,385 (358 ) (91 ) 17 (4 ) 150 (332 ) 6,950 Charge-offs (3,633 ) (435 ) (6 ) — — (27 ) (151 ) — (4,252 ) Recoveries 6 13 3 — — 4 40 — 66 Balance at end of period $ 11,155 $ 26,264 $ 3,086 $ 1,492 $ 267 $ 178 $ 7 $ (283 ) $ 42,166 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of September 30, 2019 and December 31, 2018 : Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total September 30, 2019 Allowance for losses: Individually evaluated for impairment $ 278 $ — $ — $ — $ — $ 7 $ — $ — $ 285 Collectively evaluated for impairment 12,867 31,660 3,599 1,565 337 237 5 (429 ) 49,841 Loans acquired with deteriorated credit quality 1 320 — — — — — — 321 Ending balance $ 13,146 $ 31,980 $ 3,599 $ 1,565 $ 337 $ 244 $ 5 $ (429 ) $ 50,447 Loans: Individually evaluated for impairment $ 3,453 $ 4,954 $ 1,986 $ — $ 173 $ 36 $ — $ — $ 10,602 Collectively evaluated for impairment 2,379,370 6,872,301 1,501,666 376,596 99,465 36,175 636 — 11,266,209 Acquired with deteriorated credit quality 69,946 237,918 7,584 — 4,501 26 — — 319,975 Ending balance $ 2,452,769 $ 7,115,173 $ 1,511,236 $ 376,596 $ 104,139 $ 36,237 $ 636 $ — $ 11,596,786 December 31, 2018 Allowance for losses: Individually evaluated for impairment $ 2,633 $ — $ 92 $ — $ — $ 2 $ — $ — $ 2,727 Collectively evaluated for impairment 9,115 27,795 3,228 1,402 241 184 3 62 42,030 Loans acquired with deteriorated credit quality 45 — — — — — — — 45 Ending balance $ 11,793 $ 27,795 $ 3,320 $ 1,402 $ 241 $ 186 $ 3 $ 62 $ 44,802 Loans: Individually evaluated for impairment $ 7,288 $ 1,734 $ 1,943 $ 3,578 $ — $ 32 $ — $ — $ 14,575 Collectively evaluated for impairment 1,335,194 4,955,178 1,044,265 328,170 66,032 31,699 253 — 7,760,791 Acquired with deteriorated credit quality 18,622 89,865 3,313 — 606 28 — — 112,434 Ending balance $ 1,361,104 $ 5,046,777 $ 1,049,521 $ 331,748 $ 66,638 $ 31,759 $ 253 $ — $ 7,887,800 Nonperforming loans by loan class (excluding loans acquired with deteriorated credit quality) at September 30, 2019 and December 31, 2018 , are summarized as follows: Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total September 30, 2019 Nonaccrual loans $ 3,453 $ 4,589 $ 1,795 $ — $ 173 $ 36 $ — $ 10,046 Loans past due 90 days and still accruing 186 528 532 — — 45 — 1,291 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) — 365 191 — — — — 556 $ 3,639 $ 5,482 $ 2,518 $ — $ 173 $ 81 $ — $ 11,893 December 31, 2018 Nonaccrual loans $ 5,224 $ 1,329 $ 1,775 $ 3,578 $ — $ 32 $ — $ 11,938 Loans past due 90 days and still accruing — — — — — 5 — 5 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 114 405 168 — — — — 687 $ 5,338 $ 1,734 $ 1,943 $ 3,578 $ — $ 37 $ — $ 12,630 The accrual of interest is discontinued on a loan when management believes after considering collection efforts and other factors that the borrower's financial condition is such that collection of interest is doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. Cash collections on nonaccrual loans are generally credited to the loan receivable balance, and no interest income is recognized on those loans until the principal balance has been collected. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on 1) the present value of expected future cash flows discounted at the loans effective interest rate; 2) the loan's observable market price; or 3) the fair value of collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use the other methods to determine the level of impairment of a loan if such loan is not collateral dependent. All commercial, real estate, agricultural loans and troubled debt restructurings are considered for individual impairment analysis. Smaller balance consumer loans are collectively evaluated for impairment. Impaired loans by loan class (excluding loans acquired with deteriorated credit quality) at September 30, 2019 and December 31, 2018 , are summarized as follows: Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total September 30, 2019 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 1,500 $ — $ — $ — $ — $ 5 $ — $ 1,505 Impaired loans with no allowance for loan losses 1,953 4,954 1,986 — 173 31 — 9,097 Total $ 3,453 $ 4,954 $ 1,986 $ — $ 173 $ 36 $ — $ 10,602 Unpaid principal balance of impaired loans $ 11,590 $ 5,081 $ 2,129 $ — $ 173 $ 38 $ — $ 19,011 Allowance for loan losses on impaired loans $ 278 $ — $ — $ — $ — $ 7 $ — $ 285 December 31, 2018 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 6,416 $ — $ 134 $ — $ — $ 1 $ — $ 6,551 Impaired loans with no allowance for loan losses 872 1,734 1,809 3,578 — 31 — 8,024 Total $ 7,288 $ 1,734 $ 1,943 $ 3,578 $ — $ 32 $ — $ 14,575 Unpaid principal balance of impaired loans $ 9,822 $ 1,860 $ 2,056 $ 3,579 $ — $ 38 $ — $ 17,355 Allowance for loan losses on impaired loans $ 2,633 $ — $ 92 $ — $ — $ 2 $ — $ 2,727 For the three months ended September 30, 2019 Average recorded investment in impaired loans $ 6,971 $ 3,782 $ 1,593 $ — $ 58 $ 33 $ — $ 12,437 Interest income recognized on impaired loans $ 4 $ 6 $ 3 $ — $ — $ — $ — $ 13 For the nine months ended September 30, 2019 Average recorded investment in impaired loans $ 7,050 $ 3,270 $ 1,681 $ 895 $ 43 $ 33 $ — $ 12,972 Interest income recognized on impaired loans $ 25 $ 34 $ 35 $ 114 $ — $ 5 $ — $ 213 For the three months ended September 30, 2018 Average recorded investment in impaired loans $ 9,004 $ 2,850 $ 2,165 $ — $ — $ 41 $ — $ 14,060 Interest income recognized on impaired loans $ 36 $ 19 $ 9 $ — $ — $ 2 $ — $ 66 For the nine months ended September 30, 2018 Average recorded investment in impaired loans $ 9,327 $ 2,901 $ 2,056 $ — $ — $ 49 $ — $ 14,333 Interest income recognized on impaired loans $ 56 $ 33 $ 53 $ — $ — $ 2 $ — $ 144 Certain impaired loans have adequate collateral and do not require a related allowance for loan loss. The Company will charge-off that portion of any loan which management considers a loss. Commercial and real estate loans are generally considered for charge-off when exposure beyond collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition. The restructuring of a loan is considered a “troubled debt restructuring” if both 1) the borrower is experiencing financial difficulties and 2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extending amortization and other actions intended to minimize potential losses. A “troubled debt restructured” loan is identified as impaired and measured for credit impairment as of each reporting period in accordance with the guidance in Accounting Standards Codification (ASC) 310-10-35. Modifications primarily relate to extending the amortization periods of the loans and interest rate concessions. The majority of these loans were identified as impaired prior to restructuring; therefore, the modifications did not materially impact the Company’s determination of the allowance for loan losses. The recorded investment in troubled debt restructurings, including those on nonaccrual, was $1,254 and $1,925 as of September 30, 2019 and December 31, 2018 , respectively. Following is a summary of loans modified under troubled debt restructurings during the three and nine months ended September 30, 2019 : Commercial Commercial Residential Single-Family Agricultural Consumer Other Total Troubled debt restructurings during the three months ended September 30, 2019 Number of contracts — — 1 — — — — 1 Pre-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 Post-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 Troubled debt restructurings during the nine months ended September 30, 2019 Number of contracts — — 1 — — — — 1 Pre-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 Post-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 There were no loans modified under troubled debt restructurings during the three and nine months ended September 30, 2018 . At September 30, 2019 and 2018 , there were no loans modified under troubled debt restructurings during the previous twelve month period that subsequently defaulted during the three and nine months ended September 30, 2019 and 2018 , respectively. At September 30, 2019 and 2018 , the Company had no commitments to lend additional funds to any borrowers with loans whose terms have been modified under troubled debt restructurings. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents information regarding the aging of past due loans by loan class as of September 30, 2019 and December 31, 2018 : Loans 30-89 Days Past Due Loans 90 Days or More Past Due Total Past Due Loans Current Loans Total Loans September 30, 2019 Commercial $ 6,225 $ 3,614 $ 9,839 $ 2,372,984 $ 2,382,823 Commercial real estate, construction, land and land development 9,846 4,421 14,267 6,862,988 6,877,255 Residential real estate 3,367 1,745 5,112 1,498,540 1,503,652 Single-family interim construction 944 — 944 375,652 376,596 Agricultural 2,166 173 2,339 97,299 99,638 Consumer 188 81 269 35,942 36,211 Other — — — 636 636 22,736 10,034 32,770 11,244,041 11,276,811 Acquired with deteriorated credit quality 11,832 8,726 20,558 299,417 319,975 $ 34,568 $ 18,760 $ 53,328 $ 11,543,458 $ 11,596,786 December 31, 2018 Commercial $ 15,426 $ 4,366 $ 19,792 $ 1,322,690 $ 1,342,482 Commercial real estate, construction, land and land development 3,435 — 3,435 4,953,477 4,956,912 Residential real estate 4,199 1,035 5,234 1,040,974 1,046,208 Single-family interim construction 774 3,578 4,352 327,396 331,748 Agricultural — — — 66,032 66,032 Consumer 135 35 170 31,561 31,731 Other — — — 253 253 23,969 9,014 32,983 7,742,383 7,775,366 Acquired with deteriorated credit quality 2,939 957 3,896 108,538 112,434 $ 26,908 $ 9,971 $ 36,879 $ 7,850,921 $ 7,887,800 The Company’s internal classified report is segregated into the following categories: 1) Pass/Watch, 2) Special Mention, 3) Substandard and 4) Doubtful. The loans placed in the Pass/Watch category reflect the Company’s opinion that the loans reflect potential weakness that requires monitoring on a more frequent basis. The loans in the Special Mention category reflect the Company’s opinion that the credit contains weaknesses which represent a greater degree of risk and warrant extra attention. These loans are reviewed monthly by officers and senior management to determine if a change in category is warranted. The loans placed in the Substandard category are considered to be potentially inadequately protected by the current debt service capacity of the borrower and/or the pledged collateral. These credits, even if apparently protected by collateral value, have shown weakness related to adverse financial, managerial, economic, market or political conditions, which may jeopardize repayment of principal and interest. There is a possibility that some future loss could be sustained by the Company if such weakness is not corrected. The Doubtful category includes loans that are in default or principal exposure is probable. Substandard and Doubtful loans are individually evaluated to determine if they should be classified as impaired and an allowance is allocated if deemed necessary under ASC 310-10. The loans that are not impaired are included with the remaining “pass” credits in determining the portion of the allowance for loan loss based on historical loss experience and other qualitative factors. The portfolio is segmented into categories including: commercial loans, consumer loans, commercial real estate loans, residential real estate loans and agricultural loans. The adjusted historical loss percentage is applied to each category. Each category is then added together to determine the allowance allocated under ASC 450-20. A summary of loans by credit quality indicator by class as of September 30, 2019 and December 31, 2018 , is as follows: Pass Pass/ Watch Special Mention Substandard Doubtful Total September 30, 2019 Commercial $ 2,328,196 $ 44,848 $ 53,107 $ 26,618 $ — $ 2,452,769 Commercial real estate, construction, land and land development 6,842,137 155,067 63,956 54,013 — 7,115,173 Residential real estate 1,497,665 3,850 1,018 8,703 — 1,511,236 Single-family interim construction 375,985 — 611 — — 376,596 Agricultural 93,136 3,463 2,161 5,379 — 104,139 Consumer 36,061 41 — 135 — 36,237 Other 636 — — — — 636 $ 11,173,816 $ 207,269 $ 120,853 $ 94,848 $ — $ 11,596,786 December 31, 2018 Commercial $ 1,279,024 $ 18,378 $ 30,783 $ 32,919 $ — $ 1,361,104 Commercial real estate, construction, land and land development 4,895,217 81,693 40,601 29,266 — 5,046,777 Residential real estate 1,038,283 3,617 707 6,914 — 1,049,521 Single-family interim construction 327,939 — 231 3,578 — 331,748 Agricultural 61,055 2,918 2,093 572 — 66,638 Consumer 31,559 67 — 133 — 31,759 Other 253 — — — — 253 $ 7,633,330 $ 106,673 $ 74,415 $ 73,382 $ — $ 7,887,800 The Company has acquired certain loans which experienced credit deterioration since origination (purchased credit impaired (PCI) loans). The Company has included PCI loans in the above grading tables. The following provides additional detail on the grades applied to those loans at September 30, 2019 and December 31, 2018 : Pass Pass/ Special Mention Substandard Doubtful Total September 30, 2019 $ 248,975 $ 24,666 $ 9,229 $ 37,105 $ — $ 319,975 December 31, 2018 40,940 32,427 14,817 24,250 — 112,434 PCI loans may remain on accrual status to the extent the company can reasonably estimate the amount and timing of expected future cash flows. At September 30, 2019 and December 31, 2018 , nonaccrual PCI loans were $11,457 and $6,996 , respectively. Accretion on PCI loans is based on estimated future cash flows, regardless of contractual maturity. The following table summarizes the outstanding balance and related carrying amount of purchased credit impaired loans by acquired bank as of the acquisition date for the acquisitions occurring in 2019 and 2018 : Acquisition Date January 1, 2019 June 1, 2018 Guaranty Bancorp Integrity Bancshares, Inc. Outstanding balance $ 341,645 $ 57,317 Nonaccretable difference (16,622 ) (9,969 ) Accretable yield (13,299 ) (128 ) Carrying amount $ 311,724 $ 47,220 The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Outstanding balance $ 357,368 $ 129,333 Carrying amount 319,975 112,434 There was an allocation of $321 and $45 established in the allowance for loan losses relating to PCI loans at September 30, 2019 and December 31, 2018 , respectively. The changes in accretable yield during the nine months ended September 30, 2019 and 2018 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are presented in the table below. For the Nine Months Ended September 30, 2019 2018 Balance at January 1, $ 1,436 $ 1,546 Additions 13,299 128 Accretion (4,076 ) (1,503 ) Transfers from nonaccretable — 1,319 Balance at September 30, $ 10,659 $ 1,490 |
Other Borrowings and Junior Sub
Other Borrowings and Junior Subordinated Debentures | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Other Borrowings and Junior Subordinated Debentures | Other Borrowings and Junior Subordinated Debentures Other borrowings totaled $212,642 and $137,316 at September 30, 2019 and December 31, 2018 , respectively. Junior subordinated debentures totaled $53,775 and $27,852 at September 30, 2019 and December 31, 2018 , respectively. In connection with the Guaranty acquisition on January 1, 2019, as further discussed in Note 13 , Business Combinations, the Company assumed $40,000 in aggregate principal of 5.75% fixed and floating rate subordinated notes due July 20, 2026 and trust preferred securities totaling $25,774 issued under two wholly-owned statutory business trusts, Guaranty Capital Trust III and Cenbank Statutory Trust III. As of September 30, 2019 , the Company had $35,000 of borrowings against its revolving line of credit with an unrelated commercial bank. There were no borrowings against the line as of December 31, 2018 . |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) which requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. This ASU became effective for annual and interim periods for the Company on January 1, 2019. The Company adopted the standard by applying the alternative transition method whereby comparative periods were not restated, and an immaterial cumulative effect adjustment to the opening balance of retained earnings was recognized as of January 1, 2019. The Company elected the ASU’s package of three practical expedients, which allowed the Company to forego a reassessment of (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) the initial direct costs for any existing leases. The Company also elected not to apply the recognition requirements of the ASU to any short-term leases (as defined by related accounting guidance) and will account for lease and non-lease components separately because such amounts are readily determinable under most lease contracts and because this election results in a lower impact on the Company's balance sheet. The Company’s primary leasing activities relate to certain real estate operating leases entered into in support of the Company’s branch operations and back office operations. The Company leases 21 of its 93 branches. The Company’s branch locations operated under lease agreements have all been designated as operating leases. In addition, the Company leases certain equipment under operating leases. The Company does not have leases designated as finance leases. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately as the non-lease component amounts are readily determinable under most leases. As a result of implementing ASU 2016-02, the Company recognized an operating lease ROU asset of $38,812 and an operating lease liability of $33,953 on January 1, 2019, with no impact on the Company's consolidated statement of income or consolidated statement of cash flows compared to the prior lease accounting model. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. As of September 30, 2019 the Company’s lease ROU assets and related lease liabilities were $33,292 and $30,166 , respectively, and have remaining terms ranging from 1 to 31 years , including extension options that the Company is reasonably certain will be exercised. The table below summarizes net lease cost: Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Operating lease cost $ 1,565 $ 5,348 Variable lease cost 452 1,454 Sublease income (57 ) (171 ) Net lease cost $ 1,960 $ 6,631 The table below summarizes other information related to operating leases: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,479 ROU assets obtained in exchange for lease liabilities 40,440 Weighted average remaining lease term - operating leases, in years 7.73 Weighted average discount rate - operating leases 3.35 % The following table outlines lease payment obligations as outlined in the Company’s lease agreements for each of the next five years and thereafter in addition to a reconcilement to the Company’s current lease liability as of September 30, 2019 . 2019 $ 5,906 2020 5,912 2021 5,109 2022 4,565 2023 3,505 Thereafter 9,275 Total lease payments 34,272 Less imputed interest (4,106 ) $ 30,166 As of September 30, 2019 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. The commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of this instrument. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. At September 30, 2019 and December 31, 2018 , the approximate amounts of these financial instruments were as follows: September 30, December 31, 2019 2018 Commitments to extend credit $ 2,315,471 $ 1,761,724 Standby letters of credit 24,686 14,997 $ 2,340,157 $ 1,776,721 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained if deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, farm crops, property, plant and equipment and income-producing commercial properties. Letters of credit are written conditional commitments used by the Company to guarantee the performance of a customer to a third party. The Company’s policies generally require that letter of credit arrangements contain security and debt covenants similar to those contained in loan arrangements. In the event the customer does not perform in accordance with the terms of the agreement with the third party, the Company would be required to fund the commitment. The maximum potential amount of future payments the Company could be required to make is represented by the contractual amount shown in the table above. If the commitment is funded, the Company would be entitled to seek recovery from the customer. As of September 30, 2019 and December 31, 2018 , no amounts have been recorded as liabilities for the Company’s potential obligations under these guarantees. Litigation The Company is involved in certain legal actions arising from normal business activities. Management believes that the outcome of such proceedings will not materially affect the financial position, results of operations or cash flows of the Company. A legal proceeding that the Company believes could become material is described below. Independent Bank is a party to a legal proceeding inherited by Independent Bank in connection with its acquisition of BOH Holdings, Inc. and its subsidiary, Bank of Houston (BOH). The plaintiffs in the case are alleging that Independent Bank aided and abetted or participated in a fraudulent scheme. Independent Bank is pursuing insurance coverage for these claims, including reimbursement for defense costs. The Company believes the claims made in this lawsuit are without merit and is vigorously defending the lawsuit. The Company is unable to predict when the matter will be resolved, the ultimate outcome or potential costs or damages to be incurred. Please see Part II, Item 1. for more details on this lawsuit. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income tax expense for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense for the period $ 14,903 $ 9,141 $ 39,418 $ 23,465 Effective tax rate 21.1 % 20.4 % 21.7 % 19.9 % The effective tax rates for 2019 and 2018 differ from the statutory federal tax rate of 21% largely due to tax exempt interest income earned on certain investment securities and loans, the nontaxable earnings on bank owned life insurance, excess tax expense and benefits on restricted stock vestings, nondeductible compensation, acquisition related expenses, and state income tax. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures , establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar 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 for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The Company elected the fair value option for certain residential mortgage loans held for sale originated after July 1, 2018 in accordance with Accounting Standard Codification (ASC) 825, Financial Instruments. This election allows for a more effective offset of the changes in fair values of the loans 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 . The Company has not elected the fair value option for other residential mortgage loans held for sale primarily because they are not economically hedged using derivative instruments. See below and Note 10 , Derivative Financial Instruments, for additional information. Assets and Liabilities Measured on a Recurring Basis The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of September 30, 2019 and December 31, 2018 by level within the ASC Topic 820 fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using Assets/ Liabilities Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2019 Assets: Investment securities available for sale: U.S. treasuries $ 50,835 $ — $ 50,835 $ — Government agency securities 181,035 — 181,035 — Obligations of state and municipal subdivisions 345,013 — 345,013 — Corporate bonds 7,195 — 7,195 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 498,538 — 498,538 — Other securities 1,200 — 1,200 — Total investment securities available for sale $ 1,083,816 $ — $ 1,083,816 $ — Loans held for sale, fair value option elected (1) $ 27,432 $ — $ 27,432 $ — Derivative financial instruments: Interest rate lock commitments 1,504 — 1,504 — Forward mortgage-backed securities trades 37 — 37 — Loan customer counterparty 8,397 — 8,397 — Liabilities: Derivative financial instruments: Forward mortgage-backed securities trades 70 — 70 — Financial institution counterparty 9,077 — 9,077 — December 31, 2018 Assets: Investment securities available for sale: U.S. treasuries $ 29,643 $ — $ 29,643 $ — Government agency securities 150,230 — 150,230 — Obligations of state and municipal subdivisions 185,007 — 185,007 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 320,470 — 320,470 — Total investment securities available for sale $ 685,350 $ — $ 685,350 $ — Loans held for sale, fair value option elected (1) $ 27,871 $ — $ 27,871 $ — Derivative financial instruments: Interest rate lock commitments 822 — 822 — Loan customer counterparty 360 — 360 — Financial institution counterparty 109 — 109 — Liabilities: Derivative financial instruments: Forward mortgage-backed securities trades 226 — 226 — Loan customer counterparty 108 — 108 — Financial institution counterparty 406 — 406 — (1) At September 30, 2019 and December 31, 2018 , loans held for sale for which the fair value option was elected had an aggregate outstanding principal balance of $26,500 and $26,594 . There were no mortgage loans held for sale under the fair value option that were 90 days or greater past due or on nonaccrual at September 30, 2019 . There were no transfers between level categorizations and no changes in valuation methodologies for the periods presented. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Securities classified as available for sale are reported at fair value utilizing Level 1 and Level 2 inputs. Securities are classified within Level 1 when quoted market prices are available in an active market. Inputs include securities that have quoted prices in active markets for identical assets. For securities utilizing Level 2 inputs, 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 and other yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. Certain mortgage loans held for sale are measured at fair value on a recurring basis due to the Company's election to adopt fair value accounting treatment for those loans originated for which the Company has entered into certain derivative financial instruments as part of its mortgage banking and related risk management activities. These instruments include interest rate lock commitments and mandatory forward commitments to sell these loans to investors known as forward mortgage-backed securities trades. This election allows for a more effective offset of the changes in fair values of the assets and the mortgage related derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC 815, Derivatives and Hedging . Mortgage loans held for sale, for which the fair value option was elected, which are sold on a servicing released basis, are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted to credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures. For mortgage loans held for sale for which the fair value option was 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. The Company has no continuing involvement in any residential mortgage loans sold. The estimated fair values of interest rate lock commitments utilize current secondary market prices for underlying loans and estimated servicing value with similar coupons, maturity and credit quality, subject to the anticipated loan funding probability (pull-through rate). The fair value of interest rate lock commitments is subject to change primarily due to changes in interest rates and the estimated pull-through rate. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on observable market inputs. Forward mortgage-backed securities trades are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, the Company utilized the exchange price or dealer market price for the particular derivative contract; therefore these contracts are classified as Level 2. The estimated fair values are subject to change primarily due to changes in interest rates. The Company also enters into certain interest rate derivative positions that are not designated as hedging instruments. The estimated fair value of these commercial loan interest rate swaps are obtained from a pricing service that provides the swaps' unwind value (Level 2 inputs). See Note 10 , Derivative Financial Instruments, for more information. Assets and Liabilities Measured on a Nonrecurring Basis In accordance with ASC Topic 820, certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table presents the assets carried on the consolidated balance sheet by caption and by level in the fair value hierarchy at September 30, 2019 and December 31, 2018 , for which a nonrecurring change in fair value has been recorded: Fair Value Measurements at Reporting Date Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Period Ended Total Losses September 30, 2019 Assets: Impaired loans $ 2,409 $ — $ — $ 2,409 $ 4,418 Other real estate 6,192 — — 6,192 982 December 31, 2018 Assets: Impaired loans $ 3,824 $ — $ — $ 3,824 $ 2,227 Impaired loans (loans which are not expected to repay all principal and interest amounts due in accordance with the original contractual terms) are measured at an observable market price (if available) or at the fair value of the loan’s collateral (if collateral dependent). Fair value of the loan’s collateral is determined by appraisals or independent valuation, which is then adjusted for the estimated costs related to liquidation of the collateral. Management’s ongoing review of appraisal information may result in additional discounts or adjustments to valuation based upon more recent market sales activity or more current appraisal information derived from properties of similar type and/or locale. Therefore, the Company has categorized its impaired loans as Level 3. Other real estate is measured at fair value on a nonrecurring basis (upon initial recognition or subsequent impairment). Other real estate is classified within Level 3 of the valuation hierarchy. When transferred from the loan portfolio, other real estate is adjusted to fair value less estimated selling costs and is subsequently carried at the lower of carrying value or fair value less estimated selling costs. The fair value is determined using an external appraisal process, discounted based on internal criteria. Therefore, the Company has categorized its other real estate as Level 3. In addition, mortgage loans held for sale not recorded under the fair value option are required to be measured at the lower of cost or fair value. The fair value of these loans is based upon binding quotes or bids from third party investors. As of September 30, 2019 and December 31, 2018 , all mortgage loans held for sale not recorded under the fair value option were recorded at cost. Fair Value of Financial Instruments not Recorded at Fair Value The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial instruments that are reported at amortized cost on the Company's consolidated balance sheets were as follows at September 30, 2019 and December 31, 2018 : Fair Value Measurements at Reporting Date Using Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2019 Financial assets: Cash and cash equivalents $ 570,101 $ 570,101 $ 570,101 $ — $ — Certificates of deposit held in other banks 5,715 5,978 — 5,978 — Loans held for sale, at cost 5,497 5,560 — 5,560 — Loans, net 11,544,582 11,664,979 — — 11,664,979 FHLB of Dallas stock and other restricted stock 29,918 29,918 — 29,918 — Accrued interest receivable 36,825 36,825 — 36,825 — Financial liabilities: Deposits 11,727,885 11,749,640 — 11,749,640 — Accrued interest payable 7,982 7,982 — 7,982 — FHLB advances 555,000 495,933 — 495,933 — Other borrowings 212,642 222,100 — 222,100 — Junior subordinated debentures 53,775 50,225 — 50,225 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — December 31, 2018 Financial assets: Cash and cash equivalents $ 130,779 $ 130,779 $ 130,779 $ — $ — Certificates of deposit held in other banks 1,225 1,224 — 1,224 — Loans held for sale, at cost 4,856 4,974 — 4,974 — Loans, net 7,839,695 7,807,823 — — 7,807,823 FHLB of Dallas stock and other restricted stock 26,870 26,870 — 26,870 — Accrued interest receivable 24,253 24,253 — 24,253 — Financial liabilities: Deposits 7,737,794 7,750,059 — 7,750,059 — Accrued interest payable 6,183 6,183 — 6,183 — FHLB advances 290,000 287,450 — 287,450 — Other borrowings 137,316 138,450 — 138,450 — Junior subordinated debentures 27,852 31,370 — 31,370 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments , other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows: Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value. Certificates of deposit held in other banks: The fair value of certificates of deposit held in other banks is based upon current market rates. Loans held for sale, at cost: The fair value of loans held for sale is determined based upon commitments on hand from investors. Loans: A discounted cash flow model is used to estimate the fair value of the loans. The discounted cash flow approach models the credit losses directly in the projected cash flows, applying various assumptions regarding credit, interest and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. Federal Home Loan Bank of Dallas and other restricted stock: The carrying value of restricted securities such as stock in the Federal Home Loan Bank of Dallas and Independent Bankers Financial Corporation approximates fair value. Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is their carrying amounts). The carrying amounts of variable-rate certificates of deposit (CDs) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal Home Loan Bank advances, line of credit and federal funds purchased: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements. Other borrowings: The carrying value of repurchase agreements approximates fair value due to the short term nature. The fair value of private subordinated debentures are based upon prevailing rates on similar debt in the market place. The subordinated debentures that are publicly traded are valued based on indicative bid prices based upon market pricing observations in the current market. Junior subordinated debentures: The fair value of junior subordinated debentures is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Accrued interest: The carrying amounts of accrued interest approximate their fair values. Off-balance sheet instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The fair value of commitments is not material. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into certain derivative financial instruments as part of its hedging strategy. These financial instruments are not designated as hedging instruments and are used for asset and liability management related to the Company's mortgage banking activities and commercial customers' financing needs. All derivatives are carried at fair value in either other assets or other liabilities. Through the normal course of business, the Company enters into interest rate lock commitments with consumers to originate mortgage loans at a specified interest rate. These commitments, which contain fixed expiration dates, offer the borrower an interest rate guarantee provided the loan meets underwriting guidelines and closes within the timeframe established by the Company. The Company manages the changes in fair value associated with changes in interest rates related to interest rate lock commitments by using forward sold commitments known as forward mortgage-backed securities trades. These instruments are typically entered into at the time the interest rate lock commitment is made. The Company also offers certain derivatives products, primarily interest rate swaps, directly to qualified commercial banking customers to facilitate their risk management strategies. The interest rate swap derivative positions relate to transactions in which the Company enters into an interest rate swap with a customer, while at the same time entering into an offsetting interest rate swap with another financial institution. An interest rate swap transaction allows customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. The following table provides the outstanding notional balances and fair values of outstanding derivative positions at September 30, 2019 and December 31, 2018 : Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value September 30, 2019 Interest rate lock commitments $ 54,552 $ 1,504 $ — Forward mortgage-backed securities trades 50,500 37 70 Commercial loan interest rate swaps: Loan customer counterparty 240,317 8,397 — Financial institution counterparty 240,317 — 9,077 December 31, 2018 Interest rate lock commitments $ 20,306 $ 822 $ — Forward mortgage-backed securities trades 27,500 — 226 Commercial loan interest rate swaps: Loan customer counterparty 25,055 360 108 Financial institution counterparty 25,055 109 406 The credit exposure related to interest rate swaps is limited to the net favorable value of all swaps by each counterparty, which was approximately $8,397 at September 30, 2019 . In some cases collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. At September 30, 2019 , cash of $5,872 and securities of $2,637 were pledged as collateral for these derivatives. The changes in the fair value of interest rate lock commitments and the forward sales of mortgage-back securities are recorded in mortgage banking revenue. These gains and losses were not attributable to instrument-specific credit risk. For interest rate swaps, because the Company acts as an intermediary for our customer, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on the results of operations. Income for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Derivatives not designated as hedging instruments Interest rate lock commitments $ 126 $ 906 $ 682 $ 906 Forward mortgage-backed securities trades 61 110 156 110 |
Stock Awards
Stock Awards | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock Awards and Stock Warrants | Stock Awards The Company grants common stock awards to certain employees of the Company. In connection with the Company's initial public offering in April 2013, the Board of Directors adopted the 2013 Equity Incentive Plan. Under this plan, the Compensation Committee may grant awards to certain employees of the Company in the form of restricted stock, restricted stock rights, restricted stock units, qualified and nonqualified stock options, performance-based share awards and other equity-based awards. All stock awards issued under expired plans prior to 2013 are fully vested. In May 2018, the shareholders of the Company voted to amend the plan to increase the reserved shares of common stock to be awarded by the Company’s compensation committee by 1,500,000 for a total of 2,300,000 reserved shares. As of September 30, 2019 , there were 1,435,222 shares remaining available for grant for future awards. The shares currently issued under the 2013 Plan are restricted stock awards and will vest evenly over the required employment period, generally ranging from three to five years . Shares granted under the 2013 Equity Incentive Plan were issued at the date of grant and receive dividends. In connection with the acquisition of Guaranty, as further described in Note 13 , Business Combinations, unvested awards of restricted Guaranty common stock granted under Guaranty’s 2015 Long-Term Incentive Plan (Guaranty 2015 RSA), as amended, that were outstanding as of January 1, 2019, the acquisition date, were converted into awards of restricted shares of Independent common stock (Replacement RSA) with the same terms and conditions as were applicable under such Guaranty 2015 RSA, except with respect to any performance-vesting Guaranty 2015 RSA, which became a service-vesting RSA only. The Replacement RSA will vest over the remaining service period, generally in two years , and do not receive dividends. The following table summarizes the activity in nonvested shares for the nine months ended September 30, 2019 and 2018 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, December 31, 2018 252,903 $ 62.81 Acquired awards replaced during the period 70,248 45.77 Granted during the period 138,608 51.14 Vested during the period (143,516 ) 54.66 Forfeited during the period (13,615 ) 46.55 Nonvested shares, September 30, 2019 304,628 $ 58.14 Nonvested shares, December 31, 2017 242,056 $ 49.17 Granted during the period 127,712 72.09 Vested during the period (111,520 ) 44.33 Forfeited during the period (3,845 ) 64.47 Nonvested shares, September 30, 2018 254,403 $ 62.57 Compensation expense related to these awards is recorded based on the fair value of the award at the date of grant and totaled $1,910 and $5,834 for the three and nine months ended September 30, 2019 , respectively, and $1,541 and $4,496 for the three and nine months ended September 30, 2018 , respectively. Compensation expense is recorded in salaries and employee benefits in the accompanying consolidated statements of income. At September 30, 2019 , future compensation expense is estimated to be $13,260 and will be recognized over a remaining weighted average period of 2.55 years . The fair value of common stock awards that vested during the nine months ended September 30, 2019 and 2018 was $7,752 and $7,960 , respectively. The Company recorded $11 and $21 in excess tax expense (benefits) on vested restricted stock to income tax expense for the three and nine months ended September 30, 2019 , respectively, and $(19) and $(632) for the three and nine months ended September 30, 2018 , respectively. There were no modifications of stock agreements during the nine months ended September 30, 2019 and 2018 that resulted in significant additional incremental compensation costs. At September 30, 2019 , the future vesting schedule of the nonvested shares is as follows: First year 117,548 Second year 100,901 Third year 64,639 Fourth year 19,460 Fifth year 2,080 Total nonvested shares 304,628 |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Regulatory Matters | Regulatory Matters Under banking law, there are legal restrictions limiting the amount of dividends the Bank can declare. Approval of the regulatory authorities is required if the effect of dividends declared would cause the regulatory capital of the Bank to fall below specified minimum levels. For state banks, subject to regulatory capital requirements, payment of dividends is generally allowed to the extent of net profits. 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. Tier 2 capital for the Company includes permissible portions of the Company's subordinated notes. The permissible portion of qualified subordinated notes decreases 20% per year during the final five years of the term of the notes. The Company is subject to the Basel III regulatory capital framework (the "Basel III Capital Rules"). The implementation of the capital conservation buffer was effective for the Company on January 1, 2016 at the 0.625% level and was phased in over a four-year period increasing by 0.625% each year, until it reached 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and requires increased capital levels for the purpose of capital distributions and other payments. Failure to meet the full amount of the buffer will result in restrictions on the Company's ability to make capital distributions, including dividend payments and stock repurchases and to pay discretionary bonuses to executive officers. Fully phased in on January 1, 2019, the Basel III Capital Rules require the Company and Bank to maintain (i) a minimum ratio of Common Equity Tier 1 ("CET1") capital to risk-weighted assets of at least 4.5%, plus the 2.5% capital conservation buffer (7.0%), (ii) a minimum ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (8.5%), (iii) a minimum ratio of Total capital (that is, Tier 1 plus Tier 2) to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (10.5%) and (iv) a minimum leverage ratio of 4.0%, calculated as the ratio of Tier 1 capital to average quarterly assets. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total, CET1 and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of September 30, 2019 and December 31, 2018 , the Company and the Bank meet all capital adequacy requirements to which they are subject, including the capital buffer requirement. As of September 30, 2019 and December 31, 2018 , the Bank’s capital ratios exceeded those levels necessary to be categorized as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Bank must maintain minimum total risk based, CET1, Tier 1 risk based and Tier 1 leverage ratios as set forth in the table. There are no conditions or events that management believes have changed the Bank’s category. The following table presents the actual capital amounts and required ratios of the Company and Bank as of September 30, 2019 and December 31, 2018 . The minimum required capital amounts presented as of September 30, 2019 include the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Actual Minimum Capital Required Required to be Considered Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2019 Total capital to risk weighted assets: Consolidated $ 1,464,698 11.49 % $ 1,338,856 10.50 % N/A N/A Bank 1,514,218 11.88 1,338,517 10.50 $ 1,274,778 10.00 % Tier 1 capital to risk weighted assets: Consolidated 1,256,251 9.85 1,083,836 8.50 N/A N/A Bank 1,463,771 11.48 1,083,561 8.50 1,019,822 8.00 Common equity tier 1 to risk weighted assets: Consolidated 1,200,651 9.42 892,571 7.00 N/A N/A Bank 1,463,771 11.48 892,344 7.00 828,606 6.50 Tier 1 capital to average assets: Consolidated 1,256,251 9.21 545,598 4.00 N/A N/A Bank 1,463,771 10.73 545,448 4.00 681,810 5.00 December 31, 2018 Total capital to risk weighted assets: Consolidated $ 1,072,156 12.58 % $ 681,686 8.00 % N/A N/A Bank 1,054,783 12.39 681,004 8.00 $ 851,255 10.00 % Tier 1 capital to risk weighted assets: Consolidated 887,354 10.41 511,264 6.00 N/A N/A Bank 1,009,981 11.86 510,753 6.00 681,004 8.00 Common equity tier 1 to risk weighted assets: Consolidated 856,754 10.05 383,448 4.50 N/A N/A Bank 1,009,981 11.86 383,065 4.50 553,316 6.50 Tier 1 capital to average assets: Consolidated 887,354 9.57 370,727 4.00 N/A N/A Bank 1,009,981 10.91 370,412 4.00 463,015 5.00 |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combination Guaranty Bancorp On January 1, 2019, the Company acquired 100% of the outstanding stock of Guaranty Bancorp (Guaranty) and its subsidiary, Guaranty Bank and Trust Company (Guaranty Bank), Denver, Colorado. As a result of the acquisition, the Company added 32 full service branch locations along the Colorado Front Range, including locations throughout the Denver metropolitan area and along I-25 to Fort Collins expanding the Company's footprint in Colorado. The Company issued 13,179,748 shares of Company stock for the outstanding shares of Guaranty common stock, including restricted stock replacement awards. The Company has recognized total goodwill of $272,224 which is calculated as the excess of both the consideration exchanged and liabilities assumed compared to the estimated fair market value of identifiable assets acquired. The goodwill in this acquisition resulted from a combination of expected synergies and expansion into desirable Colorado markets. None of the goodwill recognized is expected to be deductible for income tax purposes. The Company has incurred expenses related to the acquisition of approximately $10,217 and $33,503 for the three and nine months ended September 30, 2019 , respectively, which is included in salaries and benefits and acquisition expense in the consolidated statements of income. The Company incurred expense of $1,560 during the year ended December 31, 2018. In addition, for the nine months ended September 30, 2019 , the Company paid offering costs totaling $804 which were recorded as a reduction to stock issuance proceeds through additional paid in capital. Fair values of the assets acquired and liabilities assumed in this transaction as of the closing date and subsequent measurement period adjustments are as follows: Initially Recorded at Acquisition Date Measurement Period Adjustments Adjusted Values as of September 30, 2019 Assets of acquired bank: Cash and cash equivalents $ 39,913 $ — $ 39,913 Certificates of deposit held in other banks 262 — 262 Securities available for sale 561,052 — 561,052 Restricted stock 27,794 — 27,794 Loans 2,788,159 1,709 2,789,868 Premises and equipment 65,786 — 65,786 Other real estate owned 1,710 119 1,829 Goodwill 270,583 1,641 272,224 Other intangible assets 71,518 — 71,518 Bank owned life insurance 80,837 — 80,837 Other assets 31,517 470 31,987 Total assets acquired $ 3,939,131 $ 3,939 $ 3,943,070 Liabilities of acquired bank: Deposits $ 3,108,810 $ — $ 3,108,810 Repurchase agreements 8,475 — 8,475 FHLB advances 142,653 — 142,653 Other borrowings 40,000 — 40,000 Junior subordinated debentures 25,774 — 25,774 Other liabilities 11,538 3,939 15,477 Total liabilities assumed $ 3,337,250 $ 3,939 $ 3,341,189 Common stock of 13,109,500 issued at $45.77 per share $ 600,022 $ — $ 600,022 Consideration attributable to 70,248 shares of restricted stock replacement awards $ 1,850 $ — $ 1,850 Cash paid $ 9 $ — $ 9 The nature of the measurement period adjustments noted in the table above was a result of information obtained subsequent to our initial reporting of provisional fair values but prior to finalizing our fair values in accordance with ASC 805, Business Combinations . Such information was determined to be a condition in existence as of acquisition date. The income effects resulting from the recorded measurement period adjustments during the period ending September 30, 2019 are immaterial for separate disclosure. Non-credit impaired loans had a fair value of $2,478,144 at acquisition date and contractual balance of $2,573,355 . As of acquisition date, the Company expects that an insignificant amount of the contractual balance of these loans will be uncollectible. The difference of $95,211 will be recognized into interest income as an adjustment to yield over the life of the loans. The following table presents pro-forma information as if the Guaranty acquisition was completed as of January 1, 2018. The pro-forma results combine the historical results of Guaranty into the Company's consolidated statement of income including the impact of certain purchase accounting adjustments including loan and investment discount accretion and intangible assets amortization. The pro-forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2018: Three Months Ended September 30, Nine Months Ended September 30, 2018 2018 Interest income $ 154,070 $ 426,697 Noninterest income 21,021 54,934 Total revenue $ 175,091 $ 481,631 Net income $ 54,722 $ 148,304 Basic earnings per share $ 1.25 $ 3.50 Diluted earnings per share $ 1.25 $ 3.49 Revenues and earnings of the acquired company since the acquisition date have not been disclosed as Guaranty was merged into the Company and separate financial information is not readily available. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Declaration of Dividends On October 23, 2019, the Company declared a quarterly cash dividend in the amount of $0.25 per share of common stock to the stockholders of record on November 4, 2019. The dividend will be paid on November 14, 2019. Trust Business Sale The Company sold the trust business acquired in the Guaranty acquisition effective October 1, 2019. As part of the transaction, the Company transferred approximately $306,000 in assets held in fiduciary or agency capacities for $4,700 in proceeds, and recognized a net gain of approximately $1,400 . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: The accompanying consolidated financial statements include the accounts of IBG and all other entities in which IBG has controlling financial interest. All material intercompany transactions and balances have been eliminated in consolidation. In addition, the Company wholly-owns nine statutory business trusts that were formed for the purpose of issuing trust preferred securities and do not meet the criteria for consolidation. On January 1, 2019, the Company acquired Guaranty Bancorp (Guaranty) and its wholly owned subsidiary, Guaranty Bank and Trust Company (Guaranty Bank) and its wholly owned subsidiary, Private Capital Management, LLC. Guaranty was merged into the Company and dissolved and Guaranty Bank and its subsidiary was merged with the Bank as of acquisition date. The Company also acquired two statutory business trusts in connection with the acquisition as disclosed in Note 5 , Other Borrowings and Junior Subordinated Debentures. See Note 13 , Business Combinations, for more details of the Guaranty acquisition. The consolidated interim financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in the Company's Annual Report on Form10-K for the year ended December 31, 2018 . The consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. |
Segment reporting | Segment reporting: The Company has one reportable segment. The Company’s chief operating decision-maker uses consolidated results to make operating and strategic decisions. |
Reclassifications | Reclassifications: Certain prior period financial statement amounts have been reclassified to conform to current period presentation. The reclassifications have no effect on net income or stockholders' equity as previously reported. |
Subsequent events | Subsequent events: Companies are required to evaluate events and transactions that occur after the balance sheet date but before the date the financial statements are issued. They must recognize in the financial statements the effect of all events or transactions that provide additional evidence of conditions that existed at the balance sheet date, including the estimates inherent in the financial statement preparation process. Entities shall not recognize the impact of events or transactions that provide evidence about conditions that did not exist at the balance sheet date but arose after that date. The Company has evaluated subsequent events through the date of filing these financial statements with the Securities and Exchange Commission (SEC) and noted no subsequent events requiring financial statement recognition or disclosure, except as disclosed in Note 14 . |
Share repurchase program | Share repurchase program: The Company established share repurchase programs in prior years which would allow the Company to purchase its common stock in the open market or in privately negotiated transactions. In general, share repurchase programs allow the Company to proactively manage its capital position and return excess capital to shareholders. On October 24, 2018, the Company announced the reestablishment of its share repurchase program. The program authorizes the Company to repurchase up to $75,000 of its common stock and was authorized to continue through October 1, 2019. On October 17, 2019, the repurchase program was renewed and authorized to continue through December 31, 2020. The Company has approval from the Federal Reserve to repurchase up to $60,000 in shares for 2019, of which $10,952 is remaining. The Company intends to request additional approvals, as necessary, for share buybacks in 2020. As of September 30, 2019 , the Company has repurchased a total of 897,738 shares of Company stock at a total cost of $49,048 under this program. Shares of Company stock repurchased to settle employee tax withholding related to vesting of stock awards during the period ended September 30, 2019 totaled 54,943 at a total cost of $2,603 and were not included under this program. |
Earnings per share | Earnings per share: Basic earnings per common share are net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. The unvested share-based payment awards that contain rights to nonforfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock warrants. The participating nonvested common stock was not included in dilutive shares as it was anti-dilutive for the three and nine months ended September 30, 2019 and 2018 . The Company's outstanding stock warrants were all exercised prior to December 31, 2018. For the three and nine months ended September 30, 2018, proceeds from the assumed exercise of dilutive stock warrants are assumed to be used to repurchase common stock at the average market price. |
Allowance for loan losses | The allowance is derived from the following two components: 1) allowances established on individual impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values and the industry the customer operates and 2) allowances based on actual historical loss experience for the last three years for similar types of loans in the Company’s loan portfolio adjusted for primarily changes in the lending policies and procedures; collection, charge-off and recovery practices; nature and volume of the loan portfolio; change in value of underlying collateral; volume and severity of nonperforming loans; existence and effect of any concentrations of credit and the level of such concentrations and current, national and local economic and business conditions. This second component also includes an unallocated allowance to cover uncertainties that could affect management’s estimate of probable losses. The unallocated allowance reflects the imprecision inherent in the underlying assumptions used in the methodologies for estimating this component. The Company’s management continually evaluates the allowance for loan losses determined from the allowances established on individual loans and the amounts determined from historical loss percentages adjusted for the qualitative factors above. Should any of the factors considered by management change, the Company’s estimate of loan losses could also change and would affect the level of future provision expense. While the calculation of the allowance for loan losses utilizes management’s best judgment and all the information available, the adequacy of the allowance for loan losses is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. |
Nonaccrual loan and lease status | The accrual of interest is discontinued on a loan when management believes after considering collection efforts and other factors that the borrower's financial condition is such that collection of interest is doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. Cash collections on nonaccrual loans are generally credited to the loan receivable balance, and no interest income is recognized on those loans until the principal balance has been collected. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Impaired loan and lease receivable | Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on 1) the present value of expected future cash flows discounted at the loans effective interest rate; 2) the loan's observable market price; or 3) the fair value of collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use the other methods to determine the level of impairment of a loan if such loan is not collateral dependent. |
Loan charge-off amounts | The Company will charge-off that portion of any loan which management considers a loss. Commercial and real estate loans are generally considered for charge-off when exposure beyond collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition. |
Troubled debt restructuring | The restructuring of a loan is considered a “troubled debt restructuring” if both 1) the borrower is experiencing financial difficulties and 2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, extending amortization and other actions intended to minimize potential losses. |
Loans past due | Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. |
Adoption of new accounting standards | On January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) which requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. This ASU became effective for annual and interim periods for the Company on January 1, 2019. The Company adopted the standard by applying the alternative transition method whereby comparative periods were not restated, and an immaterial cumulative effect adjustment to the opening balance of retained earnings was recognized as of January 1, 2019. The Company elected the ASU’s package of three practical expedients, which allowed the Company to forego a reassessment of (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) the initial direct costs for any existing leases. The Company also elected not to apply the recognition requirements of the ASU to any short-term leases (as defined by related accounting guidance) and will account for lease and non-lease components separately because such amounts are readily determinable under most lease contracts and because this election results in a lower impact on the Company's balance sheet. |
Leases | The Company’s primary leasing activities relate to certain real estate operating leases entered into in support of the Company’s branch operations and back office operations. The Company leases 21 of its 93 branches. The Company’s branch locations operated under lease agreements have all been designated as operating leases. In addition, the Company leases certain equipment under operating leases. The Company does not have leases designated as finance leases. The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities in the consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The operating lease ROU asset also includes any lease pre-payments made and excludes lease incentives. The Company's lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has lease agreements with lease and non-lease components, which the Company has elected to account for separately as the non-lease component amounts are readily determinable under most leases. As a result of implementing ASU 2016-02, the Company recognized an operating lease ROU asset of $38,812 and an operating lease liability of $33,953 on January 1, 2019, with no impact on the Company's consolidated statement of income or consolidated statement of cash flows compared to the prior lease accounting model. The ROU asset and operating lease liability are recorded in other assets and other liabilities, respectively, in the consolidated balance sheets. As of September 30, 2019 the Company’s lease ROU assets and related lease liabilities were $33,292 and $30,166 , respectively, and have remaining terms ranging from 1 to 31 years , including extension options that the Company is reasonably certain will be exercised. |
Fair value measurements | The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. ASC Topic 820, Fair Value Measurements and Disclosures , establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar 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 for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 Inputs – Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. The Company elected the fair value option for certain residential mortgage loans held for sale originated after July 1, 2018 in accordance with Accounting Standard Codification (ASC) 825, Financial Instruments. This election allows for a more effective offset of the changes in fair values of the loans 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 . The Company has not elected the fair value option for other residential mortgage loans held for sale primarily because they are not economically hedged using derivative instruments. See below and Note 10 , Derivative Financial Instruments, for additional information. Securities classified as available for sale are reported at fair value utilizing Level 1 and Level 2 inputs. Securities are classified within Level 1 when quoted market prices are available in an active market. Inputs include securities that have quoted prices in active markets for identical assets. For securities utilizing Level 2 inputs, 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 and other yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. Certain mortgage loans held for sale are measured at fair value on a recurring basis due to the Company's election to adopt fair value accounting treatment for those loans originated for which the Company has entered into certain derivative financial instruments as part of its mortgage banking and related risk management activities. These instruments include interest rate lock commitments and mandatory forward commitments to sell these loans to investors known as forward mortgage-backed securities trades. This election allows for a more effective offset of the changes in fair values of the assets and the mortgage related derivative instruments used to economically hedge them without the burden of complying with the requirements for hedge accounting under ASC 815, Derivatives and Hedging . Mortgage loans held for sale, for which the fair value option was elected, which are sold on a servicing released basis, are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted to credit risk and other individual loan characteristics. As these prices are derived from market observable inputs, the Company classifies these valuations as Level 2 in the fair value disclosures. For mortgage loans held for sale for which the fair value option was 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. The Company has no continuing involvement in any residential mortgage loans sold. The estimated fair values of interest rate lock commitments utilize current secondary market prices for underlying loans and estimated servicing value with similar coupons, maturity and credit quality, subject to the anticipated loan funding probability (pull-through rate). The fair value of interest rate lock commitments is subject to change primarily due to changes in interest rates and the estimated pull-through rate. These commitments are classified as Level 2 in the fair value disclosures, as the valuations are based on observable market inputs. Forward mortgage-backed securities trades are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, the Company utilized the exchange price or dealer market price for the particular derivative contract; therefore these contracts are classified as Level 2. The estimated fair values are subject to change primarily due to changes in interest rates. The Company also enters into certain interest rate derivative positions that are not designated as hedging instruments. The estimated fair value of these commercial loan interest rate swaps are obtained from a pricing service that provides the swaps' unwind value (Level 2 inputs). See Note 10 , Derivative Financial Instruments, for more information. Assets and Liabilities Measured on a Nonrecurring Basis The methods and assumptions used by the Company in estimating fair values of financial instruments as disclosed herein in accordance with ASC Topic 825, Financial Instruments , other than for those measured at fair value on a recurring and nonrecurring basis discussed above, are as follows: Cash and cash equivalents: The carrying amounts of cash and cash equivalents approximate their fair value. Certificates of deposit held in other banks: The fair value of certificates of deposit held in other banks is based upon current market rates. Loans held for sale, at cost: The fair value of loans held for sale is determined based upon commitments on hand from investors. Loans: A discounted cash flow model is used to estimate the fair value of the loans. The discounted cash flow approach models the credit losses directly in the projected cash flows, applying various assumptions regarding credit, interest and prepayment risks for the loans based on loan types, payment types and fixed or variable classifications. Federal Home Loan Bank of Dallas and other restricted stock: The carrying value of restricted securities such as stock in the Federal Home Loan Bank of Dallas and Independent Bankers Financial Corporation approximates fair value. Deposits: The fair values disclosed for demand deposits are, by definition, equal to the amount payable on demand at the reporting date (that is their carrying amounts). The carrying amounts of variable-rate certificates of deposit (CDs) approximate their fair values at the reporting date. Fair values for fixed-rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal Home Loan Bank advances, line of credit and federal funds purchased: The fair value of advances maturing within 90 days approximates carrying value. Fair value of other advances is based on the Company’s current borrowing rate for similar arrangements. Other borrowings: The carrying value of repurchase agreements approximates fair value due to the short term nature. The fair value of private subordinated debentures are based upon prevailing rates on similar debt in the market place. The subordinated debentures that are publicly traded are valued based on indicative bid prices based upon market pricing observations in the current market. Junior subordinated debentures: The fair value of junior subordinated debentures is estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Accrued interest: The carrying amounts of accrued interest approximate their fair values. Off-balance sheet instruments: Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties' credit standing. The fair value of commitments is not material. Impaired loans (loans which are not expected to repay all principal and interest amounts due in accordance with the original contractual terms) are measured at an observable market price (if available) or at the fair value of the loan’s collateral (if collateral dependent). Fair value of the loan’s collateral is determined by appraisals or independent valuation, which is then adjusted for the estimated costs related to liquidation of the collateral. Management’s ongoing review of appraisal information may result in additional discounts or adjustments to valuation based upon more recent market sales activity or more current appraisal information derived from properties of similar type and/or locale. Therefore, the Company has categorized its impaired loans as Level 3. Other real estate is measured at fair value on a nonrecurring basis (upon initial recognition or subsequent impairment). Other real estate is classified within Level 3 of the valuation hierarchy. When transferred from the loan portfolio, other real estate is adjusted to fair value less estimated selling costs and is subsequently carried at the lower of carrying value or fair value less estimated selling costs. The fair value is determined using an external appraisal process, discounted based on internal criteria. Therefore, the Company has categorized its other real estate as Level 3. |
Derivatives | The Company enters into certain derivative financial instruments as part of its hedging strategy. These financial instruments are not designated as hedging instruments and are used for asset and liability management related to the Company's mortgage banking activities and commercial customers' financing needs. All derivatives are carried at fair value in either other assets or other liabilities. Through the normal course of business, the Company enters into interest rate lock commitments with consumers to originate mortgage loans at a specified interest rate. These commitments, which contain fixed expiration dates, offer the borrower an interest rate guarantee provided the loan meets underwriting guidelines and closes within the timeframe established by the Company. The Company manages the changes in fair value associated with changes in interest rates related to interest rate lock commitments by using forward sold commitments known as forward mortgage-backed securities trades. These instruments are typically entered into at the time the interest rate lock commitment is made. The Company also offers certain derivatives products, primarily interest rate swaps, directly to qualified commercial banking customers to facilitate their risk management strategies. The interest rate swap derivative positions relate to transactions in which the Company enters into an interest rate swap with a customer, while at the same time entering into an offsetting interest rate swap with another financial institution. An interest rate swap transaction allows customers to effectively convert a variable rate loan to a fixed rate. In connection with each swap, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Earning Per Share | The following table presents a reconciliation of net income available to common shareholders and the number of shares used in the calculation of basic and diluted earnings per common share. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Basic earnings per share: Net income $ 55,633 $ 35,696 $ 142,500 $ 94,295 Less: Undistributed earnings allocated to participating securities 329 262 731 729 Dividends paid on participating securities 79 36 216 104 Net income available to common shareholders $ 55,225 $ 35,398 $ 141,553 $ 93,462 Weighted average basic shares outstanding 42,636,030 30,219,561 43,056,441 29,035,729 Basic earnings per share $ 1.30 $ 1.17 $ 3.29 $ 3.22 Diluted earnings per share: Net income available to common shareholders $ 55,225 $ 35,398 $ 141,553 $ 93,462 Total weighted average basic shares outstanding 42,636,030 30,219,561 43,056,441 29,035,729 Add dilutive stock warrants — 90,114 — 91,292 Total weighted average diluted shares outstanding 42,636,030 30,309,675 43,056,441 29,127,021 Diluted earnings per share $ 1.30 $ 1.17 $ 3.29 $ 3.21 Anti-dilutive participating securities 46,223 62,588 60,001 112,797 |
Statement of Cash Flows (Tables
Statement of Cash Flows (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Other Supplemental Cash Flow Information | Other supplemental cash flow information is presented below: Nine Months Ended September 30, 2019 2018 Cash transactions: Interest expense paid $ 110,059 $ 55,084 Income taxes paid $ 26,684 $ 17,159 Noncash transactions: Transfers of loans to other real estate owned $ 544 $ 410 Transfers of loans held for investment to loans held for sale $ 83,526 $ — Loans to facilitate the sale of other real estate owned $ 517 $ — Right-of-use assets obtained in exchange for lease liabilities $ 35,491 $ — Transfer of bank premises to other real estate $ 7,896 $ — Transfer of repurchase agreements to deposits $ 8,475 $ — Supplemental schedule of noncash investing activities from branch sale is as follows: Nine Months Ended September 30, 2019 2018 Noncash assets transferred: Loans, including accrued interest $ 796 $ — Premises and equipment 94 — Other assets 1 — Total assets $ 891 $ — Noncash liabilities transferred: Deposits, including accrued interest $ 27,721 $ — Other liabilities 27 — Total liabilities $ 27,748 $ — Cash and cash equivalents transferred in branch sale $ 206 $ — Deposit premium received $ 1,386 $ — Cash paid to buyer, net of deposit premium $ 24,957 $ — Supplemental schedule of noncash investing activities from acquisitions is as follows: Nine Months Ended September 30, 2019 2018 Noncash assets acquired Certificates of deposit held in other banks $ 262 $ — Securities available for sale 561,052 24,721 Restricted stock 27,794 3,357 Loans 2,789,868 651,769 Premises and equipment 65,786 4,863 Other real estate owned 1,829 — Goodwill 272,224 100,326 Other intangible assets 71,518 7,532 Bank owned life insurance 80,837 8,181 Other assets 31,987 6,393 Total assets acquired $ 3,903,157 $ 807,142 Noncash liabilities assumed: Deposits $ 3,108,810 $ 593,078 Repurchase agreements 8,475 — FHLB advances 142,653 60,000 Other borrowings 40,000 — Junior subordinated debentures 25,774 — Other liabilities 15,477 10,508 Total liabilities assumed $ 3,341,189 $ 663,586 Cash and cash equivalents acquired from acquisitions $ 39,913 $ 44,723 Cash paid to shareholders of acquired banks $ 9 $ 31,016 Fair value of common stock issued to shareholders of acquired banks $ 601,872 $ 157,263 |
Securities Available for Sale (
Securities Available for Sale (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Abstract] | |
Amortized Cost of Securities and Approximate Fair Values | The amortized cost of securities and their approximate fair values at September 30, 2019 and December 31, 2018 , are as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities Available for Sale September 30, 2019 U.S. treasuries $ 50,060 $ 806 $ (31 ) $ 50,835 Government agency securities 179,980 1,238 (183 ) 181,035 Obligations of state and municipal subdivisions 334,017 11,011 (15 ) 345,013 Corporate bonds 7,021 174 — 7,195 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 486,646 12,075 (183 ) 498,538 Other securities 1,200 — — 1,200 $ 1,058,924 $ 25,304 $ (412 ) $ 1,083,816 December 31, 2018 U.S. treasuries $ 30,110 $ — $ (467 ) $ 29,643 Government agency securities 152,969 80 (2,819 ) 150,230 Obligations of state and municipal subdivisions 187,366 727 (3,086 ) 185,007 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 326,168 128 (5,826 ) 320,470 $ 696,613 $ 935 $ (12,198 ) $ 685,350 |
Proceeds from Sale of Available for Sale Securities | Proceeds from sale of securities available for sale and gross gains and gross losses for the three and nine months ended September 30, 2019 and 2018 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Proceeds from sale $ — $ 15,254 $ 189,704 $ 42,727 Gross gains $ — $ 38 $ 293 $ 141 Gross losses $ — $ 153 $ 28 $ 490 |
Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity | The amortized cost and estimated fair value of securities available for sale at September 30, 2019 , by contractual maturity, are shown below. Maturities of pass-through certificates will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. September 30, 2019 Securities Available for Sale Amortized Cost Fair Value Due in one year or less $ 40,899 $ 40,918 Due from one year to five years 201,969 204,570 Due from five to ten years 170,968 175,410 Thereafter 158,442 164,380 572,278 585,278 Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 486,646 498,538 $ 1,058,924 $ 1,083,816 |
Summary of Unrealized Losses and Fair Value Securities in Continuous Unrealized Loss Position | The number of securities, unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of September 30, 2019 and December 31, 2018 , are summarized as follows: Less Than 12 Months Greater Than 12 Months Total Description of Securities Number of Securities Estimated Fair Value Unrealized Losses Number of Securities Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Securities Available for Sale September 30, 2019 U.S. treasuries — $ — $ — 3 $ 10,095 $ (31 ) $ 10,095 $ (31 ) Government agency securities 7 18,917 (57 ) 12 36,375 (126 ) 55,292 (183 ) Obligations of state and municipal subdivisions 7 4,147 (8 ) 2 1,435 (7 ) 5,582 (15 ) Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 10 22,252 (149 ) 4 6,961 (34 ) 29,213 (183 ) 24 $ 45,316 $ (214 ) 21 $ 54,866 $ (198 ) $ 100,182 $ (412 ) December 31, 2018 U.S. treasuries 1 $ 9,749 $ (6 ) 5 $ 19,894 $ (461 ) $ 29,643 $ (467 ) Government agency securities 4 6,068 (32 ) 43 126,745 (2,787 ) 132,813 (2,819 ) Obligations of state and municipal subdivisions 88 32,493 (326 ) 218 105,817 (2,760 ) 138,310 (3,086 ) Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 56 112,114 (1,031 ) 101 186,713 (4,795 ) 298,827 (5,826 ) 149 $ 160,424 $ (1,395 ) 367 $ 439,169 $ (10,803 ) $ 599,593 $ (12,198 ) |
Loans, Net and Allowance for _2
Loans, Net and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Compositions of Loans | Loans, net, at September 30, 2019 and December 31, 2018 , consisted of the following: September 30, December 31, 2019 2018 Commercial $ 2,452,769 $ 1,361,104 Real estate: Commercial 5,933,498 4,141,356 Commercial construction, land and land development 1,181,675 905,421 Residential 1,511,236 1,049,521 Single-family interim construction 376,596 331,748 Agricultural 104,139 66,638 Consumer 36,237 31,759 Other 636 253 11,596,786 7,887,800 Deferred loan fees (1,757 ) (3,303 ) Allowance for loan losses (50,447 ) (44,802 ) $ 11,544,582 $ 7,839,695 |
Summary of Activity in Allowance for Loan Losses by Loan Class | The following is a summary of the activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2019 and 2018 : Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total Three months ended September 30, 2019 Balance at beginning of period $ 15,677 $ 29,662 $ 3,696 $ 1,511 $ 343 $ 252 $ 6 $ (72 ) $ 51,075 Provision for loan losses 3,151 2,318 (50 ) 54 (6 ) 15 108 (357 ) 5,233 Charge-offs (5,698 ) — (47 ) — — (31 ) (124 ) — (5,900 ) Recoveries 16 — — — — 8 15 — 39 Balance at end of period $ 13,146 $ 31,980 $ 3,599 $ 1,565 $ 337 $ 244 $ 5 $ (429 ) $ 50,447 Nine months ended September 30, 2019 Balance at beginning of period $ 11,793 $ 27,795 $ 3,320 $ 1,402 $ 241 $ 186 $ 3 $ 62 $ 44,802 Provision for loan losses 8,507 4,185 419 166 96 68 246 (491 ) 13,196 Charge-offs (7,221 ) (3 ) (140 ) (3 ) — (51 ) (303 ) — (7,721 ) Recoveries 67 3 — — — 41 59 — 170 Balance at end of period $ 13,146 $ 31,980 $ 3,599 $ 1,565 $ 337 $ 244 $ 5 $ (429 ) $ 50,447 Three months ended September 30, 2018 Balance at beginning of period $ 11,805 $ 26,192 $ 3,319 $ 1,643 $ 224 $ 187 $ 3 $ (65 ) $ 43,308 Provision for loan losses 1,887 149 (233 ) (151 ) 43 (2 ) 50 (218 ) 1,525 Charge-offs (2,538 ) (82 ) (1 ) — — (8 ) (56 ) — (2,685 ) Recoveries 1 5 1 — — 1 10 — 18 Balance at end of period $ 11,155 $ 26,264 $ 3,086 $ 1,492 $ 267 $ 178 $ 7 $ (283 ) $ 42,166 Nine months ended September 30, 2018 Balance at beginning of period $ 10,599 $ 23,301 $ 3,447 $ 1,583 $ 250 $ 205 $ (32 ) $ 49 $ 39,402 Provision for loan losses 4,183 3,385 (358 ) (91 ) 17 (4 ) 150 (332 ) 6,950 Charge-offs (3,633 ) (435 ) (6 ) — — (27 ) (151 ) — (4,252 ) Recoveries 6 13 3 — — 4 40 — 66 Balance at end of period $ 11,155 $ 26,264 $ 3,086 $ 1,492 $ 267 $ 178 $ 7 $ (283 ) $ 42,166 The following table details the amount of the allowance for loan losses and recorded investment in loans by class as of September 30, 2019 and December 31, 2018 : Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Unallocated Total September 30, 2019 Allowance for losses: Individually evaluated for impairment $ 278 $ — $ — $ — $ — $ 7 $ — $ — $ 285 Collectively evaluated for impairment 12,867 31,660 3,599 1,565 337 237 5 (429 ) 49,841 Loans acquired with deteriorated credit quality 1 320 — — — — — — 321 Ending balance $ 13,146 $ 31,980 $ 3,599 $ 1,565 $ 337 $ 244 $ 5 $ (429 ) $ 50,447 Loans: Individually evaluated for impairment $ 3,453 $ 4,954 $ 1,986 $ — $ 173 $ 36 $ — $ — $ 10,602 Collectively evaluated for impairment 2,379,370 6,872,301 1,501,666 376,596 99,465 36,175 636 — 11,266,209 Acquired with deteriorated credit quality 69,946 237,918 7,584 — 4,501 26 — — 319,975 Ending balance $ 2,452,769 $ 7,115,173 $ 1,511,236 $ 376,596 $ 104,139 $ 36,237 $ 636 $ — $ 11,596,786 December 31, 2018 Allowance for losses: Individually evaluated for impairment $ 2,633 $ — $ 92 $ — $ — $ 2 $ — $ — $ 2,727 Collectively evaluated for impairment 9,115 27,795 3,228 1,402 241 184 3 62 42,030 Loans acquired with deteriorated credit quality 45 — — — — — — — 45 Ending balance $ 11,793 $ 27,795 $ 3,320 $ 1,402 $ 241 $ 186 $ 3 $ 62 $ 44,802 Loans: Individually evaluated for impairment $ 7,288 $ 1,734 $ 1,943 $ 3,578 $ — $ 32 $ — $ — $ 14,575 Collectively evaluated for impairment 1,335,194 4,955,178 1,044,265 328,170 66,032 31,699 253 — 7,760,791 Acquired with deteriorated credit quality 18,622 89,865 3,313 — 606 28 — — 112,434 Ending balance $ 1,361,104 $ 5,046,777 $ 1,049,521 $ 331,748 $ 66,638 $ 31,759 $ 253 $ — $ 7,887,800 |
Summary of Nonperforming Loans by Loan Class | Nonperforming loans by loan class (excluding loans acquired with deteriorated credit quality) at September 30, 2019 and December 31, 2018 , are summarized as follows: Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total September 30, 2019 Nonaccrual loans $ 3,453 $ 4,589 $ 1,795 $ — $ 173 $ 36 $ — $ 10,046 Loans past due 90 days and still accruing 186 528 532 — — 45 — 1,291 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) — 365 191 — — — — 556 $ 3,639 $ 5,482 $ 2,518 $ — $ 173 $ 81 $ — $ 11,893 December 31, 2018 Nonaccrual loans $ 5,224 $ 1,329 $ 1,775 $ 3,578 $ — $ 32 $ — $ 11,938 Loans past due 90 days and still accruing — — — — — 5 — 5 Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) 114 405 168 — — — — 687 $ 5,338 $ 1,734 $ 1,943 $ 3,578 $ — $ 37 $ — $ 12,630 |
Impaired Loans by Loan Class | Impaired loans by loan class (excluding loans acquired with deteriorated credit quality) at September 30, 2019 and December 31, 2018 , are summarized as follows: Commercial Commercial Real Estate, Construction, Land and Land Development Residential Real Estate Single-Family Interim Construction Agricultural Consumer Other Total September 30, 2019 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 1,500 $ — $ — $ — $ — $ 5 $ — $ 1,505 Impaired loans with no allowance for loan losses 1,953 4,954 1,986 — 173 31 — 9,097 Total $ 3,453 $ 4,954 $ 1,986 $ — $ 173 $ 36 $ — $ 10,602 Unpaid principal balance of impaired loans $ 11,590 $ 5,081 $ 2,129 $ — $ 173 $ 38 $ — $ 19,011 Allowance for loan losses on impaired loans $ 278 $ — $ — $ — $ — $ 7 $ — $ 285 December 31, 2018 Recorded investment in impaired loans: Impaired loans with an allowance for loan losses $ 6,416 $ — $ 134 $ — $ — $ 1 $ — $ 6,551 Impaired loans with no allowance for loan losses 872 1,734 1,809 3,578 — 31 — 8,024 Total $ 7,288 $ 1,734 $ 1,943 $ 3,578 $ — $ 32 $ — $ 14,575 Unpaid principal balance of impaired loans $ 9,822 $ 1,860 $ 2,056 $ 3,579 $ — $ 38 $ — $ 17,355 Allowance for loan losses on impaired loans $ 2,633 $ — $ 92 $ — $ — $ 2 $ — $ 2,727 For the three months ended September 30, 2019 Average recorded investment in impaired loans $ 6,971 $ 3,782 $ 1,593 $ — $ 58 $ 33 $ — $ 12,437 Interest income recognized on impaired loans $ 4 $ 6 $ 3 $ — $ — $ — $ — $ 13 For the nine months ended September 30, 2019 Average recorded investment in impaired loans $ 7,050 $ 3,270 $ 1,681 $ 895 $ 43 $ 33 $ — $ 12,972 Interest income recognized on impaired loans $ 25 $ 34 $ 35 $ 114 $ — $ 5 $ — $ 213 For the three months ended September 30, 2018 Average recorded investment in impaired loans $ 9,004 $ 2,850 $ 2,165 $ — $ — $ 41 $ — $ 14,060 Interest income recognized on impaired loans $ 36 $ 19 $ 9 $ — $ — $ 2 $ — $ 66 For the nine months ended September 30, 2018 Average recorded investment in impaired loans $ 9,327 $ 2,901 $ 2,056 $ — $ — $ 49 $ — $ 14,333 Interest income recognized on impaired loans $ 56 $ 33 $ 53 $ — $ — $ 2 $ — $ 144 |
Summary of Troubled Debt Restructurings | Following is a summary of loans modified under troubled debt restructurings during the three and nine months ended September 30, 2019 : Commercial Commercial Residential Single-Family Agricultural Consumer Other Total Troubled debt restructurings during the three months ended September 30, 2019 Number of contracts — — 1 — — — — 1 Pre-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 Post-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 Troubled debt restructurings during the nine months ended September 30, 2019 Number of contracts — — 1 — — — — 1 Pre-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 Post-restructuring outstanding recorded investment $ — $ — $ 29 $ — $ — $ — $ — $ 29 |
Aging of Past Due Loans by Loan Class | The following table presents information regarding the aging of past due loans by loan class as of September 30, 2019 and December 31, 2018 : Loans 30-89 Days Past Due Loans 90 Days or More Past Due Total Past Due Loans Current Loans Total Loans September 30, 2019 Commercial $ 6,225 $ 3,614 $ 9,839 $ 2,372,984 $ 2,382,823 Commercial real estate, construction, land and land development 9,846 4,421 14,267 6,862,988 6,877,255 Residential real estate 3,367 1,745 5,112 1,498,540 1,503,652 Single-family interim construction 944 — 944 375,652 376,596 Agricultural 2,166 173 2,339 97,299 99,638 Consumer 188 81 269 35,942 36,211 Other — — — 636 636 22,736 10,034 32,770 11,244,041 11,276,811 Acquired with deteriorated credit quality 11,832 8,726 20,558 299,417 319,975 $ 34,568 $ 18,760 $ 53,328 $ 11,543,458 $ 11,596,786 December 31, 2018 Commercial $ 15,426 $ 4,366 $ 19,792 $ 1,322,690 $ 1,342,482 Commercial real estate, construction, land and land development 3,435 — 3,435 4,953,477 4,956,912 Residential real estate 4,199 1,035 5,234 1,040,974 1,046,208 Single-family interim construction 774 3,578 4,352 327,396 331,748 Agricultural — — — 66,032 66,032 Consumer 135 35 170 31,561 31,731 Other — — — 253 253 23,969 9,014 32,983 7,742,383 7,775,366 Acquired with deteriorated credit quality 2,939 957 3,896 108,538 112,434 $ 26,908 $ 9,971 $ 36,879 $ 7,850,921 $ 7,887,800 |
Summary of Loans by Credit Quality Indicator by Class | A summary of loans by credit quality indicator by class as of September 30, 2019 and December 31, 2018 , is as follows: Pass Pass/ Watch Special Mention Substandard Doubtful Total September 30, 2019 Commercial $ 2,328,196 $ 44,848 $ 53,107 $ 26,618 $ — $ 2,452,769 Commercial real estate, construction, land and land development 6,842,137 155,067 63,956 54,013 — 7,115,173 Residential real estate 1,497,665 3,850 1,018 8,703 — 1,511,236 Single-family interim construction 375,985 — 611 — — 376,596 Agricultural 93,136 3,463 2,161 5,379 — 104,139 Consumer 36,061 41 — 135 — 36,237 Other 636 — — — — 636 $ 11,173,816 $ 207,269 $ 120,853 $ 94,848 $ — $ 11,596,786 December 31, 2018 Commercial $ 1,279,024 $ 18,378 $ 30,783 $ 32,919 $ — $ 1,361,104 Commercial real estate, construction, land and land development 4,895,217 81,693 40,601 29,266 — 5,046,777 Residential real estate 1,038,283 3,617 707 6,914 — 1,049,521 Single-family interim construction 327,939 — 231 3,578 — 331,748 Agricultural 61,055 2,918 2,093 572 — 66,638 Consumer 31,559 67 — 133 — 31,759 Other 253 — — — — 253 $ 7,633,330 $ 106,673 $ 74,415 $ 73,382 $ — $ 7,887,800 September 30, 2019 and December 31, 2018 : Pass Pass/ Special Mention Substandard Doubtful Total September 30, 2019 $ 248,975 $ 24,666 $ 9,229 $ 37,105 $ — $ 319,975 December 31, 2018 40,940 32,427 14,817 24,250 — 112,434 |
Outstanding Balance and Related Carrying Amount of Purchased Impaired Loans | The following table summarizes the outstanding balance and related carrying amount of purchased credit impaired loans by acquired bank as of the acquisition date for the acquisitions occurring in 2019 and 2018 : Acquisition Date January 1, 2019 June 1, 2018 Guaranty Bancorp Integrity Bancshares, Inc. Outstanding balance $ 341,645 $ 57,317 Nonaccretable difference (16,622 ) (9,969 ) Accretable yield (13,299 ) (128 ) Carrying amount $ 311,724 $ 47,220 The carrying amount of all acquired PCI loans included in the consolidated balance sheet and the related outstanding balance at September 30, 2019 and December 31, 2018 were as follows: September 30, 2019 December 31, 2018 Outstanding balance $ 357,368 $ 129,333 Carrying amount 319,975 112,434 |
Accretable Yield Rollforward | The changes in accretable yield during the nine months ended September 30, 2019 and 2018 in regard to loans transferred at acquisition for which it was probable that all contractually required payments would not be collected are presented in the table below. For the Nine Months Ended September 30, 2019 2018 Balance at January 1, $ 1,436 $ 1,546 Additions 13,299 128 Accretion (4,076 ) (1,503 ) Transfers from nonaccretable — 1,319 Balance at September 30, $ 10,659 $ 1,490 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Net Lease Cost and Other Information Related to Operating Leases | The table below summarizes net lease cost: Three Months Ended September 30, Nine Months Ended September 30, 2019 2019 Operating lease cost $ 1,565 $ 5,348 Variable lease cost 452 1,454 Sublease income (57 ) (171 ) Net lease cost $ 1,960 $ 6,631 The table below summarizes other information related to operating leases: Nine Months Ended September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,479 ROU assets obtained in exchange for lease liabilities 40,440 Weighted average remaining lease term - operating leases, in years 7.73 Weighted average discount rate - operating leases 3.35 % |
Summary of Lease Payment Obligations | The following table outlines lease payment obligations as outlined in the Company’s lease agreements for each of the next five years and thereafter in addition to a reconcilement to the Company’s current lease liability as of September 30, 2019 . 2019 $ 5,906 2020 5,912 2021 5,109 2022 4,565 2023 3,505 Thereafter 9,275 Total lease payments 34,272 Less imputed interest (4,106 ) $ 30,166 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | At September 30, 2019 and December 31, 2018 , the approximate amounts of these financial instruments were as follows: September 30, December 31, 2019 2018 Commitments to extend credit $ 2,315,471 $ 1,761,724 Standby letters of credit 24,686 14,997 $ 2,340,157 $ 1,776,721 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Tax Expense | Income tax expense for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Income tax expense for the period $ 14,903 $ 9,141 $ 39,418 $ 23,465 Effective tax rate 21.1 % 20.4 % 21.7 % 19.9 % |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets at Fair Value on Recurring Basis | The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of September 30, 2019 and December 31, 2018 by level within the ASC Topic 820 fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using Assets/ Liabilities Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2019 Assets: Investment securities available for sale: U.S. treasuries $ 50,835 $ — $ 50,835 $ — Government agency securities 181,035 — 181,035 — Obligations of state and municipal subdivisions 345,013 — 345,013 — Corporate bonds 7,195 — 7,195 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 498,538 — 498,538 — Other securities 1,200 — 1,200 — Total investment securities available for sale $ 1,083,816 $ — $ 1,083,816 $ — Loans held for sale, fair value option elected (1) $ 27,432 $ — $ 27,432 $ — Derivative financial instruments: Interest rate lock commitments 1,504 — 1,504 — Forward mortgage-backed securities trades 37 — 37 — Loan customer counterparty 8,397 — 8,397 — Liabilities: Derivative financial instruments: Forward mortgage-backed securities trades 70 — 70 — Financial institution counterparty 9,077 — 9,077 — December 31, 2018 Assets: Investment securities available for sale: U.S. treasuries $ 29,643 $ — $ 29,643 $ — Government agency securities 150,230 — 150,230 — Obligations of state and municipal subdivisions 185,007 — 185,007 — Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC 320,470 — 320,470 — Total investment securities available for sale $ 685,350 $ — $ 685,350 $ — Loans held for sale, fair value option elected (1) $ 27,871 $ — $ 27,871 $ — Derivative financial instruments: Interest rate lock commitments 822 — 822 — Loan customer counterparty 360 — 360 — Financial institution counterparty 109 — 109 — Liabilities: Derivative financial instruments: Forward mortgage-backed securities trades 226 — 226 — Loan customer counterparty 108 — 108 — Financial institution counterparty 406 — 406 — (1) At September 30, 2019 and December 31, 2018 , loans held for sale for which the fair value option was elected had an aggregate outstanding principal balance of $26,500 and $26,594 . There were no mortgage loans held for sale under the fair value option that were 90 days or greater past due or on nonaccrual at September 30, 2019 . |
Assets and Liabilities at Fair Value on Nonrecurring Basis | The following table presents the assets carried on the consolidated balance sheet by caption and by level in the fair value hierarchy at September 30, 2019 and December 31, 2018 , for which a nonrecurring change in fair value has been recorded: Fair Value Measurements at Reporting Date Using Assets Measured at Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Period Ended Total Losses September 30, 2019 Assets: Impaired loans $ 2,409 $ — $ — $ 2,409 $ 4,418 Other real estate 6,192 — — 6,192 982 December 31, 2018 Assets: Impaired loans $ 3,824 $ — $ — $ 3,824 $ 2,227 |
Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amount, estimated fair value and the level of the fair value hierarchy of the Company’s financial instruments that are reported at amortized cost on the Company's consolidated balance sheets were as follows at September 30, 2019 and December 31, 2018 : Fair Value Measurements at Reporting Date Using Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) September 30, 2019 Financial assets: Cash and cash equivalents $ 570,101 $ 570,101 $ 570,101 $ — $ — Certificates of deposit held in other banks 5,715 5,978 — 5,978 — Loans held for sale, at cost 5,497 5,560 — 5,560 — Loans, net 11,544,582 11,664,979 — — 11,664,979 FHLB of Dallas stock and other restricted stock 29,918 29,918 — 29,918 — Accrued interest receivable 36,825 36,825 — 36,825 — Financial liabilities: Deposits 11,727,885 11,749,640 — 11,749,640 — Accrued interest payable 7,982 7,982 — 7,982 — FHLB advances 555,000 495,933 — 495,933 — Other borrowings 212,642 222,100 — 222,100 — Junior subordinated debentures 53,775 50,225 — 50,225 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — December 31, 2018 Financial assets: Cash and cash equivalents $ 130,779 $ 130,779 $ 130,779 $ — $ — Certificates of deposit held in other banks 1,225 1,224 — 1,224 — Loans held for sale, at cost 4,856 4,974 — 4,974 — Loans, net 7,839,695 7,807,823 — — 7,807,823 FHLB of Dallas stock and other restricted stock 26,870 26,870 — 26,870 — Accrued interest receivable 24,253 24,253 — 24,253 — Financial liabilities: Deposits 7,737,794 7,750,059 — 7,750,059 — Accrued interest payable 6,183 6,183 — 6,183 — FHLB advances 290,000 287,450 — 287,450 — Other borrowings 137,316 138,450 — 138,450 — Junior subordinated debentures 27,852 31,370 — 31,370 — Off-balance sheet assets (liabilities): Commitments to extend credit — — — — — Standby letters of credit — — — — — |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Balances and Fair Values of Outstanding Positions | The following table provides the outstanding notional balances and fair values of outstanding derivative positions at September 30, 2019 and December 31, 2018 : Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value September 30, 2019 Interest rate lock commitments $ 54,552 $ 1,504 $ — Forward mortgage-backed securities trades 50,500 37 70 Commercial loan interest rate swaps: Loan customer counterparty 240,317 8,397 — Financial institution counterparty 240,317 — 9,077 December 31, 2018 Interest rate lock commitments $ 20,306 $ 822 $ — Forward mortgage-backed securities trades 27,500 — 226 Commercial loan interest rate swaps: Loan customer counterparty 25,055 360 108 Financial institution counterparty 25,055 109 406 |
Income on Derivatives Not Designated as Hedging Instruments | Income for the three and nine months ended September 30, 2019 and 2018 was as follows: Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Derivatives not designated as hedging instruments Interest rate lock commitments $ 126 $ 906 $ 682 $ 906 Forward mortgage-backed securities trades 61 110 156 110 |
Stock Awards (Tables)
Stock Awards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Nonvested Shares Activity | The following table summarizes the activity in nonvested shares for the nine months ended September 30, 2019 and 2018 : Number of Shares Weighted Average Grant Date Fair Value Nonvested shares, December 31, 2018 252,903 $ 62.81 Acquired awards replaced during the period 70,248 45.77 Granted during the period 138,608 51.14 Vested during the period (143,516 ) 54.66 Forfeited during the period (13,615 ) 46.55 Nonvested shares, September 30, 2019 304,628 $ 58.14 Nonvested shares, December 31, 2017 242,056 $ 49.17 Granted during the period 127,712 72.09 Vested during the period (111,520 ) 44.33 Forfeited during the period (3,845 ) 64.47 Nonvested shares, September 30, 2018 254,403 $ 62.57 |
Schedule of Vesting of Restricted Stock Award | At September 30, 2019 , the future vesting schedule of the nonvested shares is as follows: First year 117,548 Second year 100,901 Third year 64,639 Fourth year 19,460 Fifth year 2,080 Total nonvested shares 304,628 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Regulated Operations [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements | The following table presents the actual capital amounts and required ratios of the Company and Bank as of September 30, 2019 and December 31, 2018 . The minimum required capital amounts presented as of September 30, 2019 include the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Actual Minimum Capital Required Required to be Considered Well Capitalized Amount Ratio Amount Ratio Amount Ratio September 30, 2019 Total capital to risk weighted assets: Consolidated $ 1,464,698 11.49 % $ 1,338,856 10.50 % N/A N/A Bank 1,514,218 11.88 1,338,517 10.50 $ 1,274,778 10.00 % Tier 1 capital to risk weighted assets: Consolidated 1,256,251 9.85 1,083,836 8.50 N/A N/A Bank 1,463,771 11.48 1,083,561 8.50 1,019,822 8.00 Common equity tier 1 to risk weighted assets: Consolidated 1,200,651 9.42 892,571 7.00 N/A N/A Bank 1,463,771 11.48 892,344 7.00 828,606 6.50 Tier 1 capital to average assets: Consolidated 1,256,251 9.21 545,598 4.00 N/A N/A Bank 1,463,771 10.73 545,448 4.00 681,810 5.00 December 31, 2018 Total capital to risk weighted assets: Consolidated $ 1,072,156 12.58 % $ 681,686 8.00 % N/A N/A Bank 1,054,783 12.39 681,004 8.00 $ 851,255 10.00 % Tier 1 capital to risk weighted assets: Consolidated 887,354 10.41 511,264 6.00 N/A N/A Bank 1,009,981 11.86 510,753 6.00 681,004 8.00 Common equity tier 1 to risk weighted assets: Consolidated 856,754 10.05 383,448 4.50 N/A N/A Bank 1,009,981 11.86 383,065 4.50 553,316 6.50 Tier 1 capital to average assets: Consolidated 887,354 9.57 370,727 4.00 N/A N/A Bank 1,009,981 10.91 370,412 4.00 463,015 5.00 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | Fair values of the assets acquired and liabilities assumed in this transaction as of the closing date and subsequent measurement period adjustments are as follows: Initially Recorded at Acquisition Date Measurement Period Adjustments Adjusted Values as of September 30, 2019 Assets of acquired bank: Cash and cash equivalents $ 39,913 $ — $ 39,913 Certificates of deposit held in other banks 262 — 262 Securities available for sale 561,052 — 561,052 Restricted stock 27,794 — 27,794 Loans 2,788,159 1,709 2,789,868 Premises and equipment 65,786 — 65,786 Other real estate owned 1,710 119 1,829 Goodwill 270,583 1,641 272,224 Other intangible assets 71,518 — 71,518 Bank owned life insurance 80,837 — 80,837 Other assets 31,517 470 31,987 Total assets acquired $ 3,939,131 $ 3,939 $ 3,943,070 Liabilities of acquired bank: Deposits $ 3,108,810 $ — $ 3,108,810 Repurchase agreements 8,475 — 8,475 FHLB advances 142,653 — 142,653 Other borrowings 40,000 — 40,000 Junior subordinated debentures 25,774 — 25,774 Other liabilities 11,538 3,939 15,477 Total liabilities assumed $ 3,337,250 $ 3,939 $ 3,341,189 Common stock of 13,109,500 issued at $45.77 per share $ 600,022 $ — $ 600,022 Consideration attributable to 70,248 shares of restricted stock replacement awards $ 1,850 $ — $ 1,850 Cash paid $ 9 $ — $ 9 |
Business Acquisition, Pro Forma Information | The following table presents pro-forma information as if the Guaranty acquisition was completed as of January 1, 2018. The pro-forma results combine the historical results of Guaranty into the Company's consolidated statement of income including the impact of certain purchase accounting adjustments including loan and investment discount accretion and intangible assets amortization. The pro-forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2018: Three Months Ended September 30, Nine Months Ended September 30, 2018 2018 Interest income $ 154,070 $ 426,697 Noninterest income 21,021 54,934 Total revenue $ 175,091 $ 481,631 Net income $ 54,722 $ 148,304 Basic earnings per share $ 1.25 $ 3.50 Diluted earnings per share $ 1.25 $ 3.49 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Jan. 01, 2019business_trust | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($)segmentbusiness_trustshares | Oct. 24, 2018USD ($) |
Equity, Class of Treasury Stock [Line Items] | ||||||
Number of wholly owned statutory business trusts | business_trust | 9 | |||||
Number of reportable segments | segment | 1 | |||||
Common stock repurchased | $ 41,000 | $ 39,103,000 | $ 12,507,000 | |||
October 2018 Share Repurchase Program | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchase program authorized amount | $ 75,000,000 | |||||
Common stock repurchased (shares) | shares | 897,738 | |||||
Common stock repurchased | $ 49,048,000 | |||||
Common stock purchased to settle employee tax withholding related to vesting of stock awards (shares) | shares | 54,943 | |||||
Common stock purchased to settle employee tax withholding related to vesting of stock awards | $ 2,603,000 | |||||
October 2018 Share Repurchase Program, Authorized by Federal Reserve | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Share repurchase program authorized amount | 60,000,000 | |||||
Share repurchase program, remaining authorized repurchase amount | $ 10,952,000 | |||||
Guaranty Bancorp | ||||||
Equity, Class of Treasury Stock [Line Items] | ||||||
Number of wholly owned statutory business trusts | business_trust | 2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per share: | ||||||||
Net income | $ 55,633 | $ 49,736 | $ 37,131 | $ 35,696 | $ 29,635 | $ 28,964 | $ 142,500 | $ 94,295 |
Less: Undistributed earnings allocated to participating securities | 329 | 262 | 731 | 729 | ||||
Less: Dividends paid on participating securities | 79 | 36 | 216 | 104 | ||||
Net income available to common shareholders | $ 55,225 | $ 35,398 | $ 141,553 | $ 93,462 | ||||
Weighted average basic shares outstanding (shares) | 42,636,030 | 30,219,561 | 43,056,441 | 29,035,729 | ||||
Basic earnings per share (usd per share) | $ 1.30 | $ 1.17 | $ 3.29 | $ 3.22 | ||||
Diluted earnings per share: | ||||||||
Add dilutive stock warrants (shares) | 0 | 90,114 | 0 | 91,292 | ||||
Total weighted average diluted shares outstanding (shares) | 42,636,030 | 30,309,675 | 43,056,441 | 29,127,021 | ||||
Diluted earnings per share (usd per share) | $ 1.30 | $ 1.17 | $ 3.29 | $ 3.21 | ||||
Anti-dilutive participating securities (shares) | 46,223 | 62,588 | 60,001 | 112,797 |
Statement of Cash Flows - Other
Statement of Cash Flows - Other Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash transactions: | ||
Interest expense paid | $ 110,059 | $ 55,084 |
Income taxes paid | 26,684 | 17,159 |
Noncash transactions: | ||
Transfers of loans to other real estate owned | 544 | 410 |
Transfers of loans held for investment to loans held for sale | 83,526 | 0 |
Loans to facilitate the sale of other real estate owned | 517 | 0 |
Right-of-use assets obtained in exchange for lease liabilities | 35,491 | 0 |
Transfer of bank premises to other real estate | 7,896 | 0 |
Transfer of repurchase agreements to deposits | $ 8,475 | $ 0 |
Statement of Cash Flows - Nonca
Statement of Cash Flows - Noncash Investing from Branch Sale (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Noncash liabilities transferred: | ||
Deposit premium received | $ 1,386 | $ 0 |
Cash paid to buyer, net of deposit premium | 24,957 | 0 |
Sale of Branch | ||
Noncash assets transferred: | ||
Loans, including accrued interest | 796 | 0 |
Premises and equipment | 94 | 0 |
Other assets | 1 | 0 |
Total assets | 891 | 0 |
Noncash liabilities transferred: | ||
Deposits, including interest | 27,721 | 0 |
Other liabilities | 27 | 0 |
Total liabilities | 27,748 | 0 |
Sale of Branch | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||
Noncash liabilities transferred: | ||
Cash and cash equivalents transferred in branch sales | $ 206 | $ 0 |
Statement of Cash Flows - Non_2
Statement of Cash Flows - Noncash Investing Activities from Acquisitions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Noncash assets acquired | ||
Certificates of deposit held in other banks | $ 262 | $ 0 |
Securities available for sale | 561,052 | 24,721 |
Restricted stock | 27,794 | 3,357 |
Loans | 2,789,868 | 651,769 |
Premises and equipment | 65,786 | 4,863 |
Other real estate owned | 1,829 | 0 |
Goodwill | 272,224 | 100,326 |
Other intangible assets | 71,518 | 7,532 |
Bank owned life insurance | 80,837 | 8,181 |
Other assets | 31,987 | 6,393 |
Total assets acquired | 3,903,157 | 807,142 |
Noncash liabilities assumed: | ||
Deposits | 3,108,810 | 593,078 |
Repurchase agreements | 8,475 | 0 |
FHLB advances | 142,653 | 60,000 |
Other borrowings | 40,000 | 0 |
Junior subordinated debentures | 25,774 | 0 |
Other liabilities | 15,477 | 10,508 |
Total liabilities assumed | 3,341,189 | 663,586 |
Cash and cash equivalents acquired from acquisitions | 39,913 | 44,723 |
Cash paid to shareholders of acquired banks | 9 | 31,016 |
Fair value of common stock issued to shareholders of acquired banks | $ 601,872 | $ 157,263 |
Securities Available for Sale -
Securities Available for Sale - Amortized Cost of Securities and Approximate Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,058,924 | $ 696,613 |
Gross Unrealized Gains | 25,304 | 935 |
Gross Unrealized Losses | (412) | (12,198) |
Fair Value | 1,083,816 | 685,350 |
U.S. treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,060 | 30,110 |
Gross Unrealized Gains | 806 | 0 |
Gross Unrealized Losses | (31) | (467) |
Fair Value | 50,835 | 29,643 |
Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 179,980 | 152,969 |
Gross Unrealized Gains | 1,238 | 80 |
Gross Unrealized Losses | (183) | (2,819) |
Fair Value | 181,035 | 150,230 |
Obligations of state and municipal subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 334,017 | 187,366 |
Gross Unrealized Gains | 11,011 | 727 |
Gross Unrealized Losses | (15) | (3,086) |
Fair Value | 345,013 | 185,007 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,021 | |
Gross Unrealized Gains | 174 | |
Gross Unrealized Losses | 0 | |
Fair Value | 7,195 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 486,646 | 326,168 |
Gross Unrealized Gains | 12,075 | 128 |
Gross Unrealized Losses | (183) | (5,826) |
Fair Value | 498,538 | $ 320,470 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,200 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 1,200 |
Securities Available for Sale_2
Securities Available for Sale - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Abstract] | ||
Carrying value of securities pledged | $ 182,966 | $ 219,927 |
Securities Available for Sale_3
Securities Available for Sale - Proceeds, Gross Gains and Gross Losses from Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Debt Securities, Available-for-sale [Abstract] | ||||
Proceeds from sale | $ 0 | $ 15,254 | $ 189,704 | $ 42,727 |
Gross gains | 0 | 38 | 293 | 141 |
Gross losses | $ 0 | $ 153 | $ 28 | $ 490 |
Securities Available for Sale_4
Securities Available for Sale - Amortized Cost and Estimated Fair Value of Securities Available for Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year or less | $ 40,899 | |
Due from one year to five years | 201,969 | |
Due from five to ten years | 170,968 | |
Thereafter | 158,442 | |
Total | 572,278 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | 486,646 | |
Amortized Cost | 1,058,924 | $ 696,613 |
Fair Value | ||
Due in one year or less | 40,918 | |
Due from one year to five years | 204,570 | |
Due from five to ten years | 175,410 | |
Thereafter | 164,380 | |
Total | 585,278 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | 498,538 | |
Fair Value | $ 1,083,816 | $ 685,350 |
Securities Available for Sale_5
Securities Available for Sale - Summary of Unrealized Losses and Fair Value of Securities in Continuous Unrealized Loss Positions (Details) $ in Thousands | Sep. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: number of securities | security | 24 | 149 |
Less than 12 months: estimated fair value | $ 45,316 | $ 160,424 |
Less than 12 months: unrealized losses | $ (214) | $ (1,395) |
Greater than 12 months: number of securities | security | 21 | 367 |
Greater than 12 months: estimated fair value | $ 54,866 | $ 439,169 |
Greater than 12 months: unrealized losses | (198) | (10,803) |
Total: estimated fair value | 100,182 | 599,593 |
Total: unrealized losses | $ (412) | $ (12,198) |
U.S. treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: number of securities | security | 0 | 1 |
Less than 12 months: estimated fair value | $ 0 | $ 9,749 |
Less than 12 months: unrealized losses | $ 0 | $ (6) |
Greater than 12 months: number of securities | security | 3 | 5 |
Greater than 12 months: estimated fair value | $ 10,095 | $ 19,894 |
Greater than 12 months: unrealized losses | (31) | (461) |
Total: estimated fair value | 10,095 | 29,643 |
Total: unrealized losses | $ (31) | $ (467) |
Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: number of securities | security | 7 | 4 |
Less than 12 months: estimated fair value | $ 18,917 | $ 6,068 |
Less than 12 months: unrealized losses | $ (57) | $ (32) |
Greater than 12 months: number of securities | security | 12 | 43 |
Greater than 12 months: estimated fair value | $ 36,375 | $ 126,745 |
Greater than 12 months: unrealized losses | (126) | (2,787) |
Total: estimated fair value | 55,292 | 132,813 |
Total: unrealized losses | $ (183) | $ (2,819) |
Obligations of state and municipal subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: number of securities | security | 7 | 88 |
Less than 12 months: estimated fair value | $ 4,147 | $ 32,493 |
Less than 12 months: unrealized losses | $ (8) | $ (326) |
Greater than 12 months: number of securities | security | 2 | 218 |
Greater than 12 months: estimated fair value | $ 1,435 | $ 105,817 |
Greater than 12 months: unrealized losses | (7) | (2,760) |
Total: estimated fair value | 5,582 | 138,310 |
Total: unrealized losses | $ (15) | $ (3,086) |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less than 12 months: number of securities | security | 10 | 56 |
Less than 12 months: estimated fair value | $ 22,252 | $ 112,114 |
Less than 12 months: unrealized losses | $ (149) | $ (1,031) |
Greater than 12 months: number of securities | security | 4 | 101 |
Greater than 12 months: estimated fair value | $ 6,961 | $ 186,713 |
Greater than 12 months: unrealized losses | (34) | (4,795) |
Total: estimated fair value | 29,213 | 298,827 |
Total: unrealized losses | $ (183) | $ (5,826) |
Loans, Net and Allowance for _3
Loans, Net and Allowance for Loan Losses - Composition of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | $ 11,596,786 | $ 7,887,800 | ||||
Deferred loan fees | (1,757) | (3,303) | ||||
Allowance for loan losses | (50,447) | $ (51,075) | (44,802) | $ (42,166) | $ (43,308) | $ (39,402) |
Loans, net | 11,544,582 | 7,839,695 | ||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 2,452,769 | 1,361,104 | ||||
Allowance for loan losses | (13,146) | (15,677) | (11,793) | (11,155) | (11,805) | (10,599) |
Real estate | Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 5,933,498 | 4,141,356 | ||||
Real estate | Commercial construction, land and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 1,181,675 | 905,421 | ||||
Real estate | Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 1,511,236 | 1,049,521 | ||||
Allowance for loan losses | (3,599) | (3,696) | (3,320) | (3,086) | (3,319) | (3,447) |
Real estate | Single-family interim construction | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 376,596 | 331,748 | ||||
Allowance for loan losses | (1,565) | (1,511) | (1,402) | (1,492) | (1,643) | (1,583) |
Agricultural | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 104,139 | 66,638 | ||||
Allowance for loan losses | (337) | (343) | (241) | (267) | (224) | (250) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 36,237 | 31,759 | ||||
Allowance for loan losses | (244) | (252) | (186) | (178) | (187) | (205) |
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans, gross | 636 | 253 | ||||
Allowance for loan losses | $ (5) | $ (6) | $ (3) | $ (7) | $ (3) | $ 32 |
Loans, Net and Allowance for _4
Loans, Net and Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)modified_loan | Sep. 30, 2018USD ($)modified_loan | Sep. 30, 2019USD ($)modified_loancomponent | Sep. 30, 2018USD ($)modified_loan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, net | $ 11,544,582,000 | $ 11,544,582,000 | $ 7,839,695,000 | ||
Number of components allowance for loan losses is derived from | component | 2 | ||||
Troubled debt restructuring modification recorded investment | $ 1,254,000 | $ 1,254,000 | 1,925,000 | ||
Number of loans modified under troubled debt restructuring | 1 | 0 | 1 | 0 | |
Number of loans modified under troubled debt restructurings that subsequently defaulted | modified_loan | 0 | 0 | 0 | 0 | |
Commitments to lend | $ 0 | $ 0 | $ 0 | $ 0 | |
Receivables Acquired with Deteriorated Credit Quality | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Nonaccrual loans | 11,457,000 | 11,457,000 | 6,996,000 | ||
Allowance for loan losses on PCI loans | $ 321,000 | $ 321,000 | 45,000 | ||
Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans modified under troubled debt restructuring | 0 | 0 | |||
Commercial | Receivables Acquired with Deteriorated Credit Quality | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses on PCI loans | $ 1,000 | $ 1,000 | 45,000 | ||
Agricultural | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of loans modified under troubled debt restructuring | 0 | 0 | |||
Agricultural | Receivables Acquired with Deteriorated Credit Quality | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses on PCI loans | $ 0 | $ 0 | 0 | ||
Consumer | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of the portfolio | 1.00% | ||||
Number of loans modified under troubled debt restructuring | 0 | 0 | |||
Consumer | Receivables Acquired with Deteriorated Credit Quality | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses on PCI loans | $ 0 | $ 0 | 0 | ||
Geographic Concentration Risk | Loans and Leases, Net | Colorado | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of the portfolio | 28.00% | ||||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans requiring external review (greater than) | $ 3,825,000 | ||||
Energy Related Loans | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, net | 185,682,000 | 185,682,000 | 135,034,000 | ||
Warehouse Loans | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans, net | $ 660,650,000 | $ 660,650,000 | $ 170,290,000 | ||
Duration of the loans to larger mortgage originators | 60 days | ||||
Warehouse Loans | Minimum | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Duration of the loans to mortgage bankers | 10 days | ||||
Warehouse Loans | Maximum | Commercial | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Duration of the loans to mortgage bankers | 15 days | ||||
Owner Occupied | Loans and Leases, Net | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percentage of the portfolio | 30.00% | ||||
Real Estate Loan | Agricultural | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loan to value ratio (percent) | 80.00% | 80.00% | |||
Loan, amortization period | 20 years | ||||
Non-Real Estate Loan | Agricultural | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Period of operating lines | 1 year |
Loans, Net and Allowance for _5
Loans, Net and Allowance for Loan Losses - Rollforward of Activity in Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 51,075 | $ 43,308 | $ 44,802 | $ 39,402 |
Provision for loan losses | 5,233 | 1,525 | 13,196 | 6,950 |
Charge-offs | (5,900) | (2,685) | (7,721) | (4,252) |
Recoveries | 39 | 18 | 170 | 66 |
Balance at end of period | 50,447 | 42,166 | 50,447 | 42,166 |
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 15,677 | 11,805 | 11,793 | 10,599 |
Provision for loan losses | 3,151 | 1,887 | 8,507 | 4,183 |
Charge-offs | (5,698) | (2,538) | (7,221) | (3,633) |
Recoveries | 16 | 1 | 67 | 6 |
Balance at end of period | 13,146 | 11,155 | 13,146 | 11,155 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 29,662 | 26,192 | 27,795 | 23,301 |
Provision for loan losses | 2,318 | 149 | 4,185 | 3,385 |
Charge-offs | 0 | (82) | (3) | (435) |
Recoveries | 0 | 5 | 3 | 13 |
Balance at end of period | 31,980 | 26,264 | 31,980 | 26,264 |
Real estate | Residential Real Estate | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 3,696 | 3,319 | 3,320 | 3,447 |
Provision for loan losses | (50) | (233) | 419 | (358) |
Charge-offs | (47) | (1) | (140) | (6) |
Recoveries | 0 | 1 | 0 | 3 |
Balance at end of period | 3,599 | 3,086 | 3,599 | 3,086 |
Real estate | Single-family interim construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1,511 | 1,643 | 1,402 | 1,583 |
Provision for loan losses | 54 | (151) | 166 | (91) |
Charge-offs | 0 | 0 | (3) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | 1,565 | 1,492 | 1,565 | 1,492 |
Agricultural | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 343 | 224 | 241 | 250 |
Provision for loan losses | (6) | 43 | 96 | 17 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | 337 | 267 | 337 | 267 |
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 252 | 187 | 186 | 205 |
Provision for loan losses | 15 | (2) | 68 | (4) |
Charge-offs | (31) | (8) | (51) | (27) |
Recoveries | 8 | 1 | 41 | 4 |
Balance at end of period | 244 | 178 | 244 | 178 |
Other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 6 | 3 | 3 | (32) |
Provision for loan losses | 108 | 50 | 246 | 150 |
Charge-offs | (124) | (56) | (303) | (151) |
Recoveries | 15 | 10 | 59 | 40 |
Balance at end of period | 5 | 7 | 5 | 7 |
Unallocated | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | (72) | (65) | 62 | 49 |
Provision for loan losses | (357) | (218) | (491) | (332) |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance at end of period | $ (429) | $ (283) | $ (429) | $ (283) |
Loans, Net and Allowance for _6
Loans, Net and Allowance for Loan Losses - Summary of Activity in Allowance for Loan Losses by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Allowance for losses: | ||||||
Individually evaluated for impairment | $ 285 | $ 2,727 | ||||
Collectively evaluated for impairment | 49,841 | 42,030 | ||||
Ending balance | 50,447 | $ 51,075 | 44,802 | $ 42,166 | $ 43,308 | $ 39,402 |
Loans: | ||||||
Individually evaluated for impairment | 10,602 | 14,575 | ||||
Collectively evaluated for impairment | 11,266,209 | 7,760,791 | ||||
Ending balance | 11,596,786 | 7,887,800 | ||||
Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 321 | 45 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 319,975 | 112,434 | ||||
Ending balance | 319,975 | 112,434 | ||||
Commercial | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 278 | 2,633 | ||||
Collectively evaluated for impairment | 12,867 | 9,115 | ||||
Ending balance | 13,146 | 15,677 | 11,793 | 11,155 | 11,805 | 10,599 |
Loans: | ||||||
Individually evaluated for impairment | 3,453 | 7,288 | ||||
Collectively evaluated for impairment | 2,379,370 | 1,335,194 | ||||
Ending balance | 2,452,769 | 1,361,104 | ||||
Commercial | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 1 | 45 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 69,946 | 18,622 | ||||
Real estate | Commercial Real Estate, Construction, Land and Land Development | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 31,660 | 27,795 | ||||
Ending balance | 31,980 | 29,662 | 27,795 | 26,264 | 26,192 | 23,301 |
Loans: | ||||||
Individually evaluated for impairment | 4,954 | 1,734 | ||||
Collectively evaluated for impairment | 6,872,301 | 4,955,178 | ||||
Ending balance | 7,115,173 | 5,046,777 | ||||
Real estate | Commercial Real Estate, Construction, Land and Land Development | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 320 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 237,918 | 89,865 | ||||
Real estate | Residential Real Estate | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 92 | ||||
Collectively evaluated for impairment | 3,599 | 3,228 | ||||
Ending balance | 3,599 | 3,696 | 3,320 | 3,086 | 3,319 | 3,447 |
Loans: | ||||||
Individually evaluated for impairment | 1,986 | 1,943 | ||||
Collectively evaluated for impairment | 1,501,666 | 1,044,265 | ||||
Ending balance | 1,511,236 | 1,049,521 | ||||
Real estate | Residential Real Estate | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 7,584 | 3,313 | ||||
Real estate | Single-family interim construction | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,565 | 1,402 | ||||
Ending balance | 1,565 | 1,511 | 1,402 | 1,492 | 1,643 | 1,583 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 3,578 | ||||
Collectively evaluated for impairment | 376,596 | 328,170 | ||||
Ending balance | 376,596 | 331,748 | ||||
Real estate | Single-family interim construction | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 0 | 0 | ||||
Agricultural | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 337 | 241 | ||||
Ending balance | 337 | 343 | 241 | 267 | 224 | 250 |
Loans: | ||||||
Individually evaluated for impairment | 173 | 0 | ||||
Collectively evaluated for impairment | 99,465 | 66,032 | ||||
Ending balance | 104,139 | 66,638 | ||||
Agricultural | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 4,501 | 606 | ||||
Consumer | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 7 | 2 | ||||
Collectively evaluated for impairment | 237 | 184 | ||||
Ending balance | 244 | 252 | 186 | 178 | 187 | 205 |
Loans: | ||||||
Individually evaluated for impairment | 36 | 32 | ||||
Collectively evaluated for impairment | 36,175 | 31,699 | ||||
Ending balance | 36,237 | 31,759 | ||||
Consumer | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 26 | 28 | ||||
Other | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 5 | 3 | ||||
Ending balance | 5 | 6 | 3 | 7 | 3 | (32) |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 636 | 253 | ||||
Ending balance | 636 | 253 | ||||
Other | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | 0 | 0 | ||||
Unallocated | ||||||
Allowance for losses: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | (429) | 62 | ||||
Ending balance | (429) | $ (72) | 62 | $ (283) | $ (65) | $ 49 |
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Ending balance | 0 | 0 | ||||
Unallocated | Receivables Acquired with Deteriorated Credit Quality | ||||||
Allowance for losses: | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | ||||
Loans: | ||||||
Acquired with deteriorated credit quality | $ 0 | $ 0 |
Loans, Net and Allowance for _7
Loans, Net and Allowance for Loan Losses - Summary of Non Performing Loans by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | $ 1,254 | $ 1,925 |
Nonperforming Financial Instruments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 10,046 | 11,938 |
Loans past due 90 days and still accruing | 1,291 | 5 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 556 | 687 |
Total nonperforming loans | 11,893 | 12,630 |
Nonperforming Financial Instruments | Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 3,453 | 5,224 |
Loans past due 90 days and still accruing | 186 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 114 |
Total nonperforming loans | 3,639 | 5,338 |
Nonperforming Financial Instruments | Real estate | Commercial Real Estate, Construction, Land and Land Development | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 4,589 | 1,329 |
Loans past due 90 days and still accruing | 528 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 365 | 405 |
Total nonperforming loans | 5,482 | 1,734 |
Nonperforming Financial Instruments | Real estate | Residential Real Estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 1,795 | 1,775 |
Loans past due 90 days and still accruing | 532 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 191 | 168 |
Total nonperforming loans | 2,518 | 1,943 |
Nonperforming Financial Instruments | Real estate | Single-family interim construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 3,578 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 0 |
Total nonperforming loans | 0 | 3,578 |
Nonperforming Financial Instruments | Agricultural | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 173 | 0 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 0 |
Total nonperforming loans | 173 | 0 |
Nonperforming Financial Instruments | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 36 | 32 |
Loans past due 90 days and still accruing | 45 | 5 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 0 |
Total nonperforming loans | 81 | 37 |
Nonperforming Financial Instruments | Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Nonaccrual loans | 0 | 0 |
Loans past due 90 days and still accruing | 0 | 0 |
Troubled debt restructurings (not included in nonaccrual or loans past due and still accruing) | 0 | 0 |
Total nonperforming loans | $ 0 | $ 0 |
Loans, Net and Allowance for _8
Loans, Net and Allowance for Loan Losses - Impaired Loans by Loan Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | $ 1,505 | $ 1,505 | $ 6,551 | ||
Impaired loans with no allowance for loan losses | 9,097 | 9,097 | 8,024 | ||
Total | 10,602 | 10,602 | 14,575 | ||
Unpaid principal balance of impaired loans | 19,011 | 19,011 | 17,355 | ||
Allowance for loan losses on impaired loans | 285 | 285 | 2,727 | ||
Average recorded investment in impaired loans | 12,437 | $ 14,060 | 12,972 | $ 14,333 | |
Interest income recognized on impaired loans | 13 | 66 | 213 | 144 | |
Commercial | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 1,500 | 1,500 | 6,416 | ||
Impaired loans with no allowance for loan losses | 1,953 | 1,953 | 872 | ||
Total | 3,453 | 3,453 | 7,288 | ||
Unpaid principal balance of impaired loans | 11,590 | 11,590 | 9,822 | ||
Allowance for loan losses on impaired loans | 278 | 278 | 2,633 | ||
Average recorded investment in impaired loans | 6,971 | 9,004 | 7,050 | 9,327 | |
Interest income recognized on impaired loans | 4 | 36 | 25 | 56 | |
Real estate | Commercial Real Estate, Construction, Land and Land Development | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 0 | ||
Impaired loans with no allowance for loan losses | 4,954 | 4,954 | 1,734 | ||
Total | 4,954 | 4,954 | 1,734 | ||
Unpaid principal balance of impaired loans | 5,081 | 5,081 | 1,860 | ||
Allowance for loan losses on impaired loans | 0 | 0 | 0 | ||
Average recorded investment in impaired loans | 3,782 | 2,850 | 3,270 | 2,901 | |
Interest income recognized on impaired loans | 6 | 19 | 34 | 33 | |
Real estate | Residential Real Estate | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 134 | ||
Impaired loans with no allowance for loan losses | 1,986 | 1,986 | 1,809 | ||
Total | 1,986 | 1,986 | 1,943 | ||
Unpaid principal balance of impaired loans | 2,129 | 2,129 | 2,056 | ||
Allowance for loan losses on impaired loans | 0 | 0 | 92 | ||
Average recorded investment in impaired loans | 1,593 | 2,165 | 1,681 | 2,056 | |
Interest income recognized on impaired loans | 3 | 9 | 35 | 53 | |
Real estate | Single-family interim construction | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 0 | ||
Impaired loans with no allowance for loan losses | 0 | 0 | 3,578 | ||
Total | 0 | 0 | 3,578 | ||
Unpaid principal balance of impaired loans | 0 | 0 | 3,579 | ||
Allowance for loan losses on impaired loans | 0 | 0 | 0 | ||
Average recorded investment in impaired loans | 0 | 0 | 895 | 0 | |
Interest income recognized on impaired loans | 0 | 0 | 114 | 0 | |
Agricultural | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 0 | ||
Impaired loans with no allowance for loan losses | 173 | 173 | 0 | ||
Total | 173 | 173 | 0 | ||
Unpaid principal balance of impaired loans | 173 | 173 | 0 | ||
Allowance for loan losses on impaired loans | 0 | 0 | 0 | ||
Average recorded investment in impaired loans | 58 | 0 | 43 | 0 | |
Interest income recognized on impaired loans | 0 | 0 | 0 | 0 | |
Consumer | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 5 | 5 | 1 | ||
Impaired loans with no allowance for loan losses | 31 | 31 | 31 | ||
Total | 36 | 36 | 32 | ||
Unpaid principal balance of impaired loans | 38 | 38 | 38 | ||
Allowance for loan losses on impaired loans | 7 | 7 | 2 | ||
Average recorded investment in impaired loans | 33 | 41 | 33 | 49 | |
Interest income recognized on impaired loans | 0 | 2 | 5 | 2 | |
Other | |||||
Recorded investment in impaired loans: | |||||
Impaired loans with an allowance for loan losses | 0 | 0 | 0 | ||
Impaired loans with no allowance for loan losses | 0 | 0 | 0 | ||
Total | 0 | 0 | 0 | ||
Unpaid principal balance of impaired loans | 0 | 0 | 0 | ||
Allowance for loan losses on impaired loans | 0 | 0 | $ 0 | ||
Average recorded investment in impaired loans | 0 | 0 | 0 | 0 | |
Interest income recognized on impaired loans | $ 0 | $ 0 | $ 0 | $ 0 |
Loans, Net and Allowance for _9
Loans, Net and Allowance for Loan Losses - Summary of Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018 | Sep. 30, 2019USD ($) | Sep. 30, 2018 | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 1 | 0 | 1 | 0 |
Pre-restructuring outstanding recorded investment | $ 29 | $ 29 | ||
Post-restructuring outstanding recorded investment | $ 29 | $ 29 | ||
Commercial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 0 | 0 | ||
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Real estate | Commercial Real Estate, Construction, Land and Land Development | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 0 | 0 | ||
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Real estate | Residential Real Estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 1 | 1 | ||
Pre-restructuring outstanding recorded investment | $ 29 | $ 29 | ||
Post-restructuring outstanding recorded investment | $ 29 | $ 29 | ||
Real estate | Single-family interim construction | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 0 | 0 | ||
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Agricultural | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 0 | 0 | ||
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 0 | 0 | ||
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Post-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Other | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of loans modified under troubled debt restructuring | 0 | 0 | ||
Pre-restructuring outstanding recorded investment | $ 0 | $ 0 | ||
Post-restructuring outstanding recorded investment | $ 0 | $ 0 |
Loans, Net and Allowance for_10
Loans, Net and Allowance for Loan Losses - Aging of Past Due Loans by Loan Class (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Loans past due | $ 53,328 | $ 36,879 |
Current Loans | 11,543,458 | 7,850,921 |
Ending balance | 11,596,786 | 7,887,800 |
Acquired with deteriorated credit quality | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 20,558 | 3,896 |
Current Loans | 299,417 | 108,538 |
Ending balance | 319,975 | 112,434 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Ending balance | 2,452,769 | 1,361,104 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | ||
Financing Receivable, Past Due [Line Items] | ||
Ending balance | 7,115,173 | 5,046,777 |
Real estate | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Ending balance | 1,511,236 | 1,049,521 |
Real estate | Single-family interim construction | ||
Financing Receivable, Past Due [Line Items] | ||
Ending balance | 376,596 | 331,748 |
Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Ending balance | 104,139 | 66,638 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Ending balance | 36,237 | 31,759 |
Other | ||
Financing Receivable, Past Due [Line Items] | ||
Ending balance | 636 | 253 |
Loans 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 34,568 | 26,908 |
Loans 30-89 Days Past Due | Acquired with deteriorated credit quality | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 11,832 | 2,939 |
Loans 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 18,760 | 9,971 |
Loans 90 Days or More Past Due | Acquired with deteriorated credit quality | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 8,726 | 957 |
Receivables, excluding receivables acquired with deteriorated credit quality | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 32,770 | 32,983 |
Current Loans | 11,244,041 | 7,742,383 |
Ending balance | 11,276,811 | 7,775,366 |
Receivables, excluding receivables acquired with deteriorated credit quality | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 9,839 | 19,792 |
Current Loans | 2,372,984 | 1,322,690 |
Ending balance | 2,382,823 | 1,342,482 |
Receivables, excluding receivables acquired with deteriorated credit quality | Real estate | Commercial Real Estate, Construction, Land and Land Development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 14,267 | 3,435 |
Current Loans | 6,862,988 | 4,953,477 |
Ending balance | 6,877,255 | 4,956,912 |
Receivables, excluding receivables acquired with deteriorated credit quality | Real estate | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 5,112 | 5,234 |
Current Loans | 1,498,540 | 1,040,974 |
Ending balance | 1,503,652 | 1,046,208 |
Receivables, excluding receivables acquired with deteriorated credit quality | Real estate | Single-family interim construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 944 | 4,352 |
Current Loans | 375,652 | 327,396 |
Ending balance | 376,596 | 331,748 |
Receivables, excluding receivables acquired with deteriorated credit quality | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,339 | 0 |
Current Loans | 97,299 | 66,032 |
Ending balance | 99,638 | 66,032 |
Receivables, excluding receivables acquired with deteriorated credit quality | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 269 | 170 |
Current Loans | 35,942 | 31,561 |
Ending balance | 36,211 | 31,731 |
Receivables, excluding receivables acquired with deteriorated credit quality | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Current Loans | 636 | 253 |
Ending balance | 636 | 253 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 22,736 | 23,969 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 6,225 | 15,426 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | Real estate | Commercial Real Estate, Construction, Land and Land Development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 9,846 | 3,435 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | Real estate | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 3,367 | 4,199 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | Real estate | Single-family interim construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 944 | 774 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 2,166 | 0 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 188 | 135 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 30-89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 0 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 10,034 | 9,014 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 3,614 | 4,366 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | Real estate | Commercial Real Estate, Construction, Land and Land Development | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 4,421 | 0 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | Real estate | Residential Real Estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 1,745 | 1,035 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | Real estate | Single-family interim construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 0 | 3,578 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | Agricultural | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 173 | 0 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | 81 | 35 |
Receivables, excluding receivables acquired with deteriorated credit quality | Loans 90 Days or More Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Loans past due | $ 0 | $ 0 |
Loans, Net and Allowance for_11
Loans, Net and Allowance for Loan Losses - Summary of Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 11,596,786 | $ 7,887,800 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 11,173,816 | 7,633,330 |
Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 207,269 | 106,673 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 120,853 | 74,415 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 94,848 | 73,382 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 2,452,769 | 1,361,104 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 2,328,196 | 1,279,024 |
Commercial | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 44,848 | 18,378 |
Commercial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 53,107 | 30,783 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 26,618 | 32,919 |
Commercial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 7,115,173 | 5,046,777 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 6,842,137 | 4,895,217 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 155,067 | 81,693 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 63,956 | 40,601 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 54,013 | 29,266 |
Real estate | Commercial Real Estate, Construction, Land and Land Development | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real estate | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,511,236 | 1,049,521 |
Real estate | Residential Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,497,665 | 1,038,283 |
Real estate | Residential Real Estate | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 3,850 | 3,617 |
Real estate | Residential Real Estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 1,018 | 707 |
Real estate | Residential Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 8,703 | 6,914 |
Real estate | Residential Real Estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real estate | Single-family interim construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 376,596 | 331,748 |
Real estate | Single-family interim construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 375,985 | 327,939 |
Real estate | Single-family interim construction | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Real estate | Single-family interim construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 611 | 231 |
Real estate | Single-family interim construction | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 3,578 |
Real estate | Single-family interim construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Agricultural | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 104,139 | 66,638 |
Agricultural | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 93,136 | 61,055 |
Agricultural | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 3,463 | 2,918 |
Agricultural | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 2,161 | 2,093 |
Agricultural | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 5,379 | 572 |
Agricultural | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 36,237 | 31,759 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 36,061 | 31,559 |
Consumer | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 41 | 67 |
Consumer | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 135 | 133 |
Consumer | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Other | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 636 | 253 |
Other | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 636 | 253 |
Other | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Other | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Other | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Other | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 0 | $ 0 |
Loans, Net and Allowance for_12
Loans, Net and Allowance for Loan Losses - Additional Detail Related to the Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 11,596,786 | $ 7,887,800 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 11,173,816 | 7,633,330 |
Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 207,269 | 106,673 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 120,853 | 74,415 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 94,848 | 73,382 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 0 | 0 |
Receivables Acquired with Deteriorated Credit Quality | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 319,975 | 112,434 |
Receivables Acquired with Deteriorated Credit Quality | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 248,975 | 40,940 |
Receivables Acquired with Deteriorated Credit Quality | Pass/ Watch | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 24,666 | 32,427 |
Receivables Acquired with Deteriorated Credit Quality | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 9,229 | 14,817 |
Receivables Acquired with Deteriorated Credit Quality | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | 37,105 | 24,250 |
Receivables Acquired with Deteriorated Credit Quality | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans, gross | $ 0 | $ 0 |
Loans, Net and Allowance for_13
Loans, Net and Allowance for Loan Losses - Outstanding Balance and Related Carrying Amount of Purchased Impaired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Jun. 01, 2018 |
Business Acquisition [Line Items] | ||||
Outstanding balance | $ 357,368 | $ 129,333 | ||
Carrying amount | $ 319,975 | $ 112,434 | ||
Guaranty Bancorp | ||||
Business Acquisition [Line Items] | ||||
Outstanding balance | $ 341,645 | |||
Nonaccretable difference | (16,622) | |||
Accretable yield | (13,299) | |||
Carrying amount | $ 311,724 | |||
Integrity Bancshares, Inc. | ||||
Business Acquisition [Line Items] | ||||
Outstanding balance | $ 57,317 | |||
Nonaccretable difference | (9,969) | |||
Accretable yield | (128) | |||
Carrying amount | $ 47,220 |
Loans, Net and Allowance for_14
Loans, Net and Allowance for Loan Losses - Purchased Credit Impaired Loans in Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Outstanding balance | $ 357,368 | $ 129,333 |
Carrying amount | $ 319,975 | $ 112,434 |
Loans, Net and Allowance for_15
Loans, Net and Allowance for Loan Losses - Accretable Yield Rollforward (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at January 1, | $ 1,436 | $ 1,546 |
Additions | 13,299 | 128 |
Accretion | (4,076) | (1,503) |
Transfers from nonaccretable | 0 | 1,319 |
Balance at September 30, | $ 10,659 | $ 1,490 |
Other Borrowings and Junior S_2
Other Borrowings and Junior Subordinated Debentures (Details) | Jan. 01, 2019USD ($)business_trust | Sep. 30, 2019USD ($)business_trust | Dec. 31, 2018USD ($) |
Debt Instrument [Line Items] | |||
Other borrowings | $ 212,642,000 | $ 137,316,000 | |
Junior subordinated debentures | $ 53,775,000 | 27,852,000 | |
Number of wholly owned statutory business trusts | business_trust | 9 | ||
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowings against line of credit | $ 35,000,000 | $ 0 | |
Subordinated Debt, Fixed And Floating Rate | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $ 40,000,000 | ||
Stated interest rate | 5.75% | ||
Guaranty Bancorp | |||
Debt Instrument [Line Items] | |||
Junior subordinated debentures | $ 25,774,000 | $ 25,774,000 | |
Number of wholly owned statutory business trusts | business_trust | 2 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)branch | Jan. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Number of branches leased | branch | 21 | |
Number of branches operated | branch | 93 | |
Right-of-use assets | $ | $ 33,292 | $ 38,812 |
Lease liability | $ | $ 30,166 | $ 33,953 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 31 years |
Leases - Schedule of Net Lease
Leases - Schedule of Net Lease Cost and Other Information Related to Operating Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 1,565 | $ 5,348 |
Variable lease cost | 452 | 1,454 |
Sublease income | (57) | (171) |
Net lease cost | $ 1,960 | 6,631 |
Operating cash flows from operating leases | 5,479 | |
ROU assets obtained in exchange for lease liabilities | $ 40,440 | |
Weighted average remaining lease term - operating leases, in years | 7 years 8 months 23 days | 7 years 8 months 23 days |
Weighted average discount rate - operating leases (percent) | 3.35% | 3.35% |
Leases - Summary of Lease Liabi
Leases - Summary of Lease Liability Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 | $ 5,906 | |
2020 | 5,912 | |
2021 | 5,109 | |
2022 | 4,565 | |
2023 | 3,505 | |
Thereafter | 9,275 | |
Total lease payments | 34,272 | |
Less imputed interest | (4,106) | |
Lease liability | $ 30,166 | $ 33,953 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 2,340,157 | $ 1,776,721 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | 2,315,471 | 1,761,724 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 24,686 | $ 14,997 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense for the period | $ 14,903 | $ 9,141 | $ 39,418 | $ 23,465 |
Effective tax rate (percent) | 21.10% | 20.40% | 21.70% | 19.90% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities at Fair Value on Recurring Basis (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | $ 1,083,816,000 | $ 685,350,000 | |
Loans held for sale, fair value option | 27,432,000 | 27,871,000 | |
Aggregate principal balance of loans held for sale | 26,500,000 | 26,594,000 | |
Loans held for sale, 90 days or greater past due | 0 | ||
Loans held for sale, non-accrual | 0 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 1,083,816,000 | 685,350,000 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 1,083,816,000 | 685,350,000 | |
Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Not designated as hedging | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Loans held for sale, fair value option | [1] | 27,432,000 | 27,871,000 |
Not designated as hedging | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Loans held for sale, fair value option | [1] | 0 | 0 |
Not designated as hedging | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Loans held for sale, fair value option | [1] | 27,432,000 | 27,871,000 |
Not designated as hedging | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Loans held for sale, fair value option | [1] | 0 | 0 |
Not designated as hedging | Interest rate lock commitments | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 1,504,000 | 822,000 | |
Derivative financial instruments - Liabilities | 0 | 0 | |
Not designated as hedging | Interest rate lock commitments | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 1,504,000 | 822,000 | |
Not designated as hedging | Interest rate lock commitments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | 0 | |
Not designated as hedging | Interest rate lock commitments | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 1,504,000 | 822,000 | |
Not designated as hedging | Interest rate lock commitments | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | 0 | |
Not designated as hedging | Forward mortgage-backed securities trades | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 37,000 | 0 | |
Derivative financial instruments - Liabilities | 70,000 | 226,000 | |
Not designated as hedging | Forward mortgage-backed securities trades | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 37,000 | ||
Derivative financial instruments - Liabilities | 70,000 | 226,000 | |
Not designated as hedging | Forward mortgage-backed securities trades | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | ||
Derivative financial instruments - Liabilities | 0 | 0 | |
Not designated as hedging | Forward mortgage-backed securities trades | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 37,000 | ||
Derivative financial instruments - Liabilities | 70,000 | 226,000 | |
Not designated as hedging | Forward mortgage-backed securities trades | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | ||
Derivative financial instruments - Liabilities | 0 | 0 | |
Not designated as hedging | Interest Rate Swap | Loan customer counterparty | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 8,397,000 | 360,000 | |
Derivative financial instruments - Liabilities | 108,000 | ||
Not designated as hedging | Interest Rate Swap | Loan customer counterparty | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | 0 | |
Derivative financial instruments - Liabilities | 0 | ||
Not designated as hedging | Interest Rate Swap | Loan customer counterparty | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 8,397,000 | 360,000 | |
Derivative financial instruments - Liabilities | 108,000 | ||
Not designated as hedging | Interest Rate Swap | Loan customer counterparty | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | 0 | |
Derivative financial instruments - Liabilities | 0 | ||
Not designated as hedging | Interest Rate Swap | Financial institution counterparty | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 109,000 | ||
Derivative financial instruments - Liabilities | 9,077,000 | 406,000 | |
Not designated as hedging | Interest Rate Swap | Financial institution counterparty | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | ||
Derivative financial instruments - Liabilities | 0 | 0 | |
Not designated as hedging | Interest Rate Swap | Financial institution counterparty | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 109,000 | ||
Derivative financial instruments - Liabilities | 9,077,000 | 406,000 | |
Not designated as hedging | Interest Rate Swap | Financial institution counterparty | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Derivative financial instruments - Assets | 0 | ||
Derivative financial instruments - Liabilities | 0 | 0 | |
U.S. treasuries | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 50,835,000 | 29,643,000 | |
U.S. treasuries | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 50,835,000 | 29,643,000 | |
U.S. treasuries | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
U.S. treasuries | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 50,835,000 | 29,643,000 | |
U.S. treasuries | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Government agency securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 181,035,000 | 150,230,000 | |
Government agency securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 181,035,000 | 150,230,000 | |
Government agency securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Government agency securities | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 181,035,000 | 150,230,000 | |
Government agency securities | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Obligations of state and municipal subdivisions | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 345,013,000 | 185,007,000 | |
Obligations of state and municipal subdivisions | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 345,013,000 | 185,007,000 | |
Obligations of state and municipal subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Obligations of state and municipal subdivisions | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 345,013,000 | 185,007,000 | |
Obligations of state and municipal subdivisions | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Corporate bonds | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 7,195,000 | ||
Corporate bonds | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 7,195,000 | ||
Corporate bonds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | ||
Corporate bonds | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 7,195,000 | ||
Corporate bonds | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | ||
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 498,538,000 | 320,470,000 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 498,538,000 | 320,470,000 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | 0 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 498,538,000 | 320,470,000 | |
Residential pass-through securities guaranteed by FNMA, GNMA and FHLMC | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | $ 0 | |
Other securities | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 1,200,000 | ||
Other securities | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 1,200,000 | ||
Other securities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 0 | ||
Other securities | Significant Other Observable Inputs (Level 2) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | 1,200,000 | ||
Other securities | Significant Unobservable Inputs (Level 3) | Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring Basis | |||
Securities available for sale | $ 0 | ||
[1] | At September 30, 2019 and December 31, 2018 , loans held for sale for which the fair value option was elected had an aggregate outstanding principal balance of $26,500 and $26,594 . There were no mortgage loans held for sale under the fair value option that were 90 days or greater past due or on nonaccrual at September 30, 2019 . |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets and Liabilities at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 10,602 | $ 14,575 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,409 | 3,824 |
Other real estate | 6,192 | |
Fair Value, Measurements, Nonrecurring | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Period Ended Total Losses | 4,418 | 2,227 |
Fair Value, Measurements, Nonrecurring | Other real estate | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Period Ended Total Losses | 982 | |
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate | 0 | |
Fair Value, Measurements, Nonrecurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate | 0 | |
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ||
Impaired loans | 2,409 | $ 3,824 |
Other real estate | $ 6,192 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | $ 2,340,157 | $ 1,776,721 |
Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 2,315,471 | 1,761,724 |
Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 24,686 | 14,997 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 570,101 | 130,779 |
Certificates of deposit held in other banks | 0 | 0 |
Loans held for sale, at cost | 0 | 0 |
Loans, net | 0 | 0 |
FHLB of Dallas stock and other restricted stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit held in other banks | 5,978 | 1,224 |
Loans held for sale, at cost | 5,560 | 4,974 |
Loans, net | 0 | 0 |
FHLB of Dallas stock and other restricted stock | 29,918 | 26,870 |
Accrued interest receivable | 36,825 | 24,253 |
Financial liabilities: | ||
Deposits | 11,749,640 | 7,750,059 |
Accrued interest payable | 7,982 | 6,183 |
FHLB advances | 495,933 | 287,450 |
Other borrowings | 222,100 | 138,450 |
Junior subordinated debentures | 50,225 | 31,370 |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit held in other banks | 0 | 0 |
Loans held for sale, at cost | 0 | 0 |
Loans, net | 11,664,979 | 7,807,823 |
FHLB of Dallas stock and other restricted stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Accrued interest payable | 0 | 0 |
FHLB advances | 0 | 0 |
Other borrowings | 0 | 0 |
Junior subordinated debentures | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 570,101 | 130,779 |
Certificates of deposit held in other banks | 5,715 | 1,225 |
Loans held for sale, at cost | 5,497 | 4,856 |
Loans, net | 11,544,582 | 7,839,695 |
FHLB of Dallas stock and other restricted stock | 29,918 | 26,870 |
Accrued interest receivable | 36,825 | 24,253 |
Financial liabilities: | ||
Deposits | 11,727,885 | 7,737,794 |
Accrued interest payable | 7,982 | 6,183 |
FHLB advances | 555,000 | 290,000 |
Other borrowings | 212,642 | 137,316 |
Junior subordinated debentures | 53,775 | 27,852 |
Carrying Amount | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Carrying Amount | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 570,101 | 130,779 |
Certificates of deposit held in other banks | 5,978 | 1,224 |
Loans held for sale, at cost | 5,560 | 4,974 |
Loans, net | 11,664,979 | 7,807,823 |
FHLB of Dallas stock and other restricted stock | 29,918 | 26,870 |
Accrued interest receivable | 36,825 | 24,253 |
Financial liabilities: | ||
Deposits | 11,749,640 | 7,750,059 |
Accrued interest payable | 7,982 | 6,183 |
FHLB advances | 495,933 | 287,450 |
Other borrowings | 222,100 | 138,450 |
Junior subordinated debentures | 50,225 | 31,370 |
Estimated Fair Value | Commitments to extend credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | 0 | 0 |
Estimated Fair Value | Standby letters of credit | ||
Off-balance sheet assets (liabilities): | ||
Financial instruments with off-balance sheet risk | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Notional Balances and Fair Values of Outstanding Positions (Details) - Not designated as hedging - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Interest rate lock commitments | ||
Derivative [Line Items] | ||
Outstanding Notional Balance | $ 54,552 | $ 20,306 |
Asset Derivative Fair Value | 1,504 | 822 |
Liability Derivative Fair Value | 0 | 0 |
Forward mortgage-backed securities trades | ||
Derivative [Line Items] | ||
Outstanding Notional Balance | 50,500 | 27,500 |
Asset Derivative Fair Value | 37 | 0 |
Liability Derivative Fair Value | 70 | 226 |
Commercial loan interest rate swaps | Commercial Loan | Loan customer counterparty | ||
Derivative [Line Items] | ||
Outstanding Notional Balance | 240,317 | 25,055 |
Asset Derivative Fair Value | 8,397 | 360 |
Liability Derivative Fair Value | 0 | 108 |
Commercial loan interest rate swaps | Commercial Loan | Financial institution counterparty | ||
Derivative [Line Items] | ||
Outstanding Notional Balance | 240,317 | 25,055 |
Asset Derivative Fair Value | 0 | 109 |
Liability Derivative Fair Value | $ 9,077 | $ 406 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Derivative [Line Items] | |
Cash collateral pledged for derivatives | $ 5,872 |
Securities collateral pledged for derivatives | 2,637 |
Financial institution counterparty | Interest Rate Swap | |
Derivative [Line Items] | |
Credit exposure limited to the net favorable value of all swaps | $ 8,397 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Income (Loss) on Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest rate lock commitments | ||||
Derivative [Line Items] | ||||
Derivatives not designated as hedging instruments | $ 126 | $ 906 | $ 682 | $ 906 |
Forward mortgage-backed securities trades | ||||
Derivative [Line Items] | ||||
Derivatives not designated as hedging instruments | $ 61 | $ 110 | $ 156 | $ 110 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | May 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation expense | $ 1,910 | $ 1,541 | $ 5,834 | $ 4,496 | ||
Estimated future compensation expense | 13,260 | $ 13,260 | ||||
Period for recognition | 2 years 6 months 18 days | |||||
Fair value of common stock awards vested | $ 7,752 | 7,960 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Excess tax expense (benefits) on vested restricted stock | $ 11 | $ (19) | $ 21 | $ (632) | ||
2013 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Increase in shares reserved for future issuance (shares) | 1,500,000 | |||||
Shares reserved for future issuance (shares) | 2,300,000 | |||||
Remaining available for grant for future awards (shares) | 1,435,222 | 1,435,222 | ||||
2013 Equity Incentive Plan | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock vesting period | 3 years | |||||
2013 Equity Incentive Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock vesting period | 5 years | |||||
Guaranty 2015 RSA | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock vesting period | 2 years |
Stock Awards - Nonvested Shares
Stock Awards - Nonvested Shares Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Number of Shares | ||
Nonvested shares, beginning balance (shares) | 252,903 | 242,056 |
Acquired awards replaced during the period (shares) | 70,248 | |
Granted during the period (shares) | 138,608 | 127,712 |
Vested during the period (shares) | (143,516) | (111,520) |
Forfeited during the period (shares) | (13,615) | (3,845) |
Nonvested shares, ending balance (shares) | 304,628 | 254,403 |
Weighted Average Grant Date Fair Value | ||
Nonvested shares, beginning balance (usd per share) | $ 62.81 | $ 49.17 |
Acquired awards replaced during the period (usd per share) | 45.77 | |
Granted during the period (usd per share) | 51.14 | 72.09 |
Vested during the period (usd per share) | 54.66 | 44.33 |
Forfeited during the period (usd per share) | 46.55 | 64.47 |
Nonvested shares, ending balance (usd per share) | $ 58.14 | $ 62.57 |
Stock Awards - Future Vesting S
Stock Awards - Future Vesting Schedule of Nonvested Shares (Details) | Sep. 30, 2019shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares (shares) | 304,628 |
First year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares (shares) | 117,548 |
Second year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares (shares) | 100,901 |
Third year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares (shares) | 64,639 |
Fourth year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares (shares) | 19,460 |
Fifth year | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Nonvested shares (shares) | 2,080 |
Regulatory Matters - Actual Cap
Regulatory Matters - Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Consolidated | ||
Total capital to risk weighted assets: | ||
Actual Amount | $ 1,464,698 | $ 1,072,156 |
Actual Ratio (percent) | 11.49% | 12.58% |
Minimum for Capital Adequacy Purposes Amount | $ 1,338,856 | $ 681,686 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 10.50% | 8.00% |
Tier 1 capital to risk weighted assets: | ||
Actual Amount | $ 1,256,251 | $ 887,354 |
Actual Ratio (percent) | 9.85% | 10.41% |
Minimum for Capital Adequacy Purposes Amount | $ 1,083,836 | $ 511,264 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 8.50% | 6.00% |
Common equity tier 1 to risk weighted assets: | ||
Actual Amount | $ 1,200,651 | $ 856,754 |
Actual Ratio (percent) | 9.42% | 10.05% |
Minimum for Capital Adequacy Purposes Amount | $ 892,571 | $ 383,448 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 7.00% | 4.50% |
Tier 1 capital to average assets: | ||
Actual Amount | $ 1,256,251 | $ 887,354 |
Actual Ratio (percent) | 9.21% | 9.57% |
Minimum for Capital Adequacy Purposes Amount | $ 545,598 | $ 370,727 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 4.00% | 4.00% |
Bank | ||
Total capital to risk weighted assets: | ||
Actual Amount | $ 1,514,218 | $ 1,054,783 |
Actual Ratio (percent) | 11.88% | 12.39% |
Minimum for Capital Adequacy Purposes Amount | $ 1,338,517 | $ 681,004 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 10.50% | 8.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 1,274,778 | $ 851,255 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 10.00% | 10.00% |
Tier 1 capital to risk weighted assets: | ||
Actual Amount | $ 1,463,771 | $ 1,009,981 |
Actual Ratio (percent) | 11.48% | 11.86% |
Minimum for Capital Adequacy Purposes Amount | $ 1,083,561 | $ 510,753 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 8.50% | 6.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 1,019,822 | $ 681,004 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 8.00% | 8.00% |
Common equity tier 1 to risk weighted assets: | ||
Actual Amount | $ 1,463,771 | $ 1,009,981 |
Actual Ratio (percent) | 11.48% | 11.86% |
Minimum for Capital Adequacy Purposes Amount | $ 892,344 | $ 383,065 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 7.00% | 4.50% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 828,606 | $ 553,316 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 6.50% | 6.50% |
Tier 1 capital to average assets: | ||
Actual Amount | $ 1,463,771 | $ 1,009,981 |
Actual Ratio (percent) | 10.73% | 10.91% |
Minimum for Capital Adequacy Purposes Amount | $ 545,448 | $ 370,412 |
Minimum for Capital Adequacy Purposes Ratio (percent) | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | $ 681,810 | $ 463,015 |
To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (percent) | 5.00% | 5.00% |
Business Combinations - Additio
Business Combinations - Additional Information (Details) $ in Thousands | Jan. 01, 2019USD ($)branchshares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 994,021 | $ 994,021 | $ 721,797 | |||
Acquisition related expenses | 9,465 | $ 1,682 | 28,175 | $ 5,671 | ||
Offering costs paid in connection with acquired bank | (804) | $ (209) | ||||
Guaranty Bancorp | ||||||
Business Acquisition [Line Items] | ||||||
Percentage of voting interests acquired | 100.00% | |||||
Number of branches acquired | branch | 32 | |||||
Stock issued for acquisition of bank (in shares) | shares | 13,179,748 | |||||
Goodwill | $ 270,583 | 272,224 | 272,224 | |||
Acquisition related expenses | $ 10,217 | 33,503 | $ 1,560 | |||
Offering costs paid in connection with acquired bank | $ (804) | |||||
Estimated fair value of non-credit impaired loans | 2,478,144 | |||||
Contractual balance of non-credit impaired loans | 2,573,355 | |||||
Interest income adjustment for non-credit impaired loans | $ 95,211 |
Business Combinations - Fair Va
Business Combinations - Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Assets of acquired bank: | ||||
Goodwill | $ 994,021 | $ 721,797 | ||
Liabilities of acquired bank: | ||||
Common stock issued | 601,872 | $ 157,263 | ||
Cash paid to shareholders of acquired banks | 9 | $ 31,016 | ||
Guaranty Bancorp | ||||
Assets of acquired bank: | ||||
Cash and cash equivalents | $ 39,913 | 39,913 | ||
Certificates of deposit held in other banks | 262 | 262 | ||
Securities available for sale | 561,052 | 561,052 | ||
Restricted stock | 27,794 | 27,794 | ||
Loans | 2,788,159 | 2,789,868 | ||
Premises and equipment | 65,786 | 65,786 | ||
Other real estate owned | 1,710 | 1,829 | ||
Goodwill | 270,583 | 272,224 | ||
Other intangible assets | 71,518 | 71,518 | ||
Bank owned life insurance | 80,837 | 80,837 | ||
Other assets | 31,517 | 31,987 | ||
Total assets acquired | 3,939,131 | 3,943,070 | ||
Measurement Period Adjustments | ||||
Loans | 1,709 | |||
Other real estate owned | 119 | |||
Goodwill | 1,641 | |||
Other assets | 470 | |||
Total assets | 3,939 | |||
Other liabilities | 3,939 | |||
Total liabilities | 3,939 | |||
Liabilities of acquired bank: | ||||
Deposits | 3,108,810 | 3,108,810 | ||
Repurchase agreements | 8,475 | 8,475 | ||
FHLB advances | 142,653 | 142,653 | ||
Other borrowings | 40,000 | 40,000 | ||
Junior subordinated debentures | 25,774 | 25,774 | ||
Other liabilities | 11,538 | 15,477 | ||
Total liabilities assumed | 3,337,250 | 3,341,189 | ||
Common stock issued | $ 600,022 | 600,022 | ||
Common stock issued (in shares) | 13,179,748 | |||
Common stock issued (usd per share) | $ 45.77 | |||
Cash paid to shareholders of acquired banks | $ 9 | 9 | ||
Common Stock | Guaranty Bancorp | ||||
Liabilities of acquired bank: | ||||
Common stock issued (in shares) | 13,109,500 | |||
Restricted Stock Replacement Awards | Guaranty Bancorp | ||||
Liabilities of acquired bank: | ||||
Common stock issued | $ 1,850 | $ 1,850 | ||
Common stock issued (in shares) | 70,248 |
Business Combinations - Pro For
Business Combinations - Pro Forma Information (Details) - Guaranty Bancorp - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||
Interest income | $ 154,070 | $ 426,697 |
Noninterest income | 21,021 | 54,934 |
Total revenue | 175,091 | 481,631 |
Net income | $ 54,722 | $ 148,304 |
Basic earnings per share (usd per share) | $ 1.25 | $ 3.50 |
Diluted earnings per share (usd per share) | $ 1.25 | $ 3.49 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Thousands | Oct. 23, 2019 | Oct. 01, 2019 |
Subsequent Event [Line Items] | ||
Dividends declared (usd per share) | $ 0.25 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Trust Business Sale | ||
Subsequent Event [Line Items] | ||
Transfer of assets held in fiduciary and agency capacities | $ 306,000 | |
Proceeds from sale of trust | 4,700 | |
Gain on sale of trust | $ 1,400 |