Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | SOUTH STATE Corp | ||
Entity Central Index Key | 764,038 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 3,126,386,000 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 35,370,054 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and cash equivalents: | ||
Cash and due from banks | $ 251,411 | $ 255,775 |
Interest-bearing deposits with banks | 124,895 | 117,635 |
Federal funds sold and securities purchased under agreements to resell | 32,677 | 4,217 |
Total cash and cash equivalents | 408,983 | 377,627 |
Investment securities: | ||
Securities held to maturity (fair value of $0 and $2,556, respectively) | 2,529 | |
Securities available for sale, at fair value | 1,517,067 | 1,648,193 |
Other investments | 25,604 | 23,047 |
Total investment securities | 1,542,671 | 1,673,769 |
Loans held for sale | 22,925 | 70,890 |
Loans: | ||
Loans, net | 10,962,037 | 10,575,417 |
Other real estate owned | 11,410 | 11,203 |
Premises and equipment, net | 241,076 | 255,565 |
Bank owned life insurance | 230,105 | 225,132 |
Deferred tax assets | 37,128 | 45,902 |
Mortgage servicing rights | 34,727 | 31,119 |
Core deposit and other intangibles | 62,900 | 73,789 |
Goodwill | 1,002,900 | 999,586 |
Other assets | 119,466 | 126,590 |
Total assets | 14,676,328 | 14,466,589 |
Deposits: | ||
Noninterest-bearing | 3,061,769 | 3,047,432 |
Interest-bearing | 8,585,164 | 8,485,334 |
Total deposits | 11,646,933 | 11,532,766 |
Federal funds purchased and securities sold under agreements to repurchase | 270,649 | 286,857 |
Other borrowings | 266,084 | 216,385 |
Other liabilities | 126,366 | 121,661 |
Total liabilities | 12,310,032 | 12,157,669 |
Shareholders' equity: | ||
Common stock - $2.50 par value; authorized 80,000,000 shares; 35,829,549 and 36,759,656 shares issued and outstanding, respectively | 89,574 | 91,899 |
Surplus | 1,750,495 | 1,807,601 |
Retained earnings | 551,108 | 419,847 |
Accumulated other comprehensive loss | (24,881) | (10,427) |
Total shareholders' equity | 2,366,296 | 2,308,920 |
Total liabilities and shareholders' equity | 14,676,328 | 14,466,589 |
Acquired credit impaired loans | ||
Loans: | ||
Loans, net | 485,119 | 618,803 |
Acquired non-credit impaired loans | ||
Loans: | ||
Loans, net | 2,594,826 | 3,507,907 |
Total loans | 2,594,826 | 3,507,907 |
Non-acquired loans | ||
Loans: | ||
Loans, net | 7,933,286 | 6,492,155 |
Total loans | 7,933,286 | 6,492,155 |
Less allowance for non-acquired loan losses | (51,194) | (43,448) |
Loans, net | $ 7,882,092 | $ 6,448,707 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment securities: | ||
Securities held to maturity, fair value (in dollars) | $ 0 | $ 2,556 |
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 80,000,000 | 80,000,000 |
Common stock, shares issued | 35,829,549 | 36,759,656 |
Common stock, shares outstanding | 35,829,549 | 36,759,656 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income: | |||
Loans, including fees | $ 521,478 | $ 389,535 | $ 308,461 |
Investment securities: | |||
Taxable | 35,563 | 28,165 | 18,025 |
Tax-exempt | 6,152 | 5,591 | 3,884 |
Federal funds sold and securities purchased under agreements to resell | 4,015 | 2,709 | 2,793 |
Total interest income | 567,208 | 426,000 | 333,163 |
Interest expense: | |||
Deposits | 45,452 | 12,353 | 5,803 |
Federal funds purchased and securities sold under agreements to repurchase | 2,356 | 1,080 | 574 |
Other borrowings | 6,184 | 3,581 | 1,940 |
Total interest expense | 53,992 | 17,014 | 8,317 |
Net interest income | 513,216 | 408,986 | 324,846 |
Provision for loan losses | 13,783 | 11,890 | 6,819 |
Net interest income after provision for loan losses | 499,433 | 397,096 | 318,027 |
Noninterest income: | |||
Securities gains (losses), net | (655) | 1,421 | 122 |
Other-than-temporary impairment losses | (753) | ||
Recoveries on acquired loans | 9,117 | 8,572 | 6,465 |
Amortization of FDIC indemnification asset, net | 5,902 | ||
Other | 11,819 | 6,670 | 6,437 |
Total noninterest income | 145,749 | 140,029 | 121,204 |
Noninterest expense: | |||
Salaries and employee benefits | 233,130 | 194,446 | 164,663 |
Net occupancy expense | 30,816 | 25,357 | 21,712 |
Information services expense | 34,322 | 25,462 | 20,549 |
Furniture and equipment expense | 18,349 | 15,568 | 12,403 |
OREO expense and loan related | 3,510 | 6,721 | 6,307 |
Bankcard expense | 1,783 | 2,180 | 2,597 |
Amortization of intangibles | 14,209 | 10,353 | 7,577 |
Supplies, printing and postage expense | 5,839 | 6,148 | 6,279 |
Professional fees | 8,883 | 5,975 | 6,702 |
FDIC assessment and other regulatory charges | 8,405 | 3,924 | 3,896 |
Advertising and marketing | 4,221 | 3,963 | 3,092 |
Merger and branch consolidation related expense | 29,868 | 44,503 | 8,081 |
Other | 27,592 | 23,720 | 21,331 |
Total noninterest expense | 420,927 | 368,320 | 285,189 |
Earnings: | |||
Income before provision for income taxes | 224,255 | 168,805 | 154,042 |
Provision for income taxes | 45,384 | 81,251 | 52,760 |
Net income | $ 178,871 | $ 87,554 | $ 101,282 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 4.90 | $ 2.95 | $ 4.22 |
Diluted (in dollars per share) | 4.86 | 2.93 | 4.18 |
Dividends per common share (in dollars per share) | $ 1.38 | $ 1.32 | $ 1.21 |
Weighted-average common shares outstanding: | |||
Basic (in shares) | 36,530 | 29,686 | 23,998 |
Diluted (in shares) | 36,776 | 29,922 | 24,219 |
Fees on deposit accounts | |||
Noninterest income: | |||
Noninterest income | $ 81,649 | $ 80,764 | $ 73,771 |
Mortgage banking income | |||
Noninterest income: | |||
Noninterest income | 13,590 | 17,954 | 20,547 |
Trust and investment services income | |||
Noninterest income: | |||
Noninterest income | $ 30,229 | $ 25,401 | $ 19,764 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidated Statements of Comprehensive Income | |||
Net income | $ 178,871 | $ 87,554 | $ 101,282 |
Unrealized losses on securities: | |||
Unrealized holding losses arising during period | (17,322) | (3,486) | (6,821) |
Tax effect | 3,843 | 1,329 | 2,600 |
Reclassification adjustment for (gains) losses and OTTI included in net income | 655 | (668) | (122) |
Tax effect | (145) | 255 | 47 |
Net of tax amount | (12,969) | (2,570) | (4,296) |
Unrealized losses on derivative financial instruments qualifying as cash flow hedges: | |||
Unrealized holding gains (losses) arising during period | 42 | (22) | (55) |
Tax effect | (9) | 9 | 21 |
Reclassification adjustment for losses included in interest expense | 155 | 275 | 275 |
Tax effect | (34) | (105) | (105) |
Net of tax amount | 154 | 157 | 136 |
Change in pension plan obligation: | |||
Change in pension and retiree medical plan obligation during period | 490 | (589) | (1,202) |
Tax effect | (108) | 224 | 453 |
Reclassification adjustment for changes included in net income | 1,187 | 908 | 920 |
Tax effect | (261) | (346) | (351) |
Net of tax amount | 1,308 | 197 | (180) |
Other comprehensive loss, net of tax | (11,507) | (2,216) | (4,340) |
Comprehensive income | $ 167,364 | $ 85,338 | $ 96,942 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock2004 Buyback Plan [Member]Southeastern Bank Financial | Common Stock2004 Buyback Plan [Member] | Common StockOther Than 2004 Buyback Plan | Common StockBuyback Plan | Common StockPark Sterling Corporation | Common Stock | Surplus2004 Buyback Plan [Member]Southeastern Bank Financial | Surplus2004 Buyback Plan [Member] | SurplusOther Than 2004 Buyback Plan | SurplusBuyback Plan | SurplusPark Sterling Corporation | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | 2004 Buyback Plan [Member]Southeastern Bank Financial | 2004 Buyback Plan [Member] | Other Than 2004 Buyback Plan | Buyback Plan | Park Sterling Corporation | Total |
Balance at Dec. 31, 2015 | $ 60,407 | $ 703,929 | $ 298,919 | $ (3,871) | $ 1,059,384 | |||||||||||||||
Balance (in shares) at Dec. 31, 2015 | 24,162,657 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income | 101,282 | 101,282 | ||||||||||||||||||
Other Comprehensive Income, net of tax effects | (4,340) | (4,340) | ||||||||||||||||||
Comprehensive income | 96,942 | |||||||||||||||||||
Cash dividends declared on common stock per share | (29,285) | (29,285) | ||||||||||||||||||
Employee stock purchases | $ 36 | 889 | 925 | |||||||||||||||||
Employee stock purchases (in shares) | 14,516 | |||||||||||||||||||
Stock options exercised | $ 158 | 2,046 | 2,204 | |||||||||||||||||
Stock options exercised (in shares) | 63,527 | |||||||||||||||||||
Restricted stock awards | $ 106 | (106) | ||||||||||||||||||
Restricted stock awards (in shares) | 42,226 | |||||||||||||||||||
Stock issued pursuant to restricted stock units. | $ 90 | (90) | ||||||||||||||||||
Stock issued pursuant to restricted stock units (in shares) | 35,903 | |||||||||||||||||||
Excess tax benefits in connection with equity awards | 4,178 | 4,178 | ||||||||||||||||||
Common stock repurchased | $ (82) | $ (139) | $ (2,048) | $ (3,712) | $ (2,130) | $ (3,851) | $ (2,100) | |||||||||||||
Common stock repurchased (in shares) | (32,900) | (55,537) | (32,900) | |||||||||||||||||
Share-based compensation expense | 6,221 | $ 6,221 | ||||||||||||||||||
Balance at Dec. 31, 2016 | $ 60,576 | 711,307 | 370,916 | (8,211) | 1,134,588 | |||||||||||||||
Balance (in shares) at Dec. 31, 2016 | 24,230,392 | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income | 87,554 | 87,554 | ||||||||||||||||||
Other Comprehensive Income, net of tax effects | (2,216) | (2,216) | ||||||||||||||||||
Comprehensive income | 85,338 | |||||||||||||||||||
Cash dividends declared on common stock per share | (38,623) | (38,623) | ||||||||||||||||||
Employee stock purchases | $ 32 | 1,023 | 1,055 | |||||||||||||||||
Employee stock purchases (in shares) | 12,798 | |||||||||||||||||||
Stock options exercised | $ 149 | 1,816 | 1,965 | |||||||||||||||||
Stock options exercised (in shares) | 59,480 | |||||||||||||||||||
Restricted stock awards | $ 53 | (53) | ||||||||||||||||||
Restricted stock awards (in shares) | 21,628 | |||||||||||||||||||
Stock issued pursuant to restricted stock units. | $ 95 | (95) | ||||||||||||||||||
Stock issued pursuant to restricted stock units (in shares) | 37,802 | |||||||||||||||||||
Common stock issued for acquisition | $ 12,446 | $ 18,701 | $ 422,163 | $ 669,865 | $ 434,609 | $ 688,566 | ||||||||||||||
Common stock issued for acquisition (in shares) | 4,978,338 | 7,480,343 | ||||||||||||||||||
Common stock repurchased | $ (153) | (5,359) | (5,512) | |||||||||||||||||
Common stock repurchased (in shares) | (61,125) | |||||||||||||||||||
Share-based compensation expense | 6,934 | 6,934 | ||||||||||||||||||
Balance at Dec. 31, 2017 | $ 91,899 | 1,807,601 | 419,847 | (10,427) | $ 2,308,920 | |||||||||||||||
Balance (in shares) at Dec. 31, 2017 | 36,759,656 | 36,759,656 | ||||||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||
Net income | 178,871 | $ 178,871 | ||||||||||||||||||
Other Comprehensive Income, net of tax effects | (11,507) | (11,507) | ||||||||||||||||||
Comprehensive income | 167,364 | |||||||||||||||||||
Cash dividends declared on common stock per share | (50,557) | (50,557) | ||||||||||||||||||
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | 2,947 | (2,947) | (2,947) | |||||||||||||||||
Employee stock purchases | $ 45 | 1,286 | 1,331 | |||||||||||||||||
Employee stock purchases (in shares) | 18,110 | |||||||||||||||||||
Stock options exercised | $ 84 | 948 | 1,032 | |||||||||||||||||
Stock options exercised (in shares) | 33,424 | |||||||||||||||||||
Restricted stock awards | $ 10 | (10) | ||||||||||||||||||
Restricted stock awards (in shares) | 4,069 | |||||||||||||||||||
Stock issued pursuant to restricted stock units. | $ 99 | (99) | ||||||||||||||||||
Stock issued pursuant to restricted stock units (in shares) | 39,541 | |||||||||||||||||||
Common stock repurchased | $ (63) | $ (2,500) | $ (2,110) | $ (65,904) | $ (2,173) | $ (68,404) | ||||||||||||||
Common stock repurchased (in shares) | (25,251) | (1,000,000) | ||||||||||||||||||
Share-based compensation expense | 8,783 | 8,783 | ||||||||||||||||||
Balance at Dec. 31, 2018 | $ 89,574 | $ 1,750,495 | $ 551,108 | $ (24,881) | $ 2,366,296 | |||||||||||||||
Balance (in shares) at Dec. 31, 2018 | 35,829,549 | 35,829,549 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity | |||
Cash dividends declared, per share (in dollars per share) | $ 1.38 | $ 1.32 | $ 1.21 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 178,871 | $ 87,554 | $ 101,282 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,696 | 28,704 | 21,582 |
Provision for loan losses | 13,783 | 11,890 | 6,819 |
Deferred income taxes | 15,176 | 5,640 | 9,378 |
Revision of provisional amount related to the revaluation of deferred taxes from the Tax Reform Act | (991) | 26,558 | |
Other-than-temporary impairment on securities | 753 | ||
(Gain) loss on sale of securities, net | 655 | (1,421) | (122) |
Share-based compensation expense | 8,783 | 6,934 | 6,220 |
Amortization of FDIC indemnification asset | 3,566 | ||
Accretion of discount related to performing acquired loans | (27,756) | (15,893) | (5,187) |
(Gain) loss on disposal of premises and equipment | 1,568 | 177 | (60) |
Gain) loss on sale of OREO | (1,969) | 101 | (1,735) |
Net amortization of premiums on investment securities | 7,567 | 6,853 | 5,409 |
OREO write downs | 1,420 | 2,249 | 4,401 |
Fair value adjustment for loans held for sale | (521) | 752 | 495 |
Originations and purchases of loans held for sale | (631,328) | (682,403) | (771,105) |
Proceeds from sales of loans | 679,811 | 745,871 | 761,688 |
Net change in: | |||
Accrued interest receivable | (3,269) | (2,198) | (1,536) |
Prepaid assets | 1,951 | 6 | (804) |
FDIC indemnification asset | 3,177 | ||
Miscellaneous other assets | (1,168) | (32,324) | (13,799) |
Accrued interest payable | 1,930 | (948) | (831) |
Accrued income taxes | 143 | 1,959 | 105 |
Miscellaneous other liabilities | 3,359 | 7,076 | 9,068 |
Net cash provided by operating activities | 283,711 | 197,890 | 138,011 |
Cash flows from investing activities: | |||
Proceeds from sales of investment securities available for sale | 73,054 | 374,938 | 137 |
Proceeds from maturities and calls of investment securities held to maturity | 2,530 | 3,570 | 3,225 |
Proceeds from maturities and calls of investment securities available for sale | 224,713 | 235,757 | 383,577 |
Proceeds from sales of other investment securities | 15,938 | 15,302 | 71 |
Purchases of investment securities available for sale | (191,313) | (241,274) | (385,813) |
Purchases of other investment securities | (18,494) | (4,553) | (660) |
Net increase in loans | (391,428) | (636,836) | (690,495) |
Net cash received from acquisitions | 185,163 | ||
Payment to terminate FDIC Loss Share Agreements | (2,342) | ||
Recoveries of loans previously charged off | 3,300 | 3,430 | 3,552 |
Purchases of premises and equipment | (14,538) | (15,163) | (25,796) |
Proceeds from sale of OREO | 13,943 | 18,751 | 23,565 |
Proceeds from sale of premises and equipment | 146 | 15 | 60 |
Net cash used in investing activities | (282,149) | (60,900) | (690,919) |
Cash flows from financing activities: | |||
Net increase in deposits | 114,779 | 226,045 | 233,993 |
Net increase (decrease) in federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings | (16,208) | (27,930) | 25,542 |
Proceeds from FHLB advances | 590,001 | 100,000 | |
Repayment of other borrowings | (540,007) | (390,811) | (14) |
Common stock issuance | 1,331 | 1,055 | 925 |
Common stock repurchase | (70,577) | (5,512) | (5,981) |
Dividends paid on common stock | (50,557) | (38,623) | (29,285) |
Excess tax benefits in connection with equity awards | 4,178 | ||
Stock options exercised | 1,032 | 1,965 | 2,204 |
Net cash (used in) provided by financing activities | 29,794 | (133,811) | 231,562 |
Net increase (decrease) in cash and cash equivalents | 31,356 | 3,179 | (321,346) |
Cash and cash equivalents at beginning of period | 377,627 | 374,448 | 695,794 |
Cash and cash equivalents at end of period | 408,983 | 377,627 | 374,448 |
Cash paid for: | |||
Interest | 52,062 | 17,962 | 9,148 |
Income taxes | 31,941 | 48,028 | 39,490 |
Acquisitions: | |||
Fair value of tangible assets acquired | (7,247) | 4,900,334 | |
Other intangible assets acquired | 3,321 | 44,295 | |
Liabilities assumed | (612) | 4,477,801 | |
Net identifiable assets acquired over liabilities assumed | (3,314) | 466,828 | |
Common stock issued in acquisition | 1,123,175 | ||
Loans sold that have not settled | 28,663 | ||
Real estate acquired in full or in partial settlement of loans | $ 13,391 | $ 11,558 | $ 13,993 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies Nature of Operations South State Corporation (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, South State Bank (the “Bank”). The Bank also operates Minis & Co., Inc. and South State Advisory (formerly First Southeast 401k Fiduciaries), both wholly-owned registered investment advisors. The Bank provides general banking services within 29 counties in South Carolina, 9 counties in North Carolina, 19 counties in Georgia and four counties in Virginia. The accounting and reporting policies of the Company and its consolidated subsidiary conform to accounting principles generally accepted in the United States of America (‘U.S. GAAP”). There are thirteen unconsolidated subsidiaries of the Company that were established for the purpose of issuing in the aggregate $115.0 million of trust preferred securities. The thirteen capital trusts include the following: SCBT Capital Trust I at $12.0 million; SCBT Capital Trust II at $8.0 million; SCBT Capital Trust III at $20.0 million; TSB Statutory Trust I at $3.0 million; SAVB Capital Trust I at $6.0 million; SAVB Capital Trust II at $4.0 million; Southeastern Bank Financial Statutory Trust I at $10.0 million; Southeastern Bank Financial Statutory Trust II at $10.0 million; Provident Community Bancshares Capital Trust I at $4.0 million; FCRV Statutory Trust I at $5.0 million; Community Capital Statutory Trust I at $10.0 million; CSBC Statutory Trust I at $15.0 million and Provident Community Bancshares Capital Trust II at $8.0 million. Unless otherwise mentioned or unless the context requires otherwise, references herein to "South State," the "Company" "we," "us," "our" or similar references mean South State Corporation and its consolidated subsidiary. References to the “Bank” means South State Bank, a South Carolina banking corporation. Basis of Consolidation The consolidated financial statements include the accounts of the Company and other entities in which it has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Assets held by the Company in trust are not assets of the Company and are not included in the accompanying consolidated financial statements. Segments The Company, through its subsidiary, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, Georgia and Virginia. These services include demand, time and savings deposits; lending and credit card servicing; ATM processing; mortgage banking services; and wealth management and trust services. While the Company’s decision makers monitor the revenue streams of the various financial products and services, operations are managed and financial performance is evaluated on an organization‑wide basis. Accordingly, the Company’s banking and finance operations are not considered by management to constitute more than one reportable operating segment. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, fair values of assets and liabilities acquired in business combinations, loss estimates related to loans and other real estate acquired, evaluating other‑than‑temporary impairment of investment securities, goodwill impairment tests and valuation of deferred tax assets In connection with the determination of the allowance for loan losses, management has identified specific loans as well as adopted a policy of providing amounts for loan valuation purposes which are not identified with any specific loan but are derived from actual loss experience ratios, loan types, loan volume, economic conditions and industry standards. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of the examination process, periodically review the banking subsidiary’s allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. Concentrations of Credit Risk The Company’s subsidiary grants agribusiness, commercial, and residential loans to customers throughout South Carolina, North Carolina, Virginia and Georgia. Although the subsidiary has a diversified loan portfolio, a substantial portion of their borrowers’ abilities to honor their contracts is dependent upon economic conditions within South Carolina, North Carolina, Georgia and the surrounding regions. The Company considers concentrations of credit to exist when, pursuant to regulatory guidelines, the amounts loaned to a multiple number of borrowers engaged in similar business activities which would cause them to be similarly impacted by general economic conditions represents 25% of total risk‑based capital, or $375.9 million at December 31, 2018. Based on this criteria, the Company had three such credit concentrations at December 31, 2018, including $609.3 million of loans to lessors of residential buildings (investment properties and multi-family), $1.3 billion of loans to lessors of nonresidential buildings (except mini‑warehouses), and $457.2 million of loans on hotels and motels. Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from banks, interest bearing deposits with banks, purchases of securities under agreements to resell, and federal funds sold. Due from bank balances are maintained in other financial institutions. Federal funds sold are generally purchased and sold for one-day periods, but may, from time to time, have longer terms. The Company enters into purchases of securities under agreements to resell substantially identical securities typically for the purpose of obtaining securities on a short‑term basis for collateralizing certain customer deposit relationships. Securities purchased under agreements to resell at December 31, 2018 and 2017 consisted of U.S. government‑sponsored entities and agency mortgage‑backed securities. It is the Company’s policy to take possession of securities purchased under agreements to resell. The securities are delivered into the Company’s account maintained by a third‑party custodian designated by the Company under a written custodial agreement that explicitly recognizes the Company’s interest in the securities. The Company monitors the market value of the underlying securities, including accrued interest, which collateralizes the related receivable on agreements to resell. At December 31, 2018, these agreements were considered to be cash equivalents with maturities of three months or less. Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and carried at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using methods approximating the interest method over the terms of the securities. Declines in the fair value of held‑to‑maturity and available‑for‑sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. Gains and losses realized on sales of securities available for sale are determined using the specific identification method. The Company evaluates securities for other‑than‑temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In estimating OTTI losses, management considers: (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more‑likely‑than‑not that the Company will be required to sell the debt security prior to recovering its fair value, and (5) the anticipated outlook for changes in the general level of interest rates. (see Note 3—Investment Securities). Other investments include stock acquired for regulatory purposes, investments in unconsolidated subsidiaries and other nonmarketable investment securities. Stock acquired for regulatory purposes include Federal Home Loan Bank of Atlanta (“FHLB”) stock. These securities do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. Investments in unconsolidated subsidiaries represent a minority investment in SCBT Capital Trust I, SCBT Capital Trust II, SCBT Capital Trust III, TSB Statutory Trust I, SAVB Capital Trust I, SAVB Capital Trust II, Southeastern Bank Financial Statutory Trust I, Southeastern Bank Financial Statutory Trust II, Provident Community Bancshares Capital Trust I, FCRV Statutory Trust I, Community Capital Statutory Trust I, CSBC Statutory Trust I and Provident Community Bancshares Capital Trust II. These investments are recorded at cost and the Company receives quarterly dividend payments on these investments. Other nonmarketable investment securities consists of Business Development Corporation stock and stock in Banker’s Banks. These investments also do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. Loans Held for Sale Loans originated and intended for sale are carried at the estimated fair value in the aggregate. Estimated fair value is determined on the basis of existing forward commitments, or the current market value of similar loans. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans held‑for‑sale are sold to investors either under guaranteed delivery or with the best effort intent and ability to sell loans as long as they meet the underwriting standards of the potential investor. Loans Loans that management has originated and has the intent and ability to hold for the foreseeable future or until maturity or pay‑off generally are reported at their unpaid principal balances, less unearned income and net of any deferred loan fees and costs. Unearned income on installment loans is recognized as income over the terms of the loans by methods that generally approximate the interest method. Interest on other loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. We place non‑acquired loans and acquired non-credit impaired loans on nonaccrual once reasonable doubt exists about the collectability of all principal and interest due. Generally, this occurs when principal or interest is 90 days or more past due, unless the loan is well secured and in the process of collection. A loan is considered impaired when, in management’s judgment, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines when loans become impaired through its normal loan administration and review functions. Loans identified as nonaccrual are potentially impaired loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired, provided that management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest income recognition on non‑acquired impaired loans is discontinued when the loans meet the criteria for nonaccrual status described above. Large groups of smaller balance homogeneous non‑acquired loans are collectively evaluated for loss and a general reserve is established accordingly. Acquired credit impaired loans are initially recorded at a discount to recognize the difference in the fair value of the loans and the contractual balance. The discount includes a component to recognize the absolute difference between the contractual value and the amount expected to be collected (total cash flow) as well as a component to recognize the net present value of that future amount to be collected. The net present value component is accretable into income, and therefore generates a yield on all acquired credit impaired loans, regardless of past due status. Therefore, acquired credit impaired loans are considered to be accruing loans. Acquired credit impaired loans that are greater than 90 days past due are placed into the greater than 90 days past due and still accruing category when analyzing the aging status of the loan portfolio. See Note 4—Loans and Allowance for Loan Losses for further detail. Troubled Debt Restructurings (“TDRs”) The Bank designates loan modifications as TDRs when, for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of modification are initially classified as accruing TDRs at the date of modification, if the note is reasonably assured of repayment and performance is in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is well documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). Allowance for Loan Losses The allowance for loan losses is established for estimated loan losses through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and specific reserves. The general reserves are determined, for loans not identified as impaired, by applying loss percentages to the portfolio that are based on historical loss experience and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. The specific reserves are determined, for impaired loans, on a loan‑by‑loan basis based on management’s evaluation of the Company’s exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. Management evaluates nonaccrual loans and TDRs regardless of accrual status to determine whether or not they are impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The Company requires updated appraisals on at least an annual basis for impaired loans that are collateral dependent. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Although management uses available information to estimate losses on loans, because of uncertainties associated with local, regional, and national economic conditions, collateral values, and future cash flows on impaired loans, and subjection of the model to the review of regulatory authorities, it is reasonably possible that a material change could occur in the allowance for loan losses in the near term. However, the amount of the change that is reasonably possible cannot be estimated. Other Real Estate Owned Other real estate owned (“OREO”), consisting of properties obtained through foreclosure or through a deed in lieu of foreclosure in satisfaction of loans and property originally acquired for further branch expansion (formerly classified as premises and equipment), is reported at the lower of cost or fair value, determined on the basis of current valuations obtained principally from independent sources, adjusted for estimated selling costs. At the time of foreclosure or initial possession of collateral, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Subsequent declines in the fair value of OREO below the new cost basis are recorded through valuation adjustments. Significant judgments and complex estimates are required in estimating the fair value of other real estate, and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility. In response to market conditions and other economic factors, management may utilize liquidation sales as part of its problem asset disposition strategy. As a result of the significant judgments required in estimating fair value and the variables involved in different methods of disposition, the net proceeds realized from sales transactions could differ significantly from the valuations used to determine the fair value of OREO. Management reviews the value of OREO each quarter and adjusts the values as appropriate. Revenue and expenses from OREO operations as well as gains or losses on sales and any subsequent adjustments to the value are recorded as OREO expense and loan related expense, a component of non‑interest expense. Business Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations , which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. No allowance for loan losses related to the acquired loans is recorded on the acquisition date because the fair value of the loans acquired incorporates assumptions regarding credit risk. Loans acquired are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements and Disclosures . The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of expected principal, interest and other cash flows. Acquired credit‑impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310‑30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality , and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Loans acquired in business combinations with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of purchase dates may include information such as past‑due and nonaccrual status, borrower credit scores and recent loan to value percentages. The Company considers expected prepayments and estimates the amount and timing of expected principal, interest and other cash flows for each loan or pool of loans meeting the criteria above, and determines the excess of the loan’s scheduled contractual principal and contractual interest payments over all cash flows expected to be collected at acquisition as an amount that should not be accreted (nonaccretable difference). The remaining amount, representing the excess of the loan’s or pool’s cash flows expected to be collected over the fair value for the loan or pool of loans, is accreted into interest income over the remaining life of the loan or pool (accretable yield). In accordance with FASB ASC Topic 310‑30, the Company aggregated acquired loans that have common risk characteristics into pools within the following loan categories: commercial real estate, commercial real estate—construction and development, residential real estate, consumer, commercial and industrial, and single pay. Single pay loans consist of those instruments for which repayment of principal and interest is expected at maturity. Loans acquired through business combinations that do not meet the specific criteria of FASB ASC Topic 310‑30, but for which a discount is attributable at least in part to credit quality are generally accounted for under this guidance. As a result, related discounts are recognized subsequently through accretion based on the expected cash flow of the acquired loans. Certain acquired loans, such as lines of credit (consumer and commercial) and loans for which there was no discount attributable to credit are accounted for in accordance with FASB ASC Topic 310‑20, where the discount is accreted through earnings based on estimated cash flows over the estimated life of the loan. Subsequent to the acquisition date, increases in cash flows expected to be received in excess of the Company’s initial estimates are reclassified from nonaccretable difference to accretable yield and are accreted into interest income on a level‑yield basis over the remaining life of the loan. Decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses. Probable and significant increases in cash flows (in a loan pool where an allowance for acquired loan losses was previously recorded) reduces the remaining allowance for acquired loan losses before recalculating the amount of accretable yield percentage for the loan pool in accordance with ASC 310-30. FDIC Indemnification Asset On June 23, 2016, the Bank entered into an early termination agreement with the FDIC with respect to all of its outstanding loss share agreements. All assets previously classified as covered became uncovered, and the Bank will now recognize the full amount of future charge-offs, recoveries, gains, losses, and expenses related to these previously covered assets, as the FDIC will no longer share in these amounts. With the termination of the loss share agreements, the Company no longer carries a FDIC indemnification asset. With the early termination agreement with the FDIC, the Bank recorded a pre-tax charge of $4.4 million, which resulted from a $2.3 million payment to the FDIC as consideration for the early termination, plus the amortization of the remaining FDIC indemnification asset of $2.1 million, net of the clawback, as of March 31, 2016. The entire pre-tax charge was recorded in noninterest income through “Amortization of the FDIC indemnification asset” on the consolidated statements of income. During 2016, the Bank paid a net $853,000 to the FDIC, prior to the termination of the agreements. The indemnification asset was amortized through March 31, 2016. All assets previously classified as covered became uncovered effective June 23, 2016, and as a result the Bank recognizes the full amount of future charge-offs, recoveries, gains, losses, and expenses related to these previously covered assets, as the FDIC will no longer share in these amounts. Related to periods before the termination of the loss share agreements, the FDIC indemnification asset was measured separately from the related covered asset as it was not contractually embedded in the assets and was not transferable with the assets had the Company chosen to dispose of them. Fair value was estimated at the acquisition date using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. These expected reimbursements did not include reimbursable amounts related to future covered expenditures. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. The Company offset any recorded provision for loan losses related to acquired‑covered loans by recording an increase in the FDIC indemnification asset by the increase in expected cash flow, which was the result of a decrease in expected cash flow of acquired loans. An increase in cash flows on acquired loans resulted in a decrease in cash flows on the FDIC indemnification asset, which was recognized in the future as negative accretion through non‑interest income over the shorter of the remaining life of the FDIC indemnification asset or the underlying loans. The Company incurred expenses related to the assets indemnified by the FDIC, and pursuant to the loss share agreement certain costs were reimbursable by the FDIC. These costs were included in monthly and quarterly claims made by the Company. The estimates of reimbursements were netted against these covered expenses in the income statement. Premises and Equipment Land is carried at cost. Office equipment, furnishings, and buildings are carried at cost less accumulated depreciation computed principally on the declining‑balance and straight‑line methods over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight‑line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases including lease renewals only when the Company is reasonably assured of the aggregate term of the lease. Additions to premises and equipment and major replacements are added to the accounts at cost. Maintenance and repairs and minor replacements are charged to expense when incurred. Gains and losses on routine dispositions are reflected in current operations. Bank Owned Life Insurance Bank owned life insurance (BOLI) are comprised of long-term life insurance contracts on the lives of certain current and past employees where the insurance policy benefits and ownership are retained by the employer. Its cash surrender value is an asset that the Company uses to partially offset the future cost of employee benefits. The cash value accumulation on BOLI is permanently tax deferred if the policy is held to the insured person’s death and certain other conditions are met. Intangible Assets Intangible assets consist of goodwill, core deposit intangibles, client list intangibles, and noncompetition agreement (“noncompete”) intangibles that result from the acquisition of other banks or branches from other financial institutions. Core deposit intangibles represent the value of long‑term deposit relationships acquired in these transactions. Client list intangibles represent the value of long‑term client relationships for the wealth and trust management business. Noncompete intangibles represent the value of key personnel relative to various competitive factors such as ability to compete, willingness or likelihood to compete, and feasibility based upon the competitive environment, and what the Bank could lose from competition. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two‑step test. The first step, used to identify potential impairment, involves comparing the reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill assigned to that reporting unit is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment of goodwill assigned to that reporting unit. If required, the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in the first step, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Management has determined that the Company has two reporting units. The Company evaluated the carrying value of goodwill as of April 30, 2018, its annual test date, and determined that no impairment charge was necessary. The Company updated its valuation of the carrying value of goodwill as of December 31, 2018 based on the drop in the Company’s stock price in the fourth quarter of 2018 and still determined that no impairment charge was necessary. Should the Company’s future earnings and cash flows decline and/or discount rates increase, an impairment charge to goodwill and other |
Mergers and Acquisitions
Mergers and Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Mergers and Acquisitions | |
Mergers and Acquisitions | Note 2—Mergers and Acquisitions The following are business combinations which have occurred over the past three years: · Park Sterling Corporation (“PSC” or “Park”) – November 30, 2017 – Whole bank acquisition · Southeastern Bank Financial Corporation (“SBFC” or “Southeastern” – January 3, 2017 – Whole bank acquisition Park Sterling Corporation On November 30, 2017, SSB acquired all of the outstanding common stock of Park Sterling Corporation (“PSC”), of Charlotte, North Carolina, the bank holding company for Park Sterling Bank (“PSB”), in a stock transaction. PSC common shareholders received 0.14 shares of the Company’s common stock in exchange for each share of PSC stock resulting in the Company issuing 7,480,343 shares of its common stock. In total, the purchase price for PSC was $693.0 million including the value of “in the money” outstanding stock options totaling $4.3 million. The PSC transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by Park Adjustments Adjustments the Company Assets Cash and cash equivalents $ 116,454 $ — $ — $ 116,454 Investment securities 461,261 1,444 (a) 219 (a) 462,924 Loans held for sale 2,200 68,686 (b) (4) (b) 70,882 Loans, net of allowance and mark 2,346,612 (95,878) (c) (9,408) (c) 2,241,326 Premises and equipment 61,059 (4,882) (d) (387) (d) 55,790 Intangible assets 73,090 (46,915) (e) 3,321 (e) 29,496 OREO and repossessed assets 2,549 (429) (f) 210 (f) 2,330 Bank owned life insurance 72,703 — — 72,703 Deferred tax asset 17,963 11,596 (g) 2,123 (g) 31,682 Other assets 21,595 (476) (h) — 21,119 Total assets $ 3,175,486 $ (66,854) $ (3,926) $ 3,104,706 Liabilities Deposits: Noninterest-bearing $ 561,874 $ — $ — $ 561,874 Interest-bearing 1,886,810 2,692 (i) (612) (i) 1,888,890 Total deposits 2,448,684 2,692 (612) 2,450,764 Federal funds purchased and securities sold under agreements to repurchase — — — — Other borrowings 329,249 11,689 (j) — 340,938 Other liabilities 24,179 2,131 (k) — 26,310 Total liabilities 2,802,112 16,512 (612) 2,818,012 Net identifiable assets acquired over (under) liabilities assumed 373,374 (83,366) (3,314) 286,694 Goodwill — 402,951 3,314 406,265 Net assets acquired over liabilities assumed $ 373,374 $ 319,585 $ — $ 692,959 Consideration: South State Corporation common shares issued 7,480,343 Purchase price per share of the SSB's common stock $ 92.05 SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) $ 688,654 Cash paid for stock option redemptions 4,305 Fair value of total consideration transferred $ 692,959 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects a reclass of $68.7 million by SSB of Shared National Credits (loans) from loans held for investment to loans held for sale. (c)—Adjustment reflects the fair value adjustments (discount) of $70.4 million based on the Company’s evaluation of the acquired loan portfolio. This amount excludes the allowance for loan losses (“ALLL”) and fair value adjustment (discount) of $12.5 million and $21.3 million, respectively, recorded by PSC and is net of the $68.7 million reclass related to the Shared National Credits noted in (b). (d)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (e)—Adjustment reflects the recording of a 1.66% Core Deposit Intangible (“CDI”) on the acquired deposit accounts that totaled $29.5 million offset by a write-off of $73.1 million of existing goodwill and CDI acquired from PSC. (f)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) based on the Company’s evaluation of the acquired OREO portfolio. (g)—Adjustment to record deferred tax asset related to the fair value adjustments and an adjustment from the PSC tax rate to the SSB tax rate. (h)—Adjustment reflects the write-off of accrued interest receivable and along with certain prepaid expenses. (i)—Adjustment reflects the premium for fixed maturity time deposits of $2.3 million offset by the write-off of existing fair value marks of $253,000 acquired from PSC. (j)—Adjustment reflects the fair value adjustment (discount) of $2.4 million on PSC’s Trust Preferred Securities offset by the write-off of the existing PSC discount on its senior debt and TRUPs of $14.0 million. (k)—Adjustment reflects the fair value adjustments to employee benefit plans of $1.5 million along with other adjustments of miscellaneous liabilities. Southeastern Bank Financial Corporation On January 3, 2017, SSB acquired all of the outstanding common stock of Southeastern Bank financial Corporation (“SBFC”), of Augusta, Georgia, the bank holding company for Georgia Bank & Trust Company of Augusta (“GB&T”), in a stock transaction. SBFC common shareholders received 0.7307 shares of the Company’s common stock in exchange for each share of SBFC stock resulting in the Company issuing 4,978,338 shares of its common stock. In total, the purchase price for SBFC was $435.1 million including the value of “in the money” outstanding stock options totaling $490,000. The SBFC transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. The following table presents the assets acquired and liabilities assumed as of January 3, 2017 at their initial and subsequent fair value estimates, as recorded by the Company. The fair value estimates were subject to refinement for up to one year after the closing date of the acquisition for new information obtained about facts and circumstances that existed at the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by SBFC Adjustments Adjustments the Company Assets Cash and cash equivalents $ 72,043 $ — $ — $ 72,043 Investment securities 591,824 (1,770) (a) — 590,054 Loans held for sale 13,652 — — 13,652 Loans, net of allowance and mark 1,060,618 (10,668) (b) — 1,049,950 Premises and equipment 25,419 (2,212) (c) 870 (c) 24,077 Intangible assets 140 17,980 (d) — 18,120 OREO and repossessed assets 580 (30) (e) (100) (e) 450 Bank owned life insurance 44,513 — — 44,513 Deferred tax asset 16,247 (687) (f) 515 (f) 16,075 Other assets 7,545 (482) (g) — 7,063 Total assets $ 1,832,581 $ 2,131 $ 1,285 $ 1,835,997 Liabilities Deposits: Noninterest-bearing $ 262,967 $ — $ — $ 262,967 Interest-bearing 1,257,953 — — 1,257,953 Total deposits 1,520,920 — — 1,520,920 Federal funds purchased and securities sold under agreements to repurchase 1,014 — — 1,014 Other borrowings 110,620 (1,120) (h) — 109,500 Other liabilities 19,980 5,553 (i) 2,210 (i) 27,743 Total liabilities 1,652,534 4,433 2,210 1,659,177 Net identifiable assets acquired over (under) liabilities assumed 180,047 (2,302) (925) 176,820 Goodwill — 257,370 925 258,295 Net assets acquired over liabilities assumed $ 180,047 $ 255,068 $ — $ 435,115 Consideration: South State Corporation common shares issued 4,978,338 Purchase price per share of the Company's common stock $ 87.30 Company common stock issued ($434,609) and cash exchanged for fractional shares ($16) $ 434,625 Cash paid for stock option redemptions 490 Fair value of total consideration transferred $ 435,115 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects the fair value adjustments of $30.7 million based on the Company’s evaluation of the acquired loan portfolio and excludes the allowance for loan losses (“ALLL”) of $20.1 million recorded by SBFC. (c)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (d)—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts that totaled $18.1 million. (e)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) and repossessed assets based on the Company’s evaluation of the acquired OREO and repossessed assets portfolio. (f)—Adjustment to record deferred tax asset related to the fair value adjustments. (g)—Adjustment reflects uncollectible portion of accrued interest receivable and loan fees receivable along with the write-off of certain prepaid expenses. (h)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of other borrowings of Trust Preferred Securities with a discount of $2.1 million, netted with premium on certain Federal Home Loan Bank (“FHLB “) advances of $1.0 million. (i)—Adjustment reflects the fair value adjustments to employee benefit plans of $8.3 million netted against an adjustment of other miscellaneous liabilities of $496,000. Comparative and Pro Forma Financial Information for Acquisitions in 2017 The results of the Company for the year ended December 31, 2017, include the results of the acquired assets and assumed liabilities for the 362 days subsequent to the acquisition date of January 3, 2017 related to the SBFC acquisition and for 31 days subsequent to the acquisition date of November 30, 2017 related to the PSC acquisition. Merger-related charges of $44.5 million are recorded in the consolidated statement of income for year ended December 31, 2017 and include incremental costs related to closing of the acquisitions, including legal, accounting and auditing, investment banker cost, termination of certain employment related contracts, travel costs, printing, supplies and other costs. Merger-related charges of $28.6 million are recorded in the consolidated statement of income for the year ended December 31, 2018 and include incremental costs related to closing of the acquisitions, including legal, accounting and auditing, termination of certain employment and vendor related contracts, travel costs, printing, supplies and other costs. The following table discloses the impact of the mergers (excluding the impact of merger-related expenses and of the revaluation of the net deferred tax asset due to the Tax Reform Act) with SBFC since the acquisition on January 3, 2017 through December 31, 2017 and with PSC since the acquisition on November 30, 2017 through December 31, 2017. The table also presents certain pro forma information as if SBFC and PSC had been acquired on January 1, 2017 and January, 1 2016. These results combine the historical results of SBFC and PSC in the Company’s consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2017 or January 1, 2016. The Company could not reasonably disclose the impact of the mergers with SBFC and PSC on the year ended December 31, 2018. During 2018, the assets and liabilities of SBFC and PSC became fully integrated into the Company to the point where it became impracticable to be able to break out the individual effects from each merger on the Company’s income statement. Merger-related costs of $50.0 million from the SBFC and PSC acquisitions were incurred during the year ended December 31, 2017, and were excluded from pro forma information below. In addition, no adjustments have been made to the pro formas to eliminate the provision for loan losses for the years ended December 31, 2017 and 2016 of SBFC and PSC in the amount of $325,000 and $3.5 million, respectively. No adjustments have been made to reduce the impact of any OREO write downs, investment securities sold or repayment of borrowings recognized by SBFC and PSC in either the years ended December 31, 2017 or 2016. The pro forma net adjusted income available to the common shareholder for December 31, 2017 includes the Company’s $26.6 million of income tax expense recorded as a result of the revaluation of the Company’s net deferred tax asset in connection with the Tax Reform Act signed into law during 2017. Expenses related to systems conversions and other costs of integration were recorded during 2018 for the PSC merger. During 2018, the Company achieved further operating cost savings and other business synergies as a result of the acquisitions which were not reflected in the pro forma amounts below: SBFC PSC Actual since Actual since Acquisition Acquisition Pro Forma Pro Forma (January 3, 2017 through (November 30, 2017 through Year Ended Year Ended (Dollars in thousands) December 31, 2017) December 31, 2017) December 31, 2017 December 31, 2016 Total revenues (net interest income plus noninterest income) $ 67,823 $ 14,052 $ 690,716 $ 684,532 Net adjusted income available to the common shareholder $ 25,790 $ 4,829 $ 146,821 $ 164,479 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investment Securities | |
Investment Securities | Note 3—Investment Securities The following is the amortized cost and fair value of investment securities held to maturity: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2018: State and municipal obligations $ — $ — $ — $ — December 31, 2017: State and municipal obligations $ 2,529 $ 27 $ — $ 2,556 The following is the amortized cost and fair value of investment securities available for sale: Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2018: Government-sponsored entities debt* $ 48,982 $ 21 $ (752) $ 48,251 State and municipal obligations 200,184 1,709 (1,125) 200,768 Mortgage-backed securities** 1,291,484 697 (24,133) 1,268,048 $ 1,540,650 $ 2,427 $ (26,010) $ 1,517,067 December 31, 2017: Government-sponsored entities debt* $ 86,535 $ 51 $ (1,077) $ 85,509 State and municipal obligations 216,812 3,749 (124) 220,437 Mortgage-backed securities** 1,350,200 2,103 (11,616) 1,340,687 Corporate securities 1,560 — — 1,560 $ 1,655,107 $ 5,903 $ (12,817) $ 1,648,193 * The Company’s government-sponsored entities holdings are comprised of debt securities offered by Federal Home Loan Mortgage Corporation (“FHLMC”) or Freddie Mac, Federal National Mortgage Association (“FNMA”) or Fannie Mae, FHLB, and Federal Farm Credit Banks (“FFCB”). Also included in the Company’s government-sponsored entities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. ** All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. The following is the amortized cost and carrying value of other investment securities: Carrying (Dollars in thousands) Value December 31, 2018: Federal Home Loan Bank stock $ 19,524 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 25,604 December 31, 2017: Federal Home Loan Bank stock $ 16,967 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 23,047 The Company’s other investment securities consist of non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of December 31, 2018, the Company has determined that there was no impairment on its other investment securities. The amortized cost and fair value of debt and equity securities at December 31, 2018 by contractual maturity are detailed below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. Securities Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 9,858 $ 9,808 Due after one year through five years — — 91,009 90,624 Due after five years through ten years — — 370,143 365,751 Due after ten years — — 1,069,640 1,050,884 $ — $ — $ 1,540,650 $ 1,517,067 The following table summarizes information with respect to sales of available‑for‑sale securities: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Securities Available for Sale: Sale proceeds $ 73,054 $ 374,938 $ 137 Gross realized gains $ 31 $ 1,832 $ 122 Gross realized losses (686) (411) — Net realized gain $ (655) $ 1,421 $ 122 There were no sales of held-to-maturity securities for year ended December 31, 2018, 2017 or 2016. The Company had 384 securities with gross unrealized losses at December 31, 2018. Information pertaining to securities with gross unrealized losses at December 31, 2018 and 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: Less Than Twelve Months Twelve Months or More Gross Gross Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value December 31, 2018: Securities Available for Sale Government-sponsored entities debt $ 100 $ 10,571 $ 652 $ 32,959 State and municipal obligations 760 40,387 365 14,231 Mortgage-backed securities 5,182 405,055 18,951 755,223 $ 6,042 $ 456,013 $ 19,968 $ 802,413 December 31, 2017: Securities Available for Sale Government-sponsored entities debt $ 403 $ 27,442 $ 674 $ 52,324 State and municipal obligations 124 17,400 — — Mortgage-backed securities 4,493 610,051 7,123 322,258 $ 5,020 $ 654,893 $ 7,797 $ 374,582 Management evaluates securities for other-than-temporary impairment (“OTTI”) on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more-likely-than-not that the Company will be required to sell the debt security prior to recovering its fair value, and (5) the anticipated outlook for changes in the general level of interest rates. As part of the Company’s evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, the Company considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. The unrealized loss position of the debt securities continued to increase during 2018 from the unrealized loss position in 2017. This change was primarily related to the mortgage-backed securities category, and was the result of the increase in interest rates during the year. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, the results of reviews of the issuer’s financial condition, and the issuer’s anticipated ability to pay the contractual cash flows of the investments. The Company does not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that the Company will be required to sell the debt securities; therefore, management does not consider these investments to be other-than-temporarily impaired at December 31, 2018. Management continues to monitor all of its securities with a high degree of scrutiny. There can be no assurance that the Company will not conclude in future periods that conditions existing at that time indicate some or all of these securities may be sold or are other than temporarily impaired, which would require a charge to earnings in such periods. At December 31, 2018 and 2017, investment securities with a carrying value of $888.8 million and $766.0 million, respectively, were pledged to secure public funds deposits and for other purposes required and permitted by law. At December 31, 2018 and 2017, the carrying amount of the securities pledged to collateralize repurchase agreements was $205.3 million and $211.1 million, respectively. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 4 - Loans and Allowance for Loan Losses The following is a summary of non‑acquired loans: December 31, (Dollars in thousands) 2018 2017 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 841,445 $ 830,875 Commercial non-owner occupied 1,415,551 1,008,893 Total commercial non-owner occupied real estate 2,256,996 1,839,768 Consumer real estate: Consumer owner occupied 1,936,265 1,530,260 Home equity loans 495,148 437,642 Total consumer real estate 2,431,413 1,967,902 Commercial owner occupied real estate 1,517,551 1,262,776 Commercial and industrial 1,054,952 815,187 Other income producing property 214,353 193,847 Consumer 448,664 378,985 Other loans 9,357 33,690 Total non-acquired loans 7,933,286 6,492,155 Less allowance for loan losses (51,194) (43,448) Non-acquired loans, net $ 7,882,092 $ 6,448,707 The above table includes deferred fees, net of deferred costs, totaling $697,000 and $466,000 at December 31, 2018 and 2017, respectively. The following is a summary of acquired non‑credit impaired loans accounted for under FASB ASC Topic 310‑20, net of the related discount: December 31, (Dollars in thousands) 2018 2017 FASB ASC Topic 310-20 acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 165,070 $ 403,357 Commercial non-owner occupied 679,253 817,166 Total commercial non-owner occupied real estate 844,323 1,220,523 Consumer real estate: Consumer owner occupied 628,813 710,611 Home equity loans 242,425 320,591 Total consumer real estate 871,238 1,031,202 Commercial owner occupied real estate 421,841 521,818 Commercial and industrial 212,537 398,696 Other income producing property 133,110 196,669 Consumer 111,777 137,710 Other — 1,289 Total FASB ASC Topic 310-20 acquired loans $ 2,594,826 $ 3,507,907 In accordance with FASB ASC Topic 310‑30, the Company aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The following is a summary of acquired credit impaired loans accounted for under FASB ASC Topic 310‑30 (identified as credit impaired at the time of acquisition), net of related discount: December 31, (Dollars in thousands) 2018 2017 FASB ASC Topic 310-30 acquired loans: Commercial real estate $ 196,764 $ 234,595 Commercial real estate—construction and development 32,942 49,649 Residential real estate 207,482 260,787 Consumer 42,492 51,453 Commercial and industrial 10,043 26,946 Total FASB ASC Topic 310-30 acquired loans 489,723 623,430 Less allowance for loan losses (4,604) (4,627) FASB ASC Topic 310-30 acquired loans, net $ 485,119 $ 618,803 The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for PSC (November 30, 2017) for loans accounted for using FASB ASC Topic 310-30. During the second quarter of 2018, the initial fair value of loans at acquisition were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio and the movement in interest rates from the initial valuation. The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for PSC (November 30, 2017) for loans accounted for using FASB ASC Topic 310-30. During the second quarter of 2018, the initial fair value of loans at acquisition were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio and the movement in interest rates from the initial valuation. November 30, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 113,584 Non-accretable difference (27,248) Cash flows expected to be collected 86,336 Accretable difference (7,369) Carrying value $ 78,967 The table above excludes $2.1 billion ($2.2 billion in contractual principal less a $46.5 million fair value adjustment) in acquired loans at fair value that were identified as either performing with no discount related to the credit or as revolving lines of credit (commercial or consumer) as of the acquisition date of Park and will be accounted for under FASB ASC Topic 310-20. The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for SBFC (January 3, 2017) for loans accounted for using FASB ASC Topic 310-30. During the third quarter of 2017, the initial fair values of the acquired loan portfolios were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio. January 3, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 78,963 Non-accretable difference (13,072) Cash flows expected to be collected 65,891 Accretable difference (4,910) Carrying value $ 60,981 The table above excludes $986.5 million ($1.0 billion in contractual principal less a $18.8 million fair value adjustment) in acquired loans at fair value that were identified as either performing with no discount related to the credit or as revolving lines of credit (commercial or consumer) as of the acquisition date of Southeastern and will be accounted for under FASB ASC Topic 310-20. Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values of total acquired credit impaired loans as of December 31, 2018 and 2017 are as follows: December 31, (Dollars in thousands) 2018 2017 Contractual principal and interest $ 631,295 $ 795,850 Non-accretable difference (24,818) (39,324) Cash flows expected to be collected 606,477 756,526 Accretable yield (116,754) (133,096) Carrying value $ 489,723 $ 623,430 Allowance for acquired loan losses $ (4,604) $ (4,627) Income on acquired credit impaired loans that are not impaired at the acquisition date is recognized in the same manner as loans impaired at the acquisition date. A portion of the fair value discount on acquired non‑impaired loans has been ascribed as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining nonaccretable difference represents cash flows not expected to be collected. The following are changes in the carrying value of acquired credit impaired loans: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of period $ 618,803 $ 602,546 $ 733,870 Fair value of acquired loans — 126,781 — Net reductions for payments, foreclosures, and accretion (133,707) (109,292) (131,635) Change in the allowance for loan losses on acquired loans 23 (1,232) 311 Balance at end of period, net of allowance for loan losses on acquired loans $ 485,119 $ 618,803 $ 602,546 The following are changes in the carrying amount of accretable yield for acquired credit impaired loans: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of period $ 133,096 $ 155,379 $ 201,538 Addition from the SBFC acquisition — 4,910 — Addition from the PSC acquisition — 8,829 — PSC acquisition Day 1 adjustment (1,460) Contractual interest income (33,115) (36,690) (39,873) Accretion on acquired loans (19,004) (20,841) (32,883) Reclass of nonaccretable difference due to improvement in expected cash flows 37,501 21,987 25,808 Other changes, net (264) (478) 789 Balance at end of period $ 116,754 $ 133,096 $ 155,379 The table above reflects the changes in the carrying amount of accretable yield for the acquired credit impaired loans and shows both the contractual interest income and incremental accretion for each year. In 2018, the accretable yield balance declined by $16.3 million as total contractual interest and accretion income of $52.1 million was recognized and an adjustment was made reducing the PSC day 1 balance for $1.5 million. This was partially offset by improved expected cash flows of $37.5 million. The improved cash flows for previous years were adjusted to accurately reflect the split between income types. As of December 31, 2018, the table above excludes $2.6 billion ($2.6 billion in contractual principal less a $33.4 million discount) in acquired loans which are accounted for under FASB ASC Topic 310-20. These loans were identified as either performing with no discount related to the credit or as a revolving lines of credit (commercial or consumer) at acquisition. As of December 31, 2017, the balance of these acquired loans totaled $3.5 billion ($3.6 billion in contractual principal less a $65.4 million remaining discount). Our loan loss policy adheres to U.S. GAAP as well as interagency guidance. The allowance for loan losses is based upon estimates made by management. We maintain an allowance for loan losses at a level that we believe is appropriate to cover estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of our loan portfolio. Arriving at the allowance involves a high degree of management judgment and results in a range of estimated losses. We regularly evaluate the adequacy of the allowance through our internal risk rating system, outside credit review, and regulatory agency examinations to assess the quality of the loan portfolio and identify problem loans. The evaluation process also includes our analysis of current economic conditions, composition of the loan portfolio, past due and nonaccrual loans, concentrations of credit, lending policies and procedures, and historical loan loss experience. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on, among other factors, changes in economic conditions in our markets. In addition, regulatory agencies, as an integral part of their examination process, periodically review our allowances for losses on loans. These agencies may require management to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these and other factors, it is possible that the allowances for losses on loans may change. The provision for loan losses is charged to expense in an amount necessary to maintain the allowance at an appropriate level. The allowance for loan losses on non‑acquired loans consists of general and specific reserves. The general reserves are determined by applying loss percentages to the portfolio that are based on historical loss experience for each class of loans and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. Currently, these adjustments are applied to the non‑acquired loan portfolio when estimating the level of reserve required. The specific reserves are determined on a loan‑by‑loan basis based on management’s evaluation of our exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. These are loans classified by management as doubtful or substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Loans that are determined to be impaired are provided a specific reserve, if necessary, and are excluded from the calculation of the general reserves. Beginning with the First Financial Holdings, Inc. acquisition, the Company segregated the loan portfolio into performing loans (“non‑credit impaired) and purchased credit impaired loans. The performing loans and revolving type loans are accounted for under FASB ASC 310‑20, with each loan being accounted for individually. The allowance for loan losses on these loans will be measured and recorded consistent with non‑acquired loans. The acquired credit impaired loans will follow the description in the next paragraph. In determining the acquisition date fair value of purchased loans, and in subsequent accounting, the Company generally aggregates purchased loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are reclassified from the non‑accretable difference to accretable yield and recognized as interest income prospectively. Decreases in expected cash flows after the acquisition date are recognized by recording an allowance for loan losses. Management analyzes the acquired loan pools using various assessments of risk to determine an expected loss. The expected loss is derived based upon a loss given default based upon the collateral type and/or detailed review by loan officers and the probability of default that is determined based upon historical data at the loan level. All acquired loans managed by Special Asset Management are reviewed quarterly and assigned a loss given default. Acquired loans not managed by Special Asset Management are reviewed twice a year in a similar method to the Company’s originated portfolio of loans which follow review thresholds based on risk rating categories. In the fourth quarter of 2015, the Company modified its methodology to a more granular approach in determining loss given default on substandard loans with a net book balance between $100,000 and $500,000 by adjusting the loss given default to 90% of the most current collateral valuation based on appraised value. Substandard loans greater than $500,000 were individually assigned loss given defaults each quarter. Trends are reviewed in terms of accrual status, past due status, and weighted‑average grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the mark is assessed to correlate the directional consistency of the expected loss for each pool. Prior to the termination of our loss share agreements in June 2016, offsetting the impact of the provision established for acquired loans covered under FDIC loss share agreements, the receivable from the FDIC was adjusted to reflect the indemnified portion of the post‑acquisition exposure with a corresponding credit to the provision for loan losses. (For further discussion of the Company’s allowance for loan losses on acquired loans, see Note 1—Summary of Significant Accounting Policies and Note 2—Mergers and Acquisitions.) An aggregated analysis of the changes in allowance for loan losses is as follows: Non-acquired Acquired Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Year Ended December 31, 2018: Balance at beginning of period $ 43,448 $ — $ 4,627 $ 48,075 Loans charged-off (6,012) (2,214) — (8,226) Recoveries of loans previously charged off 2,995 305 — 3,300 Net charge-offs (3,017) (1,909) — (4,926) Provision for loan losses charged to operations 10,763 1,909 1,111 13,783 Reduction due to loan removals — — (1,134) (1,134) Balance at end of period $ 51,194 $ — $ 4,604 $ 55,798 Year Ended December 31, 2017: Balance at beginning of period $ 36,960 $ — $ 3,395 $ 40,355 Loans charged-off (5,149) (1,630) — (6,779) Recoveries of loans previously charged off 2,953 477 — 3,430 Net charge-offs (2,196) (1,153) — (3,349) Provision for loan losses charged to operations 8,684 1,153 2,053 11,890 Reduction due to loan removals — — (821) (821) Balance at end of period $ 43,448 $ — $ 4,627 $ 48,075 Year Ended December 31, 2016: Balance at beginning of period $ 34,090 $ — $ 3,706 $ 37,796 Loans charged-off (5,902) (987) — (6,889) Recoveries of loans previously charged off 3,233 318 — 3,551 Net charge-offs (2,669) (669) — (3,338) Provision for loan losses 5,539 669 588 6,796 Benefit attributable to FDIC loss share agreements — — 23 23 Total provision for loan losses charged to operations 5,539 669 611 6,819 Provision for loan losses recorded through the FDIC loss share receivable — — (23) (23) Reduction due to loan removals — — (899) (899) Balance at end of period $ 36,960 $ — $ 3,395 $ 40,355 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non‑acquired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Year Ended December 31, 2018: Allowance for loan losses: Balance at beginning of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Charge-offs (76) — (659) (80) (215) (500) (2) (4,480) — (6,012) Recoveries 1,340 11 145 132 279 256 21 811 — 2,995 Provision (benefit) (1,503) 2,218 1,755 2,193 120 2,210 52 3,982 (264) 10,763 Balance at end of period $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Loans individually evaluated for impairment $ 788 $ 70 $ 27 $ 41 $ 142 $ 416 $ 142 $ 2 $ — $ 1,628 Loans collectively evaluated for impairment $ 4,894 $ 8,684 $ 9,342 $ 11,872 $ 3,292 $ 7,038 $ 1,304 $ 3,099 $ 41 $ 49,566 Loans: Loans individually evaluated for impairment $ 37,913 $ 1,025 $ 4,142 $ 6,761 $ 2,826 $ 1,291 $ 2,872 $ 188 $ — $ 57,018 Loans collectively evaluated for impairment 803,532 1,414,526 1,513,409 1,929,504 492,322 1,053,661 211,481 448,476 9,357 7,876,268 Total non-acquired loans $ 841,445 $ 1,415,551 $ 1,517,551 $ 1,936,265 $ 495,148 $ 1,054,952 $ 214,353 $ 448,664 $ 9,357 $ 7,933,286 Year Ended December 31, 2017: Allowance for loan losses: Balance at beginning of period $ 4,091 $ 4,980 $ 8,022 $ 7,820 $ 3,211 $ 4,842 $ 1,542 $ 2,350 $ 102 $ 36,960 Charge-offs (546) — — (185) (330) (776) (51) (3,261) — (5,149) Recoveries 968 132 220 306 210 343 85 689 — 2,953 Provision (benefit) 1,408 1,413 (114) 1,727 159 1,079 (201) 3,010 203 8,684 Balance at end of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Loans individually evaluated for impairment $ 1,063 $ 125 $ 64 $ 37 $ 135 $ 15 $ 178 $ 7 $ — $ 1,624 Loans collectively evaluated for impairment $ 4,858 $ 6,400 $ 8,064 $ 9,631 $ 3,115 $ 5,473 $ 1,197 $ 2,781 $ 305 $ 41,824 Loans: Loans individually evaluated for impairment $ 43,230 $ 1,375 $ 5,642 $ 5,632 $ 3,011 $ 1,156 $ 3,138 $ 239 $ — $ 63,423 Loans collectively evaluated for impairment 787,645 1,007,518 1,257,134 1,524,628 434,631 814,031 190,709 378,746 33,690 6,428,732 Total non-acquired loans $ 830,875 $ 1,008,893 $ 1,262,776 $ 1,530,260 $ 437,642 $ 815,187 $ 193,847 $ 378,985 $ 33,690 $ 6,492,155 Year Ended December 31, 2016: Allowance for loan losses: Balance at beginning of period $ 4,116 $ 3,568 $ 8,341 $ 7,212 $ 2,929 $ 3,974 $ 1,963 $ 1,694 $ 293 $ 34,090 Charge-offs (159) (111) (118) (226) (808) (876) (7) (3,597) — (5,902) Recoveries 912 512 54 134 299 292 87 943 — 3,233 Provision (benefit) (778) 1,011 (255) 700 791 1,452 (501) 3,310 (191) 5,539 Balance at end of period $ 4,091 $ 4,980 $ 8,022 $ 7,820 $ 3,211 $ 4,842 $ 1,542 $ 2,350 $ 102 $ 36,960 Loans individually evaluated for impairment $ 348 $ 170 $ 67 $ 80 $ 40 $ 386 $ 242 $ 4 $ — $ 1,337 Loans collectively evaluated for impairment $ 3,743 $ 4,810 $ 7,955 $ 7,740 $ 3,171 $ 4,456 $ 1,300 $ 2,346 $ 102 $ 35,623 Loans: Loans individually evaluated for impairment $ 3,033 $ 806 $ 6,245 $ 5,673 $ 1,674 $ 1,263 $ 2,372 $ 145 $ — $ 21,211 Loans collectively evaluated for impairment 577,431 713,909 1,171,500 1,191,948 381,544 670,135 175,866 324,093 13,404 5,219,830 Total non-acquired loans $ 580,464 $ 714,715 $ 1,177,745 $ 1,197,621 $ 383,218 $ 671,398 $ 178,238 $ 324,238 $ 13,404 $ 5,241,041 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired non-credit impaired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Other Total Year Ended December 31, 2018 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (107) — (28) (70) (436) (1,108) — (465) — (2,214) Recoveries 8 — — 64 102 63 — 68 — 305 Provision (benefit) 99 — 28 6 334 1,045 — 397 — 1,909 Balance, December 31, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 165,070 679,253 421,841 628,813 242,425 212,537 133,110 111,777 — 2,594,826 Total acquired non-credit impaired loans $ 165,070 $ 679,253 $ 421,841 $ 628,813 $ 242,425 $ 212,537 $ 133,110 $ 111,777 $ — $ 2,594,826 Year Ended December 31, 2017 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (82) — — (150) (859) (71) — (468) — (1,630) Recoveries 4 — 2 41 393 6 8 23 — 477 Provision (benefit) 78 — (2) 109 466 65 (8) 445 — 1,153 Balance, December 31, 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 403,357 817,166 521,818 710,611 320,591 398,696 196,669 137,710 1,289 3,507,907 Total acquired non-credit impaired loans $ 403,357 $ 817,166 $ 521,818 $ 710,611 $ 320,591 $ 398,696 $ 196,669 $ 137,710 $ 1,289 $ 3,507,907 Year Ended December 31, 2016 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — 39 — (428) (66) — (532) — (987) Recoveries 4 — — 12 199 9 43 51 — 318 Provision (benefit) (4) — (39) (12) 229 57 (43) 481 — 669 Balance, December 31, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 10,090 34,628 27,195 408,270 160,879 13,641 39,342 142,654 — 836,699 Total acquired non-credit impaired loans $ 10,090 $ 34,628 $ 27,195 $ 408,270 $ 160,879 $ 13,641 $ 39,342 $ 142,654 $ — $ 836,699 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans: Commercial Real Estate- Commercial Construction and Residential Commercial (Dollars in thousands) Real Estate Development Real Estate Consumer and Industrial Single Pay Total Year Ended December 31, 2018: Allowance for loan losses: Balance, December 31, 2017 $ $ $ $ $ $ — $ Provision for loan losses 657 (892) — Reduction due to loan removals (19) — Balance, December 31, 2018 $ $ $ $ $ $ — $ Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ $ $ $ $ $ — $ Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment — Total acquired credit impaired loans $ $ $ $ $ $ — $ Year Ended December 31, 2017: Allowance for loan losses: Balance, December 31, 2016 $ 41 $ 139 $ 2,419 $ 558 $ 238 $ — $ 3,395 Provision for loan losses 247 163 1,662 (83) 64 — 2,053 Reduction due to loan removals — (122) (528) (14) (157) — (821) Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ — $ 4,627 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 288 $ 180 $ 3,553 $ 461 $ 145 $ — $ 4,627 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 234,595 49,649 260,787 51,453 26,946 — 623,430 Total acquired credit impaired loans $ 234,595 49,649 260,787 51,453 26,946 — 623,430 Year Ended December 31, 2016: Allowance for loan losses: Balance, December 31, 2015 $ 56 $ 177 $ 2,986 $ 313 $ 174 $ — $ 3,706 Provision for loan losses before benefit attributable to FDIC loss share agreements 1 — (129) 533 183 — 588 Benefit attributable to FDIC loss share agreements — — 23 — — — 23 Total provision for loan losses charged to operations 1 — (106) 533 183 — 611 Provision for loan losses recorded through the FDIC loss share receivable — — (23) — — — (23) Reduction due to loan removals (16) (38) (438) (288) (119) — (899) Balance, December 31, 2016 $ 41 $ 139 $ 2,419 $ 558 $ 238 $ — $ 3,395 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 41 $ 139 $ 2,419 $ 558 $ 238 $ — $ 3,395 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 218,821 44,373 258,100 59,300 25,347 — 605,941 Total acquired credit impaired loans $ 218,821 $ 44,373 $ 258,100 $ 59,300 $ 25,347 $ — $ 605,941 * The carrying value of acquired credit impaired loans includes a non‑accretable difference which is primarily associated with the assessment of credit quality of acquired loans. As part of the on‑going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the level of classified loans, (ii) net charge‑offs, (iii) non‑performing loans (see details below) and (iv) the general economic conditions of the markets that we serve. The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of the risk grades is as follows: · Pass—These loans range from minimal credit risk to average however still acceptable credit risk. · Special mention—A special mention loan 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 loan or the institution’s credit position at some future date. · Substandard—A substandard loan is 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 may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. · Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The following table presents the credit risk profile by risk grade of commercial non‑acquired loans: Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 832,612 $ 818,240 $ 1,407,744 $ 999,049 $ 1,480,267 $ 1,232,927 Special mention 6,015 8,758 6,427 7,864 24,576 23,575 Substandard 2,818 3,877 1,380 1,980 12,708 6,274 Doubtful — — — — — — $ 841,445 $ 830,875 $ 1,415,551 $ 1,008,893 $ 1,517,551 $ 1,262,776 Commercial & Industrial Other Income Producing Property Commercial Total December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 Pass $ 1,037,915 $ 801,885 $ 208,186 $ 186,158 $ 4,966,724 $ 4,038,259 Special mention 5,887 11,130 4,706 6,034 47,611 57,361 Substandard 11,150 2,172 1,461 1,655 29,517 15,958 Doubtful — — — — — — $ 1,054,952 $ 815,187 $ 214,353 $ 193,847 $ 5,043,852 $ 4,111,578 The following table presents the credit risk profile by risk grade of consumer non‑acquired loans: Consumer Owner Occupied Home Equity Consumer December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 1,909,427 $ 1,502,016 $ 481,607 $ 424,369 $ 446,823 $ 377,425 Special mention 11,304 13,902 7,293 6,749 437 313 Substandard 15,534 14,342 6,248 6,524 1,404 1,247 Doubtful — — — — — — $ 1,936,265 $ 1,530,260 $ 495,148 $ 437,642 $ 448,664 $ 378,985 Other Consumer Total December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Pass $ 9,357 $ 33,690 $ 2,847,214 $ 2,337,500 Special mention — — 19,034 20,964 Substandard — — 23,186 22,113 Doubtful — — — — $ 9,357 $ 33,690 $ 2,889,434 $ 2,380,577 The following table presents the credit risk profile by risk grade of total non‑acquired loans: Total Non-acquired Loans December 31, December 31, (Dollars in thousands) 2018 2017 Pass $ 7,813,938 $ 6,375,759 Special mention 66,645 78,325 Substandard 52,703 38,071 Doubtful — — $ 7,933,286 $ 6,492,155 At December 31, 2018, the aggregate amount of non‑acquired substandard and doubtful loans totaled $52.7 million. When these loans are combined with non‑acquired OREO of $3.9 million, our non‑acquired classified assets (as defined by the South Carolina Board of Financial Institutions and the FDIC, our primary regulators) were $56.6 million. At December 31, 2017, the amounts were $38.1 million, $2.4 million, and $40.5 million, respectively. The following table presents the credit risk profile by risk grade of commercial loans for acquired non‑credit impaired loans: Commercial Non-owner Construction & Development Occupied Commercial Owner Occupied December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 163,777 $ 394,139 $ 665,913 $ 809,241 $ 411,783 $ 513,861 Special mention 838 4,602 13,018 7,913 5,664 7,740 Substandard 455 4,616 322 12 4,394 217 Doubtful — — — — — — $ 165,070 $ 403,357 $ 679,253 $ 817,166 $ 421,841 $ 521,818 Other Income Producing Commercial & Industrial Property Commercial Total December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 Pass $ 202,399 $ 388,342 $ 125,399 $ 191,229 $ 1,569,271 $ 2,296,812 Special mention 6,523 9,883 6,419 4,547 32,462 34,685 Substandard 3,615 471 1,292 893 10,078 6,209 Doubtful — — — — — — $ 212,537 $ 398,696 $ 133,110 $ 196,669 $ 1,611,811 $ 2,337,706 The following table presents the credit risk profile by risk grade of consumer loans for acquired non‑credit impaired loans: Consumer Owner Occupied Home Equity Consumer December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 617,391 $ 703,557 $ 227,515 $ 301,842 $ 108,833 $ 134,530 Special mention 7,868 4,165 7,688 10,477 698 541 Substandard 3,554 2,889 7,222 8,272 2,246 2,639 Doubtful — — — — — — $ 628,813 $ 710,611 $ 242,425 $ 320,591 $ 111,777 $ 137,710 Other Consumer Total December 31, December 31, 2018 2017 2018 2017 Pass $ — $ 1,289 $ 953,739 $ 1,141,218 Special mention — — 16,254 15,183 Substandard — — 13,022 13,800 Doubtful — — — — $ — $ 1,289 $ 983,015 $ 1,170,201 The following table presents the credit risk profile by risk grade of total acquired non-credit impaired loans: Total Acquired Non-credit Impaired Loans December 31, (Dollars in thousands) 2018 2017 Pass $ 2,523,010 $ 3,438 |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 5—Other Real Estate Owned The following is a summary of the changes in the carrying value of OREO: Covered (Dollars in thousands) OREO OREO Total Balance, December 31, 2015 $ 24,803 $ 5,751 $ 30,554 Transfers 4,222 (4,222) — Additions, net 11,842 2,151 13,993 Writedowns (2,270) (2,131) (4,401) Sold (20,281) (1,549) (21,830) Balance, December 31, 2016 — Acquired in Southeastern Bank Financial Corp. acquisition — 385 Acquired in Park Sterling Corp. acquisition — 2,046 Additions, net — 11,558 Writedowns — (2,249) Sold — (18,853) Balance, December 31, 2017 — 11,203 Acquired in Park Sterling Corp. acquisition — 210 Additions, net — 13,391 Writedowns — Sold — Balance, December 31, 2018 $ $ — $ On June 23, 2016, the Bank entered into an early termination agreement with the FDIC with respect to all of its outstanding loss share agreements. The covered OREO shown above was presented net of the related fair value discount, and the activity reflected for the covered assets is prior to the early termination of the FDIC loss share agreements. All remaining OREO previously classified as covered became uncovered during the second quarter of 2016, which consisted of 17 properties with a carrying value of $4.2 million as of March 31, 2016. At December 31, 2018, there were a total of 75 properties included in OREO which compares to 82 properties included in OREO, at December 31, 2017. At December 31, 2018, the Company had $1.2 million in residential real estate included in OREO and $4.7 million in residential real estate consumer mortgage loans in the process of foreclosure. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Premises and Equipment | |
Premises and Equipment | Note 6—Premises and Equipment Premises and equipment consisted of the following: December 31, (Dollars in thousands) Useful Life 2018 2017 Land $ 77,338 $ 81,291 Buildings and leasehold improvements 15 - 40 years 224,620 227,402 Equipment and furnishings 3 - 10 years 109,468 104,319 Construction in process 3,782 2,305 Total 415,208 415,317 Less accumulated depreciation (174,132) (159,752) $ 241,076 $ 255,565 Depreciation expense charged to operations was $18.7 million, $15.2 million, and $11.5 million for the years ended December 31, 2018, 2017, and 2016, respectively. At December 31, 2018 and 2017, computer software with an original cost of $13.5 million and $13.0 million, respectively, were being amortized using the straight‑line method over thirty-six months. Amortization expense totaled $2.1 million, $2.5 million, and $2.3 million for the years ended December 31, 2018, 2017, and 2016, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 7—Goodwill and Other Intangible Assets In accordance with FASB ASC 350, Intangibles—Goodwill and Other , the Company ceased amortization of goodwill as of January 1, 2002. The Company evaluated the carrying value of goodwill as of April 30, 2018, its annual test date, and determined that no impairment charge was necessary. The Company updated its valuation of the carrying value of goodwill as of December 31, 2018 based on the drop in the Company’s stock price in the fourth quarter of 2018 and still determined that no impairment charge was necessary. The following is a summary of changes in the carrying amounts of goodwill: Year Ended December 31, (Dollars in thousands) 2018 2017 Balance at beginning of period $ 999,586 $ 338,340 Additions: Goodwill from Southeastern Bank Financial acquisition — 258,295 Goodwill from Park Sterling Financial acquisition — 402,951 PSC acquisition Day 1 adjustment 3,314 — Balance at end of period $ 1,002,900 $ 999,586 The Company’s other intangible assets, consisting of core deposit intangibles, noncompete intangibles, and client list intangibles are included on the face of the balance sheet. The following is a summary of gross carrying amounts and accumulated amortization of other intangible assets: December 31, (Dollars in thousands) 2018 2017 Gross carrying amount $ 129,770 $ 126,449 Accumulated amortization (66,870) (52,660) $ 62,900 $ 73,789 Amortization expense totaled $14.2 million, $10.4 million and $7.6 million for the years ended December 31, 2018, 2017, and 2016, respectively. Other intangibles are amortized using either the straight‑line method or an accelerated basis over their estimated useful lives, with lives generally between 2 and 15 years. Estimated amortization expense for other intangibles for each of the next five years is as follows: (Dollars in thousands) Year ended December 31: 2019 $ 13,084 2020 11,867 2021 10,584 2022 9,266 2023 6,314 Thereafter 11,785 $ 62,900 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits | |
Deposits | Note 8—Deposits The Company’s total deposits are comprised of the following: December 31, (Dollars in thousands) 2018 2017 Certificates of deposit $ 1,775,095 $ 1,738,384 Interest-bearing demand deposits 5,407,175 5,300,108 Non-interest bearing demand deposits 3,061,769 3,047,432 Savings deposits 1,399,815 1,443,918 Other time deposits 3,079 2,924 Total deposits $ 11,646,933 $ 11,532,766 At December 31, 2018 and 2017 the Company had $320.0 million and $325.3 million in certificates of deposits of $250,000 and greater, respectively. At December 31, 2018 and 2017, the Company had $7.6 million and $43.6 million, respectively, in traditional, out‑of‑market brokered deposits. At December 31, 2018, the scheduled maturities of time deposits (includes $3.1 million of other time deposits) of all denominations are as follows: (Dollars in thousands) Year ended December 31: 2019 $ 1,185,607 2020 349,515 2021 115,223 2022 101,662 2023 21,403 Thereafter 4,764 $ 1,778,174 |
Federal Funds Purchased and Sec
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2018 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | Note 9—Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Federal funds purchased and securities sold under agreements to repurchase generally mature within one to three days from the transaction date, but may have maturities as long as nine months per our policies. Certain of the borrowings have no defined maturity date. Information concerning federal funds purchased and securities sold under agreements to repurchase are below: December 31, 2018 2017 2016 (Dollars in thousands) Amount Rate Amount Rate Amount Rate At period-end: Federal funds purchased and securities sold under repurchase agreements $ 270,649 1.08 % $ 286,857 0.45 % $ 313,773 0.24 % Average for the year: Federal funds purchased and securities sold under repurchase agreements $ 312,768 0.75 % $ 325,713 0.33 % $ 320,901 0.18 % Maximum month-end balance: Federal funds purchased and securities sold under repurchase agreements $ 362,047 $ 401,786 $ 334,260 Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase (“repurchase agreements”) represent funds received from customers, generally on an overnight or continuous basis, which are collateralized by investment securities owned or, at times, borrowed and re-hypothecated by the Company. Repurchase agreements are subject to terms and conditions of the master repurchase agreements between the Company and the client and are accounted for as secured borrowings. The Company monitors the fair value of the underlying securities on a daily basis. Some securities underlying these agreements include arrangements to resell securities from broker‑dealers approved by the Company. Repurchase agreements are reflected at the amount of cash received in connection with the transaction and included in federal funds purchased and securities sold under agreements to repurchase on the condensed consolidated balance sheets. At December 31, 2018 and December 31, 2017, the Company’s repurchase agreements totaled $205.3 million and $211.1 million, respectively. All of the Company’s repurchase agreements were overnight or continuous (until-further-notice) agreements at December 31, 2018 and December 31, 2017. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a carrying value of $205.3 million and $211.1 million at December 31, 2018 and December 31, 2017, respectively. Declines in the value of the collateral would require the Company to increase the amounts of securities pledged. |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Other Borrowings. | |
Other Borrowings | Note 10— Other Borrowings The Company’s other borrowings were as follows: 2018 2017 Weighted Weighted Interest Average Interest Average Rate at Interest Rate at Interest (Dollars in thousands) Maturity 12/31/2018 Balance Rate 12/31/2017 Balance Rate Short-term borrowings: Federal Home Loan Bank Fixed Rate Credit 1/16/2018 — % $ — 1.40 $ 50,000 Federal Home Loan Bank Fixed Rate Credit 4/27/2018 — % — 1.57 50,000 Federal Home Loan Bank Short Term Advance 12/31/2019 % — — Total short-term borrowings % 100,000 1.48 % Long-term borrowings SCBT Capital Trust I junior subordinated debt (1) 6/15/2035 % % 12,372 SCBT Capital Trust II junior subordinated debt (1) 6/15/2035 % % 8,248 SCBT Capital Trust III junior subordinated debt (1) 7/18/2035 % % 20,619 SAVB Capital Trust I junior subordinated debt (1) 10/7/2033 % % 6,186 SAVB Capital Trust II junior subordinated debt (1) 12/15/2034 % % 4,124 TSB Statutory Trust I junior subordinated debt (1) 3/14/2037 % % 3,093 Southeastern Bank Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 % % 10,310 Southeastern Bank Financial Statutory Trust II junior subordinated debt (1) 6/15/2036 % % 10,310 CSBC Statutory Trust I junior subordinated debt (1) 12/15/2035 % % 15,464 Community Capital Statutory Trust I junior subordinated debt (1) 6/15/2036 % % 10,310 FCRV Statutory Trust I junior subordinated debt (1) 12/15/2036 % % 5,155 Provident Community Bancshares Capital Trust I junior subordinated debt (1) 3/1/2037 % % 4,124 Provident Community Bancshares Capital Trust II junior subordinated debt (1) 10/1/2036 % % 8,248 Fair Market Value Discount Trust Preferred Debt Acquired (4,063) Other Various % % 1,885 Total long-term borrowings % 116,385 % Total borrowings $ 266,084 $ 216,385 (1) All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from 140 basis points to 285 basis points. Short-Term FHLB Advances The Company has from time‑to‑time entered into borrowing agreements with the FHLB. Advances under these agreements are collateralized by stock in the FHLB, qualifying first and second mortgage residential loans, and commercial real estate loans under a blanket‑floating lien. As of December 31, 2018, and 2017, there was $150.0 million and $100.0 million in outstanding Short-Term FHLB advances, respectively. For the years ended December 31, 2018 and 2017, the average balance for Short-Term FHLB advances was $42.3 million and $25.6 million, respectively. The weighted average cost of the Short-Term FHLB advances at period end December 31, 2018 was 2.64% and the weighted average cost year to date for the year ended December 31, 2018 was 1.57%. The weighted average cost of the FHLB advances at period end December 31, 2017 was 1.48% and the weighted average cost year to date for the year ended December 31, 2017 was 0.97%. The Company did not have any short-term FHLB borrowings outstanding in 2016. Net eligible loans of the Company pledged via a blanket lien to the FHLB for advances and letters of credit at December 31, 2018, were approximately $2.5 billion which allows the Company a total borrowing capacity at FHLB of approximately $1.9 billion. After accounting for letters of credit totaling $11.5 million, the Company had unused net credit available with the FHLB in the amount of approximately $1.7 billion at December 31, 2018. Junior Subordinated Debt The obligations of the Company with respect to the issuance of the capital securities constitute a full and unconditional guarantee by the Company of the trusts’ obligations with respect to the capital securities. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related capital securities. All of the Company’s junior subordinated debt is callable after five years from issuance. Therefore, all of the junior subordinated debt is callable at December 31, 2018. As of December 31, 2018, the sole assets of the trusts were an aggregate of $115.2 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the trust preferred securities. As of December 31, 2018, the Company recorded a $115.2 million liability for the junior subordinated debt securities, net of a $3.4 million discount recorded on Southeastern Bank Financial Statutory Trust I and II, Citizens South Banking Corporation Statutory Trust I, Community Capital Statutory Trust I, FCRV Statutory Trust I, Provident Community Bancshares Capital Trust I and II. The Company, as issuer, can call any of these subordinated debt securities without penalty. If the Company were to call the securities, the amount paid to the holders would be $118.6 million and the Company would fully amortize any remaining discount into interest expense. The remaining discount is being amortized over either a two and one-half year period or five year period. As of December 31, 2018, and 2017, there was $115.2 million (net of discount of $3.4 million) and $114.5 million (net of discount of $4.1 million), respectively, in junior subordinated debt. The weighted average cost of the junior subordinated debt at period end December 31, 2018 was 4.45% and the weighted average cost year to date for the year ended December 31, 2018 of 3.90%. This does not take into account the discount. If the discount were taken into account the weighted average cost year to date would be 4.61%. This compares to a weighted average cost of the junior subordinated debt at period end December 31, 2017 of 3.26% and the weighted average cost year to date for the year ended December 31, 2017 of 2.99%. If the discount were taken into account the weighted average cost year to date would be 3.94% in 2017. For regulatory purposes, the junior subordinated debt securities may be classified as Tier 1 Capital. The trust preferred securities represent a minority investment in an unconsolidated subsidiary, which is currently included in Tier 1 Capital so long as it does not exceed 25% of total Tier 1 Capital. Line of Credit On November 15, 2018, the Company entered into an amendment to its Credit Agreement (the “Agreement”) with U.S. Bank National Association (the “Lender”). The Agreement provides for a $10 million unsecured line of credit by the Lender to the Company. The maturity date of the Agreement is November 15, 2019, provided that the Agreement may be extended subject to the approval of the Lender. Borrowings by the Company under the Agreement will bear interest at a rate per annum equal to one-month LIBOR plus 1.50%. As of December 31, 2018 and 2017, and there was no outstanding balance associated with the line of credit. Principal maturities of other borrowings are summarized below: Junior Subordinated FHLB (Dollars in thousands) Debt Advances Other Total Year Ended December 31, 2019 $ — $ $ $ 2020 — — 2021 — — 2022 — — 2023 — — Thereafter — $ $ $ $ |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Income Taxes | Note 11—Income Taxes On December 22, 2017, the President signed into law the Tax Reform Act which, among other things, lowered the maximum corporate tax rate from 35% to 21% beginning in 2018. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. On December 22, 2017, the SEC staff issued Staff Accounting Bulletin No. 118 to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. The Company recognized a provisional tax impact of $26.6 million as additional income tax expense related to the revaluation of deferred tax assets and liabilities and included that amount in its consolidated financial statements for the year ended December 31, 2017. In addition to that, during 2018, the Company finalized its calculation for the revaluation of deferred tax assets and liabilities and recorded that impact of $991,000 as an income tax benefit in its consolidated financial statements for the year ended December 31, 2018. The provision for income taxes consists of the following: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Current: Federal $ 25,275 $ 46,153 $ 37,187 State 6,783 3,018 3,325 Total current tax expense 32,058 49,171 40,512 Deferred: Federal 12,557 31,971 11,684 State 769 109 564 Total deferred tax expense 13,326 32,080 12,248 Provision for income taxes $ 45,384 $ 81,251 $ 52,760 The provision for income taxes differs from that computed by applying the federal statutory income tax rate of 21% in 2018 and 35% in prior years, to income before provision for income taxes, as indicated in the following analysis: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Income taxes at federal statutory rate $ 47,094 $ 59,082 $ 53,915 Increase (reduction) of taxes resulting from: State income taxes, net of federal tax benefit 5,916 2,032 2,527 Non-deductible merger expenses — 586 686 Increase in cash surrender value of BOLI policies (1,261) (1,319) (896) Tax-exempt interest (2,037) (2,840) (1,956) Income tax credits (3,118) (1,951) (2,068) Dividends received deduction (5) (12) (12) Revaluation of net deferred tax asset due to tax law change (991) 26,558 — Other, net (214) (885) 564 $ 45,384 $ 81,251 $ 52,760 The components of the net deferred tax asset are as follows: December 31, (Dollars in thousands) 2018 2017 Allowance for loan losses $ 12,953 $ 11,011 Other-than-temporary impairment on securities 257 257 Share-based compensation 4,475 3,935 Pension plan and post-retirement benefits 192 607 Deferred compensation 11,841 13,048 Purchase accounting adjustments 28,659 37,078 Other real estate owned 455 838 Tax deductible goodwill — 32 Net operating loss and tax credit carryforwards 11,572 14,066 Cash flow hedge 11 54 Unrealized losses on investment securities available for sale 7,273 3,472 Other 1,665 643 Total deferred tax assets 79,353 85,041 Depreciation 7,314 5,870 Intangible assets 12,617 14,745 Net deferred loan costs 9,409 7,840 Prepaid expense 474 474 Tax deductible goodwill 388 — Mortgage servicing rights 7,608 6,818 Other 840 372 Total deferred tax liabilities 38,650 36,119 Net deferred tax assets before valuation allowance 40,703 48,922 Less, valuation allowance (3,575) (3,020) Net deferred tax assets $ 37,128 $ 45,902 The Company had federal net operating loss (“NOL”) carryforwards of $24.3 million and $30.3 million for the years ended December 31, 2018 and 2017, respectively, which expire in varying amounts through 2034. As a result of the Peoples, Savannah and Park Sterling ownership changes in 2012 and 2017, Section 382 of the Internal Revenue Code places an annual limitation of the amount of federal net operating loss carryforwards which the Company may utilize. Additionally, section 382 limits the Company’s ability to utilize certain tax deductions (realized built‑in losses or “RBIL”) due to the existence of a Net Unrealized Built‑in Loss (“NUBIL”) at the time of the change in control. The Company is allowed to carry forward any such RBIL under terms similar to those related to NOLs. Consequently, $6.0 million of the Company’s NOL carryforwards attributed to the Peoples acquisition are subject to annual limitations of $1.5 million, and $15.0 million of the Company’s NOL carryforwards attributed to the Savannah acquisition are subject to annual limitation of $2.0 million, and $3.3 million of the Company’s NOL carryforwards attributed to the Park Sterling acquisition are subject to annual limitations of $3.3 million. Additionally, the Company’s RBIL carryforwards attributed to the Park Sterling acquisition totaling $13.9 million are subject to annual limitations of $1.1 million. The Company expects all section 382 limited carryforwards to be realized within the applicable carryforward period. The Company had state net operating loss carryforwards of $101.4 million and $88.5 million for the years ended December 31, 2018 and 2017 respectively, which expire in varying amounts through 2038. There is a valuation allowance of $3.6 million that relates to the parent company’s state operating loss carryforwards for which realizability is uncertain. The change in the valuation allowance for the years ended December 31, 2018, 2017, and 2016 was immaterial. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deferred tax assets, net of the valuation allowance at December 31, 2018. As of December 31, 2018, the Company had no material unrecognized tax benefits or accrued interest and penalties. It is the Company’s policy to account for interest and penalties accrued relative to unrecognized tax benefits as a component of income tax expense. Generally, the Company’s federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2015. |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2018 | |
Other Expense | |
Other Expense | Note 12— Other Expense The following is a summary of the components of other noninterest expense: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Business development and staff related $ 9,536 $ 7,449 $ 6,210 Other loan expense 2,028 2,590 2,486 Director and shareholder expense 2,102 1,635 2,004 Armored carrier and courier expense 2,065 1,703 1,470 Property and sales tax 1,760 1,033 1,145 Low income housing tax credit partnership amortization 3,829 3,038 1,487 Other 6,272 6,272 6,529 $ 27,592 $ 23,720 $ 21,331 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Common Share | |
Earnings Per Common Share | Note 13—Earnings Per Common Share The following table sets forth the computation of basic and diluted earnings per common share: Year Ended December 31, (Dollars and shares in thousands, except for per share amounts) 2018 2017 2016 Basic earnings per common share: Net income $ 178,871 $ 87,554 $ 101,282 Weighted-average basic common shares 36,530 29,686 23,998 Basic earnings per common share $ $ $ Diluted earnings per share: Net income $ 178,871 $ 87,554 $ 101,282 Weighted-average basic common shares 36,530 29,686 23,998 Effect of dilutive securities 246 236 221 Weighted-average dilutive shares 36,776 29,922 24,219 Diluted earnings per common share $ 4.86 $ 2.93 $ 4.18 The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been antidilutive under the treasury stock method as follows: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Number of shares Range of exercise prices $ to $ $ to $ $ to $ |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 14—Accumulated Other Comprehensive Income (Loss) The changes in each component of accumulated other comprehensive income (loss), net of tax, were as follows: Unrealized Gains and Losses Gains and on Securities Losses on Benefit Available Cash Flow (Dollars in thousands) Plans for Sale Hedges Total Balance at December 31, 2015 $ (6,015) $ 2,588 $ (444) $ (3,871) Other comprehensive loss before reclassifications (749) (4,221) (34) (5,004) Amounts reclassified from accumulated other comprehensive income (loss) 569 (75) 170 664 Net comprehensive income (loss) (180) (4,296) 136 (4,340) Balance at December 31, 2016 (6,195) (1,708) (308) (8,211) Other comprehensive loss before reclassifications (365) (2,157) (13) (2,535) Amounts reclassified from accumulated other comprehensive income (loss) 562 (413) 170 319 Net comprehensive income (loss) 197 (2,570) 157 (2,216) Balance at December 31, 2017 (5,998) (4,278) (151) (10,427) Other comprehensive income (loss) before reclassifications 382 (13,479) 33 (13,064) Amounts reclassified from accumulated other comprehensive income 926 510 121 1,557 Net comprehensive income (loss) 1,308 (12,969) 154 (11,507) AOCI reclassification to retained earnings from the adoption of ASU 2018-02 (1,760) (1,147) (40) (2,947) Balance at December 31, 2018 $ (6,450) $ (18,394) $ (37) $ (24,881) The table below presents the reclassifications out of accumulated other comprehensive income, net of tax: Amount Reclassified from Accumulated (Dollars in thousands) For the Years Ended December 31, Accumulated Other Comprehensive Income (Loss) Component 2018 2017 2016 Income Statement Losses on cash flow hedges: Interest rate contracts $ 155 $ 275 $ 275 Interest expense (34) (105) (105) Provision for income taxes 121 170 170 Net income (Gains) losses on sales of available for sale securities: $ 655 $ (1,421) $ (122) Securities (gains) losses, net (145) 542 47 Provision for income taxes 510 (879) (75) Net income Other-than-temporary impairment losses on available for sale securities: $ — $ 753 $ — Other-than-temporary impairment losses — (287) — Provision for income taxes — 466 — Net income Amortization of defined benefit pension: Actuarial losses $ 1,187 $ 908 $ 920 Salaries and employee benefits (261) (346) (351) Provision for income taxes 926 562 569 Net income Total reclassifications for the period $ 1,557 $ 319 $ 664 |
Restrictions on Subsidiary Divi
Restrictions on Subsidiary Dividends, Loans, or Advances | 12 Months Ended |
Dec. 31, 2018 | |
Restrictions on Subsidiary Dividends, Loans, or Advances | |
Restrictions on Subsidiary Dividends, Loans, or Advances. | Note 15—Restrictions on Subsidiary Dividends, Loans, or Advances The Company pays cash dividends to shareholders from its assets, which are mainly provided by dividends from its banking subsidiary. However, certain restrictions exist regarding the ability of its subsidiary to transfer funds to the Company in form of cash dividends, loans or advances. The approval of the South Carolina Board of Financial Institutions (“SCBFI”) is required to pay dividends that exceeds 100% of net income in any calendar year. The Federal Reserve Board, the OCC, and the FDIC have issued policy statements which provide that bank holding companies and insured banks should generally only pay dividends out of current earnings. In the third and fourth quarters of 2018, the Bank paid special dividends to the Company totaling $66.6 million for which SCBFI approval was not required. These funds were used to repurchase Company stock on the open market totaling $68.4 million in the third and fourth quarters of 2018. In November 2017, the Bank paid a special dividend to the Company of $25.0 million for which SCBFI approval was not required. These funds were used to redeem $30.0 million in senior debt that was acquired in the Park Sterling merger. Under Federal Reserve regulations, the bank is also limited as to the amount it may lend to the Company. The maximum amount available for transfer from the bank to the Company in the form of loans or advances was approximately $245.8 million and $239.6 million at December 31, 2018 and 2017, respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Plans | |
Retirement Plans | Note 16—Retirement Plans The Company and its subsidiary have a non‑contributory defined benefit pension plan covering all employees hired on or before December 31, 2005, who have attained age 21, and who have completed one year of eligible service. The Company’s funding policy is based principally, among other considerations, on contributing an amount necessary to satisfy the Internal Revenue Service’s funding standards. Effective July 1, 2009, the Company suspended the accrual of benefits for pension plan participants under the non‑contributory defined benefit plan. The pension plan remained suspended as of December 31, 2018. During 2018, the Company made the decision to terminate the non-contributory defined benefit pension plan. The Company received approval from the IRS through a determination letter in the fourth quarter of 2018 to proceed with the termination. The plan is expected to be fully terminated and paid out by the second quarter of 2019. Participants have the option to be fully paid out in a lump sum or be paid through an annuity over time. If the participant chooses the annuity, the funds will be placed in an annuity product with a third party. The following sets forth the pension plan’s funded status and amounts recognized in the Company’s accompanying consolidated financial statements: December 31, (Dollars in thousands) 2018 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 31,500 $ 28,800 $ 28,260 Service cost 77 127 112 Interest cost 1,080 1,124 1,132 Actuarial (gain) loss (2,442) 2,665 435 Benefits paid (1,188) (1,138) (1,015) Expenses (121) (78) (124) Benefit obligation at end of year 28,906 31,500 28,800 Change in plan assets: Fair value of plan assets at beginning of year 31,387 28,216 27,444 Actual return on plan assets 467 4,387 1,911 Employer contribution — — — Benefits paid (1,188) (1,138) (1,015) Expenses (121) (78) (124) Fair value of plan assets at end of year 30,545 31,387 28,216 Funded (unfunded) status $ 1,639 $ (113) $ (584) At December 31, 2018 and 2017, the net losses recognized in accumulated other comprehensive income excluding related income tax effects were $7.9 million and $9.2 million, respectively. The components of net periodic pension cost and other amounts recognized in other comprehensive income are as follows: December 31, (Dollars in thousands) 2018 2017 2016 Interest cost $ $ 1,124 $ 1,132 Service cost 127 112 Expected return on plan assets (2,213) (2,131) Recognized net actuarial loss 751 816 Net periodic pension benefit (211) (71) Net (gain) loss 491 655 Amortization of net gain (751) (816) Total amount recognized in other comprehensive income (260) (161) Total recognized in net periodic benefit cost and other comprehensive income $ $ (471) $ (232) The amount of estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into periodic benefit cost over the next fiscal year is $483,000. The following is information as of the measurement date: December 31, (Dollars in thousands) 2018 2017 Projected benefit obligation $ 28,906 $ 31,500 Accumulated benefit obligation 28,906 31,500 Fair value of plan assets 30,545 31,387 The Company used a 4.10% and 3.50% discount rate in its weighted‑average assumptions used to determine the benefit obligation at December 31, 2018, and 2017, respectively. The rate of compensation increase was not applicable in the Company’s weighted‑average assumptions because of the plan curtailment at June 30, 2009. The weighted‑average assumptions used to determine net periodic pension cost are as follows: Year ended December 31, 2018 2017 2016 Discount rate 3.50 % 4.00 % 4.10 % Expected long-term return on plan assets 7.75 % 7.75 % 7.75 % For the years ended December 31, 2018, 2017, and 2016, the discount rate of 3.50%, 4.00%, and 4.10%, respectively, was determined by matching the projected benefit obligation cash flows of the plan to an independently derived yield curve, to arrive at the single equivalent rate. The expected rate of return for the pension plan’s assets represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In developing the expected rate of return, the Company considered long‑term compound annualized returns of historical market data as well as historical actual returns on the Company’s plan assets. Using this reference information, the Company developed forward‑looking return expectations for each asset category and a weighted average expected long‑term rate of return for a targeted portfolio allocated across these investment categories. In developing the long‑term rate of return assumption for the pension plan, the Company utilized the following long‑term rate of return and standard deviation assumptions: Rate of Standard Return Deviation Asset Class Assumption Assumption Cash Equivalents 3.00 % 0.49 % High Grade Fixed Income 5.97 % 3.20 % High Yield Fixed Income 8.20 % 8.37 % International Fixed Income 6.25 % 7.82 % Large Cap Equity 9.93 % 13.48 % Mid Cap Equity 10.91 % 15.87 % Mid/Small Cap Equity 9.76 % 17.11 % Foreign Equity 6.83 % 16.30 % The portfolio’s equity weighting is consistent with the long‑term nature of the Plan’s benefit obligation, and the expected annual return on the portfolio of 7.75%. The policy, as established by the Investment Committee of the Defined Benefit Pension Plan, seeks to maximize return within reasonable and prudent levels of risk. The overall long‑term objective of the Plan is to achieve a rate of return that exceeds the actuarially assumed rate of return. The investment policy is reviewed on a regular basis and revised when appropriate based on the legal or regulatory environment, market trends, or other fundamental factors. In determining the long‑term rate of return for the pension plan, the Company considers historical rates of return and the nature of the plan’s investments. Prior to making the decision to terminate the Plan, the Plan assets were divided among various investment classes with allowable allocation percentages as follows: Equities 55 - 65%, Fixed Income 20 - 40%, Cash Equivalents 0 - 35%. As of December 31, 2018, approximately 98% of pension plan assets were invested with Fixed Income Assets, and approximately 2% of pension plan assets were held in cash equivalents. When the decision was made to terminate the plan, the Investment Committee and the Company made the decision to move the Plan assets into less risky investments of Cash Equivalents and Fixed Income Assets and out of Equities. The difference between actual and expected returns on plan assets is accumulated and amortized over future periods and, therefore, affects the recognized expenses in such future periods. Following is a description of valuation methodologies used for assets recorded at fair value. Money Market Funds Money Market Funds are public investment vehicles valued using $1 for the Net Asset Value (the “NAV”). The money market funds are classified within level 1 of the valuation hierarchy. Broad Market Fixed Income, Domestic Equity and Foreign Equity Mutual Funds Broad Market Fixed Income, Domestic Equity and Foreign Equity mutual funds are public investment vehicles valued using the NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. The NAV is a quoted price in an active market and classified within level 1 of the valuation hierarchy. The fair values of the Company’s pension plan assets at December 31, 2018 by asset category are as follows: Quoted Prices In Active Significant Markets Other Significant Fair Value for Identical Observable Unobservable December 31, Assets Inputs Inputs (Dollars in thousands) 2018 (Level 1) (Level 2) (Level 3) Money market funds $ 574 $ 574 $ — $ — Broad market fixed income 29,971 29,971 — — Total assets $ 30,545 $ 30,545 $ — $ — As of December 31, 2017, the Plan’s domestic equity securities did not include any of the Company’s common stock. As of December 31, 2018, the Plan held no domestic equity securities. The plan made no purchases of the Company’s stock during 2018, 2017 and 2016. Estimated future benefit payments for the next ten years: (Dollars in thousands) 2019 $ 1,360 2020 1,540 2021 1,618 2022 1,640 2023 1,691 2024-2028 8,824 $ 16,673 Expenses incurred and charged against operations with regard to all of the Company’s retirement plans were as follows: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Pension $ $ (351) $ (205) Employee savings plan/ 401(k) 7,381 6,178 Supplemental executive retirement plan 1,334 134 Post-retirement benefits 251 192 $ $ 8,615 $ 6,299 The Company does not expect to contribute to the pension plan in 2019, but reserves the right to contribute between the minimum required and maximum deductible amounts as determined under applicable federal laws. The Company and its subsidiaries have a Safe Harbor plan. Under the plan, electing employees are eligible to participate after attaining age 18. Plan participants elect to contribute portions of their annual base compensation in any combination of pre‑tax deferrals or Roth post‑tax deferrals subject to the annual IRS limit. Employer contributions may be made from current or accumulated net profits. Participants may elect to contribute 1% to 50% of annual base compensation as a before tax contribution. Employees participating in the plan receive a 100% matching of their 401(k) plan contribution, up to 5% of salary. Effective January 1, 2015, employees are eligible for an additional 1% discretionary matching contribution contingent upon achievement of the Company’s annual financial goals and payable the first quarter of the following year. Employees hired on January 1, 2006 or thereafter will not participate in the defined benefit pension plan, but are eligible to participate in the employees’ savings plan. Employees can enter the savings plan on or after the first day of each month. The employee may enter into a salary deferral agreement at any time to select an alternative deferral amount or to elect not to defer in the Plan. If the employee does not elect an investment allocation, the plan administrator will select a retirement‑based portfolio according to the employee’s number of years until normal retirement age. The plan’s investment valuations are generally provided on a daily basis. |
Post-Retirement Benefits
Post-Retirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Post-Retirement Benefits | |
Post-Retirement Benefits | Note 17—Post‑Retirement Benefits At December 31, 2018, the Company and its subsidiary have two post-retirement health and life insurance benefit plans, South State Bank Retiree Medical Plan (the “retiree medical plan”) and the First Federal Retiree Welfare Plan (the “retiree welfare plan”). Retiree Medical Plan Under the retiree medical plan, post‑retirement health and life insurance benefits are provided to eligible employees, such benefits being limited to those employees of the Company eligible for early retirement under the pension plan on or before December 31, 1993, and former employees who are currently receiving benefits. The plan was unfunded at December 31, 2018, and the liability for future benefits has been recorded in the consolidated financial statements. The following sets forth the retiree medical plan’s funded status and amounts recognized in the Company’s accompanying consolidated financial statements: December 31, (Dollars in thousands) 2018 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ $ $ 422 Interest cost 13 Actuarial loss 1 Benefits paid (43) Benefit obligation at end of year 393 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 43 Benefits paid (43) Fair value of plan assets at end of year — — — Funded status $ $ $ (393) Weighted‑average assumptions used to determine benefit obligations and net periodic benefit cost are as follows: Year Ended December 31, 2018 2017 2016 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 3.80 % 3.20 % 3.50 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.20 % 3.50 % 3.30 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % Components of net periodic benefit cost and other amounts recognized in other comprehensive income are as follows: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest cost $ 10 $ 13 $ 12 Recognized net actuarial loss 6 10 9 Net periodic benefit cost 16 23 21 Net (gain) loss 2 (29) 19 Amortization of gain (10) (9) Total amount recognized in other comprehensive income (39) 10 Total recognized in net periodic benefit cost and other comprehensive income $ 12 $ (16) $ 31 The estimated net loss for the retiree medical plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year is $6,000. Assumed health care cost trend rates have a significant effect on the amounts reported for the post‑retirement benefit plan. An one-percentage point change in assumed health care cost trend rates would have the following effects at the end of 2018: One-Percentage Point (Dollars in thousands) Increase Decrease Effect on total of interest cost $ 1 $ (1) Effect on postretirement benefit obligation 16 (15) Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2019 $ 39 2020 37 2021 36 2022 34 2023 32 2024-2028 122 $ 300 The Company expects to contribute approximately $39,000 to the retiree medical plan in 2019. Retiree Welfare Plan Under the retiree welfare plan, post-retirement health and life insurance benefits are provided to eligible employees, such benefits being limited to retired First Financial Holdings, Inc. employees who are currently receiving benefits. The plan was unfunded at December 31, 2018, and the liability for future benefits has been recorded in the consolidated financial statements. The following sets forth the retiree welfare plan’s funded status and amounts recognized in the Company’s accompanying consolidated financial statements: December 31, (Dollars in thousands) 2018 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 2,392 $ 2,447 $ 2,092 Interest cost 73 81 74 Participants’ contributions — — — Actuarial loss 89 126 546 Benefits paid (280) Less: Federal subsidy on benefits paid 13 12 15 Benefit obligation at end of year 2,281 2,392 2,447 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 286 274 280 Participants’ contributions — — — Benefits paid (280) Fair value of plan assets at end of year — — — Funded status $ $ $ (2,447) Weighted‑average assumptions used to determine benefit obligations and net periodic benefit cost are as follows: Year Ended December 31, 2018 2017 2016 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 3.80 % 3.20 % 3.50 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.20 % 3.50 % 3.70 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % Components of net periodic benefit cost and other amounts recognized in other comprehensive income are as follows: Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest cost $ 73 $ 81 $ 74 Recognized net actuarial loss 154 147 95 Net periodic benefit cost 227 228 169 Net (gain) loss 89 126 546 Amortization of loss (95) Total amount recognized in other comprehensive income 451 Total recognized in net periodic benefit cost and other comprehensive income $ 162 $ 207 $ 620 The estimated net loss for the retiree welfare plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year is $160,000. Assumed health care cost trend rates have a significant effect on the amounts reported for the post‑retirement benefit plan. A one‑percentage point change in assumed health care cost trend rates would have the following effects at the end of 2018: One-Percentage Point (Dollars in thousands) Increase Decrease Effect on aggregate service and interest cost $ 5 $ (5) Effect on postretirement benefit obligation 142 (129) Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2019 $ 260 2020 251 2021 242 2022 231 2023 219 2024-2028 879 $ 2,082 The Company expects to contribute approximately $260,000 to the retiree welfare plan in 2019. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Compensation | |
Share-Based Compensation | Note 18—Share‑Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees. Compensation cost is measured as the fair value of these awards on their date of grant. A Black‑Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used as the fair value of restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period for stock option awards and as the restriction period for restricted stock awards. For awards with graded vesting, compensation cost is recognized on a straight‑line basis over the requisite service period for the entire award. The Company’s 2004 and 2012 stock incentive programs are long‑term retention programs intended to attract, retain, and provide incentives for key employees and non‑employee directors in the form of incentive and non‑qualified stock options and restricted stock. Stock Options With the exception of non‑qualified stock options granted to directors under the 2004 and 2012 plans, which in some cases may be exercised at any time prior to expiration and in some other cases may be exercised at intervals less than a year following the grant date, incentive stock options granted under the plans may not be exercised in whole or in part within a year following the date of the grant, as these incentive stock options become exercisable in 25% increments pro ratably over the four-year period following the grant date. The options are granted at an exercise price at least equal to the fair value of the common stock at the date of grant and expire ten years from the date of grant. No options were granted under the 2004 plan after January 26, 2012, and the 2004 plan is closed other than for any options still unexercised and outstanding. The 2012 plan is the only plan from which new share‑based compensation grants may be issued. It is the Company’s policy to grant options out of the 1,684,000 shares registered under the 2012 plan, of which no more than 817,476 shares can be granted as restricted stock or restricted stock units. Each share issued with respect to restricted stock or restricted stock units granted under the 2012 Plan reduces the number of shares available for grant under the plan by approximately two shares. Activity in the Company’s stock option plans is summarized in the following table. All information has been retroactively adjusted for stock dividends and stock splits. Year Ended December 31, 2018 2017 2016 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at January 1, 2018 218,689 $ 52.75 246,535 $ 42.53 285,405 $ 38.85 Granted 34,407 91.05 33,634 91.23 25,682 63.79 Exercised (33,424) 30.88 (59,480) 33.03 (63,527) 34.70 Forfeited (5,806) 91.35 (2,000) 26.01 (1,025) 35.20 Outstanding at December 31, 2018 213,866 61.28 218,689 52.75 246,535 42.53 Exercisable at December 31, 2018 140,115 49.41 148,702 41.62 185,758 36.33 Weighted-average fair value of options granted during the year $ 28.01 $ 35.42 $ 25.19 The aggregate intrinsic value of 213,866, 218,689, and 246,535 stock options outstanding at December 31, 2018, 2017, and 2016 was $1.9 million, $7.7 million, and $11.1 million, respectively. The aggregate intrinsic value of 140,115, 148,702, and 185,758 stock options exercisable at December 31, 2018, 2017, and 2016 was $1.9 million, $6.8 million, and $9.5 million, respectively. The aggregate intrinsic value of 33,424, 59,480, and 63,527 stock options exercised for the years ended December 31, 2018, 2017, and 2016 was $2.0 million, $3.3 million, and $2.5 million, respectively. Information pertaining to options outstanding at December 31, 2018, is as follows: Options Outstanding Options Exercisable Weighted Weighted Average Average Remaining Weighted Weighted Remaining Range of Number Contractual Average Number Average Contractual Exercise Prices Outstanding Life Exercise Price Outstanding Exercise Price Life $ 26.01 - $ 40.00 52,515 2.2 years $ 31.88 52,508 $ 31.88 $ 40.01 - $ 55.00 24,507 3.9 years $ 41.42 24,507 $ 41.42 $ 55.01 - $ 70.00 74,609 6.1 years $ 63.61 55,423 $ 63.80 $ 70.01 - $ 85.00 — — years $ — — $ — $ 85.01 - $ 91.35 62,235 8.6 years $ 91.12 7,677 $ 90.84 213,866 5.6 years $ 61.28 140,115 $ 49.41 4.3 years The fair value of options is estimated at the date of grant using the Black‑Scholes option pricing model and expensed over the options’ vesting periods. The following weighted‑average assumptions were used in valuing options issued: Year ended December 31, 2018 2017 2016 Dividend yield % % % Expected life years years years Expected volatility % % % Risk-free interest rate % % % As of December 31, 2018, there was $1.4 million of total unrecognized compensation cost related to non‑vested stock option grants under the plans. The cost is expected to be recognized over a weighted‑average period of 1.11 years as of December 31, 2018. The total fair value of shares vested during the years ended December 31, 2018, 2017 and 2016 was approximately $700,000, $578,000 and $455,000, respectively. Compensation expense of $751,000, $784,000, and $545,000 was recorded in 2018, 2017, and 2016, respectively. Restricted Stock The Company routinely also grants shares of restricted stock to key employees and non‑employee directors. These awards help align the interests of these employees and directors with the interests of the shareholders of the Company by providing economic value directly related to increases in the value of the Company’s stock. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants. Grants to employees typically cliff vest after four years. Grants to non‑employee directors typically vest within a 12-month period. All restricted stock agreements are conditioned upon continued employment. Termination of employment prior to a vesting date, as described below, would terminate any interest in non‑vested shares. Prior to vesting of the shares, as long as employed by the Company, the key employees and non‑employee directors will have the right to vote such shares and to receive dividends paid with respect to such shares. All restricted shares will fully vest in the event of change in control of the Company or upon the death of the recipient. Non‑vested restricted stock for the year ended December 31, 2018 is summarized in the following table. All information has been retroactively adjusted for stock dividends and stock splits. Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2018 142,692 $ 59.66 Granted 7,836 87.37 Vested (42,342) 55.96 Forfeited (3,767) 81.29 Nonvested at December 31, 2018 104,419 62.45 The Company granted 7,836, 26,053, and 44,301 shares for the years ended December 31, 2018, 2017, and 2016, respectively. The weighted‑average‑ grant‑date fair value of restricted shares granted in 2018, 2017, and 2016 was $87.37, $89.11, and $67.51, respectively. Compensation expense of $2.5 million, $2.5 million, and $2.7 million was recorded in 2018, 2017, and 2016, respectively. The vesting schedule of these shares as of December 31, 2018 is as follows: Shares 2019 37,574 2020 47,373 2021 3,905 2022 4,174 2023 3,405 Thereafter 7,988 104,419 As of December 31, 2018, there was $2.4 million of total unrecognized compensation cost related to non‑vested restricted stock granted under the plans. The cost is expected to be recognized over a weighted‑average period of 1.62 years as of December 31, 2018. The total fair value of shares vested during the years ended December 31, 2018, 2017 and 2016 was approximately $2.5 million, $3.1 million, and $3.2 million, respectively. Restricted Stock Units The Company from time‑to‑time also grants performance RSUs to key employees. These awards help align the interests of these employees with the interests of the shareholders of the Company by providing economic value directly related to the performance of the Company. Some performance RSU grants contain a three-year performance period while others contain a one-year performance period and a time vested requirement (generally four years from grant date). The Company communicates threshold, target, and maximum performance RSU awards and performance targets to the applicable key employees at the beginning of a performance period. Dividends are not paid in respect to the awards during the performance period. The value of the RSUs awarded is established as the fair market value of the stock at the time of the grant. The Company recognizes expenses on a straight‑line basis typically over the performance and vesting periods based upon the probable performance target that will be met. For the year ended December 31, 2018, the Company accrued for 96.7% of the RSUs granted, based on Management’s expectations of performance. Nonvested RSUs for the year ended December 31, 2018 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2018 140,036 $ 78.49 Granted 113,270 86.12 Vested (45,775) 66.34 Forfeited (3,778) 91.58 LTIP Adjustment (3,213) 89.40 Nonvested at December 31, 2018 200,540 85.15 The Company granted 113,270, 77,301 and 68,842 shares for the year ended December 31, 2018, 2017 and 2016, respectively. The weighted‑average grant‑date fair value of restricted stock units granted in 2018 was $86.12. Compensation expense of $5.5 million, $3.6 million, and $2.9 million was recorded in 2018, 2017 and 2016, respectively. As of December 31, 2018, there was $8.5 million of total unrecognized compensation cost related to nonvested RSUs granted under the plan. This cost is expected to be recognized over a weighted‑average period of 2.05 years as of December 31, 2018. The total fair value of restricted stock units that vested during the years ended December 31, 2018, 2017 and 2016 was approximately $5.7 million, $5.0 million, and $4.3 million, respectively. Employee Stock Purchase Plan The Company has registered 363,825 shares of common stock in connection with the establishment of an Employee Stock Purchase Plan. The plan, which expires June 30, 2022, is available to all employees who have attained age 21 and completed six months of service. The Company currently has more than 71,000 shares available for issuances under the plan. The price at which common stock may be purchased for each quarterly option period is the lesser of 95% of the common stock’s fair value on either the first or last day of the quarter. The 2002 Employee Stock Purchase Plan permits eligible employees to purchase Company stock at a discounted price. Beginning July 1, 2009, the 15% discount was reduced to 5%. The Company recognized $82,000, $43,000 and $48,000 in share‑based compensation expense for the years ended December 31, 2018, 2017 and 2016, respectively. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Dec. 31, 2018 | |
Stock Repurchase Program | |
Stock Repurchase Program | Note 19—Stock Repurchase Program In February 2004, the Company’s Board of Directors authorized a repurchase program to acquire up to 250,000 shares of its outstanding common stock. In March 2017, the Board of Directors approved and reset the number of shares available to be repurchased under the 2004 stock repurchase program to 1,000,000. Under the announced stock repurchase program, the Company repurchased 1,000,000 shares at cost of $68.4 million during the year ended December 31, 2018 and no shares during the year ended December 31, 2017. The Company repurchased 32,900 shares at a cost of $2.1 million during the year ended December 31, 2016. In January 2019, the Board of Directors approved a new program to repurchase up to 1,000,000 of our common shares. The Company is not obligated to repurchase any additional shares under the 2019 Stock Repurchase Program, and any repurchases under the 2019 Stock Repurchase Program after December 23, 2019 would require additional Federal Reserve approval. Under other arrangements where directors or officers surrendered currently owned shares to the Company to acquire proceeds for exercising stock options or paying taxes on currently vesting restricted stock, the Company repurchased 25,251, 61,125, and 55,537 shares at a cost of $2.2 million, $5.5 million, and $3.9 million in 2018, 2017, and 2016, respectively. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Lease Commitments | |
Lease Commitments | Note 20—Lease Commitments The Company’s subsidiary was obligated at December 31, 2018, under certain noncancelable operating leases extending to the year 2038 pertaining to banking premises and equipment. Some of the leases provide for the payment of property taxes and insurance and contain various renewal options. The exercise of renewal options is, of course, dependent upon future events. Accordingly, the following summary does not reflect possible additional payments due if renewal options are exercised. Future minimum lease payments, by year and in the aggregate, under noncancelable operating leases with initial or remaining terms in excess of one year are as follows: (Dollars in thousands) Year Ended December 31, 2019 $ 7,497 2020 7,580 2021 7,423 2022 6,823 2023 6,123 Thereafter 16,510 $ 51,956 Total lease expense for the years ended December 31, 2018, 2017, and 2016 was $7.9 million, $ 6.2 million, and $5.7 million, respectively. |
Contingent Liabilities
Contingent Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Contingent Liabilities | |
Contingent Liabilities | Note 21—Contingent Liabilities The Company has been named as defendant in various legal actions, arising from its normal business activities, in which damages in various amounts are claimed. The Company is also exposed to litigation risk related to the prior business activities of banks acquired through whole bank acquisitions as well as banks from which assets were acquired and liabilities assumed in FDIC‑assisted transactions. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, any such liability will not have a material effect on the Company’s consolidated financial statements. The Company and its subsidiary are involved at times in certain litigation arising in the normal course of business. In the opinion of management as of December 31, 2018, there is no pending or threatened litigation that will have a material effect on the Company’s consolidated financial position or results of operations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions | |
Related Party Transactions | Note 22—Related Party Transactions During 2018 and 2017, the Company’s banking subsidiary had loan and deposit relationships with certain related parties, principally directors and executive officers, their immediate families and their business interests. All of these relationships were in the ordinary course of business at rates and terms substantially consistent with similar transactions with unrelated parties. Loans outstanding to this group (including immediate families and business interests) totaled $23.5 million and $7.8 million at December 31, 2018 and 2017 respectively. During 2018, $23.3 million of new loans were made to this group while repayments of $19.9 million were received during the year. There were also additions to related party loans of $12.3 million due to the addition of new directors and executive officers in 2018. Related party deposits totaled approximately $17.7 million and $20.8 million at December 31, 2018 and 2017, respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | Note 23—Financial Instruments with Off‑Balance Sheet Risk The Company’s subsidiary is a party to credit related financial instruments with off‑balance sheet risks in the normal course of business to meet the financing needs of their customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. Such commitments involve, to varying degrees, elements of credit, interest rate, or liquidity risk in excess of the amounts recognized in the consolidated balance sheets. The contract amounts of these instruments express the extent of involvement the subsidiary has in particular classes of financial instruments. The subsidiary’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, standby letters of credit, and financial guarantees is represented by the contractual amount of those instruments. The subsidiary uses the same credit policies in making commitments and conditional obligations as it does for on‑balance sheet instruments. At December 31, 2018 and 2017, the following financial instruments, whose contract amounts represent credit risk, were outstanding: December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit $ 2,748,901 $ 2,905,213 Standby letters of credit and financial guarantees 32,725 30,444 $ 2,781,626 $ 2,935,657 Commitments to Extend Credit Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. The Bank evaluates each customer’s credit worthiness on a case‑by‑case basis. The amount of collateral obtained, if deemed necessary by the bank upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and personal guarantees. Unfunded commitments under commercial lines‑of‑credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines‑of‑credit are uncollateralized and usually do not contain a specified maturity date and may not be drawn to the extent to which the banking subsidiary is committed. Standby Letters of Credit and Financial Guarantees Standby letters of credit and financial guarantees are conditional commitments issued by the banking subsidiary to guarantee the performance of a customer to a third party. Those letters of credit and guarantees are primarily issued to support public and private borrowing arrangements. Essentially, all standby letters of credit have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the customer. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value | |
Fair Value | Note 24—Fair Value FASB ASC 820, Fair Value Measurements and Disclosures , defines fair value, establishes a framework for measuring fair value under accounting principles generally accepted in the United States, and enhances disclosures about fair value measurements. FASB ASC 820 clarifies that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available for sale securities and derivative contracts are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as loans held for sale, impaired loans, OREO, and certain other assets. These nonrecurring fair value adjustments typically involve application of lower of cost or market accounting or write‑downs of individual assets. FASB ASC 820 establishes a three‑tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: Level 1 Observable inputs such as quoted prices in active markets; Level 2 Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and Level 3 Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The following is a description of valuation methodologies used for assets recorded at fair value. Investment Securities Securities available for sale are valued on a recurring basis at quoted market prices where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable securities. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange and The NASDAQ Stock Market, or U.S. Treasury securities that are traded by dealers or brokers in active over‑the‑counter markets and money market funds. Level 2 securities include mortgage‑backed securities and debentures issued by government sponsored entities, municipal bonds and corporate debt securities. Securities held to maturity are valued at quoted market prices or dealer quotes similar to securities available for sale. The carrying value of Federal Home Loan Bank stock approximates fair value based on the redemption provisions. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at the fair market value. The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics. As such, the fair value adjustments for mortgage loans held for sale are recurring Level 2. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an allowance for loan losses may be established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using estimated fair value methodologies. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, and liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At December 31, 2018, substantially all of the impaired loans were evaluated based on the fair value of the collateral because such loans were considered collateral dependent. Impaired loans, where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company considers the impaired loan as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company considers the impaired loan as nonrecurring Level 3. Other Real Estate Owned (“OREO”) Typically OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is reported at fair value, determined on the basis of current appraisals, comparable sales, and other estimates of value obtained principally from independent sources, adjusted for estimated selling costs (Level 2). However, OREO is considered Level 3 in the fair value hierarchy because management has qualitatively applied a discount due to the size, supply of inventory, and the incremental discounts applied to the appraisals. Management also considers other factors, including changes in absorption rates, length of time the property has been on the market, and anticipated sales values, which have resulted in adjustments to the collateral value estimates indicated in certain appraisals. At the time of foreclosure, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Gains or losses on sale and generally any subsequent adjustments to the value are recorded as a component of OREO expense. Derivative Financial Instruments Fair value is estimated using pricing models of derivatives with similar characteristics or discounted cash flow models where future floating cash flows are projected and discounted back; and accordingly, these derivatives are classified within Level 2 of the fair value hierarchy. See Note 27—Derivative Financial Instruments for additional information. Mortgage servicing rights (“MSRs”) The estimated fair value of MSRs is obtained through an independent derivatives dealer analysis of future cash flows. The evaluation utilizes assumptions market participants would use in determining fair value including market discount rates, prepayment speeds, servicing income, servicing costs, default rates and other market driven data, as well as the market’s perception of future interest rate movements. MSRs are classified as Level 3. Assets and Liabilities Recorded at Fair Value on a Recurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis. Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018: Assets Derivative financial instruments $ 5,090 $ — $ 5,090 $ — Loans held for sale 22,925 — 22,925 — Securities available for sale: Government-sponsored entities debt 48,251 — 48,251 — State and municipal obligations 200,768 — 200,768 — Mortgage-backed securities 1,268,048 — 1,268,048 — Corporate securities — — — — Total securities available for sale 1,517,067 — 1,517,067 — Mortgage servicing rights 34,727 — — 34,727 $ 1,579,809 $ — $ 1,545,082 $ 34,727 Liabilities Derivative financial instruments $ 4,421 $ — $ 4,421 $ — December 31, 2017: Assets Derivative financial instruments $ 3,306 $ — $ 3,306 $ — Loans held for sale 70,890 — 70,890 — Securities available for sale: Government-sponsored entities debt 85,509 — 85,509 — State and municipal obligations 220,437 — 220,437 — Mortgage-backed securities 1,340,687 — 1,340,687 — Corporate securities 1,560 — 1,560 — Total securities available for sale 1,648,193 — 1,648,193 — Mortgage servicing rights 31,119 — — 31,119 $ 1,753,508 $ — $ 1,722,389 $ 31,119 Liabilities Derivative financial instruments $ 3,248 $ — $ 3,248 $ — There were no financial instruments transferred between Level 1 and Level 2 of the valuation hierarchy for the years ended December 31, 2018, and 2017. Changes in Level 3 Fair Value Measurements When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses below include changes in fair value due in part to observable factors that are part of the valuation methodology. A reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis for the years ended December 31, 2018 and 2017 is as follows: (Dollars in thousands) Assets Liabilities Fair value, January 1, 2018 $ 31,119 $ — Servicing assets that resulted from transfers of financial assets 5,962 — Changes in fair value due to valuation inputs or assumptions 1,861 — Changes in fair value due to decay (4,215) — Fair value , December 31, 2018 $ 34,727 $ — Fair value, January 1, 2017 $ 29,037 $ — Servicing assets that resulted from transfers of financial assets 6,439 — Changes in fair value due to valuation inputs or assumptions (595) — Changes in fair value due to decay (3,762) — Fair value, December 31, 2017 $ 31,119 $ — There were no unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at December 31, 2018 or 2017. See Note 28 – Loan Servicing, Mortgage Obligation, and Loans Held for Sale for information about recurring Level 3 fair value measurements of mortgage servicing rights. Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis The tables below present the recorded amount of assets and liabilities measured at fair value on a nonrecurring basis: Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018: OREO $ 11,410 $ — $ — $ 11,410 Non-acquired impaired loans 13,164 — — 13,164 December 31, 2017: OREO $ 11,203 $ — $ — $ 11,203 Non-acquired impaired loans 10,495 — — 10,495 Quantitative Information about Level 3 Fair Value Measurements Weighted Average December 31, December 31, Valuation Technique Unobservable Input 2018 2017 Nonrecurring measurements: Non-acquired impaired loans Discounted appraisals Collateral discounts 3 % 3 % OREO Discounted appraisals Collateral discounts and estimated costs to sell 23 % 21 % Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those models are significantly affected by the assumptions used, including the discount rates and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The use of different methodologies may have a material effect on the estimated fair value amounts. The fair value estimates presented herein are based on pertinent information available to management as of December 31, 2018 and 2017. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Cash Equivalents —The carrying amount is a reasonable estimate of fair value. Investment Securities —Securities held to maturity are valued at quoted market prices or dealer quotes. The carrying value of FHLB stock approximates fair value based on the redemption provisions. The carrying value of the Company’s investment in unconsolidated subsidiaries approximates fair value. See Note 3-Investment Securities for additional information, as well as page F-71 regarding fair value Loans held for sale — The fair values disclosed for loans held for sale are based on commitments from investors for loans with similar characteristics. Loans — ASU 2016-01 - Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities became effective for the Company on January 1, 2018. This accounting standard requires the company to calculate the fair value of our loans for disclosure purposes based on an estimated exit price. In previous periods we have calculated fair value using only discounted cash flows on fixed rate loans. Therefore, the fair value for loans for December 31, 2018 will be calculated using a different method than that used at December 31, 2017. With ASU 2016-01, to estimate an exit price, all loans (fixed and variable) are being valued with a discounted cash flow analyses for loans that includes the Company’s estimate of future credit losses expected to be incurred over the life of the loans. Fair values for certain mortgage loans (e.g., one-to-four family residential) and other consumer loans are estimated using discounted cash flow analyses based on the Company’s current rates offered for new loans of the same type, structure and credit quality. Fair values for other loans (e.g., commercial real estate and investment property mortgage loans, commercial and industrial loans) are estimated using discounted cash flow analyses, using interest rates currently being offered by the Company for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using a discounted cash flow analyses. For previous periods, variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Also, for all other loans where a discounted cash flow analyses was used, there was no estimate of future credit losses expected to be incurred over the life of the loans included in the valuation. Deposit Liabilities —The fair values disclosed for demand deposits (e.g., interest and non‑interest bearing checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). The carrying amounts of variable‑rate, fixed‑term money market accounts, and certificates of deposit approximate their fair values at the reporting date. Fair values for fixed‑rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits. Federal Funds Purchased and Securities Sold Under Agreements to Repurchase —The carrying amount of federal funds purchased, borrowings under repurchase agreements, and other short‑term borrowings maturing within ninety days approximate their fair values. Other Borrowings —The fair value of other borrowings is estimated using discounted cash flow analysis on the Company’s current incremental borrowing rates for similar types of instruments. Accrued Interest —The carrying amounts of accrued interest approximate fair value. Derivative Financial Instruments —The fair value of derivative financial instruments (including interest rate swaps) is estimated using pricing models of derivatives with similar characteristics or discounted cash flow models where future floating cash flows are projected and discounted back . Commitments to Extend Credit, Standby Letters of Credit and Financial Guarantees —The fair values of commitments to extend credit are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed‑rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of guarantees and letters of credit are based on fees currently charged for similar agreements or on the estimated costs to terminate them or otherwise settle the obligations with the counterparties at the reporting date. The estimated fair value, and related carrying amount, of the Company’s financial instruments are as follows: Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash and cash equivalents $ 408,983 $ 408,983 $ 408,983 $ — $ — Investment securities 1,542,671 1,542,671 25,604 1,517,067 — Loans held for sale 22,925 22,925 — 22,925 — Loans, net of allowance for loan losses (1) 10,962,037 10,613,571 — — 10,613,571 Accrued interest receivable 35,997 35,997 — 6,908 29,089 Mortgage servicing rights 34,727 34,727 — — 34,727 Interest rate swap - non-designated hedge 3,824 3,824 — 3,824 — Other derivative financial instruments (mortgage banking related) 1,267 1,267 — 1,267 — Financial liabilities: Deposits 11,646,933 10,561,394 — 10,561,394 — Federal funds purchased and securities sold under agreements to repurchase 270,649 270,649 — 270,649 — Other borrowings 266,084 269,134 — 269,134 — Accrued interest payable 4,719 4,719 — 4,719 — Interest rate swap - non-designated hedge 4,373 4,373 — 4,373 — Interest rate swap - cash flow hedge 48 48 — 48 — Off balance sheet financial instruments: Commitments to extend credit — (88,424) — (88,424) — December 31, 2017 Financial assets: Cash and cash equivalents $ 377,627 $ 377,627 $ 377,627 $ — $ — Investment securities 1,673,769 1,673,796 23,047 1,650,749 — Loans held for sale 70,890 70,890 — 70,890 — Loans, net of allowance for loan losses (1) 10,575,417 10,724,264 — — 10,724,264 Accrued interest receivable 32,727 32,727 — 7,051 25,676 Mortgage servicing rights 31,119 31,119 — — 31,119 Interest rate swap - non-designated hedge 2,367 2,367 — 2,367 — Other derivative financial instruments (mortgage banking related) 939 939 — 939 — Financial liabilities: Deposits 11,532,766 10,796,380 — 10,796,380 — Federal funds purchased and securities sold under agreements to repurchase 286,857 286,857 — 286,857 — Other borrowings 216,385 219,421 — 219,421 — Accrued interest payable 2,789 2,789 — 2,789 — Interest rate swap - non-designated hedge 2,750 2,750 — 2,750 — Interest rate swap - cash flow hedge — — Other derivative financial instruments (mortgage banking related) 252 252 — 252 — Off balance sheet financial instruments: Commitments to extend credit — 41,319 — 41,319 — (1) - Loans, net of allowance for loan losses is being valued using a different method at December 31, 2018 from December 31, 2017. See page F-74 for explanation of change in method. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Capital Ratios | |
Regulatory Matters | Note 25—Regulatory Matters The Company is subject to regulations with respect to certain risk-based capital ratios. These risk-based capital ratios measure the relationship of capital to a combination of balance sheet and off-balance sheet risks. The values of both balance sheet and off-balance sheet items are adjusted based on the rules to reflect categorical credit risk. In addition to the risk-based capital ratios, the regulatory agencies have also established a leverage ratio for assessing capital adequacy. The leverage ratio is equal to Tier 1 capital divided by total consolidated on-balance sheet assets (minus amounts deducted from Tier 1 capital). The leverage ratio does not involve assigning risk weights to assets. In July 2013, the Federal Reserve announced its approval of a final rule to implement the regulatory capital reforms developed by the Basel Committee on Banking Supervision (“Basel III”), among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The new rules became effective January 1, 2015, subject to a phase-in period for certain aspects of the new rules. As applied to the Company and the Bank, the new rules include a new minimum ratio of common equity Tier 1 capital ("CET1") to risk-weighted assets of 4.5%. The new rules also raise the minimum required ratio of Tier 1 capital to risk-weighted assets from 4% to 6%. The minimum required leverage ratio under the new rules is 4%. The minimum required total capital to risk-weighted assets ratio remains at 8% under the new rules. In order to avoid restrictions on capital distributions and discretionary bonus payments to executives, under the new rules a covered banking organization will also be required to maintain a “capital conservation buffer” in addition to its minimum risk-based capital requirements. This buffer will be required to consist solely of common equity Tier 1, and the buffer will apply to all three risk-based measurements (CET1, Tier 1 capital and total capital). The capital conservation buffer will be phased in incrementally over time, beginning January 1, 2016 and becoming fully effective on January 1, 2019, and will ultimately consist of an additional amount of Tier 1 common equity equal to 2.5% of risk-weighted assets. The Bank is also subject to the regulatory framework for prompt corrective action, which identifies five capital categories for insured depository institutions (well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized) and is based on specified thresholds for each of the three risk-based regulatory capital ratios (CET1, Tier 1 capital and total capital) and for the leverage ratio. The following table presents actual and required capital ratios as of December 31, 2018 for the Company and the Bank under the Basel III capital rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2018 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required for the Bank to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required to be Required - Basel III Required - Basel III Considered Well Actual Phase-In Schedule Fully Phased In Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2018 Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,335,826 12.05 % $ 706,981 6.38 % $ 776,293 7.00 % $ 720,844 6.50 % South State Bank (the Bank) 1,427,764 12.87 % 707,039 6.38 % 776,356 7.00 % 720,902 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,447,428 13.05 % 873,330 7.88 % 942,642 8.50 % 887,192 8.00 % South State Bank (the Bank) 1,427,764 12.87 % 873,401 7.88 % 942,718 8.50 % 887,264 8.00 % Total capital to risk-weighted assets: Consolidated 1,503,561 13.56 % 1,095,128 9.88 % 1,164,440 10.50 % 1,108,990 10.00 % South State Bank (the Bank) 1,483,897 13.38 % 1,095,217 9.88 % 1,164,534 10.50 % 1,109,080 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,447,428 10.65 % 543,506 4.00 % 543,506 4.00 % 679,383 5.00 % South State Bank (the Bank) 1,427,764 10.51 % 543,387 4.00 % 543,387 4.00 % 679,234 5.00 % December 31, 2017: Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,273,547 11.59 % $ 631,811 5.75 % $ 769,162 7.00 % $ 714,221 6.50 % South State Bank (the Bank) 1,360,603 12.38 % 631,741 5.75 % 769,077 7.00 % 714,143 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,384,433 12.60 % 796,632 7.25 % 933,982 8.50 % 879,042 8.00 % South State Bank (the Bank) 1,360,603 12.38 % 796,544 7.25 % 933,879 8.50 % 878,945 8.00 % Total capital to risk-weighted assets: Consolidated 1,432,843 13.04 % 1,016,392 9.25 % 1,153,742 10.50 % 1,098,802 10.00 % South State Bank (the Bank) 1,409,014 12.82 % 1,016,280 9.25 % 1,153,615 10.50 % 1,098,681 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,384,433 10.36 % 534,460 4.00 % 534,460 4.00 % 668,075 5.00 % South State Bank (the Bank) 1,360,603 10.18 % 534,390 4.00 % 534,390 4.00 % 667,987 5.00 % As of December 31, 2018 and 2017, the capital ratios of the Company and the Bank were well in excess of the minimum regulatory requirements and exceeded the thresholds for the “well capitalized” regulatory classification. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Statements of Parent Company | |
Condensed Financial Statements of Parent Company | Note 26—Condensed Financial Statements of Parent Company Financial information pertaining only to South State Corporation is as follows: Condensed Balance Sheets December 31, (Dollars in thousands) 2018 2017 ASSETS Cash $ $ 25,879 Investment in subsidiary 2,399,744 Other assets 1,111 Total assets $ $ 2,426,734 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities $ $ 117,813 Shareholders’ equity 2,308,921 Total liabilities and shareholders’ equity $ $ 2,426,734 Condensed Statements of Income Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Income: Dividends from subsidiary $ $ 63,703 $ 36,328 Operating income 580 177 Total income 64,283 36,505 Operating expenses 15,482 12,688 Income before income tax benefit and equity in undistributed earnings of subsidiaries 48,801 23,817 Applicable income tax benefit 5,053 4,270 Equity in undistributed earnings of subsidiary (excess distribution) 33,700 73,195 Net income available to common shareholders $ $ 87,554 $ 101,282 Condensed Statements of Cash Flows Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ $ 87,554 $ 101,282 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 666 222 Share-based compensation 6,934 6,220 Gain on sale of securities available for sale — (486) (122) Decrease (increase) in other assets (1,564) 26 (Decrease) increase in other liabilities (6,341) 3,750 Undistributed earnings of subsidiary (33,700) (73,195) Net cash provided by operating activities 53,063 38,183 Cash flows from investing activities: Proceeds from sales and calls of other investment securities — 687 137 Net cash inflow from acquisitions — 15,468 — Net cash provided by investing activities — 16,155 137 Cash flows from financing activities: Repayment of other borrowings — (30,000) — Common stock issuance 1,056 925 Common stock repurchased (5,512) (5,981) Dividends paid on common stock (38,623) (29,285) Stock options exercised 1,965 2,204 Net cash used in financing activities (71,114) (32,137) Net increase (decrease) in cash and cash equivalents (1,896) 6,183 Cash and cash equivalents at beginning of period 27,775 21,592 Cash and cash equivalents at end of period $ $ 25,879 $ 27,775 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 27—Derivative Financial Instruments The Company uses certain derivative instruments to meet the needs of its customers as well as to manage the interest rate risk associated with certain transactions. The following table summarizes the derivative financial instruments utilized by the Company: December 31, 2018 December 31, 2017 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Cash flow hedges of interest rate risk: Pay fixed rate swap with counterparty Other Liabilities $ 8,000 $ — $ 48 $ 8,000 $ — $ 246 Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets $ 2,824 $ — $ 51 $ 2,824 $ — $ 92 Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities $ 368,513 $ 3,105 $ 4,193 $ 275,736 $ 1,899 $ 2,658 Matched interest rate swaps with counterparty Other Assets and Other Liabilities $ 368,513 $ 718 $ 129 $ 275,736 $ 468 $ — Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets $ 94,500 $ 1,184 $ — $ 94,000 $ — $ 252 Forward sales commitments used to hedge mortgage pipeline Other Assets $ 54,533 $ 83 $ — $ 89,317 939 $ — Total derivatives $ 896,883 $ 5,090 $ 4,421 $ 745,613 $ 3,306 $ 3,248 Cash Flow Hedges of Interest Rate Risk The Company is exposed to interest rate risk in the course of its business operations and manages a portion of this risk through the use of derivative financial instruments, in the form of interest rate swaps. The Company accounts for its interest rate swap that is classified as a cash flow hedge in accordance with FASB ASC 815, Derivatives and Hedging , which requires that all derivatives be recognized as assets or liabilities on the balance sheet at fair value. For more information regarding the fair value of the Company’s derivative financial instruments, see Note 24 to these financial statements. The Company utilizes the interest rate swap agreement to essentially convert a portion of its variable‑rate debt to a fixed rate (cash flow hedge). For derivatives designated as hedging exposure to variable cash flows of a forecasted transaction (cash flow hedge), the effective portion of the derivative’s gain or loss is initially reported as a component of other comprehensive income and subsequently reclassified into earnings when the forecasted transaction affects earnings or when the hedge is terminated. The ineffective portion of the gain or loss is reported in earnings immediately. For derivatives that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately. When applying hedge accounting for derivatives, the Company establishes a method for assessing the effectiveness of the hedging derivative and a measurement approach for determining the ineffective aspect of the hedge upon the inception of the hedge. During 2009, the Company entered into a forward starting interest rate swap agreement with a notional amount of $8.0 million to manage interest rate risk due to periodic rate resets on its junior subordinated debt issued by SCBT Capital Trust II, an unconsolidated subsidiary of the Company established for the purpose of issuing trust preferred securities. The Company hedges the variable rate cash flows of subordinated debt against future interest rate increases by using an interest rate swap to effectively fix the rate on the debt beginning on June 15, 2010, at which time the debt contractually converted from a fixed interest rate to a variable interest rate. This hedge expires on June 15, 2019. The notional amount on which the interest payments are based will not be exchanged. This derivative contract calls for the Company to pay a fixed rate of 4.06% on $8.0 million notional amount and receive a variable rate of three-month LIBOR on the $8.0 million notional amount. The Company recognized an after‑tax unrealized gain on its cash flow hedge in other comprehensive income for the year ended December 31, 2018 of $154,000, compared to a $156,000 gain for the year ended December 31, 2017. The Company recognized a $48,000 and a $246,000 cash flow hedge liability in other liabilities on the balance sheet at December 31, 2018 and 2017, respectively. There was no ineffectiveness in the cash flow hedge during the years ended December 31, 2018 and 2017. Credit risk related to the derivative arises when amounts receivable from the counterparty (derivative dealer) exceed those payable. The Company controls the risk of loss by only transacting with derivative dealers that are national market makers whose credit ratings are strong. Each party to the interest rate swap is required to provide collateral in the form of cash or securities to the counterparty when the counterparty’s exposure to a mark‑to‑market replacement value exceeds certain negotiated limits. These limits are typically based on current credit ratings and vary with ratings changes. As of December 31, 2018 and 2017, the Company provided $300,000 in collateral, which is included in cash and cash equivalents on the balance sheet as interest‑bearing deposits with banks. Also, the Company has a netting agreement with the counterparty. Balance Sheet Fair Value Hedge The Company maintains one loan swap, with an aggregate notional amount of $2.8 million at December 31, 2018, accounted for as a fair value hedge in accordance with ASC 815, Derivatives and Hedgin g. This derivative protects the company from interest rate risk caused by changes in the LIBOR curve in relation to a certain designated fixed rate loan. The derivative converts the fixed rate loan to a floating rate. Settlement occurs in any given period where there is a difference in the stated fixed rate and variable rate. The fair value of this hedge is recorded in other assets or in other liabilities. All changes in fair value are recorded through earnings as noninterest income. There was no gain or loss recorded on this derivative in 2018 or 2017. Non-designated Hedges of Interest Rate Risk Customer Swaps The Company maintains interest rate swap contracts with customers that are classified as non-designated hedges and are not speculative in nature. These agreements are designed to convert customer’s variable rate loans with the Company to fixed rate. These interest rate swaps are executed with loan customers to facilitate a respective risk management strategy and allow the customer to pay a fixed rate of interest to the Company. These interest rate swaps are simultaneously hedged by executing offsetting interest rate swaps with unrelated market counterparties to minimize the net risk exposure to the Company resulting from the transactions and allow the Company to receive a variable rate of interest. The interest rate swaps pay and receive interest based on a floating rate based on one month LIBOR plus credit spread, with payments being calculated on the notional amount. The interest rate swaps are settled monthly with varying maturities. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of December 31, 2018 and 2017, the interest rate swaps had an aggregate notional amount of approximately $737.0 million and $551.5 million, respectively. At December 31, 2018, the fair value of the interest rate swap derivatives are recorded in other assets at $3.8 million and other liabilities at $4.3 million for a net liability position of $499,000. At December 31, 2017, the fair value of the interest rate swap derivatives are recorded in other assets at $2.4 million and other liabilities at $2.6 million for a net liability position of $291,000. All changes in fair value are recorded through earnings as noninterest income. For the year ended December 31, 2018 the Company recorded a loss of $207,000, compared to a gain of $1,000 for the year ended December 31, 2017, related to the change in the fair value of these interest rate swap derivatives. Foreign Exchange The Company also enters into foreign exchange contracts with customers to accommodate their need to convert certain foreign currencies into to U.S. Dollars. To offset the foreign exchange risk, the Company has entered into substantially identical agreements with an unrelated market counterparty to hedge these foreign exchange contracts. At December 31, 2018 and 2017, there were no outstanding contracts or agreements related to foreign currency. If there were foreign currency contracts outstanding at December 31, 2018 and 2017, the fair value of these contracts would be included in other assets and other liabilities in the accompanying balance sheet. All changes in fair value are recorded as other noninterest income. There was no gain or loss recorded related to the foreign exchange derivative for the years ended December 31, 2018 or 2017. Mortgage Banking The Company also has derivatives contracts that are not classified as accounting hedges to mitigate risks related to its mortgage banking activities. These instruments may include financial forwards, futures contracts, and options written and purchased, which are used to hedge mortgage servicing rights; while forward sales commitments are typically used to hedge the mortgage pipeline. Such instruments derive their cash flows, and therefore their values, by reference to an underlying instrument, index or referenced interest rate. The Company does not elect hedge accounting treatment for any of these derivative instruments and as a result, changes in fair value of the instruments (both gains and losses) are recorded in the Company’s consolidated statements of income in mortgage banking income. Mortgage Servicing Rights Derivatives contracts related to mortgage servicing rights are used to help offset changes in fair value and are written in amounts referred to as notional amounts. Notional amounts provide a basis for calculating payments between counterparties but do not represent amounts to be exchanged between the parties, and are not a measure of financial risk. On December 31, 2018 and 2017, the Company had derivative financial instruments outstanding with notional amounts totaling $94.5 million and $ 94.0 million related to mortgage servicing rights, respectively. The estimated net fair value of the open contracts related to the mortgage servicing rights was recorded as a gain of $1.2 million at December 31, 2018 compared to a loss of $252,000 at December 31, 2017. The following table presents the Company’s notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage loan pipeline. December 31, (Dollars in thousands) 2018 2017 Mortgage loan pipeline $ $ 71,477 Expected closures 53,608 Fair value of mortgage loan pipeline commitments 920 Forward sales commitments 89,317 Fair value of forward commitments 19 |
Loan Servicing, Mortgage Origin
Loan Servicing, Mortgage Origination, and Loans Held for Sale | 12 Months Ended |
Dec. 31, 2018 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | Note 28—Loan Servicing, Mortgage Origination, and Loans Held for Sale The portfolio of residential mortgages serviced for others, which are not included in the accompanying balance sheets, was $3.1 billion and $2.9 billion at December 31, 2018 and 2017, respectively. Servicing loans for others generally consists of collecting mortgage payments, maintaining escrow accounts and disbursing payments to investors. The amount of contractually specified servicing fees earned by the Company during the year ended December 31, 2018 and 2017 was $7.6 million and $7.2 million, respectively. Servicing fees are recorded in mortgage banking income in the Company’s consolidated statements of income. At December 31, 2018 and 2017, MSRs were $34.7 million and $31.1 million, respectively, on the Company’s consolidated balance sheet. MSRs are recorded at fair value with changes in fair value recorded as a component of mortgage banking income in the Consolidated Statements of Income. The market value adjustments related to MSRs recorded in mortgage banking income for the years ended December 31, 2018 and 2017 were a gain of $1.9 million and a loss of $595,000, respectively. The Company has used various free standing derivative instruments to mitigate the income statement effect of changes in fair value due to changes in market value adjustments and to changes in valuation inputs and assumptions related to MSRs. The following table presents the changes in the fair value of MSRs and its offsetting hedge. Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Increase (decrease) in fair value of MSRs $ 1,861 $ (595) $ 560 Decay of MSRs (3,762) (4,153) Gain (loss) related to derivatives 200 (402) Net effect on statements of income $ $ (4,157) $ (3,995) The fair value of MSRs is highly sensitive to changes in assumptions and fair value is determined by estimating the present value of the asset’s future cash flows utilizing market‑based prepayment rates, discount rates and other assumptions validated through comparison to trade information, industry surveys and with the use of independent third party appraisals. Changes in prepayment speed assumptions have the most significant impact on the fair value of MSRs. Generally, as interest rates decline, mortgage loan prepayments accelerate due to increased refinance activity, which results in a decrease in the fair value of the MSR. Measurement of fair value is limited to the conditions existing and the assumptions utilized as of a particular point in time, and those assumptions may not be appropriate if they are applied at a different time. See Note 24 — Fair Value for additional information regarding fair value. The characteristics and sensitivity analysis of the MSR are included in the following table. December 31, (Dollars in thousands) 2018 2017 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.8 % 99.7 % Adjustable-rate mortgage loans 0.2 % 0.3 % Total 100.0 % 100.0 % Weighted average life 7.88 years 7.64 years Constant Prepayment rate (CPR) 7.3 % 7.7 % Weighted average discount rate 9.4 % 9.6 % Effect on fair value due to change in interest rates 25 basis point increase $ 1,504 $ 1,485 50 basis point increase 2,740 2,664 25 basis point decrease (1,981) (1,850) 50 basis point decrease (4,421) (4,014) The sensitivity calculations above are hypothetical and should not be considered to be predictive of future performance. Changes in fair value based on adverse changes in assumptions generally cannot be extrapolated because the relationship of the changes in assumptions to fair value may not be linear. Also, in this table, the effects of an adverse variation in a particular assumption on the fair value of the MSRs is calculated without changing any other assumptions, while in reality, changes in one factor may result in changing another, which may magnify or contract the effect of the change. Custodial escrow balances maintained in connection with the loan servicing were $16.2 million and $15.3 million at December 31, 2018 and 2017. Whole loan sales were $645.7 million and $746.9 million for the years ended December 31, 2018 and 2017, of which $498.7 million and $565.0 million or 77.2% and 75.7% were sold with the servicing rights retained by the Company. Loans held for sale have historically been comprised of residential mortgage loans awaiting sale in the secondary market, which generally settle in 15 to 45 days. At December 31, 2018, loans held for sale were $22.9 million, compared with $70.9 million at December 31, 2017, which included $25.4 million in commercial loans (Shared National Credits) which were acquired in the Park Sterling acquisition that were sold in the first quarter of 2018, resulting in no gain or loss. Loans held for sale consisting of residential mortgage loans to be sold in the secondary market, were $45.5 million at December 31, 2017. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Projects | 12 Months Ended |
Dec. 31, 2018 | |
Investment In Qualified Affordable Housing Projects. | |
Investment in Qualified Affordable Housing Projects | Note 29—Investments in Qualified Affordable Housing Projects The Company has investments in qualified affordable housing projects (“QAHPs”) that provide low income housing tax credits and operating loss benefits over an extended period. The tax credits and the operating loss tax benefits that are generated by each of the properties are expected to exceed the total value of the investment made by the Company. For the year ended December 31, 2018, tax credits and other tax benefits of $4.6 million and amortization of $3.8 million were recorded. For the year ended December 31, 2017, the Company recorded tax credits and other tax benefits of $3.3 million and amortization of $3.0 million. At December 31, 2018 and 2017, the Company’s carrying value of QAHPs was $44.0 million and $36.6 million, respectively, with an original investment of $57.9 million. The Company has $17.5 million and $18.5 million in remaining funding obligations related to these QAHPs recorded in liabilities at December 31, 2018 and 2017, respectively. None of the original investment will be repaid. The investment in QAHPs is being accounted for using the equity method. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events | |
Subsequent Events | Note 30—Subsequent Events In March 2017, the Board of Directors approved and reset the number of shares available to be repurchased under the 2004 Stock Repurchase Program to 1,000,000 of which all the shares were repurchased in the third and fourth quarters of 2018. On January 25, 2019, the Board of Directors approved a new program to repurchase up to 1,000,000 of our common shares. Starting in late January of 2019, the Company began repurchasing its common shares in open market transactions again. The Company made this determination after considering the liquidity needs and capital resources as well as the estimated current value of the Company’s net assets. The number of shares to be purchased and the timing of the purchases are based on a variety of factors, including, but not limited to, the level of cash balances, general business conditions, regulatory requirements, the market price of the Company’s common stock, and the availability of alternative investment opportunities. As of the date of this filing, the Company has repurchased 500,000 shares at an average price of $66.53 a share for a total of $33. 3 million in common stock since the reset of the number of shares available in January 2019. The Company may repurchase up to an additional 500,000 shares of common stock under the 2019 Stock Repurchase Program . The Company is not obligated to repurchase any additional shares under the 2019 Stock Repurchase Program, and any repurchases under the 2019 Stock Repurchase Program after December 23, 2019 would require additional Federal Reserve approval. The Company has evaluated subsequent events for accounting and disclosure purposes through the date the financial statements are issued and has determined that there is no additional disclosure necessary. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Significant Accounting Policies | |
Nature of operations | Nature of Operations South State Corporation (the “Company”) is a bank holding company whose principal activity is the ownership and management of its wholly owned subsidiary, South State Bank (the “Bank”). The Bank also operates Minis & Co., Inc. and South State Advisory (formerly First Southeast 401k Fiduciaries), both wholly-owned registered investment advisors. The Bank provides general banking services within 29 counties in South Carolina, 9 counties in North Carolina, 19 counties in Georgia and four counties in Virginia. The accounting and reporting policies of the Company and its consolidated subsidiary conform to accounting principles generally accepted in the United States of America (‘U.S. GAAP”). There are thirteen unconsolidated subsidiaries of the Company that were established for the purpose of issuing in the aggregate $115.0 million of trust preferred securities. The thirteen capital trusts include the following: SCBT Capital Trust I at $12.0 million; SCBT Capital Trust II at $8.0 million; SCBT Capital Trust III at $20.0 million; TSB Statutory Trust I at $3.0 million; SAVB Capital Trust I at $6.0 million; SAVB Capital Trust II at $4.0 million; Southeastern Bank Financial Statutory Trust I at $10.0 million; Southeastern Bank Financial Statutory Trust II at $10.0 million; Provident Community Bancshares Capital Trust I at $4.0 million; FCRV Statutory Trust I at $5.0 million; Community Capital Statutory Trust I at $10.0 million; CSBC Statutory Trust I at $15.0 million and Provident Community Bancshares Capital Trust II at $8.0 million. Unless otherwise mentioned or unless the context requires otherwise, references herein to "South State," the "Company" "we," "us," "our" or similar references mean South State Corporation and its consolidated subsidiary. References to the “Bank” means South State Bank, a South Carolina banking corporation. |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and other entities in which it has a controlling financial interest. All significant intercompany balances and transactions have been eliminated in consolidation. Assets held by the Company in trust are not assets of the Company and are not included in the accompanying consolidated financial statements. |
Segments | Segments The Company, through its subsidiary, provides a broad range of financial services to individuals and companies in South Carolina, North Carolina, Georgia and Virginia. These services include demand, time and savings deposits; lending and credit card servicing; ATM processing; mortgage banking services; and wealth management and trust services. While the Company’s decision makers monitor the revenue streams of the various financial products and services, operations are managed and financial performance is evaluated on an organization‑wide basis. Accordingly, the Company’s banking and finance operations are not considered by management to constitute more than one reportable operating segment. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, fair values of assets and liabilities acquired in business combinations, loss estimates related to loans and other real estate acquired, evaluating other‑than‑temporary impairment of investment securities, goodwill impairment tests and valuation of deferred tax assets In connection with the determination of the allowance for loan losses, management has identified specific loans as well as adopted a policy of providing amounts for loan valuation purposes which are not identified with any specific loan but are derived from actual loss experience ratios, loan types, loan volume, economic conditions and industry standards. Management believes that the allowance for loan losses is adequate. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on changes in economic conditions. In addition, regulatory agencies, as an integral part of the examination process, periodically review the banking subsidiary’s allowance for loan losses. Such agencies may require additions to the allowance based on their judgments about information available to them at the time of their examination. |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company’s subsidiary grants agribusiness, commercial, and residential loans to customers throughout South Carolina, North Carolina, Virginia and Georgia. Although the subsidiary has a diversified loan portfolio, a substantial portion of their borrowers’ abilities to honor their contracts is dependent upon economic conditions within South Carolina, North Carolina, Georgia and the surrounding regions. The Company considers concentrations of credit to exist when, pursuant to regulatory guidelines, the amounts loaned to a multiple number of borrowers engaged in similar business activities which would cause them to be similarly impacted by general economic conditions represents 25% of total risk‑based capital, or $375.9 million at December 31, 2018. Based on this criteria, the Company had three such credit concentrations at December 31, 2018, including $609.3 million of loans to lessors of residential buildings (investment properties and multi-family), $1.3 billion of loans to lessors of nonresidential buildings (except mini‑warehouses), and $457.2 million of loans on hotels and motels. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents include cash on hand, cash items in process of collection, amounts due from banks, interest bearing deposits with banks, purchases of securities under agreements to resell, and federal funds sold. Due from bank balances are maintained in other financial institutions. Federal funds sold are generally purchased and sold for one-day periods, but may, from time to time, have longer terms. The Company enters into purchases of securities under agreements to resell substantially identical securities typically for the purpose of obtaining securities on a short‑term basis for collateralizing certain customer deposit relationships. Securities purchased under agreements to resell at December 31, 2018 and 2017 consisted of U.S. government‑sponsored entities and agency mortgage‑backed securities. It is the Company’s policy to take possession of securities purchased under agreements to resell. The securities are delivered into the Company’s account maintained by a third‑party custodian designated by the Company under a written custodial agreement that explicitly recognizes the Company’s interest in the securities. The Company monitors the market value of the underlying securities, including accrued interest, which collateralizes the related receivable on agreements to resell. At December 31, 2018, these agreements were considered to be cash equivalents with maturities of three months or less. |
Investment Securities | Investment Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and carried at amortized cost. Securities not classified as held to maturity, including equity securities with readily determinable fair values, are classified as “available for sale” and carried at fair value with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using methods approximating the interest method over the terms of the securities. Declines in the fair value of held‑to‑maturity and available‑for‑sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. Gains and losses realized on sales of securities available for sale are determined using the specific identification method. The Company evaluates securities for other‑than‑temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. In estimating OTTI losses, management considers: (1) the financial condition and near-term prospects of the issuer, (2) the outlook for receiving the contractual cash flows of the investments, (3) the length of time and the extent to which the fair value has been less than cost, (4) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value or for a debt security whether it is more‑likely‑than‑not that the Company will be required to sell the debt security prior to recovering its fair value, and (5) the anticipated outlook for changes in the general level of interest rates. (see Note 3—Investment Securities). Other investments include stock acquired for regulatory purposes, investments in unconsolidated subsidiaries and other nonmarketable investment securities. Stock acquired for regulatory purposes include Federal Home Loan Bank of Atlanta (“FHLB”) stock. These securities do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. Investments in unconsolidated subsidiaries represent a minority investment in SCBT Capital Trust I, SCBT Capital Trust II, SCBT Capital Trust III, TSB Statutory Trust I, SAVB Capital Trust I, SAVB Capital Trust II, Southeastern Bank Financial Statutory Trust I, Southeastern Bank Financial Statutory Trust II, Provident Community Bancshares Capital Trust I, FCRV Statutory Trust I, Community Capital Statutory Trust I, CSBC Statutory Trust I and Provident Community Bancshares Capital Trust II. These investments are recorded at cost and the Company receives quarterly dividend payments on these investments. Other nonmarketable investment securities consists of Business Development Corporation stock and stock in Banker’s Banks. These investments also do not have a readily determinable fair value because their ownership is restricted and they lack a market for trading. As a result, these securities are carried at cost and are periodically evaluated for impairment. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale are carried at the estimated fair value in the aggregate. Estimated fair value is determined on the basis of existing forward commitments, or the current market value of similar loans. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans held‑for‑sale are sold to investors either under guaranteed delivery or with the best effort intent and ability to sell loans as long as they meet the underwriting standards of the potential investor. |
Loans | Loans Loans that management has originated and has the intent and ability to hold for the foreseeable future or until maturity or pay‑off generally are reported at their unpaid principal balances, less unearned income and net of any deferred loan fees and costs. Unearned income on installment loans is recognized as income over the terms of the loans by methods that generally approximate the interest method. Interest on other loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. We place non‑acquired loans and acquired non-credit impaired loans on nonaccrual once reasonable doubt exists about the collectability of all principal and interest due. Generally, this occurs when principal or interest is 90 days or more past due, unless the loan is well secured and in the process of collection. A loan is considered impaired when, in management’s judgment, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines when loans become impaired through its normal loan administration and review functions. Loans identified as nonaccrual are potentially impaired loans. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired, provided that management expects to collect all amounts due, including interest accrued at the contractual interest rate for the period of delay. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Interest income recognition on non‑acquired impaired loans is discontinued when the loans meet the criteria for nonaccrual status described above. Large groups of smaller balance homogeneous non‑acquired loans are collectively evaluated for loss and a general reserve is established accordingly. Acquired credit impaired loans are initially recorded at a discount to recognize the difference in the fair value of the loans and the contractual balance. The discount includes a component to recognize the absolute difference between the contractual value and the amount expected to be collected (total cash flow) as well as a component to recognize the net present value of that future amount to be collected. The net present value component is accretable into income, and therefore generates a yield on all acquired credit impaired loans, regardless of past due status. Therefore, acquired credit impaired loans are considered to be accruing loans. Acquired credit impaired loans that are greater than 90 days past due are placed into the greater than 90 days past due and still accruing category when analyzing the aging status of the loan portfolio. See Note 4—Loans and Allowance for Loan Losses for further detail. |
Troubled Debt Restructurings ("TDRs") | Troubled Debt Restructurings (“TDRs”) The Bank designates loan modifications as TDRs when, for economic or legal reasons related to the borrower’s financial difficulties, it grants a concession to the borrower that it would not otherwise consider. Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of modification are initially classified as accruing TDRs at the date of modification, if the note is reasonably assured of repayment and performance is in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the modification date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is well documented credit evaluation of the borrower’s financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months). |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established for estimated loan losses through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes that the collectability of the principal is unlikely. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral, and prevailing economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of general and specific reserves. The general reserves are determined, for loans not identified as impaired, by applying loss percentages to the portfolio that are based on historical loss experience and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. The specific reserves are determined, for impaired loans, on a loan‑by‑loan basis based on management’s evaluation of the Company’s exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. Management evaluates nonaccrual loans and TDRs regardless of accrual status to determine whether or not they are impaired. For such loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The Company requires updated appraisals on at least an annual basis for impaired loans that are collateral dependent. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Although management uses available information to estimate losses on loans, because of uncertainties associated with local, regional, and national economic conditions, collateral values, and future cash flows on impaired loans, and subjection of the model to the review of regulatory authorities, it is reasonably possible that a material change could occur in the allowance for loan losses in the near term. However, the amount of the change that is reasonably possible cannot be estimated. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”), consisting of properties obtained through foreclosure or through a deed in lieu of foreclosure in satisfaction of loans and property originally acquired for further branch expansion (formerly classified as premises and equipment), is reported at the lower of cost or fair value, determined on the basis of current valuations obtained principally from independent sources, adjusted for estimated selling costs. At the time of foreclosure or initial possession of collateral, any excess of the loan balance over the fair value of the real estate held as collateral is treated as a charge against the allowance for loan losses. Subsequent declines in the fair value of OREO below the new cost basis are recorded through valuation adjustments. Significant judgments and complex estimates are required in estimating the fair value of other real estate, and the period of time within which such estimates can be considered current is significantly shortened during periods of market volatility. In response to market conditions and other economic factors, management may utilize liquidation sales as part of its problem asset disposition strategy. As a result of the significant judgments required in estimating fair value and the variables involved in different methods of disposition, the net proceeds realized from sales transactions could differ significantly from the valuations used to determine the fair value of OREO. Management reviews the value of OREO each quarter and adjusts the values as appropriate. Revenue and expenses from OREO operations as well as gains or losses on sales and any subsequent adjustments to the value are recorded as OREO expense and loan related expense, a component of non‑interest expense. |
Business Combinations and Method of Accounting for Loans Acquired | Business Combinations and Method of Accounting for Loans Acquired The Company accounts for its acquisitions under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations , which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. No allowance for loan losses related to the acquired loans is recorded on the acquisition date because the fair value of the loans acquired incorporates assumptions regarding credit risk. Loans acquired are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements and Disclosures . The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of expected principal, interest and other cash flows. Acquired credit‑impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310‑30, Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality , and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Loans acquired in business combinations with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of purchase dates may include information such as past‑due and nonaccrual status, borrower credit scores and recent loan to value percentages. The Company considers expected prepayments and estimates the amount and timing of expected principal, interest and other cash flows for each loan or pool of loans meeting the criteria above, and determines the excess of the loan’s scheduled contractual principal and contractual interest payments over all cash flows expected to be collected at acquisition as an amount that should not be accreted (nonaccretable difference). The remaining amount, representing the excess of the loan’s or pool’s cash flows expected to be collected over the fair value for the loan or pool of loans, is accreted into interest income over the remaining life of the loan or pool (accretable yield). In accordance with FASB ASC Topic 310‑30, the Company aggregated acquired loans that have common risk characteristics into pools within the following loan categories: commercial real estate, commercial real estate—construction and development, residential real estate, consumer, commercial and industrial, and single pay. Single pay loans consist of those instruments for which repayment of principal and interest is expected at maturity. Loans acquired through business combinations that do not meet the specific criteria of FASB ASC Topic 310‑30, but for which a discount is attributable at least in part to credit quality are generally accounted for under this guidance. As a result, related discounts are recognized subsequently through accretion based on the expected cash flow of the acquired loans. Certain acquired loans, such as lines of credit (consumer and commercial) and loans for which there was no discount attributable to credit are accounted for in accordance with FASB ASC Topic 310‑20, where the discount is accreted through earnings based on estimated cash flows over the estimated life of the loan. Subsequent to the acquisition date, increases in cash flows expected to be received in excess of the Company’s initial estimates are reclassified from nonaccretable difference to accretable yield and are accreted into interest income on a level‑yield basis over the remaining life of the loan. Decreases in cash flows expected to be collected are recognized as impairment through the provision for loan losses. Probable and significant increases in cash flows (in a loan pool where an allowance for acquired loan losses was previously recorded) reduces the remaining allowance for acquired loan losses before recalculating the amount of accretable yield percentage for the loan pool in accordance with ASC 310-30. |
FDIC Indemnification Asset | FDIC Indemnification Asset On June 23, 2016, the Bank entered into an early termination agreement with the FDIC with respect to all of its outstanding loss share agreements. All assets previously classified as covered became uncovered, and the Bank will now recognize the full amount of future charge-offs, recoveries, gains, losses, and expenses related to these previously covered assets, as the FDIC will no longer share in these amounts. With the termination of the loss share agreements, the Company no longer carries a FDIC indemnification asset. With the early termination agreement with the FDIC, the Bank recorded a pre-tax charge of $4.4 million, which resulted from a $2.3 million payment to the FDIC as consideration for the early termination, plus the amortization of the remaining FDIC indemnification asset of $2.1 million, net of the clawback, as of March 31, 2016. The entire pre-tax charge was recorded in noninterest income through “Amortization of the FDIC indemnification asset” on the consolidated statements of income. During 2016, the Bank paid a net $853,000 to the FDIC, prior to the termination of the agreements. The indemnification asset was amortized through March 31, 2016. All assets previously classified as covered became uncovered effective June 23, 2016, and as a result the Bank recognizes the full amount of future charge-offs, recoveries, gains, losses, and expenses related to these previously covered assets, as the FDIC will no longer share in these amounts. Related to periods before the termination of the loss share agreements, the FDIC indemnification asset was measured separately from the related covered asset as it was not contractually embedded in the assets and was not transferable with the assets had the Company chosen to dispose of them. Fair value was estimated at the acquisition date using projected cash flows related to the loss sharing agreements based on the expected reimbursements for losses and the applicable loss sharing percentages. These expected reimbursements did not include reimbursable amounts related to future covered expenditures. These cash flows were discounted to reflect the uncertainty of the timing and receipt of the loss sharing reimbursement from the FDIC. The Company offset any recorded provision for loan losses related to acquired‑covered loans by recording an increase in the FDIC indemnification asset by the increase in expected cash flow, which was the result of a decrease in expected cash flow of acquired loans. An increase in cash flows on acquired loans resulted in a decrease in cash flows on the FDIC indemnification asset, which was recognized in the future as negative accretion through non‑interest income over the shorter of the remaining life of the FDIC indemnification asset or the underlying loans. The Company incurred expenses related to the assets indemnified by the FDIC, and pursuant to the loss share agreement certain costs were reimbursable by the FDIC. These costs were included in monthly and quarterly claims made by the Company. The estimates of reimbursements were netted against these covered expenses in the income statement. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Office equipment, furnishings, and buildings are carried at cost less accumulated depreciation computed principally on the declining‑balance and straight‑line methods over the estimated useful lives of the assets. Leasehold improvements are amortized on the straight‑line method over the shorter of the estimated useful lives of the improvements or the terms of the related leases including lease renewals only when the Company is reasonably assured of the aggregate term of the lease. Additions to premises and equipment and major replacements are added to the accounts at cost. Maintenance and repairs and minor replacements are charged to expense when incurred. Gains and losses on routine dispositions are reflected in current operations. |
Bank Owned Life Insurance | Bank Owned Life Insurance Bank owned life insurance (BOLI) are comprised of long-term life insurance contracts on the lives of certain current and past employees where the insurance policy benefits and ownership are retained by the employer. Its cash surrender value is an asset that the Company uses to partially offset the future cost of employee benefits. The cash value accumulation on BOLI is permanently tax deferred if the policy is held to the insured person’s death and certain other conditions are met. |
Intangible Assets | Intangible Assets Intangible assets consist of goodwill, core deposit intangibles, client list intangibles, and noncompetition agreement (“noncompete”) intangibles that result from the acquisition of other banks or branches from other financial institutions. Core deposit intangibles represent the value of long‑term deposit relationships acquired in these transactions. Client list intangibles represent the value of long‑term client relationships for the wealth and trust management business. Noncompete intangibles represent the value of key personnel relative to various competitive factors such as ability to compete, willingness or likelihood to compete, and feasibility based upon the competitive environment, and what the Bank could lose from competition. Goodwill represents the excess of the purchase price over the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed. Goodwill has an indefinite useful life and is evaluated for impairment annually or more frequently if events and circumstances indicate that the asset might be impaired. An impairment loss is recognized to the extent that the carrying amount exceeds the asset’s fair value. The goodwill impairment analysis is a two‑step test. The first step, used to identify potential impairment, involves comparing the reporting unit’s estimated fair value to its carrying value, including goodwill. If the estimated fair value of a reporting unit exceeds its carrying value, goodwill assigned to that reporting unit is considered not to be impaired. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment of goodwill assigned to that reporting unit. If required, the second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in a manner similar to the amount of goodwill calculated in a business combination, by measuring the excess of the estimated fair value of the reporting unit, as determined in the first step, over the aggregate estimated fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the carrying value of goodwill assigned to the reporting unit, there is no impairment. If the carrying value of goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss cannot exceed the carrying value of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted. Management has determined that the Company has two reporting units. The Company evaluated the carrying value of goodwill as of April 30, 2018, its annual test date, and determined that no impairment charge was necessary. The Company updated its valuation of the carrying value of goodwill as of December 31, 2018 based on the drop in the Company’s stock price in the fourth quarter of 2018 and still determined that no impairment charge was necessary. Should the Company’s future earnings and cash flows decline and/or discount rates increase, an impairment charge to goodwill and other intangible assets may be required. Core deposit intangibles, included in core deposit and other intangibles, are amortized over the estimated useful lives of the deposit accounts acquired (generally 10 to 13 years) on either (1) the straight‑line method or (2) an accelerated basis method which reasonably approximates the anticipated benefit stream from the accounts. The estimated useful lives are periodically reviewed for reasonableness. Noncompete intangibles, included in core deposit and other intangibles are amortized over the life of the underlying noncompete agreements (generally 2 to 3 years) on the straight‑line method. The estimated useful lives are periodically reviewed for reasonableness. Client list intangibles, included in core deposit and other intangibles, are amortized over the estimated useful lives of the client lists acquired (generally 15 years) on the straight‑line method. The estimated useful lives are periodically reviewed for reasonableness. |
Mortgage Servicing Rights | Mortgage Servicing Rights The Company has a mortgage loan servicing portfolio with related mortgage servicing rights. Mortgage servicing rights (“MSRs”) represent the present value of the future net servicing fees from servicing mortgage loans. Servicing assets and servicing liabilities must be initially measured at fair value, if practicable. For subsequent measurements, an entity can choose to measure servicing assets and liabilities either based on fair value or lower of cost or market. The Company uses the fair value measurement option for MSRs. The methodology used to determine the fair value of MSRs is subjective and requires the development of a number of assumptions, including anticipated prepayments of loan principal. Fair value is determined by estimating the present value of the asset’s future cash flows utilizing estimated market‑based prepayment rates and discount rates, interest rates and other economic factors and assumptions validated through comparison to trade information, industry surveys and with the use of independent third party appraisals. Risks inherent in the MSRs valuation include higher than expected prepayment rates and/or delayed receipt of cash flows. The value of MSRs is significantly affected by mortgage interest rates available in the marketplace, which influence mortgage loan prepayment speeds. In general, during periods of declining interest rates, the value of mortgage servicing rights declines due to increasing prepayments attributable to increased mortgage refinance activity. Conversely, during periods of rising interest rates, the value of servicing rights generally increases due to reduced refinance activity. MSRs are carried at fair value with changes in fair value recorded as a component of mortgage banking income each period in the Consolidated Statements of Income. The Company also uses derivative instruments to mitigate the income statement effect of changes in fair value due to changes in valuation inputs and assumptions of its MSRs. |
Transfer of Financial Assets | Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over the transferred assets is deemed to be surrendered when: (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The Company reviews all sales of loans by evaluating specific terms in the sales documents and believes that the criteria discussed above to qualify for sales treatment have been met as loans have been transferred for cash and the notes and mortgages for all loans in each sale are endorsed and assigned to the transferee. As stated in the commitment document, the Buyer has no recourse with these loans except in the case of fraud. In certain sales, mortgage servicing rights may be retained and in other programs potential loss exposure from the credit enhancement obligation may be retained, both of which are evaluated and appropriately measured at the date of sale. The Company packages most of the 30 year fixed rate conforming mortgage loans as securities to investors issued through Fannie Mae and sold to third‑party investors or sells them to satisfy cash forward mandatory commitments to Fannie Mae. The Company records loan securitizations or cash forwards as a sale when the transferred loans are legally isolated from its creditors and the accounting criteria for a sale are met. Gains or losses recorded on loan securitizations and cash forwards depend in part on the net carrying amount of the loans sold, which is allocated between the loans sold and retained interests based on their relative fair values at the date of sale. The Company generally retains mortgage servicing rights on residential mortgage loans sold in the secondary market. Loans transferred to “held-for-sale” with the intention of disposal through a bulk loan sale will be sold with servicing released. Since quoted market prices are not typically available, the fair value of retained interests is estimated through the services of a third‑party service provider to determine the net present value of expected future cash flows. Such models incorporate management’s best estimates of key variables, such as prepayment speeds and discount rates that would be used by market participants and are appropriate for the risks involved. Gains and losses incurred on loans sold to third‑party investors are included in mortgage banking income in the Consolidated Statements of Income. |
Revenue from Contracts with Customers (Topic 606) and Method of Adoption | Revenue from Contracts with Customers (Topic 606) and Method of Adoption On January 1, 2018, we adopted the requirements of Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (“ASU Topic 606”). The majority of our revenue is derived primarily from interest income from receivables (loans) and securities. Other revenues are derived from fees received in connection with deposit accounts, mortgage banking activities including gains from the sale of loans and loan origination fees, and trust and investment advisory services. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted ASU Topic 606 using the retrospective transition approach which requires restatement of prior periods. We selected this method even though there were no material changes in the timing of revenue recognition due to the fact that ASU Topic 606 requires us to report network costs associated with debit card and ATM transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other noninterest expense. We did restate prior periods for this reclassification. For years 2018, 2017 and 2016, gross interchange and debit card transaction fees totaled $33.0 million, $35.6 million and $31.8 million, respectively while related network costs totaled $12.1 million, $9.1 million and $9.1 million, respectively. On a net basis we reported $20.9 million, $26.5 million and $22.7 million, respectively, as interchange and debit card transactions fees in the accompanying Consolidated Statements of Income as noninterest income for the years ended December 31, 2018, 2017 and 2016. This adoption method is considered a change in accounting principle requiring additional disclosure of the nature of and reason for the change, which is solely a result of the adoption of the required standard. When applying the retrospective approach under ASU Topic 606, the Company has elected, as a practical expedient, to apply the revenue standard only to contracts that are not completed as of January 1, 2018. A completed contract is considered to be a contract for which all (or substantially all) of the revenue was recognized in accordance with revenue guidance that was in effect before January 1, 2018. There were no uncompleted contracts as of January 1, 2018 for which application of the new standard required an adjustment to retained earnings. The following disclosures related to ASU Topic 606 involve income derived from contracts with customers. Within the scope of ASU Topic 606, we maintain contracts to provide services, primarily for investment advisory and/or custody of assets. Through our wholly owned subsidiaries, the Bank, South State Advisory, Inc. and Minis & Co., Inc., we contract with our customers to perform IRA, Trust, and/or Custody and Agency advisory services. Total revenue recognized from these contracts with customers was $30.2 million for the year ended December 31, 2018. The Bank contracts with our customers to perform deposit account services. Total revenue recognized from these contracts with customers is $82.6 million for the year ended December 31, 2018. Due to the nature of our relationship with the customers that we provide services, we do not incur costs to obtain contracts and there are no material incremental costs to fulfill these contracts that should be capitalized. Disaggregation of Revenue - Our portfolio of services provided to our customers consists of approximately 809,000 active contracts. We have disaggregated revenue according to timing of the transfer of service. Total revenue derived from contracts in which services are transferred at a point in time was $113.6 million year ended December 31, 2018. Total revenue derived from contracts in which services are transferred over time was $19.2 million for the year ended December 31, 2018. Revenue is recognized as the services are provided to the customers. Economic factors impacting the customers could affect the nature, amount, and timing of these cash flows, as unfavorable economic conditions could impair the customers’ ability to provide payment for services. This risk is mitigated as we generally deduct payments from customers’ accounts as services are rendered. Contract Balances - The timing of revenue recognition, billings, and cash collections results in billed accounts receivable on our balance sheet. Most contracts call for payment by a charge or deduction to the respective customer account but there are some that require a receipt of payment from the customer. For fee per transaction contracts, the customers are billed as the transactions are processed. For hourly rate and monthly service contracts related to trust and some investment revenues, the customers are billed monthly (generally as a percentage basis point of the market value of the investment account). In some cases, specific to Minis & Co., Inc. and South State Advisory, Inc., customers are billed in advance for quarterly services to be performed based on the past quarter’s average account balance. These do create contract liabilities or deferred revenue, as the customers pay in advance for service. Neither the contract liabilities nor the accounts receivables balances are material to the Company’s balance sheet. Performance Obligations - A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in ASU Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The performance obligations for these contracts are satisfied as the service is provided to the customer (either over time or at a point in time). The payment terms of the contracts are typically based on a basis point percentage of the investment account market value, fee per hour of service, or fee for service incurred. There are no significant financing components in the contracts. Excluding deposit services revenues which are mostly billed at a point in time as a fee for services incurred, all other contracts within the scope of ASU Topic 606 contain variable consideration in that fees earned are derived from market values of accounts or from hours worked for services performed which determines the amount of consideration to which we are entitled. The variability is resolved when the hours are incurred or services are provided. The contracts do not include obligations for returns, refunds, or warranties. The contracts are specific to the amounts owed to the Company for services performed during a period should the contracts be terminated. Significant Judgments - All of the contracts create performance obligations that are satisfied at a point in time excluding the contracts billed in advance through Minis& Co., Inc. and South State Advisory, Inc. and some immaterial deposit revenues. Revenue is recognized as services are billed to the customers. Variable consideration does exist for contracts related to our trust and investment services as revenues are based on market values and services performed. We have adopted the right-to-invoice practical expedient for trust management contracts through South State Bank which we contract with our customers to perform IRA, Trust, and/or Custody services. |
Advertising Costs | Advertising Costs The Company expenses advertising costs as they are incurred and advertising communication costs the first time the advertising takes place. The Company may establish accruals for anticipated advertising expenses within the course of a fiscal year. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Certain changes in assets and liabilities, such as (1) unrealized gains and losses on available‑for‑sale securities (2) unrealized gains and losses on effective portions of derivative financial instruments accounted for as cash flow hedges and (3) net change in unrecognized amounts related to pension and post‑retirement benefits, are reported as a separate component of the equity section of the balance sheet. Such items, along with net income, are components of total comprehensive income (see Consolidated Statements of Comprehensive Income on page F‑7). |
Employee Benefit Plans | Employee Benefit Plans The Company’s defined benefit pension and other post retirement plans are accounted for in accordance with FASB ASC 715, Compensation—Retirement Benefits , which requires the Company to recognize the funded status in its statement of financial position. See Note 16 for information regarding the defined benefit pension plan and Note 17 for information regarding our post‑retirement benefit plans. The expected costs of the plans are being expensed over the period that employees provide service. The Employee Stock Purchase Plan (“ESPP”) allows for a look‑back option which establishes the purchase price as an amount based on the lesser of the stock’s market price at the grant date or its market price at the exercise (or purchase) date. For the shares issued in exchange for employee services under the plan, the Company accounts for the plan under the FASB ASC 718, Compensation—Stock Compensation , in which the fair value measurement method is used to estimate the fair value of the equity instruments, based on the share price and other measurement assumptions at the grant date. See Note 18 for the amount the Company recognized as expense for the years ended December 31, 2018, 2017 and 2016. |
Income Taxes | Income Taxes Income taxes are provided for the tax effects of the transactions reported in the accompanying consolidated financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the tax basis and financial statement basis of gains on acquisitions, available‑for‑sale securities, allowance for loan losses, write downs of OREO properties, accumulated depreciation, net operating loss carryforwards, accretion income, deferred compensation, intangible assets, mortgage servicing rights, and pension plan and post‑retirement benefits. The deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred tax assets and liabilities are reflected at income tax rates applicable to the period in which the deferred tax assets or liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. In 2017, as a result of the Tax Reform Act signed into law on December 22, 2017, the Company revalued its deferred tax assets and liabilities using a provisional amount in 2017, and finalized its accounting for the tax reform effects during 2018. Additional information about the impact of the Tax Reform Act can be found in Note 11 of the Company’s consolidated financial statements. The Company recognizes interest and penalties accrued relative to unrecognized tax benefits in its respective federal or state income tax accounts. As of December 31, 2018 and 2017, there were no material accruals for uncertain tax positions. The Company and its subsidiaries file a consolidated federal income tax return. Additionally, income tax returns are filed by the Company or its subsidiaries in the state of South Carolina, Georgia, North Carolina, Florida, Virginia, Alabama, and Mississippi. Generally, the Company’s federal and state income tax returns are no longer subject to examination by taxing authorities for years prior to 2015. |
Earnings Per Share | Earnings Per Share Basic earnings per share (“EPS”) represents income available to common shareholders divided by the weighted‑average number of shares outstanding during the year. Diluted earnings per share reflects additional shares that would have been outstanding if dilutive potential shares had been issued. Potential shares that may be issued by the Company relate solely to outstanding stock options, restricted stock and restricted stock units (non‑vested shares), and warrants, and are determined using the treasury stock method. Under the treasury stock method, the number of incremental shares is determined by assuming the issuance of stock for the outstanding stock options and warrants, reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price for the year of the Company’s stock. Weighted‑average shares for the basic and diluted EPS calculations have been reduced by the average number of unvested restricted shares. |
Derivative Financial Instruments | Derivative Financial Instruments The Company’s interest rate risk management strategy incorporates the use of a derivative financial instrument, specifically an interest rate swap, to essentially convert a portion of its variable‑rate debt to a fixed rate. Cash flows related to variable‑rate debt will fluctuate with changes in an underlying rate index. When effectively hedged, the increases or decreases in cash flows related to the variable‑rate debt will generally be offset by changes in cash flows of the derivative instrument designated as a hedge. This strategy is referred to as a cash flow hedge. The Company also maintains one loan swap which is accounted for as a fair value hedge. This derivative protects the company from interest rate risk caused by changes in the LIBOR curve in relation to a certain designated fixed rate loan. This fair value hedge converts the fixed rate to a floating rate (see Note 27 – Derivative Financial Instruments). The Company’s risk management strategy for its mortgage banking activities incorporates derivative instruments used to hedge both the value of the mortgage servicing rights and the mortgage pipeline. These derivative instruments are not designated as hedges and are not speculative in nature. The derivative instruments that are used to hedge the value of the mortgage servicing rights include financial forwards, futures contracts, and options written and purchased. When‑issued securities and mandatory cash forward trades are typically used to hedge the mortgage pipeline. These instruments derive their cash flows, and therefore their values, by reference to an underlying instrument, index or referenced interest rate. The Company’s risk management strategy also incorporates the use of interest rate swap contracts that help in managing interest rate risk within the loan portfolio and foreign currency exchange. These derivative are not designated as hedges and are not speculative, and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings (See Note 27 – Derivative Financial Instruments). By using derivative instruments, the Company is exposed to credit and market risk. If the counterparty fails to perform, credit risk is equal to the fair value gain in a derivative. When the fair value of a derivative contract is positive, this situation generally indicates that the counterparty is obligated to pay the Company, and, therefore, creates a repayment risk for the Company. When the fair value of a derivative contract is negative, the Company is obligated to pay the counterparty and, therefore, has no repayment risk. The Company minimizes the credit risk in derivative instruments by entering into transactions with high‑quality counterparties that are reviewed periodically by the Company. The Company’s derivative activities are monitored by its Asset‑Liability Management Committee as part of that committee’s oversight of the Company’s asset/liability and treasury functions. The Company’s Asset‑Liability Management Committee is responsible for implementing various hedging strategies that are developed through its analysis of data from financial simulation models and other internal and industry sources. The resulting hedging strategies are then incorporated into the overall interest‑rate risk management process. The Company recognizes the fair value of derivatives as assets or liabilities in the financial statements. The accounting for the changes in the fair value of a derivative depends on the intended use of the derivative instrument at inception. The change in fair value of the effective portion of cash flow hedges is accounted for in other comprehensive income rather than net income. Changes in fair value of derivative instruments that are not intended as a hedge are accounted for in the net income in the period of the change (see Note 27—Derivative Financial Instruments for further disclosure). |
Reclassification | Reclassification Certain amounts previously reported have been reclassified to conform to the current year’s presentation. Such reclassifications had no effect on net income and shareholders’ equity. |
Subsequent Events | Subsequent Events The Company has evaluated subsequent events for accounting and disclosure purposes through the date the financial statements are issued. See Note 30- Subsequent Events for further information. |
Recent Accounting and Regulatory Pronouncements | Recent Accounting and Regulatory Pronouncements Accounting Standards Adopted in 2018 In February 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-03, Technical Corrections and Improvements to Financial Instruments-Overall (Subtopic 825-10) (“ASU 2018-03”). ASU 2018-03 updates the new financial instruments standard by clarifying issues that arose from ASU 2016-01, but does not change the core principle of the new standard. The issues addressed in this ASU include: (1) Equity securities without a readily determinable fair value-discontinuation, (2) Equity securities without a readily determinable fair value-adjustments, (3) Forward contracts and purchased options, (4) Presentation requirements for certain fair value option liabilities, (5) Fair value option liabilities denominated in a foreign currency, (6) Transition guidance for equity securities without a readily determinable fair value, and (7) Transition and open effective date information. For public business entities, the amendments in ASU 2018-03 and ASU 2016-01 are effective for interim and annual periods beginning after December 15, 2017. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of ASU 2018-03 and ASU 2016-01. This guidance became effective on January 1, 2018 and the Company determined that the implementation of this standard did not have a material impact to the Company’s consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02, Income Statement-Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (“ASU 2018-02”). ASU 2018-02 amends ASC Topic 220 and allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Reform Act. Consequently, this amendment eliminates the stranded tax effects resulting from the Tax Reform Act and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of the Tax Reform Act, the underlying guidance that requires that the effects of the change in tax laws or rates be included in income from continuing operations is not affected. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. This amendment should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in U.S. federal corporate income tax rate in the Tax Reform Act is recognized. The Company early adopted this amendment in the first quarter of 2018 and reclassified $2.9 million from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from the Tax Reform Act. In May 2017, the FASB issued ASU No. 2017-09, Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting (“ASU 2017-09”). ASU 2017-09 provides clarity by offering guidance on the scope of modification accounting for share-based payment awards and gives direction on which changes to the terms or conditions of these awards require an entity to apply modification accounting. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or a liability) changes as a result of the change in terms or conditions. The guidance is effective prospectively for all companies for annual periods beginning on or after December 15, 2017. Early adoption is permitted. The Company adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-07, Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). ASU 2017-07 applies to any employer that sponsors a defined benefit pension plan, other postretirement benefit plan, or other types of benefits accounted for under Topic 715. The amendments require that an employer disaggregate the service cost component from the other components of net benefit cost, as follows (1) service cost must be presented in the same line item(s) as other employee compensation costs, which costs are generally included within income from continuing operations, but in some cases may be eligible for capitalization, (2) all other components of net benefit cost must be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented, and (3) the amendments permit capitalizing only the service cost component of net benefit cost, assuming such costs meet the criteria required for capitalization by other GAAP , rather than total net benefit cost which has been permitted under prior GAAP. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years. The amendments should be adopted prospectively and allows a practical expedient that permits an employer to use the amounts disclosed in its pension and other postretirement benefit plan note for the prior periods to apply the retrospective presentation requirements. The Company adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (“ASU 2017-01”). These amendments are intended to clarify the definition of a business to assist companies and other reporting entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. ASU 2017-01 requires an entity to evaluate if substantially all of the fair value of the gross assets acquired are concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set of transferred assets and activities is not a business. The guidance also requires a business to include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC Topic 606. The guidance is effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those years. Early adoption is permitted. The Company adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on the Company’s consolidated financial statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (“ASU 2016-20”). ASU 2016-20 updates the new revenue standard by clarifying issues that arose from ASU 2014-09, but does not change the core principle of the new standard. The issues addressed in this ASU include: (1) Loan guarantee fees, (2) Impairment testing of contract costs, (3) Interaction of impairment testing with guidance in other topics, (4) Provisions for losses on construction-type and production-type contracts, (5) Scope of topic 606, (6) Disclosure of remaining performance obligations, (7) Disclosure of prior-period performance obligations, (8) Contract modifications, (9) Contract asset vs. receivable, (10) Refund liability, (11) Advertising costs, (12) Fixed-odds wagering contracts in the casino industry, (13) Cost capitalization for advisors to private funds and public funds. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this new guidance recognized at the date of initial application. The Company’s revenue includes net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. ASU 2016-20, ASU 2016-08 and ASU 2014-09 became effective on January 1, 2018 and the Company refined its disclosures around the standard in the first quarter of 2018. See Note 2 – Summary of Significant Accounting Policies for additional information. The Company has determined that there is no material change on how the Company recognizes its revenue streams and the adoption of these standards did not have a material impact on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15 , Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). ASU 2016-15 addresses eight classification issues related to the statement of cash flows: Debt prepayment or debt extinguishment costs; Settlement of zero-coupon bonds; Contingent consideration payments made after a business combination; Proceeds from the settlement of insurance claims; Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies; Distributions received from equity method investees; Beneficial interests in securitization transactions; and Separately identifiable cash flows and application of the predominance principle. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. Entities will apply the standard’s provisions using a retrospective transition method to each period presented. The Company adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent considerations (Reporting Revenue Gross versus Net) (“ASU 2016-08”). ASU 2016-08 updates the new revenue standard by clarifying the principal versus agent implementation guidance, but does not change the core principle of the new standard. The updates to the principal versus agent guidance: (i) require an entity to determine whether it is a principal or an agent for each distinct good or service (or a distinct bundle of goods or services) to be provided to the customer; (ii) illustrate how an entity that is a principal might apply the control principle to goods, services, or rights to services, when another party is involved in providing goods or services to a customer and (iii) Clarify that the purpose of certain specific control indicators is to support or assist in the assessment of whether an entity controls a good or service before it is transferred to the customer, provide more specific guidance on how the indicators should be considered, and clarify that their relevance will vary depending on the facts and circumstances. For public business entities, the effective date and transition requirements for these amendments are the same as the effective date and transition requirements of ASU 2014-09 which is effective for interim and annual periods beginning after December 15, 2017. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this new guidance recognized at the date of initial application. The Company’s revenue includes net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and noninterest income. ASU 2016-20, ASU 2016-08 and ASU 2014-09 became effective on January 1, 2018 and the Company refined its disclosures around the standard in the first quarter of 2018. The Company determined that there is no material change on how the Company recognizes its revenue streams and the adoption of these standards did not have a material impact on the Company’s consolidated financial statements, other than the required disclosures and the reclassification of interchange costs from noninterest expense to noninterest income on the Consolidated Statement of Income which the Company applied retrospectively to each prior reporting period. See further discussion in Note 2 – Summary of Significant Accounting Policies. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10); Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”). This update is intended to improve the recognition and measurement of financial instruments and it requires an entity to: (i) measure equity investments at fair value through net income, with certain exceptions; (ii) present in OCI the changes in instrument-specific credit risk for financial liabilities measured using the fair value option; (iii) present financial assets and financial liabilities by measurement category and form of financial asset; (iv) calculate the fair value of financial instruments for disclosure purposes based on an exit price; and (v) assess a valuation allowance on deferred tax assets related to unrealized losses of AFS debt securities in combination with other deferred tax assets. ASU 2016-01 also provides an election to subsequently measure certain nonmarketable equity investments at cost less any impairment and adjusted for certain observable price changes and requires a qualitative impairment assessment of such equity investments and amends certain fair value disclosure requirements. For public business entities, the amendments in ASU 2016-01 are effective for interim and annual periods beginning after December 15, 2017. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of the ASU 2016-01. This guidance became effective on January 1, 2018 and the Company has determined that the implementation of this standard did not have a material impact to the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, Topic 606 (“ASU 2014-09”). The new standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under existing guidance. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. In August of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers, Topic 606: Deferral of the Effective Date, deferring the effective date of ASU 2014-09 until annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments can be applied retrospectively to each prior reporting period or retrospectively with the cumulative effect of initially applying this new guidance recognized at the date of initial application. The Company’s revenue includes net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. ASU 2016-20, ASU 2016-08 and ASU 2014-09 became effective on January 1, 2018 and the Company refined its disclosures around the standard in the first quarter of 2018. See Note 2 – Summary of Significant Accounting Policies for additional information. The Company has determined that there is no material change on how the Company recognizes its revenue streams, other than the required disclosures and the reclassification of interchange costs from noninterest expense to noninterest income on the Consolidated Statement of Income which the Company applied retrospectively to each prior reporting period. Issued But Not Yet Adopted Accounting Standards In December 2018, the FASB issued ASU No. 2018-20, Leases (Topic 842): Narrow-Scope Improvements for Lessors (“ASU 2018-20”) . ASU 2018-20 updates the new lease standard ( Leases (Topic 842) (“ASU 2016-02”) by addressing several issues related to lessors which should reduce lessors’ implementation and ongoing costs related to the new lease standard. These improvements will not have a material impact on the Company’s consolidated financial statements. For public business entities, the guidance in ASU 2016-02, ASU 2018-11 and ASU 2018-20 is effective for interim and annual periods beginning after December 15, 2018. In transition, lessees and lessors have the choice to recognize and measure leases at the beginning of the earliest period presented in financials using a modified retrospective approach or to allow the entity to recognize and measure leases as of the adoption date and not in comparative periods. The guidance includes a number of optional practical expedients that entities may elect to apply. The Company has reviewed its outstanding lease agreements and has centrally documented the terms of its leases. The Company is still evaluating the provisions of ASU 2016-02, ASU 2018-11 and ASU 2018-20 in relation to its outstanding leases to determine the potential impact the new standard will have to the Company’s consolidated financial statements. Based on the Company’s evaluation, the Company will record a right to use asset and a lease liability of approximately $82 million as of January 1, 2019 when the standard becomes effective. The guidance will not have a material impact on the Company’s statement of income. In October 2018, the FASB issued ASU No. 2018-16, Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes (Derivatives and Hedging - Topic 815) (“ASU 2018-16”) . The amendments in this ASU permit the OIS rate based on SOFR as a U.S. benchmark interest rate. Including the OIS rate based on SOFR as an eligible benchmark interest rate during the early stages of the marketplace transition will facilitate the London Interbank Offered Rate (LIBOR) to SOFR transition and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies for both risk management and hedge accounting purposes. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. The Company is still assessing the impact of this new guidance, but does not believe it will have a material impact on the Company’s consolidated financial statements. In August 2018, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (Subtopic 350-40) (“ASU 2018-15”) . The ASU clarifies certain aspects of ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement , which was issued in April 2015. Specifically, ASU 2018-15 “align[s] the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license).” This ASU does not affect the accounting for the service element of a hosting arrangement that is a service contract. An entity would expense the capitalized implementation costs related to a hosting arrangement that is a service contract over the hosting arrangement’s term, which comprises the arrangement’s noncancelable term and any renewal options whose exercise is reasonably certain. The expense would be presented in the same line item in the statement of income as that in which the fee associated with the hosting arrangement is presented. For public business entities, the amendments in ASU 2018-15 are effective for interim and annual periods beginning after December 15, 2019 and an entity has the option of using either a retrospective or prospective transition method. Early adoption is permitted. The Company is still assessing the impact of this new guidance and is considering early adopting as of January 1, 2019, but does not believe it will have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plan (Subtopic 715-20) (“ASU 2018-14”) . ASU 2018-14 amends Accounting Standards Codification (“ASC”) 715-20 to add, remove, and clarify disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. For public business entities, ASU 2018-14 is effective for fiscal years ending after December 15, 2020 and requires entities to apply the amendment on a retrospective basis. Early adoption is permitted. At this point in time, the Company does not expect that this guidance will have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) (“ASU 2018-13”) . ASU 2018-13 removes, modifies, and adds certain disclosure requirements in ASC 820 related to Fair Value Measurement on the basis of the concepts in the FASB Concepts Statement Conceptual Framework for Financial Reporting — Chapter 8: Notes to Financial Statements . ASU 2018-13 is effective for all entities for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted upon issuance of this ASU, including in any interim period for which financial statements have not yet been issued or made available for issuance. Entities making this election are permitted to early adopt the eliminated or modified disclosure requirements and delay the adoption of all the new disclosure requirements until their effective date. The ASU requires application of the prospective method of transition (for only the most recent interim or annual period presented in the initial fiscal year of adoption) to the new disclosure requirement additions. The ASU also requires prospective application to any modifications to disclosures made because of the change to the requirements for the narrative description of measurement uncertainty. The effects of all other amendments made by the ASU must be applied retrospectively to all periods presented. The Company is still assessing the impact of this new guidance, but does not believe it will have a material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-11, Targeted Improvements - Leases (Topic 842) (“ASU 2018-11”). ASU 2018-11 updates the new lease standard ( Leases (Topic 842) (“ASU 2016-02”) by providing another transition method in addition to the existing transition method by allowing entities to initially apply the new leases standard at the adoption date instead of at the beginning of the earliest period presented in the financial statements as required in the original pronouncement. ASU 2018-11 also provides updated guidance for lessors related to separating lease and nonlease components in a contract and allocating the consideration in the contract to the separate components. For public business entities, the amendments in ASU 2016-02 and ASU 2018-11 are effective for interim and annual periods beginning after December 15, 2018. In transition, lessees and lessors have the choice to recognize and measure leases at the beginning of the earliest period presented in financials using a modified retrospective approach or to allow the entity to recognize and measure leases as of the adoption date and not in comparative periods. The guidance includes a number of optional practical expedients that entities may elect to apply. The Company has reviewed its outstanding lease agreements and has centrally documented the terms of its leases. The Company has evaluated the provisions of ASU 2016-02 and ASU 2018-11 in relation to its outstanding leases to determine the potential impact the new standard will have on the Company’s consolidated financial statements. Based on the Company’s current evaluation, the Company expects to adopt the standard at the date of the adoption method. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”). ASU 2017-12 amends ASC Topic 815 to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. These amendments will improve the transparency of information about an entity’s risk management activities and simplify the application of hedge accounting. The guidance is effective for public companies for annual periods beginning on or after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. This guidance will become effective on January 1, 2019 and the Company has determined that the implementation of this standard will not have a material impact to the Company’s consolidated financial statements. In March 2017, the FASB issued ASU No. 2017-08, Receivables-Nonrefundable Fees and Other Cost (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities; (“ASU 2017-08”). ASU 2017-08 shortens the amortization period of the premium for certain callable debt securities, from the contractual maturity date to the earliest call date. The amendments do not require an accounting change for securities held at a discount; an entity will continue to amortize to the contractual maturity date the discount related to callable debt securities. The amendments apply to the amortization of premiums on callable debt securities with explicit, noncontingent call features that are callable at fixed prices on preset dates. For public business entities, ASU 2017-08 is effective in fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. For entities other than public business entities, the amendments are effective in fiscal years beginning after December 15, 2019 and in interim periods in fiscal years beginning after December 15, 2020. Early adoption is permitted for all entities, including in an interim period. The amendments should be applied on a modified retrospective basis, with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the amendments are adopted. The Company has determined that this guidance will not have a material impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangible-Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). ASU 2017-04 simplifies the accounting for goodwill impairment for all entities by requiring impairment charges to be based on the first step in today’s two-step impairment test under ASC Topic 350 and eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those years. The amendments should be adopted prospectively and early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is still assessing the impact of this new guidance, but at this point in time, does not believe it will have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 , Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses for loans, investment securities portfolio, and purchased financial assets with credit deterioration. ASU 2016-13 also will require enhanced disclosures. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. A cross-functional working group comprised of individuals from credit administration, risk management, accounting and finance, information technology, among others are in place implementing and developing the data, forecast, processes, and portfolio segmentation that will be used in the models that will estimate the expected credit loss for each loan segment. The Company has also contracted with a third party vendor solution to assist us in the application and analysis of ASU 2016-13 in aggregating the results of the models and provide macroeconomic forecast for the markets served relative to each loan segment. The Company is currently unable to reasonably estimate the impact of adopting ASU 2016-13, and it will be influenced by the composition, characteristics and quality of our loan and securities portfolio, as well as the economic conditions and forecasts as of each reporting period. These economic conditions and forecasts could be significantly different in future periods. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). ASU 2016-02 applies a right-of-use (ROU) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. In July 2018, ASU 2018-11 was issued which provided targeted improvements related to 2016-02. (See above for further details) For public business entitie |
Mergers and Acquisitions (Table
Mergers and Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Mergers and Acquisitions | |
Schedule of proforma information | During 2018, the Company achieved further operating cost savings and other business synergies as a result of the acquisitions which were not reflected in the pro forma amounts below: SBFC PSC Actual since Actual since Acquisition Acquisition Pro Forma Pro Forma (January 3, 2017 through (November 30, 2017 through Year Ended Year Ended (Dollars in thousands) December 31, 2017) December 31, 2017) December 31, 2017 December 31, 2016 Total revenues (net interest income plus noninterest income) $ 67,823 $ 14,052 $ 690,716 $ 684,532 Net adjusted income available to the common shareholder $ 25,790 $ 4,829 $ 146,821 $ 164,479 |
Park Sterling Corporation | |
Mergers and Acquisitions | |
Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred | The PSC transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at estimated fair value on the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by Park Adjustments Adjustments the Company Assets Cash and cash equivalents $ 116,454 $ — $ — $ 116,454 Investment securities 461,261 1,444 (a) 219 (a) 462,924 Loans held for sale 2,200 68,686 (b) (4) (b) 70,882 Loans, net of allowance and mark 2,346,612 (95,878) (c) (9,408) (c) 2,241,326 Premises and equipment 61,059 (4,882) (d) (387) (d) 55,790 Intangible assets 73,090 (46,915) (e) 3,321 (e) 29,496 OREO and repossessed assets 2,549 (429) (f) 210 (f) 2,330 Bank owned life insurance 72,703 — — 72,703 Deferred tax asset 17,963 11,596 (g) 2,123 (g) 31,682 Other assets 21,595 (476) (h) — 21,119 Total assets $ 3,175,486 $ (66,854) $ (3,926) $ 3,104,706 Liabilities Deposits: Noninterest-bearing $ 561,874 $ — $ — $ 561,874 Interest-bearing 1,886,810 2,692 (i) (612) (i) 1,888,890 Total deposits 2,448,684 2,692 (612) 2,450,764 Federal funds purchased and securities sold under agreements to repurchase — — — — Other borrowings 329,249 11,689 (j) — 340,938 Other liabilities 24,179 2,131 (k) — 26,310 Total liabilities 2,802,112 16,512 (612) 2,818,012 Net identifiable assets acquired over (under) liabilities assumed 373,374 (83,366) (3,314) 286,694 Goodwill — 402,951 3,314 406,265 Net assets acquired over liabilities assumed $ 373,374 $ 319,585 $ — $ 692,959 Consideration: South State Corporation common shares issued 7,480,343 Purchase price per share of the SSB's common stock $ 92.05 SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) $ 688,654 Cash paid for stock option redemptions 4,305 Fair value of total consideration transferred $ 692,959 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects a reclass of $68.7 million by SSB of Shared National Credits (loans) from loans held for investment to loans held for sale. (c)—Adjustment reflects the fair value adjustments (discount) of $70.4 million based on the Company’s evaluation of the acquired loan portfolio. This amount excludes the allowance for loan losses (“ALLL”) and fair value adjustment (discount) of $12.5 million and $21.3 million, respectively, recorded by PSC and is net of the $68.7 million reclass related to the Shared National Credits noted in (b). (d)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (e)—Adjustment reflects the recording of a 1.66% Core Deposit Intangible (“CDI”) on the acquired deposit accounts that totaled $29.5 million offset by a write-off of $73.1 million of existing goodwill and CDI acquired from PSC. (f)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) based on the Company’s evaluation of the acquired OREO portfolio. (g)—Adjustment to record deferred tax asset related to the fair value adjustments and an adjustment from the PSC tax rate to the SSB tax rate. (h)—Adjustment reflects the write-off of accrued interest receivable and along with certain prepaid expenses. (i)—Adjustment reflects the premium for fixed maturity time deposits of $2.3 million offset by the write-off of existing fair value marks of $253,000 acquired from PSC. (j)—Adjustment reflects the fair value adjustment (discount) of $2.4 million on PSC’s Trust Preferred Securities offset by the write-off of the existing PSC discount on its senior debt and TRUPs of $14.0 million. (k)—Adjustment reflects the fair value adjustments to employee benefit plans of $1.5 million along with other adjustments of miscellaneous liabilities. |
Southeastern Bank Financial | |
Mergers and Acquisitions | |
Schedule of assets acquired, liabilities assumed, and fair value of total consideration transferred | The following table presents the assets acquired and liabilities assumed as of January 3, 2017 at their initial and subsequent fair value estimates, as recorded by the Company. The fair value estimates were subject to refinement for up to one year after the closing date of the acquisition for new information obtained about facts and circumstances that existed at the acquisition date. Initial Subsequent As Recorded Fair Value Fair Value As Recorded by (Dollars in thousands) by SBFC Adjustments Adjustments the Company Assets Cash and cash equivalents $ 72,043 $ — $ — $ 72,043 Investment securities 591,824 (1,770) (a) — 590,054 Loans held for sale 13,652 — — 13,652 Loans, net of allowance and mark 1,060,618 (10,668) (b) — 1,049,950 Premises and equipment 25,419 (2,212) (c) 870 (c) 24,077 Intangible assets 140 17,980 (d) — 18,120 OREO and repossessed assets 580 (30) (e) (100) (e) 450 Bank owned life insurance 44,513 — — 44,513 Deferred tax asset 16,247 (687) (f) 515 (f) 16,075 Other assets 7,545 (482) (g) — 7,063 Total assets $ 1,832,581 $ 2,131 $ 1,285 $ 1,835,997 Liabilities Deposits: Noninterest-bearing $ 262,967 $ — $ — $ 262,967 Interest-bearing 1,257,953 — — 1,257,953 Total deposits 1,520,920 — — 1,520,920 Federal funds purchased and securities sold under agreements to repurchase 1,014 — — 1,014 Other borrowings 110,620 (1,120) (h) — 109,500 Other liabilities 19,980 5,553 (i) 2,210 (i) 27,743 Total liabilities 1,652,534 4,433 2,210 1,659,177 Net identifiable assets acquired over (under) liabilities assumed 180,047 (2,302) (925) 176,820 Goodwill — 257,370 925 258,295 Net assets acquired over liabilities assumed $ 180,047 $ 255,068 $ — $ 435,115 Consideration: South State Corporation common shares issued 4,978,338 Purchase price per share of the Company's common stock $ 87.30 Company common stock issued ($434,609) and cash exchanged for fractional shares ($16) $ 434,625 Cash paid for stock option redemptions 490 Fair value of total consideration transferred $ 435,115 Explanation of fair value adjustments (a)—Adjustment reflects marking the securities portfolio to fair value as of the acquisition date. (b)—Adjustment reflects the fair value adjustments of $30.7 million based on the Company’s evaluation of the acquired loan portfolio and excludes the allowance for loan losses (“ALLL”) of $20.1 million recorded by SBFC. (c)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. (d)—Adjustment reflects the recording of the core deposit intangible on the acquired deposit accounts that totaled $18.1 million. (e)—Adjustment reflects the fair value adjustments to other real estate owned (“OREO”) and repossessed assets based on the Company’s evaluation of the acquired OREO and repossessed assets portfolio. (f)—Adjustment to record deferred tax asset related to the fair value adjustments. (g)—Adjustment reflects uncollectible portion of accrued interest receivable and loan fees receivable along with the write-off of certain prepaid expenses. (h)—Adjustment reflects the fair value adjustments based on the Company’s evaluation of other borrowings of Trust Preferred Securities with a discount of $2.1 million, netted with premium on certain Federal Home Loan Bank (“FHLB “) advances of $1.0 million. (i)—Adjustment reflects the fair value adjustments to employee benefit plans of $8.3 million netted against an adjustment of other miscellaneous liabilities of $496,000. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investment Securities | |
Schedule of amortized cost and fair value of investment securities held to maturity | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2018: State and municipal obligations $ — $ — $ — $ — December 31, 2017: State and municipal obligations $ 2,529 $ 27 $ — $ 2,556 |
Schedule of amortized cost and fair value of investment securities available for sale | Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains Losses Value December 31, 2018: Government-sponsored entities debt* $ 48,982 $ 21 $ (752) $ 48,251 State and municipal obligations 200,184 1,709 (1,125) 200,768 Mortgage-backed securities** 1,291,484 697 (24,133) 1,268,048 $ 1,540,650 $ 2,427 $ (26,010) $ 1,517,067 December 31, 2017: Government-sponsored entities debt* $ 86,535 $ 51 $ (1,077) $ 85,509 State and municipal obligations 216,812 3,749 (124) 220,437 Mortgage-backed securities** 1,350,200 2,103 (11,616) 1,340,687 Corporate securities 1,560 — — 1,560 $ 1,655,107 $ 5,903 $ (12,817) $ 1,648,193 * The Company’s government-sponsored entities holdings are comprised of debt securities offered by Federal Home Loan Mortgage Corporation (“FHLMC”) or Freddie Mac, Federal National Mortgage Association (“FNMA”) or Fannie Mae, FHLB, and Federal Farm Credit Banks (“FFCB”). Also included in the Company’s government-sponsored entities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. ** All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. |
Schedule of amortized cost and fair value of other investment securities | Carrying (Dollars in thousands) Value December 31, 2018: Federal Home Loan Bank stock $ 19,524 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 25,604 December 31, 2017: Federal Home Loan Bank stock $ 16,967 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 23,047 |
Schedule of amortized cost and fair value of debt securities by contractual maturity | Securities Securities Held to Maturity Available for Sale Amortized Fair Amortized Fair (Dollars in thousands) Cost Value Cost Value Due in one year or less $ — $ — $ 9,858 $ 9,808 Due after one year through five years — — 91,009 90,624 Due after five years through ten years — — 370,143 365,751 Due after ten years — — 1,069,640 1,050,884 $ — $ — $ 1,540,650 $ 1,517,067 |
Schedule of information with respect to sales of available‑for‑sale securities | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Securities Available for Sale: Sale proceeds $ 73,054 $ 374,938 $ 137 Gross realized gains $ 31 $ 1,832 $ 122 Gross realized losses (686) (411) — Net realized gain $ (655) $ 1,421 $ 122 |
Schedule of securities with gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position | Less Than Twelve Months Twelve Months or More Gross Gross Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value December 31, 2018: Securities Available for Sale Government-sponsored entities debt $ 100 $ 10,571 $ 652 $ 32,959 State and municipal obligations 760 40,387 365 14,231 Mortgage-backed securities 5,182 405,055 18,951 755,223 $ 6,042 $ 456,013 $ 19,968 $ 802,413 December 31, 2017: Securities Available for Sale Government-sponsored entities debt $ 403 $ 27,442 $ 674 $ 52,324 State and municipal obligations 124 17,400 — — Mortgage-backed securities 4,493 610,051 7,123 322,258 $ 5,020 $ 654,893 $ 7,797 $ 374,582 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans and Allowance for Loan Losses | |
Schedule of changes in allowance for loan losses | Non-acquired Acquired Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Year Ended December 31, 2018: Balance at beginning of period $ 43,448 $ — $ 4,627 $ 48,075 Loans charged-off (6,012) (2,214) — (8,226) Recoveries of loans previously charged off 2,995 305 — 3,300 Net charge-offs (3,017) (1,909) — (4,926) Provision for loan losses charged to operations 10,763 1,909 1,111 13,783 Reduction due to loan removals — — (1,134) (1,134) Balance at end of period $ 51,194 $ — $ 4,604 $ 55,798 Year Ended December 31, 2017: Balance at beginning of period $ 36,960 $ — $ 3,395 $ 40,355 Loans charged-off (5,149) (1,630) — (6,779) Recoveries of loans previously charged off 2,953 477 — 3,430 Net charge-offs (2,196) (1,153) — (3,349) Provision for loan losses charged to operations 8,684 1,153 2,053 11,890 Reduction due to loan removals — — (821) (821) Balance at end of period $ 43,448 $ — $ 4,627 $ 48,075 Year Ended December 31, 2016: Balance at beginning of period $ 34,090 $ — $ 3,706 $ 37,796 Loans charged-off (5,902) (987) — (6,889) Recoveries of loans previously charged off 3,233 318 — 3,551 Net charge-offs (2,669) (669) — (3,338) Provision for loan losses 5,539 669 588 6,796 Benefit attributable to FDIC loss share agreements — — 23 23 Total provision for loan losses charged to operations 5,539 669 611 6,819 Provision for loan losses recorded through the FDIC loss share receivable — — (23) (23) Reduction due to loan removals — — (899) (899) Balance at end of period $ 36,960 $ — $ 3,395 $ 40,355 |
Summary of average investment in impaired loans and interest income recognized on impaired loans | Year Ended December 31, 2018 2017 2016 Average Average Average Investment in Interest Income Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ 40,571 $ 1,201 $ 23,132 $ 1,138 $ 4,657 $ 120 Commercial non-owner occupied 1,200 28 1,091 45 1,129 32 Commercial owner occupied 4,892 288 5,943 268 6,985 291 Consumer real estate: Consumer owner occupied 6,197 212 5,653 195 6,611 206 Home equity loans 2,919 126 2,343 113 992 61 Commercial and industrial 1,224 57 1,209 48 1,375 52 Other income producing property 3,005 155 2,755 171 3,632 145 Consumer 213 1 192 6 123 6 Other loans — — — — 211 — Total Impaired Loans $ 60,221 $ 2,068 $ 42,318 $ 1,984 $ 25,715 $ 913 |
Summary of information pertaining to nonaccrual loans by class | Unpaid Recorded Gross Contractual Investment Recorded Total Principal With No Investment Recorded Related (Dollars in thousands) Balance Allowance With Allowance Investment Allowance December 31, 2018 Commercial real estate: Construction and land development $ 38,314 $ 339 $ 37,574 $ 37,913 $ 788 Commercial non-owner occupied 1,157 536 489 1,025 70 Commercial owner occupied 5,085 3,101 1,041 4,142 27 Consumer real estate: Consumer owner occupied 7,291 4,992 1,769 6,761 41 Home equity loans 2,953 1,129 1,697 2,826 142 Commercial and industrial 1,332 467 824 1,291 416 Other income producing property 3,117 150 2,722 2,872 142 Consumer 211 — 188 188 2 Total $ 59,460 $ 10,714 $ 46,304 $ 57,018 $ 1,628 December 31, 2017 Commercial real estate: Construction and land development $ 47,553 $ 649 $ 42,581 $ 43,230 $ 1,063 Commercial non-owner occupied 3,106 860 515 1,375 125 Commercial owner occupied 9,212 3,553 2,089 5,642 64 Consumer real estate: Consumer owner occupied 7,382 4,392 1,240 5,632 37 Home equity loans 3,602 896 2,115 3,011 135 Commercial and industrial 2,246 635 521 1,156 15 Other income producing property 3,893 — 3,138 3,138 178 Consumer 654 — 239 239 7 Total $ 77,648 $ 10,985 $ 52,438 $ 63,423 $ 1,624 |
Southeastern Bank Financial | |
Loans and Allowance for Loan Losses | |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | January 3, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 78,963 Non-accretable difference (13,072) Cash flows expected to be collected 65,891 Accretable difference (4,910) Carrying value $ 60,981 |
Park Sterling Corporation | |
Loans and Allowance for Loan Losses | |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for PSC (November 30, 2017) for loans accounted for using FASB ASC Topic 310-30. During the second quarter of 2018, the initial fair value of loans at acquisition were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio and the movement in interest rates from the initial valuation. November 30, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 113,584 Non-accretable difference (27,248) Cash flows expected to be collected 86,336 Accretable difference (7,369) Carrying value $ 78,967 |
Non-acquired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | December 31, (Dollars in thousands) 2018 2017 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 841,445 $ 830,875 Commercial non-owner occupied 1,415,551 1,008,893 Total commercial non-owner occupied real estate 2,256,996 1,839,768 Consumer real estate: Consumer owner occupied 1,936,265 1,530,260 Home equity loans 495,148 437,642 Total consumer real estate 2,431,413 1,967,902 Commercial owner occupied real estate 1,517,551 1,262,776 Commercial and industrial 1,054,952 815,187 Other income producing property 214,353 193,847 Consumer 448,664 378,985 Other loans 9,357 33,690 Total non-acquired loans 7,933,286 6,492,155 Less allowance for loan losses (51,194) (43,448) Non-acquired loans, net $ 7,882,092 $ 6,448,707 |
Schedule of changes in allowance for loan losses | Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Year Ended December 31, 2018: Allowance for loan losses: Balance at beginning of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Charge-offs (76) — (659) (80) (215) (500) (2) (4,480) — (6,012) Recoveries 1,340 11 145 132 279 256 21 811 — 2,995 Provision (benefit) (1,503) 2,218 1,755 2,193 120 2,210 52 3,982 (264) 10,763 Balance at end of period $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Loans individually evaluated for impairment $ 788 $ 70 $ 27 $ 41 $ 142 $ 416 $ 142 $ 2 $ — $ 1,628 Loans collectively evaluated for impairment $ 4,894 $ 8,684 $ 9,342 $ 11,872 $ 3,292 $ 7,038 $ 1,304 $ 3,099 $ 41 $ 49,566 Loans: Loans individually evaluated for impairment $ 37,913 $ 1,025 $ 4,142 $ 6,761 $ 2,826 $ 1,291 $ 2,872 $ 188 $ — $ 57,018 Loans collectively evaluated for impairment 803,532 1,414,526 1,513,409 1,929,504 492,322 1,053,661 211,481 448,476 9,357 7,876,268 Total non-acquired loans $ 841,445 $ 1,415,551 $ 1,517,551 $ 1,936,265 $ 495,148 $ 1,054,952 $ 214,353 $ 448,664 $ 9,357 $ 7,933,286 Year Ended December 31, 2017: Allowance for loan losses: Balance at beginning of period $ 4,091 $ 4,980 $ 8,022 $ 7,820 $ 3,211 $ 4,842 $ 1,542 $ 2,350 $ 102 $ 36,960 Charge-offs (546) — — (185) (330) (776) (51) (3,261) — (5,149) Recoveries 968 132 220 306 210 343 85 689 — 2,953 Provision (benefit) 1,408 1,413 (114) 1,727 159 1,079 (201) 3,010 203 8,684 Balance at end of period $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Loans individually evaluated for impairment $ 1,063 $ 125 $ 64 $ 37 $ 135 $ 15 $ 178 $ 7 $ — $ 1,624 Loans collectively evaluated for impairment $ 4,858 $ 6,400 $ 8,064 $ 9,631 $ 3,115 $ 5,473 $ 1,197 $ 2,781 $ 305 $ 41,824 Loans: Loans individually evaluated for impairment $ 43,230 $ 1,375 $ 5,642 $ 5,632 $ 3,011 $ 1,156 $ 3,138 $ 239 $ — $ 63,423 Loans collectively evaluated for impairment 787,645 1,007,518 1,257,134 1,524,628 434,631 814,031 190,709 378,746 33,690 6,428,732 Total non-acquired loans $ 830,875 $ 1,008,893 $ 1,262,776 $ 1,530,260 $ 437,642 $ 815,187 $ 193,847 $ 378,985 $ 33,690 $ 6,492,155 Year Ended December 31, 2016: Allowance for loan losses: Balance at beginning of period $ 4,116 $ 3,568 $ 8,341 $ 7,212 $ 2,929 $ 3,974 $ 1,963 $ 1,694 $ 293 $ 34,090 Charge-offs (159) (111) (118) (226) (808) (876) (7) (3,597) — (5,902) Recoveries 912 512 54 134 299 292 87 943 — 3,233 Provision (benefit) (778) 1,011 (255) 700 791 1,452 (501) 3,310 (191) 5,539 Balance at end of period $ 4,091 $ 4,980 $ 8,022 $ 7,820 $ 3,211 $ 4,842 $ 1,542 $ 2,350 $ 102 $ 36,960 Loans individually evaluated for impairment $ 348 $ 170 $ 67 $ 80 $ 40 $ 386 $ 242 $ 4 $ — $ 1,337 Loans collectively evaluated for impairment $ 3,743 $ 4,810 $ 7,955 $ 7,740 $ 3,171 $ 4,456 $ 1,300 $ 2,346 $ 102 $ 35,623 Loans: Loans individually evaluated for impairment $ 3,033 $ 806 $ 6,245 $ 5,673 $ 1,674 $ 1,263 $ 2,372 $ 145 $ — $ 21,211 Loans collectively evaluated for impairment 577,431 713,909 1,171,500 1,191,948 381,544 670,135 175,866 324,093 13,404 5,219,830 Total non-acquired loans $ 580,464 $ 714,715 $ 1,177,745 $ 1,197,621 $ 383,218 $ 671,398 $ 178,238 $ 324,238 $ 13,404 $ 5,241,041 |
Schedule of credit risk profile by risk grade of loans | Total Non-acquired Loans December 31, December 31, (Dollars in thousands) 2018 2017 Pass $ 7,813,938 $ 6,375,759 Special mention 66,645 78,325 Substandard 52,703 38,071 Doubtful — — $ 7,933,286 $ 6,492,155 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | 30 - 59 Days 60 - 89 Days 90+ Days Total Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans December 31, 2018 Commercial real estate: Construction and land development $ 693 $ 305 $ 452 $ 1,450 $ 839,995 $ 841,445 Commercial non-owner occupied 68 18 396 482 1,415,069 1,415,551 Commercial owner occupied 1,639 1,495 904 4,038 1,513,513 1,517,551 Consumer real estate: Consumer owner occupied 1,460 789 943 3,192 1,933,073 1,936,265 Home equity loans 744 532 713 1,989 493,159 495,148 Commercial and industrial 898 120 573 1,591 1,053,361 1,054,952 Other income producing property 169 26 289 484 213,869 214,353 Consumer 437 174 718 1,329 447,335 448,664 Other loans — — — — 9,357 9,357 $ 6,108 $ 3,459 $ 4,988 $ 14,555 $ 7,918,731 $ 7,933,286 December 31, 2017 Commercial real estate: Construction and land development $ 391 $ 63 $ 401 $ 855 $ 830,020 $ 830,875 Commercial non-owner occupied 297 398 51 746 1,008,147 1,008,893 Commercial owner occupied 2,227 382 1,721 4,330 1,258,446 1,262,776 Consumer real estate: Consumer owner occupied 1,291 140 1,943 3,374 1,526,886 1,530,260 Home equity loans 1,209 372 1,684 3,265 434,377 437,642 Commercial and industrial 477 57 915 1,449 813,738 815,187 Other income producing property 223 255 198 676 193,171 193,847 Consumer 525 196 623 1,344 377,641 378,985 Other loans — — — — 33,690 33,690 $ 6,640 $ 1,863 $ 7,536 $ 16,039 $ 6,476,116 $ 6,492,155 |
Summary of information pertaining to impaired loans | December 31, (Dollars in thousands) 2018 2017 Commercial non-owner occupied real estate: Construction and land development $ 424 $ 357 Commercial non-owner occupied 831 1,144 Total commercial non-owner occupied real estate 1,255 1,501 Consumer real estate: Consumer owner occupied 7,109 5,491 Home equity loans 2,333 2,612 Total consumer real estate 9,442 8,103 Commercial owner occupied real estate 1,068 1,635 Commercial and industrial 647 872 Other income producing property 500 269 Consumer 1,267 1,035 Restructured loans 648 925 Total loans on nonaccrual status $ 14,827 $ 14,340 |
Non-acquired loans | Commercial non-owner occupied real estate | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 832,612 $ 818,240 $ 1,407,744 $ 999,049 $ 1,480,267 $ 1,232,927 Special mention 6,015 8,758 6,427 7,864 24,576 23,575 Substandard 2,818 3,877 1,380 1,980 12,708 6,274 Doubtful — — — — — — $ 841,445 $ 830,875 $ 1,415,551 $ 1,008,893 $ 1,517,551 $ 1,262,776 Commercial & Industrial Other Income Producing Property Commercial Total December 31, December 31, December 31, December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 Pass $ 1,037,915 $ 801,885 $ 208,186 $ 186,158 $ 4,966,724 $ 4,038,259 Special mention 5,887 11,130 4,706 6,034 47,611 57,361 Substandard 11,150 2,172 1,461 1,655 29,517 15,958 Doubtful — — — — — — $ 1,054,952 $ 815,187 $ 214,353 $ 193,847 $ 5,043,852 $ 4,111,578 |
Non-acquired loans | Consumer loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | The following table presents the credit risk profile by risk grade of consumer non‑acquired loans: Consumer Owner Occupied Home Equity Consumer December 31, December 31, December 31, December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 1,909,427 $ 1,502,016 $ 481,607 $ 424,369 $ 446,823 $ 377,425 Special mention 11,304 13,902 7,293 6,749 437 313 Substandard 15,534 14,342 6,248 6,524 1,404 1,247 Doubtful — — — — — — $ 1,936,265 $ 1,530,260 $ 495,148 $ 437,642 $ 448,664 $ 378,985 Other Consumer Total December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Pass $ 9,357 $ 33,690 $ 2,847,214 $ 2,337,500 Special mention — — 19,034 20,964 Substandard — — 23,186 22,113 Doubtful — — — — $ 9,357 $ 33,690 $ 2,889,434 $ 2,380,577 |
Acquired credit impaired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | December 31, (Dollars in thousands) 2018 2017 FASB ASC Topic 310-30 acquired loans: Commercial real estate $ 196,764 $ 234,595 Commercial real estate—construction and development 32,942 49,649 Residential real estate 207,482 260,787 Consumer 42,492 51,453 Commercial and industrial 10,043 26,946 Total FASB ASC Topic 310-30 acquired loans 489,723 623,430 Less allowance for loan losses (4,604) (4,627) FASB ASC Topic 310-30 acquired loans, net $ 485,119 $ 618,803 |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | December 31, (Dollars in thousands) 2018 2017 Contractual principal and interest $ 631,295 $ 795,850 Non-accretable difference (24,818) (39,324) Cash flows expected to be collected 606,477 756,526 Accretable yield (116,754) (133,096) Carrying value $ 489,723 $ 623,430 Allowance for acquired loan losses $ (4,604) $ (4,627) |
Schedule of changes in the carrying value | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of period $ 618,803 $ 602,546 $ 733,870 Fair value of acquired loans — 126,781 — Net reductions for payments, foreclosures, and accretion (133,707) (109,292) (131,635) Change in the allowance for loan losses on acquired loans 23 (1,232) 311 Balance at end of period, net of allowance for loan losses on acquired loans $ 485,119 $ 618,803 $ 602,546 |
Schedule of refined accretable yield balance | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Balance at beginning of period $ 133,096 $ 155,379 $ 201,538 Addition from the SBFC acquisition — 4,910 — Addition from the PSC acquisition — 8,829 — PSC acquisition Day 1 adjustment (1,460) Contractual interest income (33,115) (36,690) (39,873) Accretion on acquired loans (19,004) (20,841) (32,883) Reclass of nonaccretable difference due to improvement in expected cash flows 37,501 21,987 25,808 Other changes, net (264) (478) 789 Balance at end of period $ 116,754 $ 133,096 $ 155,379 |
Schedule of changes in allowance for loan losses | Commercial Real Estate- Commercial Construction and Residential Commercial (Dollars in thousands) Real Estate Development Real Estate Consumer and Industrial Single Pay Total Year Ended December 31, 2018: Allowance for loan losses: Balance, December 31, 2017 $ $ $ $ $ $ — $ Provision for loan losses 657 (892) — Reduction due to loan removals (19) — Balance, December 31, 2018 $ $ $ $ $ $ — $ Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ $ $ $ $ $ — $ Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment — Total acquired credit impaired loans $ $ $ $ $ $ — $ Year Ended December 31, 2017: Allowance for loan losses: Balance, December 31, 2016 $ 41 $ 139 $ 2,419 $ 558 $ 238 $ — $ 3,395 Provision for loan losses 247 163 1,662 (83) 64 — 2,053 Reduction due to loan removals — (122) (528) (14) (157) — (821) Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ — $ 4,627 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 288 $ 180 $ 3,553 $ 461 $ 145 $ — $ 4,627 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 234,595 49,649 260,787 51,453 26,946 — 623,430 Total acquired credit impaired loans $ 234,595 49,649 260,787 51,453 26,946 — 623,430 Year Ended December 31, 2016: Allowance for loan losses: Balance, December 31, 2015 $ 56 $ 177 $ 2,986 $ 313 $ 174 $ — $ 3,706 Provision for loan losses before benefit attributable to FDIC loss share agreements 1 — (129) 533 183 — 588 Benefit attributable to FDIC loss share agreements — — 23 — — — 23 Total provision for loan losses charged to operations 1 — (106) 533 183 — 611 Provision for loan losses recorded through the FDIC loss share receivable — — (23) — — — (23) Reduction due to loan removals (16) (38) (438) (288) (119) — (899) Balance, December 31, 2016 $ 41 $ 139 $ 2,419 $ 558 $ 238 $ — $ 3,395 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 41 $ 139 $ 2,419 $ 558 $ 238 $ — $ 3,395 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 218,821 44,373 258,100 59,300 25,347 — 605,941 Total acquired credit impaired loans $ 218,821 $ 44,373 $ 258,100 $ 59,300 $ 25,347 $ — $ 605,941 * The carrying value of acquired credit impaired loans includes a non‑accretable difference which is primarily associated with the assessment of credit quality of acquired loans. |
Schedule of credit risk profile by risk grade of loans | Commercial Real Estate— Construction and Commercial Real Estate Development December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 Pass $ 160,788 $ 177,231 $ 20,293 $ 29,620 Special mention 14,393 28,708 3,001 5,132 Substandard 21,583 28,656 9,648 14,897 Doubtful — — — — $ 196,764 $ 234,595 $ 32,942 $ 49,649 Residential Real Estate Consumer Commercial & Industrial December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 Pass $ 104,181 $ 135,974 $ 5,751 $ 8,001 $ 5,093 $ 18,522 Special mention 41,964 54,500 14,484 17,214 546 1,169 Substandard 61,337 70,313 22,257 26,238 4,404 7,255 Doubtful — — — — — — $ 207,482 $ 260,787 $ 42,492 $ 51,453 $ 10,043 $ 26,946 Total Acquired Credit Impaired Loans December 31, 2018 2017 Pass $ 296,106 $ 369,348 Special mention 74,388 106,723 Substandard 119,229 147,359 Doubtful — — $ 489,723 $ 623,430 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | 30 - 59 Days 60 - 89 Days 90+ Days Total Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans December 31, 2018 Commercial real estate $ 876 $ 112 $ 4,533 $ 5,521 $ 191,243 $ 196,764 Commercial real estate—construction and development 115 12 2,816 2,943 29,999 32,942 Residential real estate 4,620 1,251 8,487 14,358 193,124 207,482 Consumer 722 90 839 1,651 40,841 42,492 Commercial and industrial 2,437 — 88 2,525 7,518 10,043 $ 8,770 $ 1,465 $ 16,763 $ 26,998 $ 462,725 $ 489,723 December 31, 2017 Commercial real estate $ 2,519 $ 3,669 $ 2,825 $ 9,013 $ 225,582 $ 234,595 Commercial real estate—construction and development 811 427 3,761 4,999 44,650 49,649 Residential real estate 5,895 4,283 8,824 19,002 241,785 260,787 Consumer 989 452 889 2,330 49,123 51,453 Commercial and industrial 596 167 406 1,169 25,777 26,946 $ 10,810 $ 8,998 $ 16,705 $ 36,513 $ 586,917 $ 623,430 |
Acquired non-credit impaired non-accrual loans | |
Loans and Allowance for Loan Losses | |
Summary of information pertaining to nonaccrual loans by class | December 31, (Dollars in thousands) 2018 2017 Commercial non-owner occupied real estate: Construction and land development $ 252 $ 108 Commercial non-owner occupied 283 - Total commercial non-owner occupied real estate 535 108 Consumer real estate: Consumer owner occupied 3,864 2,156 Home equity loans 4,512 4,589 Total consumer real estate 8,376 6,745 Commercial owner occupied real estate 1,470 189 Commercial and industrial 1,296 133 Other income producing property 244 316 Consumer 1,568 1,906 Total loans on nonaccrual status $ 13,489 $ 9,397 |
Acquired non-credit impaired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | December 31, (Dollars in thousands) 2018 2017 FASB ASC Topic 310-20 acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 165,070 $ 403,357 Commercial non-owner occupied 679,253 817,166 Total commercial non-owner occupied real estate 844,323 1,220,523 Consumer real estate: Consumer owner occupied 628,813 710,611 Home equity loans 242,425 320,591 Total consumer real estate 871,238 1,031,202 Commercial owner occupied real estate 421,841 521,818 Commercial and industrial 212,537 398,696 Other income producing property 133,110 196,669 Consumer 111,777 137,710 Other — 1,289 Total FASB ASC Topic 310-20 acquired loans $ 2,594,826 $ 3,507,907 |
Schedule of changes in allowance for loan losses | Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Other Total Year Ended December 31, 2018 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (107) — (28) (70) (436) (1,108) — (465) — (2,214) Recoveries 8 — — 64 102 63 — 68 — 305 Provision (benefit) 99 — 28 6 334 1,045 — 397 — 1,909 Balance, December 31, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 165,070 679,253 421,841 628,813 242,425 212,537 133,110 111,777 — 2,594,826 Total acquired non-credit impaired loans $ 165,070 $ 679,253 $ 421,841 $ 628,813 $ 242,425 $ 212,537 $ 133,110 $ 111,777 $ — $ 2,594,826 Year Ended December 31, 2017 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (82) — — (150) (859) (71) — (468) — (1,630) Recoveries 4 — 2 41 393 6 8 23 — 477 Provision (benefit) 78 — (2) 109 466 65 (8) 445 — 1,153 Balance, December 31, 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 403,357 817,166 521,818 710,611 320,591 398,696 196,669 137,710 1,289 3,507,907 Total acquired non-credit impaired loans $ 403,357 $ 817,166 $ 521,818 $ 710,611 $ 320,591 $ 398,696 $ 196,669 $ 137,710 $ 1,289 $ 3,507,907 Year Ended December 31, 2016 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — 39 — (428) (66) — (532) — (987) Recoveries 4 — — 12 199 9 43 51 — 318 Provision (benefit) (4) — (39) (12) 229 57 (43) 481 — 669 Balance, December 31, 2015 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 10,090 34,628 27,195 408,270 160,879 13,641 39,342 142,654 — 836,699 Total acquired non-credit impaired loans $ 10,090 $ 34,628 $ 27,195 $ 408,270 $ 160,879 $ 13,641 $ 39,342 $ 142,654 $ — $ 836,699 |
Schedule of credit risk profile by risk grade of loans | Total Acquired Non-credit Impaired Loans December 31, (Dollars in thousands) 2018 2017 Pass $ 2,523,010 $ 3,438,030 Special mention 48,716 49,868 Substandard 23,100 20,009 Doubtful — — $ 2,594,826 $ 3,507,907 |
Aging analysis of past due loans (includes nonaccrual loans), segregated by class of loans | 30 - 59 Days 60 - 89 Days 90+ Days Total Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans December 31, 2018 Commercial real estate: Construction and land development $ 647 $ 45 $ 365 $ 1,057 $ 164,013 $ 165,070 Commercial non-owner occupied 607 21 283 911 678,342 679,253 Commercial owner occupied 964 1,006 — 1,970 419,871 421,841 Consumer real estate: Consumer owner occupied 1,127 621 789 2,537 626,276 628,813 Home equity loans 1,286 442 2,209 3,937 238,488 242,425 Commercial and industrial 2,648 130 19 2,797 209,740 212,537 Other income producing property 603 276 129 1,008 132,102 133,110 Consumer 574 209 532 1,315 110,462 111,777 $ $ $ $ $ $ December 31, 2017 Commercial real estate: Construction and land development $ 675 $ 113 $ 101 $ 889 $ 402,468 $ 403,357 Commercial non-owner occupied 12 321 — 333 816,833 817,166 Commercial owner occupied 642 — 189 831 520,987 521,818 Consumer real estate: Consumer owner occupied 673 204 867 1,744 708,867 710,611 Home equity loans 3,639 609 1,704 5,952 314,639 320,591 Commercial and industrial 5,996 1,278 143 7,417 391,279 398,696 Other income producing property 327 — 250 577 196,092 196,669 Consumer 400 114 1,351 1,865 135,845 137,710 Other — — — — 1,289 1,289 $ 12,364 $ 2,639 $ 4,605 $ 19,608 $ 3,488,299 $ 3,507,907 |
Acquired non-credit impaired loans | Commercial non-owner occupied real estate | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Commercial Non-owner Construction & Development Occupied Commercial Owner Occupied December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 163,777 $ 394,139 $ 665,913 $ 809,241 $ 411,783 $ 513,861 Special mention 838 4,602 13,018 7,913 5,664 7,740 Substandard 455 4,616 322 12 4,394 217 Doubtful — — — — — — $ 165,070 $ 403,357 $ 679,253 $ 817,166 $ 421,841 $ 521,818 Other Income Producing Commercial & Industrial Property Commercial Total December 31, December 31, December 31, 2018 2017 2018 2017 2018 2017 Pass $ 202,399 $ 388,342 $ 125,399 $ 191,229 $ 1,569,271 $ 2,296,812 Special mention 6,523 9,883 6,419 4,547 32,462 34,685 Substandard 3,615 471 1,292 893 10,078 6,209 Doubtful — — — — — — $ 212,537 $ 398,696 $ 133,110 $ 196,669 $ 1,611,811 $ 2,337,706 |
Acquired non-credit impaired loans | Consumer loans | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | The following table presents the credit risk profile by risk grade of consumer loans for acquired non‑credit impaired loans: Consumer Owner Occupied Home Equity Consumer December 31, December 31, December 31, (Dollars in thousands) 2018 2017 2018 2017 2018 2017 Pass $ 617,391 $ 703,557 $ 227,515 $ 301,842 $ 108,833 $ 134,530 Special mention 7,868 4,165 7,688 10,477 698 541 Substandard 3,554 2,889 7,222 8,272 2,246 2,639 Doubtful — — — — — — $ 628,813 $ 710,611 $ 242,425 $ 320,591 $ 111,777 $ 137,710 Other Consumer Total December 31, December 31, 2018 2017 2018 2017 Pass $ — $ 1,289 $ 953,739 $ 1,141,218 Special mention — — 16,254 15,183 Substandard — — 13,022 13,800 Doubtful — — — — $ — $ 1,289 $ 983,015 $ 1,170,201 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Real Estate Owned | |
Schedule of information pertaining to OREO | Covered (Dollars in thousands) OREO OREO Total Balance, December 31, 2015 $ 24,803 $ 5,751 $ 30,554 Transfers 4,222 (4,222) — Additions, net 11,842 2,151 13,993 Writedowns (2,270) (2,131) (4,401) Sold (20,281) (1,549) (21,830) Balance, December 31, 2016 — Acquired in Southeastern Bank Financial Corp. acquisition — 385 Acquired in Park Sterling Corp. acquisition — 2,046 Additions, net — 11,558 Writedowns — (2,249) Sold — (18,853) Balance, December 31, 2017 — 11,203 Acquired in Park Sterling Corp. acquisition — 210 Additions, net — 13,391 Writedowns — Sold — Balance, December 31, 2018 $ $ — $ |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Premises and Equipment | |
Schedule of premises and equipment | December 31, (Dollars in thousands) Useful Life 2018 2017 Land $ 77,338 $ 81,291 Buildings and leasehold improvements 15 - 40 years 224,620 227,402 Equipment and furnishings 3 - 10 years 109,468 104,319 Construction in process 3,782 2,305 Total 415,208 415,317 Less accumulated depreciation (174,132) (159,752) $ 241,076 $ 255,565 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Other Intangible Assets | |
Summary of changes in the carrying amounts of goodwill | Year Ended December 31, (Dollars in thousands) 2018 2017 Balance at beginning of period $ 999,586 $ 338,340 Additions: Goodwill from Southeastern Bank Financial acquisition — 258,295 Goodwill from Park Sterling Financial acquisition — 402,951 PSC acquisition Day 1 adjustment 3,314 — Balance at end of period $ 1,002,900 $ 999,586 |
Summary of gross carrying amounts and accumulated amortization of other intangible assets | December 31, (Dollars in thousands) 2018 2017 Gross carrying amount $ 129,770 $ 126,449 Accumulated amortization (66,870) (52,660) $ 62,900 $ 73,789 |
Schedule of estimated amortization expense of intangibles assets | (Dollars in thousands) Year ended December 31: 2019 $ 13,084 2020 11,867 2021 10,584 2022 9,266 2023 6,314 Thereafter 11,785 $ 62,900 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits | |
Schedule of total deposits | December 31, (Dollars in thousands) 2018 2017 Certificates of deposit $ 1,775,095 $ 1,738,384 Interest-bearing demand deposits 5,407,175 5,300,108 Non-interest bearing demand deposits 3,061,769 3,047,432 Savings deposits 1,399,815 1,443,918 Other time deposits 3,079 2,924 Total deposits $ 11,646,933 $ 11,532,766 |
Schedule of maturities of time deposits of all denominations | (Dollars in thousands) Year ended December 31: 2019 $ 1,185,607 2020 349,515 2021 115,223 2022 101,662 2023 21,403 Thereafter 4,764 $ 1,778,174 |
Federal Funds Purchased and S_2
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase | |
Schedule of information concerning federal funds purchased and securities sold under agreements to repurchase | December 31, 2018 2017 2016 (Dollars in thousands) Amount Rate Amount Rate Amount Rate At period-end: Federal funds purchased and securities sold under repurchase agreements $ 270,649 1.08 % $ 286,857 0.45 % $ 313,773 0.24 % Average for the year: Federal funds purchased and securities sold under repurchase agreements $ 312,768 0.75 % $ 325,713 0.33 % $ 320,901 0.18 % Maximum month-end balance: Federal funds purchased and securities sold under repurchase agreements $ 362,047 $ 401,786 $ 334,260 |
Other Borrowings (Tables)
Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Borrowings. | |
Schedule of other borrowings | The Company’s other borrowings were as follows: 2018 2017 Weighted Weighted Interest Average Interest Average Rate at Interest Rate at Interest (Dollars in thousands) Maturity 12/31/2018 Balance Rate 12/31/2017 Balance Rate Short-term borrowings: Federal Home Loan Bank Fixed Rate Credit 1/16/2018 — % $ — 1.40 $ 50,000 Federal Home Loan Bank Fixed Rate Credit 4/27/2018 — % — 1.57 50,000 Federal Home Loan Bank Short Term Advance 12/31/2019 % — — Total short-term borrowings % 100,000 1.48 % Long-term borrowings SCBT Capital Trust I junior subordinated debt (1) 6/15/2035 % % 12,372 SCBT Capital Trust II junior subordinated debt (1) 6/15/2035 % % 8,248 SCBT Capital Trust III junior subordinated debt (1) 7/18/2035 % % 20,619 SAVB Capital Trust I junior subordinated debt (1) 10/7/2033 % % 6,186 SAVB Capital Trust II junior subordinated debt (1) 12/15/2034 % % 4,124 TSB Statutory Trust I junior subordinated debt (1) 3/14/2037 % % 3,093 Southeastern Bank Financial Statutory Trust I junior subordinated debt (1) 12/15/2035 % % 10,310 Southeastern Bank Financial Statutory Trust II junior subordinated debt (1) 6/15/2036 % % 10,310 CSBC Statutory Trust I junior subordinated debt (1) 12/15/2035 % % 15,464 Community Capital Statutory Trust I junior subordinated debt (1) 6/15/2036 % % 10,310 FCRV Statutory Trust I junior subordinated debt (1) 12/15/2036 % % 5,155 Provident Community Bancshares Capital Trust I junior subordinated debt (1) 3/1/2037 % % 4,124 Provident Community Bancshares Capital Trust II junior subordinated debt (1) 10/1/2036 % % 8,248 Fair Market Value Discount Trust Preferred Debt Acquired (4,063) Other Various % % 1,885 Total long-term borrowings % 116,385 % Total borrowings $ 266,084 $ 216,385 (1) All of the junior subordinated debt above is adjustable rate based on three-month LIBOR plus a spread ranging from 140 basis points to 285 basis points. |
Summary of principal maturities of other borrowings | Junior Subordinated FHLB (Dollars in thousands) Debt Advances Other Total Year Ended December 31, 2019 $ — $ $ $ 2020 — — 2021 — — 2022 — — 2023 — — Thereafter — $ $ $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Taxes | |
Schedule of provision for income taxes | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Current: Federal $ 25,275 $ 46,153 $ 37,187 State 6,783 3,018 3,325 Total current tax expense 32,058 49,171 40,512 Deferred: Federal 12,557 31,971 11,684 State 769 109 564 Total deferred tax expense 13,326 32,080 12,248 Provision for income taxes $ 45,384 $ 81,251 $ 52,760 |
Analysis of difference between the provision for income taxes and taxes computed by applying the federal statutory income tax rate to income before provision for income taxes | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Income taxes at federal statutory rate $ 47,094 $ 59,082 $ 53,915 Increase (reduction) of taxes resulting from: State income taxes, net of federal tax benefit 5,916 2,032 2,527 Non-deductible merger expenses — 586 686 Increase in cash surrender value of BOLI policies (1,261) (1,319) (896) Tax-exempt interest (2,037) (2,840) (1,956) Income tax credits (3,118) (1,951) (2,068) Dividends received deduction (5) (12) (12) Revaluation of net deferred tax asset due to tax law change (991) 26,558 — Other, net (214) (885) 564 $ 45,384 $ 81,251 $ 52,760 |
Schedule of components of the net deferred tax asset | December 31, (Dollars in thousands) 2018 2017 Allowance for loan losses $ 12,953 $ 11,011 Other-than-temporary impairment on securities 257 257 Share-based compensation 4,475 3,935 Pension plan and post-retirement benefits 192 607 Deferred compensation 11,841 13,048 Purchase accounting adjustments 28,659 37,078 Other real estate owned 455 838 Tax deductible goodwill — 32 Net operating loss and tax credit carryforwards 11,572 14,066 Cash flow hedge 11 54 Unrealized losses on investment securities available for sale 7,273 3,472 Other 1,665 643 Total deferred tax assets 79,353 85,041 Depreciation 7,314 5,870 Intangible assets 12,617 14,745 Net deferred loan costs 9,409 7,840 Prepaid expense 474 474 Tax deductible goodwill 388 — Mortgage servicing rights 7,608 6,818 Other 840 372 Total deferred tax liabilities 38,650 36,119 Net deferred tax assets before valuation allowance 40,703 48,922 Less, valuation allowance (3,575) (3,020) Net deferred tax assets $ 37,128 $ 45,902 |
Other Expense (Tables)
Other Expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Expense | |
Summary of the components of other noninterest expense | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Business development and staff related $ 9,536 $ 7,449 $ 6,210 Other loan expense 2,028 2,590 2,486 Director and shareholder expense 2,102 1,635 2,004 Armored carrier and courier expense 2,065 1,703 1,470 Property and sales tax 1,760 1,033 1,145 Low income housing tax credit partnership amortization 3,829 3,038 1,487 Other 6,272 6,272 6,529 $ 27,592 $ 23,720 $ 21,331 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Common Share | |
Schedule of computation of basic and diluted earnings per share | Year Ended December 31, (Dollars and shares in thousands, except for per share amounts) 2018 2017 2016 Basic earnings per common share: Net income $ 178,871 $ 87,554 $ 101,282 Weighted-average basic common shares 36,530 29,686 23,998 Basic earnings per common share $ $ $ Diluted earnings per share: Net income $ 178,871 $ 87,554 $ 101,282 Weighted-average basic common shares 36,530 29,686 23,998 Effect of dilutive securities 246 236 221 Weighted-average dilutive shares 36,776 29,922 24,219 Diluted earnings per common share $ 4.86 $ 2.93 $ 4.18 |
Schedule of anti-dilutive securities excluded from computation of diluted earnings per common share | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Number of shares Range of exercise prices $ to $ $ to $ $ to $ |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive income (loss) | Unrealized Gains and Losses Gains and on Securities Losses on Benefit Available Cash Flow (Dollars in thousands) Plans for Sale Hedges Total Balance at December 31, 2015 $ (6,015) $ 2,588 $ (444) $ (3,871) Other comprehensive loss before reclassifications (749) (4,221) (34) (5,004) Amounts reclassified from accumulated other comprehensive income (loss) 569 (75) 170 664 Net comprehensive income (loss) (180) (4,296) 136 (4,340) Balance at December 31, 2016 (6,195) (1,708) (308) (8,211) Other comprehensive loss before reclassifications (365) (2,157) (13) (2,535) Amounts reclassified from accumulated other comprehensive income (loss) 562 (413) 170 319 Net comprehensive income (loss) 197 (2,570) 157 (2,216) Balance at December 31, 2017 (5,998) (4,278) (151) (10,427) Other comprehensive income (loss) before reclassifications 382 (13,479) 33 (13,064) Amounts reclassified from accumulated other comprehensive income 926 510 121 1,557 Net comprehensive income (loss) 1,308 (12,969) 154 (11,507) AOCI reclassification to retained earnings from the adoption of ASU 2018-02 (1,760) (1,147) (40) (2,947) Balance at December 31, 2018 $ (6,450) $ (18,394) $ (37) $ (24,881) |
Schedule of reclassifications out of accumulated other comprehensive income (loss), net of tax | Amount Reclassified from Accumulated (Dollars in thousands) For the Years Ended December 31, Accumulated Other Comprehensive Income (Loss) Component 2018 2017 2016 Income Statement Losses on cash flow hedges: Interest rate contracts $ 155 $ 275 $ 275 Interest expense (34) (105) (105) Provision for income taxes 121 170 170 Net income (Gains) losses on sales of available for sale securities: $ 655 $ (1,421) $ (122) Securities (gains) losses, net (145) 542 47 Provision for income taxes 510 (879) (75) Net income Other-than-temporary impairment losses on available for sale securities: $ — $ 753 $ — Other-than-temporary impairment losses — (287) — Provision for income taxes — 466 — Net income Amortization of defined benefit pension: Actuarial losses $ 1,187 $ 908 $ 920 Salaries and employee benefits (261) (346) (351) Provision for income taxes 926 562 569 Net income Total reclassifications for the period $ 1,557 $ 319 $ 664 |
Retirement Plans (Tables)
Retirement Plans (Tables) - Non-contributory defined benefit pension plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Plans | |
Schedule of the pension plan's funded status and amounts recognized in the company's accompanying consolidated financial statements | December 31, (Dollars in thousands) 2018 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 31,500 $ 28,800 $ 28,260 Service cost 77 127 112 Interest cost 1,080 1,124 1,132 Actuarial (gain) loss (2,442) 2,665 435 Benefits paid (1,188) (1,138) (1,015) Expenses (121) (78) (124) Benefit obligation at end of year 28,906 31,500 28,800 Change in plan assets: Fair value of plan assets at beginning of year 31,387 28,216 27,444 Actual return on plan assets 467 4,387 1,911 Employer contribution — — — Benefits paid (1,188) (1,138) (1,015) Expenses (121) (78) (124) Fair value of plan assets at end of year 30,545 31,387 28,216 Funded (unfunded) status $ 1,639 $ (113) $ (584) |
Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income | December 31, (Dollars in thousands) 2018 2017 2016 Interest cost $ $ 1,124 $ 1,132 Service cost 127 112 Expected return on plan assets (2,213) (2,131) Recognized net actuarial loss 751 816 Net periodic pension benefit (211) (71) Net (gain) loss 491 655 Amortization of net gain (751) (816) Total amount recognized in other comprehensive income (260) (161) Total recognized in net periodic benefit cost and other comprehensive income $ $ (471) $ (232) |
Schedule of accumulated benefit obligations in excess of plan assets | December 31, (Dollars in thousands) 2018 2017 Projected benefit obligation $ 28,906 $ 31,500 Accumulated benefit obligation 28,906 31,500 Fair value of plan assets 30,545 31,387 |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year ended December 31, 2018 2017 2016 Discount rate 3.50 % 4.00 % 4.10 % Expected long-term return on plan assets 7.75 % 7.75 % 7.75 % |
Schedule of long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | Rate of Standard Return Deviation Asset Class Assumption Assumption Cash Equivalents 3.00 % 0.49 % High Grade Fixed Income 5.97 % 3.20 % High Yield Fixed Income 8.20 % 8.37 % International Fixed Income 6.25 % 7.82 % Large Cap Equity 9.93 % 13.48 % Mid Cap Equity 10.91 % 15.87 % Mid/Small Cap Equity 9.76 % 17.11 % Foreign Equity 6.83 % 16.30 % |
Schedule of fair values of the company's pension plan assets | Quoted Prices In Active Significant Markets Other Significant Fair Value for Identical Observable Unobservable December 31, Assets Inputs Inputs (Dollars in thousands) 2018 (Level 1) (Level 2) (Level 3) Money market funds $ 574 $ 574 $ — $ — Broad market fixed income 29,971 29,971 — — Total assets $ 30,545 $ 30,545 $ — $ — |
Schedule of estimated future benefit payments | (Dollars in thousands) 2019 $ 1,360 2020 1,540 2021 1,618 2022 1,640 2023 1,691 2024-2028 8,824 $ 16,673 |
Schedule of expenses incurred and charged against operations with regard to all of the company's retirement plans | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Pension $ $ (351) $ (205) Employee savings plan/ 401(k) 7,381 6,178 Supplemental executive retirement plan 1,334 134 Post-retirement benefits 251 192 $ $ 8,615 $ 6,299 |
Post-Retirement Benefits (Table
Post-Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SCBT Post-retirement Benefit Plan | |
Post-Retirement Benefits | |
Schedule of the plan's funded status and amounts recognized in the Company's accompanying consolidated financial statements | December 31, (Dollars in thousands) 2018 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ $ $ 422 Interest cost 13 Actuarial loss 1 Benefits paid (43) Benefit obligation at end of year 393 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 43 Benefits paid (43) Fair value of plan assets at end of year — — — Funded status $ $ $ (393) |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year Ended December 31, 2018 2017 2016 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 3.80 % 3.20 % 3.50 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.20 % 3.50 % 3.30 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % |
Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest cost $ 10 $ 13 $ 12 Recognized net actuarial loss 6 10 9 Net periodic benefit cost 16 23 21 Net (gain) loss 2 (29) 19 Amortization of gain (10) (9) Total amount recognized in other comprehensive income (39) 10 Total recognized in net periodic benefit cost and other comprehensive income $ 12 $ (16) $ 31 |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | One-Percentage Point (Dollars in thousands) Increase Decrease Effect on total of interest cost $ 1 $ (1) Effect on postretirement benefit obligation 16 (15) |
Schedule of estimated future benefit payments (including expected future service as appropriate) | (Dollars in thousands) 2019 $ 39 2020 37 2021 36 2022 34 2023 32 2024-2028 122 $ 300 |
FFCH Post-retirement Benefit Plan | |
Post-Retirement Benefits | |
Schedule of the plan's funded status and amounts recognized in the Company's accompanying consolidated financial statements | December 31, (Dollars in thousands) 2018 2017 2016 Change in benefit obligation: Benefit obligation at beginning of year $ 2,392 $ 2,447 $ 2,092 Interest cost 73 81 74 Participants’ contributions — — — Actuarial loss 89 126 546 Benefits paid (280) Less: Federal subsidy on benefits paid 13 12 15 Benefit obligation at end of year 2,281 2,392 2,447 Change in plan assets: Fair value of plan assets at beginning of year — — — Employer contribution 286 274 280 Participants’ contributions — — — Benefits paid (280) Fair value of plan assets at end of year — — — Funded status $ $ $ (2,447) |
Schedule of weighted average assumptions used to determine benefit obligations and net periodic benefit cost | Year Ended December 31, 2018 2017 2016 Weighted-average assumptions used to determine benefit obligation at December 31: Discount rate 3.80 % 3.20 % 3.50 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31: Discount rate 3.20 % 3.50 % 3.70 % Assumed health care cost trend rates at December 31: Health care cost trend rate assumed for next year 5.00 % 5.00 % 5.00 % |
Schedule of components of net periodic benefit cost and other amounts recognized in other comprehensive income | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Interest cost $ 73 $ 81 $ 74 Recognized net actuarial loss 154 147 95 Net periodic benefit cost 227 228 169 Net (gain) loss 89 126 546 Amortization of loss (95) Total amount recognized in other comprehensive income 451 Total recognized in net periodic benefit cost and other comprehensive income $ 162 $ 207 $ 620 |
Schedule of effects of one-percentage-point change in assumed health care cost trend rates | One-Percentage Point (Dollars in thousands) Increase Decrease Effect on aggregate service and interest cost $ 5 $ (5) Effect on postretirement benefit obligation 142 (129) |
Schedule of estimated future benefit payments (including expected future service as appropriate) | Estimated future benefit payments (including expected future service as appropriate): (Dollars in thousands) 2019 $ 260 2020 251 2021 242 2022 231 2023 219 2024-2028 879 $ 2,082 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-Based Compensation | |
Schedule of stock option activity | Year Ended December 31, 2018 2017 2016 Weighted Weighted Weighted Average Average Average Exercise Exercise Exercise Shares Price Shares Price Shares Price Outstanding at January 1, 2018 218,689 $ 52.75 246,535 $ 42.53 285,405 $ 38.85 Granted 34,407 91.05 33,634 91.23 25,682 63.79 Exercised (33,424) 30.88 (59,480) 33.03 (63,527) 34.70 Forfeited (5,806) 91.35 (2,000) 26.01 (1,025) 35.20 Outstanding at December 31, 2018 213,866 61.28 218,689 52.75 246,535 42.53 Exercisable at December 31, 2018 140,115 49.41 148,702 41.62 185,758 36.33 Weighted-average fair value of options granted during the year $ 28.01 $ 35.42 $ 25.19 |
Schedule of information pertaining to options outstanding | Options Outstanding Options Exercisable Weighted Weighted Average Average Remaining Weighted Weighted Remaining Range of Number Contractual Average Number Average Contractual Exercise Prices Outstanding Life Exercise Price Outstanding Exercise Price Life $ 26.01 - $ 40.00 52,515 2.2 years $ 31.88 52,508 $ 31.88 $ 40.01 - $ 55.00 24,507 3.9 years $ 41.42 24,507 $ 41.42 $ 55.01 - $ 70.00 74,609 6.1 years $ 63.61 55,423 $ 63.80 $ 70.01 - $ 85.00 — — years $ — — $ — $ 85.01 - $ 91.35 62,235 8.6 years $ 91.12 7,677 $ 90.84 213,866 5.6 years $ 61.28 140,115 $ 49.41 4.3 years |
Schedule of weighted-average assumptions used in valuing options | Year ended December 31, 2018 2017 2016 Dividend yield % % % Expected life years years years Expected volatility % % % Risk-free interest rate % % % |
Summary of nonvested restricted stock | Weighted- Average Grant-Date Restricted Stock Shares Fair Value Nonvested at January 1, 2018 142,692 $ 59.66 Granted 7,836 87.37 Vested (42,342) 55.96 Forfeited (3,767) 81.29 Nonvested at December 31, 2018 104,419 62.45 |
Vesting schedule of shares | Shares 2019 37,574 2020 47,373 2021 3,905 2022 4,174 2023 3,405 Thereafter 7,988 104,419 |
Summary of nonvested RSUs | Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2018 140,036 $ 78.49 Granted 113,270 86.12 Vested (45,775) 66.34 Forfeited (3,778) 91.58 LTIP Adjustment (3,213) 89.40 Nonvested at December 31, 2018 200,540 85.15 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Lease Commitments | |
Schedule of future minimum lease payments, by year and in the aggregate, under noncancellable operating leases with initial or remaining terms in excess of one year | (Dollars in thousands) Year Ended December 31, 2019 $ 7,497 2020 7,580 2021 7,423 2022 6,823 2023 6,123 Thereafter 16,510 $ 51,956 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments with Off-Balance Sheet Risk | |
Schedule of financial instruments of the subsidiary, whose contract amounts represent credit risk | December 31, (Dollars in thousands) 2018 2017 Commitments to extend credit $ 2,748,901 $ 2,905,213 Standby letters of credit and financial guarantees 32,725 30,444 $ 2,781,626 $ 2,935,657 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value | |
Schedule of recorded amount of assets and liabilities measured at fair value on a recurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018: Assets Derivative financial instruments $ 5,090 $ — $ 5,090 $ — Loans held for sale 22,925 — 22,925 — Securities available for sale: Government-sponsored entities debt 48,251 — 48,251 — State and municipal obligations 200,768 — 200,768 — Mortgage-backed securities 1,268,048 — 1,268,048 — Corporate securities — — — — Total securities available for sale 1,517,067 — 1,517,067 — Mortgage servicing rights 34,727 — — 34,727 $ 1,579,809 $ — $ 1,545,082 $ 34,727 Liabilities Derivative financial instruments $ 4,421 $ — $ 4,421 $ — December 31, 2017: Assets Derivative financial instruments $ 3,306 $ — $ 3,306 $ — Loans held for sale 70,890 — 70,890 — Securities available for sale: Government-sponsored entities debt 85,509 — 85,509 — State and municipal obligations 220,437 — 220,437 — Mortgage-backed securities 1,340,687 — 1,340,687 — Corporate securities 1,560 — 1,560 — Total securities available for sale 1,648,193 — 1,648,193 — Mortgage servicing rights 31,119 — — 31,119 $ 1,753,508 $ — $ 1,722,389 $ 31,119 Liabilities Derivative financial instruments $ 3,248 $ — $ 3,248 $ — |
Schedule of reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis | (Dollars in thousands) Assets Liabilities Fair value, January 1, 2018 $ 31,119 $ — Servicing assets that resulted from transfers of financial assets 5,962 — Changes in fair value due to valuation inputs or assumptions 1,861 — Changes in fair value due to decay (4,215) — Fair value , December 31, 2018 $ 34,727 $ — Fair value, January 1, 2017 $ 29,037 $ — Servicing assets that resulted from transfers of financial assets 6,439 — Changes in fair value due to valuation inputs or assumptions (595) — Changes in fair value due to decay (3,762) — Fair value, December 31, 2017 $ 31,119 $ — |
Schedule of amounts of assets and liabilities measured at fair value on a nonrecurring basis | Quoted Prices In Active Significant Markets Other Significant for Identical Observable Unobservable Assets Inputs Inputs (Dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) December 31, 2018: OREO $ 11,410 $ — $ — $ 11,410 Non-acquired impaired loans 13,164 — — 13,164 December 31, 2017: OREO $ 11,203 $ — $ — $ 11,203 Non-acquired impaired loans 10,495 — — 10,495 |
Quantitative Information about Level 3 Fair Value Measurements | Weighted Average December 31, December 31, Valuation Technique Unobservable Input 2018 2017 Nonrecurring measurements: Non-acquired impaired loans Discounted appraisals Collateral discounts 3 % 3 % OREO Discounted appraisals Collateral discounts and estimated costs to sell 23 % 21 % |
Schedule of estimated fair value, and related carrying amount, of the Company's financial instruments | Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 December 31, 2018 Financial assets: Cash and cash equivalents $ 408,983 $ 408,983 $ 408,983 $ — $ — Investment securities 1,542,671 1,542,671 25,604 1,517,067 — Loans held for sale 22,925 22,925 — 22,925 — Loans, net of allowance for loan losses (1) 10,962,037 10,613,571 — — 10,613,571 Accrued interest receivable 35,997 35,997 — 6,908 29,089 Mortgage servicing rights 34,727 34,727 — — 34,727 Interest rate swap - non-designated hedge 3,824 3,824 — 3,824 — Other derivative financial instruments (mortgage banking related) 1,267 1,267 — 1,267 — Financial liabilities: Deposits 11,646,933 10,561,394 — 10,561,394 — Federal funds purchased and securities sold under agreements to repurchase 270,649 270,649 — 270,649 — Other borrowings 266,084 269,134 — 269,134 — Accrued interest payable 4,719 4,719 — 4,719 — Interest rate swap - non-designated hedge 4,373 4,373 — 4,373 — Interest rate swap - cash flow hedge 48 48 — 48 — Off balance sheet financial instruments: Commitments to extend credit — (88,424) — (88,424) — December 31, 2017 Financial assets: Cash and cash equivalents $ 377,627 $ 377,627 $ 377,627 $ — $ — Investment securities 1,673,769 1,673,796 23,047 1,650,749 — Loans held for sale 70,890 70,890 — 70,890 — Loans, net of allowance for loan losses (1) 10,575,417 10,724,264 — — 10,724,264 Accrued interest receivable 32,727 32,727 — 7,051 25,676 Mortgage servicing rights 31,119 31,119 — — 31,119 Interest rate swap - non-designated hedge 2,367 2,367 — 2,367 — Other derivative financial instruments (mortgage banking related) 939 939 — 939 — Financial liabilities: Deposits 11,532,766 10,796,380 — 10,796,380 — Federal funds purchased and securities sold under agreements to repurchase 286,857 286,857 — 286,857 — Other borrowings 216,385 219,421 — 219,421 — Accrued interest payable 2,789 2,789 — 2,789 — Interest rate swap - non-designated hedge 2,750 2,750 — 2,750 — Interest rate swap - cash flow hedge — — Other derivative financial instruments (mortgage banking related) 252 252 — 252 — Off balance sheet financial instruments: Commitments to extend credit — 41,319 — 41,319 — (1) - Loans, net of allowance for loan losses is being valued using a different method at December 31, 2018 from December 31, 2017. See page F-74 for explanation of change in method. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Ratios | |
Schedule of actual and required capital ratios | The following table presents actual and required capital ratios as of December 31, 2018 for the Company and the Bank under the Basel III capital rules. The minimum required capital amounts presented include the minimum required capital levels as of December 31, 2018 based on the phase-in provisions of the Basel III Capital Rules and the minimum required capital levels as of January 1, 2019 when the Basel III Capital Rules have been fully phased-in. Capital levels required for the Bank to be considered well capitalized are based upon prompt corrective action regulations, as amended to reflect the changes under the Basel III Capital Rules. Minimum Capital Minimum Capital Required to be Required - Basel III Required - Basel III Considered Well Actual Phase-In Schedule Fully Phased In Capitalized (Dollars in thousands) Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2018 Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,335,826 12.05 % $ 706,981 6.38 % $ 776,293 7.00 % $ 720,844 6.50 % South State Bank (the Bank) 1,427,764 12.87 % 707,039 6.38 % 776,356 7.00 % 720,902 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,447,428 13.05 % 873,330 7.88 % 942,642 8.50 % 887,192 8.00 % South State Bank (the Bank) 1,427,764 12.87 % 873,401 7.88 % 942,718 8.50 % 887,264 8.00 % Total capital to risk-weighted assets: Consolidated 1,503,561 13.56 % 1,095,128 9.88 % 1,164,440 10.50 % 1,108,990 10.00 % South State Bank (the Bank) 1,483,897 13.38 % 1,095,217 9.88 % 1,164,534 10.50 % 1,109,080 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,447,428 10.65 % 543,506 4.00 % 543,506 4.00 % 679,383 5.00 % South State Bank (the Bank) 1,427,764 10.51 % 543,387 4.00 % 543,387 4.00 % 679,234 5.00 % December 31, 2017: Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,273,547 11.59 % $ 631,811 5.75 % $ 769,162 7.00 % $ 714,221 6.50 % South State Bank (the Bank) 1,360,603 12.38 % 631,741 5.75 % 769,077 7.00 % 714,143 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,384,433 12.60 % 796,632 7.25 % 933,982 8.50 % 879,042 8.00 % South State Bank (the Bank) 1,360,603 12.38 % 796,544 7.25 % 933,879 8.50 % 878,945 8.00 % Total capital to risk-weighted assets: Consolidated 1,432,843 13.04 % 1,016,392 9.25 % 1,153,742 10.50 % 1,098,802 10.00 % South State Bank (the Bank) 1,409,014 12.82 % 1,016,280 9.25 % 1,153,615 10.50 % 1,098,681 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,384,433 10.36 % 534,460 4.00 % 534,460 4.00 % 668,075 5.00 % South State Bank (the Bank) 1,360,603 10.18 % 534,390 4.00 % 534,390 4.00 % 667,987 5.00 % |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Statements of Parent Company | |
Schedule of condensed balance sheet | December 31, (Dollars in thousands) 2018 2017 ASSETS Cash $ $ 25,879 Investment in subsidiary 2,399,744 Other assets 1,111 Total assets $ $ 2,426,734 LIABILITIES AND SHAREHOLDERS’ EQUITY Liabilities $ $ 117,813 Shareholders’ equity 2,308,921 Total liabilities and shareholders’ equity $ $ 2,426,734 |
Schedule of condensed statements of income | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Income: Dividends from subsidiary $ $ 63,703 $ 36,328 Operating income 580 177 Total income 64,283 36,505 Operating expenses 15,482 12,688 Income before income tax benefit and equity in undistributed earnings of subsidiaries 48,801 23,817 Applicable income tax benefit 5,053 4,270 Equity in undistributed earnings of subsidiary (excess distribution) 33,700 73,195 Net income available to common shareholders $ $ 87,554 $ 101,282 |
Schedule of condensed statements of cash flows | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Cash flows from operating activities: Net income $ $ 87,554 $ 101,282 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 666 222 Share-based compensation 6,934 6,220 Gain on sale of securities available for sale — (486) (122) Decrease (increase) in other assets (1,564) 26 (Decrease) increase in other liabilities (6,341) 3,750 Undistributed earnings of subsidiary (33,700) (73,195) Net cash provided by operating activities 53,063 38,183 Cash flows from investing activities: Proceeds from sales and calls of other investment securities — 687 137 Net cash inflow from acquisitions — 15,468 — Net cash provided by investing activities — 16,155 137 Cash flows from financing activities: Repayment of other borrowings — (30,000) — Common stock issuance 1,056 925 Common stock repurchased (5,512) (5,981) Dividends paid on common stock (38,623) (29,285) Stock options exercised 1,965 2,204 Net cash used in financing activities (71,114) (32,137) Net increase (decrease) in cash and cash equivalents (1,896) 6,183 Cash and cash equivalents at beginning of period 27,775 21,592 Cash and cash equivalents at end of period $ $ 25,879 $ 27,775 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Financial Instruments | |
Derivative financial instruments summary | December 31, 2018 December 31, 2017 Balance Sheet Notional Estimated Fair Value Notional Estimated Fair Value (Dollars in thousands) Location Amount Gain Loss Amount Gain Loss Cash flow hedges of interest rate risk: Pay fixed rate swap with counterparty Other Liabilities $ 8,000 $ — $ 48 $ 8,000 $ — $ 246 Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets $ 2,824 $ — $ 51 $ 2,824 $ — $ 92 Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities $ 368,513 $ 3,105 $ 4,193 $ 275,736 $ 1,899 $ 2,658 Matched interest rate swaps with counterparty Other Assets and Other Liabilities $ 368,513 $ 718 $ 129 $ 275,736 $ 468 $ — Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Assets $ 94,500 $ 1,184 $ — $ 94,000 $ — $ 252 Forward sales commitments used to hedge mortgage pipeline Other Assets $ 54,533 $ 83 $ — $ 89,317 939 $ — Total derivatives $ 896,883 $ 5,090 $ 4,421 $ 745,613 $ 3,306 $ 3,248 |
Schedule of notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline | December 31, (Dollars in thousands) 2018 2017 Mortgage loan pipeline $ $ 71,477 Expected closures 53,608 Fair value of mortgage loan pipeline commitments 920 Forward sales commitments 89,317 Fair value of forward commitments 19 |
Loan Servicing, Mortgage Orig_2
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Summary of changes in the fair value of MSRs and its offsetting hedge | Year Ended December 31, (Dollars in thousands) 2018 2017 2016 Increase (decrease) in fair value of MSRs $ 1,861 $ (595) $ 560 Decay of MSRs (3,762) (4,153) Gain (loss) related to derivatives 200 (402) Net effect on statements of income $ $ (4,157) $ (3,995) |
Schedule of characteristics and sensitivity analysis of the MSR | December 31, (Dollars in thousands) 2018 2017 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.8 % 99.7 % Adjustable-rate mortgage loans 0.2 % 0.3 % Total 100.0 % 100.0 % Weighted average life 7.88 years 7.64 years Constant Prepayment rate (CPR) 7.3 % 7.7 % Weighted average discount rate 9.4 % 9.6 % Effect on fair value due to change in interest rates 25 basis point increase $ 1,504 $ 1,485 50 basis point increase 2,740 2,664 25 basis point decrease (1,981) (1,850) 50 basis point decrease (4,421) (4,014) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Operations, Segments - (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($)subsidiarytrustcounty | |
Nature of Operations | |
Number of unconsolidated subsidiaries | subsidiary | 13 |
Investment in unconsolidated subsidiaries | |
Nature of Operations | |
Number of trusts | trust | 13 |
Trust preferred securities to be issued | $ 115 |
SCBT Capital Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 12 |
SCBT Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | 8 |
SCBT Capital Trust III | |
Nature of Operations | |
Trust preferred securities to be issued | 20 |
TSB Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 3 |
SAVB Capital Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 6 |
SAVB Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | 4 |
SBFST Capital Trust ! | |
Nature of Operations | |
Trust preferred securities to be issued | 10 |
SBFST Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | 10 |
Provident Community Bancshares Capital Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 4 |
FCRV Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 5 |
Community Capital Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 10 |
CSBC Statutory Trust I | |
Nature of Operations | |
Trust preferred securities to be issued | 15 |
Provident Community Bancshares Capital Trust II | |
Nature of Operations | |
Trust preferred securities to be issued | $ 8 |
South Carolina | |
Nature of Operations | |
Number of counties | county | 29 |
NORTH CAROLINA | |
Nature of Operations | |
Number of counties | county | 9 |
Northeast Georgia | |
Nature of Operations | |
Number of counties | county | 19 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Concentrations of Credit Risk- (Details) - Concentrations of Credit Risk $ in Millions | Dec. 31, 2018USD ($)item |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold (as a percent) | 25.00% |
Concentration risk threshold, total risk-based capital threshold | $ 375.9 |
Number of credit concentrations for non-acquired credit impaired loans | item | 3 |
Lessors of residential and buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | $ 609.3 |
Lessors of nonresidential buildings | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | 1,300 |
Loans on hotels and motels | |
Concentrations of Credit Risk | |
Concentration risk threshold, total risk-based capital threshold | $ 457.2 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - FDIC Indemnification Asset - (Details) - USD ($) | Jun. 23, 2016 | Mar. 31, 2016 | Dec. 31, 2016 |
FDIC Indemnification Asset | |||
Pre- tax charge | $ 4,400,000 | ||
Payment to settle FDIC loss share agreements | $ 2,300,000 | ||
Amortization of FDIC indemnification asset, net | $ 2,100,000 | $ 5,902,000 | |
Payments to (from) FDIC | $ 853,000 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Intangible assets, Transfer of financial assets (Details) | Apr. 30, 2018USD ($) | Dec. 31, 2018USD ($)item |
Intangible Assets | ||
Number of reportable operating segments | item | 2 | |
Impairment Charges | $ | $ 0 | $ 0 |
Minimum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 2 years | |
Maximum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 15 years | |
Core deposit intangibles | Minimum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 10 years | |
Core deposit intangibles | Maximum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 13 years | |
Noncompete intangibles | Minimum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 2 years | |
Noncompete intangibles | Maximum | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 3 years | |
Client list intangibles | ||
Intangible Assets | ||
Estimated useful lives of intangibles | 15 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue from Contracts with Customers (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Number of active contracts | 809,000 | |||
Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | $ 113,600 | |||
Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | 19,200 | |||
ASU 2016- 02 | ||||
Disaggregation of Revenue [Line Items] | ||||
Right to use asset | $ 82,000 | |||
Lease liabilities | $ 82,000 | |||
Interchange and debit card transaction fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | 20,900 | $ 26,500 | $ 22,700 | |
Interchange and debit card transaction fees | Before 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Transaction fees | 33,000 | 35,600 | 31,800 | |
Network costs | 12,100 | 9,100 | 9,100 | |
Trust and investment services income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | 30,229 | $ 25,401 | $ 19,764 | |
Deposit account services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contract with customers | $ 82,600 |
Mergers and Acquisitions - (Det
Mergers and Acquisitions - (Details) $ in Thousands | Nov. 30, 2017USD ($)shares | Jan. 03, 2017USD ($)shares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Mergers and Acquisitions | ||||
Deferred tax assets | $ 79,353 | $ 85,041 | ||
Deferred Tax Liabilities, Gross | $ 38,650 | $ 36,119 | ||
Park Sterling Corporation | ||||
Mergers and Acquisitions | ||||
Fixed exchange ratio for shares issued (in shares) | 0.14 | |||
Common stock shares issued | shares | 7,480,343 | |||
Total purchase price | $ 692,959 | |||
Value of stock options | $ 4,305 | |||
Southeastern Bank Financial | ||||
Mergers and Acquisitions | ||||
Fixed exchange ratio for shares issued (in shares) | 0.7307 | |||
Common stock shares issued | shares | 4,978,338 | |||
Total purchase price | $ 435,115 | |||
Value of stock options | $ 490 |
Mergers and Acquisitions- Park
Mergers and Acquisitions- Park & SBFC - (Details) - USD ($) | Nov. 30, 2017 | Jan. 03, 2017 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Federal funds purchased and securities sold under agreements to repurchase | $ 286,857,000 | $ 270,649,000 | $ 286,857,000 | $ 286,857,000 | |||
Goodwill | 999,586,000 | 1,002,900,000 | 999,586,000 | 999,586,000 | $ 338,340,000 | ||
Additional information | |||||||
Provisional income tax expense | 26,600,000 | 26,600,000 | |||||
Proforma amounts | |||||||
Total revenues (net interest income plus noninterest income), Pro Forma | 690,716,000 | 684,532,000 | |||||
Net operating income available to the common shareholder, Pro Forma | 146,821,000 | 164,479,000 | |||||
Park Sterling Corporation | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | $ 116,454,000 | ||||||
Investment securities | 462,924,000 | ||||||
Loans held for sale | 70,882,000 | ||||||
Loans, net of allowance and mark | 2,241,326,000 | ||||||
Premises and equipment | 55,790,000 | ||||||
Intangible assets | 29,496,000 | ||||||
OREO and repossessed assets | 2,330,000 | ||||||
Bank owned life insurance | 72,703,000 | ||||||
Deferred tax asset. | 31,682,000 | ||||||
Other assets | 21,119,000 | ||||||
Total assets | 3,104,706,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 561,874,000 | ||||||
Interest-bearing | 1,888,890,000 | ||||||
Total deposits | 2,450,764,000 | ||||||
Other borrowings | 340,938,000 | ||||||
Other liabilities | 26,310,000 | ||||||
Total liabilities | 2,818,012,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 286,694,000 | ||||||
Goodwill | 406,265,000 | ||||||
Net assets acquired over liabilities assumed | $ 692,959,000 | ||||||
Consideration: | |||||||
Common stock shares issued | 7,480,343 | ||||||
Purchase price per share of the SSB's common stock | $ 92.05 | ||||||
SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) | $ 688,654,000 | ||||||
Common stock issued | 688,566,000 | ||||||
Price per fractional share | 88 | ||||||
Cash paid for stock options outstanding | 4,305,000 | ||||||
Fair value of total consideration transferred | 692,959,000 | ||||||
Additional information | |||||||
Allowance for loan losses | 12,500,000 | ||||||
Fair value mark on loans | $ 21,300,000 | ||||||
Interest rate on core deposit intangibles (in %) | 1.66% | ||||||
Goodwill write-off | $ 73,100,000 | ||||||
Premium for fixed maturity time deposits | 2,300,000 | ||||||
Fair value mark on fixed maturity time deposits | 253,000 | ||||||
Fair value adjustment on Trust Preferred Securities | 2,400,000 | ||||||
Discount on trust preferred securities | 14,000,000 | ||||||
Fair value adjustments to employee benefit plans | 1,500,000 | ||||||
Merger-related costs | 44,500,000 | $ 28,600,000 | 44,500,000 | 44,500,000 | |||
Provision for loan losses | $ 3,500,000 | ||||||
Proforma amounts | |||||||
Total revenues (net interest income plus noninterest income), Pro Forma | 14,052,000 | ||||||
Net operating income available to the common shareholder, Pro Forma | 4,829,000 | ||||||
Park Sterling Corporation | As previously recorded by acquiree | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | 116,454,000 | ||||||
Investment securities | 461,261,000 | ||||||
Loans held for sale | 2,200,000 | ||||||
Loans, net of allowance and mark | 2,346,612,000 | ||||||
Premises and equipment | 61,059,000 | ||||||
Intangible assets | 73,090,000 | ||||||
OREO and repossessed assets | 2,549,000 | ||||||
Bank owned life insurance | 72,703,000 | ||||||
Deferred tax asset. | 17,963,000 | ||||||
Other assets | 21,595,000 | ||||||
Total assets | 3,175,486,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 561,874,000 | ||||||
Interest-bearing | 1,886,810,000 | ||||||
Total deposits | 2,448,684,000 | ||||||
Other borrowings | 329,249,000 | ||||||
Other liabilities | 24,179,000 | ||||||
Total liabilities | 2,802,112,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 373,374,000 | ||||||
Net assets acquired over liabilities assumed | 373,374,000 | ||||||
Park Sterling Corporation | Initial Fair Value Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Investment securities | 1,444,000 | ||||||
Loans held for sale | 68,686,000 | ||||||
Loans, net of allowance and mark | (95,878,000) | ||||||
Premises and equipment | (4,882,000) | ||||||
Intangible assets | (46,915,000) | ||||||
OREO and repossessed assets | (429,000) | ||||||
Deferred tax asset. | 11,596,000 | ||||||
Other assets | (476,000) | ||||||
Total assets | (66,854,000) | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Interest-bearing | 2,692,000 | ||||||
Total deposits | 2,692,000 | ||||||
Other borrowings | 11,689,000 | ||||||
Other liabilities | 2,131,000 | ||||||
Total liabilities | 16,512,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (83,366,000) | ||||||
Goodwill | 402,951,000 | ||||||
Net assets acquired over liabilities assumed | 319,585,000 | ||||||
Additional information | |||||||
Adjustment to acquired loans portfolio | 70,400,000 | ||||||
Park Sterling Corporation | Subsequent Fair Value Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Investment securities | 219,000 | ||||||
Loans held for sale | (4,000) | ||||||
Loans, net of allowance and mark | (9,408,000) | ||||||
Premises and equipment | (387,000) | ||||||
Intangible assets | 3,321,000 | ||||||
OREO and repossessed assets | 210,000 | ||||||
Deferred tax asset. | 2,123,000 | ||||||
Total assets | (3,926,000) | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Interest-bearing | (612,000) | ||||||
Total deposits | (612,000) | ||||||
Total liabilities | (612,000) | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (3,314,000) | ||||||
Goodwill | $ 3,314,000 | ||||||
Southeastern Bank Financial | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | $ 72,043,000 | ||||||
Investment securities | 590,054,000 | ||||||
Loans held for sale | 13,652,000 | ||||||
Loans, net of allowance and mark | 1,049,950,000 | ||||||
Premises and equipment | 24,077,000 | ||||||
Intangible assets | 18,120,000 | ||||||
OREO and repossessed assets | 450,000 | ||||||
Bank owned life insurance | 44,513,000 | ||||||
Deferred tax asset. | 16,075,000 | ||||||
Other assets | 7,063,000 | ||||||
Total assets | 1,835,997,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 262,967,000 | ||||||
Interest-bearing | 1,257,953,000 | ||||||
Total deposits | 1,520,920,000 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,014,000 | ||||||
Other borrowings | 109,500,000 | ||||||
Other liabilities | 27,743,000 | ||||||
Total liabilities | 1,659,177,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 176,820,000 | ||||||
Goodwill | 258,295,000 | ||||||
Net assets acquired over liabilities assumed | $ 435,115,000 | ||||||
Consideration: | |||||||
Common stock shares issued | 4,978,338 | ||||||
Purchase price per share of the SSB's common stock | $ 87.30 | ||||||
SSB common stock issued ($688,566) and cash exchanged for fractional shares ($88) | $ 434,625,000 | ||||||
Common stock issued | 434,609 | ||||||
Price per fractional share | 16 | ||||||
Cash paid for stock options outstanding | 490,000 | ||||||
Fair value of total consideration transferred | 435,115,000 | ||||||
Additional information | |||||||
Adjustment to acquired loans portfolio | 30,700,000 | ||||||
Allowance for loan losses | 20,100,000 | ||||||
Discount on trust preferred securities | 2,100,000 | ||||||
Federal Home Loan Bank, Advances, Premium | 1,000,000 | ||||||
Fair value adjustments to employee benefit plans | 8,300,000 | ||||||
Adjustment of other miscellaneous liabilities | 496,000 | ||||||
Provision for loan losses | 325,000 | ||||||
Proforma amounts | |||||||
Total revenues (net interest income plus noninterest income), Pro Forma | 67,823,000 | ||||||
Net operating income available to the common shareholder, Pro Forma | 25,790,000 | ||||||
Southeastern Bank Financial | As previously recorded by acquiree | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Cash and cash equivalents | 72,043,000 | ||||||
Investment securities | 591,824,000 | ||||||
Loans held for sale | 13,652,000 | ||||||
Loans, net of allowance and mark | 1,060,618,000 | ||||||
Premises and equipment | 25,419,000 | ||||||
Intangible assets | 140,000 | ||||||
OREO and repossessed assets | 580,000 | ||||||
Bank owned life insurance | 44,513,000 | ||||||
Deferred tax asset. | 16,247,000 | ||||||
Other assets | 7,545,000 | ||||||
Total assets | 1,832,581,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Noninterest-bearing | 262,967,000 | ||||||
Interest-bearing | 1,257,953,000 | ||||||
Total deposits | 1,520,920,000 | ||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,014,000 | ||||||
Other borrowings | 110,620,000 | ||||||
Other liabilities | 19,980,000 | ||||||
Total liabilities | 1,652,534,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | 180,047,000 | ||||||
Net assets acquired over liabilities assumed | 180,047,000 | ||||||
Southeastern Bank Financial | Initial Fair Value Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Investment securities | (1,770,000) | ||||||
Loans, net of allowance and mark | (10,668,000) | ||||||
Premises and equipment | (2,212,000) | ||||||
Intangible assets | 17,980,000 | ||||||
OREO and repossessed assets | (30,000) | ||||||
Deferred tax asset. | (687,000) | ||||||
Other assets | (482,000) | ||||||
Total assets | 2,131,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Other borrowings | (1,120,000) | ||||||
Other liabilities | 5,553,000 | ||||||
Total liabilities | 4,433,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (2,302,000) | ||||||
Goodwill | 257,370,000 | ||||||
Net assets acquired over liabilities assumed | 255,068,000 | ||||||
Southeastern Bank Financial | Subsequent Fair Value Adjustments | |||||||
Business Combination Recognized Identifiable Assets Acquired [Abstract] | |||||||
Premises and equipment | 870,000 | ||||||
OREO and repossessed assets | (100,000) | ||||||
Deferred tax asset. | 515,000 | ||||||
Total assets | 1,285,000 | ||||||
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Deposit Liabilities [Abstract] | |||||||
Other liabilities | 2,210,000 | ||||||
Total liabilities | 2,210,000 | ||||||
Net identifiable assets acquired over (under) liabilities assumed | (925,000) | ||||||
Goodwill | $ 925,000 | ||||||
Southeastern Bank Financial Corporation And Park Sterling Corporation | |||||||
Additional information | |||||||
Merger-related costs | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Investment Securities - Amortiz
Investment Securities - Amortized cost and fair value for held to maturity securities - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment securities held to maturity | ||
Amortized Cost | $ 2,529 | |
Fair Value | $ 0 | 2,556 |
State and municipal obligations | ||
Investment securities held to maturity | ||
Amortized Cost | 2,529 | |
Gross Unrealized Gains | 27 | |
Fair Value | $ 2,556 |
Investment Securities - Amort_2
Investment Securities - Amortized cost and fair value for available for sale securities - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment securities available for sale | ||
Amortized cost | $ 1,540,650 | $ 1,655,107 |
Gross Unrealized Gains | 2,427 | 5,903 |
Gross Unrealized Losses | (26,010) | (12,817) |
Fair Value | 1,517,067 | 1,648,193 |
Government-sponsored entities debt | ||
Investment securities available for sale | ||
Amortized cost | 48,982 | 86,535 |
Gross Unrealized Gains | 21 | 51 |
Gross Unrealized Losses | (752) | (1,077) |
Fair Value | 48,251 | 85,509 |
State and municipal obligations | ||
Investment securities available for sale | ||
Amortized cost | 200,184 | 216,812 |
Gross Unrealized Gains | 1,709 | 3,749 |
Gross Unrealized Losses | (1,125) | (124) |
Fair Value | 200,768 | 220,437 |
Mortgage-backed securities | ||
Investment securities available for sale | ||
Amortized cost | 1,291,484 | 1,350,200 |
Gross Unrealized Gains | 697 | 2,103 |
Gross Unrealized Losses | (24,133) | (11,616) |
Fair Value | 1,268,048 | 1,340,687 |
Corporate securities. | ||
Investment securities available for sale | ||
Amortized cost | 1,560 | |
Fair Value | $ 1,560 | |
Mortgage-backed securities issued by private label holdings | ||
Investment securities available for sale | ||
Fair Value | $ 0 |
Investment Securities - Amort_3
Investment Securities - Amortized cost and fair value of other investment securities - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other investment securities | |||
Carrying Value | $ 25,604 | $ 23,047 | |
Amortized Cost | |||
Due in one year or less | 9,858 | ||
Due after one year through five years | 91,009 | ||
Due after five years through ten years | 370,143 | ||
Due after ten years | 1,069,640 | ||
Fair Value | 1,540,650 | 1,655,107 | |
Fair Value | |||
Due in one year or less | 9,808 | ||
Due after one year through five years | 90,624 | ||
Due after five years through ten years | 365,751 | ||
Due after ten years | 1,050,884 | ||
Fair Value | 1,517,067 | 1,648,193 | |
Information with respect to sales of available-for-sale securities | |||
Sale proceeds | 73,054 | 374,938 | $ 137 |
Gross realized gains | 31 | 1,832 | 122 |
Gross realized losses | (686) | (411) | |
Net realized gain | (655) | 1,421 | 122 |
Information with respect to sales of Held to Maturity | |||
Proceeds from Sale of Held-to-maturity Securities | 0 | 0 | $ 0 |
Amortized Cost | |||
Total | 2,529 | ||
Fair Value | |||
Fair Value | 0 | 2,556 | |
Investment in Federal Home Loan Bank Stock [Member] | |||
Other investment securities | |||
Carrying Value | 19,524 | 16,967 | |
Investment in unconsolidated subsidiaries | |||
Other investment securities | |||
Carrying Value | 3,563 | 3,563 | |
Other nonmarketable investment securities | |||
Other investment securities | |||
Carrying Value | $ 2,517 | $ 2,517 |
Investment Securities - Securit
Investment Securities - Securities with gross unrealized losses - (Details) $ in Thousands | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) |
Investment Securities | ||
Number of securities with gross unrealized loss | item | 384 | |
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | $ 6,042 | $ 5,020 |
Twelve Months or More | 19,968 | 7,797 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 456,013 | 654,893 |
Twelve Months or More | 802,413 | 374,582 |
Government-sponsored entities debt | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 100 | 403 |
Twelve Months or More | 652 | 674 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 10,571 | 27,442 |
Twelve Months or More | 32,959 | 52,324 |
State and municipal obligations | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 760 | 124 |
Twelve Months or More | 365 | |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 40,387 | 17,400 |
Twelve Months or More | 14,231 | |
Mortgage-backed securities | ||
Securities Available for Sale, Gross Unrealized Losses | ||
Less Than Twelve Months | 5,182 | 4,493 |
Twelve Months or More | 18,951 | 7,123 |
Securities Available for Sale, Fair Value | ||
Less Than Twelve Months | 405,055 | 610,051 |
Twelve Months or More | $ 755,223 | $ 322,258 |
Investment Securities - Additio
Investment Securities - Additional disclosures - (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Additional disclosures | ||
Carrying value of investment securities pledged to secure public funds deposits and for other purposes required and permitted by law | $ 888.8 | $ 766 |
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 205.3 | $ 211.1 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of non acquired loans - (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Loans and Allowance for Loan Losses | ||||
Loans, net | $ 10,962,037,000 | $ 10,575,417,000 | ||
Deferred fees | 697,000 | 466,000,000,000 | ||
Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 7,933,286,000 | 6,492,155,000 | $ 5,241,041,000 | |
Less allowance for non-acquired loan losses | (51,194,000) | (43,448,000) | (36,960,000) | $ (34,090,000) |
Loans, net | 7,882,092,000 | 6,448,707,000 | ||
Commercial non-owner occupied real estate | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,256,996,000 | 1,839,768,000 | ||
Commercial non-owner occupied real estate | Construction and land development | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 841,445,000 | 830,875,000 | 580,464,000 | |
Less allowance for non-acquired loan losses | (5,682,000) | (5,921,000) | (4,091,000) | (4,116,000) |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,415,551,000 | 1,008,893,000 | 714,715,000 | |
Less allowance for non-acquired loan losses | (8,754,000) | (6,525,000) | (4,980,000) | (3,568,000) |
Consumer loans | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,431,413,000 | 1,967,902,000 | ||
Consumer loans | Home equity loans | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 495,148,000 | 437,642,000 | 383,218,000 | |
Less allowance for non-acquired loan losses | (3,434,000) | (3,250,000) | (3,211,000) | (2,929,000) |
Commercial and industrial | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,054,952,000 | 815,187,000 | 671,398,000 | |
Less allowance for non-acquired loan losses | (7,454,000) | (5,488,000) | (4,842,000) | (3,974,000) |
Other income producing property | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 214,353,000 | 193,847,000 | 178,238,000 | |
Less allowance for non-acquired loan losses | (1,446,000) | (1,375,000) | (1,542,000) | (1,963,000) |
Consumer | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 448,664,000 | 378,985,000 | 324,238,000 | |
Less allowance for non-acquired loan losses | $ (3,101,000) | $ (2,788,000) | $ (2,350,000) | $ (1,694,000) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of acquired non credit impaired loans - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | $ 489,723 | $ 623,430 | $ 78,967 | $ 605,941 | |
Less allowance for loan losses | (4,604) | (4,627) | (3,395) | $ (3,706) | |
Acquired loans, net | 485,119 | 618,803 | 602,546 | 733,870 | |
Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 2,594,826 | 3,507,907 | |||
Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 489,723 | 623,430 | |||
Less allowance for loan losses | (4,604) | (4,627) | |||
Acquired loans, net | 485,119 | 618,803 | |||
Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 2,594,826 | 3,507,907 | |||
Residential real estate | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 207,482 | 260,787 | |||
Residential real estate | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 207,482 | 260,787 | 258,100 | ||
Less allowance for loan losses | (2,246) | (3,553) | (2,419) | (2,986) | |
Residential real estate | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 207,482 | 260,787 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 844,323 | 1,220,523 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 421,841 | 521,818 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 421,841 | 521,818 | |||
Consumer loans | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 42,492 | 51,453 | 59,300 | ||
Less allowance for loan losses | (761) | (461) | (558) | (313) | |
Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 871,238 | 1,031,202 | |||
Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 983,015 | 1,170,201 | |||
Commercial and industrial | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 10,043 | 26,946 | |||
Commercial and industrial | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 10,043 | 26,946 | 25,347 | ||
Less allowance for loan losses | (79) | (145) | (238) | (174) | |
Commercial and industrial | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 212,537 | 398,696 | |||
Commercial and industrial | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 10,043 | 26,946 | |||
Commercial and industrial | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 212,537 | 398,696 | |||
Other income producing property | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 133,110 | 196,669 | |||
Other income producing property | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 133,110 | 196,669 | |||
Consumer | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 42,492 | 51,453 | |||
Consumer | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 42,492 | 51,453 | |||
Consumer | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 111,777 | 137,710 | |||
Consumer | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 42,492 | 51,453 | |||
Consumer | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 111,777 | 137,710 | |||
Commercial loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 1,611,811 | 2,337,706 | |||
Other loans | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 1,289 | ||||
Other loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 1,289 | ||||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 32,942 | 49,649 | 44,373 | ||
Less allowance for loan losses | (717) | (180) | (139) | (177) | |
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 165,070 | 403,357 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 32,942 | 49,649 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 165,070 | 403,357 | |||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 196,764 | 234,595 | 218,821 | ||
Less allowance for loan losses | (801) | (288) | $ (41) | $ (56) | |
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 679,253 | 817,166 | |||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 196,764 | 234,595 | |||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 679,253 | 817,166 | |||
Home equity loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 242,425 | 320,591 | |||
Home equity loans | Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 242,425 | 320,591 | |||
Other Consumer | Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 111,777 | 137,710 | |||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | 628,813 | 710,611 | |||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | |||||
Loans and Allowance for Loan Losses | |||||
Carrying value | $ 628,813 | $ 710,611 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Table of loan payment estimates - (Details) - USD ($) $ in Thousands | Nov. 30, 2017 | Jan. 03, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | $ 113,584 | $ 631,295 | $ 795,850 | |||
Non-accretable difference | (27,248) | (24,818) | (39,324) | |||
Cash flows expected to be collected | 86,336 | 606,477 | 756,526 | |||
Accretable difference | (7,369) | (116,754) | (133,096) | |||
Carrying value | 78,967 | 489,723 | 623,430 | $ 605,941 | ||
Allowance for loan losses on acquired loans | (4,604) | (4,627) | (3,395) | $ (3,706) | ||
Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 2,594,826 | 3,507,907 | ||||
Acquired non-credit impaired loans accounted under FASB 310 20 | Park Sterling Corporation | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | 2,200,000 | |||||
After fair value adjustment | 2,100,000 | |||||
Fair value adjustment | $ 46,500,000 | |||||
Acquired non-credit impaired loans accounted under FASB 310 20 | Southeastern Bank Financial | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | $ 78,963 | |||||
Non-accretable difference | (13,072) | |||||
Cash flows expected to be collected | 65,891 | |||||
Accretable difference | (4,910) | |||||
Carrying value | 60,981 | |||||
Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 489,723 | 623,430 | ||||
Allowance for loan losses on acquired loans | (4,604) | (4,627) | ||||
Acquired loans accounted under FASB ASC 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | 2,600,000 | 3,600,000 | ||||
After fair value adjustment | 2,600,000 | 3,500,000 | ||||
Fair value adjustment | 33,400 | 65,400 | ||||
Acquired credit impaired and non-impaired loans accounted under FASB ASC Topic 310-20 | Southeastern Bank Financial | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Contractual principal and interest | 1,000,000 | |||||
After fair value adjustment | 986,500 | |||||
Fair value adjustment | $ 18,800 | |||||
Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 2,594,826 | 3,507,907 | ||||
Residential real estate | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 207,482 | 260,787 | ||||
Residential real estate | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 207,482 | 260,787 | 258,100 | |||
Allowance for loan losses on acquired loans | (2,246) | (3,553) | (2,419) | (2,986) | ||
Residential real estate | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 207,482 | 260,787 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 844,323 | 1,220,523 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 421,841 | 521,818 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 421,841 | 521,818 | ||||
Consumer loans | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 42,492 | 51,453 | 59,300 | |||
Allowance for loan losses on acquired loans | (761) | (461) | (558) | (313) | ||
Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 871,238 | 1,031,202 | ||||
Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 983,015 | 1,170,201 | ||||
Commercial and industrial | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 10,043 | 26,946 | ||||
Commercial and industrial | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 10,043 | 26,946 | 25,347 | |||
Allowance for loan losses on acquired loans | (79) | (145) | (238) | (174) | ||
Commercial and industrial | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 212,537 | 398,696 | ||||
Commercial and industrial | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 10,043 | 26,946 | ||||
Commercial and industrial | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 212,537 | 398,696 | ||||
Other income producing property | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 133,110 | 196,669 | ||||
Other income producing property | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 133,110 | 196,669 | ||||
Consumer | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 42,492 | 51,453 | ||||
Consumer | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 42,492 | 51,453 | ||||
Consumer | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 111,777 | 137,710 | ||||
Consumer | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 42,492 | 51,453 | ||||
Consumer | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 111,777 | 137,710 | ||||
Commercial loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 1,611,811 | 2,337,706 | ||||
Other loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 1,289 | |||||
Other loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 1,289 | |||||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 32,942 | 49,649 | 44,373 | |||
Allowance for loan losses on acquired loans | (717) | (180) | (139) | (177) | ||
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 165,070 | 403,357 | ||||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 32,942 | 49,649 | ||||
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 165,070 | 403,357 | ||||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 196,764 | 234,595 | 218,821 | |||
Allowance for loan losses on acquired loans | (801) | (288) | $ (41) | $ (56) | ||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 679,253 | 817,166 | ||||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 196,764 | 234,595 | ||||
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 679,253 | 817,166 | ||||
Home equity loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 242,425 | 320,591 | ||||
Home equity loans | Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 242,425 | 320,591 | ||||
Other Consumer | Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 111,777 | 137,710 | ||||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | 628,813 | 710,611 | ||||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | ||||||
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans | ||||||
Carrying value | $ 628,813 | $ 710,611 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Changes in the carrying value of acquired credit impaired loans - (Details) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Decline in accretable yield balance | $ 16,300,000 | |||
Percentage of loss adjustment based on most current collateral value | 90 | |||
Maximum | ||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Threshold limit of loans for risk assessment by loan officers | $ 500,000 | |||
Minimum | ||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Threshold limit of loans for risk assessment by loan officers | 100,000 | |||
Acquired credit impaired loans | ||||
Changes in the carrying value of acquired loans at the acquisition date | ||||
Balance at the beginning of the period | 618,803,000 | $ 602,546,000 | $ 733,870,000 | |
Fair value of acquired loans | 126,781,000 | |||
Net reductions for payments, foreclosures, and accretion | (133,707,000) | (109,292,000) | (131,635,000) | |
Change in the allowance for loan losses on acquired loans | (23,000) | 1,232,000 | (311,000) | |
Balance at the end of the period | 733,870,000 | 485,119,000 | 618,803,000 | 602,546,000 |
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Balance at beginning of period | 133,096,000 | 155,379,000 | 201,538,000 | |
PSC acquisition Day 1 adjustment | (1,460,000) | |||
Contractual interest income | (33,115,000) | (36,690,000) | (39,873,000) | |
Accretion on acquired loans | (19,004,000) | (20,841,000) | (32,883,000) | |
Reclass of nonaccretable difference due to improvement in expected cash flows | 37,501,000 | 21,987,000 | 25,808,000 | |
Other changes, net | (264,000) | (478,000) | 789,000 | |
Balance at end of period | $ 201,538,000 | $ 116,754,000 | 133,096,000 | $ 155,379,000 |
Acquired credit impaired loans | Southeastern Bank Financial | ||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Addition from acquisition | 4,910,000 | |||
Acquired credit impaired loans | Park Sterling Corporation | ||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Addition from acquisition | $ 8,829,000 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Aggregated analysis of the changes in allowance for loan losses - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Changes in allowance for loan losses | |||
Balance at beginning of period | $ 48,075 | $ 40,355 | $ 37,796 |
Loans charged-off | (8,226) | (6,779) | (6,889) |
Recoveries of loans previously charged off | 3,300 | 3,430 | 3,551 |
Net charge-offs | (4,926) | (3,349) | (3,338) |
Benefits attributable to FDIC loss share agreements | 23 | ||
Provision for loan losses charged to operations | 6,819 | ||
Provision for loan losses recorded through the FDIC loss share receivable | (23) | ||
Reduction due to loan removals | (1,134) | (821) | (899) |
Balance at end of period | 55,798 | 48,075 | 40,355 |
Non-acquired loans | |||
Changes in allowance for loan losses | |||
Balance at beginning of period | 43,448 | 36,960 | 34,090 |
Loans charged-off | (6,012) | (5,149) | (5,902) |
Recoveries of loans previously charged off | 2,995 | 2,953 | 3,233 |
Net charge-offs | (3,017) | (2,196) | (2,669) |
Provision for loan losses charged to operations | 10,763 | 8,684 | 5,539 |
Balance at end of period | 51,194 | 43,448 | 36,960 |
Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (2,214) | (1,630) | (987) |
Recoveries of loans previously charged off | 305 | 477 | 318 |
Net charge-offs | (1,909) | (1,153) | (669) |
Provision for loan losses charged to operations | 1,909 | 1,153 | 669 |
Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Balance at beginning of period | 4,627 | 3,395 | 3,706 |
Benefits attributable to FDIC loss share agreements | 23 | ||
Provision for loan losses charged to operations | 611 | ||
Provision for loan losses recorded through the FDIC loss share receivable | (23) | ||
Reduction due to loan removals | (1,134) | (821) | (899) |
Balance at end of period | 4,604 | 4,627 | 3,395 |
Residential real estate | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Benefits attributable to FDIC loss share agreements | 23 | ||
Provision for loan losses charged to operations | (106) | ||
Provision for loan losses recorded through the FDIC loss share receivable | (23) | ||
Reduction due to loan removals | (415) | (528) | (438) |
Commercial owner occupied real estate loan | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (659) | (118) | |
Recoveries of loans previously charged off | 145 | 220 | 54 |
Provision for loan losses charged to operations | 1,755 | (114) | (255) |
Consumer loans | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Provision for loan losses charged to operations | 533 | ||
Reduction due to loan removals | (3) | (14) | (288) |
Commercial and industrial | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (500) | (776) | (876) |
Recoveries of loans previously charged off | 256 | 343 | 292 |
Provision for loan losses charged to operations | 2,210 | 1,079 | 1,452 |
Commercial and industrial | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (1,108) | (71) | (66) |
Recoveries of loans previously charged off | 63 | 6 | 9 |
Provision for loan losses charged to operations | 1,045 | 65 | 57 |
Commercial and industrial | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Provision for loan losses charged to operations | 183 | ||
Reduction due to loan removals | (577) | (157) | (119) |
Other income producing property | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (2) | (51) | (7) |
Recoveries of loans previously charged off | 21 | 85 | 87 |
Provision for loan losses charged to operations | 52 | (201) | (501) |
Other income producing property | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Recoveries of loans previously charged off | 8 | 43 | |
Provision for loan losses charged to operations | (8) | (43) | |
Consumer | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (4,480) | (3,261) | (3,597) |
Recoveries of loans previously charged off | 811 | 689 | 943 |
Provision for loan losses charged to operations | 3,982 | 3,010 | 3,310 |
Consumer | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (465) | (468) | (532) |
Recoveries of loans previously charged off | 68 | 23 | 51 |
Provision for loan losses charged to operations | 397 | 445 | 481 |
Other loans | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Provision for loan losses charged to operations | (264) | 203 | (191) |
Construction and land development | Commercial non-owner occupied real estate | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (76) | (546) | (159) |
Recoveries of loans previously charged off | 1,340 | 968 | 912 |
Provision for loan losses charged to operations | (1,503) | 1,408 | (778) |
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Reduction due to loan removals | (120) | (122) | (38) |
Construction and land development | Commercial loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (107) | (82) | |
Recoveries of loans previously charged off | 8 | 4 | 4 |
Provision for loan losses charged to operations | 99 | 78 | (4) |
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (111) | ||
Recoveries of loans previously charged off | 11 | 132 | 512 |
Provision for loan losses charged to operations | 2,218 | 1,413 | 1,011 |
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans | |||
Changes in allowance for loan losses | |||
Provision for loan losses charged to operations | 1 | ||
Reduction due to loan removals | (19) | (16) | |
Other commercial non-owner occupied real estate | Commercial loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (28) | ||
Recoveries of loans previously charged off | 2 | ||
Provision for loan losses charged to operations | 28 | (2) | (39) |
Home equity loans | Consumer loans | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (215) | (330) | (808) |
Recoveries of loans previously charged off | 279 | 210 | 299 |
Provision for loan losses charged to operations | 120 | 159 | 791 |
Home equity loans | Consumer loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (436) | (859) | (428) |
Recoveries of loans previously charged off | 102 | 393 | 199 |
Provision for loan losses charged to operations | 334 | 466 | 229 |
Consumer Owner Occupied Loans | Consumer loans | Non-acquired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (80) | (185) | (226) |
Recoveries of loans previously charged off | 132 | 306 | 134 |
Provision for loan losses charged to operations | 2,193 | 1,727 | 700 |
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | |||
Changes in allowance for loan losses | |||
Loans charged-off | (70) | (150) | |
Recoveries of loans previously charged off | 64 | 41 | 12 |
Provision for loan losses charged to operations | $ 6 | $ 109 | $ (12) |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Disaggregated analysis of activity in for allowances for non acquired loans - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for loan losses: | |||
Charge-offs | $ (8,226) | $ (6,779) | $ (6,889) |
Recoveries | 3,300 | 3,430 | 3,551 |
Provision (benefit) | 6,819 | ||
Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 43,448 | 36,960 | 34,090 |
Charge-offs | (6,012) | (5,149) | (5,902) |
Recoveries | 2,995 | 2,953 | 3,233 |
Provision (benefit) | 10,763 | 8,684 | 5,539 |
Balance at end of period | 51,194 | 43,448 | 36,960 |
Loans individually evaluated for impairment | 1,628 | 1,624 | 1,337 |
Loans collectively evaluated for impairment | 49,566 | 41,824 | 35,623 |
Loans: | |||
Loans individually evaluated for impairment | 57,018 | 63,423 | 21,211 |
Loans collectively evaluated for impairment | 7,876,268 | 6,428,732 | 5,219,830 |
Total loans | 7,933,286 | 6,492,155 | 5,241,041 |
Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Charge-offs | (2,214) | (1,630) | (987) |
Recoveries | 305 | 477 | 318 |
Provision (benefit) | 1,909 | 1,153 | 669 |
Loans: | |||
Loans collectively evaluated for impairment | 2,594,826 | 3,507,907 | 836,699 |
Total loans | 2,594,826 | 3,507,907 | 836,699 |
Commercial non-owner occupied real estate | Non-acquired loans | |||
Loans: | |||
Total loans | 2,256,996 | 1,839,768 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | |||
Allowance for loan losses: | |||
Balance at beginning of period | 5,921 | 4,091 | 4,116 |
Charge-offs | (76) | (546) | (159) |
Recoveries | 1,340 | 968 | 912 |
Provision (benefit) | (1,503) | 1,408 | (778) |
Balance at end of period | 5,682 | 5,921 | 4,091 |
Loans individually evaluated for impairment | 788 | 1,063 | 348 |
Loans collectively evaluated for impairment | 4,894 | 4,858 | 3,743 |
Loans: | |||
Loans individually evaluated for impairment | 37,913 | 43,230 | 3,033 |
Loans collectively evaluated for impairment | 803,532 | 787,645 | 577,431 |
Total loans | 841,445 | 830,875 | 580,464 |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | |||
Allowance for loan losses: | |||
Balance at beginning of period | 6,525 | 4,980 | 3,568 |
Charge-offs | (111) | ||
Recoveries | 11 | 132 | 512 |
Provision (benefit) | 2,218 | 1,413 | 1,011 |
Balance at end of period | 8,754 | 6,525 | 4,980 |
Loans individually evaluated for impairment | 70 | 125 | 170 |
Loans collectively evaluated for impairment | 8,684 | 6,400 | 4,810 |
Loans: | |||
Loans individually evaluated for impairment | 1,025 | 1,375 | 806 |
Loans collectively evaluated for impairment | 1,414,526 | 1,007,518 | 713,909 |
Total loans | 1,415,551 | 1,008,893 | 714,715 |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans: | |||
Loans collectively evaluated for impairment | 679,253 | 817,166 | 34,628 |
Total loans | 679,253 | 817,166 | 34,628 |
Commercial owner occupied real estate loan | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 8,128 | 8,022 | 8,341 |
Charge-offs | (659) | (118) | |
Recoveries | 145 | 220 | 54 |
Provision (benefit) | 1,755 | (114) | (255) |
Balance at end of period | 9,369 | 8,128 | 8,022 |
Loans individually evaluated for impairment | 27 | 64 | 67 |
Loans collectively evaluated for impairment | 9,342 | 8,064 | 7,955 |
Loans: | |||
Loans individually evaluated for impairment | 4,142 | 5,642 | 6,245 |
Loans collectively evaluated for impairment | 1,513,409 | 1,257,134 | 1,171,500 |
Total loans | 1,517,551 | 1,262,776 | 1,177,745 |
Consumer loans | Non-acquired loans | |||
Loans: | |||
Total loans | 2,431,413 | 1,967,902 | |
Consumer loans | Non-acquired loans | Home equity loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 3,250 | 3,211 | 2,929 |
Charge-offs | (215) | (330) | (808) |
Recoveries | 279 | 210 | 299 |
Provision (benefit) | 120 | 159 | 791 |
Balance at end of period | 3,434 | 3,250 | 3,211 |
Loans individually evaluated for impairment | 142 | 135 | 40 |
Loans collectively evaluated for impairment | 3,292 | 3,115 | 3,171 |
Loans: | |||
Loans individually evaluated for impairment | 2,826 | 3,011 | 1,674 |
Loans collectively evaluated for impairment | 492,322 | 434,631 | 381,544 |
Total loans | 495,148 | 437,642 | 383,218 |
Consumer loans | Non-acquired loans | Other Consumer | |||
Loans: | |||
Total loans | 9,357 | 33,690 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 9,668 | 7,820 | 7,212 |
Charge-offs | (80) | (185) | (226) |
Recoveries | 132 | 306 | 134 |
Provision (benefit) | 2,193 | 1,727 | 700 |
Balance at end of period | 11,913 | 9,668 | 7,820 |
Loans individually evaluated for impairment | 41 | 37 | 80 |
Loans collectively evaluated for impairment | 11,872 | 9,631 | 7,740 |
Loans: | |||
Loans individually evaluated for impairment | 6,761 | 5,632 | 5,673 |
Loans collectively evaluated for impairment | 1,929,504 | 1,524,628 | 1,191,948 |
Total loans | 1,936,265 | 1,530,260 | 1,197,621 |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | |||
Allowance for loan losses: | |||
Charge-offs | (436) | (859) | (428) |
Recoveries | 102 | 393 | 199 |
Provision (benefit) | 334 | 466 | 229 |
Loans: | |||
Loans collectively evaluated for impairment | 242,425 | 320,591 | 160,879 |
Total loans | 242,425 | 320,591 | 160,879 |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||
Allowance for loan losses: | |||
Charge-offs | (70) | (150) | |
Recoveries | 64 | 41 | 12 |
Provision (benefit) | 6 | 109 | (12) |
Loans: | |||
Loans collectively evaluated for impairment | 628,813 | 710,611 | 408,270 |
Total loans | 628,813 | 710,611 | 408,270 |
Commercial and industrial | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 5,488 | 4,842 | 3,974 |
Charge-offs | (500) | (776) | (876) |
Recoveries | 256 | 343 | 292 |
Provision (benefit) | 2,210 | 1,079 | 1,452 |
Balance at end of period | 7,454 | 5,488 | 4,842 |
Loans individually evaluated for impairment | 416 | 15 | 386 |
Loans collectively evaluated for impairment | 7,038 | 5,473 | 4,456 |
Loans: | |||
Loans individually evaluated for impairment | 1,291 | 1,156 | 1,263 |
Loans collectively evaluated for impairment | 1,053,661 | 814,031 | 670,135 |
Total loans | 1,054,952 | 815,187 | 671,398 |
Commercial and industrial | Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Charge-offs | (1,108) | (71) | (66) |
Recoveries | 63 | 6 | 9 |
Provision (benefit) | 1,045 | 65 | 57 |
Loans: | |||
Loans collectively evaluated for impairment | 212,537 | 398,696 | 13,641 |
Total loans | 212,537 | 398,696 | 13,641 |
Other income producing property | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 1,375 | 1,542 | 1,963 |
Charge-offs | (2) | (51) | (7) |
Recoveries | 21 | 85 | 87 |
Provision (benefit) | 52 | (201) | (501) |
Balance at end of period | 1,446 | 1,375 | 1,542 |
Loans individually evaluated for impairment | 142 | 178 | 242 |
Loans collectively evaluated for impairment | 1,304 | 1,197 | 1,300 |
Loans: | |||
Loans individually evaluated for impairment | 2,872 | 3,138 | 2,372 |
Loans collectively evaluated for impairment | 211,481 | 190,709 | 175,866 |
Total loans | 214,353 | 193,847 | 178,238 |
Other income producing property | Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Recoveries | 8 | 43 | |
Provision (benefit) | (8) | (43) | |
Loans: | |||
Loans collectively evaluated for impairment | 133,110 | 196,669 | 39,342 |
Total loans | 133,110 | 196,669 | 39,342 |
Consumer | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 2,788 | 2,350 | 1,694 |
Charge-offs | (4,480) | (3,261) | (3,597) |
Recoveries | 811 | 689 | 943 |
Provision (benefit) | 3,982 | 3,010 | 3,310 |
Balance at end of period | 3,101 | 2,788 | 2,350 |
Loans individually evaluated for impairment | 2 | 7 | 4 |
Loans collectively evaluated for impairment | 3,099 | 2,781 | 2,346 |
Loans: | |||
Loans individually evaluated for impairment | 188 | 239 | 145 |
Loans collectively evaluated for impairment | 448,476 | 378,746 | 324,093 |
Total loans | 448,664 | 378,985 | 324,238 |
Consumer | Acquired non-credit impaired loans | |||
Allowance for loan losses: | |||
Charge-offs | (465) | (468) | (532) |
Recoveries | 68 | 23 | 51 |
Provision (benefit) | 397 | 445 | 481 |
Loans: | |||
Loans collectively evaluated for impairment | 111,777 | 137,710 | 142,654 |
Total loans | 111,777 | 137,710 | 142,654 |
Commercial loans | Non-acquired loans | |||
Loans: | |||
Total loans | 5,043,852 | 4,111,578 | |
Commercial loans | Acquired non-credit impaired loans | Construction and land development | |||
Allowance for loan losses: | |||
Charge-offs | (107) | (82) | |
Recoveries | 8 | 4 | 4 |
Provision (benefit) | 99 | 78 | (4) |
Loans: | |||
Loans collectively evaluated for impairment | 165,070 | 403,357 | 10,090 |
Total loans | 165,070 | 403,357 | 10,090 |
Commercial loans | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Allowance for loan losses: | |||
Charge-offs | (28) | ||
Charge-offs (added back) | 39 | ||
Recoveries | 2 | ||
Provision (benefit) | 28 | (2) | (39) |
Loans: | |||
Loans collectively evaluated for impairment | 421,841 | 521,818 | 27,195 |
Total loans | 421,841 | 521,818 | 27,195 |
Other loans | Non-acquired loans | |||
Allowance for loan losses: | |||
Balance at beginning of period | 305 | 102 | 293 |
Provision (benefit) | (264) | 203 | (191) |
Balance at end of period | 41 | 305 | 102 |
Loans collectively evaluated for impairment | 41 | 305 | 102 |
Loans: | |||
Loans collectively evaluated for impairment | 9,357 | 33,690 | 13,404 |
Total loans | $ 9,357 | 33,690 | $ 13,404 |
Other loans | Acquired non-credit impaired loans | |||
Loans: | |||
Loans collectively evaluated for impairment | 1,289 | ||
Total loans | $ 1,289 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Disaggregated analysis of activity in the allowance for acquired credit impaired loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 30, 2017 | |
Allowance for loan losses: | ||||
Provision (benefit) for loan losses | $ 13,783 | $ 11,890 | $ 6,796 | |
Benefits attributable to FDIC loss share agreements | 23 | |||
Provision for loan losses recorded through the FDIC loss share receivable | (23) | |||
Reduction due to loan removals | (1,134) | (821) | (899) | |
Non-acquired loans | ||||
Allowance for loan losses: | ||||
Provision (benefit) for loan losses | 10,763 | 8,684 | 5,539 | |
Loans individually evaluated for impairment | 1,628 | 1,624 | 1,337 | |
Loans collectively evaluated for impairment | 49,566 | 41,824 | 35,623 | |
Loans: | ||||
Loans individually evaluated for impairment | 57,018 | 63,423 | 21,211 | |
Loans collectively evaluated for impairment | 7,876,268 | 6,428,732 | 5,219,830 | |
Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 4,627 | 3,395 | 3,706 | |
Provision (benefit) for loan losses | 1,111 | 2,053 | 588 | |
Benefits attributable to FDIC loss share agreements | 23 | |||
Provision for loan losses recorded through the FDIC loss share receivable | (23) | |||
Reduction due to loan removals | (1,134) | (821) | (899) | |
Balance at the end of the period | 4,604 | 4,627 | 3,395 | |
Loans collectively evaluated for impairment | 4,604 | 4,627 | 3,395 | |
Loans: | ||||
Loans collectively evaluated for impairment | 489,723 | 623,430 | 605,941 | |
Carrying value | 489,723 | 623,430 | 605,941 | $ 78,967 |
Acquired non-credit impaired loans | ||||
Allowance for loan losses: | ||||
Provision (benefit) for loan losses | 1,909 | 1,153 | 669 | |
Loans: | ||||
Loans collectively evaluated for impairment | 2,594,826 | 3,507,907 | 836,699 | |
Carrying value | 2,594,826 | 3,507,907 | ||
Residential real estate | ||||
Loans: | ||||
Carrying value | 207,482 | 260,787 | ||
Residential real estate | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 3,553 | 2,419 | 2,986 | |
Provision (benefit) for loan losses | (892) | 1,662 | (129) | |
Benefits attributable to FDIC loss share agreements | 23 | |||
Provision for loan losses recorded through the FDIC loss share receivable | (23) | |||
Reduction due to loan removals | (415) | (528) | (438) | |
Balance at the end of the period | 2,246 | 3,553 | 2,419 | |
Loans collectively evaluated for impairment | 2,246 | 3,553 | 2,419 | |
Loans: | ||||
Loans collectively evaluated for impairment | 207,482 | 260,787 | 258,100 | |
Carrying value | 207,482 | 260,787 | 258,100 | |
Commercial non-owner occupied real estate | Construction and land development | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 788 | 1,063 | 348 | |
Loans collectively evaluated for impairment | 4,894 | 4,858 | 3,743 | |
Loans: | ||||
Loans individually evaluated for impairment | 37,913 | 43,230 | 3,033 | |
Loans collectively evaluated for impairment | 803,532 | 787,645 | 577,431 | |
Commercial non-owner occupied real estate | Construction and land development | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 180 | 139 | 177 | |
Provision (benefit) for loan losses | 657 | 163 | ||
Reduction due to loan removals | (120) | (122) | (38) | |
Balance at the end of the period | 717 | 180 | 139 | |
Loans collectively evaluated for impairment | 717 | 180 | 139 | |
Loans: | ||||
Loans collectively evaluated for impairment | 32,942 | 49,649 | 44,373 | |
Carrying value | 32,942 | 49,649 | 44,373 | |
Commercial non-owner occupied real estate | Construction and land development | Acquired non-credit impaired loans | ||||
Loans: | ||||
Carrying value | 165,070 | 403,357 | ||
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 70 | 125 | 170 | |
Loans collectively evaluated for impairment | 8,684 | 6,400 | 4,810 | |
Loans: | ||||
Loans individually evaluated for impairment | 1,025 | 1,375 | 806 | |
Loans collectively evaluated for impairment | 1,414,526 | 1,007,518 | 713,909 | |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 288 | 41 | 56 | |
Provision (benefit) for loan losses | 532 | 247 | 1 | |
Reduction due to loan removals | (19) | (16) | ||
Balance at the end of the period | 801 | 288 | 41 | |
Loans collectively evaluated for impairment | 801 | 288 | 41 | |
Loans: | ||||
Loans collectively evaluated for impairment | 196,764 | 234,595 | 218,821 | |
Carrying value | 196,764 | 234,595 | 218,821 | |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 679,253 | 817,166 | 34,628 | |
Carrying value | 679,253 | 817,166 | ||
Consumer loans | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 461 | 558 | 313 | |
Provision (benefit) for loan losses | 303 | (83) | 533 | |
Reduction due to loan removals | (3) | (14) | (288) | |
Balance at the end of the period | 761 | 461 | 558 | |
Loans collectively evaluated for impairment | 761 | 461 | 558 | |
Loans: | ||||
Loans collectively evaluated for impairment | 42,492 | 51,453 | 59,300 | |
Carrying value | 42,492 | 51,453 | 59,300 | |
Consumer loans | Acquired non-credit impaired loans | ||||
Loans: | ||||
Carrying value | 983,015 | 1,170,201 | ||
Consumer loans | Home equity loans | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 142 | 135 | 40 | |
Loans collectively evaluated for impairment | 3,292 | 3,115 | 3,171 | |
Loans: | ||||
Loans individually evaluated for impairment | 2,826 | 3,011 | 1,674 | |
Loans collectively evaluated for impairment | 492,322 | 434,631 | 381,544 | |
Consumer loans | Home equity loans | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 242,425 | 320,591 | 160,879 | |
Carrying value | 242,425 | 320,591 | ||
Commercial and industrial | ||||
Loans: | ||||
Carrying value | 10,043 | 26,946 | ||
Commercial and industrial | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 416 | 15 | 386 | |
Loans collectively evaluated for impairment | 7,038 | 5,473 | 4,456 | |
Loans: | ||||
Loans individually evaluated for impairment | 1,291 | 1,156 | 1,263 | |
Loans collectively evaluated for impairment | 1,053,661 | 814,031 | 670,135 | |
Commercial and industrial | Acquired credit impaired loans | ||||
Allowance for loan losses: | ||||
Balance at the beginning of the period | 145 | 238 | 174 | |
Provision (benefit) for loan losses | 511 | 64 | 183 | |
Reduction due to loan removals | (577) | (157) | (119) | |
Balance at the end of the period | 79 | 145 | 238 | |
Loans collectively evaluated for impairment | 79 | 145 | 238 | |
Loans: | ||||
Loans collectively evaluated for impairment | 10,043 | 26,946 | 25,347 | |
Carrying value | 10,043 | 26,946 | 25,347 | |
Commercial and industrial | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 212,537 | 398,696 | 13,641 | |
Carrying value | 212,537 | 398,696 | ||
Other income producing property | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 142 | 178 | 242 | |
Loans collectively evaluated for impairment | 1,304 | 1,197 | 1,300 | |
Loans: | ||||
Loans individually evaluated for impairment | 2,872 | 3,138 | 2,372 | |
Loans collectively evaluated for impairment | 211,481 | 190,709 | 175,866 | |
Other income producing property | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 133,110 | 196,669 | 39,342 | |
Carrying value | 133,110 | 196,669 | ||
Consumer | ||||
Loans: | ||||
Carrying value | 42,492 | 51,453 | ||
Consumer | Non-acquired loans | ||||
Allowance for loan losses: | ||||
Loans individually evaluated for impairment | 2 | 7 | 4 | |
Loans collectively evaluated for impairment | 3,099 | 2,781 | 2,346 | |
Loans: | ||||
Loans individually evaluated for impairment | 188 | 239 | 145 | |
Loans collectively evaluated for impairment | 448,476 | 378,746 | 324,093 | |
Consumer | Acquired credit impaired loans | ||||
Loans: | ||||
Carrying value | 42,492 | 51,453 | ||
Consumer | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 111,777 | 137,710 | 142,654 | |
Carrying value | 111,777 | 137,710 | ||
Commercial loans | Acquired non-credit impaired loans | ||||
Loans: | ||||
Carrying value | 1,611,811 | 2,337,706 | ||
Commercial loans | Construction and land development | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | 165,070 | 403,357 | 10,090 | |
Commercial loans | Other commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||
Loans: | ||||
Loans collectively evaluated for impairment | $ 421,841 | $ 521,818 | $ 27,195 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Credit risk profile by risk grade of non acquired loans - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 30, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Loans and Allowance for Loan Losses | ||||||
Other Real Estate, Non Covered | $ 11,410 | $ 11,203 | $ 18,316 | $ 4,200 | $ 24,803 | |
Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 7,933,286 | 6,492,155 | 5,241,041 | |||
Classified assets | 56,600 | 40,500 | ||||
Other Real Estate, Non Covered | 3,900 | 2,400 | ||||
Non-acquired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 7,813,938 | 6,375,759 | ||||
Non-acquired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 66,645 | 78,325 | ||||
Non-acquired loans | Substandard and doubtful | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 52,700 | 38,100 | ||||
Non-acquired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 52,703 | 38,071 | ||||
Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,594,826 | 3,507,907 | 836,699 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 2,594,826 | 3,507,907 | ||||
Acquired non-credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 2,523,010 | 3,438,030 | ||||
Acquired non-credit impaired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 48,716 | 49,868 | ||||
Acquired non-credit impaired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 23,100 | 20,009 | ||||
Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 489,723 | 623,430 | $ 78,967 | 605,941 | ||
Acquired credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 296,106 | 369,348 | ||||
Acquired credit impaired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 74,388 | 106,723 | ||||
Acquired credit impaired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 119,229 | 147,359 | ||||
Residential real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 207,482 | 260,787 | ||||
Residential real estate | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 104,181 | 135,974 | ||||
Residential real estate | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 41,964 | 54,500 | ||||
Residential real estate | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 61,337 | 70,313 | ||||
Residential real estate | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 207,482 | 260,787 | 258,100 | |||
Commercial non-owner occupied real estate | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,256,996 | 1,839,768 | ||||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 841,445 | 830,875 | 580,464 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 832,612 | 818,240 | ||||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 6,015 | 8,758 | ||||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,818 | 3,877 | ||||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,415,551 | 1,008,893 | 714,715 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,407,744 | 999,049 | ||||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 6,427 | 7,864 | ||||
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,380 | 1,980 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 165,070 | 403,357 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 163,777 | 394,139 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 838 | 4,602 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 455 | 4,616 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 679,253 | 817,166 | 34,628 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 679,253 | 817,166 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 665,913 | 809,241 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 13,018 | 7,913 | ||||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 322 | 12 | ||||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 32,942 | 49,649 | 44,373 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 20,293 | 29,620 | ||||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 3,001 | 5,132 | ||||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 9,648 | 14,897 | ||||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 196,764 | 234,595 | 218,821 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 160,788 | 177,231 | ||||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 14,393 | 28,708 | ||||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 21,583 | 28,656 | ||||
Commercial owner occupied real estate loan | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,517,551 | 1,262,776 | 1,177,745 | |||
Commercial owner occupied real estate loan | Non-acquired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,480,267 | 1,232,927 | ||||
Commercial owner occupied real estate loan | Non-acquired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 24,576 | 23,575 | ||||
Commercial owner occupied real estate loan | Non-acquired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 12,708 | 6,274 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 421,841 | 521,818 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 411,783 | 513,861 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 5,664 | 7,740 | ||||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 4,394 | 217 | ||||
Consumer loans | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,431,413 | 1,967,902 | ||||
Consumer loans | Non-acquired loans | Home equity loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 495,148 | 437,642 | 383,218 | |||
Consumer loans | Non-acquired loans | Home equity loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 481,607 | 424,369 | ||||
Consumer loans | Non-acquired loans | Home equity loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 7,293 | 6,749 | ||||
Consumer loans | Non-acquired loans | Home equity loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 6,248 | 6,524 | ||||
Consumer loans | Non-acquired loans | Other Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 9,357 | 33,690 | ||||
Consumer loans | Non-acquired loans | Other Consumer | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 9,357 | 33,690 | ||||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,936,265 | 1,530,260 | 1,197,621 | |||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,909,427 | 1,502,016 | ||||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 11,304 | 13,902 | ||||
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 15,534 | 14,342 | ||||
Consumer loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 983,015 | 1,170,201 | ||||
Consumer loans | Acquired non-credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 953,739 | 1,141,218 | ||||
Consumer loans | Acquired non-credit impaired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 16,254 | 15,183 | ||||
Consumer loans | Acquired non-credit impaired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 13,022 | 13,800 | ||||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 242,425 | 320,591 | 160,879 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 242,425 | 320,591 | ||||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 227,515 | 301,842 | ||||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,688 | 10,477 | ||||
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,222 | 8,272 | ||||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 111,777 | 137,710 | ||||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 108,833 | 134,530 | ||||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 698 | 541 | ||||
Consumer loans | Acquired non-credit impaired loans | Other Consumer | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 2,246 | 2,639 | ||||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 628,813 | 710,611 | 408,270 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 628,813 | 710,611 | ||||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 617,391 | 703,557 | ||||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 7,868 | 4,165 | ||||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 3,554 | 2,889 | ||||
Consumer loans | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 42,492 | 51,453 | 59,300 | |||
Commercial and industrial | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 10,043 | 26,946 | ||||
Commercial and industrial | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 5,093 | 18,522 | ||||
Commercial and industrial | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 546 | 1,169 | ||||
Commercial and industrial | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 4,404 | 7,255 | ||||
Commercial and industrial | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,054,952 | 815,187 | 671,398 | |||
Commercial and industrial | Non-acquired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,037,915 | 801,885 | ||||
Commercial and industrial | Non-acquired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 5,887 | 11,130 | ||||
Commercial and industrial | Non-acquired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 11,150 | 2,172 | ||||
Commercial and industrial | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 212,537 | 398,696 | 13,641 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 212,537 | 398,696 | ||||
Commercial and industrial | Acquired non-credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 202,399 | 388,342 | ||||
Commercial and industrial | Acquired non-credit impaired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 6,523 | 9,883 | ||||
Commercial and industrial | Acquired non-credit impaired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 3,615 | 471 | ||||
Commercial and industrial | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 10,043 | 26,946 | 25,347 | |||
Other income producing property | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 214,353 | 193,847 | 178,238 | |||
Other income producing property | Non-acquired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 208,186 | 186,158 | ||||
Other income producing property | Non-acquired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 4,706 | 6,034 | ||||
Other income producing property | Non-acquired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,461 | 1,655 | ||||
Other income producing property | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 133,110 | 196,669 | 39,342 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 133,110 | 196,669 | ||||
Other income producing property | Acquired non-credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 125,399 | 191,229 | ||||
Other income producing property | Acquired non-credit impaired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 6,419 | 4,547 | ||||
Other income producing property | Acquired non-credit impaired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,292 | 893 | ||||
Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 42,492 | 51,453 | ||||
Consumer | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 5,751 | 8,001 | ||||
Consumer | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 14,484 | 17,214 | ||||
Consumer | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 22,257 | 26,238 | ||||
Consumer | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 448,664 | 378,985 | 324,238 | |||
Consumer | Non-acquired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 446,823 | 377,425 | ||||
Consumer | Non-acquired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 437 | 313 | ||||
Consumer | Non-acquired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,404 | 1,247 | ||||
Consumer | Non-acquired loans | All Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,889,434 | 2,380,577 | ||||
Consumer | Non-acquired loans | All Consumer | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,847,214 | 2,337,500 | ||||
Consumer | Non-acquired loans | All Consumer | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 19,034 | 20,964 | ||||
Consumer | Non-acquired loans | All Consumer | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 23,186 | 22,113 | ||||
Consumer | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 111,777 | 137,710 | 142,654 | |||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 111,777 | 137,710 | ||||
Consumer | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 42,492 | 51,453 | ||||
Commercial loans | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 5,043,852 | 4,111,578 | ||||
Commercial loans | Non-acquired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 4,966,724 | 4,038,259 | ||||
Commercial loans | Non-acquired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 47,611 | 57,361 | ||||
Commercial loans | Non-acquired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 29,517 | 15,958 | ||||
Commercial loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,611,811 | 2,337,706 | ||||
Commercial loans | Acquired non-credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,569,271 | 2,296,812 | ||||
Commercial loans | Acquired non-credit impaired loans | Special mention | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 32,462 | 34,685 | ||||
Commercial loans | Acquired non-credit impaired loans | Substandard | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 10,078 | 6,209 | ||||
Commercial loans | Acquired non-credit impaired loans | Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 165,070 | 403,357 | 10,090 | |||
Commercial loans | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 421,841 | 521,818 | 27,195 | |||
Other loans | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | $ 9,357 | 33,690 | $ 13,404 | |||
Other loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,289 | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,289 | |||||
Other loans | Acquired non-credit impaired loans | Pass | ||||||
Loans and Allowance for Loan Losses | ||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | $ 1,289 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Aging analysis of past due loans - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | $ 14,555 | $ 16,039 | |
Current | 7,918,731 | 6,476,116 | |
Total loans | 7,933,286 | 6,492,155 | $ 5,241,041 |
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 6,108 | 6,640 | |
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,459 | 1,863 | |
Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,988 | 7,536 | |
Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 26,998 | 36,513 | |
Current | 462,725 | 586,917 | |
Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 8,770 | 10,810 | |
Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,465 | 8,998 | |
Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 16,763 | 16,705 | |
Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 15,532 | 19,608 | |
Current | 2,579,294 | 3,488,299 | |
Total loans | 2,594,826 | 3,507,907 | 836,699 |
Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 8,456 | 12,364 | |
Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,750 | 2,639 | |
Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,326 | 4,605 | |
Residential real estate | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 14,358 | 19,002 | |
Current | 193,124 | 241,785 | |
Residential real estate | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,620 | 5,895 | |
Residential real estate | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,251 | 4,283 | |
Residential real estate | Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 8,487 | 8,824 | |
Commercial non-owner occupied real estate | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,256,996 | 1,839,768 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,450 | 855 | |
Current | 839,995 | 830,020 | |
Total loans | 841,445 | 830,875 | 580,464 |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 693 | 391 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 305 | 63 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 452 | 401 | |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Past due | 482 | 746 | |
Current | 1,415,069 | 1,008,147 | |
Total loans | 1,415,551 | 1,008,893 | 714,715 |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 68 | 297 | |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 18 | 398 | |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 396 | 51 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,943 | 4,999 | |
Current | 29,999 | 44,650 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 115 | 811 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 12 | 427 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,816 | 3,761 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Past due | 5,521 | 9,013 | |
Current | 191,243 | 225,582 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 876 | 2,519 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 112 | 3,669 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,533 | 2,825 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,057 | 889 | |
Current | 164,013 | 402,468 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 647 | 675 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 45 | 113 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 365 | 101 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Past due | 911 | 333 | |
Current | 678,342 | 816,833 | |
Total loans | 679,253 | 817,166 | 34,628 |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 607 | 12 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 21 | 321 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 283 | ||
Commercial owner occupied real estate loan | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,038 | 4,330 | |
Current | 1,513,513 | 1,258,446 | |
Total loans | 1,517,551 | 1,262,776 | 1,177,745 |
Commercial owner occupied real estate loan | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,639 | 2,227 | |
Commercial owner occupied real estate loan | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,495 | 382 | |
Commercial owner occupied real estate loan | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 904 | 1,721 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,970 | 831 | |
Current | 419,871 | 520,987 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 964 | 642 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,006 | ||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 189 | ||
Consumer loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,431,413 | 1,967,902 | |
Consumer loans | Non-acquired loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,989 | 3,265 | |
Current | 493,159 | 434,377 | |
Total loans | 495,148 | 437,642 | 383,218 |
Consumer loans | Non-acquired loans | Home equity loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 744 | 1,209 | |
Consumer loans | Non-acquired loans | Home equity loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 532 | 372 | |
Consumer loans | Non-acquired loans | Home equity loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 713 | 1,684 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,192 | 3,374 | |
Current | 1,933,073 | 1,526,886 | |
Total loans | 1,936,265 | 1,530,260 | 1,197,621 |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,460 | 1,291 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 789 | 140 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 943 | 1,943 | |
Consumer loans | Non-acquired loans | Other Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | 9,357 | 33,690 | |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,937 | 5,952 | |
Current | 238,488 | 314,639 | |
Total loans | 242,425 | 320,591 | 160,879 |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,286 | 3,639 | |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 442 | 609 | |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,209 | 1,704 | |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,537 | 1,744 | |
Current | 626,276 | 708,867 | |
Total loans | 628,813 | 710,611 | 408,270 |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,127 | 673 | |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 621 | 204 | |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 789 | 867 | |
Commercial and industrial | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,591 | 1,449 | |
Current | 1,053,361 | 813,738 | |
Total loans | 1,054,952 | 815,187 | 671,398 |
Commercial and industrial | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 898 | 477 | |
Commercial and industrial | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 120 | 57 | |
Commercial and industrial | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 573 | 915 | |
Commercial and industrial | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,525 | 1,169 | |
Current | 7,518 | 25,777 | |
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,437 | 596 | |
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 167 | ||
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 88 | 406 | |
Commercial and industrial | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,797 | 7,417 | |
Current | 209,740 | 391,279 | |
Total loans | 212,537 | 398,696 | 13,641 |
Commercial and industrial | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,648 | 5,996 | |
Commercial and industrial | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 130 | 1,278 | |
Commercial and industrial | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 19 | 143 | |
Other income producing property | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 484 | 676 | |
Current | 213,869 | 193,171 | |
Total loans | 214,353 | 193,847 | 178,238 |
Other income producing property | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 169 | 223 | |
Other income producing property | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 26 | 255 | |
Other income producing property | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 289 | 198 | |
Other income producing property | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,008 | 577 | |
Current | 132,102 | 196,092 | |
Total loans | 133,110 | 196,669 | 39,342 |
Other income producing property | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 603 | 327 | |
Other income producing property | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 276 | ||
Other income producing property | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 129 | 250 | |
Consumer | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,329 | 1,344 | |
Current | 447,335 | 377,641 | |
Total loans | 448,664 | 378,985 | 324,238 |
Consumer | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 437 | 525 | |
Consumer | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 174 | 196 | |
Consumer | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 718 | 623 | |
Consumer | Non-acquired loans | All Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,889,434 | 2,380,577 | |
Consumer | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,651 | 2,330 | |
Current | 40,841 | 49,123 | |
Consumer | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 722 | 989 | |
Consumer | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 90 | 452 | |
Consumer | Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 839 | 889 | |
Consumer | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,315 | 1,865 | |
Current | 110,462 | 135,845 | |
Total loans | 111,777 | 137,710 | 142,654 |
Consumer | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 574 | 400 | |
Consumer | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 209 | 114 | |
Consumer | Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 532 | 1,351 | |
Commercial loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 5,043,852 | 4,111,578 | |
Commercial loans | Acquired non-credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Total loans | 165,070 | 403,357 | 10,090 |
Commercial loans | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Total loans | 421,841 | 521,818 | 27,195 |
Other loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Current | 9,357 | 33,690 | |
Total loans | $ 9,357 | 33,690 | $ 13,404 |
Other loans | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Current | 1,289 | ||
Total loans | $ 1,289 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Nonaccrual loans - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | $ 59,460 | $ 77,648 | |
Recorded Investment With No Allowance | 10,714 | 10,985 | |
Gross Recorded Investment With Allowance | 46,304 | 52,438 | |
Total Recorded Investment | 57,018 | 63,423 | |
Related Allowance | 1,628 | 1,624 | |
Average Investment In Impaired Loans | 60,221 | 42,318 | $ 25,715 |
Interest Income Recognized | 2,068 | 1,984 | 913 |
Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 14,827 | 14,340 | |
Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 13,489 | 9,397 | |
Commercial non-owner occupied real estate | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 38,314 | 47,553 | |
Recorded Investment With No Allowance | 339 | 649 | |
Gross Recorded Investment With Allowance | 37,574 | 42,581 | |
Total Recorded Investment | 37,913 | 43,230 | |
Related Allowance | 788 | 1,063 | |
Average Investment In Impaired Loans | 40,571 | 23,132 | 4,657 |
Interest Income Recognized | 1,201 | 1,138 | 120 |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 1,157 | 3,106 | |
Recorded Investment With No Allowance | 536 | 860 | |
Gross Recorded Investment With Allowance | 489 | 515 | |
Total Recorded Investment | 1,025 | 1,375 | |
Related Allowance | 70 | 125 | |
Average Investment In Impaired Loans | 1,200 | 1,091 | 1,129 |
Interest Income Recognized | 28 | 45 | 32 |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,255 | 1,501 | |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 424 | 357 | |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 831 | 1,144 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 535 | 108 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 252 | 108 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 283 | ||
Commercial owner occupied real estate loan | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 5,085 | 9,212 | |
Recorded Investment With No Allowance | 3,101 | 3,553 | |
Gross Recorded Investment With Allowance | 1,041 | 2,089 | |
Total Recorded Investment | 4,142 | 5,642 | |
Related Allowance | 27 | 64 | |
Average Investment In Impaired Loans | 4,892 | 5,943 | 6,985 |
Interest Income Recognized | 288 | 268 | 291 |
Commercial owner occupied real estate loan | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,068 | 1,635 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,470 | 189 | |
Consumer loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 2,953 | 3,602 | |
Recorded Investment With No Allowance | 1,129 | 896 | |
Gross Recorded Investment With Allowance | 1,697 | 2,115 | |
Total Recorded Investment | 2,826 | 3,011 | |
Related Allowance | 142 | 135 | |
Average Investment In Impaired Loans | 2,919 | 2,343 | 992 |
Interest Income Recognized | 126 | 113 | 61 |
Consumer loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 7,291 | 7,382 | |
Recorded Investment With No Allowance | 4,992 | 4,392 | |
Gross Recorded Investment With Allowance | 1,769 | 1,240 | |
Total Recorded Investment | 6,761 | 5,632 | |
Related Allowance | 41 | 37 | |
Average Investment In Impaired Loans | 6,197 | 5,653 | 6,611 |
Interest Income Recognized | 212 | 195 | 206 |
Consumer loans | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 9,442 | 8,103 | |
Consumer loans | Non acquired non-accrual loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 2,333 | 2,612 | |
Consumer loans | Non acquired non-accrual loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 7,109 | 5,491 | |
Consumer loans | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 8,376 | 6,745 | |
Consumer loans | Acquired non-credit impaired non-accrual loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 4,512 | 4,589 | |
Consumer loans | Acquired non-credit impaired non-accrual loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 3,864 | 2,156 | |
Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 1,332 | 2,246 | |
Recorded Investment With No Allowance | 467 | 635 | |
Gross Recorded Investment With Allowance | 824 | 521 | |
Total Recorded Investment | 1,291 | 1,156 | |
Related Allowance | 416 | 15 | |
Average Investment In Impaired Loans | 1,224 | 1,209 | 1,375 |
Interest Income Recognized | 57 | 48 | 52 |
Commercial and industrial | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 647 | 872 | |
Commercial and industrial | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,296 | 133 | |
Other income producing property | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 3,117 | 3,893 | |
Recorded Investment With No Allowance | 150 | ||
Gross Recorded Investment With Allowance | 2,722 | 3,138 | |
Total Recorded Investment | 2,872 | 3,138 | |
Related Allowance | 142 | 178 | |
Average Investment In Impaired Loans | 3,005 | 2,755 | 3,632 |
Interest Income Recognized | 155 | 171 | 145 |
Other income producing property | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 500 | 269 | |
Other income producing property | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 244 | 316 | |
Consumer | |||
Loans and Allowance for Loan Losses | |||
Unpaid Contractual Principal Balance | 211 | 654 | |
Gross Recorded Investment With Allowance | 188 | 239 | |
Total Recorded Investment | 188 | 239 | |
Related Allowance | 2 | 7 | |
Average Investment In Impaired Loans | 213 | 192 | 123 |
Interest Income Recognized | 1 | 6 | 6 |
Consumer | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | 1,267 | 1,035 | |
Consumer | Acquired non-credit impaired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | $ 1,568 | 1,906 | |
Other loans | |||
Loans and Allowance for Loan Losses | |||
Average Investment In Impaired Loans | $ 211 | ||
Restructured loans | ASC Topic 31020 Loans | Minimum | |||
Loans and Allowance for Loan Losses | |||
Number of months generally required to return to accruing status | 6 months | ||
Restructured loans | Non acquired non-accrual loans | |||
Loans and Allowance for Loan Losses | |||
Nonaccrual loans | $ 648 | $ 925 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)property | Dec. 31, 2017USD ($)property | Nov. 30, 2017USD ($) | Jan. 03, 2017USD ($) | Jun. 30, 2016property | Mar. 31, 2016USD ($) | |
OREO | |||||||||
Balance at the beginning of the period | $ 11,203 | $ 18,316 | $ 24,803 | ||||||
Transfers | 4,222 | ||||||||
Additions, net | 13,391 | 11,842 | |||||||
Write-downs | (1,420) | (2,249) | (2,270) | ||||||
Sold | (11,974) | (18,853) | (20,281) | ||||||
Balance at the end of the period | 11,410 | 11,203 | 18,316 | ||||||
Number of properties uncovered | property | 17 | ||||||||
Other Real Estate, Non Covered | 11,203 | 18,316 | 24,803 | $ 11,410 | $ 11,203 | $ 4,200 | |||
Covered OREO | |||||||||
Balance at the beginning of the period | 5,751 | ||||||||
Transfers | (4,222) | ||||||||
Additions, net | 2,151 | ||||||||
Write-downs | (2,131) | ||||||||
Sold | (1,549) | ||||||||
Total | |||||||||
Balance at the beginning of the period | 11,203 | 18,316 | 30,554 | ||||||
Additions, net | 13,391 | 13,993 | |||||||
Write-downs | (1,420) | (2,249) | (4,401) | ||||||
Sold | (11,974) | (18,853) | (21,830) | ||||||
Balance at the end of the period | 11,410 | 11,203 | 18,316 | ||||||
Number of properties held | property | 75 | 82 | |||||||
Covered Other real estate under share agreements | 11,203 | 18,316 | 30,554 | $ 11,410 | $ 11,203 | ||||
Residential real estate consumer mortgage loans in foreclosure, carrying value | 4,700 | ||||||||
Carrying value of covered OREO assets | $ 5,751 | ||||||||
Residential real estate | |||||||||
Total | |||||||||
Other Real Estate In Foreclosure | $ 1,200 | ||||||||
Southeastern Bank Financial | |||||||||
OREO | |||||||||
Transfers | 385 | ||||||||
OREO and repossessed assets | $ 450 | ||||||||
Total | |||||||||
Transfers | 385 | ||||||||
Park Sterling Corporation | |||||||||
OREO | |||||||||
Transfers | 210 | 2,046 | |||||||
Additions, net | 11,558 | ||||||||
OREO and repossessed assets | $ 2,330 | ||||||||
Total | |||||||||
Transfers | $ 210 | 2,046 | |||||||
Additions, net | $ 11,558 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premises and equipment | |||
Total | $ 415,208 | $ 415,317 | |
Less accumulated depreciation | (174,132) | (159,752) | |
Net premises and equipment | 241,076 | 255,565 | |
Depreciation expense charged to operations | 18,700 | 15,200 | $ 11,500 |
Land | |||
Premises and equipment | |||
Total | 77,338 | 81,291 | |
Buildings and leasehold improvements | |||
Premises and equipment | |||
Total | $ 224,620 | 227,402 | |
Buildings and leasehold improvements | Minimum | |||
Premises and equipment | |||
Useful Life | 15 years | ||
Buildings and leasehold improvements | Maximum | |||
Premises and equipment | |||
Useful Life | 40 years | ||
Equipment and furnishings | |||
Premises and equipment | |||
Total | $ 109,468 | 104,319 | |
Equipment and furnishings | Minimum | |||
Premises and equipment | |||
Useful Life | 3 years | ||
Equipment and furnishings | Maximum | |||
Premises and equipment | |||
Useful Life | 10 years | ||
Construction in process | |||
Premises and equipment | |||
Total | $ 3,782 | 2,305 | |
Computer software | |||
Premises and equipment | |||
Useful Life | 36 months | ||
Total | $ 13,500 | 13,000 | |
Depreciation expense charged to operations | $ 2,100 | $ 2,500 | $ 2,300 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of changes - (Details) - USD ($) | Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Impairment of Goodwill | $ 0 | $ 0 | |
Goodwill | |||
Goodwill, Beginning Balance | 999,586,000 | $ 338,340,000 | |
PSC acquisition Day 1 adjustment | 3,314,000 | ||
Goodwill, Ending Balance | $ 1,002,900,000 | 999,586,000 | |
Southeastern Bank Financial | |||
Goodwill | |||
Additions, Goodwill from acquisition | 258,295,000 | ||
Park Sterling Corporation | |||
Goodwill | |||
Additions, Goodwill from acquisition | $ 402,951,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of gross carrying amounts - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other intangible assets | |||
Gross carrying amount | $ 129,770 | $ 126,449 | |
Accumulated amortization | (66,870) | (52,660) | |
Net carrying amount | 62,900 | 73,789 | |
Amortization expense | 14,209 | 10,353 | $ 7,577 |
Estimated amortization expense for other intangibles for each of the next five years | |||
2,019 | 13,084 | ||
2,020 | 11,867 | ||
2,021 | 10,584 | ||
2,022 | 9,266 | ||
2,023 | 6,314 | ||
Thereafter | 11,785 | ||
Total estimated amortization expense for other intangibles for the next five years | 62,900 | ||
Estimated amortization expense for other intangibles for each of the next five quarters | |||
Net carrying amount | $ 62,900 | $ 73,789 | |
Minimum | |||
Other intangible assets | |||
Estimated useful lives | 2 years | ||
Maximum | |||
Other intangible assets | |||
Estimated useful lives | 15 years |
Deposits - Total deposits - (De
Deposits - Total deposits - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits | ||
Certificates of deposit | $ 1,775,095 | $ 1,738,384 |
Interest-bearing demand deposits | 5,407,175 | 5,300,108 |
Non-interest bearing demand deposits | 3,061,769 | 3,047,432 |
Savings deposits | 1,399,815 | 1,443,918 |
Other time deposits | 3,079 | 2,924 |
Total deposits | $ 11,646,933 | $ 11,532,766 |
Deposits - Certificates of depo
Deposits - Certificates of deposits and Scheduled maturities of time deposits - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits | ||
Aggregate amounts of certificates of deposits in denominations of $250,000 or more | $ 320,000 | $ 325,300 |
Traditional, out-of-market brokered deposits | 7,600 | $ 43,600 |
Scheduled maturities of time deposits of all denominations | ||
2,019 | 1,185,607 | |
2,020 | 349,515 | |
2,021 | 115,223 | |
2,022 | 101,662 | |
2,023 | 21,403 | |
Thereafter | 4,764 | |
Time deposits | $ 1,778,174 |
Federal Funds Purchased and S_3
Federal Funds Purchased and Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amount | |||
At period-end | $ 270,649 | $ 286,857 | |
Rate | |||
Repurchase agreement | 205,300 | 211,100 | |
Carrying amount of the securities pledged to collateralize repurchase agreements | 205,300 | 211,100 | |
Federal funds purchased and securities sold under repurchase agreements | |||
Amount | |||
At period-end | 270,649 | 286,857 | $ 313,773 |
Average for the year | 312,768 | 325,713 | 320,901 |
Maximum month-end balance | $ 362,047 | $ 401,786 | $ 334,260 |
Rate | |||
At period-end (as a percent) | 1.08% | 0.45% | 0.24% |
Average for the year (as a percent) | 0.75% | 0.33% | 0.18% |
Federal funds purchased and securities sold under repurchase agreements | Minimum | |||
Information concerning federal funds purchased and securities sold under repurchase agreements | |||
Maturity period from the transaction date | 1 day | ||
Federal funds purchased and securities sold under repurchase agreements | Maximum | |||
Information concerning federal funds purchased and securities sold under repurchase agreements | |||
Maturity period from the transaction date | 3 days | ||
Maturity period as per policies | 9 months |
Other Borrowings (Details)
Other Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Other Borrowings | ||
Shot-term borrowings | $ 150,000 | $ 100,000 |
Long term borrowings | 116,084 | 116,385 |
Total borrowings | 266,084 | 216,385 |
Discount | 3,400 | 4,100 |
Federal Home Loan Bank Rate Credit maturing 01/16/2018 | ||
Other Borrowings | ||
Shot-term borrowings | $ 50,000 | |
Fixed interest rate (as a percent) | 1.40% | |
Federal Home Loan Bank Rate Credit maturing 04/27/2018 | ||
Other Borrowings | ||
Shot-term borrowings | $ 50,000 | |
Fixed interest rate (as a percent) | 1.57% | |
Federal Home Loan Bank Short Term Advance 12/31/2019 | ||
Other Borrowings | ||
Shot-term borrowings | $ 150,000 | |
Fixed interest rate (as a percent) | 2.64% | |
Short term borrowings | ||
Other Borrowings | ||
Weighted average interest rate (as a percent) | 2.64% | 1.48% |
LIBOR | Minimum | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 140.00% | |
LIBOR | Maximum | ||
Other Borrowings | ||
Spread on variable rate basis (as a percent) | 285.00% | |
SCBT Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 12,372 | $ 12,372 |
Fixed interest rate (as a percent) | 4.58% | 3.38% |
SCBT Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 8,248 | $ 8,248 |
Fixed interest rate (as a percent) | 4.58% | 3.38% |
SCBT Capital Trust III junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 20,619 | $ 20,619 |
Fixed interest rate (as a percent) | 4.38% | 3.18% |
SAVB Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 6,186 | $ 6,186 |
Fixed interest rate (as a percent) | 5.29% | 4.21% |
SAVB Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 4,124 | $ 4,124 |
Fixed interest rate (as a percent) | 4.99% | 3.79% |
TSB Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 3,093 | $ 3,093 |
Fixed interest rate (as a percent) | 4.51% | 3.31% |
Southeastern Bank Financial Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 4.19% | 2.99% |
Southeastern Bank Financial Statutory Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 4.19% | 2.99% |
CSBC Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 15,464 | $ 15,464 |
Fixed interest rate (as a percent) | 4.36% | 3.16% |
Community Capital Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 10,310 | $ 10,310 |
Fixed interest rate (as a percent) | 4.34% | 3.14% |
FCRV Statutory Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 5,155 | $ 5,155 |
Fixed interest rate (as a percent) | 4.49% | 3.29% |
Provident Community Bancshares Capital Trust I junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 4,124 | $ 4,124 |
Fixed interest rate (as a percent) | 4.14% | 3.08% |
Provident Community Bancshares Capital Trust II junior subordinated debt | ||
Other Borrowings | ||
Long term borrowings | $ 8,248 | $ 8,248 |
Fixed interest rate (as a percent) | 4.48% | 3.22% |
Fair Market Value Discount Trust Preferred Debt Acquired | ||
Other Borrowings | ||
Other long term debt acquired | $ (3,397) | $ (4,063) |
Other | ||
Other Borrowings | ||
Long term borrowings | 918 | $ 1,885 |
Total borrowings | $ 918 | |
Fixed interest rate (as a percent) | 4.14% | 4.09% |
Long term borrowings | ||
Other Borrowings | ||
Weighted average interest rate (as a percent) | 4.45% | 3.26% |
Other Borrowings - Short-term F
Other Borrowings - Short-term FHLB Advances - (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
FHLB Advances | |||
Outstanding advances | $ 150 | $ 100 | $ 0 |
FHLB Advances | |||
FHLB Advances | |||
Loans pledged via a blanket lien to the FHLB for advances and letters of credit | 2,500 | ||
Total borrowing capacity at FHLB | 1,900 | ||
Letter of credit borrowed | 11.5 | ||
Unused net credit available with the FHLB | $ 1,700 | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.64% | 1.48% | |
Long-term Debt, Weighted Average Interest Rate, over Time | 1.57% | 0.97% | |
Average amount of FHLB advances outstanding | $ 42.3 | $ 25.6 |
Other Borrowings - Junior Subor
Other Borrowings - Junior Subordinated Debt - (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Junior Subordinated Debt | ||
Junior subordinated debt securities | $ 114.5 | |
Discount | $ 3.4 | $ 4.1 |
Junior Subordinated Debt | ||
Junior Subordinated Debt | ||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.45% | 3.26% |
Long-term Debt, Weighted Average Interest Rate, over Time | 3.90% | 2.99% |
Junior Subordinated Debt net of discount | ||
Junior Subordinated Debt | ||
Long-term Debt, Weighted Average Interest Rate, over Time | 4.61% | 3.94% |
Trusts | Junior Subordinated Debt | ||
Junior Subordinated Debt | ||
Junior subordinated debt securities | $ 115.2 | |
Maximum allowed percentage of ownership interest to total Tier 1 capital | 25.00% | |
SAVB Capital Trust I and II and FFCH Capital Trust I | Junior Subordinated Debt | ||
Junior Subordinated Debt | ||
Liability for the junior subordinated debt securities recorded on SAVB Capital Trust I and II | $ 115.2 | |
Discount | 3.4 | |
Amount paid to holders, if the entity call backs the subordinated debt securities | $ 118.6 | |
Discount amortization period | 5 years |
Other Borrowings - Lines of Cre
Other Borrowings - Lines of Credit - (Details) - USD ($) | Nov. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Principal maturities of other borrowings | |||
2,019 | $ 150,007,000 | ||
2,020 | 7,000 | ||
2,021 | 8,000 | ||
2,022 | 8,000 | ||
2,023 | 8,000 | ||
Thereafter | 116,046,000 | ||
Total borrowings | 266,084,000 | $ 216,385,000 | |
Unsecured line of credit | |||
Other Borrowings | |||
Maximum borrowing capacity | $ 10,000,000 | 0 | $ 0 |
Junior Subordinated Debt | |||
Principal maturities of other borrowings | |||
Thereafter | 115,166,000 | ||
Total borrowings | 115,166,000 | ||
FHLB Advances | |||
Principal maturities of other borrowings | |||
2,019 | 150,000,000 | ||
Total borrowings | 150,000,000 | ||
Other | |||
Principal maturities of other borrowings | |||
2,019 | 7,000 | ||
2,020 | 7,000 | ||
2,021 | 8,000 | ||
2,022 | 8,000 | ||
2,023 | 8,000 | ||
Thereafter | 880,000 | ||
Total borrowings | $ 918,000 | ||
LIBOR | Unsecured line of credit | |||
Other Borrowings | |||
Spread on variable rate basis (as a percent) | 1.50% |
Income Taxes - Provision for in
Income Taxes - Provision for income taxes breakup - (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes | |||
Provisional income tax expense | $ 26,600,000 | $ 26,600,000 | |
Income tax benefit | 991,000 | ||
Current: | |||
Federal | 25,275,000 | 46,153,000 | $ 37,187,000 |
State | 6,783,000 | 3,018,000 | 3,325,000 |
Total current tax expense | 32,058,000 | 49,171,000 | 40,512,000 |
Deferred: | |||
Federal | 12,557,000 | 31,971,000 | 11,684,000 |
State | 769,000 | 109,000 | 564,000 |
Total deferred tax expense (benefit) | 13,326,000 | 32,080,000 | 12,248,000 |
Provision for income taxes | $ 45,384,000 | $ 81,251,000 | $ 52,760,000 |
Federal statutory income tax rate (as a percent) | 21.00% | 35.00% |
Income Taxes - Provision for _2
Income Taxes - Provision for income taxes - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Difference between the provision for income taxes and taxes computed by applying the federal statutory income tax rate to income before provision for income taxes | |||
Income taxes at federal statutory rate | $ 47,094 | $ 59,082 | $ 53,915 |
Increase (reduction) of taxes resulting from: | |||
State income taxes, net of federal tax benefit | 5,916 | 2,032 | 2,527 |
Non- deductible merger expenses | 586 | 686 | |
Increase in cash surrender value of BOLI policies | (1,261) | (1,319) | (896) |
Tax-exempt interest | (2,037) | (2,840) | (1,956) |
Income tax credits | (3,118) | (1,951) | (2,068) |
Dividends received deduction | (5) | (12) | (12) |
DTA, Revaluation due to tax law change | (991) | 26,558 | |
Other, net | 214 | 885 | (564) |
Provision for income taxes | 45,384 | 81,251 | $ 52,760 |
Components of the net deferred tax asset | |||
Allowance for loan losses | 12,953 | 11,011 | |
Other-than-temporary impairment on securities | 257 | 257 | |
Share-based compensation | 4,475 | 3,935 | |
Pension plan and post-retirement benefits | 192 | 607 | |
Deferred compensation | 11,841 | 13,048 | |
Purchase accounting adjustments | 28,659 | 37,078 | |
Other real estate owned | 455 | 838 | |
Tax deductible goodwill | 32 | ||
Net operating loss and tax credit carryforwards | 11,572 | 14,066 | |
Cash flow hedge | 11 | 54 | |
Unrealized losses on investment securities available for sale | 7,273 | 3,472 | |
Other | 1,665 | 643 | |
Total deferred tax assets | 79,353 | 85,041 | |
Depreciation | 7,314 | 5,870 | |
Intangible assets | 12,617 | 14,745 | |
Net deferred loan costs | 9,409 | 7,840 | |
Prepaid expense | 474 | 474 | |
Tax deductible goodwill | 388 | ||
Mortgage servicing rights | 7,608 | 6,818 | |
Other | 840 | 372 | |
Total deferred tax liabilities | 38,650 | 36,119 | |
Net deferred tax assets before valuation allowance | 40,703 | 48,922 | |
Less, valuation allowance | (3,575) | (3,020) | |
Net deferred tax assets | $ 37,128 | $ 45,902 |
Income Taxes - Additional infor
Income Taxes - Additional information - (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Income Taxes | ||
Unrecognized tax benefits | $ 0 | |
Accrued interest and penalties | 0 | |
Peoples | ||
Income Taxes | ||
Operating loss carryforwards | 6 | |
Annual limitation on operating loss carryforwards | 1.5 | |
Savannah Bancorp ("SAVB") | ||
Income Taxes | ||
Operating loss carryforwards | 15 | |
Annual limitation on operating loss carryforwards | 2 | |
Park Sterling Corporation | ||
Income Taxes | ||
Operating loss carryforwards | 3.3 | |
RBIL carryforwards | 13.9 | |
Annual limitations on RBIL carryforward | 1.1 | |
Annual limitation on operating loss carryforwards | 3.3 | |
Federal | ||
Income Taxes | ||
Operating loss carryforwards | 24.3 | $ 30.3 |
State | ||
Income Taxes | ||
Operating loss carryforwards | 101.4 | $ 88.5 |
Valuation allowance relating to operating loss carryforwards | $ 3.6 |
Other Expense (Details)
Other Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Expense | |||
Business development and staff related | $ 9,536 | $ 7,449 | $ 6,210 |
Other loan expense | 2,028 | 2,590 | 2,486 |
Director and shareholder expense | 2,102 | 1,635 | 2,004 |
Armored carrier and courier expense | 2,065 | 1,703 | 1,470 |
Property and sales tax | 1,760 | 1,033 | 1,145 |
Low income housing tax credit partnership amortization | 3,829 | 3,038 | 1,487 |
Other | 6,272 | 6,272 | 6,529 |
Total other noninterest expense | $ 27,592 | $ 23,720 | $ 21,331 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of basic and diluted EPS - (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Basic earnings per common share: | |||
Net income | $ 178,871 | $ 87,554 | $ 101,282 |
Weighted Average Number of Shares Outstanding, Basic | 36,530 | 29,686 | 23,998 |
Basic earnings per common share (in dollars per share) | $ 4.90 | $ 2.95 | $ 4.22 |
Diluted earnings per share: | |||
Net income | $ 178,871 | $ 87,554 | $ 101,282 |
Weighted Average Number of Shares Outstanding, Basic | 36,530 | 29,686 | 23,998 |
Effect of dilutive securities (in shares) | 246 | 236 | 221 |
Weighted-average dilutive shares | 36,776 | 29,922 | 24,219 |
Diluted earnings per common share (in dollars per share) | $ 4.86 | $ 2.93 | $ 4.18 |
Earnings Per Common Share - Cal
Earnings Per Common Share - Calculation of diluted EPS under Treasury method - (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share | |||
Number of shares | 62,235 | 34,712 | 69,572 |
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 69.48 | $ 61.42 |
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | $ 91.35 | $ 69.48 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in components of AOCI - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | $ (10,427) | $ (8,211) | $ (3,871) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (13,064) | (2,535) | (5,004) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1,557 | 319 | 664 |
Other comprehensive loss, net of tax | (11,507) | (2,216) | (4,340) |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (2,947) | ||
Balance at the end of the period | (24,881) | (10,427) | (8,211) |
Benefit Plans | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (5,998) | (6,195) | (6,015) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 382 | (365) | (749) |
Amounts reclassified from accumulated other comprehensive income (loss) | 926 | 562 | 569 |
Other comprehensive loss, net of tax | 1,308 | 197 | (180) |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (1,760) | ||
Balance at the end of the period | (6,450) | (5,998) | (6,195) |
Unrealized Gains and Losses on Securities Available for Sale | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (4,278) | (1,708) | 2,588 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (13,479) | (2,157) | (4,221) |
Amounts reclassified from accumulated other comprehensive income (loss) | 510 | (413) | (75) |
Other comprehensive loss, net of tax | (12,969) | (2,570) | (4,296) |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (1,147) | ||
Balance at the end of the period | (18,394) | (4,278) | (1,708) |
Gains and Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss) | |||
Balance at the beginning of the period | (151) | (308) | (444) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 33 | (13) | (34) |
Amounts reclassified from accumulated other comprehensive income (loss) | 121 | 170 | 170 |
Other comprehensive loss, net of tax | 154 | 157 | 136 |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (40) | ||
Balance at the end of the period | (37) | $ (151) | $ (308) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss) | |||
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | $ (2,947) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Interest expense | $ (53,992) | $ (17,014) | $ (8,317) |
Other noninterest income | 11,819 | 6,670 | 6,437 |
Other-than-temporary impairment losses | (753) | ||
Provision for income taxes | (45,384) | (81,251) | (52,760) |
Net income | 178,871 | 87,554 | 101,282 |
Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Net income | 1,557 | 319 | 664 |
Gains and Losses on Cash Flow Hedges | Amount Reclassified from Accumulated Other Comprehensive Loss | Interest rate contracts | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Interest expense | 155 | 275 | 275 |
Provision for income taxes | (34) | (105) | (105) |
Net income | 121 | 170 | 170 |
Unrealized Gains and Losses on Securities Available for Sale | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Securities (gains) losses, net | 655 | (1,421) | (122) |
Provision for income taxes | (145) | 542 | 47 |
Net income | 510 | (879) | (75) |
Noncredit Other-Than-Temporary Impairment Losses | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Other-than-temporary impairment losses | 753 | ||
Provision for income taxes | (287) | ||
Net income | 466 | ||
Benefit Plans | Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassifications out of accumulated other comprehensive income, net of tax | |||
Salaries and employee benefits | 1,187 | 908 | 920 |
Provision for income taxes | (261) | (346) | (351) |
Net income | $ 926 | $ 562 | $ 569 |
Restrictions on Subsidiary Di_2
Restrictions on Subsidiary Dividends, Loans, or Advances (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2016 | Dec. 31, 2017 | |
Special dividend paid by the Bank to the entity | $ 25 | ||||
Cost of shares repurchased | $ 68.4 | $ 68.4 | $ 2.1 | ||
Amount available for special dividend distribution without approval from SCBFI | 66.6 | $ 66.6 | |||
Maximum amount available for transfer in the form of loans or advances | $ 245.8 | $ 239.6 | |||
Park Sterling Corporation | |||||
Repayments of senior debt | $ 30 |
Retirement Plans - Non-contribu
Retirement Plans - Non-contributory defined benefit pension plan - (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax [Abstract] | |||
Net loss | $ (7,900,000) | $ (9,200,000) | |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Net periodic pension expense | (309,000) | (351,000) | $ (205,000) |
Total amount recognized in other comprehensive income | (490,000) | 589,000 | 1,202,000 |
Other Comprehensive Income | |||
Change in benefit obligation: | |||
Service cost | 78,000 | 127,000 | 112,000 |
Interest cost | 1,079,000 | 1,124,000 | 1,132,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 1,079,000 | 1,124,000 | 1,132,000 |
Service cost | 78,000 | 127,000 | 112,000 |
Expected return on plan assets | (2,328,000) | (2,213,000) | (2,131,000) |
Recognized net actuarial loss | 775,000 | 751,000 | 816,000 |
Net periodic pension expense | (396,000) | (211,000) | (71,000) |
Net (gain) loss | (581,000) | 491,000 | 655,000 |
Amortization of net gain | (775,000) | (751,000) | (816,000) |
Total amount recognized in other comprehensive income | (1,356,000) | (260,000) | (161,000) |
Total recognized in net periodic benefit cost and other comprehensive income | (1,752,000) | (471,000) | (232,000) |
Non-contributory defined benefit pension plan | |||
Retirement Plans | |||
Funded status | 1,639,000 | (113,000) | (584,000) |
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 31,500,000 | 28,800,000 | 28,260,000 |
Service cost | 77,000 | 127,000 | 112,000 |
Interest cost | 1,080,000 | 1,124,000 | 1,132,000 |
Actuarial (gain) loss | (2,442,000) | 2,665,000 | 435,000 |
Expenses | 121,000 | 78,000 | 124,000 |
Benefit obligation at end of year | 28,906,000 | 31,500,000 | 28,800,000 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 31,387,000 | 28,216,000 | 27,444,000 |
Actual return on plan assets | 467,000 | 4,387,000 | 1,911,000 |
Benefits paid | (1,188,000) | (1,138,000) | (1,015,000) |
Expenses | 121,000 | 78,000 | 124,000 |
Fair value of plan assets at end of year | 30,545,000 | 31,387,000 | 28,216,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 1,080,000 | 1,124,000 | 1,132,000 |
Service cost | 77,000 | 127,000 | $ 112,000 |
Estimated net loss for the plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | |||
Estimated net loss for defined benefit pension plan that will be amortized from accumulated other comprehensive income into periodic benefit cost over the next fiscal year | 483,000 | ||
Accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | 28,906,000 | 31,500,000 | |
Accumulated benefit obligation | 28,906,000 | 31,500,000 | |
Fair value of plan assets | $ 30,545,000 | $ 31,387,000 | |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate (as a percent) | 4.10% | 3.50% | |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 3.50% | 4.00% | 4.10% |
Expected long-term return on plan assets (as a percent) | 7.75% | 7.75% | 7.75% |
Non-contributory defined benefit pension plan | Employees hired on or before December 31, 2005 | |||
Retirement Plans | |||
Requisite age of employees for receiving retirement benefits under the plan | 21 years | ||
Requisite age of employees for receiving retirement benefits under the new benefit formula | 1 year |
Retirement Plans - Rate and sta
Retirement Plans - Rate and standard deviation assumptions - (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Information about plan assets | ||||
Net asset value | $ 1 | |||
Fair value of pension plan assets | ||||
Purchases of shares of common stock | 0 | 0 | 0 | |
Pension: | ||||
Employee savings plan/ 401(K) plan | $ 7,948 | $ 7,381 | $ 6,178 | |
Supplemental executive retirement plan | 368 | 1,334 | 134 | |
Post-retirement benefits | $ 254 | $ 251 | $ 192 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Information about plan assets | ||||
Defined Benefit Plan, Plan Assets, Fair Value by Hierarchy and NAV [Extensible List] | Money Market Funds [Member] | |||
Cash equivalents | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 3.00% | |||
Standard Deviation Assumption (as a percent) | 0.49% | |||
High Grade Fixed Income | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 5.97% | |||
Standard Deviation Assumption (as a percent) | 3.20% | |||
High Yield Fixed Income | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 8.20% | |||
Standard Deviation Assumption (as a percent) | 8.37% | |||
International Fixed Income | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 6.25% | |||
Standard Deviation Assumption (as a percent) | 7.82% | |||
Large Cap Equity | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 9.93% | |||
Standard Deviation Assumption (as a percent) | 13.48% | |||
Mid Cap Equity | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 10.91% | |||
Standard Deviation Assumption (as a percent) | 15.87% | |||
Mid/Small Cap Equity | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 9.76% | |||
Standard Deviation Assumption (as a percent) | 17.11% | |||
Foreign equities | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 6.83% | |||
Standard Deviation Assumption (as a percent) | 16.30% | |||
Non-contributory defined benefit pension plan | ||||
Long-term rate of return and standard deviation assumptions used in developing long-term rate of return assumption for the pension plan | ||||
Rate of Return Assumption (as a percent) | 7.75% | 7.75% | 7.75% | |
Fair value of pension plan assets | ||||
Fair value of pension plan assets | $ 30,545 | $ 31,387 | $ 28,216 | $ 27,444 |
Estimated future benefit payments (including expected future service as appropriate) | ||||
2,019 | 1,360 | |||
2,020 | 1,540 | |||
2,021 | 1,618 | |||
2,022 | 1,640 | |||
2,023 | 1,691 | |||
2024-2028 | 8,824 | |||
Estimated future benefit payments | 16,673 | |||
Pension: | ||||
Expenses incurred and charged against operations | 8,261 | $ 8,615 | $ 6,299 | |
Non-contributory defined benefit pension plan | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Fair value of pension plan assets | ||||
Fair value of pension plan assets | $ 30,545 | |||
Non-contributory defined benefit pension plan | Cash equivalents | ||||
Information about plan assets | ||||
Actual asset allocation (as a percent) | 2.00% | |||
Non-contributory defined benefit pension plan | Cash equivalents | Maximum | ||||
Information about plan assets | ||||
Allowable allocation percentages | 35.00% | |||
Non-contributory defined benefit pension plan | Cash equivalents | Minimum | ||||
Information about plan assets | ||||
Allowable allocation percentages | 0.00% | |||
Non-contributory defined benefit pension plan | Equities | Maximum | ||||
Information about plan assets | ||||
Allowable allocation percentages | 65.00% | |||
Non-contributory defined benefit pension plan | Equities | Minimum | ||||
Information about plan assets | ||||
Allowable allocation percentages | 55.00% | |||
Non-contributory defined benefit pension plan | Fixed income | ||||
Information about plan assets | ||||
Actual asset allocation (as a percent) | 98.00% | |||
Non-contributory defined benefit pension plan | Fixed income | Maximum | ||||
Information about plan assets | ||||
Allowable allocation percentages | 40.00% | |||
Non-contributory defined benefit pension plan | Fixed income | Minimum | ||||
Information about plan assets | ||||
Allowable allocation percentages | 20.00% | |||
Non-contributory defined benefit pension plan | Money market funds | ||||
Fair value of pension plan assets | ||||
Fair value of pension plan assets | $ 574 | |||
Non-contributory defined benefit pension plan | Money market funds | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Fair value of pension plan assets | ||||
Fair value of pension plan assets | 574 | |||
Non-contributory defined benefit pension plan | Broad market fixed income | ||||
Fair value of pension plan assets | ||||
Fair value of pension plan assets | 29,971 | |||
Non-contributory defined benefit pension plan | Broad market fixed income | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Fair value of pension plan assets | ||||
Fair value of pension plan assets | $ 29,971 |
Retirement Plans - Safe Harbor
Retirement Plans - Safe Harbor plan - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employees' savings plan | |||
Matching contribution by the company (as a percent) | 100.00% | ||
Expenses recognized under 401(K) plan | $ 7,948 | $ 7,381 | $ 6,178 |
Minimum | |||
Employees' savings plan | |||
Age of employees to be eligible to participate in the defined contribution plan | 18 years | ||
Percentage of annual base compensation that participants may elect to contribute | 1.00% | ||
Maximum | |||
Employees' savings plan | |||
Percentage of annual base compensation that participants may elect to contribute | 50.00% | ||
Percentage of employees salary for which the company contributes a matching contribution | 5.00% |
Post-Retirement Benefits (Detai
Post-Retirement Benefits (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Post-Retirement Benefits | |||
Number of post-retirement health and life insurance benefit plans | item | 2 | ||
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Net periodic pension expense | $ (309,000) | $ (351,000) | $ (205,000) |
Total amount recognized in other comprehensive income | (490,000) | 589,000 | 1,202,000 |
Effects of one-percentage point change in assumed health care cost trend rates | |||
One-Percentage Point Increase, Effect on aggregate service and interest cost | 5,000 | ||
One-Percentage Point Decrease, Effect on aggregate service and interest cost | (5,000) | ||
One-Percentage Point Increase, Effect on postretirement benefit obligation | 142 | ||
One-Percentage Point Decrease, Effect on postretirement benefit obligation | (129) | ||
Other Comprehensive Income | |||
Change in benefit obligation: | |||
Interest cost | 1,079,000 | 1,124,000 | 1,132,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 1,079,000 | 1,124,000 | 1,132,000 |
Recognized net actuarial loss | 775,000 | 751,000 | 816,000 |
Net periodic pension expense | (396,000) | (211,000) | (71,000) |
Net (gain) loss | (581,000) | 491,000 | 655,000 |
Amortization of gain (loss) | (775,000) | (751,000) | (816,000) |
Total amount recognized in other comprehensive income | (1,356,000) | (260,000) | (161,000) |
Total recognized in net periodic benefit cost and other comprehensive income | (1,752,000) | (471,000) | (232,000) |
SCBT Post-retirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 337,000 | 393,000 | 422,000 |
Interest cost | 11,000 | 13,000 | 13,000 |
Actuarial (gain) loss | 2,000 | (29,000) | 1,000 |
Benefits paid | (41,000) | (40,000) | (43,000) |
Benefit obligation at end of year | 309,000 | 337,000 | 393,000 |
Change in plan assets: | |||
Employer contribution | 41,000 | 40,000 | 43,000 |
Benefits paid | (41,000) | (40,000) | (43,000) |
Funded status | $ (309,000) | $ (337,000) | $ (393,000) |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate (as a percent) | 3.80% | 3.20% | 3.50% |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 3.20% | 3.50% | 3.30% |
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for next fiscal year (as a percent) | 5.00% | 5.00% | 5.00% |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | $ 11,000 | $ 13,000 | $ 13,000 |
Recognized net actuarial loss | 6,000 | 10,000 | 9,000 |
Net periodic pension expense | 16,000 | 23,000 | 21,000 |
Net (gain) loss | 2,000 | (29,000) | 19,000 |
Amortization of gain (loss) | (6,000) | (10,000) | (9,000) |
Total amount recognized in other comprehensive income | (4,000) | (39,000) | 10,000 |
Total recognized in net periodic benefit cost and other comprehensive income | 12,000 | (16,000) | 31,000 |
Estimated net loss for the retiree medical plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | |||
Estimated net loss for the plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | 6,000,000 | ||
Effects of one-percentage point change in assumed health care cost trend rates | |||
One-Percentage Point Increase, Effect on aggregate service and interest cost | 1,000 | ||
One-Percentage Point Decrease, Effect on aggregate service and interest cost | (1,000) | ||
One-Percentage Point Increase, Effect on postretirement benefit obligation | 16,000 | ||
One-Percentage Point Decrease, Effect on postretirement benefit obligation | (15,000) | ||
Estimated future benefit payments (including expected future service as appropriate) | |||
2,019 | 39,000 | ||
2,020 | 37,000 | ||
2,021 | 36,000 | ||
2,022 | 34,000 | ||
2,023 | 32,000 | ||
2024-2028 | 122,000 | ||
Estimated future benefit payments | 300,000 | ||
Expected contributions in the next fiscal year | |||
Amount of expected contributions in the next fiscal year | 39,000 | ||
FFCH Post-retirement Benefit Plan | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 2,392,000 | 2,447,000 | 2,092,000 |
Interest cost | 73,000 | 81,000 | 74,000 |
Actuarial (gain) loss | 89,000 | 126,000 | 546,000 |
less: federal subsidy on benefits paid | 13,000 | 12,000 | 15,000 |
Benefit obligation at end of year | 2,281,000 | 2,392,000 | 2,447,000 |
Change in plan assets: | |||
Employer contribution | 286,000 | 274,000 | 280,000 |
Benefits paid | (286,000) | (274,000) | (280,000) |
Funded status | $ (2,281,000) | $ (2,392,000) | $ (2,447,000) |
Weighted-average assumptions used to determine the benefit obligation | |||
Discount rate (as a percent) | 3.80% | 3.20% | 3.50% |
Weighted-average assumptions used to determine net periodic pension cost | |||
Discount rate (as a percent) | 3.20% | 3.50% | 3.70% |
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for next fiscal year (as a percent) | 5.00% | 5.00% | 5.00% |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | $ 73,000 | $ 81,000 | $ 74,000 |
Estimated net loss for the retiree medical plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | |||
Estimated net loss for the plan that will be amortized from other comprehensive income into periodic benefit cost over the next fiscal year | 160,000 | ||
Estimated future benefit payments (including expected future service as appropriate) | |||
2,019 | 260,000 | ||
2,020 | 251,000 | ||
2,021 | 242,000 | ||
2,022 | 231,000 | ||
2,023 | 219,000 | ||
2024-2028 | 879,000 | ||
Estimated future benefit payments | 2,082,000 | ||
Expected contributions in the next fiscal year | |||
Amount of expected contributions in the next fiscal year | 260,000 | ||
FFCH Post-retirement Benefit Plan | Other Comprehensive Income | |||
Change in benefit obligation: | |||
Interest cost | 73,000 | 81,000 | 74,000 |
Components of net periodic pension cost and other amounts recognized in other comprehensive income | |||
Interest cost | 73,000 | 81,000 | 74,000 |
Recognized net actuarial loss | 154,000 | 147,000 | 95,000 |
Net periodic pension expense | 227,000 | 228,000 | 169,000 |
Net (gain) loss | 89,000 | 126,000 | 546,000 |
Amortization of gain (loss) | (154,000) | (147,000) | (95,000) |
Total amount recognized in other comprehensive income | (65,000) | (21,000) | 451,000 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 162,000 | $ 207,000 | $ 620,000 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options - (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | 180 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | |
Number of shares | ||||
Exercisable at the end of the period (in shares) | 148,702 | |||
Stock Options | ||||
Number of shares | ||||
Outstanding at the beginning of the period (in shares) | 218,689 | 246,535 | 285,405 | |
Granted (in shares) | 34,407 | 33,634 | 25,682 | |
Exercised (in shares) | (33,424) | (59,480) | (63,527) | |
Forfeited (in shares) | (5,806) | (2,000) | (1,025) | |
Outstanding at the end of the period (in shares) | 213,866 | 218,689 | 246,535 | 213,866 |
Exercisable at the end of the period (in shares) | 140,115 | 185,758 | 140,115 | |
Weighted-Average Exercise Price | ||||
Outstanding at the beginning of the period (in dollars per share) | $ 52.75 | $ 42.53 | $ 38.85 | |
Granted (in dollars per share) | 91.05 | 91.23 | 63.79 | |
Exercised (in dollars per share) | 30.88 | 33.03 | 34.70 | |
Forfeited (in dollars per share) | 91.35 | 26.01 | 35.20 | |
Outstanding at the end of the period (in dollars per share) | 61.28 | 52.75 | 42.53 | $ 61.28 |
Exercisable at the end of the period (in dollars per share) | 49.41 | 41.62 | 36.33 | $ 49.41 |
Weighted-average fair value of options granted during the year (in dollars per share) | $ 28.01 | $ 35.42 | $ 25.19 | |
Aggregate Intrinsic Value | ||||
Outstanding at the end of the period | $ 1.9 | $ 7.7 | $ 11.1 | $ 1.9 |
Exercisable at the end of the period | 1.9 | 6.8 | 9.5 | $ 1.9 |
Exercised at the end of the period | $ 2 | $ 3.3 | $ 2.5 | |
Incentive stock options | ||||
Share-Based Compensation | ||||
Expiration period | 10 years | |||
Incentive stock options | Maximum | ||||
Share-Based Compensation | ||||
Vesting period | 4 years | |||
2012 plan | ||||
Share-Based Compensation | ||||
Number of shares registered under the 2012 plan | 1,684,000 | 1,684,000 | ||
2012 plan | Restricted Stock | Maximum | ||||
Share-Based Compensation | ||||
Number of shares registered under the 2012 plan | 817,476 | 817,476 | ||
1999 plan | ||||
Share-Based Compensation | ||||
Options granted (in shares) | 0 | |||
Plan 2004 And 2012 | Incentive stock options | ||||
Share-Based Compensation | ||||
Vesting percentage | 25.00% |
Share-Based Compensation - Info
Share-Based Compensation - Information pertaining to options outstanding - (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 69.48 | $ 61.42 |
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | $ 91.35 | $ 69.48 |
Options Outstanding | |||
Number outstanding (in shares) | 213,866 | ||
Weighted Average Remaining Contractual Life | 5 years 7 months 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 61.28 | ||
Options Exercisable | |||
Number outstanding (in shares) | 140,115 | ||
Weighted Average Exercise Price (in dollars per share) | $ 49.41 | ||
Weighted Average Remaining Contractual Life | 4 years 3 months 18 days | ||
Restricted Stock | |||
Vesting schedule of shares | |||
2,019 | 37,574 | ||
2,020 | 47,373 | ||
2,021 | 3,905 | ||
2,022 | 4,174 | ||
2,023 | 3,405 | ||
Thereafter | 7,988 | ||
$26.01 - $ 40.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | $ 26.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 40 | ||
Options Outstanding | |||
Number outstanding (in shares) | 52,515 | ||
Weighted Average Remaining Contractual Life | 2 years 2 months 12 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 31.88 | ||
Options Exercisable | |||
Number outstanding (in shares) | 52,508 | ||
Weighted Average Exercise Price (in dollars per share) | $ 31.88 | ||
$40.01 - $ 55.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 40.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 55 | ||
Options Outstanding | |||
Number outstanding (in shares) | 24,507 | ||
Weighted Average Remaining Contractual Life | 3 years 10 months 24 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 41.42 | ||
Options Exercisable | |||
Number outstanding (in shares) | 24,507 | ||
Weighted Average Exercise Price (in dollars per share) | $ 41.42 | ||
$55.01 - $ 70.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 55.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 70 | ||
Options Outstanding | |||
Number outstanding (in shares) | 74,609 | ||
Weighted Average Remaining Contractual Life | 6 years 1 month 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.61 | ||
Options Exercisable | |||
Number outstanding (in shares) | 55,423 | ||
Weighted Average Exercise Price (in dollars per share) | $ 63.80 | ||
$70.01 - $ 85.00 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 70.01 | ||
Range of exercise prices, high end of range (in dollars per share) | 85 | ||
$85.01 - $ 91.35 | |||
Share Based Compensation | |||
Range of exercise prices, low end of range (in dollars per share) | 85.01 | ||
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | ||
Options Outstanding | |||
Number outstanding (in shares) | 62,235 | ||
Weighted Average Remaining Contractual Life | 8 years 7 months 6 days | ||
Weighted Average Exercise Price (in dollars per share) | $ 91.12 | ||
Options Exercisable | |||
Number outstanding (in shares) | 7,677 | ||
Weighted Average Exercise Price (in dollars per share) | $ 90.84 |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted average assumptions used in valuing options - (Details) | 12 Months Ended | 90 Months Ended | ||
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Jun. 30, 2009 | |
Employee Stock Purchase Plan | ||||
Additional disclosures | ||||
Compensation expense | $ | $ 82,000 | $ 43,000 | $ 48,000 | |
Employee Stock Purchase Plan | ||||
Number of shares of common stock registered in connection with the establishment of an Employee Stock Purchase Plan | 363,825 | |||
Requisite age of employees to be eligible to participate in the plan | 21 years | |||
Requisite service period to be eligible to participate in the plan | 6 months | |||
Discount rate for eligible employees to purchase company stock (as a percent) | 5.00% | 15.00% | ||
Minimum | Employee Stock Purchase Plan | ||||
Employee Stock Purchase Plan | ||||
Shares available for issuance under the plan | 71,000 | |||
Maximum | Employee Stock Purchase Plan | ||||
Employee Stock Purchase Plan | ||||
Estimated subscription date fair value (as a percent) | 95.00% | |||
Stock Options | ||||
Weighted-average assumptions | ||||
Dividend yield (as a percent) | 1.46% | 1.40% | 1.60% | |
Expected life | 8 years 6 months | 8 years 6 months | 8 years 6 months | |
Expected volatility (as a percent) | 28.00% | 37.20% | 40.60% | |
Risk-free interest rate (as a percent) | 2.54% | 2.43% | 1.90% | |
Additional disclosures | ||||
Total unrecognized compensation cost related to non vested stock option grants | $ | $ 1,400,000 | |||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 1 month 10 days | |||
Total fair value of shares vested during the period | $ | $ 700,000 | $ 578,000 | $ 455,000 | |
Compensation expense | $ | $ 751,000 | 784,000 | 545,000 | |
Restricted Stock | ||||
Additional disclosures | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 7 months 13 days | |||
Compensation expense | $ | $ 2,500,000 | $ 2,500,000 | $ 2,700,000 | |
Restricted Stock Activity and RSUs | ||||
Nonvested at the beginning of the period (in shares) | 142,692 | |||
Granted (in shares) | 7,836 | 26,053 | 44,301 | |
Vested (in shares) | (42,342) | |||
Forfeited (in shares) | (3,767) | |||
Nonvested at the end of the period (in shares) | 104,419 | 142,692 | ||
Weighted-Average Grant-Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 59.66 | |||
Granted (in dollars per share) | $ / shares | 87.37 | $ 89.11 | $ 67.51 | |
Vested (in dollars per share) | $ / shares | 55.96 | |||
Forfeited (in dollars per share) | $ / shares | 81.29 | |||
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 62.45 | $ 59.66 | ||
Additional disclosures | ||||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ | $ 2,400,000 | |||
Total fair value of shares vested during the period | $ | $ 2,500,000 | $ 3,100,000 | $ 3,200,000 | |
Restricted Stock | Employees | Minimum | ||||
Additional disclosures | ||||
Vesting period | 4 years | |||
Restricted Stock | Non-employee directors | Maximum | ||||
Additional disclosures | ||||
Vesting period | 12 years | |||
Restricted Stock Units | ||||
Additional disclosures | ||||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 2 years 18 days | |||
Compensation expense | $ | $ 5,500,000 | $ 3,600,000 | $ 2,900,000 | |
Restricted Stock Activity and RSUs | ||||
Nonvested at the beginning of the period (in shares) | 140,036 | |||
Granted (in shares) | 113,270 | 77,301 | 68,842 | |
Vested (in shares) | (45,775) | |||
Forfeited (in shares) | (3,778) | |||
LTIP Adjustment (in shares) | 3,213 | |||
Nonvested at the end of the period (in shares) | 200,540 | 140,036 | ||
Weighted-Average Grant-Date Fair Value | ||||
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 78.49 | |||
Granted (in dollars per share) | $ / shares | 86.12 | |||
Vested (in dollars per share) | $ / shares | 66.34 | |||
Forfeited (in dollars per share) | $ / shares | $ 91.58 | |||
LTIP adjustment (in dollars per share) | $ / shares | 89.40 | |||
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 85.15 | $ 78.49 | ||
Additional disclosures | ||||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ | $ 8,500,000 | |||
Total fair value of shares vested during the period | $ | $ 5,700,000 | $ 5,000,000 | $ 4,300,000 | |
Target RSU award level (as a percent) | 96.70% | |||
Performance based restricted stock units | ||||
Additional disclosures | ||||
Performance period | 3 years | |||
Other Performance based restricted stock units | ||||
Additional disclosures | ||||
Performance period | 1 year | |||
Timed based restricted stock units | ||||
Additional disclosures | ||||
Performance period | 4 years |
Stock Repurchase Program (Detai
Stock Repurchase Program (Details) - USD ($) $ in Millions | Feb. 23, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2019 | Jan. 25, 2019 | Mar. 31, 2017 | Feb. 29, 2004 |
Stock repurchase program | ||||||||||
Stock Repurchased During Period, Shares | 32,900 | |||||||||
Stock Repurchased During Period, Value | $ 68.4 | $ 68.4 | $ 2.1 | |||||||
Announced stock repurchase program | ||||||||||
Stock repurchase program | ||||||||||
Shares authorized under repurchase program | 250,000 | |||||||||
Stock Repurchased During Period, Shares | 1,000,000 | 0 | ||||||||
Stock Repurchased During Period, Value | $ 68.4 | |||||||||
Other stock repurchase arrangements | ||||||||||
Stock repurchase program | ||||||||||
Stock Repurchased During Period, Shares | 25,251 | 61,125 | 55,537 | |||||||
Stock Repurchased During Period, Value | $ 2.2 | $ 5.5 | $ 3.9 | |||||||
2019 Stock Repurchase Program | Subsequent event | ||||||||||
Stock repurchase program | ||||||||||
Stock Repurchased During Period, Shares | 500,000 | |||||||||
Stock Repurchased During Period, Value | $ 33.3 | |||||||||
2019 Stock Repurchase Program | Subsequent event | Maximum | ||||||||||
Stock repurchase program | ||||||||||
Shares authorized under repurchase program | 1,000,000 | 1,000,000 | ||||||||
2004 plan | ||||||||||
Stock repurchase program | ||||||||||
Shares authorized under repurchase program | 1,000,000 |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Future minimum lease payments | |||
2,019 | $ 7,497 | ||
2,020 | 7,580 | ||
2,021 | 7,423 | ||
2,022 | 6,823 | ||
2,023 | 6,123 | ||
Thereafter | 16,510 | ||
Total future minimum payments due | 51,956 | ||
Total lease expense | $ 7,900 | $ 6,200 | $ 5,700 |
Contingent Liabilities (Details
Contingent Liabilities (Details) | Dec. 31, 2018item |
Contingent Liabilities | |
Number of pending or threatened litigation | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - Directors and executive officers, their immediate families and their business interests - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transactions | ||
Additional loans made | $ 12.3 | |
South State Bank (the Bank) | ||
Related Party Transactions | ||
Loans outstanding | 23.5 | $ 7.8 |
Additional loans made | 23.3 | |
Repayments received | 19.9 | |
Related party deposits | $ 17.7 | $ 20.8 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Standby letters of credit | ||
Financial instruments, whose contract amounts represent credit risk | ||
Expiration period of standby letters of credit | 1 year | |
South State Bank (the Bank) | ||
Financial instruments, whose contract amounts represent credit risk | ||
Off balance sheet financial instruments | $ 2,781,626 | $ 2,935,657 |
South State Bank (the Bank) | Commitments to extend credit | ||
Financial instruments, whose contract amounts represent credit risk | ||
Off balance sheet financial instruments | 2,748,901 | 2,905,213 |
South State Bank (the Bank) | Standby letters of credit and financial guarantees | ||
Financial instruments, whose contract amounts represent credit risk | ||
Off balance sheet financial instruments | $ 32,725 | $ 30,444 |
Fair Value - Assets and liabili
Fair Value - Assets and liabilities measured at fair value on a recurring basis - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | ||
Derivative financial instruments | $ 3,800 | $ 2,400 |
Securities available for sale | 1,517,067 | 1,648,193 |
Liabilities | ||
Derivative financial instruments | 4,300 | 2,600 |
Government-sponsored entities debt | ||
Assets | ||
Securities available for sale | 48,251 | 85,509 |
State and municipal obligations | ||
Assets | ||
Securities available for sale | 200,768 | 220,437 |
Corporate securities. | ||
Assets | ||
Securities available for sale | 1,560 | |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Loans held for sale | 22,925 | 70,890 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 34,727 | 31,119 |
Recurring basis | ||
Assets | ||
Derivative financial instruments | 5,090 | 3,306 |
Loans held for sale | 22,925 | 70,890 |
Securities available for sale | 1,517,067 | 1,648,193 |
Mortgage servicing rights | 34,727 | 31,119 |
Fair value of Assets, Total | 1,579,809 | 1,753,508 |
Liabilities | ||
Derivative financial instruments | 4,421 | 3,248 |
Changes in fair value of assets | ||
Transfers between the fair value hierarchy levels | 0 | 0 |
Recurring basis | Government-sponsored entities debt | ||
Assets | ||
Securities available for sale | 48,251 | 85,509 |
Recurring basis | State and municipal obligations | ||
Assets | ||
Securities available for sale | 200,768 | 220,437 |
Recurring basis | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,268,048 | 1,340,687 |
Recurring basis | Corporate securities. | ||
Assets | ||
Securities available for sale | 1,560 | |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative financial instruments | 5,090 | 3,306 |
Loans held for sale | 22,925 | 70,890 |
Securities available for sale | 1,517,067 | 1,648,193 |
Fair value of Assets, Total | 1,545,082 | 1,722,389 |
Liabilities | ||
Derivative financial instruments | 4,421 | 3,248 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government-sponsored entities debt | ||
Assets | ||
Securities available for sale | 48,251 | 85,509 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | ||
Assets | ||
Securities available for sale | 200,768 | 220,437 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ||
Assets | ||
Securities available for sale | 1,268,048 | 1,340,687 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Corporate securities. | ||
Assets | ||
Securities available for sale | 1,560 | |
Recurring basis | Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Mortgage servicing rights | 34,727 | 31,119 |
Fair value of Assets, Total | 34,727 | 31,119 |
Changes in fair value of assets | ||
Fair value of assets at the beginning of the period | 31,119 | 29,037 |
Servicing assets that resulted from transfers of financial assets | 5,962 | 6,439 |
Changes in fair value assets due to valuation inputs or assumptions | 1,861 | (595) |
Changes in fair value due to decay | (4,215) | (3,762) |
Fair value of assets at the end of the period | 34,727 | 31,119 |
Unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities | $ 0 | $ 0 |
Fair Value - Assets and liabi_2
Fair Value - Assets and liabilities measured at fair value on a nonrecurring basis - (Details) $ in Thousands | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($)item | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Fair Value | ||||
Other Real Estate | $ 11,410 | $ 11,203 | $ 18,316 | $ 30,554 |
Nonrecurring basis | OREO | Fair Value | ||||
Fair Value | ||||
Other Real Estate | 11,410 | 11,203 | ||
Nonrecurring basis | Non-acquired impaired loans | Fair Value | ||||
Fair Value | ||||
Other Real Estate | $ 13,164 | $ 10,495 | ||
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans | ||||
Quantitative Information about Level 3 Fair Value Measurements | ||||
Long-term Debt, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember | ||
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember | ||
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Impaired loans | Weighted average | ||||
Quantitative Information about Level 3 Fair Value Measurements | ||||
Discount rate (as a percent) | item | 0.03 | 0.03 | ||
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | OREO | ||||
Fair Value | ||||
Other Real Estate | $ 11,410 | $ 11,203 | ||
Quantitative Information about Level 3 Fair Value Measurements | ||||
Long-term Debt, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember | ||
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputCostToSellMember | us-gaap:MeasurementInputCostToSellMember | ||
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | OREO | Weighted average | ||||
Quantitative Information about Level 3 Fair Value Measurements | ||||
Discount rate (as a percent) | item | 0.23 | 0.21 | ||
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | Non-acquired impaired loans | ||||
Fair Value | ||||
Other Real Estate | $ 13,164 | $ 10,495 |
Fair Value - Estimated fair val
Fair Value - Estimated fair value and related carrying amount, of the Company’s financial instruments - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financial assets: | |||
Loans held for sale | $ 22,925 | $ 70,890 | |
Financial liabilities: | |||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase. | 270,649 | 286,857 | |
Increase (Decrease) in Loans Held-for-sale | 391,428 | 636,836 | $ 690,495 |
Other borrowings | 266,084 | 216,385 | |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 408,983 | 377,627 | |
Investment securities | 1,542,671 | 1,673,769 | |
Loans held for sale | 22,925 | 70,890 | |
Loans, net of allowance for loan losses (1) | 10,962,037 | 10,575,417 | |
Accrued interest receivable | 35,997 | 32,727 | |
Mortgage servicing rights | 34,727 | 31,119 | |
Interest rate swap - non-designated hedge | 3,824 | 2,367 | |
Other derivative financial instruments (mortgage banking related) | 1,267 | 939 | |
Financial liabilities: | |||
Deposits | 11,646,933 | 11,532,766 | |
Federal funds purchased and securities sold under agreements to repurchase | 270,649 | 286,857 | |
Other borrowings | 266,084 | 216,385 | |
Accrued interest payable | 4,719 | 2,789 | |
Interest rate swap - non-designated hedge | 4,373 | 2,750 | |
Interest rate swap - cash flow hedge | 48 | 246 | |
Other derivative financial instruments (Mortgage banking related) | 252 | ||
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 408,983 | 377,627 | |
Investment securities | 1,542,671 | 1,673,796 | |
Loans held for sale | 22,925 | 70,890 | |
Loans, net of allowance for loan losses (1) | 10,613,571 | 10,724,264 | |
Accrued interest receivable | 35,997 | 32,727 | |
Mortgage servicing rights | 34,727 | 31,119 | |
Interest rate swap - non-designated hedge | 3,824 | 2,367 | |
Other derivative financial instruments (mortgage banking related) | 1,267 | 939 | |
Financial liabilities: | |||
Deposits | 10,561,394 | 10,796,380 | |
Federal funds purchased and securities sold under agreements to repurchase | 270,649 | 286,857 | |
Other borrowings | 269,134 | 219,421 | |
Accrued interest payable | 4,719 | 2,789 | |
Interest rate swap - non-designated hedge | 4,373 | 2,750 | |
Interest rate swap - cash flow hedge | 48 | 246 | |
Other derivative financial instruments (Mortgage banking related) | 252 | ||
Commitments to extend credit | Fair Value | |||
Financial liabilities: | |||
Commitments to extend credit | (88,424) | 41,319 | |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 408,983 | 377,627 | |
Investment securities | 25,604 | 23,047 | |
Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Investment securities | 1,517,067 | 1,650,749 | |
Loans held for sale | 22,925 | 70,890 | |
Accrued interest receivable | 6,908 | 7,051 | |
Interest rate swap - non-designated hedge | 3,824 | 2,367 | |
Other derivative financial instruments (mortgage banking related) | 1,267 | 939 | |
Financial liabilities: | |||
Deposits | 10,561,394 | 10,796,380 | |
Federal funds purchased and securities sold under agreements to repurchase | 270,649 | 286,857 | |
Other borrowings | 269,134 | 219,421 | |
Accrued interest payable | 4,719 | 2,789 | |
Interest rate swap - non-designated hedge | 4,373 | 2,750 | |
Interest rate swap - cash flow hedge | 48 | 246 | |
Other derivative financial instruments (Mortgage banking related) | 252 | ||
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Financial liabilities: | |||
Commitments to extend credit | (88,424) | 41,319 | |
Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Loans, net of allowance for loan losses (1) | 10,613,571 | 10,724,264 | |
Accrued interest receivable | 29,089 | 25,676 | |
Mortgage servicing rights | $ 34,727 | $ 31,119 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Common equity Tier 1 to risk-weighted assets | |||
Actual, Capital Amount | $ 1,335,826 | $ 1,273,547 | |
Actual, Ratio (as a percent) | 12.05% | 11.59% | |
Required to be considered well capitalized, Capital Amount | $ 720,844 | $ 714,221 | |
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | |
Tier I capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,447,428 | $ 1,384,433 | |
Actual, Ratio (as a percent) | 13.05% | 12.60% | |
Minimum capital required, Ratio (as a percent) | 6.00% | 4.00% | |
Required to be considered well capitalized, Capital Amount | $ 887,192 | $ 879,042 | |
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | 8.00% | |
Total capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,503,561 | $ 1,432,843 | |
Actual, Ratio (as a percent) | 13.56% | 13.04% | |
Minimum capital required, Ratio (as a percent) | 8.00% | ||
Required to be considered well capitalized, Capital Amount | $ 1,108,990 | $ 1,098,802 | |
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | 10.00% | |
Tier I capital to average assets (leverage ratio) | |||
Actual, Capital Amount | $ 1,447,428 | $ 1,384,433 | |
Actual, Ratio (as a percent) | 10.65% | 10.36% | |
Minimum capital required, Ratio (as a percent) | 4.00% | ||
Required to be considered well capitalized, Capital Amount | $ 679,383 | $ 668,075 | |
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | 5.00% | |
Phase-In Schedule | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 706,981 | $ 631,811 | |
Minimum capital required, Ratio (as a percent) | 6.38% | 5.75% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 873,330 | $ 796,632 | |
Minimum capital required, Ratio (as a percent) | 7.88% | 7.25% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,095,128 | $ 1,016,392 | |
Minimum capital required, Ratio (as a percent) | 9.88% | 9.25% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 543,506 | $ 534,460 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
Fully Phased-In | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 776,293 | $ 769,162 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 942,642 | $ 933,982 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 8.50% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,164,440 | $ 1,153,742 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 10.50% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 543,506 | $ 534,460 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
Subsequent event | |||
Capital ratios | |||
Capital conversion buffer common equity Tier 1 of risk-weighted assets (as a percent) | 2.50% | ||
South State Bank (the Bank) | |||
Common equity Tier 1 to risk-weighted assets | |||
Actual, Capital Amount | $ 1,427,764 | $ 1,360,603 | |
Actual, Ratio (as a percent) | 12.87% | 12.38% | |
Required to be considered well capitalized, Capital Amount | $ 720,902 | $ 714,143 | |
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | |
Tier I capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,427,764 | $ 1,360,603 | |
Actual, Ratio (as a percent) | 12.87% | 12.38% | |
Required to be considered well capitalized, Capital Amount | $ 887,264 | $ 878,945 | |
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | 8.00% | |
Total capital to risk-weighted assets | |||
Actual, Capital Amount | $ 1,483,897 | $ 1,409,014 | |
Actual, Ratio (as a percent) | 13.38% | 12.82% | |
Required to be considered well capitalized, Capital Amount | $ 1,109,080 | $ 1,098,681 | |
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | 10.00% | |
Tier I capital to average assets (leverage ratio) | |||
Actual, Capital Amount | $ 1,427,764 | $ 1,360,603 | |
Actual, Ratio (as a percent) | 10.51% | 10.18% | |
Required to be considered well capitalized, Capital Amount | $ 679,234 | $ 667,987 | |
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | 5.00% | |
South State Bank (the Bank) | Phase-In Schedule | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 707,039 | $ 631,741 | |
Minimum capital required, Ratio (as a percent) | 6.38% | 5.75% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 873,401 | $ 796,544 | |
Minimum capital required, Ratio (as a percent) | 7.88% | 7.25% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,095,217 | $ 1,016,280 | |
Minimum capital required, Ratio (as a percent) | 9.88% | 9.25% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 543,387 | $ 534,390 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
South State Bank (the Bank) | Fully Phased-In | |||
Common equity Tier 1 to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 776,356 | $ 769,077 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | |
Tier I capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 942,718 | $ 933,879 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 8.50% | |
Total capital to risk-weighted assets | |||
Minimum capital required, Capital Amount | $ 1,164,534 | $ 1,153,615 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 10.50% | |
Tier I capital to average assets (leverage ratio) | |||
Minimum capital required, Capital Amount | $ 543,387 | $ 534,390 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | |
Minimum | |||
Common equity Tier 1 to risk-weighted assets | |||
Actual, Ratio (as a percent) | 4.50% |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company - Condensed Balance Sheets - (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS. | ||||
Investment securities available for sale | $ 1,517,067 | $ 1,648,193 | ||
Other Assets | 119,466 | 126,590 | ||
Total assets | 14,676,328 | 14,466,589 | ||
Liabilities. | 12,310,032 | 12,157,669 | ||
Shareholders' equity | 2,366,296 | 2,308,920 | $ 1,134,588 | $ 1,059,384 |
Total liabilities and shareholders' equity | 14,676,328 | 14,466,589 | ||
Parent company | ||||
ASSETS. | ||||
Cash | 21,092 | 25,879 | ||
Investment in subsidiaries | 2,461,836 | 2,399,744 | ||
Other Assets | 54 | 1,111 | ||
Total assets | 2,482,982 | 2,426,734 | ||
Liabilities. | 116,686 | 117,813 | ||
Shareholders' equity | 2,366,296 | 2,308,921 | ||
Total liabilities and shareholders' equity | $ 2,482,982 | $ 2,426,734 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company - Condensed Statements of Income - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income: | |||
Income before provision for income taxes | $ 224,255 | $ 168,805 | $ 154,042 |
Applicable income tax benefit | (45,384) | (81,251) | (52,760) |
Net income | 178,871 | 87,554 | 101,282 |
Net income | 178,871 | 87,554 | 101,282 |
Parent company | |||
Income: | |||
Dividends from subsidiary | 117,298 | 63,703 | 36,328 |
Operating income | 67 | 580 | 177 |
Total income | 117,365 | 64,283 | 36,505 |
Operating expenses | 15,302 | 15,482 | 12,688 |
Income before provision for income taxes | 102,063 | 48,801 | 23,817 |
Applicable income tax benefit | 3,055 | 5,053 | 4,270 |
Equity in undistributed earnings of subsidiary (excess distribution) | 73,753 | 33,700 | 73,195 |
Net income | $ 178,871 | $ 87,554 | $ 101,282 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 178,871 | $ 87,554 | $ 101,282 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 35,696 | 28,704 | 21,582 |
Share-based compensation | 8,783 | 6,934 | 6,220 |
Gain on sale of securities available for sale | 655 | (1,421) | (122) |
Decrease (increase) in other assets | (1,168) | (32,324) | (13,799) |
(Decrease) increase in other liabilities | 3,359 | 7,076 | 9,068 |
Net cash provided by operating activities | 283,711 | 197,890 | 138,011 |
Cash flows from investing activities: | |||
Net cash inflow from acquisitions | 185,163 | ||
Net cash used in investing activities | (282,149) | (60,900) | (690,919) |
Cash flows from financing activities: | |||
Repayment of other borrowings | (540,007) | (390,811) | (14) |
Common stock issuance | 1,331 | 1,055 | 925 |
Common stock repurchased | (70,577) | (5,512) | (5,981) |
Dividends paid on common stock | (50,557) | (38,623) | (29,285) |
Stock options exercised | 1,032 | 1,965 | 2,204 |
Net cash (used in) provided by financing activities | 29,794 | (133,811) | 231,562 |
Net increase (decrease) in cash and cash equivalents | 31,356 | 3,179 | (321,346) |
Cash and cash equivalents at beginning of period | 377,627 | 374,448 | 695,794 |
Cash and cash equivalents at end of period | 408,983 | 377,627 | 374,448 |
Parent company | |||
Cash flows from operating activities: | |||
Net income | 178,871 | 87,554 | 101,282 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 666 | 666 | 222 |
Share-based compensation | 8,783 | 6,934 | 6,220 |
Gain on sale of securities available for sale | (486) | (122) | |
Decrease (increase) in other assets | 1,465 | (1,564) | 26 |
(Decrease) increase in other liabilities | (2,048) | (6,341) | 3,750 |
Undistributed earnings of subsidiary | (73,753) | (33,700) | (73,195) |
Net cash provided by operating activities | 113,984 | 53,063 | 38,183 |
Cash flows from investing activities: | |||
Proceeds from sales and calls of other investment securities | 687 | 137 | |
Net cash inflow from acquisitions | 15,468 | ||
Net cash used in investing activities | 16,155 | 137 | |
Cash flows from financing activities: | |||
Repayment of other borrowings | (30,000) | ||
Common stock issuance | 1,331 | 1,056 | 925 |
Common stock repurchased | (70,577) | (5,512) | (5,981) |
Dividends paid on common stock | (50,557) | (38,623) | (29,285) |
Stock options exercised | 1,032 | 1,965 | 2,204 |
Net cash (used in) provided by financing activities | (118,771) | (71,114) | (32,137) |
Net increase (decrease) in cash and cash equivalents | (4,787) | (1,896) | 6,183 |
Cash and cash equivalents at beginning of period | 25,879 | 27,775 | 21,592 |
Cash and cash equivalents at end of period | $ 21,092 | $ 25,879 | $ 27,775 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2009 | |
Derivative Financial Instruments | |||
Notional Amount | $ 896,883,000 | $ 745,613,000 | |
Estimated Fair Value Gain | 5,090,000 | 3,306,000 | |
Estimated Fair Value Loss | $ 4,421,000 | 3,248,000 | |
Variable rate basis, variable rate receivable on notional amount | three-month LIBOR | ||
After-tax unrealized gain on cash flow hedge in other comprehensive income | $ 154,000 | 156,000 | |
Cash flow hedge liability | 48,000 | 246,000 | |
Ineffectiveness in the cash flow hedge | 0 | 0 | |
Collateral provided | 300,000 | 300,000 | |
Gain or loss recorded | 0 | 0 | |
Interest Rate Derivative Assets, at Fair Value | 3,800,000 | 2,400,000 | |
Interest Rate Derivative Liabilities, at Fair Value | 4,300,000 | 2,600,000 | |
Interest Rate Derivatives, at Fair Value, Net | 499,000 | 291,000 | |
Estimated gain (loss) on fair value of open contracts related to mortgage servicing rights | 1,200,000 | (252,000) | |
Mortgage loan pipeline | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | 50,442,000 | 71,477,000 | |
Expected closures | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | 37,832,000 | 53,608,000 | |
Interest rate contracts | |||
Derivative Financial Instruments | |||
Notional Amount | 737,000,000 | 551,500,000 | |
Interest rate contracts | LIBOR | |||
Derivative Financial Instruments | |||
Notional Amount | $ 8,000,000 | ||
Interest rate contracts | Cash flow hedge | |||
Derivative Financial Instruments | |||
Notional Amount | $ 8,000,000 | ||
Interest rate contracts | Cash flow hedge | LIBOR | |||
Derivative Financial Instruments | |||
Fixed rate payable on notional amount (as a percent) | 4.06% | ||
Mortgage servicing rights hedging | Non-designated hedges | |||
Derivative Financial Instruments | |||
Notional Amount | $ 94,500,000 | 94,000,000 | |
Mortgage servicing rights hedging | Non-designated hedges | Other Assets. | |||
Derivative Financial Instruments | |||
Notional Amount | 94,500,000 | 94,000,000 | |
Estimated Fair Value Gain | 1,184,000 | ||
Estimated Fair Value Loss | 252,000 | ||
Mortgage loan pipeline commitments | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | 705,000 | 920,000 | |
Forward commitments | |||
Obligation under forward commitments, the fair value of those obligations along with the fair value of derivative instruments associated with forward commitments | |||
Obligation | 54,533,000 | 89,317,000 | |
Fair value of forward commitments | 621,000 | (19,000) | |
Forward commitments | Non-designated hedges | Other Assets. | |||
Derivative Financial Instruments | |||
Notional Amount | 54,533,000 | 89,317,000 | |
Estimated Fair Value Gain | 83,000 | 939,000 | |
Interest rate swap | |||
Derivative Financial Instruments | |||
Estimated Fair Value Gain | 1,000 | ||
Estimated Fair Value Loss | 207,000 | ||
Interest rate swap | Cash flow hedge | Other Liabilities. | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 8,000,000 | 8,000,000 | |
Estimated Fair Value Loss | 48,000 | 246,000 | |
Interest rate swap | Fair Value Hedging | Other Assets. | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 2,824,000 | 2,824,000 | |
Estimated Fair Value Loss | 51,000 | 92,000 | |
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Borrower | |||
Derivative Financial Instruments | |||
Notional Amount | 368,513,000 | 275,736,000 | |
Estimated Fair Value Gain | 3,105,000 | 1,899,000 | |
Estimated Fair Value Loss | 4,193,000 | 2,658,000 | |
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Counterparty | |||
Derivative Financial Instruments | |||
Notional Amount | 368,513,000 | 275,736,000 | |
Estimated Fair Value Gain | 718,000 | $ 468,000 | |
Estimated Fair Value Loss | $ 129,000 |
Loan Servicing, Mortgage Orig_3
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
MSRs | |||||
Changes in the fair value of MSRs and its offsetting hedge. | |||||
Increase (decrease) in fair value of MSRs | $ 1,861,000 | $ (595,000) | $ 560,000 | ||
Decay of MSRs | (4,215,000) | (3,762,000) | (4,153,000) | ||
Gains (loss) related to derivatives | (953,000) | 200,000 | (402,000) | ||
Net effect on statements of income | $ (3,307,000) | $ (4,157,000) | $ (3,995,000) | ||
Characteristics and sensitivity analysis of the MSR | |||||
Composition of residential loans serviced for others | 100.00% | 100.00% | |||
Weighted average life (in years) | 7 years 10 months 17 days | 7 years 7 months 21 days | |||
Constant Prepayment rate (CPR) (as a percent) | 7.30% | 7.70% | |||
Weighted average discount rate (as a percent) | 9.40% | 9.60% | |||
Effect on fair value due to change in interest rates: | |||||
25 basis point increase | $ 1,504,000 | $ 1,485,000 | |||
50 basis point increase | 2,740,000 | 2,664,000 | |||
25 basis point decrease | (1,981,000) | (1,850,000) | |||
50 basis point decrease | (4,421,000) | (4,014,000) | |||
Custodial escrow balances maintained in connection with the loan servicing | $ 16,200,000 | $ 15,300,000 | |||
Fixed-rate mortgage loans | |||||
Characteristics and sensitivity analysis of the MSR | |||||
Composition of residential loans serviced for others | 99.80% | 99.70% | |||
Adjustable-rate mortgage loans | |||||
Characteristics and sensitivity analysis of the MSR | |||||
Composition of residential loans serviced for others | 0.20% | 0.30% | |||
First Financial Holdings, Inc. ("First Financial") | |||||
Loans held for sale, loan servicing and mortgage origination | |||||
Residential mortgages serviced for others | $ 3,100,000,000 | $ 2,900,000,000 | |||
Contractually specified servicing fees earned | $ 7,600,000 | $ 7,200,000 | |||
First Financial Holdings, Inc. ("First Financial") | MSRs | |||||
Loans held for sale, loan servicing and mortgage origination | |||||
Mortgage servicing rights | 31,100,000 | 31,100,000 | $ 34,700,000 | $ 31,100,000 | |
Analysis of the activity in the MSRs | |||||
Balance at beginning of the period | 31,100,000 | ||||
Balance at end of period | $ 34,700,000 | $ 31,100,000 |
Loan Servicing, Mortgage Orig_4
Loan Servicing, Mortgage Origination, and Loans Held for Sale - Mandatory cash forwards - (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loan sales | $ 645,700 | $ 746,900 |
Loan securitizations and loan sales | $ 498,700 | $ 565,000 |
Percentage of loan securitizations and loan sales | 77.20% | 75.70% |
Loans held for sale | $ 22,925 | $ 70,890 |
Residential mortgage loans to be sold in secondary market | ||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Residential mortgage loans held for sale | 45,500 | |
Residential mortgage loans awaiting sale in secondary market | Minimum | ||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loans held for sale, settlement period | 15 days | |
Residential mortgage loans awaiting sale in secondary market | Maximum | ||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loans held for sale, settlement period | 45 days | |
Park Sterling Corporation | ||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | ||
Loans held for sale, commercial | $ 25,400 |
Investments in Qualified Affo_2
Investments in Qualified Affordable Housing Projects (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Investment In Qualified Affordable Housing Projects. | ||
Tax credits and other tax benefits | $ 4.6 | $ 3.3 |
Amortization | 3.8 | 3 |
Carrying value | 44 | 36.6 |
Original investment value | 57.9 | 57.9 |
Funding obligation | 17.5 | $ 18.5 |
Amount repaid | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 23, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2016 | Jan. 31, 2019 | Jan. 25, 2019 | Mar. 31, 2017 |
Subsequent events | ||||||||
Number of shares repurchased | 32,900 | |||||||
Cost of shares repurchased | $ 68.4 | $ 68.4 | $ 2.1 | |||||
2004 Stock Repurchase Program | ||||||||
Subsequent events | ||||||||
Shares authorized under repurchase program | 1,000,000 | |||||||
Number of shares repurchased | 1,000,000 | |||||||
Subsequent event | 2019 Stock Repurchase Program | ||||||||
Subsequent events | ||||||||
Number of shares repurchased | 500,000 | |||||||
Cost of shares repurchased | $ 33.3 | |||||||
Subsequent event | 2019 Stock Repurchase Program | Weighted average | ||||||||
Subsequent events | ||||||||
Share Price | $ 66.53 | |||||||
Subsequent event | 2019 Stock Repurchase Program | Maximum | ||||||||
Subsequent events | ||||||||
Shares authorized under repurchase program | 1,000,000 | 1,000,000 | ||||||
Shares available for repurchase | 500,000 |