Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37875 | |
Entity Registrant Name | FB FINANCIAL CORPORATION | |
Entity Incorporation, State or Country Code | TN | |
Entity Tax Identification Number | 62-1216058 | |
Entity Address, Address Line One | 211 Commerce Street | |
Entity Address, Address Line Two | Suite 300 | |
Entity Address, City or Town | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37201 | |
City Area Code | 615 | |
Local Phone Number | 564-1212 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Smaller Reporting Company | false | |
Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 32,103,348 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 Per Share | |
Trading Symbol | FBK | |
Security Exchange Name | NYSE | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001649749 | |
Current Fiscal Year End Date | --12-31 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 33,710 | $ 48,806 |
Federal funds sold | 34,638 | 131,119 |
Interest-bearing deposits in financial institutions | 649,244 | 52,756 |
Cash and cash equivalents | 717,592 | 232,681 |
Investments: | ||
Available-for-sale debt securities, at fair value | 747,438 | 688,381 |
Equity securities, at fair value | 4,329 | 3,295 |
Federal Home Loan Bank stock, at cost | 17,621 | 15,976 |
Loans held for sale, at fair value | 435,479 | 262,518 |
Loans | 4,827,023 | 4,409,642 |
Less: allowance for credit losses | 113,129 | 31,139 |
Net loans | 4,713,894 | 4,378,503 |
Premises and equipment, net | 100,638 | 90,131 |
Other real estate owned, net | 15,091 | 18,939 |
Operating lease right-of-use assets | 30,447 | 32,539 |
Interest receivable | 26,587 | 17,083 |
Mortgage servicing rights, at fair value | 60,508 | 75,521 |
Goodwill | 175,441 | 169,051 |
Core deposit and other intangibles, net | 17,671 | 17,589 |
Other assets | 192,800 | 122,714 |
Total assets | 7,255,536 | 6,124,921 |
Deposits | ||
Noninterest-bearing | 1,775,323 | 1,208,175 |
Interest-bearing checking | 1,236,094 | 1,014,875 |
Money market and savings | 1,749,889 | 1,520,035 |
Customer time deposits | 1,176,067 | 1,171,502 |
Brokered and internet time deposits | 15,428 | 20,351 |
Total deposits | 5,952,801 | 4,934,938 |
Borrowings | 328,662 | 304,675 |
Operating lease liabilities | 33,803 | 35,525 |
Accrued expenses and other liabilities | 135,054 | 87,454 |
Total liabilities | 6,450,320 | 5,362,592 |
SHAREHOLDERS' EQUITY | ||
Common stock, $1 par value per share; 75,000,000 shares authorized; 32,101,108 and 31,034,315 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively | 32,101 | 31,034 |
Additional paid-in capital | 462,930 | 425,633 |
Retained earnings | 286,296 | 293,524 |
Accumulated other comprehensive income, net | 23,889 | 12,138 |
Total shareholders' equity | 805,216 | 762,329 |
Total liabilities and shareholders' equity | $ 7,255,536 | $ 6,124,921 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 32,101,108 | 31,034,315 |
Common stock, shares outstanding (in shares) | 32,101,108 | 31,034,315 |
Consolidated statements of inco
Consolidated statements of income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income: | ||||
Interest and fees on loans | $ 61,092 | $ 66,276 | $ 124,846 | $ 126,724 |
Interest on securities | ||||
Taxable | 2,619 | 3,548 | 5,675 | 7,117 |
Tax-exempt | 1,590 | 1,160 | 3,023 | 2,304 |
Other | 306 | 735 | 1,737 | 1,507 |
Total interest income | 65,607 | 71,719 | 135,281 | 137,652 |
Interest expense: | ||||
Deposits | 9,309 | 13,488 | 21,477 | 25,343 |
Borrowings | 961 | 1,208 | 2,218 | 2,270 |
Total interest expense | 10,270 | 14,696 | 23,695 | 27,613 |
Net interest income | 55,337 | 57,023 | 111,586 | 110,039 |
Provision for credit losses | 24,039 | 881 | 52,003 | 2,272 |
Provision for credit losses on unfunded commitments | 1,882 | 0 | 3,483 | 0 |
Net interest income after provisions for credit losses | 29,416 | 56,142 | 56,100 | 107,767 |
Noninterest income: | ||||
(Loss) gain from securities, net | (28) | 52 | 35 | 95 |
Gain on sales or write-downs of other real estate owned | 86 | 277 | 137 | 238 |
(Loss) gain from other assets | (54) | (183) | (382) | 8 |
Other income | 2,487 | 1,691 | 5,262 | 3,484 |
Total noninterest income | 81,491 | 32,979 | 124,191 | 62,018 |
Noninterest expenses: | ||||
Salaries, commissions and employee benefits | 55,258 | 37,918 | 98,880 | 71,615 |
Occupancy and equipment expense | 4,096 | 4,319 | 8,274 | 8,049 |
Legal and professional fees | 1,952 | 1,694 | 3,510 | 3,419 |
Data processing | 2,782 | 2,643 | 5,235 | 5,027 |
Merger costs | 1,586 | 3,783 | 4,636 | 4,404 |
Amortization of core deposit and other intangibles | 1,205 | 1,254 | 2,408 | 1,983 |
Advertising | 2,591 | 2,434 | 4,980 | 5,171 |
Other expense | 11,109 | 10,074 | 21,215 | 19,552 |
Total noninterest expense | 80,579 | 64,119 | 149,138 | 119,220 |
Income before income taxes | 30,328 | 25,002 | 31,153 | 50,565 |
Income tax expense | 7,455 | 6,314 | 7,535 | 12,289 |
Net income | $ 22,873 | $ 18,688 | $ 23,618 | $ 38,276 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.71 | $ 0.60 | $ 0.75 | $ 1.24 |
Diluted (in dollars per share) | $ 0.70 | $ 0.59 | $ 0.74 | $ 1.21 |
Mortgage banking income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 72,168 | $ 24,526 | $ 104,913 | $ 45,547 |
Service charges on deposit accounts | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 1,858 | 2,327 | 4,421 | 4,406 |
ATM and interchange fees | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | 3,606 | 3,002 | 6,740 | 5,658 |
Investment services and trust income | ||||
Noninterest income: | ||||
Mortgage banking income, service charges on deposit accounts, ATM and interchange fees, investment services and trust income | $ 1,368 | $ 1,287 | $ 3,065 | $ 2,582 |
Consolidated statements of comp
Consolidated statements of comprehensive income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 22,873 | $ 18,688 | $ 23,618 | $ 38,276 |
Other comprehensive income, net of tax: | ||||
OCI, Debt Securities, Available-for-Sale, Unrealized Holding Gain (Loss), before Adjustment, after Tax | 1,209 | 6,725 | 13,303 | 14,503 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | (3) | 0 | 1 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (112) | (564) | (1,257) | (895) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (148) | (119) | (295) | (213) |
Total other comprehensive income, net of tax | 949 | 6,039 | 11,751 | 13,396 |
Comprehensive income | $ 23,822 | $ 24,727 | $ 35,369 | $ 51,672 |
Consolidated statements of co_2
Consolidated statements of comprehensive income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in unrealized gain (loss) in available for sale securities, tax | $ 429 | $ 2,382 | $ 4,704 | $ 5,134 |
Reclassification adjustment for gain on sale of securities included in net income, tax | 0 | (2) | 0 | 0 |
Other comprehensive income (loss), cash flow hedge, gain (loss), before reclassification, tax | (40) | (201) | (443) | (317) |
Reclassification adjustment for gain on hedging activities, tax | $ (52) | $ (42) | $ (104) | $ (75) |
Consolidated statements of chan
Consolidated statements of changes in shareholders' equity - USD ($) $ in Thousands | Total | Period of adoption, adjustment | Period of adoption, adjusted balance | Common stock | Common stockPeriod of adoption, adjusted balance | Additional paid-in capital | Additional paid-in capitalPeriod of adoption, adjusted balance | Retained earnings | Retained earningsPeriod of adoption, adjustment | Retained earningsPeriod of adoption, adjusted balance | Accumulated other comprehensive income, net | Accumulated other comprehensive income, netPeriod of adoption, adjusted balance |
Balance at Dec. 31, 2018 | $ 671,857 | $ (1,309) | $ 670,548 | $ 30,725 | $ 30,725 | $ 424,146 | $ 424,146 | $ 221,213 | $ (1,309) | $ 219,904 | $ (4,227) | $ (4,227) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 38,276 | 38,276 | ||||||||||
Other comprehensive income (loss), net of taxes | 13,396 | 13,396 | ||||||||||
Stock based compensation expense | 3,785 | 6 | 3,779 | |||||||||
Restricted stock units vested and distributed, net of shares withheld | (2,510) | 124 | (2,634) | |||||||||
Shares issued under employee stock purchase program | 364 | 11 | 353 | |||||||||
Dividends declared | (5,100) | (5,100) | ||||||||||
Balance at Jun. 30, 2019 | 718,759 | 30,866 | 425,644 | 253,080 | 9,169 | |||||||
Balance at Mar. 31, 2019 | 694,577 | 30,853 | 423,647 | 236,947 | 3,130 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 18,688 | 18,688 | ||||||||||
Other comprehensive income (loss), net of taxes | 6,039 | 6,039 | ||||||||||
Stock based compensation expense | 2,147 | 3 | 2,144 | |||||||||
Restricted stock units vested and distributed, net of shares withheld | (137) | 10 | (147) | |||||||||
Dividends declared | (2,555) | (2,555) | ||||||||||
Balance at Jun. 30, 2019 | 718,759 | 30,866 | 425,644 | 253,080 | 9,169 | |||||||
Balance at Dec. 31, 2019 | 762,329 | $ (25,018) | $ 737,311 | 31,034 | $ 31,034 | 425,633 | $ 425,633 | 293,524 | $ (25,018) | $ 268,506 | 12,138 | $ 12,138 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 23,618 | 23,618 | ||||||||||
Other comprehensive income (loss), net of taxes | 11,751 | 11,751 | ||||||||||
Common stock issued in connection with acquisition of FNB Financial Corp., net of registration costs | 34,847 | 955 | 33,892 | |||||||||
Stock based compensation expense | 4,233 | 11 | 4,222 | |||||||||
Restricted stock units vested and distributed, net of shares withheld | (1,162) | 89 | (1,251) | |||||||||
Shares issued under employee stock purchase program | 446 | 12 | 434 | |||||||||
Dividends declared | (5,828) | (5,828) | ||||||||||
Balance at Jun. 30, 2020 | 805,216 | 32,101 | 462,930 | 286,296 | 23,889 | |||||||
Balance at Mar. 31, 2020 | 782,330 | 32,067 | 460,938 | 266,385 | 22,940 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 22,873 | 22,873 | ||||||||||
Other comprehensive income (loss), net of taxes | 949 | 949 | ||||||||||
Stock based compensation expense | 2,350 | 6 | 2,344 | |||||||||
Restricted stock units vested and distributed, net of shares withheld | (324) | 28 | (352) | |||||||||
Dividends declared | (2,962) | (2,962) | ||||||||||
Balance at Jun. 30, 2020 | $ 805,216 | $ 32,101 | $ 462,930 | $ 286,296 | $ 23,889 |
Consolidated statements of ch_2
Consolidated statements of changes in shareholders' equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (USD per share) | $ 0.09 | $ 0.08 | $ 0.18 | $ 0.16 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||||
Net income | $ 22,873 | $ 18,688 | $ 23,618 | $ 38,276 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation expense | 3,231 | 2,450 | |||
Amortization of core deposit and other intangibles | 1,205 | 1,254 | 2,408 | 1,983 | |
Capitalization of mortgage servicing rights | (20,063) | (19,932) | |||
Net change in fair value of mortgage servicing rights | 14,340 | 8,863 | 35,076 | 13,221 | |
Stock-based compensation expense | 4,233 | 3,785 | |||
Provision for credit losses | 24,039 | 881 | 52,003 | 2,272 | |
Provision for credit losses on unfunded commitments | 1,882 | 0 | 3,483 | 0 | |
Provision for mortgage loan repurchases | 855 | 89 | 1,227 | 148 | |
Accretion of yield on purchased loans | (2,554) | (3,928) | |||
Accretion of discounts and amortization of premiums on securities, net | 2,077 | 1,296 | |||
Gain from securities, net | 28 | (52) | (35) | (95) | |
Originations of loans held for sale | (2,807,047) | (2,240,059) | |||
Repurchases of loans held for sale | 0 | (9,670) | |||
Proceeds from sale of loans held for sale | 2,739,933 | 2,269,654 | |||
Gain on sale and change in fair value of loans held for sale | (113,888) | (42,425) | |||
Net gain on other real estate owned | (86) | (277) | (137) | (238) | |
Loss (gain) on other assets | 54 | 183 | 382 | (8) | |
Relief of goodwill due to sale of TPO mortgage delivery channel | 0 | 100 | |||
Provision for deferred income taxes | (8,292) | (232) | (16,380) | (4,451) | |
Changes in: | |||||
Operating leases | 370 | 0 | |||
Other assets and interest receivable | (104,474) | (39,331) | |||
Accrued expenses and other liabilities | 48,799 | 13,803 | |||
Net cash used in operating activities | (147,738) | (13,149) | |||
Activity in available-for-sale securities: | |||||
Sales | 0 | 0 | 0 | 1,758 | |
Maturities, prepayments and calls | 44,703 | 29,353 | 72,360 | 50,167 | |
Purchases | (59,984) | (54,218) | |||
Net change in loans | (196,303) | (239,425) | |||
Purchases of FHLB stock | (1,176) | (2,544) | |||
Proceeds from sale of mortgage servicing rights | 0 | 29,160 | |||
Purchases of premises and equipment | (4,827) | (1,011) | |||
Proceeds from the sale of premises and equipment | 0 | 290 | |||
Proceeds from the sale of other real estate owned | 2,708 | 1,148 | 4,150 | 1,864 | |
Net cash paid in business combination | (4,227) | 171,032 | |||
Net cash used in investing activities | (190,007) | (42,927) | |||
Cash flows from financing activities: | |||||
Net increase in demand deposits | 891,237 | 71,898 | |||
Net (decrease) increase in time deposits | (82,909) | 10,334 | |||
Net increase in securities sold under agreements to repurchase and federal funds purchased | 5,795 | 16,716 | |||
Net increase in FHLB advances | 0 | 3,235 | |||
Proceeds from other borrowings | 15,000 | 0 | |||
Share-based compensation withholding payments | (1,162) | (2,510) | |||
Net proceeds from sale of common stock | 446 | 364 | |||
Dividends paid | (5,751) | (4,981) | |||
Net cash provided by financing activities | 822,656 | 95,056 | |||
Net change in cash and cash equivalents | 484,911 | 38,980 | |||
Cash and cash equivalents at beginning of the period | 232,681 | 125,356 | $ 125,356 | ||
Cash and cash equivalents at end of the period | 717,592 | 164,336 | 717,592 | 164,336 | 232,681 |
Supplemental cash flow information: | |||||
Interest paid | 23,081 | 23,869 | |||
Taxes paid | 1,590 | 12,823 | |||
Supplemental noncash disclosures: | |||||
Transfers from loans to other real estate owned | 641 | 924 | 1,006 | 2,030 | |
Transfers from other real estate owned to premises and equipment | 841 | 0 | |||
Transfers from premises and equipment to other real estate owned | 0 | 2,640 | |||
Loans provided for sales of other real estate owned | 0 | 0 | 0 | 166 | |
Transfers from loans to loans held for sale | 6,317 | 116 | |||
Transfers from loans held for sale to loans | 14,358 | 6,732 | |||
Stock consideration paid in business combination | 35,041 | 0 | |||
Trade date payable - securities | 5,431 | 1,089 | $ 0 | ||
Trade date receivable - securities | 0 | 86 | |||
Dividends declared not paid on restricted stock units | $ 77 | $ 119 | 77 | 119 | |
Decrease to retained earnings for adoption of new accounting standards | 25,018 | 1,309 | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 806 | $ 38,249 |
Basis of presentation
Basis of presentation | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation: Overview and presentation FB Financial Corporation (the “Company”) is a bank holding company headquartered in Nashville, Tennessee. The Company operates through its wholly-owned subsidiary, FirstBank (the "Bank"), with 72 full-service branches throughout Tennessee, north Alabama, Kentucky and north Georgia, and a national mortgage business with office locations across the Southeast, which primarily originates loans to be sold in the secondary market. The unaudited consolidated financial statements, including the notes thereto, have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) interim reporting requirements and general banking industry guidelines, 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. 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. 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. The Company continues to qualify as an emerging growth company as defined by the "Jumpstart Our Business Startups Act" ("JOBS Act"). Coronavirus Disease 2019 ("COVID-19") The COVID-19 health pandemic that appeared in the United States in the first quarter of 2020 has created a health and economic crisis that has resulted in volatility in financial markets, disruption in consumer and commercial behavior and unprecedented job losses and action taken by governments in the United States and globally. All industries, municipalities and consumers have been impacted to some degree, including the markets that the Company serves. In an attempt to “flatten the curve”, commerce has been required to adapt, from virtually coming to a halt to exploring alternative ways to continue offering services. Businesses not deemed essential have closed and individuals have been asked to restrict their movements, observe social distancing and other restrictions, including shelter in place. These actions have resulted in rapid decreases in traditional commercial and consumer activities, temporary and intermittent closures of many businesses that have led to a loss of revenues and a rapid increase and volatility in unemployment rates, widening of credit spreads, dislocation of bond markets, disruption of global supply chains and changes in consumer spending behavior. During the end of second quarter of 2020, many municipalities within the Company's footprint began loosening restrictions and many customers began returning to work, pointing to an improvement in economic conditions, however subsequent to these changes, the number of COVID-19 cases began to rise in certain locations, leading to an increase in restrictions and slow down in commerce once again, which continues to persist. The duration and potential financial impact is currently unknown, however if these conditions are sustained without some mitigating factors such as additional or extended government assistance programs, it may impact borrowers' ability to repay loans, which could cause material adverse effect on the Company's business operations and lead to valuation impairments on the Company's intangible assets, loans, investments, mortgage servicing rights, and derivative instruments. COVID-19 relief programs On March 13, 2020, the COVID-19 Emergency Declaration was issued leading to the Coronavirus Aid, Relief and Economic Security ("CARES") Act, which was enacted on March 27, 2020. The CARES Act includes the Paycheck Protection Program (“PPP”), a nearly $670 billion program, as amended, designed to aid small- and medium-sized businesses through federally guaranteed loans distributed through banks. These loans are intended to guarantee up to 24 weeks of payroll and other costs, including rent and other operating costs, to help those businesses remain viable and allow their workers to continue paying bills. As of June 30, 2020, the Company funded $314,678 of PPP loans through the US Small Business Administration ("SBA"). Additionally, the Company introduced a payment deferral program for commercial and consumer customers to assist during these unprecedented times. At June 30, 2020, the Company's recorded investment in loans in deferral status totaled $918.3 million. These payment deferrals are for initial terms of up to ninety Subsequent events 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 June 30, 2020, but prior to the issuance of these financial statements that would have a material impact on the Company's consolidated financial statements. Earnings per share Basic earnings per common share ("EPS") excludes dilution and is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding for the period, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. The following is a summary of the basic and diluted earnings per common share calculation for each of the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per common share calculation: Net income $ 22,873 $ 18,688 $ 23,618 $ 38,276 Dividends paid on and undistributed earnings allocated to — (100) — (205) Earnings attributable to common shareholders $ 22,873 $ 18,588 $ 23,618 $ 38,071 Weighted-average basic shares outstanding 32,094,274 30,859,596 31,676,004 30,823,341 Basic earnings per common share $ 0.71 $ 0.60 $ 0.75 $ 1.24 Diluted earnings per common share: Earnings attributable to common shareholders $ 22,873 $ 18,588 $ 23,618 $ 38,071 Weighted-average basic shares outstanding 32,094,274 30,859,596 31,676,004 30,823,341 Weighted-average diluted shares contingently issuable (1) 412,143 518,422 433,190 525,625 Weighted-average diluted shares outstanding 32,506,417 31,378,018 32,109,194 31,348,966 Diluted earnings per common share $ 0.70 $ 0.59 $ 0.74 $ 1.21 1 Excludes 352,888 restricted stock units outstanding considered to be antidilutive for the three and six months ended June 30, 2020. Recently adopted accounting policies: The Company modified or adopted the following accounting policies during the six months ended June 30, 2020, primarily as a result of the implementation of FASB Accounting Standards Update ("ASU") 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ("CECL"): Investment securities: Debt securities are classified as held to maturity and carried at amortized cost, excluding accrued interest, when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Available-for-sale debt securities are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of applicable taxes. Beginning January 1, 2020, unrealized losses resulting from credit losses for available-for-sale debt securities are recognized in earnings as a provision for credit losses. Unrealized losses that do not result from credit losses are excluded from earnings and reported as accumulated other comprehensive income, net of applicable taxes, which is included in equity. Accrued interest receivable is separated from other components of amortized cost and presented separately on the consolidated balance sheets. Equity securities with readily determinable market values are carried at fair value on the balance sheet with any periodic changes in value made through adjustments to the statement of income. Equity securities without readily determinable market values are carried at cost less impairment and included in other assets on the consolidated balance sheets. Interest income includes the amortization and accretion of purchase premium and discount. Premiums and discounts on securities are amortized on the level-yield method anticipating prepayments based upon the prior three month average monthly prepayments when available. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company evaluates available-for-sale securities for expected credit losses at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. For securities in an unrealized loss position, consideration is given to the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. When credit losses are expected to occur, the amount of the expected credit loss recognized in earnings depends on the Company's intention to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the expected credit loss recognized in earnings is equal to the entire difference between its amortized cost basis and its fair value at the date it was determined to be impaired due to credit losses or other factors. The previous amortized cost basis less the impairment recognized in earnings becomes the new amortized cost basis of the investment. However, if the Company does not intend to sell the security and it is not more likely than not to be required to sell the security before recovery of its amortized cost basis, the difference between the amortized cost and the fair value is separated into the amount representing the credit loss and the amount related to all other factors. If the Company determines a decline in fair value below the amortized cost basis of an available-for-sale investment security has resulted from credit related factors, beginning January 1, 2020 with the adoption of CECL, the Company records a credit loss through an allowance for credit losses. The allowance for credit losses is limited by the amount that the fair value is less than amortized cost. The amount of the allowance for credit losses is determined based on the present value of cash flows expected to be collected and is recognized as a charge to earnings. The amount of the impairment related to other, non-credit related, factors is recognized in other comprehensive income, net of applicable taxes. The Company did not record any provision for credit losses for its available-for-sale debt securities during the three months or six months ended June 30, 2020, as the majority of the investment portfolio is government guaranteed and declines in fair value below amortized cost were determined to be non-credit related. Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding less any purchase accounting discount net of any accretion recognized to date. Interest on loans is recognized as income by using the simple interest method on daily balances of the principal amount outstanding plus any accretion of purchase accounting discounts. Accrued interest receivable is separated from other components of amortized cost and presented separately on the consolidated balance sheets. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest is discontinued on loans past due 90 days or more unless the credit is well secured and in the process of collection. Also, a loan may be placed on nonaccrual status prior to becoming past due 90 days if management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of principal or interest is doubtful. The decision to place a loan on nonaccrual status prior to becoming past due 90 days is based on an evaluation of the borrower’s financial condition, collateral liquidation value, economic and business conditions and other factors that affect the borrower’s ability to pay. When a loan is placed on nonaccrual status, the accrued but unpaid interest is charged against current period operations through a reversal of interest income. Thereafter, interest on nonaccrual loans is recognized only as received if future collection of principal is probable. If the collectibility of outstanding principal is doubtful, interest received is applied as a reduction of principal. A loan may be restored to accrual status when principal and interest are no longer past due or it otherwise becomes both well secured and collectability is reasonably assured. The nonaccrual policy results in timely reversal of accrued interest receivable, so an allowance for credit losses is not required on accrued interest receivable. Allowance for credit losses: The allowance for credit losses represents the portion of the loan's amortized cost basis that the Company does not expect to collect due to credit losses over the loan's life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions considering macroeconomic forecasts. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses is based on the loan's amortized cost basis, excluding accrued interest receivable, as the Company promptly charges off uncollectible accrued interest receivable. Management’s determination of the appropriateness of the allowance is based on periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors, including macroeconomic forecasts and historical loss rates. In future quarters, the Company may update information and forecasts that may cause significant changes in the estimate in those future quarters. As of January 1, 2020, the Company’s policy for the allowance for credit losses changed with the adoption of CECL. As permitted, the new guidance was implemented using a modified retrospective approach with the impact of the initial adoption being recorded through retained earnings at January 1, 2020, with no restatement of prior periods. Prior to adopting CECL, the Company calculated the allowance using an incurred loss approach. Beginning January 1, 2020, the Company calculates the allowance using a lifetime expected credit loss approach as described in the previous paragraph. See Note 4 for additional details related to the Company's specific calculation methodology. The allowance for credit losses is the Company’s best estimate. Actual losses may differ from the June 30, 2020 allowance for credit loss as the CECL estimate is sensitive to economic forecasts and management judgment. There have been no changes to portfolio segments as described in the accounting policies within the Company's Annual Report on Form 10-K. Business combinations and accounting for loans purchased with credit deterioration: Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification ("ASC") 805, “Business Combinations” (“ASC 805”). Under the acquisition method, identifiable assets acquired and liabilities assumed and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date. Any excess of the purchase price over fair value of net assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including any other identifiable intangible assets, exceed the purchase price, a bargain purchase gain is recognized. Results of operations of acquired entities are included in the consolidated statements of income from the date of acquisition. Beginning January 1, 2020, loans acquired in business combinations with evidence of more-than-insignificant credit deterioration since origination are considered to be Purchased Credit Deteriorated ("PCD"). The Company developed multiple criteria to assess the presence of more–than–insignificant credit deterioration in acquired loans, mainly focused on changes in credit quality and payment status. While general criteria have been established, each acquisition will vary in its specific facts and circumstances and the Company will apply judgment around PCD identification for each individual acquisition based on their unique portfolio mix and risks identified. The Company adopted ASC 326 using the prospective transition approach for loans previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption and all PCI loans were transitioned to PCD loans upon adoption. Under PCD accounting,the amount of expected credit losses as of the acquisition date is added to the purchase price of the PCD loan. This establishes the amortized cost basis of the PCD loan. The difference between the unpaid principal balance of the PCD loan and the amortized cost basis of the PCD loan as of the acquisition date is the non-credit discount. Interest income for a PCD loan is recognized by accreting the amortized cost basis of the PCD loan to its contractual cash flows. The discount related to estimated credit losses on acquisition recorded as an allowance for credit losses will not be accreted into interest income. Only the noncredit-related discount will be accreted into interest income and subsequent adjustments to expected credit losses will flow through the provision for credit losses on the income statement. Off-balance sheet financial instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, unless considered derivatives. For loan commitments that are not accounted for as derivatives and when the obligation is not unconditionally cancelable by the Company, the Company applies the CECL methodology to estimate the expected credit loss on off-balance-sheet commitments. The estimate of expected credit losses for off-balance-sheet credit commitments is recognized as a liability. When the loan is funded, an allowance for expected credit losses is estimated for that loan using the CECL methodology, and the liability for off-balance-sheet commitments is reduced. When applying the CECL methodology to estimate the expected credit loss, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. Recently adopted accounting standards: Except as set forth below, the Company did not adopt any new accounting standards that were not disclosed in the Company's 2019 audited consolidated financial statements included on Form 10-K. In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 and its subsequent amendments issued by the FASB, which requires the measurement of all current expected credit losses for financial assets (including off-balance sheet credit exposures) held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Additionally, the update requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. The new methodology requires institutions to calculate all probable and estimable losses that are expected to be incurred through the financial asset's entire life through a provision for credit losses, including certain loans obtained as a result of any acquisition. For available-for-sale debt securities that have experienced a deterioration in credit, Topic 326 requires an allowance for credit losses to be recognized, instead of a direct write-down, which was previously required under the other-than-temporary impairment ("OTTI") model. Topic 326 eliminates the concept of “other-than-temporary” impairment and instead focuses on determining whether any impairment is a result of a credit loss or other factors. As a result, the standard says the Company may not use the length of time a debt security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist, as the Company was previously allowed under the OTTI model. ASU 2016-13 eliminates the existing guidance for PCI loans, but requires an allowance for purchased financial assets with more than insignificant deterioration since origination to be determined in a manner similar to that of other financial assets measured at amortized cost; however, the initial allowance will be added to the purchase price rather than recorded as provision expense referred herein as the PCD asset gross-up approach. The Company applied the new PCD asset gross-up approach at transition to all assets that were accounted for as PCI prior to adoption. Any change in the allowance for credit losses for these assets as a result of applying the new guidance is accounted for as an adjustment to the asset’s amortized cost basis and not as a cumulative-effect adjustment to beginning retained earnings. Additionally, ASU 2016-13 requires additional disclosures related to loans and debt securities. See Note 3, “Investment securities” and Note 4, “Loans and allowance for credit losses” for these disclosures. The Company formed a cross–functional working group to oversee the adoption of CECL at the effective date. The working group developed a project plan focused on understanding the new standard, researching issues, identifying data needs for modeling inputs, technology requirements, modeling considerations, and ensuring overarching governance was achieved for each objective and milestone. The key data driver for each model was identified, populated, and internally validated. The Company also completed data and model validation testing. The Company has performed model sensitivity analysis, developed a framework for qualitative adjustments, created supporting analytics, and executed the enhanced governance and approval process. Internal controls related to the CECL process were finalized prior to adoption. ASU 2016-13 was adopted effective January 1, 2020 using a modified retrospective approach with no adjustments to prior period comparative financial statements. Upon adoption, the Company recorded a cumulative effective adjustment to decrease retained earnings by $25,018, with corresponding adjustments to the allowance for credit losses on loans and unfunded commitments in addition to recording a deferred tax asset on its consolidated balance sheet. As of that date, the Company also recorded a cumulative effective adjustment to gross-up the amortized cost amount of its PCD loans by $558, with a corresponding adjustment to the allowance for credit losses on its consolidated balance sheet. A summary of the impact to the consolidated balance sheet as of the adoption date is presented in the table below: Balance before adoption of ASC 326 Cumulative effective adjustment to adopt ASC 326 Impact of the adjustment to adopt ASC 326 Balance at January 1, 2020 (post ASC 326 adoption) ASSETS Loans $ 4,409,642 $ 558 Increase $ 4,410,200 Allowance for credit losses (31,139) (31,446) Increase (62,585) Total impact to assets $ (30,888) Net decrease LIABILITIES AND EQUITY Allowance for credit losses on $ — $ 2,947 Increase $ 2,947 Net deferred tax liability 20,490 (8,817) Decrease 11,673 Retained earnings 293,524 (25,018) Decrease 268,506 Total impact to liabilities and equity $ (30,888) Net decrease In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company elected the five-year capital transition relief option. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two from the goodwill impairment test. Instead, an entity may perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Entities have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. ASU 2017-04 became effective for the Company on January 1, 2020. The adoption of this standard did not have any impact on the Company's consolidated financial statements or disclosures. In August 2018, the FASB issued "Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements." This update is part of the disclosure framework project and eliminates certain disclosure requirements for fair value measurements, requires entities to disclose new information, and modifies existing disclosure requirements. The update became effective on January 1, 2020 and did not have an impact on the Company's consolidated financial statements or disclosures. In March 2019, FASB issued ASU 2019-01, "Leases (Topic 842): Codification Improvements", which aligns the guidance for fair value of the underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU No. 2019-01 also requires lessors within the scope of Topic 942, "Financial Services—Depository and Lending", to present all “principal payments received under leases” within investing activities. The adoption of this standard on January 1, 2020 did not have a material impact on the Company's consolidated financial statements or disclosures. In April 2019, the FASB issued ASU No. 2019-04, " Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments". The amendments related to Topic 326 address accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, vintage disclosures, and contractual extensions and renewal options and became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. The improvements and clarifications related to Topic 815 address partial-term fair value hedges of interest-rate risk, amortization, and disclosure of fair value hedge basis adjustments and consideration of hedged contractually specified interest rates under the hypothetical method and became effective for the annual reporting period beginning January 1, 2020. The amendments related to Topic 825 contain various improvements to ASU 2016-01, including scope; held-to-maturity debt securities fair value disclosures; and remeasurement of equity securities at historical exchange rates and became effective as of January 1, 2020. The amendments in this update did not have a material impact on the financial statements. Newly issued not yet effective accounting standards: In June 2018, FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Consistent with the accounting for employee share-based payment awards, nonemployee share-based payment awards will be measured at grant-date fair value of the equity instruments obligated to be issued when the good has been delivered or the service rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. This ASU is effective for all entities for fiscal years beginnings after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company does not expect adoption of this standard to have a significant impact on the consolidated financial statements or disclosures. |
Mergers and acquisitions
Mergers and acquisitions | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Mergers and acquisitions | Mergers and acquisitions: Franklin Financial Network, Inc. On January 21, 2020, the Company entered into a definitive merger agreement with Franklin Financial Network, Inc ("Franklin"), pursuant to which Franklin will be merged with and into the Company. Franklin has 15 branches and approximately $3.78 billion in total assets, $2.79 billion in loans, and $3.14 billion in deposits as of June 30, 2020. According to the terms of the merger agreement, Franklin shareholders will receive 0.9650 shares of FB Financial Corporation's common stock and $2.00 in cash for each share of Franklin stock. Based on the Company's closing price on the New York Stock Exchange of $24.77 per share as of June 30, 2020, the implied transaction value is approximately $394,000. The merger, as approved by the Company's and Franklin's shareholders, has received regulatory approvals and the Company intends to close effective August 15, 2020. FNB Financial Corp. merger Effective February 14, 2020, the Company completed its previously announced acquisition of FNB Financial Corp. and its wholly owned subsidiary, Farmers National Bank of Scottsville (collectively, "Farmers National"). Following the acquisition, Farmers National was merged into the Company with FB Financial Corporation continuing as the surviving entity. The transaction added five branches and expanded the Company's footprint into Kentucky. Under the terms of the agreement, the Company acquired total assets of $258,218, loans of $182,171 and assumed total deposits of $209,535. Farmers National shareholders received 954,797 shares of the company's common stock as consideration in connection with the merger, in addition to $15,001 in cash consideration. Based on the closing price of the Company's common stock on the New York Stock Exchange of $36.70 on February 14, 2020, the merger consideration represented approximately $50,042 in aggregate consideration. The acquisition of Farmers National was accounted for in accordance with FASB ASC Topic 805 "Business Combinations." Accordingly, the assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the acquisition date. The Company is finalizing the fair value of acquired assets and liabilities assumed and as such, purchase accounting is not yet complete. Goodwill of $6,390 recorded in connection with the transaction resulted from the ongoing business contribution of Farmers National and anticipated synergies arising from the combination of certain operational areas of the Company. The goodwill is not deductible for income tax purposes. Goodwill is included in the Banking segment as substantially all of the operations resulting from the acquisition of Farmers National are in alignment with the Company's core banking business. The Company incurred $1,503 and $2,097 in merger expenses during the three and six months ended June 30, 2020 in connection with this transaction. These expenses are primarily comprised of professional services, employee-related costs and integration costs. The following tables summarize the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and an allocation of the consideration to net assets acquired: As of February 14, 2020 As Recorded by FB Financial Corporation ASSETS Cash and cash equivalents $ 10,774 Securities 50,594 Loans, net of fair value adjustments 182,171 Allowance for credit losses on PCD loans (669) Premises and equipment 8,049 Core deposit intangible 2,490 Other assets 4,809 Total assets $ 258,218 LIABILITIES Deposits Noninterest-bearing $ 63,531 Interest-bearing checking 26,451 Money market and savings 37,002 Customer time deposits 82,551 Total deposits 209,535 Borrowings 3,192 Accrued expenses and other liabilities 1,839 Total liabilities 214,566 Total net assets acquired $ 43,652 Consideration: Net shares issued 954,797 Purchase price per share on February 14, 2020 $ 36.70 Value of stock consideration $ 35,041 Cash consideration paid 15,001 Total purchase price $ 50,042 FV of net assets acquired 43,652 Goodwill resulting from merger $ 6,390 Under CECL, the Company is required to determine whether purchased loans held for investment have experienced more-than-insignificant deterioration in credit quality since origination. Loans that have experienced this level of deterioration in credit quality are subject to special accounting at initial recognition and measurement. The Company initially measures the amortized cost of a PCD loan by adding the acquisition date estimate of expected credit losses to the loan's purchase price (i.e. the "gross up" approach). There is no provision for credit loss recognized upon acquisition of a PCD loan because the initial allowance is established through the gross-up. The Company determined that 10.1% of the FNB loan portfolio had more-than-insignificant deterioration in credit quality since origination. These were primarily delinquent loans as of February 14, 2020, or loans that FNB has classified as nonaccrual or TDR prior to the Company's acquisition. As of February 14, 2020 Purchased credit-deteriorated loans Principal balance $ 18,964 Allowance for credit losses at acquisition (669) Net premium attributable to other factors 63 Loans purchased credit-deteriorated fair value $ 18,358 Loans recognized through the acquisition of FNB that have not experienced more-than-insignificant credit deterioration since origination are initially recognized at the purchase price. Expected credit losses are measured under CECL through the provision for credit losses. The Company recorded a provision for credit losses of $2,885 in the income statement at acquisition related to estimated credit losses on non-PCD loans. Farmers National's results of operations have been included in the Company's consolidated financial statements prospectively beginning on the date of acquisition. The acquisition has been fully integrated with the Company's existing operations. Accordingly, post-acquisition net interest income, total revenues, and net income are not discernible.The following unaudited pro forma condensed consolidated financial information presents the results of operations for the three months ended June 30, 2019, and the six months ended June 30, 2020 and 2019, respectively, as though the merger had been completed as of January 1, 2019. The unaudited estimated pro forma information combines the historical results of Farmers National with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the periods presented. Merger expenses are reflected in the periods they were incurred. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2019 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 Net interest income $ 59,543 $ 112,804 $ 115,128 Total revenues 92,919 237,258 177,938 Net income 19,097 24,045 38,696 Atlantic Capital Bank, N.A. Branches On April 5, 2019, the Bank completed its branch acquisition to purchase 11 Tennessee and three Georgia branch locations (the "Branches") from Atlantic Capital Bank, N.A., a national banking association and a wholly owned subsidiary of Atlantic Capital Bancshares, Inc., a Georgia corporation (collectively, "Atlantic Capital") in a transaction valued at $36,790, further increasing market share in existing markets and expanding the Company's footprint into new locations. The branch acquisition added $588,877 in customer deposits at a premium of 6.25% and $374,966 in loans at 99.32% of principal outstanding. All of the operations of the Branches are included in the Banking segment. Atlantic Capital's results of operations have been included in the Company's consolidated financial statements prospectively beginning on the date of acquisition. The acquisition has been fully integrated with the Company's existing operations. Accordingly, post-acquisition net interest income, total revenues, and net income are not discernible. The following unaudited pro forma condensed consolidated financial information presents the results of operations for the three and six months ended June 30, 2019 as though the merger had been completed as of January 1, 2018. The unaudited estimated pro forma information combines the historical results of Atlantic Capital with the Company’s historical consolidated results and includes certain adjustments reflecting the estimated impact of certain fair value adjustments for the periods presented. Merger expenses are reflected in the periods they were incurred. The pro forma information is not indicative of what would have occurred had the acquisition taken place on January 1, 2018 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Net interest income $ 57,023 $ 113,610 Total revenues $ 90,002 $ 176,413 Net income $ 18,688 $ 37,191 |
Investment securities
Investment securities | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment securities | Investment securities: The following table summarizes the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income at June 30, 2020 and December 31, 2019: June 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 3,003 $ 21 $ — $ — $ 3,024 Mortgage-backed securities - residential 439,843 14,770 (7) — 454,606 Municipals, tax exempt 251,424 14,875 (247) — 266,052 Treasury securities 22,485 286 — — 22,771 Corporate securities 1,000 — (15) — 985 Total $ 717,755 $ 29,952 $ (269) $ — $ 747,438 December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities Mortgage-backed securities - residential $ 487,101 $ 5,236 $ (1,661) $ 490,676 Municipals, tax exempt 181,178 8,287 (230) 189,235 Treasury securities 7,426 22 — 7,448 Corporate securities 1,000 22 — 1,022 Total $ 676,705 $ 13,567 $ (1,891) $ 688,381 The components of amortized cost for debt securities on the consolidated balance sheets excludes accrued interest receivable since the Company elected to present accrued interest receivable separately on the consolidated balance sheets. As of June 30, 2020 and December 31, 2019, total accrued interest receivable on debt securities was $3,184 and $2,843, respectively. As of June 30, 2020 and December 31, 2019, the Company had $4,329 and $3,295 in marketable equity securities recorded at fair value, respectively. Securities pledged at June 30, 2020 and December 31, 2019 had carrying amounts of $475,645 and $373,674, respectively, and were pledged to secure a Federal Reserve Bank line of credit, public deposits and repurchase agreements. There were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of shareholders' equity during any period presented. At June 30, 2020 and December 31, 2019, there were $5,431 and $0, respectively, in trade date payables that related to purchases settled after period end. The amortized cost and fair value of debt securities by contractual maturity at June 30, 2020 and December 31, 2019 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. June 30, December 31, 2020 2019 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 17,374 $ 17,473 $ 1,148 $ 1,152 Due in one to five years 33,022 33,515 11,553 11,676 Due in five to ten years 30,203 31,373 18,287 18,887 Due in over ten years 197,313 210,471 158,616 165,990 277,912 292,832 189,604 197,705 Mortgage-backed securities - residential 439,843 454,606 487,101 490,676 Total debt securities $ 717,755 $ 747,438 $ 676,705 $ 688,381 Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Proceeds from sales $ — $ — $ — $ 1,758 Proceeds from maturities, prepayments and calls 44,703 29,353 72,360 50,167 Gross realized gains — 5 — 6 Gross realized losses — — — 7 Additionally, net (losses) gains on the change in fair value of equity securities of $(28) and $35 were recognized in the three and six months ended June 30, 2020, respectively and $47 and $96 were recognized in the three and six months ended June 30, 2019, respectively. The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 2020 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss Mortgage-backed securities - residential $ 14,746 $ (7) $ — $ — $ 14,746 $ (7) Municipals, tax exempt 2,784 (247) — — 2,784 (247) Corporate securities 985 (15) — — 985 (15) Total $ 18,515 $ (269) $ — $ — $ 18,515 $ (269) December 31, 2019 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss Mortgage-backed securities - residential $ 47,641 $ (164) $ 175,730 $ (1,497) $ 223,371 $ (1,661) Municipals, tax exempt 15,433 (230) — — 15,433 (230) Total $ 63,074 $ (394) $ 175,730 $ (1,497) $ 238,804 $ (1,891) As of June 30, 2020 and December 31, 2019, the Company’s securities portfolio consisted of 445 and 365 securities, 8 and 58 of which were in an unrealized loss position, respectively. As of June 30, 2020, Company evaluated available-for-sale debt securities with unrealized losses for expected credit loss and recorded no allowance for credit loss as the majority of the investment portfolio was either government guaranteed or an issuance of a government sponsored entity, was highly rated by major credit rating agencies and have a long history of zero losses. As such, no provision for credit losses was recorded during the three and six months ended June 30, 2020. |
Loans and Allowance for credit
Loans and Allowance for credit Losses | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans and allowance for credit losses | Loans and allowance for credit losses: Loans outstanding at June 30, 2020 and December 31, 2019, by class of financing receivable are as follows: June 30, December 31, 2020 2019 Commercial and industrial (1) $ 1,289,646 $ 1,034,036 Construction 553,619 551,101 Residential real estate: 1-to-4 family mortgage 741,936 710,454 Residential line of credit 236,974 221,530 Multi-family mortgage 115,149 69,429 Commercial real estate: Owner occupied 683,245 630,270 Non-owner occupied 923,192 920,744 Consumer and other 283,262 272,078 Gross loans 4,827,023 4,409,642 Less: Allowance for credit losses (113,129) (31,139) Net loans $ 4,713,894 $ 4,378,503 (1) Includes $314,678 of loans originated as part of the PPP at June 30, 2020, established by the CARES Act, in response to the COVID-19 pandemic. The PPP is administered by the SBA; loans originated as part of the PPP may be forgiven by the SBA under a set of defined rules. An allowance for credit losses of $51 at June 30, 2020, has been allocated for these loans. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans. As of June 30, 2020 and December 31, 2019, $501,728 and $412,966, respectively, of qualifying residential mortgage loans (including loans held for sale) and $567,515 and $545,540, respectively, of qualifying commercial mortgage loans were pledged to the Federal Home Loan Bank of Cincinnati securing advances against the Bank’s line of credit. Additionally, as of June 30, 2020 and December 31, 2019, $1,492,666 and $1,407,662, respectively, of qualifying loans were pledged to the Federal Reserve Bank under the Borrower-in-Custody program. The components of amortized cost for loans on the consolidated balance sheet excludes accrued interest receivable as the Company elected to present accrued interest receivable separately on the balance sheet. As of June 30, 2020, total accrued interest receivable on loans was $23,009. Allowance for Credit Losses As of January 1, 2020, the Company’s policy for the allowance changed with the adoption of CECL. As permitted, the new guidance was implemented using a modified retrospective approach with the impact of the initial adoption being recorded through retained earnings at January 1, 2020, with no restatement of prior periods. Before January 1, 2020, the Company calculated the allowance on an incurred loss approach. As of January 1, 2020, the Company calculated an expected credit loss using a lifetime loss rate methodology. As a result of the difference in methodology between periods, disclosures presented below may not be comparative in nature. The Company utilizes probability-weighted forecasts, which consider multiple macroeconomic variables from a third-party vendor that are applicable to the type of loan. The weighting of the economic forecast scenarios, macroeconomic variables, and the reasonable and supportable forecast period at the macroeconomic variable-level were reviewed and approved by the Company's forecast governance committee based on expectations of future economic conditions. Each of the Company's loss rate models incorporate forward-looking macroeconomic projections throughout the reasonable and supportable forecast period and the subsequent historical reversion at the macroeconomic variable input level. In order to estimate the life of a loan, the contractual term of the loan is adjusted for estimated prepayments based on market information and the Company’s prepayment history. The Company's loss rate models estimate the lifetime loss rate for pools of loans by combining the calculated loss rate based on each variable within the model (including the macroeconomic variables). The lifetime loss rate for the pool is then multiplied by the loan balances to determine the expected credit losses on the pool. The Company considers the need to qualitatively adjust its modeled quantitative expected credit loss estimate for information not already captured in the model loss estimation process. These qualitative factor adjustments may increase or decrease the Company’s estimate of expected credit losses. The Company reviews the qualitative adjustments so as to validate that information that has already been considered and included in the modeled quantitative loss estimation process is not also included in the qualitative adjustment. The Company considers the qualitative factors that are relevant to the institution as of the reporting date, which may include, but are not limited to: levels of and trends in delinquencies and performance of loans; levels of and trends in write-offs and recoveries collected; trends in volume and terms of loans; effects of any changes in reasonable and supportable economic forecasts; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and expertise; available relevant information sources that contradict the Company’s own forecast; effects of changes in prepayment expectations or other factors affecting assessments of loan contractual terms; industry conditions; and effects of changes in credit concentrations. The quantitative models require loan data and macroeconomic variables based on the inherent credit risks in each portfolio to more accurately measure the credit risks associated with each. Each of the quantitative models pools loans with similar risk characteristics and collectively assesses the lifetime loss rate for each pool to estimate its expected credit loss. When a loan no longer shares similar risk characteristics with other loans in any given pool, the loan is individually assessed. The Company has determined the following circumstances in which a loan may require an individual evaluation: collateral dependent loans; loans for which foreclosure is probable; TDRs and reasonably expected TDRs. A loan is deemed collateral dependent when 1) the borrower is experiencing financial difficulty and 2) the repayment is expected to be primarily through sale or operation of the collateral. The allowance for credit losses for collateral dependent loans as well as loans where foreclosure is probable is calculated as the amount for which the loan’s amortized cost basis exceeds fair value. Fair value is determined based on appraisals performed by qualified appraisers and reviewed by qualified personnel. In cases where repayment is to be provided substantially through the sale of collateral, the Company reduces the fair value by the estimated costs to sell. Loans experiencing financial difficulty for which a concession has not yet been provided may be identified as reasonably expected TDRs. Reasonably expected TDRs use the same methodology as TDRs. In cases where the expected credit loss can only be captured through a discounted cash flow analysis (such as an interest rate modification for a TDR loan), the allowance is measured by the amount which the loan’s amortized cost exceeds the discounted cash flow analysis. The allowance for credit losses on a TDR or a reasonably expected TDR is calculated individually using a discounted cash flow methodology, unless the loan is deemed to be collateral dependent or foreclosure is probable. The Company’s changes in reasonable and supportable forecasts of macroeconomic variables, primarily due to the impact of the COVID-19 pandemic, resulted in credit deterioration requiring the Company to recognize significant increases in the provision for credit losses during the three and six months ended June 30, 2020. Specifically, the Company performed additional qualitative evaluations on certain classes of financing receivables, including construction, commercial and industrial and commercial real estate, in line with the Company's established qualitative framework, weighting the impact of the current economic outlook, status of federal government stimulus programs, and geographical and demographic considerations, in order to identify potential geographies and industries seeing credit improvement or deterioration specific to the COVID-19 pandemic. Additionally, the loans acquired from Farmers National increased the allowance for credit losses by $4,494 as of the February 14, 2020 acquisition date. See Note 2, "Mergers and acquisitions" for additional details related to PCD loans acquired on February 14, 2020. The following provides the changes in the allowance for credit losses by class of financing receivable for the three and six months ended June 30, 2020 and 2019: 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 June 30, 2020 Beginning balance - $ 10,881 $ 22,842 $ 13,006 $ 6,213 $ 2,328 $ 9,047 $ 18,005 $ 6,819 $ 89,141 Provision for credit losses (2,663) 12,624 (446) 595 2,171 (1,630) 12,984 404 24,039 Recoveries of loans 807 151 26 24 — 3 — 103 1,114 Loans charged off (147) (18) (123) (21) — — (545) (311) (1,165) Ending balance - $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 Six Months Ended June 30, 2020 Beginning balance - $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 Impact of adopting ASC 5,300 1,533 7,920 3,461 340 1,879 6,822 3,633 30,888 Impact of adopting ASC 82 150 421 (3) — 162 184 (438) 558 Provision for credit losses (834) 23,578 1,218 2,580 3,615 1,408 18,919 1,519 52,003 Recoveries of loans 895 151 50 39 — 17 — 296 1,448 Loans charged off (1,381) (18) (365) (21) — (209) (545) (1,037) (3,576) Initial allowance on loans 11 11 107 3 — 54 443 40 669 Ending balance - $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 Commercial Construction 1-to-4 Residential Multi- Commercial Commercial Consumer Total Three Months Ended June 30, 2019 Beginning balance - $ 5,514 $ 9,758 $ 3,295 $ 731 $ 539 $ 3,098 $ 4,583 $ 2,296 $ 29,814 Provision for loan losses (550) (109) (30) 106 78 409 (105) 1,082 881 Recoveries of loans 38 6 24 21 — 5 — 119 213 Loans charged off (79) — (1) (103) — — — (587) (770) Ending balance - $ 4,923 $ 9,655 $ 3,288 $ 755 $ 617 $ 3,512 $ 4,478 $ 2,910 $ 30,138 Six Months Ended June 30, 2019 Beginning balance - $ 5,348 $ 9,729 $ 3,428 $ 811 $ 566 $ 3,132 $ 4,149 $ 1,769 $ 28,932 Provision for loan losses (217) (81) (95) 33 51 288 329 1,964 2,272 Recoveries of loans 50 7 37 46 — 92 — 343 575 Loans charged off (258) — (82) (135) — — — (1,166) (1,641) Ending balance - $ 4,923 $ 9,655 $ 3,288 $ 755 $ 617 $ 3,512 $ 4,478 $ 2,910 $ 30,138 The following disclosures are presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods presented. The following table provides the amount of the allowance for credit losses by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019: December 31, 2019 Commercial Construction 1-to-4 Residential Multi- Commercial Commercial Consumer Total Amount of allowance Individually evaluated for $ 241 $ — $ 8 $ 9 $ — $ 238 $ 399 $ — $ 895 Collectively evaluated for 4,457 10,192 2,940 743 544 3,853 3,909 1,933 28,571 Acquired with deteriorated 107 2 164 — — 18 313 1,069 1,673 Ending balance - $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 The following table provides the amount of loans by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019: December 31, 2019 Commercial Construction 1-to-4 Residential Multi- Commercial Commercial Consumer Total Loans, net of unearned Individually evaluated $ 9,026 $ 2,061 $ 1,347 $ 579 $ — $ 2,993 $ 7,755 $ 49 $ 23,810 Collectively evaluated 1,023,326 546,156 689,769 220,878 69,429 621,386 902,792 254,944 4,328,680 Acquired with deteriorated 1,684 2,884 19,338 73 — 5,891 10,197 17,085 57,152 Ending balance - $ 1,034,036 $ 551,101 $ 710,454 $ 221,530 $ 69,429 $ 630,270 $ 920,744 $ 272,078 $ 4,409,642 Credit Quality 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 that share similar risk characteristics collectively. Loans that do not share similar risk characteristics are evaluated individually. The Company uses the following definitions for risk ratings: Pass. Loans rated Pass include those that are adequately performing and collateralized and which management believes do not have conditions that have occurred or may occur which would result in the loan being downgraded into an inferior category. Watch. Loans rated as Watch include those that management believes have conditions that have occurred, or may occur, which could result in the loan being downgraded to an inferior 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. Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Risk ratings are updated on an ongoing basis and are subject to change by continuous loan monitoring processes. The following table presents the credit quality of our loan portfolio by year of origination as of June 30, 2020. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the table below. June 30, 2020 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 338,964 $ 168,783 $ 69,250 $ 41,722 $ 32,820 $ 31,449 $ 481,897 $ 1,164,885 Watch 2,791 10,761 33,603 3,928 5,772 4,414 39,740 101,009 Substandard 250 2,535 4,584 3,251 1,414 3,696 7,806 23,536 Doubtful 16 — — — — — 200 216 Total 342,021 182,079 107,437 48,901 40,006 39,559 529,643 1,289,646 Construction Pass 62,335 170,746 74,183 32,656 32,790 71,149 90,620 534,479 Watch 58 10 229 10,126 740 2,807 — 13,970 Substandard — 1,170 409 11 — 3,205 208 5,003 Doubtful — 167 — — — — — 167 Total 62,393 172,093 74,821 42,793 33,530 77,161 90,828 553,619 Residential real estate: 1-to-4 family mortgage Pass 99,613 172,190 137,308 89,665 62,505 142,668 — 703,949 Watch 913 603 608 2,139 3,537 12,938 — 20,738 Substandard 353 1,222 1,891 3,674 1,640 7,664 — 16,444 Doubtful — — 56 — 325 424 — 805 Total 100,879 174,015 139,863 95,478 68,007 163,694 — 741,936 Residential line of credit Pass 56 — — — 284 3,297 230,334 233,971 Watch — — — — — — 788 788 Substandard — — — — — 77 1,692 1,769 Doubtful — — — — — — 446 446 Total 56 — — — 284 3,374 233,260 236,974 Multi-family mortgage Pass 20,796 14,346 6,758 42,196 2,965 28,030 — 115,091 Watch — — — — — 58 — 58 Substandard — — — — — — — — Doubtful — — — — — — — — Total 20,796 14,346 6,758 42,196 2,965 28,088 — 115,149 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: Owner occupied Pass 49,663 129,755 84,301 69,678 62,755 161,851 48,023 606,026 Watch 997 7,758 1,530 24,105 5,634 14,847 7,716 62,587 Substandard — 1,804 314 3,959 58 6,846 1,651 14,632 Doubtful — — — — — — — — Total 50,660 139,317 86,145 97,742 68,447 183,544 57,390 683,245 Non-owner occupied Pass 34,657 139,867 202,792 132,792 164,798 175,966 24,834 875,706 Watch 1,496 2,193 10,707 4,973 3,769 5,090 94 28,322 Substandard — — 273 — 383 18,425 83 19,164 Doubtful — — — — — — — — Total 36,153 142,060 213,772 137,765 168,950 199,481 25,011 923,192 Consumer and other loans Pass 43,369 60,546 45,556 29,342 43,123 31,011 8,110 261,057 Watch 74 487 1,291 1,515 3,450 8,567 587 15,971 Substandard 18 95 596 691 733 2,066 413 4,612 Doubtful — 253 344 524 56 445 — 1,622 Total 43,461 61,381 47,787 32,072 47,362 42,089 9,110 283,262 Total Loans Pass 649,453 856,233 620,148 438,051 402,040 645,421 883,818 4,495,164 Watch 6,329 21,812 47,968 46,786 22,902 48,721 48,925 243,443 Substandard 621 6,826 8,067 11,586 4,228 41,979 11,853 85,160 Doubtful 16 420 400 524 381 869 646 3,256 Total $ 656,419 $ 885,291 $ 676,583 $ 496,947 $ 429,551 $ 736,990 $ 945,242 $ 4,827,023 The following disclosures are presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods presented. The following table shows credit quality indicators by class of financing receivable at December 31, 2019. December 31, 2019 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 946,247 $ 66,910 $ 19,195 $ 1,032,352 Construction 541,201 4,790 2,226 548,217 Residential real estate: 1-to-4 family mortgage 666,177 11,380 13,559 691,116 Residential line of credit 218,086 1,343 2,028 221,457 Multi-family mortgage 69,366 63 — 69,429 Commercial real estate: Owner occupied 576,737 30,379 17,263 624,379 Non-owner occupied 876,670 24,342 9,535 910,547 Consumer and other 248,632 3,304 3,057 254,993 Total loans, excluding purchased credit impaired loans $ 4,143,116 $ 142,511 $ 66,863 $ 4,352,490 Purchased credit impaired loans Commercial and industrial $ — $ 1,224 $ 460 $ 1,684 Construction — 2,681 203 2,884 Residential real estate: 1-to-4 family mortgage — 15,091 4,247 19,338 Residential line of credit — — 73 73 Multi-family mortgage — — — — Commercial real estate: Owner occupied — 4,535 1,356 5,891 Non-owner occupied — 6,617 3,580 10,197 Consumer and other — 13,521 3,564 17,085 Total purchased credit impaired loans — 43,669 13,483 57,152 Total loans $ 4,143,116 $ 186,180 $ 80,346 $ 4,409,642 Nonaccrual and Past Due Loans Nonperforming loans include loans that are no longer accruing interest (nonaccrual loans) and loans past due ninety or more days and still accruing interest. The following tables provide information on nonaccrual and past due loans as of June 30, 2020 and December 31, 2019. For December 31, 2019, purchased credit impaired ("PCI") loans are not included in the nonperforming disclosures as these loans are considered to be performing, even though they may be contractually past due. This is because any non-payment of contractual principal or interest was considered in the periodic re-estimation of expected cash flows and was included in the 2019 loan loss provision or future period yield adjustments. Under PCD accounting, management considers changes in the credit quality of the borrower as part of its regular estimation of expected credit losses and does not make the same future yield adjustments as under the PCI accounting. Consequently, PCD loans that are contractually past due or on nonaccrual status, including those formerly accounted for as PCI loans, are included in the June 30, 2020 nonperforming disclosures. The following table represents an analysis of the aging by class of financing receivable as of June 30, 2020: June 30, 2020 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 1,057 $ 111 $ 2,308 $ 1,286,170 $ 1,289,646 Construction 769 465 1,482 550,903 553,619 Residential real estate: 1-to-4 family mortgage 5,658 4,712 5,392 726,174 741,936 Residential line of credit 398 277 704 235,595 236,974 Multi-family mortgage 58 — — 115,091 115,149 Commercial real estate: Owner occupied 43 — 2,644 680,558 683,245 Non-owner occupied 169 226 13,113 909,684 923,192 Consumer and other 3,172 621 2,770 276,699 283,262 Total $ 11,324 $ 6,412 $ 28,413 $ 4,780,874 $ 4,827,023 The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance and interest income, by class of financing receivable as of and for the three and six months ended June 30, 2020: June 30, 2020 u End of period amortized cost Beginning of Non-accrual Non-accrual Related Commercial and industrial $ 5,586 $ 1,098 $ 1,210 $ 350 Construction 1,254 1,218 264 47 Residential real estate: 1-to-4 family mortgage 4,585 1,789 3,603 68 Residential line of credit 489 151 553 12 Commercial real estate: Owner occupied 2,285 1,723 921 78 Non-owner occupied 9,460 2,762 10,351 1,625 Consumer and other 1,623 — 2,770 134 Total $ 25,282 $ 8,741 $ 19,672 $ 2,314 Interest Income June 30, 2020 Three Months Ended Six Months Ended Commercial and industrial $ 17 $ 169 Construction 6 33 Residential real estate: 1-to-4 family mortgage 6 13 Residential line of credit — 1 Commercial real estate: Owner occupied 43 64 Non-owner occupied 109 128 Consumer and other 24 24 Total $ 205 $ 432 The following disclosures are presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods presented. The following table provides the period-end amounts of loans that are past due, loans not accruing interest and loans current on payments accruing interest by category at December 31, 2019: December 31, 2019 30-89 90 days or more Non-accrual Purchased Loans current Total Commercial and industrial $ 1,918 $ 291 $ 5,587 $ 1,684 $ 1,024,556 $ 1,034,036 Construction 1,021 42 1,087 2,884 546,067 551,101 Residential real estate: 1-to-4 family mortgage 10,738 3,965 3,332 19,338 673,081 710,454 Residential line of credit 658 412 416 73 219,971 221,530 Multi-family mortgage 63 — — — 69,366 69,429 Commercial real estate: Owner occupied 1,375 — 1,793 5,891 621,211 630,270 Non-owner occupied 327 — 7,880 10,197 902,340 920,744 Consumer and other 2,377 833 967 17,085 250,816 272,078 Total $ 18,477 $ 5,543 $ 21,062 $ 57,152 $ 4,307,408 $ 4,409,642 Impaired Loans The following disclosures are presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods presented. Impaired loans recognized in conformity with ASC 310 at December 31, 2019 segregated by class, were as follows: December 31, 2019 Recorded Unpaid Related With a related allowance recorded: Commercial and industrial $ 6,080 $ 8,350 $ 241 Residential real estate: 1-to-4 family mortgage 264 324 8 Residential line of credit 320 320 9 Commercial real estate: Owner occupied 756 1,140 238 Non-owner occupied 6,706 6,747 399 Consumer and other — — — Total $ 14,126 $ 16,881 $ 895 With no related allowance recorded: Commercial and industrial $ 2,946 $ 3,074 $ — Construction 2,061 2,499 — Residential real estate: 1-to-4 family mortgage 1,083 1,449 — Residential line of credit 259 280 — Commercial real estate: Owner occupied 2,237 2,627 — Non-owner occupied 1,049 1,781 — Consumer and other 49 49 — Total $ 9,684 $ 11,759 $ — Total impaired loans $ 23,810 $ 28,640 $ 895 Average recorded investment and interest income on a cash basis recognized during the three and six months ended June 30, 2019 on impaired loans, segregated by class, were as follows: Three Months Ended Six Months Ended June 30, 2019 Average recorded Interest income Average recorded Interest income With a related allowance recorded: Commercial and industrial $ 3,161 $ 67 $ 1,877 $ 105 Residential real estate: 1-to-4 family mortgage 336 9 206 11 Commercial real estate: Owner occupied 187 4 373 6 Non-owner occupied 5,570 34 5,588 34 Consumer and other 250 19 250 19 Total $ 9,504 $ 133 $ 8,294 $ 175 With no related allowance recorded: Commercial and industrial $ 819 $ 11 $ 1,004 $ 25 Construction 1,218 4 1,219 52 Residential real estate: 1-to-4 family mortgage 528 18 715 26 Residential line of credit 607 — 427 2 Commercial real estate: Owner occupied 1,830 34 1,922 62 Non-owner occupied 1,049 — 1,049 — Consumer and other 70 1 71 3 Total $ 6,121 $ 68 $ 6,407 $ 170 Total impaired loans $ 15,625 $ 201 $ 14,701 $ 345 Purchased Credit Impaired Loans The following disclosures are presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods presented. As of December 31, 2019, the carrying value of PCI loans accounted for under ASC 310-30 "Loans and Debt Securities Acquired with Deteriorated Credit Quality" was $57,152. The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated. Three Months Ended Six Months Ended 2019 2019 Balance at the beginning of period $ (14,814) $ (16,587) Additions through business combinations (1,167) (1,167) Principal reductions and other reclassifications from nonaccretable difference 30 250 Accretion 1,705 3,888 Changes in expected cash flows (616) (1,246) Balance at end of period $ (14,862) $ (14,862) Included in the ending balance of the accretable yield on PCI loans at December 31, 2019, was a purchase accounting liquidity discount of $292. There was also a purchase accounting nonaccretable credit discount of $3,537 related to the PCI loan portfolio at December 31, 2019, and an accretable credit and liquidity discount on non-PCI loans of $8,964 and $3,924, respectively, as of December 31, 2019. Interest revenue, through accretion of the difference between the recorded investment of the loans and the expected cash flows, was recognized on all PCI loans. Accretion of interest income amounting to $1,705 and $3,888 was recognized on PCI loans during the three and six months ended June 30, 2019, respectively. This included both the contractual interest income recognized and the purchase accounting contribution through accretion of the liquidity discount for changes in estimated cash flows. The total purchase accounting contribution through accretion excluding contractual interest collected for all purchased loans was $2,097 and $3,928 for the three and six months ended June 30, 2019, respectively. Restructured Loans As of June 30, 2020 and December 31, 2019, the Company has a recorded investment in TDRs of $13,277 and $12,206, respectively. The modifications included extensions of the maturity date and/or a stated rate of interest to one lower than the current market rate to borrowers experiencing financial difficulty. The Company has calculated $606 and $360 of specific reserves for those loans at June 30, 2020 and December 31, 2019, respectively. There were no commitments to lend any additional amounts to these customers for either period end. Of these loans, $5,821 and $5,201 were classified as non-accrual loans as of June 30, 2020 and December 31, 2019, respectively. The following tables present the financial effect of TDRs recorded during the periods indicated. There were no new TDRs added during the three months ended June 30, 2019. Three Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-to-4 family mortgage 1 13 13 — Total 3 $ 1,954 $ 1,954 $ — Six Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-to-4 family mortgage 2 77 77 — Total 4 $ 2,018 $ 2,018 $ — Six Months Ended June 30, 2019 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 3,188 $ 3,188 $ — Total 2 $ 3,188 $ 3,188 $ — There were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three or six months ended June 30, 2020 and 2019. A loan is considered to be in payment default once it is 90 days contractually past due under the modified terms. 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. The terms of certain other loans were modified during the three and six months ended June 30, 2020 and 2019 that did not meet the definition of a TDR. The modification of these loans usually involve either a modification of the terms of a loan to borrowers who are not experiencing financial difficulties or an insignificant delay in payments. Collateral Dependent Loans For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following table presents the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. June 30, 2020 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ — $ 3,062 $ 543 Construction 1,232 — — Residential real estate: 1-to-4 family mortgage 100 — — Residential line of credit 471 — 9 Multi-family mortgage — — — Commercial real estate: Owner occupied 1,461 — 35 Non-owner occupied 8,500 — 1,563 Consumer and other — 336 35 Total $ 11,764 $ 3,398 $ 2,185 Deferrals Program as part of COVID-19 Relief On March 22, 2020, an Interagency Statement was issued by banking regulators encouraging financial institutions to work prudently with borrowers who are or may be unable to meet their contractual payment obligations due to the effects of COVID-19. Additionally, Section 4013 of the CARES Act further provides that a qualified loan modification is exempt by law from classification as a TDR as defined by GAAP, from the period beginning March 1, 2020 until the earlier of December 31, 2020 or the date that is 60 days after the date on which the national emergency concerning the COVID-19 outbreak terminates.The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for Company executed deferrals in connection with COVID-19 relief. These deferrals typically ranged from sixty June 30, 2020 % of Loans Commercial and industrial $ 164,804 12.8 % Construction 82,514 14.9 % Residential real estate: 1-to-4 family mortgage 83,590 11.3 % Residential line of credit 14,200 6.0 % Multi-family mortgage 45,321 39.4 % Commercial real estate: Owner occupied 190,044 27.8 % Non-owner occupied 321,707 34.8 % Consumer and other 16,078 5.7 % Total $ 918,258 19.0 % |
Other real estate owned
Other real estate owned | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Other real estate owned | 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 the other real estate owned for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Balance at beginning of period $ 17,072 $ 12,828 $ 18,939 $ 12,643 Transfers from loans 641 924 1,006 2,030 Transfers from (to) premises and equipment — 2,640 (841) 2,640 Proceeds from sale of other real estate owned (2,708) (1,148) (4,150) (1,864) Gain on sale of other real estate owned 170 329 345 322 Loans provided for sales of other real estate owned — — — (166) Write-downs and partial liquidations (84) (52) (208) (84) Balance at end of period $ 15,091 $ 15,521 $ 15,091 $ 15,521 Foreclosed residential real estate properties totaled $3,045 and $4,295 as of June 30, 2020 and December 31, 2019, respectively. The recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $239 and $82 at June 30, 2020 and December 31, 2019, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets: The following table summarizes changes in goodwill during the six months ended June 30, 2020 and 2019. Goodwill Balance at December 31, 2018 $ 137,190 Addition from acquisition of Atlantic Capital branches 31,396 Relief of goodwill due to sale of TPO mortgage delivery channel (100) Balance at June 30, 2019 $ 168,486 Balance at December 31, 2019 $ 169,051 Addition from acquisition of Farmers National (see Note 2) 6,390 Balance at June 30, 2020 $ 175,441 Goodwill is tested annually, or more often if circumstances warrant, for impairment. Impairment exists when a reporting unit's carrying value exceeds its fair value. The Company tested goodwill for impairment as of December 31, 2019 and determined there to be no impairment. Given the significant economic decline during the first half of 2020 due to COVID-19 and the negative impact on most businesses, including banking, management determined it would be prudent to evaluate any adverse impact to the Company's recorded goodwill. As of June 30, 2020, the Company performed a qualitative assessment and determined it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. As such, no impairment was indicated. Core deposit and other intangibles include core deposit intangibles, customer base trust intangible and manufactured housing servicing intangible. The composition of core deposit and other intangibles as of June 30, 2020 and December 31, 2019 are as follows: Core deposit and other intangibles Gross Carrying Amount Accumulated Amortization Net Carrying Amount June 30, 2020 Core deposit intangible $ 52,165 $ (36,080) $ 16,085 Customer base trust intangible 1,600 (467) 1,133 Manufactured housing servicing intangible 1,088 (635) 453 Total core deposit and other intangibles $ 54,853 $ (37,182) $ 17,671 December 31, 2019 Core deposit intangible $ 49,675 $ (33,861) $ 15,814 Customer base trust intangible 1,600 (387) 1,213 Manufactured housing servicing intangible 1,088 (526) 562 Total core deposit and other intangibles $ 52,363 $ (34,774) $ 17,589 During the first quarter of 2020, the Company recorded $2,490 of core deposit intangibles resulting from the Farmers National acquisition, which is being amortized over a weighted average life of approximately 4 years. The estimated aggregate future amortization expense of core deposit and other intangibles is as follows: 2020 $ 2,287 2021 4,089 2022 3,350 2023 2,574 2024 2,015 Thereafter 3,356 $ 17,671 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases: As of June 30, 2020, the Company was the lessee in 45 operating leases of certain branch, mortgage and operations locations, of which 36 operating leases currently have remaining terms varying from greater than one year to 35 years. Leases with initial terms of less than one year are not recorded on the consolidated balance sheets. The Company also does not include equipment leases and leases in which the Company is the lessor on the consolidated balance sheets as these are insignificant. Many leases include one or more options to renew, with renewal terms that can extend the lease up to an additional 20 years or more. Certain lease agreements contain provisions to periodically adjust rental payments for inflation. Renewal options that management is reasonably certain to renew are included in the right-of-use ("ROU") asset and lease liability. The Company entered into a lease for a new corporate headquarters building located in downtown Nashville. The lease agreement, comprising approximately 52,000 square feet of rentable space, includes signage rights, and is anticipated to commence in the fourth quarter of 2022. Upon commencement, the Company estimates recording a ROU asset and operating lease liability of approximately $29,000 and $30,000, respectively, as well as associated deferred taxes, in connection with this lease. Information related to the Company's operating leases is presented below: June 30, December 31, 2020 2019 Right-of-use assets $ 30,447 $ 32,539 Lease liabilities $ 33,803 $ 35,525 Weighted average remaining lease term (in years) 13.93 14.07 Weighted average discount rate 3.44 % 3.40 % The components of lease expense included in Occupancy and equipment expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Operating lease cost (1) $ 1,389 $ 1,421 $ 2,678 $ 2,533 Short-term lease cost 30 260 166 484 Variable lease cost 160 99 298 199 Total lease cost $ 1,579 $ 1,780 $ 3,142 $ 3,216 (1) Includes amortization of favorable lease intangible The Company does not separate lease and non-lease components and instead elects to account for them as a single lease component. Variable lease cost primarily represents variable payments such as common area maintenance, utilities, and property taxes. A maturity analysis of operating lease liabilities and a reconciliation of undiscounted cash flows to the total operating lease liability is as follows: June 30, 2020 Lease payments due: June 30, 2021 $ 5,432 June 30, 2022 4,807 June 30, 2023 4,075 June 30, 2024 3,624 June 30, 2025 3,057 Thereafter 22,713 Total undiscounted future minimum lease payments 43,708 Discount on cash flows (9,905) Total lease liability $ 33,803 |
Mortgage servicing rights
Mortgage servicing rights | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Mortgage servicing rights | Mortgage servicing rights: Changes in the Company’s mortgage servicing rights were as follows for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Carrying value at beginning of period $ 62,581 $ 64,031 $ 75,521 $ 88,829 Capitalization 12,267 11,212 20,063 19,932 Sales — — — (29,160) Change in fair value: Due to pay-offs/pay-downs (7,277) (3,305) (11,920) (5,100) Due to change in valuation inputs or assumptions (7,063) (5,558) (23,156) (8,121) Carrying value at end of period $ 60,508 $ 66,380 $ 60,508 $ 66,380 The following table summarizes servicing income and expense, which are included in mortgage banking income and other noninterest expense, respectively, within the Mortgage Segment operating results for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Servicing income: Servicing income $ 5,113 $ 4,052 $ 10,131 $ 8,803 Change in fair value of mortgage servicing rights (14,340) (8,863) (35,076) (13,221) Change in fair value of derivative hedging instruments 1,102 5,063 15,970 7,540 Servicing income (8,125) 252 (8,975) 3,122 Servicing expenses 1,992 1,485 3,393 3,229 Net servicing (loss) income (1) $ (10,117) $ (1,233) $ (12,368) $ (107) (1) Excludes benefit of custodial service related noninterest-bearing deposits held by the Bank. Data and key economic assumptions related to the Company’s mortgage servicing rights as of June 30, 2020 and December 31, 2019 are as follows: June 30, December 31, 2020 2019 Unpaid principal balance $ 7,700,862 $ 6,734,496 Weighted-average prepayment speed (CPR) 15.60 % 10.05 % Estimated impact on fair value of a 10% increase $ (3,755) $ (2,839) Estimated impact on fair value of a 20% increase $ (7,170) $ (5,474) Discount rate 10.75 % 9.68 % Estimated impact on fair value of a 100 bp increase $ (2,230) $ (3,086) Estimated impact on fair value of a 200 bp increase $ (4,300) $ (5,932) Weighted-average coupon interest rate 3.94 % 4.20 % Weighted-average servicing fee (basis points) 28 29 Weighted-average remaining maturity (in months) 332 335 The Company hedges the mortgage servicing rights portfolio with various derivative instruments to offset changes in the fair value of the related mortgage servicing rights. See Note 11, "Derivatives" for additional information on these hedging instruments. From time to time, the Company enters agreements to sell certain tranches of mortgage servicing rights. Upon consummation of the sale, the Company generally continues to subservice the underlying mortgage loans until they can be transferred to the purchaser. During the six months ended June 30, 2019, the Company sold $29,160 of mortgage servicing rights on $2,034,374 of serviced mortgage loans. There was not a significant gain or loss recognized in connection with the sale. During the six months ended June 30, 2020, there were no such transactions. As of June 30, 2020 and 2019, there were no loans being serviced that related to the bulk sale of mortgage servicing rights. As of June 30, 2020 and December 31, 2019, mortgage escrow deposits totaled to $149,053 and $92,610, respectively. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes: An allocation of federal and state income taxes between current and deferred portions is presented below: Three Months Ended June 30, 2020 2019 Current $ 15,747 $ 6,546 Deferred (8,292) (232) Total $ 7,455 $ 6,314 Six Months Ended June 30, 2020 2019 Current $ 23,915 $ 16,740 Deferred (16,380) (4,451) Total $ 7,535 $ 12,289 Federal income tax expense differs from the statutory federal rate of 21% for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Federal taxes calculated at statutory rate $ 6,369 21.0 % $ 5,251 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,298 4.3 % 1,205 4.8 % Benefit of equity based compensation 22 0.1 % (1) — % Municipal interest income, net of interest disallowance (310) (1.0) % (223) (0.9) % Bank owned life insurance (17) (0.1) % (15) — % Merger costs 32 0.1 % — — % Other 61 0.2 % 97 0.4 % Income tax expense, as reported $ 7,455 24.6 % $ 6,314 25.3 % Six Months Ended June 30, 2020 2019 Federal taxes calculated at statutory rate $ 6,542 21.0 % $ 10,619 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,166 3.7 % 2,343 4.6 % Benefit of equity based compensation 161 0.5 % (393) (0.8) % Municipal interest income, net of interest disallowance (574) (1.8) % (439) (0.9) % Bank owned life insurance (35) (0.1) % (27) — % Merger costs 163 0.5 % — — % Other 112 0.4 % 186 0.4 % Income tax expense, as reported $ 7,535 24.2 % $ 12,289 24.3 % The components of the net deferred tax liability at June 30, 2020 and December 31, 2019, are as follows: June 30, December 31, 2020 2019 Deferred tax assets: Allowance for credit losses $ 31,170 $ 8,113 Operating lease liability 8,924 9,373 Amortization of core deposit intangible 986 1,386 Deferred compensation 4,623 5,231 Unrealized loss on debt securities 54 54 Unrealized loss on equity securities 51 60 Unrealized loss on cash flow hedges 345 — Other 3,041 2,388 Subtotal 49,194 26,605 Deferred tax liabilities: FHLB stock dividends (550) (550) Operating lease - right of use asset (8,084) (8,641) Depreciation (5,802) (5,078) Unrealized gain on cash flow hedges — (203) Unrealized gain on debt securities (7,758) (3,051) Mortgage servicing rights (15,766) (19,678) Goodwill (10,080) (8,859) Other (1,234) (1,035) Subtotal (49,274) (47,095) Net deferred tax liability $ (80) $ (20,490) |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 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 of 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. June 30, December 31, 2020 2019 Commitments to extend credit, excluding interest rate lock commitments $ 1,146,158 $ 1,086,173 Letters of credit 17,881 19,569 Balance at end of period $ 1,164,039 $ 1,105,742 In connection with the adoption of CECL on January 1, 2020, the Company estimates expected credit losses on off-balance sheet loan commitments that are not accounted for as derivatives. When applying the CECL methodology to estimate expected credit loss, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. As such, the Company recorded an allowance for credit losses on unfunded commitments in other liabilities amounting to $2,947. The impact net of taxes was recorded as part of the cumulative adjustment to retained earnings of $25,018 on January 1, 2020. The table below presents activity within the allowance for credit losses on unfunded commitments: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2020 Balance at beginning of period $ 4,618 $ — Impact of CECL adoption on provision for credit losses on unfunded commitments — 2,947 Increase from unfunded commitments acquired in business combination — 70 Provision for credit losses on unfunded commitments 1,882 3,483 Balance at end of period $ 6,500 $ 6,500 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 $1,568 and $4,367 for the three and six months ended June 30, 2020, respectively, and $2,117 and $3,510, for the three and six months ended June 30, 2019, respectively. The Company has established a reserve associated with loan repurchases. This reserve is recorded in accrued expenses and other liabilities on the consolidated balance sheets. The following table summarizes the activity in the repurchase reserve: Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 3,829 $ 3,332 $ 3,529 $ 3,273 Provision for loan repurchases or indemnifications 855 89 1,227 148 Recoveries on previous losses (83) (14) (155) (14) Balance at end of period $ 4,601 $ 3,407 $ 4,601 $ 3,407 |
Derivatives
Derivatives | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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 mortgage loans are typically locked in for between 45 to 90 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 best effort or 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 to offset the changes in fair value of 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. Additionally, 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. The Company also maintains two interest rate swap agreements with notional amounts totaling $30,000 used to hedge interest rate exposure on outstanding subordinated debentures included in long-term debt totaling $30,930. Under these agreements, the Company receives a variable rate of interest equal to 3-month LIBOR and pays a weighted average fixed rate of interest of 2.08%. 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 June 30, 2020 and December 31, 2019, the fair value of these contracts resulted in a liability of $2,215 and $515, respectively. In July 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 five Certain financial instruments, including derivatives, may be eligible for offset in the consolidated balance sheets when the “right of offset” 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, however the Company has not elected to offset such financial instruments in the consolidated balance sheets. The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Gross amounts recognized $ 4,562 $ 331 $ 41,059 $ 14,682 Gross amounts offset in the consolidated — — — — Net amounts presented in the consolidated 4,562 331 41,059 14,682 Gross amounts not offset in the Less: financial instruments 1,054 139 1,054 139 Less: financial collateral pledged — — 40,005 14,543 Net amounts $ 3,508 $ 192 $ — $ — Most derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with derivatives dealers, the Company may be required to post margin to these counterparties. At June 30, 2020 and December 31, 2019, the Company had minimum collateral posting thresholds with certain derivative counterparties and had collateral posted of $46,267 and $33,616, respectively, against its obligations under these agreements. Cash collateral related to derivative contracts is recorded in other assets in the consolidated balance sheets. The following tables provide details on the Company’s derivative financial instruments as of the dates presented: June 30, 2020 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 541,983 $ 41,236 $ 41,068 Forward commitments 1,142,224 — 6,786 Interest rate-lock commitments 1,205,932 37,055 — Futures contracts 248,700 2,253 — Total $ 3,138,839 $ 80,544 $ 47,854 December 31, 2019 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 440,556 $ 14,929 $ 14,929 Forward commitments 684,437 — 866 Interest rate-lock commitments 453,198 7,052 — Futures contracts 389,000 — 1,623 Total $ 1,967,191 $ 21,981 $ 17,418 June 30, 2020 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 2,215 December 31, 2019 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 515 Gains (losses) included in the consolidated statements of income related to the Company’s derivative financial instruments were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Not designated as hedging instruments (included in Interest rate lock commitments $ 9,541 $ 1,875 $ 30,003 $ 3,755 Forward commitments (13,993) (5,264) (40,450) (9,668) Futures contracts 631 4,107 11,542 5,978 Option contracts — 31 — 44 Total $ (3,821) $ 749 $ 1,095 $ 109 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on borrowings, net of taxes of $(52), $(42), $(104), and $(75) $ 148 $ 119 $ 295 $ 213 (Loss) gain included in interest expense on borrowings (62) 39 (74) 94 Total $ 86 $ 158 $ 221 $ 307 The following discloses the amount included in other comprehensive income, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Designated as hedging: Amount of loss recognized in other comprehensive income, net of taxes $40, $201, $443, and $317 $ (112) $ (564) $ (1,257) $ (895) |
Fair value of financial instrum
Fair value of financial instruments | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments:FASB ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820-10 also 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: Investment securities-Investment 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. Investment 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 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 (“OREO”)-OREO 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. OREO 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 ("MSRs")-MSRs 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. As such, mortgage servicing rights are considered Level 3. Collateral dependent loans (Impaired loans prior to the adoption of ASC 326)-loans for which, based on current information and events, the Company has determined foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and the Company expects repayment of the loan to be provided substantially through the operation or sale of the collateral and it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collateral dependent loans are classified as Level 3. The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Fair Value June 30, 2020 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 717,592 $ 717,592 $ — $ — $ 717,592 Investment securities 751,767 — 751,767 — 751,767 Loans, net 4,713,894 — — 4,755,504 4,755,504 Loans held for sale 435,479 — 435,479 — 435,479 Interest receivable 26,587 45 3,533 23,009 26,587 Mortgage servicing rights 60,508 — — 60,508 60,508 Derivatives 80,544 — 80,544 — 80,544 Financial liabilities: Deposits: Without stated maturities $ 4,761,306 $ 4,761,306 $ — $ — $ 4,761,306 With stated maturities 1,191,495 — 1,204,271 — 1,204,271 Securities sold under agreement to 32,732 32,732 — — 32,732 Federal Home Loan Bank advances 250,000 — 258,901 — 258,901 Subordinated debt 30,930 — 23,396 — 23,396 Other borrowings 15,000 — 15,000 — 15,000 Interest payable 7,079 207 6,872 — 7,079 Derivatives 50,069 — 50,069 — 50,069 Fair Value December 31, 2019 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 232,681 $ 232,681 $ — $ — $ 232,681 Investment securities 691,676 — 691,676 — 691,676 Loans, net 4,378,503 — — 4,363,903 4,363,903 Loans held for sale 262,518 — 262,518 — 262,518 Interest receivable 17,083 — 3,282 13,801 17,083 Mortgage servicing rights 75,521 — — 75,521 75,521 Derivatives 21,981 — 21,981 — 21,981 Financial liabilities: Deposits: Without stated maturities $ 3,743,085 $ 3,743,085 $ — $ — $ 3,743,085 With stated maturities 1,191,853 — 1,200,145 — 1,200,145 Securities sold under agreement to 23,745 23,745 — — 23,745 Federal Home Loan Bank advances 250,000 — 250,213 — 250,213 Subordinated debt 30,930 — 29,706 — 29,706 Interest payable 6,465 376 6,089 — 6,465 Derivatives 17,933 — 17,933 — 17,933 The balances and levels of the assets measured at fair value on a recurring basis at June 30, 2020 are presented in the following table: June 30, 2020 Quoted prices Significant Significant Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 3,024 $ — $ 3,024 Mortgage-backed securities — 454,606 — 454,606 Municipals, tax-exempt — 266,052 — 266,052 Treasury securities — 22,771 — 22,771 Corporate securities — 985 — 985 Equity securities — 4,329 — 4,329 Total $ — $ 751,767 $ — $ 751,767 Loans held for sale $ — $ 435,479 $ — $ 435,479 Mortgage servicing rights — — 60,508 60,508 Derivatives — 80,544 — 80,544 Financial Liabilities: Derivatives — 50,069 — 50,069 The balances and levels of the assets measured at fair value on a non-recurring basis at June 30, 2020 are presented in the following table: At June 30, 2020 Quoted prices Significant Significant Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 3,407 $ 3,407 Collateral dependent loans: Commercial and industrial $ — $ — $ 3,062 $ 3,062 Residential real estate: 1-4 family mortgage — — 100 100 Residential line of credit — — 471 311 Commercial real estate: Owner occupied — — 1,461 1,461 Non-owner occupied — — 8,500 8,500 Consumer and other — — 336 336 Total collateral dependent loans $ — $ — $ 15,162 $ 15,162 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2019 are presented in the following table: At December 31, 2019 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: Mortgage-backed securities $ — $ 490,676 $ — $ 490,676 Municipals, tax-exempt — 189,235 — 189,235 Treasury securities — 7,448 — 7,448 Corporate securities — 1,022 — 1,022 Equity securities — 3,295 — 3,295 Total $ — $ 691,676 $ — $ 691,676 Loans held for sale $ — $ 262,518 $ — $ 262,518 Mortgage servicing rights — — 75,521 75,521 Derivatives — 21,981 — 21,981 Financial Liabilities: Derivatives — 17,933 — 17,933 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2019 are presented in the following table: At December 31, 2019 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 9,774 $ 9,774 Impaired Loans (1) : Commercial and industrial $ — $ — $ 6,481 $ 6,481 Residential real estate: 1-4 family mortgage — — 378 378 Residential line of credit — — 321 321 Commercial real estate: Owner occupied — — 951 951 Non-owner occupied — — 2,560 2,560 Total $ — $ — $ 10,691 $ 10,691 (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. There were no transfers between Level 1, 2 or 3 during the periods presented. The following table presents information as of June 30, 2020 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Value Valuation technique Significant Unobservable inputs Range of Collateral dependent loans $ 15,162 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 3,407 Appraised value of property less costs to sell Discount for costs to sell 0%-15% The following table presents information as of December 31, 2019 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Value Valuation technique Significant Unobservable inputs Range of Impaired loans (1) $ 10,691 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 9,774 Appraised value of property less costs to sell Discount for costs to sell 0%-15% (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. For collateral dependent loans, the ACL is measured based on the difference between the fair value of the collateral and the amortized cost basis of the loan as of the measurement date. Fair value of the loan's collateral is determined by third-party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of of the collateral. Collateral dependent loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on changes in market conditions from the time of valuation and management's knowledge of the client and client's business. Other real estate owned acquired in settlement of indebtedness is recorded at fair value of the real estate less estimated costs to sell. Subsequently, it may be necessary to record nonrecurring fair value adjustments for declines in fair value. Any write-downs based on the asset's fair value at the date of foreclosure are charged to the allowance for credit losses. Appraisals for both collateral dependent 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 measures 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 more accurately matches the changes in fair value of the loans with changes in the fair value of derivative instruments used to economically hedge them. Net gains of $8,048 and $13,866 resulting from fair value changes of mortgage loans were recorded in income during the three and six months ended June 30, 2020, respectively, compared to $2,169 and $962 during the three and six months ended June 30, 2019, 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. As of June 30, 2020 and December 31, 2019, there was $81,229 and $51,705, respectively, of GNMA loans previously sold that the Company did not record on its consolidated balance sheets as the Company determined there not to be a more-than-trivial benefit based on an analysis of interest rates and an assessment of potential reputational risk associated with these loans. 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 June 30, 2020 and December 31, 2019: June 30, 2020 Aggregate Aggregate Difference Mortgage loans held for sale measured at fair value $ 435,479 $ 413,963 $ 21,516 Past due loans of 90 days or more — — — Nonaccrual loans — — — December 31, 2019 Mortgage loans held for sale measured at fair value $ 262,518 $ 254,868 $ 7,650 Past due loans of 90 days or more — — — Nonaccrual loans — — — |
Segment reporting
Segment reporting | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment reporting | 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. 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 the first quarter of 2019, the Company's Board of Directors approved management's strategic plan to exit its wholesale mortgage delivery channels. On June 7, 2019, the Company completed the sale of its third party origination ("TPO") channel and on August 1, 2019, the Company completed the sale of its correspondent channel. The Mortgage segment incurred $829 and $1,883 in restructuring charges, during the three and six months ended June 30, 2019, respectively, related to these sales. The restructuring charges include a one time charge of $100 in relief of goodwill associated with the TPO channel. The following tables provide segment financial information for the three and six months ended June 30, 2020 and 2019 as follows: Three Months Ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 55,350 $ (13) $ 55,337 Provisions for credit losses (1) 25,921 — 25,921 Mortgage banking income 16,940 68,466 85,406 Change in fair value of mortgage servicing rights, net of hedging (2) — (13,238) (13,238) Other noninterest income 9,323 — 9,323 Depreciation and amortization 1,503 116 1,619 Amortization of intangibles 1,205 — 1,205 Other noninterest mortgage banking expense 11,542 26,881 38,423 Other noninterest expense (3) 39,332 — 39,332 Income before income taxes $ 2,110 $ 28,218 $ 30,328 Income tax expense 7,455 Net income 22,873 Total assets $ 6,751,881 $ 503,655 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Included $1,882 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statement of income. (3) Included $1,586 of merger costs in the Banking segment primarily related to the integration of Farmers National. Three Months Ended June 30, 2019 Mortgage Consolidated Net interest income $ 56,979 $ 44 $ 57,023 Provision for credit losses 881 — 881 Mortgage banking income 5,451 22,875 28,326 Change in fair value of mortgage servicing rights, net of hedging (1) — (3,800) (3,800) Other noninterest income 8,453 — 8,453 Depreciation and amortization 1,134 144 1,278 Amortization of intangibles 1,254 — 1,254 Other noninterest mortgage banking expense 4,172 17,691 21,863 Other noninterest expense (2) 38,895 829 39,724 Income before income taxes 24,547 455 25,002 Income tax expense 6,314 Net income 18,688 Total assets $ 5,552,893 $ 387,509 $ 5,940,402 Goodwill 168,486 — 168,486 (1) Included in mortgage banking income in the Company's consolidated statement of income. (2) Included $3,783 in merger costs in the Banking segment related to the Atlantic Capital branch acquisition and $829 in mortgage restructuring charges in the Mortgage segment. Six Months Ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 111,583 $ 3 $ 111,586 Provision for credit losses (1) 55,486 — 55,486 Mortgage banking income 27,591 96,428 124,019 Change in fair value of mortgage servicing rights, net of hedging (2) — (19,106) (19,106) Other noninterest income 19,278 — 19,278 Depreciation and amortization 2,995 236 3,231 Amortization of intangibles 2,408 — 2,408 Other noninterest mortgage banking expense 18,717 44,328 63,045 Other noninterest expense (3) 80,454 — 80,454 (Loss) income before income taxes $ (1,608) $ 32,761 $ 31,153 Income tax expense 7,535 Net income $ 23,618 Total assets $ 6,751,881 $ 503,655 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Included $3,483 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statement of income. (3) Included $4,636 of merger costs in the Banking segment related to the Farmers National acquisition and the Franklin merger. Six Months Ended June 30, 2019 Banking Mortgage Consolidated Net interest income $ 109,972 $ 67 $ 110,039 Provision for credit losses 2,272 — 2,272 Mortgage banking income 9,837 41,391 51,228 Change in fair value of mortgage servicing rights, net of hedging (1) — (5,681) (5,681) Other noninterest income 16,471 — 16,471 Depreciation and amortization 2,176 274 2,450 Amortization of intangibles 1,983 — 1,983 Other noninterest mortgage banking expense 7,003 35,047 42,050 Other noninterest expense (2) 70,854 1,883 72,737 Income (loss) before income taxes $ 51,992 $ (1,427) $ 50,565 Income tax expense 12,289 Net income $ 38,276 Total assets $ 5,552,893 $ 387,509 $ 5,940,402 Goodwill 168,486 — 168,486 (1) Included in mortgage banking income in the Company's consolidated statement of income. (2) Includes $4,404 in merger costs in the Banking segment related to the Atlantic Capital branch acquisition and $1,883 in mortgage restructuring charges in the Mortgage segment. 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, which is eliminated in consolidation, had a prime interest rate of 3.25% and 5.50% as of June 30, 2020 and 2019, respectively, and is limited based on interest income earned by the Mortgage segment. 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 $3,335 and $3,290 for the three months ended June 30, 2020 and 2019, respectively, and $5,710 and $5,848 for the six months ended June 30, 2020 and 2019, respectively. |
Minimum capital requirements
Minimum capital requirements | 6 Months Ended |
Jun. 30, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Minimum capital requirements | 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. Under regulatory guidance for non-advanced approaches institutions, the Bank and Company are required to maintain minimum amounts and ratios of common equity Tier I capital to risk-weighted assets. Additionally, under U.S. Basel III Capital Rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of June 30, 2020 and December 31, 2019, the Bank and Company met all capital adequacy requirements to which they are subject. In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company adopted the capital transition relief over the permissible five-year period. Actual and required capital amounts and ratios are presented below at period-end. Actual For capital adequacy purposes Minimum Capital To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Total Capital (to risk-weighted assets) FB Financial Corporation $ 735,555 13.4 % $ 439,137 8.0 % $ 576,368 10.5 % N/A N/A FirstBank 742,321 13.5 % 439,894 8.0 % 577,361 10.5 % $ 549,867 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 666,090 12.1 % $ 330,293 6.0 % $ 467,914 8.5 % N/A N/A FirstBank 672,856 12.3 % 328,222 6.0 % 464,982 8.5 % $ 437,630 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 666,090 9.7 % $ 274,676 4.0 % N/A N/A N/A N/A FirstBank 672,856 9.7 % 277,466 4.0 % N/A N/A $ 346,833 5.0 % Common Equity Tier 1 Capital (to risk- FB Financial Corporation $ 636,090 11.6 % $ 246,759 4.5 % $ 383,847 7.0 % N/A N/A FirstBank 672,856 12.3 % 246,167 4.5 % 382,926 7.0 % $ 355,574 6.5 % Actual For capital adequacy Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total Capital (to risk-weighted assets) FB Financial Corporation $ 633,549 12.2 % $ 415,442 8.0 % $ 545,268 10.5 % N/A N/A FirstBank 623,432 12.1 % 412,186 8.0 % 540,995 10.5 % $ 515,233 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 602,410 11.6 % $ 311,591 6.0 % $ 441,421 8.5 % N/A N/A FirstBank 592,293 11.5 % 309,022 6.0 % 437,782 8.5 % $ 412,030 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 602,410 10.1 % $ 238,578 4.0 % N/A N/A N/A N/A FirstBank 592,293 9.9 % 239,310 4.0 % N/A N/A $ 299,138 5.0 % Common Equity Tier 1 Capital (to risk- FB Financial Corporation $ 572,410 11.1 % $ 232,058 4.5 % $ 360,979 7.0 % N/A N/A FirstBank 592,293 11.5 % 231,767 4.5 % 360,526 7.0 % $ 334,774 6.5 % |
Stock-based compensation
Stock-based compensation | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Restricted Stock Units The Company grants restricted stock units under 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. The following table summarizes information about vested and unvested restricted stock units as of the dates indicated: Six Months Ended June 30, 2020 2019 Restricted Stock Weighted Restricted Stock Weighted Balance at beginning of period 826,263 $ 23.76 1,140,215 $ 21.96 Grants 132,605 33.92 165,761 34.03 Released and distributed (vested) (132,203) 32.52 (195,755) 25.62 Forfeited/expired (14,826) 34.24 (9,581) 24.72 Balance at end of period 811,839 $ 24.84 1,100,640 $ 25.53 The total fair value of restricted stock units vested and released was $1,048 and $4,299 for the three and six months ended June 30, 2020, respectively, and $482 and $5,015 for the three and six months ended June 30, 2019, respectively. The compensation cost related to stock grants and vesting of restricted stock units was $2,015 and $3,817 for the three and six months ended June 30, 2020, respectively, and $2,147 and $3,785 for the three and six months ended June 30, 2019, respectively. This included $231 and $378 paid to Company independent directors during the three and six months ended June 30, 2020, respectively, and $179 and $351 during the three and six months ended June 30, 2019, respectively, related to independent director grants and compensation elected to be settled in stock. As of June 30, 2020 and December 31, 2019, there were $10,810 and $11,499, respectively, of total unrecognized compensation cost related to unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.21 years and 2.00 years, respectively. At June 30, 2020 and December 31, 2019, there were $452 and $375, respectively, accrued in other liabilities related to dividends declared to be paid upon vesting and distribution of the underlying RSUs. Performance Based Restricted Stock Units: During 2020, the Company began awarding performance-based restricted stock units ("PSUs") to executives and other officers and employees. Under the terms of the award, the number of units that will vest and convert to shares of common stock will be based on the extent to which the Company achieves specified performance criteria during the fixed three three The Company granted 53,147 shares of performance based restricted stock units and recorded compensation cost of $335 and $416 during the three and six months ended June 30, 2020, respectively. As of June 30, 2020, the Company determined the probability of meeting the performance criteria, and recorded compensation cost associated with a 181% vesting, when factoring in the conversion of PSUs to shares of common stock. As of June 30, 2020, maximum unrecognized compensation cost related to the nonvested PSUs was $3,067, and the remaining performance period over which the cost could be recognized was 2.64 years. Employee Stock Purchase Plan: The Company maintains an employee stock purchase plan (“ESPP”) under which employees, through payroll deductions, are able to purchase shares of Company common stock. The purchase price is 95% 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 worth of common stock in any calendar year). There were no shares issued under the ESPP during the three months ended June 30, 2020 and 2019, respectively. During the six months ended June 30, 2020 and 2019, there were 12,145 and 10,613 shares of common stock issued under the ESPP, respectively. As of June 30, 2020 and December 31, 2019, there were 2,397,040 and 2,409,185 shares available for issuance under the ESPP, respectively. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | 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 compliance with regulatory requirements. An analysis of loans to executive officers, certain management, and directors of the Bank and their affiliates is presented below: Loans outstanding at January 1, 2020 $ 30,880 New loans and advances 5,619 Change in related party status 248 Repayments (5,151) Loans outstanding at June 30, 2020 $ 31,596 Unfunded commitments to certain executive officers, certain management and directors and their associates totaled $20,302 and $19,404 at June 30, 2020 and December 31, 2019, respectively. (B) Deposits: The Bank held deposits from related parties totaling $277,904 and $238,781 as of June 30, 2020 and December 31, 2019, respectively. (C) Leases: The Bank leases various office spaces from entities owned by certain directors of the Company under varying terms. The Company had $68 and $86 in unamortized leasehold improvements related to these leases at June 30, 2020 and December 31, 2019, respectively. These improvements are being amortized over a term not to exceed the length of the lease. Lease expense for these properties totaled $128 and $256 for the three months and six months ended June 30, 2020 respectively and $124 and $253 for the three and six months ended June 30, 2019, respectively. (D) Aviation time sharing agreement: The Company is a participant to aviation time sharing agreements with entities owned by a certain director of the Company. During the three and six months ended June 30, 2020, the Company made payments of $58 and |
Basis of presentation (Policies
Basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Earnings per share | Earnings per share Basic earnings per common share ("EPS") excludes dilution and is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS includes the dilutive effect of additional potential common shares issuable under the restricted stock units granted but not yet vested and distributable. Diluted EPS is computed by dividing earnings attributable to common shareholders by the weighted average number of common shares outstanding for the period, plus an incremental number of common-equivalent shares computed using the treasury stock method. Unvested share-based payment awards, which include the right to receive non-forfeitable dividends or dividend equivalents, are considered to participate with common shareholders in undistributed earnings for purposes of computing EPS. Companies that have such participating securities are required to calculate basic and diluted EPS using the two-class method. Certain restricted stock awards granted by the Company include non-forfeitable dividend equivalents and are considered participating securities. Calculations of EPS under the two-class method (i) exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities and (ii) exclude from the denominator the dilutive impact of the participating securities. |
Recently adopted accounting policies and Newly issued not yet effective accounting standards | Recently adopted accounting policies: The Company modified or adopted the following accounting policies during the six months ended June 30, 2020, primarily as a result of the implementation of FASB Accounting Standards Update ("ASU") 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” ("CECL"): Investment securities: Debt securities are classified as held to maturity and carried at amortized cost, excluding accrued interest, when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Available-for-sale debt securities are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of applicable taxes. Beginning January 1, 2020, unrealized losses resulting from credit losses for available-for-sale debt securities are recognized in earnings as a provision for credit losses. Unrealized losses that do not result from credit losses are excluded from earnings and reported as accumulated other comprehensive income, net of applicable taxes, which is included in equity. Accrued interest receivable is separated from other components of amortized cost and presented separately on the consolidated balance sheets. Equity securities with readily determinable market values are carried at fair value on the balance sheet with any periodic changes in value made through adjustments to the statement of income. Equity securities without readily determinable market values are carried at cost less impairment and included in other assets on the consolidated balance sheets. Interest income includes the amortization and accretion of purchase premium and discount. Premiums and discounts on securities are amortized on the level-yield method anticipating prepayments based upon the prior three month average monthly prepayments when available. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. The Company evaluates available-for-sale securities for expected credit losses at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. For securities in an unrealized loss position, consideration is given to the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. In analyzing an issuer’s financial condition, the Company considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition. When credit losses are expected to occur, the amount of the expected credit loss recognized in earnings depends on the Company's intention to sell the security or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. If the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, the expected credit loss recognized in earnings is equal to the entire difference between its amortized cost basis and its fair value at the date it was determined to be impaired due to credit losses or other factors. The previous amortized cost basis less the impairment recognized in earnings becomes the new amortized cost basis of the investment. However, if the Company does not intend to sell the security and it is not more likely than not to be required to sell the security before recovery of its amortized cost basis, the difference between the amortized cost and the fair value is separated into the amount representing the credit loss and the amount related to all other factors. If the Company determines a decline in fair value below the amortized cost basis of an available-for-sale investment security has resulted from credit related factors, beginning January 1, 2020 with the adoption of CECL, the Company records a credit loss through an allowance for credit losses. The allowance for credit losses is limited by the amount that the fair value is less than amortized cost. The amount of the allowance for credit losses is determined based on the present value of cash flows expected to be collected and is recognized as a charge to earnings. The amount of the impairment related to other, non-credit related, factors is recognized in other comprehensive income, net of applicable taxes. The Company did not record any provision for credit losses for its available-for-sale debt securities during the three months or six months ended June 30, 2020, as the majority of the investment portfolio is government guaranteed and declines in fair value below amortized cost were determined to be non-credit related. Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at the principal amount outstanding less any purchase accounting discount net of any accretion recognized to date. Interest on loans is recognized as income by using the simple interest method on daily balances of the principal amount outstanding plus any accretion of purchase accounting discounts. Accrued interest receivable is separated from other components of amortized cost and presented separately on the consolidated balance sheets. Loans on which the accrual of interest has been discontinued are designated as nonaccrual loans. Accrual of interest is discontinued on loans past due 90 days or more unless the credit is well secured and in the process of collection. Also, a loan may be placed on nonaccrual status prior to becoming past due 90 days if management believes, after considering economic and business conditions and collection efforts, that the borrower’s financial condition is such that collection of principal or interest is doubtful. The decision to place a loan on nonaccrual status prior to becoming past due 90 days is based on an evaluation of the borrower’s financial condition, collateral liquidation value, economic and business conditions and other factors that affect the borrower’s ability to pay. When a loan is placed on nonaccrual status, the accrued but unpaid interest is charged against current period operations through a reversal of interest income. Thereafter, interest on nonaccrual loans is recognized only as received if future collection of principal is probable. If the collectibility of outstanding principal is doubtful, interest received is applied as a reduction of principal. A loan may be restored to accrual status when principal and interest are no longer past due or it otherwise becomes both well secured and collectability is reasonably assured. The nonaccrual policy results in timely reversal of accrued interest receivable, so an allowance for credit losses is not required on accrued interest receivable. Allowance for credit losses: The allowance for credit losses represents the portion of the loan's amortized cost basis that the Company does not expect to collect due to credit losses over the loan's life, considering past events, current conditions, and reasonable and supportable forecasts of future economic conditions considering macroeconomic forecasts. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for credit losses is based on the loan's amortized cost basis, excluding accrued interest receivable, as the Company promptly charges off uncollectible accrued interest receivable. Management’s determination of the appropriateness of the allowance is based on periodic evaluation of the loan portfolio, lending-related commitments and other relevant factors, including macroeconomic forecasts and historical loss rates. In future quarters, the Company may update information and forecasts that may cause significant changes in the estimate in those future quarters. As of January 1, 2020, the Company’s policy for the allowance for credit losses changed with the adoption of CECL. As permitted, the new guidance was implemented using a modified retrospective approach with the impact of the initial adoption being recorded through retained earnings at January 1, 2020, with no restatement of prior periods. Prior to adopting CECL, the Company calculated the allowance using an incurred loss approach. Beginning January 1, 2020, the Company calculates the allowance using a lifetime expected credit loss approach as described in the previous paragraph. See Note 4 for additional details related to the Company's specific calculation methodology. The allowance for credit losses is the Company’s best estimate. Actual losses may differ from the June 30, 2020 allowance for credit loss as the CECL estimate is sensitive to economic forecasts and management judgment. There have been no changes to portfolio segments as described in the accounting policies within the Company's Annual Report on Form 10-K. Business combinations and accounting for loans purchased with credit deterioration: Business combinations are accounted for by applying the acquisition method in accordance with Accounting Standards Codification ("ASC") 805, “Business Combinations” (“ASC 805”). Under the acquisition method, identifiable assets acquired and liabilities assumed and any non-controlling interest in the acquiree at the acquisition date are measured at their fair values as of that date. Any excess of the purchase price over fair value of net assets acquired is recorded as goodwill. To the extent the fair value of net assets acquired, including any other identifiable intangible assets, exceed the purchase price, a bargain purchase gain is recognized. Results of operations of acquired entities are included in the consolidated statements of income from the date of acquisition. Beginning January 1, 2020, loans acquired in business combinations with evidence of more-than-insignificant credit deterioration since origination are considered to be Purchased Credit Deteriorated ("PCD"). The Company developed multiple criteria to assess the presence of more–than–insignificant credit deterioration in acquired loans, mainly focused on changes in credit quality and payment status. While general criteria have been established, each acquisition will vary in its specific facts and circumstances and the Company will apply judgment around PCD identification for each individual acquisition based on their unique portfolio mix and risks identified. The Company adopted ASC 326 using the prospective transition approach for loans previously classified as purchased credit impaired ("PCI") and accounted for under ASC 310-30. In accordance with the standard, management did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption and all PCI loans were transitioned to PCD loans upon adoption. Under PCD accounting,the amount of expected credit losses as of the acquisition date is added to the purchase price of the PCD loan. This establishes the amortized cost basis of the PCD loan. The difference between the unpaid principal balance of the PCD loan and the amortized cost basis of the PCD loan as of the acquisition date is the non-credit discount. Interest income for a PCD loan is recognized by accreting the amortized cost basis of the PCD loan to its contractual cash flows. The discount related to estimated credit losses on acquisition recorded as an allowance for credit losses will not be accreted into interest income. Only the noncredit-related discount will be accreted into interest income and subsequent adjustments to expected credit losses will flow through the provision for credit losses on the income statement. Off-balance sheet financial instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded, unless considered derivatives. For loan commitments that are not accounted for as derivatives and when the obligation is not unconditionally cancelable by the Company, the Company applies the CECL methodology to estimate the expected credit loss on off-balance-sheet commitments. The estimate of expected credit losses for off-balance-sheet credit commitments is recognized as a liability. When the loan is funded, an allowance for expected credit losses is estimated for that loan using the CECL methodology, and the liability for off-balance-sheet commitments is reduced. When applying the CECL methodology to estimate the expected credit loss, the Company considers the likelihood that funding will occur, the contractual period of exposure to credit loss, the risk of loss, historical loss experience, and current conditions along with expectations of future economic conditions. Recently adopted accounting standards: Except as set forth below, the Company did not adopt any new accounting standards that were not disclosed in the Company's 2019 audited consolidated financial statements included on Form 10-K. In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 and its subsequent amendments issued by the FASB, which requires the measurement of all current expected credit losses for financial assets (including off-balance sheet credit exposures) held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Additionally, the update requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. The new methodology requires institutions to calculate all probable and estimable losses that are expected to be incurred through the financial asset's entire life through a provision for credit losses, including certain loans obtained as a result of any acquisition. For available-for-sale debt securities that have experienced a deterioration in credit, Topic 326 requires an allowance for credit losses to be recognized, instead of a direct write-down, which was previously required under the other-than-temporary impairment ("OTTI") model. Topic 326 eliminates the concept of “other-than-temporary” impairment and instead focuses on determining whether any impairment is a result of a credit loss or other factors. As a result, the standard says the Company may not use the length of time a debt security has been in an unrealized loss position as a factor, either by itself or in combination with other factors, to conclude that a credit loss does not exist, as the Company was previously allowed under the OTTI model. ASU 2016-13 eliminates the existing guidance for PCI loans, but requires an allowance for purchased financial assets with more than insignificant deterioration since origination to be determined in a manner similar to that of other financial assets measured at amortized cost; however, the initial allowance will be added to the purchase price rather than recorded as provision expense referred herein as the PCD asset gross-up approach. The Company applied the new PCD asset gross-up approach at transition to all assets that were accounted for as PCI prior to adoption. Any change in the allowance for credit losses for these assets as a result of applying the new guidance is accounted for as an adjustment to the asset’s amortized cost basis and not as a cumulative-effect adjustment to beginning retained earnings. Additionally, ASU 2016-13 requires additional disclosures related to loans and debt securities. See Note 3, “Investment securities” and Note 4, “Loans and allowance for credit losses” for these disclosures. The Company formed a cross–functional working group to oversee the adoption of CECL at the effective date. The working group developed a project plan focused on understanding the new standard, researching issues, identifying data needs for modeling inputs, technology requirements, modeling considerations, and ensuring overarching governance was achieved for each objective and milestone. The key data driver for each model was identified, populated, and internally validated. The Company also completed data and model validation testing. The Company has performed model sensitivity analysis, developed a framework for qualitative adjustments, created supporting analytics, and executed the enhanced governance and approval process. Internal controls related to the CECL process were finalized prior to adoption. ASU 2016-13 was adopted effective January 1, 2020 using a modified retrospective approach with no adjustments to prior period comparative financial statements. Upon adoption, the Company recorded a cumulative effective adjustment to decrease retained earnings by $25,018, with corresponding adjustments to the allowance for credit losses on loans and unfunded commitments in addition to recording a deferred tax asset on its consolidated balance sheet. As of that date, the Company also recorded a cumulative effective adjustment to gross-up the amortized cost amount of its PCD loans by $558, with a corresponding adjustment to the allowance for credit losses on its consolidated balance sheet. A summary of the impact to the consolidated balance sheet as of the adoption date is presented in the table below: Balance before adoption of ASC 326 Cumulative effective adjustment to adopt ASC 326 Impact of the adjustment to adopt ASC 326 Balance at January 1, 2020 (post ASC 326 adoption) ASSETS Loans $ 4,409,642 $ 558 Increase $ 4,410,200 Allowance for credit losses (31,139) (31,446) Increase (62,585) Total impact to assets $ (30,888) Net decrease LIABILITIES AND EQUITY Allowance for credit losses on $ — $ 2,947 Increase $ 2,947 Net deferred tax liability 20,490 (8,817) Decrease 11,673 Retained earnings 293,524 (25,018) Decrease 268,506 Total impact to liabilities and equity $ (30,888) Net decrease In December 2018, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. In March 2020, the OCC, the Board of Governors of the Federal Reserve System, and the FDIC announced an interim final rule to delay the estimated impact on regulatory capital stemming from the implementation of CECL. The interim final rule maintains the three-year transition option in the previous rule and provides banks the option to delay for two years an estimate of CECL’s effect on regulatory capital, relative to the incurred loss methodology’s effect on regulatory capital, followed by a three-year transition period (five-year transition option). The Company elected the five-year capital transition relief option. In January 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350) – Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two from the goodwill impairment test. Instead, an entity may perform only step one of its quantitative goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Entities have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative step one impairment test is necessary. ASU 2017-04 became effective for the Company on January 1, 2020. The adoption of this standard did not have any impact on the Company's consolidated financial statements or disclosures. In August 2018, the FASB issued "Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements." This update is part of the disclosure framework project and eliminates certain disclosure requirements for fair value measurements, requires entities to disclose new information, and modifies existing disclosure requirements. The update became effective on January 1, 2020 and did not have an impact on the Company's consolidated financial statements or disclosures. In March 2019, FASB issued ASU 2019-01, "Leases (Topic 842): Codification Improvements", which aligns the guidance for fair value of the underlying assets by lessors that are not manufacturers or dealers in Topic 842 with that of existing guidance. As a result, the fair value of the underlying asset at lease commencement is its cost, reflecting any volume or trade discounts that may apply. However, if there has been a significant lapse of time between when the underlying asset is acquired and when the lease commences, the definition of fair value in Topic 820, Fair Value Measurement should be applied. ASU No. 2019-01 also requires lessors within the scope of Topic 942, "Financial Services—Depository and Lending", to present all “principal payments received under leases” within investing activities. The adoption of this standard on January 1, 2020 did not have a material impact on the Company's consolidated financial statements or disclosures. In April 2019, the FASB issued ASU No. 2019-04, " Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments". The amendments related to Topic 326 address accrued interest, transfers between classifications or categories for loans and debt securities, recoveries, vintage disclosures, and contractual extensions and renewal options and became effective for annual periods and interim periods within those annual periods beginning after December 15, 2019. The improvements and clarifications related to Topic 815 address partial-term fair value hedges of interest-rate risk, amortization, and disclosure of fair value hedge basis adjustments and consideration of hedged contractually specified interest rates under the hypothetical method and became effective for the annual reporting period beginning January 1, 2020. The amendments related to Topic 825 contain various improvements to ASU 2016-01, including scope; held-to-maturity debt securities fair value disclosures; and remeasurement of equity securities at historical exchange rates and became effective as of January 1, 2020. The amendments in this update did not have a material impact on the financial statements. Newly issued not yet effective accounting standards: In June 2018, FASB issued ASU 2018-07, "Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting", which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. Consistent with the accounting for employee share-based payment awards, nonemployee share-based payment awards will be measured at grant-date fair value of the equity instruments obligated to be issued when the good has been delivered or the service rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. This ASU is effective for all entities for fiscal years beginnings after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company does not expect adoption of this standard to have a significant impact on the consolidated financial statements or disclosures. |
Basis of presentation (Tables)
Basis of presentation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Basic earnings per common share calculation: Net income $ 22,873 $ 18,688 $ 23,618 $ 38,276 Dividends paid on and undistributed earnings allocated to — (100) — (205) Earnings attributable to common shareholders $ 22,873 $ 18,588 $ 23,618 $ 38,071 Weighted-average basic shares outstanding 32,094,274 30,859,596 31,676,004 30,823,341 Basic earnings per common share $ 0.71 $ 0.60 $ 0.75 $ 1.24 Diluted earnings per common share: Earnings attributable to common shareholders $ 22,873 $ 18,588 $ 23,618 $ 38,071 Weighted-average basic shares outstanding 32,094,274 30,859,596 31,676,004 30,823,341 Weighted-average diluted shares contingently issuable (1) 412,143 518,422 433,190 525,625 Weighted-average diluted shares outstanding 32,506,417 31,378,018 32,109,194 31,348,966 Diluted earnings per common share $ 0.70 $ 0.59 $ 0.74 $ 1.21 1 Excludes 352,888 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | A summary of the impact to the consolidated balance sheet as of the adoption date is presented in the table below: Balance before adoption of ASC 326 Cumulative effective adjustment to adopt ASC 326 Impact of the adjustment to adopt ASC 326 Balance at January 1, 2020 (post ASC 326 adoption) ASSETS Loans $ 4,409,642 $ 558 Increase $ 4,410,200 Allowance for credit losses (31,139) (31,446) Increase (62,585) Total impact to assets $ (30,888) Net decrease LIABILITIES AND EQUITY Allowance for credit losses on $ — $ 2,947 Increase $ 2,947 Net deferred tax liability 20,490 (8,817) Decrease 11,673 Retained earnings 293,524 (25,018) Decrease 268,506 Total impact to liabilities and equity $ (30,888) Net decrease |
Mergers and acquisitions (Table
Mergers and acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following tables summarize the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and an allocation of the consideration to net assets acquired: As of February 14, 2020 As Recorded by FB Financial Corporation ASSETS Cash and cash equivalents $ 10,774 Securities 50,594 Loans, net of fair value adjustments 182,171 Allowance for credit losses on PCD loans (669) Premises and equipment 8,049 Core deposit intangible 2,490 Other assets 4,809 Total assets $ 258,218 LIABILITIES Deposits Noninterest-bearing $ 63,531 Interest-bearing checking 26,451 Money market and savings 37,002 Customer time deposits 82,551 Total deposits 209,535 Borrowings 3,192 Accrued expenses and other liabilities 1,839 Total liabilities 214,566 Total net assets acquired $ 43,652 |
Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired | Consideration: Net shares issued 954,797 Purchase price per share on February 14, 2020 $ 36.70 Value of stock consideration $ 35,041 Cash consideration paid 15,001 Total purchase price $ 50,042 FV of net assets acquired 43,652 Goodwill resulting from merger $ 6,390 |
Schedule of Purchased Credit Deteriorated Credit Quality | As of February 14, 2020 Purchased credit-deteriorated loans Principal balance $ 18,964 Allowance for credit losses at acquisition (669) Net premium attributable to other factors 63 Loans purchased credit-deteriorated fair value $ 18,358 |
Farmers National | |
Business Acquisition [Line Items] | |
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, 2019 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 Net interest income $ 59,543 $ 112,804 $ 115,128 Total revenues 92,919 237,258 177,938 Net income 19,097 24,045 38,696 |
Atlantic Capital Bank | |
Business Acquisition [Line Items] | |
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, 2018 and does not include the effect of all cost-saving or revenue-enhancing strategies. Three Months Ended June 30, Six Months Ended June 30, 2019 2019 Net interest income $ 57,023 $ 113,610 Total revenues $ 90,002 $ 176,413 Net income $ 18,688 $ 37,191 |
Investment securities (Tables)
Investment securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost of Securities and Fair Values | The following table summarizes the amortized cost, allowance for credit losses and fair value of the available-for-sale debt securities and the corresponding amounts of unrealized gains and losses recognized in accumulated other comprehensive income at June 30, 2020 and December 31, 2019: June 30, 2020 Amortized cost Gross unrealized gains Gross unrealized losses Allowance for credit losses for investments Fair Value Investment Securities Available-for-sale debt securities U.S. government agency securities $ 3,003 $ 21 $ — $ — $ 3,024 Mortgage-backed securities - residential 439,843 14,770 (7) — 454,606 Municipals, tax exempt 251,424 14,875 (247) — 266,052 Treasury securities 22,485 286 — — 22,771 Corporate securities 1,000 — (15) — 985 Total $ 717,755 $ 29,952 $ (269) $ — $ 747,438 December 31, 2019 Amortized cost Gross unrealized gains Gross unrealized losses Fair Value Investment Securities Available-for-sale debt securities Mortgage-backed securities - residential $ 487,101 $ 5,236 $ (1,661) $ 490,676 Municipals, tax exempt 181,178 8,287 (230) 189,235 Treasury securities 7,426 22 — 7,448 Corporate securities 1,000 22 — 1,022 Total $ 676,705 $ 13,567 $ (1,891) $ 688,381 |
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. June 30, December 31, 2020 2019 Available-for-sale Available-for-sale Amortized cost Fair value Amortized cost Fair value Due in one year or less $ 17,374 $ 17,473 $ 1,148 $ 1,152 Due in one to five years 33,022 33,515 11,553 11,676 Due in five to ten years 30,203 31,373 18,287 18,887 Due in over ten years 197,313 210,471 158,616 165,990 277,912 292,832 189,604 197,705 Mortgage-backed securities - residential 439,843 454,606 487,101 490,676 Total debt securities $ 717,755 $ 747,438 $ 676,705 $ 688,381 |
Summary of Summary of Sales and Other Dispositions of Available-for-Sale Securities | Sales and other dispositions of available-for-sale securities were as follows: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Proceeds from sales $ — $ — $ — $ 1,758 Proceeds from maturities, prepayments and calls 44,703 29,353 72,360 50,167 Gross realized gains — 5 — 6 Gross realized losses — — — 7 |
Schedule of Gross Unrealized Losses | The following tables show gross unrealized losses for which an allowance for credit losses has not been recorded at June 30, 2020 and December 31, 2019, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position: June 30, 2020 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss Mortgage-backed securities - residential $ 14,746 $ (7) $ — $ — $ 14,746 $ (7) Municipals, tax exempt 2,784 (247) — — 2,784 (247) Corporate securities 985 (15) — — 985 (15) Total $ 18,515 $ (269) $ — $ — $ 18,515 $ (269) December 31, 2019 Less than 12 months 12 months or more Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized loss Mortgage-backed securities - residential $ 47,641 $ (164) $ 175,730 $ (1,497) $ 223,371 $ (1,661) Municipals, tax exempt 15,433 (230) — — 15,433 (230) Total $ 63,074 $ (394) $ 175,730 $ (1,497) $ 238,804 $ (1,891) |
Loans and allowance for credi_2
Loans and allowance for credit losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Loans Outstanding by Major Lending Classification | Loans outstanding at June 30, 2020 and December 31, 2019, by class of financing receivable are as follows: June 30, December 31, 2020 2019 Commercial and industrial (1) $ 1,289,646 $ 1,034,036 Construction 553,619 551,101 Residential real estate: 1-to-4 family mortgage 741,936 710,454 Residential line of credit 236,974 221,530 Multi-family mortgage 115,149 69,429 Commercial real estate: Owner occupied 683,245 630,270 Non-owner occupied 923,192 920,744 Consumer and other 283,262 272,078 Gross loans 4,827,023 4,409,642 Less: Allowance for credit losses (113,129) (31,139) Net loans $ 4,713,894 $ 4,378,503 (1) Includes $314,678 of loans originated as part of the PPP at June 30, 2020, established by the CARES Act, in response to the COVID-19 pandemic. The PPP is administered by the SBA; loans originated as part of the PPP may be forgiven by the SBA under a set of defined rules. An allowance for credit losses of $51 at June 30, 2020, has been allocated for these loans. PPP loans are federally guaranteed as part of the CARES Act, provided PPP loan recipients receive loan forgiveness under the SBA regulations. As such, there is minimal credit risk associated with these loans. |
Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest | The following provides the changes in the allowance for credit losses by class of financing receivable for the three and six months ended June 30, 2020 and 2019: 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 June 30, 2020 Beginning balance - $ 10,881 $ 22,842 $ 13,006 $ 6,213 $ 2,328 $ 9,047 $ 18,005 $ 6,819 $ 89,141 Provision for credit losses (2,663) 12,624 (446) 595 2,171 (1,630) 12,984 404 24,039 Recoveries of loans 807 151 26 24 — 3 — 103 1,114 Loans charged off (147) (18) (123) (21) — — (545) (311) (1,165) Ending balance - $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 Six Months Ended June 30, 2020 Beginning balance - $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 Impact of adopting ASC 5,300 1,533 7,920 3,461 340 1,879 6,822 3,633 30,888 Impact of adopting ASC 82 150 421 (3) — 162 184 (438) 558 Provision for credit losses (834) 23,578 1,218 2,580 3,615 1,408 18,919 1,519 52,003 Recoveries of loans 895 151 50 39 — 17 — 296 1,448 Loans charged off (1,381) (18) (365) (21) — (209) (545) (1,037) (3,576) Initial allowance on loans 11 11 107 3 — 54 443 40 669 Ending balance - $ 8,878 $ 35,599 $ 12,463 $ 6,811 $ 4,499 $ 7,420 $ 30,444 $ 7,015 $ 113,129 Commercial Construction 1-to-4 Residential Multi- Commercial Commercial Consumer Total Three Months Ended June 30, 2019 Beginning balance - $ 5,514 $ 9,758 $ 3,295 $ 731 $ 539 $ 3,098 $ 4,583 $ 2,296 $ 29,814 Provision for loan losses (550) (109) (30) 106 78 409 (105) 1,082 881 Recoveries of loans 38 6 24 21 — 5 — 119 213 Loans charged off (79) — (1) (103) — — — (587) (770) Ending balance - $ 4,923 $ 9,655 $ 3,288 $ 755 $ 617 $ 3,512 $ 4,478 $ 2,910 $ 30,138 Six Months Ended June 30, 2019 Beginning balance - $ 5,348 $ 9,729 $ 3,428 $ 811 $ 566 $ 3,132 $ 4,149 $ 1,769 $ 28,932 Provision for loan losses (217) (81) (95) 33 51 288 329 1,964 2,272 Recoveries of loans 50 7 37 46 — 92 — 343 575 Loans charged off (258) — (82) (135) — — — (1,166) (1,641) Ending balance - $ 4,923 $ 9,655 $ 3,288 $ 755 $ 617 $ 3,512 $ 4,478 $ 2,910 $ 30,138 |
Allocation of Allowance for Loan Losses by Loan Category Broken Out Between Loans Individually and Collectively Evaluated for Impairment | The following table provides the amount of the allowance for credit losses by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019: December 31, 2019 Commercial Construction 1-to-4 Residential Multi- Commercial Commercial Consumer Total Amount of allowance Individually evaluated for $ 241 $ — $ 8 $ 9 $ — $ 238 $ 399 $ — $ 895 Collectively evaluated for 4,457 10,192 2,940 743 544 3,853 3,909 1,933 28,571 Acquired with deteriorated 107 2 164 — — 18 313 1,069 1,673 Ending balance - $ 4,805 $ 10,194 $ 3,112 $ 752 $ 544 $ 4,109 $ 4,621 $ 3,002 $ 31,139 |
Amount of Loans by Loan Category Broken Between Loans Individually and Collectively Evaluated for Impairment | The following table provides the amount of loans by class of financing receivable for loans individually evaluated for impairment, loans collectively evaluated for impairment and loans acquired with deteriorated credit quality as of December 31, 2019: December 31, 2019 Commercial Construction 1-to-4 Residential Multi- Commercial Commercial Consumer Total Loans, net of unearned Individually evaluated $ 9,026 $ 2,061 $ 1,347 $ 579 $ — $ 2,993 $ 7,755 $ 49 $ 23,810 Collectively evaluated 1,023,326 546,156 689,769 220,878 69,429 621,386 902,792 254,944 4,328,680 Acquired with deteriorated 1,684 2,884 19,338 73 — 5,891 10,197 17,085 57,152 Ending balance - $ 1,034,036 $ 551,101 $ 710,454 $ 221,530 $ 69,429 $ 630,270 $ 920,744 $ 272,078 $ 4,409,642 |
Financing Receivable, Amortized Costs Basis By Origination Year | The following table presents the credit quality of our loan portfolio by year of origination as of June 30, 2020. Revolving loans are presented separately. Management considers the guidance in ASC 310-20 when determining whether a modification, extension, or renewal constitutes a current period origination. Generally, current period renewals of credit are reunderwritten at the point of renewal and considered current period originations for the purposes of the table below. June 30, 2020 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial and industrial Pass $ 338,964 $ 168,783 $ 69,250 $ 41,722 $ 32,820 $ 31,449 $ 481,897 $ 1,164,885 Watch 2,791 10,761 33,603 3,928 5,772 4,414 39,740 101,009 Substandard 250 2,535 4,584 3,251 1,414 3,696 7,806 23,536 Doubtful 16 — — — — — 200 216 Total 342,021 182,079 107,437 48,901 40,006 39,559 529,643 1,289,646 Construction Pass 62,335 170,746 74,183 32,656 32,790 71,149 90,620 534,479 Watch 58 10 229 10,126 740 2,807 — 13,970 Substandard — 1,170 409 11 — 3,205 208 5,003 Doubtful — 167 — — — — — 167 Total 62,393 172,093 74,821 42,793 33,530 77,161 90,828 553,619 Residential real estate: 1-to-4 family mortgage Pass 99,613 172,190 137,308 89,665 62,505 142,668 — 703,949 Watch 913 603 608 2,139 3,537 12,938 — 20,738 Substandard 353 1,222 1,891 3,674 1,640 7,664 — 16,444 Doubtful — — 56 — 325 424 — 805 Total 100,879 174,015 139,863 95,478 68,007 163,694 — 741,936 Residential line of credit Pass 56 — — — 284 3,297 230,334 233,971 Watch — — — — — — 788 788 Substandard — — — — — 77 1,692 1,769 Doubtful — — — — — — 446 446 Total 56 — — — 284 3,374 233,260 236,974 Multi-family mortgage Pass 20,796 14,346 6,758 42,196 2,965 28,030 — 115,091 Watch — — — — — 58 — 58 Substandard — — — — — — — — Doubtful — — — — — — — — Total 20,796 14,346 6,758 42,196 2,965 28,088 — 115,149 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total Commercial real estate: Owner occupied Pass 49,663 129,755 84,301 69,678 62,755 161,851 48,023 606,026 Watch 997 7,758 1,530 24,105 5,634 14,847 7,716 62,587 Substandard — 1,804 314 3,959 58 6,846 1,651 14,632 Doubtful — — — — — — — — Total 50,660 139,317 86,145 97,742 68,447 183,544 57,390 683,245 Non-owner occupied Pass 34,657 139,867 202,792 132,792 164,798 175,966 24,834 875,706 Watch 1,496 2,193 10,707 4,973 3,769 5,090 94 28,322 Substandard — — 273 — 383 18,425 83 19,164 Doubtful — — — — — — — — Total 36,153 142,060 213,772 137,765 168,950 199,481 25,011 923,192 Consumer and other loans Pass 43,369 60,546 45,556 29,342 43,123 31,011 8,110 261,057 Watch 74 487 1,291 1,515 3,450 8,567 587 15,971 Substandard 18 95 596 691 733 2,066 413 4,612 Doubtful — 253 344 524 56 445 — 1,622 Total 43,461 61,381 47,787 32,072 47,362 42,089 9,110 283,262 Total Loans Pass 649,453 856,233 620,148 438,051 402,040 645,421 883,818 4,495,164 Watch 6,329 21,812 47,968 46,786 22,902 48,721 48,925 243,443 Substandard 621 6,826 8,067 11,586 4,228 41,979 11,853 85,160 Doubtful 16 420 400 524 381 869 646 3,256 Total $ 656,419 $ 885,291 $ 676,583 $ 496,947 $ 429,551 $ 736,990 $ 945,242 $ 4,827,023 |
Credit Quality Indicators by Portfolio Class | The following table shows credit quality indicators by class of financing receivable at December 31, 2019. December 31, 2019 Pass Watch Substandard Total Loans, excluding purchased credit impaired loans Commercial and industrial $ 946,247 $ 66,910 $ 19,195 $ 1,032,352 Construction 541,201 4,790 2,226 548,217 Residential real estate: 1-to-4 family mortgage 666,177 11,380 13,559 691,116 Residential line of credit 218,086 1,343 2,028 221,457 Multi-family mortgage 69,366 63 — 69,429 Commercial real estate: Owner occupied 576,737 30,379 17,263 624,379 Non-owner occupied 876,670 24,342 9,535 910,547 Consumer and other 248,632 3,304 3,057 254,993 Total loans, excluding purchased credit impaired loans $ 4,143,116 $ 142,511 $ 66,863 $ 4,352,490 Purchased credit impaired loans Commercial and industrial $ — $ 1,224 $ 460 $ 1,684 Construction — 2,681 203 2,884 Residential real estate: 1-to-4 family mortgage — 15,091 4,247 19,338 Residential line of credit — — 73 73 Multi-family mortgage — — — — Commercial real estate: Owner occupied — 4,535 1,356 5,891 Non-owner occupied — 6,617 3,580 10,197 Consumer and other — 13,521 3,564 17,085 Total purchased credit impaired loans — 43,669 13,483 57,152 Total loans $ 4,143,116 $ 186,180 $ 80,346 $ 4,409,642 |
Past Due Loans | The following table represents an analysis of the aging by class of financing receivable as of June 30, 2020: June 30, 2020 30-89 days 90 days or Non-accrual Loans current Total Commercial and industrial $ 1,057 $ 111 $ 2,308 $ 1,286,170 $ 1,289,646 Construction 769 465 1,482 550,903 553,619 Residential real estate: 1-to-4 family mortgage 5,658 4,712 5,392 726,174 741,936 Residential line of credit 398 277 704 235,595 236,974 Multi-family mortgage 58 — — 115,091 115,149 Commercial real estate: Owner occupied 43 — 2,644 680,558 683,245 Non-owner occupied 169 226 13,113 909,684 923,192 Consumer and other 3,172 621 2,770 276,699 283,262 Total $ 11,324 $ 6,412 $ 28,413 $ 4,780,874 $ 4,827,023 The following tables provide the amortized cost basis of loans on non-accrual status, as well as any related allowance and interest income, by class of financing receivable as of and for the three and six months ended June 30, 2020: June 30, 2020 u End of period amortized cost Beginning of Non-accrual Non-accrual Related Commercial and industrial $ 5,586 $ 1,098 $ 1,210 $ 350 Construction 1,254 1,218 264 47 Residential real estate: 1-to-4 family mortgage 4,585 1,789 3,603 68 Residential line of credit 489 151 553 12 Commercial real estate: Owner occupied 2,285 1,723 921 78 Non-owner occupied 9,460 2,762 10,351 1,625 Consumer and other 1,623 — 2,770 134 Total $ 25,282 $ 8,741 $ 19,672 $ 2,314 Interest Income June 30, 2020 Three Months Ended Six Months Ended Commercial and industrial $ 17 $ 169 Construction 6 33 Residential real estate: 1-to-4 family mortgage 6 13 Residential line of credit — 1 Commercial real estate: Owner occupied 43 64 Non-owner occupied 109 128 Consumer and other 24 24 Total $ 205 $ 432 The following disclosures are presented in accordance with GAAP in effect prior to the adoption of CECL. The Company has included these disclosures to address the applicable prior periods presented. The following table provides the period-end amounts of loans that are past due, loans not accruing interest and loans current on payments accruing interest by category at December 31, 2019: December 31, 2019 30-89 90 days or more Non-accrual Purchased Loans current Total Commercial and industrial $ 1,918 $ 291 $ 5,587 $ 1,684 $ 1,024,556 $ 1,034,036 Construction 1,021 42 1,087 2,884 546,067 551,101 Residential real estate: 1-to-4 family mortgage 10,738 3,965 3,332 19,338 673,081 710,454 Residential line of credit 658 412 416 73 219,971 221,530 Multi-family mortgage 63 — — — 69,366 69,429 Commercial real estate: Owner occupied 1,375 — 1,793 5,891 621,211 630,270 Non-owner occupied 327 — 7,880 10,197 902,340 920,744 Consumer and other 2,377 833 967 17,085 250,816 272,078 Total $ 18,477 $ 5,543 $ 21,062 $ 57,152 $ 4,307,408 $ 4,409,642 |
Impaired Loans Recognized | Impaired loans recognized in conformity with ASC 310 at December 31, 2019 segregated by class, were as follows: December 31, 2019 Recorded Unpaid Related With a related allowance recorded: Commercial and industrial $ 6,080 $ 8,350 $ 241 Residential real estate: 1-to-4 family mortgage 264 324 8 Residential line of credit 320 320 9 Commercial real estate: Owner occupied 756 1,140 238 Non-owner occupied 6,706 6,747 399 Consumer and other — — — Total $ 14,126 $ 16,881 $ 895 With no related allowance recorded: Commercial and industrial $ 2,946 $ 3,074 $ — Construction 2,061 2,499 — Residential real estate: 1-to-4 family mortgage 1,083 1,449 — Residential line of credit 259 280 — Commercial real estate: Owner occupied 2,237 2,627 — Non-owner occupied 1,049 1,781 — Consumer and other 49 49 — Total $ 9,684 $ 11,759 $ — Total impaired loans $ 23,810 $ 28,640 $ 895 Average recorded investment and interest income on a cash basis recognized during the three and six months ended June 30, 2019 on impaired loans, segregated by class, were as follows: Three Months Ended Six Months Ended June 30, 2019 Average recorded Interest income Average recorded Interest income With a related allowance recorded: Commercial and industrial $ 3,161 $ 67 $ 1,877 $ 105 Residential real estate: 1-to-4 family mortgage 336 9 206 11 Commercial real estate: Owner occupied 187 4 373 6 Non-owner occupied 5,570 34 5,588 34 Consumer and other 250 19 250 19 Total $ 9,504 $ 133 $ 8,294 $ 175 With no related allowance recorded: Commercial and industrial $ 819 $ 11 $ 1,004 $ 25 Construction 1,218 4 1,219 52 Residential real estate: 1-to-4 family mortgage 528 18 715 26 Residential line of credit 607 — 427 2 Commercial real estate: Owner occupied 1,830 34 1,922 62 Non-owner occupied 1,049 — 1,049 — Consumer and other 70 1 71 3 Total $ 6,121 $ 68 $ 6,407 $ 170 Total impaired loans $ 15,625 $ 201 $ 14,701 $ 345 |
Schedule of Changes Value of Accretable Yield of PCI Loans | The following table presents changes in the value of the accretable yield for PCI loans for the periods indicated. Three Months Ended Six Months Ended 2019 2019 Balance at the beginning of period $ (14,814) $ (16,587) Additions through business combinations (1,167) (1,167) Principal reductions and other reclassifications from nonaccretable difference 30 250 Accretion 1,705 3,888 Changes in expected cash flows (616) (1,246) Balance at end of period $ (14,862) $ (14,862) |
Financial Effect of TDRs | The following tables present the financial effect of TDRs recorded during the periods indicated. There were no new TDRs added during the three months ended June 30, 2019. Three Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-to-4 family mortgage 1 13 13 — Total 3 $ 1,954 $ 1,954 $ — Six Months Ended June 30, 2020 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 1 $ 1,153 $ 1,153 $ — Commercial real estate: Owner occupied 1 788 788 — Residential real estate: 1-to-4 family mortgage 2 77 77 — Total 4 $ 2,018 $ 2,018 $ — Six Months Ended June 30, 2019 Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Charge offs and specific reserves Commercial and industrial 2 $ 3,188 $ 3,188 $ — Total 2 $ 3,188 $ 3,188 $ — |
Allowance for Credit Losses, Individually Assessed Allowance | For loans for which the repayment (based on the Company's assessment) is expected to be provided substantially through the operation or sale of collateral and the borrower is experiencing financial difficulty, the following table presents the loans and the corresponding individually assessed allowance for credit losses by class of financing receivable. June 30, 2020 Type of Collateral Real Estate Financial Assets and Equipment Individually assessed allowance for credit loss Commercial and industrial $ — $ 3,062 $ 543 Construction 1,232 — — Residential real estate: 1-to-4 family mortgage 100 — — Residential line of credit 471 — 9 Multi-family mortgage — — — Commercial real estate: Owner occupied 1,461 — 35 Non-owner occupied 8,500 — 1,563 Consumer and other — 336 35 Total $ 11,764 $ 3,398 $ 2,185 |
Financing Receivable, Deferral Program | The following table outlines the Company's recorded investment and percentage of loans held for investment by class of financing receivable for Company executed deferrals in connection with COVID-19 relief. These deferrals typically ranged from sixty June 30, 2020 % of Loans Commercial and industrial $ 164,804 12.8 % Construction 82,514 14.9 % Residential real estate: 1-to-4 family mortgage 83,590 11.3 % Residential line of credit 14,200 6.0 % Multi-family mortgage 45,321 39.4 % Commercial real estate: Owner occupied 190,044 27.8 % Non-owner occupied 321,707 34.8 % Consumer and other 16,078 5.7 % Total $ 918,258 19.0 % |
Other real estate owned (Tables
Other real estate owned (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Real Estate [Abstract] | |
Summary of Other Real Estate Owned | The following table summarizes the other real estate owned for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Balance at beginning of period $ 17,072 $ 12,828 $ 18,939 $ 12,643 Transfers from loans 641 924 1,006 2,030 Transfers from (to) premises and equipment — 2,640 (841) 2,640 Proceeds from sale of other real estate owned (2,708) (1,148) (4,150) (1,864) Gain on sale of other real estate owned 170 329 345 322 Loans provided for sales of other real estate owned — — — (166) Write-downs and partial liquidations (84) (52) (208) (84) Balance at end of period $ 15,091 $ 15,521 $ 15,091 $ 15,521 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in goodwill during the six months ended June 30, 2020 and 2019. Goodwill Balance at December 31, 2018 $ 137,190 Addition from acquisition of Atlantic Capital branches 31,396 Relief of goodwill due to sale of TPO mortgage delivery channel (100) Balance at June 30, 2019 $ 168,486 Balance at December 31, 2019 $ 169,051 Addition from acquisition of Farmers National (see Note 2) 6,390 Balance at June 30, 2020 $ 175,441 |
Schedule of Core Deposit and Other Intangibles | The composition of core deposit and other intangibles as of June 30, 2020 and December 31, 2019 are as follows: Core deposit and other intangibles Gross Carrying Amount Accumulated Amortization Net Carrying Amount June 30, 2020 Core deposit intangible $ 52,165 $ (36,080) $ 16,085 Customer base trust intangible 1,600 (467) 1,133 Manufactured housing servicing intangible 1,088 (635) 453 Total core deposit and other intangibles $ 54,853 $ (37,182) $ 17,671 December 31, 2019 Core deposit intangible $ 49,675 $ (33,861) $ 15,814 Customer base trust intangible 1,600 (387) 1,213 Manufactured housing servicing intangible 1,088 (526) 562 Total core deposit and other intangibles $ 52,363 $ (34,774) $ 17,589 |
Schedule of Estimated Aggregate Amortization Expense of Core Deposit and Other Intangibles | The estimated aggregate future amortization expense of core deposit and other intangibles is as follows: 2020 $ 2,287 2021 4,089 2022 3,350 2023 2,574 2024 2,015 Thereafter 3,356 $ 17,671 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Lease, Cost | Information related to the Company's operating leases is presented below: June 30, December 31, 2020 2019 Right-of-use assets $ 30,447 $ 32,539 Lease liabilities $ 33,803 $ 35,525 Weighted average remaining lease term (in years) 13.93 14.07 Weighted average discount rate 3.44 % 3.40 % The components of lease expense included in Occupancy and equipment expense were as follows: Three Months Ended Six Months Ended June 30, June 30, 2020 2019 2020 2019 Operating lease cost (1) $ 1,389 $ 1,421 $ 2,678 $ 2,533 Short-term lease cost 30 260 166 484 Variable lease cost 160 99 298 199 Total lease cost $ 1,579 $ 1,780 $ 3,142 $ 3,216 (1) Includes amortization of favorable lease intangible |
Lessee, Operating Lease, Liability, Maturity | A maturity analysis of operating lease liabilities and a reconciliation of undiscounted cash flows to the total operating lease liability is as follows: June 30, 2020 Lease payments due: June 30, 2021 $ 5,432 June 30, 2022 4,807 June 30, 2023 4,075 June 30, 2024 3,624 June 30, 2025 3,057 Thereafter 22,713 Total undiscounted future minimum lease payments 43,708 Discount on cash flows (9,905) Total lease liability $ 33,803 |
Mortgage servicing rights (Tabl
Mortgage servicing rights (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Carrying value at beginning of period $ 62,581 $ 64,031 $ 75,521 $ 88,829 Capitalization 12,267 11,212 20,063 19,932 Sales — — — (29,160) Change in fair value: Due to pay-offs/pay-downs (7,277) (3,305) (11,920) (5,100) Due to change in valuation inputs or assumptions (7,063) (5,558) (23,156) (8,121) Carrying value at end of period $ 60,508 $ 66,380 $ 60,508 $ 66,380 |
Schedule of Servicing Income and Expense Included in Mortgage Banking Income | The following table summarizes servicing income and expense, which are included in mortgage banking income and other noninterest expense, respectively, within the Mortgage Segment operating results for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Servicing income: Servicing income $ 5,113 $ 4,052 $ 10,131 $ 8,803 Change in fair value of mortgage servicing rights (14,340) (8,863) (35,076) (13,221) Change in fair value of derivative hedging instruments 1,102 5,063 15,970 7,540 Servicing income (8,125) 252 (8,975) 3,122 Servicing expenses 1,992 1,485 3,393 3,229 Net servicing (loss) income (1) $ (10,117) $ (1,233) $ (12,368) $ (107) (1) Excludes benefit of custodial service related noninterest-bearing deposits held by the Bank. |
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 June 30, 2020 and December 31, 2019 are as follows: June 30, December 31, 2020 2019 Unpaid principal balance $ 7,700,862 $ 6,734,496 Weighted-average prepayment speed (CPR) 15.60 % 10.05 % Estimated impact on fair value of a 10% increase $ (3,755) $ (2,839) Estimated impact on fair value of a 20% increase $ (7,170) $ (5,474) Discount rate 10.75 % 9.68 % Estimated impact on fair value of a 100 bp increase $ (2,230) $ (3,086) Estimated impact on fair value of a 200 bp increase $ (4,300) $ (5,932) Weighted-average coupon interest rate 3.94 % 4.20 % Weighted-average servicing fee (basis points) 28 29 Weighted-average remaining maturity (in months) 332 335 |
Income taxes (Tables)
Income taxes (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Allocation of Federal and State Income Taxes between Current and Deferred Portions | An allocation of federal and state income taxes between current and deferred portions is presented below: Three Months Ended June 30, 2020 2019 Current $ 15,747 $ 6,546 Deferred (8,292) (232) Total $ 7,455 $ 6,314 Six Months Ended June 30, 2020 2019 Current $ 23,915 $ 16,740 Deferred (16,380) (4,451) Total $ 7,535 $ 12,289 |
Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes | Federal income tax expense differs from the statutory federal rate of 21% for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, 2020 2019 Federal taxes calculated at statutory rate $ 6,369 21.0 % $ 5,251 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,298 4.3 % 1,205 4.8 % Benefit of equity based compensation 22 0.1 % (1) — % Municipal interest income, net of interest disallowance (310) (1.0) % (223) (0.9) % Bank owned life insurance (17) (0.1) % (15) — % Merger costs 32 0.1 % — — % Other 61 0.2 % 97 0.4 % Income tax expense, as reported $ 7,455 24.6 % $ 6,314 25.3 % Six Months Ended June 30, 2020 2019 Federal taxes calculated at statutory rate $ 6,542 21.0 % $ 10,619 21.0 % Increase (decrease) resulting from: State taxes, net of federal benefit 1,166 3.7 % 2,343 4.6 % Benefit of equity based compensation 161 0.5 % (393) (0.8) % Municipal interest income, net of interest disallowance (574) (1.8) % (439) (0.9) % Bank owned life insurance (35) (0.1) % (27) — % Merger costs 163 0.5 % — — % Other 112 0.4 % 186 0.4 % Income tax expense, as reported $ 7,535 24.2 % $ 12,289 24.3 % |
Schedule of Net Deferred Tax liability | The components of the net deferred tax liability at June 30, 2020 and December 31, 2019, are as follows: June 30, December 31, 2020 2019 Deferred tax assets: Allowance for credit losses $ 31,170 $ 8,113 Operating lease liability 8,924 9,373 Amortization of core deposit intangible 986 1,386 Deferred compensation 4,623 5,231 Unrealized loss on debt securities 54 54 Unrealized loss on equity securities 51 60 Unrealized loss on cash flow hedges 345 — Other 3,041 2,388 Subtotal 49,194 26,605 Deferred tax liabilities: FHLB stock dividends (550) (550) Operating lease - right of use asset (8,084) (8,641) Depreciation (5,802) (5,078) Unrealized gain on cash flow hedges — (203) Unrealized gain on debt securities (7,758) (3,051) Mortgage servicing rights (15,766) (19,678) Goodwill (10,080) (8,859) Other (1,234) (1,035) Subtotal (49,274) (47,095) Net deferred tax liability $ (80) $ (20,490) |
Commitments and contingencies (
Commitments and contingencies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial instruments with Off-Balance Sheet Credit Risk | June 30, December 31, 2020 2019 Commitments to extend credit, excluding interest rate lock commitments $ 1,146,158 $ 1,086,173 Letters of credit 17,881 19,569 Balance at end of period $ 1,164,039 $ 1,105,742 |
Summary of Allowance of Credit Losses on Unfunded Commitments | The table below presents activity within the allowance for credit losses on unfunded commitments: For the Three Months Ended June 30, For the Six Months Ended June 30, 2020 2020 Balance at beginning of period $ 4,618 $ — Impact of CECL adoption on provision for credit losses on unfunded commitments — 2,947 Increase from unfunded commitments acquired in business combination — 70 Provision for credit losses on unfunded commitments 1,882 3,483 Balance at end of period $ 6,500 $ 6,500 |
Summary of Allowance for Loan Repurchases or Indemnifications | The following table summarizes the activity in the repurchase reserve: Three Months Ended June 30, For the Six Months Ended June 30, 2020 2019 2020 2019 Balance at beginning of period $ 3,829 $ 3,332 $ 3,529 $ 3,273 Provision for loan repurchases or indemnifications 855 89 1,227 148 Recoveries on previous losses (83) (14) (155) (14) Balance at end of period $ 4,601 $ 3,407 $ 4,601 $ 3,407 |
Derivatives (Tables)
Derivatives (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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: June 30, 2020 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 541,983 $ 41,236 $ 41,068 Forward commitments 1,142,224 — 6,786 Interest rate-lock commitments 1,205,932 37,055 — Futures contracts 248,700 2,253 — Total $ 3,138,839 $ 80,544 $ 47,854 December 31, 2019 Notional Amount Asset Liability Not designated as hedging: Interest rate contracts $ 440,556 $ 14,929 $ 14,929 Forward commitments 684,437 — 866 Interest rate-lock commitments 453,198 7,052 — Futures contracts 389,000 — 1,623 Total $ 1,967,191 $ 21,981 $ 17,418 June 30, 2020 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 2,215 December 31, 2019 Notional Amount Asset Liability Designated as hedging: Interest rate swaps $ 30,000 $ — $ 515 |
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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Not designated as hedging instruments (included in Interest rate lock commitments $ 9,541 $ 1,875 $ 30,003 $ 3,755 Forward commitments (13,993) (5,264) (40,450) (9,668) Futures contracts 631 4,107 11,542 5,978 Option contracts — 31 — 44 Total $ (3,821) $ 749 $ 1,095 $ 109 Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Designated as hedging: Amount of gain reclassified from other comprehensive income and recognized in interest expense on borrowings, net of taxes of $(52), $(42), $(104), and $(75) $ 148 $ 119 $ 295 $ 213 (Loss) gain included in interest expense on borrowings (62) 39 (74) 94 Total $ 86 $ 158 $ 221 $ 307 The following discloses the amount included in other comprehensive income, net of tax, for derivative instruments designated as cash flow hedges for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Designated as hedging: Amount of loss recognized in other comprehensive income, net of taxes $40, $201, $443, and $317 $ (112) $ (564) $ (1,257) $ (895) |
Offsetting Assets | The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Gross amounts recognized $ 4,562 $ 331 $ 41,059 $ 14,682 Gross amounts offset in the consolidated — — — — Net amounts presented in the consolidated 4,562 331 41,059 14,682 Gross amounts not offset in the Less: financial instruments 1,054 139 1,054 139 Less: financial collateral pledged — — 40,005 14,543 Net amounts $ 3,508 $ 192 $ — $ — |
Offsetting Liabilities | The following table presents the Company's gross derivative positions as recognized in the consolidated balance sheets as well as the net derivative positions, including collateral pledged to the extent the application of such collateral did not reduce the net derivative liability position below zero, had the Company elected to offset those instruments subject to an enforceable master netting agreement: Offsetting Derivative Assets Offsetting Derivative Liabilities June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Gross amounts recognized $ 4,562 $ 331 $ 41,059 $ 14,682 Gross amounts offset in the consolidated — — — — Net amounts presented in the consolidated 4,562 331 41,059 14,682 Gross amounts not offset in the Less: financial instruments 1,054 139 1,054 139 Less: financial collateral pledged — — 40,005 14,543 Net amounts $ 3,508 $ 192 $ — $ — |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Financial Instruments | The following table contains the estimated fair values and the related carrying values of the Company's financial instruments. Items which are not financial instruments are not included. Fair Value June 30, 2020 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 717,592 $ 717,592 $ — $ — $ 717,592 Investment securities 751,767 — 751,767 — 751,767 Loans, net 4,713,894 — — 4,755,504 4,755,504 Loans held for sale 435,479 — 435,479 — 435,479 Interest receivable 26,587 45 3,533 23,009 26,587 Mortgage servicing rights 60,508 — — 60,508 60,508 Derivatives 80,544 — 80,544 — 80,544 Financial liabilities: Deposits: Without stated maturities $ 4,761,306 $ 4,761,306 $ — $ — $ 4,761,306 With stated maturities 1,191,495 — 1,204,271 — 1,204,271 Securities sold under agreement to 32,732 32,732 — — 32,732 Federal Home Loan Bank advances 250,000 — 258,901 — 258,901 Subordinated debt 30,930 — 23,396 — 23,396 Other borrowings 15,000 — 15,000 — 15,000 Interest payable 7,079 207 6,872 — 7,079 Derivatives 50,069 — 50,069 — 50,069 Fair Value December 31, 2019 Carrying amount Level 1 Level 2 Level 3 Total Financial assets: Cash and cash equivalents $ 232,681 $ 232,681 $ — $ — $ 232,681 Investment securities 691,676 — 691,676 — 691,676 Loans, net 4,378,503 — — 4,363,903 4,363,903 Loans held for sale 262,518 — 262,518 — 262,518 Interest receivable 17,083 — 3,282 13,801 17,083 Mortgage servicing rights 75,521 — — 75,521 75,521 Derivatives 21,981 — 21,981 — 21,981 Financial liabilities: Deposits: Without stated maturities $ 3,743,085 $ 3,743,085 $ — $ — $ 3,743,085 With stated maturities 1,191,853 — 1,200,145 — 1,200,145 Securities sold under agreement to 23,745 23,745 — — 23,745 Federal Home Loan Bank advances 250,000 — 250,213 — 250,213 Subordinated debt 30,930 — 29,706 — 29,706 Interest payable 6,465 376 6,089 — 6,465 Derivatives 17,933 — 17,933 — 17,933 |
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 June 30, 2020 are presented in the following table: June 30, 2020 Quoted prices Significant Significant Total Recurring valuations: Financial assets: Available-for-sale securities: U.S. government agency securities $ — $ 3,024 $ — $ 3,024 Mortgage-backed securities — 454,606 — 454,606 Municipals, tax-exempt — 266,052 — 266,052 Treasury securities — 22,771 — 22,771 Corporate securities — 985 — 985 Equity securities — 4,329 — 4,329 Total $ — $ 751,767 $ — $ 751,767 Loans held for sale $ — $ 435,479 $ — $ 435,479 Mortgage servicing rights — — 60,508 60,508 Derivatives — 80,544 — 80,544 Financial Liabilities: Derivatives — 50,069 — 50,069 The balances and levels of the assets measured at fair value on a recurring basis at December 31, 2019 are presented in the following table: At December 31, 2019 Quoted prices in active markets for identical assets (liabilities) (level 1) Significant Significant unobservable Total Recurring valuations: Financial assets: Available-for-sale securities: Mortgage-backed securities $ — $ 490,676 $ — $ 490,676 Municipals, tax-exempt — 189,235 — 189,235 Treasury securities — 7,448 — 7,448 Corporate securities — 1,022 — 1,022 Equity securities — 3,295 — 3,295 Total $ — $ 691,676 $ — $ 691,676 Loans held for sale $ — $ 262,518 $ — $ 262,518 Mortgage servicing rights — — 75,521 75,521 Derivatives — 21,981 — 21,981 Financial Liabilities: Derivatives — 17,933 — 17,933 |
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 June 30, 2020 are presented in the following table: At June 30, 2020 Quoted prices Significant Significant Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 3,407 $ 3,407 Collateral dependent loans: Commercial and industrial $ — $ — $ 3,062 $ 3,062 Residential real estate: 1-4 family mortgage — — 100 100 Residential line of credit — — 471 311 Commercial real estate: Owner occupied — — 1,461 1,461 Non-owner occupied — — 8,500 8,500 Consumer and other — — 336 336 Total collateral dependent loans $ — $ — $ 15,162 $ 15,162 The balances and levels of the assets measured at fair value on a non-recurring basis at December 31, 2019 are presented in the following table: At December 31, 2019 Quoted prices Significant Significant unobservable Total Non-recurring valuations: Financial assets: Other real estate owned $ — $ — $ 9,774 $ 9,774 Impaired Loans (1) : Commercial and industrial $ — $ — $ 6,481 $ 6,481 Residential real estate: 1-4 family mortgage — — 378 378 Residential line of credit — — 321 321 Commercial real estate: Owner occupied — — 951 951 Non-owner occupied — — 2,560 2,560 Total $ — $ — $ 10,691 $ 10,691 (1) Includes both impaired non-purchased loans and collateral-dependent PCI loans. |
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 June 30, 2020 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Value Valuation technique Significant Unobservable inputs Range of Collateral dependent loans $ 15,162 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 3,407 Appraised value of property less costs to sell Discount for costs to sell 0%-15% The following table presents information as of December 31, 2019 about significant unobservable inputs (Level 3) used in the valuation of assets measured at fair value on a nonrecurring basis: Financial instrument Fair Value Valuation technique Significant Unobservable inputs Range of Impaired loans (1) $ 10,691 Valuation of collateral Discount for comparable sales 0%-30% Other real estate owned $ 9,774 Appraised value of property less costs to sell Discount for costs to sell 0%-15% |
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 June 30, 2020 and December 31, 2019: June 30, 2020 Aggregate Aggregate Difference Mortgage loans held for sale measured at fair value $ 435,479 $ 413,963 $ 21,516 Past due loans of 90 days or more — — — Nonaccrual loans — — — December 31, 2019 Mortgage loans held for sale measured at fair value $ 262,518 $ 254,868 $ 7,650 Past due loans of 90 days or more — — — Nonaccrual loans — — — |
Segment reporting (Tables)
Segment reporting (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Financial Information | The following tables provide segment financial information for the three and six months ended June 30, 2020 and 2019 as follows: Three Months Ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 55,350 $ (13) $ 55,337 Provisions for credit losses (1) 25,921 — 25,921 Mortgage banking income 16,940 68,466 85,406 Change in fair value of mortgage servicing rights, net of hedging (2) — (13,238) (13,238) Other noninterest income 9,323 — 9,323 Depreciation and amortization 1,503 116 1,619 Amortization of intangibles 1,205 — 1,205 Other noninterest mortgage banking expense 11,542 26,881 38,423 Other noninterest expense (3) 39,332 — 39,332 Income before income taxes $ 2,110 $ 28,218 $ 30,328 Income tax expense 7,455 Net income 22,873 Total assets $ 6,751,881 $ 503,655 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Included $1,882 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statement of income. (3) Included $1,586 of merger costs in the Banking segment primarily related to the integration of Farmers National. Three Months Ended June 30, 2019 Mortgage Consolidated Net interest income $ 56,979 $ 44 $ 57,023 Provision for credit losses 881 — 881 Mortgage banking income 5,451 22,875 28,326 Change in fair value of mortgage servicing rights, net of hedging (1) — (3,800) (3,800) Other noninterest income 8,453 — 8,453 Depreciation and amortization 1,134 144 1,278 Amortization of intangibles 1,254 — 1,254 Other noninterest mortgage banking expense 4,172 17,691 21,863 Other noninterest expense (2) 38,895 829 39,724 Income before income taxes 24,547 455 25,002 Income tax expense 6,314 Net income 18,688 Total assets $ 5,552,893 $ 387,509 $ 5,940,402 Goodwill 168,486 — 168,486 (1) Included in mortgage banking income in the Company's consolidated statement of income. (2) Included $3,783 in merger costs in the Banking segment related to the Atlantic Capital branch acquisition and $829 in mortgage restructuring charges in the Mortgage segment. Six Months Ended June 30, 2020 Banking Mortgage Consolidated Net interest income $ 111,583 $ 3 $ 111,586 Provision for credit losses (1) 55,486 — 55,486 Mortgage banking income 27,591 96,428 124,019 Change in fair value of mortgage servicing rights, net of hedging (2) — (19,106) (19,106) Other noninterest income 19,278 — 19,278 Depreciation and amortization 2,995 236 3,231 Amortization of intangibles 2,408 — 2,408 Other noninterest mortgage banking expense 18,717 44,328 63,045 Other noninterest expense (3) 80,454 — 80,454 (Loss) income before income taxes $ (1,608) $ 32,761 $ 31,153 Income tax expense 7,535 Net income $ 23,618 Total assets $ 6,751,881 $ 503,655 $ 7,255,536 Goodwill 175,441 — 175,441 (1) Included $3,483 in provision for credit losses on unfunded commitments. (2) Included in mortgage banking income in the Company's consolidated statement of income. (3) Included $4,636 of merger costs in the Banking segment related to the Farmers National acquisition and the Franklin merger. Six Months Ended June 30, 2019 Banking Mortgage Consolidated Net interest income $ 109,972 $ 67 $ 110,039 Provision for credit losses 2,272 — 2,272 Mortgage banking income 9,837 41,391 51,228 Change in fair value of mortgage servicing rights, net of hedging (1) — (5,681) (5,681) Other noninterest income 16,471 — 16,471 Depreciation and amortization 2,176 274 2,450 Amortization of intangibles 1,983 — 1,983 Other noninterest mortgage banking expense 7,003 35,047 42,050 Other noninterest expense (2) 70,854 1,883 72,737 Income (loss) before income taxes $ 51,992 $ (1,427) $ 50,565 Income tax expense 12,289 Net income $ 38,276 Total assets $ 5,552,893 $ 387,509 $ 5,940,402 Goodwill 168,486 — 168,486 (1) Included in mortgage banking income in the Company's consolidated statement of income. (2) Includes $4,404 in merger costs in the Banking segment related to the Atlantic Capital branch acquisition and $1,883 in mortgage restructuring charges in the Mortgage segment. |
Minimum capital requirements (T
Minimum capital requirements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [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 To be well capitalized under prompt corrective action provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Total Capital (to risk-weighted assets) FB Financial Corporation $ 735,555 13.4 % $ 439,137 8.0 % $ 576,368 10.5 % N/A N/A FirstBank 742,321 13.5 % 439,894 8.0 % 577,361 10.5 % $ 549,867 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 666,090 12.1 % $ 330,293 6.0 % $ 467,914 8.5 % N/A N/A FirstBank 672,856 12.3 % 328,222 6.0 % 464,982 8.5 % $ 437,630 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 666,090 9.7 % $ 274,676 4.0 % N/A N/A N/A N/A FirstBank 672,856 9.7 % 277,466 4.0 % N/A N/A $ 346,833 5.0 % Common Equity Tier 1 Capital (to risk- FB Financial Corporation $ 636,090 11.6 % $ 246,759 4.5 % $ 383,847 7.0 % N/A N/A FirstBank 672,856 12.3 % 246,167 4.5 % 382,926 7.0 % $ 355,574 6.5 % Actual For capital adequacy Minimum Capital To be well capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total Capital (to risk-weighted assets) FB Financial Corporation $ 633,549 12.2 % $ 415,442 8.0 % $ 545,268 10.5 % N/A N/A FirstBank 623,432 12.1 % 412,186 8.0 % 540,995 10.5 % $ 515,233 10.0 % Tier 1 Capital (to risk-weighted assets) FB Financial Corporation $ 602,410 11.6 % $ 311,591 6.0 % $ 441,421 8.5 % N/A N/A FirstBank 592,293 11.5 % 309,022 6.0 % 437,782 8.5 % $ 412,030 8.0 % Tier 1 Capital (to average assets) FB Financial Corporation $ 602,410 10.1 % $ 238,578 4.0 % N/A N/A N/A N/A FirstBank 592,293 9.9 % 239,310 4.0 % N/A N/A $ 299,138 5.0 % Common Equity Tier 1 Capital (to risk- FB Financial Corporation $ 572,410 11.1 % $ 232,058 4.5 % $ 360,979 7.0 % N/A N/A FirstBank 592,293 11.5 % 231,767 4.5 % 360,526 7.0 % $ 334,774 6.5 % |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Vested and Unvested Restricted Stock Units Outstanding | The following table summarizes information about vested and unvested restricted stock units as of the dates indicated: Six Months Ended June 30, 2020 2019 Restricted Stock Weighted Restricted Stock Weighted Balance at beginning of period 826,263 $ 23.76 1,140,215 $ 21.96 Grants 132,605 33.92 165,761 34.03 Released and distributed (vested) (132,203) 32.52 (195,755) 25.62 Forfeited/expired (14,826) 34.24 (9,581) 24.72 Balance at end of period 811,839 $ 24.84 1,100,640 $ 25.53 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 is presented below: Loans outstanding at January 1, 2020 $ 30,880 New loans and advances 5,619 Change in related party status 248 Repayments (5,151) Loans outstanding at June 30, 2020 $ 31,596 |
Basis of presentation - Additio
Basis of presentation - Additional Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)branch | |
Class of Stock [Line Items] | |
Number of full-service branches | branch | 72 |
Loans processed | $ 314,678 |
Deferred loans | $ 918,300 |
Payment deferral period | 90 days |
Paycheck Protection Program | |
Class of Stock [Line Items] | |
Loans processed | $ 314,678 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic earnings per common share calculation: | ||||
Net income | $ 22,873 | $ 18,688 | $ 23,618 | $ 38,276 |
Dividends paid on and undistributed earnings allocated to participating securities | 0 | (100) | 0 | (205) |
Earnings attributable to common shareholders | $ 22,873 | $ 18,588 | $ 23,618 | $ 38,071 |
Weighted-average basic shares outstanding (in shares) | 32,094,274 | 30,859,596 | 31,676,004 | 30,823,341 |
Basic earnings per common share (in dollars per share) | $ 0.71 | $ 0.60 | $ 0.75 | $ 1.24 |
Diluted earnings per common share: | ||||
Earnings attributable to common shareholders | $ 22,873 | $ 18,588 | $ 23,618 | $ 38,071 |
Weighted-average basic shares outstanding (in shares) | 32,094,274 | 30,859,596 | 31,676,004 | 30,823,341 |
Weighted-average diluted shares contingently issuable (in shares) | 412,143 | 518,422 | 433,190 | 525,625 |
Weighted-average diluted shares outstanding (in shares) | 32,506,417 | 31,378,018 | 32,109,194 | 31,348,966 |
Diluted earnings per common share (in dollars per share) | $ 0.70 | $ 0.59 | $ 0.74 | $ 1.21 |
Restricted stock units outstanding considered to be antidilutive (in shares) | 352,888 | 352,888 |
Basic of presentation - Balance
Basic of presentation - Balance Sheet Effect (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ 805,216 | $ 782,330 | $ 762,329 | $ 718,759 | $ 694,577 | $ 671,857 | |
ASSETS | |||||||
Loans | 4,827,023 | $ 4,409,642 | 4,409,642 | ||||
Allowance for credit losses | (113,129) | $ (89,141) | (31,139) | (31,139) | (30,138) | $ (29,814) | (28,932) |
Total assets | 7,255,536 | 6,124,921 | $ 5,940,402 | ||||
Liabilities and shareholders' equity | |||||||
Allowance for credit losses on unfunded commitments | 0 | ||||||
Net deferred tax liability | 80 | 20,490 | 20,490 | ||||
Retained earnings | 286,296 | 293,524 | 293,524 | ||||
Total liabilities and shareholders' equity | $ 7,255,536 | 6,124,921 | |||||
Period of adoption, adjusted balance | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | 737,311 | 670,548 | |||||
ASSETS | |||||||
Loans | 4,410,200 | ||||||
Allowance for credit losses | (62,585) | ||||||
Liabilities and shareholders' equity | |||||||
Allowance for credit losses on unfunded commitments | 2,947 | ||||||
Net deferred tax liability | 11,673 | ||||||
Retained earnings | 268,506 | ||||||
Period of adoption, adjustment | |||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||
Stockholders' equity | $ (25,018) | $ (1,309) | |||||
ASSETS | |||||||
Loans | 558 | ||||||
Allowance for credit losses | (31,446) | ||||||
Total assets | (30,888) | ||||||
Liabilities and shareholders' equity | |||||||
Allowance for credit losses on unfunded commitments | 2,947 | ||||||
Net deferred tax liability | (8,817) | ||||||
Retained earnings | (25,018) | ||||||
Total liabilities and shareholders' equity | $ (30,888) |
Mergers and acquisitions - Fran
Mergers and acquisitions - Franklin Financial Network, Inc. Narrative (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020USD ($)branch$ / sharesshares | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | |
Business Acquisition [Line Items] | ||||
Assets assumed in acquisition | $ 7,255,536 | $ 6,124,921 | $ 5,940,402 | |
Loans assumed in acquisition | 4,827,023 | $ 4,409,642 | 4,409,642 | |
Deposits assumed in acquisition | $ 5,952,801 | $ 4,934,938 | ||
Franklin Financial Network, Inc. | ||||
Business Acquisition [Line Items] | ||||
Number of branches acquired | branch | 15 | |||
Assets assumed in acquisition | $ 3,780,000 | |||
Loans assumed in acquisition | 2,790,000 | |||
Deposits assumed in acquisition | $ 3,140,000 | |||
Common stock, conversion ratio | shares | 0.9650 | |||
Common stock, cash received per share, value | $ / shares | $ 2 | |||
Business acquisition, share price (dollar per share) | $ / shares | $ 24.77 | |||
Total purchase price | $ 394,000 |
Mergers and acquisitions - Farm
Mergers and acquisitions - Farmers National Bank Narrative (Details) $ / shares in Units, $ in Thousands | Feb. 14, 2020USD ($)branch$ / sharesshares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | |||||||
Assets assumed in acquisition | $ 7,255,536 | $ 5,940,402 | $ 7,255,536 | $ 5,940,402 | $ 6,124,921 | ||
Loans assumed in acquisition | 4,827,023 | 4,827,023 | $ 4,409,642 | 4,409,642 | |||
Deposits assumed in acquisition | 5,952,801 | 5,952,801 | $ 4,934,938 | ||||
Goodwill resulting from merger | 6,390 | 31,396 | |||||
Merger related expenses | 1,586 | $ 3,783 | 4,636 | $ 4,404 | |||
Farmers National | |||||||
Business Acquisition [Line Items] | |||||||
Number of branches acquired | branch | 5 | ||||||
Assets assumed in acquisition | $ 258,218 | ||||||
Loans assumed in acquisition | 182,171 | ||||||
Deposits assumed in acquisition | $ 209,535 | ||||||
Business acquisition, shares issued (in shares) | shares | 954,797 | ||||||
Cash consideration | $ 15,001 | ||||||
Business acquisition, share price (dollar per share) | $ / shares | $ 36.70 | ||||||
Business combination, consideration, value | $ 50,042 | ||||||
Goodwill resulting from merger | $ 6,390 | ||||||
Merger related expenses | $ 1,503 | $ 2,097 |
Mergers and acquisitions - Sche
Mergers and acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Farmers National $ in Thousands | Feb. 14, 2020USD ($) |
Assets | |
Cash and cash equivalents | $ 10,774 |
Securities | 50,594 |
Loans, net of fair value adjustments | 182,171 |
Allowance for credit losses on PCD loans | (669) |
Premises and equipment | 8,049 |
Core deposit intangible | 2,490 |
Other assets | 4,809 |
Total assets | 258,218 |
Liabilities | |
Non-interest bearing deposits | 63,531 |
Interest-bearing checking | 26,451 |
Money market and savings | 37,002 |
Customer time deposits | 82,551 |
Total deposits | 209,535 |
Borrowings | 3,192 |
Accrued expenses and other liabilities | 1,839 |
Total liabilities | 214,566 |
Net assets acquired | $ 43,652 |
Mergers and acquisitions - Sc_2
Mergers and acquisitions - Schedule of Consideration Paid and Allocation of Purchase Price to Net Assets Acquired (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 14, 2020 | Jun. 30, 2020 | Jun. 30, 2019 |
Consideration: | |||
Goodwill resulting from merger | $ 6,390 | $ 31,396 | |
Farmers National | |||
Consideration: | |||
Net shares issued (in shares) | 954,797 | ||
Purchase price per share (dollar per share) | $ 36.70 | ||
Value of stock consideration | $ 35,041 | ||
Cash consideration paid | 15,001 | ||
Total purchase price | 50,042 | ||
Fair value of net assets acquired including identifiable intangible assets | 43,652 | ||
Goodwill resulting from merger | $ 6,390 | ||
Common stock | Farmers National | |||
Consideration: | |||
Net shares issued (in shares) | 954,797 |
Mergers and acquisitions - Sc_3
Mergers and acquisitions - Schedule of Purchased Credit Deteriorated Credit Quality (Details) - USD ($) $ in Thousands | Feb. 14, 2020 | Jun. 30, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Deterioration credit quality since origination, percentage | 10.10% | |
Allowance for credit loss, purchased with credit deterioration | $ 669 | |
Farmers National | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Principal balance | $ 18,964 | |
Allowance for credit losses at acquisition | (669) | |
Net premium attributable to other factors | 63 | |
Loans purchased credit-deteriorated fair value | 18,358 | |
Allowance for credit loss, purchased with credit deterioration | $ 2,885 |
Mergers and acquisitions - Busi
Mergers and acquisitions - Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Farmers National | |||
Business Acquisition [Line Items] | |||
Net interest income | $ 59,543 | $ 112,804 | $ 115,128 |
Total revenues | 92,919 | 237,258 | 177,938 |
Net income | 19,097 | $ 24,045 | 38,696 |
Atlantic Capital Bank | |||
Business Acquisition [Line Items] | |||
Net interest income | 57,023 | 113,610 | |
Total revenues | 90,002 | 176,413 | |
Net income | $ 18,688 | $ 37,191 |
Mergers and acquisitions - Atla
Mergers and acquisitions - Atlantic Capital Bank Narrative (Details) $ in Thousands | Apr. 05, 2019USD ($)branch |
Business Acquisition [Line Items] | |
Percentage of loans outstanding | 99.32% |
Atlantic Capital Bank | |
Business Acquisition [Line Items] | |
Total purchase price | $ 36,790 |
Customer deposits | $ 588,877 |
Deposit premium percentage | 6.25% |
Loans, net of fair value adjustments | $ 374,966 |
TENNESSEE | Atlantic Capital Bank | |
Business Acquisition [Line Items] | |
Number of branches acquired | branch | 11 |
GEORGIA | Atlantic Capital Bank | |
Business Acquisition [Line Items] | |
Number of branches acquired | branch | 3 |
Investment securities - Summary
Investment securities - Summary of Amortized Cost of Securities and Fair Values (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 717,755,000 | $ 676,705,000 |
Gross unrealized gains | 29,952,000 | 13,567,000 |
Gross unrealized losses | (269,000) | (1,891,000) |
Allowance for credit losses for investments | 0 | |
Fair Value | 747,438,000 | 688,381,000 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 3,003,000 | |
Gross unrealized gains | 21,000 | |
Gross unrealized losses | 0 | |
Allowance for credit losses for investments | 0 | |
Fair Value | 3,024,000 | |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 439,843,000 | 487,101,000 |
Gross unrealized gains | 14,770,000 | 5,236,000 |
Gross unrealized losses | (7,000) | (1,661,000) |
Allowance for credit losses for investments | 0 | |
Fair Value | 454,606,000 | 490,676,000 |
Municipals, tax exempt | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 251,424,000 | 181,178,000 |
Gross unrealized gains | 14,875,000 | 8,287,000 |
Gross unrealized losses | (247,000) | (230,000) |
Allowance for credit losses for investments | 0 | |
Fair Value | 266,052,000 | 189,235,000 |
Treasury securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 22,485,000 | 7,426,000 |
Gross unrealized gains | 286,000 | 22,000 |
Gross unrealized losses | 0 | 0 |
Allowance for credit losses for investments | 0 | |
Fair Value | 22,771,000 | 7,448,000 |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 1,000,000 | 1,000,000 |
Gross unrealized gains | 0 | 22,000 |
Gross unrealized losses | (15,000) | 0 |
Allowance for credit losses for investments | 0 | |
Fair Value | $ 985,000 | $ 1,022,000 |
Investment securities - Narrati
Investment securities - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020USD ($)security | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)security | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)security | |
Debt and Equity Securities, FV-NI [Line Items] | |||||
Interest receivable | $ 26,587,000 | $ 26,587,000 | $ 17,083,000 | ||
Equity securities, at fair value | 4,329,000 | 4,329,000 | 3,295,000 | ||
Trade date payable - securities | 5,431,000 | $ 1,089,000 | $ 0 | ||
Net (losses) gains on marketable equity securities | $ (28,000) | $ 47,000 | $ 35,000 | 96,000 | |
Number of securities in securities portfolio | security | 445 | 445 | 365 | ||
Number of securities in securities portfolio, unrealized loss position | security | 8 | 8 | 58 | ||
Allowance for credit losses for investments | $ 0 | $ 0 | |||
Provision for credit losses on available for sale debt securities | 0 | ||||
Other than temporary impairment | $ 0 | $ 0 | |||
Debt Securities | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Interest receivable | 3,184,000 | 3,184,000 | $ 2,843,000 | ||
Collateral Pledged | |||||
Debt and Equity Securities, FV-NI [Line Items] | |||||
Securities pledged | $ 475,645,000 | $ 475,645,000 | $ 373,674,000 |
Investment securities - Schedul
Investment securities - Schedule of Amortized Cost and Fair Value of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized cost | ||
Amortized cost, due in one year or less | $ 17,374 | $ 1,148 |
Amortized costs, due in one to five years | 33,022 | 11,553 |
Amortized cost, due in five to ten years | 30,203 | 18,287 |
Amortized cost, due in over ten years | 197,313 | 158,616 |
Amortized cost, total | 277,912 | 189,604 |
Mortgage-backed securities - residential, amortized cost | 439,843 | 487,101 |
Amortized cost | 717,755 | 676,705 |
Fair value | ||
Fair value, due in one year or less | 17,473 | 1,152 |
Fair value, due in one to five years | 33,515 | 11,676 |
Fair value, due in five to ten years | 31,373 | 18,887 |
Fair value, due in over ten years | 210,471 | 165,990 |
Fair value, total | 292,832 | 197,705 |
Mortgage-backed securities - residential, fair value | 454,606 | 490,676 |
Total debt securities, Fair value | $ 747,438 | $ 688,381 |
Investment securities - Summa_2
Investment securities - Summary of Sales and Other Dispositions of Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 0 | $ 0 | $ 0 | $ 1,758 |
Proceeds from maturities, prepayments and calls | 44,703 | 29,353 | 72,360 | 50,167 |
Gross realized gains | 0 | 5 | 0 | 6 |
Gross realized losses | $ 0 | $ 0 | $ 0 | $ 7 |
Investment securities - Sched_2
Investment securities - Schedule of Gross Unrealized Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | $ 18,515 | $ 63,074 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (269) | (394) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 0 | 175,730 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | (1,497) |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 18,515 | 238,804 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (269) | (1,891) |
Mortgage-backed securities - residential | ||
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | 14,746 | 47,641 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (7) | (164) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 0 | 175,730 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | (1,497) |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 14,746 | 223,371 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (7) | (1,661) |
Municipals, tax exempt | ||
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | 2,784 | 15,433 |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (247) | (230) |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 0 | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | 0 |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 2,784 | 15,433 |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | (247) | $ (230) |
Corporate securities | ||
Debt Securities, Available-for-sale [Abstract] | ||
Debt securities, available-for-sale, unrealized loss, less than 12 months, fair value | 985 | |
Debt securities, available-for-sale, continuous unrealized loss position, less than 12 months, accumulated loss | (15) | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, fair value | 0 | |
Debt securities, available-for-sale, continuous unrealized loss position, 12 months or longer, accumulated loss | 0 | |
Debt securities, available-for-sale, continuous unrealized loss position, fair value | 985 | |
Debt securities, available-for-sale, unrealized loss position, accumulated loss | $ (15) |
Loans and allowance for credi_3
Loans and allowance for credit losses - Loans Outstanding by Major Lending Classification (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | $ 4,827,023 | $ 4,409,642 | $ 4,409,642 | ||||
Less: Allowance for credit losses | (113,129) | $ (89,141) | $ (31,139) | (31,139) | $ (30,138) | $ (29,814) | $ (28,932) |
Net loans | 4,713,894 | 4,378,503 | |||||
Loans processed | 314,678 | ||||||
Paycheck Protection Program | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Less: Allowance for credit losses | (51) | ||||||
Loans processed | 314,678 | ||||||
Commercial and industrial | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 1,289,646 | 1,034,036 | |||||
Less: Allowance for credit losses | (8,878) | (10,881) | (4,805) | (4,923) | (5,514) | (5,348) | |
Construction | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 553,619 | 551,101 | |||||
Less: Allowance for credit losses | (35,599) | (22,842) | (10,194) | (9,655) | (9,758) | (9,729) | |
Residential real estate: | 1-to-4 family mortgage | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 741,936 | 710,454 | |||||
Less: Allowance for credit losses | (12,463) | (13,006) | (3,112) | (3,288) | (3,295) | (3,428) | |
Residential real estate: | Residential line of credit | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 236,974 | 221,530 | |||||
Less: Allowance for credit losses | (6,811) | (6,213) | (752) | (755) | (731) | (811) | |
Residential real estate: | Multi-family mortgage | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 115,149 | 69,429 | |||||
Less: Allowance for credit losses | (4,499) | (2,328) | (544) | (617) | (539) | (566) | |
Commercial real estate: | Owner occupied | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 683,245 | 630,270 | |||||
Less: Allowance for credit losses | (7,420) | (9,047) | (4,109) | (3,512) | (3,098) | (3,132) | |
Commercial real estate: | Non-owner occupied | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 923,192 | 920,744 | |||||
Less: Allowance for credit losses | (30,444) | (18,005) | (4,621) | (4,478) | (4,583) | (4,149) | |
Consumer and other | |||||||
Financing Receivable, Past Due [Line Items] | |||||||
Gross loans | 283,262 | 272,078 | |||||
Less: Allowance for credit losses | $ (7,015) | $ (6,819) | $ (3,002) | $ (2,910) | $ (2,296) | $ (1,769) |
Loans and allowance for credi_4
Loans and allowance for credit losses - Additional Information (Details) - USD ($) | Mar. 22, 2020 | Feb. 14, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||||||||
Accrued interest receivable | $ 23,009,000 | $ 23,009,000 | ||||||
Carrying value of PCI loans | $ 57,152,000 | |||||||
Accretion of interest income | 2,554,000 | $ 3,928,000 | ||||||
Recorded investment in troubled debt restructurings | 13,277,000 | 13,277,000 | 12,206,000 | |||||
Allocation to specific reserves | 606,000 | 606,000 | 360,000 | |||||
Non-accrual loans | 5,821,000 | 5,821,000 | 5,201,000 | |||||
Payment default for loans modified as troubled debt restructurings | 0 | $ 0 | $ 0 | 0 | ||||
Classification of TDR, exemption period, CARES ACT | 60 days | |||||||
Payment deferral period | 90 days | |||||||
Minimum | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Payment deferral period | 60 days | |||||||
Maximum | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Payment deferral period | 90 days | |||||||
Purchased Credit Impaired | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Carrying value of PCI loans | 57,152,000 | |||||||
Purchase accounting liquidity discount | 292,000 | |||||||
Purchase accounting non accretable credit discount | 3,537,000 | |||||||
Accretion of interest income | 1,705,000 | 3,888,000 | ||||||
Total accretion excluded interest income | $ 2,097,000 | $ 3,928,000 | ||||||
Non-Purchased Credit Impaired | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Purchase accounting liquidity discount | 3,924,000 | |||||||
Purchase accounting accretable credit discount | 8,964,000 | |||||||
Federal Reserve | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Pledged loans to the Federal Reserve Bank | 1,492,666,000 | $ 1,492,666,000 | 1,407,662,000 | |||||
Residential Mortgage Loans | Federal Home Loan Bank of Cincinnati | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Pledge loans for Federal Home Loan Bank Debt | 501,728,000 | 501,728,000 | 412,966,000 | |||||
Commercial Loan | Federal Home Loan Bank of Cincinnati | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Pledge loans for Federal Home Loan Bank Debt | $ 567,515,000 | $ 567,515,000 | $ 545,540,000 | |||||
Farmers National | ||||||||
Financing Receivable, Past Due [Line Items] | ||||||||
Financing receivable, allowance for credit loss, acquisition | $ 4,494,000 |
Loans and allowance for credi_5
Loans and allowance for credit losses - Allowance for Loan Losses by Portfolio Segment and Related Investment in Loans Net of Unearned Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 89,141 | $ 29,814 | $ 31,139 | $ 28,932 |
Provision for credit losses | 24,039 | 881 | 52,003 | 2,272 |
Recoveries of loans previously charged-off | 1,114 | 213 | 1,448 | 575 |
Loans charged off | (1,165) | (770) | (3,576) | (1,641) |
Initial allowance on loans purchased with deteriorated credit quality | 669 | |||
Balance at end of period | 113,129 | 30,138 | 113,129 | 30,138 |
Commercial and industrial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 10,881 | 5,514 | 4,805 | 5,348 |
Provision for credit losses | (2,663) | (550) | (834) | (217) |
Recoveries of loans previously charged-off | 807 | 38 | 895 | 50 |
Loans charged off | (147) | (79) | (1,381) | (258) |
Initial allowance on loans purchased with deteriorated credit quality | 11 | |||
Balance at end of period | 8,878 | 4,923 | 8,878 | 4,923 |
Construction | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 22,842 | 9,758 | 10,194 | 9,729 |
Provision for credit losses | 12,624 | (109) | 23,578 | (81) |
Recoveries of loans previously charged-off | 151 | 6 | 151 | 7 |
Loans charged off | (18) | 0 | (18) | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 11 | |||
Balance at end of period | 35,599 | 9,655 | 35,599 | 9,655 |
Residential real estate: | 1-to-4 family mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 13,006 | 3,295 | 3,112 | 3,428 |
Provision for credit losses | (446) | (30) | 1,218 | (95) |
Recoveries of loans previously charged-off | 26 | 24 | 50 | 37 |
Loans charged off | (123) | (1) | (365) | (82) |
Initial allowance on loans purchased with deteriorated credit quality | 107 | |||
Balance at end of period | 12,463 | 3,288 | 12,463 | 3,288 |
Residential real estate: | Residential line of credit | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 6,213 | 731 | 752 | 811 |
Provision for credit losses | 595 | 106 | 2,580 | 33 |
Recoveries of loans previously charged-off | 24 | 21 | 39 | 46 |
Loans charged off | (21) | (103) | (21) | (135) |
Initial allowance on loans purchased with deteriorated credit quality | 3 | |||
Balance at end of period | 6,811 | 755 | 6,811 | 755 |
Residential real estate: | Multi-family mortgage | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 2,328 | 539 | 544 | 566 |
Provision for credit losses | 2,171 | 78 | 3,615 | 51 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | 0 | 0 | 0 | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 0 | |||
Balance at end of period | 4,499 | 617 | 4,499 | 617 |
Commercial real estate: | Owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 9,047 | 3,098 | 4,109 | 3,132 |
Provision for credit losses | (1,630) | 409 | 1,408 | 288 |
Recoveries of loans previously charged-off | 3 | 5 | 17 | 92 |
Loans charged off | 0 | 0 | (209) | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 54 | |||
Balance at end of period | 7,420 | 3,512 | 7,420 | 3,512 |
Commercial real estate: | Non-owner occupied | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 18,005 | 4,583 | 4,621 | 4,149 |
Provision for credit losses | 12,984 | (105) | 18,919 | 329 |
Recoveries of loans previously charged-off | 0 | 0 | 0 | 0 |
Loans charged off | (545) | 0 | (545) | 0 |
Initial allowance on loans purchased with deteriorated credit quality | 443 | |||
Balance at end of period | 30,444 | 4,478 | 30,444 | 4,478 |
Consumer and other | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 6,819 | 2,296 | 3,002 | 1,769 |
Provision for credit losses | 404 | 1,082 | 1,519 | 1,964 |
Recoveries of loans previously charged-off | 103 | 119 | 296 | 343 |
Loans charged off | (311) | (587) | (1,037) | (1,166) |
Initial allowance on loans purchased with deteriorated credit quality | 40 | |||
Balance at end of period | $ 7,015 | $ 2,910 | 7,015 | $ 2,910 |
Non-purchased credit deteriorated loan | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 30,888 | |||
Non-purchased credit deteriorated loan | Commercial and industrial | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 5,300 | |||
Non-purchased credit deteriorated loan | Construction | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1,533 | |||
Non-purchased credit deteriorated loan | Residential real estate: | 1-to-4 family mortgage | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 7,920 | |||
Non-purchased credit deteriorated loan | Residential real estate: | Residential line of credit | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 3,461 | |||
Non-purchased credit deteriorated loan | Residential real estate: | Multi-family mortgage | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 340 | |||
Non-purchased credit deteriorated loan | Commercial real estate: | Owner occupied | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 1,879 | |||
Non-purchased credit deteriorated loan | Commercial real estate: | Non-owner occupied | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 6,822 | |||
Non-purchased credit deteriorated loan | Consumer and other | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 3,633 | |||
Purchased credit deteriorated loan | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 558 | |||
Purchased credit deteriorated loan | Commercial and industrial | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 82 | |||
Purchased credit deteriorated loan | Construction | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 150 | |||
Purchased credit deteriorated loan | Residential real estate: | 1-to-4 family mortgage | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 421 | |||
Purchased credit deteriorated loan | Residential real estate: | Residential line of credit | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | (3) | |||
Purchased credit deteriorated loan | Residential real estate: | Multi-family mortgage | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 0 | |||
Purchased credit deteriorated loan | Commercial real estate: | Owner occupied | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 162 | |||
Purchased credit deteriorated loan | Commercial real estate: | Non-owner occupied | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | 184 | |||
Purchased credit deteriorated loan | Consumer and other | Accounting Standards Update 2019-11 | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ (438) |
Loans and allowance for credi_6
Loans and allowance for credit 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 | Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | $ 895 | ||||||
Collectively evaluated for impairment | 28,571 | ||||||
Acquired with deteriorated credit quality | 1,673 | ||||||
Ending balance | $ 113,129 | $ 89,141 | $ 31,139 | 31,139 | $ 30,138 | $ 29,814 | $ 28,932 |
Commercial and industrial | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 241 | ||||||
Collectively evaluated for impairment | 4,457 | ||||||
Acquired with deteriorated credit quality | 107 | ||||||
Ending balance | 8,878 | 10,881 | 4,805 | 4,923 | 5,514 | 5,348 | |
Construction | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 0 | ||||||
Collectively evaluated for impairment | 10,192 | ||||||
Acquired with deteriorated credit quality | 2 | ||||||
Ending balance | 35,599 | 22,842 | 10,194 | 9,655 | 9,758 | 9,729 | |
Residential real estate: | 1-to-4 family mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 8 | ||||||
Collectively evaluated for impairment | 2,940 | ||||||
Acquired with deteriorated credit quality | 164 | ||||||
Ending balance | 12,463 | 13,006 | 3,112 | 3,288 | 3,295 | 3,428 | |
Residential real estate: | Residential line of credit | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 9 | ||||||
Collectively evaluated for impairment | 743 | ||||||
Acquired with deteriorated credit quality | 0 | ||||||
Ending balance | 6,811 | 6,213 | 752 | 755 | 731 | 811 | |
Residential real estate: | Multi-family mortgage | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 0 | ||||||
Collectively evaluated for impairment | 544 | ||||||
Acquired with deteriorated credit quality | 0 | ||||||
Ending balance | 4,499 | 2,328 | 544 | 617 | 539 | 566 | |
Commercial real estate: | Owner occupied | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 238 | ||||||
Collectively evaluated for impairment | 3,853 | ||||||
Acquired with deteriorated credit quality | 18 | ||||||
Ending balance | 7,420 | 9,047 | 4,109 | 3,512 | 3,098 | 3,132 | |
Commercial real estate: | Non-owner occupied | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 399 | ||||||
Collectively evaluated for impairment | 3,909 | ||||||
Acquired with deteriorated credit quality | 313 | ||||||
Ending balance | 30,444 | 18,005 | 4,621 | 4,478 | 4,583 | 4,149 | |
Consumer and other | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Individually evaluated for impairment | 0 | ||||||
Collectively evaluated for impairment | 1,933 | ||||||
Acquired with deteriorated credit quality | 1,069 | ||||||
Ending balance | $ 7,015 | $ 6,819 | $ 3,002 | $ 2,910 | $ 2,296 | $ 1,769 |
Loans and allowance for credi_7
Loans and allowance for credit losses - Amount of Loans by Loan Category Broken Out Between Loans Individually Evaluated for Impairment and Collectively Evaluated for Impairment (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | $ 23,810 | ||
Collectively evaluated for impairment | 4,328,680 | ||
Fair value | 57,152 | ||
Loans | $ 4,827,023 | $ 4,409,642 | 4,409,642 |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 9,026 | ||
Collectively evaluated for impairment | 1,023,326 | ||
Fair value | 1,684 | ||
Loans | 1,289,646 | 1,034,036 | |
Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 2,061 | ||
Collectively evaluated for impairment | 546,156 | ||
Fair value | 2,884 | ||
Loans | 553,619 | 551,101 | |
Residential real estate: | 1-to-4 family mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 1,347 | ||
Collectively evaluated for impairment | 689,769 | ||
Fair value | 19,338 | ||
Loans | 741,936 | 710,454 | |
Residential real estate: | Residential line of credit | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 579 | ||
Collectively evaluated for impairment | 220,878 | ||
Fair value | 73 | ||
Loans | 236,974 | 221,530 | |
Residential real estate: | Multi-family mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 0 | ||
Collectively evaluated for impairment | 69,429 | ||
Fair value | 0 | ||
Loans | 115,149 | 69,429 | |
Commercial real estate: | Owner occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 2,993 | ||
Collectively evaluated for impairment | 621,386 | ||
Fair value | 5,891 | ||
Loans | 683,245 | 630,270 | |
Commercial real estate: | Non-owner occupied | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 7,755 | ||
Collectively evaluated for impairment | 902,792 | ||
Fair value | 10,197 | ||
Loans | 923,192 | 920,744 | |
Consumer and other | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Individually evaluated for impairment | 49 | ||
Collectively evaluated for impairment | 254,944 | ||
Fair value | 17,085 | ||
Loans | $ 283,262 | $ 272,078 |
Loans and allowance for credi_8
Loans and allowance for credit losses - Amortized Cost Basis by Origination Year (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | $ 656,419 |
2019 | 885,291 |
2018 | 676,583 |
2017 | 496,947 |
2016 | 429,551 |
Prior | 736,990 |
Revolving Loans Amortized Cost Basis | 945,242 |
Total | 4,827,023 |
Commercial and industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 342,021 |
2019 | 182,079 |
2018 | 107,437 |
2017 | 48,901 |
2016 | 40,006 |
Prior | 39,559 |
Revolving Loans Amortized Cost Basis | 529,643 |
Total | 1,289,646 |
Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 62,393 |
2019 | 172,093 |
2018 | 74,821 |
2017 | 42,793 |
2016 | 33,530 |
Prior | 77,161 |
Revolving Loans Amortized Cost Basis | 90,828 |
Total | 553,619 |
Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 100,879 |
2019 | 174,015 |
2018 | 139,863 |
2017 | 95,478 |
2016 | 68,007 |
Prior | 163,694 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 741,936 |
Residential real estate: | Residential line of credit | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 56 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 284 |
Prior | 3,374 |
Revolving Loans Amortized Cost Basis | 233,260 |
Total | 236,974 |
Residential real estate: | Multi-family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 20,796 |
2019 | 14,346 |
2018 | 6,758 |
2017 | 42,196 |
2016 | 2,965 |
Prior | 28,088 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 115,149 |
Residential real estate: | Non-owner occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 36,153 |
2019 | 142,060 |
2018 | 213,772 |
2017 | 137,765 |
2016 | 168,950 |
Prior | 199,481 |
Revolving Loans Amortized Cost Basis | 25,011 |
Total | 923,192 |
Commercial real estate: | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 50,660 |
2019 | 139,317 |
2018 | 86,145 |
2017 | 97,742 |
2016 | 68,447 |
Prior | 183,544 |
Revolving Loans Amortized Cost Basis | 57,390 |
Total | 683,245 |
Consumer and other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 43,461 |
2019 | 61,381 |
2018 | 47,787 |
2017 | 32,072 |
2016 | 47,362 |
Prior | 42,089 |
Revolving Loans Amortized Cost Basis | 9,110 |
Total | 283,262 |
Pass | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 649,453 |
2019 | 856,233 |
2018 | 620,148 |
2017 | 438,051 |
2016 | 402,040 |
Prior | 645,421 |
Revolving Loans Amortized Cost Basis | 883,818 |
Total | 4,495,164 |
Pass | Commercial and industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 338,964 |
2019 | 168,783 |
2018 | 69,250 |
2017 | 41,722 |
2016 | 32,820 |
Prior | 31,449 |
Revolving Loans Amortized Cost Basis | 481,897 |
Total | 1,164,885 |
Pass | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 62,335 |
2019 | 170,746 |
2018 | 74,183 |
2017 | 32,656 |
2016 | 32,790 |
Prior | 71,149 |
Revolving Loans Amortized Cost Basis | 90,620 |
Total | 534,479 |
Pass | Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 99,613 |
2019 | 172,190 |
2018 | 137,308 |
2017 | 89,665 |
2016 | 62,505 |
Prior | 142,668 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 703,949 |
Pass | Residential real estate: | Residential line of credit | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 56 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 284 |
Prior | 3,297 |
Revolving Loans Amortized Cost Basis | 230,334 |
Total | 233,971 |
Pass | Residential real estate: | Multi-family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 20,796 |
2019 | 14,346 |
2018 | 6,758 |
2017 | 42,196 |
2016 | 2,965 |
Prior | 28,030 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 115,091 |
Pass | Residential real estate: | Non-owner occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 34,657 |
2019 | 139,867 |
2018 | 202,792 |
2017 | 132,792 |
2016 | 164,798 |
Prior | 175,966 |
Revolving Loans Amortized Cost Basis | 24,834 |
Total | 875,706 |
Pass | Commercial real estate: | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 49,663 |
2019 | 129,755 |
2018 | 84,301 |
2017 | 69,678 |
2016 | 62,755 |
Prior | 161,851 |
Revolving Loans Amortized Cost Basis | 48,023 |
Total | 606,026 |
Pass | Consumer and other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 43,369 |
2019 | 60,546 |
2018 | 45,556 |
2017 | 29,342 |
2016 | 43,123 |
Prior | 31,011 |
Revolving Loans Amortized Cost Basis | 8,110 |
Total | 261,057 |
Watch | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 6,329 |
2019 | 21,812 |
2018 | 47,968 |
2017 | 46,786 |
2016 | 22,902 |
Prior | 48,721 |
Revolving Loans Amortized Cost Basis | 48,925 |
Total | 243,443 |
Watch | Commercial and industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 2,791 |
2019 | 10,761 |
2018 | 33,603 |
2017 | 3,928 |
2016 | 5,772 |
Prior | 4,414 |
Revolving Loans Amortized Cost Basis | 39,740 |
Total | 101,009 |
Watch | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 58 |
2019 | 10 |
2018 | 229 |
2017 | 10,126 |
2016 | 740 |
Prior | 2,807 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 13,970 |
Watch | Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 913 |
2019 | 603 |
2018 | 608 |
2017 | 2,139 |
2016 | 3,537 |
Prior | 12,938 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 20,738 |
Watch | Residential real estate: | Residential line of credit | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 788 |
Total | 788 |
Watch | Residential real estate: | Multi-family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 58 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 58 |
Watch | Residential real estate: | Non-owner occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 1,496 |
2019 | 2,193 |
2018 | 10,707 |
2017 | 4,973 |
2016 | 3,769 |
Prior | 5,090 |
Revolving Loans Amortized Cost Basis | 94 |
Total | 28,322 |
Watch | Commercial real estate: | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 997 |
2019 | 7,758 |
2018 | 1,530 |
2017 | 24,105 |
2016 | 5,634 |
Prior | 14,847 |
Revolving Loans Amortized Cost Basis | 7,716 |
Total | 62,587 |
Watch | Consumer and other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 74 |
2019 | 487 |
2018 | 1,291 |
2017 | 1,515 |
2016 | 3,450 |
Prior | 8,567 |
Revolving Loans Amortized Cost Basis | 587 |
Total | 15,971 |
Substandard | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 621 |
2019 | 6,826 |
2018 | 8,067 |
2017 | 11,586 |
2016 | 4,228 |
Prior | 41,979 |
Revolving Loans Amortized Cost Basis | 11,853 |
Total | 85,160 |
Substandard | Commercial and industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 250 |
2019 | 2,535 |
2018 | 4,584 |
2017 | 3,251 |
2016 | 1,414 |
Prior | 3,696 |
Revolving Loans Amortized Cost Basis | 7,806 |
Total | 23,536 |
Substandard | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 1,170 |
2018 | 409 |
2017 | 11 |
2016 | 0 |
Prior | 3,205 |
Revolving Loans Amortized Cost Basis | 208 |
Total | 5,003 |
Substandard | Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 353 |
2019 | 1,222 |
2018 | 1,891 |
2017 | 3,674 |
2016 | 1,640 |
Prior | 7,664 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 16,444 |
Substandard | Residential real estate: | Residential line of credit | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 77 |
Revolving Loans Amortized Cost Basis | 1,692 |
Total | 1,769 |
Substandard | Residential real estate: | Multi-family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 0 |
Substandard | Residential real estate: | Non-owner occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 273 |
2017 | 0 |
2016 | 383 |
Prior | 18,425 |
Revolving Loans Amortized Cost Basis | 83 |
Total | 19,164 |
Substandard | Commercial real estate: | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 1,804 |
2018 | 314 |
2017 | 3,959 |
2016 | 58 |
Prior | 6,846 |
Revolving Loans Amortized Cost Basis | 1,651 |
Total | 14,632 |
Substandard | Consumer and other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 18 |
2019 | 95 |
2018 | 596 |
2017 | 691 |
2016 | 733 |
Prior | 2,066 |
Revolving Loans Amortized Cost Basis | 413 |
Total | 4,612 |
Doubtful | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 16 |
2019 | 420 |
2018 | 400 |
2017 | 524 |
2016 | 381 |
Prior | 869 |
Revolving Loans Amortized Cost Basis | 646 |
Total | 3,256 |
Doubtful | Commercial and industrial | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 16 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 200 |
Total | 216 |
Doubtful | Construction | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 167 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 167 |
Doubtful | Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 56 |
2017 | 0 |
2016 | 325 |
Prior | 424 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 805 |
Doubtful | Residential real estate: | Residential line of credit | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 446 |
Total | 446 |
Doubtful | Residential real estate: | Multi-family mortgage | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 0 |
Doubtful | Residential real estate: | Non-owner occupied | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 0 |
Doubtful | Commercial real estate: | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 0 |
2018 | 0 |
2017 | 0 |
2016 | 0 |
Prior | 0 |
Revolving Loans Amortized Cost Basis | 0 |
Total | 0 |
Doubtful | Consumer and other | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
2020 | 0 |
2019 | 253 |
2018 | 344 |
2017 | 524 |
2016 | 56 |
Prior | 445 |
Revolving Loans Amortized Cost Basis | 0 |
Total | $ 1,622 |
Loans and allowance for credi_9
Loans and allowance for credit losses - Credit Quality Indicators by Portfolio Class (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | $ 4,352,490 | ||
Purchased credit impaired loans | 57,152 | ||
Loans | $ 4,827,023 | $ 4,409,642 | 4,409,642 |
Pass | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 4,143,116 | ||
Purchased credit impaired loans | 0 | ||
Loans | 4,143,116 | ||
Watch | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 142,511 | ||
Purchased credit impaired loans | 43,669 | ||
Loans | 186,180 | ||
Substandard | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 66,863 | ||
Purchased credit impaired loans | 13,483 | ||
Loans | 80,346 | ||
Commercial and industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 1,032,352 | ||
Purchased credit impaired loans | 1,684 | ||
Loans | 1,289,646 | 1,034,036 | |
Commercial and industrial | Pass | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 946,247 | ||
Purchased credit impaired loans | 0 | ||
Commercial and industrial | Watch | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 66,910 | ||
Purchased credit impaired loans | 1,224 | ||
Commercial and industrial | Substandard | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 19,195 | ||
Purchased credit impaired loans | 460 | ||
Construction | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 548,217 | ||
Purchased credit impaired loans | 2,884 | ||
Loans | 553,619 | 551,101 | |
Construction | Pass | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 541,201 | ||
Purchased credit impaired loans | 0 | ||
Construction | Watch | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 4,790 | ||
Purchased credit impaired loans | 2,681 | ||
Construction | Substandard | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 2,226 | ||
Purchased credit impaired loans | 203 | ||
Residential real estate: | 1-to-4 family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 691,116 | ||
Purchased credit impaired loans | 19,338 | ||
Loans | 741,936 | 710,454 | |
Residential real estate: | Residential line of credit | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 221,457 | ||
Purchased credit impaired loans | 73 | ||
Loans | 236,974 | 221,530 | |
Residential real estate: | Multi-family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 69,429 | ||
Purchased credit impaired loans | 0 | ||
Loans | 115,149 | 69,429 | |
Residential real estate: | Pass | 1-to-4 family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 666,177 | ||
Purchased credit impaired loans | 0 | ||
Residential real estate: | Pass | Residential line of credit | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 218,086 | ||
Purchased credit impaired loans | 0 | ||
Residential real estate: | Pass | Multi-family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 69,366 | ||
Purchased credit impaired loans | 0 | ||
Residential real estate: | Watch | 1-to-4 family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 11,380 | ||
Purchased credit impaired loans | 15,091 | ||
Residential real estate: | Watch | Residential line of credit | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 1,343 | ||
Purchased credit impaired loans | 0 | ||
Residential real estate: | Watch | Multi-family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 63 | ||
Purchased credit impaired loans | 0 | ||
Residential real estate: | Substandard | 1-to-4 family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 13,559 | ||
Purchased credit impaired loans | 4,247 | ||
Residential real estate: | Substandard | Residential line of credit | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 2,028 | ||
Purchased credit impaired loans | 73 | ||
Residential real estate: | Substandard | Multi-family mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 0 | ||
Purchased credit impaired loans | 0 | ||
Commercial real estate: | Owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 624,379 | ||
Purchased credit impaired loans | 5,891 | ||
Loans | 683,245 | 630,270 | |
Commercial real estate: | Non-owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 910,547 | ||
Purchased credit impaired loans | 10,197 | ||
Loans | 923,192 | 920,744 | |
Commercial real estate: | Pass | Owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 576,737 | ||
Purchased credit impaired loans | 0 | ||
Commercial real estate: | Pass | Non-owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 876,670 | ||
Purchased credit impaired loans | 0 | ||
Commercial real estate: | Watch | Owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 30,379 | ||
Purchased credit impaired loans | 4,535 | ||
Commercial real estate: | Watch | Non-owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 24,342 | ||
Purchased credit impaired loans | 6,617 | ||
Commercial real estate: | Substandard | Owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 17,263 | ||
Purchased credit impaired loans | 1,356 | ||
Commercial real estate: | Substandard | Non-owner occupied | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 9,535 | ||
Purchased credit impaired loans | 3,580 | ||
Consumer and other | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 254,993 | ||
Purchased credit impaired loans | 17,085 | ||
Loans | $ 283,262 | 272,078 | |
Consumer and other | Pass | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 248,632 | ||
Purchased credit impaired loans | 0 | ||
Consumer and other | Watch | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 3,304 | ||
Purchased credit impaired loans | 13,521 | ||
Consumer and other | Substandard | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Loans, excluding purchased credit impaired loans | 3,057 | ||
Purchased credit impaired loans | $ 3,564 |
Loans and allowance for cred_10
Loans and allowance for credit losses - Past Due Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | |
Financing Receivable, Past Due [Line Items] | ||||
Loans | $ 4,827,023 | $ 4,827,023 | $ 4,409,642 | $ 4,409,642 |
Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 25,282 | |||
Non-accrual with no related allowance | 8,741 | |||
Non-accrual with related allowance | 19,672 | |||
Related allowance | 2,314 | |||
Interest income on non-accrual loans | 205 | 432 | ||
Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 28,413 | 28,413 | 21,062 | |
30-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 11,324 | 11,324 | 18,477 | |
90 Days or More and Accruing Interest | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 6,412 | 6,412 | 5,543 | |
Financing Receivables Current | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 4,780,874 | 4,780,874 | 4,307,408 | |
Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 1,289,646 | 1,289,646 | 1,034,036 | |
Commercial and industrial | Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 5,586 | |||
Non-accrual with no related allowance | 1,098 | |||
Non-accrual with related allowance | 1,210 | |||
Related allowance | 350 | |||
Interest income on non-accrual loans | 17 | 169 | ||
Commercial and industrial | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 2,308 | 2,308 | 5,587 | |
Commercial and industrial | 30-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 1,057 | 1,057 | 1,918 | |
Commercial and industrial | 90 Days or More and Accruing Interest | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 111 | 111 | 291 | |
Commercial and industrial | Financing Receivables Current | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 1,286,170 | 1,286,170 | 1,024,556 | |
Construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 553,619 | 553,619 | 551,101 | |
Construction | Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 1,254 | |||
Non-accrual with no related allowance | 1,218 | |||
Non-accrual with related allowance | 264 | |||
Related allowance | 47 | |||
Interest income on non-accrual loans | 6 | 33 | ||
Construction | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 1,482 | 1,482 | 1,087 | |
Construction | 30-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 769 | 769 | 1,021 | |
Construction | 90 Days or More and Accruing Interest | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 465 | 465 | 42 | |
Construction | Financing Receivables Current | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 550,903 | 550,903 | 546,067 | |
Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 741,936 | 741,936 | 710,454 | |
Residential real estate: | 1-to-4 family mortgage | Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 4,585 | |||
Non-accrual with no related allowance | 1,789 | |||
Non-accrual with related allowance | 3,603 | |||
Related allowance | 68 | |||
Interest income on non-accrual loans | 6 | 13 | ||
Residential real estate: | 1-to-4 family mortgage | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 5,392 | 5,392 | 3,332 | |
Residential real estate: | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 236,974 | 236,974 | 221,530 | |
Residential real estate: | Residential line of credit | Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 489 | |||
Non-accrual with no related allowance | 151 | |||
Non-accrual with related allowance | 553 | |||
Related allowance | 12 | |||
Interest income on non-accrual loans | 0 | 1 | ||
Residential real estate: | Residential line of credit | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 704 | 704 | 416 | |
Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 115,149 | 115,149 | 69,429 | |
Residential real estate: | Multi-family mortgage | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 0 | 0 | 0 | |
Residential real estate: | 30-89 Days Past Due | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 5,658 | 5,658 | 10,738 | |
Residential real estate: | 30-89 Days Past Due | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 398 | 398 | 658 | |
Residential real estate: | 30-89 Days Past Due | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 58 | 58 | 63 | |
Residential real estate: | 90 Days or More and Accruing Interest | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 4,712 | 4,712 | 3,965 | |
Residential real estate: | 90 Days or More and Accruing Interest | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 277 | 277 | 412 | |
Residential real estate: | 90 Days or More and Accruing Interest | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 0 | 0 | 0 | |
Residential real estate: | Financing Receivables Current | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 726,174 | 726,174 | 673,081 | |
Residential real estate: | Financing Receivables Current | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 235,595 | 235,595 | 219,971 | |
Residential real estate: | Financing Receivables Current | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 115,091 | 115,091 | 69,366 | |
Commercial real estate: | Owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 683,245 | 683,245 | 630,270 | |
Commercial real estate: | Owner occupied | Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 2,285 | |||
Non-accrual with no related allowance | 1,723 | |||
Non-accrual with related allowance | 921 | |||
Related allowance | 78 | |||
Interest income on non-accrual loans | 43 | 64 | ||
Commercial real estate: | Owner occupied | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 2,644 | 2,644 | 1,793 | |
Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 923,192 | 923,192 | 920,744 | |
Commercial real estate: | Non-owner occupied | Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 9,460 | |||
Non-accrual with no related allowance | 2,762 | |||
Non-accrual with related allowance | 10,351 | |||
Related allowance | 1,625 | |||
Interest income on non-accrual loans | 109 | 128 | ||
Commercial real estate: | Non-owner occupied | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 13,113 | 13,113 | 7,880 | |
Commercial real estate: | 30-89 Days Past Due | Owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 43 | 43 | 1,375 | |
Commercial real estate: | 30-89 Days Past Due | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 169 | 169 | 327 | |
Commercial real estate: | 90 Days or More and Accruing Interest | Owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 0 | 0 | 0 | |
Commercial real estate: | 90 Days or More and Accruing Interest | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 226 | 226 | 0 | |
Commercial real estate: | Financing Receivables Current | Owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 680,558 | 680,558 | 621,211 | |
Commercial real estate: | Financing Receivables Current | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 909,684 | 909,684 | 902,340 | |
Consumer and other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 283,262 | 283,262 | 272,078 | |
Consumer and other | Collectively Evaluated | ||||
Financing Receivable, Past Due [Line Items] | ||||
Non-accrual amortized cost | 1,623 | |||
Non-accrual with no related allowance | 0 | |||
Non-accrual with related allowance | 2,770 | |||
Related allowance | 134 | |||
Interest income on non-accrual loans | 24 | 24 | ||
Consumer and other | Non Accruing | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 2,770 | 2,770 | 967 | |
Consumer and other | 30-89 Days Past Due | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 3,172 | 3,172 | 2,377 | |
Consumer and other | 90 Days or More and Accruing Interest | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 621 | 621 | 833 | |
Consumer and other | Financing Receivables Current | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | $ 276,699 | $ 276,699 | 250,816 | |
Purchased Credit Impaired | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 57,152 | |||
Purchased Credit Impaired | Commercial and industrial | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 1,684 | |||
Purchased Credit Impaired | Construction | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 2,884 | |||
Purchased Credit Impaired | Residential real estate: | 1-to-4 family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 19,338 | |||
Purchased Credit Impaired | Residential real estate: | Residential line of credit | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 73 | |||
Purchased Credit Impaired | Residential real estate: | Multi-family mortgage | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 0 | |||
Purchased Credit Impaired | Commercial real estate: | Owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 5,891 | |||
Purchased Credit Impaired | Commercial real estate: | Non-owner occupied | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | 10,197 | |||
Purchased Credit Impaired | Consumer and other | ||||
Financing Receivable, Past Due [Line Items] | ||||
Loans | $ 17,085 |
Loans and allowance for cred_11
Loans and allowance for credit losses - Impaired Loans Recognized, Recorded Investment and Interest Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | $ 9,504 | $ 8,294 |
Impaired loan with no related allowance, average recorded investment | 6,121 | 6,407 |
Total impaired loans, average recorded investment | 15,625 | 14,701 |
Impaired loans with related allowance, interest income recognized (cash basis) | 133 | 175 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 68 | 170 |
Total impaired loans, interest income recognized (cash basis) | 201 | 345 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 3,161 | 1,877 |
Impaired loan with no related allowance, average recorded investment | 819 | 1,004 |
Impaired loans with related allowance, interest income recognized (cash basis) | 67 | 105 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 11 | 25 |
Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loan with no related allowance, average recorded investment | 1,218 | 1,219 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 4 | 52 |
Residential real estate: | 1-to-4 family mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 336 | 206 |
Impaired loan with no related allowance, average recorded investment | 528 | 715 |
Impaired loans with related allowance, interest income recognized (cash basis) | 9 | 11 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 18 | 26 |
Residential real estate: | Residential line of credit | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loan with no related allowance, average recorded investment | 607 | 427 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 0 | 2 |
Commercial real estate: | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 187 | 373 |
Impaired loan with no related allowance, average recorded investment | 1,830 | 1,922 |
Impaired loans with related allowance, interest income recognized (cash basis) | 4 | 6 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 34 | 62 |
Commercial real estate: | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 5,570 | 5,588 |
Impaired loan with no related allowance, average recorded investment | 1,049 | 1,049 |
Impaired loans with related allowance, interest income recognized (cash basis) | 34 | 34 |
Impaired loan with no related allowance, interest income recognized (cash basis) | 0 | 0 |
Consumer and other | ||
Financing Receivable, Impaired [Line Items] | ||
Impaired loans with related allowance, average recorded investment | 250 | 250 |
Impaired loan with no related allowance, average recorded investment | 70 | 71 |
Impaired loans with related allowance, interest income recognized (cash basis) | 19 | 19 |
Impaired loan with no related allowance, interest income recognized (cash basis) | $ 1 | $ 3 |
Loans and allowance for cred_12
Loans and allowance for credit losses - Impaired Loans Recognized, Segregated by Class (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with related allowance, recorded investment | $ 14,126 |
Impaired loans with related allowance, unpaid principal | 16,881 |
Impaired loans with related allowance, related allowance | 895 |
Impaired loan with no related allowance, recorded investment | 9,684 |
Impaired loan with no related allowance, unpaid principal | 11,759 |
Total impaired loans, recorded investment | 23,810 |
Total impaired loans, unpaid principal | 28,640 |
Commercial and industrial | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with related allowance, recorded investment | 6,080 |
Impaired loans with related allowance, unpaid principal | 8,350 |
Impaired loans with related allowance, related allowance | 241 |
Impaired loan with no related allowance, recorded investment | 2,946 |
Impaired loan with no related allowance, unpaid principal | 3,074 |
Construction | |
Financing Receivable, Impaired [Line Items] | |
Impaired loan with no related allowance, recorded investment | 2,061 |
Impaired loan with no related allowance, unpaid principal | 2,499 |
Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with related allowance, recorded investment | 264 |
Impaired loans with related allowance, unpaid principal | 324 |
Impaired loans with related allowance, related allowance | 8 |
Impaired loan with no related allowance, recorded investment | 1,083 |
Impaired loan with no related allowance, unpaid principal | 1,449 |
Residential real estate: | Residential line of credit | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with related allowance, recorded investment | 320 |
Impaired loans with related allowance, unpaid principal | 320 |
Impaired loans with related allowance, related allowance | 9 |
Impaired loan with no related allowance, recorded investment | 259 |
Impaired loan with no related allowance, unpaid principal | 280 |
Commercial real estate: | Owner occupied | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with related allowance, recorded investment | 756 |
Impaired loans with related allowance, unpaid principal | 1,140 |
Impaired loans with related allowance, related allowance | 238 |
Impaired loan with no related allowance, recorded investment | 2,237 |
Impaired loan with no related allowance, unpaid principal | 2,627 |
Commercial real estate: | Non-owner occupied | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with related allowance, recorded investment | 6,706 |
Impaired loans with related allowance, unpaid principal | 6,747 |
Impaired loans with related allowance, related allowance | 399 |
Impaired loan with no related allowance, recorded investment | 1,049 |
Impaired loan with no related allowance, unpaid principal | 1,781 |
Consumer and other | |
Financing Receivable, Impaired [Line Items] | |
Impaired loans with related allowance, recorded investment | 0 |
Impaired loans with related allowance, unpaid principal | 0 |
Impaired loans with related allowance, related allowance | 0 |
Impaired loan with no related allowance, recorded investment | 49 |
Impaired loan with no related allowance, unpaid principal | $ 49 |
Loans and allowance for cred_13
Loans and allowance for credit losses - Changes in Value of Accretable Yield for PCI Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Accretion | $ 2,554 | $ 3,928 | |
Purchased Credit Impaired | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at the beginning of period | $ (14,814) | (16,587) | |
Additions through business combinations | (1,167) | (1,167) | |
Principal reductions and other reclassifications from nonaccretable difference | 30 | 250 | |
Accretion | 1,705 | 3,888 | |
Changes in expected cash flows | (616) | (1,246) | |
Balance at end of period | $ (14,862) | $ (14,862) |
Loans and allowance for cred_14
Loans and allowance for credit losses - Financial Effect of TDRs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020USD ($)loan | Jun. 30, 2020USD ($)loan | Jun. 30, 2019USD ($)loan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | loan | 3 | 4 | 2 |
Pre-modification outstanding recorded investment | $ 1,954 | $ 2,018 | $ 3,188 |
Post-modification outstanding recorded investment | 1,954 | 2,018 | 3,188 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 |
Commercial and industrial | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | loan | 1 | 1 | 2 |
Pre-modification outstanding recorded investment | $ 1,153 | $ 1,153 | $ 3,188 |
Post-modification outstanding recorded investment | 1,153 | 1,153 | 3,188 |
Charge offs and specific reserves | $ 0 | $ 0 | $ 0 |
Commercial real estate: | Owner occupied | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | loan | 1 | 1 | |
Pre-modification outstanding recorded investment | $ 788 | $ 788 | |
Post-modification outstanding recorded investment | 788 | 788 | |
Charge offs and specific reserves | $ 0 | $ 0 | |
Residential real estate: | 1-to-4 family mortgage | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of loans | loan | 1 | 2 | |
Pre-modification outstanding recorded investment | $ 13 | $ 77 | |
Post-modification outstanding recorded investment | 13 | 77 | |
Charge offs and specific reserves | $ 0 | $ 0 |
Loans and allowance for cred_15
Loans and allowance for credit losses - Individually Assessed Allowance (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | $ 113,129 | $ 89,141 | $ 31,139 | $ 31,139 | $ 30,138 | $ 29,814 | $ 28,932 |
Individually assessed allowance for credit loss | 2,185 | ||||||
Commercial and industrial | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 8,878 | 10,881 | 4,805 | 4,923 | 5,514 | 5,348 | |
Individually assessed allowance for credit loss | 543 | ||||||
Construction | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 35,599 | 22,842 | 10,194 | 9,655 | 9,758 | 9,729 | |
Individually assessed allowance for credit loss | 0 | ||||||
Residential real estate: | 1-to-4 family mortgage | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 12,463 | 13,006 | 3,112 | 3,288 | 3,295 | 3,428 | |
Individually assessed allowance for credit loss | 0 | ||||||
Residential real estate: | Residential line of credit | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 6,811 | 6,213 | 752 | 755 | 731 | 811 | |
Individually assessed allowance for credit loss | 9 | ||||||
Residential real estate: | Multi-family mortgage | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 4,499 | 2,328 | 544 | 617 | 539 | 566 | |
Individually assessed allowance for credit loss | 0 | ||||||
Commercial real estate: | Owner occupied | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 7,420 | 9,047 | 4,109 | 3,512 | 3,098 | 3,132 | |
Individually assessed allowance for credit loss | 35 | ||||||
Commercial real estate: | Non-owner occupied | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 30,444 | 18,005 | 4,621 | 4,478 | 4,583 | 4,149 | |
Individually assessed allowance for credit loss | 1,563 | ||||||
Consumer and other | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 7,015 | $ 6,819 | $ 3,002 | $ 2,910 | $ 2,296 | $ 1,769 | |
Individually assessed allowance for credit loss | 35 | ||||||
Real Estate | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 11,764 | ||||||
Real Estate | Commercial and industrial | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Real Estate | Construction | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 1,232 | ||||||
Real Estate | Residential real estate: | 1-to-4 family mortgage | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 100 | ||||||
Real Estate | Residential real estate: | Residential line of credit | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 471 | ||||||
Real Estate | Residential real estate: | Multi-family mortgage | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Real Estate | Commercial real estate: | Owner occupied | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 1,461 | ||||||
Real Estate | Commercial real estate: | Non-owner occupied | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 8,500 | ||||||
Real Estate | Consumer and other | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Financial Assets and Equipment | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 3,398 | ||||||
Financial Assets and Equipment | Commercial and industrial | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 3,062 | ||||||
Financial Assets and Equipment | Construction | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Financial Assets and Equipment | Residential real estate: | 1-to-4 family mortgage | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Financial Assets and Equipment | Residential real estate: | Residential line of credit | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Financial Assets and Equipment | Residential real estate: | Multi-family mortgage | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Financial Assets and Equipment | Commercial real estate: | Owner occupied | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Financial Assets and Equipment | Commercial real estate: | Non-owner occupied | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | 0 | ||||||
Financial Assets and Equipment | Consumer and other | |||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||||
Loans | $ 336 |
Loans and allowance for cred_16
Loans and allowance for credit losses - Deferrals Program (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 918,258 |
Percentage of loans held for investment | 19.00% |
Commercial and industrial | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 164,804 |
Percentage of loans held for investment | 12.80% |
Residential real estate: | 1-to-4 family mortgage | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 83,590 |
Percentage of loans held for investment | 11.30% |
Residential real estate: | Residential line of credit | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 14,200 |
Percentage of loans held for investment | 6.00% |
Residential real estate: | Multi-family mortgage | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 45,321 |
Percentage of loans held for investment | 39.40% |
Construction | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 82,514 |
Percentage of loans held for investment | 14.90% |
Commercial real estate: | Owner occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 190,044 |
Percentage of loans held for investment | 27.80% |
Commercial real estate: | Non-owner occupied | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 321,707 |
Percentage of loans held for investment | 34.80% |
Consumer and other | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Outstanding loans balance | $ 16,078 |
Percentage of loans held for investment | 5.70% |
Other real estate owned - Summa
Other real estate owned - Summary of Other Real Estate Owned (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Other Real Estate [Roll Forward] | ||||
Balance at beginning of period | $ 17,072 | $ 12,828 | $ 18,939 | $ 12,643 |
Transfers from loans | 641 | 924 | 1,006 | 2,030 |
Transfers from (to) premises and equipment | 0 | 2,640 | (841) | 2,640 |
Proceeds from sale of other real estate owned | (2,708) | (1,148) | (4,150) | (1,864) |
Gain on sale of other real estate owned | 170 | 329 | 345 | 322 |
Loans provided for sales of other real estate owned | 0 | 0 | 0 | (166) |
Write-downs and partial liquidations | (84) | (52) | (208) | (84) |
Balance at end of period | $ 15,091 | $ 15,521 | $ 15,091 | $ 15,521 |
Other real estate owned - Narra
Other real estate owned - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Real Estate Properties [Line Items] | ||
Other real estate owned included excess land and facilities held for sale | $ 7,751 | $ 8,956 |
Residential Real Estate Properties | ||
Real Estate Properties [Line Items] | ||
Foreclosed residential real estate properties | 3,045 | 4,295 |
Total foreclosure proceedings in process | $ 239 | $ 82 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Goodwill activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 169,051 | $ 137,190 |
Addition from acquisition | 6,390 | 31,396 |
Relief of goodwill due to sale of TPO mortgage delivery channel | 0 | (100) |
Goodwill, ending balance | $ 175,441 | $ 168,486 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Schedule of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 54,853 | $ 52,363 |
Accumulated Amortization | (37,182) | (34,774) |
Net Carrying Amount | 17,671 | 17,589 |
Core deposit intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 52,165 | 49,675 |
Accumulated Amortization | (36,080) | (33,861) |
Net Carrying Amount | 16,085 | 15,814 |
Customer base trust intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,600 | 1,600 |
Accumulated Amortization | (467) | (387) |
Net Carrying Amount | 1,133 | 1,213 |
Manufactured housing servicing intangible | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,088 | 1,088 |
Accumulated Amortization | (635) | (526) |
Net Carrying Amount | $ 453 | $ 562 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Narrative (Details) - Farmers National - Core deposit intangible $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 2,490 |
Estimated useful life of intangible assets | 4 years |
Goodwill and intangible asset_5
Goodwill and intangible assets - Schedule of Estimated Aggregate Amortization Expense of Core Deposit and Other Intangibles (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 2,287 | |
2021 | 4,089 | |
2022 | 3,350 | |
2023 | 2,574 | |
2024 | 2,015 | |
Thereafter | 3,356 | |
Net Carrying Amount | $ 17,671 | $ 17,589 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Thousands | Dec. 31, 2020USD ($)ft² | Jun. 30, 2020USD ($)operatingLeaselease_renew_option | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |||
Lessee, number of operating leases, noncurrent | operatingLease | 45 | ||
Lessee, number of total operating leases, noncurrent | operatingLease | 36 | ||
Lessee, operating lease, number of options to renew | lease_renew_option | 1 | ||
Operating lease right-of-use assets | $ 30,447 | $ 32,539 | |
Operating lease liabilities | $ 33,803 | $ 35,525 | |
Forecast | Corporate headquarters | |||
Lessee, Lease, Description [Line Items] | |||
Net rentable area (square feet) | ft² | 52 | ||
Operating lease right-of-use assets | $ 29,000 | ||
Operating lease liabilities | $ 30,000 | ||
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, term of contract | 1 year | ||
Lessee, operating lease, renewal term | 20 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, term of contract | 35 years |
Leases - Operating Leases (Deta
Leases - Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Right-of-use assets | $ 30,447 | $ 32,539 |
Lease liabilities | $ 33,803 | $ 35,525 |
Weighted average remaining lease term (in years) | 13 years 11 months 4 days | 14 years 25 days |
Weighted average discount rate | 3.44% | 3.40% |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 1,389 | $ 1,421 | $ 2,678 | $ 2,533 |
Short-term lease cost | 30 | 260 | 166 | 484 |
Variable lease cost | 160 | 99 | 298 | 199 |
Total lease cost | $ 1,579 | $ 1,780 | $ 3,142 | $ 3,216 |
Leases - Maturity (Details)
Leases - Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Lease payments due: | ||
June 30, 2021 | $ 5,432 | |
June 30, 2022 | 4,807 | |
June 30, 2023 | 4,075 | |
June 30, 2024 | 3,624 | |
June 30, 2025 | 3,057 | |
Thereafter | 22,713 | |
Total undiscounted future minimum lease payments | 43,708 | |
Discount on cash flows | (9,905) | |
Lease liabilities | $ 33,803 | $ 35,525 |
Mortgage servicing rights - Sch
Mortgage servicing rights - Schedule of Changes in Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing Asset at Fair Value, Amount [Roll Forward] | ||||
Carrying value at beginning of period | $ 62,581 | $ 64,031 | $ 75,521 | $ 88,829 |
Capitalization | 12,267 | 11,212 | 20,063 | 19,932 |
Sales | 0 | 0 | 0 | (29,160) |
Change in fair value: | ||||
Due to pay-offs/pay-downs | (7,277) | (3,305) | (11,920) | (5,100) |
Due to change in valuation inputs or assumptions | (7,063) | (5,558) | (23,156) | (8,121) |
Carrying value at end of period | $ 60,508 | $ 66,380 | $ 60,508 | $ 66,380 |
Mortgage servicing rights - S_2
Mortgage servicing rights - Schedule of Servicing Income and Expense Included in Mortgage Banking Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Servicing income: | ||||
Servicing income | $ 5,113 | $ 4,052 | $ 10,131 | $ 8,803 |
Change in fair value of mortgage servicing rights | (14,340) | (8,863) | (35,076) | (13,221) |
Change in fair value of derivative hedging instruments | 1,102 | 5,063 | 15,970 | 7,540 |
Servicing income | (8,125) | 252 | (8,975) | 3,122 |
Servicing expenses | 1,992 | 1,485 | 3,393 | 3,229 |
Net servicing (loss) income | $ (10,117) | $ (1,233) | $ (12,368) | $ (107) |
Mortgage servicing rights - S_3
Mortgage servicing rights - Schedule of Data and Key Economic Assumptions Related to Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | ||
Unpaid principal balance | $ 7,700,862 | $ 6,734,496 |
Weighted-average prepayment speed (CPR) | 15.60% | 10.05% |
Estimated impact on fair value of a 10% increase | $ (3,755) | $ (2,839) |
Estimated impact on fair value of a 20% increase | $ (7,170) | $ (5,474) |
Discount rate | 10.75% | 9.68% |
Estimated impact on fair value of a 100 bp increase | $ (2,230) | $ (3,086) |
Estimated impact on fair value of a 200 bp increase | $ (4,300) | $ (5,932) |
Weighted-average coupon interest rate | 3.94% | 4.20% |
Weighted-average servicing fee (basis points) | 0.28% | 0.29% |
Weighted-average remaining maturity (in months) | 332 months | 335 months |
Mortgage servicing rights - Nar
Mortgage servicing rights - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Transfers and Servicing of Financial Assets [Abstract] | |||||
Mortgage servicing rights sold | $ 0 | $ 0 | $ 0 | $ 29,160 | |
Mortgage loans serviced | $ 2,034,374 | $ 2,034,374 | |||
Mortgage escrow deposit | $ 149,053 | $ 149,053 | $ 92,610 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Current | $ 15,747 | $ 6,546 | $ 23,915 | $ 16,740 |
Provision for deferred income taxes | (8,292) | (232) | (16,380) | (4,451) |
Total | $ 7,455 | $ 6,314 | $ 7,535 | $ 12,289 |
Income taxes - Schedule of Reco
Income taxes - Schedule of Reconciliation of Income Taxes Computed at the United States Federal Statutory Tax Rates to the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Federal taxes calculated at statutory rate | $ 6,369 | $ 5,251 | $ 6,542 | $ 10,619 |
Federal taxes calculated at statutory rate, percent | 21.00% | 21.00% | 21.00% | 21.00% |
Increase (decrease) resulting from: | ||||
State taxes, net of federal benefit | $ 1,298 | $ 1,205 | $ 1,166 | $ 2,343 |
Benefit of equity based compensation | 22 | (1) | 161 | (393) |
Municipal interest income, net of interest disallowance | (310) | (223) | (574) | (439) |
Bank owned life insurance | (17) | (15) | (35) | (27) |
Merger costs | 32 | 0 | 163 | 0 |
Other | 61 | 97 | 112 | 186 |
Total | $ 7,455 | $ 6,314 | $ 7,535 | $ 12,289 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
State taxes, net of federal benefit, percent | 4.30% | 4.80% | 3.70% | 4.60% |
Benefit of equity based compensation, percent | 0.10% | 0.00% | 0.50% | (0.80%) |
Municipal interest income, net of interest disallowance, percent | (1.00%) | (0.90%) | (1.80%) | (0.90%) |
Bank owned life insurance, percent | (0.10%) | 0.00% | (0.10%) | 0.00% |
Merger costs, percent | 0.10% | 0.00% | 0.50% | 0.00% |
Other, percent | 0.20% | 0.40% | 0.40% | 0.40% |
Total, percentage | 24.60% | 25.30% | 24.20% | 24.30% |
Income taxes - Schedule of Net
Income taxes - Schedule of Net Deferred Tax liability (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 |
Deferred tax assets: | |||
Allowance for credit losses | $ 31,170 | $ 8,113 | |
Operating lease liability | 8,924 | 9,373 | |
Amortization of core deposit intangible | 986 | 1,386 | |
Deferred compensation | 4,623 | 5,231 | |
Unrealized loss on debt securities | 54 | 54 | |
Unrealized loss on equity securities | 51 | 60 | |
Unrealized loss on cash flow hedges | 345 | 0 | |
Other | 3,041 | 2,388 | |
Subtotal | 49,194 | 26,605 | |
Deferred tax liabilities: | |||
FHLB stock dividends | (550) | (550) | |
Operating lease - right of use asset | (8,084) | (8,641) | |
Depreciation | (5,802) | (5,078) | |
Unrealized gain on cash flow hedges | 0 | (203) | |
Unrealized gain on debt securities | (7,758) | (3,051) | |
Mortgage servicing rights | (15,766) | (19,678) | |
Goodwill | (10,080) | (8,859) | |
Other | (1,234) | (1,035) | |
Subtotal | (49,274) | (47,095) | |
Net deferred tax liability | $ (80) | $ (20,490) | $ (20,490) |
Commitments and contingencies -
Commitments and contingencies - Summary of Financial Instruments with Off-Balance Sheet Credit Risk (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 1,164,039 | $ 1,105,742 |
Commitments to extend credit, excluding interest rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | 1,146,158 | 1,086,173 |
Letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Balance at end of period | $ 17,881 | $ 19,569 |
Commitments and contingencies_2
Commitments and contingencies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Loss Contingencies [Line Items] | ||||||||
Stockholders' equity | $ 805,216 | $ 718,759 | $ 805,216 | $ 718,759 | $ 782,330 | $ 762,329 | $ 694,577 | $ 671,857 |
Total principal amount of loans repurchased or indemnified | 1,568 | 2,117 | 4,367 | 3,510 | ||||
Period of adoption, adjustment | ||||||||
Loss Contingencies [Line Items] | ||||||||
Stockholders' equity | (25,018) | (1,309) | ||||||
Unfunded Commitments | ||||||||
Loss Contingencies [Line Items] | ||||||||
Initial recognition of allowance for credit losses | 0 | 2,947 | ||||||
Retained earnings | ||||||||
Loss Contingencies [Line Items] | ||||||||
Stockholders' equity | $ 286,296 | $ 253,080 | $ 286,296 | $ 253,080 | $ 266,385 | 293,524 | $ 236,947 | 221,213 |
Retained earnings | Period of adoption, adjustment | ||||||||
Loss Contingencies [Line Items] | ||||||||
Stockholders' equity | $ (25,018) | $ (1,309) |
Commitments and contingencies C
Commitments and contingencies Commitments and contingencies - Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | $ 89,141 | $ 31,139 | ||
Balance at end of period | 113,129 | 113,129 | ||
Unfunded Commitments | ||||
Commitments and Contingencies [Roll Forward] | ||||
Balance at beginning of period | 4,618 | 0 | ||
Initial recognition of allowance for credit losses | $ 0 | $ 2,947 | ||
Increase from unfunded commitments acquired in business combination | 0 | 70 | ||
Provision for credit losses on unfunded commitments | 1,882 | 3,483 | ||
Balance at end of period | $ 6,500 | $ 6,500 |
Commitments and contingencies_3
Commitments and contingencies - Summary of Allowance for Loan Repurchases or Indemnifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Balance at beginning of period | $ 3,829 | $ 3,332 | $ 3,529 | $ 3,273 |
Provision for loan repurchases or indemnifications | 855 | 89 | 1,227 | 148 |
Recoveries on previous losses | (83) | (14) | (155) | (14) |
Balance at end of period | $ 4,601 | $ 3,407 | $ 4,601 | $ 3,407 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Jul. 31, 2017USD ($)derivative | Mar. 31, 2018USD ($) | Jun. 30, 2020USD ($)derivative | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||||||||
Notional Amount | $ 100,000 | |||||||
Stockholders' equity | $ 805,216 | $ 782,330 | $ 762,329 | $ 718,759 | $ 694,577 | $ 671,857 | ||
Cash collateral pledged on derivatives | $ 46,267 | 33,616 | ||||||
Subordinated Debentures | ||||||||
Derivative [Line Items] | ||||||||
Number of derivative instruments | derivative | 2 | |||||||
Long-term debt | $ 30,930 | |||||||
Interest rate swaps | ||||||||
Derivative [Line Items] | ||||||||
Number of derivative instruments | derivative | 3 | |||||||
Interest rate swaps | Designated as hedging: | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 30,000 | 30,000 | ||||||
Interest rate swaps | Subordinated Debentures | ||||||||
Derivative [Line Items] | ||||||||
Notional Amount | 30,000 | |||||||
Fair value of interest rate swap | (2,215) | (515) | ||||||
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 | |||||||
Gain on canceled derivatives | $ 1,564 | |||||||
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | ||||||||
Derivative [Line Items] | ||||||||
Stockholders' equity | $ 660 | $ 955 | ||||||
London Interbank Offered Rate (LIBOR) | Interest rate swaps | Subordinated Debentures | ||||||||
Derivative [Line Items] | ||||||||
Variable interest rate | 2.08% |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jul. 31, 2017 |
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 100,000 | ||
Net amounts presented in the consolidated balance sheets | $ 4,562 | $ 331 | |
Net amounts presented in the consolidated balance sheets | 41,059 | 14,682 | |
Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 3,138,839 | 1,967,191 | |
Net amounts presented in the consolidated balance sheets | 80,544 | 21,981 | |
Net amounts presented in the consolidated balance sheets | 47,854 | 17,418 | |
Interest rate contracts | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 541,983 | 440,556 | |
Net amounts presented in the consolidated balance sheets | 41,236 | 14,929 | |
Net amounts presented in the consolidated balance sheets | 41,068 | 14,929 | |
Forward commitments | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,142,224 | 684,437 | |
Net amounts presented in the consolidated balance sheets | 0 | 0 | |
Net amounts presented in the consolidated balance sheets | 6,786 | 866 | |
Interest rate-lock commitments | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 1,205,932 | 453,198 | |
Net amounts presented in the consolidated balance sheets | 37,055 | 7,052 | |
Net amounts presented in the consolidated balance sheets | 0 | 0 | |
Futures contracts | Not designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 248,700 | 389,000 | |
Net amounts presented in the consolidated balance sheets | 2,253 | 0 | |
Net amounts presented in the consolidated balance sheets | 0 | 1,623 | |
Interest rate swaps | Designated as hedging: | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 30,000 | 30,000 | |
Net amounts presented in the consolidated balance sheets | 0 | 0 | |
Net amounts presented in the consolidated balance sheets | $ 2,215 | $ 515 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivatives, Fair Value [Line Items] | ||||
Reclassification adjustment for gain on hedging activities, tax | $ (52) | $ (42) | $ (104) | $ (75) |
Amount of (loss) gain recognized in other comprehensive income | (112) | (564) | (1,257) | (895) |
Amount of loss recognized in other comprehensive income, tax | (40) | (201) | (443) | (317) |
Not designated as hedging: | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (3,821) | 749 | 1,095 | 109 |
Designated as hedging: | ||||
Derivatives, Fair Value [Line Items] | ||||
Total cash flow hedge gain (loss) and derivative excluded component increase (decrease) | 86 | 158 | 221 | 307 |
Designated as hedging: | Interest Expense on Borrowings | ||||
Derivatives, Fair Value [Line Items] | ||||
Amount of gain (loss) reclassified from other comprehensive income and recognized in interest expense on borrowings | 148 | 119 | 295 | 213 |
(Loss) gain included in interest expense on borrowings | (62) | 39 | (74) | 94 |
Interest rate-lock commitments | Not designated as hedging: | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 9,541 | 1,875 | 30,003 | 3,755 |
Forward commitments | Not designated as hedging: | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | (13,993) | (5,264) | (40,450) | (9,668) |
Futures contracts | Not designated as hedging: | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | 631 | 4,107 | 11,542 | 5,978 |
Option contracts | Not designated as hedging: | Mortgage Banking Income | ||||
Derivatives, Fair Value [Line Items] | ||||
Gains (losses) on derivative financial instruments | $ 0 | $ 31 | $ 0 | $ 44 |
Derivatives - Offsetting Deriva
Derivatives - Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross amounts recognized | $ 4,562 | $ 331 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 4,562 | 331 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 1,054 | 139 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 0 | 0 |
Net amounts | 3,508 | 192 |
Gross amounts recognized | 41,059 | 14,682 |
Gross amounts offset in the consolidated balance sheets | 0 | 0 |
Net amounts presented in the consolidated balance sheets | 41,059 | 14,682 |
Gross amounts not offset in the consolidated balance sheets, less financial instruments | 1,054 | 139 |
Gross amounts not offset in the consolidated balance sheets, less financial collateral pledged | 40,005 | 14,543 |
Net amounts | $ 0 | $ 0 |
Fair value of financial instr_3
Fair value of financial instruments - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Interest receivable | $ 26,587 | $ 17,083 |
Derivatives | 4,562 | 331 |
Financial liabilities: | ||
Derivatives | 41,059 | 14,682 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 717,592 | 232,681 |
Investment securities | 0 | 0 |
Loans, net | 0 | 0 |
Loans held for sale | 0 | 0 |
Interest receivable | 45 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 4,761,306 | 3,743,085 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreement to repurchase and federal funds sold | 32,732 | 23,745 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debt | 0 | 0 |
Other borrowings | 0 | |
Interest Payable | 207 | 376 |
Derivatives | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 751,767 | 691,676 |
Loans, net | 0 | 0 |
Loans held for sale | 435,479 | 262,518 |
Interest receivable | 3,533 | 3,282 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 80,544 | 21,981 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 1,204,271 | 1,200,145 |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 |
Federal Home Loan Bank advances | 258,901 | 250,213 |
Subordinated debt | 23,396 | 29,706 |
Other borrowings | 15,000 | |
Interest Payable | 6,872 | 6,089 |
Derivatives | 50,069 | 17,933 |
Level 3 | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities | 0 | 0 |
Loans, net | 4,755,504 | 4,363,903 |
Loans held for sale | 0 | 0 |
Interest receivable | 23,009 | 13,801 |
Mortgage servicing rights | 60,508 | 75,521 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Deposits, Without stated maturities | 0 | 0 |
Deposits, With stated maturities | 0 | 0 |
Securities sold under agreement to repurchase and federal funds sold | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated debt | 0 | 0 |
Other borrowings | 0 | |
Interest Payable | 0 | 0 |
Derivatives | 0 | 0 |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 717,592 | 232,681 |
Investment securities | 751,767 | 691,676 |
Loans, net | 4,713,894 | 4,378,503 |
Loans held for sale | 435,479 | 262,518 |
Interest receivable | 26,587 | 17,083 |
Mortgage servicing rights | 60,508 | 75,521 |
Derivatives | 80,544 | 21,981 |
Financial liabilities: | ||
Deposits, Without stated maturities | 4,761,306 | 3,743,085 |
Deposits, With stated maturities | 1,191,495 | 1,191,853 |
Securities sold under agreement to repurchase and federal funds sold | 32,732 | 23,745 |
Federal Home Loan Bank advances | 250,000 | 250,000 |
Subordinated debt | 30,930 | 30,930 |
Other borrowings | 15,000 | |
Interest Payable | 7,079 | 6,465 |
Derivatives | 50,069 | 17,933 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 717,592 | 232,681 |
Investment securities | 751,767 | 691,676 |
Loans, net | 4,755,504 | 4,363,903 |
Loans held for sale | 435,479 | 262,518 |
Interest receivable | 26,587 | 17,083 |
Mortgage servicing rights | 60,508 | 75,521 |
Derivatives | 80,544 | 21,981 |
Financial liabilities: | ||
Deposits, Without stated maturities | 4,761,306 | 3,743,085 |
Deposits, With stated maturities | 1,204,271 | 1,200,145 |
Securities sold under agreement to repurchase and federal funds sold | 32,732 | 23,745 |
Federal Home Loan Bank advances | 258,901 | 250,213 |
Subordinated debt | 23,396 | 29,706 |
Other borrowings | 15,000 | |
Interest Payable | 7,079 | 6,465 |
Derivatives | $ 50,069 | $ 17,933 |
Fair value of financial instr_4
Fair value of financial instruments - Balances and Levels of Assets Measured at Fair Value on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Available-for-sale debt securities, at fair value | $ 747,438 | $ 688,381 |
Equity securities, at fair value | 4,329 | 3,295 |
Derivatives | 4,562 | 331 |
Collateral dependent loans | 23,810 | |
Financial liabilities: | ||
Derivatives | 41,059 | 14,682 |
Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 266,052 | 189,235 |
Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 22,771 | 7,448 |
Corporate securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 985 | 1,022 |
Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Significant other observable inputs (level 2) | ||
Financial assets: | ||
Investment securities | 751,767 | 691,676 |
Loans held for sale | 435,479 | 262,518 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 80,544 | 21,981 |
Financial liabilities: | ||
Derivatives | 50,069 | 17,933 |
Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 60,508 | 75,521 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | ||
Financial assets: | ||
Equity securities, at fair value | 4,329 | 3,295 |
Investment securities | 751,767 | 691,676 |
Loans held for sale | 435,479 | 262,518 |
Mortgage servicing rights | 60,508 | 75,521 |
Derivatives | 80,544 | 21,981 |
Financial liabilities: | ||
Derivatives | 50,069 | 17,933 |
Fair Value, Measurements, Recurring | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 3,024 | |
Fair Value, Measurements, Recurring | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 454,606 | 490,676 |
Fair Value, Measurements, Recurring | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 266,052 | 189,235 |
Fair Value, Measurements, Recurring | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 22,771 | 7,448 |
Fair Value, Measurements, Recurring | Corporate securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 985 | 1,022 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Corporate securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | ||
Financial assets: | ||
Equity securities, at fair value | 4,329 | 3,295 |
Investment securities | 751,767 | 691,676 |
Loans held for sale | 435,479 | 262,518 |
Mortgage servicing rights | 0 | 0 |
Derivatives | 80,544 | 21,981 |
Financial liabilities: | ||
Derivatives | 50,069 | 17,933 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 3,024 | |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 454,606 | 490,676 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 266,052 | 189,235 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 22,771 | 7,448 |
Fair Value, Measurements, Recurring | Significant other observable inputs (level 2) | Corporate securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 985 | 1,022 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Equity securities, at fair value | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Mortgage servicing rights | 60,508 | 75,521 |
Derivatives | 0 | 0 |
Financial liabilities: | ||
Derivatives | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | U.S. government agency securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | Mortgage-backed securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | Municipals, tax exempt | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | Treasury securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Recurring | Significant unobservable inputs (level 3) | Corporate securities | ||
Financial assets: | ||
Available-for-sale debt securities, at fair value | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Financial assets: | ||
Other real estate owned | 3,407 | 9,774 |
Collateral dependent loans | 15,162 | 10,691 |
Fair Value, Measurements, Nonrecurring | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 3,062 | 6,481 |
Fair Value, Measurements, Nonrecurring | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 311 | 321 |
Fair Value, Measurements, Nonrecurring | Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | 336 | |
Fair Value, Measurements, Nonrecurring | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Collateral dependent loans | 100 | 378 |
Fair Value, Measurements, Nonrecurring | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | 1,461 | 951 |
Fair Value, Measurements, Nonrecurring | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | 8,500 | 2,560 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Quoted prices in active markets for identical assets (liabilities) (level 1) | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | ||
Financial assets: | ||
Other real estate owned | 0 | 0 |
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | 0 | |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant other observable inputs (level 2) | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | ||
Financial assets: | ||
Other real estate owned | 3,407 | 9,774 |
Collateral dependent loans | 15,162 | 10,691 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Commercial and industrial | ||
Financial assets: | ||
Collateral dependent loans | 3,062 | 6,481 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Residential line of credit | ||
Financial assets: | ||
Collateral dependent loans | 471 | 321 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Consumer and other | ||
Financial assets: | ||
Collateral dependent loans | 336 | |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | 1-to-4 family mortgage | Residential real estate: | ||
Financial assets: | ||
Collateral dependent loans | 100 | 378 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | 1,461 | 951 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Non-owner occupied | Commercial real estate: | ||
Financial assets: | ||
Collateral dependent loans | $ 8,500 | $ 2,560 |
Fair value of financial instr_5
Fair value of financial instruments - Information about Significant Unobservable Inputs (Level 3) Used in Valuation of Assets Measured at Fair Value on Nonrecurring Basis (Details) $ in Thousands | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 23,810 | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Impaired loans | $ 15,162 | 10,691 |
Other real estate owned | 3,407 | 9,774 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans | 15,162 | |
Impaired loans | 15,162 | 10,691 |
Other real estate owned | $ 3,407 | $ 9,774 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0 | |
Impaired loans, measurement input | 0.00% | |
Other real estate owned, measurement input | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Significant unobservable inputs (level 3) | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Collateral dependent loans, measurement input | 0.30 | |
Impaired loans, measurement input | 30.00% | |
Other real estate owned, measurement input | 0.15 | 0.15 |
Fair value of financial instr_6
Fair value of financial instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Mortgage Loans | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Net (losses) gains from fair value changes of mortgage loans | $ 8,048 | $ 2,169 | $ 13,866 | $ 962 | |
GNMA | |||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||
Delinquent GNMA loans that had been previously sold | $ 81,229 | $ 81,229 | $ 51,705 |
Fair value of financial instr_7
Fair value of financial instruments - Schedule of Differences between Fair Value and Principal Balance for Loans Held for Sale Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | $ 435,479 | $ 262,518 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | 0 | 0 |
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 | 413,963 | 254,868 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | 0 | 0 |
Difference | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mortgage loans held for sale measured at fair value | 21,516 | 7,650 |
Past due loans of 90 days or more | 0 | 0 |
Nonaccrual loans | $ 0 | $ 0 |
Segment reporting - Additional
Segment reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 2 | |||
Other noninterest expense | $ 39,332 | $ 39,724 | $ 80,454 | $ 72,737 |
Relief of goodwill due to sale of TPO mortgage delivery channel | 0 | 100 | ||
Interest income | 61,092 | 66,276 | 124,846 | 126,724 |
Mortgage Segment | ||||
Segment Reporting Information [Line Items] | ||||
Other noninterest expense | 0 | 829 | 0 | 1,883 |
Relief of goodwill due to sale of TPO mortgage delivery channel | 100 | 100 | ||
Interest paid | $ 3,335 | $ 3,290 | $ 5,710 | $ 5,848 |
Mortgage Segment | Prime Interest Rate | ||||
Segment Reporting Information [Line Items] | ||||
Warehouse line of credit interest rate | 3.25% | 5.50% | 3.25% | 5.50% |
Banking Segment | ||||
Segment Reporting Information [Line Items] | ||||
Other noninterest expense | $ 39,332 | $ 38,895 | $ 80,454 | $ 70,854 |
Interest income | $ 3,335 | $ 3,290 | $ 5,710 | $ 5,848 |
Segment reporting - Schedule of
Segment reporting - Schedule of Segment Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||||||
Net interest income | $ 55,337 | $ 57,023 | $ 111,586 | $ 110,039 | ||
Provisions for credit losses | 25,921 | 881 | 55,486 | 2,272 | ||
Mortgage banking income | 85,406 | 28,326 | 124,019 | 51,228 | ||
Change in fair value of mortgage servicing rights, net of hedging | (13,238) | (3,800) | (19,106) | (5,681) | ||
Other noninterest income | 9,323 | 8,453 | 19,278 | 16,471 | ||
Depreciation and amortization | 1,619 | 1,278 | 3,231 | 2,450 | ||
Amortization of intangibles | 1,205 | 1,254 | 2,408 | 1,983 | ||
Other noninterest mortgage banking expense | 38,423 | 21,863 | 63,045 | 42,050 | ||
Other noninterest expense | 39,332 | 39,724 | 80,454 | 72,737 | ||
Income before income taxes | 30,328 | 25,002 | 31,153 | 50,565 | ||
Income tax expense | 7,455 | 6,314 | 7,535 | 12,289 | ||
Net income | 22,873 | 18,688 | 23,618 | 38,276 | ||
Total assets | 7,255,536 | 5,940,402 | 7,255,536 | 5,940,402 | $ 6,124,921 | |
Goodwill | 175,441 | 168,486 | 175,441 | 168,486 | $ 169,051 | $ 137,190 |
Provision for credit losses on unfunded commitments | 1,882 | 0 | 3,483 | 0 | ||
Merger costs | 1,586 | 3,783 | 4,636 | 4,404 | ||
Banking Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net interest income | 55,350 | 56,979 | 111,583 | 109,972 | ||
Provisions for credit losses | 25,921 | 881 | 55,486 | 2,272 | ||
Mortgage banking income | 16,940 | 5,451 | 27,591 | 9,837 | ||
Change in fair value of mortgage servicing rights, net of hedging | 0 | 0 | 0 | 0 | ||
Other noninterest income | 9,323 | 8,453 | 19,278 | 16,471 | ||
Depreciation and amortization | 1,503 | 1,134 | 2,995 | 2,176 | ||
Amortization of intangibles | 1,205 | 1,254 | 2,408 | 1,983 | ||
Other noninterest mortgage banking expense | 11,542 | 4,172 | 18,717 | 7,003 | ||
Other noninterest expense | 39,332 | 38,895 | 80,454 | 70,854 | ||
Income before income taxes | 2,110 | 24,547 | (1,608) | 51,992 | ||
Total assets | 6,751,881 | 5,552,893 | 6,751,881 | 5,552,893 | ||
Goodwill | 175,441 | 168,486 | 175,441 | 168,486 | ||
Merger costs | 1,586 | 3,783 | 4,636 | |||
Mortgage Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net interest income | (13) | 44 | 3 | 67 | ||
Provisions for credit losses | 0 | 0 | 0 | 0 | ||
Mortgage banking income | 68,466 | 22,875 | 96,428 | 41,391 | ||
Change in fair value of mortgage servicing rights, net of hedging | (13,238) | (3,800) | (19,106) | (5,681) | ||
Other noninterest income | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 116 | 144 | 236 | 274 | ||
Amortization of intangibles | 0 | 0 | 0 | 0 | ||
Other noninterest mortgage banking expense | 26,881 | 17,691 | 44,328 | 35,047 | ||
Other noninterest expense | 0 | 829 | 0 | 1,883 | ||
Income before income taxes | 28,218 | 455 | 32,761 | (1,427) | ||
Total assets | 503,655 | 387,509 | 503,655 | 387,509 | ||
Goodwill | $ 0 | $ 0 | $ 0 | $ 0 |
Minimum capital requirements -
Minimum capital requirements - Schedule of Actual and Required Capital Amounts and Ratios (Details) $ in Thousands | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
FB Financial Corporation | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 735,555 | $ 633,549 |
Total Capital (to risk-weighted assets), Actual Ratio | 0.134 | 0.122 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 439,137 | $ 415,442 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 0.080 | 0.080 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 576,368 | $ 545,268 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 10.50% | 10.50% |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 666,090 | $ 602,410 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 0.121 | 0.116 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 330,293 | $ 311,591 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 0.060 | 0.060 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 467,914 | $ 441,421 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
Tier 1 Capital (to average assets), Actual Amount | $ 666,090 | $ 602,410 |
Tier 1 Capital (to average assets), Actual Ratio | 0.097 | 0.101 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 274,676 | $ 238,578 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio | 0.040 | 0.040 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 636,090 | $ 572,410 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 11.60% | 11.10% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 246,759 | $ 232,058 |
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 | $ 383,847 | $ 360,979 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.00% | 7.00% |
FirstBank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital (to risk-weighted assets), Actual Amount | $ 742,321 | $ 623,432 |
Total Capital (to risk-weighted assets), Actual Ratio | 0.135 | 0.121 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 439,894 | $ 412,186 |
Total Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 0.080 | 0.080 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 577,361 | $ 540,995 |
Total Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 10.50% | 10.50% |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 549,867 | $ 515,233 |
Total Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 672,856 | $ 592,293 |
Tier 1 Capital (to risk-weighted assets), Actual Ratio | 0.123 | 0.115 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 328,222 | $ 309,022 |
Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Ratio | 0.060 | 0.060 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Amount | $ 464,982 | $ 437,782 |
Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 8.50% | 8.50% |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Amount | $ 437,630 | $ 412,030 |
Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions Ratio | 0.080 | 0.080 |
Tier 1 Capital (to average assets), Actual Amount | $ 672,856 | $ 592,293 |
Tier 1 Capital (to average assets), Actual Ratio | 0.097 | 0.099 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Amount | $ 277,466 | $ 239,310 |
Tier 1 Capital (to average assets), For capital adequacy purposes, Ratio | 0.040 | 0.040 |
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Amount | $ 346,833 | $ 299,138 |
Tier 1 Capital (to average assets), To be well capitalized under prompt corrective action provisions, Ratio | 0.050 | 0.050 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Amount | $ 672,856 | $ 592,293 |
Common Equity Tier 1 Capital (to risk-weighted assets), Actual Ratio | 12.30% | 11.50% |
Common Equity Tier 1 Capital (to risk-weighted assets), For capital adequacy purposes, Amount | $ 246,167 | $ 231,767 |
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 | $ 382,926 | $ 360,526 |
Common Equity Tier 1 Capital (to risk-weighted assets), Minimum Capital adequacy with capital buffer, Ratio | 7.00% | 7.00% |
Common Equity Tier 1 Capital (to risk-weighted assets), To be well capitalized under prompt corrective action provisions, Amount | $ 355,574 | $ 334,774 |
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 | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Restricted Stock Units Outstanding | ||
Restricted Stock Units Outstanding, Balance, beginning of period (in shares) | 826,263,000 | 1,140,215,000 |
Restricted Stock Units Outstanding, Grants (in shares) | 132,605,000 | 165,761,000 |
Restricted Stock Units Outstanding, Released and distributed (vested) (in shares) | (132,203,000) | (195,755,000) |
Restricted Stock Units Outstanding, Forfeited/expired (in shares) | (14,826,000) | (9,581,000) |
Restricted Stock Units Outstanding, Balance, end of period (in shares) | 811,839,000 | 1,100,640,000 |
Weighted Average Grant Date Fair Value | ||
Weighted Average Grant Date Fair Value, Balance, beginning of period (USD per share) | $ 23.76 | $ 21.96 |
Weighted Average Grant Date Fair Value, Grants (USD per share) | 33.92 | 34.03 |
Weighted Average Grant Date Fair Value, Released and distributed (vested) (USD per share) | 32.52 | 25.62 |
Weighted Average Grant Date Fair Value, Forfeited/expired (USD per share) | 34.24 | 24.72 |
Weighted Average Grant Date Fair Value, Balance, end of period (USD per share) | $ 24.84 | $ 25.53 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | $ 4,233 | $ 3,785 | |||
Dividends declared not paid on restricted stock units | $ 77 | $ 119 | $ 77 | 119 | |
Award vesting, percentage | 181.00% | ||||
Maximum worth of award per participant | $ 25 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Fair value of restricted stock units vested and released | 1,048 | 482 | 4,299 | 5,015 | |
Compensation cost related to nonvested awards | 2,015 | 2,147 | $ 3,817 | $ 3,785 | |
Granted (in shares) | 132,605,000 | 165,761,000 | |||
Restricted Stock Units (RSUs) | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | 231 | $ 179 | $ 378 | $ 351 | |
Stock-Settled EBI Units and Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost related to nonvested awards | 10,810 | $ 10,810 | $ 11,499 | ||
Expected weighted-average period to be recognized | 2 years 2 months 15 days | 2 years | |||
Dividends declared not paid on restricted stock units | 452 | $ 452 | $ 375 | ||
Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost related to nonvested awards | 335 | 416 | |||
Unrecognized compensation cost related to nonvested awards | $ 3,067 | $ 3,067 | |||
Expected weighted-average period to be recognized | 2 years 7 months 20 days | ||||
Criteria period | 3 years | ||||
Vesting period | 3 years | ||||
Granted (in shares) | 53,147 | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Purchase price percentage of subsequent offering periods | 95.00% | ||||
Maximum number of shares issuable (in shares) | 200,000 | 200,000 | |||
Maximum number of shares per participant (in shares) | 725 | ||||
Shares issued under plan (in shares) | 0 | 0 | 12,145,000 | 10,613,000 | |
Number of shares reserved for issuance (in shares) | 2,397,040 | 2,397,040 | 2,409,185 | ||
Minimum | Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Core return threshold percentages | 0.00% | ||||
Maximum | Performance Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Core return threshold percentages | 200.00% |
Related party transactions - Sc
Related party transactions - Schedule of Loans Analysis to Executive Officers, Certain Management, Bank Directors and Their Affiliates (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Financing Receivable, Related Parties [Roll Forward] | |
Loans outstanding, beginning balance | $ 30,880 |
New loans and advances | 5,619 |
Change in related party status | 248 |
Repayments | (5,151) |
Loans outstanding, ending balance | $ 31,596 |
Related party transactions - Ad
Related party transactions - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||||
Deposits from related parties | $ 277,904 | $ 277,904 | $ 238,781 | ||
Aviation Time Sharing Agreement | |||||
Related Party Transaction [Line Items] | |||||
Payments to related party | 58 | $ 70 | 91 | $ 97 | |
Certain Executive Officers, Certain Management and Directors and Their Associates | |||||
Related Party Transaction [Line Items] | |||||
Unfunded commitments | 20,302 | 20,302 | 19,404 | ||
Director | |||||
Related Party Transaction [Line Items] | |||||
Unamortized leasehold improvements | 68 | 68 | $ 86 | ||
Lease expense | $ 128 | $ 124 | $ 256 | $ 253 |