Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 28, 2019 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Amerant Bancorp Inc. | ||
Entity Central Index Key | 0001734342 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Class A common stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 28,927,447 | ||
Entity Public Float | $ 448 | ||
Class B common stock | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 13,286,137 | ||
Entity Public Float | $ 171 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 28,035 | $ 25,756 |
Interest earning deposits with banks | 93,289 | 59,954 |
Cash and cash equivalents | 121,324 | 85,710 |
Securities | ||
Debt securities available for sale | 1,568,752 | 1,586,051 |
Debt securities held to maturity | 73,876 | 85,188 |
Equity securities with readily determinable fair values not held for trading | 23,848 | 0 |
Federal Reserve Bank and Federal Home Loan Bank stock | 72,934 | 70,189 |
Securities | 1,739,410 | 1,741,428 |
Loans held for investment, gross | 5,744,339 | 5,920,175 |
Less: Allowance for loan losses | 52,223 | 61,762 |
Loans held for investment, net | 5,692,116 | 5,858,413 |
Bank owned life insurance | 211,852 | 206,142 |
Premises and equipment, net | 128,824 | 123,503 |
Deferred tax assets, net | 5,480 | 16,310 |
Goodwill | 19,506 | 19,193 |
Accrued interest receivable and other assets | 66,887 | 73,648 |
Total assets | 7,985,399 | 8,124,347 |
Deposits | ||
Noninterest bearing | 763,224 | 768,822 |
Interest bearing | 1,098,323 | 1,288,030 |
Savings and money market | 1,475,257 | 1,588,703 |
Time | 2,420,339 | 2,387,131 |
Total deposits | 5,757,143 | 6,032,686 |
Advances from the Federal Home Loan Bank and other borrowings | 1,235,000 | 1,166,000 |
Junior subordinated debentures held by trust subsidiaries | 92,246 | 118,110 |
Accounts payable, accrued liabilities and other liabilities | 66,309 | 60,133 |
Total liabilities | 7,150,698 | 7,376,929 |
Commitments and contingencies (Note 16) | ||
Stockholders’ equity | ||
Additional paid in capital | 419,048 | 385,367 |
Treasury stock, at cost; 3,532,457 shares of class B common stock (2018: 1,420,136 shares of Class B common stock) | (46,373) | (17,908) |
Retained earnings | 444,124 | 393,662 |
Accumulated other comprehensive income (loss) | 13,234 | (18,164) |
Total stockholders' equity | 834,701 | 747,418 |
Total liabilities and stockholders' equity | 7,985,399 | 8,124,347 |
Class A common stock | ||
Stockholders’ equity | ||
Common stock | 2,893 | 2,686 |
Class B common stock | ||
Stockholders’ equity | ||
Common stock | $ 1,775 | $ 1,775 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 | Oct. 23, 2018 | Feb. 06, 2018 |
Common stock, shares authorized (in shares) | 500,000,000 | |||
Class A common stock | ||||
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.10 | ||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | ||
Common stock, shares issued (in shares) | 28,927,576 | 26,851,832 | 24,737,470 | 74,212,408 |
Common stock, shares outstanding (in shares) | 28,927,576 | 26,851,832 | 24,737,470 | |
Class B common stock | ||||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | ||
Common stock, shares issued (in shares) | 17,751,053 | 17,751,053 | 53,253,157 | |
Common stock, shares outstanding (in shares) | 14,218,596 | 16,330,917 | 17,751,053 | |
Treasury stock (in shares) | 3,532,457 | 1,420,136 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income | |||
Loans | $ 263,011,000 | $ 257,611,000 | $ 223,765,000 |
Investment securities | 47,210,000 | 49,207,000 | 47,913,000 |
Interest earning deposits with banks | 2,753,000 | 2,540,000 | 1,642,000 |
Total interest income | 312,974,000 | 309,358,000 | 273,320,000 |
Interest expense | |||
Interest bearing demand deposits | 925,000 | 657,000 | 394,000 |
Savings and money market deposits | 15,690,000 | 12,911,000 | 8,856,000 |
Time deposits | 51,757,000 | 42,189,000 | 26,787,000 |
Advances from the Federal Home Loan Bank | 24,325,000 | 26,470,000 | 18,235,000 |
Junior subordinated debentures | 7,184,000 | 8,086,000 | 7,456,000 |
Securities sold under agreements to repurchase | 5,000 | 6,000 | 1,882,000 |
Total interest expense | 99,886,000 | 90,319,000 | 63,610,000 |
Net interest income | 213,088,000 | 219,039,000 | 209,710,000 |
(Reversal of) provision for loan losses | (3,150,000) | 375,000 | (3,490,000) |
Net interest income after (reversal of) provision for loan losses | 216,238,000 | 218,664,000 | 213,200,000 |
Noninterest income | |||
Deposits and service fees | 17,067,000 | 17,753,000 | 19,560,000 |
Brokerage, advisory and fiduciary activities | 14,936,000 | 16,849,000 | 20,626,000 |
Change in cash surrender value of bank owned life insurance | 5,710,000 | 5,824,000 | 5,458,000 |
Cards and trade finance servicing fees | 3,925,000 | 4,424,000 | 4,589,000 |
Data processing and fees for other services | 955,000 | 2,517,000 | 3,593,000 |
Securities gains (losses), net | 2,605,000 | (999,000) | (1,601,000) |
(Loss) gain on early extinguishment of advances from the Federal Home Loan Bank, net | (886,000) | 882,000 | 0 |
Other noninterest income | 12,798,000 | 6,625,000 | 19,260,000 |
Total noninterest income | 57,110,000 | 53,875,000 | 71,485,000 |
Noninterest expense | |||
Salaries and employee benefits | 137,380,000 | 141,801,000 | 131,800,000 |
Professional and other services fees | 16,123,000 | 19,119,000 | 16,399,000 |
Occupancy and equipment | 16,194,000 | 16,531,000 | 17,381,000 |
Telecommunication and data processing | 13,063,000 | 12,399,000 | 9,825,000 |
Depreciation and amortization | 7,094,000 | 8,543,000 | 9,040,000 |
FDIC assessments and insurance | 4,043,000 | 6,215,000 | 7,624,000 |
Other operating expenses | 15,420,000 | 10,365,000 | 15,567,000 |
Total noninterest expenses | 209,317,000 | 214,973,000 | 207,636,000 |
Income before income tax | 64,031,000 | 57,566,000 | 77,049,000 |
Income tax expense | (12,697,000) | (11,733,000) | (33,992,000) |
Net income | 51,334,000 | 45,833,000 | 43,057,000 |
Other comprehensive income (loss), net of tax | |||
Net unrealized holding gains (losses) on securities available for sale arising during the period | 32,810,000 | (15,265,000) | 3,577,000 |
Net unrealized holding gains on cash flow hedges arising during the period | 287,000 | 2,663,000 | 152,000 |
Reclassification adjustment for net gains (losses) included in net income | (2,571,000) | 571,000 | 833,000 |
Cumulative effect of change in accounting principle | 872,000 | 0 | 0 |
Other comprehensive income (loss) | 31,398,000 | (12,031,000) | 4,562,000 |
Comprehensive income | $ 82,732,000 | $ 33,802,000 | $ 47,619,000 |
Earnings Per Share (Note 20) | |||
Basic earnings per common share (in dollars per share) | $ 1.21 | $ 1.08 | $ 1.01 |
Diluted earnings per common share (in dollars per share) | $ 1.20 | $ 1.08 | $ 1.01 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Restricted Stock | Restricted Stock Units (RSUs) | Class A | Class B | Common StockClass A | Common StockClass ARestricted Stock | Common StockClass ARestricted Stock Units (RSUs) | Common StockClass B | Additional Paid in Capital | Additional Paid in CapitalRestricted Stock | Additional Paid in CapitalRestricted Stock Units (RSUs) | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Shares Outstanding (in shares) at Dec. 31, 2016 | 24,737,470 | 17,751,053 | |||||||||||||
Beginning balance at Dec. 31, 2016 | $ 704,737 | $ 2,474 | $ 1,775 | $ 367,505 | $ 0 | $ 343,678 | $ (10,695) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 43,057 | 43,057 | |||||||||||||
Cumulative effect of change in accounting principle | 0 | 1,094 | (1,094) | ||||||||||||
Other comprehensive income | 5,656 | 5,656 | |||||||||||||
Other comprehensive loss | 4,562 | ||||||||||||||
Shares Outstanding (in shares) at Dec. 31, 2017 | 24,737,470 | 17,751,053 | |||||||||||||
Ending balance at Dec. 31, 2017 | 753,450 | $ 2,474 | $ 1,775 | 367,505 | 0 | 387,829 | (6,133) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 45,833 | 45,833 | |||||||||||||
Common stock issued (in shares) | 1,377,523 | ||||||||||||||
Common stock issued | 17,908 | $ 138 | 17,770 | ||||||||||||
Repurchase of Class B common stock (in shares) | (1,420,136) | ||||||||||||||
Repurchase of Class B common stock | (17,908) | (17,908) | |||||||||||||
Restricted stock issued (in shares) | 736,839 | ||||||||||||||
Restricted stock issued | $ 0 | $ 74 | $ (74) | ||||||||||||
Stock-based compensation expense | 166 | 166 | |||||||||||||
Dividends declared | (40,000) | (40,000) | |||||||||||||
Other comprehensive loss | (12,031) | (12,031) | |||||||||||||
Shares Outstanding (in shares) at Dec. 31, 2018 | 26,851,832 | 16,330,917 | 26,851,832 | 16,330,917 | |||||||||||
Ending balance at Dec. 31, 2018 | 747,418 | $ 2,686 | $ 1,775 | 385,367 | (17,908) | 393,662 | (18,164) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Net income | 51,334 | 51,334 | |||||||||||||
Common stock issued (in shares) | 2,132,865 | ||||||||||||||
Common stock issued | 29,218 | $ 213 | 29,005 | ||||||||||||
Repurchase of Class B common stock (in shares) | (2,112,321) | ||||||||||||||
Repurchase of Class B common stock | (28,465) | (28,465) | |||||||||||||
Restricted stock issued (in shares) | 3,882 | 16,025 | |||||||||||||
Restricted stock issued | $ 0 | $ 0 | $ 2 | $ (2) | |||||||||||
Restricted stock surrendered (in shares) | (77,028) | ||||||||||||||
Restricted stock surrendered | (1,695) | $ (8) | (1,687) | ||||||||||||
Stock-based compensation expense | 6,365 | 6,365 | |||||||||||||
Other comprehensive income | 30,526 | 30,526 | |||||||||||||
Other comprehensive loss | 31,398 | ||||||||||||||
Shares Outstanding (in shares) at Dec. 31, 2019 | 28,927,576 | 14,218,596 | 28,927,576 | 14,218,596 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 834,701 | $ 2,893 | $ 1,775 | $ 419,048 | $ (46,373) | 444,124 | 13,234 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Cumulative effect of change in accounting principle | $ (872) | $ 872 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 51,334 | $ 45,833 | $ 43,057 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for (reversal of) loan losses | (3,150) | 375 | (3,490) |
Net premium amortization on securities | 14,299 | 16,926 | 19,357 |
Depreciation and amortization | 7,094 | 8,543 | 9,040 |
Stock-based compensation expense | 6,365 | 166 | 0 |
Change in cash surrender value of bank owned life insurance | (5,710) | (5,824) | (5,458) |
Net gain on sale of premises and equipment | (2,795) | 0 | (11,319) |
Deferred taxes, securities net gains or losses and others | (2,080) | 2,270 | 14,684 |
Gain on early extinguishment of advances from the FHLB | 886 | (882) | 0 |
Net changes in operating assets and liabilities | |||
Loans held for sale | 0 | 0 | (5,705) |
Accrued interest receivable and other assets | 15,426 | 3,655 | (1,257) |
Account payable, accrued liabilities and other liabilities | (3,277) | (8,901) | 14,373 |
Net cash provided by operating activities | 78,392 | 62,161 | 73,282 |
Purchases of investment securities: | |||
Available for sale | (445,892) | (216,237) | (231,675) |
Held to maturity | 0 | 0 | (90,196) |
Federal Home Loan Bank stock | (43,232) | (27,667) | (41,044) |
Purchases of investment securities | (489,124) | (243,904) | (362,915) |
Maturities, sales and calls of investment securities: | |||
Available for sale | 497,709 | 279,959 | 655,305 |
Held to maturity | 10,747 | 4,400 | 315 |
Federal Home Loan Bank stock | 40,487 | 27,413 | 30,600 |
Maturities, sales and calls of investment securities | 548,943 | 311,772 | 686,220 |
Net increase in loans | (98,262) | (33,199) | (393,636) |
Proceeds from loan portfolio sales | 267,765 | 173,473 | 85,767 |
Purchase of bank owned life insurance | 0 | 0 | (30,000) |
Purchases of premises and equipment | (14,262) | (10,044) | (8,606) |
Proceeds from sales of premises and equipment and others | 5,173 | 911 | 30,737 |
Cash paid in business acquisition, net | (14,390) | 0 | 0 |
Net proceeds from sale of subsidiary | 0 | 7,500 | 0 |
Net cash provided by investing activities | 205,843 | 206,509 | 7,567 |
Cash flows from financing activities | |||
Net decrease in demand, savings and money market accounts | (308,751) | (430,984) | (663,568) |
Net increase in time deposits | 18,822 | 140,697 | 409,175 |
Net decrease in securities sold under agreements to repurchase | 0 | 0 | (50,000) |
Proceeds from Advances from the Federal Home Loan Bank and other borrowings | 1,800,000 | 1,278,000 | 1,771,500 |
Repayments of Advances from the Federal Home Loan Bank and other borrowings | (1,731,886) | (1,284,118) | (1,529,500) |
Redemption of junior subordinated debentures | (25,864) | 0 | 0 |
Dividend paid | 0 | (40,000) | 0 |
Proceeds from common stock issued - Class A | 29,218 | 17,908 | 0 |
Repurchase of common stock - Class B | (28,465) | (17,908) | 0 |
Common stock retired to cover tax withholding - Class A | (1,695) | 0 | 0 |
Net cash used in financing activities | (248,621) | (336,405) | (62,393) |
Net increase (decrease) in cash and cash equivalents | 35,614 | (67,735) | 18,456 |
Cash and cash equivalents | |||
Beginning of period | 85,710 | 153,445 | 134,989 |
End of period | 121,324 | 85,710 | 153,445 |
Supplemental disclosures of cash flow information | |||
Cash paid for Interest | 99,958 | 89,283 | 61,590 |
Cash paid for Income taxes | 7,544 | 18,954 | 18,881 |
Noncash investing activities: | |||
Loans transferred to other assets | 42 | 925 | 319 |
Loans held for sale exchanged for securities | $ 0 | $ 0 | $ 4,710 |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | Business, Basis of Presentation and Summary of Significant Accounting Policies a) Business Amerant Bancorp Inc., formerly Mercantil Bank Holding Corporation, (the “Company”), is a Florida corporation incorporated in 1985, which has operated since January 1987. The Company is a bank holding company registered under the Bank Holding Company Act of 1956, as a result of its 100% indirect ownership of Amerant Bank, N.A. (the “Bank”). The Company’s principal office is in the City of Coral Gables, Florida. The Bank is a member of the Federal Reserve Bank of Atlanta (“Federal Reserve ”) and the Federal Home Loan Bank of Atlanta (“FHLB”). The Bank has two principal subsidiaries, Amerant Investments, Inc., a securities broker-dealer (“Amerant Investments”), and Amerant Trust, N.A., a non-depository trust company (“Amerant Trust”). In November 2019, the Bank completed the acquisition of Elant Bank & Trust (the “Cayman Bank”), a bank and trust company domiciled in the Cayman Islands. See Note 14 to our consolidated financial statements for more information about the Cayman Bank. The Bank has been serving the communities in which it operates for over 40 years. The Bank has 26 Banking Centers, including 18 located in South Florida and 8 in the Greater Houston area, Texas, as well as loan production offices in New York City, New York, and Dallas, Texas. As the main operating subsidiary of the Company, the Bank offers a wide variety of domestic, international, personal and commercial banking services. Investment, trust, fiduciary and wealth management services are provided through the Bank’s main operating subsidiaries Amerant Investments, Inc. and Amerant Trust, N.A. The Company is managed using a single segment concept, on a consolidated basis, and management determined that no separate current or historical reportable segment disclosures are required under generally accepted accounting principles in the United States of America (“U.S. GAAP”). The Company’s Class A common stock, par value $0.10 per common share, and Class B common stock, par value $0.10 per common share, are listed and trade on the Nasdaq Global Select Market under the symbols “AMTB” and “AMTBB,” respectively. Rebranding On June 4, 2019, the Company’s stockholders approved an amendment to the Company’s Amended and Restated Articles of Incorporation (the “Articles of Incorporation”) to change the Company’s name from “Mercantil Bank Holding Corporation” to “Amerant Bancorp Inc.” (the “Name Change”). The Name Change became effective on June 5, 2019. Each of the Company, the Bank and its principal subsidiaries now operate under the “Amerant” brand. Spin-off As of December 31, 2017 the Company was a wholly owned subsidiary of Mercantil Servicios Financieros, C.A, (“the Former Parent”). On March 15, 2018, the Former Parent transferred ownership of 100% of the outstanding Company Class A common stock and Class B common stock, together, (the “Company Shares,”) to a non-discretionary common law, grantor trust formed pursuant to a Distribution Agreement among the Former Parent, the Company and an unaffiliated trustee dated as of March 12, 2018, and governed by the laws of the State of Florida (the “Distribution Trust”). The Company and the Former Parent are parties to an Amended and Restated Separation and Distribution Agreement dated as of June 12, 2018 that provided for the spin-off (the “Spin-off”) of the Company from the Former Parent. The Distribution Trust was established by the Former Parent and the Company pursuant to a Distribution Trust Agreement, as amended, with a Texas trust company, unaffiliated with the Former Parent, as trustee. The Distribution Trust held 80.1% of the Company Shares (the “Distributed Shares”) for the benefit of the Former Parent’s Class A and Class B common shareholders of record (“Record Holders”) on April 2, 2018 (“Record Date”). The remaining 19.9% of the Company Shares were held in the Distribution Trust for the benefit of the Former Parent (the “Retained Shares”). The Distributed Shares were distributed to the Former Parent shareholders on August 10, 2018 (the “Distribution”). As a result of the Distribution, the Company became a separate company and its common stock was listed on the Nasdaq Global Select Market on August 13, 2018. The Distribution Trust held the Retained Shares pending their disposition by the Former Parent. Initial Public Offering On December 21, 2018, the Company completed an initial public offering (the “IPO”). See Note 15 to our consolidated financial statements for more information about the IPO. At December 31, 2018, the Former Parent beneficially owned less than 5% of all of the Company’s outstanding shares of common stock and the Board of Governors of the Federal Reserve System determined that the Former Parent no longer controlled the Company for purposes of the Bank Holding Company Act of 1956. In December 2018 in connection with the IPO, the Company repurchased approximately 1.4 million shares of Class B common stock from the Former Parent. In March 2019, following the partial exercise of the over-allotment option by the IPO’s underwriters, and completion of certain private placements of shares of the Company’s Class A common stock, the Company repurchased the remaining shares of Class B common stock held by the Former Parent. See Note 15 to our consolidated financial statements for more information about the private placements and the repurchase of Retained Shares previously held by the Former Parent. b) Basis of Presentation and Summary of Significant Accounting Policies The following is a description of the significant accounting policies and practices followed by the Company in the preparation of the accompanying consolidated financial statements. These policies conform with generally accepted accounting principles in the United States (U.S. GAAP). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include: i) the determination of the allowance for loan losses; (ii) the fair values of securities and the reporting unit to which goodwill has been assigned during the annual goodwill impairment test; (iii) the cash surrender value of bank owned life insurance; and (iv) the determination of whether the amount of deferred tax assets will more likely than not be realized. Management believes that these estimates are appropriate. Actual results could differ from these estimates. Income Recognition Interest income is generally recognized on the accrual basis using the interest method. Non-refundable loan origination fees, net of direct costs of originating or acquiring loans, as well as loan purchase premiums and discounts, are deferred and amortized over the term of the related loans as adjustments to interest income using the level yield method. Purchase premiums and discounts on debt securities are amortized as adjustments to interest income over the estimated lives of the securities using the level yield method. Brokerage and advisory activities include brokerage commissions and advisory fees. Brokerage commissions earned are related to the dollar amount of trading volume of customers’ transactions. Commissions and related clearing expenses are recorded on a trade-date basis as securities transactions occur. Advisory fees are derived from investment advisory fees and account administrative services. Investment advisory fees are recorded as earned on a pro rata basis over the term of the contracts, based on a percentage of the average value of assets managed during the period. These fees are assessed and collected at least quarterly. Account administrative fees are charged to customers for the maintenance of their accounts and are earned and collected on a quarterly basis. Fiduciary activities fee income is recognized as earned on a pro rata basis over the term of contracts. Card servicing fees include credit card issuance and credit and debit card interchange fees. Credit card issuance fees are generally recognized over the period in which the cardholders are entitled to use the cards. Interchange fees are recognized when earned. Trade finance servicing fees, which primarily include commissions on letters of credit, are generally recognized over the service period on a straight line basis. Deposits and services fees include service charges on deposit accounts, fees for banking services provided to customers including wire transfers, overdrafts and non-sufficient funds. Revenue from these sources is generally recognized in accordance with published deposit account agreements for customer accounts or when fixed and determinable per contractual agreements. Data processing, rental income and fees for other services to related parties are recognized as the services are provided in accordance with the terms of the service agreements. Earnings per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Unvested shares of restricted stock are excluded from the basic earnings per share computation. Diluted net income per common share reflects the number of additional common stock that would have been outstanding if the dilutive potential common stock had been issued. Dilutive potential common stock consist of unvested shares of restricted stock outstanding during the period. The dilutive effect of potential common stock is calculated by applying the treasury stock method. The latter assumes dilutive potential common stock are issued and outstanding and the proceeds from the exercise, are used to purchase common stock at the average market price during the period. The difference between the numbers of dilutive potential common stock issued and the number of shares purchased is included as incremental shares in the denominator to compute diluted net income per common stock. Dilutive potential common stock are excluded from the diluted earnings per share computation in the period in which the effect is anti-dilutive. Changes in the number of shares outstanding as a result of stock dividends, stock splits, stock exchanges or reverse stock splits are given effect retroactively for all periods presented to reflect those changes in capital structure. Stock-based Compensation The Company may grant share-based compensation and other related awards to its non-employee directors, officers, employees and certain consultants. Compensation cost is measured based on the estimated fair value of the award at the grant date and recognized in earnings as an increase in additional paid in capital on a straight -line basis over the requisite service period or vesting period. The fair value of the unvested shares of restricted stock is based on the market price of the Company’s Class A common stock at the date of the grant. Advertising Expenses Advertising expenses are expensed as incurred and are included in other noninterest expenses. Offering Expenses Specific, non-reimbursable, incremental costs directly attributable to a proposed or actual securities offerings are deferred and charged against the gross proceeds of the offering. Cash and Cash Equivalents The Company has defined as cash equivalents those highly liquid instruments purchased with an original maturity of three months or less and include cash and cash due from banks, federal funds sold and deposits with banks. The Company must comply with federal regulations requiring the maintenance of minimum reserve balances against its deposits. At December 31, 2019 and 2018 , these reserve balances amounted to approximately $1.0 thousand and $0.2 million , respectively. The Company maintains some of its cash deposited with third-party depository institutions for amounts that, at times, may be in excess of federally-insured limits mandated by the Federal Deposit Insurance Corporation, or FDIC. Securities The Company classifies its investments in securities as debt securities available for sale, debt securities held to maturity and equity securities with readily determinable fair value not held for trading. Securities classified as debt securities available for sale are carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) or accumulated other comprehensive loss (“AOCL”) in stockholders’ equity on an after-tax basis. Equity securities with readily determinable fair value not held for trading primarily consists of mutual funds carried at fair value with unrealized gains and losses included in earnings. Equity securities were classified as available for sale at December 31, 2018 in accordance with U.S. GAAP. Securities classified as debt securities held to maturity are securities the Company has both the ability and intent to hold until maturity and are carried at amortized cost. Investments in stock issued by the Federal Reserve and Federal Home Loan Bank of Atlanta (“FHLB”) are stated at their original cost, which approximates their realizable value. Realized gains and losses from sales of securities are recorded on the trade date and are determined using the specific identification method. Securities purchased or sold are recorded on the consolidated balance sheets as of the trade date. Receivables and payables to and from clearing organizations relating to outstanding transactions are included in other assets or other liabilities. At December 31, 2019 and 2018 securities receivables amounted to $2.2 million and $3.5 million , respectively. The Company considers an investment in debt securities to be impaired when a decline in fair value below the amortized cost basis is other-than-temporary. When an investment in debt securities is considered to be other-than-temporarily impaired, the cost basis of the individual debt security is written down through earnings by an amount that corresponds to the credit component of the other-than-temporary impairment. The amount of the other-than-temporary impairment that corresponds to the noncredit component of the other-than-temporary impairment is recorded in AOCI and is associated with debt securities which the Company does not intend to sell and it is more likely than not that the Company will not be required to sell the debt securities prior to the recovery of its fair value. The Company estimates the credit component of other-than-temporary impairment using a discounted cash flow model. The Company estimates the expected cash flows of the underlying collateral using third party vendor models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment rates (based on historical performance and stress test scenarios). Assumptions used can vary widely from debt security to debt security and are influenced by such factors as current debt service coverage ratio, historical prepayment rates, expected prepayment rates, and loans’ current interest rates. The Company then uses, as it deems appropriate, a third party vendor to determine how the underlying collateral cash flows will be distributed to each debt security. The present value of an impaired debt security results from estimating its future cash flows, discounted at the debt security’s effective interest rate. The Company expects to recover the remaining noncredit related unrealized losses included as a component of AOCI or AOCL. Loans Held for Sale Loans are transferred into the held for sale classification at the lower of carrying amount or fair value when they are specifically identified for sale and a formal plan exists to sell them. Loans Loans represent extensions of credit which the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff. These extensions of credit consist of commercial real estate loans (including land acquisition, development and construction loans), owner occupied real estate loans, single-family residential loans, commercial loans, loans to financial institutions and acceptances, and consumer loans. Amounts included in the loan portfolio are stated at the amount of unpaid principal, reduced by unamortized net deferred loan fees and origination costs and an allowance for loan losses. Unamortized net deferred loan fees and origination costs amounted to $7.7 million and $7.1 million at December 31, 2019 and 2018 , respectively. A loan is placed in nonaccrual status when management believes that collection in full of the principal amount of the loan or related interest is in doubt. Management considers that collectability is in doubt when any of the following factors are present, among others: (1) there is a reasonable probability of inability to collect principal, interest or both, on a loan for which payments are current or delinquent for less than ninety days; or (2) when a required payment of principal, interest or both, is delinquent for ninety days or longer, unless the loan is considered well secured and in the process of collection in accordance with regulatory guidelines. Once a loan to a single borrower has been placed in nonaccrual status, management reviews all loans to the same borrower to determine their appropriate accrual status. When a loan is placed in nonaccrual status, accrual of interest and amortization of net deferred loan fees or costs are discontinued, and any accrued interest receivable is reversed against interest income. Payments received on a loan in nonaccrual status are generally applied to its outstanding principal amount, unless there are no doubts on the full collection of the remaining recorded investment in the loan. When there are no doubts on the full collection of the remaining recorded investment in the loan, and there is sufficient documentation to support the collectability of that amount, payments of interest received may be recorded as interest income. A loan in nonaccrual status is returned to accrual status when none of the conditions noted when first placed in nonaccrual status are currently present, none of its principal and interest is past due, and management believes there are reasonable prospects of the loan performing in accordance with its terms. For this purpose, management generally considers there are reasonable prospects of performance in accordance with the loan terms when at least six months of principal and interest payments or principal curtailments have been received, and current financial information of the borrower demonstrates that the borrower has the capacity to continue to perform into the near future. The total outstanding principal amount of a loan is reported as past due thirty days following the date of a missed scheduled payment, based on the contractual terms of the loan. Loans which have been modified because the borrowers were experiencing financial difficulty and the Company, for economic or legal reasons related to the debtors’ financial difficulties, granted a concession to the debtors that it would not have otherwise considered, are accounted for as troubled debt restructurings (“TDR”). Allowance for Loan Losses The allowance for loan losses (“ALL”) represents an estimate of the current amount of principal that is probable the Company will be unable to collect given facts and circumstances as of the evaluation date, and includes amounts arising from loans individually and collectively evaluated for impairment. These estimated amounts are recorded through a provision for loan losses charged against income. Management periodically evaluates the adequacy of the ALL to maintain it at a level believed reasonable to provide for recognized and unrecognized but inherent losses in the loan portfolio. The Company uses the same methods used to determine the ALL to assess any reserves needed for off-balance sheet credit risks such as unfunded loan commitments and contingent obligations on letters of credit. These reserves for off-balance sheet credit risks are presented in the liabilities section in the consolidated balance sheets. The Company develops and documents its methodology to determine the ALL at the portfolio segment level. The Company determines its loan portfolio segments based on the type of loans it carries and their associated risk characteristics. The Company’s loan portfolio segments are: Real Estate, Commercial, Financial Institutions, Consumer and Other. Loans in these portfolio segments have distinguishing borrower needs and differing risks associated with each product type. Real estate loans include commercial loans secured by real estate properties. Commercial loans secured by non-owner occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these real estate loans is derived from cash flows or conversion of productive assets and not from the income generated by the disposition of the property held as collateral. The main repayment source of loans granted to finance land acquisition, development and construction projects is generally derived from the disposition of the properties held as collateral, with the repayment capacity of the borrowers and any guarantors considered as alternative sources of repayment. Commercial loans correspond to facilities established for specific business purposes such as financing working capital and capital improvements projects and asset-based lending, among others. These may be loan commitments, uncommitted lines of credit to qualifying customers, short term (one year or less) or longer term credit facilities, and may be secured, unsecured or partially secured. Terms on commercial loans generally do not exceed five years, and exceptions are documented. Commercial loans secured by owner-occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these commercial real estate loans is derived from cash flows and not from the income generated by the disposition of the property held as collateral. Commercial loans to borrowers in similar businesses or products with similar characteristics or specific credit requirements are generally evaluated under a standardized commercial credit program. Commercial loans outside the scope of those programs are evaluated on a case by case basis, with consideration of any exposure under an existing commercial credit program. Loans to financial institutions and acceptances are facilities granted to fund certain transactions classified according to their risk level, and primarily include trade financing facilities through letters of credits, bankers’ acceptances, pre- and post-export financing, and working capital loans, among others. Loans in this portfolio segment are generally granted for terms not exceeding three years and on an unsecured basis under the limits of an existing credit program, primarily to large financial institutions in Latin America which the Company believes are of high quality. Prior to approval, management also considers cross-border and portfolio limits set forth in its programs and credit policies. Consumer and other loans are retail open-end and closed-end credits extended to individuals for household, family and other personal expenditures. These loans include loans to individuals secured by their personal residence, including first mortgage, home equity and home improvement loans as well as revolving credit card agreements. Because these loans generally consist of a large number of relatively small-balance, homogeneous loans for each type, their risks are generally evaluated collectively. An individual loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including both principal and interest, according to the contractual terms of the loan agreement. The Company generally considers as impaired all loans in nonaccrual status, and other loans classified in accordance with an internal risk grading system exceeding a defined threshold when it is probable that an impairment exists and the amount of the potential impairment is reasonably estimable. To determine when it is probable that an impairment exists, the Company considers the extent to which a loan may be inadequately protected by the current net worth and paying capacity of the borrower or any guarantor, or by the current value of the collateral. When a loan is considered impaired, the potential impairment is measured as the excess of the carrying value of the loan over the present value of expected future cash flows at the measurement date, or the fair value of the collateral in the case where the loan is considered collateral-dependent. If the amount of the present value of the loan’s expected future cash flows exceeds the loan’s carrying amount, the loan is still considered impaired but no impairment is recorded. The present value of an impaired loan results from estimating its future cash flows, discounted at the loan’s effective interest rate. In the case of loans considered collateral-dependent, which are generally certain real estate loans for which repayment is expected to be provided solely by the operation or sale of the underlying collateral, the potential impairment is measured based on the fair value of the asset pledged as collateral. The ALL on loans considered TDR is generally determined by discounting the restructured cash flows by the original effective interest rate on the loan. Loans that do not meet the criteria of an individually impaired loan are collectively evaluated for impairment. These loans include large groups of smaller homogeneous loan balances, such as loans in the consumer and other loan portfolio segment, and all other loans that have not been individually identified as impaired. This group of collective loans is evaluated for impairment based on measures of historical losses associated with loans within their respective portfolio segments adjusted by a variety of qualitative factors. These qualitative factors incorporate the most recent data reflecting current economic conditions, industry performance trends or obligor concentrations within each portfolio segment, among other factors. Other adjustments may be made to the allowance for loans collectively evaluated for impairment based on any other pertinent information that management considers may affect the estimation of the allowance for loan losses, including a judgmental assessment of internal and external influences on credit quality that are not fully reflected in historical loss or their risk rating data. The measures of historical losses and the related qualitative adjustments are updated quarterly and semi-annually, respectively, to incorporate the most recent loan loss data reflecting current economic conditions. Loans to borrowers that are domiciled in foreign countries, primarily loans in the Consumer and Financial Institutions portfolio segments, are also evaluated for impairment by assessing the probability of additional losses arising from the Company’s exposure to transfer risk. The Company defines transfer risk exposure as the possibility that a loan obligation cannot be serviced in the currency of payment (U.S. Dollars) because the borrower’s country of origin may not have sufficient available currency of payment or may have put restraints on its availability, such as currency controls. To determine an individual country’s transfer risk probability, the Company assigns numerical values corresponding to the perceived performance of that country in certain macroeconomic, social and political factors generally considered in the banking industry for evaluating a country’s transfer risk. A defined country’s transfer risk probability is assigned to that country based on an average of the individual scores given to those factors, calculated using an interpolation formula. The results of this evaluation are also updated semi-annually. Loans in the Real Estate, Commercial and Financial Institutions portfolio segments are charged off against the ALL when they are considered uncollectable. These loans are considered uncollectable when a loss becomes evident to management, which generally occurs when the following conditions are present, among others: (1) a loan or portions of a loan are classified as “loss” in accordance with the internal risk grading system; (2) a collection attorney has provided a written statement indicating that a loan or portions of a loan are considered uncollectible; and (3) the carrying value of a collateral-dependent loan exceeds the appraised value of the asset held as collateral. Consumer and other retail loans are charged off against the ALL at the earlier of (1) when management becomes aware that a loss has occurred, or (2) when closed-end retail loans become past due 120 days or open-end retail loans become past due 180 days from the contractual due date. For open and closed-end retail loans secured by residential real estate, any outstanding loan balance in excess of the fair value of the property, less cost to sell, is charged off no later than when the loan is 180 days past due from the contractual due date. Consumer and other retail loans may not be charged off when management can clearly document that a past due loan is well secured and in the process of collection such that collection will occur regardless of delinquency status in accordance with regulatory guidelines applicable to these types of loans. Recoveries on loans represent collections received on amounts that were previously charged off against the allowance for loan losses. Recoveries are credited to the allowance for loan losses when received, to the extent of the amount previously charged off against the ALL on the related loan. Any amounts collected in excess of this limit are first recognized as interest income, then as a reduction of collection costs, and then as other income. Transfers of Financial Assets Transfers of financial assets are accounted for as sales or purchases when control over the assets has been surrendered by the transferor. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the transferor, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the transferor does not maintain effective control over the transferred assets. Premises and Equipment, Net Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized over the remaining term of the lease. Repairs and maintenance are charged to operations as incurred; renewals, betterments and interest during construction are capitalized. Gains or losses on sales of premises and equipment are recorded as other noninterest income or noninterest expense, respectively, at the date of sale. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of recognition and measurement of an impairment loss, when the independent and identifiable cash flow of a single asset may not be determinable, the long-lived asset may be grouped with other assets of like cash flows. Recoverability of an asset or group of assets to be held and used is measured by comparing the carrying amount with future undiscounted net cash flows expected to be generated by the asset or group of assets. If an asset is considered impaired, the impairment recognized is generally measured by the amount by which the carrying amount of the asset or group exceeds its fair value. Bank Owned Life Insurance Bank owned life insurance policies (“BOLI”) are recorded at the cash surrender value of the insurance contracts, |
Interest Earning Deposits with
Interest Earning Deposits with Banks | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Interest Earning Deposits with Banks | Interest Earning Deposits with Banks At December 31, 2019 and 2018 interest earning deposits with banks are mainly comprised of deposits with the Federal Reserve of approximately $93 million and $60 million , respectively. At December 31, 2019 and 2018 the average interest rate on these deposits was approximately 2.19% and 1.88% , respectively. These deposits mature within one year. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities Amortized cost and approximate fair values of debt securities available for sale are summarized as follows: December 31, 2019 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 927,205 $ 9,702 $ (3,795 ) $ 933,112 Corporate debt securities 247,836 5,002 (2 ) 252,836 U.S. government agency debt securities 230,384 895 (2,882 ) 228,397 U.S. treasury securities 106,112 1 (1,877 ) 104,236 Municipal bonds 47,652 2,519 — 50,171 $ 1,559,189 $ 18,119 $ (8,556 ) $ 1,568,752 December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 840,760 $ 2,197 $ (22,178 ) $ 820,779 Corporate debt securities 357,602 139 (5,186 ) 352,555 U.S. government agency debt securities 221,682 187 (4,884 ) 216,985 Municipal bonds 162,438 390 (2,616 ) 160,212 Mutual funds 24,266 — (1,156 ) 23,110 Commercial paper 12,448 — (38 ) 12,410 $ 1,619,196 $ 2,913 $ (36,058 ) $ 1,586,051 The Company had no investments in foreign sovereign debt securities at December 31, 2019 and 2018. The Company had investments in foreign corporate debt securities of $5.2 million and $36.2 million at December 31, 2019 and 2018, respectively. The Company’s investment in debt securities available for sale with unrealized losses that are deemed temporary, aggregated by length of time that individual securities have been in a continuous unrealized loss position, are summarized below: December 31, 2019 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 239,446 $ (1,740 ) $ 180,274 $ (2,055 ) $ 419,720 $ (3,795 ) Corporate debt securities 8,359 (1 ) 300 (1 ) 8,659 (2 ) U.S. government agency debt securities 41,300 (251 ) 117,040 (2,631 ) 158,340 (2,882 ) U.S. treasury securities 97,471 (1,877 ) — — 97,471 (1,877 ) $ 386,576 $ (3,869 ) $ 297,614 $ (4,687 ) $ 684,190 $ (8,556 ) December 31, 2018 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 90,980 $ (2,995 ) $ 608,486 $ (19,183 ) $ 699,466 $ (22,178 ) Corporate debt securities 243,667 (3,800 ) 75,762 (1,386 ) 319,429 (5,186 ) U.S. government agency debt securities 63,580 (939 ) 133,886 (3,945 ) 197,466 (4,884 ) Municipal bonds 1,449 (6 ) 94,331 (2,610 ) 95,780 (2,616 ) Mutual funds — — 22,865 (1,156 ) 22,865 (1,156 ) Commercial paper 12,410 (38 ) — — 12,410 (38 ) $ 412,086 $ (7,778 ) $ 935,330 $ (28,280 ) $ 1,347,416 $ (36,058 ) At December 31, 2019 and 2018 , the Company held certain debt securities issued or guaranteed by the U.S. government and U.S. government-sponsored entities and agencies. The Company believes these issuers to present little credit risk. The Company considers these securities are not other-than-temporarily impaired because the decline in fair value is attributable to changes in interest rates and investment securities markets, generally, and not credit quality. The Company does not intend to sell these debt securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery. Unrealized losses on municipal and corporate debt securities are attributable to changes in interest rates and investment securities markets, generally, and as a result, temporary in nature. The Company considers these securities are not other-than-temporarily impaired because the issuers of these debt securities are high quality and present little credit risk. The Company does not intend to sell these investments and it is more likely than not that it will not be required to sell these investments before their anticipated recovery. Amortized cost and approximate fair values of debt securities held to maturity, are summarized as follows: December 31, 2019 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 71,169 $ 809 $ (135 ) $ 71,843 U.S. government agency debt securities 2,707 45 — 2,752 $ 73,876 $ 854 $ (135 ) $ 74,595 December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 82,326 $ — $ (3,889 ) $ 78,437 U.S. government agency debt securities 2,862 — (49 ) 2,813 $ 85,188 $ — $ (3,938 ) $ 81,250 Contractual maturities of debt securities at December 31, 2019 are as follows: Available for Sale Held to Maturity (in thousands) Amortized Estimated Amortized Estimated Within 1 year $ 47,366 $ 47,464 $ — $ — After 1 year through 5 years 177,696 179,863 — — After 5 years through 10 years 233,420 239,294 — — After 10 years 1,100,707 1,102,131 73,876 74,595 $ 1,559,189 $ 1,568,752 $ 73,876 $ 74,595 Actual maturities of debt securities available for sale and held to maturity may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. Proceeds from sales and calls of debt securities available for sale in 2019 and 2018 were approximately $274 million and $67 million , respectively, with gross realized gains of $2.5 million and gross realized losses of $0.6 million in 2019 (gross realized gains of $0.5 million and gross realized losses of $1.4 million in 2018 ). The remaining gain on securities shown in the consolidated statements on income was due to market valuation changes on marketable equity securities. Equity securities with readily available fair value not held for trading consist of mutual funds with an original cost of $24.0 million , and fair value of $23.8 million . These equity securities have no stated maturities. As of December 31, 2019, as a result of the adoption of new accounting standards on financial instruments, the Company reclassified these equity securities out of the available for sale category, as previously presented, in 2018, into equity securities with readily available fair value not held for trading. A net gain of $0.7 million was recognized for the change in the fair value of these equity securities for the year ended December 31, 2019. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | Loans The loan portfolio consists of the following loan classes: (in thousands) December 31, December 31, Real estate loans Commercial real estate Nonowner occupied $ 1,891,802 $ 1,809,356 Multi-family residential 801,626 909,439 Land development and construction loans 278,688 326,644 2,972,116 3,045,439 Single-family residential 539,102 533,481 Owner occupied 894,060 777,022 4,405,278 4,355,942 Commercial loans 1,234,043 1,380,428 Loans to financial institutions and acceptances 16,552 68,965 Consumer loans and overdrafts 88,466 114,840 $ 5,744,339 $ 5,920,175 At December 31, 2019 and 2018 , loans with an outstanding principal balance of $1,575 million and $1,680 million , respectively, were pledged as collateral to secure advances from the FHLB. The amounts in the table above include loans under syndication facilities for approximately $562 million and $807 million at December 31, 2019 and 2018 , respectively, which include Shared National Credit facilities, or SNCs, and agreements to enter into credit agreements among other lenders (club deals), and other agreements. These loans are primarily designed for providing working capital to certain qualified domestic and international commercial entities meeting our credit quality criteria and concentration limits, and approved in accordance with credit policies. While seeking diversification of our loan portfolio, the Company is dependent mostly on the economic conditions that affect South Florida and the greater Houston and New York City areas, especially the five New York City boroughs. Diversification is managed through policies with limitations for exposure to individual or related debtors and for country risk exposure. The following table summarizes international loans by country, net of loans fully collateralized with cash of approximately $15.2 million and $19.5 million at December 31, 2019 and 2018 , respectively. December 31, 2019 December 31, 2018 (in thousands) Venezuela Others (1) Total Venezuela Others (1) Total Real estate loans Single-family residential (2) $ 103,979 $ 7,692 $ 111,671 $ 128,971 $ 6,467 $ 135,438 Commercial loans — 43,850 43,850 — 73,636 73,636 Loans to financial institutions and acceptances — 5 5 — 49,000 49,000 Consumer loans and overdrafts (3)(4) 8,318 7,593 15,911 28,191 13,494 41,685 $ 112,297 $ 59,140 $ 171,437 $ 157,162 $ 142,597 $ 299,759 __________________ (1) Loans to borrowers in 14 other countries which do not individually exceed 1% of total assets (17 countries in 2018). (2) Corresponds to mortgage loans secured by single-family residential properties located in the U.S. (3) Mostly comprised of credit card extensions of credit to customers with deposits with the Bank. The Company is phasing out its legacy credit card products to further strengthen its credit quality. In April 2019, the Company stopped charge privileges to its riskiest cardholders and required repayment of their balances by November 2019. Other cardholders’ charging privileges ended in October 2019 and they were required to repay all balances by first quarter of 2020. The Company is closely monitoring the performance of the outstanding credit card balances until complete repayment. (4) Overdrafts to customers outside the United States were de minimis. The age analysis of the loan portfolio by class, including nonaccrual loans, as of December 31, 2019 and 2018 are summarized in the following tables: December 31, 2019 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Nonowner occupied $ 1,891,802 $ 1,891,801 $ 1 $ — $ — $ 1 $ 1,936 $ — Multi-family residential 801,626 801,626 — — — — — — Land development and construction loans 278,688 278,688 — — — — — — 2,972,116 2,972,115 1 — — 1 1,936 — Single-family residential 539,102 530,399 4,585 1,248 2,870 8,703 7,291 — Owner occupied 894,060 888,158 1,360 1,724 2,818 5,902 14,130 — 4,405,278 4,390,672 5,946 2,972 5,688 14,606 23,357 — Commercial loans 1,234,043 1,226,320 4,418 608 2,697 7,723 9,149 — Loans to financial institutions and acceptances 16,552 16,552 — — — — — — Consumer loans and overdrafts 88,466 88,030 215 176 45 436 416 5 $ 5,744,339 $ 5,721,574 $ 10,579 $ 3,756 $ 8,430 $ 22,765 $ 32,922 $ 5 December 31, 2018 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Nonowner occupied $ 1,809,356 $ 1,809,356 $ — $ — $ — $ — $ — $ — Multi-family residential 909,439 909,439 — — — — — — Land development and construction loans 326,644 326,644 — — — — — — 3,045,439 3,045,439 — — — — — — Single-family residential 533,481 519,730 7,910 2,336 3,505 13,751 6,689 419 Owner occupied 777,022 773,876 2,800 160 186 3,146 4,983 — 4,355,942 4,339,045 10,710 2,496 3,691 16,897 11,672 419 Commercial loans 1,380,428 1,378,022 704 1,062 640 2,406 4,772 — Loans to financial institutions and acceptances 68,965 68,965 — — — — — — Consumer loans and overdrafts 114,840 113,227 474 243 896 1,613 35 884 $ 5,920,175 $ 5,899,259 $ 11,888 $ 3,801 $ 5,227 $ 20,916 $ 16,479 $ 1,303 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses The analyses by loan segment of the changes in the ALL for the three years ended December 31, 2019 and its allocation by impairment methodology and the related investment in loans, net as of December 31, 2019 , 2018 and 2017 are summarized in the following tables: December 31, 2019 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Provision for (reversal of) loan losses 2,072 (6,165 ) (403 ) 1,346 (3,150 ) Loans charged-off Domestic — (3,020 ) — (724 ) (3,744 ) International — (62 ) — (5,033 ) (5,095 ) Recoveries 190 1,711 — 549 2,450 Balances at end of the year $ 25,040 $ 22,482 $ 42 $ 4,659 $ 52,223 Allowance for loan losses by impairment methodology Individually evaluated $ 1,161 $ 1,789 $ — $ 1,324 $ 4,274 Collectively evaluated 23,879 20,693 42 3,335 47,949 $ 25,040 $ 22,482 $ 42 $ 4,659 $ 52,223 Investment in loans, net of unearned income Individually evaluated $ 1,936 $ 22,790 $ — $ 5,585 $ 30,311 Collectively evaluated 2,968,589 2,206,566 16,552 522,321 5,714,028 $ 2,970,525 $ 2,229,356 $ 16,552 $ 527,906 $ 5,744,339 December 31, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 (Reversal of) provision for loan losses (2,885 ) 1,099 (3,917 ) 6,078 375 Loans charged-off Domestic (5,839 ) (3,662 ) — (194 ) (9,695 ) International — (1,473 ) — (1,392 ) (2,865 ) Recoveries 212 1,367 — 368 1,947 Balances at end of the year $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 1,282 $ — $ 1,091 $ 2,373 Collectively evaluated 22,778 28,736 445 7,430 59,389 $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Investment in loans, net of unearned income Individually evaluated $ 717 $ 9,652 $ — $ 3,089 $ 13,458 Collectively evaluated 3,037,604 2,254,607 69,003 545,503 5,906,717 $ 3,038,321 $ 2,264,259 $ 69,003 $ 548,592 $ 5,920,175 December 31, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Reversal of provision for loan losses (221 ) (1,027 ) (942 ) (1,300 ) (3,490 ) Loans charged-off Domestic (97 ) (1,979 ) — (424 ) (2,500 ) International — (6,166 ) — (757 ) (6,923 ) Recoveries 895 962 — 1,305 3,162 Balances at end of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 2,866 $ — $ — $ 2,866 Collectively evaluated 31,290 29,821 4,362 3,661 69,134 $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Investment in loans, net of unearned income Individually evaluated $ 1,318 $ 20,907 $ — $ 374 $ 22,599 Collectively evaluated 2,912,786 2,073,351 497,626 559,863 6,043,626 $ 2,914,104 $ 2,094,258 $ 497,626 $ 560,237 $ 6,066,225 The following is a summary of the recorded investment amount of loan sales by portfolio segment in the three years ended December 31, 2019 , 2018 and 2017 : (in thousands) Real Estate Commercial Financial Consumer Total 2019 $ 23,475 $ 236,373 $ — $ 7,917 $ 267,765 2018 $ 20,248 $ 138,244 $ — $ 14,981 $ 173,473 2017 $ 15,040 $ 35,260 $ 40,177 $ — $ 90,477 The following is a summary of impaired loans as of December 31, 2019 and 2018 : December 31, 2019 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ 1,936 $ — $ 1,936 $ 1,459 $ 1,936 $ 1,161 $ 37 Multi-family residential — — — 342 — — 10 Land development and construction — — — — — — — 1,936 — 1,936 1,801 1,936 1,161 47 Single-family residential 4,739 729 5,468 5,564 5,598 946 21 Owner-occupied 6,169 7,906 14,075 9,548 13,974 501 48 12,844 8,635 21,479 16,913 21,508 2,608 116 Commercial loans 8,415 13 8,428 8,552 8,476 1,288 58 Consumer loans and overdrafts 395 9 404 153 402 378 — $ 21,654 $ 8,657 $ 30,311 $ 25,618 $ 30,386 $ 4,274 $ 174 December 31, 2018 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ — $ — $ — $ 7,935 $ — $ — $ — Multi-family residential — 717 717 724 722 — 32 Land development and construction — — — — — — — — 717 717 8,659 722 — 32 Single-family residential 3,086 306 3,392 4,046 3,427 1,235 108 Owner occupied 169 4,427 4,596 5,524 4,601 75 14 3,255 5,450 8,705 18,229 8,750 1,310 154 Commercial loans 4,585 148 4,733 7,464 6,009 1,059 952 Consumer loans and overdrafts 9 11 20 15 17 4 — $ 7,849 $ 5,609 $ 13,458 $ 25,708 $ 14,776 $ 2,373 $ 1,106 Troubled Debt Restructurings The following table shows information about loans that were modified and met the definition of TDR during the three years ended December 31, 2019: 2019 2018 2017 (in thousands, except number of contracts) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Commercial real estate “CRE” Nonowner occupied (1) 1 $ 1,936 1 $ — — $ — Single-family residential 1 172 — — 2 — Owner occupied 2 4,797 1 1,831 1 — 4 6,905 2 1,831 3 — Commercial loans 1 2,669 2 622 1 1,473 Consumer loans and overdrafts 1 357 1 10 — — Total (2) (3) (4) 6 $ 9,931 5 $ 2,463 4 $ 1,473 _________________ (1) In the fourth quarter of 2018, the Company sold one non-performing loan in the Houston area with a carrying value of $10.2 million , and charged off $5.8 million against the allowance for loan losses. This loan had been modified and met the definition of a TDR during the second quarter of 2018. (2) There were no charge-offs against the allowance for loan losses as a result of these TDRs during 2019. During 2018 and 2017 , the Company charged off a total of approximately $6.9 million and $6.0 million , respectively, against the allowance for loan losses as a result of these TDR loans. (3) At December 31, 2018 and 2017 , all TDR loans were primarily real estate and commercial loans under modified terms, including interest payment deferments and others, that did not substantially impact the allowance for loan losses since the recorded investment in these impaired loans corresponded to their realizable value, which approximated their fair values, or higher, prior to their designation as TDR. (4) Includes a multiple loan relationship with a South Florida customer consisting of CRE, owner occupied and commercial loans totaling $9.8 million as of December 31, 2019 . This TDR consisted of extending repayment terms and adjusting future periodic payments which resulted in no additional reserves. Four residential loans, totaling $2.2 million , which are included in this loan relationship, were not modified. The Company believes the specific reserves associated with these loans, which total $2.4 million at December 31, 2019 , are adequate to cover probable losses given current facts and circumstances. In the fourth quarter of 2019, this $9.8 million TDR loan relationship did not perform in accordance with the restructured terms. The Company will continue to closely monitor the performance of these loans under their modified terms. TDR loans that subsequently defaulted within the 12 months of restructuring during the three years ended December 31, 2019 were as follows: 2019 2018 2017 (in thousands, except number of contracts) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Commercial real estate Nonowner occupied 1 $ 1,936 — $ — — $ — Single-family residential — — — — — $ — Owner-occupied 2 4,797 1 1,831 1 618 3 6,733 1 1,831 1 618 Commercial loans 1 2,669 1 589 — — Consumer loans and overdrafts 1 357 1 10 — — 5 $ 9,759 3 $ 2,430 1 $ 618 Credit Risk Quality The sufficiency of the ALL is reviewed monthly by the Chief Risk Officer and the Chief Financial Officer. The Board of Directors considers the ALL as part of its review of the Company’s consolidated financial statements. As of December 31, 2019 and 2018 , the Company believes the ALL to be sufficient to absorb losses in the loans portfolio in accordance with U.S. GAAP. Loans may be classified but not considered impaired due to one of the following reasons: (1) the Company has established minimum dollar amount thresholds for loan impairment testing, which results in loans under those thresholds being excluded from impairment testing and therefore not included in impaired loans; (2) classified loans may be considered nonimpaired because collection of all amounts due is probable. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related primarily to (i) the risk rating of loans, (ii) the loan payment status, (iii) net charge-offs, (iv) nonperforming loans and (v) the general economic conditions in the main geographies where the Company’s borrowers conduct their businesses. The Company considers the views of its regulators as to loan classification and impairment. The Company utilizes a credit risk rating system to identify the risk characteristics of each of its loans, or group of homogeneous loans such as consumer loans. Loans are rated on a quarterly basis (or more frequently when the circumstances require it) on a scale from 1 (worst credit quality) to 10 (best credit quality). Loans are then grouped in five master risk categories for purposes of monitoring rising levels of potential loss risks and to enable the activation of collection or recovery processes as defined in the Company’s Credit Risk Policy. The following is a summary of the master risk categories and their associated loan risk ratings, as well as a description of the general characteristics of the master risk category: Loan Risk Rating Master risk category Nonclassified 4 to 10 Classified 1 to 3 Substandard 3 Doubtful 2 Loss 1 N onclassified This category includes loans considered as Pass (5-10) and Special Mention (4). A loan classified as Pass is considered of sufficient quality to preclude a lower adverse rating. These loans are generally well protected by the current net worth and paying capacity of the borrower or by the value of any collateral received. Special Mention loans are defined as having potential weaknesses that deserve management’s close attention which, if left uncorrected, could potentially result in further credit deterioration. Special Mention loans may include loans originated with certain credit weaknesses or that developed those weaknesses since their origination. Classified This classification indicates the presence of credit weaknesses which could make loan repayment unlikely, such as partial or total late payments and other contractual defaults. Substandard A loan classified substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. They are characterized by the distinct possibility that the Company will sustain some loss if the credit weaknesses are not corrected. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets. Doubtful These loans have all the weaknesses inherent in a loan 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. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collection in full in a reasonable period of time. As a result, the possibility of loss is extremely high. Loss Loans classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the assets have absolutely no recovery or salvage value, but not to the point where a write-off should be deferred even though partial recoveries may occur in the future. This classification is based upon current facts, not probabilities. As a result, loans in this category should be promptly charged off in the period in which they are determined to be uncollectible. Loans by Credit Quality Indicators Loans by credit quality indicators as of December 31, 2019 and 2018 are summarized in the following tables: December 31, 2019 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,879,780 $ 9,324 $ 762 $ 1,936 $ — $ 1,891,802 Multi-family residential 801,626 — — — — 801,626 Land development and construction loans 268,733 9,955 — — — 278,688 2,950,139 19,279 762 1,936 — 2,972,116 Single-family residential 531,811 — 7,291 — — 539,102 Owner occupied 871,682 8,138 14,240 — — 894,060 4,353,632 27,417 22,293 1,936 — 4,405,278 Commercial loans 1,217,399 5,569 8,406 2,669 — 1,234,043 Loans to financial institutions and acceptances 16,552 — — — — 16,552 Consumer loans and overdrafts 88,042 — 67 357 — 88,466 $ 5,675,625 $ 32,986 $ 30,766 $ 4,962 $ — $ 5,744,339 December 31, 2018 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,802,573 $ 6,561 $ 222 $ — $ — $ 1,809,356 Multi-family residential 909,439 — — — — 909,439 Land development and construction loans 326,644 — — — — 326,644 3,038,656 6,561 222 — — 3,045,439 Single-family residential 526,373 — 7,108 — — 533,481 Owner occupied 758,552 9,019 9,451 — — 777,022 4,323,581 15,580 16,781 — — 4,355,942 Commercial loans 1,369,434 3,943 6,462 589 — 1,380,428 Loans to financial institutions and acceptances 68,965 — — — — 68,965 Consumer loans and overdrafts 108,778 — 6,062 — — 114,840 $ 5,870,758 $ 19,523 $ 29,305 $ 589 $ — $ 5,920,175 Credit Risk Quality Indicators - Consumer Loan Classes The credit risk quality of the Company’s residential real estate and consumer loan portfolios is evaluated by considering the repayment performance of individual borrowers, and then classified on an aggregate or pool basis. Loan secured by real estate in these classes which have been past due 90 days or more, and 120 days (non-real estate secured) or 180 days or more, are classified as Substandard and Loss, respectively. When the Company has documented that past due loans in these classes are well-secured and in the process of collection, then the loans may not be classified. These indicators are updated at least quarterly. Single-family residential loans: December 31, (in thousands, except percentages) 2019 2018 2017 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 526,497 97.67 % $ 518,106 97.12 % $ 499,307 97.38 % 30-59 Days Past Due 4,332 0.80 % 7,634 1.43 % 6,025 1.17 % 60-89 Days Past Due 982 0.18 % 633 0.12 % 2,193 0.43 % 90+ Days Past Due — — % 419 0.08 % 225 0.04 % 5,314 0.98 % 8,686 1.63 % 8,443 1.64 % Total Accrual Loans $ 531,811 98.65 % $ 526,792 98.75 % $ 507,750 99.02 % Non-Accrual Loans Current $ 3,902 0.72 % $ 1,624 0.30 % $ 2,086 0.41 % 30-59 Days Past Due 253 0.05 % 276 0.05 % 584 0.11 % 60-89 Days Past Due 266 0.05 % 1,703 0.32 % 557 0.11 % 90+ Days Past Due 2,870 0.53 % 3,086 0.58 % 1,777 0.35 % 3,389 0.63 % 5,065 0.95 % 2,918 0.57 % Total Non-Accrual Loans 7,291 1.35 % 6,689 1.25 % 5,004 0.98 % $ 539,102 100.00 % $ 533,481 100.00 % $ 512,754 100.00 % Consumer loans and overdrafts: December 31, (in thousands, except percentages) 2019 2018 2017 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 87,656 99.08 % $ 113,211 98.58 % $ 130,830 99.91 % 30-59 Days Past Due 215 0.24 % 466 0.41 % 48 0.04 % 60-89 Days Past Due 174 0.20 % 243 0.21 % 18 0.01 % 90+ Days Past Due 5 0.01 % 885 0.77 % — — % 394 0.45 % 1,594 1.39 % 66 0.05 % Total Accrual Loans $ 88,050 99.53 % $ 114,805 99.97 % $ 130,896 99.96 % Non-Accrual Loans Current $ 374 0.42 % $ 16 0.01 % $ 16 0.01 % 30-59 Days Past Due — — % 8 0.01 % 9 0.01 % 60-89 Days Past Due 2 — % — — % 11 0.01 % 90+ Days Past Due 40 0.05 % 11 0.01 % 19 0.01 % 42 0.05 % 19 0.02 % 39 0.03 % Total Non-Accrual Loans 416 0.47 % 35 0.03 % 55 0.04 % $ 88,466 100.00 % $ 114,840 100.00 % $ 130,951 100.00 % |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment, net include the following: December 31, Estimated (in thousands) 2019 2018 (in years) Land $ 19,713 $ 18,307 NA Buildings and improvements 99,457 100,152 10–30 Furniture and equipment 23,718 21,579 3–10 Computer equipment and software 25,897 31,225 3 Leasehold improvements 22,740 19,301 5–10 Work in progress 9,523 5,170 NA $ 201,048 $ 195,734 Less: Accumulated depreciation and amortization (72,224 ) (72,231 ) $ 128,824 $ 123,503 In 2019, the Company sold vacant land adjacent to its Beacon operations center (the “vacant land”) with a carrying value of approximately $0.5 million , and realized a gain of approximately $2.8 million . Prior to 2019, the vacant land had been included as part of “Buildings and improvements” in the table above. In 2017, the Company sold one property in New York City (the “New York Building”) and a Florida banking center building with a total carrying value of approximately $19.1 million , and realized an aggregate gain of approximately $11.3 million . There were no significant sales of properties in 2018. In 2018, the Company sold all of its interest in an operating subsidiary, which held an aircraft leased to the Former Parent under an operating lease. Depreciation and amortization expense was approximately $7.1 million , $8.5 million and $9.0 million in the years ended December 31, 2019 , 2018 and 2017 , respectively. In 2019 , 2018 and 2017 fully-depreciated equipment with an original cost of approximately $6.9 million , $0.8 million and $1.4 million , respectively, were written-off and charged against their respective accumulated depreciation. Depreciation expense in 2019 includes a reduction of approximately $0.7 million as a result of the correction of an error in the accounting for land in the Company’s Beacon operations center and the vacant land. |
Time Deposits
Time Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Time Deposits | Time Deposits Time deposits i n denominations of $100,000 or more amounted to approximately $1.4 billion at December 31, 2019 and 2018 . Time deposits in denominations of more than $250,000 amounted to approximately $733 million and $687 million at December 31, 2019 and 2018 , respectively. The average interest rate paid on time deposits was approximately 2.72% in 2019 and 2.51% in 2018 . As of December 31, 2019 and 2018 brokered time deposits amounted to $662 million and $642 million , respectively. At December 31, 2019 and 2018 the maturity of time deposits were as follows: (in thousands, except percentages) 2019 2018 Year of Maturity Amount % Amount % 2019 $ — — % $ 1,438,565 60.3 % 2020 1,568,699 64.8 % 361,255 15.1 % 2021 294,463 12.2 % 168,850 7.1 % 2022 233,227 9.6 % 135,265 5.7 % 2023 253,382 10.5 % 261,642 11.0 % 2024 and thereafter 70,568 2.9 % 21,554 0.8 % Total $ 2,420,339 100.0 % $ 2,387,131 100.0 % |
Advances From the Federal Home
Advances From the Federal Home Loan Bank and Other Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Advances From the Federal Home Loan Bank and Other Borrowings | Advances From the Federal Home Loan Bank and Other Borrowings At December 31, 2019 and 2018 , the Company had outstanding advances from the FHLB and other borrowings as follows: Outstanding Balance at December 31, Year of Maturity Interest Interest 2019 2018 (in thousands) 2019 1.80% to 3.86% Fixed $ — $ 160,000 2019 2.40% to 2.82% Variable — 280,000 2020 1.50% to 2.74% Fixed 135,000 306,000 2020 1.84% to 2.03% Variable 150,000 — 2021 1.75% to 3.08% Fixed 210,000 210,000 2022 2.48% to 2.80% Fixed 120,000 120,000 2023 and after (1) 0.71% to 3.23% Fixed 620,000 90,000 $ 1,235,000 $ 1,166,000 __________________ (1) As of December 31, 2019, includes $530 million (interest rate - from 0.71% to 0.97% ) in advances from the FHLB that are callable prior to maturity. There were no callable advances from the FHLB as of December 31, 2018. At December 31, 2019 and 2018 , the Company held stock of the FHLB for approximately $60 million and $57 million , respectively. The terms of the Company’s advance agreement with the FHLB require the Company to maintain certain investment securities and loans as collateral for these advances. At December 31, 2019 and 2018 the Company was in compliance with this requirement. There were no other borrowings at December 31, 2019 and 2018 . |
Junior Subordinated Debentures
Junior Subordinated Debentures Held by Trust Subsidiaries | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures Held by Trust Subsidiaries | Junior Subordinated Debentures Held by Trust Subsidiaries At December 31, 2019 and 2018 , the Company owns all of the common capital securities issued by 6 and 8 statutory trust subsidiaries (“the Trust Subsidiaries”), respectively. These Trust Subsidiaries were first formed by the Company for the purpose of issuing trust preferred securities (“the Trust Preferred Securities”) and investing the proceeds in junior subordinated debentures issued by the Company. The debentures are guaranteed by the Company. The Company records the common capital securities issued by the Trust Subsidiaries in other assets in its consolidated balance sheets using the equity method. The junior subordinated debentures issued to the Trust Subsidiaries, less the common securities of the Trust Subsidiaries, qualify as Tier 1 regulatory capital. The following table provides information on the outstanding Trust Preferred Securities issued by, and the junior subordinated debentures issued to, each of the Trust Subsidiaries as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 (in thousands) Amount of Principal Amount of Principal Year of Annual Rate of Trust Year of Commercebank Capital Trust I $ 26,830 $ 28,068 $ 26,830 $ 28,068 1998 8.90% 2028 Commercebank Statutory Trust II — — 15,000 15,464 2000 10.60% 2030 Commercebank Capital Trust III — — 10,000 10,400 2001 10.18% 2031 Commercebank Capital Trust VI 9,250 9,537 9,250 9,537 2002 3-M LIBOR + 3.35% 2033 Commercebank Capital Trust VII 8,000 8,248 8,000 8,248 2003 3-M LIBOR + 3.25% 2033 Commercebank Capital Trust VIII 5,000 5,155 5,000 5,155 2004 3-M LIBOR + 2.85% 2034 Commercebank Capital Trust IX 25,000 25,774 25,000 25,774 2006 3-M LIBOR + 1.75% 2038 Commercebank Capital Trust X 15,000 15,464 15,000 15,464 2006 3-M LIBOR + 1.78% 2036 $ 89,080 $ 92,246 $ 114,080 $ 118,110 The Company and the Trust Subsidiaries have the option to defer payment of interest on the obligations for up to 10 semi-annual periods. In 2019 and 2018 , no payments of interest have been deferred on these obligations. The Trust Preferred Securities are subject to mandatory redemption, in whole or in part, upon the maturity or early redemption of the debentures. Early redemption premiums may be payable. On July 31, 2019 and September 7, 2019, the Company redeemed all $10.0 million of its outstanding 10.18% trust preferred securities issued by its Commercebank Capital Trust III (“Capital Trust III”) and all $15.0 million of its outstanding 10.60% trust preferred securities issued by its Commercebank Statutory Trust II (“Statutory Trust II”), respectively. The Capital Trust III and the Statutory Trust II securities were redeemed at the contractual call price of 101.018% and 100.530% , respectively. The Company simultaneously redeemed all $10.4 million and $15.5 million junior subordinated debentures held by its Capital Trust III and Statutory Trust II, respectively, as part of these redemption transactions. On January 30, 2020, the Company redeemed all $26.8 million of its outstanding 8.90% trust preferred capital securities issued by Commercebank Capital Trust I (“Capital Trust I”) at a redemption price of 100% . The Company simultaneously redeemed all junior subordinated debentures held by Capital Trust I as part of this redemption transaction. The redemptions that took place in 2019 together reduced total cash and cash equivalents by $23.8 million , financial liabilities by $25.9 million and other assets by $2.4 million . In addition, 2019 results included a total charge of $0.3 million for the contractual premiums paid to security holders from these redemptions. The redemption of these legacy Tier 1 capital instruments reduced the Company’s Tier 1 equity capital by a net of $23.5 million . |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments From time to time, the Company enters into derivative financial instruments as part of its interest rate management activities and to facilitate customer transactions. Those instruments may or not be designated and qualify as part of a hedging relationship. The customer derivatives we use for the Company’s account are generally matched against derivatives from third parties, but are not designated as hedging instruments. At December 31, 2019 and 2018 the fair value of the Company’s derivative instruments was as follows: December 31, 2019 December 31, 2018 (in thousands) Other Assets Other Liabilities Other Assets Other Liabilities Interest rate swaps designated as cash flow hedges $ 301 $ — $ 9,386 $ 283 Interest rate swaps not designated as hedging instruments: Customers 11,236 527 1,420 — Third party broker 527 11,236 — 1,420 11,763 11,763 1,420 1,420 Interest rate caps not designated as hedging instruments: Customers — 46 — 685 Third party broker 33 — 685 — 33 46 685 685 $ 12,097 $ 11,809 $ 11,491 $ 2,388 Derivatives Designated as Hedging Instruments The Company enters into interest rate swap contracts which the Company designates and qualify as cash flow hedges. These interest rate swaps are designed as cash flow hedges to manage the exposure that arises from differences in the amount of the Company’s known or expected cash receipts and the known or expected cash payments on designated debt instruments. These interest rate swap contracts involve the Company’s payment of fixed-rate amounts in exchange for the Company receiving variable-rate payments over the life of the contracts without exchange of the underlying notional amount. At December 31, 2019 , the Company had five interest rate swap contracts with notional amounts totaling $64.2 million that were designated as cash flow hedges to manage the exposure of variable rate interest payments on all of the Company’s outstanding variable-rate junior subordinated debentures with principal amounts at December 31, 2019 totaling $64.2 million . The Company expects these interest rate swaps to be highly effective in offsetting the effects of changes in interest rates on cash flows associated with the Company’s variable-rate junior subordinated debentures. At December 31, 2018 , the Company had 16 interest rate swap contracts with total notional amounts of $280 million that were designated as cash flow hedges of variable rate interest payments on the outstanding and expected rollover of variable-rate advances from the FHLB. At December 31, 2018, these advances had a carrying amount of $280 million and maturities of less than one year. The interest rate swaps had maturities raging from one to eight years. These hedge’s relationships were expected to be highly effective in offsetting the effects of changes in interest rates in the cash flows associated with the advances from the FHLB. No hedge ineffectiveness gains or losses were recognized in the years ended December 31, 2019 and 2018 . In February and March 2019, the Company terminated the 16 interest rate swaps designated as cash flow hedges. The Company is recognizing the contracts’ cumulative net unrealized gains of $8.9 million in earnings over the remaining original life of the terminated interest rate swaps ranging between one month and seven years . The Company recognized approximately $1.2 million as a reduction of interest expense on FHLB advances in 2019 as a result of this amortization. Derivatives Not Designated as Hedging Instruments Interest Rate Swaps At December 31, 2019 and 2018 , the Company had 49 and eight interest rate swap contracts with customers with a total notional amount of $405.2 million and $80.4 million , respectively. These instruments involve the Company’s payment of fixed-rate amounts in exchange for the Company receiving variable-rate payments over the life of the contracts without exchange of the underlying notional amount. In addition, at December 31, 2019 and 2018 , the Company had interest rate swap mirror contracts with third party brokers and similar terms. These instruments have maturities ranging from 4 to 10 years ( 5 to 10 years in 2018 ). In 2019, we entered into swap participation agreements with other financial institutions to manage the credit risk exposure on certain interest rate swaps with customers. Under these agreements, the Company, as the beneficiary or guarantor, will receive or make payments from/to the counterparty if the borrower defaults on the related interest rate swap contract. As of December 31, 2019 , we had three swap participation agreements with an aggregate notional amount of approximately $50.2 million . The notional amount of these agreements is based on the Company’s pro-rata share of the related interest rate swap contracts. As of December 31, 2019 the fair value of swap participation agreements was not significant. Interest Rate Caps At December 31, 2019 and 2018 , the Company had 16 interest rate cap contracts with customers with a total notional amount of $315.2 million and $323.7 million , respectively. These instruments involve the Company making payments if an interest rate exceeds the agreed strike price. In addition, at December 31, 2019 and 2018 , the Company had 13 and 16 interest rate cap mirror contracts with various third party brokers with total notional amount of $234.1 million and $323.7 million , respectively. These instruments have maturities ranging from less than 1 to 4 years ( 1 to 5 years in 2018 ). |
Incentive Compensation and Bene
Incentive Compensation and Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Incentive Compensation and Benefit Plans | Incentive Compensation and Benefit Plans a) Stock-based Incentive Compensation Plan On March 12, 2018, the Former Parent, our sole shareholder at that time, approved the Amerant Bancorp Inc. (formerly Mercantil Bank Holding Corporation) 2018 Equity and Incentive Compensation Plan (the “2018 Equity Plan”). The 2018 Equity Plan was renamed as of August 8, 2019 to reflect the change of the Company’s name to Amerant Bancorp Inc. on June 5, 2019. The Company has reserved up to 3,333,333 shares of Class A common stock for issuance pursuant the grant of options rights, appreciation rights, restricted stock, restricted stock units and other awards under the 2018 Equity Plan. On December 21, 2018, in connection with the closing of the Company’s IPO, the Company’s directors were granted restricted stock units, and various Company officers and employees were granted restricted Class A common stock awards, under the 2018 Equity Plan. Restricted Stock Awards On January 22, 2019, the Company granted 1,299 shares of restricted Class A common stock to an employee who was not included in the December 21, 2018 restricted stock award. These shares of restricted stock will vest in three approximately equal amounts on each of January 21, 2020, 2021 and 2022. The fair value of the restricted stock granted was based on the market price of the shares of the Company’s Class A common stock at the grant date which was $13.58 per share. On October 7, 2019 the Company granted 2,583 shares of restricted Class A common stock to a new employee. These shares of restricted stock will vest in three approximately equal amounts on each October 7, 2020, 2021 and 2022. The fair value of the restricted stock granted was based on the market price of the shares of the Company’s Class A common stock at the grant date which was $19.35 . On December 21, 2018, the Company granted 736,839 shares of restricted Class A common stock to officers and employees. These shares of restricted stock will vest in three approximately equal amounts on each of December 21, 2019, 2020 and 2021. The fair value of the restricted stock granted was based on the market price of the shares of the Company’s Class A common stock at the grant date which was $13.45 . In 2019 and 2018 , the Company recorded $5.9 million and $0.2 million of compensation expense, respectively, related to restricted stock awards. The total unearned deferred compensation expense of $3.9 million for all unvested restricted stock outstanding at December 31, 2019 will be recognized over a weighted average period of 1.6 years . The following table shows the activity of restricted stock awards in 2019: Number of restricted shares Weighted-average grant date fair value Non-vested shares, beginning of year 736,839 $ 13.45 Granted 3,882 17.42 Vested (245,590 ) 13.45 Forfeited — — Non-vested shares, end of year 495,131 $ 13.48 Restricted Stock Units On June 4, 2019 the Company granted 3,439 restricted stock units (“RSUs”) to one of its non-employee directors. These 3,439 RSUs are settled in shares of Class A common stock and will all vest on June 4, 2020. On December 21, 2018, the Company granted 86,535 RSUs to its non-employee directors. Of the 86,535 RSUs, 57,690 RSUs are settled in shares of Class A common stock while the remaining 28,845 RSUs are settled in cash, both upon vesting. These RSUs will vest in three approximately equal amounts on each of December 21, 2019, 2020 and 2021. In 2019, the Company recorded $0.8 million of director’s compensation related to these RSUs. The total unearned directors compensation of $0.3 million for all unvested stock-settled RSUs at December 31, 2019 will be recognized over weighted average period of 1.6 years . The following table shows the activity of RSUs in 2019: Stock-settled RSUs Cash-settled RSUs Total RSUs Number of RSUs Weighted-average grant date fair value Number of RSUs Weighted-average grant date fair value Number of RSUs Weighted-average grant date fair value Nonvested, beginning of year 57,690 $ 13.45 28,845 $ 13.45 86,535 $ 13.45 Granted 3,439 18.17 — — 3,439 18.17 Vested (16,025 ) 13.45 (9,615 ) 13.45 (25,640 ) 13.45 Forfeited (9,615 ) 13.45 — — (9,615 ) 13.45 Non-vested, end of year 35,489 $ 13.91 19,230 $ 13.45 $ 54,719 $ 13.75 b) Employee Benefit Plan The Amerant Bank U.S.A. Retirement Plan (formerly, the Mercantil Bank U.S.A Retirement Plan) (the “401(k) Plan”) is a 401(k) benefit plan covering substantially all employees of the Company. The Company matches 100% of each participant’s contribution up to a maximum of 5% of their annual salary. Contributions by the Company to the Plan are based upon a fixed percentage of participants’ salaries as defined by the Plan. The Plan enables Highly Compensated employees to contribute up to the maximum allowed without further restrictions. All contributions made by the Company to the participants’ accounts are vested immediately. In addition, employees with at least three months of service and who have reached a certain age may contribute a percentage of their salaries to the Plan as elected by each participant. The Company contributed to the Plan approximately $3.7 million and $4.7 million in 2019 and 2018 respectively, in matching contributions. The Company maintains the Amerant Bank, N.A. Executive Deferred Compensation Plan as a non-qualified plan for eligible highly compensated employees (the “Deferred Compensation Plan”). The Deferred Compensation Plan permits deferrals of compensation above the amounts that can be contributed for retirement under the 401(k) Plan. Under the Deferred Compensation Plan, eligible employees may elect to defer a portion of their annual salary and cash incentive awards and allows them to receive matching contributions up to 5% of their annual salary. All deferrals, employer contributions, earnings, and gains on each participant’s account in the Deferred Compensation Plan are vested immediately. The 2018 Spin-off caused an unexpected early distribution for U.S. federal income tax purposes from the Deferred Compensation Plan. The Company partially compensated plan participants, in the aggregate amount of $1.2 million , for the higher tax expense they incurred as a result of the distribution increasing the plan participants’ estimated effective federal income tax rates by recording a contribution to the plan on behalf of its participants. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of t he income tax expense for the years ended December 31, 2019 , 2018 and 2017 are as follows: (in thousands) 2019 2018 2017 Current tax expense: Federal $ 9,748 $ 7,298 $ 19,194 State 2,279 1,964 1,763 Impact of lower rate under the 2017 Tax Act - Remeasurement of net deferred tax assets, other than balances corresponding to items in AOCI — — 8,470 Remeasurement of net deferred tax assets corresponding to items in AOCI — — 1,094 Deferred tax expense 670 2,471 3,471 $ 12,697 $ 11,733 $ 33,992 On December 22, 2017, the 2017 Tax Act was signed into law. This law significantly changed U.S. tax law by, among other things, lowering corporate federal income tax rates and implementing a territorial tax system. The legislation permanently reduced the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018. As a result of the reduction in the U.S. corporate federal income tax rate, the Company remeasured its ending net deferred tax assets at December 31, 2017 and recognized a total of $9.6 million tax expense in the Company’s consolidated statement of income for the year ended December 31, 2017. The following table shows a reconciliation of the income tax expense at the statutory federal income tax rate to the Company’s effective income tax rate for the three years ended December 31, 2019 : 2019 2018 2017 (in thousands, except percentages) Amount % Amount % Amount % Tax expense calculated at the statutory federal income tax rate $ 13,447 21.00 % $ 12,089 21.00 % $ 26,967 35.00 % Increases (decreases) resulting from: Impact of the 2017 Tax Act - Remeasurement of net deferred tax assets — — % — — % 9,564 12.41 % Non-taxable interest income (1,132 ) (1.77 )% (1,507 ) (2.62 )% (1,643 ) (2.13 )% Non-taxable BOLI income (1,199 ) (1.87 )% (1,223 ) (2.12 )% (1,910 ) (2.48 )% Stock-based compensation (454 ) (0.71 )% — — % — — % Non-deductible Spin-off costs — — % 1,711 2.97 % — — % Disallowed interest expense allocable to tax exempt securities and other expenses 624 0.97 % 627 1.09 % 577 0.75 % State and city income taxes, net of federal income tax benefit 1,800 2.81 % (131 ) (0.23 )% 1,146 1.49 % Other, net (389 ) (0.60 )% 167 0.29 % (709 ) (0.92 )% $ 12,697 19.83 % $ 11,733 20.38 % $ 33,992 44.12 % The composition of the net deferred tax asset is as follows: December 31, (in thousands) 2019 2018 Tax effect of temporary differences Provision for loan losses $ 11,487 $ 13,581 Net unrealized (gains) losses in other comprehensive income (4,282 ) 5,878 Deferred compensation expense 3,457 3,489 Stock-based compensation expense 769 — Interest income on nonaccrual loans 660 341 Goodwill amortization (4,293 ) (3,979 ) Depreciation and amortization (3,881 ) (3,934 ) Other 1,563 934 Net deferred tax assets $ 5,480 $ 16,310 The Company evaluates the deferred tax asset for recoverability using a consistent approach which considers the relative impact of negative and positive evidence, including its own historical financial performance and that of its operating subsidiaries and projections of future taxable income. This evaluation involves significant judgment by management about assumptions that are subject to change from period to period. Management believes that the weight of all the positive evidence currently available exceeds the negative evidence in support of the realization of the future tax benefits associated with the federal net deferred tax asset. As a result, management has concluded that the federal net deferred tax asset in its entirety will more likely than not be realized. Therefore, a valuation allowance is not considered necessary. If future results differ significantly from the Company’s current projections, a valuation allowance against the net deferred tax asset may be required. At December 31, 2019 and 2018 , the Company had accumulated net operating losses (“NOLs”) in the State of Florida of approximately $161.8 million and $151.9 million , respectively. These NOLs are carried forward for a maximum of 20 years based on applicable Florida law. The deferred tax asset related to these NOLs at December 31, 2019 and 2018 is approximately $7.0 million and $6.6 million , respectively. A full valuation allowance has been recorded against the state deferred tax asset related to these NOLs as management believes it is more likely than not that the tax benefit will not be realized. At December 31, 2019 and 2018 , the Company had no unrecognized tax benefits or associated interest or penalties that needed to be accrued. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (“AOCI/AOCL”) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) (“AOCI/AOCL”) | Accumulated Other Comprehensive Income (Loss) (“AOCI/AOCL”): The components of AOCI/AOCL are summarized as follows using applicable blended average federal and state tax rates for each period: December 31, 2019 December 31, 2018 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized gains (losses) on available for sale securities $ 9,563 $ (2,338 ) $ 7,225 $ (33,145 ) $ 8,104 $ (25,041 ) Unrealized gains on interest rate swaps designated as cash flow hedges 7,953 (1,944 ) $ 6,009 9,103 (2,226 ) 6,877 Total AOCI (AOCL) $ 17,516 $ (4,282 ) $ 13,234 $ (24,042 ) $ 5,878 $ (18,164 ) The components of other comprehensive income (loss) for the three-year period ended December 31, 2019 is summarized as follows: December 31, 2019 (in thousands) Before Tax Tax Net of Tax Unrealized gains on available for sale securities: Change in fair value arising during the period $ 43,427 $ (10,617 ) $ 32,810 Cumulative effect of change in accounting principle 1,155 (283 ) 872 Reclassification adjustment for net gains included in net income (1,874 ) 458 (1,416 ) 42,708 (10,442 ) 32,266 Unrealized gains on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 379 (92 ) 287 Reclassification adjustment for net interest income included in net income (1,529 ) 374 (1,155 ) (1,150 ) 282 (868 ) Total other comprehensive income $ 41,558 $ (10,160 ) $ 31,398 December 31, 2018 (in thousands) Before Tax Tax Net of Tax Unrealized losses on available for sale securities: Change in fair value arising during the period $ (20,730 ) $ 5,465 $ (15,265 ) Reclassification adjustment for net losses included in net income 999 (244 ) 755 (19,731 ) 5,221 (14,510 ) Unrealized gains on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 3,744 (1,081 ) 2,663 Reclassification adjustment for net interest income included in net income (243 ) 59 (184 ) 3,501 (1,022 ) 2,479 Total other comprehensive loss $ (16,230 ) $ 4,199 $ (12,031 ) December 31, 2017 (in thousands) Before Tax Tax Net of Tax Unrealized gains on available for sale securities arising during the period $ 6,875 $ (3,298 ) $ 3,577 Reclassification adjustment for net losses included in net income 1,601 (768 ) 833 Unrealized gains on interest rate swaps designated as cash flow hedges 293 (141 ) 152 Total other comprehensive income $ 8,769 $ (4,207 ) $ 4,562 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company was a wholly-owned subsidiary of the Former Parent through August 10, 2018 when t he Distributed Shares were distributed to the Former Parent’s shareholders. The Former Parent sold all of its voting Class A common stock in the IPO, and reduced its nonvoting Class B common stock to less than 5% of the Company’s total common stock on December 28, 2018. As a result, at year end 2018, the Former Parent no longer controlled the Company or the Bank. In March 2019, we completed the repurchase of the remaining Class B Retained Shares from the Former Parent. Following this repurchase, the Former Parent no longer owns any Company Shares. The Company’s related parties include directors, executive officers, holders of 5% or more of the Company’s common stock, or any member of the immediate family of these persons. Transactions with related parties were entered into pursuant to the Company’s policies and procedures and applicable law, including Federal Reserve Regulation W, on substantially the same terms and conditions as transactions with unaffiliated third parties. In addition to loans to related parties and associated interest income, which are described below, consolidated balance sheets and the consolidated statements of operations include the following amounts with related parties: December 31, (in thousands) 2019 2018 Liabilities Demand deposits, noninterest bearing $ 4,007 $ 9,447 Demand deposits, interest bearing 3,457 3,721 Money market 1,090 308 Time deposits and accounts payable 5,246 1,350 Total due to related parties $ 13,800 $ 14,826 Years Ended December 31, (in thousands) 2019 2018 2017 Income Data processing and other services $ 955 $ 2,168 $ 1,532 Rental income from operating lease — 248 1,971 Service charges — 95 90 $ 955 $ 2,511 $ 3,593 Expenses Interest expense $ 34 $ 126 $ 85 Fees and other expenses 501 623 302 535 749 387 $ 420 $ 1,762 $ 3,206 The Cayman Bank Acquisition On November 15, 2019, the Bank completed the acquisition of Grand Cayman-based Mercantil Bank and Trust Limited, or the Cayman Bank, from Mercantil Holding Financiero Internacional (the “Cayman Bank Acquisition.”) The Cayman Bank is now a wholly owned subsidiary of the Bank and was rebranded “Elant Bank and Trust Ltd.” The purchase price of approximately $15.0 million was paid in cash and represented the Cayman Bank’s fair market value of its shareholder’s equity, adjusted to reflect income and losses to the closing date and purchase accounting adjustments, including the mark to market of all assets acquired and liabilities assumed at the closing date, plus a premium of $885,000 . Net assets acquired consisted of $0.6 million in cash and due from banks, debt securities available for sale of $27.9 million and time deposits of $14.4 million . The Cayman Bank Acquisition was recorded as a business acquisition using the acquisition method of accounting. All assets and liabilities of the Cayman Bank were remeasured at their fair value as of the acquisition date. The Cayman Bank Acquisition resulted in goodwill of approximately $0.3 million and an identifiable intangible asset of approximately $0.5 million . The identifiable intangible asset corresponds to the fair value of established customer relationships as of the date of the acquisition and is amortized over its estimated useful life of 14 years on a straight-line basis. Securities transactions On December 29, 2018, the Company repurchased Class B common stock from the Former Parent. In addition, on March 7, 2019 the Company repurchased all the remaining Class B common stock from the Former Parent. See Note 15 for more details. Loan transactions The Company originates loans in the normal course of business to certain related parties. At December 31, 2019 and 2018 , these loans amounted to $3.9 million and $5.6 million , respectively. These loans are generally made to persons who participate or have authority to participate (other than in the capacity of a director) in major policymaking functions of the Company or its affiliates, such as principal owners and management of the Company and their immediate families. Interest income on these loans was approximately $0.2 million in 2019 and 2018 . There were no sales of participations to affiliates in 2019. In 2018, the Company sold approximately $10.0 million of participations in financial institution loans to non-U.S. affiliates. These participated loans were made to unaffiliated borrowers under terms consistent with the Company’s normal lending practices. The Company recorded no gain or loss on these loan participation transactions. There were no participations purchased from affiliates in 2019 and 2018 . Services provided and received The Company had historically provided certain data processing and corporate services to non-U.S. subsidiaries of the Former Parent under the terms of certain service and transition agreements. Fee income for those services are included in data processing and other fees above. These services ended in 2019. The Former Parent granted the Company a two -year license under the Amended and Restated Separation and Distribution Agreement dated as of June 12, 2018, commencing on August 18, 2018, to use the “Mercantil” name and marks in connection with its business. Under the terms of the Amended and Restated Separation and Distribution Agreement, no fees were payable for the first year of the license. After the first year, the Company was required to pay a monthly license fee should it continue to use the “Mercantil” name and marks. The Company rebranded as “Amerant” on June 5, 2019 and, therefore, no fees were payable under the terms of the license agreement pursuant to the Amended and Restated Separation and Distribution Agreement. Effective on August 2018, the Company entered into a Book-Entry Securities Custody Agreement with a wholly owned Venezuelan bank of the Former Parent. As a service to its smaller shareholders and to promote shareholder liquidity generally, the Company paid fees in consideration for assistance with the separation and distribution of the Company Shares, as well as for the custody, safekeeping and information agent services provided to smaller shareholders. These initial services were terminated on June 30, 2019. Under the terms of the agreement, the Company continues to receive custody, safekeeping and information agent services to smaller shareholders. The agreement, which had an initial term of 18 months , was renewed in February 2019 for an additional year, and provides for a monthly fee payable by the Company. The Company incurred a total of approximately $0.4 million as a result of this agreement in 2019. Leasing subsidiary On February 15, 2018, the Company sold its membership interest in G200 Leasing, LLC (“G200 Leasing”) to a subsidiary of the Former Parent. Prior to the sale, G200 Leasing distributed $19.8 million in cash to the Bank. All of the membership interests in G200 Leasing were sold for $8.5 million , which approximated the fair value of net assets sold. Net assets sold were mainly comprised of approximately $1 million cash held at the Bank and approximately $7.5 million corresponding to the net book value of an aircraft owned by G200 Leasing. The Company recorded no gain or loss on this sale. G200 Leasing had leased its aircraft to the Former Parent. Under the terms of the lease agreement between G200 Leasing and the Former Parent, the Former Parent had sole use of the aircraft and provided for all of its scheduled maintenance, including maintaining sufficient qualified collateral in accordance with U.S. banking regulatory requirements. The Former Parent had time deposits with the Company sufficient to meet those collateral requirements. Income from this lease agreement was included in rental income from the operating lease in the preceding table. Other liabilities The Company had approximately $3.2 million due to its Trust Subsidiaries as of December 31, 2019. This amount is included in other liabilities in the precedent table. The Company has repaid approximately $2.1 million through March 4, 2020. Dividends paid On March 13, 2018, the Company paid a special, one-time, cash dividend of $40.0 million to the Former Parent, or $0.94 per common share, in connection with the Spin-off. |
Stockholders_ Equity
Stockholders’ Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders’ Equity | Stockholders’ Equity (a) Amended and Restated Articles of Incorporation On February 6, 2018, the Company filed amended and restated articles of incorporation with the Secretary of State of Florida. Pursuant to the amended and restated articles, the total number of authorized Company shares of all classes is 550,000,000 , consisting of the following classes: Class Number of Par Value Common Stock: Class A 400,000,000 $ 0.10 Class B 100,000,000 0.10 500,000,000 Preferred Stock 50,000,000 0.10 550,000,000 Common Stock Holders of shares of Class A common stock and shares of Class B common stock have identical rights in all respects other than voting rights. Shares of Class B common stock are not convertible into shares of Class A common stock or vice versa. Holders of shares of Class A common stock are entitled to one vote per share on all matters. Holders of Class B common stock are entitled to one-tenth of a vote per share of Class B common stock, voting (i) together with the Class A common stock as a single voting group on proposals to appoint the Company’s independent auditors, if the Company seeks such a vote, (ii) as required by the Florida Business Corporation Act, and (iii) as a single voting group in other circumstances, including a reorganization event that adversely affects the rights of the Class B common stock. Preferred Stock The Board of Directors is authorized to provide for and designate, out of the authorized but unissued shares of Preferred Stock, one or more series of Preferred Stock and, with respect to each such series, to fix the number of shares, the price, dividend rates, rights, preferences, privileges and restrictions, including voting rights, of one or more series of preferred stock from time to time, without any vote or further action by the shareholders. There are currently no outstanding shares of preferred stock. Dividends Dividends shall be payable only when, as and if declared by the Board of Directors from lawful available funds, and may be paid in cash, property, or shares of any class or series or other securities or evidences of indebtedness of the Company or any other issuer, as may be determined by resolution or resolutions of the Board of Directors. Shares of Class B common stock are not entitled to receive dividends or distributions payable in shares of Class A common stock. b) Stock Splits On February 6, 2018, the Company exchanged 100% of the 298,570,328 shares of Class A common stock and 215,188,764 shares of Class B common stock outstanding, for 74,212,408 shares of Class A common stock and 53,253,157 shares of Class B common stock (the “Exchange”). This facilitated the distribution in the Spin-off of one share of Class A and Class B common stock for each outstanding share of the Former Parent Class A and Class B common stock, respectively. On October 23, 2018, the Company completed a 1-for-3 reverse stock split of the Company’s issued and outstanding shares of its Class A and Class B common stock (the “Stock Split”). As a result of the Stock Split, every three shares of issued and outstanding Class A common stock were combined into one issued and outstanding share of Class A common stock, and every three shares of issued and outstanding Class B common stock were combined into one issued and outstanding share of Class B common stock, without any change in the par value per share. Fractional shares were issued and no cash was paid by the Company in respect of fractional shares or otherwise in the Stock Split. The Stock Split reduced the number of shares of Class A common stock issued and outstanding from 74,212,408 shares to 24,737,470 shares, and reduced the number of shares of Class B common stock issued and outstanding from 53,253,157 shares to 17,751,053 shares. As a result of the rebranding discussed in Note 1 to these consolidated financial statements, and in connection with the Stock Split, the Company's Class A and Class B common stock began trading on a Stock Split-adjusted basis on October 24, 2018 under the symbols “AMTB” (for the Class A shares) and “AMTBB” (for the Class B shares). The Company’s Class A and Class B shares had previously traded under the symbols “” and “MBNAB”, respectively. All references made to share or per share amounts in the consolidated financial statements for the periods presented and applicable disclosures have been retroactively adjusted to reflect the Exchange and Stock Split. In addition, as a result of the Exchange and Stock Split, the Company reclassified an amount equal to the reduction in the number of Company Shares at par value to additional paid-in capital on its consolidated financial statements for the periods presented. c) Class A Common Stock Shares of the Company’s Class A common stock issued and outstanding as of December 31, 2019 and 2018 were 28,927,576 and 26,851,832 , respectively. IPO On December 21, 2018, the Company closed the IPO of 6,300,000 shares of its Class A common stock at a public offering price of $13.00 per share. Of the 6,300,000 shares of Class A common stock sold in the offering, the Company sold 1,377,523 shares of Class A common stock and the Former Parent sold all of its 4,922,477 shares of Class A common stock. In addition, the Company granted the underwriters a 30 -day option to purchase up to an additional 945,000 shares of Class A common stock at the public offering price, less the underwriting discount, to cover over-allotment. The net proceeds to the Company from the sale of its shares of Class A common stock in the IPO were approximately $17.9 million . The Company received no proceeds from the sale of its shares of Class A common stock in the IPO by the Former Parent. On January 23, 2019, the Underwriters partially exercised their over-allotment option by purchasing 229,019 shares of the Company’s Class A common stock at the public offering price of $13.00 per shares of Class A common stock. The net proceeds to the Company from this transaction were approximately $3.0 million . The Former Parent paid all underwriting discounts, commissions and offering expenses with respect to the IPO. Private Placements On February 1, 2019 and February 28, 2019, the Company issued and sold 153,846 and 1,750,000 shares of its Class A common stock, respectively, in private placements exempt from registration under Section 4(a)(2) of the Securities Act and Securities and SEC Rule 506 (the “Private Placements”). The net proceeds to the Company from the Private Placements totaled approximately $26.7 million . Stock Compensation Award On December 21, 2018, in connection with the closing of the Company’s IPO, the Company’s directors were granted restricted stock units, and various Company officers and employees were granted restricted Class A common stock awards, under the 2018 Equity Plan. Under this plan, the Company issued an aggregate of 736,839 shares of restricted stock during 2018. Refer to Note 11 to our consolidated financial statements for additional information about common stock transactions under the 2018 Equity Plan. d) Class B Common Stock and Treasury Stock The Company had 17,751,053 shares of Class B common stock issued as of December 31, 2019 and 2018 . As of December 31, 2019 and 2018 , there were 14,218,596 shares and 16,330,917 shares, respectively, of Class B common stock outstanding. As of December 31, 2019 and 2018 , the Company had 3,532,457 shares and 1,420,136 shares, respectively, of Class B common stock held as treasury stock under the cost method. On December 27, 2018, following the December 21, 2018 closing of the Company’s IPO, the Company and the Former Parent entered into the Class B Purchase Agreement. Pursuant to the Class B Purchase Agreement, the Company agreed to purchase up to all 3,532,457 shares of its nonvoting Class B common stock from the Former Parent using the net proceeds from the Company’s sale of its Class A common stock. On December 28, 2018, the Company completed the purchase of the aforementioned 1,420,136 shares of Class B common stock from the Former Parent for $12.61 per shares of Class B common stock, representing an aggregate purchase price of approximately $17.9 million . On March 7, 2019, the Company repurchased all of the Former Parent’s 2,112,321 remaining shares of nonvoting Class B common stock at a weighted average price of $13.48 per share with proceeds from the IPO over-allotment exercise and the Private Placements, representing an aggregate purchase price of approximately $28.5 million . The aforementioned 2,112,321 shares of Class B common stock are held in treasury stock under the cost method. On February 14 and February 21, 2020, the Company repurchased an aggregate of 932,459 shares of nonvoting Class B common stock in two privately negotiated transactions (collectively, the “2020 Repurchase”) for $16.00 per share of Class B common stock, representing an aggregate purchase price of approximately $14.9 million . The Company funded the 2020 Repurchase with available cash. e) Dividends On March 13, 2018, the Company paid a special, one-time, cash dividend of $40.0 million to the Former Parent, or $0.94 per common share. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company and its subsidiaries are party to various legal actions arising in the ordinary course of business. In the opinion of management, the outcome of these proceedings will not have a significant effect on the Company’s consolidated financial position or results of operations. The Company occupies various premises under noncancelable lease agreements expiring through the year 2046. Actual rental expenses may include deferred rents that are recognized as rent expense on a straight line basis. Rent expense under these leases was approximately $5.5 million , $6.4 million and $6.0 million for the years ended December 31, 2019, 2018 and 2017 , respectively. Future minimum annual lease payments under such leases are as follows: Years Approximate (in thousands) 2020 $ 6,268 2021 6,007 2022 5,428 2023 5,110 2024 5,132 Thereafter 38,050 $ 65,995 The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, credit card facilities and letters of credit. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for loan commitments and letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making loan commitments and letters of credit as it does for on-balance sheet instruments. The Company controls the credit risk of loan commitments and letters of credit through credit approvals, customer limits, and monitoring procedures. Loan commitments are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Loan commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include cash, accounts receivable, inventory, property and equipment, real estate in varying stages of development and occupancy, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support borrowing arrangements. They generally have one year terms and are renewable annually, if agreed. The credit risk involved in issuing standby letters of credit is generally the same as that involved in extending loan facilities to customers. The Company generally holds deposits, investments and real estate as collateral supporting those commitments. The extent of collateral held for those commitments at December 31, 2019 ranges from unsecured commitments to commitments fully collateralized by cash and securities. Commercial letters of credit are conditional commitments issued by the Company to guarantee payment by a customer to a third party, and are used primarily for importing or exporting goods and are terminated when proper payment is made by the customer. The Company is phasing out our legacy credit card products to further strengthen its credit quality. In April 2019, the Company stopped the charging privileges to its smallest and riskiest cardholders and required repayment of their balances by November 2019. Other cardholders’ charging privileges ended in October 2019 and they were required to repay all balances by January 2020. As a result of these actions, the Company no longer carries off-balance sheet credit risk associated with its former credit card programs. Financial instruments whose contract amount represents off-balance sheet credit risk at December 31, 2019 are generally short-term and are as follows: (in thousands) Approximate Commitments to extend credit $ 820,380 Standby letters of credit 16,699 Commercial letters of credit 715 $ 837,794 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2019 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 933,112 $ — $ 933,112 Corporate debt securities — 252,836 — 252,836 U.S. government agency debt securities — 228,397 — 228,397 U.S. treasury securities — 104,236 — 104,236 Municipal bonds — 50,171 — 50,171 — 1,568,752 — 1,568,752 Equity securities with readily determinable fair values not held for trading — 23,848 — 23,848 Bank owned life insurance — 211,852 — 211,852 Derivative instruments — 12,097 — 12,097 $ — $ 1,816,549 $ — $ 1,816,549 Liabilities Derivative instruments $ — $ 11,809 $ — $ 11,809 December 31, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 820,779 $ — $ 820,779 Corporate debt securities — 352,555 — 352,555 U.S. government agency debt securities — 216,985 — 216,985 Municipal bonds — 160,212 — 160,212 Mutual funds — 23,110 — 23,110 Commercial paper — 12,410 — 12,410 — 1,586,051 — 1,586,051 Bank owned life insurance — 206,141 — 206,141 Derivative instruments — 11,491 — 11,491 $ — $ 1,803,683 $ — $ 1,803,683 Liabilities Derivative instruments $ — $ 2,388 $ — $ 2,388 Level 2 Valuation Techniques The valuation of debt securities available for sale, equity securities not held for trading, and derivative instruments is performed through a monthly pricing process using data provided by generally recognized providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data fro m various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The fair value of bank-owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies. The valuation techniques and the inputs used in our consolidated financial statements to measure the fair value of our recurring Level 2 financial instruments consider, among other factors, the following: • Similar securities actively traded which are selected from recent market transactions; • Observable market data which includes spreads in relationship to LIBOR, swap curve, and prepayment speed rates, as applicable. • The captured spread and prepayment speed is used to obtain the fair value for each related security. On a quarterly basis, the Company evaluates the reasonableness of the monthly pricing process for the valuation of debt securities available for sale and equity securities not held for trading and derivative instruments. This evaluation includes challenging a random sample of the different types of securities in the investment portfolio as of the end of the quarter selected. This challenge consists of obtaining from the Pricing Providers a document explaining the methodology applied to obtain their fair value assessments for each type of investment included in the sample selection. The Company then analyzes in detail the various inputs used in the fair value calculation, both observable and unobservable (e.g., prepayment speeds, yield curve benchmarks, spreads, delinquency rates). Management considers that the consistent application of this methodology allows the Company to understand and evaluate the categorization of its investment portfolio. The methods described above may produce a fair value calculation that may differ from the net realizable value or may not be reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of its financial instruments could result in different estimates of fair value at the reporting date. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis There were no significant assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2019 and 2018. Fair Value of Financial Instruments The fair value of a financial instrument represents the price that would be received from its sale in an orderly transaction between market participants at the measurement date. The best indication of the fair value of a financial instrument is determined based upon quoted market prices. However, in many cases, there are no quoted market prices for the Company’s various financial instruments. As a result, the Company derives the fair value of the financial instruments held at the reporting period-end, in part, using present value or other valuation techniques. Those techniques are significantly affected by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates included in present value and other techniques. The use of different assumptions could significantly affect the estimated fair values of the Company’s financial instruments. Accordingly, the net realized values could be materially different from the estimates presented below. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: • Because of their nature and short-term maturities, the carrying values of the following financial instruments were used as a reasonable estimate of their fair value: cash and cash equivalents, interest earning deposits with banks, variable-rate loans with re-pricing terms shorter than twelve months, demand and savings deposits, short-term time deposits and other borrowings. • The fair value of loans held for sale, debt and equity securities, bank owned life insurance and derivative instruments, are based on quoted market prices, when available. If quoted market prices are unavailable, fair value is estimated using the pricing process described in Note 17. • The fair value of commitments and letters of credit is based on the assumption that the Company will be required to perform on all such instruments. The commitment amount approximates estimated fair value. • The fair value of fixed-rate loans, advances from the FHLB, and junior subordinated debentures are estimated using a present value technique by discounting the future expected contractual cash flows using the current rates at which similar instruments would be issued with comparable credit ratings and terms at the measurement date. • The fair value of long-term time deposits, including certificates of deposit, is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. The estimated fair value of financial instruments where fair value differs from carrying value are as follows: December 31, 2019 December 31, 2018 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,819,477 $ 2,721,291 $ 2,850,015 $ 2,739,721 Financial liabilities Time deposits 1,745,735 1,759,347 1,745,025 1,740,752 Advances from the FHLB 1,235,000 1,244,515 1,166,000 1,167,213 Junior subordinated debentures 92,246 86,738 118,110 99,450 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value Measurements Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2019 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 933,112 $ — $ 933,112 Corporate debt securities — 252,836 — 252,836 U.S. government agency debt securities — 228,397 — 228,397 U.S. treasury securities — 104,236 — 104,236 Municipal bonds — 50,171 — 50,171 — 1,568,752 — 1,568,752 Equity securities with readily determinable fair values not held for trading — 23,848 — 23,848 Bank owned life insurance — 211,852 — 211,852 Derivative instruments — 12,097 — 12,097 $ — $ 1,816,549 $ — $ 1,816,549 Liabilities Derivative instruments $ — $ 11,809 $ — $ 11,809 December 31, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 820,779 $ — $ 820,779 Corporate debt securities — 352,555 — 352,555 U.S. government agency debt securities — 216,985 — 216,985 Municipal bonds — 160,212 — 160,212 Mutual funds — 23,110 — 23,110 Commercial paper — 12,410 — 12,410 — 1,586,051 — 1,586,051 Bank owned life insurance — 206,141 — 206,141 Derivative instruments — 11,491 — 11,491 $ — $ 1,803,683 $ — $ 1,803,683 Liabilities Derivative instruments $ — $ 2,388 $ — $ 2,388 Level 2 Valuation Techniques The valuation of debt securities available for sale, equity securities not held for trading, and derivative instruments is performed through a monthly pricing process using data provided by generally recognized providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data fro m various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The fair value of bank-owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies. The valuation techniques and the inputs used in our consolidated financial statements to measure the fair value of our recurring Level 2 financial instruments consider, among other factors, the following: • Similar securities actively traded which are selected from recent market transactions; • Observable market data which includes spreads in relationship to LIBOR, swap curve, and prepayment speed rates, as applicable. • The captured spread and prepayment speed is used to obtain the fair value for each related security. On a quarterly basis, the Company evaluates the reasonableness of the monthly pricing process for the valuation of debt securities available for sale and equity securities not held for trading and derivative instruments. This evaluation includes challenging a random sample of the different types of securities in the investment portfolio as of the end of the quarter selected. This challenge consists of obtaining from the Pricing Providers a document explaining the methodology applied to obtain their fair value assessments for each type of investment included in the sample selection. The Company then analyzes in detail the various inputs used in the fair value calculation, both observable and unobservable (e.g., prepayment speeds, yield curve benchmarks, spreads, delinquency rates). Management considers that the consistent application of this methodology allows the Company to understand and evaluate the categorization of its investment portfolio. The methods described above may produce a fair value calculation that may differ from the net realizable value or may not be reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of its financial instruments could result in different estimates of fair value at the reporting date. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis There were no significant assets or liabilities measured at fair value on a nonrecurring basis at December 31, 2019 and 2018. Fair Value of Financial Instruments The fair value of a financial instrument represents the price that would be received from its sale in an orderly transaction between market participants at the measurement date. The best indication of the fair value of a financial instrument is determined based upon quoted market prices. However, in many cases, there are no quoted market prices for the Company’s various financial instruments. As a result, the Company derives the fair value of the financial instruments held at the reporting period-end, in part, using present value or other valuation techniques. Those techniques are significantly affected by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates included in present value and other techniques. The use of different assumptions could significantly affect the estimated fair values of the Company’s financial instruments. Accordingly, the net realized values could be materially different from the estimates presented below. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: • Because of their nature and short-term maturities, the carrying values of the following financial instruments were used as a reasonable estimate of their fair value: cash and cash equivalents, interest earning deposits with banks, variable-rate loans with re-pricing terms shorter than twelve months, demand and savings deposits, short-term time deposits and other borrowings. • The fair value of loans held for sale, debt and equity securities, bank owned life insurance and derivative instruments, are based on quoted market prices, when available. If quoted market prices are unavailable, fair value is estimated using the pricing process described in Note 17. • The fair value of commitments and letters of credit is based on the assumption that the Company will be required to perform on all such instruments. The commitment amount approximates estimated fair value. • The fair value of fixed-rate loans, advances from the FHLB, and junior subordinated debentures are estimated using a present value technique by discounting the future expected contractual cash flows using the current rates at which similar instruments would be issued with comparable credit ratings and terms at the measurement date. • The fair value of long-term time deposits, including certificates of deposit, is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. The estimated fair value of financial instruments where fair value differs from carrying value are as follows: December 31, 2019 December 31, 2018 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,819,477 $ 2,721,291 $ 2,850,015 $ 2,739,721 Financial liabilities Time deposits 1,745,735 1,759,347 1,745,025 1,740,752 Advances from the FHLB 1,235,000 1,244,515 1,166,000 1,167,213 Junior subordinated debentures 92,246 86,738 118,110 99,450 |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Regulatory Matters The Company and the Bank are subject to various regulatory requirements administered by federal banking agencies. The following is a summary of restrictions related to dividend payments and capital adequacy. Dividend Restrictions Dividends payable by the Bank as a national bank subsidiary of the Company, are limited by law and Office of the Comptroller of the Currency (“OCC”) regulations. A dividend may not be paid if the total of all dividends declared by a bank in any calendar year is in excess of the current year’s net income combined with the retained net income of the two preceding years, unless the national bank obtains the approval of the OCC. At December 31, 2019 and 2018 , the Bank could pay dividends of $15.3 million and $82.6 million , respectively, without prior OCC approval. In addition, the Company and the Bank are subject to various general regulatory policies and requirements relating to the payment of dividends, including requirements to maintain capital above regulatory minimums and the maintenance of capital in excess of capital conservation buffers required by the Federal Reserve and OCC capital regulations. Capital Adequacy Under the Basel III capital and prompt corrective action rules, the Company and the Bank must meet specific capital guidelines that involve quantitative measures and qualitative judgments about capital components, risk weightings, and other factors. The Basel III rules became effective for the Company and the Bank on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule and were fully phased in by January 1, 2019. The Company and the Bank opted to not include the AOCI or AOCL in computing regulatory capital. As of December 31, 2019 , management believes that the Company and the Bank meet all capital adequacy requirements to which they are subject, and are well capitalized. In addition, Basel III rules required the Company and the Bank to hold a minimum capital conservation buffer of 2.50% by 2019. The Company’s capital conservation buffer at year end 2019 and 2018 was 6.8% and 5.5% , respectively, and therefore no regulatory restrictions exist under the applicable capital rules on dividends or discretionary bonuses or other payments. The Bank’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums to be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total capital ratio $ 841,305 13.15 % $ 511,638 8.00 % $ 639,547 10.00 % Tier 1 capital ratio 787,908 12.32 % 383,728 6.00 % 511,638 8.00 % Tier 1 leverage ratio 787,908 10.01 % 314,800 4.00 % 393,500 5.00 % Common equity tier 1 (CET1) 787,908 12.32 % 287,796 4.50 % 415,706 6.50 % December 31, 2018 Total capital ratio $ 883,746 13.05 % $ 541,564 8.00 % $ 676,955 10.00 % Tier 1 capital ratio 826,114 12.20 % 406,173 6.00 % 541,564 8.00 % Tier 1 leverage ratio 826,114 9.96 % 331,829 4.00 % 414,786 5.00 % Common equity tier 1 (CET1) 826,114 12.20 % 304,630 4.50 % 440,021 6.50 % The Company’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums To be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total capital ratio $ 945,310 14.78 % $ 511,760 8.00 % $ 639,699 10.00 % Tier 1 capital ratio 891,913 13.94 % 383,820 6.00 % 511,760 8.00 % Tier 1 leverage ratio 891,913 11.32 % 315,055 4.00 % 393,819 5.00 % Common equity tier 1 (CET1) 806,050 12.60 % 287,865 4.50 % 415,805 6.50 % December 31, 2018 Total capital ratio $ 916,663 13.54 % $ 541,638 8.00 % $ 677,047 10.00 % Tier 1 capital ratio 859,031 12.69 % 406,228 6.00 % 541,638 8.00 % Tier 1 leverage ratio 859,031 10.34 % 332,190 4.00 % 415,238 5.00 % Common equity tier 1 (CET1) 749,465 11.07 % 304,671 4.50 % 440,080 6.50 % The Company redeemed trust preferred securities and related junior subordinated debentures which reduced the Company’s regulatory capital by $23.5 million in 2019. The Company’s regulatory capital ratios continued to exceed regulatory minimums to be well capitalized, upon these redemptions. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table shows the calculation of basic and diluted earnings per share: (in thousands, except per share data) 2019 2018 2017 Numerator: Net income available to common stockholders $ 51,334 $ 45,833 $ 43,057 Denominator: Basic weighted averages shares outstanding 42,543 42,487 42,489 Dilutive effect of shared-based compensation awards 396 — — Diluted weighted average shares outstanding 42,939 42,487 42,489 Basic earnings per common share $ 1.21 $ 1.08 $ 1.01 Diluted earnings per common share $ 1.20 $ 1.08 $ 1.01 As of December 31, 2019 and 2018, potential dilutive instruments consisted of unvested shares of restricted stock and restricted stock units mainly related to the Company’s IPO in 2018. As of December 31, 2019 and 2018, unvested shares of restricted stock and restricted stock units totaled 530,620 and 794,529 , respectively. As of December 31, 2019 , potential dilutive instruments were included in the diluted earnings per share computation because, when the unamortized deferred compensation cost related to these shares was divided by the average market price per share at that date, fewer shares would have been purchased than restricted shares assumed issued. Therefore, at that date, such awards resulted in higher diluted weighted average shares outstanding than basic weighted average shares outstanding, and had a dilutive effect in per share earnings in 2019. As of December 31, 2018, potential dilutive instruments were excluded from the diluted earnings per share computation because when the unamortized deferred compensation cost related to these shares was divided by the average market price per share at that date, more shares would have been purchased than restricted shares assumed issued. Therefore, at that date, such awards resulted in lower diluted weighted average shares outstanding than basic weighted average shares outstanding, and would have an anti-dilutive effect in per share earnings in 2018. As of December 31, 2017 , the Company had no outstanding dilutive instruments. See Note 11 to these audited annual consolidated financial statements for more information on restricted stock and restricted stock units transactions in 2019 and 2018 . |
Condensed Unconsolidated Holdin
Condensed Unconsolidated Holding Companies’ Financial Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Unconsolidated Holding Companies’ Financial Statements | Condensed Unconsolidated Holding Companies’ Financial Statements The separate condensed unconsolidated financial statements of each of the Company and its wholly-owned subsidiary Amerant Florida Bancorp, Inc. (“Florida Bancorp”) have been prepared using the same basis of accounting that the Company used to prepare its consolidated financial statements described in Note 1, except for its investment in subsidiaries which is accounted for using the equity method. Under the equity method, investments in subsidiaries are initially recorded at cost, and they are periodically adjusted due to changes in the interest of the parent company over the net assets of the subsidiaries. The Company records in the results for the period, its participation in the profit or loss of the subsidiaries, and in AOCI/AOCL its participation in the “Other comprehensive income account” of the subsidiary. In applying the equity method the Company uses the subsidiaries consolidated financial statements at the end of the period prepared under U.S. GAAP. Condensed financial statements of Amerant Bancorp Inc. are presented below: Condensed Balance Sheets: December 31, (in thousands) 2019 2018 Assets Cash and due from banks $ 57,806 $ 1,891 Investments in subsidiaries 776,372 746,344 Other assets 1,800 1,720 $ 835,978 $ 749,955 Liabilities and Stockholders' Equity Other liabilities $ 1,277 $ 2,537 Stockholders' equity 834,701 747,418 $ 835,978 $ 749,955 Condensed Statements of Income: Years ended December 31 (in thousands) 2019 2018 2017 Income: Interest $ 40 $ 9 $ 3 Equity in earnings of subsidiary 56,755 53,939 45,008 Total income 56,795 53,948 45,011 Expenses: Employee benefits — — 350 Other expenses (1) 7,434 8,018 2,539 Total expense 7,434 8,018 2,889 Income before income tax benefit (expense) 49,361 45,930 42,122 Income tax benefit (expense) 1,973 (97 ) 935 Net income $ 51,334 $ 45,833 $ 43,057 __________________ (1) Other expenses mainly consist of professional and other service fees. Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2019 2018 2017 Cash flows from operating activities Net income $ 51,334 $ 45,833 $ 43,057 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (56,755 ) (53,939 ) (45,008 ) Stock-based compensation expense 422 — — Net change in other assets and liabilities (1,339 ) 438 1,337 Net cash used in operating activities (6,338 ) (7,668 ) (614 ) Cash flows from investing activities Cash received upon Voting Trust termination — 639 — Dividends from subsidiary 61,500 47,500 700 Net cash provided by investment activities 61,500 48,139 700 Cash flows from financing activities Dividends paid — (40,000 ) — Common stock issued - Class A 29,218 17,908 — Repurchase of common stock - Class B (28,465 ) (17,908 ) — Net cash provided by (used in) financing activities 753 (40,000 ) — Net increase in cash and cash equivalents 55,915 471 86 Years ended December 31, (in thousands) 2019 2018 2017 Cash and cash equivalents Beginning of year 1,891 1,420 1,334 End of year $ 57,806 $ 1,891 $ 1,420 The Company, the Former Parent and various individuals as Voting Trustees, entered into a Voting Trust Agreement (the “Voting Trust”) in October 2008. On July 24, 2018, the Voting Trust was terminated. The 2018 IPO rendered the Voting Trust no longer necessary. The Company is now the sole shareholder of Florida Bancorp, formerly Mercantil Florida Bancorp, Inc., and the indirect owner of approximately 100% of the Bank. Investment in subsidiaries corresponds to the Company’s direct investment in Florida Bancorp in 2019 and 2018 , and the Company’s beneficial ownership of the Voting Trust in 2017. The Company had determined that it was the sole beneficial owner of the Voting Trust and consolidated the financial statements of the Voting Trust with its own financial statements for regulatory reporting purposes. In 2017, Florida Bancorp was wholly owned by the Voting Trust. The Bank is wholly-owned by Florida Bancorp. In 2018, the Voting Trust was terminated and the Company assumed direct ownership of Florida Bancorp. Condensed financial statements of Amerant Florida Bancorp Inc., Inc. are presented below: Condensed Balance Sheets: December 31, (in thousands) 2019 2018 Assets Cash and due from banks $ 48,868 $ 32,922 Investments in subsidiaries 815,204 822,940 U.S. treasury securities 998 — Other assets 7,281 9,640 $ 872,351 $ 865,502 Liabilities and Stockholder’s Equity Junior subordinated debentures held by trust subsidiaries $ 92,246 $ 118,110 Other liabilities 3,732 1,048 Stockholder’s equity 776,373 746,344 $ 872,351 $ 865,502 Condensed Statements of Income: Years ended December 31 (in thousands) 2019 2018 2017 Income: Interest $ 152 $ 182 $ 85 Equity in earnings of subsidiary 62,979 60,609 50,982 Other income 6 — — Total income 63,137 60,791 51,067 Expenses: Interest expense 7,184 8,086 7,456 Provision for loan losses — — — Other expenses 726 414 1,310 Total expenses 7,910 8,500 8,766 Income before income tax benefit 55,227 52,291 42,301 Income tax benefit 1,528 1,661 2,726 Net income $ 56,755 $ 53,952 $ 45,027 Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2019 2018 2017 Cash flows from operating activities Net income $ 56,755 $ 53,952 $ 45,027 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (60,555 ) (60,609 ) (50,982 ) Net change in other assets and liabilities 3,108 490 (4 ) Net cash used in operating activities (692 ) (6,167 ) (5,959 ) Cash flows from investing activities Dividends received from subsidiary 105,000 47,500 6,000 Dividends paid — (47,500 ) (700 ) Purchases of available for sale securities (998 ) — — Net cash provided by investing activities 104,002 — 5,300 Cash flows from financing activities Redemption of junior subordinated debentures (25,864 ) — — Dividends paid (61,500 ) — — Net cash used in financing activities (87,364 ) — — Years ended December 31, (in thousands) 2019 2018 2017 Net increase (decrease) in cash and cash equivalents 15,946 (6,167 ) (659 ) Cash and cash equivalents Beginning of year 32,922 39,089 39,748 End of year $ 48,868 $ 32,922 $ 39,089 |
Business, Basis of Presentati_2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Estimates | Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include: i) the determination of the allowance for loan losses; (ii) the fair values of securities and the reporting unit to which goodwill has been assigned during the annual goodwill impairment test; (iii) the cash surrender value of bank owned life insurance; and (iv) the determination of whether the amount of deferred tax assets will more likely than not be realized. Management believes that these estimates are appropriate. Actual results could differ from these estimates. |
Income Recognition, Interest | Interest income is generally recognized on the accrual basis using the interest method. Non-refundable loan origination fees, net of direct costs of originating or acquiring loans, as well as loan purchase premiums and discounts, are deferred and amortized over the term of the related loans as adjustments to interest income using the level yield method. Purchase premiums and discounts on debt securities are amortized as adjustments to interest income over the estimated lives of the securities using the level yield method. |
Income Recognition, Fees | Brokerage and advisory activities include brokerage commissions and advisory fees. Brokerage commissions earned are related to the dollar amount of trading volume of customers’ transactions. Commissions and related clearing expenses are recorded on a trade-date basis as securities transactions occur. Advisory fees are derived from investment advisory fees and account administrative services. Investment advisory fees are recorded as earned on a pro rata basis over the term of the contracts, based on a percentage of the average value of assets managed during the period. These fees are assessed and collected at least quarterly. Account administrative fees are charged to customers for the maintenance of their accounts and are earned and collected on a quarterly basis. Fiduciary activities fee income is recognized as earned on a pro rata basis over the term of contracts. Card servicing fees include credit card issuance and credit and debit card interchange fees. Credit card issuance fees are generally recognized over the period in which the cardholders are entitled to use the cards. Interchange fees are recognized when earned. Trade finance servicing fees, which primarily include commissions on letters of credit, are generally recognized over the service period on a straight line basis. Deposits and services fees include service charges on deposit accounts, fees for banking services provided to customers including wire transfers, overdrafts and non-sufficient funds. Revenue from these sources is generally recognized in accordance with published deposit account agreements for customer accounts or when fixed and determinable per contractual agreements. Data processing, rental income and fees for other services to related parties are recognized as the services are provided in accordance with the terms of the service agreements. |
Earnings Per Share | Earnings per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding during each period. Unvested shares of restricted stock are excluded from the basic earnings per share computation. Diluted net income per common share reflects the number of additional common stock that would have been outstanding if the dilutive potential common stock had been issued. Dilutive potential common stock consist of unvested shares of restricted stock outstanding during the period. The dilutive effect of potential common stock is calculated by applying the treasury stock method. The latter assumes dilutive potential common stock are issued and outstanding and the proceeds from the exercise, are used to purchase common stock at the average market price during the period. The difference between the numbers of dilutive potential common stock issued and the number of shares purchased is included as incremental shares in the denominator to compute diluted net income per common stock. Dilutive potential common stock are excluded from the diluted earnings per share computation in the period in which the effect is anti-dilutive. Changes in the number of shares outstanding as a result of stock dividends, stock splits, stock exchanges or reverse stock splits are given effect retroactively for all periods presented to reflect those changes in capital structure. |
Stock-based Compensation | Stock-based Compensation The Company may grant share-based compensation and other related awards to its non-employee directors, officers, employees and certain consultants. Compensation cost is measured based on the estimated fair value of the award at the grant date and recognized in earnings as an increase in additional paid in capital on a straight -line basis over the requisite service period or vesting period. The fair value of the unvested shares of restricted stock is based on the market price of the Company’s Class A common stock at the date of the grant. |
Advertising Expenses | Advertising Expenses Advertising expenses are expensed as incurred and are included in other noninterest expenses. |
Offering Expenses | Offering Expenses Specific, non-reimbursable, incremental costs directly attributable to a proposed or actual securities offerings are deferred and charged against the gross proceeds of the offering. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company has defined as cash equivalents those highly liquid instruments purchased with an original maturity of three months or less and include cash and cash due from banks, federal funds sold and deposits with banks. The Company must comply with federal regulations requiring the maintenance of minimum reserve balances against its deposits. At December 31, 2019 and 2018 , these reserve balances amounted to approximately $1.0 thousand and $0.2 million , respectively. The Company maintains some of its cash deposited with third-party depository institutions for amounts that, at times, may be in excess of federally-insured limits mandated by the Federal Deposit Insurance Corporation, or FDIC. |
Securities | Securities The Company classifies its investments in securities as debt securities available for sale, debt securities held to maturity and equity securities with readily determinable fair value not held for trading. Securities classified as debt securities available for sale are carried at fair value with unrealized gains and losses included in accumulated other comprehensive income (“AOCI”) or accumulated other comprehensive loss (“AOCL”) in stockholders’ equity on an after-tax basis. Equity securities with readily determinable fair value not held for trading primarily consists of mutual funds carried at fair value with unrealized gains and losses included in earnings. Equity securities were classified as available for sale at December 31, 2018 in accordance with U.S. GAAP. Securities classified as debt securities held to maturity are securities the Company has both the ability and intent to hold until maturity and are carried at amortized cost. Investments in stock issued by the Federal Reserve and Federal Home Loan Bank of Atlanta (“FHLB”) are stated at their original cost, which approximates their realizable value. Realized gains and losses from sales of securities are recorded on the trade date and are determined using the specific identification method. Securities purchased or sold are recorded on the consolidated balance sheets as of the trade date. Receivables and payables to and from clearing organizations relating to outstanding transactions are included in other assets or other liabilities. At December 31, 2019 and 2018 securities receivables amounted to $2.2 million and $3.5 million , respectively. The Company considers an investment in debt securities to be impaired when a decline in fair value below the amortized cost basis is other-than-temporary. When an investment in debt securities is considered to be other-than-temporarily impaired, the cost basis of the individual debt security is written down through earnings by an amount that corresponds to the credit component of the other-than-temporary impairment. The amount of the other-than-temporary impairment that corresponds to the noncredit component of the other-than-temporary impairment is recorded in AOCI and is associated with debt securities which the Company does not intend to sell and it is more likely than not that the Company will not be required to sell the debt securities prior to the recovery of its fair value. The Company estimates the credit component of other-than-temporary impairment using a discounted cash flow model. The Company estimates the expected cash flows of the underlying collateral using third party vendor models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment rates (based on historical performance and stress test scenarios). Assumptions used can vary widely from debt security to debt security and are influenced by such factors as current debt service coverage ratio, historical prepayment rates, expected prepayment rates, and loans’ current interest rates. The Company then uses, as it deems appropriate, a third party vendor to determine how the underlying collateral cash flows will be distributed to each debt security. The present value of an impaired debt security results from estimating its future cash flows, discounted at the debt security’s effective interest rate. The Company expects to recover the remaining noncredit related unrealized losses included as a component of AOCI or AOCL. |
Loans Held for Sale | Loans Held for Sale Loans are transferred into the held for sale classification at the lower of carrying amount or fair value when they are specifically identified for sale and a formal plan exists to sell them. |
Loans | Loans Loans represent extensions of credit which the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff. These extensions of credit consist of commercial real estate loans (including land acquisition, development and construction loans), owner occupied real estate loans, single-family residential loans, commercial loans, loans to financial institutions and acceptances, and consumer loans. Amounts included in the loan portfolio are stated at the amount of unpaid principal, reduced by unamortized net deferred loan fees and origination costs and an allowance for loan losses. Unamortized net deferred loan fees and origination costs amounted to $7.7 million and $7.1 million at December 31, 2019 and 2018 , respectively. A loan is placed in nonaccrual status when management believes that collection in full of the principal amount of the loan or related interest is in doubt. Management considers that collectability is in doubt when any of the following factors are present, among others: (1) there is a reasonable probability of inability to collect principal, interest or both, on a loan for which payments are current or delinquent for less than ninety days; or (2) when a required payment of principal, interest or both, is delinquent for ninety days or longer, unless the loan is considered well secured and in the process of collection in accordance with regulatory guidelines. Once a loan to a single borrower has been placed in nonaccrual status, management reviews all loans to the same borrower to determine their appropriate accrual status. When a loan is placed in nonaccrual status, accrual of interest and amortization of net deferred loan fees or costs are discontinued, and any accrued interest receivable is reversed against interest income. Payments received on a loan in nonaccrual status are generally applied to its outstanding principal amount, unless there are no doubts on the full collection of the remaining recorded investment in the loan. When there are no doubts on the full collection of the remaining recorded investment in the loan, and there is sufficient documentation to support the collectability of that amount, payments of interest received may be recorded as interest income. A loan in nonaccrual status is returned to accrual status when none of the conditions noted when first placed in nonaccrual status are currently present, none of its principal and interest is past due, and management believes there are reasonable prospects of the loan performing in accordance with its terms. For this purpose, management generally considers there are reasonable prospects of performance in accordance with the loan terms when at least six months of principal and interest payments or principal curtailments have been received, and current financial information of the borrower demonstrates that the borrower has the capacity to continue to perform into the near future. The total outstanding principal amount of a loan is reported as past due thirty days following the date of a missed scheduled payment, based on the contractual terms of the loan. Loans which have been modified because the borrowers were experiencing financial difficulty and the Company, for economic or legal reasons related to the debtors’ financial difficulties, granted a concession to the debtors that it would not have otherwise considered, are accounted for as troubled debt restructurings (“TDR”). |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses (“ALL”) represents an estimate of the current amount of principal that is probable the Company will be unable to collect given facts and circumstances as of the evaluation date, and includes amounts arising from loans individually and collectively evaluated for impairment. These estimated amounts are recorded through a provision for loan losses charged against income. Management periodically evaluates the adequacy of the ALL to maintain it at a level believed reasonable to provide for recognized and unrecognized but inherent losses in the loan portfolio. The Company uses the same methods used to determine the ALL to assess any reserves needed for off-balance sheet credit risks such as unfunded loan commitments and contingent obligations on letters of credit. These reserves for off-balance sheet credit risks are presented in the liabilities section in the consolidated balance sheets. The Company develops and documents its methodology to determine the ALL at the portfolio segment level. The Company determines its loan portfolio segments based on the type of loans it carries and their associated risk characteristics. The Company’s loan portfolio segments are: Real Estate, Commercial, Financial Institutions, Consumer and Other. Loans in these portfolio segments have distinguishing borrower needs and differing risks associated with each product type. Real estate loans include commercial loans secured by real estate properties. Commercial loans secured by non-owner occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these real estate loans is derived from cash flows or conversion of productive assets and not from the income generated by the disposition of the property held as collateral. The main repayment source of loans granted to finance land acquisition, development and construction projects is generally derived from the disposition of the properties held as collateral, with the repayment capacity of the borrowers and any guarantors considered as alternative sources of repayment. Commercial loans correspond to facilities established for specific business purposes such as financing working capital and capital improvements projects and asset-based lending, among others. These may be loan commitments, uncommitted lines of credit to qualifying customers, short term (one year or less) or longer term credit facilities, and may be secured, unsecured or partially secured. Terms on commercial loans generally do not exceed five years, and exceptions are documented. Commercial loans secured by owner-occupied real estate properties are generally granted to finance the acquisition or operation of commercial real estate properties, with terms similar to the properties’ useful lives or the operating cycle of the businesses. The main source of repayment of these commercial real estate loans is derived from cash flows and not from the income generated by the disposition of the property held as collateral. Commercial loans to borrowers in similar businesses or products with similar characteristics or specific credit requirements are generally evaluated under a standardized commercial credit program. Commercial loans outside the scope of those programs are evaluated on a case by case basis, with consideration of any exposure under an existing commercial credit program. Loans to financial institutions and acceptances are facilities granted to fund certain transactions classified according to their risk level, and primarily include trade financing facilities through letters of credits, bankers’ acceptances, pre- and post-export financing, and working capital loans, among others. Loans in this portfolio segment are generally granted for terms not exceeding three years and on an unsecured basis under the limits of an existing credit program, primarily to large financial institutions in Latin America which the Company believes are of high quality. Prior to approval, management also considers cross-border and portfolio limits set forth in its programs and credit policies. Consumer and other loans are retail open-end and closed-end credits extended to individuals for household, family and other personal expenditures. These loans include loans to individuals secured by their personal residence, including first mortgage, home equity and home improvement loans as well as revolving credit card agreements. Because these loans generally consist of a large number of relatively small-balance, homogeneous loans for each type, their risks are generally evaluated collectively. An individual loan is considered impaired when it is probable that the Company will be unable to collect all amounts due, including both principal and interest, according to the contractual terms of the loan agreement. The Company generally considers as impaired all loans in nonaccrual status, and other loans classified in accordance with an internal risk grading system exceeding a defined threshold when it is probable that an impairment exists and the amount of the potential impairment is reasonably estimable. To determine when it is probable that an impairment exists, the Company considers the extent to which a loan may be inadequately protected by the current net worth and paying capacity of the borrower or any guarantor, or by the current value of the collateral. When a loan is considered impaired, the potential impairment is measured as the excess of the carrying value of the loan over the present value of expected future cash flows at the measurement date, or the fair value of the collateral in the case where the loan is considered collateral-dependent. If the amount of the present value of the loan’s expected future cash flows exceeds the loan’s carrying amount, the loan is still considered impaired but no impairment is recorded. The present value of an impaired loan results from estimating its future cash flows, discounted at the loan’s effective interest rate. In the case of loans considered collateral-dependent, which are generally certain real estate loans for which repayment is expected to be provided solely by the operation or sale of the underlying collateral, the potential impairment is measured based on the fair value of the asset pledged as collateral. The ALL on loans considered TDR is generally determined by discounting the restructured cash flows by the original effective interest rate on the loan. Loans that do not meet the criteria of an individually impaired loan are collectively evaluated for impairment. These loans include large groups of smaller homogeneous loan balances, such as loans in the consumer and other loan portfolio segment, and all other loans that have not been individually identified as impaired. This group of collective loans is evaluated for impairment based on measures of historical losses associated with loans within their respective portfolio segments adjusted by a variety of qualitative factors. These qualitative factors incorporate the most recent data reflecting current economic conditions, industry performance trends or obligor concentrations within each portfolio segment, among other factors. Other adjustments may be made to the allowance for loans collectively evaluated for impairment based on any other pertinent information that management considers may affect the estimation of the allowance for loan losses, including a judgmental assessment of internal and external influences on credit quality that are not fully reflected in historical loss or their risk rating data. The measures of historical losses and the related qualitative adjustments are updated quarterly and semi-annually, respectively, to incorporate the most recent loan loss data reflecting current economic conditions. Loans to borrowers that are domiciled in foreign countries, primarily loans in the Consumer and Financial Institutions portfolio segments, are also evaluated for impairment by assessing the probability of additional losses arising from the Company’s exposure to transfer risk. The Company defines transfer risk exposure as the possibility that a loan obligation cannot be serviced in the currency of payment (U.S. Dollars) because the borrower’s country of origin may not have sufficient available currency of payment or may have put restraints on its availability, such as currency controls. To determine an individual country’s transfer risk probability, the Company assigns numerical values corresponding to the perceived performance of that country in certain macroeconomic, social and political factors generally considered in the banking industry for evaluating a country’s transfer risk. A defined country’s transfer risk probability is assigned to that country based on an average of the individual scores given to those factors, calculated using an interpolation formula. The results of this evaluation are also updated semi-annually. Loans in the Real Estate, Commercial and Financial Institutions portfolio segments are charged off against the ALL when they are considered uncollectable. These loans are considered uncollectable when a loss becomes evident to management, which generally occurs when the following conditions are present, among others: (1) a loan or portions of a loan are classified as “loss” in accordance with the internal risk grading system; (2) a collection attorney has provided a written statement indicating that a loan or portions of a loan are considered uncollectible; and (3) the carrying value of a collateral-dependent loan exceeds the appraised value of the asset held as collateral. Consumer and other retail loans are charged off against the ALL at the earlier of (1) when management becomes aware that a loss has occurred, or (2) when closed-end retail loans become past due 120 days or open-end retail loans become past due 180 days from the contractual due date. For open and closed-end retail loans secured by residential real estate, any outstanding loan balance in excess of the fair value of the property, less cost to sell, is charged off no later than when the loan is 180 days past due from the contractual due date. Consumer and other retail loans may not be charged off when management can clearly document that a past due loan is well secured and in the process of collection such that collection will occur regardless of delinquency status in accordance with regulatory guidelines applicable to these types of loans. Recoveries on loans represent collections received on amounts that were previously charged off against the allowance for loan losses. Recoveries are credited to the allowance for loan losses when received, to the extent of the amount previously charged off against the ALL on the related loan. Any amounts collected in excess of this limit are first recognized as interest income, then as a reduction of collection costs, and then as other income. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales or purchases when control over the assets has been surrendered by the transferor. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the transferor, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the transferor does not maintain effective control over the transferred assets. |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment are stated at cost, less accumulated depreciation and amortization. Depreciation is computed on the straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized over the remaining term of the lease. Repairs and maintenance are charged to operations as incurred; renewals, betterments and interest during construction are capitalized. Gains or losses on sales of premises and equipment are recorded as other noninterest income or noninterest expense, respectively, at the date of sale. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of recognition and measurement of an impairment loss, when the independent and identifiable cash flow of a single asset may not be determinable, the long-lived asset may be grouped with other assets of like cash flows. Recoverability of an asset or group of assets to be held and used is measured by comparing the carrying amount with future undiscounted net cash flows expected to be generated by the asset or group of assets. If an asset is considered impaired, the impairment recognized is generally measured by the amount by which the carrying amount of the asset or group exceeds its fair value. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance policies (“BOLI”) are recorded at the cash surrender value of the insurance contracts, which represent the amount that may be realizable under the contracts, at the consolidated balance sheet dates. Changes to the cash surrender value are recorded as other noninterest income in the consolidated statements of operations. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are determined using the balance sheet method. Under this method, the resulting net deferred tax asset is determined based on the future tax consequences attributable to differences between the financial statement carrying amount of existing assets and liabilities and their respective tax basis. The effect of changes in tax laws or rates is recognized in results in the period that includes the legislation enactment date. A valuation allowance is established against the deferred tax asset to the extent that management believes that it is more likely than not that any tax benefit will not be realized. Income tax expense is recognized on the periodic change in deferred tax assets and liabilities at the current statutory rates. The results of operations of the Company and the majority of its wholly owned subsidiaries are included in the consolidated federal income tax return of the Company and its subsidiaries as members of the same consolidated tax group. Under the intercompany income tax allocation policy, the Company and the subsidiaries included in the consolidated federal tax group are allocated current and deferred taxes as if they were separate taxpayers. As a result, the subsidiaries included in the consolidated group pay their allocation of income taxes to the Company, or receive payments from the Company to the extent that tax benefits are realized. |
Goodwill | Goodwill Goodwill represents the excess of consideration paid over the fair value of the net assets of a savings bank acquired in 2006 and the Cayman Bank in 2019. Goodwill is not amortized but is reviewed for potential impairment at the reporting unit level on an annual basis in the fourth quarter, or on an interim basis if events or circumstances indicate a potential impairment. As part of its testing, the Company may elect to first assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount (“Step 0”). If the results of Step 0 indicate that more likely than not the reporting unit’s fair value is less than its carrying amount, the Company determines the fair value of the reporting unit relative to its carrying amount, including goodwill (“Step 1”). The Company may also elect to bypass Step 0 and begin with Step 1. If the fair value of the reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. However, if the carrying amount of the reporting unit exceeds its fair value, an additional procedure must be performed (“Step 2”). In Step 2, the implied fair value of the reporting unit’s goodwill is compared to the carrying amount of goodwill allocated to that reporting unit. An impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value at the measurement date. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase are classified as secured borrowings and are reflected at the amount of cash received in connection with the transaction. |
Derivative Instruments | Derivative Instruments Derivative instruments are recognized on the consolidated balance sheet as other assets or other liabilities, at their respective fair values. The accounting for changes in the fair value of a derivative instrument is dependent upon whether the derivative has been designated and qualifies as part of a hedging relationship. For derivative instruments that have not been designated and qualified as hedging relationships, the change in their fair value is recognized in current period earnings. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative instruments is initially recognized as a component of AOCI or AOCL, and subsequently reclassified into earnings in the same period during which the hedged transactions affect earnings. The ineffective portion of the gain or loss, if any, is recognized immediately in earnings. The Company has designated certain derivatives as cash flow hedges. Management periodically evaluates the effectiveness of these hedges in offsetting the fluctuations in cash flows due to changes in benchmark interest rates. The Company also enters into interest rate swaps to provide commercial loan clients the ability to swap from a variable interest rate to a fixed rate. The Company enters into a floating-rate loan with a customer with a separately issued swap agreement allowing the customer to convert floating payments of the loan into a fixed interest rate. To mitigate risk, the Company will generally enter into a matching agreement with a third party to offset the exposure on the customer agreement. These swaps are not considered to be qualified hedging relationships and therefore, all unrealized gain or loss is recorded in other non-interest income. |
Fair Value Measurement | Fair Value Measurement Financial instruments are classified based on a three-level valuation hierarchy required by U.S. GAAP. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 Inputs to the valuation methodology are quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities may include debt and equity securities that are traded in an active exchange market, as well as certain U.S. securities that are highly liquid and are actively traded in over-the-counter markets. Level 2 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 for substantially the full term of the assets and liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange traded instruments which value is determined by using a pricing model with inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. This category generally may include U.S. government and U.S. Government Sponsored Enterprise mortgage backed debt securities and corporate debt securities. Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities may include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The valuation of debt securities available for sale, equity securities not held for trading, and derivative instruments is performed through a monthly pricing process using data provided by generally recognized providers of independent data pricing services (the “Pricing Providers”). These Pricing Providers collect, use and incorporate descriptive market data fro m various sources, quotes and indicators from leading broker dealers to generate independent and objective valuations. The fair value of bank-owned life insurance policies is based on the cash surrender values of the policies as reported by the insurance companies. The valuation techniques and the inputs used in our consolidated financial statements to measure the fair value of our recurring Level 2 financial instruments consider, among other factors, the following: • Similar securities actively traded which are selected from recent market transactions; • Observable market data which includes spreads in relationship to LIBOR, swap curve, and prepayment speed rates, as applicable. • The captured spread and prepayment speed is used to obtain the fair value for each related security. On a quarterly basis, the Company evaluates the reasonableness of the monthly pricing process for the valuation of debt securities available for sale and equity securities not held for trading and derivative instruments. This evaluation includes challenging a random sample of the different types of securities in the investment portfolio as of the end of the quarter selected. This challenge consists of obtaining from the Pricing Providers a document explaining the methodology applied to obtain their fair value assessments for each type of investment included in the sample selection. The Company then analyzes in detail the various inputs used in the fair value calculation, both observable and unobservable (e.g., prepayment speeds, yield curve benchmarks, spreads, delinquency rates). Management considers that the consistent application of this methodology allows the Company to understand and evaluate the categorization of its investment portfolio. The methods described above may produce a fair value calculation that may differ from the net realizable value or may not be reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of its financial instruments could result in different estimates of fair value at the reporting date. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Emerging Growth Company Section 107 of the JOBS Act provides that, as an “emerging growth company”, or EGC, the Company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Therefore, an EGC can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. In 2019, the Federal bank regulators recognized or permitted public companies that are EGCs to delay the adoption of accounting pronouncements until those standards would otherwise apply to private companies. The Company intends to take advantage of the benefits of this extended transition period, for as long as it is available and it is consistent with bank regulatory requirements. Issued and Adopted Recognition and Measurement of Financial Instruments In January 2016, the Financial Accounting Standards Board (“FASB”) issued changes to the guidance on the recognition and measurement of financial instruments. The changes include, among others, the removal of the available-for-sale category for equity securities and updates to certain disclosure requirements. This standard is effective for annual reporting periods beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, for private companies, and for fiscal periods beginning December 15, 2017, and interim periods within those fiscal years, for public companies, with limited early adoption permitted. The Company adopted this new guidance on January 1, 2019. As a result of the adoption, all equity securities with readily available fair value were reclassified as equity securities with readily determinable fair values not held for trading on the Consolidated Statement of Financial Conditions, and are recorded at fair value with changes in fair value recorded through the income statement, resulting in a net gain of $0.7 million . Additionally, $0.9 million of unrealized losses, net of taxes, was reclassified from AOCI to retained earnings beginning on January 1, 2019. Revenue from Contracts with Customers In May 2014, the FASB issued a common revenue standard for recognizing revenue from contracts with customers. This new standard establishes principles for reporting information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amended effective date is annual reporting periods beginning after December 15, 2018, and interim periods beginning after December 15, 2019, for private companies, and for annual reporting periods beginning after December 15, 2017, and interim periods within that reporting period, for public companies. Early adoption is permitted. The Company adopted on January 1, 2019 using the modified retrospective approach. The majority of the Company’s revenues are generated from activities outside the scope of the new standard. Furthermore, the Company concluded there is no change to the timing and pattern of revenue recognition for its revenue streams within the scope of this new guidance. Therefore, the adoption had no impact on the Company’s consolidated financial position, results of operations, or cash flows. Statement of Cash Flows Classification of Certain Receipts and Payments In August 2016 , the FASB issued specific guidance for the classification of a number of cash receipts and payments, including debt prepayment or debt extinguishment costs, settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing, proceeds from the settlement of insurance claims and proceeds from the settlement of BOLI. The new guidance is effective for years beginning after December 15, 2018, and interim periods within fiscal years beginning after December 15, 2019, for private companies, and for years beginning after December 15, 2017 and interim periods within those fiscal years for public companies. Early adoption is permitted. The Company adopted this guidance in 2019 which did not have a material impact on the presentation of cash receipts and payments in its consolidated statement of cash flows for the year ending December 31, 2019. Issued and Not Yet Adopted Facilitation of the Effects of Reference Rate Reform on Financial Reporting On March 12, 2020, the FASB issued amendments to guidance applicable to contracts, hedging relationships, and other transactions affected by that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. These amendments provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The expedients and exceptions provided by the amendments do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationship. The amendments also allows entities to make a one-time election to sell, transfer, or both sell and transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020. These amendments are effective for all entities as of March 12, 2020 through December 31, 2022. The Company is in the process of evaluating the implications of these amendments to its current efforts for reference rate reform implementation. New Guidance on Leases In December 2018, the FASB issued amendments to pending new guidance issued in February 2016 for the recognition and measurement of all leases which has not yet been adopted by the Company. These amendments address certain lessor’s issues associated with: (i) sales taxes and other similar taxes collected from lessees, (ii) certain lessor costs and, (iii) recognition of variable payments for contracts with lease and non-lease components. The new guidance on leases issued in February 2016 requires lessees to recognize a right-of-use asset and a lease liability for most leases within the scope of the guidance. There were no significant changes to the guidance for lessors. These amendments, and the related pending new guidance, can be adopted using a modified retrospective transition at the beginning of the earliest comparative period presented, and provides for certain practical expedients. In November 2019, the FASB again amended the effective date of the new guidance on leases. Previously, the amendments and related new guidance on leases were effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020, for private companies. The new guidance on leases is now effective for fiscal years beginning after December 15, 2020 and interim periods within fiscal years beginning after December 15, 2021. Early adoption is still permitted. The new guidance became effective for fiscal periods beginning after December 15, 2018, and interim periods within those fiscal years, for public companies. The Company has completed the process of gathering a complete inventory of its lease contracts, migrating identified lease data onto a new system, and is in the final stages of testing and evaluation of results. Based on these results, we currently expect to recognize an asset and a corresponding lease liability for an amount to be less than 1% of the Company’s total consolidated assets at adoption. The Company plans to adopt the new guidance in its consolidated financial statements for the year ending December 31, 2021. New Guidance on Accounting for Credit Losses on Financial Instruments In June 2016, the FASB issued the new guidance on accounting for current expected credit losses on financial instruments (“CECL.”) The new guidance introduces an approach based on expected losses to estimate credit losses on various financial instruments, including loans. It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. In November 2018, the FASB issued amendments to pending new guidance on CECL to, among other things, align the implementation date for private companies’ annual financial statements with the implementation date for their interim financial statements. Prior to the issuance of these amendments, the guidance on accounting for CECL was effective for private companies for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. These amendments are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, for private companies. In November 2019, the FASB amended the effective date of the new guidance on CECL. Previously, the amendments and related new guidance on CECL was effective for fiscal years beginning after December 15, 2021, and interim periods within fiscal to those years, for private companies. The new guidance on CECL is now effective for fiscal years beginning after December 15, 2022 and interim periods within those years. Early adoption is still permitted. The new guidance on CECL is effective for fiscal years beginning after December 15, 2019, and interim periods within those years, for public companies. The Company is currently assessing the impact that these changes will have on its consolidated financial statements, when adopted. The Company currently plans to adopt the new guidance on CECL in its consolidated financial statements for the year ending December 31, 2023. Changes to the Disclosure Requirements for Fair Value Measurements In August 2018, the FASB issued amendments to the disclosure requirements for fair value measurements. The amendments modify the fair value measurements disclosures with the primary focus to improve effectiveness of disclosures in the notes to the financial statements that is most important to the users. The new guidance modifies the required disclosures related to the valuation techniques and inputs used, uncertainty in measurement, and changes in measurements applied. These amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company currently believes adoption of these amendments will not have a material impact to its consolidated financial statements when adopted for the year ending December 31, 2020 or the interim periods within that year. The Company is currently assessing the impact this new guidance may have on the Company’s footnote disclosures to its consolidated financial statements when adopted. Targeted Improvements to Accounting for Hedging Activities In August 2017, the FASB issued targeted amendments to the guidance for recognition, presentation and disclosure of hedging activities. These targeted amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments also simplify the application of hedge accounting guidance. This guidance is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years for public business entities. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. The Company is currently evaluating whether the application of this new guidance will have an impact to the Company’s consolidated financial statements. The Company currently believes adoption of these amendments will not have a material impact to its consolidated financial statements when adopted for the year ending December 31, 2020. |
Subsequent Events | Subsequent Events The effects of significant subsequent events, if any, have been recognized or disclosed in these consolidated financial statements. |
Fair Value of Financial Instruments | The fair value of a financial instrument represents the price that would be received from its sale in an orderly transaction between market participants at the measurement date. The best indication of the fair value of a financial instrument is determined based upon quoted market prices. However, in many cases, there are no quoted market prices for the Company’s various financial instruments. As a result, the Company derives the fair value of the financial instruments held at the reporting period-end, in part, using present value or other valuation techniques. Those techniques are significantly affected by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates included in present value and other techniques. The use of different assumptions could significantly affect the estimated fair values of the Company’s financial instruments. Accordingly, the net realized values could be materially different from the estimates presented below. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: • Because of their nature and short-term maturities, the carrying values of the following financial instruments were used as a reasonable estimate of their fair value: cash and cash equivalents, interest earning deposits with banks, variable-rate loans with re-pricing terms shorter than twelve months, demand and savings deposits, short-term time deposits and other borrowings. • The fair value of loans held for sale, debt and equity securities, bank owned life insurance and derivative instruments, are based on quoted market prices, when available. If quoted market prices are unavailable, fair value is estimated using the pricing process described in Note 17. • The fair value of commitments and letters of credit is based on the assumption that the Company will be required to perform on all such instruments. The commitment amount approximates estimated fair value. • The fair value of fixed-rate loans, advances from the FHLB, and junior subordinated debentures are estimated using a present value technique by discounting the future expected contractual cash flows using the current rates at which similar instruments would be issued with comparable credit ratings and terms at the measurement date. • The fair value of long-term time deposits, including certificates of deposit, is determined using a present value technique by discounting the future expected contractual cash flows using current rates at which similar instruments would be issued at the measurement date. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of available for sale securities from amortized cost to fair value | Amortized cost and approximate fair values of debt securities available for sale are summarized as follows: December 31, 2019 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 927,205 $ 9,702 $ (3,795 ) $ 933,112 Corporate debt securities 247,836 5,002 (2 ) 252,836 U.S. government agency debt securities 230,384 895 (2,882 ) 228,397 U.S. treasury securities 106,112 1 (1,877 ) 104,236 Municipal bonds 47,652 2,519 — 50,171 $ 1,559,189 $ 18,119 $ (8,556 ) $ 1,568,752 December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses U.S. government sponsored enterprise debt securities $ 840,760 $ 2,197 $ (22,178 ) $ 820,779 Corporate debt securities 357,602 139 (5,186 ) 352,555 U.S. government agency debt securities 221,682 187 (4,884 ) 216,985 Municipal bonds 162,438 390 (2,616 ) 160,212 Mutual funds 24,266 — (1,156 ) 23,110 Commercial paper 12,448 — (38 ) 12,410 $ 1,619,196 $ 2,913 $ (36,058 ) $ 1,586,051 |
Schedule of available for sale securities with unrealized losses | The Company’s investment in debt securities available for sale with unrealized losses that are deemed temporary, aggregated by length of time that individual securities have been in a continuous unrealized loss position, are summarized below: December 31, 2019 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 239,446 $ (1,740 ) $ 180,274 $ (2,055 ) $ 419,720 $ (3,795 ) Corporate debt securities 8,359 (1 ) 300 (1 ) 8,659 (2 ) U.S. government agency debt securities 41,300 (251 ) 117,040 (2,631 ) 158,340 (2,882 ) U.S. treasury securities 97,471 (1,877 ) — — 97,471 (1,877 ) $ 386,576 $ (3,869 ) $ 297,614 $ (4,687 ) $ 684,190 $ (8,556 ) December 31, 2018 Less Than 12 Months 12 Months or More Total (in thousands) Estimated Unrealized Estimated Unrealized Estimated Unrealized U.S. government sponsored enterprise debt securities $ 90,980 $ (2,995 ) $ 608,486 $ (19,183 ) $ 699,466 $ (22,178 ) Corporate debt securities 243,667 (3,800 ) 75,762 (1,386 ) 319,429 (5,186 ) U.S. government agency debt securities 63,580 (939 ) 133,886 (3,945 ) 197,466 (4,884 ) Municipal bonds 1,449 (6 ) 94,331 (2,610 ) 95,780 (2,616 ) Mutual funds — — 22,865 (1,156 ) 22,865 (1,156 ) Commercial paper 12,410 (38 ) — — 12,410 (38 ) $ 412,086 $ (7,778 ) $ 935,330 $ (28,280 ) $ 1,347,416 $ (36,058 ) |
Schedule of held to maturity securities | Amortized cost and approximate fair values of debt securities held to maturity, are summarized as follows: December 31, 2019 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 71,169 $ 809 $ (135 ) $ 71,843 U.S. government agency debt securities 2,707 45 — 2,752 $ 73,876 $ 854 $ (135 ) $ 74,595 December 31, 2018 Amortized Gross Unrealized Estimated (in thousands) Gains Losses Securities Held to Maturity - U.S. government sponsored enterprise debt securities $ 82,326 $ — $ (3,889 ) $ 78,437 U.S. government agency debt securities 2,862 — (49 ) 2,813 $ 85,188 $ — $ (3,938 ) $ 81,250 |
Schedule of contractual maturities of securities | Contractual maturities of debt securities at December 31, 2019 are as follows: Available for Sale Held to Maturity (in thousands) Amortized Estimated Amortized Estimated Within 1 year $ 47,366 $ 47,464 $ — $ — After 1 year through 5 years 177,696 179,863 — — After 5 years through 10 years 233,420 239,294 — — After 10 years 1,100,707 1,102,131 73,876 74,595 $ 1,559,189 $ 1,568,752 $ 73,876 $ 74,595 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of loan portfolio by classes and countries | The following table summarizes international loans by country, net of loans fully collateralized with cash of approximately $15.2 million and $19.5 million at December 31, 2019 and 2018 , respectively. December 31, 2019 December 31, 2018 (in thousands) Venezuela Others (1) Total Venezuela Others (1) Total Real estate loans Single-family residential (2) $ 103,979 $ 7,692 $ 111,671 $ 128,971 $ 6,467 $ 135,438 Commercial loans — 43,850 43,850 — 73,636 73,636 Loans to financial institutions and acceptances — 5 5 — 49,000 49,000 Consumer loans and overdrafts (3)(4) 8,318 7,593 15,911 28,191 13,494 41,685 $ 112,297 $ 59,140 $ 171,437 $ 157,162 $ 142,597 $ 299,759 __________________ (1) Loans to borrowers in 14 other countries which do not individually exceed 1% of total assets (17 countries in 2018). (2) Corresponds to mortgage loans secured by single-family residential properties located in the U.S. (3) Mostly comprised of credit card extensions of credit to customers with deposits with the Bank. The Company is phasing out its legacy credit card products to further strengthen its credit quality. In April 2019, the Company stopped charge privileges to its riskiest cardholders and required repayment of their balances by November 2019. Other cardholders’ charging privileges ended in October 2019 and they were required to repay all balances by first quarter of 2020. The Company is closely monitoring the performance of the outstanding credit card balances until complete repayment. (4) Overdrafts to customers outside the United States were de minimis. The loan portfolio consists of the following loan classes: (in thousands) December 31, December 31, Real estate loans Commercial real estate Nonowner occupied $ 1,891,802 $ 1,809,356 Multi-family residential 801,626 909,439 Land development and construction loans 278,688 326,644 2,972,116 3,045,439 Single-family residential 539,102 533,481 Owner occupied 894,060 777,022 4,405,278 4,355,942 Commercial loans 1,234,043 1,380,428 Loans to financial institutions and acceptances 16,552 68,965 Consumer loans and overdrafts 88,466 114,840 $ 5,744,339 $ 5,920,175 |
Schedule of loan portfolio delinquencies | The age analysis of the loan portfolio by class, including nonaccrual loans, as of December 31, 2019 and 2018 are summarized in the following tables: December 31, 2019 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Nonowner occupied $ 1,891,802 $ 1,891,801 $ 1 $ — $ — $ 1 $ 1,936 $ — Multi-family residential 801,626 801,626 — — — — — — Land development and construction loans 278,688 278,688 — — — — — — 2,972,116 2,972,115 1 — — 1 1,936 — Single-family residential 539,102 530,399 4,585 1,248 2,870 8,703 7,291 — Owner occupied 894,060 888,158 1,360 1,724 2,818 5,902 14,130 — 4,405,278 4,390,672 5,946 2,972 5,688 14,606 23,357 — Commercial loans 1,234,043 1,226,320 4,418 608 2,697 7,723 9,149 — Loans to financial institutions and acceptances 16,552 16,552 — — — — — — Consumer loans and overdrafts 88,466 88,030 215 176 45 436 416 5 $ 5,744,339 $ 5,721,574 $ 10,579 $ 3,756 $ 8,430 $ 22,765 $ 32,922 $ 5 December 31, 2018 Total Loans, Past Due Total Loans in Total Loans (in thousands) Current 30-59 60-89 Greater than Total Past Real estate loans Commercial real estate Nonowner occupied $ 1,809,356 $ 1,809,356 $ — $ — $ — $ — $ — $ — Multi-family residential 909,439 909,439 — — — — — — Land development and construction loans 326,644 326,644 — — — — — — 3,045,439 3,045,439 — — — — — — Single-family residential 533,481 519,730 7,910 2,336 3,505 13,751 6,689 419 Owner occupied 777,022 773,876 2,800 160 186 3,146 4,983 — 4,355,942 4,339,045 10,710 2,496 3,691 16,897 11,672 419 Commercial loans 1,380,428 1,378,022 704 1,062 640 2,406 4,772 — Loans to financial institutions and acceptances 68,965 68,965 — — — — — — Consumer loans and overdrafts 114,840 113,227 474 243 896 1,613 35 884 $ 5,920,175 $ 5,899,259 $ 11,888 $ 3,801 $ 5,227 $ 20,916 $ 16,479 $ 1,303 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of allowance for loan losses | The analyses by loan segment of the changes in the ALL for the three years ended December 31, 2019 and its allocation by impairment methodology and the related investment in loans, net as of December 31, 2019 , 2018 and 2017 are summarized in the following tables: December 31, 2019 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Provision for (reversal of) loan losses 2,072 (6,165 ) (403 ) 1,346 (3,150 ) Loans charged-off Domestic — (3,020 ) — (724 ) (3,744 ) International — (62 ) — (5,033 ) (5,095 ) Recoveries 190 1,711 — 549 2,450 Balances at end of the year $ 25,040 $ 22,482 $ 42 $ 4,659 $ 52,223 Allowance for loan losses by impairment methodology Individually evaluated $ 1,161 $ 1,789 $ — $ 1,324 $ 4,274 Collectively evaluated 23,879 20,693 42 3,335 47,949 $ 25,040 $ 22,482 $ 42 $ 4,659 $ 52,223 Investment in loans, net of unearned income Individually evaluated $ 1,936 $ 22,790 $ — $ 5,585 $ 30,311 Collectively evaluated 2,968,589 2,206,566 16,552 522,321 5,714,028 $ 2,970,525 $ 2,229,356 $ 16,552 $ 527,906 $ 5,744,339 December 31, 2018 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 (Reversal of) provision for loan losses (2,885 ) 1,099 (3,917 ) 6,078 375 Loans charged-off Domestic (5,839 ) (3,662 ) — (194 ) (9,695 ) International — (1,473 ) — (1,392 ) (2,865 ) Recoveries 212 1,367 — 368 1,947 Balances at end of the year $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 1,282 $ — $ 1,091 $ 2,373 Collectively evaluated 22,778 28,736 445 7,430 59,389 $ 22,778 $ 30,018 $ 445 $ 8,521 $ 61,762 Investment in loans, net of unearned income Individually evaluated $ 717 $ 9,652 $ — $ 3,089 $ 13,458 Collectively evaluated 3,037,604 2,254,607 69,003 545,503 5,906,717 $ 3,038,321 $ 2,264,259 $ 69,003 $ 548,592 $ 5,920,175 December 31, 2017 (in thousands) Real Estate Commercial Financial Consumer Total Balances at beginning of the year $ 30,713 $ 40,897 $ 5,304 $ 4,837 $ 81,751 Reversal of provision for loan losses (221 ) (1,027 ) (942 ) (1,300 ) (3,490 ) Loans charged-off Domestic (97 ) (1,979 ) — (424 ) (2,500 ) International — (6,166 ) — (757 ) (6,923 ) Recoveries 895 962 — 1,305 3,162 Balances at end of the year $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Allowance for loan losses by impairment methodology Individually evaluated $ — $ 2,866 $ — $ — $ 2,866 Collectively evaluated 31,290 29,821 4,362 3,661 69,134 $ 31,290 $ 32,687 $ 4,362 $ 3,661 $ 72,000 Investment in loans, net of unearned income Individually evaluated $ 1,318 $ 20,907 $ — $ 374 $ 22,599 Collectively evaluated 2,912,786 2,073,351 497,626 559,863 6,043,626 $ 2,914,104 $ 2,094,258 $ 497,626 $ 560,237 $ 6,066,225 The following is a summary of the recorded investment amount of loan sales by portfolio segment in the three years ended December 31, 2019 , 2018 and 2017 : (in thousands) Real Estate Commercial Financial Consumer Total 2019 $ 23,475 $ 236,373 $ — $ 7,917 $ 267,765 2018 $ 20,248 $ 138,244 $ — $ 14,981 $ 173,473 2017 $ 15,040 $ 35,260 $ 40,177 $ — $ 90,477 |
Schedule of impaired loans | The following is a summary of impaired loans as of December 31, 2019 and 2018 : December 31, 2019 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ 1,936 $ — $ 1,936 $ 1,459 $ 1,936 $ 1,161 $ 37 Multi-family residential — — — 342 — — 10 Land development and construction — — — — — — — 1,936 — 1,936 1,801 1,936 1,161 47 Single-family residential 4,739 729 5,468 5,564 5,598 946 21 Owner-occupied 6,169 7,906 14,075 9,548 13,974 501 48 12,844 8,635 21,479 16,913 21,508 2,608 116 Commercial loans 8,415 13 8,428 8,552 8,476 1,288 58 Consumer loans and overdrafts 395 9 404 153 402 378 — $ 21,654 $ 8,657 $ 30,311 $ 25,618 $ 30,386 $ 4,274 $ 174 December 31, 2018 Recorded Investment (in thousands) With a Valuation Allowance Without a Valuation Allowance Total Year Average Total Unpaid Principal Balance Valuation Allowance Interest Income Recognized Real estate loans Commercial real estate Nonowner occupied $ — $ — $ — $ 7,935 $ — $ — $ — Multi-family residential — 717 717 724 722 — 32 Land development and construction — — — — — — — — 717 717 8,659 722 — 32 Single-family residential 3,086 306 3,392 4,046 3,427 1,235 108 Owner occupied 169 4,427 4,596 5,524 4,601 75 14 3,255 5,450 8,705 18,229 8,750 1,310 154 Commercial loans 4,585 148 4,733 7,464 6,009 1,059 952 Consumer loans and overdrafts 9 11 20 15 17 4 — $ 7,849 $ 5,609 $ 13,458 $ 25,708 $ 14,776 $ 2,373 $ 1,106 |
Schedule of Troubled Debt Restructurings | The following table shows information about loans that were modified and met the definition of TDR during the three years ended December 31, 2019: 2019 2018 2017 (in thousands, except number of contracts) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Commercial real estate “CRE” Nonowner occupied (1) 1 $ 1,936 1 $ — — $ — Single-family residential 1 172 — — 2 — Owner occupied 2 4,797 1 1,831 1 — 4 6,905 2 1,831 3 — Commercial loans 1 2,669 2 622 1 1,473 Consumer loans and overdrafts 1 357 1 10 — — Total (2) (3) (4) 6 $ 9,931 5 $ 2,463 4 $ 1,473 _________________ (1) In the fourth quarter of 2018, the Company sold one non-performing loan in the Houston area with a carrying value of $10.2 million , and charged off $5.8 million against the allowance for loan losses. This loan had been modified and met the definition of a TDR during the second quarter of 2018. (2) There were no charge-offs against the allowance for loan losses as a result of these TDRs during 2019. During 2018 and 2017 , the Company charged off a total of approximately $6.9 million and $6.0 million , respectively, against the allowance for loan losses as a result of these TDR loans. (3) At December 31, 2018 and 2017 , all TDR loans were primarily real estate and commercial loans under modified terms, including interest payment deferments and others, that did not substantially impact the allowance for loan losses since the recorded investment in these impaired loans corresponded to their realizable value, which approximated their fair values, or higher, prior to their designation as TDR. (4) Includes a multiple loan relationship with a South Florida customer consisting of CRE, owner occupied and commercial loans totaling $9.8 million as of December 31, 2019 . This TDR consisted of extending repayment terms and adjusting future periodic payments which resulted in no additional reserves. Four residential loans, totaling $2.2 million , which are included in this loan relationship, were not modified. The Company believes the specific reserves associated with these loans, which total $2.4 million at December 31, 2019 , are adequate to cover probable losses given current facts and circumstances. In the fourth quarter of 2019, this $9.8 million TDR loan relationship did not perform in accordance with the restructured terms. The Company will continue to closely monitor the performance of these loans under their modified terms. TDR loans that subsequently defaulted within the 12 months of restructuring during the three years ended December 31, 2019 were as follows: 2019 2018 2017 (in thousands, except number of contracts) Number of Contracts Recorded Investment Number of Contracts Recorded Investment Number of Contracts Recorded Investment Real estate loans Commercial real estate Nonowner occupied 1 $ 1,936 — $ — — $ — Single-family residential — — — — — $ — Owner-occupied 2 4,797 1 1,831 1 618 3 6,733 1 1,831 1 618 Commercial loans 1 2,669 1 589 — — Consumer loans and overdrafts 1 357 1 10 — — 5 $ 9,759 3 $ 2,430 1 $ 618 |
Schedule of credit quality indicators | Loans by credit quality indicators as of December 31, 2019 and 2018 are summarized in the following tables: December 31, 2019 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,879,780 $ 9,324 $ 762 $ 1,936 $ — $ 1,891,802 Multi-family residential 801,626 — — — — 801,626 Land development and construction loans 268,733 9,955 — — — 278,688 2,950,139 19,279 762 1,936 — 2,972,116 Single-family residential 531,811 — 7,291 — — 539,102 Owner occupied 871,682 8,138 14,240 — — 894,060 4,353,632 27,417 22,293 1,936 — 4,405,278 Commercial loans 1,217,399 5,569 8,406 2,669 — 1,234,043 Loans to financial institutions and acceptances 16,552 — — — — 16,552 Consumer loans and overdrafts 88,042 — 67 357 — 88,466 $ 5,675,625 $ 32,986 $ 30,766 $ 4,962 $ — $ 5,744,339 December 31, 2018 Credit Risk Rating Nonclassified Classified (in thousands) Pass Special Mention Substandard Doubtful Loss Total Real estate loans Commercial real estate Nonowner occupied $ 1,802,573 $ 6,561 $ 222 $ — $ — $ 1,809,356 Multi-family residential 909,439 — — — — 909,439 Land development and construction loans 326,644 — — — — 326,644 3,038,656 6,561 222 — — 3,045,439 Single-family residential 526,373 — 7,108 — — 533,481 Owner occupied 758,552 9,019 9,451 — — 777,022 4,323,581 15,580 16,781 — — 4,355,942 Commercial loans 1,369,434 3,943 6,462 589 — 1,380,428 Loans to financial institutions and acceptances 68,965 — — — — 68,965 Consumer loans and overdrafts 108,778 — 6,062 — — 114,840 $ 5,870,758 $ 19,523 $ 29,305 $ 589 $ — $ 5,920,175 The following is a summary of the master risk categories and their associated loan risk ratings, as well as a description of the general characteristics of the master risk category: Loan Risk Rating Master risk category Nonclassified 4 to 10 Classified 1 to 3 Substandard 3 Doubtful 2 Loss 1 |
Schedule of financing receivables, non accrual status | Single-family residential loans: December 31, (in thousands, except percentages) 2019 2018 2017 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 526,497 97.67 % $ 518,106 97.12 % $ 499,307 97.38 % 30-59 Days Past Due 4,332 0.80 % 7,634 1.43 % 6,025 1.17 % 60-89 Days Past Due 982 0.18 % 633 0.12 % 2,193 0.43 % 90+ Days Past Due — — % 419 0.08 % 225 0.04 % 5,314 0.98 % 8,686 1.63 % 8,443 1.64 % Total Accrual Loans $ 531,811 98.65 % $ 526,792 98.75 % $ 507,750 99.02 % Non-Accrual Loans Current $ 3,902 0.72 % $ 1,624 0.30 % $ 2,086 0.41 % 30-59 Days Past Due 253 0.05 % 276 0.05 % 584 0.11 % 60-89 Days Past Due 266 0.05 % 1,703 0.32 % 557 0.11 % 90+ Days Past Due 2,870 0.53 % 3,086 0.58 % 1,777 0.35 % 3,389 0.63 % 5,065 0.95 % 2,918 0.57 % Total Non-Accrual Loans 7,291 1.35 % 6,689 1.25 % 5,004 0.98 % $ 539,102 100.00 % $ 533,481 100.00 % $ 512,754 100.00 % Consumer loans and overdrafts: December 31, (in thousands, except percentages) 2019 2018 2017 Loan Balance % Loan Balance % Loan Balance % Accrual Loans Current $ 87,656 99.08 % $ 113,211 98.58 % $ 130,830 99.91 % 30-59 Days Past Due 215 0.24 % 466 0.41 % 48 0.04 % 60-89 Days Past Due 174 0.20 % 243 0.21 % 18 0.01 % 90+ Days Past Due 5 0.01 % 885 0.77 % — — % 394 0.45 % 1,594 1.39 % 66 0.05 % Total Accrual Loans $ 88,050 99.53 % $ 114,805 99.97 % $ 130,896 99.96 % Non-Accrual Loans Current $ 374 0.42 % $ 16 0.01 % $ 16 0.01 % 30-59 Days Past Due — — % 8 0.01 % 9 0.01 % 60-89 Days Past Due 2 — % — — % 11 0.01 % 90+ Days Past Due 40 0.05 % 11 0.01 % 19 0.01 % 42 0.05 % 19 0.02 % 39 0.03 % Total Non-Accrual Loans 416 0.47 % 35 0.03 % 55 0.04 % $ 88,466 100.00 % $ 114,840 100.00 % $ 130,951 100.00 % |
Premises and Equipment, Net Pre
Premises and Equipment, Net Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment, net include the following: December 31, Estimated (in thousands) 2019 2018 (in years) Land $ 19,713 $ 18,307 NA Buildings and improvements 99,457 100,152 10–30 Furniture and equipment 23,718 21,579 3–10 Computer equipment and software 25,897 31,225 3 Leasehold improvements 22,740 19,301 5–10 Work in progress 9,523 5,170 NA $ 201,048 $ 195,734 Less: Accumulated depreciation and amortization (72,224 ) (72,231 ) $ 128,824 $ 123,503 |
Time Deposits (Tables)
Time Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Time Deposit Maturities | At December 31, 2019 and 2018 the maturity of time deposits were as follows: (in thousands, except percentages) 2019 2018 Year of Maturity Amount % Amount % 2019 $ — — % $ 1,438,565 60.3 % 2020 1,568,699 64.8 % 361,255 15.1 % 2021 294,463 12.2 % 168,850 7.1 % 2022 233,227 9.6 % 135,265 5.7 % 2023 253,382 10.5 % 261,642 11.0 % 2024 and thereafter 70,568 2.9 % 21,554 0.8 % Total $ 2,420,339 100.0 % $ 2,387,131 100.0 % |
Advances From the Federal Hom_2
Advances From the Federal Home Loan Bank and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of outstanding advances from the FHLB | At December 31, 2019 and 2018 , the Company had outstanding advances from the FHLB and other borrowings as follows: Outstanding Balance at December 31, Year of Maturity Interest Interest 2019 2018 (in thousands) 2019 1.80% to 3.86% Fixed $ — $ 160,000 2019 2.40% to 2.82% Variable — 280,000 2020 1.50% to 2.74% Fixed 135,000 306,000 2020 1.84% to 2.03% Variable 150,000 — 2021 1.75% to 3.08% Fixed 210,000 210,000 2022 2.48% to 2.80% Fixed 120,000 120,000 2023 and after (1) 0.71% to 3.23% Fixed 620,000 90,000 $ 1,235,000 $ 1,166,000 __________________ (1) As of December 31, 2019, includes $530 million (interest rate - from 0.71% to 0.97% ) in advances from the FHLB that are callable prior to maturity. There were no callable advances from the FHLB as of December 31, 2018. |
Junior Subordinated Debenture_2
Junior Subordinated Debentures Held by Trust Subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of the Outstanding Trust Preferred Securities | The following table provides information on the outstanding Trust Preferred Securities issued by, and the junior subordinated debentures issued to, each of the Trust Subsidiaries as of December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 (in thousands) Amount of Principal Amount of Principal Year of Annual Rate of Trust Year of Commercebank Capital Trust I $ 26,830 $ 28,068 $ 26,830 $ 28,068 1998 8.90% 2028 Commercebank Statutory Trust II — — 15,000 15,464 2000 10.60% 2030 Commercebank Capital Trust III — — 10,000 10,400 2001 10.18% 2031 Commercebank Capital Trust VI 9,250 9,537 9,250 9,537 2002 3-M LIBOR + 3.35% 2033 Commercebank Capital Trust VII 8,000 8,248 8,000 8,248 2003 3-M LIBOR + 3.25% 2033 Commercebank Capital Trust VIII 5,000 5,155 5,000 5,155 2004 3-M LIBOR + 2.85% 2034 Commercebank Capital Trust IX 25,000 25,774 25,000 25,774 2006 3-M LIBOR + 1.75% 2038 Commercebank Capital Trust X 15,000 15,464 15,000 15,464 2006 3-M LIBOR + 1.78% 2036 $ 89,080 $ 92,246 $ 114,080 $ 118,110 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | At December 31, 2019 and 2018 the fair value of the Company’s derivative instruments was as follows: December 31, 2019 December 31, 2018 (in thousands) Other Assets Other Liabilities Other Assets Other Liabilities Interest rate swaps designated as cash flow hedges $ 301 $ — $ 9,386 $ 283 Interest rate swaps not designated as hedging instruments: Customers 11,236 527 1,420 — Third party broker 527 11,236 — 1,420 11,763 11,763 1,420 1,420 Interest rate caps not designated as hedging instruments: Customers — 46 — 685 Third party broker 33 — 685 — 33 46 685 685 $ 12,097 $ 11,809 $ 11,491 $ 2,388 |
Incentive Compensation and Be_2
Incentive Compensation and Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Restricted Stock | The following table shows the activity of RSUs in 2019: Stock-settled RSUs Cash-settled RSUs Total RSUs Number of RSUs Weighted-average grant date fair value Number of RSUs Weighted-average grant date fair value Number of RSUs Weighted-average grant date fair value Nonvested, beginning of year 57,690 $ 13.45 28,845 $ 13.45 86,535 $ 13.45 Granted 3,439 18.17 — — 3,439 18.17 Vested (16,025 ) 13.45 (9,615 ) 13.45 (25,640 ) 13.45 Forfeited (9,615 ) 13.45 — — (9,615 ) 13.45 Non-vested, end of year 35,489 $ 13.91 19,230 $ 13.45 $ 54,719 $ 13.75 The following table shows the activity of restricted stock awards in 2019: Number of restricted shares Weighted-average grant date fair value Non-vested shares, beginning of year 736,839 $ 13.45 Granted 3,882 17.42 Vested (245,590 ) 13.45 Forfeited — — Non-vested shares, end of year 495,131 $ 13.48 |
Income Taxes Income Tax (Tables
Income Taxes Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of t he income tax expense for the years ended December 31, 2019 , 2018 and 2017 are as follows: (in thousands) 2019 2018 2017 Current tax expense: Federal $ 9,748 $ 7,298 $ 19,194 State 2,279 1,964 1,763 Impact of lower rate under the 2017 Tax Act - Remeasurement of net deferred tax assets, other than balances corresponding to items in AOCI — — 8,470 Remeasurement of net deferred tax assets corresponding to items in AOCI — — 1,094 Deferred tax expense 670 2,471 3,471 $ 12,697 $ 11,733 $ 33,992 |
Schedule of Effective Income Tax Rate Reconciliation | The following table shows a reconciliation of the income tax expense at the statutory federal income tax rate to the Company’s effective income tax rate for the three years ended December 31, 2019 : 2019 2018 2017 (in thousands, except percentages) Amount % Amount % Amount % Tax expense calculated at the statutory federal income tax rate $ 13,447 21.00 % $ 12,089 21.00 % $ 26,967 35.00 % Increases (decreases) resulting from: Impact of the 2017 Tax Act - Remeasurement of net deferred tax assets — — % — — % 9,564 12.41 % Non-taxable interest income (1,132 ) (1.77 )% (1,507 ) (2.62 )% (1,643 ) (2.13 )% Non-taxable BOLI income (1,199 ) (1.87 )% (1,223 ) (2.12 )% (1,910 ) (2.48 )% Stock-based compensation (454 ) (0.71 )% — — % — — % Non-deductible Spin-off costs — — % 1,711 2.97 % — — % Disallowed interest expense allocable to tax exempt securities and other expenses 624 0.97 % 627 1.09 % 577 0.75 % State and city income taxes, net of federal income tax benefit 1,800 2.81 % (131 ) (0.23 )% 1,146 1.49 % Other, net (389 ) (0.60 )% 167 0.29 % (709 ) (0.92 )% $ 12,697 19.83 % $ 11,733 20.38 % $ 33,992 44.12 % |
Schedule of Deferred Tax Assets | The composition of the net deferred tax asset is as follows: December 31, (in thousands) 2019 2018 Tax effect of temporary differences Provision for loan losses $ 11,487 $ 13,581 Net unrealized (gains) losses in other comprehensive income (4,282 ) 5,878 Deferred compensation expense 3,457 3,489 Stock-based compensation expense 769 — Interest income on nonaccrual loans 660 341 Goodwill amortization (4,293 ) (3,979 ) Depreciation and amortization (3,881 ) (3,934 ) Other 1,563 934 Net deferred tax assets $ 5,480 $ 16,310 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (“AOCI/AOCL”) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components of AOCL | The components of AOCI/AOCL are summarized as follows using applicable blended average federal and state tax rates for each period: December 31, 2019 December 31, 2018 (in thousands) Before Tax Tax Net of Tax Before Tax Tax Net of Tax Unrealized gains (losses) on available for sale securities $ 9,563 $ (2,338 ) $ 7,225 $ (33,145 ) $ 8,104 $ (25,041 ) Unrealized gains on interest rate swaps designated as cash flow hedges 7,953 (1,944 ) $ 6,009 9,103 (2,226 ) 6,877 Total AOCI (AOCL) $ 17,516 $ (4,282 ) $ 13,234 $ (24,042 ) $ 5,878 $ (18,164 ) |
Components of Other Comprehensive Loss | The components of other comprehensive income (loss) for the three-year period ended December 31, 2019 is summarized as follows: December 31, 2019 (in thousands) Before Tax Tax Net of Tax Unrealized gains on available for sale securities: Change in fair value arising during the period $ 43,427 $ (10,617 ) $ 32,810 Cumulative effect of change in accounting principle 1,155 (283 ) 872 Reclassification adjustment for net gains included in net income (1,874 ) 458 (1,416 ) 42,708 (10,442 ) 32,266 Unrealized gains on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 379 (92 ) 287 Reclassification adjustment for net interest income included in net income (1,529 ) 374 (1,155 ) (1,150 ) 282 (868 ) Total other comprehensive income $ 41,558 $ (10,160 ) $ 31,398 December 31, 2018 (in thousands) Before Tax Tax Net of Tax Unrealized losses on available for sale securities: Change in fair value arising during the period $ (20,730 ) $ 5,465 $ (15,265 ) Reclassification adjustment for net losses included in net income 999 (244 ) 755 (19,731 ) 5,221 (14,510 ) Unrealized gains on interest rate swaps designated as cash flow hedges: Change in fair value arising during the period 3,744 (1,081 ) 2,663 Reclassification adjustment for net interest income included in net income (243 ) 59 (184 ) 3,501 (1,022 ) 2,479 Total other comprehensive loss $ (16,230 ) $ 4,199 $ (12,031 ) December 31, 2017 (in thousands) Before Tax Tax Net of Tax Unrealized gains on available for sale securities arising during the period $ 6,875 $ (3,298 ) $ 3,577 Reclassification adjustment for net losses included in net income 1,601 (768 ) 833 Unrealized gains on interest rate swaps designated as cash flow hedges 293 (141 ) 152 Total other comprehensive income $ 8,769 $ (4,207 ) $ 4,562 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Related Party Amounts Included in the Consolidated Balance Sheets and the Consolidated Statements of Operations | In addition to loans to related parties and associated interest income, which are described below, consolidated balance sheets and the consolidated statements of operations include the following amounts with related parties: December 31, (in thousands) 2019 2018 Liabilities Demand deposits, noninterest bearing $ 4,007 $ 9,447 Demand deposits, interest bearing 3,457 3,721 Money market 1,090 308 Time deposits and accounts payable 5,246 1,350 Total due to related parties $ 13,800 $ 14,826 Years Ended December 31, (in thousands) 2019 2018 2017 Income Data processing and other services $ 955 $ 2,168 $ 1,532 Rental income from operating lease — 248 1,971 Service charges — 95 90 $ 955 $ 2,511 $ 3,593 Expenses Interest expense $ 34 $ 126 $ 85 Fees and other expenses 501 623 302 535 749 387 $ 420 $ 1,762 $ 3,206 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Stockholders Equity | On February 6, 2018, the Company filed amended and restated articles of incorporation with the Secretary of State of Florida. Pursuant to the amended and restated articles, the total number of authorized Company shares of all classes is 550,000,000 , consisting of the following classes: Class Number of Par Value Common Stock: Class A 400,000,000 $ 0.10 Class B 100,000,000 0.10 500,000,000 Preferred Stock 50,000,000 0.10 550,000,000 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum annual lease payments under such leases are as follows: Years Approximate (in thousands) 2020 $ 6,268 2021 6,007 2022 5,428 2023 5,110 2024 5,132 Thereafter 38,050 $ 65,995 |
Summary of Financial Instruments Whose Contract Amount Represents Off-Balance Sheet Credit Risk | Financial instruments whose contract amount represents off-balance sheet credit risk at December 31, 2019 are generally short-term and are as follows: (in thousands) Approximate Commitments to extend credit $ 820,380 Standby letters of credit 16,699 Commercial letters of credit 715 $ 837,794 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below: December 31, 2019 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 933,112 $ — $ 933,112 Corporate debt securities — 252,836 — 252,836 U.S. government agency debt securities — 228,397 — 228,397 U.S. treasury securities — 104,236 — 104,236 Municipal bonds — 50,171 — 50,171 — 1,568,752 — 1,568,752 Equity securities with readily determinable fair values not held for trading — 23,848 — 23,848 Bank owned life insurance — 211,852 — 211,852 Derivative instruments — 12,097 — 12,097 $ — $ 1,816,549 $ — $ 1,816,549 Liabilities Derivative instruments $ — $ 11,809 $ — $ 11,809 December 31, 2018 (in thousands) Quoted Third-Party Internal Total Assets Securities available for sale U.S. government sponsored enterprise debt securities $ — $ 820,779 $ — $ 820,779 Corporate debt securities — 352,555 — 352,555 U.S. government agency debt securities — 216,985 — 216,985 Municipal bonds — 160,212 — 160,212 Mutual funds — 23,110 — 23,110 Commercial paper — 12,410 — 12,410 — 1,586,051 — 1,586,051 Bank owned life insurance — 206,141 — 206,141 Derivative instruments — 11,491 — 11,491 $ — $ 1,803,683 $ — $ 1,803,683 Liabilities Derivative instruments $ — $ 2,388 $ — $ 2,388 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Estimated Fair Value of Financial Instruments Where Fair Value Differs from Carrying Value | The estimated fair value of financial instruments where fair value differs from carrying value are as follows: December 31, 2019 December 31, 2018 (in thousands) Carrying Estimated Carrying Estimated Financial assets Loans $ 2,819,477 $ 2,721,291 $ 2,850,015 $ 2,739,721 Financial liabilities Time deposits 1,745,735 1,759,347 1,745,025 1,740,752 Advances from the FHLB 1,235,000 1,244,515 1,166,000 1,167,213 Junior subordinated debentures 92,246 86,738 118,110 99,450 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Summary of the Bank's and the Company's Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums to be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total capital ratio $ 841,305 13.15 % $ 511,638 8.00 % $ 639,547 10.00 % Tier 1 capital ratio 787,908 12.32 % 383,728 6.00 % 511,638 8.00 % Tier 1 leverage ratio 787,908 10.01 % 314,800 4.00 % 393,500 5.00 % Common equity tier 1 (CET1) 787,908 12.32 % 287,796 4.50 % 415,706 6.50 % December 31, 2018 Total capital ratio $ 883,746 13.05 % $ 541,564 8.00 % $ 676,955 10.00 % Tier 1 capital ratio 826,114 12.20 % 406,173 6.00 % 541,564 8.00 % Tier 1 leverage ratio 826,114 9.96 % 331,829 4.00 % 414,786 5.00 % Common equity tier 1 (CET1) 826,114 12.20 % 304,630 4.50 % 440,021 6.50 % The Company’s actual capital amounts and ratios are presented in the following table: Actual Minimums Required for Capital Adequacy Purposes Regulatory Minimums To be Well Capitalized (in thousands, except percentages) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Total capital ratio $ 945,310 14.78 % $ 511,760 8.00 % $ 639,699 10.00 % Tier 1 capital ratio 891,913 13.94 % 383,820 6.00 % 511,760 8.00 % Tier 1 leverage ratio 891,913 11.32 % 315,055 4.00 % 393,819 5.00 % Common equity tier 1 (CET1) 806,050 12.60 % 287,865 4.50 % 415,805 6.50 % December 31, 2018 Total capital ratio $ 916,663 13.54 % $ 541,638 8.00 % $ 677,047 10.00 % Tier 1 capital ratio 859,031 12.69 % 406,228 6.00 % 541,638 8.00 % Tier 1 leverage ratio 859,031 10.34 % 332,190 4.00 % 415,238 5.00 % Common equity tier 1 (CET1) 749,465 11.07 % 304,671 4.50 % 440,080 6.50 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table shows the calculation of basic and diluted earnings per share: (in thousands, except per share data) 2019 2018 2017 Numerator: Net income available to common stockholders $ 51,334 $ 45,833 $ 43,057 Denominator: Basic weighted averages shares outstanding 42,543 42,487 42,489 Dilutive effect of shared-based compensation awards 396 — — Diluted weighted average shares outstanding 42,939 42,487 42,489 Basic earnings per common share $ 1.21 $ 1.08 $ 1.01 Diluted earnings per common share $ 1.20 $ 1.08 $ 1.01 |
Condensed Unconsolidated Hold_2
Condensed Unconsolidated Holding Companies’ Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets: December 31, (in thousands) 2019 2018 Assets Cash and due from banks $ 48,868 $ 32,922 Investments in subsidiaries 815,204 822,940 U.S. treasury securities 998 — Other assets 7,281 9,640 $ 872,351 $ 865,502 Liabilities and Stockholder’s Equity Junior subordinated debentures held by trust subsidiaries $ 92,246 $ 118,110 Other liabilities 3,732 1,048 Stockholder’s equity 776,373 746,344 $ 872,351 $ 865,502 Condensed Balance Sheets: December 31, (in thousands) 2019 2018 Assets Cash and due from banks $ 57,806 $ 1,891 Investments in subsidiaries 776,372 746,344 Other assets 1,800 1,720 $ 835,978 $ 749,955 Liabilities and Stockholders' Equity Other liabilities $ 1,277 $ 2,537 Stockholders' equity 834,701 747,418 $ 835,978 $ 749,955 |
Condensed Statements of Income | Condensed Statements of Income: Years ended December 31 (in thousands) 2019 2018 2017 Income: Interest $ 40 $ 9 $ 3 Equity in earnings of subsidiary 56,755 53,939 45,008 Total income 56,795 53,948 45,011 Expenses: Employee benefits — — 350 Other expenses (1) 7,434 8,018 2,539 Total expense 7,434 8,018 2,889 Income before income tax benefit (expense) 49,361 45,930 42,122 Income tax benefit (expense) 1,973 (97 ) 935 Net income $ 51,334 $ 45,833 $ 43,057 __________________ (1) Other expenses mainly consist of professional and other service fees. Condensed Statements of Income: Years ended December 31 (in thousands) 2019 2018 2017 Income: Interest $ 152 $ 182 $ 85 Equity in earnings of subsidiary 62,979 60,609 50,982 Other income 6 — — Total income 63,137 60,791 51,067 Expenses: Interest expense 7,184 8,086 7,456 Provision for loan losses — — — Other expenses 726 414 1,310 Total expenses 7,910 8,500 8,766 Income before income tax benefit 55,227 52,291 42,301 Income tax benefit 1,528 1,661 2,726 Net income $ 56,755 $ 53,952 $ 45,027 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2019 2018 2017 Cash flows from operating activities Net income $ 56,755 $ 53,952 $ 45,027 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (60,555 ) (60,609 ) (50,982 ) Net change in other assets and liabilities 3,108 490 (4 ) Net cash used in operating activities (692 ) (6,167 ) (5,959 ) Cash flows from investing activities Dividends received from subsidiary 105,000 47,500 6,000 Dividends paid — (47,500 ) (700 ) Purchases of available for sale securities (998 ) — — Net cash provided by investing activities 104,002 — 5,300 Cash flows from financing activities Redemption of junior subordinated debentures (25,864 ) — — Dividends paid (61,500 ) — — Net cash used in financing activities (87,364 ) — — Years ended December 31, (in thousands) 2019 2018 2017 Net increase (decrease) in cash and cash equivalents 15,946 (6,167 ) (659 ) Cash and cash equivalents Beginning of year 32,922 39,089 39,748 End of year $ 48,868 $ 32,922 $ 39,089 Condensed Statements of Cash Flows: Years ended December 31, (in thousands) 2019 2018 2017 Cash flows from operating activities Net income $ 51,334 $ 45,833 $ 43,057 Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries (56,755 ) (53,939 ) (45,008 ) Stock-based compensation expense 422 — — Net change in other assets and liabilities (1,339 ) 438 1,337 Net cash used in operating activities (6,338 ) (7,668 ) (614 ) Cash flows from investing activities Cash received upon Voting Trust termination — 639 — Dividends from subsidiary 61,500 47,500 700 Net cash provided by investment activities 61,500 48,139 700 Cash flows from financing activities Dividends paid — (40,000 ) — Common stock issued - Class A 29,218 17,908 — Repurchase of common stock - Class B (28,465 ) (17,908 ) — Net cash provided by (used in) financing activities 753 (40,000 ) — Net increase in cash and cash equivalents 55,915 471 86 Years ended December 31, (in thousands) 2019 2018 2017 Cash and cash equivalents Beginning of year 1,891 1,420 1,334 End of year $ 57,806 $ 1,891 $ 1,420 |
Business, Basis of Presentati_3
Business, Basis of Presentation and Summary of Significant Accounting Policies (Details) | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019USD ($)banking_centerofficesegment$ / shares | Dec. 31, 2019USD ($)banking_centersubsidiaryoffice$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($) | Jan. 01, 2019 | Dec. 28, 2018 | Apr. 02, 2018 | Mar. 15, 2018 | |
Class of Stock [Line Items] | ||||||||
Number of subsidiaries | subsidiary | 2 | |||||||
Number of banking centers | banking_center | 26 | 26 | ||||||
Reportable business segments | segment | 1,000 | |||||||
Distribution Trust Agreement, percentage of common shareholders equity held by trust | 80.10% | |||||||
Distribution Trust Agreement, percentage of retained shareholders equity held by trust | 19.90% | |||||||
Cash reserve balances | $ 1,000 | $ 1,000 | $ 200,000 | |||||
Securities receivable | 2,200,000 | 2,200,000 | 3,500,000 | |||||
Unamortized net deferred loan fees and origination costs | $ 7,700,000 | 7,700,000 | 7,100,000 | |||||
Goodwill impairment charge | 0 | $ 0 | ||||||
Reclassification of tax law impact on AOCI | $ 0 | |||||||
Mutual funds | ||||||||
Class of Stock [Line Items] | ||||||||
Realized net gains | $ 700,000 | |||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Class of Stock [Line Items] | ||||||||
Reclassification of tax law impact on AOCI | $ 1,094,000 | |||||||
Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Right-of-use asset, percent | 1.00% | |||||||
Operating lease, liability, percent | 1.00% | |||||||
Mercantil Servicios Financieros, C.A. (MSF) | Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Percent of shares outstanding owned | 5.00% | |||||||
Class A common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.1 | $ 0.1 | $ 0.10 | |||||
Class B common stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | $ 0.10 | |||||
Class B common stock | Mercantil Servicios Financieros, C.A. (MSF) | Maximum | ||||||||
Class of Stock [Line Items] | ||||||||
Percent of shares outstanding owned | 5.00% | |||||||
Florida | ||||||||
Class of Stock [Line Items] | ||||||||
Number of banking centers | banking_center | 18 | 18 | ||||||
Texas | ||||||||
Class of Stock [Line Items] | ||||||||
Number of banking centers | banking_center | 8 | 8 | ||||||
Number of loan production offices | office | 1,000 | 1,000 | ||||||
New York | ||||||||
Class of Stock [Line Items] | ||||||||
Number of loan production offices | office | 1,000 | 1,000 | ||||||
Amerant Bank, N.A | ||||||||
Class of Stock [Line Items] | ||||||||
Ownership percentage of subsidiary | 100.00% | 100.00% | ||||||
Mercantil Bank Holding Corporation | Mercantil Servicios Financieros, C.A. (MSF) | ||||||||
Class of Stock [Line Items] | ||||||||
Ownership percentage of subsidiary | 100.00% |
Interest Earning Deposits wit_2
Interest Earning Deposits with Banks (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | ||
Interest earning deposits with banks | $ 93,289 | $ 59,954 |
Average interest rate on deposits with banks | 2.19% | 1.88% |
Interest earning deposits with banks, maturity | 1 year |
Securities - Amortized Cost to
Securities - Amortized Cost to Fair Value of Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,559,189 | $ 1,619,196 |
Gross Unrealized Gains | 18,119 | 2,913 |
Gross Unrealized Losses | (8,556) | (36,058) |
Estimated Fair Value | 1,568,752 | 1,586,051 |
U.S. government sponsored enterprise debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 927,205 | 840,760 |
Gross Unrealized Gains | 9,702 | 2,197 |
Gross Unrealized Losses | (3,795) | (22,178) |
Estimated Fair Value | 933,112 | 820,779 |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 247,836 | 357,602 |
Gross Unrealized Gains | 5,002 | 139 |
Gross Unrealized Losses | (2) | (5,186) |
Estimated Fair Value | 252,836 | 352,555 |
U.S. government agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 230,384 | 221,682 |
Gross Unrealized Gains | 895 | 187 |
Gross Unrealized Losses | (2,882) | (4,884) |
Estimated Fair Value | 228,397 | 216,985 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 106,112 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (1,877) | |
Estimated Fair Value | 104,236 | |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 47,652 | 162,438 |
Gross Unrealized Gains | 2,519 | 390 |
Gross Unrealized Losses | 0 | (2,616) |
Estimated Fair Value | $ 50,171 | 160,212 |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 24,266 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (1,156) | |
Estimated Fair Value | 23,110 | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,448 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (38) | |
Estimated Fair Value | $ 12,410 |
Securities - Narrative (Details
Securities - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities available for sale | $ 1,568,752,000 | $ 1,586,051,000 |
Proceeds from sales and calls of securities available-for-sale | 274,000,000 | 67,000,000 |
Gross realized gain | 2,500,000 | 500,000 |
Gross realized loss | 600,000 | 1,400,000 |
Equity securities with readily determinable fair values not held for trading | 23,848,000 | 0 |
Gross unrealized losses | 8,556,000 | 36,058,000 |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Equity securities with readily determinable fair values not held for trading | 24,000,000 | |
Foreign sovereign debt security | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities available for sale | 0 | 0 |
Foreign corporate debt security | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities available for sale | 5,200,000 | 36,200,000 |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Debt securities available for sale | 23,110,000 | |
Realized net gains | $ 700,000 | |
Gross unrealized losses | $ 1,156,000 |
Securities - Unrealized Loss on
Securities - Unrealized Loss on Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | $ 386,576 | $ 412,086 |
12 Months or More, Estimated Fair Value | 297,614 | 935,330 |
Total, Estimated Fair Value | 684,190 | 1,347,416 |
Less Than 12 Months, Unrealized Loss | (3,869) | (7,778) |
12 Months or More, Unrealized Loss | (4,687) | (28,280) |
Total, Unrealized Loss | (8,556) | (36,058) |
U.S. government sponsored enterprise debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 239,446 | 90,980 |
12 Months or More, Estimated Fair Value | 180,274 | 608,486 |
Total, Estimated Fair Value | 419,720 | 699,466 |
Less Than 12 Months, Unrealized Loss | (1,740) | (2,995) |
12 Months or More, Unrealized Loss | (2,055) | (19,183) |
Total, Unrealized Loss | (3,795) | (22,178) |
Corporate debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 8,359 | 243,667 |
12 Months or More, Estimated Fair Value | 300 | 75,762 |
Total, Estimated Fair Value | 8,659 | 319,429 |
Less Than 12 Months, Unrealized Loss | (1) | (3,800) |
12 Months or More, Unrealized Loss | (1) | (1,386) |
Total, Unrealized Loss | (2) | (5,186) |
U.S. government agency debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 41,300 | 63,580 |
12 Months or More, Estimated Fair Value | 117,040 | 133,886 |
Total, Estimated Fair Value | 158,340 | 197,466 |
Less Than 12 Months, Unrealized Loss | (251) | (939) |
12 Months or More, Unrealized Loss | (2,631) | (3,945) |
Total, Unrealized Loss | (2,882) | (4,884) |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 1,449 | |
12 Months or More, Estimated Fair Value | 94,331 | |
Total, Estimated Fair Value | 95,780 | |
Less Than 12 Months, Unrealized Loss | (6) | |
12 Months or More, Unrealized Loss | (2,610) | |
Total, Unrealized Loss | (2,616) | |
Mutual funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 0 | |
12 Months or More, Estimated Fair Value | 22,865 | |
Total, Estimated Fair Value | 22,865 | |
Less Than 12 Months, Unrealized Loss | 0 | |
12 Months or More, Unrealized Loss | (1,156) | |
Total, Unrealized Loss | (1,156) | |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 97,471 | |
12 Months or More, Estimated Fair Value | 0 | |
Total, Estimated Fair Value | 97,471 | |
Less Than 12 Months, Unrealized Loss | (1,877) | |
12 Months or More, Unrealized Loss | 0 | |
Total, Unrealized Loss | $ (1,877) | |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months, Estimated Fair Value | 12,410 | |
12 Months or More, Estimated Fair Value | 0 | |
Total, Estimated Fair Value | 12,410 | |
Less Than 12 Months, Unrealized Loss | (38) | |
12 Months or More, Unrealized Loss | 0 | |
Total, Unrealized Loss | $ (38) |
Securities - Held to Maturity S
Securities - Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 73,876 | $ 85,188 |
Gross Unrealized Gains | 854 | 0 |
Gross Unrealized Losses | (135) | (3,938) |
Estimated Fair Value | 74,595 | 81,250 |
U.S. government sponsored enterprise debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 71,169 | 82,326 |
Gross Unrealized Gains | 809 | 0 |
Gross Unrealized Losses | (135) | (3,889) |
Estimated Fair Value | 71,843 | 78,437 |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,707 | 2,862 |
Gross Unrealized Gains | 45 | 0 |
Gross Unrealized Losses | 0 | (49) |
Estimated Fair Value | $ 2,752 | $ 2,813 |
Securities - Contractual Maturi
Securities - Contractual Maturities on Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for Sale, Amortized Cost | ||
Within 1 year | $ 47,366 | |
After 1 year through 5 years | 177,696 | |
After 5 years through 10 years | 233,420 | |
After 10 years | 1,100,707 | |
Amortized Cost | 1,559,189 | $ 1,619,196 |
Available for Sale, Estimated Fair Value | ||
Within 1 year | 47,464 | |
After 1 year through 5 years | 179,863 | |
After 5 years through 10 years | 239,294 | |
After 10 years | 1,102,131 | |
Estimated Fair Value | 1,568,752 | 1,586,051 |
Held to Maturity, Amortized Cost | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 73,876 | |
Amortized Cost | 73,876 | 85,188 |
Held to Maturity, Estimated Fair Value | ||
Within 1 year | 0 | |
After 1 year through 5 years | 0 | |
After 5 years through 10 years | 0 | |
After 10 years | 74,595 | |
Estimated Fair Value | $ 74,595 | $ 81,250 |
Loans - Loan Portfolio by Class
Loans - Loan Portfolio by Classes (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 5,744,339 | $ 5,920,175 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,405,278 | 4,355,942 |
Real estate loans | Nonowner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,891,802 | 1,809,356 |
Real estate loans | Multi-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 801,626 | 909,439 |
Real estate loans | Land development and construction loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 278,688 | 326,644 |
Real estate loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,972,116 | 3,045,439 |
Real estate loans | Single-family residential | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 539,102 | 533,481 |
Real estate loans | Owner occupied | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 894,060 | 777,022 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,234,043 | 1,380,428 |
Loans to financial institutions and acceptances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,552 | 68,965 |
Consumer loans and overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 88,466 | $ 114,840 |
Loans - Narrative (Details)
Loans - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Loans pledged as collateral | $ 1,575 | $ 1,680 |
Syndication facilities included in loans | 562 | 807 |
Cash collateral on loans | $ 15.2 | $ 19.5 |
Loans - Loan Portfolio by Count
Loans - Loan Portfolio by Countries (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 5,744,339 | $ 5,920,175 |
Others | Assets, total | Geographic concentration risk | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Concentration risk, percentage | 1.00% | |
International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 171,437 | 299,759 |
International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 112,297 | 157,162 |
International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 59,140 | 142,597 |
Real estate loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,405,278 | 4,355,942 |
Real estate loans | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 111,671 | 135,438 |
Real estate loans | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 103,979 | 128,971 |
Real estate loans | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 7,692 | 6,467 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,234,043 | 1,380,428 |
Commercial loans | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 43,850 | 73,636 |
Commercial loans | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Commercial loans | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 43,850 | 73,636 |
Loans to financial institutions and acceptances | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 16,552 | 68,965 |
Loans to financial institutions and acceptances | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5 | 49,000 |
Loans to financial institutions and acceptances | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5 | 49,000 |
Consumer loans and overdrafts | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 88,466 | 114,840 |
Consumer loans and overdrafts | International | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,911 | 41,685 |
Consumer loans and overdrafts | International | Venezuela | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,318 | 28,191 |
Consumer loans and overdrafts | International | Others | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 7,593 | $ 13,494 |
Loans - Loans by Delinquency (D
Loans - Loans by Delinquency (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | $ 5,744,339 | $ 5,920,175 | |
Current | 5,721,574 | 5,899,259 | |
Past Due | 22,765 | 20,916 | |
Total Loans in Nonaccrual Status | 32,922 | 16,479 | |
Total Loans 90 Days or More Past Due and Accruing | 5 | 1,303 | |
30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 10,579 | 11,888 | |
60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 3,756 | 3,801 | |
Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 8,430 | 5,227 | |
Real estate loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 4,405,278 | 4,355,942 | |
Current | 4,390,672 | 4,339,045 | |
Past Due | 14,606 | 16,897 | |
Total Loans in Nonaccrual Status | 23,357 | 11,672 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 419 | |
Real estate loans | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 5,946 | 10,710 | |
Real estate loans | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,972 | 2,496 | |
Real estate loans | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 5,688 | 3,691 | |
Real estate loans | Non-owner occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 1,891,802 | 1,809,356 | |
Current | 1,891,801 | 1,809,356 | |
Past Due | 1 | 0 | |
Total Loans in Nonaccrual Status | 1,936 | 0 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 | |
Real estate loans | Non-owner occupied | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1 | 0 | |
Real estate loans | Non-owner occupied | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Non-owner occupied | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Multi-family residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 801,626 | 909,439 | |
Current | 801,626 | 909,439 | |
Past Due | 0 | 0 | |
Total Loans in Nonaccrual Status | 0 | 0 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 | |
Real estate loans | Multi-family residential | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Multi-family residential | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Multi-family residential | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Land development and construction loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 278,688 | 326,644 | |
Current | 278,688 | 326,644 | |
Past Due | 0 | 0 | |
Total Loans in Nonaccrual Status | 0 | 0 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 | |
Real estate loans | Land development and construction loans | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Land development and construction loans | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Land development and construction loans | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Commercial real estate | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 2,972,116 | 3,045,439 | |
Current | 2,972,115 | 3,045,439 | |
Past Due | 1 | 0 | |
Total Loans in Nonaccrual Status | 1,936 | 0 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 | |
Real estate loans | Commercial real estate | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1 | 0 | |
Real estate loans | Commercial real estate | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Commercial real estate | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Real estate loans | Single-family residential | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 539,102 | 533,481 | |
Current | 530,399 | 519,730 | |
Past Due | 8,703 | 13,751 | |
Total Loans in Nonaccrual Status | 7,291 | 6,689 | $ 5,004 |
Total Loans 90 Days or More Past Due and Accruing | 0 | 419 | |
Real estate loans | Single-family residential | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 4,585 | 7,910 | |
Total Loans in Nonaccrual Status | 253 | 276 | 584 |
Real estate loans | Single-family residential | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,248 | 2,336 | |
Total Loans in Nonaccrual Status | 266 | 1,703 | 557 |
Real estate loans | Single-family residential | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,870 | 3,505 | |
Total Loans in Nonaccrual Status | 2,870 | 3,086 | 1,777 |
Real estate loans | Owner occupied | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 894,060 | 777,022 | |
Current | 888,158 | 773,876 | |
Past Due | 5,902 | 3,146 | |
Total Loans in Nonaccrual Status | 14,130 | 4,983 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 | |
Real estate loans | Owner occupied | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,360 | 2,800 | |
Real estate loans | Owner occupied | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 1,724 | 160 | |
Real estate loans | Owner occupied | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,818 | 186 | |
Commercial loans | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 1,234,043 | 1,380,428 | |
Current | 1,226,320 | 1,378,022 | |
Past Due | 7,723 | 2,406 | |
Total Loans in Nonaccrual Status | 9,149 | 4,772 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 | |
Commercial loans | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 4,418 | 704 | |
Commercial loans | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 608 | 1,062 | |
Commercial loans | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 2,697 | 640 | |
Loans to financial institutions and acceptances | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 16,552 | 68,965 | |
Current | 16,552 | 68,965 | |
Past Due | 0 | 0 | |
Total Loans in Nonaccrual Status | 0 | 0 | |
Total Loans 90 Days or More Past Due and Accruing | 0 | 0 | |
Loans to financial institutions and acceptances | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Loans to financial institutions and acceptances | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Loans to financial institutions and acceptances | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 0 | 0 | |
Consumer loans and overdrafts | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans, Net of Unearned Income | 88,466 | 114,840 | |
Current | 88,030 | 113,227 | |
Past Due | 436 | 1,613 | |
Total Loans in Nonaccrual Status | 416 | 35 | 55 |
Total Loans 90 Days or More Past Due and Accruing | 5 | 884 | |
Consumer loans and overdrafts | 30-59 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 215 | 474 | |
Total Loans in Nonaccrual Status | 0 | 8 | 9 |
Consumer loans and overdrafts | 60-89 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 176 | 243 | |
Total Loans in Nonaccrual Status | 2 | 0 | 11 |
Consumer loans and overdrafts | Greater than 90 Days | |||
Financing Receivable, Past Due [Line Items] | |||
Past Due | 45 | 896 | |
Total Loans in Nonaccrual Status | $ 40 | $ 11 | $ 19 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowances by Loan Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balances at beginning of the period | $ 61,762 | $ 72,000 | $ 81,751 |
Provision for (reversal of) loan losses | (3,150) | 375 | (3,490) |
Recoveries | 2,450 | 1,947 | 3,162 |
Balances at end of the period | 52,223 | 61,762 | 72,000 |
Allowance for loan losses by impairment methodology, Individually evaluated | 4,274 | 2,373 | 2,866 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 47,949 | 59,389 | 69,134 |
Investment in loans, net of unearned income, Individually evaluated | 30,311 | 13,458 | 22,599 |
Investment in loans, net of unearned income, Collectively evaluated | 5,714,028 | 5,906,717 | 6,043,626 |
Total Loans, Net of Unearned Income | 5,744,339 | 5,920,175 | 6,066,225 |
Domestic | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | (3,744) | (9,695) | (2,500) |
International | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | (5,095) | (2,865) | (6,923) |
Real estate loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balances at beginning of the period | 22,778 | 31,290 | 30,713 |
Provision for (reversal of) loan losses | 2,072 | (2,885) | (221) |
Recoveries | 190 | 212 | 895 |
Balances at end of the period | 25,040 | 22,778 | 31,290 |
Allowance for loan losses by impairment methodology, Individually evaluated | 1,161 | 0 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 23,879 | 22,778 | 31,290 |
Investment in loans, net of unearned income, Individually evaluated | 1,936 | 717 | 1,318 |
Investment in loans, net of unearned income, Collectively evaluated | 2,968,589 | 3,037,604 | 2,912,786 |
Total Loans, Net of Unearned Income | 2,970,525 | 3,038,321 | 2,914,104 |
Real estate loans | Domestic | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | 0 | (5,839) | (97) |
Real estate loans | International | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | 0 | 0 | 0 |
Commercial loans | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balances at beginning of the period | 30,018 | 32,687 | 40,897 |
Provision for (reversal of) loan losses | (6,165) | 1,099 | (1,027) |
Recoveries | 1,711 | 1,367 | 962 |
Balances at end of the period | 22,482 | 30,018 | 32,687 |
Allowance for loan losses by impairment methodology, Individually evaluated | 1,789 | 1,282 | 2,866 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 20,693 | 28,736 | 29,821 |
Investment in loans, net of unearned income, Individually evaluated | 22,790 | 9,652 | 20,907 |
Investment in loans, net of unearned income, Collectively evaluated | 2,206,566 | 2,254,607 | 2,073,351 |
Total Loans, Net of Unearned Income | 2,229,356 | 2,264,259 | 2,094,258 |
Commercial loans | Domestic | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | (3,020) | (3,662) | (1,979) |
Commercial loans | International | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | (62) | (1,473) | (6,166) |
Loans to financial institutions and acceptances | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balances at beginning of the period | 445 | 4,362 | 5,304 |
Provision for (reversal of) loan losses | (403) | (3,917) | (942) |
Recoveries | 0 | 0 | 0 |
Balances at end of the period | 42 | 445 | 4,362 |
Allowance for loan losses by impairment methodology, Individually evaluated | 0 | 0 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 42 | 445 | 4,362 |
Investment in loans, net of unearned income, Individually evaluated | 0 | 0 | 0 |
Investment in loans, net of unearned income, Collectively evaluated | 16,552 | 69,003 | 497,626 |
Total Loans, Net of Unearned Income | 16,552 | 69,003 | 497,626 |
Loans to financial institutions and acceptances | Domestic | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | 0 | 0 | 0 |
Loans to financial institutions and acceptances | International | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | 0 | 0 | 0 |
Consumer loans and overdrafts | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balances at beginning of the period | 8,521 | 3,661 | 4,837 |
Provision for (reversal of) loan losses | 1,346 | 6,078 | (1,300) |
Recoveries | 549 | 368 | 1,305 |
Balances at end of the period | 4,659 | 8,521 | 3,661 |
Allowance for loan losses by impairment methodology, Individually evaluated | 1,324 | 1,091 | 0 |
Allowance for loan losses by impairment methodology, Collectively evaluated | 3,335 | 7,430 | 3,661 |
Investment in loans, net of unearned income, Individually evaluated | 5,585 | 3,089 | 374 |
Investment in loans, net of unearned income, Collectively evaluated | 522,321 | 545,503 | 559,863 |
Total Loans, Net of Unearned Income | 527,906 | 548,592 | 560,237 |
Consumer loans and overdrafts | Domestic | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | (724) | (194) | (424) |
Consumer loans and overdrafts | International | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Loans charged-off | $ (5,033) | $ (1,392) | $ (757) |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment of Loan Sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | $ 267,765 | $ 173,473 | $ 90,477 |
Real estate loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | 23,475 | 20,248 | 15,040 |
Commercial loans | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | 236,373 | 138,244 | 35,260 |
Loans to financial institutions and acceptances | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | 0 | 0 | 40,177 |
Consumer loans and overdrafts | |||
Financing Receivable, Impaired [Line Items] | |||
Amount of loan sales | $ 7,917 | $ 14,981 | $ 0 |
Allowance for Loan Losses - Imp
Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | $ 21,654 | $ 7,849 |
Recorded investment, without a valuation allowance | 8,657 | 5,609 |
Recorded Investment, Total | 30,311 | 13,458 |
Year Average | 25,618 | 25,708 |
Total Unpaid Principal Balance | 30,386 | 14,776 |
Valuation Allowance | 4,274 | 2,373 |
Interest Income Recognized | 174 | 1,106 |
Real estate loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 12,844 | 3,255 |
Recorded investment, without a valuation allowance | 8,635 | 5,450 |
Recorded Investment, Total | 21,479 | 8,705 |
Year Average | 16,913 | 18,229 |
Total Unpaid Principal Balance | 21,508 | 8,750 |
Valuation Allowance | 2,608 | 1,310 |
Interest Income Recognized | 116 | 154 |
Real estate loans | Non-owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 1,936 | 0 |
Recorded investment, without a valuation allowance | 0 | 0 |
Recorded Investment, Total | 1,936 | 0 |
Year Average | 1,459 | 7,935 |
Total Unpaid Principal Balance | 1,936 | 0 |
Valuation Allowance | 1,161 | 0 |
Interest Income Recognized | 37 | 0 |
Real estate loans | Multi-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 0 | 0 |
Recorded investment, without a valuation allowance | 0 | 717 |
Recorded Investment, Total | 0 | 717 |
Year Average | 342 | 724 |
Total Unpaid Principal Balance | 0 | 722 |
Valuation Allowance | 0 | 0 |
Interest Income Recognized | 10 | 32 |
Real estate loans | Land development and construction loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 0 | 0 |
Recorded investment, without a valuation allowance | 0 | 0 |
Recorded Investment, Total | 0 | 0 |
Year Average | 0 | 0 |
Total Unpaid Principal Balance | 0 | 0 |
Valuation Allowance | 0 | 0 |
Interest Income Recognized | 0 | 0 |
Real estate loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 1,936 | 0 |
Recorded investment, without a valuation allowance | 0 | 717 |
Recorded Investment, Total | 1,936 | 717 |
Year Average | 1,801 | 8,659 |
Total Unpaid Principal Balance | 1,936 | 722 |
Valuation Allowance | 1,161 | 0 |
Interest Income Recognized | 47 | 32 |
Real estate loans | Single-family residential | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 4,739 | 3,086 |
Recorded investment, without a valuation allowance | 729 | 306 |
Recorded Investment, Total | 5,468 | 3,392 |
Year Average | 5,564 | 4,046 |
Total Unpaid Principal Balance | 5,598 | 3,427 |
Valuation Allowance | 946 | 1,235 |
Interest Income Recognized | 21 | 108 |
Real estate loans | Owner occupied | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 6,169 | 169 |
Recorded investment, without a valuation allowance | 7,906 | 4,427 |
Recorded Investment, Total | 14,075 | 4,596 |
Year Average | 9,548 | 5,524 |
Total Unpaid Principal Balance | 13,974 | 4,601 |
Valuation Allowance | 501 | 75 |
Interest Income Recognized | 48 | 14 |
Commercial loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 8,415 | 4,585 |
Recorded investment, without a valuation allowance | 13 | 148 |
Recorded Investment, Total | 8,428 | 4,733 |
Year Average | 8,552 | 7,464 |
Total Unpaid Principal Balance | 8,476 | 6,009 |
Valuation Allowance | 1,288 | 1,059 |
Interest Income Recognized | 58 | 952 |
Consumer loans and overdrafts | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment, with a valuation allowance | 395 | 9 |
Recorded investment, without a valuation allowance | 9 | 11 |
Recorded Investment, Total | 404 | 20 |
Year Average | 153 | 15 |
Total Unpaid Principal Balance | 402 | 17 |
Valuation Allowance | 378 | 4 |
Interest Income Recognized | $ 0 | $ 0 |
Allowance for Loan Losses - TDR
Allowance for Loan Losses - TDR Loans (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 6 | 5 | 4 | ||
Recorded Investment | $ 9,931,000 | $ 2,463,000 | $ 1,473,000 | ||
Write-down | 0 | 6,900,000 | $ 6,000,000 | ||
Recorded investment | $ 30,311,000 | $ 13,458,000 | $ 30,311,000 | $ 13,458,000 | |
TDR loan relationship not performing in accordance | 9,800,000 | ||||
Real estate loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 4 | 2 | 3 | ||
Recorded Investment | $ 6,905,000 | $ 1,831,000 | $ 0 | ||
Financing receivable, TDRs | 9,800,000 | 9,800,000 | |||
Recorded investment | 21,479,000 | 8,705,000 | $ 21,479,000 | $ 8,705,000 | |
Real estate loans | Non-owner occupied | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 1 | 1 | 0 | ||
Recorded Investment | $ 1,936,000 | $ 0 | $ 0 | ||
Write-down | 10,200,000 | ||||
Proceeds from sale | 5,800,000 | ||||
Recorded investment | 1,936,000 | 0 | $ 1,936,000 | $ 0 | |
Real estate loans | Single-family residential | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 1 | 0 | 2 | ||
Recorded Investment | $ 172,000 | $ 0 | $ 0 | ||
Recorded investment | 5,468,000 | 3,392,000 | $ 5,468,000 | $ 3,392,000 | |
Real estate loans | Owner occupied | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 2 | 1 | 1 | ||
Recorded Investment | $ 4,797,000 | $ 1,831,000 | $ 0 | ||
Recorded investment | 14,075,000 | 4,596,000 | $ 14,075,000 | $ 4,596,000 | |
Real estate loans | Residential Mortgage | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Financing receivable, not modified, number of contracts | contract | 4 | ||||
Recorded investment | 2,200,000 | $ 2,200,000 | |||
Commercial loans | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 1 | 2 | 1 | ||
Recorded Investment | $ 2,669,000 | $ 622,000 | $ 1,473,000 | ||
Recorded investment | 8,428,000 | 4,733,000 | $ 8,428,000 | $ 4,733,000 | |
Consumer loans and overdrafts | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Number of Contracts | contract | 1 | 1 | 0 | ||
Recorded Investment | $ 357,000 | $ 10,000 | $ 0 | ||
Recorded investment | 404,000 | $ 20,000 | 404,000 | $ 20,000 | |
Commercial Real Estate Portfolio Segment and Commercial Portfolio Segment | Owner occupied | |||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||||
Specific reserves | $ 2,400,000 | $ 2,400,000 |
Allowance for Loan Losses - T_2
Allowance for Loan Losses - TDR Loans Subsequently Defaulted (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 5 | 3 | 1 |
Recorded Investment | $ | $ 9,759 | $ 2,430 | $ 618 |
Real estate loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 3 | 1 | 1 |
Recorded Investment | $ | $ 6,733 | $ 1,831 | $ 618 |
Real estate loans | Non-owner occupied | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 0 | 0 |
Recorded Investment | $ | $ 1,936 | $ 0 | $ 0 |
Real estate loans | Single-family residential | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Recorded Investment | $ | $ 0 | $ 0 | $ 0 |
Real estate loans | Owner occupied | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 2 | 1 | 1 |
Recorded Investment | $ | $ 4,797 | $ 1,831 | $ 618 |
Commercial loans | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 1 | 0 |
Recorded Investment | $ | $ 2,669 | $ 589 | $ 0 |
Consumer loans and overdrafts | |||
Financing Receivable, Troubled Debt Restructuring [Line Items] | |||
Number of Contracts | contract | 1 | 1 | 0 |
Recorded Investment | $ | $ 357 | $ 10 | $ 0 |
Allowance for Loan Losses - Mas
Allowance for Loan Losses - Master Risk Category (Details) | Dec. 31, 2019rating |
Pass | Minimum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan Risk Rating | 4 |
Pass | Maximum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan Risk Rating | 10 |
Classified | Minimum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan Risk Rating | 1 |
Classified | Maximum | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan Risk Rating | 3 |
Substandard | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan Risk Rating | 3 |
Doubtful | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan Risk Rating | 2 |
Loss | |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Loan Risk Rating | 1 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit Risk Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 5,744,339 | $ 5,920,175 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 5,675,625 | 5,870,758 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 32,986 | 19,523 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 30,766 | 29,305 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,962 | 589 |
Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,405,278 | 4,355,942 |
Real estate loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,353,632 | 4,323,581 |
Real estate loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 27,417 | 15,580 |
Real estate loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 22,293 | 16,781 |
Real estate loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,936 | 0 |
Real estate loans | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Non-owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,891,802 | 1,809,356 |
Real estate loans | Non-owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,879,780 | 1,802,573 |
Real estate loans | Non-owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,324 | 6,561 |
Real estate loans | Non-owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 762 | 222 |
Real estate loans | Non-owner occupied | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,936 | 0 |
Real estate loans | Non-owner occupied | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Multi-family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 801,626 | 909,439 |
Real estate loans | Multi-family residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 801,626 | 909,439 |
Real estate loans | Multi-family residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Multi-family residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Multi-family residential | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Multi-family residential | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Land development and construction loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 278,688 | 326,644 |
Real estate loans | Land development and construction loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 268,733 | 326,644 |
Real estate loans | Land development and construction loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,955 | 0 |
Real estate loans | Land development and construction loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Land development and construction loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Land development and construction loans | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,972,116 | 3,045,439 |
Real estate loans | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,950,139 | 3,038,656 |
Real estate loans | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 19,279 | 6,561 |
Real estate loans | Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 762 | 222 |
Real estate loans | Commercial real estate | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,936 | 0 |
Real estate loans | Commercial real estate | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Single-family residential | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 539,102 | 533,481 |
Real estate loans | Single-family residential | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 531,811 | 526,373 |
Real estate loans | Single-family residential | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Single-family residential | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7,291 | 7,108 |
Real estate loans | Single-family residential | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Single-family residential | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 894,060 | 777,022 |
Real estate loans | Owner occupied | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 871,682 | 758,552 |
Real estate loans | Owner occupied | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,138 | 9,019 |
Real estate loans | Owner occupied | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 14,240 | 9,451 |
Real estate loans | Owner occupied | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Real estate loans | Owner occupied | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,234,043 | 1,380,428 |
Commercial loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,217,399 | 1,369,434 |
Commercial loans | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 5,569 | 3,943 |
Commercial loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,406 | 6,462 |
Commercial loans | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,669 | 589 |
Commercial loans | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 16,552 | 68,965 |
Loans to financial institutions and acceptances | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 16,552 | 68,965 |
Loans to financial institutions and acceptances | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Loans to financial institutions and acceptances | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer loans and overdrafts | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 88,466 | 114,840 |
Consumer loans and overdrafts | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 88,042 | 108,778 |
Consumer loans and overdrafts | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Consumer loans and overdrafts | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 67 | 6,062 |
Consumer loans and overdrafts | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 357 | 0 |
Consumer loans and overdrafts | Loss | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 0 | $ 0 |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrual and Non-Accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 32,922 | $ 16,479 | |
Real estate loans | |||
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | 23,357 | 11,672 | |
Real estate loans | Single-family residential | |||
Accrual Loans, Loan Balance | |||
Current | 526,497 | 518,106 | $ 499,307 |
Past due, and still accruing | 5,314 | 8,686 | 8,443 |
Total Accrual Loans | $ 531,811 | $ 526,792 | $ 507,750 |
Accrued Loans, % | |||
Current loans, still accruing as a percentage of total loans | 97.67% | 97.12% | 97.38% |
Total past due loans, still accruing as a percentage of total loans | 0.98% | 1.63% | 1.64% |
Current and past due loans still accruing, as a percentage of total loans | 98.65% | 98.75% | 99.02% |
Non-Accrual Loans, Loan Balance | |||
Current | $ 3,902 | $ 1,624 | $ 2,086 |
Loan Balance | 3,389 | 5,065 | 2,918 |
Total Non-Accrual Loans | $ 7,291 | $ 6,689 | $ 5,004 |
Non-Accrual Loans, % | |||
Current nonaccrual loans as a percentage of total loans | 0.72% | 0.30% | 0.41% |
Past due non-accrual loans as a percentage of total loans | 0.63% | 0.95% | 0.57% |
Total non-accrual loans as a percentage of total loans | 1.35% | 1.25% | 0.98% |
Loan Balance | $ 539,102 | $ 533,481 | $ 512,754 |
% | 100.00% | 100.00% | 100.00% |
Real estate loans | Single-family residential | 30-59 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 4,332 | $ 7,634 | $ 6,025 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.80% | 1.43% | 1.17% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 253 | $ 276 | $ 584 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.05% | 0.05% | 0.11% |
Real estate loans | Single-family residential | 60-89 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 982 | $ 633 | $ 2,193 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.18% | 0.12% | 0.43% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 266 | $ 1,703 | $ 557 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.05% | 0.32% | 0.11% |
Real estate loans | Single-family residential | 90 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 0 | $ 419 | $ 225 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.00% | 0.08% | 0.04% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 2,870 | $ 3,086 | $ 1,777 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.53% | 0.58% | 0.35% |
Consumer loans and overdrafts | |||
Accrual Loans, Loan Balance | |||
Current | $ 87,656 | $ 113,211 | $ 130,830 |
Past due, and still accruing | 394 | 1,594 | 66 |
Total Accrual Loans | $ 88,050 | $ 114,805 | $ 130,896 |
Accrued Loans, % | |||
Current loans, still accruing as a percentage of total loans | 99.08% | 98.58% | 99.91% |
Total past due loans, still accruing as a percentage of total loans | 0.45% | 1.39% | 0.05% |
Current and past due loans still accruing, as a percentage of total loans | 99.53% | 99.97% | 99.96% |
Non-Accrual Loans, Loan Balance | |||
Current | $ 374 | $ 16 | $ 16 |
Loan Balance | 42 | 19 | 39 |
Total Non-Accrual Loans | $ 416 | $ 35 | $ 55 |
Non-Accrual Loans, % | |||
Current nonaccrual loans as a percentage of total loans | 0.42% | 0.01% | 0.01% |
Past due non-accrual loans as a percentage of total loans | 0.05% | 0.02% | 0.03% |
Total non-accrual loans as a percentage of total loans | 0.47% | 0.03% | 0.04% |
Loan Balance | $ 88,466 | $ 114,840 | $ 130,951 |
% | 100.00% | 100.00% | 100.00% |
Consumer loans and overdrafts | 30-59 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 215 | $ 466 | $ 48 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.24% | 0.41% | 0.04% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 0 | $ 8 | $ 9 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.00% | 0.01% | 0.01% |
Consumer loans and overdrafts | 60-89 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 174 | $ 243 | $ 18 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.20% | 0.21% | 0.01% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 2 | $ 0 | $ 11 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.00% | 0.00% | 0.01% |
Consumer loans and overdrafts | 90 Days Past Due | |||
Accrual Loans, Loan Balance | |||
Past Due | $ 5 | $ 885 | $ 0 |
Accrued Loans, % | |||
Past due loans, still accruing as a percentage of total loans | 0.01% | 0.77% | 0.00% |
Non-Accrual Loans, Loan Balance | |||
Total Non-Accrual Loans | $ 40 | $ 11 | $ 19 |
Non-Accrual Loans, % | |||
Total non-accrual loans as a percentage of total loans | 0.05% | 0.01% | 0.01% |
Premises and Equipment, Net - S
Premises and Equipment, Net - Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 201,048 | $ 195,734 |
Less: Accumulated depreciation and amortization | (72,224) | (72,231) |
Premises and equipment, net | 128,824 | 123,503 |
Land | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | 19,713 | 18,307 |
Buildings and improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 99,457 | 100,152 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 30 years | |
Furniture and equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 23,718 | 21,579 |
Furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 25,897 | 31,225 |
Leasehold improvements | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 22,740 | 19,301 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 5 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Work in progress | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Premises and equipment, gross | $ 9,523 | $ 5,170 |
Premises and Equipment, Net - N
Premises and Equipment, Net - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($)property | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation and amortization | $ 7,094 | $ 8,543 | $ 9,040 |
Premises and equipment original cost | 6,900 | $ 800 | 1,400 |
Effect of change | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Depreciation | 700 | ||
Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Property, at carrying value | 500 | 19,100 | |
Gains on sales of property | $ 2,800 | $ 11,300 | |
Disposed of by Sale | Florida | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of properties disposed | property | 1 | ||
Disposed of by Sale | New York | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of properties disposed | property | 1 |
Time Deposits - Narrative (Deta
Time Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Time deposits, $100,000 or more | $ 1,400 | $ 1,400 |
Time deposits, $250,000 or more | $ 733 | $ 687 |
Time deposits, average interest rate | 2.72% | 2.51% |
Time deposits, including brokered deposits, less than $100,000 | $ 662 | $ 642 |
Time Deposits Time Deposits - S
Time Deposits Time Deposits - Schedule of Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amount | ||
Maturities in year one | $ 1,568,699 | $ 1,438,565 |
Maturities in year two | 294,463 | 361,255 |
Maturities in year three | 233,227 | 168,850 |
Maturities in year four | 253,382 | 135,265 |
Maturities in year five | 261,642 | |
2024 and thereafter | 70,568 | 21,554 |
Total | $ 2,420,339 | $ 2,387,131 |
% | ||
Maturities in year one | 64.80% | 60.30% |
Maturities in year two | 12.20% | 15.10% |
Maturities in year three | 9.60% | 7.10% |
Maturities in year four | 10.50% | 5.70% |
Maturities in year five | 2.90% | 11.00% |
2024 and thereafter | 0.80% | |
Total | 100.00% | 100.00% |
Advances From the Federal Hom_3
Advances From the Federal Home Loan Bank and Other Borrowings (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Advances from Federal Home Loan Banks | $ 1,235,000,000 | $ 1,166,000,000 |
Stock held of FHLB | 60,000,000 | 57,000,000 |
Other borrowings | 0 | 0 |
Federal Home Loan Bank, Advances, Callable Option | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Advances from Federal Home Loan Banks | $ 530,000,000 | 0 |
Minimum | Federal Home Loan Bank, Advances, Callable Option | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Interest rate | 0.71% | |
Maximum | Federal Home Loan Bank, Advances, Callable Option | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Interest rate | 0.97% | |
3-month LIBOR | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Maturities in in next twelve months | $ 135,000,000 | 160,000,000 |
Maturities in year two | 210,000,000 | 306,000,000 |
Maturities in year three | 120,000,000 | 210,000,000 |
Maturities in year four | $ 620,000,000 | 120,000,000 |
In year five and after and after | 90,000,000 | |
3-month LIBOR | Minimum | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Interest Rate in next twelve months | 1.80% | |
Interest Rate in year two | 1.50% | |
Interest Rate in year three | 1.75% | |
Interest Rate in year four | 2.48% | |
Interest Rate in year five and after | 0.71% | |
3-month LIBOR | Maximum | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Interest Rate in next twelve months | 3.86% | |
Interest Rate in year two | 2.74% | |
Interest Rate in year three | 3.08% | |
Interest Rate in year four | 2.80% | |
Interest Rate in year five and after | 3.23% | |
Floating Rates | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Maturities in in next twelve months | $ 150,000,000 | 280,000,000 |
Maturities in year two | $ 0 | |
Floating Rates | Minimum | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Interest Rate in next twelve months | 2.40% | |
Interest Rate in year two | 1.84% | |
Floating Rates | Maximum | ||
Federal Home Loan Bank, Advances by Interest Rate Type, by Maturity [Abstract] | ||
Interest Rate in next twelve months | 2.82% | |
Interest Rate in year two | 2.03% |
Junior Subordinated Debenture_3
Junior Subordinated Debentures Held by Trust Subsidiaries - Narrative (Details) $ in Millions | Jan. 30, 2020USD ($) | Sep. 07, 2019USD ($) | Jul. 31, 2019USD ($) | Dec. 31, 2019USD ($)subsidiarypayment | Dec. 31, 2018subsidiarypayment |
Debt Instrument [Line Items] | |||||
Number of trust subsidiaries | subsidiary | 6 | 8 | |||
Trust Redemption | |||||
Debt Instrument [Line Items] | |||||
Decrease in cash and cash equivalents | $ 23.8 | ||||
Decrease in financing liabilities | 25.9 | ||||
Decrease in other assets | 2.4 | ||||
Premium paid to security holders | 0.3 | ||||
Decrease in Company’s Tier 1 equity capital | $ 23.5 | ||||
Junior Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Period of deferred payments of interest | 5 years | ||||
Number of interest payments deferred | payment | 0 | 0 | |||
Junior Subordinated Debt | Capital Trust III | |||||
Debt Instrument [Line Items] | |||||
Preferred stock, redemption amount | $ 10.4 | ||||
Junior Subordinated Debt | Statutory Trust II | |||||
Debt Instrument [Line Items] | |||||
Preferred stock, redemption amount | $ 15.5 | ||||
10.18% Trust Preferred Securities | |||||
Debt Instrument [Line Items] | |||||
Preferred stock, redemption amount | $ 10 | ||||
Interest rate, stated percentage | 10.18% | ||||
Contractual call price | 101.018% | ||||
10.60% Trust Preferred Securities | |||||
Debt Instrument [Line Items] | |||||
Preferred stock, redemption amount | $ 15 | ||||
Interest rate, stated percentage | 10.60% | ||||
Contractual call price | 100.53% | ||||
8.90% Trust Preferred Securities | Subsequent Event | |||||
Debt Instrument [Line Items] | |||||
Preferred stock, redemption amount | $ 26.8 | ||||
Interest rate, stated percentage | 8.90% | ||||
Contractual call price | 100.00% |
Junior Subordinated Debenture_4
Junior Subordinated Debentures Held by Trust Subsidiaries - Summary of Junior Subordinated Debentures (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | $ 89,080 | $ 114,080 |
Principal Amount of Debenture Issued to Trust | 92,246 | 118,110 |
Commercebank Capital Trust I | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2028 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 28,068 | 28,068 |
Annual Rate of Trust Preferred Securities and Debentures | 8.90% | |
Commercebank Statutory Trust II | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2030 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 0 | 15,464 |
Annual Rate of Trust Preferred Securities and Debentures | 10.60% | |
Commercebank Capital Trust III | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2031 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 0 | 10,400 |
Annual Rate of Trust Preferred Securities and Debentures | 10.18% | |
Commercebank Capital Trust VI | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 9,537 | 9,537 |
Commercebank Capital Trust VI | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 3.35% | |
Commercebank Capital Trust VII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 8,248 | 8,248 |
Commercebank Capital Trust VII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2033 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 3.25% | |
Commercebank Capital Trust VIII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2034 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 5,155 | 5,155 |
Commercebank Capital Trust VIII | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2034 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 2.85% | |
Commercebank Capital Trust IX | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2038 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 25,774 | 25,774 |
Commercebank Capital Trust IX | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2038 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.75% | |
Commercebank Capital Trust X | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2036 | ||
Debt Instrument [Line Items] | ||
Principal Amount of Debenture Issued to Trust | $ 15,464 | 15,464 |
Commercebank Capital Trust X | Junior Subordinated Debt | Junior Subordinated Notes, Maturing 2036 | 3-month LIBOR | ||
Debt Instrument [Line Items] | ||
Variable rate | 1.78% | |
Commercebank Capital Trust I | Junior Subordinated Notes, Maturing 2028 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | $ 26,830 | 26,830 |
Commercebank Statutory Trust II | Junior Subordinated Notes, Maturing 2030 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 0 | 15,000 |
Commercebank Capital Trust III | Junior Subordinated Notes, Maturing 2031 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 0 | 10,000 |
Commercebank Capital Trust VI | Junior Subordinated Notes, Maturing 2033 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 9,250 | 9,250 |
Commercebank Capital Trust VII | Junior Subordinated Notes, Maturing 2033 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 8,000 | 8,000 |
Commercebank Capital Trust VIII | Junior Subordinated Notes, Maturing 2034 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 5,000 | 5,000 |
Commercebank Capital Trust IX | Junior Subordinated Notes, Maturing 2038 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | 25,000 | 25,000 |
Commercebank Capital Trust X | Junior Subordinated Notes, Maturing 2036 | ||
Debt Instrument [Line Items] | ||
Amount of Trust Preferred Securities Issued by Trust | $ 15,000 | $ 15,000 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | $ 12,097 | $ 11,491 |
Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 11,809 | 2,388 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 301 | 9,386 |
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 0 | 283 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 11,763 | 1,420 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 11,763 | 1,420 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 11,236 | 1,420 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 527 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Third Party Broker | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 527 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Third Party Broker | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 11,236 | 1,420 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 33 | 685 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 46 | 685 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Customers | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 0 | 0 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Customers | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | 46 | 685 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Third Party Broker | Other Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset | 33 | 685 |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Third Party Broker | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 0 | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) | 2 Months Ended | 12 Months Ended | |
Mar. 31, 2019instrument | Dec. 31, 2019USD ($)instrument | Dec. 31, 2018USD ($)instrument | |
Derivatives, Fair Value [Line Items] | |||
Derivative, amount of hedged item | $ 64,200,000 | ||
Hedge ineffectiveness gain (loss) | 0 | $ 0 | |
Reduction of interest expense on FHLB advances | $ 1,200,000 | ||
Derivatives Designated as Hedging Instruments | Federal Home Loan Bank Advances | |||
Derivatives, Fair Value [Line Items] | |||
Federal Home Loan Bank, average floating rate | $ 280,000,000 | ||
Derivatives Designated as Hedging Instruments | Federal Home Loan Bank Advances | Maximum | |||
Derivatives, Fair Value [Line Items] | |||
Average remaining maturity | 1 year | ||
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | instrument | 5 | 16 | |
Notional amount | $ 64,200,000 | $ 280,000,000 | |
Number of instruments terminated | instrument | 16 | ||
Unrealized gain, net | $ 8,900,000 | ||
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Maximum | |||
Derivatives, Fair Value [Line Items] | |||
Average remaining maturity | 8 years | ||
Term of contract | 7 years | ||
Derivatives Designated as Hedging Instruments | Interest Rate Swap Contracts | Minimum | |||
Derivatives, Fair Value [Line Items] | |||
Average remaining maturity | 1 year | ||
Term of contract | 1 month | ||
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Customers | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | instrument | 49 | 8 | |
Notional amount | $ 405,200,000 | $ 80,400,000 | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Maximum | Customers | |||
Derivatives, Fair Value [Line Items] | |||
Average remaining maturity | 10 years | 10 years | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Swap Contracts | Minimum | Customers | |||
Derivatives, Fair Value [Line Items] | |||
Average remaining maturity | 4 years | 5 years | |
Derivatives Not Designated as Hedging Instruments | Credit Risk Contract | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | instrument | 3 | ||
Notional amount | $ 50,200,000 | ||
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Customers | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | instrument | 16 | 16 | |
Notional amount | $ 315,200,000 | $ 323,700,000 | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Third Party Broker | |||
Derivatives, Fair Value [Line Items] | |||
Number of instruments held | instrument | 13 | 16 | |
Notional amount | $ 234,100,000 | $ 323,700,000 | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Maximum | Third Party Broker | |||
Derivatives, Fair Value [Line Items] | |||
Average remaining maturity | 4 years | 5 years | |
Derivatives Not Designated as Hedging Instruments | Interest Rate Cap Contracts | Minimum | Third Party Broker | |||
Derivatives, Fair Value [Line Items] | |||
Average remaining maturity | 1 year | 1 year |
Incentive Compensation and Be_3
Incentive Compensation and Benefit Plans (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 07, 2019 | Jun. 04, 2019 | Jan. 22, 2019 | Dec. 21, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 12, 2018 |
Defined Contribution Plan Disclosure [Line Items] | |||||||
Employer matching contribution, percent of match | 100.00% | ||||||
Employer matching, maximum annual employee salary, matched | 5.00% | ||||||
Employee service requirements for plan participation | 3 months | ||||||
Contributions by employer | $ 3.7 | $ 4.7 | |||||
Partially compensated plan participants | $ 1.2 | ||||||
Restricted Stock | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Grants in period (in shares) | 3,882 | ||||||
Award vesting period | 3 years | ||||||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 17.42 | ||||||
Restricted Stock Units (RSUs) | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Grants in period (in shares) | 3,439 | ||||||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 18.17 | ||||||
Restricted Stock Units (RSUs) | Non-employee Director | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Grants in period (in shares) | 86,535 | ||||||
Award vesting period | 3 years | ||||||
Share-based compensation expense | $ 0.8 | ||||||
Unearned deferred compensation expense | $ 0.3 | ||||||
Unearned deferred compensation expense, weighted average period | 1 year 7 months 6 days | ||||||
Class A common stock | Restricted Stock | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Grants in period (in shares) | 2,583 | 1,299 | 736,839 | ||||
Award vesting period | 3 years | 3 years | |||||
Grants in period, weighted average grant date fair value (in dollars per share) | $ 19.35 | $ 13.58 | $ 13.45 | ||||
Share-based compensation expense | $ 5.9 | $ 0.2 | |||||
Unearned deferred compensation expense | $ 3.9 | ||||||
Unearned deferred compensation expense, weighted average period | 1 year 7 months 6 days | ||||||
Class A common stock | Restricted Stock Units (RSUs) | Non-employee Director | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Shares settled in common shares | 3,439 | 57,690 | |||||
Shares settled in cash upon vesting | 28,845 | ||||||
2018 Equity Plan | Class A common stock | |||||||
Defined Contribution Plan Disclosure [Line Items] | |||||||
Shares reserved for future issuance (in shares) | 3,333,333 |
Incentive Compensation and Be_4
Incentive Compensation and Benefit Plans - Restricted Stock (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Number of restricted shares (in shares) | |
Non-vested shares, beginning of year (in shares) | shares | 736,839 |
Grants in period (in shares) | shares | 3,882 |
Vested (in shares) | shares | (245,590) |
Forfeited (in shares) | shares | 0 |
Non-vested shares, end of year (in shares) | shares | 495,131 |
Weighted-average grant date fair value (in dollars per share) | |
Non-vested shares, beginning of year (in dollars per share) | $ / shares | $ 13.45 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 17.42 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 13.45 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Non-vested shares, end of year (in dollars per share) | $ / shares | $ 13.48 |
Incentive Compensation and Be_5
Incentive Compensation and Benefit Plans - RSUs (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Stock-settled RSUs | |
Nonvested Restricted Stock Unit Activity | |
Non-vested shares, beginning of year (in shares) | shares | 57,690 |
Grants in period (in shares) | shares | 3,439 |
Vested (in shares) | shares | (16,025) |
Forfeited (in shares) | shares | (9,615) |
Non-vested shares, end of year (in shares) | shares | 35,489 |
Weighted-average grant date fair value (in dollars per share) | |
Non-vested shares, beginning of year (in dollars per share) | $ / shares | $ 13.45 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 18.17 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 13.45 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 13.45 |
Non-vested shares, end of year (in dollars per share) | $ / shares | $ 13.91 |
Cash-settled RSUs | |
Nonvested Restricted Stock Unit Activity | |
Non-vested shares, beginning of year (in shares) | shares | 28,845 |
Grants in period (in shares) | shares | 0 |
Vested (in shares) | shares | (9,615) |
Forfeited (in shares) | shares | 0 |
Non-vested shares, end of year (in shares) | shares | 19,230 |
Weighted-average grant date fair value (in dollars per share) | |
Non-vested shares, beginning of year (in dollars per share) | $ / shares | $ 13.45 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 13.45 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 0 |
Non-vested shares, end of year (in dollars per share) | $ / shares | $ 13.45 |
Restricted Stock Units (RSUs) | |
Nonvested Restricted Stock Unit Activity | |
Non-vested shares, beginning of year (in shares) | shares | 86,535 |
Grants in period (in shares) | shares | 3,439 |
Vested (in shares) | shares | (25,640) |
Forfeited (in shares) | shares | (9,615) |
Non-vested shares, end of year (in shares) | shares | 54,719 |
Weighted-average grant date fair value (in dollars per share) | |
Non-vested shares, beginning of year (in dollars per share) | $ / shares | $ 13.45 |
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares | 18.17 |
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares | 13.45 |
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares | 13.45 |
Non-vested shares, end of year (in dollars per share) | $ / shares | $ 13.75 |
Income Taxes - Components (Deta
Income Taxes - Components (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current tax expense: | |||
Federal | $ 9,748 | $ 7,298 | $ 19,194 |
State | 2,279 | 1,964 | 1,763 |
Impact of lower rate under the 2017 Tax Act - | |||
Remeasurement of net deferred tax assets, other than balances corresponding to items in AOCI | 0 | 0 | 8,470 |
Remeasurement of net deferred tax assets corresponding to items in AOCI | 0 | 0 | 1,094 |
Deferred tax expense | 670 | 2,471 | 3,471 |
Income tax expense | $ 12,697 | $ 11,733 | $ 33,992 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Change in tax rate, income tax expense | $ 9.6 | ||
Net operating loss | $ 161.8 | $ 151.9 | |
Deferred tax assets, operating loss carryforwards | $ 7 | $ 6.6 |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amount | |||
Tax expense calculated at the statutory federal income tax rate | $ 13,447 | $ 12,089 | $ 26,967 |
Remeasurement of net deferred tax assets | 0 | 0 | 9,564 |
Non-taxable interest income | (1,132) | (1,507) | (1,643) |
Non-taxable BOLI income | (1,199) | (1,223) | (1,910) |
Stock-based compensation | (454) | 0 | 0 |
Non-deductible Spin-off costs | 0 | 1,711 | 0 |
Disallowed interest expense allocable to tax exempt securities and other expenses | 624 | 627 | 577 |
State and city income taxes, net of federal income tax benefit | 1,800 | (131) | 1,146 |
Other, net | (389) | 167 | (709) |
Income tax expense | $ 12,697 | $ 11,733 | $ 33,992 |
% | |||
Tax expense calculated at the statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Remeasurement of net deferred tax assets | 0 | 0 | 0.1241 |
Non-taxable interest income | (1.77%) | (2.62%) | (2.13%) |
Non-taxable BOLI income | (1.87%) | (2.12%) | (2.48%) |
Stock-based compensation | (0.71%) | 0.00% | 0.00% |
Non-deductible Spin-off costs | 0.00% | 2.97% | 0.00% |
Disallowed interest expense allocable to tax exempt securities and other expenses | 0.97% | 1.09% | 0.75% |
State and city income taxes, net of federal income tax benefit | 2.81% | (0.23%) | 1.49% |
Other, net | (0.60%) | 0.29% | (0.92%) |
Income tax expense | 19.83% | 20.38% | 44.12% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Provision for loan losses | $ 11,487 | $ 13,581 |
Net unrealized (gains) losses in other comprehensive income | (4,282) | |
Net unrealized (gains) losses in other comprehensive income | 5,878 | |
Deferred compensation expense | 3,457 | 3,489 |
Stock-based compensation expense | 769 | 0 |
Interest income on nonaccrual loans | 660 | 341 |
Goodwill amortization | (4,293) | (3,979) |
Depreciation and amortization | (3,881) | (3,934) |
Other | 1,563 | 934 |
Net deferred tax assets | $ 5,480 | $ 16,310 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (“AOCI/AOCL”) - Componenets of AOCL (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | $ 17,516 | $ (24,042) |
Tax Effect | (4,282) | 5,878 |
Net of Tax Amount | 13,234 | (18,164) |
Unrealized gains (losses) on available for sale securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | 9,563 | (33,145) |
Tax Effect | (2,338) | 8,104 |
Net of Tax Amount | 7,225 | (25,041) |
Unrealized gains on interest rate swaps designated as cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before Tax Amount | 7,953 | 9,103 |
Tax Effect | (1,944) | (2,226) |
Net of Tax Amount | $ 6,009 | $ 6,877 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (“AOCI/AOCL”) - Components of Other Comprehensive Loss (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Before Tax Amount | |||
Total other comprehensive income | $ 41,558,000 | $ (16,230,000) | $ 8,769,000 |
Tax Effect | |||
Total other comprehensive income | (10,160,000) | 4,199,000 | (4,207,000) |
Net of Tax Amount | |||
Change in fair value arising during the period | 32,810,000 | (15,265,000) | 3,577,000 |
Cumulative effect of change in accounting principle | 872,000 | 0 | 0 |
Reclassification adjustment for net gains included in net income | (2,571,000) | 571,000 | 833,000 |
Change in fair value arising during the period | 287,000 | 2,663,000 | 152,000 |
Other comprehensive income (loss) | 31,398,000 | (12,031,000) | 4,562,000 |
Unrealized gains on available for sale securities: | |||
Before Tax Amount | |||
Change in fair value arising during the period | 43,427,000 | (20,730,000) | 6,875,000 |
Cumulative effect of change in accounting principle | 1,155,000 | ||
Reclassification adjustment for net gains included in net income | (1,874,000) | 999,000 | 1,601,000 |
Total other comprehensive income | 42,708,000 | (19,731,000) | |
Tax Effect | |||
Change in fair value arising during the period | 10,617,000 | (5,465,000) | 3,298,000 |
Cumulative effect of change in accounting principle | (283,000) | ||
Reclassification adjustment for net gains included in net income | 458,000 | (244,000) | (768,000) |
Total other comprehensive income | (10,442,000) | 5,221,000 | |
Net of Tax Amount | |||
Change in fair value arising during the period | 32,810,000 | (15,265,000) | 3,577,000 |
Cumulative effect of change in accounting principle | 872,000 | ||
Reclassification adjustment for net gains included in net income | (1,416,000) | 755,000 | 833,000 |
Other comprehensive income (loss) | 32,266,000 | (14,510,000) | |
Unrealized gains on interest rate swaps designated as cash flow hedges: | |||
Before Tax Amount | |||
Reclassification adjustment for net gains included in net income | (1,529,000) | (243,000) | |
Change in fair value arising during the period | 379,000 | 3,744,000 | 293,000 |
Total other comprehensive income | (1,150,000) | 3,501,000 | |
Tax Effect | |||
Reclassification adjustment for net gains included in net income | 374,000 | 59,000 | |
Change in fair value arising during the period | (92,000) | (1,081,000) | (141,000) |
Total other comprehensive income | 282,000 | (1,022,000) | |
Net of Tax Amount | |||
Reclassification adjustment for net gains included in net income | (1,155,000) | (184,000) | |
Change in fair value arising during the period | 287,000 | 2,663,000 | $ 152,000 |
Other comprehensive income (loss) | $ (868,000) | $ 2,479,000 |
Related Party Transactions - Na
Related Party Transactions - Narrative (Details) - USD ($) | Mar. 13, 2018 | Feb. 15, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 04, 2020 | Dec. 28, 2018 |
Related Party Transaction [Line Items] | |||||||
Percent of Common Stock Owned by Holders | 5.00% | ||||||
Loans issued to related parties | $ 3,900,000 | $ 5,600,000 | |||||
Interest income, related party | 200,000 | 200,000 | |||||
Participating mortgage loans | 0 | 10,000,000 | |||||
Participating mortgage loans, gain (loss) | 0 | 0 | |||||
Junior subordinated debentures held by trust subsidiaries | 92,246,000 | 118,110,000 | |||||
Dividend paid | $ 40,000,000 | $ 0 | $ 40,000,000 | $ 0 | |||
Dividends, declared (in dollars per share) | $ 0.94 | ||||||
Junior Subordinated Debt | Subsequent Event | |||||||
Related Party Transaction [Line Items] | |||||||
Extinguishment of debt | $ 2,100,000 | ||||||
Former Parent | |||||||
Related Party Transaction [Line Items] | |||||||
Term of agreement | 2 years | ||||||
Mercantil Servicios Financieros, C.A. (MSF) | |||||||
Related Party Transaction [Line Items] | |||||||
Term of agreement | 18 months | ||||||
Due to related parties | $ 400,000 | ||||||
Junior subordinated debentures held by trust subsidiaries | $ 3,200,000 | ||||||
Mercantil Servicios Financieros, C.A. (MSF) | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Percent of shares outstanding owned | 5.00% | ||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class B common stock | Maximum | |||||||
Related Party Transaction [Line Items] | |||||||
Percent of shares outstanding owned | 5.00% | ||||||
Mercantil Bank Holding Corporation | Subsidiary of Common Parent | |||||||
Related Party Transaction [Line Items] | |||||||
Dividends | $ 19,800,000 | ||||||
Sale of membership interest | 8,500,000 | ||||||
Cash | 1,000,000 | ||||||
Mercantil Bank Holding Corporation | Subsidiary of Common Parent | Aircraft | |||||||
Related Party Transaction [Line Items] | |||||||
Assets | $ 7,500,000 |
Related Party Transactions - Ba
Related Party Transactions - Balance Sheet Information (Details) - Subsidiary of Common Parent - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Liabilities [Abstract] | ||
Total due to related parties | $ 13,800 | $ 14,826 |
Demand deposits, noninterest bearing | ||
Liabilities [Abstract] | ||
Due to related parties | 4,007 | 9,447 |
Demand deposits, interest bearing | ||
Liabilities [Abstract] | ||
Due to related parties | 3,457 | 3,721 |
Money market | ||
Liabilities [Abstract] | ||
Due to related parties | 1,090 | 308 |
Time deposits and accounts payable | ||
Liabilities [Abstract] | ||
Due to related parties | $ 5,246 | $ 1,350 |
Related Party Transactions - Su
Related Party Transactions - Summary of Income and Expenses (Details) - Subsidiary of Common Parent - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income | |||
Revenue from related parties | $ 955 | $ 2,511 | $ 3,593 |
Expenses | |||
Expenses from transactions with related parties | 535 | 749 | 387 |
Revenue (expenses) from related parties | 420 | 1,762 | 3,206 |
Data processing and other services | |||
Income | |||
Revenue from related parties | 955 | 2,168 | 1,532 |
Rental income from operating lease | |||
Income | |||
Revenue from related parties | 0 | 248 | 1,971 |
Service charges | |||
Income | |||
Revenue from related parties | 0 | 95 | 90 |
Interest expense | |||
Expenses | |||
Expenses from transactions with related parties | 34 | 126 | 85 |
Fees and other expenses | |||
Expenses | |||
Expenses from transactions with related parties | $ 501 | $ 623 | $ 302 |
Related Party Transactions - Th
Related Party Transactions - The Cayman Bank Acquisition (Details) - USD ($) $ in Thousands | Nov. 20, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Combination, Separately Recognized Transactions [Line Items] | |||
Goodwill | $ 19,506 | $ 19,193 | |
Cayman Bank | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Cash paid | $ 15,000 | ||
Premium | 885 | ||
Cash and due from banks | 600 | ||
Available for sale securities | 27,900 | ||
Time deposits | 14,400 | ||
Goodwill | 300 | ||
Identifiable intangible assets | $ 500 | ||
Cayman Bank | Customer Relationships | |||
Business Combination, Separately Recognized Transactions [Line Items] | |||
Identifiable intangible assets, useful life | 14 years |
Stockholders_ Equity - Narrativ
Stockholders’ Equity - Narrative (Details) | Feb. 21, 2020USD ($)$ / sharesshares | Mar. 07, 2019USD ($)$ / sharesshares | Feb. 28, 2019shares | Feb. 01, 2019shares | Jan. 23, 2019USD ($)$ / sharesshares | Dec. 28, 2018USD ($)$ / sharesshares | Dec. 21, 2018USD ($)$ / sharesshares | Oct. 23, 2018shares | Mar. 13, 2018USD ($)$ / shares | Feb. 28, 2019USD ($) | Dec. 31, 2018shares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 27, 2018shares | Feb. 06, 2018shares | Dec. 31, 2016shares |
Class of Stock [Line Items] | |||||||||||||||||
Common and preferred stock, shares authorized (in shares) | 550,000,000 | ||||||||||||||||
Stock split, conversion ratio | 0.3333 | ||||||||||||||||
Dividend paid | $ | $ 40,000,000 | $ 0 | $ 40,000,000 | $ 0 | |||||||||||||
Dividends, declared (in dollars per share) | $ / shares | $ 0.94 | ||||||||||||||||
2018 Equity Plan | Restricted Stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Stock issued during period (in shares) | 736,839 | ||||||||||||||||
Class A common stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares issued (in shares) | 24,737,470 | 26,851,832 | 28,927,576 | 26,851,832 | 74,212,408 | ||||||||||||
Common stock, shares outstanding (in shares) | 24,737,470 | 26,851,832 | 28,927,576 | 26,851,832 | |||||||||||||
Class A common stock | Common Stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares outstanding (in shares) | 26,851,832 | 28,927,576 | 26,851,832 | 24,737,470 | 24,737,470 | ||||||||||||
Stock issued during period (in shares) | 2,132,865 | 1,377,523 | |||||||||||||||
Class A common stock | Common Stock | IPO | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Number of shares issued in transaction (in shares) | 6,300,000 | ||||||||||||||||
Price per share (in dollars per share) | $ / shares | $ 13 | ||||||||||||||||
Class A common stock | Common Stock | Private Placement | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Number of shares issued in transaction (in shares) | 1,750,000 | 153,846 | |||||||||||||||
Consideration received on transaction | $ | $ 26,700,000 | ||||||||||||||||
Class A common stock | Previously Reported | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares issued (in shares) | 74,212,408 | 74,212,408 | |||||||||||||||
Common stock, shares outstanding (in shares) | 74,212,408 | ||||||||||||||||
Class B common stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares issued (in shares) | 17,751,053 | 17,751,053 | 17,751,053 | 53,253,157 | |||||||||||||
Common stock, shares outstanding (in shares) | 17,751,053 | 16,330,917 | 14,218,596 | 16,330,917 | |||||||||||||
Treasury stock (in shares) | 1,420,136 | 3,532,457 | 1,420,136 | ||||||||||||||
Class B common stock | Common Stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares outstanding (in shares) | 16,330,917 | 14,218,596 | 16,330,917 | 17,751,053 | 17,751,053 | ||||||||||||
Number of shares authorized to be repurchased (in shares) | 3,532,457 | ||||||||||||||||
Treasury stock, acquired (in shares) | 2,112,321 | 1,420,136 | 1,400,000 | ||||||||||||||
Treasury stock acquired (in dollars per share) | $ / shares | $ 13.48 | $ 12.61 | |||||||||||||||
Treasury stock acquired | $ | $ 28,500,000 | $ 17,900,000 | |||||||||||||||
Treasury stock (in shares) | 2,112,321 | ||||||||||||||||
Class B common stock | Common Stock | Subsequent Event | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Treasury stock, acquired (in shares) | 932,459 | ||||||||||||||||
Treasury stock acquired (in dollars per share) | $ / shares | $ 16 | ||||||||||||||||
Treasury stock acquired | $ | $ 14,900,000 | ||||||||||||||||
Class B common stock | Previously Reported | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, shares issued (in shares) | 53,253,157 | 53,253,157 | |||||||||||||||
Common stock, shares outstanding (in shares) | 53,253,157 | ||||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Percent of common stock, outstanding exchanged (in shares) | 100.00% | ||||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class A common stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, exchanged (in shares) | 298,570,328 | ||||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class A common stock | Common Stock | IPO | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Number of shares issued in transaction (in shares) | 4,922,477 | ||||||||||||||||
Consideration received on transaction | $ | $ 0 | ||||||||||||||||
Mercantil Servicios Financieros, C.A. (MSF) | Class B common stock | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Common stock, exchanged (in shares) | 215,188,764 | ||||||||||||||||
Mercantil Bank Holding Corporation | Class A common stock | Common Stock | IPO | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Number of shares issued in transaction (in shares) | 1,377,523 | ||||||||||||||||
Consideration received on transaction | $ | $ 17,900,000 | ||||||||||||||||
Underwriters | Class A common stock | Common Stock | IPO | |||||||||||||||||
Class of Stock [Line Items] | |||||||||||||||||
Number of shares issued in transaction (in shares) | 229,019 | 945,000 | |||||||||||||||
Price per share (in dollars per share) | $ / shares | $ 13 | ||||||||||||||||
Period in force | 30 days | ||||||||||||||||
Consideration received on transaction | $ | $ 3,000,000 |
Stockholders_ Equity - Schedule
Stockholders’ Equity - Schedule of Shares (Details) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 500,000,000 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.1 | |
Common and preferred stock, shares authorized (in shares) | 550,000,000 | |
Class A common stock | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, par value (in dollars per share) | $ 0.1 | $ 0.10 |
Class B common stock | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense | $ 5.5 | $ 6.4 | $ 6 |
Commitments and Contingencies_2
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 6,268 |
2021 | 6,007 |
2022 | 5,428 |
2023 | 5,110 |
2024 | 5,132 |
Thereafter | 38,050 |
Total future payments, under operating leases | $ 65,995 |
Commitments and Contingencies_3
Commitments and Contingencies - Summary of Off-Balance Sheet Credit Risk (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | $ 837,794 |
Commitments to extend credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 820,380 |
Standby letters of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | 16,699 |
Commercial letters of credit | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Approximate Contract Amount | $ 715 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Securities available for sale | ||
Securities available for sale | $ 1,568,752 | $ 1,586,051 |
Equity securities with readily determinable fair values not held for trading | 23,848 | 0 |
Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 1,568,752 | 1,586,051 |
Equity securities with readily determinable fair values not held for trading | 23,848 | |
Bank owned life insurance | 211,852 | 206,141 |
Derivative instruments | 12,097 | 11,491 |
Assets, fair value | 1,816,549 | 1,803,683 |
Liabilities | ||
Derivative instruments | 11,809 | 2,388 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Equity securities with readily determinable fair values not held for trading | 0 | |
Bank owned life insurance | 0 | 0 |
Derivative instruments | 0 | 0 |
Assets, fair value | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 1,568,752 | 1,586,051 |
Equity securities with readily determinable fair values not held for trading | 23,848 | |
Bank owned life insurance | 211,852 | 206,141 |
Derivative instruments | 12,097 | 11,491 |
Assets, fair value | 1,816,549 | 1,803,683 |
Liabilities | ||
Derivative instruments | 11,809 | 2,388 |
Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Equity securities with readily determinable fair values not held for trading | 0 | |
Bank owned life insurance | 0 | 0 |
Derivative instruments | 0 | 0 |
Assets, fair value | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
U.S. government sponsored enterprise debt securities | ||
Securities available for sale | ||
Securities available for sale | 933,112 | 820,779 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 933,112 | 820,779 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 933,112 | 820,779 |
U.S. government sponsored enterprise debt securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Corporate debt securities | ||
Securities available for sale | ||
Securities available for sale | 252,836 | 352,555 |
Corporate debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 252,836 | 352,555 |
Corporate debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Corporate debt securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 252,836 | 352,555 |
Corporate debt securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
U.S. government agency debt securities | ||
Securities available for sale | ||
Securities available for sale | 228,397 | 216,985 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 228,397 | 216,985 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 228,397 | 216,985 |
U.S. government agency debt securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
U.S. treasury securities | ||
Securities available for sale | ||
Securities available for sale | 104,236 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 104,236 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 104,236 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | |
Municipal bonds | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 50,171 | 160,212 |
Municipal bonds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | 0 |
Municipal bonds | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 50,171 | 160,212 |
Municipal bonds | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | $ 0 | 0 |
Mutual funds | ||
Securities available for sale | ||
Securities available for sale | 23,110 | |
Mutual funds | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 23,110 | |
Mutual funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | |
Mutual funds | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 23,110 | |
Mutual funds | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | 0 | |
Commercial paper | ||
Securities available for sale | ||
Securities available for sale | 12,410 | |
Commercial paper | Fair Value, Measurements, Recurring | ||
Securities available for sale | ||
Securities available for sale | 12,410 | |
Commercial paper | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Securities available for sale | ||
Securities available for sale | 0 | |
Commercial paper | Fair Value, Measurements, Recurring | Third-Party Models with Observable Market Inputs (Level 2) | ||
Securities available for sale | ||
Securities available for sale | 12,410 | |
Commercial paper | Fair Value, Measurements, Recurring | Internal Models with Unobservable Market Inputs (Level 3) | ||
Securities available for sale | ||
Securities available for sale | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets (liabilities) measured at fair value | $ 0 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying Value | ||
Financial assets | ||
Loans | $ 2,819,477 | $ 2,850,015 |
Financial liabilities | ||
Time deposits | 1,745,735 | 1,745,025 |
Advances from the Federal Home Loan Bank | 1,235,000 | 1,166,000 |
Junior subordinated debentures | 92,246 | 118,110 |
Estimated Fair Value | ||
Financial assets | ||
Loans | 2,721,291 | 2,739,721 |
Financial liabilities | ||
Time deposits | 1,759,347 | 1,740,752 |
Advances from the Federal Home Loan Bank | 1,244,515 | 1,167,213 |
Junior subordinated debentures | $ 86,738 | $ 99,450 |
Regulatory Matters - Summary of
Regulatory Matters - Summary of Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Dividends | $ 15,300 | $ 82,600 |
Capital conservation buffer | 6.80% | 5.50% |
Capital [Abstract] | ||
Total capital | $ 945,310 | $ 916,663 |
Total capital ratio | 14.78% | 13.54% |
Total minimums capital required for capital adequacy | $ 511,760 | $ 541,638 |
Total minimums capital required for capital adequacy, ratio | 8.00% | 8.00% |
Total capital required to be well capitalized | $ 639,699 | $ 677,047 |
Total capital required to be well capitalized, ratio | 10.00% | 10.00% |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital | $ 891,913 | $ 859,031 |
Tier 1 capital ratio | 13.94% | 12.69% |
Tier 1 minimums capital required for capital adequacy | $ 383,820 | $ 406,228 |
Tier 1 minimums capital required for capital adequacy, ratio | 6.00% | 6.00% |
Tier 1 capital required to be well capitalized | $ 511,760 | $ 541,638 |
Tier 1 capital required to be well capitalized, ratio | 8.00% | 8.00% |
Tier One Leverage Capital [Abstract] | ||
Tier 1 leverage capital | $ 891,913 | $ 859,031 |
Tier 1 leverage ratio | 11.32% | 10.34% |
Tier 1 leverage minimums capital required for capital adequacy | $ 315,055 | $ 332,190 |
Tier 1 leverage minimums capital required for capital adequacy, ratio | 4.00% | 4.00% |
Tier 1 leverage capital required to be well capitalized | $ 393,819 | $ 415,238 |
Tier 1 leverage capital required to be well capitalized, ratio | 5.00% | 5.00% |
Common Equity Tier One Capital [Abstract] | ||
Common equity tier 1 (CET1), amount | $ 806,050 | $ 749,465 |
Common equity tier 1 (CET1) , ratio | 12.60% | 11.07% |
Common equity tier 1 (CET1) minimums capital required for capital adequacy | $ 287,865 | $ 304,671 |
Common equity tier 1 (CET1) minimums capital required for capital adequacy, ratio | 4.50% | 4.50% |
Common equity tier 1 (CET1) capital required to be well capitalized | $ 415,805 | $ 440,080 |
Common equity tier 1 (CET1) capital required to be well capitalized, ratio | 6.50% | 6.50% |
Decrease in regulatory capital | $ 23,500 | |
The Bank | ||
Capital [Abstract] | ||
Total capital | $ 841,305 | $ 883,746 |
Total capital ratio | 13.15% | 13.05% |
Total minimums capital required for capital adequacy | $ 511,638 | $ 541,564 |
Total minimums capital required for capital adequacy, ratio | 8.00% | 8.00% |
Total capital required to be well capitalized | $ 639,547 | $ 676,955 |
Total capital required to be well capitalized, ratio | 10.00% | 10.00% |
Tier One Risk Based Capital [Abstract] | ||
Tier 1 capital | $ 787,908 | $ 826,114 |
Tier 1 capital ratio | 12.32% | 12.20% |
Tier 1 minimums capital required for capital adequacy | $ 383,728 | $ 406,173 |
Tier 1 minimums capital required for capital adequacy, ratio | 6.00% | 6.00% |
Tier 1 capital required to be well capitalized | $ 511,638 | $ 541,564 |
Tier 1 capital required to be well capitalized, ratio | 8.00% | 8.00% |
Tier One Leverage Capital [Abstract] | ||
Tier 1 leverage capital | $ 787,908 | $ 826,114 |
Tier 1 leverage ratio | 10.01% | 9.96% |
Tier 1 leverage minimums capital required for capital adequacy | $ 314,800 | $ 331,829 |
Tier 1 leverage minimums capital required for capital adequacy, ratio | 4.00% | 4.00% |
Tier 1 leverage capital required to be well capitalized | $ 393,500 | $ 414,786 |
Tier 1 leverage capital required to be well capitalized, ratio | 5.00% | 5.00% |
Common Equity Tier One Capital [Abstract] | ||
Common equity tier 1 (CET1), amount | $ 787,908 | $ 826,114 |
Common equity tier 1 (CET1) , ratio | 12.32% | 12.20% |
Common equity tier 1 (CET1) minimums capital required for capital adequacy | $ 287,796 | $ 304,630 |
Common equity tier 1 (CET1) minimums capital required for capital adequacy, ratio | 4.50% | 4.50% |
Common equity tier 1 (CET1) capital required to be well capitalized | $ 415,706 | $ 440,021 |
Common equity tier 1 (CET1) capital required to be well capitalized, ratio | 6.50% | 6.50% |
Minimum | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer | 2.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||
Net income available to common stockholders | $ 51,334 | $ 45,833 | $ 43,057 |
Denominator: | |||
Basic weighted averages shares outstanding (in shares) | 42,543 | 42,487 | 42,489 |
Dilutive effect of shared-based compensation awards (in shares) | 396 | 0 | 0 |
Diluted weighted average shares outstanding (in shares) | 42,939 | 42,487 | 42,489 |
Basic earnings per common share (in dollars per share) | $ 1.21 | $ 1.08 | $ 1.01 |
Diluted earnings per common share (in dollars per share) | $ 1.20 | $ 1.08 | $ 1.01 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation | 0 | ||
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation | 530,620 | 794,529 |
Condensed Unconsolidated Hold_3
Condensed Unconsolidated Holding Companies’ Financial Statements - Balance Sheet Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and due from banks | $ 28,035 | $ 25,756 | ||
Investments in subsidiaries | 89,080 | 114,080 | ||
U.S. treasury securities | 1,739,410 | 1,741,428 | ||
Total assets | 7,985,399 | 8,124,347 | ||
Liabilities and Stockholders' Equity | ||||
Junior subordinated debentures held by trust subsidiaries | 92,246 | 118,110 | ||
Stockholders' equity | 834,701 | 747,418 | $ 753,450 | $ 704,737 |
Total liabilities and stockholders' equity | 7,985,399 | 8,124,347 | ||
Mercantil Bank Holding Corporation | Parent Company | Reportable Legal Entities | ||||
Assets | ||||
Cash and due from banks | 57,806 | 1,891 | ||
Investments in subsidiaries | 776,372 | 746,344 | ||
Other assets | 1,800 | 1,720 | ||
Total assets | 835,978 | 749,955 | ||
Liabilities and Stockholders' Equity | ||||
Other liabilities | 1,277 | 2,537 | ||
Stockholders' equity | 834,701 | 747,418 | ||
Total liabilities and stockholders' equity | 835,978 | 749,955 | ||
Mercantil Florida Bancorp, Inc | Subsidiaries | Reportable Legal Entities | ||||
Assets | ||||
Cash and due from banks | 48,868 | 32,922 | ||
Investments in subsidiaries | 815,204 | 822,940 | ||
U.S. treasury securities | 998 | 0 | ||
Other assets | 7,281 | 9,640 | ||
Total assets | 872,351 | 865,502 | ||
Liabilities and Stockholders' Equity | ||||
Junior subordinated debentures held by trust subsidiaries | 92,246 | 118,110 | ||
Other liabilities | 3,732 | 1,048 | ||
Stockholders' equity | 776,373 | 746,344 | ||
Total liabilities and stockholders' equity | $ 872,351 | $ 865,502 |
Condensed Unconsolidated Hold_4
Condensed Unconsolidated Holding Companies’ Financial Statements - Income Statement Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income | |||
Interest | $ 312,974 | $ 309,358 | $ 273,320 |
Expenses | |||
Employee benefits | 137,380 | 141,801 | 131,800 |
Interest expense | 99,886 | 90,319 | 63,610 |
(Reversal of) provision for loan losses | (3,150) | 375 | (3,490) |
Other expenses | 15,420 | 10,365 | 15,567 |
Income before income tax | 64,031 | 57,566 | 77,049 |
Income tax benefit (expense) | (12,697) | (11,733) | (33,992) |
Net income | $ 51,334 | 45,833 | 43,057 |
Mercantil Florida Bancorp, Inc | |||
Expenses | |||
Ownership percentage of subsidiary | 100.00% | ||
Mercantil Bank Holding Corporation | Parent Company | Reportable Legal Entities | |||
Income | |||
Interest | $ 40 | 9 | 3 |
Equity in earnings of subsidiary | 56,755 | 53,939 | 45,008 |
Total income | 56,795 | 53,948 | 45,011 |
Expenses | |||
Employee benefits | 0 | 0 | 350 |
Other expenses | 7,434 | 8,018 | 2,539 |
Total expense | 7,434 | 8,018 | 2,889 |
Income before income tax | 49,361 | 45,930 | 42,122 |
Income tax benefit (expense) | 1,973 | (97) | 935 |
Net income | 51,334 | 45,833 | 43,057 |
Mercantil Florida Bancorp, Inc | Subsidiaries | Reportable Legal Entities | |||
Income | |||
Interest | 152 | 182 | 85 |
Equity in earnings of subsidiary | 62,979 | 60,609 | 50,982 |
Other income | 6 | 0 | 0 |
Total income | 63,137 | 60,791 | 51,067 |
Expenses | |||
Interest expense | 7,184 | 8,086 | 7,456 |
(Reversal of) provision for loan losses | 0 | 0 | 0 |
Other expenses | 726 | 414 | 1,310 |
Total expense | 7,910 | 8,500 | 8,766 |
Income before income tax | 55,227 | 52,291 | 42,301 |
Income tax benefit (expense) | 1,528 | 1,661 | 2,726 |
Net income | $ 56,755 | $ 53,952 | $ 45,027 |
Condensed Unconsolidated Hold_5
Condensed Unconsolidated Holding Companies’ Financial Statements - Cash Flow Information (Details) - USD ($) $ in Thousands | Mar. 13, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash flows from operating activities | ||||
Net income | $ 51,334 | $ 45,833 | $ 43,057 | |
Stock-based compensation expense | 6,365 | 166 | 0 | |
Net cash provided by operating activities | 78,392 | 62,161 | 73,282 | |
Cash flows from investing activities | ||||
Dividends paid | 0 | |||
Purchases of available for sale securities | (445,892) | (216,237) | (231,675) | |
Net cash provided by investing activities | 205,843 | 206,509 | 7,567 | |
Cash flows from financing activities | ||||
Dividend paid | $ (40,000) | 0 | (40,000) | 0 |
Proceeds from common stock issued - Class A | 29,218 | 17,908 | 0 | |
Repurchase of common stock - Class B | (28,465) | (17,908) | 0 | |
Redemption of junior subordinated debentures | (25,864) | 0 | 0 | |
Net cash used in financing activities | (248,621) | (336,405) | (62,393) | |
Net increase (decrease) in cash and cash equivalents | 35,614 | (67,735) | 18,456 | |
Cash and cash equivalents | ||||
Beginning of period | 85,710 | 153,445 | 134,989 | |
End of period | 121,324 | 85,710 | 153,445 | |
Mercantil Bank Holding Corporation | Parent Company | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net income | 51,334 | 45,833 | 43,057 | |
Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries | (56,755) | (53,939) | (45,008) | |
Stock-based compensation expense | 422 | 0 | 0 | |
Net change in other assets and liabilities | (1,339) | 438 | 1,337 | |
Net cash provided by operating activities | (6,338) | (7,668) | (614) | |
Cash flows from investing activities | ||||
Cash received upon Voting Trust termination | 0 | 639 | 0 | |
Dividends received from subsidiary | 61,500 | 47,500 | 700 | |
Net cash provided by investing activities | 61,500 | 48,139 | 700 | |
Cash flows from financing activities | ||||
Dividend paid | 0 | (40,000) | 0 | |
Proceeds from common stock issued - Class A | 29,218 | 17,908 | 0 | |
Repurchase of common stock - Class B | (28,465) | (17,908) | 0 | |
Net cash used in financing activities | 753 | (40,000) | 0 | |
Net increase (decrease) in cash and cash equivalents | 55,915 | 471 | 86 | |
Cash and cash equivalents | ||||
Beginning of period | 1,891 | 1,420 | 1,334 | |
End of period | 57,806 | 1,891 | 1,420 | |
Mercantil Florida Bancorp, Inc | Subsidiaries | Reportable Legal Entities | ||||
Cash flows from operating activities | ||||
Net income | 56,755 | 53,952 | 45,027 | |
Adjustments to reconcile net income to net cash used in operating activities - Equity in earnings of subsidiaries | (60,555) | (60,609) | (50,982) | |
Net change in other assets and liabilities | 3,108 | 490 | (4) | |
Net cash provided by operating activities | (692) | (6,167) | (5,959) | |
Cash flows from investing activities | ||||
Dividends received from subsidiary | 105,000 | 47,500 | 6,000 | |
Dividends paid | (47,500) | (700) | ||
Purchases of available for sale securities | (998) | 0 | 0 | |
Net cash provided by investing activities | 104,002 | 0 | 5,300 | |
Cash flows from financing activities | ||||
Dividend paid | (61,500) | 0 | 0 | |
Redemption of junior subordinated debentures | (25,864) | 0 | 0 | |
Net cash used in financing activities | (87,364) | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 15,946 | (6,167) | (659) | |
Cash and cash equivalents | ||||
Beginning of period | 32,922 | 39,089 | 39,748 | |
End of period | $ 48,868 | $ 32,922 | $ 39,089 |