Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 24, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | SOUTHSIDE BANCSHARES INC | |
Entity Central Index Key | 705,432 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 26,286,033 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash and due from banks | $ 54,255,000 | $ 54,288,000 | |
Interest earning deposits | 144,833,000 | 26,687,000 | |
Total cash and cash equivalents | 199,088,000 | 80,975,000 | |
Securities available for sale, at estimated fair value | 1,622,128,000 | 1,460,492,000 | |
Securities held to maturity, at carrying value (estimated fair value of $814,112 and $799,763, respectively) | 775,682,000 | 784,296,000 | |
FHLB stock, at cost | 51,901,000 | 51,047,000 | |
Other investments | 5,442,000 | 5,462,000 | |
Loans held for sale | 5,301,000 | 3,811,000 | |
Loans: | |||
Loans | [1] | 2,483,641,000 | 2,431,753,000 |
Less: Allowance for loan losses | [2] | (15,993,000) | (19,736,000) |
Net Loans | 2,467,648,000 | 2,412,017,000 | |
Premises and equipment, net | 106,777,000 | 107,929,000 | |
Goodwill | 91,520,000 | 91,520,000 | |
Other intangible assets, net | 5,060,000 | 6,548,000 | |
Interest receivable | 17,458,000 | 22,700,000 | |
Deferred tax asset, net | 9,236,000 | 19,903,000 | |
Unsettled trades to sell securities | 0 | 9,343,000 | |
Bank owned life insurance | 97,002,000 | 95,080,000 | |
Other assets | 10,660,000 | 10,873,000 | |
TOTAL ASSETS | 5,464,903,000 | 5,161,996,000 | |
Deposits: | |||
Noninterest bearing | 747,270,000 | 672,470,000 | |
Interest bearing | 2,834,117,000 | 2,782,937,000 | |
Total deposits | 3,581,387,000 | 3,455,407,000 | |
Short-term obligations: | |||
Federal funds purchased and repurchase agreements | 11,516,000 | 2,429,000 | |
FHLB advances | 709,118,000 | 645,407,000 | |
Total short-term obligations | 720,634,000 | 647,836,000 | |
Long-term obligations: | |||
FHLB advances | 463,316,000 | 502,281,000 | |
Subordinated notes, net of unamortized debt issuance costs | 98,089,000 | 0 | |
Long-term debt, net of unamortized debt issuance costs | 60,235,000 | 60,231,000 | |
Total long-term obligations | 621,640,000 | 562,512,000 | |
Unsettled trades to purchase securities | 30,214,000 | 19,350,000 | |
Other liabilities | 38,468,000 | 32,829,000 | |
TOTAL LIABILITIES | 4,992,343,000 | 4,717,934,000 | |
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Note 13) | |||
Shareholders’ equity: | |||
Common stock ($1.25 par value, 40,000,000 shares authorized, 29,191,241 shares issued at September 30, 2016 and 27,865,798 shares issued at December 31, 2015) | 36,489,000 | 34,832,000 | |
Paid-in capital | 459,808,000 | 424,078,000 | |
Retained earnings | 26,420,000 | 41,527,000 | |
Treasury stock, at cost (2,913,064 at September 30, 2016 and 2,469,638 at December 31, 2015) | (47,891,000) | (37,692,000) | |
Accumulated other comprehensive income (loss) | (2,266,000) | (18,683,000) | |
TOTAL SHAREHOLDERS’ EQUITY | 472,560,000 | 444,062,000 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 5,464,903,000 | $ 5,161,996,000 | |
[1] | Includes approximately $420.4 million and $581.1 million of loans acquired with the Omni acquisition as of September 30, 2016 and December 31, 2015, respectively. | ||
[2] | The allowance for loan loss recorded on PCI loans totaled $3,000 and $629,000 as of September 30, 2016 andDecember 31, 2015, respectively. |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Held-to-maturity Securities, Other Disclosure Items [Abstract] | ||
Securities held to maturity, fair value | $ 814,112 | $ 799,763 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 29,191,241 | 27,865,798 |
Treasury stock (in shares) | 2,913,064 | 2,469,638 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Interest income | ||||
Loans | $ 25,740 | $ 23,787 | $ 79,738 | $ 71,590 |
Investment securities – taxable | 251 | 475 | 572 | 1,171 |
Investment securities – tax-exempt | 5,467 | 5,551 | 15,959 | 17,060 |
Mortgage-backed securities | 9,399 | 8,318 | 28,156 | 24,446 |
FHLB stock and other investments | 186 | 65 | 588 | 223 |
Other interest earning assets | 89 | 15 | 220 | 78 |
Total interest income | 41,132 | 38,211 | 125,233 | 114,568 |
Interest expense | ||||
Deposits | 3,604 | 2,485 | 10,375 | 7,507 |
Short-term obligations | 1,122 | 354 | 2,724 | 650 |
Long-term obligations | 2,476 | 2,089 | 7,210 | 6,434 |
Total interest expense | 7,202 | 4,928 | 20,309 | 14,591 |
Net interest income | 33,930 | 33,283 | 104,924 | 99,977 |
Provision for loan losses | 1,631 | 2,276 | 7,715 | 6,392 |
Net interest income after provision for loan losses | 32,299 | 31,007 | 97,209 | 93,585 |
Noninterest income | ||||
Deposit services | 5,335 | 5,213 | 15,519 | 15,122 |
Net gain on sale of securities available for sale | 2,343 | 875 | 5,512 | 3,456 |
Gain on sale of loans | 818 | 305 | 2,334 | 1,504 |
Trust income | 867 | 835 | 2,591 | 2,548 |
Bank owned life insurance income | 656 | 661 | 1,977 | 1,983 |
Brokerage services | 551 | 540 | 1,661 | 1,651 |
Other | 1,162 | 932 | 3,104 | 2,816 |
Total noninterest income | 11,732 | 9,361 | 32,698 | 29,080 |
Noninterest expense | ||||
Salaries and employee benefits | 15,203 | 15,733 | 47,784 | 50,801 |
Occupancy expense | 4,569 | 3,316 | 10,897 | 9,620 |
Advertising, travel & entertainment | 588 | 642 | 1,995 | 1,982 |
ATM and debit card expense | 868 | 617 | 2,316 | 2,046 |
Professional fees | 1,148 | 825 | 3,964 | 2,360 |
Software and data processing expense | 736 | 819 | 2,224 | 3,087 |
Telephone and communications | 407 | 534 | 1,359 | 1,606 |
FDIC insurance | 643 | 624 | 1,926 | 1,891 |
FHLB prepayment fees | 0 | 0 | 148 | 0 |
Other | 4,263 | 3,525 | 11,032 | 11,126 |
Total noninterest expense | 28,425 | 26,635 | 83,645 | 84,519 |
Income before income tax expense | 15,606 | 13,733 | 46,262 | 38,146 |
Income tax expense | 2,741 | 1,971 | 8,486 | 5,841 |
Net income | $ 12,865 | $ 11,762 | $ 37,776 | $ 32,305 |
Earnings per common share - basic (in dollars per share) | $ 0.49 | $ 0.44 | $ 1.43 | $ 1.21 |
Earnings per common share - diluted (in dollars per share) | 0.49 | 0.44 | 1.43 | 1.21 |
Dividends paid per common share (in dollars per share) | $ 0.24 | $ 0.23 | $ 0.71 | $ 0.69 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 12,865 | $ 11,762 | $ 37,776 | $ 32,305 |
Securities available for sale and transferred securities: | ||||
Net unrealized holding (losses) gains on available for sale securities during the period | (10,960) | 13,446 | 33,031 | 6,722 |
Change in net unrealized loss on securities transferred to held to maturity | 0 | 0 | 0 | 1,329 |
Reclassification adjustment for amortization of unrealized losses on securities transferred to held to maturity | 16 | 220 | 160 | 746 |
Reclassification adjustment for net gain on sale of available for sale securities, included in net income | (2,343) | (875) | (5,512) | (3,456) |
Derivatives: | ||||
Change in net unrealized loss on effective cash flow hedge interest rate swap derivatives | 1,070 | 0 | (5,125) | 0 |
Reclassification adjustment for net loss on interest rate swap derivatives, included in net income | 521 | 0 | 1,338 | 0 |
Pension plans: | ||||
Amortization of net actuarial loss, included in net periodic benefit cost | 458 | 691 | 1,371 | 1,836 |
Amortization of prior service credit, included in net periodic benefit cost | (10) | (4) | (6) | (12) |
Other comprehensive (loss) income, before tax | (11,248) | 13,478 | 25,257 | 7,165 |
Income tax benefit (expense) related to items of other comprehensive income (loss) | 3,937 | (4,718) | (8,840) | (2,508) |
Other comprehensive (loss) income, net of tax | (7,311) | 8,760 | 16,417 | 4,657 |
Comprehensive income | $ 5,554 | $ 20,522 | $ 54,193 | $ 36,962 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Common Stock | Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2014 | $ 425,243 | $ 33,223 | $ 389,886 | $ 55,396 | $ (37,692) | $ (15,570) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 32,305 | 32,305 | ||||
Other comprehensive income | 4,657 | 4,657 | ||||
Issuance of common stock (33,622 shares in 2016 and 33,948 shares in 2015) | 936 | 42 | 894 | |||
Stock compensation expense | 981 | 981 | ||||
Tax benefits related to stock awards | 61 | 61 | ||||
Net issuance of common stock under employee stock plans | 169 | 26 | 182 | (39) | ||
Cash dividends paid on common stock ($0.71 per share in 2016 and $0.69 per share in 2015) | (17,204) | (17,204) | ||||
Stock dividend declared | 0 | 1,512 | 31,163 | (32,675) | ||
Ending Balance at Sep. 30, 2015 | 447,148 | 34,803 | 423,167 | 37,783 | (37,692) | (10,913) |
Beginning Balance at Jun. 30, 2015 | (19,673) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 8,760 | |||||
Ending Balance at Sep. 30, 2015 | 447,148 | 34,803 | 423,167 | 37,783 | (37,692) | (10,913) |
Beginning Balance at Dec. 31, 2015 | 444,062 | 34,832 | 424,078 | 41,527 | (37,692) | (18,683) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 37,776 | 37,776 | ||||
Other comprehensive income | 16,417 | 16,417 | ||||
Issuance of common stock (33,622 shares in 2016 and 33,948 shares in 2015) | 992 | 42 | 950 | |||
Purchase of common stock (443,426 shares) | (10,199) | (10,199) | ||||
Stock compensation expense | 1,156 | 1,156 | ||||
Tax benefits related to stock awards | 79 | 79 | ||||
Net issuance of common stock under employee stock plans | 346 | 50 | 345 | (49) | ||
Cash dividends paid on common stock ($0.71 per share in 2016 and $0.69 per share in 2015) | (18,069) | (18,069) | ||||
Stock dividend declared | 0 | 1,565 | 33,200 | (34,765) | ||
Ending Balance at Sep. 30, 2016 | 472,560 | 36,489 | 459,808 | 26,420 | (47,891) | (2,266) |
Beginning Balance at Jun. 30, 2016 | 5,045 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | (7,311) | |||||
Ending Balance at Sep. 30, 2016 | $ 472,560 | $ 36,489 | $ 459,808 | $ 26,420 | $ (47,891) | $ (2,266) |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of common stock (in shares) | 33,622 | 33,948 |
Dividends paid on common stock (in dollars per shares) | $ 0.71 | $ 0.69 |
Purchase of common stock (in shares) | 443,426 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
OPERATING ACTIVITIES: | ||
Net income | $ 37,776 | $ 32,305 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and net amortization | 6,612 | 6,470 |
Securities premium amortization (discount accretion), net | 14,245 | 16,895 |
Loan (discount accretion) premium amortization, net | (2,113) | (2,065) |
Provision for loan losses | 7,715 | 6,392 |
Stock compensation expense | 1,156 | 981 |
Deferred tax expense (benefit) | 1,916 | (2,714) |
Tax benefit related to stock awards | (79) | (61) |
Net gain on sale of securities available for sale | (5,512) | (3,456) |
Net loss on premises and equipment | 235 | 211 |
Gross proceeds from sales of loans held for sale | 67,144 | 51,610 |
Gross originations of loans held for sale | (68,634) | (53,594) |
Net loss on other real estate owned | 224 | 387 |
Net gain on sale of customer receivables | (144) | 0 |
Net change in: | ||
Interest receivable | 5,242 | 5,293 |
Other assets | (2,094) | 2,121 |
Interest payable | 726 | 28 |
Other liabilities | 2,182 | (1,064) |
Net cash provided by operating activities | 66,597 | 59,739 |
Securities available for sale: | ||
Purchases | (761,900) | (697,879) |
Sales | 495,011 | 543,456 |
Maturities, calls and principal repayments | 160,676 | 226,125 |
Securities held to maturity: | ||
Purchases | (29,725) | (80,714) |
Maturities, calls and principal repayments | 22,029 | 17,994 |
Proceeds from redemption of FHLB stock | 3,644 | 8,603 |
Purchases of FHLB stock and other investments | (4,433) | (12,248) |
Net loans originated | (66,633) | (58,658) |
Proceeds from sales of customer receivables | 3,314 | 0 |
Purchases of premises and equipment | (5,189) | (2,524) |
Proceeds from sales of premises and equipment | 120 | 10 |
Proceeds from sales of other real estate owned | 1,918 | 634 |
Proceeds from sales of repossessed assets | 767 | 2,008 |
Net cash used in investing activities | (180,401) | (53,193) |
FINANCING ACTIVITIES: | ||
Net change in deposits | 126,748 | (45,588) |
Net increase (decrease) in federal funds purchased and repurchase agreements | 9,087 | (1,967) |
Proceeds from FHLB advances | 6,548,551 | 13,860,663 |
Repayment of FHLB advances | (6,523,701) | (13,816,377) |
Net proceeds from issuance of subordinated long-term debt | 98,083 | 0 |
Tax benefit related to stock awards | 79 | 61 |
Net issuance of common stock under employee stock plan | 346 | 169 |
Purchase of common stock | (10,199) | 0 |
Proceeds from the issuance of common stock | 992 | 936 |
Cash dividends paid | (18,069) | (17,204) |
Net cash provided by (used in) financing activities | 231,917 | (19,307) |
Net increase (decrease) in cash and cash equivalents | 118,113 | (12,761) |
Cash and cash equivalents at beginning of period | 80,975 | 84,655 |
Cash and cash equivalents at end of period | 199,088 | 71,894 |
SUPPLEMENTAL DISCLOSURES FOR CASH FLOW INFORMATION: | ||
Interest paid | 19,583 | 14,558 |
Income taxes paid | 5,700 | 5,250 |
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||
Loans transferred to other repossessed assets and real estate through foreclosure | 5,434 | 1,453 |
Transfer of available for sale securities to held to maturity securities | 0 | 57,724 |
Adjustment to pension liability | (1,365) | (1,824) |
5% stock dividend | 34,765 | 32,675 |
Unsettled trades to purchase securities | $ (30,214) | $ (21,783) |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) | 9 Months Ended | |
Sep. 30, 2016Rate | Sep. 30, 2015Rate | |
Statement of Cash Flows [Abstract] | ||
Stock dividend, percentage of common stock | 5.00% | 5.00% |
Summary of Significant Accounti
Summary of Significant Accounting and Reporting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Summary of Significant Accounting and Reporting Policies Basis of Presentation In this report, the words “the Company,” “we,” “us,” and “our” refer to the combined entities of Southside Bancshares, Inc. and its subsidiaries. The words “Southside” and “Southside Bancshares” refer to Southside Bancshares, Inc. The words “Southside Bank” and “the Bank” refer to Southside Bank. “Omni” refers to OmniAmerican Bancorp, Inc., a bank holding company acquired by Southside on December 17, 2014. “SFG” refers to SFG Finance, LLC (formerly Southside Financial Group, LLC), which was a wholly-owned subsidiary of the Bank that was dissolved in April 2015. The consolidated balance sheet as of September 30, 2016 , and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, cash flows and notes to the financial statements for the three- and nine- month periods ended September 30, 2016 and 2015 are unaudited; in the opinion of management, all adjustments necessary for a fair statement of such financial statements have been included. Such adjustments consisted only of normal recurring items. All significant intercompany accounts and transactions are eliminated in consolidation. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management’s estimates. These estimates are subjective in nature and involve matters of judgment. Actual amounts could differ from these estimates. Certain prior period amounts have been reclassified to conform to current year presentation. In connection with the adoption of ASU 2015-03 “Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs,” that requires unamortized debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, our consolidated balance sheet as of December 31, 2015 reflects a decrease of $80,000 in other assets and long-term debt. On May 5, 2016 , our board of directors declared a 5% stock dividend to common stock shareholders of record as of May 31, 2016 , which was paid on June 28, 2016 . All share data has been adjusted to give retroactive recognition to stock dividends. Interim results are not necessarily indicative of results for a full year. These financial statements should be read in conjunction with the financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2015 . For a description of our significant accounting and reporting policies, refer to “Note 1- Summary of Significant Accounting and Reporting Policies” in our consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2015 . The accounting and reporting policies we follow with respect to our derivative instruments and hedging activities are presented below. Derivative Financial Instruments and Hedging Activities Derivative financial instruments are carried on the consolidated balance sheets as other assets or other liabilities, as applicable, at estimated fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative financial instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further, by the type of hedging relationship. We present derivative financial instruments at fair value in the consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements; however, fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. For derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period of change. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. For derivatives designated as hedging instruments at inception, statistical regression analysis is used at inception and for each reporting period thereafter to assess whether the derivative used has been and is expected to be highly effective in offsetting changes in the fair value or cash flows of the hedged item. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Net hedge ineffectiveness or losses are recorded in “other noninterest income” on the consolidated statements of income. Further information on our derivative instruments and hedging activities is included in “Note 10 - Derivative Financial Instruments and Hedging Activities.” Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU 2016-02 will require both types of leases to be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the potential impact of the pending adoption of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. ASU 2016-09 requires that all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement and should be classified along with other income tax cash flows as an operating activity instead of a financing activity as currently required under GAAP. ASU 2016-09 also simplifies accounting for forfeitures by allowing an entity to make an entity-wide accounting policy election either to estimate the number of forfeitures expected to occur or to recognize the effects of forfeitures when they occur in compensation cost. Additionally, cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity, and to qualify for equity classification, an employer can now withhold up to the maximum statutory tax rate instead of the minimum statutory tax rate as currently required by GAAP. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. ASU 2016-09 is not expected to have a significant impact on our consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies certain aspects of ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” related to (i) identifying performance obligations and (ii) the licensing implementation guidance. ASU 2016-10 is effective concurrently with ASU 2014-09 which we are required to adopt in the first quarter of fiscal year 2018. Early adoption is permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through cumulative adjustment. We are currently evaluating the potential impact of the pending adoption of ASU 2016-10 on our consolidated financial statements and we have not yet identified which transition method will be applied upon adoption. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 clarifies ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” guidance on (i) assessing collectability, (ii) presenting sales tax, (iii) measuring non-cash consideration and (iv) certain transition matters. ASU 2016-12 is effective concurrently with ASU 2014-09 which we are required to adopt in the first quarter of fiscal year 2018. Early adoption is permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through cumulative adjustment. We are currently evaluating the potential impact of the pending adoption of ASU 2016-12 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. ASU 2016-13 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. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance requires companies to apply the requirements in the year of adoption through cumulative adjustment with some aspects of the update requiring a prospective transition approach. We are currently evaluating the potential impact of the pending adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 addresses eight classification issues related to the statement of cash flows: (i) debt prepayment or debt extinguishment, (ii) settlement of zero-coupon bonds, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method invitees, (vii) beneficial interest in securitizations transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented. If it is impracticable for a company to apply ASU 2016-15 retrospectively, requirements may be applied prospectively as of the earliest date practicable. We are currently evaluating the potential impact of the pending adoption of ASU 2016-15 on our consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On December 17, 2014 , we acquired 100% of the outstanding stock of OmniAmerican Bancorp, Inc. and its wholly-owned subsidiary OmniAmerican Bank (collectively, “Omni”) headquartered in Fort Worth, Texas. Omni operated 14 banking offices in Fort Worth, Texas and surrounding areas. We acquired Omni to further expand our presence in the growing Fort Worth market. The total merger consideration for the Omni merger was $298.3 million . The operations of Omni were merged into ours as of the date of the acquisition. The fair value of assets acquired, adjusted for subsequent measurement period adjustments, excluding goodwill, totaled $1.36 billion , including total loans of $763.5 million and total investment securities of $428.4 million . Total fair value of the liabilities assumed, adjusted for subsequent measurement period adjustments, totaled $1.13 billion , including deposits of $801.3 million . We recognized $69.5 million in goodwill associated with the Omni acquisition. The goodwill resulting from the acquisition represents consideration paid in excess of the net assets acquired and the value expected from the opportunities to strategically grow our franchise in the greater Fort Worth market area and to enhance our operations through customer synergies and efficiencies, thereby providing enhanced customer service. Goodwill was $91.5 million as of September 30, 2016 and December 31, 2015 and is not expected to be deductible for tax purposes. We recognized a core deposit intangible of $8.6 million in connection with the Omni acquisition, which will be amortized using an accelerated method over a 10 year period consistent with expected future cash flows. The Omni acquisition was accounted for using the purchase method of accounting and accordingly, purchased assets, including identifiable intangible assets, and assumed liabilities were recorded at their respective acquisition date fair values. For more information concerning the fair value of the assets acquired and liabilities assumed in relation to the acquisition of Omni, see “Note 2 - Acquisition” in our Annual Report on Form 10-K for the year ended December 31, 2015. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Earnings per share on a basic and diluted basis have been calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic and Diluted Earnings: Net income $ 12,865 $ 11,762 $ 37,776 $ 32,305 Basic weighted-average shares outstanding 26,262 26,632 26,314 26,611 Add: Stock awards 153 89 111 89 Diluted weighted-average shares outstanding 26,415 26,721 26,425 26,700 Basic Earnings Per Share: $ 0.49 $ 0.44 $ 1.43 $ 1.21 Diluted Earnings Per Share: $ 0.49 $ 0.44 $ 1.43 $ 1.21 For the three- and nine- month periods ended September 30, 2016 , there were approximately 3,000 and 28,000 anti-dilutive shares, respectively. For the three- and nine- month periods ended September 30, 2015 , there were approximately 62,000 and 28,000 anti-dilutive shares, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) by component are as follows (in thousands): Three Months Ended September 30, 2016 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Service (Cost) Credit Net Gain (Loss) Total Beginning balance, net of tax $ 26,389 $ (3,496 ) $ (42 ) $ (17,806 ) $ 5,045 Other comprehensive income (loss): Other comprehensive (loss) income before reclassifications (10,960 ) 1,070 — — (9,890 ) Reclassified from accumulated other comprehensive income (2,327 ) 521 (10 ) 458 (1,358 ) Income tax benefit (expense) 4,650 (557 ) 4 (160 ) 3,937 Net current-period other comprehensive income (loss), net of tax (8,637 ) 1,034 (6 ) 298 (7,311 ) Ending balance, net of tax $ 17,752 $ (2,462 ) $ (48 ) $ (17,508 ) $ (2,266 ) Nine Months Ended September 30, 2016 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Net Gain (Loss) Total Beginning balance, net of tax $ (239 ) $ — $ (44 ) $ (18,400 ) $ (18,683 ) Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications 33,031 (5,125 ) — — 27,906 Reclassified from accumulated other comprehensive income (5,352 ) 1,338 (6 ) 1,371 (2,649 ) Income tax (expense) benefit (9,688 ) 1,325 2 (479 ) (8,840 ) Net current-period other comprehensive income (loss), net of tax 17,991 (2,462 ) (4 ) 892 16,417 Ending balance, net of tax $ 17,752 $ (2,462 ) $ (48 ) $ (17,508 ) $ (2,266 ) Three Months Ended September 30, 2015 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Service (Cost) Credit Net Gain (Loss) Total Beginning balance, net of tax $ 1,396 $ — $ 2 $ (21,071 ) $ (19,673 ) Other comprehensive income (loss): Other comprehensive income before reclassifications 13,446 — — — 13,446 Reclassified from accumulated other comprehensive income (655 ) — (4 ) 691 32 Income tax (expense) benefit (4,477 ) — 1 (242 ) (4,718 ) Net current-period other comprehensive income (loss), net of tax 8,314 — (3 ) 449 8,760 Ending balance, net of tax $ 9,710 $ — $ (1 ) $ (20,622 ) $ (10,913 ) Nine Months Ended September 30, 2015 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Service (Cost) Credit Net Gain (Loss) Total Beginning balance, net of tax $ 6,238 $ — $ 7 $ (21,815 ) $ (15,570 ) Other comprehensive income (loss): Other comprehensive income before reclassifications 8,051 — — — 8,051 Reclassified from accumulated other comprehensive income (2,710 ) — (12 ) 1,836 (886 ) Income tax (expense) benefit (1,869 ) — 4 (643 ) (2,508 ) Net current-period other comprehensive income (loss), net of tax 3,472 — (8 ) 1,193 4,657 Ending balance, net of tax $ 9,710 $ — $ (1 ) $ (20,622 ) $ (10,913 ) The reclassifications out of accumulated other comprehensive income (loss) into net income are presented below (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Unrealized losses on securities transferred to held to maturity: Amortization of unrealized losses (1) $ (16 ) $ (220 ) $ (160 ) $ (746 ) Tax benefit 6 77 56 261 Net of tax (10 ) (143 ) (104 ) (485 ) Unrealized gains and losses on available for sale securities: Realized net gain on sale of securities (2) $ 2,343 $ 875 $ 5,512 $ 3,456 Tax expense (820 ) (307 ) (1,929 ) (1,210 ) Net of tax 1,523 568 3,583 2,246 Derivatives: Realized net loss on interest rate swap derivatives (3) (521 ) — (1,338 ) — Tax benefit 182 — 468 — Net of tax (339 ) — (870 ) — Amortization of pension plan: Net actuarial loss (4) $ (458 ) $ (691 ) $ (1,371 ) $ (1,836 ) Prior service credit (4) 10 4 6 12 Total before tax (448 ) (687 ) (1,365 ) (1,824 ) Tax benefit 156 241 477 639 Net of tax (292 ) (446 ) (888 ) (1,185 ) Total reclassifications for the period, net of tax $ 882 $ (21 ) $ 1,721 $ 576 (1) Included in interest income on the consolidated statements of income. (2) Listed as net gain on sale of securities available for sale on the consolidated statements of income. (3) Included in interest expense for long-term obligations on the consolidated statements of income. (4) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 8 - Employee Benefit Plans.” |
Securities
Securities | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost, gross unrealized gains and losses, carrying value, and estimated fair value of investment and mortgage-backed securities as of September 30, 2016 and December 31, 2015 are reflected in the tables below (in thousands): September 30, 2016 Recognized in OCI Not recognized in OCI Amortized Gross Unrealized Gross Unrealized Carrying Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Value Gains Losses Fair Value Investment Securities: U.S. Treasury $ 79,841 $ 109 $ 103 $ 79,847 $ — $ — $ 79,847 State and Political Subdivisions 414,383 10,299 942 423,740 — — 423,740 Other Stocks and Bonds 7,766 64 — 7,830 — — 7,830 Other Equity Securities 6,042 69 — 6,111 — — 6,111 Mortgage-backed Securities: (1) Residential 691,406 11,732 1,652 701,486 — — 701,486 Commercial 386,680 16,438 4 403,114 — — 403,114 Total $ 1,586,118 $ 38,711 $ 2,701 $ 1,622,128 $ — $ — $ 1,622,128 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 384,010 $ 3,867 $ 8,710 $ 379,167 $ 18,018 $ 1,141 $ 396,044 Mortgage-backed Securities: (1) Residential 34,045 — 39 34,006 1,971 25 35,952 Commercial 366,325 1,109 4,925 362,509 19,607 — 382,116 Total $ 784,380 $ 4,976 $ 13,674 $ 775,682 $ 39,596 $ 1,166 $ 814,112 December 31, 2015 Recognized in OCI Not recognized in OCI Amortized Gross Unrealized Gross Unrealized Carrying Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Value Gains Losses Fair Value Investment Securities: U.S. Treasury $ 103,906 $ 61 $ 380 $ 103,587 $ — $ — $ 103,587 State and Political Subdivisions 236,534 8,323 611 244,246 — — 244,246 Other Stocks and Bonds 12,772 63 45 12,790 — — 12,790 Other Equity Securities 6,052 — 36 6,016 — — 6,016 Mortgage-backed Securities: (1) Residential 580,621 9,120 1,239 588,502 — — 588,502 Commercial 512,116 466 7,231 505,351 — — 505,351 Total $ 1,452,001 $ 18,033 $ 9,542 $ 1,460,492 $ — $ — $ 1,460,492 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 389,997 $ 4,772 $ 9,273 $ 385,496 $ 13,061 $ 1,363 $ 397,194 Mortgage-backed Securities: (1) Residential 31,430 — 51 31,379 2,018 1 33,396 Commercial 371,727 1,233 5,539 367,421 4,232 2,480 369,173 Total $ 793,154 $ 6,005 $ 14,863 $ 784,296 $ 19,311 $ 3,844 $ 799,763 (1) All mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. From time to time, we may transfer securities from available for sale (“AFS”) to held to maturity (“HTM”) due to overall balance sheet strategies. During 2015, the Company transferred commercial mortgage-backed securities with a fair value of $57.7 million from AFS to HTM. The unrealized gain on the securities transferred from AFS to HTM was $1.3 million ( $864,000 , net of tax) at the date of transfer based on the fair value of the securities on the transfer date. Our management has the current intent and ability to hold the transferred securities until maturity. Any net unrealized gain or loss on the transferred securities included in accumulated other comprehensive income at the time of transfer will be amortized over the remaining life of the underlying security as an adjustment of the yield on those securities. AFS securities transferred with losses included in accumulated other comprehensive income continue to be included in management’s assessment for other-than-temporary impairment for each individual security. There were no securities transferred from AFS to HTM during the nine months ended September 30, 2016 . The following tables represent the fair value and unrealized loss on securities as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss AVAILABLE FOR SALE Investment Securities: U.S. Treasury $ 35,058 $ 103 $ — $ — $ 35,058 $ 103 State and Political Subdivisions 139,145 941 887 1 140,032 942 Mortgage-backed Securities: Residential 192,591 1,600 10,063 52 202,654 1,652 Commercial 5,163 4 — — 5,163 4 Total $ 371,957 $ 2,648 $ 10,950 $ 53 $ 382,907 $ 2,701 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 21,479 $ 176 $ 27,610 $ 965 $ 49,089 $ 1,141 Mortgage-backed Securities: Residential 8,182 25 — — 8,182 25 Total $ 29,661 $ 201 $ 27,610 $ 965 $ 57,271 $ 1,166 As of December 31, 2015 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AVAILABLE FOR SALE Investment Securities: U.S. Treasury $ 64,172 $ 380 $ — $ — $ 64,172 $ 380 State and Political Subdivisions 15,550 116 19,270 495 34,820 611 Other Stocks and Bonds 2,954 45 — — 2,954 45 Other Equity Securities 6,016 36 — — 6,016 36 Mortgage-backed Securities: Residential 229,514 1,215 3,817 24 233,331 1,239 Commercial 422,316 7,039 5,110 192 427,426 7,231 Total $ 740,522 $ 8,831 $ 28,197 $ 711 $ 768,719 $ 9,542 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 24,340 $ 214 $ 62,240 $ 1,149 $ 86,580 $ 1,363 Mortgage-backed Securities: Residential 1,717 1 — — 1,717 1 Commercial 193,710 2,439 2,481 41 196,191 2,480 Total $ 219,767 $ 2,654 $ 64,721 $ 1,190 $ 284,488 $ 3,844 We review those securities in an unrealized loss position for significant differences between fair value and the cost basis to evaluate if a classification of other-than-temporary impairment is warranted. In estimating other-than-temporary impairment losses, management considers, among other things, the length of time and the extent to which the fair value has been less than cost and the financial condition and near-term prospects of the issuer. We consider an other-than-temporary impairment to have occurred when there is an adverse change in expected cash flows. When it is determined that a decline in fair value of HTM or AFS securities is other-than-temporary, the carrying value of the security is reduced to its estimated fair value, with a corresponding charge to earnings for the credit portion and the noncredit portion to other comprehensive income. Based upon the length of time and the extent to which fair value is less than cost, we believe that none of the securities with an unrealized loss have other-than-temporary impairment at September 30, 2016 . The majority of the securities in an unrealized loss position are highly rated municipal securities and U.S. Agency mortgage- backed securities (“MBS”) where the unrealized loss is a direct result of the change in interest rates and spreads. For those securities in an unrealized loss position, we do not currently intend to sell the securities and it is not more likely than not that we will be required to sell the securities before the anticipated recovery of their amortized cost basis. To the best of management’s knowledge and based on our consideration of the qualitative factors associated with each security, there were no securities in our investment and MBS portfolio with an other-than-temporary impairment at September 30, 2016 . Interest income recognized on securities for the periods presented (in thousands): Three Months Ended 2016 2015 U.S. Treasury $ 182 $ 360 U.S. Government Agency Debentures — 33 State and Political Subdivisions 5,467 5,550 Other Stocks and Bonds 39 54 Other Equity Securities 30 29 Mortgage-backed Securities 9,399 8,318 Total interest income on securities $ 15,117 $ 14,344 Nine Months Ended 2016 2015 U.S. Treasury $ 330 $ 821 U.S. Government Agency Debentures — 97 State and Political Subdivisions 15,959 17,065 Other Stocks and Bonds 154 158 Other Equity Securities 88 90 Mortgage-backed Securities 28,156 24,446 Total interest income on securities $ 44,687 $ 42,677 Of the approximately $5.5 million in net securities gains from the AFS portfolio for the nine months ended September 30, 2016 , there were $6.2 million in realized gain positions and $663,000 in realized loss positions. Of the $3.5 million in net securities gains from the AFS portfolio for the nine months ended September 30, 2015 , there were $4.0 million in realized gain positions and $511,000 in realized loss positions. There were no sales from the HTM portfolio during the nine months ended September 30, 2016 or 2015 . We calculate realized gains and losses on sales of securities under the specific identification method. The amortized cost, carrying value and fair value of securities at September 30, 2016 , are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. MBS are presented in total by category due to the fact that MBS typically are issued with stated principal amounts, and the securities are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as fixed-rate or adjustable-rate, as well as prepayment risk, are passed on to the security holder. The term of a mortgage-backed pass-through security thus approximates the term of the underlying mortgages and can vary significantly due to prepayments. September 30, 2016 Amortized Cost Fair Value AVAILABLE FOR SALE (in thousands) Investment Securities: Due in one year or less $ 4,710 $ 4,740 Due after one year through five years 26,479 28,008 Due after five years through ten years 116,444 117,966 Due after ten years 354,357 360,703 501,990 511,417 Mortgage-backed Securities and Other Equity Securities: 1,084,128 1,110,711 Total $ 1,586,118 $ 1,622,128 September 30, 2016 Carrying Value Fair Value HELD TO MATURITY (in thousands) Investment Securities: Due in one year or less $ 6,497 $ 6,458 Due after one year through five years 42,722 43,507 Due after five years through ten years 96,615 100,477 Due after ten years 233,333 245,602 379,167 396,044 Mortgage-backed Securities: 396,515 418,068 Total $ 775,682 $ 814,112 Investment securities and MBS with carrying values of $1.41 billion and $1.33 billion were pledged as of September 30, 2016 and December 31, 2015 , respectively, to collateralize Federal Home Loan Bank of Dallas (“FHLB”) advances, repurchase agreements, and public funds or for other purposes as required by law. Securities with limited marketability, such as FHLB stock and other investments, are carried at cost, which approximates fair value and are assessed for other-than-temporary impairment. These securities have no maturity date. |
Loans and Allowance for Probabl
Loans and Allowance for Probable Loan Losses | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Loans and Allowance for Probable Loan Losses | Loans and Allowance for Probable Loan Losses Loans in the accompanying consolidated balance sheets are classified as follows (in thousands): September 30, 2016 December 31, 2015 Real Estate Loans: Construction $ 466,323 $ 438,247 1-4 Family Residential 644,746 655,410 Commercial 759,795 635,210 Commercial Loans 191,154 242,527 Municipal Loans 293,949 288,115 Loans to Individuals 127,674 172,244 Total Loans (1) 2,483,641 2,431,753 Less: Allowance for Loan Losses (2) 15,993 19,736 Net Loans $ 2,467,648 $ 2,412,017 (1) Includes approximately $420.4 million and $581.1 million of loans acquired with the Omni acquisition as of September 30, 2016 and December 31, 2015 , respectively. (2) The allowance for loan loss recorded on PCI loans totaled $3,000 and $629,000 as of September 30, 2016 and December 31, 2015 , respectively. Real Estate Construction Loans Our construction loans are collateralized by property located primarily in or near the market areas we serve. Several of our construction loans will be owner-occupied upon completion. Construction loans for non-owner occupied projects are financed, but these typically have cash flows from leases with tenants, secondary sources of repayment, and in some cases, additional collateral. Our construction loans have both adjustable and fixed interest rates during the construction period. Construction loans to individuals are typically priced and made with the intention of granting the permanent loan on the property. Speculative and commercial construction loans are subject to underwriting standards similar to that of the commercial portfolio. Owner-occupied 1-4 family residential construction loans are subject to the underwriting standards of the permanent loan. Real Estate 1-4 Family Residential Loans Residential loan originations are generated by our loan officers, in-house origination staff, marketing efforts, present customers, walk-in customers and referrals from real estate agents and builders. We focus our lending efforts primarily on the origination of loans secured by first mortgages on owner-occupied 1-4 family residences. Substantially all of our 1-4 family residential originations are secured by properties located in or near our market areas. Our 1-4 family residential loans generally have maturities ranging from five to 30 years. These loans are typically fully amortizing with monthly payments sufficient to repay the total amount of the loan. Our 1-4 family residential loans are made at both fixed and adjustable interest rates. Underwriting for 1-4 family residential loans includes debt-to-income analysis, credit history analysis, appraised value and down payment considerations. Changes in the market value of real estate can affect the potential losses in the portfolio. Commercial Real Estate Loans Commercial real estate loans as of September 30, 2016 consists of $697.8 million of owner and nonowner-occupied real estate, $57.4 million of loans secured by multi-family properties and $4.6 million of loans secured by farmland. Commercial real estate loans primarily include loans collateralized by commercial office buildings, retail, medical facilities and offices, senior living, assisted living and skilled nursing facilities, warehouse facilities, hotels and churches. In determining whether to originate commercial real estate loans, we generally consider such factors as the financial condition of the borrower and the debt service coverage of the property. Commercial real estate loans are made at both fixed and adjustable interest rates for terms generally up to 20 years. Commercial Loans Our commercial loans are diversified loan types including short-term working capital loans for inventory and accounts receivable and short- and medium-term loans for equipment or other business capital expansion. Management does not consider there to be a concentration of risk in any one industry type, other than the medical industry. Loans to borrowers in the medical industry include all loan types listed above for commercial loans. Collateral for these loans varies depending on the type of loan and financial strength of the borrower. The primary source of repayment for loans in the medical community is cash flow from continuing operations. In our commercial loan underwriting, we assess the creditworthiness, ability to repay, and the value and liquidity of the collateral being offered. Terms of commercial loans are generally commensurate with the useful life of the collateral offered. Municipal Loans We have a specific lending department that makes loans to municipalities and school districts primarily throughout the state of Texas. Municipal loans outside the state of Texas have been limited to adjoining states. The majority of the loans to municipalities and school districts have tax or revenue pledges and in some cases are additionally supported by collateral. Municipal loans made without a direct pledge of taxes or revenues are usually made based on some type of collateral that represents an essential service. Loans to Individuals Substantially all originations of our loans to individuals are made to consumers in our market areas. The majority of loans to individuals are collateralized by titled equipment, which are primarily automobiles. Loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards we employ for consumer loans include an application, a determination of the applicant’s payment history on other debts, with the greatest weight being given to payment history with us, and an assessment of the borrower’s ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the collateral, if any, in relation to the proposed loan amount. Most of our loans to individuals are collateralized, which management believes should assist in limiting our exposure. Allowance for Loan Losses The allowance for loan losses is based on the most current review of the loan portfolio and is a result of multiple processes. First, we utilize historical net charge-off data to establish general reserve amounts for each class of loans. The historical charge-off figure is further adjusted through qualitative factors that include general trends in past dues, nonaccruals and classified loans to more effectively and promptly react to both positive and negative movements not reflected in the historical data. Second, our lenders have the primary responsibility for identifying problem loans based on customer financial stress and underlying collateral. These recommendations are reviewed by senior loan administration, the special assets department, and the loan review department. Third, the loan review department independently reviews the portfolio on an annual basis. The loan review department follows a board-approved annual loan review scope. The loan review scope encompasses a number of considerations including the size of the loan, the type of credit extended, the seasoning of the loan and the performance of the loan. The loan review scope, as it relates to size, focuses more on larger dollar loan relationships, typically aggregate debt of $500,000 or greater. The loan review officer also reviews specific reserves compared to general reserves to determine trends in comparative reserves as well as losses not reserved for prior to charge-off to determine the effectiveness of the specific reserve process. At each review, a subjective analysis methodology is used to grade the respective loan. Categories of grading vary in severity from loans that do not appear to have a significant probability of loss at the time of review to loans that indicate a probability that the entire balance of the loan will be uncollectible. If at the time of review we determine it is probable that we will not collect the principal and interest cash flows contractually due on the loan, estimates of future expected cash flows or appraisals of the collateral securing the debt are used to determine the necessary allowances. The internal loan review department maintains a list of all loans or loan relationships that are graded as having more than the normal degree of risk associated with them. In addition, a list of specifically reserved loans or loan relationships of $150,000 or more is updated on a quarterly basis in order to properly determine necessary allowances and keep management informed on the status of attempts to correct the deficiencies noted with respect to the loan. We calculate historical loss ratios for pools of loans with similar characteristics based on the proportion of actual charge-offs experienced, consistent with the characteristics of remaining loans, to the total population of loans in the pool. The historical gross loss ratios are updated based on actual charge-off experience quarterly and adjusted for qualitative factors. All loans are subject to individual analysis if determined to be impaired with the exception of consumer loans and loans secured by 1-4 family residential loans. Industry and our own experience indicates that a portion of our loans will become delinquent and a portion of the loans will require partial or full charge-off. Regardless of the underwriting criteria utilized, losses may occur as a result of various factors beyond our control, including, among other things, changes in market conditions affecting the value of properties used as collateral for loans and problems affecting the credit worthiness of the borrower and the ability of the borrower to make payments on the loan. Our determination of the appropriateness of the allowance for loan losses is based on various considerations, including an analysis of the risk characteristics of various classifications of loans, previous loan loss experience, specific loans which would have loan loss potential, delinquency trends, estimated fair value of the underlying collateral, current economic conditions, and geographic and industry loan concentration. Credit Quality Indicators We categorize loans into risk categories on an ongoing basis based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. We use the following definitions for risk ratings: • Pass (Rating 1 – 4) – This rating is assigned to all satisfactory loans. This category, by definition, consists of acceptable credit. Credit and collateral exceptions should not be present, although their presence would not necessarily prohibit a loan from being rated Pass, if deficiencies are in process of correction. These loans are not included in the Watch List. • Pass Watch (Rating 5) – These loans require some degree of special treatment, but not due to credit quality. This category does not include loans specially mentioned or adversely classified; however, particular attention must be accorded such credits due to characteristics such as: ◦ A lack of, or abnormally extended payment program; ◦ A heavy degree of concentration of collateral without sufficient margin; ◦ A vulnerability to competition through lesser or extensive financial leverage; and ◦ A dependence on a single or few customers or sources of supply and materials without suitable substitutes or alternatives. • Special Mention (Rating 6) – A Special Mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in our credit position at some future date. Special Mention assets are not adversely classified and do not expose us to sufficient risk to warrant adverse classification. • Substandard (Rating 7) – Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. • Doubtful (Rating 8) – Loans classified as Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation, in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. All accruing loans are reserved for as a group of similar type credits and included in the general portion of the allowance for loan losses. Loans to individuals and 1-4 family residential loans, including loans not accruing, are collectively evaluated and included in the general portion of the allowance for loan losses. All loans considered troubled debt restructurings (“TDR”) are evaluated individually for further impairment. The general portion of the loan loss allowance is reflective of historical charge-off levels for similar loans adjusted for changes in current conditions and other relevant factors. These factors are likely to cause estimated losses to differ from historical loss experience and include: • Changes in lending policies or procedures, including underwriting, collection, charge-off, and recovery procedures; • Changes in local, regional and national economic and business conditions, including entry into new markets; • Changes in the volume or type of credit extended; • Changes in the experience, ability, and depth of lending management; • Changes in the volume and severity of past due, nonaccrual, restructured, or classified loans; • Changes in charge-off trends; • Changes in loan review or Board oversight; • Changes in the level of concentrations of credit; and • Changes in external factors, such as competition and legal and regulatory requirements. These factors are also considered for the purchased Omni loan portfolio specifically in regards to changes in credit quality, past due, nonaccrual and charge-off trends. The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands): Three Months Ended September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 4,423 $ 1,686 $ 4,680 $ 2,474 $ 737 $ 908 $ 14,908 Provision (reversal) for loan losses (2) 734 574 556 (682 ) 1 448 1,631 Loans charged off — (24 ) — (452 ) — (781 ) (1,257 ) Recoveries of loans charged off — 7 6 344 — 354 711 Balance at end of period $ 5,157 $ 2,243 $ 5,242 $ 1,684 $ 738 $ 929 $ 15,993 Nine Months Ended September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans (1) Municipal Loans Loans to Individuals Total Balance at beginning of period $ 4,350 $ 2,595 $ 4,577 $ 6,596 $ 725 $ 893 $ 19,736 Provision (reversal) for loan losses (2) 538 (449 ) 648 6,032 (236 ) 1,182 7,715 Loans charged off — (43 ) — (11,375 ) — (2,283 ) (13,701 ) Recoveries of loans charged off 269 140 17 431 249 1,137 2,243 Balance at end of period $ 5,157 $ 2,243 $ 5,242 $ 1,684 $ 738 $ 929 $ 15,993 (1) Of the $11.4 million in commercial charge-offs recorded for the nine months ended September 30, 2016 , $10.9 million relates to the charge-off of two large commercial borrowing relationships. (2) Of the $1.6 million recorded in provision for loan losses for the three months ended September 30, 2016 , none related to provision expense on PCI loans. Of the $7.7 million recorded in provision for loan losses for the nine months ended September 30, 2016 , $1.4 million related to provision expense on PCI loans. Three Months Ended September 30, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 2,909 $ 3,468 $ 3,529 $ 5,013 $ 833 $ 1,070 $ 16,822 Provision (reversal) for loan losses (2) 630 (634 ) 143 1,514 15 608 2,276 Loans charged off — (14 ) — (78 ) — (1,209 ) (1,301 ) Recoveries of loans charged off 34 83 5 40 — 443 605 Balance at end of period $ 3,573 $ 2,903 $ 3,677 $ 6,489 $ 848 $ 912 $ 18,402 Nine Months Ended September 30, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period (1) $ 2,456 $ 2,822 $ 3,025 $ 3,279 $ 716 $ 994 $ 13,292 Provision (reversal) for loan losses (2) 991 32 574 3,271 132 1,392 6,392 Loans charged off — (60 ) — (185 ) — (3,035 ) (3,280 ) Recoveries of loans charged off 126 109 78 124 — 1,561 1,998 Balance at end of period $ 3,573 $ 2,903 $ 3,677 $ 6,489 $ 848 $ 912 $ 18,402 (1) Loans acquired with the Omni acquisition were measured at fair value on December 17, 2014 with no carryover of allowance for loan loss. (2) Of the $2.3 million and $6.4 million recorded in provision for loan losses for the three and nine months ended September 30, 2015 , $446,000 related to provision expense on PCI loans. The following tables present the balance in the allowance for loan losses by portfolio segment based on impairment method (in thousands): As of September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Ending balance – individually evaluated for impairment (1) $ 15 $ 15 $ 29 $ 42 $ 12 $ 117 $ 230 Ending balance – collectively evaluated for impairment 5,142 2,228 5,213 1,642 726 812 15,763 Balance at end of period $ 5,157 $ 2,243 $ 5,242 $ 1,684 $ 738 $ 929 $ 15,993 As of December 31, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Ending balance – individually evaluated for impairment (1) $ 12 $ 25 $ 137 $ 4,599 $ 13 $ 105 $ 4,891 Ending balance – collectively evaluated for impairment 4,338 2,570 4,440 1,997 712 788 14,845 Balance at end of period $ 4,350 $ 2,595 $ 4,577 $ 6,596 $ 725 $ 893 $ 19,736 (1) There was approximately $3,000 and $629,000 of allowance for loan losses associated with PCI loans as of September 30, 2016 and December 31, 2015 , respectively. The following tables present the recorded investment in loans by portfolio segment based on impairment method (in thousands): September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Loans individually evaluated for impairment $ 680 $ 1,714 $ 3,233 $ 4,128 $ 571 $ 261 $ 10,587 Loans collectively evaluated for impairment 465,458 636,415 754,570 185,844 293,378 127,261 2,462,926 Purchased credit impaired loans 185 6,617 1,992 1,182 — 152 10,128 Total ending loan balance $ 466,323 $ 644,746 $ 759,795 $ 191,154 $ 293,949 $ 127,674 $ 2,483,641 December 31, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Loans individually evaluated for impairment $ 508 $ 1,751 $ 3,757 $ 14,250 $ 637 $ 258 $ 21,161 Loans collectively evaluated for impairment 437,518 646,590 628,405 220,199 287,478 171,782 2,391,972 Purchased credit impaired loans 221 7,069 3,048 8,078 — 204 18,620 Total ending loan balance $ 438,247 $ 655,410 $ 635,210 $ 242,527 $ 288,115 $ 172,244 $ 2,431,753 The following tables set forth loans by credit quality indicator for the periods presented (in thousands): September 30, 2016 Pass Pass Watch (1) Special Mention (1) Substandard (1) Doubtful (1) Total Real Estate Loans: Construction $ 446,934 $ 35 $ 11,859 $ 7,475 $ 20 $ 466,323 1-4 Family Residential 636,985 69 — 6,483 1,209 644,746 Commercial 739,583 586 7,666 11,960 — 759,795 Commercial Loans 177,005 1,959 4,518 7,659 13 191,154 Municipal Loans 292,380 — 998 571 — 293,949 Loans to Individuals 126,426 — — 701 547 127,674 Total $ 2,419,313 $ 2,649 $ 25,041 $ 34,849 $ 1,789 $ 2,483,641 December 31, 2015 Pass Pass Watch Special Mention (1) Substandard (1) Doubtful (1) Total Real Estate Loans: Construction $ 434,893 $ — $ 1,754 $ 1,576 $ 24 $ 438,247 1-4 Family Residential 643,498 1,403 1,636 4,915 3,958 655,410 Commercial 620,117 — — 14,988 105 635,210 Commercial Loans 204,775 716 1,738 27,681 7,617 242,527 Municipal Loans 286,415 — 1,063 637 — 288,115 Loans to Individuals 170,558 2 — 478 1,206 172,244 Total $ 2,360,256 $ 2,121 $ 6,191 $ 50,275 $ 12,910 $ 2,431,753 (1) Includes PCI loans comprised of $592,000 pass watch, $123,000 special mention, $5.2 million substandard and $28,000 doubtful as of September 30, 2016 . Includes PCI loans comprised of $95,000 special mention, $3.6 million substandard, and $9.9 million doubtful as of December 31, 2015 . Nonperforming Assets and Past Due Loans Nonaccrual loans are loans 90 days or more delinquent and collection in full of both the principal and interest is not expected. Additionally, some loans that are not delinquent may be placed on nonaccrual status due to doubts about full collection of principal or interest. When a loan is categorized as nonaccrual, the accrual of interest is discontinued and any accrued balance is reversed for financial statement purposes. Payments received on nonaccrual loans are applied to the outstanding principal balance. Payments of contractual interest are recognized as income only to the extent that full recovery of the principal balance of the loan is reasonably certain. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Other factors, such as the value of collateral securing the loan and the financial condition of the borrower, are considered in judgments as to potential loan loss. Nonaccrual loans and accruing loans past due more than 90 days include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. PCI loans are recorded at fair value at acquisition date. Although the PCI loans may be contractually delinquent, we do not classify these loans as past due or nonperforming as the loans were written down to fair value at the acquisition date, and the accretable yield is recognized in interest income over the remaining life of the loan. However, subsequent to acquisition, we re-assess PCI loans for additional impairment and record additional impairment in the event we conclude it is probable that we will be unable to collect all cash flows originally expected to be collected at acquisition plus any additional cash flows expected to be collected due to changes in estimates after acquisition. All such PCI loans for which we recognize subsequent impairment are reported as impaired loans in the financial statements. The following table sets forth nonperforming assets for the periods presented (in thousands): At At Nonaccrual loans (1) $ 8,536 $ 20,526 Accruing loans past due more than 90 days (1) 1 3 Restructured loans (2) 7,193 11,143 Other real estate owned 237 744 Repossessed assets 41 64 Total Nonperforming Assets $ 16,008 $ 32,480 (1) Excludes PCI loans measured at fair value at acquisition. (2) Includes $3.2 million and $7.5 million in PCI loans restructured as of September 30, 2016 and December 31, 2015 , respectively. Foreclosed assets include other real estate owned and repossessed assets. For 1-4 family residential real estate properties, a loan is recognized as a foreclosed property once legal title to the real estate property has been received upon completion of foreclosure or the borrower has conveyed all interest in the residential property through a deed in lieu of foreclosure. As of September 30, 2016 , there were $239,000 loans secured by 1-4 family residential properties for which formal foreclosure proceedings were in process. As of December 31, 2015 there was a total of $67,000 in loans secured by 1-4 family residential properties for which formal foreclosure proceedings were in process. The following table sets forth the recorded investment in nonaccrual loans by class of loans for the periods presented (in thousands): Nonaccrual Loans (1) September 30, 2016 December 31, 2015 Real Estate Loans: Construction $ 305 $ 508 1-4 Family Residential 1,532 1,847 Commercial 2,341 2,816 Commercial Loans 3,685 13,896 Loans to Individuals 673 1,459 Total $ 8,536 $ 20,526 (1) Excludes PCI loans measured at fair value at acquisition. Loans are considered impaired if, based on current information and events, it is probable we will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. The measurement of loss on impaired loans is generally based on the fair value of the collateral if repayment is expected solely from the collateral or the present value of the expected future cash flows discounted at the historical effective interest rate stipulated in the loan agreement. In measuring the fair value of the collateral, in addition to relying on third party appraisals, we use assumptions, such as discount rates, and methodologies, such as comparison to the recent selling price of similar assets, consistent with those that would be utilized by unrelated third parties performing a valuation. Loans that are evaluated and determined not to meet the definition of an impaired loan are reserved for at the general reserve rate for its appropriate class. At the time a loss is probable in the collection of contractual amounts, specific reserves are allocated. Loans are charged off to the liquidation value of the collateral net of liquidation costs, if any, when deemed uncollectible or as soon as collection by liquidation is evident. The following tables set forth impaired loans by class of loans for the periods presented (in thousands): September 30, 2016 Unpaid Contractual Principal Balance Recorded Investment With Allowance Related Allowance for Loan Losses Real Estate Loans: Construction $ 685 $ 680 $ 15 1-4 Family Residential 4,644 4,421 15 Commercial 3,730 3,629 29 Commercial Loans 4,453 4,221 42 Municipal Loans 571 571 12 Loans to Individuals 301 261 117 Total (1) $ 14,384 $ 13,783 $ 230 December 31, 2015 Unpaid Contractual Principal Balance Recorded Investment With Allowance Related Allowance for Loan Losses Real Estate Loans: Construction $ 1,320 $ 508 $ 12 1-4 Family Residential 1,842 1,751 25 Commercial 4,756 4,636 137 Commercial Loans 29,844 21,385 4,599 Municipal Loans 637 637 13 Loans to Individuals 288 257 105 Total (1) $ 38,687 $ 29,174 $ 4,891 (1) Includes $3.2 million and $8.0 million of PCI loans that experienced deterioration in credit quality subsequent to the acquisition date as of September 30, 2016 and December 31, 2015 , respectively. There were no impaired loans recorded without an allowance as of September 30, 2016 or December 31, 2015 . The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands): September 30, 2016 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current (1) Total Real Estate Loans: Construction $ 214 $ 228 $ 245 $ 687 $ 465,636 $ 466,323 1-4 Family Residential 1,336 655 873 2,864 641,882 644,746 Commercial 1,072 201 114 1,387 758,408 759,795 Commercial Loans 724 151 2,708 3,583 187,571 191,154 Municipal Loans — — — — 293,949 293,949 Loans to Individuals 1,506 182 198 1,886 125,788 127,674 Total $ 4,852 $ 1,417 $ 4,138 $ 10,407 $ 2,473,234 $ 2,483,641 December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current (1) Total Real Estate Loans: Construction $ 121 $ 258 $ 208 $ 587 $ 437,660 $ 438,247 1-4 Family Residential 3,703 781 1,080 5,564 649,846 655,410 Commercial 359 1,289 361 2,009 633,201 635,210 Commercial Loans 527 138 335 1,000 241,527 242,527 Municipal Loans — — — — 288,115 288,115 Loans to Individuals 2,457 608 285 3,350 168,894 172,244 Total $ 7,167 $ 3,074 $ 2,269 $ 12,510 $ 2,419,243 $ 2,431,753 (1) Includes PCI loans measured at fair value at acquisition. The following tables set forth average recorded investment and interest income recognized on impaired loans by class of loans for the periods presented (in thousands): Three Months Ended September 30, 2016 September 30, 2015 Average Recorded Investment (1) Interest Income Recognized (1) Average Recorded Investment (1) Interest Income Recognized (1) Real Estate Loans: Construction $ 564 $ 5 $ 1,004 $ — 1-4 Family residential 4,559 42 3,799 14 Commercial 4,281 21 3,782 25 Commercial loans 7,457 13 16,605 71 Municipal loans 604 8 902 10 Loans to individuals 275 2 1,241 2 Total $ 17,740 $ 91 $ 27,333 $ 122 Nine Months Ended September 30, 2016 September 30, 2015 Average Recorded Investment (1) Interest Income Recognized (1) Average Recorded (1) Interest Income Recognized (1) Real Estate Loans: Construction $ 519 $ 17 $ 1,835 $ — 1-4 Family Residential 2,915 124 3,868 43 Commercial 4,952 64 3,015 50 Commercial Loans 15,990 30 11,492 86 Municipal Loans 624 26 855 28 Loans to Individuals 262 6 867 3 Total $ 25,262 $ 267 $ 21,932 $ 210 (1) Excludes PCI loans measured at fair value at acquisition that have not experienced further deterioration in credit quality subsequent to the acquisition date. Troubled Debt Restructurings The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, restructuring amortization schedules and other actions intended to minimize potential losses. The following tables set forth the recorded balance of loans considered to be TDRs that were restructured during the periods presented (dollars in thousands): Three Months Ended September 30, 2016 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: 1-4 Family Residential $ — $ — $ 30 $ 30 2 Total $ — $ — $ 30 $ 30 2 Nine Months Ended September 30, 2016 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: Construction $ 375 $ — $ 23 $ 398 2 1-4 Family Residential — 73 2,737 2,810 5 Commercial 2,068 — — 2,068 1 Commercial Loans 1,082 — — 1,082 4 Loans to Individuals 19 — 72 91 6 Total $ 3,544 $ 73 $ 2,832 $ 6,449 18 Three Months Ended September 30, 2015 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: 1-4 Family Residential $ — $ 79 $ — $ 79 1 Commercial — — 1,290 1,290 2 Commercial Loans 12,941 — 7,443 20,384 8 Loans to Individuals 60 — 50 110 5 Total $ 13,001 $ 79 $ 8,783 $ 21,863 16 Nine Months Ended September 30, 2015 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: 1-4 Family Residential $ — $ 79 $ 259 $ 338 3 Commercial 28 — 1,290 1,318 3 Commercial Loans 13,241 — 7,443 20,684 9 Loans to Individuals 63 — 114 177 13 Total $ 13,332 $ 79 $ 9,106 $ 22,517 28 (1) These modifications may include an extension of the amortization period, interest rate reduction, and/or converting the loan to interest-only for a limited period of time. The majority of loans restructured as TDRs during the nine months ended September 30, 2016 were modified with maturity extensions. Interest continues to be charged on principal balances outstanding during the extended term. Therefore, the financial effects of the recorded investment of loans restructured as TDRs during the three and nine months ended September 30, 2016 and 2015 were not significant. Generally, the loans identified as TDRs were previously reported as impaired loans prior to restructuring and therefore the modification did not impact our determination of the allowance for loan losses. On an ongoing basis, the performance of the TDRs is monitored for subsequent payment default. Payment default for TDRs is recognized when the borrower is 90 days or more past due. For the three and nine months ended September 30, 2016 , the amount of TDRs in default was not significant. For the three and nine months ended September 30, 2015 , there were $729,000 of TDRs in default. Payment defaults for TDRs did not significantly impact the determination of the allowance for loan loss in either period presented. At September 30, 2016 and 2015 , there were no commitments to lend |
Long-term Obligations
Long-term Obligations | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Obligations | Long-term Obligations Long-term obligations are summarized as follows (in thousands): September 30, December 31, Parent Company Subordinated notes: (1) 5.50% Subordinated Notes Due 2026, net of unamortized debt issuance costs (2) $ 98,089 $ — Total Subordinated notes 98,089 — Long-term debt: (3) Southside Statutory Trust III Due 2033, net of unamortized debt issuance costs (4) 20,543 20,539 Southside Statutory Trust IV Due 2037 (5) 23,196 23,196 Southside Statutory Trust V Due 2037 (6) 12,887 12,887 Magnolia Trust Company I Due 2035 (7) 3,609 3,609 Total Long-term debt 60,235 60,231 Total Parent company 158,324 60,231 Subsidiaries FHLB advances (8) 463,316 502,281 Total Subsidiaries 463,316 502,281 Total Long-term obligations $ 621,640 $ 562,512 (1) This long-term debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. (2) This debt carries a fixed rate of 5.50% through September 29, 2021 and thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus 429.7 basis points . (3) This long-term debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations. (4) This debt carries an adjustable rate of 3.77769% through December 30, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 294 basis points . (5) This debt carries an adjustable rate of 2.0565% through October 29, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 130 basis points . (6) This debt carries an adjustable rate of 3.10028% through December 14, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 225 basis points . (7) This debt carries an adjustable rate of 2.61711% through November 22, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 180 basis points . (8) At September 30, 2016 , the weighted average cost of these advances was 1.1% . Long-term FHLB advances have maturities ranging from December 2017 through July 2028 . On September 19, 2016 , the Company issued $100.0 million aggregate principal amount of fixed-to-floating rate subordinated notes that mature on September 30, 2026 . This debt initially bears interest at a fixed rate of 5.50% through September 29, 2021 and thereafter, adjusts quarterly at a floating rate equal to three-month LIBOR plus 429.7 basis points . The proceeds from the sale of the subordinated notes will be used for general corporate purposes, which may include advances to subsidiaries to finance their activities. The unamortized debt issuance costs deducted from the carrying amount of the subordinated notes totaled approximately $1.9 million at September 30, 2016 . The unamortized debt issuance costs deducted from the carrying amount of the Southside Statutory Trust III junior subordinated debentures totaled $76,000 at September 30, 2016 and $80,000 at December 31, 2015 . During the fourth quarter of 2015 and continuing into the first half of 2016 , we entered into various variable rate advance agreements with the FHLB . At September 30, 2016 , these agreements had a total notional value of $250.0 million with rates ranging from one-month LIBOR plus 0.17% to one-month LIBOR plus 0.278% . In addition, we entered into various interest rate swap contracts that are treated as cash flow hedges under ASC 815 that effectively converted the variable rate advances to fixed interest rates ranging from 0.932% to 1.647% and original terms ranging from four years to nine years. The cash flows from the swaps are expected to be effective in hedging the variability in future cash flows attributable to fluctuations in the one-month LIBOR interest rate. Refer to “Note 10 - Derivative Financial Instruments and Hedging Activities” in our consolidated financial statements included in this report for a detailed description of our hedging policy and methodology related to derivative instruments. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2016 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The components of net periodic benefit cost (income) are as follows (in thousands): Three Months Ended September 30, Defined Benefit Defined Benefit Pension Plan Acquired Restoration 2016 2015 2016 2015 2016 2015 Service cost $ 347 $ 459 $ — $ — $ 52 $ 59 Interest cost 928 853 53 59 133 195 Expected return on assets (1,306 ) (1,421 ) (66 ) (73 ) — — Net loss amortization 412 377 — — 46 314 Prior service (credit) cost amortization (12 ) (6 ) — — 2 2 Net periodic benefit cost (income) $ 369 $ 262 $ (13 ) $ (14 ) $ 233 $ 570 Nine Months Ended September 30, Defined Benefit Defined Benefit Pension Plan Acquired Restoration 2016 2015 2016 2015 2016 2015 Service cost $ 1,031 $ 1,378 $ — $ — $ 155 $ 250 Interest cost 2,798 2,558 159 178 401 501 Expected return on assets (3,917 ) (4,263 ) (199 ) (220 ) — — Net loss amortization 1,232 1,129 — — 139 707 Prior service (credit) cost amortization (11 ) (17 ) — — 5 5 Special and contractual termination benefits 1,549 — — — — — Net periodic benefit cost (income) $ 2,682 $ 785 $ (40 ) $ (42 ) $ 700 $ 1,463 |
Share-based Incentive Plans
Share-based Incentive Plans | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based Incentive Plans | 9. Share-based Incentive Plans We grant nonqualified stock options (“NQSOs”) to certain officers with an exercise price equal to the fair value of the shares at the date of grant. During the nine months ended September 30, 2016 and 2015 , we granted 85,325 shares at a weighted average exercise price of $26.61 and 388,669 shares at a weighted average exercise price of $26.74 , respectively. The NQSOs have contractual terms of 10 years and vest in equal annual installments over either a three - or four -year period. We also grant restricted stock units (“RSUs”) to certain officers. During the nine months ended September 30, 2016 and 2015 , we granted 17,848 and 60,400 RSUs, respectively, with a total value of $486,000 and $1.6 million , respectively. The RSUs vest in equal annual installments over either a three - or four -year period. For the three and nine months ended September 30, 2016 , we had share-based compensation expense of $397,000 and $1.2 million , respectively. Share-based compensation expense for the three and nine months ended September 30, 2015 was $414,000 and $981,000 , respectively. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure | Derivative Financial Instruments and Hedging Activities Our hedging policy allows the use of interest rate derivative instruments to manage our exposure to interest rate risk or hedge specified assets and liabilities. These instruments may include interest rate swaps and interest rate caps and floors. All derivative instruments are carried on the balance sheet at their estimated fair value and are recorded in other assets or other liabilities, as appropriate. Derivative instruments may be designated as cash flow hedges of variable rate assets or liabilities, or as cash flow hedges of forecasted transactions. Derivative instruments designated as cash flow hedges are recorded in accumulated other comprehensive income to the extent that they are effective. The amount recorded in other comprehensive income is reclassified to earnings in the same periods as the hedged cash flows impact earnings. The ineffective portion of changes in fair value is reported in current earnings. During the fourth quarter of 2015 and continuing into the first half of 2016, we entered into certain interest rate swap contracts on specific variable-rate advance agreements with the FHLB having a total notional amount of $250.0 million at September 30, 2016 . These interest rate swap contracts were designated as hedging instruments in cash flow hedges under ASC 815. The objective of the interest rate swap contracts is to manage the expected future cash flows on our $250.0 million of variable-rate advance agreements with the FHLB. The cash flows from the swap are expected to be effective in hedging the variability in future cash flows attributable to fluctuations in the one-month LIBOR interest rate. At September 30, 2016 , net derivative liabilities included $3.8 million of cash collateral held by a counterparty to a master netting agreement. At September 30, 2016 , we had $292,000 of cash collateral receivable that was not offset against derivative liabilities. From time to time, we may enter into certain interest rate swaps, cap, and floor contracts that are not designated as hedging instruments. These interest rate derivative contracts relate to transactions in which we enter into a interest rate swap, cap, or floor with a customer while concurrently entering into an offsetting interest rate swap, cap, or floor with a third-party financial institution. We agree to pay interest to the customer on a notional amount at a variable rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, we agree to pay a third-party financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These interest rate derivatives contracts allow our customers to effectively convert a variable rate loan to a fixed rate. The changes in the fair value of the underlying derivative contracts primarily offset each other and do not significantly impact our results of operations. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. The notional amounts of the derivative instruments represent the contractual cash flows pertaining to the underlying agreements. These amounts are not exchanged and are not reflected in the consolidated balance sheets. The fair value of the interest rate swaps are presented at net in other assets and other liabilities when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. The following tables present the notional and estimated fair value amount of derivative positions outstanding for the periods presented (in thousands): September 30, 2016 December 31, 2015 Estimated Fair Value Estimated Fair Value Notional Amount (1) Asset Derivative Liability Derivative Notional Amount (1) Asset Derivative Liability Derivative Derivatives designated as hedging instruments Interest rate contracts: Swaps-Cash Flow Hedge-Financial institution counterparties $ 250,000 $ 8 $ 3,796 $ 20,000 $ — $ 1 Derivatives designated as non-hedging instruments Interest rate contracts: Swaps-Financial institution counterparties 2,200 58 — — — — Swaps-Customer counterparties 2,200 — 58 — — — Gross derivatives 66 3,854 — 1 Offsetting derivative assets/liabilities (8 ) (8 ) — — Cash collateral received (posted) — (3,788 ) — — Net derivatives included in the consolidated balance sheets (2) $ 58 $ 58 $ — $ 1 (1) Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk, and are not reflected in the consolidated balance sheets. (2) Net derivative assets are included in “other assets” and net derivative liabilities are included in “other liabilities” on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. We had $8,000 of credit exposure at September 30, 2016 . We had no credit exposure at December 31, 2015 . The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands): September 30, 2016 December 31, 2015 Weighted Average Weighted Average Notional Amount Remaining Maturity (in years) Receive Rate (1) Pay Rate Notional Amount Remaining Maturity Receive Rate (1) Pay Swaps-Cash Flow Hedge Financial institution counterparties $ 250,000 5.7 0.52 % 1.31 % $ 20,000 4.9 0.29 % 1.53 % Swaps-Non-Hedging Financial institution counterparties 2,200 9.9 0.52 1.57 — — — — Customer counterparties 2,200 9.9 1.57 0.52 — — — — (1) Variable rates received on pay fixed swaps are based on one-month LIBOR rates in effect at September 30, 2016 and December 31, 2015 . |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability is not adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Valuation techniques including the market approach, the income approach and/or the cost approach are utilized to determine fair value. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Valuation policies and procedures are determined by our investment department and reported to our Asset/Liability Committee (“ALCO”) for review. An entity must consider all aspects of nonperforming risk, including the entity’s own credit standing, when measuring fair value of a liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. A fair value hierarchy for valuation inputs gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These might include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (such as interest rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that are derived principally from or corroborated by market data by correlation or other means. Level 3 Inputs - Unobservable inputs for determining the fair values of assets or liabilities that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing the assets or liabilities. Level 3 assets recorded at fair value on a nonrecurring basis at September 30, 2016 and December 31, 2015 included loans for which a specific allowance was established based on the fair value of collateral and commercial real estate for which fair value of the properties was less than the cost basis. For both asset classes, the unobservable inputs were the additional adjustments applied by management to the appraised values to reflect such factors as non-current appraisals and revisions to estimated time to sell. These adjustments are determined based on qualitative judgments made by management on a case-by-case basis and are not quantifiable inputs, although they are used in the determination of fair value. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets are measured at fair value in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of fair value accounting or write-downs of individual assets. Transfers between levels of the fair value hierarchy are recognized on the actual date of the event or circumstances that caused the transfer, which generally coincides with our monthly and/or quarterly valuation process. There were no transfers between Level 1 and Level 2 during the nine months ended September 30, 2016 or December 31, 2015. Securities Available for Sale – U.S. Treasury securities and other equity securities are reported at fair value utilizing Level 1 inputs. Other securities classified as available for sale are reported at fair value utilizing Level 2 inputs. For these securities, we obtain fair value measurements from independent pricing services. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. We review the prices supplied by the independent pricing services for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In addition, we obtain an understanding of their underlying pricing methodologies and their Statement on Standards for Attestation Engagements-Reporting on Controls of a Service Organization (“SSAE 16”). We validate prices supplied by the independent pricing services by comparison to prices obtained from, in most cases, three additional third party sources. For securities where prices are outside a reasonable range, we further review those securities to determine what a reasonable price estimate is for that security, given available data. Derivatives – Derivatives are reported at fair value utilizing Level 2 inputs. We obtain fair value measurements from three sources including an independent pricing service and the counterparty to the derivatives designated as hedges. The fair value measurements consider observable data that may include dealer quotes, market spreads, the U.S. Treasury yield curve, live trading levels, trade execution data, credit information and the derivatives’ terms and conditions, among other things. We review the prices supplied by the sources for reasonableness. In addition, we obtain a basic understanding of their underlying pricing methodology. We validate prices supplied by the sources by comparison to one another. Certain financial assets and financial liabilities are measured at fair value on a nonrecurring basis, which means that the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Financial assets and financial liabilities measured at fair value on a nonrecurring basis included foreclosed assets and impaired loans at September 30, 2016 and December 31, 2015 . Foreclosed Assets – Foreclosed assets are initially recorded at fair value less costs to sell. The fair value measurements of foreclosed assets can include Level 2 measurement inputs such as real estate appraisals and comparable real estate sales information, in conjunction with Level 3 measurement inputs such as cash flow projections, qualitative adjustments, and sales cost estimates. As a result, the categorization of foreclosed assets is Level 3 of the fair value hierarchy. In connection with the measurement and initial recognition of certain foreclosed assets, we may recognize charge-offs through the allowance for loan losses. Impaired Loans – Certain impaired loans may be reported at the fair value of the underlying collateral if repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on customized discounting criteria or appraisals. At September 30, 2016 and December 31, 2015 , the impact of loans with specific reserves based on the fair value of the collateral was reflected in our allowance for loan losses. Certain nonfinancial assets and nonfinancial liabilities measured at fair value on a recurring basis include reporting units measured at fair value and tested for goodwill impairment. The following tables summarize assets measured at fair value on a recurring and nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): As of September 30, 2016 Fair Value Measurements at the End of the Reporting Period Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring fair value measurements Investment Securities: U.S. Treasury $ 79,847 $ 79,847 $ — $ — State and Political Subdivisions 423,740 — 423,740 — Other Stocks and Bonds 7,830 — 7,830 — Other Equity Securities 6,111 6,111 — — Mortgage-backed Securities: (1) Residential 701,486 — 701,486 — Commercial 403,114 — 403,114 — Derivative assets: Interest rate swaps 66 — 66 — Total asset recurring fair value measurements $ 1,622,194 $ 85,958 $ 1,536,236 $ — Derivative liabilities: Interest rate swaps $ 3,854 $ — $ 3,854 $ — Total liability recurring fair value measurements $ 3,854 $ — $ 3,854 $ — Nonrecurring fair value measurements Foreclosed assets $ 278 $ — $ — $ 278 Impaired loans (2) 13,553 — — 13,553 Total asset nonrecurring fair value measurements $ 13,831 $ — $ — $ 13,831 As of December 31, 2015 Fair Value Measurements at the End of the Reporting Period Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring fair value measurements Investment Securities: U.S. Treasury $ 103,587 $ 103,587 $ — $ — State and Political Subdivisions 244,246 — 244,246 — Other Stocks and Bonds 12,790 — 12,790 — Other Equity Securities 6,016 6,016 — — Mortgage-backed Securities: (1) Residential 588,502 — 588,502 — Commercial 505,351 — 505,351 — Total asset recurring fair value measurements $ 1,460,492 $ 109,603 $ 1,350,889 $ — Nonrecurring fair value measurements Foreclosed assets $ 808 $ — $ — $ 808 Impaired loans (2) 24,283 — — 24,283 Total asset nonrecurring fair value measurements $ 25,091 $ — $ — $ 25,091 (1) All mortgage-backed securities are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. (2) Impaired loans represent collateral-dependent loans with a specific valuation allowance. Losses on these loans represent charge-offs which are netted against the allowance for loan losses. Disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, is required when it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other estimation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Such techniques and assumptions, as they apply to individual categories of our financial instruments, are as follows: Cash and cash equivalents - The carrying amount for cash and cash equivalents is a reasonable estimate of those assets’ fair value. Investment and mortgage - backed securities held to maturity - Fair values for these securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices for similar securities or estimates from independent pricing services. FHLB stock and other investments - The carrying amount of FHLB stock and other investments is a reasonable estimate of those assets’ fair value. Loans receivable - For adjustable rate loans that reprice frequently and with no significant change in credit risk, the carrying amounts are a reasonable estimate of those assets’ fair value. The fair value of fixed rate loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Nonperforming loans are estimated using discounted cash flow analyses or the underlying value of the collateral where applicable. Loans held for sale – The fair value of loans held for sale is determined based on expected proceeds, which are based on sales contracts and commitments. Deposit liabilities - The fair value of demand deposits, savings accounts, and certain money market deposits is the amount on demand at the reporting date, which is the carrying value. Fair values for fixed rate CDs are estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities. Federal funds purchased and repurchase agreements - Federal funds purchased generally have original terms to maturity of one day and repurchase agreements generally have terms of less than one year, and therefore both are considered short-term borrowings. Consequently, their carrying value is a reasonable estimate of fair value. FHLB advances - The fair value of these advances is estimated by discounting the future cash flows using rates at which advances would be made to borrowers with similar credit ratings and for the same remaining maturities. Subordinated notes - The fair value of the subordinated notes is estimated by discounting future cash flows using estimated rates at which long-term debt would be made to borrowers with similar credit ratings and for the remaining maturities. Long-term debt - The fair value of the long-term debt is estimated by discounting future cash flows using estimated rates at which long-term debt would be made to borrowers with similar credit ratings and for the remaining maturities. The following tables present our financial assets, financial liabilities, and unrecognized financial instruments measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands): Estimated Fair Value September 30, 2016 Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 199,088 $ 199,088 $ 199,088 $ — $ — Investment securities: Held to maturity, at carrying value 379,167 396,044 — 396,044 — Mortgage-backed securities: Held to maturity, at carrying value 396,515 418,068 — 418,068 — FHLB stock and other investments, at cost 57,343 57,343 — 57,343 — Loans, net of allowance for loan losses 2,467,648 2,497,131 — — 2,497,131 Loans held for sale 5,301 5,301 — 5,301 — Financial Liabilities: Deposits $ 3,581,387 $ 3,584,163 $ — $ 3,584,163 $ — Federal funds purchased and repurchase agreements 11,516 11,516 — 11,516 — FHLB advances 1,172,434 1,176,951 — 1,176,951 — Subordinated notes 98,089 98,089 — 98,089 — Long-term debt 60,235 45,190 — 45,190 — Estimated Fair Value December 31, 2015 Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 80,975 $ 80,975 $ 80,975 $ — $ — Investment securities: Held to maturity, at carrying value 385,496 397,194 — 397,194 — Mortgage-backed securities: Held to maturity, at carrying value 398,800 402,569 — 402,569 — FHLB stock and other investments, at cost 56,509 56,509 — 56,509 — Loans, net of allowance for loan losses 2,412,017 2,364,968 — — 2,364,968 Loans held for sale 3,811 3,811 — 3,811 — Financial Liabilities: Deposits $ 3,455,407 $ 3,449,002 $ — $ 3,449,002 $ — Federal funds purchased and repurchase agreements 2,429 2,429 — 2,429 — FHLB advances 1,147,688 1,143,218 — 1,143,218 — Long-term debt 60,311 43,695 — 43,695 — The fair value estimate of financial instruments for which quoted market prices are unavailable is dependent upon the assumptions used. Consequently, those estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Accordingly, the aggregate fair value amounts presented in the above fair value table do not necessarily represent their underlying value. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense included in the accompanying statements of income consists of the following (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Current income tax expense $ 1,331 $ 2,666 $ 6,570 $ 8,555 Deferred income tax (benefit) expense 1,410 (695 ) 1,916 (2,714 ) Income tax expense $ 2,741 $ 1,971 $ 8,486 $ 5,841 Net deferred tax assets totaled $9.2 million at September 30, 2016 and $19.9 million at December 31, 2015 . No valuation allowance for deferred tax assets was recorded at September 30, 2016 or December 31, 2015 , as management believes it is more likely than not that all of the deferred tax assets will be realized in future years. Unrecognized tax benefits were not material at September 30, 2016 or December 31, 2015 . We recognized income tax expense of $2.7 million and $8.5 million , for an effective tax rate (“ETR”) of 17.6% and 18.3% for the three and nine months ended September 30, 2016 , respectively, compared to income tax expense of $2.0 million and $5.8 million , for an ETR of 14.4% and 15.3% , for the three and nine months ended September 30, 2015 , respectively. The higher ETR for the three and nine months ended September 30, 2016 was due to a decrease in tax-exempt income as a percentage of pre-tax income as compared to the same period in 2015 . The ETR differs from the stated rate of 35% during the comparable period primarily due to the effect of tax-exempt income from municipal loans and securities, as well as bank owned life insurance. We file federal income tax returns and certain state tax returns. We are no longer subject to U.S. federal income tax examinations by tax authorities for years before 2013 . |
Off-Balance-Sheet Arrangements,
Off-Balance-Sheet Arrangements, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Off-Balance-Sheet Arrangements, Commitments and Contingencies | Off-Balance-Sheet Arrangements, Commitments and Contingencies Financial Instruments with Off-Balance-Sheet Risk . In the normal course of business, we are a party to certain financial instruments with off-balance-sheet risk to meet the financing needs of our customers. These off-balance-sheet instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount reflected in the financial statements. The contract or notional amounts of these instruments reflect the extent of involvement and exposure to credit loss that we have in these particular classes of financial instruments. Commitments to extend credit are agreements to lend to a customer provided that the terms established in the contract are met. Commitments generally have fixed expiration dates and may require the payment of fees. Since some commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. These guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan commitments to customers and similarly do not necessarily represent future cash obligations. Financial instruments with off-balance-sheet risk were as follows (in thousands): At At Unused commitments: Commitments to extend credit $ 648,491 $ 546,660 Standby letters of credit 9,180 7,752 Total $ 657,671 $ 554,412 We apply the same credit policies in making commitments and standby letters of credit as we do for on-balance-sheet instruments. We evaluate each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, upon extension of credit is based on management’s credit evaluation of the borrower. Collateral held varies but may include cash or cash equivalents, negotiable instruments, real estate, accounts receivable, inventory, oil, gas and mineral interests, property, plant, and equipment. Lease Commitments . We lease certain branch facilities and office equipment under operating leases. It is expected that certain leases will be renewed, or equipment replaced with new leased equipment, as these leases expire. During the three months ended September 30, 2016, we terminated the lease associated with our Fort Worth operations center. The termination resulted in $1.5 million in lease termination expense and a loss of $310,000 on retirement of assets. Securities . In the normal course of business we buy and sell securities. There were $30.2 million and $19.4 million of unsettled trades to purchase securities at September 30, 2016 and December 31, 2015 , respectively. There were no unsettled trades to sell securities as of September 30, 2016 . As of December 31, 2015 , there were $9.3 million of unsettled trades to sell securities. Deposits . There were no unsettled issuances of brokered CDs at September 30, 2016 or December 31, 2015 . Litigation . We are involved with various litigation in the normal course of business. Management, after consulting with our legal counsel, believes that any liability resulting from litigation will not have a material effect on our financial position, results of operations or liquidity. |
Summary of Significant Accoun23
Summary of Significant Accounting and Reporting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation In this report, the words “the Company,” “we,” “us,” and “our” refer to the combined entities of Southside Bancshares, Inc. and its subsidiaries. The words “Southside” and “Southside Bancshares” refer to Southside Bancshares, Inc. The words “Southside Bank” and “the Bank” refer to Southside Bank. “Omni” refers to OmniAmerican Bancorp, Inc., a bank holding company acquired by Southside on December 17, 2014. “SFG” refers to SFG Finance, LLC (formerly Southside Financial Group, LLC), which was a wholly-owned subsidiary of the Bank that was dissolved in April 2015. The consolidated balance sheet as of September 30, 2016 , and the related consolidated statements of income, comprehensive income, changes in shareholders’ equity, cash flows and notes to the financial statements for the three- and nine- month periods ended September 30, 2016 and 2015 are unaudited; in the opinion of management, all adjustments necessary for a fair statement of such financial statements have been included. Such adjustments consisted only of normal recurring items. All significant intercompany accounts and transactions are eliminated in consolidation. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires the use of management’s estimates. These estimates are subjective in nature and involve matters of judgment. Actual amounts could differ from these estimates. Certain prior period amounts have been reclassified to conform to current year presentation. In connection with the adoption of ASU 2015-03 “Interest - Imputation of Interest (Subtopic 835-30) - Simplifying the Presentation of Debt Issuance Costs,” that requires unamortized debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, our consolidated balance sheet as of December 31, 2015 reflects a decrease of $80,000 in other assets and long-term debt. On May 5, 2016 , our board of directors declared a 5% stock dividend to common stock shareholders of record as of May 31, 2016 , which was paid on June 28, 2016 . All share data has been adjusted to give retroactive recognition to stock dividends. Interim results are not necessarily indicative of results for a full year. These financial statements should be read in conjunction with the financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2015 . |
Derivative Financial Instruments and Hedging Activities Policy | Derivative Financial Instruments and Hedging Activities Derivative financial instruments are carried on the consolidated balance sheets as other assets or other liabilities, as applicable, at estimated fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative financial instrument is determined by whether it has been designated and qualifies as part of a hedging relationship and, further, by the type of hedging relationship. We present derivative financial instruments at fair value in the consolidated balance sheets on a net basis when a right of offset exists, based on transactions with a single counterparty and any cash collateral paid to and/or received from that counterparty for derivative contracts that are subject to legally enforceable master netting arrangements; however, fair value amounts recognized for derivatives and fair value amounts recognized for the right/obligation to reclaim/return cash collateral are not offset for financial reporting purposes. For derivative instruments that are designated and qualify as cash flow hedges (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period of change. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. For derivatives designated as hedging instruments at inception, statistical regression analysis is used at inception and for each reporting period thereafter to assess whether the derivative used has been and is expected to be highly effective in offsetting changes in the fair value or cash flows of the hedged item. All components of each derivative instrument’s gain or loss are included in the assessment of hedge effectiveness. Net hedge ineffectiveness or losses are recorded in “other noninterest income” on the consolidated statements of income. Further information on our derivative instruments and hedging activities is included in “Note 10 - Derivative Financial Instruments and Hedging Activities.” |
Accounting Pronouncements | Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” ASU 2016-02 requires a lessee to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP which requires only capital leases to be recognized on the balance sheet, the new ASU 2016-02 will require both types of leases to be recognized on the balance sheet. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the potential impact of the pending adoption of ASU 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification in the statement of cash flows. ASU 2016-09 requires that all excess tax benefits and tax deficiencies be recognized as income tax expense or benefit in the income statement and should be classified along with other income tax cash flows as an operating activity instead of a financing activity as currently required under GAAP. ASU 2016-09 also simplifies accounting for forfeitures by allowing an entity to make an entity-wide accounting policy election either to estimate the number of forfeitures expected to occur or to recognize the effects of forfeitures when they occur in compensation cost. Additionally, cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity, and to qualify for equity classification, an employer can now withhold up to the maximum statutory tax rate instead of the minimum statutory tax rate as currently required by GAAP. ASU 2016-09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. ASU 2016-09 is not expected to have a significant impact on our consolidated financial statements. In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing.” ASU 2016-10 clarifies certain aspects of ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” related to (i) identifying performance obligations and (ii) the licensing implementation guidance. ASU 2016-10 is effective concurrently with ASU 2014-09 which we are required to adopt in the first quarter of fiscal year 2018. Early adoption is permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through cumulative adjustment. We are currently evaluating the potential impact of the pending adoption of ASU 2016-10 on our consolidated financial statements and we have not yet identified which transition method will be applied upon adoption. In May 2016, the FASB issued ASU 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients.” ASU 2016-12 clarifies ASU 2014-09 “Revenue from Contracts with Customers (Topic 606)” guidance on (i) assessing collectability, (ii) presenting sales tax, (iii) measuring non-cash consideration and (iv) certain transition matters. ASU 2016-12 is effective concurrently with ASU 2014-09 which we are required to adopt in the first quarter of fiscal year 2018. Early adoption is permitted. The guidance permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through cumulative adjustment. We are currently evaluating the potential impact of the pending adoption of ASU 2016-12 on our consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” ASU 2016-13 introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. ASU 2016-13 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. ASU 2016-13 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The guidance requires companies to apply the requirements in the year of adoption through cumulative adjustment with some aspects of the update requiring a prospective transition approach. We are currently evaluating the potential impact of the pending adoption of ASU 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the Emerging Issues Task Force).” ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. ASU 2016-15 addresses eight classification issues related to the statement of cash flows: (i) debt prepayment or debt extinguishment, (ii) settlement of zero-coupon bonds, (iii) contingent consideration payments made after a business combination, (iv) proceeds from the settlement of insurance claims, (v) proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (vi) distributions received from equity method invitees, (vii) beneficial interest in securitizations transactions, and (viii) separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The guidance requires companies to apply the requirements retrospectively to all prior periods presented. If it is impracticable for a company to apply ASU 2016-15 retrospectively, requirements may be applied prospectively as of the earliest date practicable. We are currently evaluating the potential impact of the pending adoption of ASU 2016-15 on our consolidated financial statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per share on a basic and diluted basis | Earnings per share on a basic and diluted basis have been calculated as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Basic and Diluted Earnings: Net income $ 12,865 $ 11,762 $ 37,776 $ 32,305 Basic weighted-average shares outstanding 26,262 26,632 26,314 26,611 Add: Stock awards 153 89 111 89 Diluted weighted-average shares outstanding 26,415 26,721 26,425 26,700 Basic Earnings Per Share: $ 0.49 $ 0.44 $ 1.43 $ 1.21 Diluted Earnings Per Share: $ 0.49 $ 0.44 $ 1.43 $ 1.21 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income (loss) by component | The changes in accumulated other comprehensive income (loss) by component are as follows (in thousands): Three Months Ended September 30, 2016 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Service (Cost) Credit Net Gain (Loss) Total Beginning balance, net of tax $ 26,389 $ (3,496 ) $ (42 ) $ (17,806 ) $ 5,045 Other comprehensive income (loss): Other comprehensive (loss) income before reclassifications (10,960 ) 1,070 — — (9,890 ) Reclassified from accumulated other comprehensive income (2,327 ) 521 (10 ) 458 (1,358 ) Income tax benefit (expense) 4,650 (557 ) 4 (160 ) 3,937 Net current-period other comprehensive income (loss), net of tax (8,637 ) 1,034 (6 ) 298 (7,311 ) Ending balance, net of tax $ 17,752 $ (2,462 ) $ (48 ) $ (17,508 ) $ (2,266 ) Nine Months Ended September 30, 2016 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Net Gain (Loss) Total Beginning balance, net of tax $ (239 ) $ — $ (44 ) $ (18,400 ) $ (18,683 ) Other comprehensive income (loss): Other comprehensive income (loss) before reclassifications 33,031 (5,125 ) — — 27,906 Reclassified from accumulated other comprehensive income (5,352 ) 1,338 (6 ) 1,371 (2,649 ) Income tax (expense) benefit (9,688 ) 1,325 2 (479 ) (8,840 ) Net current-period other comprehensive income (loss), net of tax 17,991 (2,462 ) (4 ) 892 16,417 Ending balance, net of tax $ 17,752 $ (2,462 ) $ (48 ) $ (17,508 ) $ (2,266 ) Three Months Ended September 30, 2015 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Service (Cost) Credit Net Gain (Loss) Total Beginning balance, net of tax $ 1,396 $ — $ 2 $ (21,071 ) $ (19,673 ) Other comprehensive income (loss): Other comprehensive income before reclassifications 13,446 — — — 13,446 Reclassified from accumulated other comprehensive income (655 ) — (4 ) 691 32 Income tax (expense) benefit (4,477 ) — 1 (242 ) (4,718 ) Net current-period other comprehensive income (loss), net of tax 8,314 — (3 ) 449 8,760 Ending balance, net of tax $ 9,710 $ — $ (1 ) $ (20,622 ) $ (10,913 ) Nine Months Ended September 30, 2015 Pension Plans Unrealized Gains (Losses) on Securities Unrealized Gains (Losses) on Derivatives Net Prior Service (Cost) Credit Net Gain (Loss) Total Beginning balance, net of tax $ 6,238 $ — $ 7 $ (21,815 ) $ (15,570 ) Other comprehensive income (loss): Other comprehensive income before reclassifications 8,051 — — — 8,051 Reclassified from accumulated other comprehensive income (2,710 ) — (12 ) 1,836 (886 ) Income tax (expense) benefit (1,869 ) — 4 (643 ) (2,508 ) Net current-period other comprehensive income (loss), net of tax 3,472 — (8 ) 1,193 4,657 Ending balance, net of tax $ 9,710 $ — $ (1 ) $ (20,622 ) $ (10,913 ) |
Reclassifications out of accumulated other comprehensive income | The reclassifications out of accumulated other comprehensive income (loss) into net income are presented below (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Unrealized losses on securities transferred to held to maturity: Amortization of unrealized losses (1) $ (16 ) $ (220 ) $ (160 ) $ (746 ) Tax benefit 6 77 56 261 Net of tax (10 ) (143 ) (104 ) (485 ) Unrealized gains and losses on available for sale securities: Realized net gain on sale of securities (2) $ 2,343 $ 875 $ 5,512 $ 3,456 Tax expense (820 ) (307 ) (1,929 ) (1,210 ) Net of tax 1,523 568 3,583 2,246 Derivatives: Realized net loss on interest rate swap derivatives (3) (521 ) — (1,338 ) — Tax benefit 182 — 468 — Net of tax (339 ) — (870 ) — Amortization of pension plan: Net actuarial loss (4) $ (458 ) $ (691 ) $ (1,371 ) $ (1,836 ) Prior service credit (4) 10 4 6 12 Total before tax (448 ) (687 ) (1,365 ) (1,824 ) Tax benefit 156 241 477 639 Net of tax (292 ) (446 ) (888 ) (1,185 ) Total reclassifications for the period, net of tax $ 882 $ (21 ) $ 1,721 $ 576 (1) Included in interest income on the consolidated statements of income. (2) Listed as net gain on sale of securities available for sale on the consolidated statements of income. (3) Included in interest expense for long-term obligations on the consolidated statements of income. (4) These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 8 - Employee Benefit Plans.” |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized cost and estimated fair value of investment and mortgage-backed securities | The amortized cost, gross unrealized gains and losses, carrying value, and estimated fair value of investment and mortgage-backed securities as of September 30, 2016 and December 31, 2015 are reflected in the tables below (in thousands): September 30, 2016 Recognized in OCI Not recognized in OCI Amortized Gross Unrealized Gross Unrealized Carrying Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Value Gains Losses Fair Value Investment Securities: U.S. Treasury $ 79,841 $ 109 $ 103 $ 79,847 $ — $ — $ 79,847 State and Political Subdivisions 414,383 10,299 942 423,740 — — 423,740 Other Stocks and Bonds 7,766 64 — 7,830 — — 7,830 Other Equity Securities 6,042 69 — 6,111 — — 6,111 Mortgage-backed Securities: (1) Residential 691,406 11,732 1,652 701,486 — — 701,486 Commercial 386,680 16,438 4 403,114 — — 403,114 Total $ 1,586,118 $ 38,711 $ 2,701 $ 1,622,128 $ — $ — $ 1,622,128 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 384,010 $ 3,867 $ 8,710 $ 379,167 $ 18,018 $ 1,141 $ 396,044 Mortgage-backed Securities: (1) Residential 34,045 — 39 34,006 1,971 25 35,952 Commercial 366,325 1,109 4,925 362,509 19,607 — 382,116 Total $ 784,380 $ 4,976 $ 13,674 $ 775,682 $ 39,596 $ 1,166 $ 814,112 December 31, 2015 Recognized in OCI Not recognized in OCI Amortized Gross Unrealized Gross Unrealized Carrying Gross Gross Unrealized Estimated AVAILABLE FOR SALE Cost Gains Losses Value Gains Losses Fair Value Investment Securities: U.S. Treasury $ 103,906 $ 61 $ 380 $ 103,587 $ — $ — $ 103,587 State and Political Subdivisions 236,534 8,323 611 244,246 — — 244,246 Other Stocks and Bonds 12,772 63 45 12,790 — — 12,790 Other Equity Securities 6,052 — 36 6,016 — — 6,016 Mortgage-backed Securities: (1) Residential 580,621 9,120 1,239 588,502 — — 588,502 Commercial 512,116 466 7,231 505,351 — — 505,351 Total $ 1,452,001 $ 18,033 $ 9,542 $ 1,460,492 $ — $ — $ 1,460,492 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 389,997 $ 4,772 $ 9,273 $ 385,496 $ 13,061 $ 1,363 $ 397,194 Mortgage-backed Securities: (1) Residential 31,430 — 51 31,379 2,018 1 33,396 Commercial 371,727 1,233 5,539 367,421 4,232 2,480 369,173 Total $ 793,154 $ 6,005 $ 14,863 $ 784,296 $ 19,311 $ 3,844 $ 799,763 (1) All mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Unrealized loss on securities | The following tables represent the fair value and unrealized loss on securities as of September 30, 2016 and December 31, 2015 (in thousands): As of September 30, 2016 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss AVAILABLE FOR SALE Investment Securities: U.S. Treasury $ 35,058 $ 103 $ — $ — $ 35,058 $ 103 State and Political Subdivisions 139,145 941 887 1 140,032 942 Mortgage-backed Securities: Residential 192,591 1,600 10,063 52 202,654 1,652 Commercial 5,163 4 — — 5,163 4 Total $ 371,957 $ 2,648 $ 10,950 $ 53 $ 382,907 $ 2,701 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 21,479 $ 176 $ 27,610 $ 965 $ 49,089 $ 1,141 Mortgage-backed Securities: Residential 8,182 25 — — 8,182 25 Total $ 29,661 $ 201 $ 27,610 $ 965 $ 57,271 $ 1,166 As of December 31, 2015 Less Than 12 Months More Than 12 Months Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized AVAILABLE FOR SALE Investment Securities: U.S. Treasury $ 64,172 $ 380 $ — $ — $ 64,172 $ 380 State and Political Subdivisions 15,550 116 19,270 495 34,820 611 Other Stocks and Bonds 2,954 45 — — 2,954 45 Other Equity Securities 6,016 36 — — 6,016 36 Mortgage-backed Securities: Residential 229,514 1,215 3,817 24 233,331 1,239 Commercial 422,316 7,039 5,110 192 427,426 7,231 Total $ 740,522 $ 8,831 $ 28,197 $ 711 $ 768,719 $ 9,542 HELD TO MATURITY Investment Securities: State and Political Subdivisions $ 24,340 $ 214 $ 62,240 $ 1,149 $ 86,580 $ 1,363 Mortgage-backed Securities: Residential 1,717 1 — — 1,717 1 Commercial 193,710 2,439 2,481 41 196,191 2,480 Total $ 219,767 $ 2,654 $ 64,721 $ 1,190 $ 284,488 $ 3,844 |
Interest income recognized on securities | Interest income recognized on securities for the periods presented (in thousands): Three Months Ended 2016 2015 U.S. Treasury $ 182 $ 360 U.S. Government Agency Debentures — 33 State and Political Subdivisions 5,467 5,550 Other Stocks and Bonds 39 54 Other Equity Securities 30 29 Mortgage-backed Securities 9,399 8,318 Total interest income on securities $ 15,117 $ 14,344 Nine Months Ended 2016 2015 U.S. Treasury $ 330 $ 821 U.S. Government Agency Debentures — 97 State and Political Subdivisions 15,959 17,065 Other Stocks and Bonds 154 158 Other Equity Securities 88 90 Mortgage-backed Securities 28,156 24,446 Total interest income on securities $ 44,687 $ 42,677 |
Amortized cost, carrying value and fair value of securities presented by contractual maturity | The amortized cost, carrying value and fair value of securities at September 30, 2016 , are presented below by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations. MBS are presented in total by category due to the fact that MBS typically are issued with stated principal amounts, and the securities are backed by pools of mortgages that have loans with varying maturities. The characteristics of the underlying pool of mortgages, such as fixed-rate or adjustable-rate, as well as prepayment risk, are passed on to the security holder. The term of a mortgage-backed pass-through security thus approximates the term of the underlying mortgages and can vary significantly due to prepayments. September 30, 2016 Amortized Cost Fair Value AVAILABLE FOR SALE (in thousands) Investment Securities: Due in one year or less $ 4,710 $ 4,740 Due after one year through five years 26,479 28,008 Due after five years through ten years 116,444 117,966 Due after ten years 354,357 360,703 501,990 511,417 Mortgage-backed Securities and Other Equity Securities: 1,084,128 1,110,711 Total $ 1,586,118 $ 1,622,128 September 30, 2016 Carrying Value Fair Value HELD TO MATURITY (in thousands) Investment Securities: Due in one year or less $ 6,497 $ 6,458 Due after one year through five years 42,722 43,507 Due after five years through ten years 96,615 100,477 Due after ten years 233,333 245,602 379,167 396,044 Mortgage-backed Securities: 396,515 418,068 Total $ 775,682 $ 814,112 |
Loans and Allowance for Proba27
Loans and Allowance for Probable Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Classification of loans in the consolidated balance sheets | Loans in the accompanying consolidated balance sheets are classified as follows (in thousands): September 30, 2016 December 31, 2015 Real Estate Loans: Construction $ 466,323 $ 438,247 1-4 Family Residential 644,746 655,410 Commercial 759,795 635,210 Commercial Loans 191,154 242,527 Municipal Loans 293,949 288,115 Loans to Individuals 127,674 172,244 Total Loans (1) 2,483,641 2,431,753 Less: Allowance for Loan Losses (2) 15,993 19,736 Net Loans $ 2,467,648 $ 2,412,017 (1) Includes approximately $420.4 million and $581.1 million of loans acquired with the Omni acquisition as of September 30, 2016 and December 31, 2015 , respectively. (2) The allowance for loan loss recorded on PCI loans totaled $3,000 and $629,000 as of September 30, 2016 and December 31, 2015 , respectively. |
Activity in the allowance for loan losses by portfolio segment | The following tables detail activity in the allowance for loan losses by portfolio segment for the periods presented (in thousands): Three Months Ended September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 4,423 $ 1,686 $ 4,680 $ 2,474 $ 737 $ 908 $ 14,908 Provision (reversal) for loan losses (2) 734 574 556 (682 ) 1 448 1,631 Loans charged off — (24 ) — (452 ) — (781 ) (1,257 ) Recoveries of loans charged off — 7 6 344 — 354 711 Balance at end of period $ 5,157 $ 2,243 $ 5,242 $ 1,684 $ 738 $ 929 $ 15,993 Nine Months Ended September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans (1) Municipal Loans Loans to Individuals Total Balance at beginning of period $ 4,350 $ 2,595 $ 4,577 $ 6,596 $ 725 $ 893 $ 19,736 Provision (reversal) for loan losses (2) 538 (449 ) 648 6,032 (236 ) 1,182 7,715 Loans charged off — (43 ) — (11,375 ) — (2,283 ) (13,701 ) Recoveries of loans charged off 269 140 17 431 249 1,137 2,243 Balance at end of period $ 5,157 $ 2,243 $ 5,242 $ 1,684 $ 738 $ 929 $ 15,993 (1) Of the $11.4 million in commercial charge-offs recorded for the nine months ended September 30, 2016 , $10.9 million relates to the charge-off of two large commercial borrowing relationships. (2) Of the $1.6 million recorded in provision for loan losses for the three months ended September 30, 2016 , none related to provision expense on PCI loans. Of the $7.7 million recorded in provision for loan losses for the nine months ended September 30, 2016 , $1.4 million related to provision expense on PCI loans. Three Months Ended September 30, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period $ 2,909 $ 3,468 $ 3,529 $ 5,013 $ 833 $ 1,070 $ 16,822 Provision (reversal) for loan losses (2) 630 (634 ) 143 1,514 15 608 2,276 Loans charged off — (14 ) — (78 ) — (1,209 ) (1,301 ) Recoveries of loans charged off 34 83 5 40 — 443 605 Balance at end of period $ 3,573 $ 2,903 $ 3,677 $ 6,489 $ 848 $ 912 $ 18,402 Nine Months Ended September 30, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Balance at beginning of period (1) $ 2,456 $ 2,822 $ 3,025 $ 3,279 $ 716 $ 994 $ 13,292 Provision (reversal) for loan losses (2) 991 32 574 3,271 132 1,392 6,392 Loans charged off — (60 ) — (185 ) — (3,035 ) (3,280 ) Recoveries of loans charged off 126 109 78 124 — 1,561 1,998 Balance at end of period $ 3,573 $ 2,903 $ 3,677 $ 6,489 $ 848 $ 912 $ 18,402 (1) Loans acquired with the Omni acquisition were measured at fair value on December 17, 2014 with no carryover of allowance for loan loss. (2) Of the $2.3 million and $6.4 million recorded in provision for loan losses for the three and nine months ended September 30, 2015 , $446,000 related to provision expense on PCI loans. |
Balance in the allowance for loan losses by portfolio segment based on impairment method | The following tables present the balance in the allowance for loan losses by portfolio segment based on impairment method (in thousands): As of September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Ending balance – individually evaluated for impairment (1) $ 15 $ 15 $ 29 $ 42 $ 12 $ 117 $ 230 Ending balance – collectively evaluated for impairment 5,142 2,228 5,213 1,642 726 812 15,763 Balance at end of period $ 5,157 $ 2,243 $ 5,242 $ 1,684 $ 738 $ 929 $ 15,993 As of December 31, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Ending balance – individually evaluated for impairment (1) $ 12 $ 25 $ 137 $ 4,599 $ 13 $ 105 $ 4,891 Ending balance – collectively evaluated for impairment 4,338 2,570 4,440 1,997 712 788 14,845 Balance at end of period $ 4,350 $ 2,595 $ 4,577 $ 6,596 $ 725 $ 893 $ 19,736 (1) There was approximately $3,000 and $629,000 of allowance for loan losses associated with PCI loans as of September 30, 2016 and December 31, 2015 , respectively. |
Balance in recorded investments in loans by portfolio segment based on impairment method | The following tables present the recorded investment in loans by portfolio segment based on impairment method (in thousands): September 30, 2016 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Loans individually evaluated for impairment $ 680 $ 1,714 $ 3,233 $ 4,128 $ 571 $ 261 $ 10,587 Loans collectively evaluated for impairment 465,458 636,415 754,570 185,844 293,378 127,261 2,462,926 Purchased credit impaired loans 185 6,617 1,992 1,182 — 152 10,128 Total ending loan balance $ 466,323 $ 644,746 $ 759,795 $ 191,154 $ 293,949 $ 127,674 $ 2,483,641 December 31, 2015 Real Estate Construction 1-4 Family Residential Commercial Commercial Loans Municipal Loans Loans to Individuals Total Loans individually evaluated for impairment $ 508 $ 1,751 $ 3,757 $ 14,250 $ 637 $ 258 $ 21,161 Loans collectively evaluated for impairment 437,518 646,590 628,405 220,199 287,478 171,782 2,391,972 Purchased credit impaired loans 221 7,069 3,048 8,078 — 204 18,620 Total ending loan balance $ 438,247 $ 655,410 $ 635,210 $ 242,527 $ 288,115 $ 172,244 $ 2,431,753 |
Summary of loans by credit quality indicators | The following tables set forth loans by credit quality indicator for the periods presented (in thousands): September 30, 2016 Pass Pass Watch (1) Special Mention (1) Substandard (1) Doubtful (1) Total Real Estate Loans: Construction $ 446,934 $ 35 $ 11,859 $ 7,475 $ 20 $ 466,323 1-4 Family Residential 636,985 69 — 6,483 1,209 644,746 Commercial 739,583 586 7,666 11,960 — 759,795 Commercial Loans 177,005 1,959 4,518 7,659 13 191,154 Municipal Loans 292,380 — 998 571 — 293,949 Loans to Individuals 126,426 — — 701 547 127,674 Total $ 2,419,313 $ 2,649 $ 25,041 $ 34,849 $ 1,789 $ 2,483,641 December 31, 2015 Pass Pass Watch Special Mention (1) Substandard (1) Doubtful (1) Total Real Estate Loans: Construction $ 434,893 $ — $ 1,754 $ 1,576 $ 24 $ 438,247 1-4 Family Residential 643,498 1,403 1,636 4,915 3,958 655,410 Commercial 620,117 — — 14,988 105 635,210 Commercial Loans 204,775 716 1,738 27,681 7,617 242,527 Municipal Loans 286,415 — 1,063 637 — 288,115 Loans to Individuals 170,558 2 — 478 1,206 172,244 Total $ 2,360,256 $ 2,121 $ 6,191 $ 50,275 $ 12,910 $ 2,431,753 (1) Includes PCI loans comprised of $592,000 pass watch, $123,000 special mention, $5.2 million substandard and $28,000 doubtful as of September 30, 2016 . Includes PCI loans comprised of $95,000 special mention, $3.6 million substandard, and $9.9 million doubtful as of December 31, 2015 |
Summary of nonperforming assets for the period | The following table sets forth nonperforming assets for the periods presented (in thousands): At At Nonaccrual loans (1) $ 8,536 $ 20,526 Accruing loans past due more than 90 days (1) 1 3 Restructured loans (2) 7,193 11,143 Other real estate owned 237 744 Repossessed assets 41 64 Total Nonperforming Assets $ 16,008 $ 32,480 (1) Excludes PCI loans measured at fair value at acquisition. (2) Includes $3.2 million and $7.5 million in PCI loans restructured as of September 30, 2016 and December 31, 2015 , respectively. |
Recorded investment in nonaccrual by class of loans | The following table sets forth the recorded investment in nonaccrual loans by class of loans for the periods presented (in thousands): Nonaccrual Loans (1) September 30, 2016 December 31, 2015 Real Estate Loans: Construction $ 305 $ 508 1-4 Family Residential 1,532 1,847 Commercial 2,341 2,816 Commercial Loans 3,685 13,896 Loans to Individuals 673 1,459 Total $ 8,536 $ 20,526 (1) Excludes PCI loans measured at fair value at acquisition. |
Summary of impaired loans by class of loans for the period | The following tables set forth impaired loans by class of loans for the periods presented (in thousands): September 30, 2016 Unpaid Contractual Principal Balance Recorded Investment With Allowance Related Allowance for Loan Losses Real Estate Loans: Construction $ 685 $ 680 $ 15 1-4 Family Residential 4,644 4,421 15 Commercial 3,730 3,629 29 Commercial Loans 4,453 4,221 42 Municipal Loans 571 571 12 Loans to Individuals 301 261 117 Total (1) $ 14,384 $ 13,783 $ 230 December 31, 2015 Unpaid Contractual Principal Balance Recorded Investment With Allowance Related Allowance for Loan Losses Real Estate Loans: Construction $ 1,320 $ 508 $ 12 1-4 Family Residential 1,842 1,751 25 Commercial 4,756 4,636 137 Commercial Loans 29,844 21,385 4,599 Municipal Loans 637 637 13 Loans to Individuals 288 257 105 Total (1) $ 38,687 $ 29,174 $ 4,891 (1) Includes $3.2 million and $8.0 million of PCI loans that experienced deterioration in credit quality subsequent to the acquisition date as of September 30, 2016 and December 31, 2015 , respectively. |
Aging of recorded investment in past due loans by class of loans | The following tables present the aging of the recorded investment in past due loans by class of loans (in thousands): September 30, 2016 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current (1) Total Real Estate Loans: Construction $ 214 $ 228 $ 245 $ 687 $ 465,636 $ 466,323 1-4 Family Residential 1,336 655 873 2,864 641,882 644,746 Commercial 1,072 201 114 1,387 758,408 759,795 Commercial Loans 724 151 2,708 3,583 187,571 191,154 Municipal Loans — — — — 293,949 293,949 Loans to Individuals 1,506 182 198 1,886 125,788 127,674 Total $ 4,852 $ 1,417 $ 4,138 $ 10,407 $ 2,473,234 $ 2,483,641 December 31, 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Current (1) Total Real Estate Loans: Construction $ 121 $ 258 $ 208 $ 587 $ 437,660 $ 438,247 1-4 Family Residential 3,703 781 1,080 5,564 649,846 655,410 Commercial 359 1,289 361 2,009 633,201 635,210 Commercial Loans 527 138 335 1,000 241,527 242,527 Municipal Loans — — — — 288,115 288,115 Loans to Individuals 2,457 608 285 3,350 168,894 172,244 Total $ 7,167 $ 3,074 $ 2,269 $ 12,510 $ 2,419,243 $ 2,431,753 (1) Includes PCI loans measured at fair value at acquisition. |
Average recorded investment and interest income on impaired loans | The following tables set forth average recorded investment and interest income recognized on impaired loans by class of loans for the periods presented (in thousands): Three Months Ended September 30, 2016 September 30, 2015 Average Recorded Investment (1) Interest Income Recognized (1) Average Recorded Investment (1) Interest Income Recognized (1) Real Estate Loans: Construction $ 564 $ 5 $ 1,004 $ — 1-4 Family residential 4,559 42 3,799 14 Commercial 4,281 21 3,782 25 Commercial loans 7,457 13 16,605 71 Municipal loans 604 8 902 10 Loans to individuals 275 2 1,241 2 Total $ 17,740 $ 91 $ 27,333 $ 122 Nine Months Ended September 30, 2016 September 30, 2015 Average Recorded Investment (1) Interest Income Recognized (1) Average Recorded (1) Interest Income Recognized (1) Real Estate Loans: Construction $ 519 $ 17 $ 1,835 $ — 1-4 Family Residential 2,915 124 3,868 43 Commercial 4,952 64 3,015 50 Commercial Loans 15,990 30 11,492 86 Municipal Loans 624 26 855 28 Loans to Individuals 262 6 867 3 Total $ 25,262 $ 267 $ 21,932 $ 210 (1) Excludes PCI loans measured at fair value at acquisition that have not experienced further deterioration in credit quality subsequent to the acquisition date. |
Schedule of recorded investment in loans modified | The following tables set forth the recorded balance of loans considered to be TDRs that were restructured during the periods presented (dollars in thousands): Three Months Ended September 30, 2016 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: 1-4 Family Residential $ — $ — $ 30 $ 30 2 Total $ — $ — $ 30 $ 30 2 Nine Months Ended September 30, 2016 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: Construction $ 375 $ — $ 23 $ 398 2 1-4 Family Residential — 73 2,737 2,810 5 Commercial 2,068 — — 2,068 1 Commercial Loans 1,082 — — 1,082 4 Loans to Individuals 19 — 72 91 6 Total $ 3,544 $ 73 $ 2,832 $ 6,449 18 Three Months Ended September 30, 2015 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: 1-4 Family Residential $ — $ 79 $ — $ 79 1 Commercial — — 1,290 1,290 2 Commercial Loans 12,941 — 7,443 20,384 8 Loans to Individuals 60 — 50 110 5 Total $ 13,001 $ 79 $ 8,783 $ 21,863 16 Nine Months Ended September 30, 2015 Extend Amortization Period Interest Rate Reductions Combination (1) Total Modifications Number of Loans Real Estate Loans: 1-4 Family Residential $ — $ 79 $ 259 $ 338 3 Commercial 28 — 1,290 1,318 3 Commercial Loans 13,241 — 7,443 20,684 9 Loans to Individuals 63 — 114 177 13 Total $ 13,332 $ 79 $ 9,106 $ 22,517 28 (1) These modifications may include an extension of the amortization period, interest rate reduction, and/or converting the loan to interest-only for a limited period of time. |
Schedule of acquired PCI Loans | The following table presents the outstanding principal balance and carrying value for PCI loans for the periods presented (in thousands): September 30, 2016 December 31, 2015 Outstanding principal balance $ 11,892 $ 27,644 Carrying amount $ 10,128 $ 18,620 |
Schedule of changes in accretable yield for pci loans | The following table presents the changes of the accretable yield during the periods for PCI loans (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Balance at beginning of period $ 1,598 $ 678 $ 2,493 $ 1,820 Additions — — — — Reclassifications (to) from nonaccretable discount 1,558 2,413 1,731 2,252 Accretion (336 ) (503 ) (1,404 ) (1,484 ) Balance at end of period $ 2,820 $ 2,588 $ 2,820 $ 2,588 |
Long-term Obligations (Tables)
Long-term Obligations (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of long-term obligation | Long-term obligations are summarized as follows (in thousands): September 30, December 31, Parent Company Subordinated notes: (1) 5.50% Subordinated Notes Due 2026, net of unamortized debt issuance costs (2) $ 98,089 $ — Total Subordinated notes 98,089 — Long-term debt: (3) Southside Statutory Trust III Due 2033, net of unamortized debt issuance costs (4) 20,543 20,539 Southside Statutory Trust IV Due 2037 (5) 23,196 23,196 Southside Statutory Trust V Due 2037 (6) 12,887 12,887 Magnolia Trust Company I Due 2035 (7) 3,609 3,609 Total Long-term debt 60,235 60,231 Total Parent company 158,324 60,231 Subsidiaries FHLB advances (8) 463,316 502,281 Total Subsidiaries 463,316 502,281 Total Long-term obligations $ 621,640 $ 562,512 (1) This long-term debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. (2) This debt carries a fixed rate of 5.50% through September 29, 2021 and thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus 429.7 basis points . (3) This long-term debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations. (4) This debt carries an adjustable rate of 3.77769% through December 30, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 294 basis points . (5) This debt carries an adjustable rate of 2.0565% through October 29, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 130 basis points . (6) This debt carries an adjustable rate of 3.10028% through December 14, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 225 basis points . (7) This debt carries an adjustable rate of 2.61711% through November 22, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 180 basis points . (8) At September 30, 2016 , the weighted average cost of these advances was 1.1% . Long-term FHLB advances have maturities ranging from December 2017 through July 2028 . |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
The components of net periodic benefit cost | The components of net periodic benefit cost (income) are as follows (in thousands): Three Months Ended September 30, Defined Benefit Defined Benefit Pension Plan Acquired Restoration 2016 2015 2016 2015 2016 2015 Service cost $ 347 $ 459 $ — $ — $ 52 $ 59 Interest cost 928 853 53 59 133 195 Expected return on assets (1,306 ) (1,421 ) (66 ) (73 ) — — Net loss amortization 412 377 — — 46 314 Prior service (credit) cost amortization (12 ) (6 ) — — 2 2 Net periodic benefit cost (income) $ 369 $ 262 $ (13 ) $ (14 ) $ 233 $ 570 Nine Months Ended September 30, Defined Benefit Defined Benefit Pension Plan Acquired Restoration 2016 2015 2016 2015 2016 2015 Service cost $ 1,031 $ 1,378 $ — $ — $ 155 $ 250 Interest cost 2,798 2,558 159 178 401 501 Expected return on assets (3,917 ) (4,263 ) (199 ) (220 ) — — Net loss amortization 1,232 1,129 — — 139 707 Prior service (credit) cost amortization (11 ) (17 ) — — 5 5 Special and contractual termination benefits 1,549 — — — — — Net periodic benefit cost (income) $ 2,682 $ 785 $ (40 ) $ (42 ) $ 700 $ 1,463 |
Derivative Financial Instrume30
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following tables present the notional and estimated fair value amount of derivative positions outstanding for the periods presented (in thousands): September 30, 2016 December 31, 2015 Estimated Fair Value Estimated Fair Value Notional Amount (1) Asset Derivative Liability Derivative Notional Amount (1) Asset Derivative Liability Derivative Derivatives designated as hedging instruments Interest rate contracts: Swaps-Cash Flow Hedge-Financial institution counterparties $ 250,000 $ 8 $ 3,796 $ 20,000 $ — $ 1 Derivatives designated as non-hedging instruments Interest rate contracts: Swaps-Financial institution counterparties 2,200 58 — — — — Swaps-Customer counterparties 2,200 — 58 — — — Gross derivatives 66 3,854 — 1 Offsetting derivative assets/liabilities (8 ) (8 ) — — Cash collateral received (posted) — (3,788 ) — — Net derivatives included in the consolidated balance sheets (2) $ 58 $ 58 $ — $ 1 (1) Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk, and are not reflected in the consolidated balance sheets. (2) Net derivative assets are included in “other assets” and net derivative liabilities are included in “other liabilities” on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. We had $8,000 of credit exposure at September 30, 2016 . We had no credit exposure at December 31, 2015 . |
Weighted Average Maturity And Interest Rates On Risk Management Interest Rate Swaps [Table Text Block] | The summarized expected weighted average remaining maturity of the notional amount of interest rate swaps and the weighted average interest rates associated with the amounts expected to be received or paid on interest rate swap agreements are presented below (dollars in thousands): September 30, 2016 December 31, 2015 Weighted Average Weighted Average Notional Amount Remaining Maturity (in years) Receive Rate (1) Pay Rate Notional Amount Remaining Maturity Receive Rate (1) Pay Swaps-Cash Flow Hedge Financial institution counterparties $ 250,000 5.7 0.52 % 1.31 % $ 20,000 4.9 0.29 % 1.53 % Swaps-Non-Hedging Financial institution counterparties 2,200 9.9 0.52 1.57 — — — — Customer counterparties 2,200 9.9 1.57 0.52 — — — — (1) Variable rates received on pay fixed swaps are based on one-month LIBOR rates in effect at September 30, 2016 and December 31, 2015 . |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value measurement on recurring and nonrecurring basis segregated by level of valuation inputs within fair value hierarchy utilized to measure fair value | he following tables summarize assets measured at fair value on a recurring and nonrecurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): As of September 30, 2016 Fair Value Measurements at the End of the Reporting Period Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring fair value measurements Investment Securities: U.S. Treasury $ 79,847 $ 79,847 $ — $ — State and Political Subdivisions 423,740 — 423,740 — Other Stocks and Bonds 7,830 — 7,830 — Other Equity Securities 6,111 6,111 — — Mortgage-backed Securities: (1) Residential 701,486 — 701,486 — Commercial 403,114 — 403,114 — Derivative assets: Interest rate swaps 66 — 66 — Total asset recurring fair value measurements $ 1,622,194 $ 85,958 $ 1,536,236 $ — Derivative liabilities: Interest rate swaps $ 3,854 $ — $ 3,854 $ — Total liability recurring fair value measurements $ 3,854 $ — $ 3,854 $ — Nonrecurring fair value measurements Foreclosed assets $ 278 $ — $ — $ 278 Impaired loans (2) 13,553 — — 13,553 Total asset nonrecurring fair value measurements $ 13,831 $ — $ — $ 13,831 As of December 31, 2015 Fair Value Measurements at the End of the Reporting Period Using Carrying Amount Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Recurring fair value measurements Investment Securities: U.S. Treasury $ 103,587 $ 103,587 $ — $ — State and Political Subdivisions 244,246 — 244,246 — Other Stocks and Bonds 12,790 — 12,790 — Other Equity Securities 6,016 6,016 — — Mortgage-backed Securities: (1) Residential 588,502 — 588,502 — Commercial 505,351 — 505,351 — Total asset recurring fair value measurements $ 1,460,492 $ 109,603 $ 1,350,889 $ — Nonrecurring fair value measurements Foreclosed assets $ 808 $ — $ — $ 808 Impaired loans (2) 24,283 — — 24,283 Total asset nonrecurring fair value measurements $ 25,091 $ — $ — $ 25,091 (1) All mortgage-backed securities are issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. (2) Impaired loans represent collateral-dependent loans with a specific valuation allowance. Losses on these loans represent charge-offs which are netted against the allowance for loan losses. |
Financial assets, financial liabilities, and unrecognized financial instruments at carrying amount and fair value | The following tables present our financial assets, financial liabilities, and unrecognized financial instruments measured on a nonrecurring basis at both their respective carrying amounts and estimated fair value (in thousands): Estimated Fair Value September 30, 2016 Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 199,088 $ 199,088 $ 199,088 $ — $ — Investment securities: Held to maturity, at carrying value 379,167 396,044 — 396,044 — Mortgage-backed securities: Held to maturity, at carrying value 396,515 418,068 — 418,068 — FHLB stock and other investments, at cost 57,343 57,343 — 57,343 — Loans, net of allowance for loan losses 2,467,648 2,497,131 — — 2,497,131 Loans held for sale 5,301 5,301 — 5,301 — Financial Liabilities: Deposits $ 3,581,387 $ 3,584,163 $ — $ 3,584,163 $ — Federal funds purchased and repurchase agreements 11,516 11,516 — 11,516 — FHLB advances 1,172,434 1,176,951 — 1,176,951 — Subordinated notes 98,089 98,089 — 98,089 — Long-term debt 60,235 45,190 — 45,190 — Estimated Fair Value December 31, 2015 Carrying Total Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 80,975 $ 80,975 $ 80,975 $ — $ — Investment securities: Held to maturity, at carrying value 385,496 397,194 — 397,194 — Mortgage-backed securities: Held to maturity, at carrying value 398,800 402,569 — 402,569 — FHLB stock and other investments, at cost 56,509 56,509 — 56,509 — Loans, net of allowance for loan losses 2,412,017 2,364,968 — — 2,364,968 Loans held for sale 3,811 3,811 — 3,811 — Financial Liabilities: Deposits $ 3,455,407 $ 3,449,002 $ — $ 3,449,002 $ — Federal funds purchased and repurchase agreements 2,429 2,429 — 2,429 — FHLB advances 1,147,688 1,143,218 — 1,143,218 — Long-term debt 60,311 43,695 — 43,695 — |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The income tax expense included in the accompanying statements of income consists of the following (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Current income tax expense $ 1,331 $ 2,666 $ 6,570 $ 8,555 Deferred income tax (benefit) expense 1,410 (695 ) 1,916 (2,714 ) Income tax expense $ 2,741 $ 1,971 $ 8,486 $ 5,841 |
Off-Balance-Sheet Arrangement33
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of unused commitments | Financial instruments with off-balance-sheet risk were as follows (in thousands): At At Unused commitments: Commitments to extend credit $ 648,491 $ 546,660 Standby letters of credit 9,180 7,752 Total $ 657,671 $ 554,412 |
Summary of Significant Accoun34
Summary of Significant Accounting and Reporting Policies - Reclassifications (Details) - Accounting Standards Update 2015-03 $ in Thousands | Dec. 31, 2015USD ($) |
Other assets | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs presented as a direct deduction from carrying amount of debt liability | $ (80) |
Long-term debt | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs presented as a direct deduction from carrying amount of debt liability | $ 80 |
Summary of Significant Accoun35
Summary of Significant Accounting and Reporting Policies - Stock Dividend Percentage (Details) | 9 Months Ended | |
Sep. 30, 2016Rate | Sep. 30, 2015Rate | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Stock Dividends Payable, Date Declared | May 5, 2016 | |
Stock dividend, percentage of common stock | 5.00% | 5.00% |
Stock Dividends Payable, Date of Record | May 31, 2016 | |
Stock Dividends Payable, Date Paid | Jun. 28, 2016 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | Dec. 17, 2014USD ($)banking_office | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) |
Business Acquisition [Line Items] | |||
Goodwill | $ 91,520 | $ 91,520 | |
OmniAmerican Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Date of acquisition | Dec. 17, 2014 | ||
Percentage of voting interests acquired | 100.00% | ||
Name of acquired entity | OmniAmerican Bancorp, Inc. | ||
Number of banking offices | banking_office | 14 | ||
Total merger consideration | $ 298,300 | ||
Fair value of assets acquired, excluding goodwill | 1,360,000 | ||
Total loans included in fair value of assets acquired | 763,500 | ||
Total investment securities included in fair value of assets acquired | 428,400 | ||
Fair value of liabilities assumed, adjusted for subsequent measurement period adjustments | 1,130,000 | ||
Deposits included in fair value of liabilities assumed | 801,300 | ||
Goodwill | $ 69,500 | ||
Core Deposits | OmniAmerican Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Core deposit intangible | $ 8,600 | ||
Remaining amortization period | 10 years |
Earnings Per Share - Earnings
Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Basic and Diluted Earnings: | ||||
Net income | $ 12,865 | $ 11,762 | $ 37,776 | $ 32,305 |
Basic weighted-average shares outstanding | 26,262 | 26,632 | 26,314 | 26,611 |
Add: Stock awards (in shares) | 153 | 89 | 111 | 89 |
Diluted weighted-average shares outstanding | 26,415 | 26,721 | 26,425 | 26,700 |
Basic Earnings Per Share: | ||||
Earnings per common share - basic (in dollars per share) | $ 0.49 | $ 0.44 | $ 1.43 | $ 1.21 |
Diluted Earnings Per Share: | ||||
Earnings per common share - diluted (in dollars per share) | $ 0.49 | $ 0.44 | $ 1.43 | $ 1.21 |
Antidilutive securities from non-qualified stock options excluded from calculating earnings | ||||
Number of antidilutive options (in shares) | 3 | 62 | 28 | 28 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) - Accumulated Other Comprehensive Income, Changes In (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Accumulated Other Comprehensive Income by Component, Changes [Line Items] | |||||
Beginning Balance | $ 444,062 | $ 425,243 | |||
Income tax benefit (expense) | $ 3,937 | $ (4,718) | (8,840) | (2,508) | |
Ending Balance | 472,560 | 447,148 | 472,560 | 447,148 | |
Unrealized Gains (Losses) on Securities | |||||
Accumulated Other Comprehensive Income by Component, Changes [Line Items] | |||||
Beginning Balance | 26,389 | 1,396 | (239) | 6,238 | |
Other comprehensive (loss) income before reclassifications | (10,960) | 13,446 | 33,031 | 8,051 | |
Reclassified from accumulated other comprehensive income | (2,327) | (655) | (5,352) | (2,710) | |
Income tax benefit (expense) | 4,650 | (4,477) | (9,688) | (1,869) | |
Net current-period other comprehensive income (loss), net of tax | (8,637) | 8,314 | 17,991 | 3,472 | |
Ending Balance | 17,752 | 9,710 | 17,752 | 9,710 | |
Unrealized Gains (Losses) on Derivatives | |||||
Accumulated Other Comprehensive Income by Component, Changes [Line Items] | |||||
Beginning Balance | (3,496) | 0 | 0 | 0 | |
Other comprehensive (loss) income before reclassifications | 1,070 | 0 | (5,125) | 0 | |
Reclassified from accumulated other comprehensive income | 521 | 0 | 1,338 | 0 | |
Income tax benefit (expense) | (557) | 0 | 1,325 | 0 | |
Net current-period other comprehensive income (loss), net of tax | 1,034 | 0 | (2,462) | 0 | |
Ending Balance | (2,462) | 0 | (2,462) | 0 | |
Pension Plans | |||||
Accumulated Other Comprehensive Income by Component, Changes [Line Items] | |||||
Reclassified from accumulated other comprehensive income | 448 | 687 | 1,365 | 1,824 | |
Net Prior Service (Cost) Credit | |||||
Accumulated Other Comprehensive Income by Component, Changes [Line Items] | |||||
Beginning Balance | (42) | 2 | (44) | 7 | |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 | |
Reclassified from accumulated other comprehensive income | [1] | (10) | (4) | (6) | (12) |
Income tax benefit (expense) | 4 | 1 | 2 | 4 | |
Net current-period other comprehensive income (loss), net of tax | (6) | (3) | (4) | (8) | |
Ending Balance | (48) | (1) | (48) | (1) | |
Net Gain (Loss) | |||||
Accumulated Other Comprehensive Income by Component, Changes [Line Items] | |||||
Beginning Balance | (17,806) | (21,071) | (18,400) | (21,815) | |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 | |
Reclassified from accumulated other comprehensive income | [1] | 458 | 691 | 1,371 | 1,836 |
Income tax benefit (expense) | (160) | (242) | (479) | (643) | |
Net current-period other comprehensive income (loss), net of tax | 298 | 449 | 892 | 1,193 | |
Ending Balance | (17,508) | (20,622) | (17,508) | (20,622) | |
Total | |||||
Accumulated Other Comprehensive Income by Component, Changes [Line Items] | |||||
Beginning Balance | 5,045 | (19,673) | (18,683) | (15,570) | |
Other comprehensive (loss) income before reclassifications | (9,890) | 13,446 | 27,906 | 8,051 | |
Reclassified from accumulated other comprehensive income | (1,358) | 32 | (2,649) | (886) | |
Income tax benefit (expense) | 3,937 | (4,718) | (8,840) | (2,508) | |
Net current-period other comprehensive income (loss), net of tax | (7,311) | 8,760 | 16,417 | 4,657 | |
Ending Balance | $ (2,266) | $ (10,913) | $ (2,266) | $ (10,913) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 8 - Employee Benefit Plans.” |
Accumulated Other Comprehensi39
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of unrealized losses | $ (16) | $ (220) | $ (160) | $ (746) | |
Realized net gain on sale of securities | 2,343 | 875 | 5,512 | 3,456 | |
Tax benefit (expense) | (2,741) | (1,971) | (8,486) | (5,841) | |
Net of tax | 12,865 | 11,762 | 37,776 | 32,305 | |
Total reclassifications for the period, net of tax | 882 | (21) | 1,721 | 576 | |
Unrealized gains and losses on available for sale securities: | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before tax | 2,327 | 655 | 5,352 | 2,710 | |
Unrealized Gains (Losses) on Derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before tax | (521) | 0 | (1,338) | 0 | |
Net actuarial loss | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before tax | [1] | (458) | (691) | (1,371) | (1,836) |
Prior service credit | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before tax | [1] | 10 | 4 | 6 | 12 |
Amortization of pension plan: | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Total before tax | (448) | (687) | (1,365) | (1,824) | |
Tax benefit | 156 | 241 | 477 | 639 | |
Total reclassifications for the period, net of tax | (292) | (446) | (888) | (1,185) | |
Reclassification out of accumulated other comprehensive income | Unrealized losses on securities transferred to held to maturity: | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of unrealized losses | [2] | (16) | (220) | (160) | (746) |
Tax benefit (expense) | 6 | 77 | 56 | 261 | |
Net of tax | (10) | (143) | (104) | (485) | |
Reclassification out of accumulated other comprehensive income | Unrealized gains and losses on available for sale securities: | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Realized net gain on sale of securities | [3] | 2,343 | 875 | 5,512 | 3,456 |
Tax benefit (expense) | (820) | (307) | (1,929) | (1,210) | |
Net of tax | 1,523 | 568 | 3,583 | 2,246 | |
Reclassification out of accumulated other comprehensive income | Unrealized Gains (Losses) on Derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Tax benefit (expense) | 182 | 0 | 468 | 0 | |
Net of tax | (339) | 0 | (870) | 0 | |
Interest Rate Swap | Reclassification out of accumulated other comprehensive income | Unrealized Gains (Losses) on Derivatives | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest Income (Expense), Nonoperating, Net | [4] | $ (521) | $ 0 | $ (1,338) | $ 0 |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension cost (income) presented in “Note 8 - Employee Benefit Plans.” | ||||
[2] | Included in interest income on the consolidated statements of income. | ||||
[3] | Listed as net gain on sale of securities available for sale on the consolidated statements of income. | ||||
[4] | Included in interest expense for long-term obligations on the consolidated statements of income. |
Securities - Schedule of Debt
Securities - Schedule of Debt and Equity Securities Components (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
AVAILABLE FOR SALE | |||
Amortized cost | $ 1,586,118 | $ 1,452,001 | |
Gross unrealized gains, in OCI | 38,711 | 18,033 | |
Gross unrealized losses, in OCI | 2,701 | 9,542 | |
Estimated fair value | 1,622,128 | 1,460,492 | |
HELD TO MATURITY | |||
Amortized cost | 784,380 | 793,154 | |
Gross unrealized gains, in OCI | 4,976 | 6,005 | |
Gross unrealized losses, in OCI | 13,674 | 14,863 | |
Carrying value | 775,682 | 784,296 | |
Gross unrealized gains, not in OCI | 39,596 | 19,311 | |
Gross unrealized losses, not in OCI | 1,166 | 3,844 | |
Estimated fair value | 814,112 | 799,763 | |
U.S. Treasury | |||
AVAILABLE FOR SALE | |||
Amortized cost | 79,841 | 103,906 | |
Gross unrealized gains, in OCI | 109 | 61 | |
Gross unrealized losses, in OCI | 103 | 380 | |
Estimated fair value | 79,847 | 103,587 | |
State and Political Subdivisions | |||
AVAILABLE FOR SALE | |||
Amortized cost | 414,383 | 236,534 | |
Gross unrealized gains, in OCI | 10,299 | 8,323 | |
Gross unrealized losses, in OCI | 942 | 611 | |
Estimated fair value | 423,740 | 244,246 | |
HELD TO MATURITY | |||
Amortized cost | 384,010 | 389,997 | |
Gross unrealized gains, in OCI | 3,867 | 4,772 | |
Gross unrealized losses, in OCI | 8,710 | 9,273 | |
Carrying value | 379,167 | 385,496 | |
Gross unrealized gains, not in OCI | 18,018 | 13,061 | |
Gross unrealized losses, not in OCI | 1,141 | 1,363 | |
Estimated fair value | 396,044 | 397,194 | |
Other Stocks and Bonds | |||
AVAILABLE FOR SALE | |||
Amortized cost | 7,766 | 12,772 | |
Gross unrealized gains, in OCI | 64 | 63 | |
Gross unrealized losses, in OCI | 0 | 45 | |
Estimated fair value | 7,830 | 12,790 | |
Other Equity Securities | |||
AVAILABLE FOR SALE | |||
Amortized cost | 6,042 | 6,052 | |
Gross unrealized gains, in OCI | 69 | 0 | |
Gross unrealized losses, in OCI | 0 | 36 | |
Estimated fair value | 6,111 | 6,016 | |
Residential | |||
AVAILABLE FOR SALE | |||
Amortized cost | [1] | 691,406 | 580,621 |
Gross unrealized gains, in OCI | [1] | 11,732 | 9,120 |
Gross unrealized losses, in OCI | [1] | 1,652 | 1,239 |
Estimated fair value | [1] | 701,486 | 588,502 |
HELD TO MATURITY | |||
Amortized cost | [1] | 34,045 | 31,430 |
Gross unrealized gains, in OCI | [1] | 0 | 0 |
Gross unrealized losses, in OCI | [1] | 39 | 51 |
Carrying value | [1] | 34,006 | 31,379 |
Gross unrealized gains, not in OCI | [1] | 1,971 | 2,018 |
Gross unrealized losses, not in OCI | [1] | 25 | 1 |
Estimated fair value | [1] | 35,952 | 33,396 |
Commercial | |||
AVAILABLE FOR SALE | |||
Amortized cost | [1] | 386,680 | 512,116 |
Gross unrealized gains, in OCI | [1] | 16,438 | 466 |
Gross unrealized losses, in OCI | [1] | 4 | 7,231 |
Estimated fair value | [1] | 403,114 | 505,351 |
HELD TO MATURITY | |||
Amortized cost | [1] | 366,325 | 371,727 |
Gross unrealized gains, in OCI | [1] | 1,109 | 1,233 |
Gross unrealized losses, in OCI | [1] | 4,925 | 5,539 |
Carrying value | [1] | 362,509 | 367,421 |
Gross unrealized gains, not in OCI | [1] | 19,607 | 4,232 |
Gross unrealized losses, not in OCI | [1] | 0 | 2,480 |
Estimated fair value | [1] | $ 382,116 | $ 369,173 |
[1] | All mortgage-backed securities issued and/or guaranteed by U.S. government agencies or U.S. government-sponsored enterprises. |
Securities - Unrealized Loss o
Securities - Unrealized Loss on Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | $ 371,957 | $ 740,522 |
More than 12 months, fair value | 10,950 | 28,197 |
Total fair value | 382,907 | 768,719 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, unrealized loss | 2,648 | 8,831 |
More than 12 months, unrealized loss | 53 | 711 |
Total unrealized loss | 2,701 | 9,542 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 29,661 | 219,767 |
More than 12 months, fair value | 27,610 | 64,721 |
Total fair value | 57,271 | 284,488 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Losses [Abstract] | ||
Less than 12 months, unrealized loss | 201 | 2,654 |
More than 12 months, unrealized loss | 965 | 1,190 |
Total unrealized loss | 1,166 | 3,844 |
U.S. Treasury | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 35,058 | 64,172 |
More than 12 months, fair value | 0 | 0 |
Total fair value | 35,058 | 64,172 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, unrealized loss | 103 | 380 |
More than 12 months, unrealized loss | 0 | 0 |
Total unrealized loss | 103 | 380 |
State and Political Subdivisions | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 139,145 | 15,550 |
More than 12 months, fair value | 887 | 19,270 |
Total fair value | 140,032 | 34,820 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, unrealized loss | 941 | 116 |
More than 12 months, unrealized loss | 1 | 495 |
Total unrealized loss | 942 | 611 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 21,479 | 24,340 |
More than 12 months, fair value | 27,610 | 62,240 |
Total fair value | 49,089 | 86,580 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Losses [Abstract] | ||
Less than 12 months, unrealized loss | 176 | 214 |
More than 12 months, unrealized loss | 965 | 1,149 |
Total unrealized loss | 1,141 | 1,363 |
Other Stocks and Bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 2,954 | |
More than 12 months, fair value | 0 | |
Total fair value | 2,954 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, unrealized loss | 45 | |
More than 12 months, unrealized loss | 0 | |
Total unrealized loss | 45 | |
Other Equity Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 6,016 | |
More than 12 months, fair value | 0 | |
Total fair value | 6,016 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, unrealized loss | 36 | |
More than 12 months, unrealized loss | 0 | |
Total unrealized loss | 36 | |
Residential | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 192,591 | 229,514 |
More than 12 months, fair value | 10,063 | 3,817 |
Total fair value | 202,654 | 233,331 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, unrealized loss | 1,600 | 1,215 |
More than 12 months, unrealized loss | 52 | 24 |
Total unrealized loss | 1,652 | 1,239 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 8,182 | 1,717 |
More than 12 months, fair value | 0 | 0 |
Total fair value | 8,182 | 1,717 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Losses [Abstract] | ||
Less than 12 months, unrealized loss | 25 | 1 |
More than 12 months, unrealized loss | 0 | 0 |
Total unrealized loss | 25 | 1 |
Commercial | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 5,163 | 422,316 |
More than 12 months, fair value | 0 | 5,110 |
Total fair value | 5,163 | 427,426 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, unrealized loss | 4 | 7,039 |
More than 12 months, unrealized loss | 0 | 192 |
Total unrealized loss | $ 4 | 7,231 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 193,710 | |
More than 12 months, fair value | 2,481 | |
Total fair value | 196,191 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Losses [Abstract] | ||
Less than 12 months, unrealized loss | 2,439 | |
More than 12 months, unrealized loss | 41 | |
Total unrealized loss | $ 2,480 |
Securities - Interest Income o
Securities - Interest Income on Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | ||||
U.S. Treasury | $ 182 | $ 360 | $ 330 | $ 821 |
U.S. Government Agency Debentures | 0 | 33 | 0 | 97 |
State and Political Subdivisions | 5,467 | 5,550 | 15,959 | 17,065 |
Other Stocks and Bonds | 39 | 54 | 154 | 158 |
Other Equity Securities | 30 | 29 | 88 | 90 |
Mortgage-backed Securities | 9,399 | 8,318 | 28,156 | 24,446 |
Total interest income on securities | $ 15,117 | $ 14,344 | $ 44,687 | $ 42,677 |
Securities - Amortized Cost an
Securities - Amortized Cost and Estimated Fair Value of Investments in Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Amortized Cost | ||
Due in one year or less | $ 4,710 | |
Due after one year through five years | 26,479 | |
Due after five years through ten years | 116,444 | |
Due after ten years | 354,357 | |
Total available-for-sale investment securities | 501,990 | |
Mortgage-backed Securities and Other Equity Securities: | 1,084,128 | |
Total | 1,586,118 | |
Fair Value | ||
Due in one year or less | 4,740 | |
Due after one year through five years | 28,008 | |
Due after five years through ten years | 117,966 | |
Due after ten years | 360,703 | |
Total available-for-sale investment securities | 511,417 | |
Mortgage-backed Securities and Other Equity Securities: | 1,110,711 | |
Total | 1,622,128 | $ 1,460,492 |
Carrying Value | ||
Due in one year or less | 6,497 | |
Due after one year through five years | 42,722 | |
Due after five years through ten years | 96,615 | |
Due after ten years | 233,333 | |
Total held-to-maturity investment securities | 379,167 | |
Mortgage-backed securities | 396,515 | |
Carrying value | 775,682 | $ 784,296 |
Fair Value | ||
Due in one year or less | 6,458 | |
Due after one year through five years | 43,507 | |
Due after five years through ten years | 100,477 | |
Due after ten years | 245,602 | |
Total held-to-maturity investment securities | 396,044 | |
Mortgage-backed securities | 418,068 | |
Total | $ 814,112 |
Securities - Narrative (Detail
Securities - Narrative (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |||
Fair value of commercial mortgage-backed securities transferred from AFS to HTM | $ 0 | $ 57,700,000 | |
Unrealized gain on securities transferred from AFS to HTM | 1,300,000 | ||
Net unrealized gain on securities transferred from AFS to HTM | 864,000 | ||
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | |||
Net realized gain on AFS securities | 5,500,000 | 3,500,000 | |
Realized gains | 6,200,000 | 4,000,000 | |
Realized losses | 663,000 | 511,000 | |
Held-to-maturity Securities, Other Disclosure Items [Abstract] | |||
Sales from HTM portfolio | 0 | $ 0 | |
Carrying value of investment securities pledged as collateral | $ 1,410,000,000 | $ 1,330,000,000 |
Loans and Allowance for Proba45
Loans and Allowance for Probable Loan Losses - Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Loans and Financing Receivable [Line Items] | |||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment, PCI Loans | $ 3 | $ 629 | |
Loans and Leases Receivable Disclosure [Abstract] | |||
Total ending loan balance | [1] | 2,483,641 | 2,431,753 |
Less: Allowance for Loan Losses (2) | [2] | 15,993 | 19,736 |
Net Loans | 2,467,648 | 2,412,017 | |
Construction Real Estate Loans | |||
Loans and Leases Receivable Disclosure [Abstract] | |||
Total ending loan balance | 466,323 | 438,247 | |
1-4 Family Residential Real Estate Loans | |||
Loans and Leases Receivable Disclosure [Abstract] | |||
Total ending loan balance | 644,746 | 655,410 | |
Commercial Real Estate Loans | |||
Loans and Leases Receivable Disclosure [Abstract] | |||
Total ending loan balance | 759,795 | 635,210 | |
Commercial Loans | |||
Loans and Leases Receivable Disclosure [Abstract] | |||
Total ending loan balance | 191,154 | 242,527 | |
Municipal Loans | |||
Loans and Leases Receivable Disclosure [Abstract] | |||
Total ending loan balance | 293,949 | 288,115 | |
Loans to Individuals | |||
Loans and Leases Receivable Disclosure [Abstract] | |||
Total ending loan balance | 127,674 | 172,244 | |
OmniAmerican Bancorp, Inc. | |||
Loans and Financing Receivable [Line Items] | |||
Loans acquired carrying amount | $ 420,400 | $ 581,100 | |
[1] | Includes approximately $420.4 million and $581.1 million of loans acquired with the Omni acquisition as of September 30, 2016 and December 31, 2015, respectively. | ||
[2] | The allowance for loan loss recorded on PCI loans totaled $3,000 and $629,000 as of September 30, 2016 andDecember 31, 2015, respectively. |
Loans and Allowance for Proba46
Loans and Allowance for Probable Loan Losses - Allowance for Loan Losses Activity by Portfolio Segment (Details) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)Loan | Sep. 30, 2015USD ($) | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||||||
Provision for loan losses | $ 1,631,000 | $ 2,276,000 | $ 7,715,000 | $ 6,392,000 | ||||
Provision for PCI Loans | 0 | 446,000 | 1,400,000 | 446,000 | ||||
Change in Allowances for Loan Losses [Abstract] | ||||||||
Balance at beginning of period | 14,908,000 | 16,822,000 | 19,736,000 | 13,292,000 | [1] | |||
Provision (reversal) for loan losses | 1,631,000 | [2] | 2,276,000 | [3] | 7,715,000 | [2] | 6,392,000 | [3] |
Loans charged off | (1,257,000) | (1,301,000) | (13,701,000) | (3,280,000) | ||||
Recoveries of loans charged off | 711,000 | 605,000 | 2,243,000 | 1,998,000 | ||||
Balance at end of period | 15,993,000 | 18,402,000 | 15,993,000 | 18,402,000 | ||||
Partial Charge Offs on Commercial Relationships | $ 10,900,000 | |||||||
Number of loans partially charged-off | Loan | 2 | |||||||
Construction Real Estate Loans | ||||||||
Change in Allowances for Loan Losses [Abstract] | ||||||||
Balance at beginning of period | 4,423,000 | 2,909,000 | $ 4,350,000 | 2,456,000 | [1] | |||
Provision (reversal) for loan losses | 734,000 | 630,000 | 538,000 | 991,000 | ||||
Loans charged off | 0 | 0 | 0 | 0 | ||||
Recoveries of loans charged off | 0 | 34,000 | 269,000 | 126,000 | ||||
Balance at end of period | 5,157,000 | 3,573,000 | 5,157,000 | 3,573,000 | ||||
1-4 Family Residential Real Estate Loans | ||||||||
Change in Allowances for Loan Losses [Abstract] | ||||||||
Balance at beginning of period | 1,686,000 | 3,468,000 | 2,595,000 | 2,822,000 | [1] | |||
Provision (reversal) for loan losses | 574,000 | (634,000) | (449,000) | 32,000 | ||||
Loans charged off | (24,000) | (14,000) | (43,000) | (60,000) | ||||
Recoveries of loans charged off | 7,000 | 83,000 | 140,000 | 109,000 | ||||
Balance at end of period | 2,243,000 | 2,903,000 | 2,243,000 | 2,903,000 | ||||
Commercial Real Estate Loans | ||||||||
Change in Allowances for Loan Losses [Abstract] | ||||||||
Balance at beginning of period | 4,680,000 | 3,529,000 | 4,577,000 | 3,025,000 | [1] | |||
Provision (reversal) for loan losses | 556,000 | 143,000 | 648,000 | 574,000 | ||||
Loans charged off | 0 | 0 | 0 | 0 | ||||
Recoveries of loans charged off | 6,000 | 5,000 | 17,000 | 78,000 | ||||
Balance at end of period | 5,242,000 | 3,677,000 | 5,242,000 | 3,677,000 | ||||
Commercial Loans | ||||||||
Change in Allowances for Loan Losses [Abstract] | ||||||||
Balance at beginning of period | 2,474,000 | 5,013,000 | 6,596,000 | 3,279,000 | [1] | |||
Provision (reversal) for loan losses | (682,000) | 1,514,000 | 6,032,000 | 3,271,000 | ||||
Loans charged off | (452,000) | (78,000) | (11,375,000) | [4] | (185,000) | |||
Recoveries of loans charged off | 344,000 | 40,000 | 431,000 | 124,000 | ||||
Balance at end of period | 1,684,000 | 6,489,000 | 1,684,000 | 6,489,000 | ||||
Municipal Loans | ||||||||
Change in Allowances for Loan Losses [Abstract] | ||||||||
Balance at beginning of period | 737,000 | 833,000 | 725,000 | 716,000 | [1] | |||
Provision (reversal) for loan losses | 1,000 | 15,000 | (236,000) | 132,000 | ||||
Loans charged off | 0 | 0 | 0 | 0 | ||||
Recoveries of loans charged off | 0 | 0 | 249,000 | 0 | ||||
Balance at end of period | 738,000 | 848,000 | 738,000 | 848,000 | ||||
Loans to Individuals | ||||||||
Change in Allowances for Loan Losses [Abstract] | ||||||||
Balance at beginning of period | 908,000 | 1,070,000 | 893,000 | 994,000 | [1] | |||
Provision (reversal) for loan losses | 448,000 | 608,000 | 1,182,000 | 1,392,000 | ||||
Loans charged off | (781,000) | (1,209,000) | (2,283,000) | (3,035,000) | ||||
Recoveries of loans charged off | 354,000 | 443,000 | 1,137,000 | 1,561,000 | ||||
Balance at end of period | $ 929,000 | $ 912,000 | $ 929,000 | $ 912,000 | ||||
[1] | Loans acquired with the Omni acquisition were measured at fair value on December 17, 2014 with no carryover of allowance for loan loss. | |||||||
[2] | Of the $1.6 million recorded in provision for loan losses for the three months ended September 30, 2016, none related to provision expense on PCI loans. Of the $7.7 million recorded in provision for loan losses for the nine months ended September 30, 2016, $1.4 million related to provision expense on PCI loans. | |||||||
[3] | Of the $2.3 million and $6.4 million recorded in provision for loan losses for the three and nine months ended September 30, 2015, $446,000 related to provision expense on PCI loans. | |||||||
[4] | Of the $11.4 million in commercial charge-offs recorded for the nine months ended September 30, 2016, $10.9 million relates to the charge-off of two large commercial borrowing relationships. |
Loans and Allowance for Proba47
Loans and Allowance for Probable Loan Losses - Allowance Balance, by Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | [2] | |
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||
Ending balance - individually evaluated for impairment | [1] | $ 230 | $ 4,891 | |||||
Ending balance - collectively evaluated for impairment | 15,763 | 14,845 | ||||||
Balance at end of period | 15,993 | $ 14,908 | 19,736 | $ 18,402 | $ 16,822 | $ 13,292 | ||
Allowance for credit losses, individually evaluated for impairment, PCI loans | 3 | 629 | ||||||
Construction Real Estate Loans | ||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||
Ending balance - individually evaluated for impairment | [1] | 15 | 12 | |||||
Ending balance - collectively evaluated for impairment | 5,142 | 4,338 | ||||||
Balance at end of period | 5,157 | 4,423 | 4,350 | 3,573 | 2,909 | 2,456 | ||
1-4 Family Residential Real Estate Loans | ||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||
Ending balance - individually evaluated for impairment | [1] | 15 | 25 | |||||
Ending balance - collectively evaluated for impairment | 2,228 | 2,570 | ||||||
Balance at end of period | 2,243 | 1,686 | 2,595 | 2,903 | 3,468 | 2,822 | ||
Commercial Real Estate Loans | ||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||
Ending balance - individually evaluated for impairment | [1] | 29 | 137 | |||||
Ending balance - collectively evaluated for impairment | 5,213 | 4,440 | ||||||
Balance at end of period | 5,242 | 4,680 | 4,577 | 3,677 | 3,529 | 3,025 | ||
Commercial Loans | ||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||
Ending balance - individually evaluated for impairment | [1] | 42 | 4,599 | |||||
Ending balance - collectively evaluated for impairment | 1,642 | 1,997 | ||||||
Balance at end of period | 1,684 | 2,474 | 6,596 | 6,489 | 5,013 | 3,279 | ||
Municipal Loans | ||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||
Ending balance - individually evaluated for impairment | [1] | 12 | 13 | |||||
Ending balance - collectively evaluated for impairment | 726 | 712 | ||||||
Balance at end of period | 738 | 737 | 725 | 848 | 833 | 716 | ||
Loans to Individuals | ||||||||
Schedule of Allowance For Loan Losses, Allowance Balance, by Impairment Method [Line Items] | ||||||||
Ending balance - individually evaluated for impairment | [1] | 117 | 105 | |||||
Ending balance - collectively evaluated for impairment | 812 | 788 | ||||||
Balance at end of period | $ 929 | $ 908 | $ 893 | $ 912 | $ 1,070 | $ 994 | ||
[1] | There was approximately $3,000 and $629,000 of allowance for loan losses associated with PCI loans as of September 30, 2016 and December 31, 2015, respectively. | |||||||
[2] | Loans acquired with the Omni acquisition were measured at fair value on December 17, 2014 with no carryover of allowance for loan loss. |
Loans and Allowance for Proba48
Loans and Allowance for Probable Loan Losses - Allowance for Loan Losses, Loan Portfolio, by Impairment Method (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||
Loans individually evaluated for impairment | $ 10,587 | $ 21,161 | |
Loans collectively evaluated for impairment | 2,462,926 | 2,391,972 | |
Purchased credit impaired loans | 10,128 | 18,620 | |
Total ending loan balance | [1] | 2,483,641 | 2,431,753 |
Construction Real Estate Loans | |||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||
Loans individually evaluated for impairment | 680 | 508 | |
Loans collectively evaluated for impairment | 465,458 | 437,518 | |
Purchased credit impaired loans | 185 | 221 | |
Total ending loan balance | 466,323 | 438,247 | |
1-4 Family Residential Real Estate Loans | |||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||
Loans individually evaluated for impairment | 1,714 | 1,751 | |
Loans collectively evaluated for impairment | 636,415 | 646,590 | |
Purchased credit impaired loans | 6,617 | 7,069 | |
Total ending loan balance | 644,746 | 655,410 | |
Commercial Real Estate Loans | |||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||
Loans individually evaluated for impairment | 3,233 | 3,757 | |
Loans collectively evaluated for impairment | 754,570 | 628,405 | |
Purchased credit impaired loans | 1,992 | 3,048 | |
Total ending loan balance | 759,795 | 635,210 | |
Commercial Loans | |||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||
Loans individually evaluated for impairment | 4,128 | 14,250 | |
Loans collectively evaluated for impairment | 185,844 | 220,199 | |
Purchased credit impaired loans | 1,182 | 8,078 | |
Total ending loan balance | 191,154 | 242,527 | |
Municipal Loans | |||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||
Loans individually evaluated for impairment | 571 | 637 | |
Loans collectively evaluated for impairment | 293,378 | 287,478 | |
Purchased credit impaired loans | 0 | 0 | |
Total ending loan balance | 293,949 | 288,115 | |
Loans to Individuals | |||
Schedule of Allowance For Loan Losses, Loan Balance, by Impairment Method [Line Items] | |||
Loans individually evaluated for impairment | 261 | 258 | |
Loans collectively evaluated for impairment | 127,261 | 171,782 | |
Purchased credit impaired loans | 152 | 204 | |
Total ending loan balance | $ 127,674 | $ 172,244 | |
[1] | Includes approximately $420.4 million and $581.1 million of loans acquired with the Omni acquisition as of September 30, 2016 and December 31, 2015, respectively. |
Loans and Allowance for Proba49
Loans and Allowance for Probable Loan Losses - Loans by Credit Quality Indicator (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | ||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [1] | $ 2,483,641 | $ 2,431,753 | |
Purchased credit impaired loans | 10,128 | 18,620 | ||
Construction Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 466,323 | 438,247 | ||
Purchased credit impaired loans | 185 | 221 | ||
1-4 Family Residential Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 644,746 | 655,410 | ||
Purchased credit impaired loans | 6,617 | 7,069 | ||
Commercial Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 759,795 | 635,210 | ||
Purchased credit impaired loans | 1,992 | 3,048 | ||
Commercial Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 191,154 | 242,527 | ||
Purchased credit impaired loans | 1,182 | 8,078 | ||
Municipal Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 293,949 | 288,115 | ||
Purchased credit impaired loans | 0 | 0 | ||
Loans to Individuals | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 127,674 | 172,244 | ||
Purchased credit impaired loans | 152 | 204 | ||
Pass | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 2,419,313 | 2,360,256 | ||
Pass | Construction Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 446,934 | 434,893 | ||
Pass | 1-4 Family Residential Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 636,985 | 643,498 | ||
Pass | Commercial Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 739,583 | 620,117 | ||
Pass | Commercial Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 177,005 | 204,775 | ||
Pass | Municipal Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 292,380 | 286,415 | ||
Pass | Loans to Individuals | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 126,426 | 170,558 | ||
Pass Watch (1) | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 2,649 | [2] | 2,121 | |
Purchased credit impaired loans | 592 | |||
Pass Watch (1) | Construction Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 35 | [2] | 0 | |
Pass Watch (1) | 1-4 Family Residential Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 69 | [2] | 1,403 | |
Pass Watch (1) | Commercial Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 586 | [2] | 0 | |
Pass Watch (1) | Commercial Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 1,959 | [2] | 716 | |
Pass Watch (1) | Municipal Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 0 | [2] | 0 | |
Pass Watch (1) | Loans to Individuals | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | 0 | [2] | 2 | |
Special Mention | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 25,041 | 6,191 | |
Purchased credit impaired loans | 123 | 95 | ||
Special Mention | Construction Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 11,859 | 1,754 | |
Special Mention | 1-4 Family Residential Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 0 | 1,636 | |
Special Mention | Commercial Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 7,666 | 0 | |
Special Mention | Commercial Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 4,518 | 1,738 | |
Special Mention | Municipal Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 998 | 1,063 | |
Special Mention | Loans to Individuals | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 0 | 0 | |
Substandard | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 34,849 | 50,275 | |
Purchased credit impaired loans | 5,200 | 3,600 | ||
Substandard | Construction Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 7,475 | 1,576 | |
Substandard | 1-4 Family Residential Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 6,483 | 4,915 | |
Substandard | Commercial Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 11,960 | 14,988 | |
Substandard | Commercial Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 7,659 | 27,681 | |
Substandard | Municipal Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 571 | 637 | |
Substandard | Loans to Individuals | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 701 | 478 | |
Doubtful | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 1,789 | 12,910 | |
Purchased credit impaired loans | 28 | 9,900 | ||
Doubtful | Construction Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 20 | 24 | |
Doubtful | 1-4 Family Residential Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 1,209 | 3,958 | |
Doubtful | Commercial Real Estate Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 0 | 105 | |
Doubtful | Commercial Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 13 | 7,617 | |
Doubtful | Municipal Loans | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | 0 | 0 | |
Doubtful | Loans to Individuals | ||||
Financing Receivable, Recorded Investment, Credit Quality Indicator [Abstract] | ||||
Loans | [2] | $ 547 | $ 1,206 | |
[1] | Includes approximately $420.4 million and $581.1 million of loans acquired with the Omni acquisition as of September 30, 2016 and December 31, 2015, respectively. | |||
[2] | Includes PCI loans comprised of $592,000 pass watch, $123,000 special mention, $5.2 million substandard and $28,000 doubtful as of September 30, 2016. Includes PCI loans comprised of $95,000 special mention, $3.6 million substandard, and $9.9 million doubtful as of December 31, 2015. |
Loans and Allowance for Proba50
Loans and Allowance for Probable Loan Losses - Nonperforming Assets by Asset Class (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Purchase Credit Impaired Loans Restructured | $ 3,200 | $ 7,500 | |
Nonperforming Assets by Asset Class [Abstract] | |||
Nonaccrual loans | [1] | 8,536 | 20,526 |
Accruing loans past due more than 90 days | [1] | 1 | 3 |
Restructured loans | [2] | 7,193 | 11,143 |
Other real estate owned | 237 | 744 | |
Repossessed assets | 41 | 64 | |
Total Nonperforming Assets | $ 16,008 | $ 32,480 | |
[1] | Excludes PCI loans measured at fair value at acquisition. | ||
[2] | Includes $3.2 million and $7.5 million in PCI loans restructured as of September 30, 2016 and December 31, 2015, respectively. |
Loans and Allowance for Proba51
Loans and Allowance for Probable Loan Losses - Nonaccrual by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | [1] | $ 8,536 | $ 20,526 |
Construction Real Estate Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | [1] | 305 | 508 |
1-4 Family Residential Real Estate Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | [1] | 1,532 | 1,847 |
Commercial Real Estate Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | [1] | 2,341 | 2,816 |
Commercial Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | [1] | 3,685 | 13,896 |
Loans to Individuals | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Nonaccrual loans | [1] | $ 673 | $ 1,459 |
[1] | Excludes PCI loans measured at fair value at acquisition. |
Loans and Allowance for Proba52
Loans and Allowance for Probable Loan Losses - Impaired Loans by Class of Loan (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid Contractual Principal Balance | [1] | $ 14,384 | $ 38,687 |
Recorded Investment With Allowance | [1] | 13,783 | 29,174 |
Related Allowance for Loan Losses | 230 | 4,891 | |
Purchase credit impaired loans, with deterioration in credit quality, after acquisition | 3,200 | 8,000 | |
Construction Real Estate Loans | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid Contractual Principal Balance | 685 | 1,320 | |
Recorded Investment With Allowance | 680 | 508 | |
Related Allowance for Loan Losses | 15 | 12 | |
1-4 Family Residential Real Estate Loans | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid Contractual Principal Balance | 4,644 | 1,842 | |
Recorded Investment With Allowance | 4,421 | 1,751 | |
Related Allowance for Loan Losses | 15 | 25 | |
Commercial Real Estate Loans | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid Contractual Principal Balance | 3,730 | 4,756 | |
Recorded Investment With Allowance | 3,629 | 4,636 | |
Related Allowance for Loan Losses | 29 | 137 | |
Commercial Loans | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid Contractual Principal Balance | 4,453 | 29,844 | |
Recorded Investment With Allowance | 4,221 | 21,385 | |
Related Allowance for Loan Losses | 42 | 4,599 | |
Municipal Loans | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid Contractual Principal Balance | 571 | 637 | |
Recorded Investment With Allowance | 571 | 637 | |
Related Allowance for Loan Losses | 12 | 13 | |
Loans to Individuals | |||
Impaired Financing Receivable, Recorded Investment [Abstract] | |||
Unpaid Contractual Principal Balance | 301 | 288 | |
Recorded Investment With Allowance | 261 | 257 | |
Related Allowance for Loan Losses | $ 117 | $ 105 | |
[1] | Includes $3.2 million and $8.0 million of PCI loans that experienced deterioration in credit quality subsequent to the acquisition date as of September 30, 2016 and December 31, 2015, respectively. |
Loans and Allowance for Proba53
Loans and Allowance for Probable Loan Losses - Aging of Past Due Loans by Class of Loan (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 10,407 | $ 12,510 | |
Current | [1] | 2,473,234 | 2,419,243 |
Total ending loan balance | [2] | 2,483,641 | 2,431,753 |
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,852 | 7,167 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,417 | 3,074 | |
Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,138 | 2,269 | |
Construction Real Estate Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 687 | 587 | |
Current | [1] | 465,636 | 437,660 |
Total ending loan balance | 466,323 | 438,247 | |
Construction Real Estate Loans | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 214 | 121 | |
Construction Real Estate Loans | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 228 | 258 | |
Construction Real Estate Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 245 | 208 | |
1-4 Family Residential Real Estate Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,864 | 5,564 | |
Current | [1] | 641,882 | 649,846 |
Total ending loan balance | 644,746 | 655,410 | |
1-4 Family Residential Real Estate Loans | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,336 | 3,703 | |
1-4 Family Residential Real Estate Loans | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 655 | 781 | |
1-4 Family Residential Real Estate Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 873 | 1,080 | |
Commercial Real Estate Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,387 | 2,009 | |
Current | [1] | 758,408 | 633,201 |
Total ending loan balance | 759,795 | 635,210 | |
Commercial Real Estate Loans | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,072 | 359 | |
Commercial Real Estate Loans | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 201 | 1,289 | |
Commercial Real Estate Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 114 | 361 | |
Commercial Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,583 | 1,000 | |
Current | [1] | 187,571 | 241,527 |
Total ending loan balance | 191,154 | 242,527 | |
Commercial Loans | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 724 | 527 | |
Commercial Loans | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 151 | 138 | |
Commercial Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,708 | 335 | |
Municipal Loans | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | [1] | 293,949 | 288,115 |
Total ending loan balance | 293,949 | 288,115 | |
Municipal Loans | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Municipal Loans | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Municipal Loans | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Loans to Individuals | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,886 | 3,350 | |
Current | [1] | 125,788 | 168,894 |
Total ending loan balance | 127,674 | 172,244 | |
Loans to Individuals | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,506 | 2,457 | |
Loans to Individuals | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 182 | 608 | |
Loans to Individuals | Greater than 90 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 198 | $ 285 | |
[1] | Includes PCI loans measured at fair value at acquisition. | ||
[2] | Includes approximately $420.4 million and $581.1 million of loans acquired with the Omni acquisition as of September 30, 2016 and December 31, 2015, respectively. |
Loans and Allowance for Proba54
Loans and Allowance for Probable Loan Losses - Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Impaired Financing Receivable, Average Recorded Investment and Interest Income on Impaired Loans [Abstract] | |||||
Average recorded investment | [1] | $ 17,740 | $ 27,333 | $ 25,262 | $ 21,932 |
Interest income recognized | [1] | 91 | 122 | 267 | 210 |
Construction Real Estate Loans | |||||
Impaired Financing Receivable, Average Recorded Investment and Interest Income on Impaired Loans [Abstract] | |||||
Average recorded investment | [1] | 564 | 1,004 | 519 | 1,835 |
Interest income recognized | [1] | 5 | 0 | 17 | 0 |
1-4 Family Residential Real Estate Loans | |||||
Impaired Financing Receivable, Average Recorded Investment and Interest Income on Impaired Loans [Abstract] | |||||
Average recorded investment | [1] | 4,559 | 3,799 | 2,915 | 3,868 |
Interest income recognized | [1] | 42 | 14 | 124 | 43 |
Commercial Real Estate Loans | |||||
Impaired Financing Receivable, Average Recorded Investment and Interest Income on Impaired Loans [Abstract] | |||||
Average recorded investment | [1] | 4,281 | 3,782 | 4,952 | 3,015 |
Interest income recognized | [1] | 21 | 25 | 64 | 50 |
Commercial Loans | |||||
Impaired Financing Receivable, Average Recorded Investment and Interest Income on Impaired Loans [Abstract] | |||||
Average recorded investment | [1] | 7,457 | 16,605 | 15,990 | 11,492 |
Interest income recognized | [1] | 13 | 71 | 30 | 86 |
Municipal Loans | |||||
Impaired Financing Receivable, Average Recorded Investment and Interest Income on Impaired Loans [Abstract] | |||||
Average recorded investment | [1] | 604 | 902 | 624 | 855 |
Interest income recognized | [1] | 8 | 10 | 26 | 28 |
Loans to Individuals | |||||
Impaired Financing Receivable, Average Recorded Investment and Interest Income on Impaired Loans [Abstract] | |||||
Average recorded investment | [1] | 275 | 1,241 | 262 | 867 |
Interest income recognized | [1] | $ 2 | $ 2 | $ 6 | $ 3 |
[1] | Excludes PCI loans measured at fair value at acquisition that have not experienced further deterioration in credit quality subsequent to the acquisition date. |
Loans and Allowance for Proba55
Loans and Allowance for Probable Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($)contract | |||||
Troubled Debt Restructuring [Abstract] | ||||||||
Extend Amortization Period | $ 0 | $ 13,001 | $ 3,544 | $ 13,332 | ||||
Interest Rate Reductions | 0 | 79 | 73 | 79 | ||||
Combination | [1] | 30 | 8,783 | 2,832 | 9,106 | |||
Total Modifications | $ 30 | $ 21,863 | $ 6,449 | $ 22,517 | ||||
Number of Loans | contract | 2 | 16 | 18 | 28 | ||||
Construction Real Estate Loans | ||||||||
Troubled Debt Restructuring [Abstract] | ||||||||
Extend Amortization Period | $ 375 | |||||||
Interest Rate Reductions | 0 | |||||||
Combination | [1] | 23 | ||||||
Total Modifications | $ 398 | |||||||
Number of Loans | contract | 2 | |||||||
1-4 Family Residential Real Estate Loans | ||||||||
Troubled Debt Restructuring [Abstract] | ||||||||
Extend Amortization Period | $ 0 | $ 0 | $ 0 | $ 0 | ||||
Interest Rate Reductions | 0 | 79 | 73 | 79 | ||||
Combination | 30 | [1] | 0 | 2,737 | [1] | 259 | [1] | |
Total Modifications | $ 30 | $ 79 | $ 2,810 | $ 338 | ||||
Number of Loans | contract | 2 | 1 | 5 | 3 | ||||
Commercial Real Estate Loans | ||||||||
Troubled Debt Restructuring [Abstract] | ||||||||
Extend Amortization Period | $ 0 | $ 2,068 | $ 28 | |||||
Interest Rate Reductions | 0 | 0 | 0 | |||||
Combination | 1,290 | 0 | [1] | 1,290 | [1] | |||
Total Modifications | $ 1,290 | $ 2,068 | $ 1,318 | |||||
Number of Loans | contract | 2 | 1 | 3 | |||||
Commercial Loans | ||||||||
Troubled Debt Restructuring [Abstract] | ||||||||
Extend Amortization Period | $ 12,941 | $ 1,082 | $ 13,241 | |||||
Interest Rate Reductions | 0 | 0 | 0 | |||||
Combination | [1] | 7,443 | 0 | 7,443 | ||||
Total Modifications | $ 20,384 | $ 1,082 | $ 20,684 | |||||
Number of Loans | contract | 8 | 4 | 9 | |||||
Loans to Individuals | ||||||||
Troubled Debt Restructuring [Abstract] | ||||||||
Extend Amortization Period | $ 60 | $ 19 | $ 63 | |||||
Interest Rate Reductions | 0 | 0 | 0 | |||||
Combination | [1] | 50 | 72 | 114 | ||||
Total Modifications | $ 110 | $ 91 | $ 177 | |||||
Number of Loans | contract | 5 | 6 | 13 | |||||
[1] | These modifications may include an extension of the amortization period, interest rate reduction, and/or converting the loan to interest-only for a limited period of time. |
Loans and Allowance for Proba56
Loans and Allowance for Probable Loan Losses - Purchased Credit Impaired (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Purchased Credit Impaired [Abstract] | |||||
Outstanding principal balance | $ 11,892 | $ 11,892 | $ 27,644 | ||
Purchased credit impaired loans | 10,128 | 10,128 | $ 18,620 | ||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||||
Balance at beginning of period | 1,598 | $ 678 | 2,493 | $ 1,820 | |
Additions | 0 | 0 | 0 | 0 | |
Reclassifications (to) from nonaccretable discount | 1,558 | 2,413 | 1,731 | 2,252 | |
Accretion | (336) | (503) | (1,404) | (1,484) | |
Balance at end of period | $ 2,820 | $ 2,588 | $ 2,820 | $ 2,588 |
Loans and Allowance for Proba57
Loans and Allowance for Probable Loan Losses - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||
Owner and nonowner-occupied real estate | $ 697,800,000 | |||
Loans secured by multi-family properties | 57,400,000 | |||
Loans secured by farmland | 4,600,000 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loans transferred to other repossessed assets and real estate through foreclosure | 239,000 | $ 67,000 | ||
Material defaults | $ 729,000 | $ 729,000 | ||
Loans and leases receivable, impaired, commitment to lend | $ 0 | 0 | $ 0 | |
Minimum | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Loan review larger dollar loan relationship scope, aggregate debt | 500,000 | |||
Specifically reserved loans or loan relationships threshold | $ 150,000 |
Long-term Obligations - Long-t
Long-term Obligations - Long-term Obligations (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
Debt Instruments [Abstract] | |||
Subordinated Debt | $ 98,089 | $ 0 | |
FHLB advances | 463,316 | 502,281 | |
Long-term debt | 60,235 | 60,231 | |
Total long-term obligations | 621,640 | 562,512 | |
Parent Company | |||
Debt Instruments [Abstract] | |||
Subordinated Debt | [1] | 98,089 | 0 |
Long-term debt | [2] | 60,235 | 60,231 |
Total long-term obligations | $ 158,324 | 60,231 | |
Parent Company | 5.50% Subordinated Notes Due 2026, net of unamortized debt issuance costs | |||
Debt Instrument [Line Items] | |||
Maturity date | 2,026 | ||
Debt Instruments [Abstract] | |||
Subordinated Debt | [1],[3] | $ 98,089 | 0 |
Subordinated notes, interest rate | 5.50% | ||
Long-term Debt, Other Disclosures [Abstract] | |||
Debt instrument, description of variable rate basis | [1],[3] | three-month LIBOR plus 429.7 basis points | |
Basis spread on variable rate | 4.297% | ||
Parent Company | Southside Statutory Trust III Due 2033, net of unamortized debt issuance costs | |||
Debt Instrument [Line Items] | |||
Maturity date | 2,033 | ||
Debt Instruments [Abstract] | |||
Long-term debt | [2],[4] | $ 20,543 | 20,539 |
Long-term Debt, Other Disclosures [Abstract] | |||
Adjusted rate of debt | 3.77769% | ||
Debt instrument, description of variable rate basis | three-month LIBOR plus 294 basis points | ||
Parent Company | Southside Statutory Trust IV Due 2037 | |||
Debt Instrument [Line Items] | |||
Maturity date | 2,037 | ||
Debt Instruments [Abstract] | |||
Long-term debt | [2],[5] | $ 23,196 | 23,196 |
Long-term Debt, Other Disclosures [Abstract] | |||
Adjusted rate of debt | 2.0565% | ||
Debt instrument, description of variable rate basis | three-month LIBOR plus 130 basis points | ||
Parent Company | Southside Statutory Trust V Due 2037 | |||
Debt Instrument [Line Items] | |||
Maturity date | 2,037 | ||
Debt Instruments [Abstract] | |||
Long-term debt | [2],[6] | $ 12,887 | 12,887 |
Long-term Debt, Other Disclosures [Abstract] | |||
Adjusted rate of debt | 3.10028% | ||
Debt instrument, description of variable rate basis | three-month LIBOR plus 225 basis points | ||
Parent Company | Magnolia Trust Company I Due 2035 | |||
Debt Instrument [Line Items] | |||
Maturity date | 2,035 | ||
Debt Instruments [Abstract] | |||
Long-term debt | [2],[7] | $ 3,609 | 3,609 |
Long-term Debt, Other Disclosures [Abstract] | |||
Adjusted rate of debt | 2.61711% | ||
Debt instrument, description of variable rate basis | three-month LIBOR plus 180 basis points | ||
Parent Company | London Interbank Offered Rate (LIBOR) [Member] | Southside Statutory Trust III Due 2033, net of unamortized debt issuance costs | |||
Long-term Debt, Other Disclosures [Abstract] | |||
Basis spread on variable rate | 2.94% | ||
Parent Company | London Interbank Offered Rate (LIBOR) [Member] | Southside Statutory Trust IV Due 2037 | |||
Long-term Debt, Other Disclosures [Abstract] | |||
Basis spread on variable rate | 1.30% | ||
Parent Company | London Interbank Offered Rate (LIBOR) [Member] | Southside Statutory Trust V Due 2037 | |||
Long-term Debt, Other Disclosures [Abstract] | |||
Basis spread on variable rate | 2.25% | ||
Parent Company | London Interbank Offered Rate (LIBOR) [Member] | Magnolia Trust Company I Due 2035 | |||
Long-term Debt, Other Disclosures [Abstract] | |||
Basis spread on variable rate | 1.80% | ||
Subsidiaries | |||
Debt Instruments [Abstract] | |||
Total long-term obligations | $ 463,316 | 502,281 | |
Subsidiaries | Federal Home Loan Bank Advances | |||
Debt Instruments [Abstract] | |||
FHLB advances | [8] | $ 463,316 | $ 502,281 |
Advances from Federal Home Loan Banks [Abstract] | |||
Weighted average cost (as a percent) | 1.10% | ||
Minimum | Parent Company | Subordinated Notes | |||
Long-term Debt, Other Disclosures [Abstract] | |||
Long-term debt, remaining maturity | 1 year | ||
[1] | This long-term debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. | ||
[2] | This long-term debt consists of trust preferred securities that qualify under the risk-based capital guidelines as Tier 1 capital, subject to certain limitations. | ||
[3] | This debt carries a fixed rate of 5.50% through September 29, 2021 and thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus 429.7 basis points. | ||
[4] | This debt carries an adjustable rate of 3.77769% through December 30, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 294 basis points. | ||
[5] | This debt carries an adjustable rate of 2.0565% through October 29, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 130 basis points. | ||
[6] | This debt carries an adjustable rate of 3.10028% through December 14, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 225 basis points. | ||
[7] | This debt carries an adjustable rate of 2.61711% through November 22, 2016 and adjusts quarterly at a rate equal to three-month LIBOR plus 180 basis points. | ||
[8] | At September 30, 2016, the weighted average cost of these advances was 1.1%. Long-term FHLB advances have maturities ranging from December 2017 through July 2028. |
Long-term Obligations - Subord
Long-term Obligations - Subordinated Debt and Long-term Debt Narrative (Details) - Parent Company - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
5.50% Subordinated Notes Due 2026, net of unamortized debt issuance costs | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount of subordinated notes | $ 100,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||
Debt instrument, description of variable rate basis | [1],[2] | three-month LIBOR plus 429.7 basis points | |
Unamortized debt issuance costs | $ 1,900 | ||
Southside Statutory Trust III Due 2033, net of unamortized debt issuance costs | |||
Debt Instrument [Line Items] | |||
Debt instrument, description of variable rate basis | three-month LIBOR plus 294 basis points | ||
Unamortized debt issuance costs | $ 76 | $ 80 | |
[1] | This debt carries a fixed rate of 5.50% through September 29, 2021 and thereafter, adjusts quarterly at a rate equal to three-month LIBOR plus 429.7 basis points. | ||
[2] | This long-term debt consists of subordinated notes with a remaining maturity greater than one year that qualify under the risk-based capital guidelines as Tier 2 capital, subject to certain limitations. |
Long-term Obligations - Intere
Long-term Obligations - Interest Rate Swaps (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)Rate | |
Derivative [Line Items] | |
Debt instrument, face amount | $ | $ 250,000,000 |
Interest Rate Swap | |
Derivative [Line Items] | |
Derivative, description of hedged item | various variable rate advance agreements with the FHLB |
Debt instrument, description of variable rate basis | one-month LIBOR |
Interest Rate Swap | Minimum | |
Derivative [Line Items] | |
Basis spread on variable rate | 0.17% |
Derivative, Fixed interest rate | 0.932% |
Derivative, Term of Contract | 4 years |
Interest Rate Swap | Maximum | |
Derivative [Line Items] | |
Basis spread on variable rate | 0.278% |
Derivative, Fixed interest rate | 1.647% |
Derivative, Term of Contract | 9 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Defined Benefit Pension Plan | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 347 | $ 459 | $ 1,031 | $ 1,378 |
Interest cost | 928 | 853 | 2,798 | 2,558 |
Expected return on assets | (1,306) | (1,421) | (3,917) | (4,263) |
Net loss amortization | 412 | 377 | 1,232 | 1,129 |
Prior service (credit) cost amortization | (12) | (6) | (11) | (17) |
Special and contractual termination benefits | 1,549 | 0 | ||
Net periodic benefit cost (income) | 369 | 262 | 2,682 | 785 |
Defined Benefit Pension Plan Acquired | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 53 | 59 | 159 | 178 |
Expected return on assets | (66) | (73) | (199) | (220) |
Net loss amortization | 0 | 0 | 0 | 0 |
Prior service (credit) cost amortization | 0 | 0 | 0 | 0 |
Special and contractual termination benefits | 0 | 0 | ||
Net periodic benefit cost (income) | (13) | (14) | (40) | (42) |
Restoration Plan | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 52 | 59 | 155 | 250 |
Interest cost | 133 | 195 | 401 | 501 |
Expected return on assets | 0 | 0 | 0 | 0 |
Net loss amortization | 46 | 314 | 139 | 707 |
Prior service (credit) cost amortization | 2 | 2 | 5 | 5 |
Special and contractual termination benefits | 0 | 0 | ||
Net periodic benefit cost (income) | $ 233 | $ 570 | $ 700 | $ 1,463 |
Share-based Incentive Plans -
Share-based Incentive Plans - Share-based Incentive Plans Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 397,000 | $ 414,000 | $ 1,200,000 | $ 981,000 |
Nonqualified Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 85,325 | 388,669 | ||
Weighted average exercise price (in dollars per share) | $ 26.61 | $ 26.74 | ||
Contractual term | 10 years | |||
Nonqualified Stock Options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Nonqualified Stock Options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 17,848 | 60,400 | ||
Value of shares granted | $ 486,000 | $ 1,600,000 | ||
Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 4 years |
Derivative Financial Instrume63
Derivative Financial Instruments and Hedging Activities - Narrative (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional Amount | $ 250,000,000 | |
Debt instrument, face amount | 250,000,000 | |
Collateral Already Posted, Aggregate Fair Value | 3,800,000 | |
Derivative, Collateral, Right to Reclaim Cash | 292,000 | |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $ 8,000 | $ 0 |
Derivative Financial Instrume64
Derivative Financial Instruments and Hedging Activities - Schedule Of Derivative Instruments (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | |
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 250,000,000 | ||
Derivative Asset [Abstract] | |||
Gross Amounts of Recognized Assets | 66,000 | $ 0 | |
Amounts Offset in the Balance Sheet | (8,000) | 0 | |
Collateral Amounts Offset in the Balance Sheet | 0 | 0 | |
Net Amounts of Assets Presented in the Balance Sheet | [1] | 58,000 | 0 |
Derivative Liability [Abstract] | |||
Gross Amounts of Recognized Liabilities | 3,854,000 | 1,000 | |
Amounts Offset in the Balance Sheet | (8,000) | 0 | |
Collateral Amounts Offset in the Balance Sheet | (3,788,000) | 0 | |
Net Amounts of Liabilities Presented in the Balance Sheet | [1] | 58,000 | 1,000 |
Financial Institution Counterparties | Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [2] | 250,000,000 | 20,000,000 |
Derivative Asset [Abstract] | |||
Gross Amounts of Recognized Assets | 8,000 | 0 | |
Derivative Liability [Abstract] | |||
Gross Amounts of Recognized Liabilities | 3,796,000 | 1,000 | |
Financial Institution Counterparties | Not Designated as Hedging Instrument | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [2] | 2,200,000 | 0 |
Derivative Asset [Abstract] | |||
Gross Amounts of Recognized Assets | 58,000 | 0 | |
Derivative Liability [Abstract] | |||
Gross Amounts of Recognized Liabilities | 0 | 0 | |
Customer Counterparties | Not Designated as Hedging Instrument | Interest Rate Swap | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | [2] | 2,200,000 | 0 |
Derivative Asset [Abstract] | |||
Gross Amounts of Recognized Assets | 0 | 0 | |
Derivative Liability [Abstract] | |||
Gross Amounts of Recognized Liabilities | $ 58,000 | $ 0 | |
[1] | Net derivative assets are included in “other assets” and net derivative liabilities are included in “other liabilities” on the consolidated balance sheets. Included in the fair value of net derivative assets and net derivative liabilities are credit valuation adjustments reflecting counterparty credit risk and our credit risk. We had $8,000 of credit exposure at September 30, 2016. We had no credit exposure at December 31, 2015. | ||
[2] | Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk, and are not reflected in the consolidated balance sheets. |
Derivative Financial Instrume65
Derivative Financial Instruments and Hedging Activities - Weighted Average Remaining Maturity, Lives, and Rates of Interest Rate Swaps (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | |||
Derivative [Line Items] | ||||
Notional Amount | $ 250,000,000 | |||
Financial Institution Counterparties | Interest Rate Swap | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional Amount | [1] | $ 2,200,000 | $ 0 | |
Remaining Maturity (in years) | 9 years 11 months | 0 years | ||
Weighted Average Receive Rate | [2] | 0.52% | 0.00% | |
Weighted Average Pay Rate | 1.57% | 0.00% | ||
Financial Institution Counterparties | Interest Rate Swap | Cash Flow Hedging | Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional Amount | [1] | $ 250,000,000 | $ 20,000,000 | |
Remaining Maturity (in years) | 5 years 8 months | 4 years 11 months | ||
Weighted Average Receive Rate | [2] | 0.52% | 0.29% | |
Weighted Average Pay Rate | 1.31% | 1.53% | ||
Customer Counterparties | Interest Rate Swap | Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Notional Amount | [1] | $ 2,200,000 | $ 0 | |
Remaining Maturity (in years) | 9 years 11 months | 0 years | ||
Weighted Average Receive Rate | 1.57% | 0.00% | [2] | |
Weighted Average Pay Rate | 0.52% | 0.00% | ||
[1] | Notional amounts, which represent the extent of involvement in the derivatives market, are used to determine the contractual cash flows required in accordance with the terms of the agreement. These amounts are typically not exchanged, significantly exceed amounts subject to credit or market risk, and are not reflected in the consolidated balance sheets. | |||
[2] | Variable rates received on pay fixed swaps are based on one-month LIBOR rates in effect at September 30, 2016 and December 31, 2015. |
Fair Value Measurement - Fair
Fair Value Measurement - Fair Value Measurements, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | $ 85,958 | $ 109,603 |
Total liability recurring fair value measurements | 0 | |
Total asset nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | |
Total liability recurring fair value measurements | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 79,847 | 103,587 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Stocks and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 6,111 | 6,016 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 1,536,236 | 1,350,889 |
Total liability recurring fair value measurements | 3,854 | |
Total asset nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 66 | |
Total liability recurring fair value measurements | 3,854 | |
Significant Other Observable Inputs (Level 2) | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | State and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 423,740 | 244,246 |
Significant Other Observable Inputs (Level 2) | Other Stocks and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 7,830 | 12,790 |
Significant Other Observable Inputs (Level 2) | Other Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 701,486 | 588,502 |
Significant Other Observable Inputs (Level 2) | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 403,114 | 505,351 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Total liability recurring fair value measurements | 0 | |
Total asset nonrecurring fair value measurements | 13,831 | 25,091 |
Significant Unobservable Inputs (Level 3) | Foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 278 | 808 |
Significant Unobservable Inputs (Level 3) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 13,553 | 24,283 |
Significant Unobservable Inputs (Level 3) | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | |
Total liability recurring fair value measurements | 0 | |
Significant Unobservable Inputs (Level 3) | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | State and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Stocks and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Other Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 0 | 0 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 1,622,194 | 1,460,492 |
Total liability recurring fair value measurements | 3,854 | |
Total asset nonrecurring fair value measurements | 13,831 | 25,091 |
Carrying Amount | Foreclosed assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 278 | 808 |
Carrying Amount | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset nonrecurring fair value measurements | 13,553 | 24,283 |
Carrying Amount | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 66 | |
Total liability recurring fair value measurements | 3,854 | |
Carrying Amount | U.S. Treasury | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 79,847 | 103,587 |
Carrying Amount | State and Political Subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 423,740 | 244,246 |
Carrying Amount | Other Stocks and Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 7,830 | 12,790 |
Carrying Amount | Other Equity Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 6,111 | 6,016 |
Carrying Amount | Residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | 701,486 | 588,502 |
Carrying Amount | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total asset recurring fair value measurements | $ 403,114 | $ 505,351 |
Fair Value Measurement - Fai67
Fair Value Measurement - Fair Value, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | $ 199,088 | $ 80,975 |
Investment securities: | ||
Held to maturity, at carrying value | 0 | 0 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 0 | 0 |
FHLB stock and other investments, at cost | 0 | 0 |
Loans, net of allowance for loan losses | 0 | 0 |
Loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Federal funds purchased and repurchase agreements | 0 | 0 |
FHLB advances | 0 | 0 |
Subordinated notes | 0 | |
Long-term debt | 0 | 0 |
Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
Held to maturity, at carrying value | 396,044 | 397,194 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 418,068 | 402,569 |
FHLB stock and other investments, at cost | 57,343 | 56,509 |
Loans, net of allowance for loan losses | 0 | 0 |
Loans held for sale | 5,301 | 3,811 |
Financial Liabilities: | ||
Deposits | 3,584,163 | 3,449,002 |
Federal funds purchased and repurchase agreements | 11,516 | 2,429 |
FHLB advances | 1,176,951 | 1,143,218 |
Subordinated notes | 98,089 | |
Long-term debt | 45,190 | 43,695 |
Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Investment securities: | ||
Held to maturity, at carrying value | 0 | 0 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 0 | 0 |
FHLB stock and other investments, at cost | 0 | 0 |
Loans, net of allowance for loan losses | 2,497,131 | 2,364,968 |
Loans held for sale | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Federal funds purchased and repurchase agreements | 0 | 0 |
FHLB advances | 0 | 0 |
Subordinated notes | 0 | |
Long-term debt | 0 | 0 |
Carrying Amount | ||
Financial Assets: | ||
Cash and cash equivalents | 199,088 | 80,975 |
Investment securities: | ||
Held to maturity, at carrying value | 379,167 | 385,496 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 396,515 | 398,800 |
FHLB stock and other investments, at cost | 57,343 | 56,509 |
Loans, net of allowance for loan losses | 2,467,648 | 2,412,017 |
Loans held for sale | 5,301 | 3,811 |
Financial Liabilities: | ||
Deposits | 3,581,387 | 3,455,407 |
Federal funds purchased and repurchase agreements | 11,516 | 2,429 |
FHLB advances | 1,172,434 | 1,147,688 |
Subordinated notes | 98,089 | |
Long-term debt | 60,235 | 60,311 |
Estimated Fair Value | ||
Financial Assets: | ||
Cash and cash equivalents | 199,088 | 80,975 |
Investment securities: | ||
Held to maturity, at carrying value | 396,044 | 397,194 |
Mortgage-backed securities: | ||
Held to maturity, at carrying value | 418,068 | 402,569 |
FHLB stock and other investments, at cost | 57,343 | 56,509 |
Loans, net of allowance for loan losses | 2,497,131 | 2,364,968 |
Loans held for sale | 5,301 | 3,811 |
Financial Liabilities: | ||
Deposits | 3,584,163 | 3,449,002 |
Federal funds purchased and repurchase agreements | 11,516 | 2,429 |
FHLB advances | 1,176,951 | 1,143,218 |
Subordinated notes | 98,089 | |
Long-term debt | $ 45,190 | $ 43,695 |
Income Taxes - Provision for I
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Current income tax expense | $ 1,331 | $ 2,666 | $ 6,570 | $ 8,555 |
Deferred income tax (benefit) expense | 1,410 | (695) | 1,916 | (2,714) |
Income tax expense | $ 2,741 | $ 1,971 | $ 8,486 | $ 5,841 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||||
Net deferred tax assets | $ 9,200,000 | $ 9,200,000 | $ 19,900,000 | ||
Deferred tax assets, valuation allowance | 0 | 0 | $ 0 | ||
Income tax expense | $ 2,741,000 | $ 1,971,000 | $ 8,486,000 | $ 5,841,000 | |
Effective income tax rate, percent | 17.60% | 14.40% | 18.30% | 15.30% |
Off-Balance-Sheet Arrangement70
Off-Balance-Sheet Arrangements, Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk, at fair value | $ 657,671 | $ 554,412 |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk, at fair value | 648,491 | 546,660 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance-sheet risk, at fair value | $ 9,180 | $ 7,752 |
Off-Balance-Sheet Arrangement71
Off-Balance-Sheet Arrangements, Commitments and Contingencies Narrative (Details) - USD ($) | 3 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Securities: | |||
Unsettled trades to purchase securities | $ 30,214,000 | $ 19,350,000 | $ 21,783,000 |
Unsettled trades to sell securities | 0 | 9,343,000 | |
Deposits: | |||
Unsettled issuances of brokered CDs | 0 | $ 0 | |
Fort Worth Operations Center Location | |||
Leases Commitments: | |||
Lease termination expense | 1,500,000 | ||
Loss on retirement of assets | $ 310,000 |