Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 01, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | FBK | |
Entity Registrant Name | FB Financial Corp | |
Entity Central Index Key | 1,649,749 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 30,527,104 |
Consolidated balance sheets (Un
Consolidated balance sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and due from banks | $ 67,070 | $ 50,157 |
Federal funds sold | 4,470 | 13,037 |
Interest bearing deposits in financial institutions | 25,625 | 73,133 |
Cash and cash equivalents | 97,165 | 136,327 |
Investments: | ||
Available-for-sale securities, at fair value | 543,282 | 582,183 |
Federal Home Loan Bank stock, at cost | 11,152 | 7,743 |
Loans held for sale, at fair value | 466,369 | 507,442 |
Loans | 3,114,562 | 1,848,784 |
Less: allowance for loan losses | 23,482 | 21,747 |
Net loans | 3,091,080 | 1,827,037 |
Premises and equipment, net | 85,550 | 66,651 |
Other real estate owned, net | 13,812 | 7,403 |
Interest receivable | 11,218 | 7,241 |
Mortgage servicing rights | 63,046 | 32,070 |
Goodwill | 138,910 | 46,867 |
Core deposit intangible, net | 12,550 | 4,563 |
Other assets | 47,809 | 51,354 |
Total assets | 4,581,943 | 3,276,881 |
Demand deposits | ||
Noninterest-bearing | 924,773 | 697,072 |
Interest-bearing | 1,948,600 | 1,449,382 |
Savings deposits | 177,949 | 134,077 |
Customer time deposits | 562,898 | 389,500 |
Brokered and internet time deposits | 104,318 | 1,531 |
Total time deposits | 667,216 | 391,031 |
Total deposits | 3,718,538 | 2,671,562 |
Securities sold under agreements to repurchase | 14,556 | 21,561 |
Short-term borrowings | 52,766 | 150,000 |
Long-term debt | 143,533 | 44,892 |
Accrued expenses and other liabilities | 80,022 | 58,368 |
Total liabilities | 4,009,415 | 2,946,383 |
Shareholders' equity: | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 30,526,592 and 24,107,660 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 30,527 | 24,108 |
Additional paid-in capital | 416,651 | 213,480 |
Retained earnings | 123,779 | 93,784 |
Accumulated other comprehensive income (loss), net | 1,571 | (874) |
Total shareholders' equity | 572,528 | 330,498 |
Total liabilities and shareholders' equity | $ 4,581,943 | $ 3,276,881 |
Consolidated balance sheets (U3
Consolidated balance sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 30,526,592 | 24,107,660 |
Common stock, shares outstanding | 30,526,592 | 24,107,660 |
Consolidated statements of inco
Consolidated statements of income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Interest income: | ||||
Interest and fees on loans | $ 44,367 | $ 26,550 | $ 102,723 | $ 77,740 |
Interest on securities | ||||
Taxable | 2,399 | 2,402 | 7,555 | 8,296 |
Tax-exempt | 988 | 875 | 3,096 | 2,425 |
Other | 661 | 178 | 1,208 | 466 |
Total interest income | 48,415 | 30,005 | 114,582 | 88,927 |
Deposits | ||||
Demand and savings accounts | 2,829 | 1,340 | 6,063 | 4,026 |
Time deposits | 1,125 | 575 | 2,312 | 1,378 |
Short-term borrowings | 9 | 13 | 31 | 101 |
Long-term debt | 842 | 460 | 1,888 | 1,504 |
Total interest expense | 4,805 | 2,388 | 10,294 | 7,009 |
Net interest income | 43,610 | 27,617 | 104,288 | 81,918 |
Provision for loan losses | (784) | 71 | (1,906) | (727) |
Net interest income after provision for loan losses | 44,394 | 27,546 | 106,194 | 82,645 |
Noninterest income: | ||||
Mortgage banking income | 31,334 | 36,938 | 86,653 | 91,574 |
Service charges on deposit accounts | 2,044 | 1,870 | 5,606 | 6,129 |
ATM and interchange fees | 2,222 | 1,814 | 6,354 | 5,756 |
Investment services and trust income | 1,078 | 857 | 2,795 | 2,508 |
Gain from securities, net | 254 | 416 | 284 | 4,407 |
Gain or write-downs of other real estate owned | 75 | 1,646 | 846 | 1,504 |
(Loss) gain from other assets | (389) | 7 | (350) | 24 |
Other income | 1,202 | 414 | 2,376 | 1,451 |
Total noninterest income | 37,820 | 43,962 | 104,564 | 113,353 |
Noninterest expenses: | ||||
Salaries, commissions and employee benefits | 34,795 | 34,010 | 94,584 | 84,486 |
Occupancy and equipment expense | 3,539 | 3,171 | 9,955 | 9,567 |
Legal and professional fees | 1,512 | 816 | 3,973 | 2,704 |
Data processing | 1,761 | 1,294 | 4,722 | 2,691 |
Merger and conversion | 15,711 | 1,122 | 16,965 | 3,268 |
Amortization of core deposit intangibles | 558 | 526 | 1,073 | 1,605 |
Amortization of mortgage servicing rights | 2,796 | 6,221 | ||
Impairment of mortgage servicing rights | 2,402 | 8,089 | ||
Loss on sale of mortgage servicing rights | 249 | |||
Regulatory fees and deposit insurance assessments | 549 | 465 | 1,478 | 1,481 |
Software license and maintenance fees | 523 | 503 | 1,344 | 2,361 |
Advertising | 3,493 | 2,220 | 9,768 | 8,071 |
Other expense | 6,783 | 6,204 | 20,666 | 16,927 |
Total noninterest expense | 69,224 | 55,529 | 164,777 | 147,471 |
Income before income taxes | 12,990 | 15,979 | 45,981 | 48,527 |
Income tax expense (Note 8) | 4,602 | 14,772 | 16,601 | 16,946 |
Net income | $ 8,388 | $ 1,207 | $ 29,380 | $ 31,581 |
Weighted average shares of common stock outstanding | ||||
Basic | 30,004,952 | 18,259,128 | 26,649,942 | 17,542,335 |
Fully diluted | 30,604,537 | 18,332,192 | 27,198,373 | 17,566,867 |
Earnings per share | ||||
Basic | $ 0.28 | $ 0.07 | $ 1.10 | $ 1.80 |
Fully diluted | $ 0.27 | $ 0.07 | $ 1.08 | $ 1.80 |
Pro Forma (C Corporation basis) (Note 8): | ||||
Income tax expense | $ 4,602 | $ 5,946 | $ 16,601 | $ 18,115 |
Net income | $ 8,388 | $ 10,033 | $ 29,380 | $ 30,412 |
Earnings per share | ||||
Basic | $ 0.28 | $ 0.55 | $ 1.10 | $ 1.73 |
Fully diluted | $ 0.27 | $ 0.55 | $ 1.08 | $ 1.73 |
Consolidated statements of comp
Consolidated statements of comprehensive income (loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 8,388 | $ 1,207 | $ 29,380 | $ 31,581 |
Other comprehensive income, net of tax: | ||||
Net change in unrealized gain (loss) in available-for-sale securities, net of taxes of $170, $38, $1,577 and $807 | 265 | (1,524) | 2,446 | 10,246 |
Reclassification adjustment for gain (loss) on sale of securities included in net income, net of tax expenses of $100, $57, $111 and $298 | (154) | (359) | (173) | (4,109) |
Net change in unrealized gain in hedging activities, net of taxes of $111, $0, $111, and $0 | 172 | 172 | ||
Comprehensive income (loss) | $ 8,671 | $ (676) | $ 31,825 | $ 37,718 |
Consolidated statements of com6
Consolidated statements of comprehensive income (loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net change in unrealized gain (loss) in available for sale securities, tax | $ 170 | $ 38 | $ 1,577 | $ 807 |
Reclassification adjustment for gain (loss) on sale of securities included in net income, tax | 100 | 57 | 111 | 298 |
Net change in unrealized gain in hedging activities, tax | $ 111 | $ 0 | $ 111 | $ 0 |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net |
Balance at Dec. 31, 2015 | $ 236,674 | $ 17,180 | $ 94,544 | $ 122,493 | $ 2,457 |
Net income | 31,581 | 31,581 | |||
Other comprehensive income, net of taxes | 6,137 | 6,137 | |||
Common stock issued, net of offering costs | 115,525 | 6,765 | 108,760 | ||
Conversion of cash-settled to stock-settled for, Equity based incentive plans | 2,388 | 2,388 | |||
Conversion of cash-settled to stock-settled for, Deferred compensation plan | 3,000 | 3,000 | |||
Stock based compensation expense | 3,373 | 3,373 | |||
Restricted stock units vested and distributed, net of shares withheld for taxes | (270) | 30 | (300) | ||
Cash dividends paid | (69,300) | (69,300) | |||
Balance at Sep. 30, 2016 | 329,108 | 23,975 | 211,765 | 84,774 | 8,594 |
Balance at Dec. 31, 2016 | 330,498 | 24,108 | 213,480 | 93,784 | (874) |
Initial fair value election on mortgage servicing rights, net of taxes of $396 (See Note 1) | 615 | 615 | |||
Net income | 29,380 | 29,380 | |||
Other comprehensive income, net of taxes | 2,445 | 2,445 | |||
Common stock issued, net of offering costs | 152,721 | 4,807 | 147,914 | ||
Common stock issued in conjunction with acquisition of the Clayton Banks, net of issuance costs (See Note 2) | 52,284 | 1,521 | 50,763 | ||
Stock based compensation expense | 4,808 | 9 | 4,799 | ||
Restricted stock units vested and distributed, net of shares withheld for taxes | (858) | 63 | (921) | ||
Shares issued under employee stock purchase program | 635 | 19 | 616 | ||
Balance at Sep. 30, 2017 | $ 572,528 | $ 30,527 | $ 416,651 | $ 123,779 | $ 1,571 |
Consolidated statements of cha8
Consolidated statements of changes in shareholders' equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||
Cash dividends paid, per share | $ 4.03 | |
Fair Value Election on Mortgage Servicing Rights Retained Earnings Adjustment, Tax | $ 396 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 29,380 | $ 31,581 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation expense | 3,090 | 2,994 |
Amortization of core deposit intangibles | 1,073 | 1,605 |
Capitalization of mortgage servicing rights | (45,624) | (30,890) |
Amortization of mortgage servicing rights | 6,221 | |
Change in fair value of mortgage servicing rights | 3,724 | |
Impairment of mortgage servicing rights | 8,089 | |
Stock-based compensation expense | 4,808 | 3,373 |
Provision for loan losses | (1,906) | (727) |
Provision for mortgage loan repurchases | 794 | 1,173 |
Accretion of yield on purchased loans | (3,545) | (3,195) |
Accretion of discounts and amortization of premiums on securities, net | 1,948 | 1,471 |
Gain from securities, net | (284) | (4,407) |
Originations of loans held for sale | (4,612,745) | (3,121,252) |
Proceeds from sale of loans held for sale | 4,711,364 | 2,987,252 |
Gain on sale and change in fair value of loans held for sale | (80,929) | (85,154) |
Gain on sale of mortgage servicing rights | (17) | |
Net gain or write-downs of other real estate owned | (846) | (1,504) |
Gain (loss) on other assets | 350 | (24) |
Provision for deferred income taxes | 8,226 | 14,239 |
Changes in: | ||
Other assets and interest receivable | 4,912 | (47,046) |
Accrued expenses and other liabilities | 19,210 | 10,504 |
Net cash provided by (used in) operating activities | 42,983 | (225,697) |
Activity in available-for-sale securities: | ||
Sales | 94,743 | 270,663 |
Maturities, prepayments and calls | 63,167 | 78,661 |
Purchases | (57,441) | (244,221) |
Net increase in loans | (191,033) | (85,209) |
Proceeds from sale of mortgage servicing rights | 11,952 | |
Purchases of premises and equipment | (2,898) | (3,683) |
Proceeds from the sale of premises and equipment | 39 | |
Proceeds from the sale of other real estate owned | 4,082 | 6,558 |
Net cash paid in business combination | (135,141) | |
Net cash (used in) provided by investing activities | (212,530) | 22,769 |
Cash flows from financing activities: | ||
Net increase in demand and savings deposits | 90,247 | 128,133 |
Net (decrease) increase in time deposits | (22,789) | 73,465 |
Net decrease in securities sold under agreements to repurchase | (7,005) | (75,996) |
(Decrease) increase in short-term borrowings | (113,467) | 62,000 |
Increase (decrease) in long-term debt | 30,043 | (11,325) |
Net proceeds from sale of common stock | 153,356 | 115,525 |
Dividends paid | (69,300) | |
Net cash provided by financing activities | 130,385 | 222,502 |
Net change in cash and cash equivalents | (39,162) | 19,574 |
Cash and cash equivalents at beginning of the period | 136,327 | 97,723 |
Cash and cash equivalents at end of the period | 97,165 | 117,297 |
Supplemental cash flow information: | ||
Interest paid | 9,652 | 7,041 |
Taxes paid | 21,130 | 1,307 |
Supplemental noncash disclosures: | ||
Transfers from loans to other real estate owned | 2,958 | 2,636 |
Transfers from other real estate owned to loans | 201 | 259 |
Transfers from loans held for sale to loans | 9,808 | 5,749 |
Rebooked GNMA loans under optional repurchase program | 13,575 | |
Stock consideration paid in business combination | 52,284 | |
Conversion of cash-settled to stock settled compensation | 5,388 | |
Trade date receivable - securities | $ 32,648 | |
Fair value election of mortgage servicing rights | $ 1,011 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | Note (1)—Basis of presentation: FB Financial Corporation (the “Company”) is a bank holding company, headquartered in Nashville, Tennessee. The Company operates through its wholly-owned bank subsidiary, FirstBank (the “Bank”), with 63 full-service bank branches across Tennessee, north Alabama and north Georgia, and a national mortgage business with office locations across the Southeast. The consolidated financial statements, including the notes thereto of the Company, formerly First South Bancorp, Inc. until the Company name was changed in 2016, have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) interim reporting requirements, and therefore do not include all information and notes included in the annual consolidated financial statements in conformity with GAAP. These interim consolidated financial statements and notes thereto should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K. The unaudited consolidated financial statements include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of the results for the interim periods. The results for interim periods are not necessarily indicative of results for a full year. The accompanying consolidated financial statements have been prepared in conformity with GAAP and general banking industry. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, and the determination of the fair value of financial instruments, including investment securities, derivatives and mortgage servicing rights. In connection with the determination of the estimated fair value of other real estate owned and impaired loans, management obtains independent appraisals for significant properties. Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or shareholders’ equity. On June 28, 2016, the Company declared a 100-for-1 stock split, increasing the number of issued and authorized shares from 171,800 to 17,180,000 and 250,000 to 25,000,000, respectively. Additional shares issued as a result of the stock split were distributed immediately upon issuance to the shareholder on that date. Share and per share amounts included in the consolidated financial statements and notes thereto reflect the effect of the split for all periods presented. Additionally, in July 2016, the Company increased the number of authorized shares from 25,000,000 to 75,000,000. On August 19, 2016, the Company subsidiary filed a Registration Statement on Form S-1 (the “Registration Statement”) with the Securities and Exchange Commission (“SEC”) which was declared effective by the SEC on September 15, 2016. The Company sold and issued 6,764,704 shares of common stock at $19 per share pursuant to that Registration Statement. Total proceeds received by the Company, net of offering costs, were approximately $115,525. The proceeds were used to fund a $55,000 distribution to the majority shareholder and to repay all $10,075 aggregate principal amount of subordinated notes held by the majority shareholder, plus any accrued and unpaid interest thereon. The Company terminated its S-Corporation status and became a taxable corporate entity (“C Corporation”) on September 16, 2016 in connection with its initial public offering. Pro forma amounts for income tax expense and basic and diluted earnings per share have been presented assuming the Company’s pro forma combined effective tax rate of 37.21% and 37.33% for the three and nine months ended September 30, 2016, respectively, as if it had been a C Corporation during that period. On May 26, 2017, the Company entered into Securities Purchase Agreements (the “Securities Purchase Agreements”) with accredited investors (the “Purchasers”) pursuant to which the Company agreed to sell in a private placement (the “Private Placement”) an aggregate of 4,806,710 shares of the Company’s common stock, par value $1.00 (the “Private Placement Shares”), at a purchase price of $33.00 per share. Total proceeds received from the sale of such Private Placement Shares, net of placement agent and other offering costs of $5,901, were approximately $152,721. Effective July 31, 2017, the Bank completed its previously announced acquisitions of Clayton Bank and Trust and American City Bank headquartered in Knoxville, Tennessee and Tullahoma, Tennessee, respectively. See Note 2, “Mergers and acquisitions” in the Notes to the consolidated unaudited financial statements for further details regarding acquisitions. The Company has evaluated, for consideration of recognition or disclosure, subsequent events that occurred through the date of issuance of these financial statements. The Company has determined that there were no subsequent events that occurred after September 30, 2017, but prior to the issuance of these financial statements that would have a material impact on the Company’s consolidated financial statements. As of September 30, 2017, the Company is considered a “controlled company” and is controlled by the Company’s Executive Chairman and former sole shareholder, James W. Ayers. Additionally, the Company qualifies as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). Basic earnings per common share are net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Unearned compensation plus assumed proceeds from the applicable tax benefits are used to repurchase common stock at the average market price. The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic earnings per share calculation: Net income $ 8,388 $ 1,207 $ 29,380 $ 31,581 Weighted-average basic shares outstanding 30,004,952 18,259,128 26,649,942 17,542,335 Basic earnings per share $ 0.28 $ 0.07 $ 1.10 $ 1.80 Diluted earnings per share: Net income $ 8,388 $ 1,207 $ 29,380 $ 31,581 Weighted-average basic shares outstanding 30,004,952 18,259,128 26,649,942 17,542,335 Average diluted common shares outstanding 599,585 73,064 548,431 24,532 Weighted-average diluted shares outstanding 30,604,537 18,332,192 27,198,373 17,566,867 Diluted earnings per share $ 0.27 $ 0.07 $ 1.08 $ 1.80 Pro forma earnings per share: Pro forma net income $ 8,388 $ 10,033 $ 29,380 $ 30,412 Weighted-average basic shares outstanding 30,004,952 18,259,128 26,649,942 17,542,335 Pro forma basic earnings per share $ 0.28 $ 0.55 $ 1.10 $ 1.73 Pro forma diluted earnings per share: Pro forma net income $ 8,388 $ 10,033 $ 29,380 $ 30,412 Weighted-average diluted shares outstanding 30,604,537 18,332,192 27,198,373 17,566,867 Pro forma diluted earnings per share $ 0.27 $ 0.55 $ 1.08 $ 1.73 Except as set forth below, the Company did not adopt any new accounting policies that were not disclosed in the Company’s 2016 audited financial statements included on Form 10-K. Rebooked GNMA loans included in loans held for sale Government National Mortgage Association (GNMA) optional repurchase programs allow financial institutions to buy back individual delinquent mortgage loans that meet certain criteria from the securitized loan pool for which the institution provides servicing and was the original transferor. At the servicer’s option and without GNMA’s prior authorization, the servicer may repurchase such a delinquent loan for an amount equal to 100 percent of the remaining principal balance of the loan. Under FASB ASC Topic 860, “Transfers and Servicing,” this buy-back option is considered a conditional option until the delinquency criteria are met, at which time the option becomes unconditional. When the Company is deemed to have regained effective control over these loans under the unconditional buy-back option, the loans can no longer be reported as sold and must be brought back onto the balance sheet as loans held for sale, regardless of whether the Company intends to exercise the buy-back option. These loans are reported as loans held for sale with the offsetting liability being reported in other liabilities. At September 30, 2017, rebooked GNMA loans held for sale amounted to $13,575. Amounts related to prior periods were not significant. The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option. Mortgage servicing rights As of January 1, 2017, the Company elected to account for its mortgage servicing rights under the fair value option as permitted under ASC 860-50-35, Transfers and Servicing There are currently no new accounting standards that have been issued or updates to management’s evaluation that will have a significant impact on the Company’s financial position, results of operations or cash flows upon adoption other than what is included below that were not disclosed in the Company’s 2016 audited financial statements included on Form 10-K. In May 2014, the FASB issued an update to Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers” (FASB Topic 606). The guidance in this update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts or lease contracts). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The guidance provides steps to follow to achieve the core principle. An entity should disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Qualitative and quantitative information is required about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. The amendments in this update are effective for interim and annual reporting periods beginning after December 15, 2017. The Company plans to adopt these amendments during the first quarter of 2018 using the modified retrospective method of application. Management’s evaluation of ASU 2014-09 is ongoing and not complete. FASB has issued, and may issue in the future, interpretative guidance which may cause our evaluation to change. Based on our evaluation under the current guidance, we estimate that substantially all of our interest income and non-interest income will not be impacted by the adoption of ASU 2014-09 because either the revenue from those contracts with customers is covered by other guidance in U.S. GAAP or the revenue recognition outcomes anticipated with the adoption of ASU 2014-09 will likely be similar to our current revenue recognition practices. In addition, we are reviewing our business processes, systems and controls to support recognition and disclosures under the new standard. ASU 2014-09 is not expected to have a material effect on our consolidated financial statements. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities." The amendments in this ASU shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount, which continue to be amortized to maturity. Public business entities must prospectively apply the amendments in this ASU to annual periods beginning after December 15, 2018, including interim periods. The Company does not expect this update to have a material impact on its consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, “Stock Compensation - Scope of Modification Accounting (Topic 718): Scope of Modification Accounting.” The amendments in this ASU provide guidance on when changes to the terms or conditions of a share-based payment award are to be accounted for as modifications. Under ASU 2017-09, entities are not required to apply modification accounting to a share-based payment award when the award’s fair value, vesting conditions, and classification as an entity or a liability instrument remain the same after the change. ASU 2017-09 is effective for all entities beginning after December 15, 2017 including interim periods within the fiscal year. Early adoption is permitted. Upon adoption, the ASU will be applied prospectively to awards modified on or after the adoption date. The Company is in the process of evaluating the impact that adoption of this update may have on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU make more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. The amendments will be effective for the Company for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The Company is currently planning on early adopting the standard and continuing the evaluation of the impact of this update on its consolidated financial statements. |
Mergers and acquisitions
Mergers and acquisitions | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Mergers and acquisitions | Note (2)—Mergers and acquisitions: Clayton Bank and Trust and American City Bank On July 31, 2017, the Bank completed its previously-announced merger with Clayton Bank and Trust (“CBT”) and American City Bank (“ACB” and together with CBT, the “Clayton Banks”), pursuant to the Stock Purchase Agreement with Clayton HC, Inc., a Tennessee corporation (“Seller”), and James L. Clayton, the majority shareholder of Seller, dated February 8, 2017, as amended on May 26, 2017, with a purchase price of approximately $236,484. The Company issued 1,521,200 shares of common stock and paid cash of $184,200 to purchase all of the outstanding shares of the Clayton Banks. At closing, the Clayton Banks merged with and into FirstBank, with FirstBank continuing as the surviving banking entity. Prior to the merger, the Clayton Banks operated 18 banking locations across Tennessee. The merger with the Clayton Banks has allowed the Company to further its strategic initiatives by expanding its geographic footprint in Knoxville and other Tennessee markets and accelerates the growth of the Company’s Banking segment. Goodwill of $92,043 recorded in connection with the transaction resulted primarily from anticipated synergies arising from the combination of certain operational areas of the Clayton Banks and the Company as well as the purchase premium inherent to buying a complete and successful banking operation. Goodwill is included in the Banking segment as substantially all of the operations resulting from the Clayton Banks merger is included in the Banking segment. In connection with the transaction, the Company incurred $15,711 and $16,965 in merger and conversion expenses during the three and nine months ended September 30, 2017, respectively. For income tax purposes, the merger with the Clayton Banks was treated as an asset purchase. As an asset purchase for income tax purposes, the carrying value of assets and liabilities for the Clayton Banks are the same for both financial reporting and income tax purposes; therefore, no deferred taxes were recorded at the date of acquisition. Additionally, this treatment allows for the deductibility of the goodwill and core deposit intangible for income tax purposes over 15 years. The Company accounted for the Clayton Banks transaction under the acquisition method under ASC Topic 805. Accordingly, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of the merger. The Company is finalizing the fair value of net assets acquired and as such, the purchase price allocation related to loans, other identifiable intangibles, other assets and assumed liabilities. Accordingly, the determination of goodwill is preliminary and may change. The Company’s operating results for 2017 include the operating results of the acquired assets and assumed liabilities of the Clayton Banks subsequent to the acquisition date. The following tables present the preliminary fair value of net assets acquired as of the July 31, 2017 acquisition date and the consideration paid and an allocation of the purchase price to net assets acquired: As of July 31, 2017 Combined Clayton Banks Historical Cost Basis (1) Fair Value Adjustments As Recorded by FB Financial Corporation Assets Cash and cash equivalents $ 49,059 $ — $ 49,059 Investment securities 59,108 385 59,493 FHLB stock 3,409 — 3,409 Loans 1,075,441 (14,933 ) 1,060,508 Allowance for loan losses (19,985 ) 19,985 — Premises and equipment 15,011 4,469 19,480 Other real estate owned 6,244 644 6,888 Core deposit intangible — 9,060 9,060 Other assets 15,322 (9,184 ) 6,138 Total assets $ 1,203,609 $ 10,426 $ 1,214,035 Liabilities Interest-bearing deposits $ 669,745 $ 309 $ 670,054 Non-interest bearing deposits 309,464 — 309,464 Borrowings 84,110 721 84,831 Accrued expenses and other liabilities 4,577 668 5,245 Total liabilities $ 1,067,896 $ 1,698 $ 1,069,594 Net assets acquired $ 135,713 $ 8,728 $ 144,441 Purchase price: Equity consideration Common stock issued 1,521,200 Price per share as of July 31, 2017 $ 34.37 Total equity consideration $ 52,284 Cash consideration 184,200 (2) Total consideration paid $ 236,484 Preliminary allocation of consideration paid: Fair value of net assets acquired including identifiable intangible assets $ 144,441 Goodwill 92,043 Total consideration paid $ 236,484 (1) Amounts include certain reclassifications of opening balances to conform to the Company’s presentation. (2) Amount was deposited into an interest-bearing account with the Bank of which $34,200 was included in cash and cash equivalents and interest-bearing deposits in the above schedule of net assets acquired as of July, 31, 2017. The following table presents the fair value of acquired purchase credit impaired loans accounted for in accordance with ASC 310-30 from the Clayton Banks as of the July 31, 2017 acquisition date: July 31, 2017 Contractually-required principal and interest $ 112,584 Nonaccretable difference 12,117 Cash flows expected to be collected 100,467 Accretable yield 18,457 Fair value $ 82,010 The following unaudited pro forma condensed consolidated financial information presents the results of operations for the three and nine months ended September 30, 2017 and 2016 as though the merger had been completed as of January 1, 2016. The unaudited estimated pro forma information combines the historical results of the Clayton Banks with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the periods presented. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2016 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Net interest income $ 49,408 $ 42,971 $ 142,972 $ 126,115 Total revenues $ 88,013 $ 88,568 $ 250,676 $ 243,877 Net income $ 11,719 $ 15,402 $ 50,426 $ 49,434 Northwest Georgia Bank On September 18, 2015, the Bank completed its acquisition of Northwest Georgia Bank (“NWGB”), a bank headquartered in Ringgold, Georgia, pursuant to that certain Agreement and Plan of Merger dated April 27, 2015 by and between the Bank and NWGB. Pursuant to the Agreement and Plan of Merger, NWGB was merged with and into the Bank, with the Bank as the surviving entity. Prior to the acquisition, NWGB operated six banking locations in Georgia and Tennessee. The acquisition of NWGB allowed the Company to further its strategic initiatives by expanding its geographic footprint into certain markets of Georgia and Tennessee. The Company acquired NWGB in a $1,500 cash purchase and recorded a bargain purchase gain of $2,794 and a core deposit intangible asset of $4,931 in connection with the transaction. During the three and nine months ended September 30, 2016, the Company incurred |
Investment securities
Investment securities | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Investment securities | Note (3)—Investment securities: The amortized cost of securities and their fair values at September 30, 2017 and December 31, 2016 are shown below: September 30, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 999 $ — $ (7 ) $ 992 Mortgage-backed securities - residential 423,174 586 (4,966 ) 418,794 Municipals, tax exempt 104,957 2,657 (664 ) 106,950 Treasury securities 8,836 — (17 ) 8,819 Total debt securities 537,966 3,243 (5,654 ) 535,555 Equity securities 7,853 1 (127 ) 7,727 Total securities available-for-sale $ 545,819 $ 3,244 $ (5,781 ) $ 543,282 December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 998 $ — $ (13 ) $ 985 Mortgage-backed securities - residential 450,874 939 (7,905 ) 443,908 Municipals, tax exempt 116,034 3,003 (2,114 ) 116,923 Treasury securities 11,809 — (52 ) 11,757 Total debt securities 579,715 3,942 (10,084 ) 573,573 Equity securities 8,744 1 (135 ) 8,610 Total securities available-for-sale $ 588,459 $ 3,943 $ (10,219 ) $ 582,183 Securities pledged at September 30, 2017 and December 31, 2016 had a carrying amount of $349,685 and $390,814, respectively, and were pledged to secure Federal Home Loan Bank advances, a Federal Reserve Bank line of credit, public deposits and repurchase agreements. The amortized cost and fair value of debt securities by contractual maturity at September 30, 2017 and December 31, 2016 are shown below. Maturities may differ from contractual maturities in mortgage-backed securities because the mortgage underlying the security may be called or repaid without any penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. September 30, 2017 December 31, 2016 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 2,036 $ 2,037 $ 9,290 $ 9,352 Due in one to five years 27,722 28,535 25,520 26,340 Due in five to ten years 17,362 17,851 31,122 32,248 Due in over ten years 67,672 68,338 62,909 61,725 114,792 116,761 128,841 129,665 Mortgage-backed securities - residential 423,174 418,794 450,874 443,908 Total debt securities $ 537,966 $ 535,555 $ 579,715 $ 573,573 Sales and impairment of available-for-sale securities were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales $ 82,585 $ 1,668 $ 94,743 $ 270,663 Gross realized gains 1,199 416 1,276 4,755 Gross realized losses — — 48 348 Other-than-temporary-impairment 945 — 945 — The Company also recognized $1 in gains related to the early call of available for sale securities during the nine months ended September 30, 2017. The following tables show gross unrealized losses at September 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: September 30, 2017 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ — $ — $ 993 $ 7 $ 993 $ 7 Mortgage-backed securities - residential 354,240 3,800 40,115 1,166 394,355 4,966 Municipals, tax exempt 35,240 493 4,155 171 39,395 664 Treasury securities 8,819 17 — — 8,819 $ 17 Total debt securities 398,299 4,310 45,263 1,344 443,562 5,654 Equity securities — — 3,054 127 3,054 127 $ 398,299 $ 4,310 $ 48,317 $ 1,471 $ 446,616 $ 5,781 December 31, 2016 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 985 $ 13 $ — $ — $ 985 $ 13 Mortgage-backed securities - residential 390,595 7,230 19,073 675 409,668 7,905 Municipals, tax exempt 43,132 2,114 — — 43,132 2,114 Treasury securities 10,256 52 — — 10,256 52 Total debt securities 444,968 9,409 19,073 675 464,041 10,084 Equity securities — — 3,126 135 3,126 135 $ 444,968 $ 9,409 $ 22,199 $ 810 $ 467,167 $ 10,219 As of September 30, 2017 and December 31, 2016, the Company’s securities portfolio consisted of 288 and 329 securities, 134 and 151 of which were in an unrealized loss position, respectively. The Company evaluates securities with unrealized losses for other-than-temporary impairment (OTTI) on a quarterly basis. Impairment is assessed at the individual security level. The Company considers an investment security impaired if the fair value of the security is less than its cost or amortized cost basis. For debt securities, the unrealized losses associated with these investment securities are primarily driven by interest rates and are not due to the credit quality of the securities. The Company currently does not intend to sell those investments with unrealized losses, and it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. When impairment of an equity security is considered to be other-than-temporary, the security is written down to its fair value and an impairment loss is recorded as a loss within noninterest income. The Company evaluated the near-term prospects of the equity investments in relation to the severity and duration of the impairment. Based on that evaluation, the Company concluded that it was probable that there had been adverse cash flows for one of the equity investments held. Additionally, the Company does not intend to hold the security long-term and it is unlikely the fair value would be recovered. As such, a credit impairment loss of $945 was recognized as of September 30, 2017. Changes in the amount of credit related losses recognized in earnings for which OTTI has been recognized are as follows: Balance as of January 1, 2017 $ — Additions related to credit losses for which OTTI was not previously recognized (945 ) Reductions for securities sold during the period — Reductions for securities where there is an intent to sale or requirement to sale — Increases in credit loss for which OTTI was previously recognized — Reductions for increases in cash flows expected to be collected — Balance as of September 30, 2017 $ (945 ) |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans and allowance for loan losses | Note (4)—Loans and allowance for loan losses: Loans outstanding at September 30, 2017 and December 31, 2016, by major lending classification are as follows: September 30, December 31, 2017 2016 Commercial and industrial $ 731,588 $ 386,233 Construction 435,414 245,905 Residential real estate: 1-to-4 family mortgage 459,467 294,924 Residential line of credit 188,392 177,190 Multi-family mortgage 74,004 44,977 Commercial real estate: Owner occupied 473,395 357,346 Non-owner occupied 521,416 267,902 Consumer and other 230,886 74,307 Gross loans 3,114,562 1,848,784 Less: Allowance for loan losses (23,482 ) (21,747 ) Net loans $ 3,091,080 $ 1,827,037 As of September 30, 2017 and December 31, 2016, $522,389 and $565,717, respectively, of 1-to-4 family mortgage loans, loans held for sale and multi-family mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line. As of September 30, 2017 and December 31, 2016, $690,113 and $1,072,118, respectively, of commercial and industrial , construction, residential real estate, commercial real estate, and consumer and other loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program. The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the three and nine months ended September 30, 2017 and 2016 (in thousands): Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Three Months Ended September 30, 2017 Beginning balance - June 30, 2017 $ 5,440 $ 5,579 $ 2,974 $ 1,445 $ 513 $ 3,983 $ 2,452 $ 861 $ 23,247 Provision for loan losses 315 (476 ) (269 ) (565 ) 10 65 24 112 (784 ) Recoveries of loans previously charged-off 200 1,022 86 157 — 24 1 104 1,594 Loans charged off (221 ) — (32 ) (9 ) — (64 ) — (249 ) (575 ) Ending balance - September 30, 2017 $ 5,734 $ 6,125 $ 2,759 $ 1,028 $ 523 $ 4,008 $ 2,477 $ 828 $ 23,482 Nine Months Ended September 30, 2017 Beginning balance - December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 Provision for loan losses (848 ) 111 (409 ) (749 ) 19 731 (1,184 ) 423 (1,906 ) Recoveries of loans previously charged-off 1,794 1,080 126 368 — 39 1,642 400 5,449 Loans charged off (521 ) (6 ) (155 ) (204 ) — (64 ) — (858 ) (1,808 ) Ending balance - September 30, 2017 $ 5,734 $ 6,125 $ 2,759 $ 1,028 $ 523 $ 4,008 $ 2,477 $ 828 $ 23,482 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Three Months Ended September 30, 2016 Beginning balance - June 30, 2016 $ 5,924 $ 4,373 $ 3,611 $ 1,944 $ 453 $ 3,764 $ 2,634 $ 1,031 $ 23,734 Provision for loan losses 381 66 48 (126 ) 158 (83 ) (367 ) (6 ) 71 Recoveries of loans previously charged-off 8 32 2 36 — 4 22 95 199 Loans charged off (358 ) — (166 ) (29 ) — — — (161 ) (714 ) Ending balance - September 30, 2016 $ 5,955 $ 4,471 $ 3,495 $ 1,825 $ 611 $ 3,685 $ 2,289 $ 959 $ 23,290 Nine Months Ended September 30, 2016 Beginning balance - December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 Provision for loan losses 896 (807 ) (571 ) (415 ) 300 81 (360 ) 149 (727 ) Recoveries of loans previously charged-off 480 137 109 143 — 15 27 266 1,177 Loans charged off (556 ) (2 ) (219 ) (104 ) — (93 ) — (646 ) (1,620 ) Ending balance - September 30, 2016 $ 5,955 $ 4,471 $ 3,495 $ 1,825 $ 611 $ 3,685 $ 2,289 $ 959 $ 23,290 The following table provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment and loans collectively evaluated for impairment as of September 30, 2017 and December 31, 2016: September 30, 2017 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Amount of allowance allocated to: Individually evaluated for impairment $ 15 $ — $ 24 $ — $ — $ 352 $ 43 $ 11 $ 445 Collectively evaluated for impairment 5,719 6,125 2,735 1,028 523 3,656 2,434 803 23,023 Acquired with deteriorated credit quality — — — — — — — 14 14 Ending balance - September 30, 2017 $ 5,734 $ 6,125 $ 2,759 $ 1,028 $ 523 $ 4,008 $ 2,477 $ 828 $ 23,482 December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Amount of allowance allocated to: Individually evaluated for impairment $ 135 $ — $ 23 $ — $ — $ 113 $ 242 $ — $ 513 Collectively evaluated for impairment 5,174 4,940 3,174 1,613 504 3,189 1,777 863 21,234 Acquired with deteriorated credit quality — — — — — — — — — Ending balance - December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 The following table provides the amount of loans by loan category broken between loans individually evaluated for impairment and loans collectively evaluated for impairment as of September 30, 2017 and December 31, 2016: September 30, 2017 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 826 $ 1,295 $ 1,272 $ — $ 988 $ 2,785 $ 1,732 $ 23 $ 8,921 Collectively evaluated for impairment 727,885 426,039 433,544 188,392 72,994 459,537 500,713 204,082 3,013,186 Acquired with deteriorated credit quality 2,877 8,080 24,651 — 22 11,073 18,971 26,781 92,455 Ending balance - September 30, 2017 $ 731,588 $ 435,414 $ 459,467 $ 188,392 $ 74,004 $ 473,395 $ 521,416 $ 230,886 $ 3,114,562 December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 1,476 $ 2,686 $ 2,471 $ 311 $ 1,027 $ 2,752 $ 2,201 $ 27 $ 12,951 Collectively evaluated for impairment 384,279 238,900 290,346 176,879 43,922 350,812 260,361 74,276 1,819,775 Acquired with deteriorated credit quality 478 4,319 2,107 — 28 3,782 5,340 4 16,058 Ending balance - December 31, 2016 $ 386,233 $ 245,905 $ 294,924 $ 177,190 $ 44,977 $ 357,346 $ 267,902 $ 74,307 $ 1,848,784 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The Company’s risk rating definitions include: Watch. Loans rated as watch includes loans in which management believes conditions have occurred, or may occur, which could result in the loan being downgraded to a worse rated category. Also included in watch are loans rated as special mention, which 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. Substandard. Loans rated as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so rated have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Also included in this category are loans considered doubtful, which have all the weaknesses previously described and management believes those weaknesses may make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above are considered to be pass rated loans. The following table shows credit quality indicators by portfolio class at September 30, 2017 and December 31, 2016: September 30, 2017 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 671,566 $ 53,388 $ 3,757 $ 728,711 Construction 419,219 6,402 1,713 427,334 Residential real estate: 1-to-4 family mortgage 421,020 6,548 7,248 434,816 Residential line of credit 185,892 1,461 1,039 188,392 Multi-family mortgage 72,214 142 1,626 73,982 Commercial real estate: Owner occupied 429,691 27,960 4,671 462,322 Non-owner occupied 486,487 13,967 1,991 502,445 Consumer and other 202,697 930 478 204,105 Total loans, excluding purchased credit impaired loans $ 2,888,786 $ 110,798 $ 22,523 $ 3,022,107 Purchased credit impaired loans Commercial and industrial $ — $ 1,665 $ 1,212 $ 2,877 Construction — 3,383 4,697 8,080 Residential real estate: 1-to-4 family mortgage — 21,127 3,524 24,651 Residential line of credit — — — — Multi-family mortgage — — 22 22 Commercial real estate: Owner occupied — 3,294 7,779 11,073 Non-owner occupied — 7,740 11,231 18,971 Consumer and other — 18,181 8,600 26,781 Total purchased credit impaired loans $ — $ 55,390 $ 37,065 $ 92,455 Total loans $ 2,888,786 $ 166,188 $ 59,588 $ 3,114,562 December 31, 2016 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 351,046 $ 31,074 $ 3,635 $ 385,755 Construction 236,588 4,612 386 241,586 Residential real estate: 1-to-4 family mortgage 277,948 6,945 7,924 292,817 Residential line of credit 173,011 1,875 2,304 177,190 Multi-family mortgage 43,770 152 1,027 44,949 Commercial real estate: Owner occupied 338,698 10,459 4,407 353,564 Non-owner occupied 249,877 10,273 2,412 262,562 Consumer and other 73,454 417 432 74,303 Total loans, excluding purchased credit impaired loans $ 1,744,392 $ 65,807 $ 22,527 $ 1,832,726 Purchased credit impaired loans Commercial and industrial $ — $ — $ 478 $ 478 Construction — — 4,319 4,319 Residential real estate: 1-to-4 family mortgage — — 2,107 2,107 Residential line of credit — — — — Multi-family mortgage — — 28 28 Commercial real estate: Owner occupied — — 3,782 3,782 Non-owner occupied — — 5,340 5,340 Consumer and other — — 4 4 Total purchased credit impaired loans $ — $ — $ 16,058 $ 16,058 Total loans $ 1,744,392 $ 65,807 $ 38,585 $ 1,848,784 Changes in accretable yield on purchase credit impaired loans were as follows: Purchased Credit Impaired Accretable yield Balance at June 30, 2017 $ (1,845 ) Additions through the acquisition of the Clayton Banks (18,457 ) Principal reductions/ pay-offs (690 ) Recoveries — Accretion 1,646 Balance at September 30, 2017 $ (19,346 ) Balance at June 30, 2016 $ (1,248 ) Principal reductions/ pay-offs (381 ) Accretion 590 Balance at September 30, 2016 $ (1,039 ) Purchased Credit Impaired Accretable yield Balance at December 31, 2016 $ (2,444 ) Additions through the acquisition of the Clayton Banks (18,457 ) Principal reductions/ pay-offs (1,680 ) Recoveries (23 ) Accretion 3,258 Balance at September 30, 2017 $ (19,346 ) Balance at December 31, 2015 $ (1,637 ) Principal reductions/ pay-offs (1,839 ) Accretion 2,437 Balance at September 30, 2016 $ (1,039 ) PCI loans are considered past due or delinquent when the contractual principal or interest due in accordance with the terms of the loan agreement remains unpaid after the due date of the scheduled payment. However, these loans are considered to be performing, even though they may be contractually past due, as any non-payment of contractual principal or interest is considered in the periodic re-estimation of expected cash flows and is included in the resulting recognition of current period covered loan loss provision or future period yield adjustments. The accrual of interest is discontinued on PCI loans if management can no longer reliably estimate future cash flows on the loan. No PCI loans were classified as nonaccrual at September 30, 2017 or December 31, 2016 as the carrying value of the respective loan or pool of loans cash flows were considered estimable and probable of collection. Therefore, interest revenue, through accretion of the difference between the carrying value of the loans and the expected cash flows, is being recognized on all PCI loans. Accretion of interest income amounting to $1,646 and $3,258 was recognized on purchased credit impaired loans during the three and nine months ended September 30, 2017 compared with $590 and $2,437 for the three and nine months ended September 30, 2016. The total purchase accounting contribution through accretion for all purchased loans was $1,537 and $3,545 for three and nine months ended September 30, 2017, respectively, compared with $590 and $2,437 for the three and nine months ended September 30, 2016, respectively. Nonperforming loans include loans that are no longer accruing interest (non-accrual loans) and loans past due ninety or more days and still accruing interest. Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. The following table provides the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest, loans current on payments accruing interest and purchased credit impaired loans by category at September 30, 2017 and December 31, 2016: September 30, 2017 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 388 $ 37 $ 469 $ 727,817 $ 2,877 $ 731,588 Construction 596 44 239 426,455 8,080 435,414 Residential real estate: 1-to-4 family mortgage 3,600 520 2,257 428,439 24,651 459,467 Residential line of credit 932 250 529 186,681 — 188,392 Multi-family mortgage — 87 — 73,895 22 74,004 Commercial real estate: Owner occupied 2,520 134 2,308 457,360 11,073 473,395 Non-owner occupied — — 1,916 500,529 18,971 521,416 Consumer and other 2,326 166 31 201,582 26,781 230,886 Total $ 10,362 $ 1,238 $ 7,749 $ 3,002,758 $ 92,455 $ 3,114,562 December 31, 2016 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 262 $ 127 $ 1,297 $ 384,069 $ 478 $ 386,233 Construction 441 17 254 240,874 4,319 245,905 Residential real estate: 1-to-4 family mortgage 3,130 697 2,289 286,701 2,107 294,924 Residential line of credit 1,139 433 601 175,017 — 177,190 Multi-family mortgage — — — 44,949 28 44,977 Commercial real estate: Owner occupied 186 — 2,007 351,371 3,782 357,346 Non-owner occupied 158 — 2,251 260,153 5,340 267,902 Consumer and other 433 55 30 73,785 4 74,307 Total $ 5,749 $ 1,329 $ 8,729 $ 1,816,919 $ 16,058 $ 1,848,784 Impaired loans recognized in conformity with ASC 310 at September 30, 2017 and December 31, 2016, segregated by class, were as follows: September 30, 2017 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 53 $ 53 $ 15 Construction — — — Residential real estate: 1-to-4 family mortgage 199 501 24 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 1,077 1,123 352 Non-owner occupied 148 151 43 Consumer and other 22 22 11 Total $ 1,499 $ 1,850 $ 445 With no related allowance recorded Commercial and industrial $ 773 $ 977 $ — Construction 1,295 1,315 — Residential real estate: 1-to-4 family mortgage 1,073 1,077 — Residential line of credit — — — Multi-family mortgage 988 988 — Commercial real estate: Owner occupied 1,708 2,183 — Non-owner occupied 1,584 2,856 — Consumer and other 1 1 — Total $ 7,422 $ 9,397 $ — Total impaired loans $ 8,921 $ 11,247 $ 445 December 31, 2016 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 854 $ 854 $ 135 Construction — — — Residential real estate: 1-to-4 family mortgage 103 369 23 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 635 654 113 Non-owner occupied 1,151 1,678 242 Consumer and other 1 1 — Total $ 2,744 $ 3,556 $ 513 With no related allowance recorded: Commercial and industrial $ 622 $ 746 $ — Construction 2,686 2,694 — Residential real estate: 1-to-4 family mortgage 2,368 2,370 — Residential line of credit 311 321 — Multi-family mortgage 1,027 1,027 — Commercial real estate: Owner occupied 2,117 3,205 — Non-owner occupied 1,050 1,781 — Consumer and other 26 26 — Total $ 10,207 $ 12,170 $ — Total impaired loans $ 12,951 $ 15,726 $ 513 Average recorded investment and interest income on a cash basis recognized during the three and nine months ended September 30, 2017 and 2016 on impaired loans, segregated by class, were as follows: Three Months Ended Nine Months Ended September 30, 2017 Average recorded investment Interest income recognized (cash basis) Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 392 $ 2 $ 454 $ 2 Construction — — — — Residential real estate: 1-to-4 family mortgage 148 7 151 7 Residential line of credit — — — — Multi-family mortgage — — — — Commercial real estate: Owner occupied 843 39 856 39 Non-owner occupied 328 3 650 3 Consumer and other 11 1 12 1 Total $ 1,721 $ 52 $ 2,122 $ 52 With no related allowance recorded: Commercial and industrial $ 633 $ 34 $ 698 $ 34 Construction 797 41 1,991 41 Residential real estate: 1-to-4 family mortgage 1,584 51 1,721 51 Residential line of credit — — 156 — Multi-family mortgage 995 34 1,008 34 Commercial real estate: Owner occupied 1,737 92 1,913 92 Non-owner occupied 1,590 12 1,317 12 Consumer and other 13 — 14 — Total $ 7,347 $ 264 $ 8,815 $ 264 Total impaired loans $ 9,068 $ 316 $ 10,936 $ 316 September 30, 2016 With a related allowance recorded: Commercial and industrial $ 363 $ 3 $ 820 $ 14 Construction — — 102 — Residential real estate: 1-to-4 family mortgage 200 1 1,482 27 Residential line of credit 319 4 213 6 Multi-family mortgage — — — — Commercial real estate: Owner occupied 807 17 1,115 18 Non-owner occupied 2,573 4 2,776 13 Consumer and other 2 — 1 — Total $ 4,264 $ 29 $ 6,509 $ 78 With no related allowance recorded: Commercial and industrial $ 1,318 $ 13 $ 767 $ 17 Construction 2,782 36 2,712 99 Residential real estate: 1-to-4 family mortgage 2,680 19 2,060 103 Residential line of credit — — — — Multi-family mortgage 1,037 13 1,052 25 Commercial real estate: Owner occupied 2,239 33 1,378 75 Non-owner occupied 1,413 1 1,212 2 Consumer and other — — — — Total $ 11,469 $ 115 $ 9,181 $ 321 Total impaired loans $ 15,733 $ 144 $ 15,690 $ 399 As of September 30, 2017 and December 31, 2016, the Company has a recorded investment in troubled debt restructurings of $8,095 and $8,802, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate. The Company has allocated $202 and $402 of specific reserves for those loans at September 30, 2017 and December 31, 2016, respectively, and has committed to lend additional amounts totaling up to $1 and $1, respectively to these customers. Of these loans, $3,816 and $4,265 were classified as non-accrual loans as of September 30, 2017 and December 31, 2016. The following table presents the financial effect of TDRs recorded during the periods indicated: Three Months Ended September 30, 2017 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 143 $ 143 $ 8 Total 1 $ 143 $ 143 $ 8 Three Months Ended September 30, 2016 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 1,098 $ 1,098 $ — Commercial real estate: Owner occupied 1 118 118 — Consumer and other 2 4 4 — Total 4 $ 1,220 $ 1,220 $ — Nine Months Ended September 30, 2017 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 5 $ 5 $ — Residential real estate: 1-to-4 family mortgage 1 143 143 8 Commercial real estate: Owner occupied 1 377 377 — Non-owner occupied 2 711 711 — Total 5 $ 1,236 $ 1,236 $ 8 Nine Months Ended September 30, 2016 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 6 $ 2,301 $ 2,301 $ 86 Residential real estate: 1-4 family mortgage 5 326 326 45 Commercial real estate: Owner occupied 2 786 786 — Non-owner occupied 1 133 133 — Total 14 $ 3,546 $ 3,546 $ 131 There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the nine months ended September 30, 2017 or 2016. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. The terms of certain other loans were modified during the nine months ended September 30, 2017 and 2016 that did not meet the definition of a troubled debt restructuring. The modification of these loans involved either a modification of the terms of a loan to borrowers who were not experiencing financial difficulties or a delay in a payment that was considered to be insignificant. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the company’s internal underwriting policy. |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2017 | |
Real Estate [Abstract] | |
Other Real Estate Owned | Note (5)—Other real estate owned: The amount reported as other real estate owned includes property acquired through foreclosure in addition to excess facilities held for sale and is carried at fair value less estimated cost to sell the property. The following table summarizes other real estate owned for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Balance at beginning of period $ 6,370 $ 9,902 $ 7,403 $ 11,641 Transfers from loans 1,796 460 2,958 2,636 Acquired through merger with the Clayton Banks (1) 6,888 — 6,888 — Properties sold (1,152 ) (3,044 ) (4,082 ) (6,558 ) Gain on sale of other real estate owned 93 1,680 1,041 1,749 Transferred to loans (165 ) — (201 ) (259 ) Write-downs and partial liquidations (18 ) (34 ) (195 ) (245 ) Balance at end of period $ 13,812 $ 8,964 $ 13,812 $ 8,964 (1) Includes excess land and facilities held for sale of $4,147 acquired from the Clayton Banks. Foreclosed residential real estate properties included in the table above totaled $2,756 and $2,265 as of September 30, 2017 and December 31, 2016, respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $655 and $44 at September 30, 2017 and December 31, 2016, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Note (6)—Goodwill and intangible assets: The following table summarizes changes in goodwill during the nine months ended September 30, 2017. There was no such activity during the nine months ended September 30, 2016. Goodwill Balance at December 31, 2016 $ 46,867 Addition from merger with Clayton Banks (see Note 2) 92,043 Balance at September 30, 2017 $ 138,910 Goodwill is tested annually, or more often if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and is written down to its implied fair value. Subsequent increases in goodwill values are not recognized in the financial statements. Goodwill impairment was neither indicated nor recorded during the nine months ended September 30, 2017 or the year ended December 31, 2016. The change in balance for core deposit intangibles during the year is as follows: Core deposit intangible Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning Balance $ 4,048 $ 5,616 $ 4,563 $ 6,695 Addition from merger with Clayton Banks (see Note 2) 9,060 — 9,060 — Less: amortization expense (558 ) (526 ) (1,073 ) (1,605 ) Ending Balance $ 12,550 $ 5,090 $ 12,550 $ 5,090 On July 31, 2017, the Company recorded $9,060 of core deposit intangibles resulting from the merger with the Clayton Banks, which is being amortized over a weighted average life of approximately 3 years. The estimated aggregate amortization expense of core deposit intangibles for each of the next five years and thereafter is as follows: Remainder of 2017 $ 754 December 31, 2018 2,780 December 31, 2019 2,394 December 31, 2020 2,008 December 31, 2021 1,622 Thereafter 2,992 $ 12,550 Additionally, the Company recognized an identifiable intangible asset related to favorable lease terms of $587 to be amortized into occupancy and equipment expense over the life of the lease, currently expected to be 6.5 years. Note 2 – “Mergers and acquisitions” includes additional discussion related to the goodwill and other intangibles recognized in the merger with the Clayton Bank. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2017 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Mortgage servicing rights | Note (7)—Mortgage servicing rights: Changes in the Company’s mortgage servicing rights were as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Carrying value prior to policy change $ 48,464 $ 40,382 $ 32,070 $ 29,711 Fair value impact of change in accounting policy (See Note 1) — — 1,011 — Carrying value at beginning of period 48,464 40,382 33,081 29,711 Capitalization 15,965 11,107 45,624 30,890 Amortization — (2,796 ) — (6,221 ) Sales — — (11,935 ) — Impairment — (2,402 ) — (8,089 ) Change in fair value: Due to pay-offs/pay-downs (975 ) — (1,772 ) — Due to change in valuation inputs or assumptions (408 ) — (1,952 ) — Carrying value at June 30 $ 63,046 $ 46,291 $ 63,046 $ 46,291 The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the three and nine months ended September 30, 2017 and 2016, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Servicing income: Servicing income $ 3,463 $ 3,661 $ 8,958 $ 8,312 Change in fair value of mortgage servicing rights (1,383 ) — (3,724 ) — Change in fair value of mortgage servicing rights hedging instruments 490 — 490 — Gross servicing income 2,570 3,661 5,724 8,312 Servicing expenses: Servicing asset amortization — 2,796 — 6,221 Servicing asset impairment — 2,402 — 8,089 Loss on sale of mortgage servicing rights — — 249 — Other servicing expenses 1,043 686 3,181 1,632 Gross servicing expenses 1,043 5,884 3,430 15,942 Net servicing income (loss) $ 1,527 $ (2,223 ) $ 2,294 $ (7,630 ) Data and key economic assumptions related to the Company’s mortgage servicing rights as of September 30, 2017 and December 31, 2016 are as follows: September 30, December 31, 2017 2016 Unpaid principal balance $ 5,549,662 $ 2,833,958 Weighted-average prepayment speed (CPR) 9.30 % 8.40 % Estimated impact on fair value of a 10% increase (2,579 ) (1,256 ) Estimated impact on fair value of a 20% increase (4,985 ) (2,434 ) Discount rate 9.79 % 9.54 % Estimated impact on fair value of a 100 bp increase (2,486 ) (1,394 ) Estimated impact on fair value of a 200 bp increase (4,782 ) (2,679 ) Weighted-average coupon interest rate 3.93 % 3.59 % Weighted-average servicing fee (basis points) 28 27 Weighted-average remaining maturity (in months) 337 328 From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, the Company continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the nine months ended September 30, 2017, the Company sold $11,935 of mortgage servicing rights on $1,086,465 of serviced mortgage loans. As of September 30, 2017, there were no loans being serviced that related to bulk sale of mortgage servicing rights. At December 31, 2016, the Company subserviced $3,332,903 relating to mortgage servicing rights sold during the last half of 2016. During the end of the second quarter of 2017, the Company began hedging the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. As of September 30, 2017, the MSR asset was fully hedged with respect to changes in the underlying interest rates (see Note 10). |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note (8)—Income taxes: In connection with the initial public offering, as discussed in Note 1, the Company terminated its S-Corporation status and became a taxable entity (C Corporation) on September 16, 2016. During the third quarter of 2016, the net deferred tax liability increased $13,181 from the conversion in taxable status. The net deferred tax liability is the result of timing differences in the recognition of income/deductions for generally accepted accounting principles (GAAP) and tax purposes. The consolidated statements of income present pro forma statements of income for the three and nine months ended September 30, 2016. Allocation of federal and state income taxes between current and deferred portions is as follows: For the three months ended September 30, 2017 2016 Current $ 4,328 $ 1,579 Deferred 274 13,193 Total $ 4,602 $ 14,772 For the nine months ended September 30, 2017 2016 Current $ 8,375 $ 2,707 Deferred 8,226 14,239 Total $ 16,601 $ 16,946 Federal income tax expense for the three and nine months ended September 30, 2017 and 2016 differs from the statutory federal rate of 35% due to the following: For the three months ended September 30, 2017 2016 Federal taxes calculated at statutory rate $ 4,547 $ 3,338 Increase (decrease) resulting from: State taxes, net of federal benefit 528 524 Conversion as of September 16, 2016 to C Corporation — 13,181 Benefit of equity based compensation (384 ) — Other (89 ) (2,271 ) Income tax expense, as reported $ 4,602 $ 14,772 For the nine months ended September 30, 2017 2016 Federal taxes calculated at statutory rate $ 16,086 $ 3,338 Increase (decrease) resulting from: State taxes, net of federal benefit 1,879 2,607 Conversion as of September 16, 2016 to C Corporation — 13,181 Benefit of equity based compensation (883 ) — Other (481 ) (2,180 ) Income tax expense, as reported $ 16,601 $ 16,946 The components of the net deferred tax liability at September 30, 2017 and December 31, 2016, are as follows: September 30, December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 9,196 $ 8,516 Amortization of core deposit intangible 1,023 996 Compensation related 7,306 7,552 Unrealized loss on securities 884 2,462 Other 6,248 2,430 Subtotal 24,657 21,956 Deferred tax liabilities: FHLB stock dividends (827 ) (827 ) Depreciation (6,417 ) (6,548 ) Mortgage servicing rights (24,689 ) (12,558 ) Other (7,106 ) (6,203 ) Subtotal (39,039 ) (26,136 ) Net deferred tax liability $ (14,382 ) $ (4,180 ) In recording the impact of the conversion to a C Corporation during the third quarter of 2016, the Company recorded a deferred income tax expense of $2,955 related to the unrealized gain on available for sale securities through the income statement in accordance with ASC 740-20-45-8; therefore, the amount shown in other comprehensive income has not been reduced by the above expense. This difference will remain in OCI until the underlying securities are sold or mature in accordance with the portfolio approach allowed under ASC 740. Tax periods for all fiscal years after 2013 remain open to examination by the federal and state taxing jurisdictions to which the Company is subject. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note (9)—Commitments and contingencies: Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. September 30, December 31, 2017 2016 Commitments to extend credit, excluding interest rate lock commitments $ 951,679 $ 579,879 Letters of credit 26,774 22,547 Balance at end of period $ 978,453 $ 602,426 In connection with the sale of mortgage loans to third party investors, the Bank makes usual and customary representations and warranties as to the propriety of its origination activities. Occasionally, the investors require the Bank to repurchase loans sold to them under the terms of the warranties. When this happens, the loans are recorded at fair value with a corresponding charge to a valuation reserve. The total principal amount of loans repurchased (or indemnified for) was $1,137 and $1,722 and $2,907 and $5,167 For the three months ended For the nine months ended September 30, September 30, 2017 2016 2017 2016 Balance at beginning of period $ 3,037 $ 2,859 $ 2,659 $ 2,156 Provision for loan repurchases or indemnifications 410 470 794 1,173 Recoveries on previous losses — — — — Losses on loans repurchased or indemnified (27 ) 13 (33 ) 13 Balance at end of period $ 3,420 $ 3,342 $ 3,420 $ 3,342 |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | Note (10)—Derivatives: The Company utilizes derivative financial instruments as part of its ongoing efforts to manage its interest rate risk exposure as well as the exposure for its customers. Derivative financial instruments are included in the Consolidated Balance Sheets line item “Other assets” or “Other liabilities” at fair value in accordance with ASC 815, “ Derivatives and Hedging The Company enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding (rate-lock commitments). Under such commitments, interest rates for a mortgage loan are typically locked in for up to forty-five days with the customer. These interest rate lock commitments are recorded at fair value in the Company’s Consolidated Balance Sheets. The Company also enters into mandatory delivery forward commitments to sell residential mortgage loans to secondary market investors. Gains and losses arising from changes in the valuation of the rate-lock commitments and forward commitments are recognized currently in earnings and are reflected under the line item “Mortgage banking income” on the Consolidated Statements of Income. The Company enters into forward commitments, futures and options contracts that are not designated as hedging instruments as economic hedges of the change in the fair value of its MSRs. Gains and losses associated with these instruments are included in earnings and are reflected under the line item “Mortgage banking income” on the Consolidated Statements of Income. The Company enters into derivative instruments that are not designated as hedging instruments to help its commercial customers manage their exposure to interest rate fluctuations. To mitigate the interest rate risk associated with customer contracts, the Company enters into an offsetting derivative contract. The Company manages its credit risk, or potential risk of default by its commercial customers through credit limit approval and monitoring procedures. In June of 2017, the Company entered into two interest rate swap agreements with notional amounts totaling $30,000 to hedge interest rate exposure on outstanding subordinate debentures included in long-term debt totaling $30,930. Under these agreements, the Company receives a variable rate of interest and pays a fixed rate of interest. The interest rate swap contracts, which mature in June of 2024, are designated as cash flow hedges with the objective of reducing the variability in cash flows resulting from changes in interest rates. As of September 30, 2017, the fair value of these contracts was $0. In July of 2017, the Company entered into three interest rate swap contracts on floating rate liabilities at the Bank level with notional amounts of $30,000, $35,000 and $35,000 for a period of three, four and five years, respectively. These interest rate swaps are designated as cash flow hedges with the objective of reducing the variability of cash flows associated with $100,000 of short-term FHLB borrowings obtained in conjunction with the Clayton Bank acquisition. Under these contracts, the Company receives a variable rate of interest and pays a fixed rate of interest. As of September 30, 2017, the fair value of these contracts was $283 included in those designated as hedging below. Certain financial instruments, including derivatives, may be eligible for offset in the Consolidated Balance Sheet when the “right of setoff” exists or when the instruments are subject to an enforceable master netting agreement, which includes the right of the non-defaulting party or non-affected party to offset recognized amounts, including collateral posted with the counterparty, to determine a net receivable or net payable upon early termination of the agreement. Certain of the Company’s derivative instruments are subject to master netting agreements. The Company has not elected to offset such financial instruments in the Consolidated Balance Sheets. The following tables provide details on the Company’s derivative financial instruments as of the dates presented: September 30, 2017 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 139,545 $ 1,456 $ 1,456 Forward commitments 851,000 154 — Interest rate-lock commitments 540,672 8,423 — Futures contracts 350,000 — 978 Total $ 1,881,217 $ 10,033 $ 2,434 December 31, 2016 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 22,243 $ 586 $ 586 Forward commitments 829,000 12,731 — Interest rate-lock commitments 532,920 6,428 — Futures contracts — — — Total $ 1,384,163 $ 19,745 $ 586 September 30, 2017 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 130,000 $ 283 $ — Total $ 130,000 $ 283 $ — Gains (losses) included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Derivatives not designated as hedging instruments: Interest rate lock commitments: Included in mortgage banking income $ 486 $ (1,043 ) $ 1,995 $ 10,922 Forward commitments: Included in mortgage banking income (4,221 ) (4,374 ) (11,469 ) (21,149 ) Futures contracts Included in mortgage banking income 66 — 66 — Total $ (3,669 ) $ (5,417 ) $ (9,408 ) $ (10,227 ) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in other interest expense $ 150 — $ 150 — The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Designated as hedging: Amount of gain recognized in other comprehensive income, net of tax $ 172 — $ 172 — |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Note (11)—Fair value of financial instruments: ASC 820-10 establishes a framework for measuring the fair value of assets and liabilities according to a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The hierarchy maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The hierarchy is broken down into the following three levels, based on the reliability of inputs: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities that are accessible at 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 for assets or liabilities that are derived from assumptions based on management’s estimate of assumptions that market participants would use in pricing the assets or liabilities. The Company records the fair values of financial assets and liabilities on a recurring and non-recurring basis using the following methods and assumptions: Available-for-sale securities—Available-for-sale securities are recorded at fair value on a recurring basis. Fair values for securities are based on quoted market prices, where available. If quoted prices are not available, fair values are based on quoted market prices of similar instruments or are determined by matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the pricing relationship or correlation among other benchmark quoted securities. Available-for-sale securities valued using quoted market prices of similar instruments or that are valued using matrix pricing are classified as Level 2. When significant inputs to the valuation are unobservable, the available-for-sale securities are classified within Level 3 of the fair value hierarchy. Where no active market exists for a security or other benchmark securities, fair value is estimated by the Company with reference to discount margins for other high risk securities. Loans held for sale—Loans held for sale are carried at fair value. Fair value is used is determined using current secondary market prices for loans with similar characteristics, that is, using Level 2 inputs. Derivatives—The fair value of the interest rate swaps are based upon fair values provided from entities that engage in interest rate swap activity and is based upon projected future cash flows and interest rates. Fair value of commitments is based on fees currently charged to enter into similar agreements, and for fixed-rate commitments, the difference between current levels of interest rates and the committed rates is also considered. These financial instruments are classified as Level 2. Other real estate owned—Other real estate owned (“REO”) is comprised of commercial and residential real estate obtained in partial or total satisfaction of loan obligations and excess land and facilities held for sale. REO acquired in settlement of indebtedness is recorded at the lower of the carrying amount of the loan or the fair value of the real estate less costs to sell. Fair value is determined on a nonrecurring basis based on appraisals by qualified licensed appraisers and is adjusted for management’s estimates of costs to sell and holding period discounts. The valuations are classified as Level 3. Mortgage servicing rights—Servicing rights are carried at fair value. Fair value is determined using an income approach with various assumptions including expected cash flows, market discount rates, prepayment speeds, servicing costs, and other factors. Mortgage servicing rights are disclosed as Level 3. Impaired loans—Loans considered impaired under FASB ASC 310, Receivables, are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Fair value adjustments for impaired loans are recorded on a non-recurring basis as either partial write downs based on observable market prices or current appraisal of the collateral. Impaired loans are classified as Level 3. The following methods were used to estimate the fair value of the Company’s financial instruments: Cash and cash equivalents—Cash and cash equivalents consist of cash and due from banks with other financial institutions and federal funds sold. The carrying amount reported in the consolidated balance sheets approximates the fair value based upon the short-term nature of these assets. Also included are interest-bearing deposits in financial institutions. Interest bearing deposits in financial institutions consist of interest bearing accounts at the Federal Reserve Bank and Federal Home Loan Bank. The carrying value reported in the consolidated balance sheets approximates the fair value based upon the short-term nature of the assets. Federal Home Loan Bank stock—The carrying value of Federal Home Loan Bank stock reported in the consolidated balance sheets approximates the fair value as the stock is redeemable at the carrying value. Loans—For variable rate loans that re-price frequently and with no significant change in credit risk, fair values are based upon carrying values. Fixed rate loan fair values are estimated using a discounted cash flow analysis based upon interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Deposits—The fair value disclosed for demand deposits (both interest bearing and noninterest bearing) and savings deposits are equal to the amount payable on demand as of the reporting date. The fair value of the time deposits is estimated using a discounted cash flow method based upon current rates for similar types of accounts. Short term borrowings—The fair value of the lines of credit which represent federal funds purchased approximate the carrying value of the amounts reported on the balance sheet due to the short-term nature of these liabilities. Securities sold under agreement to repurchase—The fair value of the securities sold under agreement to repurchase approximate the carrying value of the amounts reported on the balance sheet due to the short-term nature of these liabilities. Long-term debt—The fair value of long-term debt is determined using discounted cash flows using current rates. Accrued interest payable and receivable – The carrying amounts of accrued interest approximate fair value. The estimated fair values of the Company’s financial instruments are as follows: Fair Value September 30, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 97,165 $ 97,165 $ — $ — $ 97,165 Available-for-sale securities 543,282 — 539,678 3,604 543,282 Federal Home Loan Bank Stock 11,152 — — 11,152 11,152 Loans, net 3,091,080 — 2,999,008 78,920 3,077,928 Loans held for sale 466,369 — 466,369 — 466,369 Interest receivable 11,218 — 11,218 — 11,218 Mortgage servicing rights 63,046 — — 63,046 63,046 Derivatives 10,316 — 10,316 — 10,316 Financial liabilities: Deposits: Without stated maturities $ 3,051,322 $ 3,051,322 $ — $ — $ 3,051,322 With stated maturities 667,216 — 662,988 — 662,988 Securities sold under agreement to repurchase 14,556 14,556 — — 14,556 Short term borrowings 52,766 52,766 — — 52,766 Interest payable 1,262 367 895 — 1,262 Long-term debt 143,533 — 148,136 — 148,136 Derivatives 2,434 — 2,434 — 2,434 Fair Value December 31, 2016 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 136,327 $ 136,327 $ — $ — $ 136,327 Available-for-sale securities 582,183 — 577,634 4,549 582,183 Federal Home Loan Bank Stock 7,743 — — 7,743 7,743 Loans, net 1,827,037 — 1,822,054 1,281 1,823,335 Loans held for sale 507,442 — 507,442 — 507,442 Interest receivable 7,241 — 7,241 — 7,241 Mortgage servicing rights, net 32,070 — — 33,081 33,081 Derivatives 19,745 — 19,745 — 19,745 Financial liabilities: Deposits: Without stated maturities $ 2,280,531 $ 2,280,531 $ — $ — $ 2,280,531 With stated maturities 391,031 — 390,484 — 390,484 Securities sold under agreement to repurchase 21,561 21,561 — — 21,561 Short term borrowings 150,000 150,000 — — 150,000 Interest payable 620 237 383 — 620 Long-term debt 44,892 — 47,377 — 47,377 Derivatives 586 — 586 — 586 The balances and levels of the assets measured at fair value on a recurring basis at September 30, 2017 are presented in the following tables: At September 30, 2017 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 992 $ — $ 992 Mortgage-backed securities — 418,794 — 418,794 Municipals, tax-exempt — 106,950 — 106,950 Treasury securities — 8,819 — 8,819 Equity securities — 4,123 3,604 7,727 Total $ — $ 539,678 $ 3,604 $ 543,282 Loans held for sale — 466,369 — 466,369 Mortgage servicing rights — — 63,046 63,046 Derivatives — 10,316 — 10,316 Financial Liabilities: Derivatives $ — $ 2,434 $ — $ 2,434 The balances and levels of the assets measured at fair value on a non-recurring basis at September 30, 2017 are presented in the following tables: At September 30, 2017 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 8,704 $ 8,704 Impaired loans: Commercial and industrial — — 2,659 2,659 Construction 4,295 Residential real estate: 1-4 family mortgage — — 22,948 22,948 Commercial real estate: — — — Owner occupied 8,306 Non-owner occupied — — 13,912 13,912 Consumer and other — — 26,800 26,800 Total $ — $ — $ 78,920 $ 78,920 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 985 $ — $ 985 Mortgage-backed securities — 443,908 — 443,908 Municipals, tax-exempt — 116,923 — 116,923 Treasury securities — 11,757 — 11,757 Equity securities — 4,061 4,549 8,610 Total $ — $ 577,634 $ 4,549 $ 582,183 Loans held for sale — 507,442 — 507,442 Derivatives — 19,745 — 19,745 Financial Liabilities: Derivatives $ — $ 586 $ — $ 586 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,315 $ 2,315 Mortgage servicing rights — — 32,070 32,070 Impaired Loans: Commercial and industrial — — 542 542 Residential real estate: 1-4 family mortgage — — 103 103 Commercial real estate: Owner occupied — — 635 635 Consumer and other — — 1 1 Total $ — $ — $ 1,281 $ 1,281 There were no transfers between Level 1, 2 or 3 during the periods presented. The following table summarizes changes in fair value on available-for-sale securities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three and nine months ended September 30, 2017 and 2016. Available-for-sale securities Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 4,549 $ 4,856 $ 4,549 $ 4,856 Realized gains included in net income — — — — Unrealized gains included in other comprehensive income — — — — Impairment of equity securities (945 ) — (945 ) — Purchases — — — — Capital distribution — (307 ) — (307 ) Balance at end of period $ 3,604 $ 4,549 $ 3,604 $ 4,549 The fair value of certain of the Company’s equity are determined from information derived from external parties that calculate discounted cash flows using swap and LIBOR curves plus spreads that adjust for loss severities, volatility, credit risk and optionality. When available, broker quotes are used to validate the model. Industry research reports as well as assumptions about specific-issuer defaults and deferrals are reviewed and incorporated into the calculations. There is no established market for the Company’s equity securities, and as such, the Company has estimated that historical costs approximates market value. The following table presents information as of September 30, 2017 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 78,920 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 8,704 Appraised value of property less costs to sell Discount for costs to sell 0%-15% The following table presents information as of December 31, 2016 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 1,281 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 2,315 Appraised value of property less costs to sell Discount for costs to sell 0%-10% Mortgage servicing rights, net $ 33,081 Discounted cash flows See Note 7 See Note 7 Appraisals for both collateral-dependent impaired loans and other real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, a member of the lending administrative department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry wide statistics. Fair value option The Company elected to measure all loans originated for sale at fair value under the fair value option as permitted under ASC 825. Electing to measure these assets at fair value reduces certain timing differences and better matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them. Net (losses) gains of $(272) and $5,843 and $9,198 and $12,638 resulting from fair value changes of the mortgage loans were recorded in income during the three and nine months ended September 30, 2017 and 2016, respectively. The amount does not reflect changes in fair values of related derivative instruments used to hedge exposure to market-related risks associated with these mortgage loans. The change in fair value of both loans held for sale and the related derivative instruments are recorded in Mortgage Banking Income in the Consolidated Statements of Income. Election of the fair value option allows the Company to reduce the accounting volatility that would otherwise result from the asymmetry created by accounting for the financial instruments at the lower of cost or fair value and the derivatives at fair value. The fair value option election does not apply to the GNMA optional repurchase loans which do not meet the requirements under FASB ASC Topic 825 to be accounted for under the fair value option. GNMA optional repurchase loans totaled $13,575 at September 30, 2017 and are included in loans held for sale on the accompanying consolidated balance sheets. Amounts related to previous periods were not significant. The Company’s valuation of loans held for sale incorporates an assumption for credit risk; however, given the short-term period that the Company holds these loans, valuation adjustments attributable to instrument-specific credit risk is nominal. Interest income on loans held for sale measured at fair value is accrued as it is earned based on contractual rates and is reflected in loan interest income in the Consolidated Statements of Income. The following table summarizes the differences between the fair value and the principal balance for loans held for sale measured at fair value as of September 30, 2017 and December 31, 2016: September 30, 2017 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 452,794 $ 424,081 $ 28,713 Past due loans of 90 days or more — — — Nonaccrual loans — — — December 31, 2016 Mortgage loans held for sale measured at fair value $ 507,442 $ 501,503 $ 5,939 Past due loans of 90 days or more — — — Nonaccrual loans — — — |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note (12)—Segment reporting: The Company and the Bank are engaged in the business of banking and provide a full range of financial services. The Company determines reportable segments based on the significance of the segment’s operating results to the overall Company, the products and services offered, customer characteristics, processes and service delivery of the segments and the regular financial performance review and allocation of resources by the Chief Executive Officer (“CEO”), the Company’s chief operating decision maker. The Company has identified two distinct reportable segments—Banking and Mortgage. The Company’s primary segment is Banking, which provides a full range of deposit and lending products and services to corporate, commercial and consumer customers. The Company offers full-service conforming residential mortgage products, including conforming residential loans and services through the Mortgage segment utilizing mortgage offices outside of the geographic footprint of the Banking operations as well as internet and correspondent delivery channels. Additionally, the Mortgage Segment includes the servicing of residential mortgage loans and the packaging and securitization of loans to governmental agencies. The residential mortgage products and services originated in our Banking footprint and related revenues and expenses are included in our Banking segment. The Company’s mortgage division represents a distinct reportable segment which differs from the Company’s primary business of commercial and retail banking. The financial performance of the Mortgage segment is assessed based on results of operations reflecting direct revenues and expenses and allocated expenses. This approach gives management a better indication of the operating performance of the segment. When assessing the Banking segment’s financial performance the CEO utilizes reports with indirect revenues and expenses including but not limited to the investment portfolio, electronic delivery channels and areas that primarily support the banking segment operations. Therefore these are included in the results of the Banking segment. Other indirect revenue and expenses related to general administrative areas are also included in the internal financial results reports of the Banking segment utilized by the CEO for analysis and are thus included for Banking segment reporting. The Mortgage segment utilizes funding sources from the Banking segment in order to fund mortgage loans that are ultimately sold on the secondary market. The Mortgage segment uses the proceeds from loan sales to repay obligations due to the Banking segment. During 2016, the Company realigned its segment reporting structure to reclassify mortgage banking income and related expenses associated with retail mortgage originations within our Banking geographic footprint from the Mortgage segment to the Banking segment. This change was made to capture all of the product and service offerings for our Banking customer base within our banking geographic footprint into the Banking segment while capturing all of the mortgage banking activities outside of the banking footprint into the Mortgage segment to allow our CEO to better determine resource allocations and operating performance for each segment. As such, the tables below have been revised to reflect the reclassification for all periods presented. The following tables provides segment financial information for the three and nine months ended September 30, 2017 and 2016 follows: Three Months Ended September 30, 2017 Banking Mortgage Consolidated Net interest income $ 43,741 $ (131 ) $ 43,610 Provision for loan loss (784 ) — (784 ) Mortgage banking income 7,498 24,729 32,227 Change in fair value of mortgage servicing rights (1) — (893 ) (893 ) Other noninterest income 6,486 — 6,486 Depreciation 972 125 1,097 Amortization of intangibles 558 — 558 Loss on sale of mortgage servicing rights — — — Other noninterest mortgage banking expense 6,216 19,632 25,848 Other noninterest expense (2) 41,721 — 41,721 Income before income taxes 9,042 3,948 12,990 Income tax expense 4,602 Net income 8,388 Total assets $ 4,056,901 $ 525,042 $ 4,581,943 Goodwill 138,810 100 138,910 (1) Included in mortgage banking income. (2) Included $15,711 in merger and conversion expenses related to the merger with the Clayton Banks. Three Months Ended September 30, 2016 Banking Mortgage Consolidated Net interest income $ 28,158 $ (541 ) $ 27,617 Provision for loan loss 71 — 71 Mortgage banking income 8,878 28,060 36,938 Other noninterest income 7,024 — 7,024 Depreciation 927 45 972 Amortization of intangibles 526 — 526 Amortization and impairment of mortgage servicing rights — 5,198 5,198 Other noninterest mortgage banking expense 7,293 18,501 25,794 Other noninterest expense (1) 23,039 — 23,039 Income before income taxes 12,204 3,775 15,979 Income tax expense 14,772 Net income 1,207 Total assets $ 2,661,116 $ 526,064 $ 3,187,180 Goodwill 46,767 100 46,867 (1) Included $1,122 in merger and conversion expenses related to the merger with NWGB. Nine Months Ended September 30, 2017 Banking Mortgage Consolidated Net interest income $ 103,596 $ 692 $ 104,288 Provision for loan loss (1,906 ) — (1,906 ) Mortgage banking income 20,282 69,605 89,887 Change in fair value of mortgage servicing rights (1) — (3,234 ) (3,234 ) Other noninterest income 17,911 — 17,911 Depreciation 2,697 393 3,090 Amortization of intangibles 1,073 — 1,073 Loss on sale of mortgage servicing rights — 249 249 Other noninterest mortgage banking expense 16,420 56,587 73,007 Other noninterest expense (2) 87,358 — 87,358 Income before income taxes 36,147 9,834 45,981 Income tax expense 16,601 Net income 29,380 Total assets $ 4,056,901 $ 525,042 $ 4,581,943 Goodwill 138,810 100 138,910 (1) Included in mortgage banking income (2) Included $16,965 in merger and conversion expenses related to the merger with the Clayton Banks. Nine Months Ended September 30, 2016 Banking Mortgage Consolidated Net interest income $ 83,389 $ (1,471 ) $ 81,918 Provision for loan loss (727 ) — (727 ) Mortgage banking income 22,237 69,337 91,574 Other noninterest income 21,779 — 21,779 Depreciation and amortization 2,729 265 2,994 Amortization of intangibles 1,605 — 1,605 Amortization and impairment of mortgage servicing rights — 14,310 14,310 Other noninterest mortgage banking expense 15,223 47,360 62,583 Other noninterest expense (1) 65,979 — 65,979 Income before income taxes 42,596 5,931 48,527 Income tax expense 16,946 Net income 31,581 Total assets $ 2,661,116 $ 526,064 $ 3,187,180 Goodwill 46,767 100 46,867 (1) Included $3,268 in merger and conversion expenses related to the merger with NWGB. Our Banking segment provides our Mortgage segment with a warehouse line of credit that is used to fund mortgage loans held for sale. The warehouse line of credit had a prime interest rate of 4.25% and 3.50% as of September 30, 2017 and 2016, respectively. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit is recorded as interest income to our Banking segment and as interest expense to our Mortgage segment, both of which are included in the calculation of net interest income for each segment. The amount of interest paid by our Mortgage segment to our Banking segment under this warehouse line of credit was $4,274 and $3,472 and $11,656 and $8,555 for the three and nine months ended September 30, 2017 and 2016, respectively. |
Minimum Capital Requirements
Minimum Capital Requirements | 9 Months Ended |
Sep. 30, 2017 | |
Banking And Thrift [Abstract] | |
Minimum capital requirements | Note (13)—Minimum capital requirements: Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally 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. Failure to meet capital requirements can initiate regulatory action. For September 30, 2017 and December 31, 2016 Interim Final Basel III rules require the Bank to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Additionally under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of September 30, 2017 and December 31, 2016, the Bank and Company met all capital adequacy requirements to which it is subject. Also, as of September 30, 2017, the most recent notification from the FDIC, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank’s category. The table below includes new regulatory capital ratio requirements that became effective on January 1, 2015. Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservative buffer will be fully phased in January 1, 2019 at 2.5 percent. Actual and required capital amounts and ratios are presented below at period-end: Actual For capital adequacy purposes Minimum Capital adequacy with capital buffer To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2017 Total Capital (to risk-weighted assets) FB Financial Corporation $ 481,360 12.18 % $ 316,164 8.0 % $ 365,565 9.25 % N/A N/A FirstBank 449,795 11.31 % 318,157 8.0 % 367,869 9.25 % $ 397,697 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 457,878 11.58 % $ 237,242 6.0 % $ 286,668 7.25 % N/A N/A FirstBank 426,313 10.72 % 238,608 6.0 % 288,318 7.25 % $ 238,608 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 457,878 11.35 % $ 161,367 4.0 % N/A N/A N/A N/A FirstBank 426,313 10.58 % 161,177 4.0 % N/A N/A $ 201,471 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 427,878 10.82 % $ 177,953 4.5 % $ 227,384 5.75 % N/A N/A FirstBank 426,313 10.72 % 178,956 4.5 % 228,666 5.75 % $ 258,492 6.5 % Actual For capital adequacy purposes Minimum Capital adequacy with capital buffer To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets) FB Financial Corporation $ 338,893 13.03 % $ 208,069 8.0 % $ 224,325 8.63 % N/A N/A FirstBank 304,018 11.72 % 207,521 8.0 % 223,733 8.63 % $ 259,401 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 317,146 12.19 % $ 156,101 6.0 % $ 172,362 6.63 % N/A N/A FirstBank 282,271 10.88 % 155,664 6.0 % 171,879 6.63 % $ 155,664 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 317,146 10.05 % $ 126,227 4.0 % N/A N/A N/A N/A FirstBank 282,271 8.95 % 126,155 4.0 % N/A N/A $ 157,693 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 287,146 11.04 % $ 117,043 4.5 % $ 133,299 5.13 % N/A N/A FirstBank 282,271 10.88 % 116,748 4.5 % 132,963 5.13 % $ 168,636 6.5 % |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note (14)—Stock-Based Compensation: The Company granted shares of common stock and restricted stock units as a part of its initial public offering and compensation arrangements for the benefit of employees, executive officers, and directors. Restricted stock unit grants are subject to time-based vesting. The total number of restricted stock units granted represents the maximum number of restricted stock units eligible to vest based upon the service conditions set forth in the grant agreements. Following the initial public offering, participants in the EBI Plans were given the option to elect conversion of their outstanding cash-settled EBI Units to stock-settled EBI Units. The following table summarizes information about vested and unvested restricted stock units outstanding at September 30, 2017 and 2016: For the nine months ended September 30, 2017 2016 Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance at beginning of period 1,200,848 $ 19.00 — Conversion of deferred compensation plan — 19.00 157,895 19.00 Conversion of equity based incentive (EBI) plans — 19.00 125,684 19.00 Grants 103,714 33.91 1,077,058 19.00 Released and distributed (vested) 93,315 19.00 44,590 19.00 Forfeited/expired 3,133 19.00 — Balance at end of period 1,208,114 $ 19.67 1,405,227 19.00 The total fair value of restricted stock units vested and released was $427 and $1,773 for the three and nine months ended September 30, 2017, respectively, and $847 and $847 for the three and nine months ended September 30, 2016, respectively. The compensation cost related to stock grants and vesting of restricted stock units was $1,850 and $5,004 for the three and nine months ended September 30, 2017, respectively, and $3,373 and 3,373 for the three and nine months ended September 30, 2016, respectively. This included $210 and $487 paid to Company independent directors during the three and nine months ended September 30, 2017 related to one time IPO grants and director compensation elected to be settled in stock. There were no such director grants during the nine months ended September 30, 2016. As of September 30, 2017 and December 31, 2016, there were $14,199 and $15,721, respectively, of total unrecognized compensation cost related to nonvested restricted stock units which is expected to be recognized over a weighted-average period of 2.94 At September 30, 2017 and December 31, 2016, there were 67,470 and 180,447 units valued at $2,545 and $4,683, respectively, remaining in the equity based incentive plans for employees who elected cash settlement of EBI units. Expense related to the cash settled EBI for the three and nine months ended September 30, 2017 was $280 and $762, respectively and $337 for the three and nine months ended September 30, 2016. Employee Stock Purchase Plan: In 2016, the Company adopted an employee stock purchase plan (“ESPP”) under which employees, through payroll deductions, are able to purchase shares of Company common stock. The purchase price was 85% with respect to the first offering period ended in 2016, and is 95% with respect to the subsequent offering periods, of the lower of the market price on the first or last day of the offering period. The maximum number of shares issuable during any offering period is 200,000 shares, and a participant may not purchase more than 725 shares during any offering period (and, in any event, no more than $25,000 worth of common stock in any calendar year). There were 18,658 shares issued under the ESPP during the three and nine months ended September 30, 2017. There were no such issuances during the three and nine months ended September 30, 2016. As of September 30, 2017 and December 31, 2016, there were 2,460,965 shares and 2,479,623 shares, respectively, available for issuance under the ESPP. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions | Note (15)—Related party transactions: (A) Loans: The Bank has made and expects to continue to make loans to the directors, certain management and executive officers of the Company and their affiliates in the ordinary course of business. In management’s opinion, these transactions with directors and executive officers complied with federal banking Regulation O and were made on substantially the same terms as those prevailing at the time for comparable transactions with other unaffiliated persons and did not involve more than the normal risk. An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows: Loans outstanding at January 1, 2017 $ 27,370 New loans and advances 2,807 Repayments (3,745 ) Loans outstanding at September 30, 2017 $ 26,432 Unfunded commitments to certain executive officers and directors and their associates totaled $7,017 and $6,838 at September 30, 2017 and December 31, 2016, respectively. (B) Deposits: The Bank held deposits from related parties totaling $116,734 and $150,373 as of September 30, 2017 and December 31, 2016, respectively. (C) Leases: The Bank leases various office spaces from entities related to the majority shareholder and his son, who is also a Director of the Company, under varying terms. The Company had $142 and $158 in unamortized leasehold improvements related to these leases at September 30, 2017 and December 31, 2016, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $127 and $128 and $377 and $392 for the three and nine months ended September 30, 2017 and 2016, respectively. (D) Subordinated debt: On February 12, 1996, the Company borrowed $775 from the shareholder through a term subordinated note. On August 26, 1999, the Company borrowed $3,300 from the shareholder through a term subordinated note. On June 30, 2006, the Company borrowed $6,000 from the shareholder through a term subordinated note. The total of $10,075 was repaid with cash proceeds from the sale of common stock in the initial public offering, as discussed in Note 1. The Company paid interest payments related to these subordinated debentures to the shareholder amounting to approximately $106 and $230 for the three and nine months ended September 30, 2016, respectively. (E) Investment securities transactions: The Company holds an investment in a fund that was issued by an entity owned by one of its directors. The balance in the investment was $200 and $1,145 as of September 30, 2017 and December 31, 2016, respectively. (F) Aviation time sharing agreement: Effective May 24, 2016, the Company entered an aviation time sharing agreement with an entity owned by the majority shareholder and his son, who is also a Director of the Company. This replaces the previous agreement dated December 21, 2012. During the three and nine months ended September 30, 2017 and 2016, the Company made payments of $44 and $267 and $71 and $299, respectively, under these agreements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Basic and Diluted Earnings Per Common Share | The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Basic earnings per share calculation: Net income $ 8,388 $ 1,207 $ 29,380 $ 31,581 Weighted-average basic shares outstanding 30,004,952 18,259,128 26,649,942 17,542,335 Basic earnings per share $ 0.28 $ 0.07 $ 1.10 $ 1.80 Diluted earnings per share: Net income $ 8,388 $ 1,207 $ 29,380 $ 31,581 Weighted-average basic shares outstanding 30,004,952 18,259,128 26,649,942 17,542,335 Average diluted common shares outstanding 599,585 73,064 548,431 24,532 Weighted-average diluted shares outstanding 30,604,537 18,332,192 27,198,373 17,566,867 Diluted earnings per share $ 0.27 $ 0.07 $ 1.08 $ 1.80 Pro forma earnings per share: Pro forma net income $ 8,388 $ 10,033 $ 29,380 $ 30,412 Weighted-average basic shares outstanding 30,004,952 18,259,128 26,649,942 17,542,335 Pro forma basic earnings per share $ 0.28 $ 0.55 $ 1.10 $ 1.73 Pro forma diluted earnings per share: Pro forma net income $ 8,388 $ 10,033 $ 29,380 $ 30,412 Weighted-average diluted shares outstanding 30,604,537 18,332,192 27,198,373 17,566,867 Pro forma diluted earnings per share $ 0.27 $ 0.55 $ 1.08 $ 1.73 |
Mergers and acquisitions (Table
Mergers and acquisitions (Tables) - Clayton Banks | 9 Months Ended |
Sep. 30, 2017 | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following tables present the preliminary fair value of net assets acquired as of the July 31, 2017 acquisition date and the consideration paid and an allocation of the purchase price to net assets acquired: As of July 31, 2017 Combined Clayton Banks Historical Cost Basis (1) Fair Value Adjustments As Recorded by FB Financial Corporation Assets Cash and cash equivalents $ 49,059 $ — $ 49,059 Investment securities 59,108 385 59,493 FHLB stock 3,409 — 3,409 Loans 1,075,441 (14,933 ) 1,060,508 Allowance for loan losses (19,985 ) 19,985 — Premises and equipment 15,011 4,469 19,480 Other real estate owned 6,244 644 6,888 Core deposit intangible — 9,060 9,060 Other assets 15,322 (9,184 ) 6,138 Total assets $ 1,203,609 $ 10,426 $ 1,214,035 Liabilities Interest-bearing deposits $ 669,745 $ 309 $ 670,054 Non-interest bearing deposits 309,464 — 309,464 Borrowings 84,110 721 84,831 Accrued expenses and other liabilities 4,577 668 5,245 Total liabilities $ 1,067,896 $ 1,698 $ 1,069,594 Net assets acquired $ 135,713 $ 8,728 $ 144,441 |
Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired | Purchase price: Equity consideration Common stock issued 1,521,200 Price per share as of July 31, 2017 $ 34.37 Total equity consideration $ 52,284 Cash consideration 184,200 (2) Total consideration paid $ 236,484 Preliminary allocation of consideration paid: Fair value of net assets acquired including identifiable intangible assets $ 144,441 Goodwill 92,043 Total consideration paid $ 236,484 |
Schedule of Fair Value of Acquired Purchase Credit Impaired Loans | The following table presents the fair value of acquired purchase credit impaired loans accounted for in accordance with ASC 310-30 from the Clayton Banks as of the July 31, 2017 acquisition date: July 31, 2017 Contractually-required principal and interest $ 112,584 Nonaccretable difference 12,117 Cash flows expected to be collected 100,467 Accretable yield 18,457 Fair value $ 82,010 |
Business Acquisition, Pro Forma Information | The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2016 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Net interest income $ 49,408 $ 42,971 $ 142,972 $ 126,115 Total revenues $ 88,013 $ 88,568 $ 250,676 $ 243,877 Net income $ 11,719 $ 15,402 $ 50,426 $ 49,434 |
Investment securities (Tables)
Investment securities (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost of Securities and Fair Values | The amortized cost of securities and their fair values at September 30, 2017 and December 31, 2016 are shown below: September 30, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 999 $ — $ (7 ) $ 992 Mortgage-backed securities - residential 423,174 586 (4,966 ) 418,794 Municipals, tax exempt 104,957 2,657 (664 ) 106,950 Treasury securities 8,836 — (17 ) 8,819 Total debt securities 537,966 3,243 (5,654 ) 535,555 Equity securities 7,853 1 (127 ) 7,727 Total securities available-for-sale $ 545,819 $ 3,244 $ (5,781 ) $ 543,282 December 31, 2016 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Securities Available-for-Sale Debt securities U.S. government agency securities $ 998 $ — $ (13 ) $ 985 Mortgage-backed securities - residential 450,874 939 (7,905 ) 443,908 Municipals, tax exempt 116,034 3,003 (2,114 ) 116,923 Treasury securities 11,809 — (52 ) 11,757 Total debt securities 579,715 3,942 (10,084 ) 573,573 Equity securities 8,744 1 (135 ) 8,610 Total securities available-for-sale $ 588,459 $ 3,943 $ (10,219 ) $ 582,183 |
Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. September 30, 2017 December 31, 2016 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 2,036 $ 2,037 $ 9,290 $ 9,352 Due in one to five years 27,722 28,535 25,520 26,340 Due in five to ten years 17,362 17,851 31,122 32,248 Due in over ten years 67,672 68,338 62,909 61,725 114,792 116,761 128,841 129,665 Mortgage-backed securities - residential 423,174 418,794 450,874 443,908 Total debt securities $ 537,966 $ 535,555 $ 579,715 $ 573,573 |
Summary of Sales and Impairment of Available-for-Sale Securities | Sales and impairment of available-for-sale securities were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Proceeds from sales $ 82,585 $ 1,668 $ 94,743 $ 270,663 Gross realized gains 1,199 416 1,276 4,755 Gross realized losses — — 48 348 Other-than-temporary-impairment 945 — 945 — |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses at September 30, 2017 and December 31, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: September 30, 2017 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ — $ — $ 993 $ 7 $ 993 $ 7 Mortgage-backed securities - residential 354,240 3,800 40,115 1,166 394,355 4,966 Municipals, tax exempt 35,240 493 4,155 171 39,395 664 Treasury securities 8,819 17 — — 8,819 $ 17 Total debt securities 398,299 4,310 45,263 1,344 443,562 5,654 Equity securities — — 3,054 127 3,054 127 $ 398,299 $ 4,310 $ 48,317 $ 1,471 $ 446,616 $ 5,781 December 31, 2016 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss U.S. government agency securities $ 985 $ 13 $ — $ — $ 985 $ 13 Mortgage-backed securities - residential 390,595 7,230 19,073 675 409,668 7,905 Municipals, tax exempt 43,132 2,114 — — 43,132 2,114 Treasury securities 10,256 52 — — 10,256 52 Total debt securities 444,968 9,409 19,073 675 464,041 10,084 Equity securities — — 3,126 135 3,126 135 $ 444,968 $ 9,409 $ 22,199 $ 810 $ 467,167 $ 10,219 |
Schedule of Other Than Temporary Impairment, Credit Losses Recognized In Earnings | Changes in the amount of credit related losses recognized in earnings for which OTTI has been recognized are as follows: Balance as of January 1, 2017 $ — Additions related to credit losses for which OTTI was not previously recognized (945 ) Reductions for securities sold during the period — Reductions for securities where there is an intent to sale or requirement to sale — Increases in credit loss for which OTTI was previously recognized — Reductions for increases in cash flows expected to be collected — Balance as of September 30, 2017 $ (945 ) |
Loans and Allowance for Loan 28
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Loans Outstanding by Major Lending Classification | Loans outstanding at September 30, 2017 and December 31, 2016, by major lending classification are as follows: September 30, December 31, 2017 2016 Commercial and industrial $ 731,588 $ 386,233 Construction 435,414 245,905 Residential real estate: 1-to-4 family mortgage 459,467 294,924 Residential line of credit 188,392 177,190 Multi-family mortgage 74,004 44,977 Commercial real estate: Owner occupied 473,395 357,346 Non-owner occupied 521,416 267,902 Consumer and other 230,886 74,307 Gross loans 3,114,562 1,848,784 Less: Allowance for loan losses (23,482 ) (21,747 ) Net loans $ 3,091,080 $ 1,827,037 |
Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest | The following provides the allowance for loan losses by portfolio segment and the related investment in loans net of unearned interest for the three and nine months ended September 30, 2017 and 2016 (in thousands): Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Three Months Ended September 30, 2017 Beginning balance - June 30, 2017 $ 5,440 $ 5,579 $ 2,974 $ 1,445 $ 513 $ 3,983 $ 2,452 $ 861 $ 23,247 Provision for loan losses 315 (476 ) (269 ) (565 ) 10 65 24 112 (784 ) Recoveries of loans previously charged-off 200 1,022 86 157 — 24 1 104 1,594 Loans charged off (221 ) — (32 ) (9 ) — (64 ) — (249 ) (575 ) Ending balance - September 30, 2017 $ 5,734 $ 6,125 $ 2,759 $ 1,028 $ 523 $ 4,008 $ 2,477 $ 828 $ 23,482 Nine Months Ended September 30, 2017 Beginning balance - December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 Provision for loan losses (848 ) 111 (409 ) (749 ) 19 731 (1,184 ) 423 (1,906 ) Recoveries of loans previously charged-off 1,794 1,080 126 368 — 39 1,642 400 5,449 Loans charged off (521 ) (6 ) (155 ) (204 ) — (64 ) — (858 ) (1,808 ) Ending balance - September 30, 2017 $ 5,734 $ 6,125 $ 2,759 $ 1,028 $ 523 $ 4,008 $ 2,477 $ 828 $ 23,482 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Three Months Ended September 30, 2016 Beginning balance - June 30, 2016 $ 5,924 $ 4,373 $ 3,611 $ 1,944 $ 453 $ 3,764 $ 2,634 $ 1,031 $ 23,734 Provision for loan losses 381 66 48 (126 ) 158 (83 ) (367 ) (6 ) 71 Recoveries of loans previously charged-off 8 32 2 36 — 4 22 95 199 Loans charged off (358 ) — (166 ) (29 ) — — — (161 ) (714 ) Ending balance - September 30, 2016 $ 5,955 $ 4,471 $ 3,495 $ 1,825 $ 611 $ 3,685 $ 2,289 $ 959 $ 23,290 Nine Months Ended September 30, 2016 Beginning balance - December 31, 2015 $ 5,135 $ 5,143 $ 4,176 $ 2,201 $ 311 $ 3,682 $ 2,622 $ 1,190 $ 24,460 Provision for loan losses 896 (807 ) (571 ) (415 ) 300 81 (360 ) 149 (727 ) Recoveries of loans previously charged-off 480 137 109 143 — 15 27 266 1,177 Loans charged off (556 ) (2 ) (219 ) (104 ) — (93 ) — (646 ) (1,620 ) Ending balance - September 30, 2016 $ 5,955 $ 4,471 $ 3,495 $ 1,825 $ 611 $ 3,685 $ 2,289 $ 959 $ 23,290 |
Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually and Collectively Evaluated for Impairment | The following table provides the allocation of the allowance for loan losses by loan category broken out between loans individually evaluated for impairment and loans collectively evaluated for impairment as of September 30, 2017 and December 31, 2016: September 30, 2017 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Amount of allowance allocated to: Individually evaluated for impairment $ 15 $ — $ 24 $ — $ — $ 352 $ 43 $ 11 $ 445 Collectively evaluated for impairment 5,719 6,125 2,735 1,028 523 3,656 2,434 803 23,023 Acquired with deteriorated credit quality — — — — — — — 14 14 Ending balance - September 30, 2017 $ 5,734 $ 6,125 $ 2,759 $ 1,028 $ 523 $ 4,008 $ 2,477 $ 828 $ 23,482 December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Amount of allowance allocated to: Individually evaluated for impairment $ 135 $ — $ 23 $ — $ — $ 113 $ 242 $ — $ 513 Collectively evaluated for impairment 5,174 4,940 3,174 1,613 504 3,189 1,777 863 21,234 Acquired with deteriorated credit quality — — — — — — — — — Ending balance - December 31, 2016 $ 5,309 $ 4,940 $ 3,197 $ 1,613 $ 504 $ 3,302 $ 2,019 $ 863 $ 21,747 |
Amount of Loans by Loan Category Broken Between Loans Individually and Collectively Evaluated for Impairment | The following table provides the amount of loans by loan category broken between loans individually evaluated for impairment and loans collectively evaluated for impairment as of September 30, 2017 and December 31, 2016: September 30, 2017 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 826 $ 1,295 $ 1,272 $ — $ 988 $ 2,785 $ 1,732 $ 23 $ 8,921 Collectively evaluated for impairment 727,885 426,039 433,544 188,392 72,994 459,537 500,713 204,082 3,013,186 Acquired with deteriorated credit quality 2,877 8,080 24,651 — 22 11,073 18,971 26,781 92,455 Ending balance - September 30, 2017 $ 731,588 $ 435,414 $ 459,467 $ 188,392 $ 74,004 $ 473,395 $ 521,416 $ 230,886 $ 3,114,562 December 31, 2016 Commercial and industrial Construction 1-to-4 family residential mortgage Residential line of credit Multi- family residential mortgage Commercial real estate owner occupied Commercial real estate non-owner occupied Consumer and other Total Loans, net of unearned income Individually evaluated for impairment $ 1,476 $ 2,686 $ 2,471 $ 311 $ 1,027 $ 2,752 $ 2,201 $ 27 $ 12,951 Collectively evaluated for impairment 384,279 238,900 290,346 176,879 43,922 350,812 260,361 74,276 1,819,775 Acquired with deteriorated credit quality 478 4,319 2,107 — 28 3,782 5,340 4 16,058 Ending balance - December 31, 2016 $ 386,233 $ 245,905 $ 294,924 $ 177,190 $ 44,977 $ 357,346 $ 267,902 $ 74,307 $ 1,848,784 |
Credit Quality Indicators by Portfolio Class | The following table shows credit quality indicators by portfolio class at September 30, 2017 and December 31, 2016: September 30, 2017 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 671,566 $ 53,388 $ 3,757 $ 728,711 Construction 419,219 6,402 1,713 427,334 Residential real estate: 1-to-4 family mortgage 421,020 6,548 7,248 434,816 Residential line of credit 185,892 1,461 1,039 188,392 Multi-family mortgage 72,214 142 1,626 73,982 Commercial real estate: Owner occupied 429,691 27,960 4,671 462,322 Non-owner occupied 486,487 13,967 1,991 502,445 Consumer and other 202,697 930 478 204,105 Total loans, excluding purchased credit impaired loans $ 2,888,786 $ 110,798 $ 22,523 $ 3,022,107 Purchased credit impaired loans Commercial and industrial $ — $ 1,665 $ 1,212 $ 2,877 Construction — 3,383 4,697 8,080 Residential real estate: 1-to-4 family mortgage — 21,127 3,524 24,651 Residential line of credit — — — — Multi-family mortgage — — 22 22 Commercial real estate: Owner occupied — 3,294 7,779 11,073 Non-owner occupied — 7,740 11,231 18,971 Consumer and other — 18,181 8,600 26,781 Total purchased credit impaired loans $ — $ 55,390 $ 37,065 $ 92,455 Total loans $ 2,888,786 $ 166,188 $ 59,588 $ 3,114,562 December 31, 2016 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 351,046 $ 31,074 $ 3,635 $ 385,755 Construction 236,588 4,612 386 241,586 Residential real estate: 1-to-4 family mortgage 277,948 6,945 7,924 292,817 Residential line of credit 173,011 1,875 2,304 177,190 Multi-family mortgage 43,770 152 1,027 44,949 Commercial real estate: Owner occupied 338,698 10,459 4,407 353,564 Non-owner occupied 249,877 10,273 2,412 262,562 Consumer and other 73,454 417 432 74,303 Total loans, excluding purchased credit impaired loans $ 1,744,392 $ 65,807 $ 22,527 $ 1,832,726 Purchased credit impaired loans Commercial and industrial $ — $ — $ 478 $ 478 Construction — — 4,319 4,319 Residential real estate: 1-to-4 family mortgage — — 2,107 2,107 Residential line of credit — — — — Multi-family mortgage — — 28 28 Commercial real estate: Owner occupied — — 3,782 3,782 Non-owner occupied — — 5,340 5,340 Consumer and other — — 4 4 Total purchased credit impaired loans $ — $ — $ 16,058 $ 16,058 Total loans $ 1,744,392 $ 65,807 $ 38,585 $ 1,848,784 |
Changes in Accretable Yield on Purchase Credit Impaired Loans | Changes in accretable yield on purchase credit impaired loans were as follows: Purchased Credit Impaired Accretable yield Balance at June 30, 2017 $ (1,845 ) Additions through the acquisition of the Clayton Banks (18,457 ) Principal reductions/ pay-offs (690 ) Recoveries — Accretion 1,646 Balance at September 30, 2017 $ (19,346 ) Balance at June 30, 2016 $ (1,248 ) Principal reductions/ pay-offs (381 ) Accretion 590 Balance at September 30, 2016 $ (1,039 ) Purchased Credit Impaired Accretable yield Balance at December 31, 2016 $ (2,444 ) Additions through the acquisition of the Clayton Banks (18,457 ) Principal reductions/ pay-offs (1,680 ) Recoveries (23 ) Accretion 3,258 Balance at September 30, 2017 $ (19,346 ) Balance at December 31, 2015 $ (1,637 ) Principal reductions/ pay-offs (1,839 ) Accretion 2,437 Balance at September 30, 2016 $ (1,039 ) |
Past Due Loans | Nonperforming loans include loans that are no longer accruing interest (non-accrual loans) and loans past due ninety or more days and still accruing interest. Nonperforming loans and impaired loans are defined differently. Some loans may be included in both categories, whereas other loans may only be included in one category. The following table provides the period-end amounts of loans that are past due thirty to eighty-nine days, past due ninety or more days and still accruing interest, loans not accruing interest, loans current on payments accruing interest and purchased credit impaired loans by category at September 30, 2017 and December 31, 2016: September 30, 2017 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 388 $ 37 $ 469 $ 727,817 $ 2,877 $ 731,588 Construction 596 44 239 426,455 8,080 435,414 Residential real estate: 1-to-4 family mortgage 3,600 520 2,257 428,439 24,651 459,467 Residential line of credit 932 250 529 186,681 — 188,392 Multi-family mortgage — 87 — 73,895 22 74,004 Commercial real estate: Owner occupied 2,520 134 2,308 457,360 11,073 473,395 Non-owner occupied — — 1,916 500,529 18,971 521,416 Consumer and other 2,326 166 31 201,582 26,781 230,886 Total $ 10,362 $ 1,238 $ 7,749 $ 3,002,758 $ 92,455 $ 3,114,562 December 31, 2016 30-89 days past due 90 days or more and accruing interest Non-accrual loans Loans current on payments and accruing interest Purchased Credit Impaired loans Total Commercial and industrial $ 262 $ 127 $ 1,297 $ 384,069 $ 478 $ 386,233 Construction 441 17 254 240,874 4,319 245,905 Residential real estate: 1-to-4 family mortgage 3,130 697 2,289 286,701 2,107 294,924 Residential line of credit 1,139 433 601 175,017 — 177,190 Multi-family mortgage — — — 44,949 28 44,977 Commercial real estate: Owner occupied 186 — 2,007 351,371 3,782 357,346 Non-owner occupied 158 — 2,251 260,153 5,340 267,902 Consumer and other 433 55 30 73,785 4 74,307 Total $ 5,749 $ 1,329 $ 8,729 $ 1,816,919 $ 16,058 $ 1,848,784 |
Impaired Loans Recognized, Segregated by Class | Impaired loans recognized in conformity with ASC 310 at September 30, 2017 and December 31, 2016, segregated by class, were as follows: September 30, 2017 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 53 $ 53 $ 15 Construction — — — Residential real estate: 1-to-4 family mortgage 199 501 24 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 1,077 1,123 352 Non-owner occupied 148 151 43 Consumer and other 22 22 11 Total $ 1,499 $ 1,850 $ 445 With no related allowance recorded Commercial and industrial $ 773 $ 977 $ — Construction 1,295 1,315 — Residential real estate: 1-to-4 family mortgage 1,073 1,077 — Residential line of credit — — — Multi-family mortgage 988 988 — Commercial real estate: Owner occupied 1,708 2,183 — Non-owner occupied 1,584 2,856 — Consumer and other 1 1 — Total $ 7,422 $ 9,397 $ — Total impaired loans $ 8,921 $ 11,247 $ 445 December 31, 2016 Recorded investment Unpaid principal Related allowance With a related allowance recorded: Commercial and industrial $ 854 $ 854 $ 135 Construction — — — Residential real estate: 1-to-4 family mortgage 103 369 23 Residential line of credit — — — Multi-family mortgage — — — Commercial real estate: Owner occupied 635 654 113 Non-owner occupied 1,151 1,678 242 Consumer and other 1 1 — Total $ 2,744 $ 3,556 $ 513 With no related allowance recorded: Commercial and industrial $ 622 $ 746 $ — Construction 2,686 2,694 — Residential real estate: 1-to-4 family mortgage 2,368 2,370 — Residential line of credit 311 321 — Multi-family mortgage 1,027 1,027 — Commercial real estate: Owner occupied 2,117 3,205 — Non-owner occupied 1,050 1,781 — Consumer and other 26 26 — Total $ 10,207 $ 12,170 $ — Total impaired loans $ 12,951 $ 15,726 $ 513 Average recorded investment and interest income on a cash basis recognized during the three and nine months ended September 30, 2017 and 2016 on impaired loans, segregated by class, were as follows: Three Months Ended Nine Months Ended September 30, 2017 Average recorded investment Interest income recognized (cash basis) Average recorded investment Interest income recognized (cash basis) With a related allowance recorded: Commercial and industrial $ 392 $ 2 $ 454 $ 2 Construction — — — — Residential real estate: 1-to-4 family mortgage 148 7 151 7 Residential line of credit — — — — Multi-family mortgage — — — — Commercial real estate: Owner occupied 843 39 856 39 Non-owner occupied 328 3 650 3 Consumer and other 11 1 12 1 Total $ 1,721 $ 52 $ 2,122 $ 52 With no related allowance recorded: Commercial and industrial $ 633 $ 34 $ 698 $ 34 Construction 797 41 1,991 41 Residential real estate: 1-to-4 family mortgage 1,584 51 1,721 51 Residential line of credit — — 156 — Multi-family mortgage 995 34 1,008 34 Commercial real estate: Owner occupied 1,737 92 1,913 92 Non-owner occupied 1,590 12 1,317 12 Consumer and other 13 — 14 — Total $ 7,347 $ 264 $ 8,815 $ 264 Total impaired loans $ 9,068 $ 316 $ 10,936 $ 316 September 30, 2016 With a related allowance recorded: Commercial and industrial $ 363 $ 3 $ 820 $ 14 Construction — — 102 — Residential real estate: 1-to-4 family mortgage 200 1 1,482 27 Residential line of credit 319 4 213 6 Multi-family mortgage — — — — Commercial real estate: Owner occupied 807 17 1,115 18 Non-owner occupied 2,573 4 2,776 13 Consumer and other 2 — 1 — Total $ 4,264 $ 29 $ 6,509 $ 78 With no related allowance recorded: Commercial and industrial $ 1,318 $ 13 $ 767 $ 17 Construction 2,782 36 2,712 99 Residential real estate: 1-to-4 family mortgage 2,680 19 2,060 103 Residential line of credit — — — — Multi-family mortgage 1,037 13 1,052 25 Commercial real estate: Owner occupied 2,239 33 1,378 75 Non-owner occupied 1,413 1 1,212 2 Consumer and other — — — — Total $ 11,469 $ 115 $ 9,181 $ 321 Total impaired loans $ 15,733 $ 144 $ 15,690 $ 399 |
Financial Effect of TDRs | The following table presents the financial effect of TDRs recorded during the periods indicated: Three Months Ended September 30, 2017 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 143 $ 143 $ 8 Total 1 $ 143 $ 143 $ 8 Three Months Ended September 30, 2016 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Residential real estate: 1-to-4 family mortgage 1 $ 1,098 $ 1,098 $ — Commercial real estate: Owner occupied 1 118 118 — Consumer and other 2 4 4 — Total 4 $ 1,220 $ 1,220 $ — Nine Months Ended September 30, 2017 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 5 $ 5 $ — Residential real estate: 1-to-4 family mortgage 1 143 143 8 Commercial real estate: Owner occupied 1 377 377 — Non-owner occupied 2 711 711 — Total 5 $ 1,236 $ 1,236 $ 8 Nine Months Ended September 30, 2016 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 6 $ 2,301 $ 2,301 $ 86 Residential real estate: 1-4 family mortgage 5 326 326 45 Commercial real estate: Owner occupied 2 786 786 — Non-owner occupied 1 133 133 — Total 14 $ 3,546 $ 3,546 $ 131 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Real Estate [Abstract] | |
Summary of Other Real Estate Owned | The following table summarizes other real estate owned for the three and nine months ended September 30, 2017 and 2016: Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Balance at beginning of period $ 6,370 $ 9,902 $ 7,403 $ 11,641 Transfers from loans 1,796 460 2,958 2,636 Acquired through merger with the Clayton Banks (1) 6,888 — 6,888 — Properties sold (1,152 ) (3,044 ) (4,082 ) (6,558 ) Gain on sale of other real estate owned 93 1,680 1,041 1,749 Transferred to loans (165 ) — (201 ) (259 ) Write-downs and partial liquidations (18 ) (34 ) (195 ) (245 ) Balance at end of period $ 13,812 $ 8,964 $ 13,812 $ 8,964 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | The following table summarizes changes in goodwill during the nine months ended September 30, 2017. Goodwill Balance at December 31, 2016 $ 46,867 Addition from merger with Clayton Banks (see Note 2) 92,043 Balance at September 30, 2017 $ 138,910 |
Schedule of Change in Balance for Core Deposit Intangibles | Goodwill is tested annually, or more often if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and is written down to its implied fair value. Subsequent increases in goodwill values are not recognized in the financial statements. Goodwill impairment was neither indicated nor recorded during the nine months ended September 30, 2017 or the year ended December 31, 2016. The change in balance for core deposit intangibles during the year is as follows: Core deposit intangible Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Beginning Balance $ 4,048 $ 5,616 $ 4,563 $ 6,695 Addition from merger with Clayton Banks (see Note 2) 9,060 — 9,060 — Less: amortization expense (558 ) (526 ) (1,073 ) (1,605 ) Ending Balance $ 12,550 $ 5,090 $ 12,550 $ 5,090 |
Schedule of Estimated Aggregate Amortization | On July 31, 2017, the Company recorded $9,060 of core deposit intangibles resulting from the merger with the Clayton Banks, which is being amortized over a weighted average life of approximately 3 years. The estimated aggregate amortization expense of core deposit intangibles for each of the next five years and thereafter is as follows: Remainder of 2017 $ 754 December 31, 2018 2,780 December 31, 2019 2,394 December 31, 2020 2,008 December 31, 2021 1,622 Thereafter 2,992 $ 12,550 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Transfers And Servicing Of Financial Assets [Abstract] | |
Schedule of Changes in Mortgage Servicing Rights | Changes in the Company’s mortgage servicing rights were as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Carrying value prior to policy change $ 48,464 $ 40,382 $ 32,070 $ 29,711 Fair value impact of change in accounting policy (See Note 1) — — 1,011 — Carrying value at beginning of period 48,464 40,382 33,081 29,711 Capitalization 15,965 11,107 45,624 30,890 Amortization — (2,796 ) — (6,221 ) Sales — — (11,935 ) — Impairment — (2,402 ) — (8,089 ) Change in fair value: Due to pay-offs/pay-downs (975 ) — (1,772 ) — Due to change in valuation inputs or assumptions (408 ) — (1,952 ) — Carrying value at June 30 $ 63,046 $ 46,291 $ 63,046 $ 46,291 |
Schedule of Servicing Income and Expense Included in Mortgage Banking Income | The following table summarizes servicing income and expense included in mortgage banking income and other noninterest expense within the Mortgage Segment operating results, respectively, for the three and nine months ended September 30, 2017 and 2016, respectively: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Servicing income: Servicing income $ 3,463 $ 3,661 $ 8,958 $ 8,312 Change in fair value of mortgage servicing rights (1,383 ) — (3,724 ) — Change in fair value of mortgage servicing rights hedging instruments 490 — 490 — Gross servicing income 2,570 3,661 5,724 8,312 Servicing expenses: Servicing asset amortization — 2,796 — 6,221 Servicing asset impairment — 2,402 — 8,089 Loss on sale of mortgage servicing rights — — 249 — Other servicing expenses 1,043 686 3,181 1,632 Gross servicing expenses 1,043 5,884 3,430 15,942 Net servicing income (loss) $ 1,527 $ (2,223 ) $ 2,294 $ (7,630 ) |
Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights | Data and key economic assumptions related to the Company’s mortgage servicing rights as of September 30, 2017 and December 31, 2016 are as follows: September 30, December 31, 2017 2016 Unpaid principal balance $ 5,549,662 $ 2,833,958 Weighted-average prepayment speed (CPR) 9.30 % 8.40 % Estimated impact on fair value of a 10% increase (2,579 ) (1,256 ) Estimated impact on fair value of a 20% increase (4,985 ) (2,434 ) Discount rate 9.79 % 9.54 % Estimated impact on fair value of a 100 bp increase (2,486 ) (1,394 ) Estimated impact on fair value of a 200 bp increase (4,782 ) (2,679 ) Weighted-average coupon interest rate 3.93 % 3.59 % Weighted-average servicing fee (basis points) 28 27 Weighted-average remaining maturity (in months) 337 328 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions | Allocation of federal and state income taxes between current and deferred portions is as follows: For the three months ended September 30, 2017 2016 Current $ 4,328 $ 1,579 Deferred 274 13,193 Total $ 4,602 $ 14,772 For the nine months ended September 30, 2017 2016 Current $ 8,375 $ 2,707 Deferred 8,226 14,239 Total $ 16,601 $ 16,946 |
Schedule of Differences in Federal Income Tax Expense and State Tax Expense from Statutory Federal and State Rates | Federal income tax expense for the three and nine months ended September 30, 2017 and 2016 differs from the statutory federal rate of 35% due to the following: For the three months ended September 30, 2017 2016 Federal taxes calculated at statutory rate $ 4,547 $ 3,338 Increase (decrease) resulting from: State taxes, net of federal benefit 528 524 Conversion as of September 16, 2016 to C Corporation — 13,181 Benefit of equity based compensation (384 ) — Other (89 ) (2,271 ) Income tax expense, as reported $ 4,602 $ 14,772 For the nine months ended September 30, 2017 2016 Federal taxes calculated at statutory rate $ 16,086 $ 3,338 Increase (decrease) resulting from: State taxes, net of federal benefit 1,879 2,607 Conversion as of September 16, 2016 to C Corporation — 13,181 Benefit of equity based compensation (883 ) — Other (481 ) (2,180 ) Income tax expense, as reported $ 16,601 $ 16,946 |
Schedule of Net Deferred Tax liability | The components of the net deferred tax liability at September 30, 2017 and December 31, 2016, are as follows: September 30, December 31, 2017 2016 Deferred tax assets: Allowance for loan losses $ 9,196 $ 8,516 Amortization of core deposit intangible 1,023 996 Compensation related 7,306 7,552 Unrealized loss on securities 884 2,462 Other 6,248 2,430 Subtotal 24,657 21,956 Deferred tax liabilities: FHLB stock dividends (827 ) (827 ) Depreciation (6,417 ) (6,548 ) Mortgage servicing rights (24,689 ) (12,558 ) Other (7,106 ) (6,203 ) Subtotal (39,039 ) (26,136 ) Net deferred tax liability $ (14,382 ) $ (4,180 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Financial instruments with Off-Balance Sheet Credit Risk | Commitments may expire without being used. Off-balance sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. September 30, December 31, 2017 2016 Commitments to extend credit, excluding interest rate lock commitments $ 951,679 $ 579,879 Letters of credit 26,774 22,547 Balance at end of period $ 978,453 $ 602,426 |
Summary of Allowance for Loan Repurchases or Indemnifications | The following table summarizes the activity in the repurchase reserve: For the three months ended For the nine months ended September 30, September 30, 2017 2016 2017 2016 Balance at beginning of period $ 3,037 $ 2,859 $ 2,659 $ 2,156 Provision for loan repurchases or indemnifications 410 470 794 1,173 Recoveries on previous losses — — — — Losses on loans repurchased or indemnified (27 ) 13 (33 ) 13 Balance at end of period $ 3,420 $ 3,342 $ 3,420 $ 3,342 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Financial Instruments | The following tables provide details on the Company’s derivative financial instruments as of the dates presented: September 30, 2017 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 139,545 $ 1,456 $ 1,456 Forward commitments 851,000 154 — Interest rate-lock commitments 540,672 8,423 — Futures contracts 350,000 — 978 Total $ 1,881,217 $ 10,033 $ 2,434 December 31, 2016 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 22,243 $ 586 $ 586 Forward commitments 829,000 12,731 — Interest rate-lock commitments 532,920 6,428 — Futures contracts — — — Total $ 1,384,163 $ 19,745 $ 586 September 30, 2017 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 130,000 $ 283 $ — Total $ 130,000 $ 283 $ — |
Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments | Gains (losses) included in the Consolidated Statements of Income related to the Company’s derivative financial instruments were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Derivatives not designated as hedging instruments: Interest rate lock commitments: Included in mortgage banking income $ 486 $ (1,043 ) $ 1,995 $ 10,922 Forward commitments: Included in mortgage banking income (4,221 ) (4,374 ) (11,469 ) (21,149 ) Futures contracts Included in mortgage banking income 66 — 66 — Total $ (3,669 ) $ (5,417 ) $ (9,408 ) $ (10,227 ) Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in other interest expense $ 150 — $ 150 — |
Schedule of Other Comprehensive Income (Loss), Net of Tax, for Derivative Instruments Designated as Cash Flow Hedges | The following table discloses the amount included in other comprehensive income (loss), net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Designated as hedging: Amount of gain recognized in other comprehensive income, net of tax $ 172 — $ 172 — |
Fair Value of Financial Instr35
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The estimated fair values of the Company’s financial instruments are as follows: Fair Value September 30, 2017 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 97,165 $ 97,165 $ — $ — $ 97,165 Available-for-sale securities 543,282 — 539,678 3,604 543,282 Federal Home Loan Bank Stock 11,152 — — 11,152 11,152 Loans, net 3,091,080 — 2,999,008 78,920 3,077,928 Loans held for sale 466,369 — 466,369 — 466,369 Interest receivable 11,218 — 11,218 — 11,218 Mortgage servicing rights 63,046 — — 63,046 63,046 Derivatives 10,316 — 10,316 — 10,316 Financial liabilities: Deposits: Without stated maturities $ 3,051,322 $ 3,051,322 $ — $ — $ 3,051,322 With stated maturities 667,216 — 662,988 — 662,988 Securities sold under agreement to repurchase 14,556 14,556 — — 14,556 Short term borrowings 52,766 52,766 — — 52,766 Interest payable 1,262 367 895 — 1,262 Long-term debt 143,533 — 148,136 — 148,136 Derivatives 2,434 — 2,434 — 2,434 Fair Value December 31, 2016 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 136,327 $ 136,327 $ — $ — $ 136,327 Available-for-sale securities 582,183 — 577,634 4,549 582,183 Federal Home Loan Bank Stock 7,743 — — 7,743 7,743 Loans, net 1,827,037 — 1,822,054 1,281 1,823,335 Loans held for sale 507,442 — 507,442 — 507,442 Interest receivable 7,241 — 7,241 — 7,241 Mortgage servicing rights, net 32,070 — — 33,081 33,081 Derivatives 19,745 — 19,745 — 19,745 Financial liabilities: Deposits: Without stated maturities $ 2,280,531 $ 2,280,531 $ — $ — $ 2,280,531 With stated maturities 391,031 — 390,484 — 390,484 Securities sold under agreement to repurchase 21,561 21,561 — — 21,561 Short term borrowings 150,000 150,000 — — 150,000 Interest payable 620 237 383 — 620 Long-term debt 44,892 — 47,377 — 47,377 Derivatives 586 — 586 — 586 |
Balances and Levels of Assets Measured at Fair Value on Recurring Basis | The balances and levels of the assets measured at fair value on a recurring basis at September 30, 2017 are presented in the following tables: At September 30, 2017 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 992 $ — $ 992 Mortgage-backed securities — 418,794 — 418,794 Municipals, tax-exempt — 106,950 — 106,950 Treasury securities — 8,819 — 8,819 Equity securities — 4,123 3,604 7,727 Total $ — $ 539,678 $ 3,604 $ 543,282 Loans held for sale — 466,369 — 466,369 Mortgage servicing rights — — 63,046 63,046 Derivatives — 10,316 — 10,316 Financial Liabilities: Derivatives $ — $ 2,434 $ — $ 2,434 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 985 $ — $ 985 Mortgage-backed securities — 443,908 — 443,908 Municipals, tax-exempt — 116,923 — 116,923 Treasury securities — 11,757 — 11,757 Equity securities — 4,061 4,549 8,610 Total $ — $ 577,634 $ 4,549 $ 582,183 Loans held for sale — 507,442 — 507,442 Derivatives — 19,745 — 19,745 Financial Liabilities: Derivatives $ — $ 586 $ — $ 586 |
Balances and Levels of Assets Measured at Fair Value on Non-recurring Basis | The balances and levels of the assets measured at fair value on a non-recurring basis at September 30, 2017 are presented in the following tables: At September 30, 2017 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 8,704 $ 8,704 Impaired loans: Commercial and industrial — — 2,659 2,659 Construction 4,295 Residential real estate: 1-4 family mortgage — — 22,948 22,948 Commercial real estate: — — — Owner occupied 8,306 Non-owner occupied — — 13,912 13,912 Consumer and other — — 26,800 26,800 Total $ — $ — $ 78,920 $ 78,920 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2016 are presented in the following tables: At December 31, 2016 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant other observable inputs (level 2) Significant unobservable inputs (level 3) Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 2,315 $ 2,315 Mortgage servicing rights — — 32,070 32,070 Impaired Loans: Commercial and industrial — — 542 542 Residential real estate: 1-4 family mortgage — — 103 103 Commercial real estate: Owner occupied — — 635 635 Consumer and other — — 1 1 Total $ — $ — $ 1,281 $ 1,281 |
Summary of Changes in Fair Value on Available-for-Sale Securities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs | The following table summarizes changes in fair value on available-for-sale securities measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, during the three and nine months ended September 30, 2017 and 2016. Available-for-sale securities Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 4,549 $ 4,856 $ 4,549 $ 4,856 Realized gains included in net income — — — — Unrealized gains included in other comprehensive income — — — — Impairment of equity securities (945 ) — (945 ) — Purchases — — — — Capital distribution — (307 ) — (307 ) Balance at end of period $ 3,604 $ 4,549 $ 3,604 $ 4,549 |
Information About Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis | The following table presents information as of September 30, 2017 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 78,920 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 8,704 Appraised value of property less costs to sell Discount for costs to sell 0%-15% The following table presents information as of December 31, 2016 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Valuation technique Significant Unobservable inputs Range of inputs Impaired loans $ 1,281 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 2,315 Appraised value of property less costs to sell Discount for costs to sell 0%-10% Mortgage servicing rights, net $ 33,081 Discounted cash flows See Note 7 See Note 7 |
Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value | The following table summarizes the differences between the fair value and the principal balance for loans held for sale measured at fair value as of September 30, 2017 and December 31, 2016: September 30, 2017 Aggregate fair value Aggregate Unpaid Principal Balance Difference Mortgage loans held for sale measured at fair value $ 452,794 $ 424,081 $ 28,713 Past due loans of 90 days or more — — — Nonaccrual loans — — — December 31, 2016 Mortgage loans held for sale measured at fair value $ 507,442 $ 501,503 $ 5,939 Past due loans of 90 days or more — — — Nonaccrual loans — — — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables provides segment financial information for the three and nine months ended September 30, 2017 and 2016 follows: Three Months Ended September 30, 2017 Banking Mortgage Consolidated Net interest income $ 43,741 $ (131 ) $ 43,610 Provision for loan loss (784 ) — (784 ) Mortgage banking income 7,498 24,729 32,227 Change in fair value of mortgage servicing rights (1) — (893 ) (893 ) Other noninterest income 6,486 — 6,486 Depreciation 972 125 1,097 Amortization of intangibles 558 — 558 Loss on sale of mortgage servicing rights — — — Other noninterest mortgage banking expense 6,216 19,632 25,848 Other noninterest expense (2) 41,721 — 41,721 Income before income taxes 9,042 3,948 12,990 Income tax expense 4,602 Net income 8,388 Total assets $ 4,056,901 $ 525,042 $ 4,581,943 Goodwill 138,810 100 138,910 (1) Included in mortgage banking income. (2) Included $15,711 in merger and conversion expenses related to the merger with the Clayton Banks. Three Months Ended September 30, 2016 Banking Mortgage Consolidated Net interest income $ 28,158 $ (541 ) $ 27,617 Provision for loan loss 71 — 71 Mortgage banking income 8,878 28,060 36,938 Other noninterest income 7,024 — 7,024 Depreciation 927 45 972 Amortization of intangibles 526 — 526 Amortization and impairment of mortgage servicing rights — 5,198 5,198 Other noninterest mortgage banking expense 7,293 18,501 25,794 Other noninterest expense (1) 23,039 — 23,039 Income before income taxes 12,204 3,775 15,979 Income tax expense 14,772 Net income 1,207 Total assets $ 2,661,116 $ 526,064 $ 3,187,180 Goodwill 46,767 100 46,867 (1) Included $1,122 in merger and conversion expenses related to the merger with NWGB. Nine Months Ended September 30, 2017 Banking Mortgage Consolidated Net interest income $ 103,596 $ 692 $ 104,288 Provision for loan loss (1,906 ) — (1,906 ) Mortgage banking income 20,282 69,605 89,887 Change in fair value of mortgage servicing rights (1) — (3,234 ) (3,234 ) Other noninterest income 17,911 — 17,911 Depreciation 2,697 393 3,090 Amortization of intangibles 1,073 — 1,073 Loss on sale of mortgage servicing rights — 249 249 Other noninterest mortgage banking expense 16,420 56,587 73,007 Other noninterest expense (2) 87,358 — 87,358 Income before income taxes 36,147 9,834 45,981 Income tax expense 16,601 Net income 29,380 Total assets $ 4,056,901 $ 525,042 $ 4,581,943 Goodwill 138,810 100 138,910 (1) Included in mortgage banking income (2) Included $16,965 in merger and conversion expenses related to the merger with the Clayton Banks. Nine Months Ended September 30, 2016 Banking Mortgage Consolidated Net interest income $ 83,389 $ (1,471 ) $ 81,918 Provision for loan loss (727 ) — (727 ) Mortgage banking income 22,237 69,337 91,574 Other noninterest income 21,779 — 21,779 Depreciation and amortization 2,729 265 2,994 Amortization of intangibles 1,605 — 1,605 Amortization and impairment of mortgage servicing rights — 14,310 14,310 Other noninterest mortgage banking expense 15,223 47,360 62,583 Other noninterest expense (1) 65,979 — 65,979 Income before income taxes 42,596 5,931 48,527 Income tax expense 16,946 Net income 31,581 Total assets $ 2,661,116 $ 526,064 $ 3,187,180 Goodwill 46,767 100 46,867 |
Minimum Capital Requirements (T
Minimum Capital Requirements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Banking And Thrift [Abstract] | |
Schedule of Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are presented below at period-end: Actual For capital adequacy purposes Minimum Capital adequacy with capital buffer To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio September 30, 2017 Total Capital (to risk-weighted assets) FB Financial Corporation $ 481,360 12.18 % $ 316,164 8.0 % $ 365,565 9.25 % N/A N/A FirstBank 449,795 11.31 % 318,157 8.0 % 367,869 9.25 % $ 397,697 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 457,878 11.58 % $ 237,242 6.0 % $ 286,668 7.25 % N/A N/A FirstBank 426,313 10.72 % 238,608 6.0 % 288,318 7.25 % $ 238,608 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 457,878 11.35 % $ 161,367 4.0 % N/A N/A N/A N/A FirstBank 426,313 10.58 % 161,177 4.0 % N/A N/A $ 201,471 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 427,878 10.82 % $ 177,953 4.5 % $ 227,384 5.75 % N/A N/A FirstBank 426,313 10.72 % 178,956 4.5 % 228,666 5.75 % $ 258,492 6.5 % Actual For capital adequacy purposes Minimum Capital adequacy with capital buffer To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total Capital (to risk-weighted assets) FB Financial Corporation $ 338,893 13.03 % $ 208,069 8.0 % $ 224,325 8.63 % N/A N/A FirstBank 304,018 11.72 % 207,521 8.0 % 223,733 8.63 % $ 259,401 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 317,146 12.19 % $ 156,101 6.0 % $ 172,362 6.63 % N/A N/A FirstBank 282,271 10.88 % 155,664 6.0 % 171,879 6.63 % $ 155,664 6.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 317,146 10.05 % $ 126,227 4.0 % N/A N/A N/A N/A FirstBank 282,271 8.95 % 126,155 4.0 % N/A N/A $ 157,693 5.0 % Common Equity Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 287,146 11.04 % $ 117,043 4.5 % $ 133,299 5.13 % N/A N/A FirstBank 282,271 10.88 % 116,748 4.5 % 132,963 5.13 % $ 168,636 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Vested and Unvested Restricted Stock Units Outstanding | The following table summarizes information about vested and unvested restricted stock units outstanding at September 30, 2017 and 2016: For the nine months ended September 30, 2017 2016 Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Restricted Stock Units Outstanding Weighted Average Grant Date Fair Value Balance at beginning of period 1,200,848 $ 19.00 — Conversion of deferred compensation plan — 19.00 157,895 19.00 Conversion of equity based incentive (EBI) plans — 19.00 125,684 19.00 Grants 103,714 33.91 1,077,058 19.00 Released and distributed (vested) 93,315 19.00 44,590 19.00 Forfeited/expired 3,133 19.00 — Balance at end of period 1,208,114 $ 19.67 1,405,227 19.00 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates | An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates follows: Loans outstanding at January 1, 2017 $ 27,370 New loans and advances 2,807 Repayments (3,745 ) Loans outstanding at September 30, 2017 $ 26,432 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Thousands | May 26, 2017USD ($)$ / sharesshares | Jan. 02, 2017USD ($) | Sep. 15, 2016USD ($)$ / sharesshares | Aug. 15, 2016USD ($) | Jun. 28, 2016shares | Sep. 30, 2016 | Sep. 30, 2017USD ($)Branch$ / sharesshares | Sep. 30, 2016USD ($) | Dec. 31, 2016$ / sharesshares | Jul. 31, 2016shares |
Class Of Stock [Line Items] | ||||||||||
Description of stock split | the Company declared a 100-for-1 stock split, increasing the number of issued and authorized shares from 171,800 to 17,180,000 and 250,000 to 25,000,000, respectively. | |||||||||
Stock split ratio | 0.01 | |||||||||
Common stock, shares issued | shares | 30,526,592 | 24,107,660 | ||||||||
Common stock, shares authorized | shares | 75,000,000 | 75,000,000 | ||||||||
Proceeds from issuance of common stock, net of offering costs | $ | $ 153,356 | $ 115,525 | ||||||||
Common stock sold and issued, par value | $ / shares | $ 1 | $ 1 | ||||||||
Percent of remaining principal allowed to buy back under GNMA optional repurchase programs | 100.00% | |||||||||
GNMA | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Mortgage loans held for sale measured at fair value | $ | $ 13,575 | |||||||||
ASC 860-50-35, Transfers and Servicing | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Adjustment to retained earnings | $ | $ 615 | |||||||||
Pro forma | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Effective tax rate | 37.21% | 37.33% | ||||||||
Initial Public Offering | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock sold and issued, shares | shares | 6,764,704 | |||||||||
Common stock sold and issued, price per share | $ / shares | $ 19 | |||||||||
Proceeds from issuance of common stock, net of offering costs | $ | $ 115,525 | |||||||||
Distribution to majority shareholder from net proceeds | $ | 55,000 | |||||||||
Repayments of aggregate principal amount of subordinated notes from net proceeds | $ | $ 10,075 | $ 10,075 | ||||||||
Private Placement | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock sold and issued, shares | shares | 4,806,710 | |||||||||
Proceeds from issuance of common stock, net of offering costs | $ | $ 152,721 | |||||||||
Common stock sold and issued, par value | $ / shares | $ 1 | |||||||||
Common stock purchase price per share | $ / shares | $ 33 | |||||||||
Placement agent and other offering costs | $ | $ 5,901 | |||||||||
Minimum | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock, shares issued | shares | 171,800 | |||||||||
Common stock, shares authorized | shares | 250,000 | 25,000,000 | ||||||||
Maximum | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Common stock, shares issued | shares | 17,180,000 | |||||||||
Common stock, shares authorized | shares | 25,000,000 | 75,000,000 | ||||||||
FirstBank | ||||||||||
Class Of Stock [Line Items] | ||||||||||
Number of bank branches | Branch | 63 |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Basic earnings per share calculation: | ||||
Net income | $ 8,388 | $ 1,207 | $ 29,380 | $ 31,581 |
Weighted-average basic shares outstanding | 30,004,952 | 18,259,128 | 26,649,942 | 17,542,335 |
Basic earnings per share | $ 0.28 | $ 0.07 | $ 1.10 | $ 1.80 |
Diluted earnings per share: | ||||
Net income | $ 8,388 | $ 1,207 | $ 29,380 | $ 31,581 |
Weighted-average basic shares outstanding | 30,004,952 | 18,259,128 | 26,649,942 | 17,542,335 |
Average diluted common shares outstanding | 599,585 | 73,064 | 548,431 | 24,532 |
Weighted-average diluted shares outstanding | 30,604,537 | 18,332,192 | 27,198,373 | 17,566,867 |
Diluted earnings per share | $ 0.27 | $ 0.07 | $ 1.08 | $ 1.80 |
Pro forma earnings per share: | ||||
Pro forma net income | $ 8,388 | $ 10,033 | $ 29,380 | $ 30,412 |
Weighted-average basic shares outstanding | 30,004,952 | 18,259,128 | 26,649,942 | 17,542,335 |
Pro forma basic earnings per share | $ 0.28 | $ 0.55 | $ 1.10 | $ 1.73 |
Pro forma diluted earnings per share: | ||||
Pro forma net income | $ 8,388 | $ 10,033 | $ 29,380 | $ 30,412 |
Weighted-average diluted shares outstanding | 30,604,537 | 18,332,192 | 27,198,373 | 17,566,867 |
Pro forma diluted earnings per share | $ 0.27 | $ 0.55 | $ 1.08 | $ 1.73 |
Mergers and acquisitions - Addi
Mergers and acquisitions - Additional Information (Details) | Jul. 31, 2017USD ($) | Feb. 08, 2017USD ($)shares | Sep. 18, 2015USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Branch | Sep. 30, 2016USD ($) | Jul. 30, 2017BankingOffice | Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 138,910,000 | $ 46,867,000 | $ 138,910,000 | $ 46,867,000 | $ 46,867,000 | |||||
Merger and conversion | 15,711,000 | 1,122,000 | 16,965,000 | 3,268,000 | ||||||
Core deposit intangible asset | 587,000 | $ 587,000 | ||||||||
Clayton Banks | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, date of acquisition agreement | Feb. 8, 2017 | |||||||||
Acquisition purchase price | $ 236,484,000 | $ 236,484,000 | ||||||||
Business acquisition, shares issued | shares | 1,521,200 | |||||||||
Cash purchase price | 184,200,000 | [1] | $ 184,200,000 | |||||||
Number of banking offices | BankingOffice | 18 | |||||||||
Goodwill | 92,043,000 | |||||||||
Merger and conversion | $ 15,711,000 | $ 16,965,000 | ||||||||
Business combination, deferred taxes | $ 0 | |||||||||
Number of years of deductibility for income tax of the goodwill and core deposit intangible | 15 years | |||||||||
Northwest Georgia Bank | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Business acquisition, date of acquisition agreement | Apr. 27, 2015 | |||||||||
Cash purchase price | $ 1,500,000 | |||||||||
Merger and conversion | $ 1,122,000 | $ 3,268,000 | ||||||||
Business acquisition, effective date of acquisition | Sep. 18, 2015 | |||||||||
Number of branches operated prior to acquisition | Branch | 6 | |||||||||
Business combination, bargain purchase gain | 2,794,000 | |||||||||
Core deposit intangible asset | $ 4,931,000 | |||||||||
[1] | Amount was deposited into an interest-bearing account with the Bank of which $34,200 was included in cash and cash equivalents and interest-bearing deposits in the above schedule of net assets acquired as of July, 31, 2017 |
Mergers and acquisitions - Sche
Mergers and acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Clayton Banks $ in Thousands | Jul. 31, 2017USD ($) | |
Assets | ||
Cash and cash equivalents | $ 49,059 | |
Investment securities | 59,493 | |
FHLB stock | 3,409 | |
Loans | 1,060,508 | |
Premises and equipment | 19,480 | |
Other real estate owned | 6,888 | |
Core deposit intangible | 9,060 | |
Other assets | 6,138 | |
Total assets | 1,214,035 | |
Liabilities | ||
Interest-bearing deposits | 670,054 | |
Non-interest bearing deposits | 309,464 | |
Borrowings | 84,831 | |
Accrued expenses and other liabilities | 5,245 | |
Total liabilities | 1,069,594 | |
Net assets acquired | 144,441 | |
Historical Cost Basis | ||
Assets | ||
Cash and cash equivalents | 49,059 | [1] |
Investment securities | 59,108 | [1] |
FHLB stock | 3,409 | [1] |
Loans | 1,075,441 | [1] |
Allowance for loan losses | (19,985) | [1] |
Premises and equipment | 15,011 | [1] |
Other real estate owned | 6,244 | [1] |
Other assets | 15,322 | [1] |
Total assets | 1,203,609 | [1] |
Liabilities | ||
Interest-bearing deposits | 669,745 | [1] |
Non-interest bearing deposits | 309,464 | [1] |
Borrowings | 84,110 | [1] |
Accrued expenses and other liabilities | 4,577 | [1] |
Total liabilities | 1,067,896 | [1] |
Net assets acquired | 135,713 | [1] |
Fair Value Adjustments | ||
Assets | ||
Investment securities | 385 | |
Loans | (14,933) | |
Allowance for loan losses | 19,985 | |
Premises and equipment | 4,469 | |
Other real estate owned | 644 | |
Core deposit intangible | 9,060 | |
Other assets | (9,184) | |
Total assets | 10,426 | |
Liabilities | ||
Interest-bearing deposits | 309 | |
Borrowings | 721 | |
Accrued expenses and other liabilities | 668 | |
Total liabilities | 1,698 | |
Net assets acquired | $ 8,728 | |
[1] | Amounts include certain reclassifications of opening balances to conform to the Company’s presentation. |
Mergers and acquisitions - Sc44
Mergers and acquisitions - Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($) $ / shares in Units, $ in Thousands | Jul. 31, 2017 | Feb. 08, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Equity consideration | ||||||
Total equity consideration | $ 52,284 | |||||
Preliminary allocation of consideration paid: | ||||||
Goodwill | $ 138,910 | $ 46,867 | $ 46,867 | |||
Total consideration paid | $ 236,484 | |||||
Clayton Banks | ||||||
Equity consideration | ||||||
Common stock issued | 1,521,200 | |||||
Price per share as of July 31, 2017 | $ 34.37 | |||||
Total equity consideration | $ 52,284 | |||||
Cash consideration | 184,200 | [1] | $ 184,200 | |||
Total consideration paid | 236,484 | $ 236,484 | ||||
Preliminary allocation of consideration paid: | ||||||
Fair value of net assets acquired including identifiable intangible assets | 144,441 | |||||
Goodwill | $ 92,043 | |||||
Clayton Banks | Common Stock | ||||||
Equity consideration | ||||||
Common stock issued | 1,521,200 | |||||
[1] | Amount was deposited into an interest-bearing account with the Bank of which $34,200 was included in cash and cash equivalents and interest-bearing deposits in the above schedule of net assets acquired as of July, 31, 2017 |
Mergers and acquisitions - Sc45
Mergers and acquisitions - Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired (Parenthetical) (Details) | Jul. 31, 2017USD ($) |
Interest-bearing Account | |
Business Acquisition [Line Items] | |
Cash and cash equivalents and interest-bearing deposits in net assets acquired | $ 34,200 |
Mergers and acquisitions - Sc46
Mergers and acquisitions - Schedule of Fair Value of Acquired Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 31, 2017 | Dec. 31, 2016 |
Business Acquisition [Line Items] | |||
Fair value | $ 92,455 | $ 16,058 | |
Clayton Banks | |||
Business Acquisition [Line Items] | |||
Contractually-required principal and interest | $ 112,584 | ||
Nonaccretable difference | 12,117 | ||
Cash flows expected to be collected | 100,467 | ||
Accretable yield | 18,457 | ||
Fair value | $ 82,010 |
Mergers and acquisitions - Busi
Mergers and acquisitions - Business Acquisition, Pro Forma Information (Details) - Clayton Banks - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Business Acquisition [Line Items] | ||||
Net interest income | $ 49,408 | $ 42,971 | $ 142,972 | $ 126,115 |
Total revenues | 88,013 | 88,568 | 250,676 | 243,877 |
Net income | $ 11,719 | $ 15,402 | $ 50,426 | $ 49,434 |
Investment Securities - Summary
Investment Securities - Summary of Amortized Cost of Securities and Fair Values (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | $ 545,819 | $ 588,459 |
Gross unrealized gains | 3,244 | 3,943 |
Gross unrealized losses | (5,781) | (10,219) |
Available-for-sale securities, at fair value | 543,282 | 582,183 |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 537,966 | 579,715 |
Gross unrealized gains | 3,243 | 3,942 |
Gross unrealized losses | (5,654) | (10,084) |
Available-for-sale securities, at fair value | 535,555 | 573,573 |
Debt Securities | U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 999 | 998 |
Gross unrealized losses | (7) | (13) |
Available-for-sale securities, at fair value | 992 | 985 |
Debt Securities | Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 423,174 | 450,874 |
Gross unrealized gains | 586 | 939 |
Gross unrealized losses | (4,966) | (7,905) |
Available-for-sale securities, at fair value | 418,794 | 443,908 |
Debt Securities | Municipals, Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 104,957 | 116,034 |
Gross unrealized gains | 2,657 | 3,003 |
Gross unrealized losses | (664) | (2,114) |
Available-for-sale securities, at fair value | 106,950 | 116,923 |
Debt Securities | Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 8,836 | 11,809 |
Gross unrealized losses | (17) | (52) |
Available-for-sale securities, at fair value | 8,819 | 11,757 |
Equity Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost | 7,853 | 8,744 |
Gross unrealized gains | 1 | 1 |
Gross unrealized losses | (127) | (135) |
Available-for-sale securities, at fair value | $ 7,727 | $ 8,610 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security | |
Investments Debt And Equity Securities [Abstract] | ||
Securities pledged, carrying amount | $ 349,685 | $ 390,814 |
Recognized gains on early call of available-for-sale securities | $ 1 | |
Number of securities in securities portfolio | security | 288 | 329 |
Number of securities in securities portfolio, unrealized loss position | security | 134 | 151 |
Other-than-temporary impairment recorded by the company | $ 945 |
Investment Securities - Schedul
Investment Securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized cost, Due in one year or less | $ 2,036 | $ 9,290 |
Amortized cost, Due in one to five years | 27,722 | 25,520 |
Amortized cost, Due in five to ten years | 17,362 | 31,122 |
Amortized cost, Due in over ten years | 67,672 | 62,909 |
Amortized cost, Total | 114,792 | 128,841 |
Total debt securities, Amortized cost | 537,966 | 579,715 |
Fair value, Due in one year or less | 2,037 | 9,352 |
Fair value, Due in one to five years | 28,535 | 26,340 |
Fair value, Due in five to ten years | 17,851 | 32,248 |
Fair value, Due in over ten years | 68,338 | 61,725 |
Fair value, Total | 116,761 | 129,665 |
Total debt securities, Fair value | 535,555 | 573,573 |
Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total debt securities, Amortized cost | 423,174 | 450,874 |
Total debt securities, Fair value | $ 418,794 | $ 443,908 |
Investment Securities - Summa51
Investment Securities - Summary of Sales and Impairment of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Available For Sale Securities Gross Realized Gain Loss [Abstract] | ||||
Proceeds from sales | $ 82,585 | $ 1,668 | $ 94,743 | $ 270,663 |
Gross realized gains | 1,199 | $ 416 | 1,276 | 4,755 |
Gross realized losses | 48 | $ 348 | ||
Other-than-temporary-impairment | $ 945 | $ 945 |
Investment Securities - Sched52
Investment Securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | $ 398,299 | $ 444,968 |
Unrealized Loss, Less than 12 months | 4,310 | 9,409 |
Fair Value, 12 months or more | 48,317 | 22,199 |
Unrealized Loss, 12 months or more | 1,471 | 810 |
Fair Value, Total | 446,616 | 467,167 |
Unrealized Losses, Total | 5,781 | 10,219 |
Debt Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 398,299 | 444,968 |
Unrealized Loss, Less than 12 months | 4,310 | 9,409 |
Fair Value, 12 months or more | 45,263 | 19,073 |
Unrealized Loss, 12 months or more | 1,344 | 675 |
Fair Value, Total | 443,562 | 464,041 |
Unrealized Losses, Total | 5,654 | 10,084 |
Debt Securities | U.S. Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 985 | |
Unrealized Loss, Less than 12 months | 13 | |
Fair Value, 12 months or more | 993 | |
Unrealized Loss, 12 months or more | 7 | |
Fair Value, Total | 993 | 985 |
Unrealized Losses, Total | 7 | 13 |
Debt Securities | Mortgage-backed Securities - Residential | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 354,240 | 390,595 |
Unrealized Loss, Less than 12 months | 3,800 | 7,230 |
Fair Value, 12 months or more | 40,115 | 19,073 |
Unrealized Loss, 12 months or more | 1,166 | 675 |
Fair Value, Total | 394,355 | 409,668 |
Unrealized Losses, Total | 4,966 | 7,905 |
Debt Securities | Municipals, Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 35,240 | 43,132 |
Unrealized Loss, Less than 12 months | 493 | 2,114 |
Fair Value, 12 months or more | 4,155 | |
Unrealized Loss, 12 months or more | 171 | |
Fair Value, Total | 39,395 | 43,132 |
Unrealized Losses, Total | 664 | 2,114 |
Debt Securities | Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, Less than 12 months | 8,819 | 10,256 |
Unrealized Loss, Less than 12 months | 17 | 52 |
Fair Value, Total | 8,819 | 10,256 |
Unrealized Losses, Total | 17 | 52 |
Equity Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value, 12 months or more | 3,054 | 3,126 |
Unrealized Loss, 12 months or more | 127 | 135 |
Fair Value, Total | 3,054 | 3,126 |
Unrealized Losses, Total | $ 127 | $ 135 |
Investment Securities - Sched53
Investment Securities - Schedule of Other Than Temporary Impairment, Credit Losses Recognized In Earnings (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Investments Debt And Equity Securities [Abstract] | |
Additions related to credit losses for which OTTI was not previously recognized | $ (945) |
Balance as of September 30, 2017 | $ (945) |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses - Loans Outstanding by Major Lending Classification (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | $ 3,114,562 | $ 1,848,784 | ||||
Less: Allowance for loan losses | (23,482) | $ (23,247) | (21,747) | $ (23,290) | $ (23,734) | $ (24,460) |
Net loans | 3,091,080 | 1,827,037 | ||||
Commercial and Industrial | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 731,588 | 386,233 | ||||
Less: Allowance for loan losses | (5,734) | (5,440) | (5,309) | (5,955) | (5,924) | (5,135) |
Construction | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 435,414 | 245,905 | ||||
Less: Allowance for loan losses | (6,125) | (5,579) | (4,940) | (4,471) | (4,373) | (5,143) |
Residential Real Estate | 1-to-4 Family Mortgage | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 459,467 | 294,924 | ||||
Less: Allowance for loan losses | (2,759) | (2,974) | (3,197) | (3,495) | (3,611) | (4,176) |
Residential Real Estate | Residential Line of Credit | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 188,392 | 177,190 | ||||
Less: Allowance for loan losses | (1,028) | (1,445) | (1,613) | (1,825) | (1,944) | (2,201) |
Residential Real Estate | Multi-Family Mortgage | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 74,004 | 44,977 | ||||
Less: Allowance for loan losses | (523) | (513) | (504) | (611) | (453) | (311) |
Commercial Real Estate | Owner Occupied | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 473,395 | 357,346 | ||||
Less: Allowance for loan losses | (4,008) | (3,983) | (3,302) | (3,685) | (3,764) | (3,682) |
Commercial Real Estate | Non-Owner Occupied | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 521,416 | 267,902 | ||||
Less: Allowance for loan losses | (2,477) | (2,452) | (2,019) | (2,289) | (2,634) | (2,622) |
Consumer and Other | ||||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||||
Gross loans | 230,886 | 74,307 | ||||
Less: Allowance for loan losses | $ (828) | $ (861) | $ (863) | $ (959) | $ (1,031) | $ (1,190) |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Gross loans | $ 3,114,562,000 | $ 3,114,562,000 | $ 1,848,784,000 | ||
Non-accrual loans | 3,816,000 | 3,816,000 | 4,265,000 | ||
Accretion of interest income | 3,545,000 | $ 3,195,000 | |||
Recorded investment in troubled debt restructurings | 8,095,000 | 8,095,000 | 8,802,000 | ||
Allocation to specific reserves | 202,000 | 202,000 | 402,000 | ||
Commitments to lend additional amounts to customers | 1,000 | 1,000 | 1,000 | ||
Payment default for loans modified as troubled debt restructurings | 0 | 0 | |||
FHLB Cincinnati | 1-to-4 Family Mortgage, Loans Held for Sale And Multi-Family Mortgage Loans | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Gross loans | 522,389,000 | 522,389,000 | 565,717,000 | ||
Federal Reserve Bank | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Gross loans | 690,113,000 | 690,113,000 | 1,072,118,000 | ||
Purchased Credit Impaired | |||||
Financing Receivable Recorded Investment Past Due [Line Items] | |||||
Non-accrual loans | 0 | 0 | $ 0 | ||
Accretion of interest income | 1,646,000 | $ 590,000 | 3,258,000 | 2,437,000 | |
Total purchase accounting contribution through accretion for purchased loans | $ 1,537,000 | $ 590,000 | $ 3,545,000 | $ 2,437,000 |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses - Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | $ 23,247 | $ 23,734 | $ 21,747 | $ 24,460 |
Provision for loan losses | (784) | 71 | (1,906) | (727) |
Recoveries of loans previously charged-off | 1,594 | 199 | 5,449 | 1,177 |
Loans charged off | (575) | (714) | (1,808) | (1,620) |
Ending balance | 23,482 | 23,290 | 23,482 | 23,290 |
Commercial and Industrial | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 5,440 | 5,924 | 5,309 | 5,135 |
Provision for loan losses | 315 | 381 | (848) | 896 |
Recoveries of loans previously charged-off | 200 | 8 | 1,794 | 480 |
Loans charged off | (221) | (358) | (521) | (556) |
Ending balance | 5,734 | 5,955 | 5,734 | 5,955 |
Construction | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 5,579 | 4,373 | 4,940 | 5,143 |
Provision for loan losses | (476) | 66 | 111 | (807) |
Recoveries of loans previously charged-off | 1,022 | 32 | 1,080 | 137 |
Loans charged off | (6) | (2) | ||
Ending balance | 6,125 | 4,471 | 6,125 | 4,471 |
Residential Real Estate | 1-to-4 Family Mortgage | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 2,974 | 3,611 | 3,197 | 4,176 |
Provision for loan losses | (269) | 48 | (409) | (571) |
Recoveries of loans previously charged-off | 86 | 2 | 126 | 109 |
Loans charged off | (32) | (166) | (155) | (219) |
Ending balance | 2,759 | 3,495 | 2,759 | 3,495 |
Residential Real Estate | Residential Line of Credit | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 1,445 | 1,944 | 1,613 | 2,201 |
Provision for loan losses | (565) | (126) | (749) | (415) |
Recoveries of loans previously charged-off | 157 | 36 | 368 | 143 |
Loans charged off | (9) | (29) | (204) | (104) |
Ending balance | 1,028 | 1,825 | 1,028 | 1,825 |
Residential Real Estate | Multi-Family Mortgage | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 513 | 453 | 504 | 311 |
Provision for loan losses | 10 | 158 | 19 | 300 |
Ending balance | 523 | 611 | 523 | 611 |
Commercial Real Estate | Owner Occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 3,983 | 3,764 | 3,302 | 3,682 |
Provision for loan losses | 65 | (83) | 731 | 81 |
Recoveries of loans previously charged-off | 24 | 4 | 39 | 15 |
Loans charged off | (64) | (64) | (93) | |
Ending balance | 4,008 | 3,685 | 4,008 | 3,685 |
Commercial Real Estate | Non-Owner Occupied | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 2,452 | 2,634 | 2,019 | 2,622 |
Provision for loan losses | 24 | (367) | (1,184) | (360) |
Recoveries of loans previously charged-off | 1 | 22 | 1,642 | 27 |
Ending balance | 2,477 | 2,289 | 2,477 | 2,289 |
Consumer and Other | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Beginning balance | 861 | 1,031 | 863 | 1,190 |
Provision for loan losses | 112 | (6) | 423 | 149 |
Recoveries of loans previously charged-off | 104 | 95 | 400 | 266 |
Loans charged off | (249) | (161) | (858) | (646) |
Ending balance | $ 828 | $ 959 | $ 828 | $ 959 |
Loans and Allowance for Loan 57
Loans and Allowance for Loan Losses - Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually Evaluated for Impairment and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Individually evaluated for impairment | $ 445 | $ 513 | ||||
Collectively evaluated for impairment | 23,023 | 21,234 | ||||
Acquired with deteriorated credit quality | 14 | |||||
Ending balance | 23,482 | $ 23,247 | 21,747 | $ 23,290 | $ 23,734 | $ 24,460 |
Commercial and Industrial | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Individually evaluated for impairment | 15 | 135 | ||||
Collectively evaluated for impairment | 5,719 | 5,174 | ||||
Ending balance | 5,734 | 5,440 | 5,309 | 5,955 | 5,924 | 5,135 |
Construction | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 6,125 | 4,940 | ||||
Ending balance | 6,125 | 5,579 | 4,940 | 4,471 | 4,373 | 5,143 |
Residential Real Estate | 1-to-4 Family Mortgage | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Individually evaluated for impairment | 24 | 23 | ||||
Collectively evaluated for impairment | 2,735 | 3,174 | ||||
Ending balance | 2,759 | 2,974 | 3,197 | 3,495 | 3,611 | 4,176 |
Residential Real Estate | Residential Line of Credit | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 1,028 | 1,613 | ||||
Ending balance | 1,028 | 1,445 | 1,613 | 1,825 | 1,944 | 2,201 |
Residential Real Estate | Multi-Family Mortgage | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Collectively evaluated for impairment | 523 | 504 | ||||
Ending balance | 523 | 513 | 504 | 611 | 453 | 311 |
Commercial Real Estate | Owner Occupied | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Individually evaluated for impairment | 352 | 113 | ||||
Collectively evaluated for impairment | 3,656 | 3,189 | ||||
Ending balance | 4,008 | 3,983 | 3,302 | 3,685 | 3,764 | 3,682 |
Commercial Real Estate | Non-Owner Occupied | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Individually evaluated for impairment | 43 | 242 | ||||
Collectively evaluated for impairment | 2,434 | 1,777 | ||||
Ending balance | 2,477 | 2,452 | 2,019 | 2,289 | 2,634 | 2,622 |
Consumer and Other | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Individually evaluated for impairment | 11 | |||||
Collectively evaluated for impairment | 803 | 863 | ||||
Acquired with deteriorated credit quality | 14 | |||||
Ending balance | $ 828 | $ 861 | $ 863 | $ 959 | $ 1,031 | $ 1,190 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses - Amount of Loans by Loan Category Broken Out Between Loans Individually Evaluated for Impairment and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | $ 8,921 | $ 12,951 |
Collectively evaluated for impairment | 3,013,186 | 1,819,775 |
Acquired with deteriorated credit quality | 92,455 | 16,058 |
Gross loans | 3,114,562 | 1,848,784 |
Commercial and Industrial | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 826 | 1,476 |
Collectively evaluated for impairment | 727,885 | 384,279 |
Acquired with deteriorated credit quality | 2,877 | 478 |
Gross loans | 731,588 | 386,233 |
Construction | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 1,295 | 2,686 |
Collectively evaluated for impairment | 426,039 | 238,900 |
Acquired with deteriorated credit quality | 8,080 | 4,319 |
Gross loans | 435,414 | 245,905 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 1,272 | 2,471 |
Collectively evaluated for impairment | 433,544 | 290,346 |
Acquired with deteriorated credit quality | 24,651 | 2,107 |
Gross loans | 459,467 | 294,924 |
Residential Real Estate | Residential Line of Credit | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 311 | |
Collectively evaluated for impairment | 188,392 | 176,879 |
Gross loans | 188,392 | 177,190 |
Residential Real Estate | Multi-Family Mortgage | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 988 | 1,027 |
Collectively evaluated for impairment | 72,994 | 43,922 |
Acquired with deteriorated credit quality | 22 | 28 |
Gross loans | 74,004 | 44,977 |
Commercial Real Estate | Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 2,785 | 2,752 |
Collectively evaluated for impairment | 459,537 | 350,812 |
Acquired with deteriorated credit quality | 11,073 | 3,782 |
Gross loans | 473,395 | 357,346 |
Commercial Real Estate | Non-Owner Occupied | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 1,732 | 2,201 |
Collectively evaluated for impairment | 500,713 | 260,361 |
Acquired with deteriorated credit quality | 18,971 | 5,340 |
Gross loans | 521,416 | 267,902 |
Consumer and Other | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Individually evaluated for impairment | 23 | 27 |
Collectively evaluated for impairment | 204,082 | 74,276 |
Acquired with deteriorated credit quality | 26,781 | 4 |
Gross loans | $ 230,886 | $ 74,307 |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses - Credit Quality Indicators by Portfolio Class (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | $ 3,022,107 | $ 1,832,726 |
Purchased credit impaired loans | 92,455 | 16,058 |
Gross loans | 3,114,562 | 1,848,784 |
Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 2,888,786 | 1,744,392 |
Gross loans | 2,888,786 | 1,744,392 |
Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 110,798 | 65,807 |
Purchased credit impaired loans | 55,390 | |
Gross loans | 166,188 | 65,807 |
Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 22,523 | 22,527 |
Purchased credit impaired loans | 37,065 | 16,058 |
Gross loans | 59,588 | 38,585 |
Commercial and Industrial | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 728,711 | 385,755 |
Purchased credit impaired loans | 2,877 | 478 |
Gross loans | 731,588 | 386,233 |
Commercial and Industrial | Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 671,566 | 351,046 |
Commercial and Industrial | Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 53,388 | 31,074 |
Purchased credit impaired loans | 1,665 | |
Commercial and Industrial | Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 3,757 | 3,635 |
Purchased credit impaired loans | 1,212 | 478 |
Construction | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 427,334 | 241,586 |
Purchased credit impaired loans | 8,080 | 4,319 |
Gross loans | 435,414 | 245,905 |
Construction | Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 419,219 | 236,588 |
Construction | Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 6,402 | 4,612 |
Purchased credit impaired loans | 3,383 | |
Construction | Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,713 | 386 |
Purchased credit impaired loans | 4,697 | 4,319 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 434,816 | 292,817 |
Purchased credit impaired loans | 24,651 | 2,107 |
Gross loans | 459,467 | 294,924 |
Residential Real Estate | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 188,392 | 177,190 |
Gross loans | 188,392 | 177,190 |
Residential Real Estate | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 73,982 | 44,949 |
Purchased credit impaired loans | 22 | 28 |
Gross loans | 74,004 | 44,977 |
Residential Real Estate | Pass | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 421,020 | 277,948 |
Residential Real Estate | Pass | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 185,892 | 173,011 |
Residential Real Estate | Pass | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 72,214 | 43,770 |
Residential Real Estate | Watch | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 6,548 | 6,945 |
Purchased credit impaired loans | 21,127 | |
Residential Real Estate | Watch | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,461 | 1,875 |
Residential Real Estate | Watch | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 142 | 152 |
Residential Real Estate | Substandard | 1-to-4 Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 7,248 | 7,924 |
Purchased credit impaired loans | 3,524 | 2,107 |
Residential Real Estate | Substandard | Residential Line of Credit | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,039 | 2,304 |
Residential Real Estate | Substandard | Multi-Family Mortgage | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,626 | 1,027 |
Purchased credit impaired loans | 22 | 28 |
Commercial Real Estate | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 462,322 | 353,564 |
Purchased credit impaired loans | 11,073 | 3,782 |
Gross loans | 473,395 | 357,346 |
Commercial Real Estate | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 502,445 | 262,562 |
Purchased credit impaired loans | 18,971 | 5,340 |
Gross loans | 521,416 | 267,902 |
Commercial Real Estate | Pass | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 429,691 | 338,698 |
Commercial Real Estate | Pass | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 486,487 | 249,877 |
Commercial Real Estate | Watch | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 27,960 | 10,459 |
Purchased credit impaired loans | 3,294 | |
Commercial Real Estate | Watch | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 13,967 | 10,273 |
Purchased credit impaired loans | 7,740 | |
Commercial Real Estate | Substandard | Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 4,671 | 4,407 |
Purchased credit impaired loans | 7,779 | 3,782 |
Commercial Real Estate | Substandard | Non-Owner Occupied | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 1,991 | 2,412 |
Purchased credit impaired loans | 11,231 | 5,340 |
Consumer and Other | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 204,105 | 74,303 |
Purchased credit impaired loans | 26,781 | 4 |
Gross loans | 230,886 | 74,307 |
Consumer and Other | Pass | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 202,697 | 73,454 |
Consumer and Other | Watch | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 930 | 417 |
Purchased credit impaired loans | 18,181 | |
Consumer and Other | Substandard | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans, excluding purchased credit impaired loans | 478 | 432 |
Purchased credit impaired loans | $ 8,600 | $ 4 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses - Changes in Accretable Yield on Purchase Credit Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts Notes And Loans Receivable [Line Items] | ||||
Purchased Credit Impaired Accretable yield, Accretion | $ 3,545 | $ 3,195 | ||
Purchased Credit Impaired | ||||
Accounts Notes And Loans Receivable [Line Items] | ||||
Purchased Credit Impaired Accretable yield, Beginning balance | $ (1,845) | $ (1,248) | (2,444) | (1,637) |
Purchased Credit Impaired Accretable yield, Additions through the acquisition of the Clayton Banks | (18,457) | (18,457) | ||
Purchased Credit Impaired Accretable yield, Principal reductions/ pay-offs | (690) | (381) | (1,680) | (1,839) |
Purchased Credit Impaired Accretable yield, Recoveries | (23) | |||
Purchased Credit Impaired Accretable yield, Accretion | 1,646 | 590 | 3,258 | 2,437 |
Purchased Credit Impaired Accretable yield, Ending balance | $ (19,346) | $ (1,039) | $ (19,346) | $ (1,039) |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses - Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 3,114,562 | $ 1,848,784 |
Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 92,455 | 16,058 |
Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 7,749 | 8,729 |
30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 10,362 | 5,749 |
90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,238 | 1,329 |
Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,002,758 | 1,816,919 |
Commercial and Industrial | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 731,588 | 386,233 |
Commercial and Industrial | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,877 | 478 |
Commercial and Industrial | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 469 | 1,297 |
Commercial and Industrial | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 388 | 262 |
Commercial and Industrial | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 37 | 127 |
Commercial and Industrial | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 727,817 | 384,069 |
Construction | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 435,414 | 245,905 |
Construction | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 8,080 | 4,319 |
Construction | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 239 | 254 |
Construction | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 596 | 441 |
Construction | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 44 | 17 |
Construction | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 426,455 | 240,874 |
Residential Real Estate | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 459,467 | 294,924 |
Residential Real Estate | 1-to-4 Family Mortgage | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 24,651 | 2,107 |
Residential Real Estate | 1-to-4 Family Mortgage | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,257 | 2,289 |
Residential Real Estate | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 188,392 | 177,190 |
Residential Real Estate | Residential Line of Credit | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 529 | 601 |
Residential Real Estate | Multi-Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 74,004 | 44,977 |
Residential Real Estate | Multi-Family Mortgage | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 22 | 28 |
Residential Real Estate | 30-89 Days Past Due | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 3,600 | 3,130 |
Residential Real Estate | 30-89 Days Past Due | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 932 | 1,139 |
Residential Real Estate | 90 Days or More and Accruing Interest | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 520 | 697 |
Residential Real Estate | 90 Days or More and Accruing Interest | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 250 | 433 |
Residential Real Estate | 90 Days or More and Accruing Interest | Multi-Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 87 | |
Residential Real Estate | Financing Receivables Current | 1-to-4 Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 428,439 | 286,701 |
Residential Real Estate | Financing Receivables Current | Residential Line of Credit | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 186,681 | 175,017 |
Residential Real Estate | Financing Receivables Current | Multi-Family Mortgage | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 73,895 | 44,949 |
Commercial Real Estate | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 473,395 | 357,346 |
Commercial Real Estate | Owner Occupied | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 11,073 | 3,782 |
Commercial Real Estate | Owner Occupied | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,308 | 2,007 |
Commercial Real Estate | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 521,416 | 267,902 |
Commercial Real Estate | Non-Owner Occupied | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 18,971 | 5,340 |
Commercial Real Estate | Non-Owner Occupied | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 1,916 | 2,251 |
Commercial Real Estate | 30-89 Days Past Due | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,520 | 186 |
Commercial Real Estate | 30-89 Days Past Due | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 158 | |
Commercial Real Estate | 90 Days or More and Accruing Interest | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 134 | |
Commercial Real Estate | Financing Receivables Current | Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 457,360 | 351,371 |
Commercial Real Estate | Financing Receivables Current | Non-Owner Occupied | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 500,529 | 260,153 |
Consumer and Other | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 230,886 | 74,307 |
Consumer and Other | Purchased Credit Impaired | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 26,781 | 4 |
Consumer and Other | Non Accruing | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 31 | 30 |
Consumer and Other | 30-89 Days Past Due | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 2,326 | 433 |
Consumer and Other | 90 Days or More and Accruing Interest | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | 166 | 55 |
Consumer and Other | Financing Receivables Current | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Loans | $ 201,582 | $ 73,785 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses - Impaired Loans Recognized, Segregated by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Financing Receivable Impaired [Line Items] | |||||
Impaired loans with related allowance, Recorded investment | $ 1,499 | $ 1,499 | $ 2,744 | ||
Impaired loans with related allowance, Unpaid principal | 1,850 | 1,850 | 3,556 | ||
Impaired loans with related allowance, Related allowance | 445 | 445 | 513 | ||
Impaired loan with no related allowance, Recorded investment | 7,422 | 7,422 | 10,207 | ||
Impaired loan with no related allowance, Unpaid principal | 9,397 | 9,397 | 12,170 | ||
Total impaired loans, Recorded investment | 8,921 | 8,921 | 12,951 | ||
Total impaired loans, Unpaid principal | 11,247 | 11,247 | 15,726 | ||
Impaired loan with no related allowance, Average recorded investment | 7,347 | $ 11,469 | 8,815 | $ 9,181 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 264 | 115 | 264 | 321 | |
Impaired loans with related allowance, Average recorded investment | 1,721 | 4,264 | 2,122 | 6,509 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 52 | 29 | 52 | 78 | |
Total impaired loans, Average recorded investment | 9,068 | 15,733 | 10,936 | 15,690 | |
Total impaired loans, Interest income recognized (cash basis) | 316 | 144 | 316 | 399 | |
Commercial and Industrial | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loans with related allowance, Recorded investment | 53 | 53 | 854 | ||
Impaired loans with related allowance, Unpaid principal | 53 | 53 | 854 | ||
Impaired loans with related allowance, Related allowance | 15 | 15 | 135 | ||
Impaired loan with no related allowance, Recorded investment | 773 | 773 | 622 | ||
Impaired loan with no related allowance, Unpaid principal | 977 | 977 | 746 | ||
Impaired loan with no related allowance, Average recorded investment | 633 | 1,318 | 698 | 767 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 34 | 13 | 34 | 17 | |
Impaired loans with related allowance, Average recorded investment | 392 | 363 | 454 | 820 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 2 | 3 | 2 | 14 | |
Construction | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loan with no related allowance, Recorded investment | 1,295 | 1,295 | 2,686 | ||
Impaired loan with no related allowance, Unpaid principal | 1,315 | 1,315 | 2,694 | ||
Impaired loan with no related allowance, Average recorded investment | 797 | 2,782 | 1,991 | 2,712 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 41 | 36 | 41 | 99 | |
Impaired loans with related allowance, Average recorded investment | 102 | ||||
Residential Real Estate | 1-to-4 Family Mortgage | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loans with related allowance, Recorded investment | 199 | 199 | 103 | ||
Impaired loans with related allowance, Unpaid principal | 501 | 501 | 369 | ||
Impaired loans with related allowance, Related allowance | 24 | 24 | 23 | ||
Impaired loan with no related allowance, Recorded investment | 1,073 | 1,073 | 2,368 | ||
Impaired loan with no related allowance, Unpaid principal | 1,077 | 1,077 | 2,370 | ||
Impaired loan with no related allowance, Average recorded investment | 1,584 | 2,680 | 1,721 | 2,060 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 51 | 19 | 51 | 103 | |
Impaired loans with related allowance, Average recorded investment | 148 | 200 | 151 | 1,482 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 7 | 1 | 7 | 27 | |
Residential Real Estate | Residential Line of Credit | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loan with no related allowance, Recorded investment | 311 | ||||
Impaired loan with no related allowance, Unpaid principal | 321 | ||||
Impaired loan with no related allowance, Average recorded investment | 156 | ||||
Impaired loans with related allowance, Average recorded investment | 319 | 213 | |||
Impaired loans with related allowance, Interest income recognized (cash basis) | 4 | 6 | |||
Residential Real Estate | Multi-Family Mortgage | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loan with no related allowance, Recorded investment | 988 | 988 | 1,027 | ||
Impaired loan with no related allowance, Unpaid principal | 988 | 988 | 1,027 | ||
Impaired loan with no related allowance, Average recorded investment | 995 | 1,037 | 1,008 | 1,052 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 34 | 13 | 34 | 25 | |
Commercial Real Estate | Owner Occupied | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loans with related allowance, Recorded investment | 1,077 | 1,077 | 635 | ||
Impaired loans with related allowance, Unpaid principal | 1,123 | 1,123 | 654 | ||
Impaired loans with related allowance, Related allowance | 352 | 352 | 113 | ||
Impaired loan with no related allowance, Recorded investment | 1,708 | 1,708 | 2,117 | ||
Impaired loan with no related allowance, Unpaid principal | 2,183 | 2,183 | 3,205 | ||
Impaired loan with no related allowance, Average recorded investment | 1,737 | 2,239 | 1,913 | 1,378 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 92 | 33 | 92 | 75 | |
Impaired loans with related allowance, Average recorded investment | 843 | 807 | 856 | 1,115 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 39 | 17 | 39 | 18 | |
Commercial Real Estate | Non-Owner Occupied | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loans with related allowance, Recorded investment | 148 | 148 | 1,151 | ||
Impaired loans with related allowance, Unpaid principal | 151 | 151 | 1,678 | ||
Impaired loans with related allowance, Related allowance | 43 | 43 | 242 | ||
Impaired loan with no related allowance, Recorded investment | 1,584 | 1,584 | 1,050 | ||
Impaired loan with no related allowance, Unpaid principal | 2,856 | 2,856 | 1,781 | ||
Impaired loan with no related allowance, Average recorded investment | 1,590 | 1,413 | 1,317 | 1,212 | |
Impaired loan with no related allowance, Interest income recognized (cash basis) | 12 | 1 | 12 | 2 | |
Impaired loans with related allowance, Average recorded investment | 328 | 2,573 | 650 | 2,776 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | 3 | 4 | 3 | 13 | |
Consumer and Other | |||||
Financing Receivable Impaired [Line Items] | |||||
Impaired loans with related allowance, Recorded investment | 22 | 22 | 1 | ||
Impaired loans with related allowance, Unpaid principal | 22 | 22 | 1 | ||
Impaired loans with related allowance, Related allowance | 11 | 11 | |||
Impaired loan with no related allowance, Recorded investment | 1 | 1 | 26 | ||
Impaired loan with no related allowance, Unpaid principal | 1 | 1 | $ 26 | ||
Impaired loan with no related allowance, Average recorded investment | 13 | 14 | |||
Impaired loans with related allowance, Average recorded investment | 11 | $ 2 | 12 | $ 1 | |
Impaired loans with related allowance, Interest income recognized (cash basis) | $ 1 | $ 1 |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($)loan | Sep. 30, 2016USD ($)loan | Sep. 30, 2017USD ($)loan | Sep. 30, 2016USD ($)loan | |
Financing Receivable Modifications [Line Items] | ||||
Number of loans | loan | 1 | 4 | 5 | 14 |
Pre-modification outstanding recorded investment | $ 143 | $ 1,220 | $ 1,236 | $ 3,546 |
Post-modification outstanding recorded investment | 143 | $ 1,220 | 1,236 | 3,546 |
Charge offs and specific reserves | $ 8 | $ 8 | $ 131 | |
Residential Real Estate | 1-to-4 Family Mortgage | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of loans | loan | 1 | 1 | 1 | 5 |
Pre-modification outstanding recorded investment | $ 143 | $ 1,098 | $ 143 | $ 326 |
Post-modification outstanding recorded investment | 143 | $ 1,098 | 143 | 326 |
Charge offs and specific reserves | $ 8 | $ 8 | $ 45 | |
Commercial Real Estate | Owner Occupied | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of loans | loan | 1 | 1 | 2 | |
Pre-modification outstanding recorded investment | $ 118 | $ 377 | $ 786 | |
Post-modification outstanding recorded investment | $ 118 | $ 377 | $ 786 | |
Commercial Real Estate | Consumer and Other | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of loans | loan | 2 | |||
Pre-modification outstanding recorded investment | $ 4 | |||
Post-modification outstanding recorded investment | $ 4 | |||
Commercial Real Estate | Non-Owner Occupied | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of loans | loan | 2 | 1 | ||
Pre-modification outstanding recorded investment | $ 711 | $ 133 | ||
Post-modification outstanding recorded investment | $ 711 | $ 133 | ||
Commercial and Industrial | ||||
Financing Receivable Modifications [Line Items] | ||||
Number of loans | loan | 1 | 6 | ||
Pre-modification outstanding recorded investment | $ 5 | $ 2,301 | ||
Post-modification outstanding recorded investment | $ 5 | 2,301 | ||
Charge offs and specific reserves | $ 86 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Real Estate [Abstract] | ||||
Balance at beginning of period | $ 6,370 | $ 9,902 | $ 7,403 | $ 11,641 |
Transfers from loans | 1,796 | 460 | 2,958 | 2,636 |
Acquired through merger with the Clayton Banks (1) | 6,888 | 6,888 | ||
Properties sold | (1,152) | (3,044) | (4,082) | (6,558) |
Gain on sale of other real estate owned | 93 | 1,680 | 1,041 | 1,749 |
Transferred to loans | (165) | (201) | (259) | |
Write-downs and partial liquidations | (18) | (34) | (195) | (245) |
Balance at end of period | $ 13,812 | $ 8,964 | $ 13,812 | $ 8,964 |
Other Real Estate Owned - Sum65
Other Real Estate Owned - Summary of Other Real Estate Owned (Parenthetical) (Details) $ in Thousands | Jul. 31, 2017USD ($) |
Clayton Banks | |
Real Estate Properties [Line Items] | |
Acquired excess facilities held for sale | $ 4,147 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Details) - Residential Real Estate Properties - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | $ 2,756 | $ 2,265 |
Total foreclosure proceedings in process | $ 655 | $ 44 |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets - Summary of Changes in Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill [Line Items] | |
Balance at December 31, 2016 | $ 46,867 |
Balance at September 30, 2017 | 138,910 |
Clayton Banks | |
Goodwill [Line Items] | |
Addition from merger with Clayton Banks | $ 92,043 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets - Schedule of Change in Balance for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite Lived Intangible Assets [Line Items] | ||||
Beginning Balance | $ 4,563 | |||
Less: amortization expense | $ (558) | $ (526) | (1,073) | $ (1,605) |
Ending Balance | 12,550 | 12,550 | ||
Core Deposits | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Beginning Balance | 4,048 | 5,616 | 4,563 | 6,695 |
Less: amortization expense | (558) | (526) | (1,073) | (1,605) |
Ending Balance | 12,550 | $ 5,090 | 12,550 | $ 5,090 |
Core Deposits | Clayton Banks | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Addition from merger with Clayton Banks | $ 9,060 | $ 9,060 |
Goodwill and Intangible Asset69
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | Jul. 31, 2017 | Sep. 30, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset | $ 587 | |
Amortization of intangibel asset | 6 years 6 months | |
Clayton Banks | Core Deposits | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible asset | $ 9,060 | |
Amortization of intangibel asset | 3 years |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets - Schedule of Estimated Aggregate Amortization (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Finite Lived Intangible Assets [Line Items] | ||||||
Total | $ 12,550 | $ 4,563 | ||||
Core Deposits | ||||||
Finite Lived Intangible Assets [Line Items] | ||||||
Remainder of 2017 | 754 | |||||
December 31, 2018 | 2,780 | |||||
December 31, 2019 | 2,394 | |||||
December 31, 2020 | 2,008 | |||||
December 31, 2021 | 1,622 | |||||
Thereafter | 2,992 | |||||
Total | $ 12,550 | $ 4,048 | $ 4,563 | $ 5,090 | $ 5,616 | $ 6,695 |
Mortgage Servicing Rights - Sch
Mortgage Servicing Rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Transfers And Servicing [Abstract] | ||||
Carrying value prior to policy change | $ 48,464 | $ 40,382 | $ 32,070 | $ 29,711 |
Fair value impact of change in accounting policy (See Note 1) | 1,011 | |||
Carrying value at beginning of period | 48,464 | 40,382 | 33,081 | 29,711 |
Capitalization | 15,965 | 11,107 | 45,624 | 30,890 |
Amortization | (2,796) | (6,221) | ||
Sales | (11,935) | |||
Impairment | (2,402) | (8,089) | ||
Change in fair value: | ||||
Due to pay-offs/pay-downs | (975) | (1,772) | ||
Due to change in valuation inputs or assumptions | (408) | (1,952) | ||
Carrying value at June 30 | $ 63,046 | $ 46,291 | $ 63,046 | $ 46,291 |
Mortgage Servicing Rights - S72
Mortgage Servicing Rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Servicing income: | ||||
Servicing income | $ 3,463 | $ 3,661 | $ 8,958 | $ 8,312 |
Change in fair value of mortgage servicing rights | (1,383) | (3,724) | ||
Change in fair value of mortgage servicing rights hedging instruments | 490 | 490 | ||
Gross servicing income | 2,570 | 3,661 | 5,724 | 8,312 |
Servicing expenses: | ||||
Servicing asset amortization | 2,796 | 6,221 | ||
Servicing asset impairment | 2,402 | 8,089 | ||
Loss on sale of mortgage servicing rights | 249 | |||
Other servicing expenses | 1,043 | 686 | 3,181 | 1,632 |
Gross servicing expenses | 1,043 | 5,884 | 3,430 | 15,942 |
Net servicing income (loss) | $ 1,527 | $ (2,223) | $ 2,294 | $ (7,630) |
Mortgage Servicing Rights - S73
Mortgage Servicing Rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Transfers And Servicing [Abstract] | ||
Unpaid principal balance | $ 5,549,662 | $ 2,833,958 |
Weighted-average prepayment speed (CPR) | 9.30% | 8.40% |
Estimated impact on fair value of a 10% increase | $ (2,579) | $ (1,256) |
Estimated impact on fair value of a 20% increase | $ (4,985) | $ (2,434) |
Discount rate | 9.79% | 9.54% |
Estimated impact on fair value of a 100 bp increase | $ (2,486) | $ (1,394) |
Estimated impact on fair value of a 200 bp increase | $ (4,782) | $ (2,679) |
Weighted-average coupon interest rate | 3.93% | 3.59% |
Weighted-average servicing fee (basis points) | 0.28% | 0.27% |
Weighted-average remaining maturity (in months) | 337 months | 328 months |
Mortgage Servicing Rights - Add
Mortgage Servicing Rights - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Transfers And Servicing [Abstract] | ||
Mortgage servicing rights sold | $ 11,935,000 | |
Mortgage loans serviced | 1,086,465,000 | |
Mortgage loans serviced related to bulk sale of mortgage servicing rights | $ 0 | |
Mortgage Loans Subserviced | $ 3,332,903,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Line Items] | ||||
Deferred tax liability increased due to change in taxable status | $ 13,181 | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Deferred income tax expense related to unrealized gain on available for sale securities | $ 274 | $ 13,193 | $ 8,226 | $ 14,239 |
C Corporation | ||||
Income Taxes [Line Items] | ||||
Deferred tax liability increased due to change in taxable status | 13,181 | $ 13,181 | ||
Deferred income tax expense related to unrealized gain on available for sale securities | $ 2,955 |
Income Taxes - Schedule of Allo
Income Taxes - Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ 4,328 | $ 1,579 | $ 8,375 | $ 2,707 |
Deferred | 274 | 13,193 | 8,226 | 14,239 |
Total | $ 4,602 | $ 14,772 | $ 16,601 | $ 16,946 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Differences in Federal Income Tax Expense and State Tax Expense from Statutory Federal and State Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Taxes [Line Items] | ||||
Federal taxes calculated at statutory rate | $ 4,547 | $ 3,338 | $ 16,086 | $ 3,338 |
Increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | 528 | 524 | 1,879 | 2,607 |
Conversion as of September 16, 2016 to C Corporation | 13,181 | |||
Benefit of equity based compensation | (384) | (883) | ||
Other | (89) | (2,271) | (481) | (2,180) |
Total | $ 4,602 | 14,772 | $ 16,601 | 16,946 |
C Corporation | ||||
Increase (decrease) resulting from: | ||||
Conversion as of September 16, 2016 to C Corporation | $ 13,181 | $ 13,181 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax liability (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 9,196 | $ 8,516 |
Amortization of core deposit intangible | 1,023 | 996 |
Compensation related | 7,306 | 7,552 |
Unrealized loss on securities | 884 | 2,462 |
Other | 6,248 | 2,430 |
Subtotal | 24,657 | 21,956 |
Deferred tax liabilities: | ||
FHLB stock dividends | (827) | (827) |
Depreciation | (6,417) | (6,548) |
Mortgage servicing rights | (24,689) | (12,558) |
Other | (7,106) | (6,203) |
Subtotal | (39,039) | (26,136) |
Net deferred tax liability | $ (14,382) | $ (4,180) |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | $ 978,453 | $ 602,426 |
Commitments to Extend Credit, Excluding Interest Rate Lock Commitments | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | 951,679 | 579,879 |
Letter of Credit | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet credit loss | $ 26,774 | $ 22,547 |
Commitments and Contingencies80
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Total principal amount of loans repurchased or indemnified | $ 1,137 | $ 1,722 | $ 2,907 | $ 5,167 |
Commitments and Contingencies81
Commitments and Contingencies - Summary of Allowance for Loan Repurchases or Indemnifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | ||||
Balance at beginning of period | $ 3,037 | $ 2,859 | $ 2,659 | $ 2,156 |
Provision for loan repurchases or indemnifications | 410 | 470 | 794 | 1,173 |
Losses on loans repurchased or indemnified | (27) | 13 | (33) | 13 |
Balance at end of period | $ 3,420 | $ 3,342 | $ 3,420 | $ 3,342 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ in Thousands | 1 Months Ended | 9 Months Ended | ||
Jul. 31, 2017USD ($)InterestRateSwap | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($)InterestRateSwap | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | ||||
Lock in period for interest rates | 45 days | |||
Long-term debt | $ 143,533 | $ 44,892 | ||
Notional amount | $ 100,000 | |||
Interest rate swap maturity date | Jun. 30, 2024 | |||
Designated as Hedging | ||||
Derivative [Line Items] | ||||
Notional amount | $ 130,000 | |||
Subordinated Debentures | ||||
Derivative [Line Items] | ||||
Number of derivative instruments | InterestRateSwap | 2 | |||
Long-term debt | $ 30,930 | |||
Interest Rate Swaps | ||||
Derivative [Line Items] | ||||
Number of derivative instruments | InterestRateSwap | 3 | |||
Interest Rate Swaps | Designated as Hedging | ||||
Derivative [Line Items] | ||||
Fair value on swap | 283 | |||
Interest Rate Swaps | Subordinated Debentures | ||||
Derivative [Line Items] | ||||
Notional amount | $ 30,000 | |||
Fair value on swap | $ 0 | |||
Interest Rate Swaps Three | ||||
Derivative [Line Items] | ||||
Notional amount | $ 30,000 | |||
Derivative notional amount maturity period | 3 years | |||
Interest Rate Swaps Four | ||||
Derivative [Line Items] | ||||
Notional amount | $ 35,000 | |||
Derivative notional amount maturity period | 4 years | |||
Interest Rate Swaps Five | ||||
Derivative [Line Items] | ||||
Notional amount | $ 35,000 | |||
Derivative notional amount maturity period | 5 years |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jul. 31, 2017 | Dec. 31, 2016 |
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 100,000 | ||
Not Designated As Hedging | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | $ 1,881,217 | $ 1,384,163 | |
Asset | 10,033 | 19,745 | |
Liability | 2,434 | 586 | |
Not Designated As Hedging | Interest rate contracts | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 139,545 | 22,243 | |
Asset | 1,456 | 586 | |
Liability | 1,456 | 586 | |
Not Designated As Hedging | Forward commitments | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 851,000 | 829,000 | |
Asset | 154 | 12,731 | |
Not Designated As Hedging | Interest rate-lock commitments | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 540,672 | 532,920 | |
Asset | 8,423 | $ 6,428 | |
Not Designated As Hedging | Futures Contracts | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 350,000 | ||
Liability | 978 | ||
Designated as Hedging | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 130,000 | ||
Asset | 283 | ||
Designated as Hedging | Interest Rate Swaps | |||
Derivatives Fair Value [Line Items] | |||
Notional amount | 130,000 | ||
Asset | $ 283 |
Derivatives - Schedule of Gains
Derivatives - Schedule of Gains (Losses) Included in the Consolidated Statements of Income Related to Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivatives Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | $ (3,669) | $ (5,417) | $ (9,408) | $ (10,227) |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Interest rate-lock commitments | ||||
Derivatives Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 486 | (1,043) | 1,995 | 10,922 |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Forward commitments | ||||
Derivatives Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (4,221) | $ (4,374) | (11,469) | $ (21,149) |
Derivatives Not Designated As Hedging Instruments | Included in Mortgage Banking Income | Futures Contracts | ||||
Derivatives Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 66 | 66 | ||
Designated as Hedging | ||||
Derivatives Fair Value [Line Items] | ||||
Amount of gain reclassified from other comprehensive income and recognized in other interest expense | $ 150 | $ 150 |
Derivatives - Schedule of Other
Derivatives - Schedule of Other Comprehensive Income (Loss), Net of Tax, for Derivative Instruments Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2017 | Sep. 30, 2017 | |
Derivatives Fair Value [Line Items] | ||
Amount of gain recognized in other comprehensive income, net of tax | $ 172 | $ 172 |
Designated as Hedging | ||
Derivatives Fair Value [Line Items] | ||
Amount of gain recognized in other comprehensive income, net of tax | $ 172 | $ 172 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||||||
Available-for-sale securities, at fair value | $ 543,282 | $ 582,183 | ||||
Interest receivable | 11,218 | 7,241 | ||||
Mortgage servicing rights, net | 63,046 | $ 48,464 | 33,081 | $ 46,291 | $ 40,382 | $ 29,711 |
Carrying Amount | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 97,165 | 136,327 | ||||
Available-for-sale securities, at fair value | 543,282 | 582,183 | ||||
Federal Home Loan Bank Stock | 11,152 | 7,743 | ||||
Loans, net | 3,091,080 | 1,827,037 | ||||
Loans held for sale | 466,369 | 507,442 | ||||
Interest receivable | 11,218 | 7,241 | ||||
Mortgage servicing rights, net | 63,046 | 32,070 | ||||
Derivatives assets | 10,316 | 19,745 | ||||
Financial liabilities: | ||||||
Deposits, Without stated maturities | 3,051,322 | 2,280,531 | ||||
Deposits, With stated maturities | 667,216 | 391,031 | ||||
Securities sold under agreement to repurchase | 14,556 | 21,561 | ||||
Short term borrowings | 52,766 | 150,000 | ||||
Interest payable | 1,262 | 620 | ||||
Long-term debt | 143,533 | 44,892 | ||||
Derivatives liabilities | 2,434 | 586 | ||||
Fair Value | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 97,165 | 136,327 | ||||
Available-for-sale securities, at fair value | 543,282 | 582,183 | ||||
Federal Home Loan Bank Stock | 11,152 | 7,743 | ||||
Loans, net | 3,077,928 | 1,823,335 | ||||
Loans held for sale | 466,369 | 507,442 | ||||
Interest receivable | 11,218 | 7,241 | ||||
Mortgage servicing rights, net | 63,046 | 33,081 | ||||
Derivatives assets | 10,316 | 19,745 | ||||
Financial liabilities: | ||||||
Deposits, Without stated maturities | 3,051,322 | 2,280,531 | ||||
Deposits, With stated maturities | 662,988 | 390,484 | ||||
Securities sold under agreement to repurchase | 14,556 | 21,561 | ||||
Short term borrowings | 52,766 | 150,000 | ||||
Interest payable | 1,262 | 620 | ||||
Long-term debt | 148,136 | 47,377 | ||||
Derivatives liabilities | 2,434 | 586 | ||||
Fair Value | Fair Value Level 1 | ||||||
Financial assets: | ||||||
Cash and cash equivalents | 97,165 | 136,327 | ||||
Financial liabilities: | ||||||
Deposits, Without stated maturities | 3,051,322 | 2,280,531 | ||||
Securities sold under agreement to repurchase | 14,556 | 21,561 | ||||
Short term borrowings | 52,766 | 150,000 | ||||
Interest payable | 367 | 237 | ||||
Fair Value | Fair Value Level 2 | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 539,678 | 577,634 | ||||
Loans, net | 2,999,008 | 1,822,054 | ||||
Loans held for sale | 466,369 | 507,442 | ||||
Interest receivable | 11,218 | 7,241 | ||||
Derivatives assets | 10,316 | 19,745 | ||||
Financial liabilities: | ||||||
Deposits, With stated maturities | 662,988 | 390,484 | ||||
Interest payable | 895 | 383 | ||||
Long-term debt | 148,136 | 47,377 | ||||
Derivatives liabilities | 2,434 | 586 | ||||
Fair Value | Fair Value Level 3 | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 3,604 | 4,549 | ||||
Federal Home Loan Bank Stock | 11,152 | 7,743 | ||||
Loans, net | 78,920 | 1,281 | ||||
Mortgage servicing rights, net | $ 63,046 | $ 33,081 |
Fair Value Measurements - Balan
Fair Value Measurements - Balances and Levels of Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Financial assets: | ||||||
Available-for-sale securities, at fair value | $ 543,282 | $ 582,183 | ||||
Mortgage servicing rights, net | 63,046 | $ 48,464 | 33,081 | $ 46,291 | $ 40,382 | $ 29,711 |
Impaired loans | 8,921 | 12,951 | ||||
Fair Value, Measurements, Recurring | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 543,282 | 582,183 | ||||
Loans held for sale | 466,369 | 507,442 | ||||
Mortgage servicing rights, net | 63,046 | |||||
Derivatives assets | 10,316 | 19,745 | ||||
Financial liabilities: | ||||||
Derivatives liabilities | 2,434 | 586 | ||||
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 992 | 985 | ||||
Fair Value, Measurements, Recurring | Mortgage-backed Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 418,794 | 443,908 | ||||
Fair Value, Measurements, Recurring | Municipals, Tax Exempt | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 106,950 | 116,923 | ||||
Fair Value, Measurements, Recurring | Treasury Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 8,819 | 11,757 | ||||
Fair Value, Measurements, Recurring | Equity Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 7,727 | 8,610 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 539,678 | 577,634 | ||||
Loans held for sale | 466,369 | 507,442 | ||||
Derivatives assets | 10,316 | 19,745 | ||||
Financial liabilities: | ||||||
Derivatives liabilities | 2,434 | 586 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | U.S. Government Agency Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 992 | 985 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Mortgage-backed Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 418,794 | 443,908 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Municipals, Tax Exempt | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 106,950 | 116,923 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Treasury Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 8,819 | 11,757 | ||||
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 4,123 | 4,061 | ||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 3,604 | 4,549 | ||||
Mortgage servicing rights, net | 63,046 | |||||
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | ||||||
Financial assets: | ||||||
Available-for-sale securities, at fair value | 3,604 | 4,549 | ||||
Fair Value, Measurements, Nonrecurring | ||||||
Financial assets: | ||||||
Mortgage servicing rights, net | 32,070 | |||||
Other real estate owned | 8,704 | 2,315 | ||||
Impaired loans | 78,920 | 1,281 | ||||
Fair Value, Measurements, Nonrecurring | Commercial and Industrial | ||||||
Financial assets: | ||||||
Impaired loans | 2,659 | 542 | ||||
Fair Value, Measurements, Nonrecurring | Consumer and Other | ||||||
Financial assets: | ||||||
Impaired loans | 26,800 | 1 | ||||
Fair Value, Measurements, Nonrecurring | 1-to-4 Family Mortgage | Residential Real Estate | ||||||
Financial assets: | ||||||
Impaired loans | 22,948 | 103 | ||||
Fair Value, Measurements, Nonrecurring | Owner Occupied | Commercial Real Estate | ||||||
Financial assets: | ||||||
Impaired loans | 635 | |||||
Fair Value, Measurements, Nonrecurring | Non-Owner Occupied | Commercial Real Estate | ||||||
Financial assets: | ||||||
Impaired loans | 13,912 | |||||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | ||||||
Financial assets: | ||||||
Mortgage servicing rights, net | 32,070 | |||||
Other real estate owned | 8,704 | 2,315 | ||||
Impaired loans | 78,920 | 1,281 | ||||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Commercial and Industrial | ||||||
Financial assets: | ||||||
Impaired loans | 2,659 | 542 | ||||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Consumer and Other | ||||||
Financial assets: | ||||||
Impaired loans | 26,800 | 1 | ||||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Construction Loans | Commercial and Industrial | ||||||
Financial assets: | ||||||
Impaired loans | 4,295 | |||||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | 1-to-4 Family Mortgage | Residential Real Estate | ||||||
Financial assets: | ||||||
Impaired loans | 22,948 | 103 | ||||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Owner Occupied | Commercial Real Estate | ||||||
Financial assets: | ||||||
Impaired loans | 8,306 | $ 635 | ||||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | Non-Owner Occupied | Commercial Real Estate | ||||||
Financial assets: | ||||||
Impaired loans | $ 13,912 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Changes in Fair Value on Available-for-Sale Securities Measured at Fair Value on Recurring Basis using Significant Unobservable Inputs or Level 3 Inputs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | ||||
Balance at beginning of period | $ 4,549 | $ 4,856 | $ 4,549 | $ 4,856 |
Impairment of equity securities | (945) | (945) | ||
Capital distribution | (307) | (307) | ||
Balance at end of period | $ 3,604 | $ 4,549 | $ 3,604 | $ 4,549 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Valuation of collateral | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.00% | 0.00% |
Valuation of collateral | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 30.00% | 30.00% |
Valuation of collateral | Impaired Loans | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 78,920 | $ 1,281 |
Appraised value of property less costs to sell | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.00% | 0.00% |
Appraised value of property less costs to sell | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 15.00% | 10.00% |
Appraised value of property less costs to sell | Other Real Estate Owned | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 8,704 | $ 2,315 |
Discounted cash flows | Mortgage Servicing Rights, Net | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of assets | $ 33,081 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Mortgage Loans | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Net (losses) gains from fair value changes of mortgage loans | $ (272) | $ 5,843 | $ 9,198 | $ 12,638 |
GNMA | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||||
Mortgage loans held for sale measured at fair value | $ 13,575 | $ 13,575 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 452,794 | $ 507,442 |
Aggregate Unpaid Principal Balance | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 424,081 | 501,503 |
Difference | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 28,713 | $ 5,939 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)Segment | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 2 | |||
Interest paid | $ 9,652 | $ 7,041 | ||
Interest income | $ 44,367 | $ 26,550 | 102,723 | 77,740 |
Mortgage Segment | ||||
Segment Reporting Information [Line Items] | ||||
Interest paid | $ 4,274 | $ 3,472 | $ 11,656 | $ 8,555 |
Mortgage Segment | Prime Interest Rate | ||||
Segment Reporting Information [Line Items] | ||||
Warehouse line of credit interest rate | 4.25% | 3.50% | 4.25% | 3.50% |
Banking Segment | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | $ 4,274 | $ 3,472 | $ 11,656 | $ 8,555 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net interest income | $ 43,610 | $ 27,617 | $ 104,288 | $ 81,918 | |
Provision for loan losses | (784) | 71 | (1,906) | (727) | |
Mortgage banking income | 32,227 | 36,938 | 89,887 | 91,574 | |
Change in fair value of mortgage servicing rights | (893) | (3,234) | |||
Other noninterest income | 6,486 | 7,024 | 17,911 | 21,779 | |
Depreciation and amortization | 1,097 | 972 | 3,090 | 2,994 | |
Amortization of intangibles | 558 | 526 | 1,073 | 1,605 | |
Amortization and impairment of mortgage servicing rights | 5,198 | 14,310 | |||
Loss on sale of mortgage servicing rights | 249 | ||||
Other noninterest mortgage banking expense | 25,848 | 25,794 | 73,007 | 62,583 | |
Other noninterest expense | 41,721 | 23,039 | 87,358 | 65,979 | |
Income before income taxes | 12,990 | 15,979 | 45,981 | 48,527 | |
Income tax expense | 4,602 | 14,772 | 16,601 | 16,946 | |
Net income | 8,388 | 1,207 | 29,380 | 31,581 | |
Total assets | 4,581,943 | 3,187,180 | 4,581,943 | 3,187,180 | $ 3,276,881 |
Goodwill | 138,910 | 46,867 | 138,910 | 46,867 | $ 46,867 |
Banking Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | 43,741 | 28,158 | 103,596 | 83,389 | |
Provision for loan losses | (784) | 71 | (1,906) | (727) | |
Mortgage banking income | 7,498 | 8,878 | 20,282 | 22,237 | |
Other noninterest income | 6,486 | 7,024 | 17,911 | 21,779 | |
Depreciation and amortization | 972 | 927 | 2,697 | 2,729 | |
Amortization of intangibles | 558 | 526 | 1,073 | 1,605 | |
Other noninterest mortgage banking expense | 6,216 | 7,293 | 16,420 | 15,223 | |
Other noninterest expense | 41,721 | 23,039 | 87,358 | 65,979 | |
Income before income taxes | 9,042 | 12,204 | 36,147 | 42,596 | |
Total assets | 4,056,901 | 2,661,116 | 4,056,901 | 2,661,116 | |
Goodwill | 138,810 | 46,767 | 138,810 | 46,767 | |
Mortgage Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net interest income | (131) | (541) | 692 | (1,471) | |
Mortgage banking income | 24,729 | 28,060 | 69,605 | 69,337 | |
Change in fair value of mortgage servicing rights | (893) | (3,234) | |||
Depreciation and amortization | 125 | 45 | 393 | 265 | |
Amortization and impairment of mortgage servicing rights | 5,198 | 14,310 | |||
Loss on sale of mortgage servicing rights | 249 | ||||
Other noninterest mortgage banking expense | 19,632 | 18,501 | 56,587 | 47,360 | |
Income before income taxes | 3,948 | 3,775 | 9,834 | 5,931 | |
Total assets | 525,042 | 526,064 | 525,042 | 526,064 | |
Goodwill | $ 100 | $ 100 | $ 100 | $ 100 |
Segment Reporting - Schedule 94
Segment Reporting - Schedule of Segment Financial Information (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Merger and conversion related expenses | $ 15,711 | $ 1,122 | $ 16,965 | $ 3,268 |
Clayton Banks | ||||
Segment Reporting Information [Line Items] | ||||
Merger and conversion related expenses | $ 15,711 | $ 16,965 | ||
Northwest Georgia Bank | ||||
Segment Reporting Information [Line Items] | ||||
Merger and conversion related expenses | $ 1,122 | $ 3,268 |
Minimum Capital Requirements -
Minimum Capital Requirements - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Banking And Thrift [Abstract] | |
Capital conservative buffer percentage | 2.50% |
Description of capital adequacy purposes | Beginning in 2016, an additional conservation buffer was added to the minimum requirements for capital adequacy purposes, subject to a three year phase-in period. The capital conservative buffer will be fully phased in January 1, 2019 at 2.5 percent. |
Minimum Capital Requirements 96
Minimum Capital Requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
FB Financial Corporation | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 481,360 | $ 338,893 |
Total Capital (to risk-weighted assets), Actual Ratio | 12.18% | 13.03% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 316,164 | $ 208,069 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 365,565 | $ 224,325 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 9.25% | 8.63% |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 457,878 | $ 317,146 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 11.58% | 12.19% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 237,242 | $ 156,101 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 286,668 | $ 172,362 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.25% | 6.63% |
Tier 1 Capital (to average assets), Actual Amount | $ 457,878 | $ 317,146 |
Tier 1 Capital (to average assets), Actual Ratio | 11.35% | 10.05% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 161,367 | $ 126,227 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 427,878 | $ 287,146 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 10.82% | 11.04% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 177,953 | $ 117,043 |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 227,384 | $ 133,299 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 5.75% | 5.13% |
FirstBank | ||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 449,795 | $ 304,018 |
Total Capital (to risk-weighted assets), Actual Ratio | 11.31% | 11.72% |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 318,157 | $ 207,521 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 8.00% | 8.00% |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 367,869 | $ 223,733 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 9.25% | 8.63% |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 397,697 | $ 259,401 |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 10.00% | 10.00% |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 426,313 | $ 282,271 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 10.72% | 10.88% |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 238,608 | $ 155,664 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 6.00% | 6.00% |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 288,318 | $ 171,879 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.25% | 6.63% |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Amount | $ 238,608 | $ 155,664 |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Ratio | 6.00% | 6.00% |
Tier 1 Capital (to average assets), Actual Amount | $ 426,313 | $ 282,271 |
Tier 1 Capital (to average assets), Actual Ratio | 10.58% | 8.95% |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 161,177 | $ 126,155 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio | 4.00% | 4.00% |
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Amount | $ 201,471 | $ 157,693 |
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Ratio | 5.00% | 5.00% |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 426,313 | $ 282,271 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 10.72% | 10.88% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 178,956 | $ 116,748 |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 4.50% | 4.50% |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 228,666 | $ 132,963 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 5.75% | 5.13% |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 258,492 | $ 168,636 |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 6.50% | 6.50% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Vested and Unvested Restricted Stock Units Outstanding (Details) - Restricted Stock Units (RSUs) - $ / shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted Stock Units Outstanding, Balance, beginning of period | 1,200,848 | |
Restricted Stock Units Outstanding, Conversion of deferred compensation plan | 157,895 | |
Restricted Stock Units Outstanding, Conversion of equity based incentive (EBI) plans | 125,684 | |
Restricted Stock Units Outstanding, Grants | 103,714 | 1,077,058 |
Restricted Stock Units Outstanding, Released and distributed (vested) | 93,315 | 44,590 |
Restricted Stock Units Outstanding, Forfeited/expired | 3,133 | |
Restricted Stock Units Outstanding, Balance, end of period | 1,208,114 | 1,405,227 |
Weighted Average Grant Date Fair Value, Balance, beginning of period | $ 19 | |
Weighted Average Grant Date Fair Value, Conversion of deferred compensation plan | 19 | $ 19 |
Weighted Average Grant Date Fair Value, Conversion of equity based incentive (EBI) plans | 19 | 19 |
Weighted Average Grant Date Fair Value, Grants | 33.91 | 19 |
Weighted Average Grant Date Fair Value, Released and distributed (vested) | 19 | 19 |
Weighted Average Grant Date Fair Value, Forfeited/expired | 19 | |
Weighted Average Grant Date Fair Value, Balance, end of period | $ 19.67 | $ 19 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Compensation cost related to stock grants and vesting of restricted stock units | $ 4,808,000 | $ 3,373,000 | |||
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Fair value of restricted stock units vested and released | $ 427,000 | $ 847,000 | 1,773,000 | 847,000 | |
Compensation cost related to stock grants and vesting of restricted stock units | 1,850,000 | 3,373,000 | 5,004,000 | 3,373,000 | |
Unrecognized compensation cost related to nonvested restricted stock units | 14,199,000 | $ 14,199,000 | $ 15,721,000 | ||
Expected weighted-average period to be recognized | 2 years 11 months 9 days | 3 years 7 months 28 days | |||
Restricted Stock Units (RSUs) | Director | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Compensation cost related to stock grants and vesting of restricted stock units | $ 210,000 | $ 487,000 | 0 | ||
EBI Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
EBI Units remaining in equity based incentive plans for employees, units | 67,470 | 67,470 | 180,447 | ||
EBI Units remaining in equity based incentive plans for employees, value | $ 2,545,000 | $ 2,545,000 | $ 4,683,000 | ||
Expense related to cash settled EBI | $ 280,000 | $ 337,000 | $ 762,000 | $ 337,000 | |
Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Maximum number of shares issuable | 200,000 | ||||
Purchase price percentage of first offering period | 85.00% | ||||
Purchase price percentage of current offering period | 95.00% | ||||
Maximum number of shares per participant | 725 | ||||
Maximum worth of award per participant | $ 25,000,000 | ||||
Shares issued under plan | 18,658 | 0 | 18,658 | 0 | |
Number of shares reserved for issuance | 2,460,965 | 2,460,965 | 2,479,623 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Related Party Transactions [Abstract] | |
Loans outstanding, Beginning balance | $ 27,370 |
New loans and advances | 2,807 |
Repayments | (3,745) |
Loans outstanding, Ending balance | $ 26,432 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Thousands | Sep. 15, 2016 | Aug. 15, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 30, 2006 | Aug. 26, 1999 | Feb. 12, 1996 |
Related Party Transaction [Line Items] | ||||||||||
Unfunded commitments | $ 1 | $ 1 | $ 1 | |||||||
Deposits from related parties | 116,734 | 116,734 | 150,373 | |||||||
Aviation Time Sharing Agreement | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Payments to related party | 44 | $ 267 | 71 | $ 299 | ||||||
Initial Public Offering | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Repayments of subordinated debt | $ 10,075 | $ 10,075 | ||||||||
Certain Executive Officers and Directors and Their Associates | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Unfunded commitments | 7,017 | 7,017 | 6,838 | |||||||
Shareholders | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Unamortized leasehold improvements | 142 | 142 | 158 | |||||||
Lease expense | 127 | 128 | 377 | 392 | ||||||
Subordinated debt | $ 6,000 | $ 3,300 | $ 775 | |||||||
Payment of interest | $ 106 | $ 230 | ||||||||
Director | ||||||||||
Related Party Transaction [Line Items] | ||||||||||
Amount of investment held by the company | $ 200 | $ 200 | $ 1,145 |