Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37585 | |
Entity Registrant Name | Allegiance Bancshares, Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 26-3564100 | |
Entity Address, Address Line One | 8847 West Sam Houston Parkway, N. | |
Entity Address, Address Line Two | Suite 200 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77040 | |
City Area Code | 281 | |
Local Phone Number | 894-3200 | |
Title of 12(b) Security | Common Stock, par value, $1.00 per share | |
Trading Symbol | ABTX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 20,247,480 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001642081 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 23,903 | $ 122,897 |
Interest-bearing deposits at other financial institutions | 879,858 | 299,869 |
Total cash and cash equivalents | 903,761 | 422,766 |
Available for sale securities, at fair value | 1,211,476 | 772,890 |
Loans held for investment | 4,289,469 | 4,491,764 |
Less: allowance for credit losses on loans | (50,491) | (53,173) |
Loans, net | 4,238,978 | 4,438,591 |
Accrued interest receivable | 33,523 | 40,053 |
Premises and equipment, net | 65,140 | 70,685 |
Other real estate owned | 1,397 | 9,196 |
Federal Home Loan Bank stock | 8,326 | 7,756 |
Bank owned life insurance | 28,101 | 27,686 |
Goodwill | 223,642 | 223,642 |
Core deposit intangibles, net | 15,482 | 17,954 |
Other assets | 29,935 | 18,909 |
TOTAL ASSETS | 6,759,761 | 6,050,128 |
Deposits: | ||
Noninterest-bearing | 2,086,683 | 1,704,567 |
Interest-bearing | ||
Demand | 594,959 | 437,328 |
Money market and savings | 1,604,222 | 1,499,938 |
Certificates and other time | 1,381,014 | 1,346,649 |
Total interest-bearing deposits | 3,580,195 | 3,283,915 |
Total deposits | 5,666,878 | 4,988,482 |
Accrued interest payable | 3,296 | 2,701 |
Borrowed funds | 139,954 | 155,515 |
Subordinated debt | 108,715 | 108,322 |
Other liabilities | 42,326 | 36,439 |
Total liabilities | 5,961,169 | 5,291,459 |
COMMITMENTS AND CONTINGENCIES (See Note 13) | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $1 par value; 1,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $1 par value; 80,000,000 shares authorized; 20,218,175 shares issued and outstanding at September 30, 2021 and 20,208,323 shares issued and outstanding at December 31, 2020 | 20,218 | 20,208 |
Capital surplus | 507,948 | 508,794 |
Retained earnings | 247,966 | 195,236 |
Accumulated other comprehensive income | 22,460 | 34,431 |
Total shareholders’ equity | 798,592 | 758,669 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 6,759,761 | $ 6,050,128 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 20,218,175 | 20,208,323 |
Common stock, shares outstanding (in shares) | 20,218,175 | 20,208,323 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 58,176 | $ 56,418 | $ 173,858 | $ 167,463 |
Securities: | ||||
Taxable | 2,998 | 2,095 | 7,956 | 6,024 |
Tax-exempt | 2,498 | 2,280 | 7,383 | 4,995 |
Deposits in other financial institutions | 221 | 18 | 356 | 233 |
Total interest income | 63,893 | 60,811 | 189,553 | 178,715 |
INTEREST EXPENSE: | ||||
Demand, money market and savings deposits | 1,267 | 1,657 | 4,088 | 7,750 |
Certificates and other time deposits | 2,583 | 5,239 | 9,237 | 17,168 |
Borrowed funds | 436 | 558 | 1,444 | 1,626 |
Subordinated debt | 1,441 | 1,448 | 4,324 | 4,390 |
Total interest expense | 5,727 | 8,902 | 19,093 | 30,934 |
NET INTEREST INCOME | 58,166 | 51,909 | 170,460 | 147,781 |
Provision for credit losses | 2,295 | 1,347 | 255 | 23,006 |
Net interest income after provision for credit losses | 55,871 | 50,562 | 170,205 | 124,775 |
NONINTEREST INCOME: | ||||
Gain on sale of securities | 0 | 0 | 49 | 287 |
Loss on sale of other real estate and other repossessed assets | 0 | 117 | (176) | (258) |
Bank owned life insurance income | 125 | 144 | 415 | 438 |
Debit card and ATM card income | 771 | 574 | 2,162 | 1,568 |
Other | 647 | 615 | 2,155 | 2,673 |
Total noninterest income | 2,099 | 1,850 | 6,108 | 6,137 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 22,335 | 20,034 | 67,259 | 59,149 |
Depreciation | 2,335 | 2,057 | 6,950 | 5,890 |
Depreciation | 1,060 | 946 | 3,151 | 2,697 |
Data processing and software amortization | 2,222 | 2,125 | 6,598 | 5,885 |
Professional fees | 1,223 | 756 | 2,620 | 2,129 |
Regulatory assessments and FDIC insurance | 883 | 875 | 2,458 | 2,116 |
Core deposit intangibles amortization | 824 | 989 | 2,472 | 2,969 |
Communications | 358 | 355 | 1,011 | 1,162 |
Advertising | 481 | 327 | 1,211 | 1,218 |
Other real estate expense | 137 | 2,017 | 479 | 4,780 |
Other | 2,438 | 2,084 | 8,601 | 6,750 |
Total noninterest expense | 34,296 | 32,565 | 102,810 | 94,745 |
INCOME BEFORE INCOME TAXES | 23,674 | 19,847 | 73,503 | 36,167 |
Provision for income taxes | 4,614 | 3,677 | 13,508 | 6,574 |
NET INCOME | $ 19,060 | $ 16,170 | $ 59,995 | $ 29,593 |
EARNINGS PER SHARE: | ||||
Basic (in dollars per share) | $ 0.94 | $ 0.79 | $ 2.97 | $ 1.45 |
Diluted (in dollars per share) | 0.93 | 0.79 | 2.95 | 1.44 |
DIVIDENDS PER SHARE (in dollars per share) | $ 0.12 | $ 0.10 | $ 0.36 | $ 0.30 |
Deposit Account, Nonsufficient Funds Fee | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customer | $ 131 | $ 75 | $ 308 | $ 304 |
Deposit Account, Service Charge Fee | ||||
NONINTEREST INCOME: | ||||
Revenue from contract with customer | $ 425 | $ 325 | $ 1,195 | $ 1,125 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 19,060 | $ 16,170 | $ 59,995 | $ 29,593 |
Unrealized (loss) gain on securities: | ||||
Change in unrealized holding (loss) gain on available for sale securities during the period | (10,548) | 2,004 | (16,356) | 33,036 |
Reclassification of gain realized through the sale of securities | 0 | 0 | (49) | (287) |
Unrealized gain (loss) on cash flow hedge: | ||||
Change in fair value of cash flow hedge | 0 | 80 | 1,477 | (1,495) |
Reclassification of gain realized through the termination of cash flow hedge | 0 | 0 | (225) | 0 |
Total other comprehensive (loss) income | (10,548) | 2,084 | (15,153) | 31,254 |
Deferred tax benefit (expense) related to other comprehensive income | 2,214 | (437) | 3,182 | (6,563) |
Other comprehensive (loss) income, net of tax | (8,334) | 1,647 | (11,971) | 24,691 |
Comprehensive income | $ 10,726 | $ 17,817 | $ 48,024 | $ 54,284 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance (in shares) at Dec. 31, 2019 | 20,523,816 | ||||
Balance at Dec. 31, 2019 | $ 709,865 | $ 20,524 | $ 521,066 | $ 163,375 | $ 4,900 |
Net income | 29,593 | 29,593 | |||
Other comprehensive income (loss) | 24,691 | 24,691 | |||
Cash dividends declared | (6,102) | (6,102) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 165,148 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 1,727 | $ 165 | 1,562 | ||
Repurchase of common stock (in shares) | (244,334) | ||||
Repurchase of common stock | (9,302) | $ (244) | (9,058) | ||
Stock based compensation expense | 2,581 | 2,581 | |||
Balance (in shares) at Sep. 30, 2020 | 20,444,630 | ||||
Balance at Sep. 30, 2020 | 753,053 | $ 20,445 | 516,151 | 186,866 | 29,591 |
Balance (in shares) at Jun. 30, 2020 | 20,430,836 | ||||
Balance at Jun. 30, 2020 | 736,143 | $ 20,431 | 515,045 | 172,723 | 27,944 |
Net income | 16,170 | 16,170 | |||
Other comprehensive income (loss) | 1,647 | 1,647 | |||
Cash dividends declared | (2,027) | (2,027) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 13,794 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 257 | $ 14 | 243 | ||
Stock based compensation expense | 863 | 863 | |||
Balance (in shares) at Sep. 30, 2020 | 20,444,630 | ||||
Balance at Sep. 30, 2020 | 753,053 | $ 20,445 | 516,151 | 186,866 | 29,591 |
Balance (in shares) at Dec. 31, 2020 | 20,208,323 | ||||
Balance at Dec. 31, 2020 | 758,669 | $ 20,208 | 508,794 | 195,236 | 34,431 |
Net income | 59,995 | 59,995 | |||
Other comprehensive income (loss) | (11,971) | (11,971) | |||
Cash dividends declared | (7,265) | (7,265) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 171,058 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 1,932 | $ 171 | 1,761 | ||
Repurchase of common stock (in shares) | (161,206) | ||||
Repurchase of common stock | (5,659) | $ (161) | (5,498) | ||
Stock based compensation expense | 2,891 | 2,891 | |||
Balance (in shares) at Sep. 30, 2021 | 20,218,175 | ||||
Balance at Sep. 30, 2021 | 798,592 | $ 20,218 | 507,948 | 247,966 | 22,460 |
Balance (in shares) at Jun. 30, 2021 | 20,212,534 | ||||
Balance at Jun. 30, 2021 | 789,150 | $ 20,213 | 506,810 | 231,333 | 30,794 |
Net income | 19,060 | 19,060 | |||
Other comprehensive income (loss) | (8,334) | (8,334) | |||
Cash dividends declared | (2,427) | (2,427) | |||
Common stock issued in connection with the exercise of stock options and restricted stock awards (in shares) | 5,641 | ||||
Common stock issued in connection with the exercise of stock options and restricted stock awards | 111 | $ 5 | 106 | ||
Stock based compensation expense | 1,032 | 1,032 | |||
Balance (in shares) at Sep. 30, 2021 | 20,218,175 | ||||
Balance at Sep. 30, 2021 | $ 798,592 | $ 20,218 | $ 507,948 | $ 247,966 | $ 22,460 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Per share amount of cash dividends declared | $ 0.12 | $ 0.10 | $ 0.36 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 59,995,000 | $ 29,593,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and core deposit intangibles amortization | 5,623,000 | 5,666,000 |
Provision for credit losses | 255,000 | 23,006,000 |
Deferred income tax expense (benefit) | 434,000 | (5,123,000) |
Net amortization of premium on investments | 5,295,000 | 2,498,000 |
Excess tax benefit from stock based compensation | (262,000) | (65,000) |
Bank owned life insurance income | (415,000) | (438,000) |
Net accretion of discount on loans | (385,000) | (2,227,000) |
Net amortization of discount on subordinated debt | 86,000 | 84,000 |
Net accretion of discount on certificates of deposit | (122,000) | (295,000) |
Loss on sale of other real estate and other repossessed assets | 176,000 | 258,000 |
Loss on write-downs of premises, equipment and other real estate | 1,317,000 | 4,065,000 |
Net gain on sale of securities | (49,000) | (287,000) |
Federal Home Loan Bank stock dividends | (52,000) | (170,000) |
Stock based compensation expense | 2,891,000 | 2,581,000 |
Net change in operating leases | 2,155,000 | 1,947,000 |
Increase in accrued interest receivable and other assets | (2,919,000) | (21,070,000) |
Increase (decrease) in accrued interest payable and other liabilities | 7,633,000 | (2,397,000) |
Net cash provided by operating activities | 81,656,000 | 37,626,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal paydowns of available for sale securities | 3,249,803,000 | 3,548,616,000 |
Proceeds from sales and calls of available for sale securities | 4,898,000 | 30,790,000 |
Purchase of available for sale securities | (3,714,411,000) | (3,839,758,000) |
Net change in total loans | 209,737,000 | (687,460,000) |
Purchase of bank premises and equipment | (2,557,000) | (5,520,000) |
Proceeds from sale of bank premises, equipment and other real estate | 430,000 | 4,027,000 |
Net purchases of Federal Home Loan Bank stock | (518,000) | (3,304,000) |
Net cash used in investing activities | (252,618,000) | (952,609,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in noninterest-bearing deposits | 382,116,000 | 520,468,000 |
Net increase in interest-bearing deposits | 296,402,000 | 329,092,000 |
Net change in other borrowed funds | 0 | 65,000,000 |
Net (paydown) increase in borrowings under credit agreement | (15,569,000) | 15,000,000 |
Dividends paid to common shareholders | (7,265,000) | (6,102,000) |
Proceeds from the issuance of common stock and stock option exercises | 1,932,000 | 1,727,000 |
Repurchase of common stock | (5,659,000) | (9,302,000) |
Net cash provided by financing activities | 651,957,000 | 915,883,000 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 480,995,000 | 900,000 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 422,766,000 | 346,248,000 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 903,761,000 | 347,148,000 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Income taxes paid | 16,250,000 | 5,800,000 |
Interest paid | 18,498,000 | 32,178,000 |
Cash paid for operating lease liabilities | 2,596,000 | 2,438,000 |
SUPPLEMENTAL NONCASH DISCLOSURE: | ||
Lease right-of-use asset obtained in exchange for lessee operating lease liabilities | 1,446,000 | 2,221,000 |
Loans transferred to other real estate | 821,000 | 539,000 |
Bank-financed sales of other real estate | $ 8,125,000 | $ 2,315,000 |
NATURE OF OPERATIONS AND SUMMAR
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES | NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES Nature of Operations -Allegiance Bancshares, Inc. (“Allegiance”) and its wholly-owned subsidiary, Allegiance Bank, (the “Bank”, and together with Allegiance, collectively referred to as the “Company”) provide commercial and retail loans and commercial banking services. The Company derives substantially all of its revenues and income from the operation of the Bank. The Company is focused on delivering a wide variety of relationship-driven commercial banking products and community-oriented services tailored to meet the needs of small to medium-sized businesses, professionals and individual customers. The Company operated 27 full-service banking locations in the Houston region, which it defines as the Houston-The Woodlands-Sugar Land and Beaumont-Port Arthur metropolitan statistical areas, with 26 bank offices in the Houston metropolitan area and one bank office location in Beaumont, just outside of the Houston metropolitan area as of September 30, 2021. The Bank provides its customers with a variety of banking services including checking accounts, savings accounts and certificates of deposit, and its primary lending products are commercial, personal, automobile, mortgage and home improvement loans. The Bank also offers safe deposit boxes, automated teller machines, drive-through services and 24-hour depository facilities. Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between the Company and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. Significant Accounting and Reporting Policies The Company’s significant accounting and reporting policies can be found in Note 1 of the Company’s annual financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. New Accounting Standards Adoption of New Accounting Standards ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” ASU 2021-01 clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2021-01 did not significantly impact the Company's financial statements. ASU 2020-09, “Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762.” ASU 2020-09 amends the ASC to reflect the issuance of an SEC rule related to financial disclosure requirements for subsidiary issuers and guarantors of registered debt securities and affiliates whose securities are pledged as collateral for registered securities. ASU 2020-09 became effective for the Company on January 4, 2021, concurrent with the effective date of the SEC release, and did not have a significant impact on the Company's financial statements. ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs.” ASU 2020-08 clarifies the accounting for the amortization of purchase premiums for callable debt securities with multiple call dates. ASU 2020-08 became effective for the Company on January 1, 2021 and did not have a significant impact on the Company's financial statements. ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), that removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 introduces the following new guidance: (i) guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction and (ii) a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. Additionally, ASU 2019-12 changes the following current guidance: (i) making an intraperiod allocation, if there is a loss in continuing operations and gains outside of continuing operations, (ii) determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting, (iii) accounting for tax law changes and year-to-date losses in interim periods, and (iv) determining how to apply the income tax guidance to franchise taxes that are partially based on income. The Company adopted ASU 2019-12 on January 1, 2021, which did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC Topic 326”) , was issued by the FASB in June 2016 along with subsequent amendments thereto, which introduce the current expected credit losses (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities measured at amortized cost. ASC Topic 326 also applies to off-balance sheet credit exposures. This methodology replaces the multiple existing impairment methods in current guidance, which generally require that a loss be incurred before it is recognized. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than previous practice. For available for sale debt securities that the Company intends to hold and where fair value is less than cost, credit-related impairment, if any, will be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. CECL became effective for the Company on January 1, 2020; however, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed in to law by the President of the United States and allowed the option to temporarily defer or suspend the adoption of ASC Topic 326. The Company elected to temporarily defer the adoption of CECL due to the uncertainty of the impact of COVID-19 and the volatility of crude oil prices, which can be impactful to the Houston market. During the deferral, the Company calculated and recorded its provision for loan losses under the incurred loss model that existed prior to ASC Topic 326. The Company adopted the new standard as of January 1, 2020, during the fourth quarter of 2020, using the modified retrospective method such that prior period amounts were not adjusted, but were reported in accordance with previously applicable generally accepted accounting principles and a cumulative effect adjustment to the opening balance of retained earnings was recognized. Upon adoption of ASC Topic 326, the Company recognized an increase in allowance for credit losses on loans of $3.1 million and the establishment of an allowance for credit losses for off-balance sheet exposure of $3.9 million and a corresponding decrease in retained earnings of $5.5 million, after-tax. The Company adopted ASC Topic 326 using the prospective transition approach for purchased credit deteriorated (“PCD”) loans, which did not require re-evaluation of whether loans previously classified as purchased credit impaired (“PCI”) loans met the criteria of PCD assets at the date of adoption. The Company recognized an increase in the allowance for credit losses for loans of $2.1 million, due to the reclassification of PCD discounts previously classified as PCI with a corresponding adjustment to the gross carrying amount of the loans. The remaining noncredit discount was accreted into interest income at the effective interest rate as of January 1, 2020. See Note 4 “Loans and Allowance for Credit Losses” for additional information. The following table illustrates the impact of adopting ASC Topic 326: As of January 1, 2020 As Reported Under ASC Topic 326 Pre-ASC Topic 326 Adoption Impact of ASC Topic 326 Adoption (Dollars in thousands) Assets: Allowance for credit losses on loans: Commercial and industrial $ 15,840 $ 8,818 $ 7,022 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 6,007 11,170 (5,163) Commercial real estate construction and land development 6,051 4,421 1,630 1-4 family residential (including home equity) 5,452 3,852 1,600 Residential construction 1,056 1,057 (1) Consumer and other 257 120 137 Allowance for credit losses on loans $ 34,663 $ 29,438 $ 5,225 Liabilities: Allowance for credit losses on unfunded commitments $ 3,866 $ — $ 3,866 ASC Topic 326 also requires expected credit losses on available for sale (“AFS”) debt securities to be recorded as an allowance for credit losses. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may expect zero credit losses. The zero-loss expectation generally applies to the Company’s securities and no allowance for credit losses were recorded on its AFS securities portfolio at transition. See Note 3 “Securities” for additional information. Newly Issued But Not Yet Effective Accounting Standards ASU 2020-04, "Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting - Accounting Standards Codification (“ASC”) Topic 848." ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. The guidance allows for companies to: (i) account for certain contract modifications as a continuation of the existing contract without additional analysis; (ii) continue hedge accounting when certain critical terms of a hedging relationship change and assess effectiveness in ways that disregard certain potential sources of ineffectiveness; and (iii) make a one-time sale and/or transfer of certain debt securities from held-to-maturity to available for sale or trading. This ASU is available for adoption effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within ASU 2020-04, the amendments must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made at any time after March 12, 2020. The Company anticipates this ASU will simplify any modifications it executes between the selected start date (yet to be determined) and December 31, 2022 that are directly related to the LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees and costs. ASU 2020-04 is not expected to have a significant impact on the Company’s financial statements. |
GOODWILL AND CORE DEPOSIT INTAN
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS | GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit (Dollars in thousands) Balance as of December 31, 2019 $ 223,642 $ 21,876 Amortization — (3,922) Balance as of December 31, 2020 223,642 17,954 Amortization — (2,472) Balance as of September 30, 2021 $ 223,642 $ 15,482 Goodwill is recorded on the acquisition date of an entity. During the measurement period, the Company may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. Management performs an evaluation annually, and more frequently if a triggering event occurs, of whether any impairment of the goodwill and other intangible assets has occurred. If any such impairment is determined, a write-down is recorded. As of September 30, 2021, there were no impairments recorded on goodwill and other intangible assets. The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2021 is as follows (dollars in thousands): Remaining 2021 $ 824 2022 3,003 2023 2,323 2024 2,188 2025 2,061 Thereafter 5,083 Total $ 15,482 |
SECURITIES
SECURITIES | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The amortized cost and fair value of investment securities were as follows: September 30, 2021 Amortized Gross Gross Fair (Dollars in thousands) Available for Sale U.S. government and agency securities $ 132,434 $ 487 $ (928) $ 131,993 Municipal securities 455,816 28,142 (1,686) 482,272 Agency mortgage-backed pass-through securities 250,913 2,585 (3,651) 249,847 Agency collateralized mortgage obligations 230,273 2,585 (2,111) 230,747 Corporate bonds and other 113,598 3,420 (401) 116,617 Total $ 1,183,034 $ 37,219 $ (8,777) $ 1,211,476 December 31, 2020 Amortized Gross Gross Fair (Dollars in thousands) Available for Sale U.S. government and agency securities $ 25,545 $ 654 $ — $ 26,199 Municipal securities 392,586 35,079 (60) 427,605 Agency mortgage-backed pass-through securities 167,606 3,829 (146) 171,289 Agency collateralized mortgage obligations 80,182 4,263 (75) 84,370 Corporate bonds and other 62,124 1,352 (49) 63,427 Total $ 728,043 $ 45,177 $ (330) $ 772,890 As of September 30, 2021, no allowance for credit losses has been recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality. This is based upon the Company’s analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to its available for sale securities and in consideration of our historical credit loss experience and internal forecasts. The issuers of these securities continue to make timely principal and interest payments under the contractual terms of the securities. Furthermore, management does not have the intent to sell any of the securities classified as available for sale in the table above and believes that it is more likely than not that we will not have to sell any such securities before a recovery of cost. The unrealized losses are due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. The amortized cost and fair value of investment securities at September 30, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair (Dollars in thousands) Due in one year or less $ 3,879 $ 3,939 Due after one year through five years 13,365 14,012 Due after five years through ten years 136,698 141,890 Due after ten years 547,906 571,041 Subtotal 701,848 730,882 Agency mortgage-backed pass-through securities and collateralized mortgage obligations 481,186 480,594 Total $ 1,183,034 $ 1,211,476 Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2021 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (Dollars in thousands) Available for Sale U.S. government and agency securities $ 98,257 $ (928) $ — $ — $ 98,257 $ (928) Municipal securities 73,698 (1,380) 8,513 (306) 82,211 (1,686) Agency mortgage-backed pass-through securities 121,593 (3,450) 7,958 (201) 129,551 (3,651) Agency collateralized mortgage obligations 117,355 (1,977) 10,402 (134) 127,757 (2,111) Corporate bonds and other 25,430 (401) — — 25,430 (401) Total $ 436,333 $ (8,136) $ 26,873 $ (641) $ 463,206 $ (8,777) December 31, 2020 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (Dollars in thousands) Available for Sale Municipal securities $ 8,844 $ (60) $ — $ — $ 8,844 $ (60) Agency mortgage-backed pass-through securities 28,659 (146) — — 28,659 (146) Agency collateralized mortgage obligations 11,629 (39) 4,203 (36) 15,832 (75) Corporate bonds and other 15,951 (49) — — 15,951 (49) Total $ 65,083 $ (294) $ 4,203 $ (36) $ 69,286 $ (330) The Company sold $4.9 million of securities recording gross gains of $49 thousand for the nine months ended September 30, 2021 with none of these securities sold during the three months ended September 30, 2021. There were no securities sold during the three months ended September 30, 2020. The Company sold $30.8 million and had calls of $7.1 million of securities recording gross gains of $391 thousand and gross losses of $104 thousand for a net gain of $287 thousand for the nine months ended September 30, 2020. At September 30, 2021 and December 31, 2020, the Company did not own securities of any one issuer, other than the U.S government and its agencies, in an amount greater than 10% of consolidated shareholders’ equity at such respective dates. The carrying value of pledged securities was $11.7 million at September 30, 2021 and $18.5 million at December 31, 2020, respectively. The majority of the securities were pledged to collateralize public fund deposits. |
LOANS AND ALLOWANCE FOR CREDIT
LOANS AND ALLOWANCE FOR CREDIT LOSSES | 9 Months Ended |
Sep. 30, 2021 | |
Loans And Allowance For Credit Losses [Abstract] | |
LOANS AND ALLOWANCE FOR CREDIT LOSSES | LOANS AND ALLOWANCE FOR CREDIT LOSSES The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are classified by major type as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Commercial and industrial $ 728,897 $ 667,079 Paycheck Protection Program (PPP) 290,028 569,901 Real estate: Commercial real estate (including multi-family residential) 2,073,521 1,999,877 Commercial real estate construction and land development 382,610 367,213 1-4 family residential (including home equity) 683,919 737,605 Residential construction 104,638 127,522 Consumer and other 25,856 22,567 Total loans 4,289,469 4,491,764 Allowance for credit losses on loans (50,491) (53,173) Loans, net $ 4,238,978 $ 4,438,591 Nonaccrual and Past Due Loans An aging analysis of the recorded investment in past due loans, segregated by class of loans, is included below. The Company defines recorded investment as the outstanding loan balances including net deferred loan fees, and excluding accrued interest receivable of $27.4 million and $34.5 million as of September 30, 2021 and December 31, 2020, respectively, due to immateriality. September 30, 2021 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (Dollars in thousands) Commercial and industrial $ 5,479 $ — $ 5,479 $ 10,247 $ 713,171 $ 728,897 Paycheck Protection Program (PPP) — — — — 290,028 290,028 Real estate: Commercial real estate (including multi-family residential) 11,021 — 11,021 14,629 2,047,871 2,073,521 Commercial real estate construction and land development 653 — 653 53 381,904 382,610 1-4 family residential (including home equity) 2,428 — 2,428 3,224 678,267 683,919 Residential construction 1,191 — 1,191 — 103,447 104,638 Consumer and other 23 — 23 216 25,617 25,856 Total loans $ 20,795 $ — $ 20,795 $ 28,369 $ 4,240,305 $ 4,289,469 December 31, 2020 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (Dollars in thousands) Commercial and industrial $ 2,486 $ — $ 2,486 $ 10,747 $ 653,846 $ 667,079 Paycheck Protection Program (PPP) — — — — 569,901 569,901 Real estate: Commercial real estate (including multi-family residential) 3,063 — 3,063 10,081 1,986,733 1,999,877 Commercial real estate construction and land development 2,930 — 2,930 3,011 361,272 367,213 1-4 family residential (including home equity) 3,000 — 3,000 4,525 730,080 737,605 Residential construction — — — — 127,522 127,522 Consumer and other 46 — 46 529 21,992 22,567 Total loans $ 11,525 $ — $ 11,525 $ 28,893 $ 4,451,346 $ 4,491,764 Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt. The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale of 1 to 9. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes including lending management monitoring, executive management and board committee oversight, and independent credit review. As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for credit losses, management assigns and tracks certain risk ratings to be used as credit quality indicators including trends related to (i) the weighted-average risk grade of loans, (ii) the level of classified loans, (iii) the delinquency status of loans (iv) nonperforming loans and (vi) the general economic conditions in the Houston region. Individual bankers, under the oversight of credit administration, review updated financial information for all pass grade commercial loans to reassess the risk grade on at least an annual basis. When a loan has a risk grade of Pass/Watch (4), it is still considered a pass grade loan; however, it is considered to be on management’s “watch list,” where a significant risk-modifying action is anticipated in the near term. When a loan reaches a set of internally designated criteria, including Substandard-nonperforming (7) or higher, a special assets officer generally will be involved in the monitoring of the loan on an on-going basis. The following is a general description of the risk ratings used: Watch —Loans classified as watch loans may still be of high quality, but have an element of risk added to the credit such as declining payment history, deteriorating financial position of the borrower or a decrease in collateral value. Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard —Loans classified as substandard have well-defined weaknesses on a continuing basis and are inadequately protected by the current net worth and paying capacity of the borrower, declining collateral values, or a continuing downturn in their industry which is reducing their profits to below zero and having a significantly negative impact on their cash flow. These loans so classified are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful —Loans classified as doubtful have all the weaknesses inherent in those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values, highly questionable and improbable. Loss —Loans classified as loss are to be charged-off or charged-down when payment is acknowledged to be uncertain or when the timing or value of payments cannot be determined. “Loss” is not intended to imply that the loan or some portion of it will never be paid, nor does it in any way imply that there has been a forgiveness of debt. The following table presents risk ratings by category of loan as of September 30, 2021 and December 31, 2020: As of September 30, 2021 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Revolving Loans Total Total 2021 2020 2019 2018 2017 Prior (Dollars in thousands) Commercial and industrial Pass $ 159,566 $ 94,424 $ 50,231 $ 30,160 $ 12,645 $ 14,707 $ 294,765 $ 206 $ 656,704 $ 562,518 Watch 14,143 4,144 6,446 3,772 724 1,912 6,702 — 37,843 41,026 Special Mention 1,466 313 793 1,344 352 — 2,075 — 6,343 25,010 Substandard 12,059 5,336 1,891 1,768 2,015 842 3,990 — 27,901 38,385 Doubtful 106 — — — — — — — 106 140 Total commercial and industrial loans $ 187,340 $ 104,217 $ 59,361 $ 37,044 $ 15,736 $ 17,461 $ 307,532 $ 206 $ 728,897 $ 667,079 Paycheck Protection Program (PPP) Pass $ 263,719 $ 26,309 $ — $ — $ — $ — $ — $ — $ 290,028 $ 569,901 Watch — — — — — — — — — — Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ 263,719 $ 26,309 $ — $ — $ — $ — $ — $ — $ 290,028 $ 569,901 Commercial real estate (including multi-family residential) Pass $ 572,881 $ 505,844 $ 243,402 $ 154,344 $ 151,428 $ 112,031 $ 40,746 $ 488 $ 1,781,164 $ 1,629,023 Watch 30,209 17,837 21,763 13,473 21,973 20,315 1,675 — 127,245 177,651 Special Mention 10,383 9,197 6,379 4,697 5,602 5,302 1,847 — 43,407 68,276 Substandard 17,993 22,948 25,437 15,893 16,944 21,211 1,086 193 121,705 124,927 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 631,466 $ 555,826 $ 296,981 $ 188,407 $ 195,947 $ 158,859 $ 45,354 $ 681 $ 2,073,521 $ 1,999,877 Commercial real estate construction and land development Pass $ 163,027 $ 111,059 $ 37,062 $ 15,751 $ 7,625 $ 6,550 $ 13,381 $ — $ 354,455 $ 320,133 Watch 3,498 5,432 2,133 2,789 5,000 — — — 18,852 39,021 Special Mention 4,124 165 1,633 366 865 250 — — 7,403 2,880 Substandard 534 98 472 654 — — 142 — 1,900 5,179 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 171,183 $ 116,754 $ 41,300 $ 19,560 $ 13,490 $ 6,800 $ 13,523 $ — $ 382,610 $ 367,213 1-4 family residential (including home equity) Pass $ 152,421 $ 163,538 $ 91,396 $ 58,739 $ 47,500 $ 33,771 $ 77,540 $ 2,212 $ 627,117 $ 670,074 Watch 4,722 5,826 2,843 5,705 4,006 3,220 6,448 2,337 35,107 37,667 Special Mention 2,202 261 972 487 331 2,346 2,497 53 9,149 18,790 Substandard 1,093 1,384 2,791 2,823 1,460 2,780 215 — 12,546 11,074 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 160,438 $ 171,009 $ 98,002 $ 67,754 $ 53,297 $ 42,117 $ 86,700 $ 4,602 $ 683,919 $ 737,605 As of September 30, 2021 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans 2021 2020 2019 2018 2017 Prior Total Total (Dollars in thousands) Residential construction Pass $ 60,063 $ 33,376 $ 1,598 $ 5,208 $ 715 $ — $ — $ — $ 100,960 $ 124,737 Watch 2,033 — 741 — — — — — 2,774 2,785 Special Mention — — — — — — — — — — Substandard 904 — — — — — — — 904 — Doubtful — — — — — — — — — — Total residential construction $ 63,000 $ 33,376 $ 2,339 $ 5,208 $ 715 $ — $ — $ — $ 104,638 $ 127,522 Consumer and other Pass (1) (2,304) 21,098 1,507 983 394 64 3,236 — 24,978 21,359 Watch 110 252 191 — — — 63 — 616 389 Special Mention — — 4 18 — — 16 — 38 270 Substandard — 9 208 7 — — — — 224 549 Doubtful — — — — — — — — — — Total consumer and other $ (2,194) $ 21,359 $ 1,910 $ 1,008 $ 394 $ 64 $ 3,315 $ — $ 25,856 $ 22,567 Total loans Pass 1,369,373 955,648 425,196 265,185 220,307 167,123 429,668 2,906 3,835,406 3,897,745 Watch 54,715 33,491 34,117 25,739 31,703 25,447 14,888 2,337 222,437 298,539 Special Mention 18,175 9,936 9,781 6,912 7,150 7,898 6,435 53 66,340 115,226 Substandard 32,583 29,775 30,799 21,145 20,419 24,833 5,433 193 165,180 180,114 Doubtful 106 — — — — — — — 106 140 Total loans $ 1,474,952 $ 1,028,850 $ 499,893 $ 318,981 $ 279,579 $ 225,301 $ 456,424 $ 5,489 $ 4,289,469 $ 4,491,764 (1) Includes net deferred fees of $10.8 million and $13.9 million on PPP loans as of September 30, 2021 and December 31, 2020, respectively. The following table presents the activity in the allowance for credit losses on loans by portfolio type for the three and nine months ended September 30, 2021 and 2020: Commercial and industrial Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for credit losses on loans: Three Months Ended Balance June 30, 2021 $ 18,254 $ — $ 22,909 $ 6,006 $ 1,304 $ 840 $ 273 $ 49,586 Provision for credit losses on loans 565 — 423 822 (381) 34 (108) 1,355 Charge-offs (50) — (457) — — — (20) (527) Recoveries 70 — — — — — 7 77 Net charge-offs 20 — (457) — — — (13) (450) Balance September 30, 2021 $ 18,839 $ — $ 22,875 $ 6,828 $ 923 $ 874 $ 152 $ 50,491 Nine Months Ended Balance December 31, 2020 $ 17,738 $ — $ 23,934 $ 6,939 $ 3,279 $ 870 $ 413 $ 53,173 Recapture of credit losses on loans 1,563 — (602) (111) (2,335) 4 (244) (1,725) Charge-offs (609) — (457) — (21) — (24) (1,111) Recoveries 147 — — — — — 7 154 Net charge-offs (462) — (457) — (21) — (17) (957) Balance September 30, 2021 $ 18,839 $ — $ 22,875 $ 6,828 $ 923 $ 874 $ 152 $ 50,491 Allowance for loan losses: Three Months Ended Balance June 30, 2020 $ 13,367 $ — $ 20,889 $ 3,865 $ 7,542 $ 1,803 $ 176 $ 47,642 Provision for loan losses (126) — 2,453 (379) (349) (471) 219 1,347 Charge-offs (350) — — (71) — — — (421) Recoveries 122 — 8 — — — — 130 Net charge-offs (228) — 8 (71) — — — (291) Balance September 30, 2020 $ 13,013 $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 Nine Months Ended Balance December 31, 2019 $ 8,818 $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Provision for loan losses 5,256 — 12,309 1,335 3,556 275 275 23,006 Charge-offs (1,442) — (137) (2,341) (215) — — (4,135) Recoveries 381 — 8 — — — — 389 Net charge-offs (1,061) — (129) (2,341) (215) — — (3,746) Balance September 30, 2020 $ 13,013 $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 Allowance for Credit Losses on Unfunded Commitments . In addition to the allowance for credit losses on loans, the Company has established an allowance for credit losses on unfunded commitments, classified in other liabilities and adjusted as a provision for credit loss expense. The allowance represents estimates of expected credit losses over the contractual period in which there is exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on the commitments expected to fund. The estimate of commitments expected to fund is informed by historical analysis looking at utilization rates. The expected credit loss rates applied to the commitments expected to fund is informed by the general valuation allowance utilized for outstanding balances with the same underlying assumptions and drivers. The allowance for credit losses on unfunded commitments as of September 30, 2021 and December 31, 2020 was $6.7 million and $4.7 million, respectively. The establishment of an allowance as of December 31, 2020 was due to the adoption of CECL and as such was not considered at September 30, 2020. This reserve is maintained at a level management believes to be sufficient to absorb losses arising from unfunded loan commitments. The following table details activity in the allowance for credit losses on unfunded commitments is as follows (dollars in thousands): Balance at June 30, 2021 $ 5,737 Provision for credit losses on unfunded commitments 939 Balance at September 30, 2021 $ 6,676 Balance at December 31, 2020 $ 4,697 Provision for credit losses on unfunded commitments 1,979 Balance at September 30, 2021 $ 6,676 Collateral dependent loans are secured by real estate assets, accounts receivable, inventory and equipment. For a collateral dependent loan, the Company’s evaluation process includes a valuation by appraisal or other collateral analysis adjusted for selling costs, when appropriate. This valuation is compared to the remaining outstanding principal balance of the loan. If a loss is determined to be probable, the loss is included in the allowance for credit losses on loans as a specific allocation. The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of September 30, 2021 and December 31, 2020: As of September 30, 2021 Real Estate Business Assets Other Total (Dollars in thousands) Commercial and industrial $ — $ 4,517 $ — $ 4,517 Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 1,343 — — 1,343 Commercial real estate construction and land development 53 — — 53 1-4 family residential (including home equity) 4,104 — — 4,104 Residential construction — — — — Consumer and other 175 — — 175 Total $ 5,675 $ 4,517 $ — $ 10,192 As of December 31, 2020 Real Estate Business Assets Other Total (Dollars in thousands) Commercial and industrial $ — $ 5,157 $ — $ 5,157 Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 425 — — 425 Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) 3,101 — — 3,101 Residential construction — — — — Consumer and other — — — — Total $ 3,526 $ 5,157 $ — $ 8,683 The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans as of September 30, 2021 and December 31, 2020. As of September 30, 2021 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (Dollars in thousands) Commercial and industrial $ 2,179 $ 8,068 $ 10,247 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 11,788 2,841 14,629 Commercial real estate construction and land development 53 — 53 1-4 family residential (including home equity) 2,667 557 3,224 Residential construction — — — Consumer and other 175 41 216 Total loans $ 16,862 $ 11,507 $ 28,369 As of December 31, 2020 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (Dollars in thousands) Commercial and industrial $ 2,097 $ 8,650 $ 10,747 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 7,487 2,594 10,081 Commercial real estate construction and land development 2,958 53 3,011 1-4 family residential (including home equity) 2,652 1,873 4,525 Residential construction — — — Consumer and other — 529 529 Total loans $ 15,194 $ 13,699 $ 28,893 Troubled Debt Restructurings As of September 30, 2021 and December 31, 2020, the Company had a recorded investment in troubled debt restructurings of $21.4 million and $25.8 million, respectively. The Company allocated $2.3 million and $3.3 million of specific reserves for troubled debt restructurings at September 30, 2021 and December 31, 2020, respectively. The following table presents information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 2020 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 4 $ 300 $ 300 5 $ 1,133 $ 1,133 Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) — — — 3 1,983 1,983 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) — — — 1 1,081 1,081 Residential construction — — — — — — Consumer and other — — — — — — Total 4 $ 300 $ 300 9 $ 4,197 $ 4,197 Nine Months Ended September 30, 2021 2020 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 7 $ 1,105 $ 1,105 16 $ 3,137 $ 3,137 Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) 1 545 545 3 1,983 1,983 Commercial real estate construction and land development — — — 1 830 830 1-4 family residential (including home equity) — — — 4 2,021 2,021 Residential construction — — — — — — Consumer and other — — — 1 30 30 Total 8 $ 1,650 $ 1,650 25 $ 8,001 $ 8,001 Troubled debt restructurings resulted in $21 thousand of charge-offs during the nine months ended September 30, 2021 and $632 thousand of charge-offs during the nine months ended September 30, 2020. As of September 30, 2021, three loans for $247 thousand were modified under a troubled debt restructuring during the previous twelve-month period that subsequently defaulted during the nine months ended September 30, 2021. As of September 30, 2020, there was one loan for $22 thousand modified under a troubled debt restructuring during the previous twelve-month period that subsequently defaulted during the nine months ended September 30, 2020. Default is determined at 90 or more days past due. The modifications primarily related to extending the amortization periods of the loans. The Company did not grant principal reductions on any restructured loans. There were no commitments to lend additional amounts to troubled debt restructured loans for the three and nine months ended September 30, 2021 and 2020. During the nine months ended September 30, 2021, the Company added $1.7 million in new troubled debt restructurings, of which $1.6 million was still outstanding on September 30, 2021. During the nine months ended September 30, 2020, the Company added $8.0 million in new troubled debt restructurings, of which $6.7 million was still outstanding on September 30, 2020. The Company granted principal and interest deferrals on outstanding loan balances to customers affected by the COVID-19 pandemic. Additionally, upon request and after meeting certain conditions, borrowers could be granted additional payment deferrals subsequent to the first deferral. In addition to the short-term modification program implemented by the Company, Section 4013 of the CARES Act and bank regulatory interagency guidance gave entities temporary relief from the accounting and disclosure requirements for troubled debt restructurings (“TDR”) indicating that a lender could conclude that the modifications are not a TDR if the borrower was less than 30 days past due as of December 31, 2019. As of September 30, 2021, 37 loans with outstanding loan balances of $37.4 million remained on deferral. If the impact of COVID-19 persists, borrower operations do not improve or if other negative events occur, such modified loans could transition to potential problem loans or into problem loans. The following table presents information regarding loans with principal and/or interest deferrals as of September 30, 2021 associated with loan modifications related to COVID-19: Inside of Deferral Period Outside of Deferral Period Total Loans That Have Had a Deferral Outstanding Loan Percent Loan Percent Loan Percent (Dollars in thousands) Commercial and industrial $ 728,897 $ 979 2.6 % $ 78,871 10.1 % $ 79,850 9.7 % Paycheck Protection Program (PPP) 290,028 — — % — — % — — % Real estate: Commercial real estate (including multi-family residential) 2,073,521 32,780 87.6 % 587,195 75.0 % 619,975 75.7 % Commercial real estate construction and land development 382,610 1,987 5.3 % 40,294 5.2 % 42,281 5.1 % 1-4 family residential (including home equity) 683,919 1,688 4.5 % 73,530 9.4 % 75,218 9.2 % Residential construction 104,638 — — % 1,321 0.2 % 1,321 0.2 % Consumer and other 25,856 — — % 522 0.1 % 522 0.1 % Total loans $ 4,289,469 $ 37,434 100.0 % $ 781,733 100.0 % $ 819,167 100.0 % |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES Lease payments over the expected term are discounted using the Company’s incremental borrowing rate for borrowings of similar terms. Generally, the Company cannot be reasonably certain about whether or not it will renew a lease until such time as the lease is within the last two years of the existing lease term. When the Company is reasonably certain that a renewal option will be exercised, it measures/remeasures the right-of-use asset and related lease liability using the lease payments specified for the renewal period or, if such amounts are unspecified, the Company generally assumes an increase (evaluated on a case-by-case basis in light of prevailing market conditions) in the lease payment over the final period of the existing lease term. There were no sale and leaseback transactions, leveraged leases or lease transactions with related parties during the three and nine months ended September 30, 2021 and 2020. At September 30, 2021, the Company had 16 leases consisting of branch locations and office space. On the September 30, 2021 balance sheet, the right-of-use asset is classified within premises and equipment and the lease liability is included in other liabilities. The Company also owns certain office facilities which it leases to outside parties under operating lessor leases; however, such leases are not significant. All leases were classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. Certain leases include options to renew, with renewal terms that can extend the lease term from one Supplemental lease information at the dates indicated is as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 10,901 $ 11,610 Operating lease liability classified as other liabilities $ 11,091 $ 11,850 Weighted average lease term, in years 5.10 5.56 Weighted average discount rate 2.63 % 2.86 % Lease costs for the dates indicated is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Dollars in thousands) Income Statement: Operating lease cost $ 884 $ 839 $ 2,617 $ 2,422 Short-term lease cost 3 14 34 64 Sublease income (19) (18) (55) (48) Total operating lease costs $ 868 $ 835 $ 2,596 $ 2,438 A maturity analysis of the Company’s lease liabilities is as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Lease payments due: Within one year $ 3,173 $ 3,068 After one but within two years 2,388 2,664 After two but within three years 2,097 2,056 After three but within four years 1,400 1,591 After four but within five years 1,020 1,057 After five years 1,759 2,355 Total lease payments 11,837 12,791 Less: discount on cash flows 746 941 Total lease liability $ 11,091 $ 11,850 |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value represents the exchange price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price,” in the principal or most advantageous market available to the entity in an orderly transaction between market participants on the measurement date. Fair Value Hierarchy Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. • Level 2—Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3—Significant unobservable inputs that reflect management’s judgment and assumptions that market participants would use in pricing an asset or liability that are supported by little or no market activity. The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of September 30, 2021 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 903,761 $ 903,761 $ — $ — $ 903,761 Available for sale securities 1,211,476 — 1,211,476 — 1,211,476 Loans held for investment, net of allowance 4,238,978 — — 4,236,403 4,236,403 Accrued interest receivable 33,523 25 6,055 27,443 33,523 Financial liabilities Deposits $ 5,666,878 $ — $ 5,674,027 $ — $ 5,674,027 Accrued interest payable 3,296 — 3,296 — 3,296 Borrowed funds 139,954 — 126,333 — 126,333 Subordinated debt 108,715 — 112,898 — 112,898 As of December 31, 2020 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 422,766 $ 422,766 $ — $ — $ 422,766 Available for sale securities 772,890 — 772,890 — 772,890 Loans held for investment, net of allowance 4,438,591 — — 4,431,816 4,431,816 Accrued interest receivable 40,053 2 5,531 34,520 40,053 Financial liabilities Deposits $ 4,988,482 $ — $ 5,003,594 $ — $ 5,003,594 Interest rate swap 1,252 — 1,252 — 1,252 Accrued interest payable 2,701 — 2,701 — 2,701 Borrowed funds 155,515 — 144,629 — 144,629 Subordinated debt 108,322 — 109,832 — 109,832 The following tables present fair values for assets and liabilities measured at fair value on a recurring basis. There were no liabilities measured at fair value on a recurring basis as of September 30, 2021. September 30, 2021 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 131,993 $ — $ 131,993 Municipal securities — 482,272 — 482,272 Agency mortgage-backed pass-through securities — 249,847 — 249,847 Agency collateralized mortgage obligations — 230,747 — 230,747 Corporate bonds and other — 116,617 — 116,617 Total available for sale securities $ — $ 1,211,476 $ — $ 1,211,476 December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 26,199 $ — $ 26,199 Municipal securities — 427,605 — 427,605 Agency mortgage-backed pass-through securities — 171,289 — 171,289 Agency collateralized mortgage obligations — 84,370 — 84,370 Corporate bonds and other — 63,427 — 63,427 Total available for sale securities $ — $ 772,890 $ — $ 772,890 Financial liabilities Interest rate swap $ — $ 1,252 $ — $ 1,252 There were no transfers between levels during the nine months ended September 30, 2021 or 2020. Assets measured at fair value on a nonrecurring basis are summarized in the table below. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020. As of September 30, 2021 Level 1 Level 2 Level 3 (Dollars in thousands) Loans: Commercial and industrial $ — $ — $ 6,230 Commercial real estate (including multi- family residential) — — 41,891 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — 3,801 Residential construction — — 532 Consumer and other — — 453 Other real estate owned — — 1,397 $ — $ — $ 54,304 As of December 31, 2020 Level 1 Level 2 Level 3 (Dollars in thousands) Loans: Commercial and industrial $ — $ — $ 8,650 Commercial real estate (including multi- family residential) — — 2,594 Commercial real estate construction and land development — — 53 1-4 family residential (including home equity) — — 1,873 Residential construction — — — Consumer and other — — 529 Other real estate owned — — 9,196 $ — $ — $ 22,895 Individually Evaluated Loans with Specific Allocation of Allowance for Credit Losses on Loans A loan is considered to be a collateral dependent loan when, based on current information and events, the Company expects repayment of the financial assets to be provided substantially through the operation or sale of the collateral and the Company has determined that the borrower is experiencing financial difficulty as of the measurement date. The allowance for credit losses on loans is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan’s collateral. For real estate loans, fair value of the loan’s collateral is generally determined by third-party appraisals or internal evaluations, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third-party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 10% of the appraised value. For non-real estate loans, fair value of the loan’s collateral may be determined using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business. Other Real Estate Owned Other real estate owned is comprised of real estate acquired in partial or full satisfaction of loans. Other real estate owned is recorded at its estimated fair value less estimated selling and closing costs at the date of transfer. Any excess of the related loan balance over the fair value less expected selling costs is charged to the allowance. Subsequent declines in fair value are reported as adjustments to the carrying amount and are recorded against earnings. The fair value of other real estate owned is determined using third-party appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace. For this asset class, the actual valuation methods (income, sales comparable or cost) vary based on the status of the project or property. For example, land is generally based on the sales comparable method while construction is based on the income and/or sales comparable methods. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically range from 5% to 10% of the appraised value. |
DEPOSITS
DEPOSITS | 9 Months Ended |
Sep. 30, 2021 | |
Deposit Liabilities [Abstract] | |
DEPOSITS | DEPOSITSTime deposits that met or exceeded the Federal Deposit Insurance Corporation insurance limit of $250 thousand at September 30, 2021 and December 31, 2020 were $783.3 million and $726.8 million, respectively. Scheduled maturities of time deposits for the next five years are as follows (dollars in thousands): Within one year $ 1,017,921 After one but within two years 242,059 After two but within three years 61,317 After three but within four years 34,594 After four but within five years 25,123 Total $ 1,381,014 The Company had $303.7 million and $453.8 million of brokered deposits as of September 30, 2021 and December 31, 2020, respectively. There were no concentrations of deposits with any one depositor at September 30, 2021 and December 31, 2020. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS The Company entered into a financial derivative in 2020. Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. Derivatives designated as cash flow hedges For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. The Company uses forward cash flow hedges in an effort to manage future interest rate exposure on liabilities. The hedging strategy converts the variable interest rate on liabilities to a fixed interest rate and is used in an effort to protect the Company from floating interest rate variability. During the quarter ended June 30, 2021, the Company terminated the interest rate swap designated as a cash flow hedge prior to its maturity date resulting in a net gain of approximately $225 thousand recognized into other noninterest expenses as the forecasted transaction will not occur. The Company did not have any derivatives designated as cash flow hedges outstanding at September 30, 2021. The effects of the Company’s cash flow hedge relationship on the statement of comprehensive income during the three and nine months ended September 30, 2021 and 2020 were as follows, before tax: Amount of Gain (Loss) Recognized in Other Comprehensive (Loss) Income Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Dollars in thousands) Liability derivatives Interest rate swaps $ — $ 80 $ 1,252 $ (1,495) |
BORROWINGS AND BORROWING CAPACI
BORROWINGS AND BORROWING CAPACITY | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
BORROWINGS AND BORROWING CAPACITY | BORROWINGS AND BORROWING CAPACITYThe Company has an available line of credit with the Federal Home Loan Bank (“FHLB”) of Dallas, which allows the Company to borrow on a collateralized basis. FHLB advances are used to manage liquidity as needed. The advances are secured by a blanket lien on certain loans. Maturing advances are replaced by drawing on available cash, making additional borrowings or through increased customer deposits. At September 30, 2021, the Company had a total borrowing capacity of $1.91 billion, of which $1.15 billion was available and $761.8 million was outstanding. FHLB advances of $140.0 million were outstanding at September 30, 2021, at a weighted average interest rate of 1.19%. Letters of credit were $621.8 million at September 30, 2021, of which $70.7 million will expire during the remaining months of 2021, $423.3 million will expire in 2022, $60.9 million will expire in 2023, $55.9 million will expire in 2024 and $11.0 million will expire in 2025. On December 28, 2018, the Company amended its revolving credit agreement to increase the maximum commitment to advance funds to$45.0 million which reduces annually by $7.5 million beginning in December 2020 and on each December 22nd each year thereafter. The Company is required to repay any outstanding balance in excess of the then-current maximum commitment amount. The revised agreement will mature in December 2025 and is secured by 100% of the capital stock of the Bank. At September 30, 2021, the balance on the revolving credit agreement was zero. The credit agreement contains certain restrictive covenants. At September 30, 2021, the Company believes it was in compliance with all such debt covenants. The interest rate on the debt is the Prime Rate minus 25 basis points, or 3.00% at September 30, 2021, and is paid quarterly. |
SUBORDINATED DEBT
SUBORDINATED DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED DEBT | SUBORDINATED DEBT Junior Subordinated Debentures On January 1, 2015, the Company acquired F&M Bancshares, Inc. and assumed Farmers & Merchants Capital Trust II and Farmers & Merchants Capital Trust III. Each of these trusts is a capital or statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s junior subordinated debentures. The preferred trust securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the junior subordinated debentures held by the trust. The common securities of each trust are wholly owned by the Company. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related junior subordinated debentures. The debentures, which are the only assets of each trust, are subordinate and junior in right of payment to all of the Company’s present and future senior indebtedness. The Company has fully and unconditionally guaranteed each trust’s obligations under the trust securities issued by such trust to the extent not paid or made by such trust, provided such trust has funds available for such obligations. The junior subordinated debentures are included in Tier 1 capital under current regulatory guidelines and interpretations. Under the provisions of each issue of the debentures, the Company has the right to defer payment of interest on the debentures at any time, or from time to time, for periods not exceeding five years If interest payments on either issue of the debentures are deferred, the distributions on the applicable trust preferred securities and common securities will also be deferred. The Company assumed the junior subordinated debentures with an aggregate original principal amount of $11.3 million and a current carrying value at September 30, 2021 of $9.7 million. At acquisition, the Company recorded a discount of $2.5 million on the debentures. The difference between the carrying value and contractual balance will be recognized as a yield adjustment over the remaining term for the debentures. At September 30, 2021, the Company had $11.3 million outstanding in junior subordinated debentures issued to the Company’s unconsolidated subsidiary trusts. The junior subordinated debentures are included in tier 1 capital under current regulatory guidelines and interpretations. A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2021 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of September 30, 2021 was 0.1227%. (2) All debentures are currently callable. Subordinated Notes In December 2017, the Bank completed the issuance, through a private placement, of $40.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Bank Notes") due December 15, 2027. The Bank Notes were issued at a price equal to 100% of the principal amount, resulting in net proceeds to the Bank of $39.4 million. The Bank Notes bear a fixed interest rate of 5.25% per annum until (but excluding) December 15, 2022, payable semi-annually in arrears. From December 15, 2022, the Bank Notes will bear a floating rate of interest equal to 3-Month LIBOR + 3.03% until the Bank Notes mature on December 15, 2027, or such earlier redemption date, payable quarterly in arrears. The Bank Notes will be redeemable by the Bank, in whole or in part, on or after December 15, 2022 or, in whole but not in part, upon the occurrence of certain specified tax events, capital events or investment company events. Any redemption will be at a redemption price equal to 100% of the principal amount of Bank Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Bank Notes are not subject to redemption at the option of the holders. In September 2019, the Company completed the issuance of $60.0 million aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes (the "Company Notes") due October 1, 2029. The Company Notes were issued at a price equal to 100% of the principal amount, resulting in net proceeds to the Company of $58.6 million. The Company used the net proceeds from the offering to support its growth and for general corporate purposes. The Company Notes bear a fixed interest rate of 4.70% per annum until (but excluding) October 1, 2024, payable semi-annually in arrears on April 1 and October 1, commencing on April 1, 2020. Thereafter, from October 1, 2024 through the maturity date, October 1, 2029, or earlier redemption date, the Company Notes will bear interest at a floating rate equal to the then-current three-month LIBOR, plus 313 basis points (3.13%) for each quarterly interest period (subject to certain provisions set forth under “Description of the Notes—Interest Rates and Interest Payment Dates” included in the Prospectus Supplement), payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year. Any redemption will be at a redemption price equal to 100% of the principal amount of Company Notes being redeemed, plus accrued and unpaid interest, and will be subject to, and require, prior regulatory approval. The Company Notes are not subject to redemption at the option of the holders. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The amount of the Company’s federal and state income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible items. For the three and nine months ended September 30, 2021, income tax expense was $4.6 million and $13.5 million, respectively, compared with $3.7 million and $6.6 million, respectively, for the three and nine months ended September 30, 2020. The effective income tax rate for the three and nine months ended September 30, 2021 was 19.5% and 18.4%, respectively, compared to 18.5% and 18.2%, respectively, for the three and nine months ended September 30, 2020. Interest and penalties related to tax positions are recognized in the period in which they begin accruing or when the entity claims the position that does not meet the minimum statutory thresholds. The Company does not have any uncertain tax positions and does not have any interest or penalties recorded in the income statement for the three and nine months ended September 30, 2021. The Company is no longer subject to examination by the U.S. Federal Tax Jurisdiction for the years prior to 2017. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION At September 30, 2021, the Company had two stock-based employee compensation plans with awards outstanding. In connection with the acquisition of Post Oak Bancshares, Inc. on October 1, 2018, the Company assumed the Post Oak Bancshares, Inc. Stock Option Plan, under which no additional awards will be issued. During 2019, the Company’s Board of Directors and shareholders approved the 2019 Amended and Restated Stock Awards and Incentive Plan (the “Plan”) covering certain awards of stock-based compensation to key employees and directors of the Company. Under the Plan, the Company is authorized to issue a maximum aggregate of 3,200,000 shares of stock, up to 1,800,000 of which may be issued through incentive stock options. The Company accounts for stock based employee compensation plans using the fair value-based method of accounting. The Company recognized total stock based compensation expense of $1.0 million and $2.9 million for the three and nine months ended September 30, 2021, respectively, and $863 thousand and $2.6 million for the three and nine months ended September 30, 2020, respectively. Stock Options Options to purchase a total of 1,309,231 shares of Company stock have been granted as of September 30, 2021. Options are exercisable for up to 10 years from the date of the grant and, dependent on the terms of the applicable award agreement generally vest four years after the date of grant. The fair value of stock options granted is estimated at the date of grant using the Black-Scholes option-pricing model. A summary of the activity in the stock option plans during the nine months ended September 30, 2021 is set forth below: Number of Weighted Weighted Aggregate (Shares in thousands) (In years) (Dollars in thousands) Options outstanding, January 1, 2021 469 $ 21.08 3.43 $ 6,118 Options granted — — Options exercised (109) 18.48 Options forfeited (1) 37.55 Options outstanding, September 30, 2021 359 $ 21.77 2.96 $ 5,865 Options vested and exercisable, September 30, 2021 361 $ 21.61 2.96 $ 5,975 As of September 30, 2021, there was $12 thousand of total unrecognized compensation cost related to nonvested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 0.42 years. Restricted Stock Awards During the nine months ended September 30, 2021, the Company issued 80,649 of restricted stock. The shares of restricted stock generally vest over a period of four years and are considered outstanding at the date of issuance. The Company accounts for shares of restricted stock by recording the fair value of the grant on the award date as compensation expense over the vesting period. A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2021 is as follows: Number of Weighted (Shares in thousands) Nonvested share awards outstanding, January 1, 2021 158 $ 30.78 Share awards granted 81 38.65 Share awards vested (49) 29.28 Unvested share awards forfeited or cancelled (8) 37.04 Nonvested share awards outstanding, September 30, 2021 182 $ 34.43 As of September 30, 2021, there was $5.7 million of total unrecognized compensation cost related to the restricted stock awards which is expected to be recognized over a weighted-average period of 2.32 years. Performance Share Units (“PSUs”) PSUs are earned subject to certain performance goals being met after the two-year performance period and will be settled in shares of Allegiance Common Stock following a one-year service period. The Company awarded 56,255 and 46,243 PSUs during the nine months ended September 30, 2021 and 2020, respectively. The grant date fair value of the PSUs is based on the probable outcome of the applicable performance conditions and is calculated at target based on a combination of the closing market price of our common stock on the grant date and a Monte Carlo simulated fair value in accordance with ASC 718. At September 30, 2021, there was $2.6 million of unrecognized compensation expense related to the PSUs, which is expected to be recognized over a weighted-average period of 2.05 years. |
OFF-BALANCE SHEET ARRANGEMENTS,
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES | OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES In the normal course of business, the Company enters into various transactions, which, in accordance with accounting principles generally accepted in the United States, are not included in the Company’s consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve to varying degrees elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company uses the same credit policies in making commitments and conditional obligations as it does for on balance sheet instruments. The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2021 December 31, 2020 Fixed Variable Fixed Variable (Dollars in thousands) Commitments to extend credit $ 1,088,080 $ 540,650 $ 761,938 $ 480,067 Standby letters of credit 9,226 13,537 9,252 8,003 Total $ 1,097,306 $ 554,187 $ 771,190 $ 488,070 Commitments to extend credit include lines of credit as well as commitments to make new loans. Commitments to make loans are generally made for an approval period of 120 days or fewer. As of September 30, 2021, the funded fixed rate loan commitments had interest rates ranging from 1.00% to 13.49% with a weighted average maturity and rate of 3.72 years and 4.56% , respectively. As of December 31, 2020, the funded fixed rate loan commitments had interest rates ranging from 1.20% to 18.00% with a weighted average maturity and rate of 3.53 years and 5.13% , respectively. Litigation From time to time, the Company is subject to claims and litigation arising in the ordinary course of business. In the opinion of management, the Company is not party to any legal proceedings the resolution of which it believes would have a material adverse effect on the Company’s business, prospects, financial condition, liquidity, results of operation, cash flows or capital levels. However, one or more unfavorable outcomes in any claim or litigation against the Company could have a material adverse effect for the period in which such claim or litigation is resolved. In addition, regardless of their merits or their ultimate outcomes, such matters are costly, divert management’s attention and may materially adversely affect the Company’s reputation, even if resolved in its favor. The Company intends to defend itself vigorously against any future claims or litigation. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Capital Matters [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERS The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Capital adequacy guidelines, and for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities and certain off balance sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Failure to meet minimum capital requirements can cause regulators to initiate actions that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. The final rules implementing Basel Committee on Banking Supervision's capital guideline for U.S. Banks (Basel III Rules) were fully phased in when the capital conservation buffer reached 2.5%. Management believes as of September 30, 2021 and December 31, 2020, the Company and the Bank met all capital adequacy requirements to which they were then subject. Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If less than well capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of September 30, 2021 and December 31, 2020: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well-Capitalized Under Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of September 30, 2021 Total Capital (to risk weighted assets) $ 700,013 16.13 % $ 347,221 8.00 % $ 455,728 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 537,008 12.37 % 195,312 4.50 % 303,819 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 546,732 12.60 % 260,416 6.00 % 368,923 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 546,732 8.76 % 249,563 4.00 % 249,563 4.00 % N/A N/A As of December 31, 2020 Total Capital (to risk weighted assets) $ 642,155 15.71 % $ 327,084 8.00 % $ 429,298 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 482,643 11.80 % 183,985 4.50 % 286,199 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 492,281 12.04 % 245,313 6.00 % 347,527 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 492,281 8.51 % 231,518 4.00 % 231,518 4.00 % N/A N/A ALLEGIANCE BANK As of September 30, 2021 Total Capital (to risk weighted assets) $ 649,294 14.98 % $ 346,812 8.00 % $ 455,191 10.50 % $ 433,515 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 555,225 12.81 % 195,082 4.50 % 303,461 7.00 % 281,785 6.50 % Tier 1 Capital (to risk weighted assets) 555,225 12.81 % 260,109 6.00 % 368,488 8.50 % 346,812 8.00 % Tier 1 Capital (to average tangible assets) 555,225 8.91 % 249,237 4.00 % 249,237 4.00 % 311,547 5.00 % As of December 31, 2020 Total Capital (to risk weighted assets) $ 635,223 15.55 % $ 326,804 8.00 % $ 428,931 10.50 % $ 408,506 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 183,828 4.50 % 285,954 7.00 % 265,529 6.50 % Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 245,103 6.00 % 347,230 8.50 % 326,804 8.00 % Tier 1 Capital (to average tangible assets) 544,331 9.41 % 231,334 4.00 % 231,334 4.00 % 289,167 5.00 % |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHAREDiluted earnings per common share is computed using the weighted-average number of common shares determined for the basic earnings per common share computation plus the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock using the treasury stock method. Outstanding stock options and PSUs issued by the Company represent the only dilutive effect reflected in diluted weighted average shares. Restricted shares are considered outstanding at the date of grant, accounted for as participating securities and included in basic and diluted weighted average common shares outstanding. Performance share units that vest based on the Company’s performance and service conditions that have not been achieved as of the end of the period are not included in basic and diluted weighted average common shares outstanding. Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Amount Per Share Amount Per Share Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to shareholders $ 19,060 $ 16,170 $ 59,995 $ 29,593 Basic: Weighted average shares outstanding 20,221 $ 0.94 20,439 $ 0.79 20,188 $ 2.97 20,421 $ 1.45 Diluted: Add incremental shares for: Dilutive effect of stock option exercises and performance share units 190 93 181 130 Total 20,411 $ 0.93 20,532 $ 0.79 20,369 $ 2.95 20,551 $ 1.44 There were 22,800 antidilutive shares as of September 30, 2021. Stock options for 71,990 shares were not considered in computing diluted earnings per common share as of September 30, 2020 as they were antidilutive. |
NATURE OF OPERATIONS AND SUMM_2
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation -The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and in accordance with guidance provided by the Securities and Exchange Commission. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis, and all such adjustments are of a normal recurring nature. Transactions between the Company and the Bank have been eliminated. The condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020. Operating results for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. |
New Accounting Standards | New Accounting Standards Adoption of New Accounting Standards ASU 2021-01, “Reference Rate Reform (Topic 848): Scope.” ASU 2021-01 clarifies that certain optional expedients and exceptions in ASC 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. ASU 2021-01 also amends the expedients and exceptions in ASC 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. ASU 2021-01 was effective upon issuance and generally can be applied through December 31, 2022. The adoption of ASU 2021-01 did not significantly impact the Company's financial statements. ASU 2020-09, “Debt (Topic 470): Amendments to SEC Paragraphs Pursuant to SEC Release No. 33-10762.” ASU 2020-09 amends the ASC to reflect the issuance of an SEC rule related to financial disclosure requirements for subsidiary issuers and guarantors of registered debt securities and affiliates whose securities are pledged as collateral for registered securities. ASU 2020-09 became effective for the Company on January 4, 2021, concurrent with the effective date of the SEC release, and did not have a significant impact on the Company's financial statements. ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables - Nonrefundable Fees and Other Costs.” ASU 2020-08 clarifies the accounting for the amortization of purchase premiums for callable debt securities with multiple call dates. ASU 2020-08 became effective for the Company on January 1, 2021 and did not have a significant impact on the Company's financial statements. ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (“ASU 2019-12”), that removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 introduces the following new guidance: (i) guidance to evaluate whether a step-up in tax basis of goodwill relates to a business combination in which book goodwill was recognized or a separate transaction and (ii) a policy election to not allocate consolidated income taxes when a member of a consolidated tax return is not subject to income tax. Additionally, ASU 2019-12 changes the following current guidance: (i) making an intraperiod allocation, if there is a loss in continuing operations and gains outside of continuing operations, (ii) determining when a deferred tax liability is recognized after an investor in a foreign entity transitions to or from the equity method of accounting, (iii) accounting for tax law changes and year-to-date losses in interim periods, and (iv) determining how to apply the income tax guidance to franchise taxes that are partially based on income. The Company adopted ASU 2019-12 on January 1, 2021, which did not have a material impact on the Company’s results of operations, financial position or disclosures. ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC Topic 326”) , was issued by the FASB in June 2016 along with subsequent amendments thereto, which introduce the current expected credit losses (“CECL”) methodology. The measurement of expected credit losses under the CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for loans, held-to-maturity debt securities measured at amortized cost. ASC Topic 326 also applies to off-balance sheet credit exposures. This methodology replaces the multiple existing impairment methods in current guidance, which generally require that a loss be incurred before it is recognized. Within the life cycle of a loan or other financial asset, this new guidance will generally result in the earlier recognition of the provision for credit losses and the related allowance for credit losses than previous practice. For available for sale debt securities that the Company intends to hold and where fair value is less than cost, credit-related impairment, if any, will be recognized through an allowance for credit losses and adjusted each period for changes in credit risk. CECL became effective for the Company on January 1, 2020; however, on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed in to law by the President of the United States and allowed the option to temporarily defer or suspend the adoption of ASC Topic 326. The Company elected to temporarily defer the adoption of CECL due to the uncertainty of the impact of COVID-19 and the volatility of crude oil prices, which can be impactful to the Houston market. During the deferral, the Company calculated and recorded its provision for loan losses under the incurred loss model that existed prior to ASC Topic 326. The Company adopted the new standard as of January 1, 2020, during the fourth quarter of 2020, using the modified retrospective method such that prior period amounts were not adjusted, but were reported in accordance with previously applicable generally accepted accounting principles and a cumulative effect adjustment to the opening balance of retained earnings was recognized. Upon adoption of ASC Topic 326, the Company recognized an increase in allowance for credit losses on loans of $3.1 million and the establishment of an allowance for credit losses for off-balance sheet exposure of $3.9 million and a corresponding decrease in retained earnings of $5.5 million, after-tax. The Company adopted ASC Topic 326 using the prospective transition approach for purchased credit deteriorated (“PCD”) loans, which did not require re-evaluation of whether loans previously classified as purchased credit impaired (“PCI”) loans met the criteria of PCD assets at the date of adoption. The Company recognized an increase in the allowance for credit losses for loans of $2.1 million, due to the reclassification of PCD discounts previously classified as PCI with a corresponding adjustment to the gross carrying amount of the loans. The remaining noncredit discount was accreted into interest income at the effective interest rate as of January 1, 2020. See Note 4 “Loans and Allowance for Credit Losses” for additional information. The following table illustrates the impact of adopting ASC Topic 326: As of January 1, 2020 As Reported Under ASC Topic 326 Pre-ASC Topic 326 Adoption Impact of ASC Topic 326 Adoption (Dollars in thousands) Assets: Allowance for credit losses on loans: Commercial and industrial $ 15,840 $ 8,818 $ 7,022 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 6,007 11,170 (5,163) Commercial real estate construction and land development 6,051 4,421 1,630 1-4 family residential (including home equity) 5,452 3,852 1,600 Residential construction 1,056 1,057 (1) Consumer and other 257 120 137 Allowance for credit losses on loans $ 34,663 $ 29,438 $ 5,225 Liabilities: Allowance for credit losses on unfunded commitments $ 3,866 $ — $ 3,866 ASC Topic 326 also requires expected credit losses on available for sale (“AFS”) debt securities to be recorded as an allowance for credit losses. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may expect zero credit losses. The zero-loss expectation generally applies to the Company’s securities and no allowance for credit losses were recorded on its AFS securities portfolio at transition. See Note 3 “Securities” for additional information. Newly Issued But Not Yet Effective Accounting Standards ASU 2020-04, "Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting - Accounting Standards Codification (“ASC”) Topic 848." ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. The guidance allows for companies to: (i) account for certain contract modifications as a continuation of the existing contract without additional analysis; (ii) continue hedge accounting when certain critical terms of a hedging relationship change and assess effectiveness in ways that disregard certain potential sources of ineffectiveness; and (iii) make a one-time sale and/or transfer of certain debt securities from held-to-maturity to available for sale or trading. This ASU is available for adoption effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within ASU 2020-04, the amendments must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made at any time after March 12, 2020. The Company anticipates this ASU will simplify any modifications it executes between the selected start date (yet to be determined) and December 31, 2022 that are directly related to the LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees and costs. ASU 2020-04 is not expected to have a significant impact on the Company’s financial statements. |
NATURE OF OPERATIONS AND SUMM_3
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Impact of Adopting ASC Topic 326 | The following table illustrates the impact of adopting ASC Topic 326: As of January 1, 2020 As Reported Under ASC Topic 326 Pre-ASC Topic 326 Adoption Impact of ASC Topic 326 Adoption (Dollars in thousands) Assets: Allowance for credit losses on loans: Commercial and industrial $ 15,840 $ 8,818 $ 7,022 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 6,007 11,170 (5,163) Commercial real estate construction and land development 6,051 4,421 1,630 1-4 family residential (including home equity) 5,452 3,852 1,600 Residential construction 1,056 1,057 (1) Consumer and other 257 120 137 Allowance for credit losses on loans $ 34,663 $ 29,438 $ 5,225 Liabilities: Allowance for credit losses on unfunded commitments $ 3,866 $ — $ 3,866 |
GOODWILL AND CORE DEPOSIT INT_2
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Changes in the carrying amount of the Company’s goodwill and core deposit intangible assets were as follows: Goodwill Core Deposit (Dollars in thousands) Balance as of December 31, 2019 $ 223,642 $ 21,876 Amortization — (3,922) Balance as of December 31, 2020 223,642 17,954 Amortization — (2,472) Balance as of September 30, 2021 $ 223,642 $ 15,482 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated aggregate future amortization expense for core deposit intangible assets remaining as of September 30, 2021 is as follows (dollars in thousands): Remaining 2021 $ 824 2022 3,003 2023 2,323 2024 2,188 2025 2,061 Thereafter 5,083 Total $ 15,482 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | The amortized cost and fair value of investment securities were as follows: September 30, 2021 Amortized Gross Gross Fair (Dollars in thousands) Available for Sale U.S. government and agency securities $ 132,434 $ 487 $ (928) $ 131,993 Municipal securities 455,816 28,142 (1,686) 482,272 Agency mortgage-backed pass-through securities 250,913 2,585 (3,651) 249,847 Agency collateralized mortgage obligations 230,273 2,585 (2,111) 230,747 Corporate bonds and other 113,598 3,420 (401) 116,617 Total $ 1,183,034 $ 37,219 $ (8,777) $ 1,211,476 December 31, 2020 Amortized Gross Gross Fair (Dollars in thousands) Available for Sale U.S. government and agency securities $ 25,545 $ 654 $ — $ 26,199 Municipal securities 392,586 35,079 (60) 427,605 Agency mortgage-backed pass-through securities 167,606 3,829 (146) 171,289 Agency collateralized mortgage obligations 80,182 4,263 (75) 84,370 Corporate bonds and other 62,124 1,352 (49) 63,427 Total $ 728,043 $ 45,177 $ (330) $ 772,890 |
Investments Classified by Contractual Maturity Date | The amortized cost and fair value of investment securities at September 30, 2021, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations at any time with or without call or prepayment penalties. Amortized Fair (Dollars in thousands) Due in one year or less $ 3,879 $ 3,939 Due after one year through five years 13,365 14,012 Due after five years through ten years 136,698 141,890 Due after ten years 547,906 571,041 Subtotal 701,848 730,882 Agency mortgage-backed pass-through securities and collateralized mortgage obligations 481,186 480,594 Total $ 1,183,034 $ 1,211,476 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | Securities with unrealized losses segregated by length of time such securities have been in a continuous loss position are as follows: September 30, 2021 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (Dollars in thousands) Available for Sale U.S. government and agency securities $ 98,257 $ (928) $ — $ — $ 98,257 $ (928) Municipal securities 73,698 (1,380) 8,513 (306) 82,211 (1,686) Agency mortgage-backed pass-through securities 121,593 (3,450) 7,958 (201) 129,551 (3,651) Agency collateralized mortgage obligations 117,355 (1,977) 10,402 (134) 127,757 (2,111) Corporate bonds and other 25,430 (401) — — 25,430 (401) Total $ 436,333 $ (8,136) $ 26,873 $ (641) $ 463,206 $ (8,777) December 31, 2020 Less than 12 Months More than 12 Months Total Estimated Unrealized Estimated Unrealized Estimated Unrealized (Dollars in thousands) Available for Sale Municipal securities $ 8,844 $ (60) $ — $ — $ 8,844 $ (60) Agency mortgage-backed pass-through securities 28,659 (146) — — 28,659 (146) Agency collateralized mortgage obligations 11,629 (39) 4,203 (36) 15,832 (75) Corporate bonds and other 15,951 (49) — — 15,951 (49) Total $ 65,083 $ (294) $ 4,203 $ (36) $ 69,286 $ (330) |
LOANS AND ALLOWANCE FOR CREDI_2
LOANS AND ALLOWANCE FOR CREDIT LOSSES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans And Allowance For Credit Losses [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The loan portfolio balances, net of unearned income and fees, consist of various types of loans primarily made to borrowers located within Texas and are classified by major type as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Commercial and industrial $ 728,897 $ 667,079 Paycheck Protection Program (PPP) 290,028 569,901 Real estate: Commercial real estate (including multi-family residential) 2,073,521 1,999,877 Commercial real estate construction and land development 382,610 367,213 1-4 family residential (including home equity) 683,919 737,605 Residential construction 104,638 127,522 Consumer and other 25,856 22,567 Total loans 4,289,469 4,491,764 Allowance for credit losses on loans (50,491) (53,173) Loans, net $ 4,238,978 $ 4,438,591 |
Past Due Financing Receivables | An aging analysis of the recorded investment in past due loans, segregated by class of loans, is included below. The Company defines recorded investment as the outstanding loan balances including net deferred loan fees, and excluding accrued interest receivable of $27.4 million and $34.5 million as of September 30, 2021 and December 31, 2020, respectively, due to immateriality. September 30, 2021 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (Dollars in thousands) Commercial and industrial $ 5,479 $ — $ 5,479 $ 10,247 $ 713,171 $ 728,897 Paycheck Protection Program (PPP) — — — — 290,028 290,028 Real estate: Commercial real estate (including multi-family residential) 11,021 — 11,021 14,629 2,047,871 2,073,521 Commercial real estate construction and land development 653 — 653 53 381,904 382,610 1-4 family residential (including home equity) 2,428 — 2,428 3,224 678,267 683,919 Residential construction 1,191 — 1,191 — 103,447 104,638 Consumer and other 23 — 23 216 25,617 25,856 Total loans $ 20,795 $ — $ 20,795 $ 28,369 $ 4,240,305 $ 4,289,469 December 31, 2020 Loans Past Due and Still Accruing Nonaccrual Current Total 30-89 90 or More Total Past (Dollars in thousands) Commercial and industrial $ 2,486 $ — $ 2,486 $ 10,747 $ 653,846 $ 667,079 Paycheck Protection Program (PPP) — — — — 569,901 569,901 Real estate: Commercial real estate (including multi-family residential) 3,063 — 3,063 10,081 1,986,733 1,999,877 Commercial real estate construction and land development 2,930 — 2,930 3,011 361,272 367,213 1-4 family residential (including home equity) 3,000 — 3,000 4,525 730,080 737,605 Residential construction — — — — 127,522 127,522 Consumer and other 46 — 46 529 21,992 22,567 Total loans $ 11,525 $ — $ 11,525 $ 28,893 $ 4,451,346 $ 4,491,764 |
Impaired Financing Receivables | The following table presents risk ratings by category of loan as of September 30, 2021 and December 31, 2020: As of September 30, 2021 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Revolving Loans Total Total 2021 2020 2019 2018 2017 Prior (Dollars in thousands) Commercial and industrial Pass $ 159,566 $ 94,424 $ 50,231 $ 30,160 $ 12,645 $ 14,707 $ 294,765 $ 206 $ 656,704 $ 562,518 Watch 14,143 4,144 6,446 3,772 724 1,912 6,702 — 37,843 41,026 Special Mention 1,466 313 793 1,344 352 — 2,075 — 6,343 25,010 Substandard 12,059 5,336 1,891 1,768 2,015 842 3,990 — 27,901 38,385 Doubtful 106 — — — — — — — 106 140 Total commercial and industrial loans $ 187,340 $ 104,217 $ 59,361 $ 37,044 $ 15,736 $ 17,461 $ 307,532 $ 206 $ 728,897 $ 667,079 Paycheck Protection Program (PPP) Pass $ 263,719 $ 26,309 $ — $ — $ — $ — $ — $ — $ 290,028 $ 569,901 Watch — — — — — — — — — — Special Mention — — — — — — — — — — Substandard — — — — — — — — — — Doubtful — — — — — — — — — — Total PPP loans $ 263,719 $ 26,309 $ — $ — $ — $ — $ — $ — $ 290,028 $ 569,901 Commercial real estate (including multi-family residential) Pass $ 572,881 $ 505,844 $ 243,402 $ 154,344 $ 151,428 $ 112,031 $ 40,746 $ 488 $ 1,781,164 $ 1,629,023 Watch 30,209 17,837 21,763 13,473 21,973 20,315 1,675 — 127,245 177,651 Special Mention 10,383 9,197 6,379 4,697 5,602 5,302 1,847 — 43,407 68,276 Substandard 17,993 22,948 25,437 15,893 16,944 21,211 1,086 193 121,705 124,927 Doubtful — — — — — — — — — — Total commercial real estate (including multi-family residential) loans $ 631,466 $ 555,826 $ 296,981 $ 188,407 $ 195,947 $ 158,859 $ 45,354 $ 681 $ 2,073,521 $ 1,999,877 Commercial real estate construction and land development Pass $ 163,027 $ 111,059 $ 37,062 $ 15,751 $ 7,625 $ 6,550 $ 13,381 $ — $ 354,455 $ 320,133 Watch 3,498 5,432 2,133 2,789 5,000 — — — 18,852 39,021 Special Mention 4,124 165 1,633 366 865 250 — — 7,403 2,880 Substandard 534 98 472 654 — — 142 — 1,900 5,179 Doubtful — — — — — — — — — — Total commercial real estate construction and land development $ 171,183 $ 116,754 $ 41,300 $ 19,560 $ 13,490 $ 6,800 $ 13,523 $ — $ 382,610 $ 367,213 1-4 family residential (including home equity) Pass $ 152,421 $ 163,538 $ 91,396 $ 58,739 $ 47,500 $ 33,771 $ 77,540 $ 2,212 $ 627,117 $ 670,074 Watch 4,722 5,826 2,843 5,705 4,006 3,220 6,448 2,337 35,107 37,667 Special Mention 2,202 261 972 487 331 2,346 2,497 53 9,149 18,790 Substandard 1,093 1,384 2,791 2,823 1,460 2,780 215 — 12,546 11,074 Doubtful — — — — — — — — — — Total 1-4 family residential (including home equity) $ 160,438 $ 171,009 $ 98,002 $ 67,754 $ 53,297 $ 42,117 $ 86,700 $ 4,602 $ 683,919 $ 737,605 As of September 30, 2021 As of December 31, 2020 Term Loans Amortized Cost Basis by Origination Year Revolving Loans Revolving Loans 2021 2020 2019 2018 2017 Prior Total Total (Dollars in thousands) Residential construction Pass $ 60,063 $ 33,376 $ 1,598 $ 5,208 $ 715 $ — $ — $ — $ 100,960 $ 124,737 Watch 2,033 — 741 — — — — — 2,774 2,785 Special Mention — — — — — — — — — — Substandard 904 — — — — — — — 904 — Doubtful — — — — — — — — — — Total residential construction $ 63,000 $ 33,376 $ 2,339 $ 5,208 $ 715 $ — $ — $ — $ 104,638 $ 127,522 Consumer and other Pass (1) (2,304) 21,098 1,507 983 394 64 3,236 — 24,978 21,359 Watch 110 252 191 — — — 63 — 616 389 Special Mention — — 4 18 — — 16 — 38 270 Substandard — 9 208 7 — — — — 224 549 Doubtful — — — — — — — — — — Total consumer and other $ (2,194) $ 21,359 $ 1,910 $ 1,008 $ 394 $ 64 $ 3,315 $ — $ 25,856 $ 22,567 Total loans Pass 1,369,373 955,648 425,196 265,185 220,307 167,123 429,668 2,906 3,835,406 3,897,745 Watch 54,715 33,491 34,117 25,739 31,703 25,447 14,888 2,337 222,437 298,539 Special Mention 18,175 9,936 9,781 6,912 7,150 7,898 6,435 53 66,340 115,226 Substandard 32,583 29,775 30,799 21,145 20,419 24,833 5,433 193 165,180 180,114 Doubtful 106 — — — — — — — 106 140 Total loans $ 1,474,952 $ 1,028,850 $ 499,893 $ 318,981 $ 279,579 $ 225,301 $ 456,424 $ 5,489 $ 4,289,469 $ 4,491,764 (1) Includes net deferred fees of $10.8 million and $13.9 million on PPP loans as of September 30, 2021 and December 31, 2020, respectively. |
Allowance for Credit Losses on Financing Receivables | The following table presents the activity in the allowance for credit losses on loans by portfolio type for the three and nine months ended September 30, 2021 and 2020: Commercial and industrial Paycheck Protection Program (PPP) Commercial real estate (including multi-family residential) Commercial real estate construction and land development 1-4 family residential (including home equity) Residential construction Consumer and other Total (Dollars in thousands) Allowance for credit losses on loans: Three Months Ended Balance June 30, 2021 $ 18,254 $ — $ 22,909 $ 6,006 $ 1,304 $ 840 $ 273 $ 49,586 Provision for credit losses on loans 565 — 423 822 (381) 34 (108) 1,355 Charge-offs (50) — (457) — — — (20) (527) Recoveries 70 — — — — — 7 77 Net charge-offs 20 — (457) — — — (13) (450) Balance September 30, 2021 $ 18,839 $ — $ 22,875 $ 6,828 $ 923 $ 874 $ 152 $ 50,491 Nine Months Ended Balance December 31, 2020 $ 17,738 $ — $ 23,934 $ 6,939 $ 3,279 $ 870 $ 413 $ 53,173 Recapture of credit losses on loans 1,563 — (602) (111) (2,335) 4 (244) (1,725) Charge-offs (609) — (457) — (21) — (24) (1,111) Recoveries 147 — — — — — 7 154 Net charge-offs (462) — (457) — (21) — (17) (957) Balance September 30, 2021 $ 18,839 $ — $ 22,875 $ 6,828 $ 923 $ 874 $ 152 $ 50,491 Allowance for loan losses: Three Months Ended Balance June 30, 2020 $ 13,367 $ — $ 20,889 $ 3,865 $ 7,542 $ 1,803 $ 176 $ 47,642 Provision for loan losses (126) — 2,453 (379) (349) (471) 219 1,347 Charge-offs (350) — — (71) — — — (421) Recoveries 122 — 8 — — — — 130 Net charge-offs (228) — 8 (71) — — — (291) Balance September 30, 2020 $ 13,013 $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 Nine Months Ended Balance December 31, 2019 $ 8,818 $ — $ 11,170 $ 4,421 $ 3,852 $ 1,057 $ 120 $ 29,438 Provision for loan losses 5,256 — 12,309 1,335 3,556 275 275 23,006 Charge-offs (1,442) — (137) (2,341) (215) — — (4,135) Recoveries 381 — 8 — — — — 389 Net charge-offs (1,061) — (129) (2,341) (215) — — (3,746) Balance September 30, 2020 $ 13,013 $ — $ 23,350 $ 3,415 $ 7,193 $ 1,332 $ 395 $ 48,698 |
Summary of Activity in Allowance for Credit Losses on Unfunded Commitments | The following table details activity in the allowance for credit losses on unfunded commitments is as follows (dollars in thousands): Balance at June 30, 2021 $ 5,737 Provision for credit losses on unfunded commitments 939 Balance at September 30, 2021 $ 6,676 Balance at December 31, 2020 $ 4,697 Provision for credit losses on unfunded commitments 1,979 Balance at September 30, 2021 $ 6,676 |
Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses | The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses as of September 30, 2021 and December 31, 2020: As of September 30, 2021 Real Estate Business Assets Other Total (Dollars in thousands) Commercial and industrial $ — $ 4,517 $ — $ 4,517 Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 1,343 — — 1,343 Commercial real estate construction and land development 53 — — 53 1-4 family residential (including home equity) 4,104 — — 4,104 Residential construction — — — — Consumer and other 175 — — 175 Total $ 5,675 $ 4,517 $ — $ 10,192 As of December 31, 2020 Real Estate Business Assets Other Total (Dollars in thousands) Commercial and industrial $ — $ 5,157 $ — $ 5,157 Paycheck Protection Program (PPP) — — — — Real estate: Commercial real estate (including multi-family residential) 425 — — 425 Commercial real estate construction and land development — — — — 1-4 family residential (including home equity) 3,101 — — 3,101 Residential construction — — — — Consumer and other — — — — Total $ 3,526 $ 5,157 $ — $ 8,683 |
Summary of Nonaccrual Loans | The following table presents additional information regarding nonaccrual loans. No interest income was recognized on nonaccrual loans as of September 30, 2021 and December 31, 2020. As of September 30, 2021 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (Dollars in thousands) Commercial and industrial $ 2,179 $ 8,068 $ 10,247 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 11,788 2,841 14,629 Commercial real estate construction and land development 53 — 53 1-4 family residential (including home equity) 2,667 557 3,224 Residential construction — — — Consumer and other 175 41 216 Total loans $ 16,862 $ 11,507 $ 28,369 As of December 31, 2020 Nonaccrual Loans with No Related Allowance Nonaccrual Loans with Related Allowance Total Nonaccrual Loans (Dollars in thousands) Commercial and industrial $ 2,097 $ 8,650 $ 10,747 Paycheck Protection Program (PPP) — — — Real estate: Commercial real estate (including multi-family residential) 7,487 2,594 10,081 Commercial real estate construction and land development 2,958 53 3,011 1-4 family residential (including home equity) 2,652 1,873 4,525 Residential construction — — — Consumer and other — 529 529 Total loans $ 15,194 $ 13,699 $ 28,893 |
Troubled Debt Restructurings on Financing Receivables | The following table presents information regarding loans modified in a troubled debt restructuring during the three and nine months ended September 30, 2021 and 2020: Three Months Ended September 30, 2021 2020 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 4 $ 300 $ 300 5 $ 1,133 $ 1,133 Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) — — — 3 1,983 1,983 Commercial real estate construction and land development — — — — — — 1-4 family residential (including home equity) — — — 1 1,081 1,081 Residential construction — — — — — — Consumer and other — — — — — — Total 4 $ 300 $ 300 9 $ 4,197 $ 4,197 Nine Months Ended September 30, 2021 2020 Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment Number of Contracts Pre-Modification of Outstanding Recorded Investment Post Modification of Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Commercial and industrial 7 $ 1,105 $ 1,105 16 $ 3,137 $ 3,137 Paycheck Protection Program (PPP) — — — — — — Real estate: Commercial real estate (including multi-family residential) 1 545 545 3 1,983 1,983 Commercial real estate construction and land development — — — 1 830 830 1-4 family residential (including home equity) — — — 4 2,021 2,021 Residential construction — — — — — — Consumer and other — — — 1 30 30 Total 8 $ 1,650 $ 1,650 25 $ 8,001 $ 8,001 |
Schedule of Loans with Principal and/or Interest Deferrals Associated with Loan Modifications Related to COVID 19 | The following table presents information regarding loans with principal and/or interest deferrals as of September 30, 2021 associated with loan modifications related to COVID-19: Inside of Deferral Period Outside of Deferral Period Total Loans That Have Had a Deferral Outstanding Loan Percent Loan Percent Loan Percent (Dollars in thousands) Commercial and industrial $ 728,897 $ 979 2.6 % $ 78,871 10.1 % $ 79,850 9.7 % Paycheck Protection Program (PPP) 290,028 — — % — — % — — % Real estate: Commercial real estate (including multi-family residential) 2,073,521 32,780 87.6 % 587,195 75.0 % 619,975 75.7 % Commercial real estate construction and land development 382,610 1,987 5.3 % 40,294 5.2 % 42,281 5.1 % 1-4 family residential (including home equity) 683,919 1,688 4.5 % 73,530 9.4 % 75,218 9.2 % Residential construction 104,638 — — % 1,321 0.2 % 1,321 0.2 % Consumer and other 25,856 — — % 522 0.1 % 522 0.1 % Total loans $ 4,289,469 $ 37,434 100.0 % $ 781,733 100.0 % $ 819,167 100.0 % |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Supplemental Lease Information | Supplemental lease information at the dates indicated is as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Balance Sheet: Operating lease right of use asset classified as premises and equipment $ 10,901 $ 11,610 Operating lease liability classified as other liabilities $ 11,091 $ 11,850 Weighted average lease term, in years 5.10 5.56 Weighted average discount rate 2.63 % 2.86 % |
Summary of Lease Costs | Lease costs for the dates indicated is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Dollars in thousands) Income Statement: Operating lease cost $ 884 $ 839 $ 2,617 $ 2,422 Short-term lease cost 3 14 34 64 Sublease income (19) (18) (55) (48) Total operating lease costs $ 868 $ 835 $ 2,596 $ 2,438 |
Maturity Analysis of Lease Liabilities | A maturity analysis of the Company’s lease liabilities is as follows: September 30, 2021 December 31, 2020 (Dollars in thousands) Lease payments due: Within one year $ 3,173 $ 3,068 After one but within two years 2,388 2,664 After two but within three years 2,097 2,056 After three but within four years 1,400 1,591 After four but within five years 1,020 1,057 After five years 1,759 2,355 Total lease payments 11,837 12,791 Less: discount on cash flows 746 941 Total lease liability $ 11,091 $ 11,850 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The carrying amounts and estimated fair values of financial instruments that are reported on the balance sheet are as follows: As of September 30, 2021 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 903,761 $ 903,761 $ — $ — $ 903,761 Available for sale securities 1,211,476 — 1,211,476 — 1,211,476 Loans held for investment, net of allowance 4,238,978 — — 4,236,403 4,236,403 Accrued interest receivable 33,523 25 6,055 27,443 33,523 Financial liabilities Deposits $ 5,666,878 $ — $ 5,674,027 $ — $ 5,674,027 Accrued interest payable 3,296 — 3,296 — 3,296 Borrowed funds 139,954 — 126,333 — 126,333 Subordinated debt 108,715 — 112,898 — 112,898 As of December 31, 2020 Estimated Fair Value Carrying Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Cash and cash equivalents $ 422,766 $ 422,766 $ — $ — $ 422,766 Available for sale securities 772,890 — 772,890 — 772,890 Loans held for investment, net of allowance 4,438,591 — — 4,431,816 4,431,816 Accrued interest receivable 40,053 2 5,531 34,520 40,053 Financial liabilities Deposits $ 4,988,482 $ — $ 5,003,594 $ — $ 5,003,594 Interest rate swap 1,252 — 1,252 — 1,252 Accrued interest payable 2,701 — 2,701 — 2,701 Borrowed funds 155,515 — 144,629 — 144,629 Subordinated debt 108,322 — 109,832 — 109,832 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present fair values for assets and liabilities measured at fair value on a recurring basis. There were no liabilities measured at fair value on a recurring basis as of September 30, 2021. September 30, 2021 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 131,993 $ — $ 131,993 Municipal securities — 482,272 — 482,272 Agency mortgage-backed pass-through securities — 249,847 — 249,847 Agency collateralized mortgage obligations — 230,747 — 230,747 Corporate bonds and other — 116,617 — 116,617 Total available for sale securities $ — $ 1,211,476 $ — $ 1,211,476 December 31, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Financial assets Available for sale securities: U.S. government and agency securities $ — $ 26,199 $ — $ 26,199 Municipal securities — 427,605 — 427,605 Agency mortgage-backed pass-through securities — 171,289 — 171,289 Agency collateralized mortgage obligations — 84,370 — 84,370 Corporate bonds and other — 63,427 — 63,427 Total available for sale securities $ — $ 772,890 $ — $ 772,890 Financial liabilities Interest rate swap $ — $ 1,252 $ — $ 1,252 |
Fair Value Measurements, Nonrecurring | Assets measured at fair value on a nonrecurring basis are summarized in the table below. There were no liabilities measured at fair value on a nonrecurring basis at September 30, 2021 and December 31, 2020. As of September 30, 2021 Level 1 Level 2 Level 3 (Dollars in thousands) Loans: Commercial and industrial $ — $ — $ 6,230 Commercial real estate (including multi- family residential) — — 41,891 Commercial real estate construction and land development — — — 1-4 family residential (including home equity) — — 3,801 Residential construction — — 532 Consumer and other — — 453 Other real estate owned — — 1,397 $ — $ — $ 54,304 As of December 31, 2020 Level 1 Level 2 Level 3 (Dollars in thousands) Loans: Commercial and industrial $ — $ — $ 8,650 Commercial real estate (including multi- family residential) — — 2,594 Commercial real estate construction and land development — — 53 1-4 family residential (including home equity) — — 1,873 Residential construction — — — Consumer and other — — 529 Other real estate owned — — 9,196 $ — $ — $ 22,895 |
DEPOSITS (Tables)
DEPOSITS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Deposit Liabilities [Abstract] | |
Schedule of Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years are as follows (dollars in thousands): Within one year $ 1,017,921 After one but within two years 242,059 After two but within three years 61,317 After three but within four years 34,594 After four but within five years 25,123 Total $ 1,381,014 |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Effect of Cash Flow Hedge Relationship on Statement of Comprehensive Income | The effects of the Company’s cash flow hedge relationship on the statement of comprehensive income during the three and nine months ended September 30, 2021 and 2020 were as follows, before tax: Amount of Gain (Loss) Recognized in Other Comprehensive (Loss) Income Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 (Dollars in thousands) Liability derivatives Interest rate swaps $ — $ 80 $ 1,252 $ (1,495) |
SUBORDINATED DEBT (Tables)
SUBORDINATED DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Subordinated Borrowings [Abstract] | |
Schedule of Subordinated Borrowing | A summary of pertinent information related to the Company’s issues of junior subordinated debentures outstanding at September 30, 2021 is set forth in the table below: Description Issuance Date Trust Preferred Securities Outstanding Interest Rate (1) Junior Subordinated Debt Owed to Trusts Maturity Date (2) (Dollars in thousands) Farmers & Merchants Capital Trust II November 13, 2003 $ 7,500 3 month LIBOR + 3.00% $ 7,732 November 8, 2033 Farmers & Merchants Capital Trust III June 30, 2005 3,500 3 month LIBOR + 1.80% 3,609 July 7, 2035 $ 11,341 (1) The 3-month LIBOR in effect as of September 30, 2021 was 0.1227%. (2) All debentures are currently callable. |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of the activity in the stock option plans during the nine months ended September 30, 2021 is set forth below: Number of Weighted Weighted Aggregate (Shares in thousands) (In years) (Dollars in thousands) Options outstanding, January 1, 2021 469 $ 21.08 3.43 $ 6,118 Options granted — — Options exercised (109) 18.48 Options forfeited (1) 37.55 Options outstanding, September 30, 2021 359 $ 21.77 2.96 $ 5,865 Options vested and exercisable, September 30, 2021 361 $ 21.61 2.96 $ 5,975 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | A summary of the activity of the nonvested shares of restricted stock during the nine months ended September 30, 2021 is as follows: Number of Weighted (Shares in thousands) Nonvested share awards outstanding, January 1, 2021 158 $ 30.78 Share awards granted 81 38.65 Share awards vested (49) 29.28 Unvested share awards forfeited or cancelled (8) 37.04 Nonvested share awards outstanding, September 30, 2021 182 $ 34.43 |
OFF-BALANCE SHEET ARRANGEMENT_2
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Fair Value, Off-balance Sheet Risks | The contractual amounts of financial instruments with off-balance sheet risk are as follows: September 30, 2021 December 31, 2020 Fixed Variable Fixed Variable (Dollars in thousands) Commitments to extend credit $ 1,088,080 $ 540,650 $ 761,938 $ 480,067 Standby letters of credit 9,226 13,537 9,252 8,003 Total $ 1,097,306 $ 554,187 $ 771,190 $ 488,070 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Regulatory Capital Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following is a summary of the Company’s and the Bank’s actual and required capital ratios as of September 30, 2021 and December 31, 2020: Actual Minimum Required for Capital Adequacy Purposes Minimum Required Plus Capital Conservation Buffer To Be Categorized As Well-Capitalized Under Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) ALLEGIANCE BANCSHARES, INC. (Consolidated) As of September 30, 2021 Total Capital (to risk weighted assets) $ 700,013 16.13 % $ 347,221 8.00 % $ 455,728 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 537,008 12.37 % 195,312 4.50 % 303,819 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 546,732 12.60 % 260,416 6.00 % 368,923 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 546,732 8.76 % 249,563 4.00 % 249,563 4.00 % N/A N/A As of December 31, 2020 Total Capital (to risk weighted assets) $ 642,155 15.71 % $ 327,084 8.00 % $ 429,298 10.50 % N/A N/A Common Equity Tier 1 Capital (to risk weighted assets) 482,643 11.80 % 183,985 4.50 % 286,199 7.00 % N/A N/A Tier 1 Capital (to risk weighted assets) 492,281 12.04 % 245,313 6.00 % 347,527 8.50 % N/A N/A Tier 1 Capital (to average tangible assets) 492,281 8.51 % 231,518 4.00 % 231,518 4.00 % N/A N/A ALLEGIANCE BANK As of September 30, 2021 Total Capital (to risk weighted assets) $ 649,294 14.98 % $ 346,812 8.00 % $ 455,191 10.50 % $ 433,515 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 555,225 12.81 % 195,082 4.50 % 303,461 7.00 % 281,785 6.50 % Tier 1 Capital (to risk weighted assets) 555,225 12.81 % 260,109 6.00 % 368,488 8.50 % 346,812 8.00 % Tier 1 Capital (to average tangible assets) 555,225 8.91 % 249,237 4.00 % 249,237 4.00 % 311,547 5.00 % As of December 31, 2020 Total Capital (to risk weighted assets) $ 635,223 15.55 % $ 326,804 8.00 % $ 428,931 10.50 % $ 408,506 10.00 % Common Equity Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 183,828 4.50 % 285,954 7.00 % 265,529 6.50 % Tier 1 Capital (to risk weighted assets) 544,331 13.32 % 245,103 6.00 % 347,230 8.50 % 326,804 8.00 % Tier 1 Capital (to average tangible assets) 544,331 9.41 % 231,334 4.00 % 231,334 4.00 % 289,167 5.00 % |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Amount Per Share Amount Per Share Amount Per Share Amount Per Share (Amounts in thousands, except per share data) Net income attributable to shareholders $ 19,060 $ 16,170 $ 59,995 $ 29,593 Basic: Weighted average shares outstanding 20,221 $ 0.94 20,439 $ 0.79 20,188 $ 2.97 20,421 $ 1.45 Diluted: Add incremental shares for: Dilutive effect of stock option exercises and performance share units 190 93 181 130 Total 20,411 $ 0.93 20,532 $ 0.79 20,369 $ 2.95 20,551 $ 1.44 |
NATURE OF OPERATIONS AND SUMM_4
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES (Details) $ in Thousands | Jan. 01, 2020USD ($) | Sep. 30, 2021USD ($)officeBank | Dec. 31, 2020USD ($) |
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of offices in which entity operates | office | 27 | ||
Retained earnings | $ (247,966) | $ (195,236) | |
Accounting Standards Update 2016-13 | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Allowance for credit losses on loans | $ 3,100 | ||
Off-balance sheet exposure for allowance for credit losses | 3,900 | ||
Increase in allowance for credit losses for loans | 2,100 | ||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Retained earnings | $ 5,500 | ||
Houston | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of banks in which entity operates | Bank | 26 | ||
Beaumont | |||
New Accounting Pronouncement Early Adoption [Line Items] | |||
Number of banks in which entity operates | Bank | 1 |
NATURE OF OPERATIONS AND SUMM_5
NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES - Schedule of Impact of Adopting ASC Topic 326 (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | $ 50,491 | $ 49,586 | $ 53,173 | $ 48,698 | $ 47,642 | $ 34,663 | $ 29,438 |
Liabilities: | |||||||
Allowance for credit losses on unfunded commitments | 3,866 | ||||||
Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 5,225 | ||||||
Liabilities: | |||||||
Allowance for credit losses on unfunded commitments | 3,866 | ||||||
Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 29,438 | ||||||
Liabilities: | |||||||
Allowance for credit losses on unfunded commitments | 0 | ||||||
Commercial and industrial | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 15,840 | ||||||
Commercial and industrial | Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 7,022 | ||||||
Commercial and industrial | Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 8,818 | ||||||
Paycheck Protection Program (PPP) | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 0 | ||||||
Paycheck Protection Program (PPP) | Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 0 | ||||||
Paycheck Protection Program (PPP) | Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 0 | ||||||
Commercial real estate (including multi-family residential) | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 6,007 | ||||||
Commercial real estate (including multi-family residential) | Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | (5,163) | ||||||
Commercial real estate (including multi-family residential) | Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 11,170 | ||||||
Commercial real estate construction and land development | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 6,051 | ||||||
Commercial real estate construction and land development | Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 1,630 | ||||||
Commercial real estate construction and land development | Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 4,421 | ||||||
1-4 family residential (including home equity) | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 5,452 | ||||||
1-4 family residential (including home equity) | Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 1,600 | ||||||
1-4 family residential (including home equity) | Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 3,852 | ||||||
Residential construction | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 1,056 | ||||||
Residential construction | Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | (1) | ||||||
Residential construction | Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 1,057 | ||||||
Consumer and other | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 257 | ||||||
Consumer and other | Impact of ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | 137 | ||||||
Consumer and other | Pre-ASC Topic 326 Adoption | |||||||
New Accounting Pronouncement Early Adoption [Line Items] | |||||||
Allowance for credit losses on loans | $ 120 |
GOODWILL AND CORE DEPOSIT INT_3
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Changes in Carrying Amount of Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Goodwill | |||||
Balance, beginning | $ 223,642 | $ 223,642 | $ 223,642 | ||
Balance, ending | $ 223,642 | 223,642 | 223,642 | ||
Core Deposit Intangibles | |||||
Balance, beginning | 17,954 | ||||
Amortization | (824) | $ (989) | (2,472) | (2,969) | |
Balance, ending | 15,482 | 15,482 | 17,954 | ||
Core Deposit Intangible Assets | |||||
Core Deposit Intangibles | |||||
Balance, beginning | 17,954 | $ 21,876 | 21,876 | ||
Amortization | (2,472) | (3,922) | |||
Balance, ending | $ 15,482 | $ 15,482 | $ 17,954 |
GOODWILL AND CORE DEPOSIT INT_4
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets impairment | $ 0 |
GOODWILL AND CORE DEPOSIT INT_5
GOODWILL AND CORE DEPOSIT INTANGIBLE ASSETS - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remaining 2021 | $ 824 | |
2022 | 3,003 | |
2023 | 2,323 | |
2024 | 2,188 | |
2025 | 2,061 | |
Thereafter | 5,083 | |
Total | $ 15,482 | $ 17,954 |
SECURITIES - Amortized Cost and
SECURITIES - Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,183,034 | $ 728,043 |
Gross Unrealized Gains | 37,219 | 45,177 |
Gross Unrealized Losses | (8,777) | (330) |
Fair Value | 1,211,476 | 772,890 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 132,434 | 25,545 |
Gross Unrealized Gains | 487 | 654 |
Gross Unrealized Losses | (928) | 0 |
Fair Value | 131,993 | 26,199 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 455,816 | 392,586 |
Gross Unrealized Gains | 28,142 | 35,079 |
Gross Unrealized Losses | (1,686) | (60) |
Fair Value | 482,272 | 427,605 |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 250,913 | 167,606 |
Gross Unrealized Gains | 2,585 | 3,829 |
Gross Unrealized Losses | (3,651) | (146) |
Fair Value | 249,847 | 171,289 |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 230,273 | 80,182 |
Gross Unrealized Gains | 2,585 | 4,263 |
Gross Unrealized Losses | (2,111) | (75) |
Fair Value | 230,747 | 84,370 |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 113,598 | 62,124 |
Gross Unrealized Gains | 3,420 | 1,352 |
Gross Unrealized Losses | (401) | (49) |
Fair Value | $ 116,617 | $ 63,427 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Allowance for credit losses for available for sale securities | $ 0 | $ 0 | |||
Proceeds from sales of available for sale securities | 0 | $ 0 | 4,900,000 | $ 30,800,000 | |
Realized gains | 49,000 | 391,000 | |||
Calls of available for sale securities | 7,100,000 | ||||
Gross realized losses | 104,000 | ||||
Net realized gain | $ 287,000 | ||||
Security owned and pledged as collateral | $ 11,700,000 | $ 11,700,000 | $ 18,500,000 |
SECURITIES - Amortized Cost a_2
SECURITIES - Amortized Cost and Fair Value of Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due in one year or less | $ 3,879 | |
Due after one year through five years | 13,365 | |
Due after five years through ten years | 136,698 | |
Due after ten years | 547,906 | |
Subtotal | 701,848 | |
Agency mortgage-backed pass-through securities and collateralized mortgage obligations | 481,186 | |
Amortized Cost | 1,183,034 | $ 728,043 |
Fair Value | ||
Due in one year or less | 3,939 | |
Due after one year through five years | 14,012 | |
Due after five years through ten years | 141,890 | |
Due after ten years | 571,041 | |
Subtotal | 730,882 | |
Agency mortgage-backed pass-through securities and collateralized mortgage obligations | 480,594 | |
Total | $ 1,211,476 | $ 772,890 |
SECURITIES - Securities in a Co
SECURITIES - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | $ 436,333 | $ 65,083 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (8,136) | (294) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 26,873 | 4,203 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (641) | (36) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 463,206 | 69,286 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (8,777) | (330) |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 98,257 | |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (928) | |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 0 | |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | 0 | |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 98,257 | |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (928) | |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 73,698 | 8,844 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1,380) | (60) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 8,513 | 0 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (306) | 0 |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 82,211 | 8,844 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (1,686) | (60) |
Agency mortgage-backed pass-through securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 121,593 | 28,659 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (3,450) | (146) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 7,958 | 0 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (201) | 0 |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 129,551 | 28,659 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (3,651) | (146) |
Agency collateralized mortgage obligations | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 117,355 | 11,629 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (1,977) | (39) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 10,402 | 4,203 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | (134) | (36) |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 127,757 | 15,832 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | (2,111) | (75) |
Corporate bonds and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Securities in a Continuous Unrealized Loss Position, Less than 12 months, Estimated Fair Value | 25,430 | 15,951 |
Securities in a Continuous Unrealized Loss Position, Less than 12 Months, Unrealized Losses | (401) | (49) |
Securities in a Continuous Unrealized Loss Position, More than 12 Months, Estimated Fair Value | 0 | 0 |
Securities in a Continuous Unrealized Loss Position, More than 12 Months Unrealized Losses | 0 | 0 |
Securities in a Continuous Unrealized Loss Position, Total Estimated Fair Value | 25,430 | 15,951 |
Securities in a Continuous Unrealized Loss Position, Total Unrealized Losses | $ (401) | $ (49) |
LOANS AND ALLOWANCE FOR CREDI_3
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | $ 4,289,469 | $ 4,491,764 | |||||
Allowance for credit losses on loans | (50,491) | $ (49,586) | (53,173) | $ (48,698) | $ (47,642) | $ (34,663) | $ (29,438) |
Loans, net | 4,238,978 | 4,438,591 | |||||
Commercial real estate construction and land development | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Allowance for credit losses on loans | (6,051) | ||||||
1-4 family residential (including home equity) | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Allowance for credit losses on loans | (5,452) | ||||||
Residential construction | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Allowance for credit losses on loans | $ (1,056) | ||||||
Commercial and industrial | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | 728,897 | 667,079 | |||||
Allowance for credit losses on loans | (18,839) | (18,254) | (17,738) | (13,013) | (13,367) | (8,818) | |
Paycheck Protection Program (PPP) | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | 290,028 | 569,901 | |||||
Allowance for credit losses on loans | 0 | 0 | 0 | 0 | 0 | 0 | |
Real estate | Commercial real estate (including multi-family residential) | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | 2,073,521 | 1,999,877 | |||||
Real estate | Commercial real estate construction and land development | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | 382,610 | 367,213 | |||||
Real estate | 1-4 family residential (including home equity) | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | 683,919 | 737,605 | |||||
Real estate | Residential construction | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | 104,638 | 127,522 | |||||
Consumer and other | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | 25,856 | 22,567 | |||||
Allowance for credit losses on loans | $ (152) | $ (273) | $ (413) | $ (395) | $ (176) | $ (120) |
LOANS AND ALLOWANCE FOR CREDI_4
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Narrative (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2021USD ($)Loan | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Loancontract | Sep. 30, 2020USD ($)contract | Dec. 31, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Accrued interest receivable for loans outstanding | $ 27,400,000 | $ 27,400,000 | $ 34,500,000 | ||||||
Allowance for credit losses on loans | 50,491,000 | $ 48,698,000 | 50,491,000 | $ 48,698,000 | 53,173,000 | $ 49,586,000 | $ 47,642,000 | $ 34,663,000 | $ 29,438,000 |
Recorded investment | 21,400,000 | 21,400,000 | 25,800,000 | ||||||
Change in method of calculating impairment | 2,300,000 | 2,300,000 | 3,300,000 | ||||||
Troubled debt restructuring, write-down | $ 21,000 | $ 632,000 | |||||||
Number of defaults on loan that were modified as troubled debt restructuring during the preceding 12 months | contract | 3 | 1 | |||||||
Troubled debt restructuring, addition | $ 247,000 | $ 22,000 | |||||||
Modification of outstanding recorded investment | $ 300,000 | 4,197,000 | $ 1,650,000 | 8,001,000 | |||||
COVID-19 | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Number of loans deferral due to CARES Act | Loan | 37 | 37 | |||||||
Outstanding loan balances deferrals due to CARES Act | $ 37,400,000 | $ 37,400,000 | |||||||
Troubled debt restructurings added in reporting period | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Recorded investment | 1,600,000 | $ 6,700,000 | 1,600,000 | $ 6,700,000 | |||||
Unfunded Loan Commitment | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Allowance for credit losses on loans | $ 6,676,000 | 6,676,000 | 4,697,000 | $ 5,737,000 | |||||
Non accrual loans interest income | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_5
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Aging Analysis of the Recorded Investment in Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | $ 20,795 | $ 11,525 |
Nonaccrual Loans | 28,369 | 28,893 |
Current Loans | 4,240,305 | 4,451,346 |
Total loans evaluated for impairment | 4,289,469 | 4,491,764 |
Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 20,795 | 11,525 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 5,479 | 2,486 |
Nonaccrual Loans | 10,247 | 10,747 |
Current Loans | 713,171 | 653,846 |
Total loans evaluated for impairment | 728,897 | 667,079 |
Commercial and industrial | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 5,479 | 2,486 |
Commercial and industrial | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 290,028 | 569,901 |
Total loans evaluated for impairment | 290,028 | 569,901 |
Paycheck Protection Program (PPP) | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Paycheck Protection Program (PPP) | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 11,021 | 3,063 |
Nonaccrual Loans | 14,629 | 10,081 |
Current Loans | 2,047,871 | 1,986,733 |
Total loans evaluated for impairment | 2,073,521 | 1,999,877 |
Real estate | Commercial real estate (including multi-family residential) | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 11,021 | 3,063 |
Real estate | Commercial real estate (including multi-family residential) | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Real estate | Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 653 | 2,930 |
Nonaccrual Loans | 53 | 3,011 |
Current Loans | 381,904 | 361,272 |
Total loans evaluated for impairment | 382,610 | 367,213 |
Real estate | Commercial real estate construction and land development | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 653 | 2,930 |
Real estate | Commercial real estate construction and land development | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Real estate | 1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,428 | 3,000 |
Nonaccrual Loans | 3,224 | 4,525 |
Current Loans | 678,267 | 730,080 |
Total loans evaluated for impairment | 683,919 | 737,605 |
Real estate | 1-4 family residential (including home equity) | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 2,428 | 3,000 |
Real estate | 1-4 family residential (including home equity) | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Real estate | Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,191 | 0 |
Nonaccrual Loans | 0 | 0 |
Current Loans | 103,447 | 127,522 |
Total loans evaluated for impairment | 104,638 | 127,522 |
Real estate | Residential construction | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 1,191 | 0 |
Real estate | Residential construction | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 0 | 0 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 23 | 46 |
Nonaccrual Loans | 216 | 529 |
Current Loans | 25,617 | 21,992 |
Total loans evaluated for impairment | 25,856 | 22,567 |
Consumer and other | Financing Receivables, 30 to 89 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | 23 | 46 |
Consumer and other | Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans Past Due and Still Accruing | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_6
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Risk Ratings by Category of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | $ 1,474,952 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,028,850 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 499,893 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 318,981 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 279,579 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 225,301 | |
Revolving Loans | 456,424 | |
Revolving Loans Converted to Term Loans | 5,489 | |
Total | 4,289,469 | $ 4,491,764 |
Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,369,373 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 955,648 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 425,196 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 265,185 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 220,307 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 167,123 | |
Revolving Loans | 429,668 | |
Revolving Loans Converted to Term Loans | 2,906 | |
Total | 3,835,406 | 3,897,745 |
Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 54,715 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 33,491 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 34,117 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 25,739 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 31,703 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 25,447 | |
Revolving Loans | 14,888 | |
Revolving Loans Converted to Term Loans | 2,337 | |
Total | 222,437 | 298,539 |
Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 18,175 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,936 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 9,781 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 6,912 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 7,150 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 7,898 | |
Revolving Loans | 6,435 | |
Revolving Loans Converted to Term Loans | 53 | |
Total | 66,340 | 115,226 |
Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 32,583 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 29,775 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 30,799 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 21,145 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 20,419 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 24,833 | |
Revolving Loans | 5,433 | |
Revolving Loans Converted to Term Loans | 193 | |
Total | 165,180 | 180,114 |
Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 106 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 106 | 140 |
Commercial real estate (including multi-family residential) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 631,466 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 555,826 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 296,981 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 188,407 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 195,947 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 158,859 | |
Revolving Loans | 45,354 | |
Revolving Loans Converted to Term Loans | 681 | |
Total | 2,073,521 | 1,999,877 |
Commercial real estate (including multi-family residential) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 572,881 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 505,844 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 243,402 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 154,344 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 151,428 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 112,031 | |
Revolving Loans | 40,746 | |
Revolving Loans Converted to Term Loans | 488 | |
Total | 1,781,164 | 1,629,023 |
Commercial real estate (including multi-family residential) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 30,209 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 17,837 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 21,763 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 13,473 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 21,973 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 20,315 | |
Revolving Loans | 1,675 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 127,245 | 177,651 |
Commercial real estate (including multi-family residential) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 10,383 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,197 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 6,379 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 4,697 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 5,602 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 5,302 | |
Revolving Loans | 1,847 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 43,407 | 68,276 |
Commercial real estate (including multi-family residential) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 17,993 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 22,948 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 25,437 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 15,893 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 16,944 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 21,211 | |
Revolving Loans | 1,086 | |
Revolving Loans Converted to Term Loans | 193 | |
Total | 121,705 | 124,927 |
Commercial real estate (including multi-family residential) | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Commercial real estate construction and land development | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 171,183 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 116,754 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 41,300 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 19,560 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 13,490 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 6,800 | |
Revolving Loans | 13,523 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 382,610 | 367,213 |
Commercial real estate construction and land development | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 163,027 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 111,059 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 37,062 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 15,751 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 7,625 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 6,550 | |
Revolving Loans | 13,381 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 354,455 | 320,133 |
Commercial real estate construction and land development | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 3,498 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 5,432 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,133 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 2,789 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 5,000 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 18,852 | 39,021 |
Commercial real estate construction and land development | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 4,124 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 165 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,633 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 366 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 865 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 250 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 7,403 | 2,880 |
Commercial real estate construction and land development | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 534 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 98 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 472 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 654 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 142 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 1,900 | 5,179 |
Commercial real estate construction and land development | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
1-4 family residential (including home equity) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 160,438 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 171,009 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 98,002 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 67,754 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 53,297 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 42,117 | |
Revolving Loans | 86,700 | |
Revolving Loans Converted to Term Loans | 4,602 | |
Total | 683,919 | 737,605 |
1-4 family residential (including home equity) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 152,421 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 163,538 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 91,396 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 58,739 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 47,500 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 33,771 | |
Revolving Loans | 77,540 | |
Revolving Loans Converted to Term Loans | 2,212 | |
Total | 627,117 | 670,074 |
1-4 family residential (including home equity) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 4,722 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 5,826 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,843 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,705 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 4,006 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 3,220 | |
Revolving Loans | 6,448 | |
Revolving Loans Converted to Term Loans | 2,337 | |
Total | 35,107 | 37,667 |
1-4 family residential (including home equity) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 2,202 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 261 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 972 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 487 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 331 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,346 | |
Revolving Loans | 2,497 | |
Revolving Loans Converted to Term Loans | 53 | |
Total | 9,149 | 18,790 |
1-4 family residential (including home equity) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,093 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 1,384 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,791 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 2,823 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 1,460 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 2,780 | |
Revolving Loans | 215 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 12,546 | 11,074 |
1-4 family residential (including home equity) | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Residential construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 63,000 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 33,376 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 2,339 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,208 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 715 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 104,638 | 127,522 |
Residential construction | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 60,063 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 33,376 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,598 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 5,208 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 715 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 100,960 | 124,737 |
Residential construction | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 2,033 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 741 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 2,774 | 2,785 |
Residential construction | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Residential construction | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 904 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 904 | 0 |
Residential construction | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 187,340 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 104,217 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 59,361 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 37,044 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 15,736 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 17,461 | |
Revolving Loans | 307,532 | |
Revolving Loans Converted to Term Loans | 206 | |
Total | 728,897 | 667,079 |
Commercial and industrial | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 159,566 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 94,424 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 50,231 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 30,160 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 12,645 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 14,707 | |
Revolving Loans | 294,765 | |
Revolving Loans Converted to Term Loans | 206 | |
Total | 656,704 | 562,518 |
Commercial and industrial | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 14,143 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,144 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 6,446 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 3,772 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 724 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,912 | |
Revolving Loans | 6,702 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 37,843 | 41,026 |
Commercial and industrial | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,466 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 313 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 793 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,344 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 352 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 2,075 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 6,343 | 25,010 |
Commercial and industrial | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 12,059 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 5,336 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,891 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,768 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 2,015 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 842 | |
Revolving Loans | 3,990 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 27,901 | 38,385 |
Commercial and industrial | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 106 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 106 | 140 |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 263,719 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 26,309 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 290,028 | 569,901 |
Net deferred fees | 10,800 | 13,900 |
Paycheck Protection Program (PPP) | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 263,719 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 26,309 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 290,028 | 569,901 |
Paycheck Protection Program (PPP) | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Paycheck Protection Program (PPP) | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Paycheck Protection Program (PPP) | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Paycheck Protection Program (PPP) | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 0 | 0 |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | (2,194) | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 21,359 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,910 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 1,008 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 394 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 64 | |
Revolving Loans | 3,315 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 25,856 | 22,567 |
Consumer and other | Pass | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | (2,304) | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 21,098 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,507 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 983 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 394 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 64 | |
Revolving Loans | 3,236 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 24,978 | 21,359 |
Consumer and other | Watch | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 110 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 252 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 191 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 63 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 616 | 389 |
Consumer and other | Special Mention | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 4 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 18 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 16 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 38 | 270 |
Consumer and other | Substandard | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 208 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 7 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | 224 | 549 |
Consumer and other | Doubtful | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2018 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, 2017 | 0 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 0 | |
Revolving Loans | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CREDI_7
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Allowance for credit losses on loans: | ||||
Balance, beginning of period | $ 49,586 | $ 47,642 | $ 53,173 | $ 29,438 |
Provision for (Recapture of) credit losses on loans | 1,355 | 1,347 | (1,725) | 23,006 |
Charge-offs | (527) | (421) | (1,111) | (4,135) |
Recoveries | 77 | 130 | 154 | 389 |
Net charge-offs | (450) | (291) | (957) | (3,746) |
Balance, end of period | 50,491 | 48,698 | 50,491 | 48,698 |
Commercial real estate (including multi-family residential) | ||||
Allowance for credit losses on loans: | ||||
Net charge-offs | (457) | 8 | (457) | (129) |
Commercial real estate construction and land development | ||||
Allowance for credit losses on loans: | ||||
Net charge-offs | 0 | (71) | 0 | (2,341) |
Residential construction | ||||
Allowance for credit losses on loans: | ||||
Net charge-offs | 0 | 0 | 0 | 0 |
Commercial and industrial | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 18,254 | 13,367 | 17,738 | 8,818 |
Provision for (Recapture of) credit losses on loans | 565 | (126) | 1,563 | 5,256 |
Charge-offs | (50) | (350) | (609) | (1,442) |
Recoveries | 70 | 122 | 147 | 381 |
Net charge-offs | 20 | (228) | (462) | (1,061) |
Balance, end of period | 18,839 | 13,013 | 18,839 | 13,013 |
Paycheck Protection Program (PPP) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 0 | 0 | 0 | 0 |
Provision for (Recapture of) credit losses on loans | 0 | 0 | 0 | 0 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 0 | 0 |
Commercial Real Estate Portfolio Segment | Commercial real estate (including multi-family residential) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 22,909 | 20,889 | 23,934 | 11,170 |
Provision for (Recapture of) credit losses on loans | 423 | 2,453 | (602) | 12,309 |
Charge-offs | (457) | 0 | (457) | (137) |
Recoveries | 0 | 8 | 0 | 8 |
Balance, end of period | 22,875 | 23,350 | 22,875 | 23,350 |
Commercial Real Estate Portfolio Segment | Commercial real estate construction and land development | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 6,006 | 3,865 | 6,939 | 4,421 |
Provision for (Recapture of) credit losses on loans | 822 | (379) | (111) | 1,335 |
Charge-offs | 0 | (71) | 0 | (2,341) |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 6,828 | 3,415 | 6,828 | 3,415 |
Commercial Real Estate Portfolio Segment | 1-4 family residential (including home equity) | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 1,304 | 7,542 | 3,279 | 3,852 |
Provision for (Recapture of) credit losses on loans | (381) | (349) | (2,335) | 3,556 |
Charge-offs | 0 | 0 | (21) | (215) |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | 0 | 0 | (21) | (215) |
Balance, end of period | 923 | 7,193 | 923 | 7,193 |
Commercial Real Estate Portfolio Segment | Residential construction | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 840 | 1,803 | 870 | 1,057 |
Provision for (Recapture of) credit losses on loans | 34 | (471) | 4 | 275 |
Charge-offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Balance, end of period | 874 | 1,332 | 874 | 1,332 |
Consumer and other | ||||
Allowance for credit losses on loans: | ||||
Balance, beginning of period | 273 | 176 | 413 | 120 |
Provision for (Recapture of) credit losses on loans | (108) | 219 | (244) | 275 |
Charge-offs | (20) | 0 | (24) | 0 |
Recoveries | 7 | 0 | 7 | 0 |
Net charge-offs | (13) | 0 | (17) | 0 |
Balance, end of period | $ 152 | $ 395 | $ 152 | $ 395 |
LOANS AND ALLOWANCE FOR CREDI_8
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Activity in Allowance for Credit Losses on Unfunded Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021 | Sep. 30, 2021 | |
Allowance For Loan Commitments [Line Items] | ||
Balance, beginning of period | $ 49,586 | $ 53,173 |
Balance, end of period | 50,491 | 50,491 |
Unfunded Loan Commitment | ||
Allowance For Loan Commitments [Line Items] | ||
Balance, beginning of period | 5,737 | 4,697 |
Provision for credit losses on unfunded commitments | 939 | 1,979 |
Balance, end of period | $ 6,676 | $ 6,676 |
LOANS AND ALLOWANCE FOR CREDI_9
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | $ 10,192 | $ 8,683 |
Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 5,675 | 3,526 |
Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 4,517 | 5,157 |
Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Commercial and industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 4,517 | 5,157 |
Commercial and industrial | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Commercial and industrial | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 4,517 | 5,157 |
Commercial and industrial | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Paycheck Protection Program (PPP) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Paycheck Protection Program (PPP) | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Paycheck Protection Program (PPP) | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Paycheck Protection Program (PPP) | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 1,343 | 425 |
Real estate | Commercial real estate construction and land development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 53 | 0 |
Real estate | 1-4 family residential (including home equity) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 4,104 | 3,101 |
Real estate | Residential construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Real Estate | Commercial real estate (including multi-family residential) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 1,343 | 425 |
Real estate | Real Estate | Commercial real estate construction and land development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 53 | 0 |
Real estate | Real Estate | 1-4 family residential (including home equity) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 4,104 | 3,101 |
Real estate | Real Estate | Residential construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Business Assets | Commercial real estate (including multi-family residential) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Business Assets | Commercial real estate construction and land development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Business Assets | 1-4 family residential (including home equity) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Business Assets | Residential construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Other | Commercial real estate (including multi-family residential) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Other | Commercial real estate construction and land development | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Other | 1-4 family residential (including home equity) | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Real estate | Other | Residential construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 175 | 0 |
Consumer and other | Real Estate | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 175 | 0 |
Consumer and other | Business Assets | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | 0 | 0 |
Consumer and other | Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Finance receivables allowance of credit losses | $ 0 | $ 0 |
LOANS AND ALLOWANCE FOR CRED_10
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Summary of Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | $ 16,862 | $ 15,194 |
Nonaccrual Loans with Related Allowance | 11,507 | 13,699 |
Total Nonaccrual Loans | 28,369 | 28,893 |
Commercial and industrial | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 2,179 | 2,097 |
Nonaccrual Loans with Related Allowance | 8,068 | 8,650 |
Total Nonaccrual Loans | 10,247 | 10,747 |
Paycheck Protection Program (PPP) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 0 | 0 |
Nonaccrual Loans with Related Allowance | 0 | 0 |
Total Nonaccrual Loans | 0 | 0 |
Real estate | Commercial real estate (including multi-family residential) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 11,788 | 7,487 |
Nonaccrual Loans with Related Allowance | 2,841 | 2,594 |
Total Nonaccrual Loans | 14,629 | 10,081 |
Real estate | Commercial real estate construction and land development | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 53 | 2,958 |
Nonaccrual Loans with Related Allowance | 0 | 53 |
Total Nonaccrual Loans | 53 | 3,011 |
Real estate | 1-4 family residential (including home equity) | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 2,667 | 2,652 |
Nonaccrual Loans with Related Allowance | 557 | 1,873 |
Total Nonaccrual Loans | 3,224 | 4,525 |
Real estate | Residential construction | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 0 | 0 |
Nonaccrual Loans with Related Allowance | 0 | 0 |
Total Nonaccrual Loans | 0 | 0 |
Consumer and other | ||
Financing Receivable Nonaccrual Status [Line Items] | ||
Nonaccrual Loans with No Related Allowance | 175 | 0 |
Nonaccrual Loans with Related Allowance | 41 | 529 |
Total Nonaccrual Loans | $ 216 | $ 529 |
LOANS AND ALLOWANCE FOR CRED_11
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | Sep. 30, 2021USD ($)contract | Sep. 30, 2020USD ($)contract | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 4 | 9 | 8 | 25 |
Pre-Modification of Outstanding Recorded Investment | $ 300 | $ 4,197 | $ 1,650 | $ 8,001 |
Post Modification of Outstanding Recorded Investment | $ 300 | $ 4,197 | $ 1,650 | $ 8,001 |
Commercial and industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 4 | 5 | 7 | 16 |
Pre-Modification of Outstanding Recorded Investment | $ 300 | $ 1,133 | $ 1,105 | $ 3,137 |
Post Modification of Outstanding Recorded Investment | $ 300 | $ 1,133 | $ 1,105 | $ 3,137 |
Paycheck Protection Program (PPP) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Real estate | Commercial real estate (including multi-family residential) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 3 | 1 | 3 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 1,983 | $ 545 | $ 1,983 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 1,983 | $ 545 | $ 1,983 |
Real estate | Commercial real estate construction and land development | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 1 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 830 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 830 |
Real estate | 1-4 family residential (including home equity) | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 1 | 0 | 4 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 1,081 | $ 0 | $ 2,021 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 1,081 | $ 0 | $ 2,021 |
Real estate | Residential construction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer and other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 1 |
Pre-Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 30 |
Post Modification of Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 30 |
LOANS AND ALLOWANCE FOR CRED_12
LOANS AND ALLOWANCE FOR CREDIT LOSSES - Schedule of Loans with Principal and/or Interest Deferrals Associated with Loan Modifications Related to COVID 19 (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 4,289,469 | $ 4,491,764 |
Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 37,434 | |
Percent | 100.00% | |
Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 781,733 | |
Percent | 100.00% | |
Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 819,167 | |
Percent | 100.00% | |
Commercial and industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 728,897 | 667,079 |
Commercial and industrial | Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 979 | |
Percent | 2.60% | |
Commercial and industrial | Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 78,871 | |
Percent | 10.10% | |
Commercial and industrial | Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 79,850 | |
Percent | 9.70% | |
Paycheck Protection Program (PPP) | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 290,028 | 569,901 |
Paycheck Protection Program (PPP) | Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 0 | |
Percent | 0.00% | |
Paycheck Protection Program (PPP) | Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 0 | |
Percent | 0.00% | |
Paycheck Protection Program (PPP) | Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 0 | |
Percent | 0.00% | |
Consumer and other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 25,856 | 22,567 |
Consumer and other | Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 0 | |
Percent | 0.00% | |
Consumer and other | Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 522 | |
Percent | 0.10% | |
Consumer and other | Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 522 | |
Percent | 0.10% | |
Commercial real estate (including multi-family residential) | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 2,073,521 | 1,999,877 |
Commercial real estate (including multi-family residential) | Real estate | Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 32,780 | |
Percent | 87.60% | |
Commercial real estate (including multi-family residential) | Real estate | Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 587,195 | |
Percent | 75.00% | |
Commercial real estate (including multi-family residential) | Real estate | Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 619,975 | |
Percent | 75.70% | |
Commercial real estate construction and land development | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 382,610 | 367,213 |
Commercial real estate construction and land development | Real estate | Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 1,987 | |
Percent | 5.30% | |
Commercial real estate construction and land development | Real estate | Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 40,294 | |
Percent | 5.20% | |
Commercial real estate construction and land development | Real estate | Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 42,281 | |
Percent | 5.10% | |
1-4 family residential (including home equity) | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 683,919 | 737,605 |
1-4 family residential (including home equity) | Real estate | Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 1,688 | |
Percent | 4.50% | |
1-4 family residential (including home equity) | Real estate | Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 73,530 | |
Percent | 9.40% | |
1-4 family residential (including home equity) | Real estate | Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 75,218 | |
Percent | 9.20% | |
Residential construction | Real estate | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Outstanding Loan Balance | $ 104,638 | $ 127,522 |
Residential construction | Real estate | Inside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 0 | |
Percent | 0.00% | |
Residential construction | Real estate | Outside of Deferral Period | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 1,321 | |
Percent | 0.20% | |
Residential construction | Real estate | Total Loans That Have Had a Deferral | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loan Balance | $ 1,321 | |
Percent | 0.20% |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2021lease | |
Lessee Lease Description [Line Items] | |
Number of leased branch locations and office space | 16 |
Maximum | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, term of contract | 12 months |
Operating lease renewal term | 5 years |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating lease renewal term | 1 year |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Balance Sheet: | ||
Operating lease right of use asset classified as premises and equipment | $ 10,901 | $ 11,610 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Premises and equipment, net | Premises and equipment, net |
Operating lease liability classified as other liabilities | $ 11,091 | $ 11,850 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Weighted average lease term, in years | 5 years 1 month 6 days | 5 years 6 months 21 days |
Weighted average discount rate | 2.63% | 2.86% |
LEASES - Summary of Lease Costs
LEASES - Summary of Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement: | ||||
Operating lease cost | $ 884 | $ 839 | $ 2,617 | $ 2,422 |
Short-term lease cost | 3 | 14 | 34 | 64 |
Sublease income | (19) | (18) | (55) | (48) |
Total operating lease costs | $ 868 | $ 835 | $ 2,596 | $ 2,438 |
LEASES - Maturity Analysis of L
LEASES - Maturity Analysis of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Lease payments due: | ||
Within one year | $ 3,173 | $ 3,068 |
After one but within two years | 2,388 | 2,664 |
After two but within three years | 2,097 | 2,056 |
After three but within four years | 1,400 | 1,591 |
After four but within five years | 1,020 | 1,057 |
After five years | 1,759 | 2,355 |
Total lease payments | 11,837 | 12,791 |
Less: discount on cash flows | 746 | 941 |
Total lease liability | $ 11,091 | $ 11,850 |
FAIR VALUE - Carrying Amounts a
FAIR VALUE - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 422,766 | |
Available for sale securities | $ 1,211,476 | 772,890 |
Loans held for investment, net of allowance | 4,438,591 | |
Accrued interest receivable | 40,053 | |
Deposits | 4,988,482 | |
Interest rate swap | 1,252 | |
Accrued interest payable | 2,701 | |
Borrowed funds | 155,515 | |
Subordinated debt | 108,322 | |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 903,761 | |
Available for sale securities | 1,211,476 | |
Loans held for investment, net of allowance | 4,238,978 | |
Accrued interest receivable | 33,523 | |
Deposits | 5,666,878 | |
Accrued interest payable | 3,296 | |
Borrowed funds | 139,954 | |
Subordinated debt | 108,715 | |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 903,761 | 422,766 |
Available for sale securities | 1,211,476 | 772,890 |
Loans held for investment, net of allowance | 4,236,403 | 4,431,816 |
Accrued interest receivable | 33,523 | 40,053 |
Deposits | 5,674,027 | 5,003,594 |
Interest rate swap | 1,252 | |
Accrued interest payable | 3,296 | 2,701 |
Borrowed funds | 126,333 | 144,629 |
Subordinated debt | 112,898 | 109,832 |
Estimated Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 903,761 | 422,766 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 25 | 2 |
Deposits | 0 | 0 |
Interest rate swap | 0 | |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | 0 | 0 |
Estimated Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 1,211,476 | 772,890 |
Loans held for investment, net of allowance | 0 | 0 |
Accrued interest receivable | 6,055 | 5,531 |
Deposits | 5,674,027 | 5,003,594 |
Interest rate swap | 1,252 | |
Accrued interest payable | 3,296 | 2,701 |
Borrowed funds | 126,333 | 144,629 |
Subordinated debt | 112,898 | 109,832 |
Estimated Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Available for sale securities | 0 | 0 |
Loans held for investment, net of allowance | 4,236,403 | 4,431,816 |
Accrued interest receivable | 27,443 | 34,520 |
Deposits | 0 | 0 |
Interest rate swap | 0 | |
Accrued interest payable | 0 | 0 |
Borrowed funds | 0 | 0 |
Subordinated debt | $ 0 | $ 0 |
FAIR VALUE - Narrative (Details
FAIR VALUE - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2021USD ($)Property | Dec. 31, 2020USD ($)Property | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate acquired through foreclosure | $ 1,397,000 | $ 9,196,000 |
Foreclosed Residential Rental Property | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of properties | Property | 2 | 1 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Real estate acquired through foreclosure | $ 1,400,000 | $ 9,200,000 |
Collateral Dependent Loans Specific Allocation of Allowance for Credit Losses on Loans | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of estimated selling and closing costs of collateral | 5.00% | |
Collateral Dependent Loans Specific Allocation of Allowance for Credit Losses on Loans | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of estimated selling and closing costs of collateral | 10.00% | |
Other Real Estate Owned | Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of estimated selling and closing costs of collateral | 5.00% | |
Other Real Estate Owned | Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percentage of estimated selling and closing costs of collateral | 10.00% | |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | $ 0 | |
Nonrecurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | $ 0 | $ 0 |
FAIR VALUE - Fair Values for As
FAIR VALUE - Fair Values for Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 1,211,476 | $ 772,890 |
U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 131,993 | 26,199 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 482,272 | 427,605 |
Agency mortgage-backed pass-through securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 249,847 | 171,289 |
Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 230,747 | 84,370 |
Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 116,617 | 63,427 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,211,476 | 772,890 |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 1,211,476 | 772,890 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 131,993 | 26,199 |
Recurring Basis | U.S. government and agency securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | U.S. government and agency securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 131,993 | 26,199 |
Recurring Basis | U.S. government and agency securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 482,272 | 427,605 |
Recurring Basis | Municipal securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Municipal securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 482,272 | 427,605 |
Recurring Basis | Municipal securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 249,847 | 171,289 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 249,847 | 171,289 |
Recurring Basis | Agency mortgage-backed pass-through securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 230,747 | 84,370 |
Recurring Basis | Agency collateralized mortgage obligations | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Agency collateralized mortgage obligations | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 230,747 | 84,370 |
Recurring Basis | Agency collateralized mortgage obligations | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Corporate bonds and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 116,617 | 63,427 |
Recurring Basis | Corporate bonds and other | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 0 | 0 |
Recurring Basis | Corporate bonds and other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | 116,617 | 63,427 |
Recurring Basis | Corporate bonds and other | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale securities | $ 0 | 0 |
Recurring Basis | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 1,252 | |
Recurring Basis | Interest rate swaps | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 0 | |
Recurring Basis | Interest rate swaps | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | 1,252 | |
Recurring Basis | Interest rate swaps | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | $ 0 |
FAIR VALUE - Assets Measured at
FAIR VALUE - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | $ 0 | $ 0 |
Assets and liabilities are measured at fair value, nonrecurring basis | 0 | 0 |
Level 1 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | Commercial real estate (including multi- family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 1 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Assets and liabilities are measured at fair value, nonrecurring basis | 0 | 0 |
Level 2 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | Commercial real estate (including multi- family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 2 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 1,397 | 9,196 |
Assets and liabilities are measured at fair value, nonrecurring basis | 54,304 | 22,895 |
Level 3 | Commercial real estate construction and land development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 0 | 53 |
Level 3 | 1-4 family residential (including home equity) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 3,801 | 1,873 |
Level 3 | Residential construction | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 532 | 0 |
Level 3 | Commercial and industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 6,230 | 8,650 |
Level 3 | Commercial real estate (including multi- family residential) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | 41,891 | 2,594 |
Level 3 | Consumer and other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans: | $ 453 | $ 529 |
DEPOSITS - Narrative (Details)
DEPOSITS - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposit Liabilities [Abstract] | ||
Time deposits, at or above FDIC insurance limit | $ 250 | $ 250 |
Time deposits 250,000 or more | 783,300 | 726,800 |
Brokered deposits | $ 303,700 | $ 453,800 |
DEPOSITS - Time Deposits by Mat
DEPOSITS - Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deposit Liabilities [Abstract] | ||
Within one year | $ 1,017,921 | |
After one but within two years | 242,059 | |
After two but within three years | 61,317 | |
After three but within four years | 34,594 | |
After four but within five years | 25,123 | |
Total | $ 1,381,014 | $ 1,346,649 |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Details) - Cash Flow Hedging - Designated as Hedging Instrument - USD ($) | Sep. 30, 2021 | Jun. 30, 2021 |
Derivative Instruments Gain Loss [Line Items] | ||
Reclassification of gain realized through the termination of cash flow hedge | $ 225,000 | |
Derivatives designated as cash flow hedges outstanding | $ 0 |
DERIVATIVE INSTRUMENTS - Effect
DERIVATIVE INSTRUMENTS - Effect of Cash Flow Hedge Relationship on Statement of Comprehensive Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of Gain (Loss) Recognized in Other Comprehensive (Loss) Income | $ 0 | $ 80 | $ 1,252 | $ (1,495) |
BORROWINGS AND BORROWING CAPA_2
BORROWINGS AND BORROWING CAPACITY (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2021 | Dec. 28, 2018 | |
Revolving Credit Agreement | |||
Debt Instrument [Line Items] | |||
Outstanding amount | $ 0 | ||
Amended Revolving Credit Agreement | |||
Debt Instrument [Line Items] | |||
Percentage of debt secured by capital stock | 100.00% | ||
Borrowing Agreement | Prime Rate | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 3.00% | ||
Basis spread on variable rate | (0.25%) | ||
Credit Facility With Another Financial Institution | Amended Revolving Credit Agreement | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 45,000,000 | ||
Annual reduction in borrowing capacity | $ 7,500,000 | ||
Federal Home Loan Bank of Dallas | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 1,910,000,000 | ||
Remaining borrowing capacity | 1,150,000,000 | ||
Outstanding amount | 761,800,000 | ||
Letters of credit, outstanding amount | 621,800,000 | ||
Federal Home Loan Bank of Dallas | Expire in Remaining Months of 2021 | |||
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | 70,700,000 | ||
Federal Home Loan Bank of Dallas | Expire in 2022 | |||
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | 423,300,000 | ||
Federal Home Loan Bank of Dallas | Expire in 2023 | |||
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | 60,900,000 | ||
Federal Home Loan Bank of Dallas | Expire in 2024 | |||
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | 55,900,000 | ||
Federal Home Loan Bank of Dallas | Expire In 2025 | |||
Debt Instrument [Line Items] | |||
Letters of credit, outstanding amount | 11,000,000 | ||
Federal Home Loan Bank of Dallas | Short-term Debt | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank, advances | $ 140,000,000 | ||
Federal Home Loan Bank of Dallas | Short-term Debt | Weighted Average | |||
Debt Instrument [Line Items] | |||
Federal Home Loan Bank, advances, interest rate | 1.19% |
SUBORDINATED DEBT - Narrative (
SUBORDINATED DEBT - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2017 | Sep. 30, 2021 | Jan. 01, 2015 | |
Subordinated Borrowing [Line Items] | ||||
Junior subordinated debt owed to trusts | $ 11,341 | |||
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | ||||
Subordinated Borrowing [Line Items] | ||||
Debt instrument, face amount | $ 60,000 | $ 40,000 | ||
Issuance price, percentage | 100.00% | 100.00% | ||
Proceeds from issuance of debt | $ 58,600 | $ 39,400 | ||
Stated percentage | 4.70% | 5.25% | ||
Redemption price | 100.00% | 100.00% | ||
Subordinated Notes | Fixed-to-Floating Rate Subordinated Notes | 3 month LIBOR | ||||
Subordinated Borrowing [Line Items] | ||||
Basis spread on variable rate | 3.13% | 3.03% | ||
F&M Bancshares. Inc. | Junior Subordinated Debt | ||||
Subordinated Borrowing [Line Items] | ||||
Debentures, period over which company may defer interest payments | 5 years | |||
Debt instrument, face amount | $ 11,300 | |||
Debt instrument, carrying value | $ 9,700 | |||
Debt instrument, unamortized discount | $ 2,500 |
SUBORDINATED DEBT - Summary of
SUBORDINATED DEBT - Summary of Pertinent Information Related to Junior Subordinated Debentures (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Subordinated Borrowing [Line Items] | |
Junior Subordinated Debt Owed to Trusts | $ 11,341,000 |
Junior Subordinated Debt | 3 month LIBOR | |
Subordinated Borrowing [Line Items] | |
Effective interest rate | 0.1227% |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | |
Subordinated Borrowing [Line Items] | |
Trust Preferred Securities Outstanding | $ 7,500,000 |
Junior Subordinated Debt Owed to Trusts | $ 7,732,000 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust II | 3 month LIBOR | |
Subordinated Borrowing [Line Items] | |
Interest Rate | 3.00% |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | |
Subordinated Borrowing [Line Items] | |
Trust Preferred Securities Outstanding | $ 3,500,000 |
Junior Subordinated Debt Owed to Trusts | $ 3,609,000 |
Junior Subordinated Debt | Farmers & Merchants Capital Trust III | 3 month LIBOR | |
Subordinated Borrowing [Line Items] | |
Interest Rate | 1.80% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 4,614,000 | $ 3,677,000 | $ 13,508,000 | $ 6,574,000 |
Effective income tax rate reconciliation | 19.50% | 18.50% | 18.40% | 18.20% |
Unrecognized tax benefits, income tax penalties and interest expense | $ 0 | $ 0 |
STOCK BASED COMPENSATION - Narr
STOCK BASED COMPENSATION - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)compensationPlanshares | Sep. 30, 2020USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of stock-based employee compensation plans | compensationPlan | 2 | |||
Number of shares authorized (in shares) | 3,200,000 | 3,200,000 | ||
Share-based compensation expense | $ | $ 1,000 | $ 863 | $ 2,900 | $ 2,600 |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | 1,800,000 | 1,800,000 | ||
Option, cumulative options granted since inception (in shares) | 1,309,231 | 1,309,231 | ||
Expiration period | 10 years | |||
Award vesting period | 4 years | |||
Unrecognized compensation cost | $ | $ 12 | $ 12 | ||
Weighted average period over which unrecognized compensation | 5 months 1 day | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Unrecognized compensation cost | $ | 5,700 | $ 5,700 | ||
Weighted average period over which unrecognized compensation | 2 years 3 months 25 days | |||
Equity instruments other than options, grants in period (in shares) | 80,649 | |||
Share awards granted (in shares) | 81,000 | |||
Performance Share Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 2 years | |||
Weighted average period over which unrecognized compensation | 2 years 18 days | |||
Service period | 1 year | |||
Share awards granted (in shares) | 56,255 | 46,243 | ||
Unrecognized compensation expense | $ | $ 2,600 | $ 2,600 |
STOCK BASED COMPENSATION - Stoc
STOCK BASED COMPENSATION - Stock Option Plans Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Number of Options | ||
Options outstanding, beginning balance (in shares) | 469 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | (109) | |
Options forfeited (in shares) | (1) | |
Options outstanding, ending balance (in shares) | 359 | 469 |
Number of options vested and exercisable (in shares) | 361 | |
Weighted Average Exercise Price | ||
Options outstanding, beginning balance (in dollars per share) | $ 21.08 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 18.48 | |
Options forfeited (in dollars per share) | 37.55 | |
Options outstanding, ending balance (in dollars per share) | 21.77 | $ 21.08 |
Weighted Average Exercise Price, Options vested and exercisable (in dollars per share) | $ 21.61 | |
Weighted Average Remaining Contractual Term, Options outstanding | 2 years 11 months 15 days | 3 years 5 months 4 days |
Weighted Average Remaining Contractual Term, Options vested and exercisable | 2 years 11 months 15 days | |
Aggregate Intrinsic Value, Options outstanding | $ 5,865 | $ 6,118 |
Aggregate Intrinsic Value, Options vested and exercisable | $ 5,975 |
STOCK BASED COMPENSATION - Summ
STOCK BASED COMPENSATION - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Number of Shares | |
Nonvested share awards outstanding, beginning balance (in shares) | shares | 158 |
Share awards granted (in shares) | shares | 81 |
Share awards vested (in shares) | shares | (49) |
Unvested share awards forfeited or cancelled (in shares) | shares | (8) |
Nonvested share awards outstanding, ending balance (in shares) | shares | 182 |
Weighted Average Grant Date Fair Value | |
Nonvested share awards outstanding, beginning balance (in dollars per share) | $ / shares | $ 30.78 |
Share awards granted (in dollars per share) | $ / shares | 38.65 |
Share awards vested (in dollars per share) | $ / shares | 29.28 |
Unvested share awards forfeited or cancelled (in dollars per share) | $ / shares | 37.04 |
Nonvested share awards outstanding, ending balance (in dollars per share) | $ / shares | $ 34.43 |
OFF-BALANCE SHEET ARRANGEMENT_3
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Contractual Amounts of Financial Instruments With Off-balance Sheet Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 1,097,306 | $ 771,190 |
Variable Rate | 554,187 | 488,070 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 1,088,080 | 761,938 |
Variable Rate | 540,650 | 480,067 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 9,226 | 9,252 |
Variable Rate | $ 13,537 | $ 8,003 |
OFF-BALANCE SHEET ARRANGEMENT_4
OFF-BALANCE SHEET ARRANGEMENTS, COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to make loans, period | 120 days | |
Off-balance-sheet fixed rate loan commitments, weighted average maturity | 3 years 8 months 19 days | 3 years 6 months 10 days |
Minimum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 1.00% | 1.20% |
Maximum | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 13.49% | 18.00% |
Weighted Average | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance-sheet fixed rate loan commitments, interest rate | 4.56% | 5.13% |
REGULATORY CAPITAL MATTERS - Na
REGULATORY CAPITAL MATTERS - Narrative (Details) | Sep. 30, 2021 |
Regulatory Capital Matters [Abstract] | |
Capital conservation buffer | 2.50% |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital (Details) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Total Capital | ||
Capital | $ 700,013 | $ 642,155 |
Capital to Risk Weighted Assets | 0.1613 | 0.1571 |
Capital Required for Capital Adequacy | $ 347,221 | $ 327,084 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Plus Capital Conservation Buffer | $ 455,728 | $ 429,298 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 0.1050 | 0.1050 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 537,008 | $ 482,643 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1237 | 0.1180 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 195,312 | $ 183,985 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Plus Common Equity Tier 1 Risk Based Capital | $ 303,819 | $ 286,199 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0700 | 0.0700 |
Tier 1 Capital | ||
Tier 1 Risk Based Capital | $ 546,732 | $ 492,281 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1260 | 0.1204 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 260,416 | $ 245,313 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Plus Tier 1 Risk Based Capital | $ 368,923 | $ 347,527 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0850 | 0.0850 |
Tier 1 Capital | ||
Tier 1 Leverage Capital | $ 546,732 | $ 492,281 |
Tier 1 Leverage Capital to Average Assets | 0.0876 | 0.0851 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 249,563 | $ 231,518 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 0.0400 | 0.0400 |
Plus Tier 1 Leverage Capital | $ 249,563 | $ 231,518 |
Plus Tier 1 Leverage Capital to Average Assets | 0.0400 | 0.0400 |
Allegiance Bank | ||
Total Capital | ||
Capital | $ 649,294 | $ 635,223 |
Capital to Risk Weighted Assets | 0.1498 | 0.1555 |
Capital Required for Capital Adequacy | $ 346,812 | $ 326,804 |
Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0800 | 0.0800 |
Plus Capital Conservation Buffer | $ 455,191 | $ 428,931 |
Plus Capital Conservation Buffer to Risk Weighted Assets | 0.1050 | 0.1050 |
Capital Required to be Well Capitalized | $ 433,515 | $ 408,506 |
Capital Required to be Well Capitalized to Risk Weighted Assets | 0.1000 | 0.1000 |
Common Equity Tier 1 Capital | ||
Common Equity Tier 1 Risk Based Capital | $ 555,225 | $ 544,331 |
Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1281 | 0.1332 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy | $ 195,082 | $ 183,828 |
Common Equity Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0450 | 0.0450 |
Plus Common Equity Tier 1 Risk Based Capital | $ 303,461 | $ 285,954 |
Plus Common Equity Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0700 | 0.0700 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized | $ 281,785 | $ 265,529 |
Common Equity Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0650 | 0.0650 |
Tier 1 Capital | ||
Tier 1 Risk Based Capital | $ 555,225 | $ 544,331 |
Tier 1 Risk Based Capital to Risk Weighted Assets | 0.1281 | 0.1332 |
Tier 1 Risk Based Capital Required for Capital Adequacy | $ 260,109 | $ 245,103 |
Tier 1 Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 0.0600 | 0.0600 |
Plus Tier 1 Risk Based Capital | $ 368,488 | $ 347,230 |
Plus Tier 1 Risk Based Capital to Risk Weighted Assets | 0.0850 | 0.0850 |
Tier 1 Risk Based Capital Required to be Well Capitalized | $ 346,812 | $ 326,804 |
Tier 1 Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 0.0800 | 0.0800 |
Tier 1 Capital | ||
Tier 1 Leverage Capital | $ 555,225 | $ 544,331 |
Tier 1 Leverage Capital to Average Assets | 0.0891 | 0.0941 |
Tier 1 Leverage Capital Required for Capital Adequacy | $ 249,237 | $ 231,334 |
Tier 1 Leverage Capital Required for Capital Adequacy to Average Assets | 0.0400 | 0.0400 |
Plus Tier 1 Leverage Capital | $ 249,237 | $ 231,334 |
Plus Tier 1 Leverage Capital to Average Assets | 0.0400 | 0.0400 |
Tier 1 Leverage Capital Required to be Well Capitalized | $ 311,547 | $ 289,167 |
Tier 1 Leverage Capital Required to be Well Capitalized to Average Assets | 0.0500 | 0.0500 |
EARNINGS PER COMMON SHARE - Sum
EARNINGS PER COMMON SHARE - Summary of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to shareholders | $ 19,060 | $ 16,170 | $ 59,995 | $ 29,593 |
Basic: | ||||
Weighted average shares outstanding (in shares) | 20,221 | 20,439 | 20,188 | 20,421 |
Weighted average shares outstanding (in dollars per share) | $ 0.94 | $ 0.79 | $ 2.97 | $ 1.45 |
Diluted: | ||||
Dilutive effect of stock option exercises and performance share units (in shares) | 190 | 93 | 181 | 130 |
Total (in shares) | 20,411 | 20,532 | 20,369 | 20,551 |
Total (in dollars per share) | $ 0.93 | $ 0.79 | $ 2.95 | $ 1.44 |
EARNINGS PER COMMON SHARE - Nar
EARNINGS PER COMMON SHARE - Narrative (Details) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 22,800 | |
Employee Stock Option | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 71,990 |