Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 30, 2019 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-12669 | |
Entity Registrant Name | SOUTH STATE CORP | |
Entity Incorporation, State or Country Code | SC | |
Entity Tax Identification Number | 57-0799315 | |
Entity Address, Address Line One | 520 Gervais Street | |
Entity Address, City or Town | Columbia | |
Entity Address, State or Province | SC | |
Entity Address, Postal Zip Code | 29201 | |
City Area Code | 800 | |
Local Phone Number | 277-2175 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | SSB | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 33,742,062 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000764038 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Cash and cash equivalents: | |||
Cash and due from banks | $ 258,357 | $ 251,411 | $ 234,011 |
Interest-bearing deposits with banks | 460,837 | 124,895 | 25,950 |
Federal funds sold and securities purchased under agreements to resell | 32,677 | 47,348 | |
Total cash and cash equivalents | 719,194 | 408,983 | 307,309 |
Investment securities: | |||
Securities held to maturity (fair value of $0, $0 and $500, respectively) | 500 | ||
Securities available for sale, at fair value | 1,813,134 | 1,517,067 | 1,551,281 |
Other investments | 49,124 | 25,604 | 19,229 |
Total investment securities | 1,862,258 | 1,542,671 | 1,571,010 |
Loans held for sale | 87,393 | 22,925 | 33,752 |
Loans: | |||
Loans, net | 11,229,892 | 10,962,037 | 10,855,344 |
Other real estate owned | 13,415 | 11,410 | 12,119 |
Premises and equipment, net | 323,506 | 241,076 | 241,909 |
Bank owned life insurance | 233,206 | 230,105 | 229,075 |
Deferred tax assets | 27,844 | 37,128 | 47,943 |
Mortgage servicing rights | 28,674 | 34,727 | 36,056 |
Core deposit and other intangibles | 53,083 | 62,900 | 66,437 |
Goodwill | 1,002,900 | 1,002,900 | 1,002,900 |
Other assets | 170,717 | 119,466 | 118,361 |
Total assets | 15,752,082 | 14,676,328 | 14,522,215 |
Deposits: | |||
Noninterest-bearing | 3,307,532 | 3,061,769 | 3,157,478 |
Interest-bearing | 8,716,255 | 8,585,164 | 8,456,397 |
Total deposits | 12,023,787 | 11,646,933 | 11,613,875 |
Federal funds purchased and securities sold under agreements to repurchase | 269,072 | 270,649 | 279,698 |
Other borrowings | 815,771 | 266,084 | 115,919 |
Other liabilities | 292,496 | 126,366 | 144,584 |
Total liabilities | 13,401,126 | 12,310,032 | 12,154,076 |
Shareholders' equity: | |||
Common stock - $2.50 par value; authorized 80,000,000 shares; 33,902,726, 35,829,549 and 36,723,238 shares issued and outstanding, respectively | 84,757 | 89,574 | 91,808 |
Surplus | 1,617,004 | 1,750,495 | 1,805,685 |
Retained earnings | 646,325 | 551,108 | 515,155 |
Accumulated other comprehensive income (loss) | 2,870 | (24,881) | (44,509) |
Total shareholders' equity | 2,350,956 | 2,366,296 | 2,368,139 |
Total liabilities and shareholders' equity | 15,752,082 | 14,676,328 | 14,522,215 |
Acquired credit impaired loans | |||
Loans: | |||
Loans, net | 390,714 | 485,119 | 512,633 |
Total loans | 396,032 | 489,723 | 516,601 |
Acquired non-credit impaired loans | |||
Loans: | |||
Total loans | 1,965,603 | 2,594,826 | 2,786,102 |
Non-acquired loans | |||
Loans: | |||
Total loans | 8,928,512 | 7,933,286 | 7,606,478 |
Less allowance for non-acquired loan losses | (54,937) | (51,194) | (49,869) |
Loans, net | $ 8,873,575 | $ 7,882,092 | $ 7,556,609 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Investment securities: | |||
Securities held to maturity, fair value (in dollars) | $ 0 | $ 0 | $ 500 |
Shareholders' equity: | |||
Common stock, par value (in dollars per share) | $ 2.50 | $ 2.50 | $ 2.50 |
Common stock, shares authorized | 80,000,000 | 80,000,000 | 80,000,000 |
Common stock, shares issued | 33,902,726 | 35,829,549 | 36,723,238 |
Common stock, shares outstanding | 33,902,726 | 35,829,549 | 36,723,238 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Loans, including fees | $ 134,953 | $ 132,043 | $ 402,175 | $ 388,936 |
Investment securities: | ||||
Taxable | 10,785 | 8,890 | 28,933 | 26,726 |
Tax-exempt | 1,587 | 1,521 | 4,700 | 4,695 |
Federal funds sold and securities purchased under agreements to resell | 2,676 | 1,106 | 7,565 | 2,983 |
Total interest income | 150,001 | 143,560 | 443,373 | 423,340 |
Interest expense: | ||||
Deposits | 16,655 | 13,220 | 50,693 | 30,142 |
Federal funds purchased and securities sold under agreements to repurchase | 612 | 599 | 2,037 | 1,696 |
Other borrowings | 5,361 | 1,452 | 12,824 | 4,678 |
Total interest expense | 22,628 | 15,271 | 65,554 | 36,516 |
Net interest income | 127,373 | 128,289 | 377,819 | 386,824 |
Provision for loan losses | 4,028 | 3,117 | 9,220 | 10,049 |
Net interest income after provision for loan losses | 123,345 | 125,172 | 368,599 | 376,775 |
Noninterest income: | ||||
Securities gains (losses), net | 437 | (11) | 2,687 | (652) |
Recoveries on acquired loans | 1,401 | 1,238 | 4,615 | 6,379 |
Other | 2,584 | 2,659 | 7,566 | 7,738 |
Total noninterest income | 37,582 | 32,027 | 107,258 | 110,107 |
Noninterest expense: | ||||
Salaries and employee benefits | 59,551 | 57,934 | 176,529 | 175,425 |
Occupancy expense | 11,883 | 12,235 | 35,344 | 37,361 |
Information services expense | 8,878 | 7,804 | 26,558 | 26,445 |
OREO expense and loan related | 597 | (19) | 2,229 | 2,679 |
Pension plan termination expense | 9,526 | |||
Amortization of intangibles | 3,268 | 3,537 | 9,817 | 10,672 |
Supplies, printing and postage expense | 1,418 | 1,561 | 4,417 | 4,359 |
Professional fees | 2,442 | 2,138 | 7,463 | 5,735 |
FDIC assessment and other regulatory charges | 228 | 2,525 | 3,218 | 7,065 |
Advertising and marketing | 1,052 | 1,049 | 2,818 | 2,948 |
Merger and branch consolidation related expense | 4,476 | 3,058 | 29,868 | |
Other | 7,047 | 7,054 | 23,033 | 21,706 |
Total noninterest expense | 96,364 | 100,294 | 304,010 | 324,263 |
Earnings: | ||||
Income before provision for income taxes | 64,563 | 56,905 | 171,847 | 162,619 |
Provision for income taxes | 12,998 | 9,823 | 34,455 | 32,752 |
Net income | $ 51,565 | $ 47,082 | $ 137,392 | $ 129,867 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 1.51 | $ 1.28 | $ 3.94 | $ 3.53 |
Diluted (in dollars per share) | $ 1.50 | $ 1.28 | $ 3.92 | $ 3.52 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 34,057 | 36,645 | 34,859 | 36,657 |
Diluted (in shares) | 34,300 | 36,893 | 35,069 | 36,909 |
Fees on deposit accounts | ||||
Noninterest income: | ||||
Noninterest income | $ 19,725 | $ 17,790 | $ 56,274 | $ 62,945 |
Mortgage banking income | ||||
Noninterest income: | ||||
Noninterest income | 6,115 | 2,824 | 13,807 | 11,089 |
Trust and investment services income | ||||
Noninterest income: | ||||
Noninterest income | $ 7,320 | $ 7,527 | $ 22,309 | $ 22,608 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 51,565 | $ 47,082 | $ 137,392 | $ 129,867 |
Unrealized gains (losses) on available for sale securities: | ||||
Unrealized holding gains (losses) arising during period | 7,467 | (11,056) | 44,528 | (41,354) |
Tax effect | (1,643) | 2,432 | (9,796) | 9,130 |
Reclassification adjustment for (gains) losses included in net income | (437) | 11 | 2,679 | 652 |
Tax effect | 96 | (2) | (590) | (144) |
Net of tax amount | 5,483 | (8,615) | 36,821 | (31,716) |
Unrealized gains (losses) on derivative financial instruments qualifying as cash flow hedges: | ||||
Unrealized holding gains (losses) arising during period | (4,988) | (1) | (18,931) | 43 |
Tax effect | 1,097 | 4,165 | (9) | |
Reclassification adjustment for gains (losses) included in interest expense | (241) | 35 | (585) | 121 |
Tax effect | 53 | (8) | 128 | (27) |
Net of tax amount | (4,079) | 26 | (15,223) | 128 |
Change in pension plan obligation: | ||||
Reclassification adjustment for changes included in net income | 194 | 7,888 | 581 | |
Tax effect | (43) | (1,735) | (128) | |
Net of tax amount | 151 | 6,153 | 453 | |
Other comprehensive income (loss), net of tax | 1,404 | (8,438) | 27,751 | (31,135) |
Comprehensive income | $ 52,969 | $ 38,644 | $ 165,143 | $ 98,732 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
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 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 129,867 | 129,867 | |||
Other comprehensive income (loss), net of tax effects | (31,135) | (31,135) | |||
Comprehensive income | 98,732 | ||||
Cash dividends declared on common stock per share | (37,506) | (37,506) | |||
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | 2,947 | (2,947) | |||
Employee stock purchases | $ 22 | 687 | 709 | ||
Employee stock purchases (in shares) | 8,783 | ||||
Stock options exercised | $ 83 | 948 | 1,031 | ||
Stock options exercised (in shares) | 33,424 | ||||
Restricted stock awards | $ 12 | (12) | |||
Restricted stock awards (in shares) | 4,586 | ||||
Stock issued pursuant to restricted stock units. | $ 99 | (99) | |||
Stock issued pursuant to restricted stock units (in shares) | 39,541 | ||||
Common stock repurchased - buyback plan | $ (250) | (8,094) | (8,344) | ||
Common stock repurchased - buyback plan (in shares) | (100,000) | ||||
Common stock repurchased | $ (57) | (1,959) | (2,016) | ||
Common stock repurchased (in shares) | (22,752) | ||||
Share-based compensation expense | 6,613 | 6,613 | |||
Balance at Sep. 30, 2018 | $ 91,808 | 1,805,685 | 515,155 | (44,509) | $ 2,368,139 |
Balance (in shares) at Sep. 30, 2018 | 36,723,238 | 36,723,238 | |||
Balance at Jun. 30, 2018 | $ 92,064 | 1,811,446 | 480,928 | (36,071) | $ 2,348,367 |
Balance (in shares) at Jun. 30, 2018 | 36,825,556 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 47,082 | 47,082 | |||
Other comprehensive income (loss), net of tax effects | (8,438) | (8,438) | |||
Comprehensive income | 38,644 | ||||
Cash dividends declared on common stock per share | (12,855) | (12,855) | |||
Employee stock purchases | $ 11 | 346 | 357 | ||
Employee stock purchases (in shares) | 4,445 | ||||
Restricted stock awards | $ (8) | 8 | |||
Restricted stock awards (in shares) | (3,250) | ||||
Common stock repurchased - buyback plan | $ (250) | (8,094) | (8,344) | ||
Common stock repurchased - buyback plan (in shares) | (100,000) | ||||
Common stock repurchased | $ (9) | (281) | (290) | ||
Common stock repurchased (in shares) | (3,513) | ||||
Share-based compensation expense | 2,260 | 2,260 | |||
Balance at Sep. 30, 2018 | $ 91,808 | 1,805,685 | 515,155 | (44,509) | $ 2,368,139 |
Balance (in shares) at Sep. 30, 2018 | 36,723,238 | 36,723,238 | |||
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 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 137,392 | $ 137,392 | |||
Other comprehensive income (loss), net of tax effects | 27,751 | 27,751 | |||
Comprehensive income | 165,143 | ||||
Cash dividends declared on common stock per share | (42,175) | (42,175) | |||
Employee stock purchases | $ 29 | 688 | 717 | ||
Employee stock purchases (in shares) | 11,548 | ||||
Stock options exercised | $ 93 | 1,137 | 1,230 | ||
Stock options exercised (in shares) | 36,978 | ||||
Restricted stock awards | $ 17 | (17) | |||
Restricted stock awards (in shares) | 6,602 | ||||
Stock issued pursuant to restricted stock units. | $ 128 | (128) | |||
Stock issued pursuant to restricted stock units (in shares) | 51,543 | ||||
Common stock repurchased - buyback plan | $ (5,000) | (139,594) | (144,594) | ||
Common stock repurchased - buyback plan (in shares) | (2,000,000) | ||||
Common stock repurchased | $ (84) | (2,219) | (2,303) | ||
Common stock repurchased (in shares) | (33,494) | ||||
Share-based compensation expense | 6,642 | 6,642 | |||
Balance at Sep. 30, 2019 | $ 84,757 | 1,617,004 | 646,325 | 2,870 | $ 2,350,956 |
Balance (in shares) at Sep. 30, 2019 | 33,902,726 | 33,902,726 | |||
Balance at Jun. 30, 2019 | $ 86,839 | 1,676,229 | 609,444 | 1,466 | $ 2,373,978 |
Balance (in shares) at Jun. 30, 2019 | 34,735,587 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 51,565 | 51,565 | |||
Other comprehensive income (loss), net of tax effects | 1,404 | 1,404 | |||
Comprehensive income | 52,969 | ||||
Cash dividends declared on common stock per share | (14,684) | (14,684) | |||
Employee stock purchases | $ 14 | 360 | 374 | ||
Employee stock purchases (in shares) | 5,598 | ||||
Stock options exercised | $ 61 | 767 | 828 | ||
Stock options exercised (in shares) | 24,256 | ||||
Stock issued pursuant to restricted stock units. | $ 1 | (1) | |||
Stock issued pursuant to restricted stock units (in shares) | 578 | ||||
Common stock repurchased - buyback plan | $ (2,147) | (62,307) | (64,454) | ||
Common stock repurchased - buyback plan (in shares) | (858,800) | ||||
Common stock repurchased | $ (11) | (329) | (340) | ||
Common stock repurchased (in shares) | (4,493) | ||||
Share-based compensation expense | 2,285 | 2,285 | |||
Balance at Sep. 30, 2019 | $ 84,757 | $ 1,617,004 | $ 646,325 | $ 2,870 | $ 2,350,956 |
Balance (in shares) at Sep. 30, 2019 | 33,902,726 | 33,902,726 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Consolidated Statements of Changes in Shareholders' Equity | ||||
Cash dividends declared, per share (in dollars per share) | $ 0.43 | $ 0.35 | $ 1.21 | $ 1.02 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 137,392 | $ 129,867 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,981 | 26,864 |
Provision for loan losses | 9,220 | 10,049 |
Deferred income taxes | 1,457 | 9,897 |
Revision of provisional amount related to the revaluation of deferred taxes from the Tax Reform Act | (991) | |
(Gains) losses on sale of securities, net | (2,687) | 652 |
Share-based compensation expense | 6,642 | 6,613 |
Accretion of discount related to performing acquired loans | (9,131) | (23,993) |
Loss on disposal of premises and equipment | 3,648 | 1,304 |
Gain on sale of OREO | (527) | (1,570) |
Net amortization of premiums on investment securities | 5,310 | 5,696 |
OREO write downs | 727 | 1,185 |
Fair value adjustment for loans held for sale | 1,463 | (699) |
Originations and purchases of loans held for sale | (591,590) | (491,694) |
Proceeds from sales of loans | 525,659 | 529,528 |
Net change in: | ||
Accrued interest receivable | (134) | (2,081) |
Prepaid assets | (846) | 1,833 |
Operating Leases | 1,134 | |
Miscellaneous other assets | (49,803) | (1,706) |
Accrued interest payable | 317 | 1,490 |
Accrued income taxes | 2,625 | 649 |
Miscellaneous other liabilities | 63,173 | 20,890 |
Net cash provided by operating activities | 129,030 | 223,783 |
Cash flows from investing activities: | ||
Proceeds from sales of investment securities available for sale | 231,990 | 67,853 |
Proceeds from maturities and calls of investment securities held to maturity | 2,030 | |
Proceeds from maturities and calls of investment securities available for sale | 208,640 | 173,531 |
Proceeds from sales of other investment securities | 45 | 15,938 |
Purchases of investment securities available for sale | (692,114) | (191,305) |
Purchases of other investment securities | (23,566) | (12,119) |
Net increase in loans | (280,684) | (283,331) |
Recoveries of loans previously charged off | 2,833 | 2,686 |
Purchases of premises and equipment | (11,533) | (9,504) |
Proceeds from sale of OREO | 7,405 | 11,655 |
Proceeds from sale of premises and equipment | 17 | 33 |
Net cash used in investing activities | (556,967) | (222,533) |
Cash flows from financing activities: | ||
Net increase in deposits | 376,854 | 81,721 |
Net decrease in federal funds purchased and securities sold under agreements to repurchase and other short-term borrowings | (1,577) | (7,159) |
Proceeds from FHLB advances | 700,001 | 325,001 |
Repayment of other borrowings | (150,005) | (425,005) |
Common stock issuance | 717 | 709 |
Common stock repurchases | (146,897) | (10,360) |
Dividends paid on common stock | (42,175) | (37,506) |
Stock options exercised | 1,230 | 1,031 |
Net cash provided by (used in) financing activities | 738,148 | (71,568) |
Net increase (decrease) in cash and cash equivalents | 310,211 | (70,318) |
Cash and cash equivalents at beginning of period | 408,983 | 377,627 |
Cash and cash equivalents at end of period | 719,194 | 307,309 |
Cash paid for: | ||
Interest | 65,237 | 35,026 |
Income taxes | 31,928 | 23,981 |
Initial measurement and recognition of operating lease assets in exchange for lease liabilities per ASU 2016-02 | 82,160 | |
Recognition of operating lease assets in exchange for lease liabilities | 10,239 | |
Acquisitions: | ||
Fair value of tangible assets acquired | (7,246) | |
Other intangible assets acquired | 3,321 | |
Liabilities assumed | (612) | |
Net identifiable assets acquired over liabilities assumed | (3,313) | |
Real estate acquired in full or in partial settlement of loans | $ 9,610 | $ 11,976 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | Note 1 — Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain prior period information has been reclassified to conform to the current period presentation, and these reclassifications had no impact on net income or equity as previously reported. Operating results for the three and nine months ended September 30, 201 The condensed consolidated balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by GAAP for complete financial statements. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies The information contained in the consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2019, should be referenced when reading these unaudited condensed consolidated financial statements. 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 Corporation’s wholly owned subsidiary, South State Bank, a South Carolina banking corporation. Leases (Topic 842) and Method of Adoption On January 1, 2019, we adopted the requirements of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2019-01, Codification Improvements to Topic 842 Leases. The purpose of the update was to increase transparency and comparability between organizations that enter into lease agreements. The key difference between the previous guidance and the update is the recognition of a right-of-use asset (ROU) and lease liability on the statement of financial position for those leases previously classified as operating leases under the old guidance. Accounting Standards Codification (“ASC”) Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In applying this standard, we reviewed our material contracts to determine if they included a lease by this new definition and did not identify any new leases. Our lease agreements in which ASC Topic 842 has been applied are primarily for real estate properties, including retail branch locations, operations and administration locations and stand-alone ATM locations. These leases have lease terms from greater than 12 months to leases with . Related to lease payment terms, some are fixed payments or based on a fixed annual increases while others are variable and the annual increases are based on market rates. We performed an analysis on equipment leases for the implementation of ASC Topic 842 and determined the number and dollar amount of our equipment leases was not material. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We chose the transition method of adoption provided by ASU 2018-11, Leases (Topic 842) – Targeted Improvements, where we initially apply the new lease standard at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption if applicable. Therefore, we applied this standard to all existing leases as of the adoption date of January 1, 2019, recording a ROU asset and a lease liability in an equal amount. We did not have a cumulative-effect adjustment to the opening balance of retained earnings. With this transition method, we did not have to restate comparative prior periods presented in the financial statements related to ASC Topic 842, but will present comparative prior periods disclosures using the previous accounting guidance for leases. 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. ASC Topic 842 provides a package of practical expedients in applying the lease standard that had to be chosen at the date of adoption. We chose to elect this package of practical expedients. With this election, we do not have to reassess whether any expired or existing contracts are or contain a lease, do not have to reassess the classification of any expired or existing leases, do not have to separate lease and non-lease components and can account for both as a single lease component, and do not have to reassess initial direct costs or cash incentives for any existing leases due to immateriality. In addition, we chose not to apply ASC Topic 842 to short-term leases (leases with terms of 12 months or less) and not to record an underlying ROU asset or lease liability based on the uncertainty around the renewal of these leases. We will recognize lease expense for such leases on a straight-line basis over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We determined that we do not have any leases classified as finance leases and that all of our leases are operating leases. ROU assets and liabilities for operating leases are recognized at commencement date based on present value of lease payments not yet paid, discounted using the discount rate for the lease at the lease commencement date over the lease term. For operating leases, lease expense is determined by the sum of the lease payments to be recognized on a straight-line basis over the lease term. Based on the transition method that we chose to follow, the commencement date of the lease term for all existing leases is January 1, 2019. The lease term used for the calculation of the initial ROU asset and lease liability will include the initial lease term in addition to any renewal options or termination costs in the lease that we think are reasonably certain to be exercised or incurred. We received input from several levels of management and our corporate real estate department in determining which options were reasonably certain to be exercised. A discount rate is also needed in the calculation of the initial ROU assets and lease liability. ASC Topic 842 requires that the implicit rate within the lease agreement be used if available. If not available, we should use its incremental borrowing rate in effect at the time of the lease commencement date. We looked at the incremental borrowing rate from several of our borrowing sources to determine an average rate to be used in the calculation of the initial ROU asset and lease liability. We also considered the term of the borrowings as they relate to the terms of the leases. The adoption of the new standard had a material impact on our consolidated balance sheet, with the recording of ROU asset and lease liability of $82.2 million at the commencement date of January 1, 2019. We did not have a cumulative-effect adjustment to the opening balance of retained earnings at commencement. As of September 30, 2019, we had ROU assets of million recorded within other liabilities on the balance sheet. The adoption of ASC Topic 842 did not have a material impact on our consolidated income statement. Revenue from Contracts with Customers (Topic 606) and Method of Adoption On January 1, 2018, we adopted the requirements of ASU 2014-09, Revenue from Contracts with Customers (“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. We adopted 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 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 through March 31, 2018 for this reclassification. 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 Topic 606, we 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 Topic 606 involve income derived from contracts with customers. Within the scope of Topic 606, we maintain contracts to provide services, primarily for investment advisory and/or custody of assets. Through our wholly-owned subsidiaries, the Bank and South State Advisory, Inc., we contract with our customers to perform IRA, Trust, and/or Custody and Agency advisory services. million, respectively, for the nine months ended September 30, 2019 and 2018. The Bank contracts with our customers to perform deposit account services. Total revenue recognized from these contracts with customers is million, respectively, for the nine months ended September 30, 2019 and 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 - million, respectively, for the nine months ended September 30, 2019 and 2018. Total revenue derived from contracts in which services are transferred over time was million, respectively, for the nine months ended September 30, 2019 and 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 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 our 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 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 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 - 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 the Bank which we contract with our customers to perform IRA, trust, and/or custody services. |
Recent Accounting and Regulator
Recent Accounting and Regulatory Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Recent Accounting and Regulatory Pronouncements | |
Recent Accounting and Regulatory Pronouncements | Note 3 — Recent Accounting and Regulatory Pronouncements Accounting Standards Adopted in 2019 In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASC Topic 842 related to leases. ASC Topic 842 applies a right-of-use, which we refer to herein as 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 - Targeted Improvements - Leases (Topic 842) (“ASU 2018-11”) was issued which provided targeted improvements related to ASC Topic 842. ASU 2018-11 updates the new lease standard ASC Topic 842 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. 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 ASC Topic 842 by addressing several issues related to lessors which should reduce lessors’ implementation and ongoing costs related to the new lease standard. In March 2019, the FASB issued ASU No. 2019-01, Leases (Topic 842): Codification Improvements (“ASU 2019-01”) . ASU 2019-01 provides clarification on several issues related to ASC Topic 842. None of these issues had a material effect on our financial statements. For public business entities, the amendments in ASU 2016-02, ASU 2018-11, ASU 2018-20 and ASU 2019-01 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. We chose the option to recognize and measure leases as of the adoption date and not in comparative periods. See Note 2 – Summary of Significant Accounting Policies and Note 7 – Leases for further discussion around the adoption of these standards related to leases. On January 1, 2019, we recorded a 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 provides 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. This guidance became effective on January 1, 2019 and did not have a material impact to our consolidated financial statements. In August 2018, the 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”) . This ASU clarifies certain aspects of ASU 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement 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. We early adopted this standard as of January 1, 2019, but it did not have a material impact on our consolidated financial statements. There were in capitalized implementation costs in the third quarter of 2019 related to internal use software for a front capture software product for administering customer banking transactions at branch locations. These costs are being held in a suspense account classified as other assets on the balance sheet until the project is complete when they will then begin to be depreciated. 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 ASU 2018-16 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. All transition requirements and elections should be applied to hedging relationships existing on the date of adoption. This guidance became effective on January 1, 2019 and we determined that the implementation of this standard did not have a material impact to our 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 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. Accounting Standards Adopted in 2018 In February 2018, the 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 we determined that the implementation of this standard did not have a material impact to our 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 Cuts and Jobs Act of 2017 (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 was 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. We early adopted this amendment in the first quarter of 2018 and reclassified 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. We adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on our 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. We adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on our 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. We adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on our 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. Our 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 we refined our disclosures around the standard in the first quarter of 2018. See Note 2 – Summary of Significant Accounting Policies for additional information. We determined that there is no material change on how we recognize our revenue streams and the adoption of these standards did not have a material impact on our 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. We adopted this standard in the first quarter of 2018 and determined that this guidance did not have a material impact on our 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. Our 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 we refined its disclosures around the standard in the first quarter of 2018. We determined that there is no material change on how we recognize our revenue streams and the adoption of these standards did not have a material impact on our 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 we 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 other comprehensive income 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 we determined that the implementation of this standard did not have a material impact to our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, Topic 606 Revenue from Contracts with Customers, Topic 606: Deferral of the Effective Date, 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. Our 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 we refined our disclosures around the standard in the first quarter of 2018. See Note 2 – Summary of Significant Accounting Policies for additional information. We determined that there is no material change on how we recognize our 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 we applied retrospectively to each prior reporting period. Issued But Not Yet Adopted Accounting Standards In April 2019, the FASB issued ASU No. 2019-05, Targeted Transition Relief (Topic 326 – Financial Instruments-Credit Losses). 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 overall guidance is adopted. In April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. This update related to ASU 2016-01, ASU 2017-12 and ASU 2016-13 clarifies certain aspects brought to the Account Standards Board attention by stakeholders related to these ASUs, but does not change the core principles of these standards. The clarifications related to ASU 2016-01 and 2017-12 will be adopted this quarter since these standards have already been adopted. The clarifications related to ASU 2016-13 will be adopted in the first quarter of 2020 when the overall standard will be adopted. The clarification related to ASU 2016-01 and ASU 2017-12 did not have a material impact on our consolidated financial statements. The clarification related to ASU 2016-13 is still being evaluated as are the effects of the overall standard on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans (Subtopic 715-20) (“ASU 2018-14”) . ASU 2018-14 amends 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, we do not expect that this guidance will have a material impact on our 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. We are still assessing the impact of this new guidance, but does not believe it will have a material impact on our 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. We are still assessing the impact of this new guidance, but at this point in time, do not believe it will have a material impact on our 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 ten loan segments. We have determined a preliminary baseline model result for each loan segment based upon our of historical losses. Certain credit models have been validated at this time while others are still in the process of being validated. We continue to refine and develop the qualitative framework that will be applied to the loan segments which will allow for a reasonable estimate upon adoption of ASU 2016-13. We have 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 the ten loan segments. This standard requires estimating projected lifetime credit losses based on macro-economic forecast assumptions and certain management judgements over the life of the loans. Under our baseline scenario, we currently estimate that our allowance under CECL will be in a range of million. This estimate is influenced by the composition, characteristics and quality of our loan 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. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Investment Securities | Note 4 — 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 September 30, 2019: State and municipal obligations $ — $ — $ — $ — December 31, 2018: State and municipal obligations $ — $ — $ — $ — September 30, 2018: State and municipal obligations $ 500 $ — $ — $ 500 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 September 30, 2019: Government-sponsored entities debt* $ 40,322 $ 645 $ — $ 40,967 State and municipal obligations 183,005 5,720 (43) 188,682 Mortgage-backed securities** 1,566,182 19,791 (2,488) 1,583,485 $ 1,789,509 $ 26,156 $ (2,531) $ 1,813,134 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 September 30, 2018: Government-sponsored entities debt* $ 54,397 $ — $ (1,852) $ 52,545 State and municipal obligations 207,723 1,114 (2,613) 206,224 Mortgage-backed securities** 1,336,778 115 (44,381) 1,292,512 $ 1,598,898 $ 1,229 $ (48,846) $ 1,551,281 * - Our 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, Federal Home Loan Bank (“FHLB”), and Federal Farm Credit Banks (“FFCB”). ** - All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. Also, included in our mortgage-backed securities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. There was a net realized gain of $437,000 and $2.7 million on the sale of securities for the three and nine months ended September 30, 2019, respectively, compared to a net realized loss of $11,000 and $652,000 for the three and nine months ended September 30, 2018, respectively. The net realized gain of million from the sale of VISA Class B shares in the first and second quarters of 2019. If the gains from the VISA Class B share are excluded in 2019, the Company would have had a net realized loss of The following is the amortized cost and carrying value of other investment securities: Carrying (Dollars in thousands) Value September 30, 2019: Federal Home Loan Bank stock $ 43,044 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 49,124 December 31, 2018: Federal Home Loan Bank stock $ 19,524 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 25,604 September 30, 2018: Federal Home Loan Bank stock $ 13,149 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 19,229 Our 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 September 30, 2019, we determined that there was no impairment on its other investment securities. The amortized cost and fair value of debt and equity securities at September 30, 2019 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 $ — $ — $ 6,012 $ 6,018 Due after one year through five years — — 71,916 72,679 Due after five years through ten years — — 411,641 418,641 Due after ten years — — 1,299,940 1,315,796 $ — $ — $ 1,789,509 $ 1,813,134 Information pertaining to our securities with gross unrealized losses at September 30, 2019, December 31, 2018 and September 30, 2018, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position is as follows: Less Than Twelve Months Twelve Months or More Gross Gross Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value September 30, 2019: Securities Available for Sale Government-sponsored entities debt $ — $ — $ — $ — State and municipal obligations 43 5,275 — — Mortgage-backed securities 1,113 312,686 1,375 154,111 $ 1,156 $ 317,961 $ 1,375 $ 154,111 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 September 30, 2018: Securities Available for Sale Government-sponsored entities debt $ 538 $ 20,253 $ 1,314 $ 32,293 State and municipal obligations 2,313 89,908 300 8,104 Mortgage-backed securities 25,077 876,430 19,304 389,045 $ 27,928 $ 986,591 $ 20,918 $ 429,442 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) our intent and ability 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 we 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. 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. All debt securities available for sale in an unrealized loss position as of September 30, 2019 continue to perform as scheduled. As part of our evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that we will be required to sell the debt securities; therefore, management does not consider these investments to be other-than-temporarily impaired at September 30, 2019. Management continues to monitor all of our securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or are other than temporarily impaired, which would require a charge to earnings in such periods. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 5 — Loans and Allowance for Loan Losses The following is a summary of non-acquired loans: September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 955,318 $ 841,445 $ 902,836 Commercial non-owner occupied 1,777,327 1,415,551 1,279,328 Total commercial non-owner occupied real estate 2,732,645 2,256,996 2,182,164 Consumer real estate: Consumer owner occupied 2,118,127 1,936,265 1,844,203 Home equity loans 521,744 495,148 473,381 Total consumer real estate 2,639,871 2,431,413 2,317,584 Commercial owner occupied real estate 1,677,695 1,517,551 1,449,069 Commercial and industrial 1,130,847 1,054,952 991,842 Other income producing property 220,957 214,353 209,983 Consumer 525,040 448,664 438,789 Other loans 1,457 9,357 17,047 Total non-acquired loans 8,928,512 7,933,286 7,606,478 Less allowance for loan losses (54,937) (51,194) (49,869) Non-acquired loans, net $ 8,873,575 $ 7,882,092 $ 7,556,609 The following is a summary of acquired non-credit impaired loans accounted for under FASB ASC Topic 310-20, net of related discount: September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Acquired non-credit impaired loans: Commercial non-owner occupied real estate: Construction and land development $ 53,302 $ 165,070 $ 222,562 Commercial non-owner occupied 503,443 679,253 684,793 Total commercial non-owner occupied real estate 556,745 844,323 907,355 Consumer real estate: Consumer owner occupied 543,432 628,813 647,064 Home equity loans 198,112 242,425 259,558 Total consumer real estate 741,544 871,238 906,622 Commercial owner occupied real estate 345,040 421,841 455,803 Commercial and industrial 126,092 212,537 247,922 Other income producing property 103,093 133,110 150,371 Consumer 93,089 111,777 118,029 Acquired non-credit impaired loans $ 1,965,603 $ 2,594,826 $ 2,786,102 The unamortized discount related to the acquired non-credit impaired loans totaled $24.2 million, $33.4 million, and $37.1 million at September 30, 2019, December 31, 2018, and September 30, 2018, respectively. In accordance with FASB ASC Topic 310-30, we 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: September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Acquired credit impaired loans: Commercial real estate $ 149,134 $ 196,764 $ 209,518 Commercial real estate—construction and development 26,930 32,942 34,312 Residential real estate 175,044 207,482 218,019 Consumer 36,812 42,492 44,081 Commercial and industrial 8,112 10,043 10,671 Acquired credit impaired loans 396,032 489,723 516,601 Less allowance for loan losses (5,318) (4,604) (3,968) Acquired credit impaired loans, net $ 390,714 $ 485,119 $ 512,633 Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values of acquired credit impaired loans as of September 30, 2019, December 31, 2018 and September 30, 2018 are as follows: September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Contractual principal and interest $ 496,141 $ 626,691 $ 666,040 Non-accretable difference (15,292) (24,818) (38,422) Cash flows expected to be collected 480,849 601,873 627,618 Accretable yield (90,135) (116,754) (114,985) Carrying value $ 390,714 $ 485,119 $ 512,633 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: Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 485,119 $ 618,803 Net reductions for payments, foreclosures, and accretion (93,691) (106,829) Change in the allowance for loan losses on acquired loans (714) 659 Balance at end of period, net of allowance for loan losses on acquired credit impaired loans $ 390,714 $ 512,633 The table below reflects refined accretable yield balance for acquired credit impaired loans: Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 116,754 $ 133,096 Park Sterling Corporation ("Park Sterling") acquisition Day 1 adjustment — (1,460) Contractual interest income (20,515) (25,278) Accretion on acquired credit impaired loans (14,978) (13,905) Reclass of nonaccretable difference due to improvement in expected cash flows 9,009 22,803 Other changes, net (135) (271) Balance at end of period $ 90,135 $ 114,985 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 the nine months ended September 30, 2019 and 2018. In the first nine months of 2019, the accretable yield balance declined by $26.6 million as total contractual interest and accretion income of $35.5 million was recognized. This was partially offset by improved expected cash flows of $9.0 million. The improved cash flows for the prior year was adjusted to accurately reflect the split between income types. As of September 30, 2019, the table above excludes $2.0 billion ($2.0 billion in contractual principal less a $24.2 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 credit quality or as revolving lines of credit (commercial or consumer) at acquisition. As of September 30, 2018, the balance of these acquired loans totaled $2.8 billion ($2.8 billion in contractual principal less a $37.1 million remaining discount). Our loan loss policy adheres to GAAP as well as interagency guidance. The allowance for loan losses, which we sometimes refer to herein as ALLL, 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, we 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, we generally aggregate 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 our originated portfolio of loans which follow review thresholds based on risk rating categories. In the fourth quarter of 2015, we 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. An aggregated analysis of the changes in allowance for loan losses is as follows: Non-acquired Acquired Non-Credit Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Three Months Ended September 30, 2019: Balance at beginning of period $ 53,590 $ — $ 4,623 $ 58,213 Loans charged-off (1,969) (810) — (2,779) Recoveries of loans previously charged off (1) 834 50 — 884 Net charge-offs (1,135) (760) — (1,895) Provision for loan losses charged to operations 2,482 760 786 4,028 Reduction due to loan removals — — (91) (91) Balance at end of period $ 54,937 $ — $ 5,318 $ 60,255 Three Months Ended September 30, 2018: Balance at beginning of period $ 47,874 $ — $ 4,426 $ 52,300 Loans charged-off (1,891) (97) — (1,988) Recoveries of loans previously charged off (1) 555 27 — 582 Net charge-offs (1,336) (70) — (1,406) Provision for loan losses charged to operations 3,331 70 (284) 3,117 Reduction due to loan removals — — (174) (174) Balance at end of period $ 49,869 $ — $ 3,968 $ 53,837 Non-acquired Acquired Non-Credit Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Nine Months Ended September 30, 2019: Balance at beginning of period $ 51,194 $ — $ 4,604 $ 55,798 Loans charged-off (4,541) (2,719) — (7,260) Recoveries of loans previously charged off (1) 2,461 372 — 2,833 Net charge-offs (2,080) (2,347) — (4,427) Provision for loan losses charged to operations 5,823 2,347 1,050 9,220 Reduction due to loan removals — — (336) (336) Balance at end of period $ 54,937 $ — $ 5,318 $ 60,255 Nine Months Ended September 30, 2018: Balance at beginning of period $ 43,448 $ — $ 4,627 $ 48,075 Loans charged-off (4,300) (1,614) — (5,914) Recoveries of loans previously charged off (1) 2,408 279 — 2,687 Net charge-offs (1,892) (1,335) — (3,227) Provision for losses charged to operations 8,313 1,335 401 10,049 Reduction due to loan removals — — (1,060) (1,060) Balance at end of period $ 49,869 $ — $ 3,968 $ 53,837 (1) – Recoveries related to acquired credit impaired loans are recorded through other noninterest income on the consolidated statement of income and do not run through the ALLL. 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 Three Months Ended September 30, 2019 Allowance for loan losses: Balance, June 30, 2019 $ 5,718 $ 10,311 $ 9,526 $ 12,432 $ 3,177 $ 7,495 $ 1,359 $ 3,572 $ — $ 53,590 Charge-offs (69) — (31) (10) (100) (32) — (1,727) — (1,969) Recoveries 208 2 18 149 86 77 29 265 — 834 Provision (benefit) 159 238 456 (24) 28 21 (29) 1,633 — 2,482 Balance, September 30, 2019 $ 6,016 $ 10,551 $ 9,969 $ 12,547 $ 3,191 $ 7,561 $ 1,359 $ 3,743 $ — $ 54,937 Loans individually evaluated for impairment $ 587 $ — $ 33 $ 33 $ 121 $ 387 $ 58 $ 2 $ — $ 1,221 Loans collectively evaluated for impairment $ 5,429 $ 10,551 $ 9,936 $ 12,514 $ 3,070 $ 7,174 $ 1,301 $ 3,741 $ — $ 53,716 Loans: Loans individually evaluated for impairment $ 32,673 $ 87 $ 7,135 $ 5,127 $ 2,345 $ 5,313 $ 2,096 $ 91 $ — $ 54,867 Loans collectively evaluated for impairment 922,645 1,777,240 1,670,560 2,113,000 519,399 1,125,534 218,861 524,949 1,457 8,873,645 Total non-acquired loans $ 955,318 $ 1,777,327 $ 1,677,695 $ 2,118,127 $ 521,744 $ 1,130,847 $ 220,957 $ 525,040 $ 1,457 $ 8,928,512 Three Months Ended September 30, 2018 Allowance for loan losses: Balance, June 30, 2018 $ 6,187 $ 7,209 $ 8,607 $ 10,945 $ 3,368 $ 6,711 $ 1,413 $ 3,071 $ 363 $ 47,874 Charge-offs — — (578) (76) (40) (34) — (1,163) — (1,891) Recoveries 178 2 105 43 11 27 3 186 — 555 Provision (benefit) (352) 774 943 468 102 219 (6) 1,089 94 3,331 Balance, September 30, 2018 $ 6,013 $ 7,985 $ 9,077 $ 11,380 $ 3,441 $ 6,923 $ 1,410 $ 3,183 $ 457 $ 49,869 Loans individually evaluated for impairment $ 723 $ 81 $ 40 $ 28 $ 171 $ 475 $ 133 $ 6 $ — $ 1,657 Loans collectively evaluated for impairment $ 5,290 $ 7,904 $ 9,037 $ 11,352 $ 3,270 $ 6,448 $ 1,277 $ 3,177 $ 457 $ 48,212 Loans: Loans individually evaluated for impairment $ 35,776 $ 1,315 $ 4,551 $ 5,420 $ 3,026 $ 1,409 $ 2,930 $ 213 $ — $ 54,640 Loans collectively evaluated for impairment 867,060 1,278,013 1,444,518 1,838,783 470,355 990,433 207,053 438,576 17,047 7,551,838 Total non-acquired loans $ 902,836 $ 1,279,328 $ 1,449,069 $ 1,844,203 $ 473,381 $ 991,842 $ 209,983 $ 438,789 $ 17,047 $ 7,606,478 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 Nine Months Ended September 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Charge-offs (78) (3) (43) (95) (115) (141) (31) (4,035) — (4,541) Recoveries 833 47 84 181 220 286 87 723 — 2,461 Provision (benefit) (421) 1,753 559 548 (348) (38) (143) 3,954 (41) 5,823 Balance, September 30, 2019 $ 6,016 $ 10,551 $ 9,969 $ 12,547 $ 3,191 $ 7,561 $ 1,359 $ 3,743 $ — $ 54,937 Nine Months Ended September 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Charge-offs (35) — (659) (80) (111) (178) — (3,237) — (4,300) Recoveries 1,167 6 76 169 139 241 14 596 — 2,408 Provision (benefit) (1,040) 1,454 1,532 1,623 163 1,372 21 3,036 152 8,313 Balance, September 30, 2018 $ 6,013 $ 7,985 $ 9,077 $ 11,380 $ 3,441 $ 6,923 $ 1,410 $ 3,183 $ 457 $ 49,869 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 Total Three Months Ended September 30, 2019 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (39) — — — (23) (648) — (100) (810) Recoveries 1 — — 21 9 10 — 9 50 Provision (benefit) 38 — — (21) 14 638 — 91 760 Balance, September 30, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 53,302 503,443 345,040 543,432 198,112 126,092 103,093 93,089 1,965,603 Total acquired non-credit impaired loans $ 53,302 $ 503,443 $ 345,040 $ 543,432 $ 198,112 $ 126,092 $ 103,093 $ 93,089 $ 1,965,603 Three Months Ended September 30, 2018 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — — — (4) (30) — (63) (97) Recoveries 1 — — 1 6 5 — 14 27 Provision (benefit) (1) — — (1) (2) 25 — 49 70 Balance, September 30, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 222,562 684,793 455,803 647,064 259,558 247,922 150,371 118,029 2,786,102 Total acquired non-credit impaired loans $ 222,562 $ 684,793 $ 455,803 $ 647,064 $ 259,558 $ 247,922 $ 150,371 $ 118,029 $ 2,786,102 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 Total Nine Months Ended September 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (45) — (786) (6) (263) (1,288) (26) (305) (2,719) Recoveries 3 — — 26 55 181 71 36 372 Provision (benefit) 42 — 786 (20) 208 1,107 (45) 269 2,347 Balance, September 30, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (106) — (28) (70) (244) (838) — (328) (1,614) Recoveries 8 — — 63 85 60 — 63 279 Provision (benefit) 98 — 28 7 159 778 — 265 1,335 Balance, September 30, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — 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 Total Three Months Ended September 30, 2019 Allowance for loan losses: Balance, June 30, 2019 $ 1,009 $ 798 $ 2,346 $ 470 $ — $ 4,623 Provision (benefit) for loan losses 386 (38) 447 (9) — 786 Reduction due to loan removals — — (91) — — (91) Balance, September 30, 2019 $ 1,395 $ 760 $ 2,702 $ 461 $ — $ 5,318 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 1,395 $ 760 $ 2,702 $ 461 $ — $ 5,318 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 149,134 26,930 175,044 36,812 8,112 396,032 Total acquired credit impaired loans $ 149,134 $ 26,930 $ 175,044 $ 36,812 $ 8,112 $ 396,032 Three Months Ended September 30, 2018 Allowance for loan losses: Balance , June 30, 2018 $ 636 $ 576 $ 2,514 $ 572 $ 128 $ 4,426 Provision (benefit) for loan losses 62 (205) (87) (26) (28) (284) Reduction due to loan removals (6) (31) (116) — (21) (174) Balance, September 30, 2018 $ 692 $ 340 $ 2,311 $ 546 $ 79 $ 3,968 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 692 $ 340 $ 2,311 $ 546 $ 79 $ 3,968 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 209,518 34,312 218,019 44,081 10,671 516,601 Total acquired credit impaired loans $ 209,518 $ 34,312 $ 218,019 $ 44,081 $ 10,671 $ 516,601 Commercial Real Estate- Commercial Construction and Residential Commercial (Dollars in thousands) Real Estate Development Real Estate Consumer and Industrial Total Nine Months Ended September 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Provision (benefit) for loan losses 599 43 742 (300) (34) 1,050 Reduction due to loan removals (5) — (286) — (45) (336) Balance, September 30, 2019 $ 1,395 $ 760 $ 2,702 $ 461 $ — $ 5,318 Nine Months Ended September 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Provision (benefit) for loan losses 423 273 (894) 88 511 401 Reduction due to loan removals (19) (113) (348) (3) (577) (1,060) Balance, September 30, 2018 $ 692 $ 340 $ 2,311 $ 546 $ 79 $ 3,968 *— 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 ongoing monitoring of the credit quality of our 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. ● 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 loans for non-acquired loans: Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 947,230 $ 832,612 $ 889,818 $ 1,768,013 $ 1,407,744 $ 1,270,557 $ 1,648,456 $ 1,480,267 $ 1,421,090 Special mention 5,601 6,015 9,906 7,091 6,427 7,027 17,319 24,576 18,337 Substandard 2,487 2,818 3,112 2,223 1,380 1,744 11,920 12,708 9,642 Doubtful — — — — — — — — — $ 955,318 $ 841,445 $ 902,836 $ 1,777,327 $ 1,415,551 $ 1,279,328 $ 1,677,695 $ 1,517,551 $ 1,449,069 Commercial & Industrial Other Income Producing Property Commercial Total September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 1,103,532 $ 1,037,915 $ 970,586 $ 215,624 $ 208,186 $ 203,844 $ 5,682,855 $ 4,966,724 $ 4,755,895 Special mention 18,148 5,887 12,997 3,922 4,706 4,671 52,081 47,611 52,938 Substandard 9,167 11,150 8,259 1,411 1,461 1,468 27,208 29,517 24,225 Doubtful — — — — — — — — — $ 1,130,847 $ 1,054,952 $ 991,842 $ 220,957 $ 214,353 $ 209,983 $ 5,762,144 $ 5,043,852 $ 4,833,058 The following table presents the credit risk profile by risk grade of consumer loans for non-acquired loans: Consumer Owner Occupied Home Equity Consumer September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, Sept |
Other Real Estate Owned
Other Real Estate Owned | 9 Months Ended |
Sep. 30, 2019 | |
Other Real Estate Owned | |
Other Real Estate Owned | Note 6—Other Real Estate Owned The following is a summary of information pertaining to OREO: Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Beginning balance $ 11,410 $ 11,203 Acquired in the Park Sterling acquisition — 210 Additions 9,610 11,976 Writedowns (727) (1,185) Sold (6,878) (10,085) Ending Balance $ 13,415 $ 12,119 At September 30, 2019, there were a total of 72 properties included in OREO compared to 84 properties at September 30, 2018. At September 30, 2019, we had $2.1 million in residential real estate included in OREO and $4.5 million in residential real estate consumer mortgage loans in the process of foreclosure. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | Note 7 — Leases As of September 30, 2019, we had operating ROU assets of $89.9 million and operating lease liabilities of $91.0 million. We maintain operating leases on land and buildings for our operating centers, branch facilities and ATM locations. Most leases include one or more limited to, the value of leasehold improvements, the value of renewal rate compared to market rates, and the presence of factors that would cause a significant economic penalty to us if the option is not exercised. Leases with an initial term of 12 months or less are not recorded on the balance sheet and instead are recognized in lease expense on a straight-line basis over the lease term. We do not sublease any portion of these locations to third parties. Three Months Ended Nine Months Ended (Dollars in thousands) September 30, September 30, 2019 2019 Lease Expense Components: Operating lease expense $ 2,241 $ 6,560 Short-term lease expense 120 396 Variable lease expense 151 337 Total lease expense $ 2,512 $ 7,293 Supplemental Cash Flow and Other Information Related to Leases: Cash paid for amounts included in the measurement of lease liabilities - operating leases $ 1,996 $ 5,804 Initial ROU assets recorded in exchange for new lease liabilities - operating leases $ 5,289 $ 10,239 Weighted - average remaining lease term (years) - operating leases 14.30 Weighted - average discount rate - operating leases 3.9% September 30, 2019 Supplemental Balance Sheet Information Related to Leases Operating lease ROU assets (premises and equipment) $ 89,905 Operating lease liabilities (other liabilities) $ 91,039 Maturity Analysis of Lease Liabilities: Year Ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 2,279 2020 7,887 2021 8,359 2022 8,475 2023 8,548 Thereafter 85,009 Total 120,557 Less: Imputed Interest (29,518) Lease Liability $ 91,039 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Deposits | |
Deposits | Note 8 — Deposits Our total deposits are comprised of the following: September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Certificates of deposit $ 1,709,175 $ 1,775,095 $ 1,820,122 Interest-bearing demand deposits 5,682,129 5,407,175 5,195,871 Non-interest bearing demand deposits 3,307,532 3,061,769 3,157,478 Savings deposits 1,317,705 1,399,815 1,433,724 Other time deposits 7,246 3,079 6,680 Total deposits $ 12,023,787 $ 11,646,933 $ 11,613,875 At September 30, 2019, December 31, 2018, and September 30, 2018, we had $316.4 million, $320.0 million, and $337.2 million in certificates of deposits of $250,000 and greater, respectively. At September 30, 2019, December 31, 2018, and September 30, 2018, we had $1.3 million, $7.6 million and $12.0 million, in traditional, out-of-market brokered deposits, respectively. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Plans | |
Retirement Plans | Note 9 — Retirement Plans The Company and the Bank provide certain retirement benefits to their employees in the form of an employees’ savings plan. The Company and the Bank previously provided benefits through a non-contributory defined benefit pension plan that covered all employees hired on or before December 31, 2005, who have attained age 21 , and who have completed a year of eligible service, but this plan was terminated in the second quarter of 2019. Employees hired on or after January 1, 2006 were not eligible to participate in the non-contributory defined benefit pension plan, but are eligible to participate in the employees’ savings plan. On this date, a new benefit formula applies only to participants who have not attained age 45 or who do not have five years of service. During 2018, we made the decision to terminate the non-contributory defined benefit pension plan. We received approval from the IRS through a determination letter in the fourth quarter of 2018 to proceed with the termination. The termination of the pension plan was recorded during the second quarter of 2019 and distributions of assets from the plan will be fully paid out by the fourth quarter of 2019. During the second quarter of 2019, the Company recorded a charge of $9.5 million related to the termination of the pension plan in the consolidated statement of income. This cost was the result of the recognition of the pre-tax losses from the pension plan that were recorded and held in accumulated other comprehensive income of $7.7 million and the write-off of the pension plan asset of $1.8 million. 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. Under the provisions of Internal Revenue Code Section 401(k), electing employees are eligible to participate in the employees’ savings plan after attaining age 21 . Plan participants elect to contribute portions of their annual base compensation as a before tax contribution. 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. In 2018, employees participating in the plan received a 100% match of their 401(k) plan contribution from the Company, up to 4 % of their salary. The employees were also eligible for an additional 2 % discretionary matching contribution contingent upon certain of our annual financial goals which would be paid in the first quarter of the following year. Based on our financial performance in 2018, we paid a 0.75 % discretionary matching contribution in the first quarter of 2019. Currently, we expect the same terms in the employees’ savings plan for 2019. We expensed $1.7 million and $4.7 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. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share | |
Earnings Per Share | Note 10 — Earnings Per Share Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during each period, excluding non-vested shares. Our diluted earnings per share are based on the weighted-average shares of common stock outstanding during each period plus the maximum dilutive effect of common stock issuable upon exercise of stock options or vesting of restricted shares. The weighted-average number of shares and equivalents are determined after giving retroactive effect to stock dividends and stock splits. The following table sets forth the computation of basic and diluted earnings per share: Three Months Ended Nine Months Ended September 30, September 30, (Dollars and shares in thousands, except for per share amounts) 2019 2018 2019 2018 Basic earnings per common share: Net income $ 51,565 $ 47,082 $ 137,392 $ 129,867 Weighted-average basic common shares 34,057 36,645 34,859 36,657 Basic earnings per common share $ 1.51 $ 1.28 $ 3.94 $ 3.53 Diluted earnings per share: Net income $ 51,565 $ 47,082 $ 137,392 $ 129,867 Weighted-average basic common shares 34,057 36,645 34,859 36,657 Effect of dilutive securities 243 248 210 252 Weighted-average dilutive shares 34,300 36,893 35,069 36,909 Diluted earnings per common share $ 1.50 $ 1.28 $ 3.92 $ 3.52 The calculation of diluted earnings per common share excludes outstanding stock options for which the results would have been anti-dilutive under the treasury stock method as follows: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Number of shares 62,235 62,235 63,313 62,235 Range of exercise prices $ 87.30 to $ 91.35 $ 87.30 to $ 91.35 $ 69.48 to $ 91.35 $ 87.30 to $ 91.35 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-Based Compensation | |
Share-Based Compensation | Note 11 — Share-Based Compensation Our 2004, 2012 and 2019 share-based compensation plans are long-term retention plans intended to attract, retain, and provide incentives for key employees and non-employee directors in the form of incentive and non-qualified stock options, restricted stock, and restricted stock units (“RSUs”). 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 our 2004, 2012 and 2019 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. No options were granted under the 2012 plan after February 1, 2019, and the 2012 plan is closed other than for any options still unexercised and outstanding. The 2019 plan is the only plan from which new share-based compensation grants may be issued. It is our policy to grant options out of the 1,000,000 shares registered under the 2019 plan. Activity in our stock option plans for 2004 and 2012 is summarized in the following table. Our 2019 plan was adopted by our shareholders at our annual meeting on April 25, 2019. All information has been retroactively adjusted for stock dividends and stock splits. Weighted Weighted Average Aggregate Average Remaining Intrinsic Shares Price (Yrs.) (000's) Outstanding at January 1, 2019 213,866 $ 61.28 Granted — — Exercised (36,978) 33.26 Outstanding at September 30, 2019 176,888 67.14 5.60 $ 2,428 Exercisable at September 30, 2019 131,216 60.12 4.86 $ 2,354 Weighted-average fair value of options granted during the year $0.00 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 (There have been no stock options issued in 2019): Nine months ended September 30, 2019 2018 Dividend yield — % 1.46 % Expected life — years 8.5 years Expected volatility — % 28.0 % Risk-free interest rate — % 2.54 % As of September 30, 2019, there was $880,000 of total unrecognized compensation cost related to nonvested stock option grants under the plans. The cost is expected to be recognized over a weighted-average period of 1.01 years as of September 30, 2019. The total fair value of shares vested during the nine months ended September 30, 2019 was $799,000. Restricted Stock We from time-to-time 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 our shareholders by providing economic value directly related to increases in the value of our stock. The value of the stock awarded is established as the fair market value of the stock at the time of the grant. We recognize expenses, equal to the total value of such awards, ratably over the vesting period of the stock grants. Restricted stock 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 and service in the case of directors. 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. Nonvested restricted stock for the nine months ended September 30, 2019 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, 2019 104,419 $ 62.45 Granted 8,934 73.34 Vested (33,509) 73.78 Forfeited (2,332) 73.89 Nonvested at September 30, 2019 77,512 58.47 As of September 30, 2019, there was $1.5 million of total unrecognized compensation cost related to nonvested restricted stock granted under the plans. This cost is expected to be recognized over a weighted-average period of years as of September 30, 2019. The total fair value of shares vested during the nine months ended September 30, 2019 was Restricted Stock Units We from time-to-time also grants performance RSUs to key employees. These awards help align the interests of these employees with the interests of our shareholders by providing economic value directly related to our performance. 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). We communicate 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. We recognize 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 nine months ended September 30, 2019, we accrued for 83.3% of the RSUs granted, based on the Company’s expectations of performance. Nonvested RSUs for the nine months ended September 30, 2019 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2019 200,540 $ 85.10 Granted 153,060 67.86 Forfeited (2,154) 87.36 Nonvested at September 30, 2019 351,446 77.58 As of September 30, 2019, there was $11.8 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 years as of September 30, 2019. The total fair value of RSUs vested during the nine months ended September 30, 2019 was million. During the nine months ended September 30, 2019, |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | Note 12 — Commitments and Contingent Liabilities In the normal course of business, we make various commitments and incur certain contingent liabilities, which are not reflected in the accompanying financial statements. The commitments and contingent liabilities include guarantees, commitments to extend credit, and standby letters of credit. At September 30, 2019, commitments to extend credit and standby letters of credit totaled $2.9 billion. We do not anticipate any material losses as a result of these transactions. We have been named as defendant in various legal actions, arising from its normal business activities, in which damages in various amounts are claimed. We are 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 is not expected to have a material effect on our consolidated financial statements. The Company and the Bank are involved at times in certain litigation arising in the normal course of business. In the opinion of management as of September 30, 2019, there is no pending or threatened litigation that will have a material effect on our consolidated financial position or results of operations. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value | |
Fair Value | Note 13 — Fair Value FASB ASC Topic 820, Fair Value Measurements and Disclosures 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. We utilize fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. Available for sale securities, derivative contracts, and mortgage servicing rights (“MSRs”) are recorded at fair value on a recurring basis. Additionally, from time to time, we may be required to record at fair value other assets on a nonrecurring basis, such as 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 Topic 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 FHLB stock approximates fair value based on the redemption provisions. Mortgage Loans Held for Sale Mortgage loans held for sale are carried at fair 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 We do not record loans at fair value on a recurring basis. However, from time to time, a loan may be considered impaired and an ALLL 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, 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 September 30, 2019, 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, we consider 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, we consider the impaired loan as nonrecurring Level 3. Other Real Estate Owned OREO, consisting of properties obtained through foreclosure or in satisfaction of loans, is typically 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 ALLL. 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 15—Derivative Financial Instruments for additional information). Mortgage servicing rights 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) September 30, 2019: Assets Derivative financial instruments $ 24,402 $ — $ 24,402 $ — Loans held for sale 87,393 — 87,393 — Securities available for sale: Government-sponsored entities debt 40,967 — 40,967 — State and municipal obligations 188,682 — 188,682 — Mortgage-backed securities 1,583,485 — 1,583,485 — Total securities available for sale 1,813,134 — 1,813,134 — Mortgage servicing rights 28,674 — — 28,674 $ 1,953,603 $ — $ 1,924,929 $ 28,674 Liabilities Derivative financial instruments $ 43,373 $ — $ 43,373 $ — 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 — 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 $ — September 30, 2018: Assets Derivative financial instruments $ 10,015 $ — $ 10,015 $ — Loans held for sale 33,752 — 33,752 — Securities available for sale: Government-sponsored entities debt 52,545 — 52,545 — State and municipal obligations 206,224 — 206,224 — Mortgage-backed securities 1,292,512 — 1,292,512 — Total securities available for sale 1,551,281 — 1,551,281 — Mortgage servicing rights 36,056 — — 36,056 $ 1,631,104 $ — $ 1,595,048 $ 36,056 Liabilities Derivative financial instruments $ 10,035 $ — $ 10,035 $ — Changes in Level 1, 2 and 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. There were no changes in hierarchy classifications of Level 3 assets or liabilities for the nine months ended September 30, 2019. A reconciliation of the beginning and ending balances of Level 3 assets and liabilities recorded at fair value on a recurring basis for the nine months ended September 30, 2019 and 2018 is as follows: (Dollars in thousands) Assets Liabilities Fair value, January 1, 2019 $ 34,727 $ — Servicing assets that resulted from transfers of financial assets 4,506 — Changes in fair value due to valuation inputs or assumptions (7,218) — Changes in fair value due to decay (3,341) — Fair value , September 30, 2019 $ 28,674 $ — Fair value, January 1, 2018 $ 31,119 $ — Servicing assets that resulted from transfers of financial assets 4,580 — Changes in fair value due to valuation inputs or assumptions 3,628 — Changes in fair value due to decay (3,271) — Fair value, September 30, 2018 $ 36,056 $ — There were no unrealized losses included in accumulated other comprehensive income related to Level 3 financial assets and liabilities at September 30, 2019 or 2018. 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) September 30, 2019: OREO $ 13,415 $ — $ — $ 13,415 Non-acquired impaired loans 10,620 — — 10,620 December 31, 2018: OREO $ 11,410 $ — $ — $ 11,410 Non-acquired impaired loans 13,164 — — 13,164 September 30, 2018: OREO $ 12,119 $ — $ — $ 12,119 Non-acquired impaired loans 6,990 — — 6,990 Quantitative Information about Level 3 Fair Value Measurement Weighted Average September 30, December 31, September 30, Valuation Technique Unobservable Input 2019 2018 2018 Nonrecurring measurements: Non-acquired impaired loans Discounted appraisals Collateral discounts 2 % 3 % 3 % OREO Discounted appraisals Collateral discounts and estimated costs to sell 25 % 23 % 24 % Fair Value of Financial Instruments We used the following methods and assumptions in estimating our 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 September 30, 2019, December 31, 2018 and September 30, 2018. 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 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 our investment in unconsolidated subsidiaries approximates fair value. See Note 4—Investment Securities for additional information, as well as page 41 regarding fair value. Loans held for sale Loans — ASU 2016-01 - Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities became effective for us on January 1, 2018. This accounting standard requires us to calculate the fair value of our loans for disclosure purposes based on an estimated exit price. 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 our 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 our 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 we currently offer for loans with similar terms to borrowers of similar credit quality. Fair values for non-performing loans are estimated using a discounted cash flow analysis. Deposit Liabilities Federal Funds Purchased and Securities Sold Under Agreements to Repurchase Other Borrowings Accrued Interest Derivative Financial Instruments Commitments to Extend Credit, Standby Letters of Credit and Financial Guarantees The estimated fair value, and related carrying amount, of our financial instruments are as follows: Carrying Fair (Dollars in thousands) Amount Value Level 1 Level 2 Level 3 September 30, 2019 Financial assets: Cash and cash equivalents $ 719,194 $ 719,194 $ 719,194 $ — $ — Investment securities 1,862,258 1,862,258 49,124 1,813,134 — Loans held for sale 87,393 87,393 — 87,393 — Loans, net of allowance for loan losses 11,229,892 11,259,351 — — 11,259,351 Accrued interest receivable 36,131 36,131 — 7,528 28,603 Mortgage servicing rights 28,674 28,674 — — 28,674 Interest rate swap - non-designated hedge 21,700 21,700 — 21,700 — Other derivative financial instruments (mortgage banking related) 2,702 2,702 — 2,702 — Financial liabilities: Deposits 12,023,787 11,302,479 — 11,302,479 — Federal funds purchased and securities sold under agreements to repurchase 269,072 269,072 — 269,072 — Other borrowings 815,771 818,294 — 818,294 — Accrued interest payable 5,036 5,036 — 5,036 — Interest rate swap - non-designated hedge 23,723 23,723 — 23,723 — Interest rate swap - cash flow hedge 19,564 19,564 — 19,564 — Other derivative financial instruments (mortgage banking related) 86 86 — 86 — Off balance sheet financial instruments: Commitments to extend credit — 7,622 — 7,622 — 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 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) — September 30, 2018 Financial assets: Cash and cash equivalents $ 307,309 $ 307,309 $ 307,309 $ — $ — Investment securities 1,571,010 1,571,010 19,229 1,551,781 — Loans held for sale 33,752 33,752 — 33,752 — Loans, net of allowance for loan losses 10,855,344 10,640,774 — — 10,640,774 Accrued interest receivable 34,808 34,808 — 6,419 28,389 Mortgage servicing rights 36,056 36,056 — — 36,056 Interest rate swap - non-designated hedge 9,268 9,268 — 9,268 — Other derivative financial instruments (mortgage banking related) 747 747 — 747 — Financial liabilities: Deposits 11,613,875 10,617,021 — 10,617,021 — Federal funds purchased and securities sold under agreements to repurchase 279,698 279,698 — 279,698 — Other borrowings 115,919 119,017 — 119,017 — Accrued interest payable 4,279 4,279 — 4,279 — Interest rate swap - cash flow hedge 82 82 — 82 — Interest rate swap - non-designated hedge 9,460 9,460 — 9,460 — Other derivative financial instruments (mortgage banking related) 493 493 — 493 — Off balance sheet financial instruments: Commitments to extend credit — (56,732) — (56,732) — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | Note 14 — Accumulated Other Comprehensive Income (Loss) The changes in each components 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 Three Months Ended September 30, 2019 Balance at June 30, 2019 $ (297) $ 12,944 $ (11,181) $ 1,466 Other comprehensive gain (loss) before reclassifications — 5,824 (3,891) 1,933 Amounts reclassified from accumulated other comprehensive loss — (341) (188) (529) Net comprehensive income (loss) — 5,483 (4,079) 1,404 Balance at September 30, 2019 $ (297) $ 18,427 $ (15,260) $ 2,870 Three Months Ended September 30, 2018 Balance at June 30, 2018 $ (7,456) $ (28,526) $ (89) $ (36,071) Other comprehensive loss before reclassifications — (8,624) (1) (8,625) Amounts reclassified from accumulated other comprehensive income 151 9 27 187 Net comprehensive income (loss) 151 (8,615) 26 (8,438) Balance at September 30, 2018 $ (7,305) $ (37,141) $ (63) $ (44,509) Nine Months Ended September 30, 2019 Balance at December 31, 2018 $ (6,450) $ (18,394) $ (37) $ (24,881) Other comprehensive income (loss) before reclassifications — 34,732 (14,766) 19,966 Amounts reclassified from accumulated other comprehensive income (loss) 6,153 2,089 (457) 7,785 Net comprehensive income (loss) 6,153 36,821 (15,223) 27,751 Balance at September 30, 2019 $ (297) $ 18,427 $ (15,260) $ 2,870 Nine Months Ended September 30, 2018 Balance at December 31, 2017 $ (5,998) $ (4,278) $ (151) $ (10,427) Other comprehensive income (loss) before reclassifications — (32,224) 34 (32,190) Amounts reclassified from accumulated other comprehensive income 453 508 94 1,055 Net comprehensive income (loss) 453 (31,716) 128 (31,135) AOCI reclassification to retained earnings from the adoption of ASU 2018-02 (1,760) (1,147) (40) (2,947) Balance at September 30, 2018 $ (7,305) $ (37,141) $ (63) $ (44,509) The table below presents the reclassifications out of accumulated other comprehensive income (loss), net of tax: Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, Accumulated Other Comprehensive Income (Loss) Component 2019 2018 2019 2018 Income Statement Gains (losses) on cash flow hedges: Interest rate contracts $ (241) $ 35 $ (585) $ 121 Interest expense 53 (8) 128 (27) Provision for income taxes (188) 27 (457) 94 Net income (Gains) losses on sales of available for sale securities: $ (437) $ 11 $ 2,679 $ 652 Securities gains (losses), net 96 (2) (590) (144) Provision for income taxes (341) 9 2,089 508 Net income Losses and amortization of defined benefit pension: Actuarial losses $ — $ 194 $ 7,888 $ 581 Salaries and employee benefits — (43) (1,735) (128) Provision for income taxes — 151 6,153 453 Net income Total reclassifications for the period $ (529) $ 187 $ 7,785 $ 1,055 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Financial Instruments | |
Derivative Financial Instruments | Note 15 — Derivative Financial Instruments We use 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: September 30, 2019 September 30, 2018 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 on Junior Subordinated Debt: Pay fixed rate swap with counterparty Other Liabilities $ — $ — $ — $ 8,000 $ — $ 82 Cash flow hedges of interest rate risk on FHLB Advances: Pay fixed rate swap with counterparty Other Liabilities $ 700,000 $ — $ 19,564 $ — $ — $ — Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets and Other Liabilities $ 2,769 $ — $ 260 $ 2,824 $ 33 $ — Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities $ 509,395 $ 21,700 $ 63 $ 342,166 $ 193 $ 9,460 Matched interest rate swaps with counterparty Other Assets and Other Liabilities $ 509,395 $ — $ 23,400 $ 342,166 $ 9,042 $ — Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Liabilities $ 134,000 $ — $ 86 $ 63,500 $ — $ 493 Forward sales commitments used to hedge mortgage pipeline Other Assets $ 145,625 $ 2,702 $ — $ 83,068 $ 747 $ — Total derivatives $ 2,001,184 $ 24,402 $ 43,373 $ 841,724 $ 10,015 $ 10,035 Cash Flow Hedge 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. We account for interest rate swaps that are classified as cash flow hedges 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. We have three cash flow hedges as of September 30, 2019. We had one cash flow hedge mature during the second quarter of 2019. For more information regarding the fair value of our derivative financial instruments, see Note 13 to these financial statements. Our cash flow hedge, in which we utilized an interest rate swap agreement to essentially convert a portion of its variable-rate debt to a fixed rate (cash flow hedge), matured June 15, 2019 and was no longer in existence at June 30, 2019. During 2009, we 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. We hedged the variable rate cash flows of subordinated debt against future interest rate increases by using an interest rate swap that effectively fixed 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. The notional amount on which the interest payments were based was not exchanged. This derivatives contract called for us to pay a fixed rate of 4.06% on the $8.0 million notional amount and receive a variable rate of three-month LIBOR on the $8.0 million notional amount. For the three remaining cash flow hedges, we utilize interest rate swap agreements to manage interest rate risk related to funding through short term FHLB advances. In March 2019, we entered into three-month FHLB advances for $350 million and $150 million for which at this time we plan to continuously renew. At the same time, we entered into interest rate swap agreements with a notional amount of $350 million and $150 million to manage the interest rate risk related to these FHLB advances. In June 2019, we entered into a three-month FHLB advance for $200 million for which at this time we plan to continuously renew. At the same time, we entered into an interest rate swap agreement with a notional amount of $200 million to manage the interest rate risk related to this FHLB advance. With our plan to continually renew and reprice the FHLB advances every three months, we are treating this funding as variable rate funding. We are hedging the cash flows from these FHLB advances against future interest rate increases by using an interest rate swap that effectively fixed the rate on the debt. The notional amount on which the interest payments are based will not be exchanged related to these interest rate swaps. The derivative contract on the $350 million notional amount calls for us to pay a fixed rate of 2.44% and receive a variable rate of three-month LIBOR (2.16 % at September 30, 2019). The derivative contract on the $150 million notional amount calls for us to pay a fixed rate of 2.21% and receive a variable rate of three-month LIBOR (2.10% at September 30, 2019). The derivative contract on the $200 million notational amount calls for us to pay a fixed rate of 1.89% and receive a variable rate of three-month LIBOR (2.14% at September 30, 2019). The hedge for $350 million expires on March 23, 2023, the hedge for $150 million expires on March 29, 2024, and the hedge for the $200 million expires on June 3, 2024. For derivatives designated as hedging exposure to variable cash flows of a forecasted transaction (cash flow hedge), the derivative’s entire 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. For derivatives that are not designated as hedging instruments, changes in the fair value of the derivatives are recognized in earnings immediately. For designated hedging relationships, we have a third party perform retrospective and prospective effectiveness testing on a quarterly basis using quantitative methods to determine if the hedge is still highly effective. Hedge accounting ceases on transactions that are no longer deemed highly effective, or for which the derivative has been terminated or de-designated. We recognized an after-tax unrealized loss on our cash flow hedges in other comprehensive income of $4.1 million and $15.2 million for the three and nine months ended months ended September 30, 2019, respectively. This compares to an unrealized gain of $26,000 and $128,000 for the three and nine months ended September 30, 2018. We recognized a $19.6 million cash flow hedge liability in other liabilities on the balance sheet at September 30, 2019, as compared to an $82,000 liability at September 30, 2018. There was no ineffectiveness in the cash flow hedge during the three and nine months ended September 30, 2019 and 2018. (See Note 14 – Accumulated Other Comprehensive Income (Loss) for activity in accumulated comprehensive income (loss) and the amounts reclassified into earnings related the cash flow hedges.) Credit risk related to the derivative arises when amounts receivable from the counterparty (derivatives dealer) exceed those payable. We control the risk of loss by only transacting with derivatives 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 September 30, 2018, we provided $300,000 of collateral, respectively, on the cash flow hedge on the junior subordinated debt which is included in cash and cash equivalents on the balance sheet as interest-bearing deposits with banks. As of September 30, 2019, we provided $28.2 million of collateral on the cash flow hedges on the FHLB advances which is also included in cash and cash equivalents on the balance sheet as interest-bearing deposits with banks. Also, we have a netting agreement with the counterparties. Balance Sheet Fair Value Hedge We maintain one loan swap, with an aggregate notional amount of $2.8 million at September 30, 2019, accounted for as fair value hedges in accordance with ASC 815, Derivatives and Hedgin g. This derivative protects us 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 either other assets or in other liabilities depending on the position of the hedge. All changes in fair value are recorded through earnings as noninterest income. There was no gain or loss recorded on this derivative for the three and nine months ended September 30, 2019 or 2018. Non-designated Hedges of Interest Rate Risk Customer Swap We maintain 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 September 30, 2019, the interest rate swaps had an aggregate notional amount of approximately Foreign Exchange We also enter 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, we have entered into substantially identical agreements with an unrelated market counterparty to hedge these foreign exchange contracts. At September 30, 2019 and 2018, there were no outstanding contracts or agreements related to foreign currency. If there were foreign currency contracts outstanding September 30, 2019, 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 three and nine months ended September 30, 2019 or 2018. Mortgage Banking We also have derivatives contracts that are classified as non-designated hedges. These derivatives contracts are a part of our risk management strategy for its mortgage banking activities. These instruments may include financial forwards, futures contracts, and options written and purchased, which are used to hedge MSRs; 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. We do 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 our consolidated statements of income in mortgage banking income. Mortgage Servicing Rights Derivatives contracts related to MSRs 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 September 30, 2019, we had derivative financial instruments outstanding with notional amounts totaling $134.0 million related to MSRs, compared to $63.5 million on September 30, 2018. The estimated net fair value of the open contracts related to the MSRs was recorded as a gain of $2.1 million at September 30, 2019, compared to a gain of $392,000 at September 30, 2018. Mortgage Pipeline The following table presents our notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline. (Dollars in thousands) September 30, 2019 December 31, 2018 September 30, 2018 Mortgage loan pipeline $ 148,749 $ 50,442 $ 74,898 Expected closures 111,561 37,832 56,174 Fair value of mortgage loan pipeline commitments 2,071 705 392 Forward sales commitments 145,625 54,533 83,068 Fair value of forward commitments 631 (621) 355 |
Capital Ratios
Capital Ratios | 9 Months Ended |
Sep. 30, 2019 | |
Capital Ratios | |
Capital Ratios | Note 16 — Capital Ratios We are 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 raised 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 is also required to maintain a “capital conservation buffer” in addition to its minimum risk-based capital requirements. This buffer is required to consist solely of CET1, and the buffer applies to all three risk-based measurements (CET1, Tier 1 capital and total capital). The capital conservation buffer was phased in incrementally over time, beginning January 1, 2016 and become fully effective on January 1, 2019. The fully phased-in capital conservation buffer consists 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 September 30, 2019, December 31, 2018 and September 30, 2018 for the Company and the Bank under the Basel III capital rules. The minimum required capital amounts presented below include the minimum required capital levels based on the phase-in provisions of the Basel III Capital Rules. The minimum required capital levels plus the capital conservation buffer under the Basel III capital rules became fully phased-in as of January 1, 2019. Capital levels required 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 September 30, 2019 Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,302,034 11.22 % $ 812,276 7.00 % $ 812,276 7.00 % $ 754,257 6.50 % South State Bank (the Bank) 1,392,599 12.00 % 812,284 7.00 % 812,284 7.00 % 754,263 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,414,138 12.19 % 986,336 8.50 % 986,336 8.50 % 928,316 8.00 % South State Bank (the Bank) 1,392,599 12.00 % 986,345 8.50 % 986,345 8.50 % 928,324 8.00 % Total capital to risk-weighted assets: Consolidated 1,474,728 12.71 % 1,218,415 10.50 % 1,218,415 10.50 % 1,160,395 10.00 % South State Bank (the Bank) 1,453,189 12.52 % 1,218,426 10.50 % 1,218,426 10.50 % 1,160,405 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,414,138 9.72 % 581,786 4.00 % 581,786 4.00 % 727,232 5.00 % South State Bank (the Bank) 1,392,599 9.58 % 581,648 4.00 % 581,648 4.00 % 727,060 5.00 % 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 % September 30, 2018: Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,356,267 12.30 % $ 702,980 6.38 % $ 771,899 7.00 % $ 716,764 6.50 % South State Bank (the Bank) 1,449,326 13.14 % 703,049 6.38 % 771,975 7.00 % 716,834 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,467,703 13.31 % 868,387 7.88 % 937,306 8.50 % 882,170 8.00 % South State Bank (the Bank) 1,449,326 13.14 % 868,472 7.88 % 937,399 8.50 % 882,258 8.00 % Total capital to risk-weighted assets: Consolidated 1,521,875 13.80 % 1,088,929 9.88 % 1,157,849 10.50 % 1,102,713 10.00 % South State Bank (the Bank) 1,503,498 13.63 % 1,089,037 9.88 % 1,157,963 10.50 % 1,102,822 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,467,703 10.82 % 542,720 4.00 % 542,720 4.00 % 678,401 5.00 % South State Bank (the Bank) 1,449,326 10.68 % 542,575 4.00 % 542,575 4.00 % 678,219 5.00 % As of September 30, 2019, December 31, 2018, and September 30, 2018, 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangible Assets | |
Goodwill and Other Intangible Assets | Note 17—Goodwill and Other Intangible Assets The carrying amount of goodwill was $1.0 billion at September 30, 2019. Our 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: September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Gross carrying amount $ 119,501 $ 121,736 $ 121,736 Accumulated amortization (66,418) (58,836) (55,299) $ 53,083 $ 62,900 $ 66,437 Amortization expense totaled $3.3 million and $9.8 million for the three and nine months ended September 30, 2019, respectively, compared to $3.5 million and $10.7 million for the three and nine months ended September 30, 2018, respectively. Other intangibles are amortized using either the straight-line method or an accelerated basis over their estimated useful lives, with lives generally between two and 15 years. Estimated amortization expense for other intangibles for each of the next five quarters is as follows: (Dollars in thousands) Quarter ending: December 31, 2019 $ 3,267 March 31, 2020 3,007 June 30, 2020 2,995 September 30, 2020 2,945 December 31, 2020 2,921 Thereafter 37,948 $ 53,083 |
Loan Servicing, Mortgage Origin
Loan Servicing, Mortgage Origination, and Loans Held for Sale | 9 Months Ended |
Sep. 30, 2019 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | Note 18 — Loan Servicing, Mortgage Origination, and Loans Held for Sale As of September 30, 2019, December 31, 2018, and September 30, 2018, the portfolio of residential mortgages serviced for others, which is not included in the accompanying balance sheets, was $3.1 billion, $3.1 billion, and $3.0 billion, 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 we earned during both the three and nine months ended September 30, 2019 and September 30, 2018 was $1.9 million and $5.8 million, and $1.9 million and $5.7 million, respectively. Servicing fees are recorded in mortgage banking income in our consolidated statements of income. At September 30, 2019, December 31, 2018, and September 30, 2018, MSRs were $28.7 million, $34.7 million, and $36.1 million on our consolidated balance sheets, respectively. 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 three and nine months ended September 30, 2019 and September 30, 2018 were losses of $2.3 million and $7.2 million, compared with gains of $683,000 and $3.6 million, respectively. We 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. See Note 13 — Fair Value for the changes in fair value of MSRs. The following table presents the changes in the fair value of the offsetting hedge. Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Increase (decrease) in fair value of MSRs $ (2,294) $ 683 $ (7,218) $ 3,628 Decay of MSRs (1,312) (1,201) (3,341) (3,271) Gain (loss) related to derivatives 1,476 (559) 5,415 (2,452) Net effect on statements of income $ (2,130) $ (1,077) $ (5,144) $ (2,095) 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 increase, mortgage loan prepayments decelerate due to decreased refinance activity, which results in an increase in the fair value of the MSRs. 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 13 — Fair Value for additional information regarding fair value. The characteristics and sensitivity analysis of the MSRs are included in the following table. September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.8 % 99.8 % 99.8 % Adjustable-rate mortgage loans 0.2 % 0.2 % 0.2 % Total 100.0 % 100.0 % 100.0 % Weighted average life 6.10 years 7.88 years 8.67 years Constant Prepayment rate (CPR) 11.4 % 7.3 % 6.0 % Weighted average discount rate 9.4 % 9.4 % 9.4 % Effect on fair value due to change in interest rates 25 basis point increase $ 2,398 $ 1,504 $ 816 50 basis point increase 4,390 2,740 1,423 25 basis point decrease (2,862) (1,981) (1,261) 50 basis point decrease (5,999) (4,421) (2,892) The sensitivity calculations in the previous table 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, 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 $33.7 million and $31.3 million at September 30, 2019 and September 30, 2018, respectively. Whole loan sales were $216.1 million and $517.9 million for the three and nine months ended September 30, 2019, respectively, compared to $168.3 million and $496.9 million for the three and nine months ended September 30, 2018, respectively. For the three and nine months ended September 30, 2019, $175.9 million and $412.4 million, or 81.4% and 79.6%, respectively, were sold with the servicing rights retained by the company, compared to $125.5 million and $378.5 million, or 74.5% and 76.2%, for the three and nine months ended September 30, 2018, respectively. 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 . Loans held for sale were $87.4 million, $22.9 million and $33.8 million at September 30, 2019, December 31, 2018 and September 30, 2018, respectively. |
Investments in Qualified Afford
Investments in Qualified Affordable Housing Projects | 9 Months Ended |
Sep. 30, 2019 | |
Investment In Qualified Affordable Housing Projects. | |
Investment in Qualified Affordable Housing Projects | Note 19 – Investments in Qualified Affordable Housing Projects We have 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 nine months ended September 30, 2019, tax credits and other tax benefits of $4.7 million and amortization of $4.9 million were recorded. For the nine months ended September 30, 2018, tax credits and other tax benefits of $3.6 million and amortization of $3.1 million were recorded. At September 30, 2019 and 2018, our carrying value of QAHPs was $78.1 million and $42.5 million, respectively, with an original investment of $96.9 million. We have million in remaining funding obligations related to these QAHPs recorded in liabilities at September 30, 2019 and 2018, respectively. None of the original investment will be repaid. The investment in QAHPs is being accounted for using the equity method. |
Repurchase Agreements
Repurchase Agreements | 9 Months Ended |
Sep. 30, 2019 | |
Repurchase Agreements | |
Repurchase Agreements | Note 20 – Repurchase Agreements 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. Repurchase agreements are included in federal funds purchased and securities sold under agreements to repurchase on the condensed consolidated balance sheets. At September 30, 2019, December 31, 2018 and September 30, 2018, our repurchase agreements totaled $235.5 million, $205.3 million, and $215.3 million, respectively. All of our repurchase agreements were overnight or continuous (until-further-notice) agreements at September 30, 2019, December 31, 2018 and September 30, 2018. These borrowings were collateralized with government, government-sponsored enterprise, or state and political subdivision-issued securities with a carrying value of |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events | |
Subsequent Events | Note 21 – Subsequent Events In June 2019, the Board of Directors approved and reset the number of shares available to be repurchased to 2,000,000 common shares under the 2019 Stock Repurchase Program (“Repurchase Program”). As of September 30, 2019, we had repurchased shares authorized by the Board of Directors in June 2019. In October 2019, we repurchased an additional million. We may repurchase up to an additional We have evaluated subsequent events for accounting and disclosure purposes through the date the financial statements are issued and have determined that there is no additional disclosure necessary. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Summary of Significant Accounting Policies | |
Leases | Leases (Topic 842) and Method of Adoption On January 1, 2019, we adopted the requirements of Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; and ASU No. 2019-01, Codification Improvements to Topic 842 Leases. The purpose of the update was to increase transparency and comparability between organizations that enter into lease agreements. The key difference between the previous guidance and the update is the recognition of a right-of-use asset (ROU) and lease liability on the statement of financial position for those leases previously classified as operating leases under the old guidance. Accounting Standards Codification (“ASC”) Topic 842 defines a lease as a contract, or part of a contract, that conveys the right to control the use of identified property, plant, or equipment (an identified asset) for a period of time in exchange for consideration. In applying this standard, we reviewed our material contracts to determine if they included a lease by this new definition and did not identify any new leases. Our lease agreements in which ASC Topic 842 has been applied are primarily for real estate properties, including retail branch locations, operations and administration locations and stand-alone ATM locations. These leases have lease terms from greater than 12 months to leases with . Related to lease payment terms, some are fixed payments or based on a fixed annual increases while others are variable and the annual increases are based on market rates. We performed an analysis on equipment leases for the implementation of ASC Topic 842 and determined the number and dollar amount of our equipment leases was not material. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. We chose the transition method of adoption provided by ASU 2018-11, Leases (Topic 842) – Targeted Improvements, where we initially apply the new lease standard at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption if applicable. Therefore, we applied this standard to all existing leases as of the adoption date of January 1, 2019, recording a ROU asset and a lease liability in an equal amount. We did not have a cumulative-effect adjustment to the opening balance of retained earnings. With this transition method, we did not have to restate comparative prior periods presented in the financial statements related to ASC Topic 842, but will present comparative prior periods disclosures using the previous accounting guidance for leases. 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. ASC Topic 842 provides a package of practical expedients in applying the lease standard that had to be chosen at the date of adoption. We chose to elect this package of practical expedients. With this election, we do not have to reassess whether any expired or existing contracts are or contain a lease, do not have to reassess the classification of any expired or existing leases, do not have to separate lease and non-lease components and can account for both as a single lease component, and do not have to reassess initial direct costs or cash incentives for any existing leases due to immateriality. In addition, we chose not to apply ASC Topic 842 to short-term leases (leases with terms of 12 months or less) and not to record an underlying ROU asset or lease liability based on the uncertainty around the renewal of these leases. We will recognize lease expense for such leases on a straight-line basis over the lease term. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. We determined that we do not have any leases classified as finance leases and that all of our leases are operating leases. ROU assets and liabilities for operating leases are recognized at commencement date based on present value of lease payments not yet paid, discounted using the discount rate for the lease at the lease commencement date over the lease term. For operating leases, lease expense is determined by the sum of the lease payments to be recognized on a straight-line basis over the lease term. Based on the transition method that we chose to follow, the commencement date of the lease term for all existing leases is January 1, 2019. The lease term used for the calculation of the initial ROU asset and lease liability will include the initial lease term in addition to any renewal options or termination costs in the lease that we think are reasonably certain to be exercised or incurred. We received input from several levels of management and our corporate real estate department in determining which options were reasonably certain to be exercised. A discount rate is also needed in the calculation of the initial ROU assets and lease liability. ASC Topic 842 requires that the implicit rate within the lease agreement be used if available. If not available, we should use its incremental borrowing rate in effect at the time of the lease commencement date. We looked at the incremental borrowing rate from several of our borrowing sources to determine an average rate to be used in the calculation of the initial ROU asset and lease liability. We also considered the term of the borrowings as they relate to the terms of the leases. The adoption of the new standard had a material impact on our consolidated balance sheet, with the recording of ROU asset and lease liability of $82.2 million at the commencement date of January 1, 2019. We did not have a cumulative-effect adjustment to the opening balance of retained earnings at commencement. As of September 30, 2019, we had ROU assets of million recorded within other liabilities on the balance sheet. The adoption of ASC Topic 842 did not have a material impact on our consolidated income statement. |
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 ASU 2014-09, Revenue from Contracts with Customers (“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. We adopted 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 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 through March 31, 2018 for this reclassification. 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 Topic 606, we 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 Topic 606 involve income derived from contracts with customers. Within the scope of Topic 606, we maintain contracts to provide services, primarily for investment advisory and/or custody of assets. Through our wholly-owned subsidiaries, the Bank and South State Advisory, Inc., we contract with our customers to perform IRA, Trust, and/or Custody and Agency advisory services. million, respectively, for the nine months ended September 30, 2019 and 2018. The Bank contracts with our customers to perform deposit account services. Total revenue recognized from these contracts with customers is million, respectively, for the nine months ended September 30, 2019 and 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 - million, respectively, for the nine months ended September 30, 2019 and 2018. Total revenue derived from contracts in which services are transferred over time was million, respectively, for the nine months ended September 30, 2019 and 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 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 our 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 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 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 - 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 the Bank which we contract with our customers to perform IRA, trust, and/or custody services. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019: State and municipal obligations $ — $ — $ — $ — December 31, 2018: State and municipal obligations $ — $ — $ — $ — September 30, 2018: State and municipal obligations $ 500 $ — $ — $ 500 |
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 September 30, 2019: Government-sponsored entities debt* $ 40,322 $ 645 $ — $ 40,967 State and municipal obligations 183,005 5,720 (43) 188,682 Mortgage-backed securities** 1,566,182 19,791 (2,488) 1,583,485 $ 1,789,509 $ 26,156 $ (2,531) $ 1,813,134 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 September 30, 2018: Government-sponsored entities debt* $ 54,397 $ — $ (1,852) $ 52,545 State and municipal obligations 207,723 1,114 (2,613) 206,224 Mortgage-backed securities** 1,336,778 115 (44,381) 1,292,512 $ 1,598,898 $ 1,229 $ (48,846) $ 1,551,281 * - Our 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, Federal Home Loan Bank (“FHLB”), and Federal Farm Credit Banks (“FFCB”). ** - All of the mortgage-backed securities are issued by government-sponsored entities; there are no private-label holdings. Also, included in our mortgage-backed securities are debt securities offered by the Small Business Administration (“SBA”), which have the full faith and credit backing of the United States Government. |
Schedule of amortized cost and carrying value of other investment securities | Carrying (Dollars in thousands) Value September 30, 2019: Federal Home Loan Bank stock $ 43,044 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 49,124 December 31, 2018: Federal Home Loan Bank stock $ 19,524 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 25,604 September 30, 2018: Federal Home Loan Bank stock $ 13,149 Investment in unconsolidated subsidiaries 3,563 Other nonmarketable investment securities 2,517 $ 19,229 |
Schedule of amortized cost and fair value of debt and equity 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 $ — $ — $ 6,012 $ 6,018 Due after one year through five years — — 71,916 72,679 Due after five years through ten years — — 411,641 418,641 Due after ten years — — 1,299,940 1,315,796 $ — $ — $ 1,789,509 $ 1,813,134 |
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 September 30, 2019: Securities Available for Sale Government-sponsored entities debt $ — $ — $ — $ — State and municipal obligations 43 5,275 — — Mortgage-backed securities 1,113 312,686 1,375 154,111 $ 1,156 $ 317,961 $ 1,375 $ 154,111 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 September 30, 2018: Securities Available for Sale Government-sponsored entities debt $ 538 $ 20,253 $ 1,314 $ 32,293 State and municipal obligations 2,313 89,908 300 8,104 Mortgage-backed securities 25,077 876,430 19,304 389,045 $ 27,928 $ 986,591 $ 20,918 $ 429,442 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowance for Loan Losses | |
Schedule of changes in the carrying value | Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 485,119 $ 618,803 Net reductions for payments, foreclosures, and accretion (93,691) (106,829) Change in the allowance for loan losses on acquired loans (714) 659 Balance at end of period, net of allowance for loan losses on acquired credit impaired loans $ 390,714 $ 512,633 |
Schedule of changes in allowance for loan losses | Non-acquired Acquired Non-Credit Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Three Months Ended September 30, 2019: Balance at beginning of period $ 53,590 $ — $ 4,623 $ 58,213 Loans charged-off (1,969) (810) — (2,779) Recoveries of loans previously charged off (1) 834 50 — 884 Net charge-offs (1,135) (760) — (1,895) Provision for loan losses charged to operations 2,482 760 786 4,028 Reduction due to loan removals — — (91) (91) Balance at end of period $ 54,937 $ — $ 5,318 $ 60,255 Three Months Ended September 30, 2018: Balance at beginning of period $ 47,874 $ — $ 4,426 $ 52,300 Loans charged-off (1,891) (97) — (1,988) Recoveries of loans previously charged off (1) 555 27 — 582 Net charge-offs (1,336) (70) — (1,406) Provision for loan losses charged to operations 3,331 70 (284) 3,117 Reduction due to loan removals — — (174) (174) Balance at end of period $ 49,869 $ — $ 3,968 $ 53,837 Non-acquired Acquired Non-Credit Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Nine Months Ended September 30, 2019: Balance at beginning of period $ 51,194 $ — $ 4,604 $ 55,798 Loans charged-off (4,541) (2,719) — (7,260) Recoveries of loans previously charged off (1) 2,461 372 — 2,833 Net charge-offs (2,080) (2,347) — (4,427) Provision for loan losses charged to operations 5,823 2,347 1,050 9,220 Reduction due to loan removals — — (336) (336) Balance at end of period $ 54,937 $ — $ 5,318 $ 60,255 Nine Months Ended September 30, 2018: Balance at beginning of period $ 43,448 $ — $ 4,627 $ 48,075 Loans charged-off (4,300) (1,614) — (5,914) Recoveries of loans previously charged off (1) 2,408 279 — 2,687 Net charge-offs (1,892) (1,335) — (3,227) Provision for losses charged to operations 8,313 1,335 401 10,049 Reduction due to loan removals — — (1,060) (1,060) Balance at end of period $ 49,869 $ — $ 3,968 $ 53,837 (1) – Recoveries related to acquired credit impaired loans are recorded through other noninterest income on the consolidated statement of income and do not run through the ALLL. |
Summary of information pertaining to impaired loans | Unpaid Recorded Gross Contractual Investment Recorded Total Principal With No Investment Recorded Related (Dollars in thousands) Balance Allowance With Allowance Investment Allowance September 30, 2019 Commercial real estate: Construction and land development $ 33,063 $ 225 $ 32,448 $ 32,673 $ 587 Commercial non-owner occupied 146 74 13 87 — Commercial owner occupied 8,401 5,544 1,591 7,135 33 Consumer real estate: Consumer owner occupied 5,441 3,610 1,517 5,127 33 Home equity loans 2,476 1,087 1,258 2,345 121 Commercial and industrial 5,779 1,874 3,439 5,313 387 Other income producing property 2,489 430 1,666 2,096 58 Consumer 145 — 91 91 2 Total $ 57,940 $ 12,844 $ 42,023 $ 54,867 $ 1,221 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 September 30, 2018 Commercial real estate: Construction and land development $ 36,203 $ 1,029 $ 34,747 $ 35,776 $ 723 Commercial non-owner occupied 1,480 812 503 1,315 81 Commercial owner occupied 5,507 2,668 1,883 4,551 40 Consumer real estate: Consumer owner occupied 5,914 4,478 942 5,420 28 Home equity loans 3,141 1,135 1,891 3,026 171 Commercial and industrial 1,462 467 942 1,409 475 Other income producing property 3,165 158 2,772 2,930 133 Consumer 284 — 213 213 6 Total $ 57,156 $ 10,747 $ 43,893 $ 54,640 $ 1,657 |
Summary of average investment in impaired loans and interest income recognized on impaired loans | Three Months Ended September 30, 2019 2018 Average Average Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ 34,401 $ 177 $ 39,084 $ 158 Commercial non-owner occupied 94 1 1,332 5 Commercial owner occupied 6,288 129 4,650 81 Consumer real estate: Consumer owner occupied 5,346 36 5,524 32 Home equity loans 2,391 36 3,085 30 Commercial and industrial 3,993 123 1,622 8 Other income producing property 2,080 14 3,085 32 Consumer 95 — 235 — Total Impaired Loans $ 54,688 $ 516 $ 58,617 $ 346 Nine Months Ended September 30, 2019 2018 Average Average Investment in Interest Income Investment in Interest Income (Dollars in thousands) Impaired Loans Recognized Impaired Loans Recognized Commercial real estate: Construction and land development $ 35,293 $ 967 $ 39,503 $ 968 Commercial non-owner occupied 556 6 1,345 19 Commercial owner occupied 5,638 290 5,096 228 Consumer real estate: Consumer owner occupied 5,944 129 5,527 120 Home equity loans 2,586 100 3,019 95 Commercial and industrial 3,302 209 1,282 43 Other income producing property 2,484 68 3,034 120 Consumer 140 — 226 — Other loans — — — — Total Impaired Loans $ 55,943 $ 1,769 $ 59,032 $ 1,593 |
Non-acquired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 955,318 $ 841,445 $ 902,836 Commercial non-owner occupied 1,777,327 1,415,551 1,279,328 Total commercial non-owner occupied real estate 2,732,645 2,256,996 2,182,164 Consumer real estate: Consumer owner occupied 2,118,127 1,936,265 1,844,203 Home equity loans 521,744 495,148 473,381 Total consumer real estate 2,639,871 2,431,413 2,317,584 Commercial owner occupied real estate 1,677,695 1,517,551 1,449,069 Commercial and industrial 1,130,847 1,054,952 991,842 Other income producing property 220,957 214,353 209,983 Consumer 525,040 448,664 438,789 Other loans 1,457 9,357 17,047 Total non-acquired loans 8,928,512 7,933,286 7,606,478 Less allowance for loan losses (54,937) (51,194) (49,869) Non-acquired loans, net $ 8,873,575 $ 7,882,092 $ 7,556,609 |
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 Three Months Ended September 30, 2019 Allowance for loan losses: Balance, June 30, 2019 $ 5,718 $ 10,311 $ 9,526 $ 12,432 $ 3,177 $ 7,495 $ 1,359 $ 3,572 $ — $ 53,590 Charge-offs (69) — (31) (10) (100) (32) — (1,727) — (1,969) Recoveries 208 2 18 149 86 77 29 265 — 834 Provision (benefit) 159 238 456 (24) 28 21 (29) 1,633 — 2,482 Balance, September 30, 2019 $ 6,016 $ 10,551 $ 9,969 $ 12,547 $ 3,191 $ 7,561 $ 1,359 $ 3,743 $ — $ 54,937 Loans individually evaluated for impairment $ 587 $ — $ 33 $ 33 $ 121 $ 387 $ 58 $ 2 $ — $ 1,221 Loans collectively evaluated for impairment $ 5,429 $ 10,551 $ 9,936 $ 12,514 $ 3,070 $ 7,174 $ 1,301 $ 3,741 $ — $ 53,716 Loans: Loans individually evaluated for impairment $ 32,673 $ 87 $ 7,135 $ 5,127 $ 2,345 $ 5,313 $ 2,096 $ 91 $ — $ 54,867 Loans collectively evaluated for impairment 922,645 1,777,240 1,670,560 2,113,000 519,399 1,125,534 218,861 524,949 1,457 8,873,645 Total non-acquired loans $ 955,318 $ 1,777,327 $ 1,677,695 $ 2,118,127 $ 521,744 $ 1,130,847 $ 220,957 $ 525,040 $ 1,457 $ 8,928,512 Three Months Ended September 30, 2018 Allowance for loan losses: Balance, June 30, 2018 $ 6,187 $ 7,209 $ 8,607 $ 10,945 $ 3,368 $ 6,711 $ 1,413 $ 3,071 $ 363 $ 47,874 Charge-offs — — (578) (76) (40) (34) — (1,163) — (1,891) Recoveries 178 2 105 43 11 27 3 186 — 555 Provision (benefit) (352) 774 943 468 102 219 (6) 1,089 94 3,331 Balance, September 30, 2018 $ 6,013 $ 7,985 $ 9,077 $ 11,380 $ 3,441 $ 6,923 $ 1,410 $ 3,183 $ 457 $ 49,869 Loans individually evaluated for impairment $ 723 $ 81 $ 40 $ 28 $ 171 $ 475 $ 133 $ 6 $ — $ 1,657 Loans collectively evaluated for impairment $ 5,290 $ 7,904 $ 9,037 $ 11,352 $ 3,270 $ 6,448 $ 1,277 $ 3,177 $ 457 $ 48,212 Loans: Loans individually evaluated for impairment $ 35,776 $ 1,315 $ 4,551 $ 5,420 $ 3,026 $ 1,409 $ 2,930 $ 213 $ — $ 54,640 Loans collectively evaluated for impairment 867,060 1,278,013 1,444,518 1,838,783 470,355 990,433 207,053 438,576 17,047 7,551,838 Total non-acquired loans $ 902,836 $ 1,279,328 $ 1,449,069 $ 1,844,203 $ 473,381 $ 991,842 $ 209,983 $ 438,789 $ 17,047 $ 7,606,478 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 Nine Months Ended September 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Charge-offs (78) (3) (43) (95) (115) (141) (31) (4,035) — (4,541) Recoveries 833 47 84 181 220 286 87 723 — 2,461 Provision (benefit) (421) 1,753 559 548 (348) (38) (143) 3,954 (41) 5,823 Balance, September 30, 2019 $ 6,016 $ 10,551 $ 9,969 $ 12,547 $ 3,191 $ 7,561 $ 1,359 $ 3,743 $ — $ 54,937 Nine Months Ended September 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Charge-offs (35) — (659) (80) (111) (178) — (3,237) — (4,300) Recoveries 1,167 6 76 169 139 241 14 596 — 2,408 Provision (benefit) (1,040) 1,454 1,532 1,623 163 1,372 21 3,036 152 8,313 Balance, September 30, 2018 $ 6,013 $ 7,985 $ 9,077 $ 11,380 $ 3,441 $ 6,923 $ 1,410 $ 3,183 $ 457 $ 49,869 |
Schedule of credit risk profile by risk grade of loans | Total Non-acquired Loans September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Pass $ 8,808,623 $ 7,813,938 $ 7,487,440 Special mention 66,929 66,645 71,106 Substandard 52,960 52,703 47,932 Doubtful — — — $ 8,928,512 $ 7,933,286 $ 7,606,478 |
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 September 30, 2019 Commercial real estate: Construction and land development $ 194 $ 17 $ 323 $ 534 $ 954,784 $ 955,318 Commercial non-owner occupied 173 — 299 472 1,776,855 1,777,327 Commercial owner occupied 2,914 1,662 2,776 7,352 1,670,343 1,677,695 Consumer real estate: Consumer owner occupied 1,610 569 2,271 4,450 2,113,677 2,118,127 Home equity loans 478 368 183 1,029 520,715 521,744 Commercial and industrial 1,219 480 1,525 3,224 1,127,623 1,130,847 Other income producing property 115 182 52 349 220,608 220,957 Consumer 793 205 806 1,804 523,236 525,040 Other loans — — — — 1,457 1,457 $ 7,496 $ 3,483 $ 8,235 $ 19,214 $ 8,909,298 $ 8,928,512 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 September 30, 2018 Commercial real estate: Construction and land development $ 535 $ 537 $ 77 $ 1,149 $ 901,687 $ 902,836 Commercial non-owner occupied 466 — 676 1,142 1,278,186 1,279,328 Commercial owner occupied 2,562 1,249 871 4,682 1,444,387 1,449,069 Consumer real estate: Consumer owner occupied 866 264 920 2,050 1,842,153 1,844,203 Home equity loans 1,667 296 749 2,712 470,669 473,381 Commercial and industrial 716 297 905 1,918 989,924 991,842 Other income producing property 1,163 — 249 1,412 208,571 209,983 Consumer 702 171 686 1,559 437,230 438,789 Other loans — — — — 17,047 17,047 $ 8,677 $ 2,814 $ 5,133 $ 16,624 $ 7,589,854 $ 7,606,478 |
Non-acquired loans | Consumer | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Consumer Owner Occupied Home Equity Consumer September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 2,091,129 $ 1,909,427 $ 1,816,735 $ 510,508 $ 481,607 $ 460,720 $ 522,674 $ 446,823 $ 437,043 Special mention 9,054 11,304 11,614 5,373 7,293 6,037 421 437 517 Substandard 17,944 15,534 15,854 5,863 6,248 6,624 1,945 1,404 1,229 Doubtful — — — — — — — — — $ 2,118,127 $ 1,936,265 $ 1,844,203 $ 521,744 $ 495,148 $ 473,381 $ 525,040 $ 448,664 $ 438,789 Other Consumer Total September 30, 2019 December 31, 2018 September 30, 2018 September 30, 2019 December 31, 2018 September 30, 2018 Pass $ 1,457 $ 9,357 $ 17,047 $ 3,125,768 $ 2,847,214 $ 2,731,545 Special mention — — — 14,848 19,034 18,168 Substandard — — — 25,752 23,186 23,707 Doubtful — — — — — — $ 1,457 $ 9,357 $ 17,047 $ 3,166,368 $ 2,889,434 $ 2,773,420 |
Non-acquired loans | Commercial loans | |
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 September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 947,230 $ 832,612 $ 889,818 $ 1,768,013 $ 1,407,744 $ 1,270,557 $ 1,648,456 $ 1,480,267 $ 1,421,090 Special mention 5,601 6,015 9,906 7,091 6,427 7,027 17,319 24,576 18,337 Substandard 2,487 2,818 3,112 2,223 1,380 1,744 11,920 12,708 9,642 Doubtful — — — — — — — — — $ 955,318 $ 841,445 $ 902,836 $ 1,777,327 $ 1,415,551 $ 1,279,328 $ 1,677,695 $ 1,517,551 $ 1,449,069 Commercial & Industrial Other Income Producing Property Commercial Total September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 1,103,532 $ 1,037,915 $ 970,586 $ 215,624 $ 208,186 $ 203,844 $ 5,682,855 $ 4,966,724 $ 4,755,895 Special mention 18,148 5,887 12,997 3,922 4,706 4,671 52,081 47,611 52,938 Substandard 9,167 11,150 8,259 1,411 1,461 1,468 27,208 29,517 24,225 Doubtful — — — — — — — — — $ 1,130,847 $ 1,054,952 $ 991,842 $ 220,957 $ 214,353 $ 209,983 $ 5,762,144 $ 5,043,852 $ 4,833,058 |
Acquired credit impaired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Acquired credit impaired loans: Commercial real estate $ 149,134 $ 196,764 $ 209,518 Commercial real estate—construction and development 26,930 32,942 34,312 Residential real estate 175,044 207,482 218,019 Consumer 36,812 42,492 44,081 Commercial and industrial 8,112 10,043 10,671 Acquired credit impaired loans 396,032 489,723 516,601 Less allowance for loan losses (5,318) (4,604) (3,968) Acquired credit impaired loans, net $ 390,714 $ 485,119 $ 512,633 |
Schedule of contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Contractual principal and interest $ 496,141 $ 626,691 $ 666,040 Non-accretable difference (15,292) (24,818) (38,422) Cash flows expected to be collected 480,849 601,873 627,618 Accretable yield (90,135) (116,754) (114,985) Carrying value $ 390,714 $ 485,119 $ 512,633 |
Schedule of refined accretable yield balance | Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 116,754 $ 133,096 Park Sterling Corporation ("Park Sterling") acquisition Day 1 adjustment — (1,460) Contractual interest income (20,515) (25,278) Accretion on acquired credit impaired loans (14,978) (13,905) Reclass of nonaccretable difference due to improvement in expected cash flows 9,009 22,803 Other changes, net (135) (271) Balance at end of period $ 90,135 $ 114,985 |
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 Total Three Months Ended September 30, 2019 Allowance for loan losses: Balance, June 30, 2019 $ 1,009 $ 798 $ 2,346 $ 470 $ — $ 4,623 Provision (benefit) for loan losses 386 (38) 447 (9) — 786 Reduction due to loan removals — — (91) — — (91) Balance, September 30, 2019 $ 1,395 $ 760 $ 2,702 $ 461 $ — $ 5,318 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 1,395 $ 760 $ 2,702 $ 461 $ — $ 5,318 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 149,134 26,930 175,044 36,812 8,112 396,032 Total acquired credit impaired loans $ 149,134 $ 26,930 $ 175,044 $ 36,812 $ 8,112 $ 396,032 Three Months Ended September 30, 2018 Allowance for loan losses: Balance , June 30, 2018 $ 636 $ 576 $ 2,514 $ 572 $ 128 $ 4,426 Provision (benefit) for loan losses 62 (205) (87) (26) (28) (284) Reduction due to loan removals (6) (31) (116) — (21) (174) Balance, September 30, 2018 $ 692 $ 340 $ 2,311 $ 546 $ 79 $ 3,968 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 692 $ 340 $ 2,311 $ 546 $ 79 $ 3,968 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 209,518 34,312 218,019 44,081 10,671 516,601 Total acquired credit impaired loans $ 209,518 $ 34,312 $ 218,019 $ 44,081 $ 10,671 $ 516,601 Commercial Real Estate- Commercial Construction and Residential Commercial (Dollars in thousands) Real Estate Development Real Estate Consumer and Industrial Total Nine Months Ended September 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Provision (benefit) for loan losses 599 43 742 (300) (34) 1,050 Reduction due to loan removals (5) — (286) — (45) (336) Balance, September 30, 2019 $ 1,395 $ 760 $ 2,702 $ 461 $ — $ 5,318 Nine Months Ended September 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Provision (benefit) for loan losses 423 273 (894) 88 511 401 Reduction due to loan removals (19) (113) (348) (3) (577) (1,060) Balance, September 30, 2018 $ 692 $ 340 $ 2,311 $ 546 $ 79 $ 3,968 *— 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 September 30, December 31, September 30, September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 Pass $ 121,264 $ 160,788 $ 164,435 $ 18,978 $ 20,293 $ 20,796 Special mention 9,064 14,393 22,629 3,018 3,001 3,165 Substandard 18,806 21,583 22,454 4,934 9,648 10,351 Doubtful — — — — — — $ 149,134 $ 196,764 $ 209,518 $ 26,930 $ 32,942 $ 34,312 Residential Real Estate Consumer Commercial & Industrial September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 88,131 $ 104,181 $ 109,004 $ 4,696 $ 5,751 $ 5,927 $ 5,703 $ 5,093 $ 5,514 Special mention 36,901 41,964 42,834 12,723 14,484 14,795 471 546 584 Substandard 50,012 61,337 66,181 19,393 22,257 23,359 1,938 4,404 4,573 Doubtful — — — — — — — — — $ 175,044 $ 207,482 $ 218,019 $ 36,812 $ 42,492 $ 44,081 $ 8,112 $ 10,043 $ 10,671 Total Acquired Credit Impaired Loans September 30, December 31, September 30, 2019 2018 2018 Pass $ 238,772 $ 296,106 $ 305,676 Special mention 62,177 74,388 84,007 Substandard 95,083 119,229 126,918 Doubtful — — — $ 396,032 $ 489,723 $ 516,601 |
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 September 30, 2019 Commercial real estate $ 444 $ 252 $ 2,671 $ 3,367 $ 145,767 $ 149,134 Commercial real estate—construction and development 88 — 261 349 26,581 26,930 Residential real estate 2,317 1,143 5,016 8,476 166,568 175,044 Consumer 948 185 499 1,632 35,180 36,812 Commercial and industrial 282 — 77 359 7,753 8,112 $ 4,079 $ 1,580 $ 8,524 $ 14,183 $ 381,849 $ 396,032 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 September 30, 2018 Commercial real estate $ 1,517 $ 375 $ 5,608 $ 7,500 $ 202,018 $ 209,518 Commercial real estate—construction and development 768 309 2,905 3,982 30,330 34,312 Residential real estate 6,506 1,392 8,371 16,269 201,750 218,019 Consumer 671 168 891 1,730 42,351 44,081 Commercial and industrial 2,625 83 88 2,796 7,875 10,671 $ 12,087 $ 2,327 $ 17,863 $ 32,277 $ 484,324 $ 516,601 |
Non acquired non-accrual loans | |
Loans and Allowance for Loan Losses | |
Summary of information pertaining to nonaccrual loans by class | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Commercial non-owner occupied real estate: Construction and land development $ 412 $ 424 $ 404 Commercial non-owner occupied 457 831 1,110 Total commercial non-owner occupied real estate 869 1,255 1,514 Consumer real estate: Consumer owner occupied 7,374 7,109 6,406 Home equity loans 1,273 2,333 2,623 Total consumer real estate 8,647 9,442 9,029 Commercial owner occupied real estate 4,062 1,068 1,063 Commercial and industrial 2,565 647 957 Other income producing property 628 500 474 Consumer 1,539 1,267 1,177 Restructured loans 544 648 1,065 Total loans on nonaccrual status $ 18,854 $ 14,827 $ 15,279 |
Acquired non-credit impaired loans | |
Loans and Allowance for Loan Losses | |
Summary of loans | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Acquired non-credit impaired loans: Commercial non-owner occupied real estate: Construction and land development $ 53,302 $ 165,070 $ 222,562 Commercial non-owner occupied 503,443 679,253 684,793 Total commercial non-owner occupied real estate 556,745 844,323 907,355 Consumer real estate: Consumer owner occupied 543,432 628,813 647,064 Home equity loans 198,112 242,425 259,558 Total consumer real estate 741,544 871,238 906,622 Commercial owner occupied real estate 345,040 421,841 455,803 Commercial and industrial 126,092 212,537 247,922 Other income producing property 103,093 133,110 150,371 Consumer 93,089 111,777 118,029 Acquired non-credit impaired loans $ 1,965,603 $ 2,594,826 $ 2,786,102 |
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 Total Three Months Ended September 30, 2019 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (39) — — — (23) (648) — (100) (810) Recoveries 1 — — 21 9 10 — 9 50 Provision (benefit) 38 — — (21) 14 638 — 91 760 Balance, September 30, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 53,302 503,443 345,040 543,432 198,112 126,092 103,093 93,089 1,965,603 Total acquired non-credit impaired loans $ 53,302 $ 503,443 $ 345,040 $ 543,432 $ 198,112 $ 126,092 $ 103,093 $ 93,089 $ 1,965,603 Three Months Ended September 30, 2018 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs — — — — (4) (30) — (63) (97) Recoveries 1 — — 1 6 5 — 14 27 Provision (benefit) (1) — — (1) (2) 25 — 49 70 Balance, September 30, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 222,562 684,793 455,803 647,064 259,558 247,922 150,371 118,029 2,786,102 Total acquired non-credit impaired loans $ 222,562 $ 684,793 $ 455,803 $ 647,064 $ 259,558 $ 247,922 $ 150,371 $ 118,029 $ 2,786,102 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 Total Nine Months Ended September 30, 2019 Allowance for loan losses: Balance, December 31, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (45) — (786) (6) (263) (1,288) (26) (305) (2,719) Recoveries 3 — — 26 55 181 71 36 372 Provision (benefit) 42 — 786 (20) 208 1,107 (45) 269 2,347 Balance, September 30, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ — Nine Months Ended September 30, 2018 Allowance for loan losses: Balance, December 31, 2017 $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (106) — (28) (70) (244) (838) — (328) (1,614) Recoveries 8 — — 63 85 60 — 63 279 Provision (benefit) 98 — 28 7 159 778 — 265 1,335 Balance, September 30, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — |
Schedule of credit risk profile by risk grade of loans | Total Acquired Non-credit Impaired Loans September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Pass $ 1,897,922 $ 2,523,010 $ 2,716,956 Special mention 31,970 48,716 52,428 Substandard 35,711 23,100 16,718 Doubtful — — — $ 1,965,603 $ 2,594,826 $ 2,786,102 |
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 September 30, 2019 Commercial real estate: Construction and land development $ 323 $ — $ 162 $ 485 $ 52,817 $ 53,302 Commercial non-owner occupied 697 — 255 952 502,491 503,443 Commercial owner occupied 2,401 168 723 3,292 341,748 345,040 Consumer real estate: Consumer owner occupied 953 163 327 1,443 541,989 543,432 Home equity loans 653 201 1,137 1,991 196,121 198,112 Commercial and industrial 857 32 321 1,210 124,882 126,092 Other income producing property 1,008 293 85 1,386 101,707 103,093 Consumer 881 134 506 1,521 91,568 93,089 $ 7,773 $ 991 $ 3,516 $ 12,280 $ 1,953,323 $ 1,965,603 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 $ 8,456 $ 2,750 $ 4,326 $ 15,532 $ 2,579,294 $ 2,594,826 September 30, 2018 Commercial real estate: Construction and land development $ 6 $ 199 $ 373 $ 578 $ 221,984 $ 222,562 Commercial non-owner occupied 3,931 48 — 3,979 680,814 684,793 Commercial owner occupied 564 198 711 1,473 454,330 455,803 Consumer real estate: Consumer owner occupied 552 405 575 1,532 645,532 647,064 Home equity loans 1,295 527 2,421 4,243 255,315 259,558 Commercial and industrial 116 589 264 969 246,953 247,922 Other income producing property 804 343 129 1,276 149,095 150,371 Consumer 541 298 465 1,304 116,725 118,029 $ 7,809 $ 2,607 $ 4,938 $ 15,354 $ 2,770,748 $ 2,786,102 |
Summary of information pertaining to nonaccrual loans by class | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Commercial non-owner occupied real estate: Construction and land development $ 1,031 $ 252 $ 402 Commercial non-owner occupied 266 283 — Total commercial non-owner occupied real estate 1,297 535 402 Consumer real estate: Consumer owner occupied 1,739 3,864 2,408 Home equity loans 3,034 4,512 4,901 Total consumer real estate 4,773 8,376 7,309 Commercial owner occupied real estate 933 1,470 904 Commercial and industrial 692 1,296 354 Other income producing property 270 244 249 Consumer 1,631 1,568 1,580 Total loans on nonaccrual status $ 9,596 $ 13,489 $ 10,798 |
Acquired non-credit impaired loans | Commercial loans | |
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 September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 51,340 $ 163,777 $ 221,034 $ 492,258 $ 665,913 $ 670,176 $ 330,005 $ 411,783 $ 447,877 Special mention 736 838 921 5,035 13,018 14,612 3,427 5,664 6,933 Substandard 1,226 455 607 6,150 322 5 11,608 4,394 993 Doubtful — — — — — — — — — $ 53,302 $ 165,070 $ 222,562 $ 503,443 $ 679,253 $ 684,793 $ 345,040 $ 421,841 $ 455,803 Other Income Producing Commercial & Industrial Property Commercial Total September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 120,926 $ 202,399 $ 239,906 $ 95,611 $ 125,399 $ 143,349 $ 1,090,140 $ 1,569,271 $ 1,722,342 Special mention 4,051 6,523 7,634 5,937 6,419 6,208 19,186 32,462 36,308 Substandard 1,115 3,615 382 1,545 1,292 814 21,644 10,078 2,801 Doubtful — — — — — — — — — $ 126,092 $ 212,537 $ 247,922 $ 103,093 $ 133,110 $ 150,371 $ 1,130,970 $ 1,611,811 $ 1,761,451 |
Acquired non-credit impaired loans | Consumer | |
Loans and Allowance for Loan Losses | |
Schedule of credit risk profile by risk grade of loans | Consumer Owner Occupied Home Equity Consumer September 30, December 31, September 30, September 30, December 31, September 30, September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 532,760 $ 617,391 $ 635,443 $ 184,946 $ 227,515 $ 244,017 $ 90,076 $ 108,833 $ 115,154 Special mention 6,805 7,868 7,412 5,405 7,688 8,089 574 698 619 Substandard 3,867 3,554 4,209 7,761 7,222 7,452 2,439 2,246 2,256 Doubtful — — — — — — — — — $ 543,432 $ 628,813 $ 647,064 $ 198,112 $ 242,425 $ 259,558 $ 93,089 $ 111,777 $ 118,029 Consumer Total September 30, December 31, September 30, 2019 2018 2018 Pass $ 807,782 $ 953,739 $ 994,614 Special mention 12,784 16,254 16,120 Substandard 14,067 13,022 13,917 Doubtful — — — $ 834,633 $ 983,015 $ 1,024,651 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Real Estate Owned | |
Schedule of information pertaining to OREO | Nine Months Ended September 30, (Dollars in thousands) 2019 2018 Beginning balance $ 11,410 $ 11,203 Acquired in the Park Sterling acquisition — 210 Additions 9,610 11,976 Writedowns (727) (1,185) Sold (6,878) (10,085) Ending Balance $ 13,415 $ 12,119 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Schedule of information pertaining to operating leases | Three Months Ended Nine Months Ended (Dollars in thousands) September 30, September 30, 2019 2019 Lease Expense Components: Operating lease expense $ 2,241 $ 6,560 Short-term lease expense 120 396 Variable lease expense 151 337 Total lease expense $ 2,512 $ 7,293 Supplemental Cash Flow and Other Information Related to Leases: Cash paid for amounts included in the measurement of lease liabilities - operating leases $ 1,996 $ 5,804 Initial ROU assets recorded in exchange for new lease liabilities - operating leases $ 5,289 $ 10,239 Weighted - average remaining lease term (years) - operating leases 14.30 Weighted - average discount rate - operating leases 3.9% September 30, 2019 Supplemental Balance Sheet Information Related to Leases Operating lease ROU assets (premises and equipment) $ 89,905 Operating lease liabilities (other liabilities) $ 91,039 Maturity Analysis of Lease Liabilities: Year Ending December 31, 2019 (excluding the nine months ended September 30, 2019) $ 2,279 2020 7,887 2021 8,359 2022 8,475 2023 8,548 Thereafter 85,009 Total 120,557 Less: Imputed Interest (29,518) Lease Liability $ 91,039 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Deposits | |
Schedule of total deposits | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Certificates of deposit $ 1,709,175 $ 1,775,095 $ 1,820,122 Interest-bearing demand deposits 5,682,129 5,407,175 5,195,871 Non-interest bearing demand deposits 3,307,532 3,061,769 3,157,478 Savings deposits 1,317,705 1,399,815 1,433,724 Other time deposits 7,246 3,079 6,680 Total deposits $ 12,023,787 $ 11,646,933 $ 11,613,875 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended Nine Months Ended September 30, September 30, (Dollars and shares in thousands, except for per share amounts) 2019 2018 2019 2018 Basic earnings per common share: Net income $ 51,565 $ 47,082 $ 137,392 $ 129,867 Weighted-average basic common shares 34,057 36,645 34,859 36,657 Basic earnings per common share $ 1.51 $ 1.28 $ 3.94 $ 3.53 Diluted earnings per share: Net income $ 51,565 $ 47,082 $ 137,392 $ 129,867 Weighted-average basic common shares 34,057 36,645 34,859 36,657 Effect of dilutive securities 243 248 210 252 Weighted-average dilutive shares 34,300 36,893 35,069 36,909 Diluted earnings per common share $ 1.50 $ 1.28 $ 3.92 $ 3.52 |
Schedule of anti-dilutive securities excluded from computation of diluted earnings per common share | Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2019 2018 2019 2018 Number of shares 62,235 62,235 63,313 62,235 Range of exercise prices $ 87.30 to $ 91.35 $ 87.30 to $ 91.35 $ 69.48 to $ 91.35 $ 87.30 to $ 91.35 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-Based Compensation | |
Schedule of stock option activity | Weighted Weighted Average Aggregate Average Remaining Intrinsic Shares Price (Yrs.) (000's) Outstanding at January 1, 2019 213,866 $ 61.28 Granted — — Exercised (36,978) 33.26 Outstanding at September 30, 2019 176,888 67.14 5.60 $ 2,428 Exercisable at September 30, 2019 131,216 60.12 4.86 $ 2,354 Weighted-average fair value of options granted during the year $0.00 |
Schedule of weighted-average assumptions used in valuing options | Nine months ended September 30, 2019 2018 Dividend yield — % 1.46 % Expected life — years 8.5 years Expected volatility — % 28.0 % Risk-free interest rate — % 2.54 % |
Summary of nonvested restricted stock | Nonvested restricted stock for the nine months ended September 30, 2019 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, 2019 104,419 $ 62.45 Granted 8,934 73.34 Vested (33,509) 73.78 Forfeited (2,332) 73.89 Nonvested at September 30, 2019 77,512 58.47 |
Summary of nonvested RSUs | Nonvested RSUs for the nine months ended September 30, 2019 is summarized in the following table. Weighted- Average Grant-Date Restricted Stock Units Shares Fair Value Nonvested at January 1, 2019 200,540 $ 85.10 Granted 153,060 67.86 Forfeited (2,154) 87.36 Nonvested at September 30, 2019 351,446 77.58 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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) September 30, 2019: Assets Derivative financial instruments $ 24,402 $ — $ 24,402 $ — Loans held for sale 87,393 — 87,393 — Securities available for sale: Government-sponsored entities debt 40,967 — 40,967 — State and municipal obligations 188,682 — 188,682 — Mortgage-backed securities 1,583,485 — 1,583,485 — Total securities available for sale 1,813,134 — 1,813,134 — Mortgage servicing rights 28,674 — — 28,674 $ 1,953,603 $ — $ 1,924,929 $ 28,674 Liabilities Derivative financial instruments $ 43,373 $ — $ 43,373 $ — 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 — 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 $ — September 30, 2018: Assets Derivative financial instruments $ 10,015 $ — $ 10,015 $ — Loans held for sale 33,752 — 33,752 — Securities available for sale: Government-sponsored entities debt 52,545 — 52,545 — State and municipal obligations 206,224 — 206,224 — Mortgage-backed securities 1,292,512 — 1,292,512 — Total securities available for sale 1,551,281 — 1,551,281 — Mortgage servicing rights 36,056 — — 36,056 $ 1,631,104 $ — $ 1,595,048 $ 36,056 Liabilities Derivative financial instruments $ 10,035 $ — $ 10,035 $ — |
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, 2019 $ 34,727 $ — Servicing assets that resulted from transfers of financial assets 4,506 — Changes in fair value due to valuation inputs or assumptions (7,218) — Changes in fair value due to decay (3,341) — Fair value , September 30, 2019 $ 28,674 $ — Fair value, January 1, 2018 $ 31,119 $ — Servicing assets that resulted from transfers of financial assets 4,580 — Changes in fair value due to valuation inputs or assumptions 3,628 — Changes in fair value due to decay (3,271) — Fair value, September 30, 2018 $ 36,056 $ — |
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) September 30, 2019: OREO $ 13,415 $ — $ — $ 13,415 Non-acquired impaired loans 10,620 — — 10,620 December 31, 2018: OREO $ 11,410 $ — $ — $ 11,410 Non-acquired impaired loans 13,164 — — 13,164 September 30, 2018: OREO $ 12,119 $ — $ — $ 12,119 Non-acquired impaired loans 6,990 — — 6,990 |
Quantitative Information about Level 3 Fair Value Measurements | Weighted Average September 30, December 31, September 30, Valuation Technique Unobservable Input 2019 2018 2018 Nonrecurring measurements: Non-acquired impaired loans Discounted appraisals Collateral discounts 2 % 3 % 3 % OREO Discounted appraisals Collateral discounts and estimated costs to sell 25 % 23 % 24 % |
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 September 30, 2019 Financial assets: Cash and cash equivalents $ 719,194 $ 719,194 $ 719,194 $ — $ — Investment securities 1,862,258 1,862,258 49,124 1,813,134 — Loans held for sale 87,393 87,393 — 87,393 — Loans, net of allowance for loan losses 11,229,892 11,259,351 — — 11,259,351 Accrued interest receivable 36,131 36,131 — 7,528 28,603 Mortgage servicing rights 28,674 28,674 — — 28,674 Interest rate swap - non-designated hedge 21,700 21,700 — 21,700 — Other derivative financial instruments (mortgage banking related) 2,702 2,702 — 2,702 — Financial liabilities: Deposits 12,023,787 11,302,479 — 11,302,479 — Federal funds purchased and securities sold under agreements to repurchase 269,072 269,072 — 269,072 — Other borrowings 815,771 818,294 — 818,294 — Accrued interest payable 5,036 5,036 — 5,036 — Interest rate swap - non-designated hedge 23,723 23,723 — 23,723 — Interest rate swap - cash flow hedge 19,564 19,564 — 19,564 — Other derivative financial instruments (mortgage banking related) 86 86 — 86 — Off balance sheet financial instruments: Commitments to extend credit — 7,622 — 7,622 — 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 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) — September 30, 2018 Financial assets: Cash and cash equivalents $ 307,309 $ 307,309 $ 307,309 $ — $ — Investment securities 1,571,010 1,571,010 19,229 1,551,781 — Loans held for sale 33,752 33,752 — 33,752 — Loans, net of allowance for loan losses 10,855,344 10,640,774 — — 10,640,774 Accrued interest receivable 34,808 34,808 — 6,419 28,389 Mortgage servicing rights 36,056 36,056 — — 36,056 Interest rate swap - non-designated hedge 9,268 9,268 — 9,268 — Other derivative financial instruments (mortgage banking related) 747 747 — 747 — Financial liabilities: Deposits 11,613,875 10,617,021 — 10,617,021 — Federal funds purchased and securities sold under agreements to repurchase 279,698 279,698 — 279,698 — Other borrowings 115,919 119,017 — 119,017 — Accrued interest payable 4,279 4,279 — 4,279 — Interest rate swap - cash flow hedge 82 82 — 82 — Interest rate swap - non-designated hedge 9,460 9,460 — 9,460 — Other derivative financial instruments (mortgage banking related) 493 493 — 493 — Off balance sheet financial instruments: Commitments to extend credit — (56,732) — (56,732) — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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 Three Months Ended September 30, 2019 Balance at June 30, 2019 $ (297) $ 12,944 $ (11,181) $ 1,466 Other comprehensive gain (loss) before reclassifications — 5,824 (3,891) 1,933 Amounts reclassified from accumulated other comprehensive loss — (341) (188) (529) Net comprehensive income (loss) — 5,483 (4,079) 1,404 Balance at September 30, 2019 $ (297) $ 18,427 $ (15,260) $ 2,870 Three Months Ended September 30, 2018 Balance at June 30, 2018 $ (7,456) $ (28,526) $ (89) $ (36,071) Other comprehensive loss before reclassifications — (8,624) (1) (8,625) Amounts reclassified from accumulated other comprehensive income 151 9 27 187 Net comprehensive income (loss) 151 (8,615) 26 (8,438) Balance at September 30, 2018 $ (7,305) $ (37,141) $ (63) $ (44,509) Nine Months Ended September 30, 2019 Balance at December 31, 2018 $ (6,450) $ (18,394) $ (37) $ (24,881) Other comprehensive income (loss) before reclassifications — 34,732 (14,766) 19,966 Amounts reclassified from accumulated other comprehensive income (loss) 6,153 2,089 (457) 7,785 Net comprehensive income (loss) 6,153 36,821 (15,223) 27,751 Balance at September 30, 2019 $ (297) $ 18,427 $ (15,260) $ 2,870 Nine Months Ended September 30, 2018 Balance at December 31, 2017 $ (5,998) $ (4,278) $ (151) $ (10,427) Other comprehensive income (loss) before reclassifications — (32,224) 34 (32,190) Amounts reclassified from accumulated other comprehensive income 453 508 94 1,055 Net comprehensive income (loss) 453 (31,716) 128 (31,135) AOCI reclassification to retained earnings from the adoption of ASU 2018-02 (1,760) (1,147) (40) (2,947) Balance at September 30, 2018 $ (7,305) $ (37,141) $ (63) $ (44,509) |
Schedule of reclassifications out of accumulated other comprehensive income (loss), net of tax | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) For the Three Months Ended September 30, For the Nine Months Ended September 30, Accumulated Other Comprehensive Income (Loss) Component 2019 2018 2019 2018 Income Statement Gains (losses) on cash flow hedges: Interest rate contracts $ (241) $ 35 $ (585) $ 121 Interest expense 53 (8) 128 (27) Provision for income taxes (188) 27 (457) 94 Net income (Gains) losses on sales of available for sale securities: $ (437) $ 11 $ 2,679 $ 652 Securities gains (losses), net 96 (2) (590) (144) Provision for income taxes (341) 9 2,089 508 Net income Losses and amortization of defined benefit pension: Actuarial losses $ — $ 194 $ 7,888 $ 581 Salaries and employee benefits — (43) (1,735) (128) Provision for income taxes — 151 6,153 453 Net income Total reclassifications for the period $ (529) $ 187 $ 7,785 $ 1,055 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Financial Instruments | |
Derivative financial instruments summary | September 30, 2019 September 30, 2018 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 on Junior Subordinated Debt: Pay fixed rate swap with counterparty Other Liabilities $ — $ — $ — $ 8,000 $ — $ 82 Cash flow hedges of interest rate risk on FHLB Advances: Pay fixed rate swap with counterparty Other Liabilities $ 700,000 $ — $ 19,564 $ — $ — $ — Fair value hedge of interest rate risk: Pay fixed rate swap with counterparty Other Assets and Other Liabilities $ 2,769 $ — $ 260 $ 2,824 $ 33 $ — Not designated hedges of interest rate risk: Customer related interest rate contracts: Matched interest rate swaps with borrowers Other Assets and Other Liabilities $ 509,395 $ 21,700 $ 63 $ 342,166 $ 193 $ 9,460 Matched interest rate swaps with counterparty Other Assets and Other Liabilities $ 509,395 $ — $ 23,400 $ 342,166 $ 9,042 $ — Not designated hedges of interest rate risk - mortgage banking activities: Contracts used to hedge mortgage servicing rights Other Liabilities $ 134,000 $ — $ 86 $ 63,500 $ — $ 493 Forward sales commitments used to hedge mortgage pipeline Other Assets $ 145,625 $ 2,702 $ — $ 83,068 $ 747 $ — Total derivatives $ 2,001,184 $ 24,402 $ 43,373 $ 841,724 $ 10,015 $ 10,035 |
Schedule of notional value of forward sale commitments and the fair value of those obligations along with the fair value of the mortgage pipeline | (Dollars in thousands) September 30, 2019 December 31, 2018 September 30, 2018 Mortgage loan pipeline $ 148,749 $ 50,442 $ 74,898 Expected closures 111,561 37,832 56,174 Fair value of mortgage loan pipeline commitments 2,071 705 392 Forward sales commitments 145,625 54,533 83,068 Fair value of forward commitments 631 (621) 355 |
Capital Ratios (Tables)
Capital Ratios (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Capital Ratios | |
Schedule of actual and required capital ratios | 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 September 30, 2019 Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,302,034 11.22 % $ 812,276 7.00 % $ 812,276 7.00 % $ 754,257 6.50 % South State Bank (the Bank) 1,392,599 12.00 % 812,284 7.00 % 812,284 7.00 % 754,263 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,414,138 12.19 % 986,336 8.50 % 986,336 8.50 % 928,316 8.00 % South State Bank (the Bank) 1,392,599 12.00 % 986,345 8.50 % 986,345 8.50 % 928,324 8.00 % Total capital to risk-weighted assets: Consolidated 1,474,728 12.71 % 1,218,415 10.50 % 1,218,415 10.50 % 1,160,395 10.00 % South State Bank (the Bank) 1,453,189 12.52 % 1,218,426 10.50 % 1,218,426 10.50 % 1,160,405 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,414,138 9.72 % 581,786 4.00 % 581,786 4.00 % 727,232 5.00 % South State Bank (the Bank) 1,392,599 9.58 % 581,648 4.00 % 581,648 4.00 % 727,060 5.00 % 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 % September 30, 2018: Common equity Tier 1 to risk-weighted assets: Consolidated $ 1,356,267 12.30 % $ 702,980 6.38 % $ 771,899 7.00 % $ 716,764 6.50 % South State Bank (the Bank) 1,449,326 13.14 % 703,049 6.38 % 771,975 7.00 % 716,834 6.50 % Tier 1 capital to risk-weighted assets: Consolidated 1,467,703 13.31 % 868,387 7.88 % 937,306 8.50 % 882,170 8.00 % South State Bank (the Bank) 1,449,326 13.14 % 868,472 7.88 % 937,399 8.50 % 882,258 8.00 % Total capital to risk-weighted assets: Consolidated 1,521,875 13.80 % 1,088,929 9.88 % 1,157,849 10.50 % 1,102,713 10.00 % South State Bank (the Bank) 1,503,498 13.63 % 1,089,037 9.88 % 1,157,963 10.50 % 1,102,822 10.00 % Tier 1 capital to average assets (leverage ratio): Consolidated 1,467,703 10.82 % 542,720 4.00 % 542,720 4.00 % 678,401 5.00 % South State Bank (the Bank) 1,449,326 10.68 % 542,575 4.00 % 542,575 4.00 % 678,219 5.00 % |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Other Intangible Assets | |
Summary of gross carrying amounts and accumulated amortization of other intangible assets | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Gross carrying amount $ 119,501 $ 121,736 $ 121,736 Accumulated amortization (66,418) (58,836) (55,299) $ 53,083 $ 62,900 $ 66,437 |
Schedule of estimated amortization expense for other intangibles for each of the next five quarters | (Dollars in thousands) Quarter ending: December 31, 2019 $ 3,267 March 31, 2020 3,007 June 30, 2020 2,995 September 30, 2020 2,945 December 31, 2020 2,921 Thereafter 37,948 $ 53,083 |
Loan Servicing, Mortgage Orig_2
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loan Servicing, Mortgage Origination, and Loans Held for Sale | |
Summary of changes in the fair value of MSRs and its offsetting hedge | Three Months Ended Nine Months Ended (Dollars in thousands) September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Increase (decrease) in fair value of MSRs $ (2,294) $ 683 $ (7,218) $ 3,628 Decay of MSRs (1,312) (1,201) (3,341) (3,271) Gain (loss) related to derivatives 1,476 (559) 5,415 (2,452) Net effect on statements of income $ (2,130) $ (1,077) $ (5,144) $ (2,095) |
Schedule of characteristics and sensitivity analysis of the MSR | September 30, December 31, September 30, (Dollars in thousands) 2019 2018 2018 Composition of residential loans serviced for others Fixed-rate mortgage loans 99.8 % 99.8 % 99.8 % Adjustable-rate mortgage loans 0.2 % 0.2 % 0.2 % Total 100.0 % 100.0 % 100.0 % Weighted average life 6.10 years 7.88 years 8.67 years Constant Prepayment rate (CPR) 11.4 % 7.3 % 6.0 % Weighted average discount rate 9.4 % 9.4 % 9.4 % Effect on fair value due to change in interest rates 25 basis point increase $ 2,398 $ 1,504 $ 816 50 basis point increase 4,390 2,740 1,423 25 basis point decrease (2,862) (1,981) (1,261) 50 basis point decrease (5,999) (4,421) (2,892) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Jan. 01, 2019 | |
Summary of Significant Accounting Policies | ||
Renewal term | 24 years | |
Existence of option to extend | true | |
Right to use asset | $ 89,905 | |
Lease liabilities | $ 91,039 | |
Maximum | ||
Summary of Significant Accounting Policies | ||
Renewal term | 25 years | |
Adjustments | ASU 2016- 02 | ||
Summary of Significant Accounting Policies | ||
Right to use asset | $ 82,200 | |
Lease liabilities | $ 82,200 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Revenue from Contracts with Customers (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)contract | Sep. 30, 2018USD ($)contract | |
Summary of Significant Accounting Policies | ||||
Number of active contracts | contract | 729,000 | 806,000 | ||
Transferred at Point in Time | ||||
Summary of Significant Accounting Policies | ||||
Revenue from contract with customers | $ 26,600 | $ 24,500 | $ 76,300 | $ 85,200 |
Transferred over Time | ||||
Summary of Significant Accounting Policies | ||||
Revenue from contract with customers | 4,500 | 4,700 | 14,500 | 14,500 |
Trust and investment services income | ||||
Summary of Significant Accounting Policies | ||||
Revenue from contract with customers | 7,320 | 7,527 | 22,309 | 22,608 |
Deposit account services | ||||
Summary of Significant Accounting Policies | ||||
Revenue from contract with customers | $ 19,900 | $ 18,000 | $ 57,000 | $ 63,700 |
Recent Accounting and Regulat_2
Recent Accounting and Regulatory Pronouncements (Details) | Jan. 01, 2020USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($)loan | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2017USD ($) |
Right to use asset | $ 89,905,000 | $ 89,905,000 | |||||||||
Lease liabilities | 91,039,000 | 91,039,000 | |||||||||
Allowance for credit losses | 60,255,000 | $ 53,837,000 | 60,255,000 | $ 53,837,000 | $ 58,213,000 | $ 55,798,000 | $ 52,300,000 | $ 48,075,000 | |||
Increase in allowance for credit losses | (91,000) | $ (174,000) | $ (336,000) | $ (1,060,000) | |||||||
Software | |||||||||||
Capitalized implementation costs | $ 435,146 | ||||||||||
ASU 2018- 02 | Early adoption | |||||||||||
Reclassified to retained earnings from AOCI | $ 2,900,000 | ||||||||||
ASU 2016- 02 | Adjustments | |||||||||||
Right to use asset | $ 82,200,000 | ||||||||||
Lease liabilities | $ 82,200,000 | ||||||||||
Accounting Standards Update 2016-13 [Member] | |||||||||||
Number of loan segments | loan | 10 | 10 | |||||||||
Historical losses term | 10 years | ||||||||||
Accounting Standards Update 2016-13 [Member] | Minimum | Forecast | |||||||||||
Allowance for credit losses | $ 105,000,000 | ||||||||||
Increase in allowance for credit losses | 35,000,000 | ||||||||||
Accounting Standards Update 2016-13 [Member] | Maximum | Forecast | |||||||||||
Allowance for credit losses | 120,000,000 | ||||||||||
Increase in allowance for credit losses | $ 50,000,000 |
Investment Securities - Amortiz
Investment Securities - Amortized cost and fair value for held to maturity securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Investment securities held to maturity | |||
Amortized Cost | $ 500 | ||
Fair Value | $ 0 | $ 0 | 500 |
State and municipal obligations | |||
Investment securities held to maturity | |||
Amortized Cost | 500 | ||
Fair Value | $ 500 |
Investment Securities - Amort_2
Investment Securities - Amortized cost and fair value for available for sale securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Investment securities available for sale | |||||||
Amortized cost | $ 1,789,509,000 | $ 1,598,898,000 | $ 1,789,509,000 | $ 1,598,898,000 | $ 1,540,650,000 | ||
Gross Unrealized Gains | 26,156,000 | 1,229,000 | 26,156,000 | 1,229,000 | 2,427,000 | ||
Gross Unrealized Losses | (2,531,000) | (48,846,000) | (2,531,000) | (48,846,000) | (26,010,000) | ||
Fair Value | 1,813,134,000 | 1,551,281,000 | 1,813,134,000 | 1,551,281,000 | 1,517,067,000 | ||
Net realized gain | 437,000 | 2,700,000 | |||||
Net realized loss | 11,000 | 652,000 | |||||
Government-sponsored entities debt | |||||||
Investment securities available for sale | |||||||
Amortized cost | 40,322,000 | 54,397,000 | 40,322,000 | 54,397,000 | 48,982,000 | ||
Gross Unrealized Gains | 645,000 | 645,000 | 21,000 | ||||
Gross Unrealized Losses | (1,852,000) | (1,852,000) | (752,000) | ||||
Fair Value | 40,967,000 | 52,545,000 | 40,967,000 | 52,545,000 | 48,251,000 | ||
State and municipal obligations | |||||||
Investment securities available for sale | |||||||
Amortized cost | 183,005,000 | 207,723,000 | 183,005,000 | 207,723,000 | 200,184,000 | ||
Gross Unrealized Gains | 5,720,000 | 1,114,000 | 5,720,000 | 1,114,000 | 1,709,000 | ||
Gross Unrealized Losses | (43,000) | (2,613,000) | (43,000) | (2,613,000) | (1,125,000) | ||
Fair Value | 188,682,000 | 206,224,000 | 188,682,000 | 206,224,000 | 200,768,000 | ||
Mortgage-backed securities | |||||||
Investment securities available for sale | |||||||
Amortized cost | 1,566,182,000 | 1,336,778,000 | 1,566,182,000 | 1,336,778,000 | 1,291,484,000 | ||
Gross Unrealized Gains | 19,791,000 | 115,000 | 19,791,000 | 115,000 | 697,000 | ||
Gross Unrealized Losses | (2,488,000) | (44,381,000) | (2,488,000) | (44,381,000) | (24,133,000) | ||
Fair Value | 1,583,485,000 | 1,292,512,000 | 1,583,485,000 | 1,292,512,000 | 1,268,048,000 | ||
VISA Class B Shares | |||||||
Investment securities available for sale | |||||||
Net realized gain | $ 5,400,000 | $ 5,400,000 | |||||
Securities other than VISA Class B Share | |||||||
Investment securities available for sale | |||||||
Net realized loss | 2,700,000 | ||||||
Mortgage-backed securities issued by private label holdings | |||||||
Investment securities available for sale | |||||||
Fair Value | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Investment Securities - Amort_3
Investment Securities - Amortized cost and carrying value of other investment securities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Other investment securities | |||||
Carrying Value | $ 49,124,000 | $ 19,229,000 | $ 49,124,000 | $ 19,229,000 | $ 25,604,000 |
Amortized Cost | |||||
Due in one year or less | 6,012,000 | 6,012,000 | |||
Due after one year through five years | 71,916,000 | 71,916,000 | |||
Due after five years through ten years | 411,641,000 | 411,641,000 | |||
Due after ten years | 1,299,940,000 | 1,299,940,000 | |||
Fair Value | 1,789,509,000 | 1,598,898,000 | 1,789,509,000 | 1,598,898,000 | 1,540,650,000 |
Fair Value | |||||
Due in one year or less | 6,018,000 | 6,018,000 | |||
Due after one year through five years | 72,679,000 | 72,679,000 | |||
Due after five years through ten years | 418,641,000 | 418,641,000 | |||
Due after ten years | 1,315,796,000 | 1,315,796,000 | |||
Fair Value | 1,813,134,000 | 1,551,281,000 | 1,813,134,000 | 1,551,281,000 | 1,517,067,000 |
Information with respect to sales of available-for-sale securities | |||||
Sale proceeds | 231,990,000 | 67,853,000 | |||
Net realized gain | 437,000 | 2,700,000 | |||
Gross realized losses | (11,000) | (652,000) | |||
Amortized Cost | |||||
Total | 500,000 | 500,000 | |||
Fair Value | |||||
Fair Value | 0 | 500,000 | 0 | 500,000 | 0 |
Investment in Federal Home Loan Bank Stock | |||||
Other investment securities | |||||
Carrying Value | 43,044,000 | 13,149,000 | 43,044,000 | 13,149,000 | 19,524,000 |
Investment in unconsolidated subsidiaries | |||||
Other investment securities | |||||
Carrying Value | 3,563,000 | 3,563,000 | 3,563,000 | 3,563,000 | 3,563,000 |
Other nonmarketable investment securities | |||||
Other investment securities | |||||
Carrying Value | $ 2,517,000 | $ 2,517,000 | $ 2,517,000 | $ 2,517,000 | $ 2,517,000 |
Investment Securities - Securit
Investment Securities - Securities with gross unrealized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Securities Held to Maturity, Fair Value | |||
Less Than Twelve Months | $ 317,961 | $ 456,013 | $ 986,591 |
Twelve Months or More | 154,111 | 802,413 | 429,442 |
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 1,156 | 6,042 | 27,928 |
Twelve Months or More | 1,375 | 19,968 | 20,918 |
Government-sponsored entities debt | |||
Securities Held to Maturity, Fair Value | |||
Less Than Twelve Months | 10,571 | 20,253 | |
Twelve Months or More | 32,959 | 32,293 | |
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 100 | 538 | |
Twelve Months or More | 652 | 1,314 | |
State and municipal obligations | |||
Securities Held to Maturity, Fair Value | |||
Less Than Twelve Months | 5,275 | 40,387 | 89,908 |
Twelve Months or More | 14,231 | 8,104 | |
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 43 | 760 | 2,313 |
Twelve Months or More | 365 | 300 | |
Mortgage-backed securities | |||
Securities Held to Maturity, Fair Value | |||
Less Than Twelve Months | 312,686 | 405,055 | 876,430 |
Twelve Months or More | 154,111 | 755,223 | 389,045 |
Securities Available for Sale, Gross Unrealized Losses | |||
Less Than Twelve Months | 1,113 | 5,182 | 25,077 |
Twelve Months or More | $ 1,375 | $ 18,951 | $ 19,304 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Loans and Allowance for Loan Losses | ||||||
Loans, net | $ 11,229,892 | $ 10,962,037 | $ 10,855,344 | |||
Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 8,928,512 | 7,933,286 | 7,606,478 | |||
Less allowance for non-acquired loan losses | (54,937) | $ (53,590) | (51,194) | (49,869) | $ (47,874) | $ (43,448) |
Loans, net | 8,873,575 | 7,882,092 | 7,556,609 | |||
Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 396,032 | 489,723 | 516,601 | |||
Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,965,603 | 2,594,826 | 2,786,102 | |||
Residential real estate | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 175,044 | 207,482 | 218,019 | |||
Commercial non-owner occupied real estate | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,732,645 | 2,256,996 | 2,182,164 | |||
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 955,318 | 841,445 | 902,836 | |||
Less allowance for non-acquired loan losses | (6,016) | (5,718) | (5,682) | (6,013) | (6,187) | (5,921) |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,777,327 | 1,415,551 | 1,279,328 | |||
Less allowance for non-acquired loan losses | (10,551) | (10,311) | (8,754) | (7,985) | (7,209) | (6,525) |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 26,930 | 32,942 | 34,312 | |||
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 149,134 | 196,764 | 209,518 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 53,302 | 165,070 | 222,562 | |||
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 | 503,443 | 679,253 | 684,793 | |||
Commercial owner occupied real estate loan | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,677,695 | 1,517,551 | 1,449,069 | |||
Less allowance for non-acquired loan losses | (9,969) | (9,526) | (9,369) | (9,077) | (8,607) | (8,128) |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 345,040 | 421,841 | 455,803 | |||
Consumer loans | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,639,871 | 2,431,413 | 2,317,584 | |||
Consumer loans | Non-acquired loans | Home equity loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 521,744 | 495,148 | 473,381 | |||
Less allowance for non-acquired loan losses | (3,191) | (3,177) | (3,434) | (3,441) | (3,368) | (3,250) |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 2,118,127 | 1,936,265 | 1,844,203 | |||
Less allowance for non-acquired loan losses | (12,547) | (12,432) | (11,913) | (11,380) | (10,945) | (9,668) |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 198,112 | 242,425 | 259,558 | |||
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 543,432 | 628,813 | 647,064 | |||
Commercial and industrial | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 1,130,847 | 1,054,952 | 991,842 | |||
Less allowance for non-acquired loan losses | (7,561) | (7,495) | (7,454) | (6,923) | (6,711) | (5,488) |
Commercial and industrial | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 8,112 | 10,043 | 10,671 | |||
Commercial and industrial | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 126,092 | 212,537 | 247,922 | |||
Other income producing property | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 220,957 | 214,353 | 209,983 | |||
Less allowance for non-acquired loan losses | (1,359) | (1,359) | (1,446) | (1,410) | (1,413) | (1,375) |
Other income producing property | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 103,093 | 133,110 | 150,371 | |||
Consumer | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 525,040 | 448,664 | 438,789 | |||
Less allowance for non-acquired loan losses | (3,743) | $ (3,572) | (3,101) | (3,183) | (3,071) | (2,788) |
Consumer | Non-acquired loans | Consumer | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 525,040 | 448,664 | 438,789 | |||
Consumer | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 36,812 | 42,492 | 44,081 | |||
Consumer | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 93,089 | 111,777 | 118,029 | |||
Commercial loans | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | 5,762,144 | 5,043,852 | 4,833,058 | |||
Other loans | Non-acquired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Total loans | $ 1,457 | 9,357 | 17,047 | |||
Less allowance for non-acquired loan losses | $ (41) | $ (457) | $ (363) | $ (305) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Summary of acquired non credit impaired loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | $ 396,032 | $ 489,723 | $ 516,601 | |||
Less allowance for loan losses | (5,318) | $ (4,623) | (4,604) | (3,968) | $ (4,426) | $ (4,627) |
Acquired loans, net | 390,714 | 485,119 | 512,633 | 618,803 | ||
Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 1,965,603 | 2,594,826 | 2,786,102 | |||
Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 396,032 | 489,723 | 516,601 | |||
Less allowance for loan losses | (5,318) | (4,604) | (3,968) | |||
Acquired loans, net | 390,714 | 485,119 | 512,633 | |||
Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 1,965,603 | 2,594,826 | 2,786,102 | |||
Unamortized Discounts | 24,200 | 33,400 | 37,100 | |||
Residential real estate | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 175,044 | 207,482 | 218,019 | |||
Less allowance for loan losses | (2,702) | (2,346) | (2,246) | (2,311) | (2,514) | (3,553) |
Residential real estate | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 175,044 | 207,482 | 218,019 | |||
Commercial non-owner occupied real estate | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 556,745 | 844,323 | 907,355 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 345,040 | 421,841 | 455,803 | |||
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 345,040 | 421,841 | 455,803 | |||
Consumer loans | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 36,812 | 44,081 | ||||
Less allowance for loan losses | (461) | (470) | (761) | (546) | (572) | (461) |
Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 741,544 | 871,238 | 906,622 | |||
Consumer loans | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 36,812 | 42,492 | 44,081 | |||
Consumer loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 834,633 | 983,015 | 1,024,651 | |||
Commercial and industrial | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 8,112 | 10,043 | 10,671 | |||
Less allowance for loan losses | (79) | (79) | (128) | (145) | ||
Commercial and industrial | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 126,092 | 212,537 | 247,922 | |||
Commercial and industrial | Acquired credit impaired loans accounted under FASB 310 30 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 8,112 | 10,043 | 10,671 | |||
Commercial and industrial | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 126,092 | 212,537 | 247,922 | |||
Other income producing property | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 103,093 | 133,110 | 150,371 | |||
Other income producing property | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 103,093 | 133,110 | 150,371 | |||
Consumer | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 36,812 | 42,492 | 44,081 | |||
Consumer | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 93,089 | 111,777 | 118,029 | |||
Commercial loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 1,130,970 | 1,611,811 | 1,761,451 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 26,930 | 32,942 | 34,312 | |||
Less allowance for loan losses | (760) | (798) | (717) | (340) | (576) | (180) |
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 | 53,302 | 165,070 | 222,562 | |||
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 | 26,930 | 32,942 | 34,312 | |||
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 53,302 | 165,070 | 222,562 | |||
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 | 149,134 | 196,764 | 209,518 | |||
Less allowance for loan losses | (1,395) | $ (1,009) | (801) | (692) | $ (636) | $ (288) |
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 | 503,443 | 679,253 | 684,793 | |||
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 | 149,134 | 196,764 | 209,518 | |||
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 | 503,443 | 679,253 | 684,793 | |||
Home equity loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 198,112 | 242,425 | 259,558 | |||
Home equity loans | Consumer loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 198,112 | 242,425 | 259,558 | |||
Consumer | Consumer loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 93,089 | 111,777 | 118,029 | |||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans accounted under FASB 310 20 | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | 543,432 | 628,813 | 647,064 | |||
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | ||||||
Loans and Allowance for Loan Losses | ||||||
Carrying value | $ 543,432 | $ 628,813 | $ 647,064 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Table of loan payment estimates (Details) - USD ($) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
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 | ||||||
Allowance for loan losses on acquired loans | $ (5,318) | $ (3,968) | $ (4,623) | $ (4,604) | $ (4,426) | $ (4,627) |
Contractual principal and interest | 496,141 | 666,040 | 626,691 | |||
Non-accretable difference | (15,292) | (38,422) | (24,818) | |||
Cash flows expected to be collected | 480,849 | 627,618 | 601,873 | |||
Accretable Yield | (90,135) | (114,985) | (116,754) | |||
Acquired loans, net | 390,714 | 512,633 | 485,119 | 618,803 | ||
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 | ||||||
Contractual principal and interest | 2,000,000 | 2,800,000 | ||||
After fair value adjustment | 2,000,000 | 2,800,000 | ||||
Fair value adjustment | 24,200 | 37,100 | ||||
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 | ||||||
Allowance for loan losses on acquired loans | (5,318) | (3,968) | (4,604) | |||
Acquired loans, net | 390,714 | 512,633 | 485,119 | |||
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 | ||||||
Allowance for loan losses on acquired loans | (2,702) | (2,311) | (2,346) | (2,246) | (2,514) | (3,553) |
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 | ||||||
Allowance for loan losses on acquired loans | (461) | (546) | (470) | (761) | (572) | (461) |
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 | ||||||
Allowance for loan losses on acquired loans | (79) | (79) | (128) | (145) | ||
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 | ||||||
Allowance for loan losses on acquired loans | (760) | (340) | (798) | (717) | (576) | (180) |
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 | ||||||
Allowance for loan losses on acquired loans | $ (1,395) | $ (692) | $ (1,009) | $ (801) | $ (636) | $ (288) |
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 | 9 Months Ended | ||
Dec. 31, 2015USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
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 | $ 485,119,000 | $ 618,803,000 | ||
Net reductions for payments, foreclosures, and accretion | (93,691,000) | (106,829,000) | ||
Change in the allowance for loan losses on acquired loans | (714,000) | 659,000 | ||
Balance at the end of the period | 390,714,000 | 512,633,000 | ||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Balance at beginning of period | 116,754,000 | 133,096,000 | ||
Park Sterling Corporation ("Park Sterling") acquisition Day 1 adjustment | (1,460,000) | |||
Contractual interest income | (20,515,000) | (25,278,000) | ||
Accretion on acquired credit impaired loans | (14,978,000) | (13,905,000) | ||
Reclass of nonaccretable difference due to improvement in expected cash flows | 9,009,000 | 22,803,000 | ||
Other changes, net | (135,000) | (271,000) | ||
Balance at end of period | 90,135,000 | 114,985,000 | ||
Decline in accretable yield balance | 26,600,000 | |||
Accretion income | 35,500,000 | |||
Improved expected cash flows | 9,000,000 | |||
Contractual principal and interest | 496,141,000 | 666,040,000 | $ 626,691,000 | |
Acquired non-credit impaired loans accounted under FASB 310 20 | ||||
Changes in the carrying amount of accretable difference for acquired impaired and non-impaired loans | ||||
Contractual principal and interest | 2,000,000,000 | 2,800,000,000 | ||
After fair value adjustment | 2,000,000,000 | 2,800,000,000 | ||
Fair value adjustment | $ 24,200,000 | $ 37,100,000 |
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 | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in allowance for loan losses | ||||
Balance at beginning of period | $ 58,213 | $ 52,300 | $ 55,798 | $ 48,075 |
Loans charged-off | (2,779) | (1,988) | (7,260) | (5,914) |
Recoveries of loans previously charged off | 884 | 582 | 2,833 | 2,687 |
Net charge-offs | (1,895) | (1,406) | (4,427) | (3,227) |
Provision for loan losses charged to operations | 4,028 | 3,117 | 9,220 | 10,049 |
Reduction due to loan removals | (91) | (174) | (336) | (1,060) |
Balance at end of period | 60,255 | 53,837 | 60,255 | 53,837 |
Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Balance at beginning of period | 53,590 | 47,874 | 51,194 | 43,448 |
Loans charged-off | (1,969) | (1,891) | (4,541) | (4,300) |
Recoveries of loans previously charged off | 834 | 555 | 2,461 | 2,408 |
Net charge-offs | (1,135) | (1,336) | (2,080) | (1,892) |
Provision for loan losses charged to operations | 2,482 | 3,331 | 5,823 | 8,313 |
Balance at end of period | 54,937 | 49,869 | 54,937 | 49,869 |
Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (810) | (97) | (2,719) | (1,614) |
Recoveries of loans previously charged off | 50 | 27 | 372 | 279 |
Net charge-offs | (760) | (70) | (2,347) | (1,335) |
Provision for loan losses charged to operations | 760 | 70 | 2,347 | 1,335 |
Acquired credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Balance at beginning of period | 4,623 | 4,426 | 4,604 | 4,627 |
Provision for loan losses charged to operations | 786 | (284) | 1,050 | 401 |
Reduction due to loan removals | (91) | (174) | (336) | (1,060) |
Balance at end of period | 5,318 | 3,968 | 5,318 | 3,968 |
Residential real estate | Acquired credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Reduction due to loan removals | (91) | (116) | (286) | (348) |
Commercial owner occupied real estate loan | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (31) | (578) | (43) | (659) |
Recoveries of loans previously charged off | 18 | 105 | 84 | 76 |
Provision for loan losses charged to operations | 456 | 943 | 559 | 1,532 |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (786) | (28) | ||
Provision for loan losses charged to operations | 786 | 28 | ||
Consumer loans | Acquired credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Reduction due to loan removals | (3) | |||
Commercial and industrial | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (32) | (34) | (141) | (178) |
Recoveries of loans previously charged off | 77 | 27 | 286 | 241 |
Provision for loan losses charged to operations | 21 | 219 | (38) | 1,372 |
Commercial and industrial | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (648) | (30) | (1,288) | (838) |
Recoveries of loans previously charged off | 10 | 5 | 181 | 60 |
Provision for loan losses charged to operations | 638 | 25 | 1,107 | 778 |
Commercial and industrial | Acquired credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Reduction due to loan removals | (21) | (45) | (577) | |
Other income producing property | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (31) | |||
Recoveries of loans previously charged off | 29 | 3 | 87 | 14 |
Provision for loan losses charged to operations | (29) | (6) | (143) | 21 |
Other income producing property | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (26) | |||
Recoveries of loans previously charged off | 71 | |||
Provision for loan losses charged to operations | (45) | |||
Consumer | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (1,727) | (1,163) | (4,035) | (3,237) |
Recoveries of loans previously charged off | 265 | 186 | 723 | 596 |
Provision for loan losses charged to operations | 1,633 | 1,089 | 3,954 | 3,036 |
Consumer | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (100) | (63) | (305) | (328) |
Recoveries of loans previously charged off | 9 | 14 | 36 | 63 |
Provision for loan losses charged to operations | 91 | 49 | 269 | 265 |
Other loans | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Provision for loan losses charged to operations | 94 | (41) | 152 | |
Construction and land development | Commercial non-owner occupied real estate | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (69) | (78) | (35) | |
Recoveries of loans previously charged off | 208 | 178 | 833 | 1,167 |
Provision for loan losses charged to operations | 159 | (352) | (421) | (1,040) |
Construction and land development | Commercial non-owner occupied real estate | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (39) | (45) | (106) | |
Recoveries of loans previously charged off | 1 | 1 | 3 | 8 |
Provision for loan losses charged to operations | 38 | (1) | 42 | 98 |
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 | (31) | (113) | ||
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 | (3) | |||
Recoveries of loans previously charged off | 2 | 2 | 47 | 6 |
Provision for loan losses charged to operations | 238 | 774 | 1,753 | 1,454 |
Other commercial non-owner occupied real estate | Commercial non-owner occupied real estate | Acquired credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Reduction due to loan removals | (6) | (5) | (19) | |
Home equity loans | Consumer loans | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (100) | (40) | (115) | (111) |
Recoveries of loans previously charged off | 86 | 11 | 220 | 139 |
Provision for loan losses charged to operations | 28 | 102 | (348) | 163 |
Home equity loans | Consumer loans | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (23) | (4) | ||
Recoveries of loans previously charged off | 9 | 6 | ||
Provision for loan losses charged to operations | 14 | (2) | ||
Home equity loans | Commercial loans | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (263) | (244) | ||
Recoveries of loans previously charged off | 55 | 85 | ||
Provision for loan losses charged to operations | 208 | 159 | ||
Consumer Owner Occupied Loans | Consumer loans | Non-acquired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (10) | (76) | (95) | (80) |
Recoveries of loans previously charged off | 149 | 43 | 181 | 169 |
Provision for loan losses charged to operations | (24) | 468 | 548 | 1,623 |
Consumer Owner Occupied Loans | Consumer loans | Acquired non-credit impaired loans | ||||
Changes in allowance for loan losses | ||||
Loans charged-off | (6) | (70) | ||
Recoveries of loans previously charged off | 21 | 1 | 26 | 63 |
Provision for loan losses charged to operations | $ (21) | $ (1) | $ (20) | $ 7 |
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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for loan losses: | |||||
Charge-offs | $ (2,779) | $ (1,988) | $ (7,260) | $ (5,914) | |
Recoveries | 884 | 582 | 2,833 | 2,687 | |
Provision (benefit) | 4,028 | 3,117 | 9,220 | 10,049 | |
Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 53,590 | 47,874 | 51,194 | 43,448 | |
Charge-offs | (1,969) | (1,891) | (4,541) | (4,300) | |
Recoveries | 834 | 555 | 2,461 | 2,408 | |
Provision (benefit) | 2,482 | 3,331 | 5,823 | 8,313 | |
Balance at end of period | 54,937 | 49,869 | 54,937 | 49,869 | |
Loans individually evaluated for impairment | 1,221 | 1,657 | 1,221 | 1,657 | |
Loans collectively evaluated for impairment | 53,716 | 48,212 | 53,716 | 48,212 | |
Loans: | |||||
Loans individually evaluated for impairment | 54,867 | 54,640 | 54,867 | 54,640 | |
Loans collectively evaluated for impairment | 8,873,645 | 7,551,838 | 8,873,645 | 7,551,838 | |
Total loans | 8,928,512 | 7,606,478 | 8,928,512 | 7,606,478 | $ 7,933,286 |
Acquired non-credit impaired loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (810) | (97) | (2,719) | (1,614) | |
Recoveries | 50 | 27 | 372 | 279 | |
Provision (benefit) | 760 | 70 | 2,347 | 1,335 | |
Loans: | |||||
Loans collectively evaluated for impairment | 1,965,603 | 2,786,102 | 1,965,603 | 2,786,102 | |
Total loans | 1,965,603 | 2,786,102 | 1,965,603 | 2,786,102 | 2,594,826 |
Commercial non-owner occupied real estate | Non-acquired loans | |||||
Loans: | |||||
Total loans | 2,732,645 | 2,182,164 | 2,732,645 | 2,182,164 | 2,256,996 |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 5,718 | 6,187 | 5,682 | 5,921 | |
Charge-offs | (69) | (78) | (35) | ||
Recoveries | 208 | 178 | 833 | 1,167 | |
Provision (benefit) | 159 | (352) | (421) | (1,040) | |
Balance at end of period | 6,016 | 6,013 | 6,016 | 6,013 | |
Loans individually evaluated for impairment | 587 | 723 | 587 | 723 | |
Loans collectively evaluated for impairment | 5,429 | 5,290 | 5,429 | 5,290 | |
Loans: | |||||
Loans individually evaluated for impairment | 32,673 | 35,776 | 32,673 | 35,776 | |
Loans collectively evaluated for impairment | 922,645 | 867,060 | 922,645 | 867,060 | |
Total loans | 955,318 | 902,836 | 955,318 | 902,836 | 841,445 |
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 | 10,311 | 7,209 | 8,754 | 6,525 | |
Charge-offs | (3) | ||||
Recoveries | 2 | 2 | 47 | 6 | |
Provision (benefit) | 238 | 774 | 1,753 | 1,454 | |
Balance at end of period | 10,551 | 7,985 | 10,551 | 7,985 | |
Loans individually evaluated for impairment | 81 | 81 | |||
Loans collectively evaluated for impairment | 10,551 | 7,904 | 10,551 | 7,904 | |
Loans: | |||||
Loans individually evaluated for impairment | 87 | 1,315 | 87 | 1,315 | |
Loans collectively evaluated for impairment | 1,777,240 | 1,278,013 | 1,777,240 | 1,278,013 | |
Total loans | 1,777,327 | 1,279,328 | 1,777,327 | 1,279,328 | 1,415,551 |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | |||||
Allowance for loan losses: | |||||
Charge-offs | (39) | (45) | (106) | ||
Recoveries | 1 | 1 | 3 | 8 | |
Provision (benefit) | 38 | (1) | 42 | 98 | |
Loans: | |||||
Loans collectively evaluated for impairment | 53,302 | 222,562 | 53,302 | 222,562 | |
Total loans | 53,302 | 222,562 | 53,302 | 222,562 | 165,070 |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Other commercial non-owner occupied real estate | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 503,443 | 684,793 | 503,443 | 684,793 | |
Total loans | 503,443 | 684,793 | 503,443 | 684,793 | 679,253 |
Commercial owner occupied real estate loan | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 9,526 | 8,607 | 9,369 | 8,128 | |
Charge-offs | (31) | (578) | (43) | (659) | |
Recoveries | 18 | 105 | 84 | 76 | |
Provision (benefit) | 456 | 943 | 559 | 1,532 | |
Balance at end of period | 9,969 | 9,077 | 9,969 | 9,077 | |
Loans individually evaluated for impairment | 33 | 40 | 33 | 40 | |
Loans collectively evaluated for impairment | 9,936 | 9,037 | 9,936 | 9,037 | |
Loans: | |||||
Loans individually evaluated for impairment | 7,135 | 4,551 | 7,135 | 4,551 | |
Loans collectively evaluated for impairment | 1,670,560 | 1,444,518 | 1,670,560 | 1,444,518 | |
Total loans | 1,677,695 | 1,449,069 | 1,677,695 | 1,449,069 | 1,517,551 |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (786) | (28) | |||
Provision (benefit) | 786 | 28 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 345,040 | 455,803 | 345,040 | 455,803 | |
Total loans | 345,040 | 455,803 | 345,040 | 455,803 | 421,841 |
Consumer loans | Non-acquired loans | |||||
Loans: | |||||
Total loans | 2,639,871 | 2,317,584 | 2,639,871 | 2,317,584 | 2,431,413 |
Consumer loans | Non-acquired loans | Home equity loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 3,177 | 3,368 | 3,434 | 3,250 | |
Charge-offs | (100) | (40) | (115) | (111) | |
Recoveries | 86 | 11 | 220 | 139 | |
Provision (benefit) | 28 | 102 | (348) | 163 | |
Balance at end of period | 3,191 | 3,441 | 3,191 | 3,441 | |
Loans individually evaluated for impairment | 121 | 171 | 121 | 171 | |
Loans collectively evaluated for impairment | 3,070 | 3,270 | 3,070 | 3,270 | |
Loans: | |||||
Loans individually evaluated for impairment | 2,345 | 3,026 | 2,345 | 3,026 | |
Loans collectively evaluated for impairment | 519,399 | 470,355 | 519,399 | 470,355 | |
Total loans | 521,744 | 473,381 | 521,744 | 473,381 | 495,148 |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 12,432 | 10,945 | 11,913 | 9,668 | |
Charge-offs | (10) | (76) | (95) | (80) | |
Recoveries | 149 | 43 | 181 | 169 | |
Provision (benefit) | (24) | 468 | 548 | 1,623 | |
Balance at end of period | 12,547 | 11,380 | 12,547 | 11,380 | |
Loans individually evaluated for impairment | 33 | 28 | 33 | 28 | |
Loans collectively evaluated for impairment | 12,514 | 11,352 | 12,514 | 11,352 | |
Loans: | |||||
Loans individually evaluated for impairment | 5,127 | 5,420 | 5,127 | 5,420 | |
Loans collectively evaluated for impairment | 2,113,000 | 1,838,783 | 2,113,000 | 1,838,783 | |
Total loans | 2,118,127 | 1,844,203 | 2,118,127 | 1,844,203 | 1,936,265 |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (23) | (4) | |||
Recoveries | 9 | 6 | |||
Provision (benefit) | 14 | (2) | |||
Loans: | |||||
Loans collectively evaluated for impairment | 198,112 | 259,558 | 198,112 | 259,558 | |
Total loans | 198,112 | 259,558 | 198,112 | 259,558 | 242,425 |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (6) | (70) | |||
Recoveries | 21 | 1 | 26 | 63 | |
Provision (benefit) | (21) | (1) | (20) | 7 | |
Loans: | |||||
Loans collectively evaluated for impairment | 543,432 | 647,064 | 543,432 | 647,064 | |
Total loans | 543,432 | 647,064 | 543,432 | 647,064 | 628,813 |
Commercial and industrial | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 7,495 | 6,711 | 7,454 | 5,488 | |
Charge-offs | (32) | (34) | (141) | (178) | |
Recoveries | 77 | 27 | 286 | 241 | |
Provision (benefit) | 21 | 219 | (38) | 1,372 | |
Balance at end of period | 7,561 | 6,923 | 7,561 | 6,923 | |
Loans individually evaluated for impairment | 387 | 475 | 387 | 475 | |
Loans collectively evaluated for impairment | 7,174 | 6,448 | 7,174 | 6,448 | |
Loans: | |||||
Loans individually evaluated for impairment | 5,313 | 1,409 | 5,313 | 1,409 | |
Loans collectively evaluated for impairment | 1,125,534 | 990,433 | 1,125,534 | 990,433 | |
Total loans | 1,130,847 | 991,842 | 1,130,847 | 991,842 | 1,054,952 |
Commercial and industrial | Acquired non-credit impaired loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (648) | (30) | (1,288) | (838) | |
Recoveries | 10 | 5 | 181 | 60 | |
Provision (benefit) | 638 | 25 | 1,107 | 778 | |
Loans: | |||||
Loans collectively evaluated for impairment | 126,092 | 247,922 | 126,092 | 247,922 | |
Total loans | 126,092 | 247,922 | 126,092 | 247,922 | 212,537 |
Other income producing property | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 1,359 | 1,413 | 1,446 | 1,375 | |
Charge-offs | (31) | ||||
Recoveries | 29 | 3 | 87 | 14 | |
Provision (benefit) | (29) | (6) | (143) | 21 | |
Balance at end of period | 1,359 | 1,410 | 1,359 | 1,410 | |
Loans individually evaluated for impairment | 58 | 133 | 58 | 133 | |
Loans collectively evaluated for impairment | 1,301 | 1,277 | 1,301 | 1,277 | |
Loans: | |||||
Loans individually evaluated for impairment | 2,096 | 2,930 | 2,096 | 2,930 | |
Loans collectively evaluated for impairment | 218,861 | 207,053 | 218,861 | 207,053 | |
Total loans | 220,957 | 209,983 | 220,957 | 209,983 | 214,353 |
Other income producing property | Acquired non-credit impaired loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (26) | ||||
Recoveries | 71 | ||||
Provision (benefit) | (45) | ||||
Loans: | |||||
Loans collectively evaluated for impairment | 103,093 | 150,371 | 103,093 | 150,371 | |
Total loans | 103,093 | 150,371 | 103,093 | 150,371 | 133,110 |
Consumer | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 3,572 | 3,071 | 3,101 | 2,788 | |
Charge-offs | (1,727) | (1,163) | (4,035) | (3,237) | |
Recoveries | 265 | 186 | 723 | 596 | |
Provision (benefit) | 1,633 | 1,089 | 3,954 | 3,036 | |
Balance at end of period | 3,743 | 3,183 | 3,743 | 3,183 | |
Loans individually evaluated for impairment | 2 | 6 | 2 | 6 | |
Loans collectively evaluated for impairment | 3,741 | 3,177 | 3,741 | 3,177 | |
Loans: | |||||
Loans individually evaluated for impairment | 91 | 213 | 91 | 213 | |
Loans collectively evaluated for impairment | 524,949 | 438,576 | 524,949 | 438,576 | |
Total loans | 525,040 | 438,789 | 525,040 | 438,789 | 448,664 |
Consumer | Non-acquired loans | Consumer | |||||
Loans: | |||||
Total loans | 525,040 | 438,789 | 525,040 | 438,789 | 448,664 |
Consumer | Acquired non-credit impaired loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (100) | (63) | (305) | (328) | |
Recoveries | 9 | 14 | 36 | 63 | |
Provision (benefit) | 91 | 49 | 269 | 265 | |
Loans: | |||||
Loans collectively evaluated for impairment | 93,089 | 118,029 | 93,089 | 118,029 | |
Total loans | 93,089 | 118,029 | 93,089 | 118,029 | 111,777 |
Commercial loans | Non-acquired loans | |||||
Loans: | |||||
Total loans | 5,762,144 | 4,833,058 | 5,762,144 | 4,833,058 | 5,043,852 |
Commercial loans | Acquired non-credit impaired loans | Home equity loans | |||||
Allowance for loan losses: | |||||
Charge-offs | (263) | (244) | |||
Recoveries | 55 | 85 | |||
Provision (benefit) | 208 | 159 | |||
Other loans | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 363 | 41 | 305 | ||
Provision (benefit) | 94 | (41) | 152 | ||
Balance at end of period | 457 | 457 | |||
Loans collectively evaluated for impairment | 457 | 457 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 1,457 | 17,047 | 1,457 | 17,047 | |
Total loans | $ 1,457 | $ 17,047 | $ 1,457 | $ 17,047 | $ 9,357 |
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 | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for loan losses: | |||||
Reduction due to loan removals | $ (91) | $ (174) | $ (336) | $ (1,060) | |
Non-acquired loans | |||||
Allowance for loan losses: | |||||
Loans individually evaluated for impairment | 1,221 | 1,657 | 1,221 | 1,657 | |
Loans collectively evaluated for impairment | 53,716 | 48,212 | 53,716 | 48,212 | |
Loans: | |||||
Loans individually evaluated for impairment | 54,867 | 54,640 | 54,867 | 54,640 | |
Loans collectively evaluated for impairment | 8,873,645 | 7,551,838 | 8,873,645 | 7,551,838 | |
Acquired credit impaired loans | |||||
Allowance for loan losses: | |||||
Balance at the beginning of the period | 4,623 | 4,426 | 4,604 | 4,627 | |
Provision (benefit) for loan losses | 786 | (284) | 1,050 | 401 | |
Reduction due to loan removals | (91) | (174) | (336) | (1,060) | |
Balance at the end of the period | 5,318 | 3,968 | 5,318 | 3,968 | |
Loans collectively evaluated for impairment | 5,318 | 3,968 | 5,318 | 3,968 | |
Loans: | |||||
Loans collectively evaluated for impairment | 396,032 | 516,601 | 396,032 | 516,601 | |
Carrying value | 396,032 | 516,601 | 396,032 | 516,601 | $ 489,723 |
Acquired non-credit impaired loans | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 1,965,603 | 2,786,102 | 1,965,603 | 2,786,102 | |
Carrying value | 1,965,603 | 2,786,102 | 1,965,603 | 2,786,102 | 2,594,826 |
Residential real estate | Acquired credit impaired loans | |||||
Allowance for loan losses: | |||||
Balance at the beginning of the period | 2,346 | 2,514 | 2,246 | 3,553 | |
Provision (benefit) for loan losses | 447 | (87) | 742 | (894) | |
Reduction due to loan removals | (91) | (116) | (286) | (348) | |
Balance at the end of the period | 2,702 | 2,311 | 2,702 | 2,311 | |
Loans collectively evaluated for impairment | 2,702 | 2,311 | 2,702 | 2,311 | |
Loans: | |||||
Loans collectively evaluated for impairment | 175,044 | 218,019 | 175,044 | 218,019 | |
Carrying value | 175,044 | 218,019 | 175,044 | 218,019 | 207,482 |
Commercial non-owner occupied real estate | Construction and land development | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Loans individually evaluated for impairment | 587 | 723 | 587 | 723 | |
Loans collectively evaluated for impairment | 5,429 | 5,290 | 5,429 | 5,290 | |
Loans: | |||||
Loans individually evaluated for impairment | 32,673 | 35,776 | 32,673 | 35,776 | |
Loans collectively evaluated for impairment | 922,645 | 867,060 | 922,645 | 867,060 | |
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 | 798 | 576 | 717 | 180 | |
Provision (benefit) for loan losses | (38) | (205) | 43 | 273 | |
Reduction due to loan removals | (31) | (113) | |||
Balance at the end of the period | 760 | 340 | 760 | 340 | |
Loans collectively evaluated for impairment | 760 | 340 | 760 | 340 | |
Loans: | |||||
Loans collectively evaluated for impairment | 26,930 | 34,312 | 26,930 | 34,312 | |
Carrying value | 26,930 | 34,312 | 26,930 | 34,312 | 32,942 |
Commercial non-owner occupied real estate | Construction and land development | Acquired non-credit impaired loans | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 53,302 | 222,562 | 53,302 | 222,562 | |
Carrying value | 53,302 | 222,562 | 53,302 | 222,562 | 165,070 |
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 | 81 | 81 | |||
Loans collectively evaluated for impairment | 10,551 | 7,904 | 10,551 | 7,904 | |
Loans: | |||||
Loans individually evaluated for impairment | 87 | 1,315 | 87 | 1,315 | |
Loans collectively evaluated for impairment | 1,777,240 | 1,278,013 | 1,777,240 | 1,278,013 | |
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 | 1,009 | 636 | 801 | 288 | |
Provision (benefit) for loan losses | 386 | 62 | 599 | 423 | |
Reduction due to loan removals | (6) | (5) | (19) | ||
Balance at the end of the period | 1,395 | 692 | 1,395 | 692 | |
Loans collectively evaluated for impairment | 1,395 | 692 | 1,395 | 692 | |
Loans: | |||||
Loans collectively evaluated for impairment | 149,134 | 209,518 | 149,134 | 209,518 | |
Carrying value | 149,134 | 209,518 | 149,134 | 209,518 | 196,764 |
Commercial non-owner occupied real estate | Other commercial non-owner occupied real estate | Acquired non-credit impaired loans | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 503,443 | 684,793 | 503,443 | 684,793 | |
Carrying value | 503,443 | 684,793 | 503,443 | 684,793 | 679,253 |
Consumer loans | Acquired credit impaired loans | |||||
Allowance for loan losses: | |||||
Balance at the beginning of the period | 470 | 572 | 761 | 461 | |
Provision (benefit) for loan losses | (9) | (26) | (300) | 88 | |
Reduction due to loan removals | (3) | ||||
Balance at the end of the period | 461 | 546 | 461 | 546 | |
Loans collectively evaluated for impairment | 461 | 546 | 461 | 546 | |
Loans: | |||||
Loans collectively evaluated for impairment | 36,812 | 44,081 | 36,812 | 44,081 | |
Carrying value | 36,812 | 44,081 | 36,812 | 44,081 | |
Consumer loans | Acquired non-credit impaired loans | |||||
Loans: | |||||
Carrying value | 834,633 | 1,024,651 | 834,633 | 1,024,651 | 983,015 |
Consumer loans | Home equity loans | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Loans individually evaluated for impairment | 121 | 171 | 121 | 171 | |
Loans collectively evaluated for impairment | 3,070 | 3,270 | 3,070 | 3,270 | |
Loans: | |||||
Loans individually evaluated for impairment | 2,345 | 3,026 | 2,345 | 3,026 | |
Loans collectively evaluated for impairment | 519,399 | 470,355 | 519,399 | 470,355 | |
Consumer loans | Home equity loans | Acquired non-credit impaired loans | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 198,112 | 259,558 | 198,112 | 259,558 | |
Carrying value | 198,112 | 259,558 | 198,112 | 259,558 | 242,425 |
Commercial and industrial | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Loans individually evaluated for impairment | 387 | 475 | 387 | 475 | |
Loans collectively evaluated for impairment | 7,174 | 6,448 | 7,174 | 6,448 | |
Loans: | |||||
Loans individually evaluated for impairment | 5,313 | 1,409 | 5,313 | 1,409 | |
Loans collectively evaluated for impairment | 1,125,534 | 990,433 | 1,125,534 | 990,433 | |
Commercial and industrial | Acquired credit impaired loans | |||||
Allowance for loan losses: | |||||
Balance at the beginning of the period | 128 | 79 | 145 | ||
Provision (benefit) for loan losses | (28) | (34) | 511 | ||
Reduction due to loan removals | (21) | (45) | (577) | ||
Balance at the end of the period | 79 | 79 | |||
Loans collectively evaluated for impairment | 79 | 79 | |||
Loans: | |||||
Loans collectively evaluated for impairment | 8,112 | 10,671 | 8,112 | 10,671 | |
Carrying value | 8,112 | 10,671 | 8,112 | 10,671 | 10,043 |
Commercial and industrial | Acquired non-credit impaired loans | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 126,092 | 247,922 | 126,092 | 247,922 | |
Carrying value | 126,092 | 247,922 | 126,092 | 247,922 | 212,537 |
Other income producing property | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Loans individually evaluated for impairment | 58 | 133 | 58 | 133 | |
Loans collectively evaluated for impairment | 1,301 | 1,277 | 1,301 | 1,277 | |
Loans: | |||||
Loans individually evaluated for impairment | 2,096 | 2,930 | 2,096 | 2,930 | |
Loans collectively evaluated for impairment | 218,861 | 207,053 | 218,861 | 207,053 | |
Other income producing property | Acquired non-credit impaired loans | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 103,093 | 150,371 | 103,093 | 150,371 | |
Carrying value | 103,093 | 150,371 | 103,093 | 150,371 | 133,110 |
Consumer | Non-acquired loans | |||||
Allowance for loan losses: | |||||
Loans individually evaluated for impairment | 2 | 6 | 2 | 6 | |
Loans collectively evaluated for impairment | 3,741 | 3,177 | 3,741 | 3,177 | |
Loans: | |||||
Loans individually evaluated for impairment | 91 | 213 | 91 | 213 | |
Loans collectively evaluated for impairment | 524,949 | 438,576 | 524,949 | 438,576 | |
Consumer | Acquired credit impaired loans | |||||
Loans: | |||||
Carrying value | 36,812 | 44,081 | 36,812 | 44,081 | 42,492 |
Consumer | Acquired non-credit impaired loans | |||||
Loans: | |||||
Loans collectively evaluated for impairment | 93,089 | 118,029 | 93,089 | 118,029 | |
Commercial loans | Acquired non-credit impaired loans | |||||
Loans: | |||||
Carrying value | $ 1,130,970 | $ 1,761,451 | $ 1,130,970 | $ 1,761,451 | $ 1,611,811 |
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 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Loans and Allowance for Loan Losses | ||||
Other Real Estate, Non Covered | $ 13,415 | $ 11,410 | $ 12,119 | $ 11,203 |
Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 8,928,512 | 7,933,286 | 7,606,478 | |
Non-acquired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 8,808,623 | 7,813,938 | 7,487,440 | |
Non-acquired loans | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 66,929 | 66,645 | 71,106 | |
Non-acquired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 52,960 | 52,703 | 47,932 | |
Acquired non-credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,965,603 | 2,594,826 | 2,786,102 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,965,603 | 2,594,826 | 2,786,102 | |
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 | 1,897,922 | 2,523,010 | 2,716,956 | |
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 | 31,970 | 48,716 | 52,428 | |
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 | 35,711 | 23,100 | 16,718 | |
Acquired credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 396,032 | 489,723 | 516,601 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 396,032 | 489,723 | 516,601 | |
Acquired credit impaired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 238,772 | 296,106 | 305,676 | |
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 | 62,177 | 74,388 | 84,007 | |
Acquired credit impaired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 95,083 | 119,229 | 126,918 | |
Residential real estate | Acquired credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 175,044 | 207,482 | 218,019 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 175,044 | 207,482 | 218,019 | |
Residential real estate | Acquired credit impaired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 88,131 | 104,181 | 109,004 | |
Residential real estate | 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 | 36,901 | 41,964 | 42,834 | |
Residential real estate | Acquired credit impaired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 50,012 | 61,337 | 66,181 | |
Commercial non-owner occupied real estate | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,732,645 | 2,256,996 | 2,182,164 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 955,318 | 841,445 | 902,836 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 947,230 | 832,612 | 889,818 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 5,601 | 6,015 | 9,906 | |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,487 | 2,818 | 3,112 | |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,777,327 | 1,415,551 | 1,279,328 | |
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 | 1,768,013 | 1,407,744 | 1,270,557 | |
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 | 7,091 | 6,427 | 7,027 | |
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 | 2,223 | 1,380 | 1,744 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 53,302 | 165,070 | 222,562 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 53,302 | 165,070 | 222,562 | |
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 | 51,340 | 163,777 | 221,034 | |
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 | 736 | 838 | 921 | |
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 | 1,226 | 455 | 607 | |
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 | 503,443 | 679,253 | 684,793 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 503,443 | 679,253 | 684,793 | |
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 | 492,258 | 665,913 | 670,176 | |
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 | 5,035 | 13,018 | 14,612 | |
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 | 6,150 | 322 | 5 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 26,930 | 32,942 | 34,312 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 26,930 | 32,942 | 34,312 | |
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 | 18,978 | 20,293 | 20,796 | |
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 | 3,018 | 3,001 | 3,165 | |
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 | 4,934 | 9,648 | 10,351 | |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Other commercial non-owner occupied real estate | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 149,134 | 196,764 | 209,518 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 149,134 | 196,764 | 209,518 | |
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 | 121,264 | 160,788 | 164,435 | |
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 | 9,064 | 14,393 | 22,629 | |
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 | 18,806 | 21,583 | 22,454 | |
Commercial owner occupied real estate loan | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,677,695 | 1,517,551 | 1,449,069 | |
Commercial owner occupied real estate loan | Non-acquired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,648,456 | 1,480,267 | 1,421,090 | |
Commercial owner occupied real estate loan | Non-acquired loans | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 17,319 | 24,576 | 18,337 | |
Commercial owner occupied real estate loan | Non-acquired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 11,920 | 12,708 | 9,642 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 345,040 | 421,841 | 455,803 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 345,040 | 421,841 | 455,803 | |
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 | 330,005 | 411,783 | 447,877 | |
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 | 3,427 | 5,664 | 6,933 | |
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 | 11,608 | 4,394 | 993 | |
Consumer loans | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,639,871 | 2,431,413 | 2,317,584 | |
Consumer loans | Non-acquired loans | Home equity loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 521,744 | 495,148 | 473,381 | |
Consumer loans | Non-acquired loans | Home equity loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 510,508 | 481,607 | 460,720 | |
Consumer loans | Non-acquired loans | Home equity loans | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 5,373 | 7,293 | 6,037 | |
Consumer loans | Non-acquired loans | Home equity loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 5,863 | 6,248 | 6,624 | |
Consumer loans | Non-acquired loans | All Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 3,166,368 | 2,889,434 | 2,773,420 | |
Consumer loans | Non-acquired loans | All Consumer | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 3,125,768 | 2,847,214 | 2,731,545 | |
Consumer loans | Non-acquired loans | All Consumer | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 14,848 | 19,034 | 18,168 | |
Consumer loans | Non-acquired loans | All Consumer | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 25,752 | 23,186 | 23,707 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,118,127 | 1,936,265 | 1,844,203 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 2,091,129 | 1,909,427 | 1,816,735 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 9,054 | 11,304 | 11,614 | |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 17,944 | 15,534 | 15,854 | |
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 | 834,633 | 983,015 | 1,024,651 | |
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 | 807,782 | 953,739 | 994,614 | |
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 | 12,784 | 16,254 | 16,120 | |
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 | 14,067 | 13,022 | 13,917 | |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 198,112 | 242,425 | 259,558 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 198,112 | 242,425 | 259,558 | |
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 | 184,946 | 227,515 | 244,017 | |
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 | 5,405 | 7,688 | 8,089 | |
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 | 7,761 | 7,222 | 7,452 | |
Consumer loans | Acquired non-credit impaired loans | Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 93,089 | 111,777 | 118,029 | |
Consumer loans | Acquired non-credit impaired loans | Consumer | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 90,076 | 108,833 | 115,154 | |
Consumer loans | Acquired non-credit impaired loans | Consumer | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 574 | 698 | 619 | |
Consumer loans | Acquired non-credit impaired loans | Consumer | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 2,439 | 2,246 | 2,256 | |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 543,432 | 628,813 | 647,064 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 543,432 | 628,813 | 647,064 | |
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 | 532,760 | 617,391 | 635,443 | |
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 | 6,805 | 7,868 | 7,412 | |
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 | 3,867 | 3,554 | 4,209 | |
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 | 36,812 | 44,081 | ||
Commercial and industrial | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,130,847 | 1,054,952 | 991,842 | |
Commercial and industrial | Non-acquired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,103,532 | 1,037,915 | 970,586 | |
Commercial and industrial | Non-acquired loans | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 18,148 | 5,887 | 12,997 | |
Commercial and industrial | Non-acquired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 9,167 | 11,150 | 8,259 | |
Commercial and industrial | Acquired non-credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 126,092 | 212,537 | 247,922 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 126,092 | 212,537 | 247,922 | |
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 | 120,926 | 202,399 | 239,906 | |
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 | 4,051 | 6,523 | 7,634 | |
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 | 1,115 | 3,615 | 382 | |
Commercial and industrial | Acquired credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 8,112 | 10,043 | 10,671 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 8,112 | 10,043 | 10,671 | |
Commercial and industrial | Acquired credit impaired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 5,703 | 5,093 | 5,514 | |
Commercial and industrial | 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 | 471 | 546 | 584 | |
Commercial and industrial | Acquired credit impaired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 1,938 | 4,404 | 4,573 | |
Other income producing property | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 220,957 | 214,353 | 209,983 | |
Other income producing property | Non-acquired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 215,624 | 208,186 | 203,844 | |
Other income producing property | Non-acquired loans | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 3,922 | 4,706 | 4,671 | |
Other income producing property | Non-acquired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,411 | 1,461 | 1,468 | |
Other income producing property | Acquired non-credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 103,093 | 133,110 | 150,371 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 103,093 | 133,110 | 150,371 | |
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 | 95,611 | 125,399 | 143,349 | |
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 | 5,937 | 6,419 | 6,208 | |
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 | 1,545 | 1,292 | 814 | |
Consumer | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 525,040 | 448,664 | 438,789 | |
Consumer | Non-acquired loans | Consumer | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 525,040 | 448,664 | 438,789 | |
Consumer | Non-acquired loans | Consumer | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 522,674 | 446,823 | 437,043 | |
Consumer | Non-acquired loans | Consumer | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 421 | 437 | 517 | |
Consumer | Non-acquired loans | Consumer | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,945 | 1,404 | 1,229 | |
Consumer | Acquired non-credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 93,089 | 111,777 | 118,029 | |
Consumer | Acquired credit impaired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 36,812 | 42,492 | 44,081 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 36,812 | 42,492 | 44,081 | |
Consumer | Acquired credit impaired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 4,696 | 5,751 | 5,927 | |
Consumer | 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 | 12,723 | 14,484 | 14,795 | |
Consumer | Acquired credit impaired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance | 19,393 | 22,257 | 23,359 | |
Commercial loans | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 5,762,144 | 5,043,852 | 4,833,058 | |
Commercial loans | Non-acquired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 5,682,855 | 4,966,724 | 4,755,895 | |
Commercial loans | Non-acquired loans | Special mention | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 52,081 | 47,611 | 52,938 | |
Commercial loans | Non-acquired loans | Substandard | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 27,208 | 29,517 | 24,225 | |
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 | 1,130,970 | 1,611,811 | 1,761,451 | |
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 | 1,090,140 | 1,569,271 | 1,722,342 | |
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 | 19,186 | 32,462 | 36,308 | |
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 | 21,644 | 10,078 | 2,801 | |
Other loans | Non-acquired loans | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | 1,457 | 9,357 | 17,047 | |
Other loans | Non-acquired loans | Pass | ||||
Loans and Allowance for Loan Losses | ||||
Total loans | $ 1,457 | $ 9,357 | $ 17,047 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Aging analysis of past due loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | $ 19,214 | $ 14,555 | $ 16,624 |
Current | 8,909,298 | 7,918,731 | 7,589,854 |
Total loans | 8,928,512 | 7,933,286 | 7,606,478 |
Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 7,496 | 6,108 | 8,677 |
Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,483 | 3,459 | 2,814 |
Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 8,235 | 4,988 | 5,133 |
Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 14,183 | 26,998 | 32,277 |
Current | 381,849 | 462,725 | 484,324 |
Total loans | 396,032 | 489,723 | 516,601 |
Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,079 | 8,770 | 12,087 |
Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,580 | 1,465 | 2,327 |
Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 8,524 | 16,763 | 17,863 |
Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 12,280 | 15,532 | 15,354 |
Current | 1,953,323 | 2,579,294 | 2,770,748 |
Total loans | 1,965,603 | 2,594,826 | 2,786,102 |
Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 7,773 | 8,456 | 7,809 |
Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 991 | 2,750 | 2,607 |
Acquired non-credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,516 | 4,326 | 4,938 |
Residential real estate | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 8,476 | 14,358 | 16,269 |
Current | 166,568 | 193,124 | 201,750 |
Total loans | 175,044 | 207,482 | 218,019 |
Residential real estate | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 2,317 | 4,620 | 6,506 |
Residential real estate | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,143 | 1,251 | 1,392 |
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 | 5,016 | 8,487 | 8,371 |
Commercial non-owner occupied real estate | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,732,645 | 2,256,996 | 2,182,164 |
Commercial non-owner occupied real estate | Non-acquired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 534 | 1,450 | 1,149 |
Current | 954,784 | 839,995 | 901,687 |
Total loans | 955,318 | 841,445 | 902,836 |
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 | 194 | 693 | 535 |
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 | 17 | 305 | 537 |
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 | 323 | 452 | 77 |
Commercial non-owner occupied real estate | Non-acquired loans | Other commercial non-owner occupied real estate | |||
Loans and Allowance for Loan Losses | |||
Past due | 472 | 482 | 1,142 |
Current | 1,776,855 | 1,415,069 | 1,278,186 |
Total loans | 1,777,327 | 1,415,551 | 1,279,328 |
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 | 173 | 68 | 466 |
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 | ||
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 | 299 | 396 | 676 |
Commercial non-owner occupied real estate | Acquired credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 349 | 2,943 | 3,982 |
Current | 26,581 | 29,999 | 30,330 |
Total loans | 26,930 | 32,942 | 34,312 |
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 | 88 | 115 | 768 |
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 | 309 | |
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 | 261 | 2,816 | 2,905 |
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 | 3,367 | 5,521 | 7,500 |
Current | 145,767 | 191,243 | 202,018 |
Total loans | 149,134 | 196,764 | 209,518 |
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 | 444 | 876 | 1,517 |
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 | 252 | 112 | 375 |
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 | 2,671 | 4,533 | 5,608 |
Commercial non-owner occupied real estate | Acquired non-credit impaired loans | Construction and land development | |||
Loans and Allowance for Loan Losses | |||
Past due | 485 | 1,057 | 578 |
Current | 52,817 | 164,013 | 221,984 |
Total loans | 53,302 | 165,070 | 222,562 |
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 | 323 | 647 | 6 |
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 | 199 | |
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 | 162 | 365 | 373 |
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 | 952 | 911 | 3,979 |
Current | 502,491 | 678,342 | 680,814 |
Total loans | 503,443 | 679,253 | 684,793 |
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 | 697 | 607 | 3,931 |
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 | 48 | |
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 | 255 | 283 | |
Commercial owner occupied real estate loan | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 7,352 | 4,038 | 4,682 |
Current | 1,670,343 | 1,513,513 | 1,444,387 |
Total loans | 1,677,695 | 1,517,551 | 1,449,069 |
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 | 2,914 | 1,639 | 2,562 |
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 | 1,662 | 1,495 | 1,249 |
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 | 2,776 | 904 | 871 |
Commercial owner occupied real estate loan | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,292 | 1,970 | 1,473 |
Current | 341,748 | 419,871 | 454,330 |
Total loans | 345,040 | 421,841 | 455,803 |
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 | 2,401 | 964 | 564 |
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 | 168 | 1,006 | 198 |
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 | 723 | 711 | |
Consumer loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 2,639,871 | 2,431,413 | 2,317,584 |
Consumer loans | Non-acquired loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,029 | 1,989 | 2,712 |
Current | 520,715 | 493,159 | 470,669 |
Total loans | 521,744 | 495,148 | 473,381 |
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 | 478 | 744 | 1,667 |
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 | 368 | 532 | 296 |
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 | 183 | 713 | 749 |
Consumer loans | Non-acquired loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 4,450 | 3,192 | 2,050 |
Current | 2,113,677 | 1,933,073 | 1,842,153 |
Total loans | 2,118,127 | 1,936,265 | 1,844,203 |
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 | 1,610 | 1,460 | 866 |
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 | 569 | 789 | 264 |
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 | 2,271 | 943 | 920 |
Consumer loans | Non-acquired loans | All Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | 3,166,368 | 2,889,434 | 2,773,420 |
Consumer loans | Acquired non-credit impaired loans | Home equity loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,991 | 3,937 | 4,243 |
Current | 196,121 | 238,488 | 255,315 |
Total loans | 198,112 | 242,425 | 259,558 |
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 | 653 | 1,286 | 1,295 |
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 | 201 | 442 | 527 |
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 | 1,137 | 2,209 | 2,421 |
Consumer loans | Acquired non-credit impaired loans | Consumer Owner Occupied Loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,443 | 2,537 | 1,532 |
Current | 541,989 | 626,276 | 645,532 |
Total loans | 543,432 | 628,813 | 647,064 |
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 | 953 | 1,127 | 552 |
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 | 163 | 621 | 405 |
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 | 327 | 789 | 575 |
Commercial and industrial | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 3,224 | 1,591 | 1,918 |
Current | 1,127,623 | 1,053,361 | 989,924 |
Total loans | 1,130,847 | 1,054,952 | 991,842 |
Commercial and industrial | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,219 | 898 | 716 |
Commercial and industrial | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 480 | 120 | 297 |
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 | 1,525 | 573 | 905 |
Commercial and industrial | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 359 | 2,525 | 2,796 |
Current | 7,753 | 7,518 | 7,875 |
Total loans | 8,112 | 10,043 | 10,671 |
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 282 | 2,437 | 2,625 |
Commercial and industrial | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 83 | ||
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 | 77 | 88 | 88 |
Commercial and industrial | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,210 | 2,797 | 969 |
Current | 124,882 | 209,740 | 246,953 |
Total loans | 126,092 | 212,537 | 247,922 |
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 | 857 | 2,648 | 116 |
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 | 32 | 130 | 589 |
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 | 321 | 19 | 264 |
Other income producing property | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 349 | 484 | 1,412 |
Current | 220,608 | 213,869 | 208,571 |
Total loans | 220,957 | 214,353 | 209,983 |
Other income producing property | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 115 | 169 | 1,163 |
Other income producing property | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 182 | 26 | |
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 | 52 | 289 | 249 |
Other income producing property | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,386 | 1,008 | 1,276 |
Current | 101,707 | 132,102 | 149,095 |
Total loans | 103,093 | 133,110 | 150,371 |
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 | 1,008 | 603 | 804 |
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 | 293 | 276 | 343 |
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 | 85 | 129 | 129 |
Consumer | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,804 | 1,329 | 1,559 |
Current | 523,236 | 447,335 | 437,230 |
Total loans | 525,040 | 448,664 | 438,789 |
Consumer | Non-acquired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 793 | 437 | 702 |
Consumer | Non-acquired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 205 | 174 | 171 |
Consumer | Non-acquired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 806 | 718 | 686 |
Consumer | Non-acquired loans | Consumer | |||
Loans and Allowance for Loan Losses | |||
Total loans | 525,040 | 448,664 | 438,789 |
Consumer | Acquired credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,632 | 1,651 | 1,730 |
Current | 35,180 | 40,841 | 42,351 |
Total loans | 36,812 | 42,492 | 44,081 |
Consumer | Acquired credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 948 | 722 | 671 |
Consumer | Acquired credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 185 | 90 | 168 |
Consumer | Acquired credit impaired loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 499 | 839 | 891 |
Consumer | Acquired non-credit impaired loans | |||
Loans and Allowance for Loan Losses | |||
Past due | 1,521 | 1,315 | 1,304 |
Current | 91,568 | 110,462 | 116,725 |
Total loans | 93,089 | 111,777 | 118,029 |
Consumer | Acquired non-credit impaired loans | Financing Receivables, 30 to 59 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 881 | 574 | 541 |
Consumer | Acquired non-credit impaired loans | Financing Receivables, 60 to 89 Days Past Due [Member] | |||
Loans and Allowance for Loan Losses | |||
Past due | 134 | 209 | 298 |
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 | 506 | 532 | 465 |
Commercial loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Total loans | 5,762,144 | 5,043,852 | 4,833,058 |
Other loans | Non-acquired loans | |||
Loans and Allowance for Loan Losses | |||
Current | 1,457 | 9,357 | 17,047 |
Total loans | $ 1,457 | $ 9,357 | $ 17,047 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Nonaccrual loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Non acquired non-accrual loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | $ 18,854 | $ 15,279 | $ 18,854 | $ 15,279 | $ 14,827 |
Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 57,940 | 57,156 | 57,940 | 57,156 | 59,460 |
Recorded Investment With No Allowance | 12,844 | 10,747 | 12,844 | 10,747 | 10,714 |
Gross Recorded Investment With Allowance | 42,023 | 43,893 | 42,023 | 43,893 | 46,304 |
Total Recorded Investment | 54,867 | 54,640 | 54,867 | 54,640 | 57,018 |
Related Allowance | 1,221 | 1,657 | 1,221 | 1,657 | 1,628 |
Average Investment In Impaired Loans | 54,688 | 58,617 | 55,943 | 59,032 | |
Interest Income Recognized | 516 | 346 | 1,769 | 1,593 | |
Acquired non-credit impaired non-accrual including restructured loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 9,596 | 10,798 | 9,596 | 10,798 | 13,489 |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 869 | 1,514 | 869 | 1,514 | 1,255 |
Commercial non-owner occupied real estate | Non acquired non-accrual loans | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 412 | 404 | 412 | 404 | 424 |
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 | 457 | 1,110 | 457 | 1,110 | 831 |
Commercial non-owner occupied real estate | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 33,063 | 36,203 | 33,063 | 36,203 | 38,314 |
Recorded Investment With No Allowance | 225 | 1,029 | 225 | 1,029 | 339 |
Gross Recorded Investment With Allowance | 32,448 | 34,747 | 32,448 | 34,747 | 37,574 |
Total Recorded Investment | 32,673 | 35,776 | 32,673 | 35,776 | 37,913 |
Related Allowance | 587 | 723 | 587 | 723 | 788 |
Average Investment In Impaired Loans | 34,401 | 39,084 | 35,293 | 39,503 | |
Interest Income Recognized | 177 | 158 | 967 | 968 | |
Commercial non-owner occupied real estate | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | Other commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 146 | 1,480 | 146 | 1,480 | 1,157 |
Recorded Investment With No Allowance | 74 | 812 | 74 | 812 | 536 |
Gross Recorded Investment With Allowance | 13 | 503 | 13 | 503 | 489 |
Total Recorded Investment | 87 | 1,315 | 87 | 1,315 | 1,025 |
Related Allowance | 81 | 81 | 70 | ||
Average Investment In Impaired Loans | 94 | 1,332 | 556 | 1,345 | |
Interest Income Recognized | 1 | 5 | 6 | 19 | |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual including restructured loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,297 | 402 | 1,297 | 402 | 535 |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual including restructured loans | Construction and land development | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,031 | 402 | 1,031 | 402 | 252 |
Commercial non-owner occupied real estate | Acquired non-credit impaired non-accrual including restructured loans | Other commercial non-owner occupied real estate | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 266 | 266 | 283 | ||
Commercial owner occupied real estate loan | Non acquired non-accrual loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 4,062 | 1,063 | 4,062 | 1,063 | 1,068 |
Commercial owner occupied real estate loan | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 8,401 | 5,507 | 8,401 | 5,507 | 5,085 |
Recorded Investment With No Allowance | 5,544 | 2,668 | 5,544 | 2,668 | 3,101 |
Gross Recorded Investment With Allowance | 1,591 | 1,883 | 1,591 | 1,883 | 1,041 |
Total Recorded Investment | 7,135 | 4,551 | 7,135 | 4,551 | 4,142 |
Related Allowance | 33 | 40 | 33 | 40 | 27 |
Average Investment In Impaired Loans | 6,288 | 4,650 | 5,638 | 5,096 | |
Interest Income Recognized | 129 | 81 | 290 | 228 | |
Commercial owner occupied real estate loan | Acquired non-credit impaired non-accrual including restructured loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 933 | 904 | 933 | 904 | 1,470 |
Consumer loans | Non acquired non-accrual loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 8,647 | 9,029 | 8,647 | 9,029 | 9,442 |
Consumer loans | Non acquired non-accrual loans | Home equity loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,273 | 2,623 | 1,273 | 2,623 | 2,333 |
Consumer loans | Non acquired non-accrual loans | Consumer Owner Occupied Loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 7,374 | 6,406 | 7,374 | 6,406 | 7,109 |
Consumer loans | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | Home equity loans | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 2,476 | 3,141 | 2,476 | 3,141 | 2,953 |
Recorded Investment With No Allowance | 1,087 | 1,135 | 1,087 | 1,135 | 1,129 |
Gross Recorded Investment With Allowance | 1,258 | 1,891 | 1,258 | 1,891 | 1,697 |
Total Recorded Investment | 2,345 | 3,026 | 2,345 | 3,026 | 2,826 |
Related Allowance | 121 | 171 | 121 | 171 | 142 |
Average Investment In Impaired Loans | 2,391 | 3,085 | 2,586 | 3,019 | |
Interest Income Recognized | 36 | 30 | 100 | 95 | |
Consumer loans | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | Consumer Owner Occupied Loans | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 5,441 | 5,914 | 5,441 | 5,914 | 7,291 |
Recorded Investment With No Allowance | 3,610 | 4,478 | 3,610 | 4,478 | 4,992 |
Gross Recorded Investment With Allowance | 1,517 | 942 | 1,517 | 942 | 1,769 |
Total Recorded Investment | 5,127 | 5,420 | 5,127 | 5,420 | 6,761 |
Related Allowance | 33 | 28 | 33 | 28 | 41 |
Average Investment In Impaired Loans | 5,346 | 5,524 | 5,944 | 5,527 | |
Interest Income Recognized | 36 | 32 | 129 | 120 | |
Consumer loans | Acquired non-credit impaired non-accrual including restructured loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 4,773 | 7,309 | 4,773 | 7,309 | 8,376 |
Consumer loans | Acquired non-credit impaired non-accrual including restructured loans | Home equity loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 3,034 | 4,901 | 3,034 | 4,901 | 4,512 |
Consumer loans | Acquired non-credit impaired non-accrual including restructured loans | Consumer Owner Occupied Loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,739 | 2,408 | 1,739 | 2,408 | 3,864 |
Commercial and industrial | Non acquired non-accrual loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 2,565 | 957 | 2,565 | 957 | 647 |
Commercial and industrial | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 5,779 | 1,462 | 5,779 | 1,462 | 1,332 |
Recorded Investment With No Allowance | 1,874 | 467 | 1,874 | 467 | 467 |
Gross Recorded Investment With Allowance | 3,439 | 942 | 3,439 | 942 | 824 |
Total Recorded Investment | 5,313 | 1,409 | 5,313 | 1,409 | 1,291 |
Related Allowance | 387 | 475 | 387 | 475 | 416 |
Average Investment In Impaired Loans | 3,993 | 1,622 | 3,302 | 1,282 | |
Interest Income Recognized | 123 | 8 | 209 | 43 | |
Commercial and industrial | Acquired non-credit impaired non-accrual including restructured loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 692 | 354 | 692 | 354 | 1,296 |
Other income producing property | Non acquired non-accrual loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 628 | 474 | 628 | 474 | 500 |
Other income producing property | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 2,489 | 3,165 | 2,489 | 3,165 | 3,117 |
Recorded Investment With No Allowance | 430 | 158 | 430 | 158 | 150 |
Gross Recorded Investment With Allowance | 1,666 | 2,772 | 1,666 | 2,772 | 2,722 |
Total Recorded Investment | 2,096 | 2,930 | 2,096 | 2,930 | 2,872 |
Related Allowance | 58 | 133 | 58 | 133 | 142 |
Average Investment In Impaired Loans | 2,080 | 3,085 | 2,484 | 3,034 | |
Interest Income Recognized | 14 | 32 | 68 | 120 | |
Other income producing property | Acquired non-credit impaired non-accrual including restructured loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 270 | 249 | 270 | 249 | 244 |
Consumer | Non acquired non-accrual loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,539 | 1,177 | 1,539 | 1,177 | 1,267 |
Consumer | Impaired non-acquired and acquired loans accounted under FASB ASC topic 310-20 | |||||
Loans and Allowance for Loan Losses | |||||
Unpaid Contractual Principal Balance | 145 | 284 | 145 | 284 | 211 |
Gross Recorded Investment With Allowance | 91 | 213 | 91 | 213 | 188 |
Total Recorded Investment | 91 | 213 | 91 | 213 | 188 |
Related Allowance | 2 | 6 | 2 | 6 | 2 |
Average Investment In Impaired Loans | 95 | 235 | 140 | 226 | |
Consumer | Acquired non-credit impaired non-accrual including restructured loans | |||||
Loans and Allowance for Loan Losses | |||||
Nonaccrual loans | 1,631 | 1,580 | $ 1,631 | 1,580 | 1,568 |
Restructured loans | ASC Topic 31020 Loans | |||||
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 | $ 544 | $ 1,065 | $ 544 | $ 1,065 | $ 648 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)property | Sep. 30, 2018USD ($)property | |
OREO | ||
Balance at the beginning of the period | $ 11,410 | $ 11,203 |
Additions | 9,610 | 11,976 |
Write-downs | (727) | (1,185) |
Sold | (6,878) | (10,085) |
Balance at the end of the period | $ 13,415 | $ 12,119 |
Number of properties held | property | 72 | 84 |
Residential real estate consumer mortgage loans in foreclosure, carrying value | $ 4,500 | |
Park Sterling Corporation | ||
OREO | ||
Acquired | $ 210 | |
Residential real estate | ||
OREO | ||
Other Real Estate In Foreclosure | $ 2,100 |
Leases (Details)
Leases (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Right to use asset | $ 89,905 |
Lease liabilities | $ 91,039 |
Existence of option to extend | true |
Renewal term | 24 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 25 years |
Leases - Lease cost and other i
Leases - Lease cost and other information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Lease Expense Components: | ||
Operating lease expense | $ 2,241 | $ 6,560 |
Short-term lease expense | 120 | 396 |
Variable lease expense | 151 | 337 |
Total lease expense | 2,512 | 7,293 |
Supplemental Cash Flow Information Related to Leases: | ||
Cash paid for amounts included in the measurement of lease liabilities - operating leases | 1,996 | 5,804 |
ROU assets obtained in exchange for new lease liabilities during first quarter 2019- operating leases | $ 5,289 | $ 10,239 |
Weighted - average remaining lease term (years) - Operating leases | 14 years 3 months 18 days | 14 years 3 months 18 days |
Weighted - average discount rate - Operating leases | 3.90% | 3.90% |
Supplemental Balance Sheet Information Related to Leases | ||
Operating lease ROU assets | $ 89,905 | $ 89,905 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Operating lease liabilities | $ 91,039 | $ 91,039 |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities |
Leases - Maturities Analysis (D
Leases - Maturities Analysis (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Maturity Analysis of Lease Liabilities: | |
2019 (excluding the nine months ended September 30, 2019) | $ 2,279 |
2020 | 7,887 |
2021 | 8,359 |
2022 | 8,475 |
2023 | 8,548 |
Thereafter | 85,009 |
Total | 120,557 |
Less: Imputed Interest | (29,518) |
Lease liabilities | $ 91,039 |
Deposits - Total deposits (Deta
Deposits - Total deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Deposits | |||
Certificates of deposit | $ 1,709,175 | $ 1,775,095 | $ 1,820,122 |
Interest-bearing demand deposits | 5,682,129 | 5,407,175 | 5,195,871 |
Non-interest bearing demand deposits | 3,307,532 | 3,061,769 | 3,157,478 |
Savings deposits | 1,317,705 | 1,399,815 | 1,433,724 |
Other time deposits | 7,246 | 3,079 | 6,680 |
Total deposits | $ 12,023,787 | $ 11,646,933 | $ 11,613,875 |
Deposits - Certificates of depo
Deposits - Certificates of deposits and Scheduled maturities of time deposits (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Deposits | |||
Aggregate amounts of certificates of deposits in denominations of $250,000 or more | $ 316.4 | $ 320 | $ 337.2 |
Traditional, out-of-market brokered deposits | $ 1.3 | $ 7.6 | $ 12 |
Retirement Plans - Non-contribu
Retirement Plans - Non-contributory defined benefit pension plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2019 | Sep. 30, 2019 | |
Retirement Plans | ||
Pension plan termination expense | $ 9,500 | $ 9,526 |
Recognition of pre-tax losses from pension plan | (7,700) | |
Write-off of pension plan asset | $ 1,800 | |
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 | |
Non-contributory defined benefit pension plan | Employee hired on or after January 1, 2006 | ||
Retirement Plans | ||
Requisite age of employees for receiving retirement benefits under the new benefit formula | 45 years | |
Requisite age of employees for receiving retirement benefits under the new benefit formula | 5 years |
Retirement Plans - Safe Harbor
Retirement Plans - Safe Harbor plan (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Mar. 31, 2019 | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018 | |
Employees' savings plan | ||||||
Matching contribution by the company (as a percent) | 100.00% | |||||
Discretionary matching contribution | 0.75 | 2 | ||||
Expenses recognized under 401(K) plan | $ 1.7 | $ 1.8 | $ 4.7 | $ 5.1 | ||
Minimum | ||||||
Employees' savings plan | ||||||
Age of employees to be eligible to participate in the defined contribution plan | 21 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 | 4.00% |
Earnings Per Share - Computatio
Earnings Per Share - Computation of basic and diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic earnings per common share: | ||||
Net income | $ 51,565 | $ 47,082 | $ 137,392 | $ 129,867 |
Weighted-average basic common shares | 34,057 | 36,645 | 34,859 | 36,657 |
Basic earnings per common share (in dollars per share) | $ 1.51 | $ 1.28 | $ 3.94 | $ 3.53 |
Diluted earnings per share: | ||||
Net income | $ 51,565 | $ 47,082 | $ 137,392 | $ 129,867 |
Weighted-average basic common shares | 34,057 | 36,645 | 34,859 | 36,657 |
Effect of dilutive securities (in shares) | 243 | 248 | 210 | 252 |
Weighted-average dilutive shares | 34,300 | 36,893 | 35,069 | 36,909 |
Diluted earnings per common share (in dollars per share) | $ 1.50 | $ 1.28 | $ 3.92 | $ 3.52 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of diluted EPS under Treasury method (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share | ||||
Number of shares | 62,235 | 62,235 | 63,313 | 62,235 |
Range of exercise prices, low end of range (in dollars per share) | $ 87.30 | $ 87.30 | $ 69.48 | $ 87.30 |
Range of exercise prices, high end of range (in dollars per share) | $ 91.35 | $ 91.35 | $ 91.35 | $ 91.35 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | 92 Months Ended |
Mar. 31, 2019shares | Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($)$ / sharesshares | |
Aggregate Intrinsic Value | |||
Outstanding at the end of the period | $ | $ 2,428 | $ 2,428 | |
Exercisable at the end of the period | $ | $ 2,354 | $ 2,354 | |
Stock Options | |||
Number of shares | |||
Outstanding at the beginning of the period (in shares) | 213,866 | ||
Exercised (in shares) | (36,978) | ||
Outstanding at the end of the period (in shares) | 176,888 | 176,888 | |
Exercisable at the end of the period (in shares) | 131,216 | 131,216 | |
Weighted-Average Exercise Price | |||
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 61.28 | ||
Exercised (in dollars per share) | $ / shares | 33.26 | ||
Outstanding at the end of the period (in dollars per share) | $ / shares | 67.14 | $ 67.14 | |
Exercisable at the end of the period (in dollars per share) | $ / shares | 60.12 | $ 60.12 | |
Weighted-average fair value of options granted during the year (in dollars per share) | $ / shares | $ 0 | ||
Weighted-Average Remaining Contractual Life | |||
Outstanding at the end of the period | 5 years 7 months 6 days | ||
Exercisable at the end of the period | 4 months 26 days | ||
Restricted Stock | Maximum | |||
Share-Based Compensation | |||
Vesting period | 12 months | ||
Restricted Stock | Minimum | Employee | |||
Share-Based Compensation | |||
Vesting period | 4 years | ||
2012 plan | |||
Share-Based Compensation | |||
Options granted (in shares) | 0 | ||
2019 plan | |||
Share-Based Compensation | |||
Number of shares registered | 1,000,000 | 1,000,000 | |
2004 plan | |||
Number of shares | |||
Granted (in shares) | 0 | ||
Plan 2004 And 2012 | Incentive stock options | |||
Share-Based Compensation | |||
Vesting percentage | 25.00% | ||
Expiration period | 10 years | ||
Plan 2004 And 2012 | Incentive stock options | Maximum | |||
Share-Based Compensation | |||
Vesting period | 4 years |
Share-Based Compensation - Weig
Share-Based Compensation - Weighted average assumptions used in valuing options (Details) | 9 Months Ended | |
Sep. 30, 2019USD ($)$ / sharesshares | Sep. 30, 2018 | |
Stock Options | ||
Share-Based Compensation | ||
Shares issued (in shares) | 0 | |
Weighted-average assumptions | ||
Dividend yield (as a percent) | 1.46% | |
Expected life | 8 years 6 months | |
Expected volatility (as a percent) | 28.00% | |
Risk-free interest rate (as a percent) | 2.54% | |
Additional disclosures | ||
Total unrecognized compensation cost related to non vested stock option grants | $ | $ 880,000 | |
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 3 days | |
Total fair value of shares vested during the period | $ | $ 799,000 | |
Restricted Stock | ||
Additional disclosures | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 4 months 13 days | |
Total fair value of shares vested during the period | $ | $ 2,600,000 | |
Restricted Stock Activity and RSUs | ||
Nonvested at the beginning of the period (in shares) | 104,419 | |
Granted (in shares) | 8,934 | |
Vested (in shares) | (33,509) | |
Forfeited (in shares) | (2,332) | |
Nonvested at the end of the period (in shares) | 77,512 | |
Weighted-Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 62.45 | |
Granted (in dollars per share) | $ / shares | 73.34 | |
Vested (in dollars per share) | $ / shares | 73.78 | |
Forfeited (in dollars per share) | $ / shares | 73.89 | |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 58.47 | |
Additional disclosures | ||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ | $ 1,500,000 | |
Restricted Stock | Maximum | ||
Additional disclosures | ||
Vesting period | 12 months | |
Restricted Stock Units | ||
Additional disclosures | ||
Weighted-average period over which unrecognized compensation cost is expected to be recognized | 1 year 9 months 29 days | |
Total fair value of shares vested during the period | $ | $ 2,900,000 | |
Restricted Stock Activity and RSUs | ||
Nonvested at the beginning of the period (in shares) | 200,540 | |
Granted (in shares) | 153,060 | |
Forfeited (in shares) | (2,154) | |
Nonvested at the end of the period (in shares) | 351,446 | |
Weighted-Average Grant-Date Fair Value | ||
Nonvested at the beginning of the period (in dollars per share) | $ / shares | $ 85.10 | |
Granted (in dollars per share) | $ / shares | 67.86 | |
Forfeited (in dollars per share) | $ / shares | 87.36 | |
Nonvested at the end of the period (in dollars per share) | $ / shares | $ 77.58 | |
Additional disclosures | ||
Total unrecognized compensation cost related to nonvested restricted stock and RSUs granted | $ | $ 11,800,000 | |
Target RSU award level (as a percent) | 83.30% | |
Employee Stock Purchase Plan | ||
Number Of Stock Issued Pursuant To Restricted Stock Units | 44,599 | |
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 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Billions | Sep. 30, 2019USD ($) |
Commitments and Contingent Liabilities | |
Commitments to extend credit and standby letters of credit | $ 2.9 |
Fair Value - Assets and liabili
Fair Value - Assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Assets | |||
Derivative financial instruments | $ 21,700 | ||
Securities available for sale | 1,813,134 | $ 1,551,281 | $ 1,517,067 |
Liabilities | |||
Derivative financial instruments | 23,500 | ||
Government-sponsored entities debt | |||
Assets | |||
Securities available for sale | 40,967 | 52,545 | 48,251 |
State and municipal obligations | |||
Assets | |||
Securities available for sale | 188,682 | 206,224 | 200,768 |
Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Mortgage servicing rights | 28,674 | 36,056 | 34,727 |
Changes in fair value of assets | |||
Changes in hierarchy classifications of Level 3 liabilities | 0 | ||
Recurring basis | |||
Assets | |||
Derivative financial instruments | 24,402 | 10,015 | 5,090 |
Loans held for sale | 87,393 | 33,752 | 22,925 |
Securities available for sale | 1,813,134 | 1,551,281 | 1,517,067 |
Mortgage servicing rights | 28,674 | 36,056 | 34,727 |
Fair value of Assets, Total | 1,953,603 | 1,631,104 | 1,579,809 |
Liabilities | |||
Derivative financial instruments | 43,373 | 10,035 | 4,421 |
Recurring basis | Government-sponsored entities debt | |||
Assets | |||
Securities available for sale | 40,967 | 52,545 | 48,251 |
Recurring basis | State and municipal obligations | |||
Assets | |||
Securities available for sale | 188,682 | 206,224 | 200,768 |
Recurring basis | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 1,583,485 | 1,292,512 | 1,268,048 |
Recurring basis | Significant Other Observable Inputs (Level 2) | |||
Assets | |||
Derivative financial instruments | 24,402 | 10,015 | 5,090 |
Loans held for sale | 87,393 | 33,752 | 22,925 |
Securities available for sale | 1,813,134 | 1,551,281 | 1,517,067 |
Fair value of Assets, Total | 1,924,929 | 1,595,048 | 1,545,082 |
Liabilities | |||
Derivative financial instruments | 43,373 | 10,035 | 4,421 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government-sponsored entities debt | |||
Assets | |||
Securities available for sale | 40,967 | 52,545 | 48,251 |
Recurring basis | Significant Other Observable Inputs (Level 2) | State and municipal obligations | |||
Assets | |||
Securities available for sale | 188,682 | 206,224 | 200,768 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | |||
Assets | |||
Securities available for sale | 1,583,485 | 1,292,512 | 1,268,048 |
Recurring basis | Significant Unobservable Inputs (Level 3) | |||
Assets | |||
Mortgage servicing rights | 28,674 | 36,056 | 34,727 |
Fair value of Assets, Total | 28,674 | 36,056 | $ 34,727 |
Changes in fair value of assets | |||
Fair value of assets at the beginning of the period | 34,727 | 31,119 | |
Servicing assets that resulted from transfers of financial assets | 4,506 | 4,580 | |
Change in unrealized loss recognized in other comprehensive income | 0 | 0 | |
Changes in fair value assets due to valuation inputs or assumptions | (7,218) | 3,628 | |
Changes in fair value due to decay | 3,341 | 3,271 | |
Fair value of assets at the end of the period | 28,674 | 36,056 | |
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) - Nonrecurring basis $ in Thousands | Sep. 30, 2019USD ($)item | Dec. 31, 2018USD ($)item | Sep. 30, 2018USD ($)item |
OREO | Fair Value | |||
Fair Value | |||
Other Real Estate | $ 13,415 | $ 11,410 | $ 12,119 |
Non-acquired impaired loans | Fair Value | |||
Fair Value | |||
Other Real Estate | $ 10,620 | $ 13,164 | $ 6,990 |
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 | us-gaap:MarketApproachValuationTechniqueMember |
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember | us-gaap:MeasurementInputDiscountRateMember |
Significant Unobservable Inputs (Level 3) | Impaired loans | Weighted average | |||
Quantitative Information about Level 3 Fair Value Measurements | |||
Discount rate (as a percent) | item | 0.02 | 0.03 | 0.03 |
Significant Unobservable Inputs (Level 3) | OREO | |||
Fair Value | |||
Other Real Estate | $ 13,415 | $ 11,410 | $ 12,119 |
Quantitative Information about Level 3 Fair Value Measurements | |||
Long-term Debt, Valuation Technique [Extensible List] | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember | us-gaap:MarketApproachValuationTechniqueMember |
Long-term Debt, Measurement Input [Extensible List] | us-gaap:MeasurementInputCostToSellMember | us-gaap:MeasurementInputCostToSellMember | us-gaap:MeasurementInputCostToSellMember |
Significant Unobservable Inputs (Level 3) | OREO | Weighted average | |||
Quantitative Information about Level 3 Fair Value Measurements | |||
Discount rate (as a percent) | item | 0.25 | 0.23 | 0.24 |
Significant Unobservable Inputs (Level 3) | Non-acquired impaired loans | |||
Fair Value | |||
Other Real Estate | $ 10,620 | $ 13,164 | $ 6,990 |
Fair Value - Estimated fair val
Fair Value - Estimated fair value and related carrying amount, of the Company's financial instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financial assets: | |||
Loans held for sale | $ 87,393 | $ 33,752 | $ 22,925 |
Financial liabilities: | |||
Federal Funds Purchased and Securities Sold under Agreements to Repurchase. | 269,072 | 279,698 | 270,649 |
Increase (Decrease) in Loans Held-for-sale | 280,684 | 283,331 | |
Other borrowings | 815,771 | 115,919 | 266,084 |
Carrying Amount | |||
Financial assets: | |||
Cash and cash equivalents | 719,194 | 307,309 | 408,983 |
Investment securities | 1,862,258 | 1,571,010 | 1,542,671 |
Loans held for sale | 87,393 | 33,752 | 22,925 |
Loans, net of allowance for loan losses (1) | 11,229,892 | 10,855,344 | 10,962,037 |
Accrued interest receivable | 36,131 | 34,808 | 35,997 |
Mortgage servicing rights | 28,674 | 36,056 | 34,727 |
Interest rate swap - non-designated hedge | 21,700 | 9,268 | 3,824 |
Other derivative financial instruments (mortgage banking related) | 2,702 | 747 | 1,267 |
Financial liabilities: | |||
Deposits | 12,023,787 | 11,613,875 | 11,646,933 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase. | 269,072 | 279,698 | 270,649 |
Other borrowings | 815,771 | 115,919 | 266,084 |
Accrued interest payable | 5,036 | 4,279 | 4,719 |
Interest rate swap - non-designated hedge | 23,723 | 9,460 | 4,373 |
Interest rate swap - cash flow hedge | 19,564 | 82 | 48 |
Other derivative financial instruments (Mortgage banking related) | 86 | 493 | |
Fair Value | |||
Financial assets: | |||
Cash and cash equivalents | 719,194 | 307,309 | 408,983 |
Investment securities | 1,862,258 | 1,571,010 | 1,542,671 |
Loans held for sale | 87,393 | 33,752 | 22,925 |
Loans, net of allowance for loan losses (1) | 11,259,351 | 10,640,774 | 10,613,571 |
Accrued interest receivable | 36,131 | 34,808 | 35,997 |
Mortgage servicing rights | 28,674 | 36,056 | 34,727 |
Interest rate swap - non-designated hedge | 21,700 | 9,268 | 3,824 |
Other derivative financial instruments (mortgage banking related) | 2,702 | 747 | 1,267 |
Financial liabilities: | |||
Deposits | 11,302,479 | 10,617,021 | 10,561,394 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase. | 269,072 | 279,698 | 270,649 |
Other borrowings | 818,294 | 119,017 | 269,134 |
Accrued interest payable | 5,036 | 4,279 | 4,719 |
Interest rate swap - non-designated hedge | 23,723 | 9,460 | 4,373 |
Interest rate swap - cash flow hedge | 19,564 | 82 | 48 |
Other derivative financial instruments (Mortgage banking related) | 86 | 493 | |
Commitments to extend credit | Fair Value | |||
Financial liabilities: | |||
Commitments to extend credit | 7,622 | (56,732) | (88,424) |
Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Financial assets: | |||
Cash and cash equivalents | 719,194 | 307,309 | 408,983 |
Investment securities | 49,124 | 19,229 | 25,604 |
Significant Other Observable Inputs (Level 2) | |||
Financial assets: | |||
Investment securities | 1,813,134 | 1,551,781 | 1,517,067 |
Loans held for sale | 87,393 | 33,752 | 22,925 |
Accrued interest receivable | 7,528 | 6,419 | 6,908 |
Interest rate swap - non-designated hedge | 21,700 | 9,268 | 3,824 |
Other derivative financial instruments (mortgage banking related) | 2,702 | 747 | 1,267 |
Financial liabilities: | |||
Deposits | 11,302,479 | 10,617,021 | 10,561,394 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase. | 269,072 | 279,698 | 270,649 |
Other borrowings | 818,294 | 119,017 | 269,134 |
Accrued interest payable | 5,036 | 4,279 | 4,719 |
Interest rate swap - non-designated hedge | 23,723 | 9,460 | 4,373 |
Interest rate swap - cash flow hedge | 19,564 | 82 | 48 |
Other derivative financial instruments (Mortgage banking related) | 86 | 493 | |
Significant Other Observable Inputs (Level 2) | Commitments to extend credit | |||
Financial liabilities: | |||
Commitments to extend credit | 7,622 | (56,732) | (88,424) |
Significant Unobservable Inputs (Level 3) | |||
Financial assets: | |||
Loans, net of allowance for loan losses (1) | 11,259,351 | 10,640,774 | 10,613,571 |
Accrued interest receivable | 28,603 | 28,389 | 29,089 |
Mortgage servicing rights | $ 28,674 | $ 36,056 | $ 34,727 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | $ (24,881) | |||
Other comprehensive income (loss), net of tax | $ 1,404 | $ (8,438) | 27,751 | $ (31,135) |
Balance at the end of the period | 2,870 | (44,509) | 2,870 | (44,509) |
Benefit Plans | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | (297) | (7,456) | (6,450) | (5,998) |
Amounts reclassified from accumulated other comprehensive income (loss) | 151 | 6,153 | 453 | |
Other comprehensive income (loss), net of tax | 151 | 6,153 | 453 | |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (1,760) | |||
Balance at the end of the period | (297) | (7,305) | (297) | (7,305) |
Unrealized Gains and Losses on Securities Available for Sale | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | 12,944 | (28,526) | (18,394) | (4,278) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 5,824 | (8,624) | 34,732 | (32,224) |
Amounts reclassified from accumulated other comprehensive income (loss) | (341) | 9 | 2,089 | 508 |
Other comprehensive income (loss), net of tax | 5,483 | (8,615) | 36,821 | (31,716) |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (1,147) | |||
Balance at the end of the period | 18,427 | (37,141) | 18,427 | (37,141) |
Gains and Losses on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | (11,181) | (89) | (37) | (151) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (3,891) | (1) | (14,766) | 34 |
Amounts reclassified from accumulated other comprehensive income (loss) | (188) | 27 | (457) | 94 |
Other comprehensive income (loss), net of tax | (4,079) | 26 | (15,223) | 128 |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (40) | |||
Balance at the end of the period | (15,260) | (63) | (15,260) | (63) |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Balance at the beginning of the period | 1,466 | (36,071) | (24,881) | (10,427) |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 1,933 | (8,625) | 19,966 | (32,190) |
Amounts reclassified from accumulated other comprehensive income (loss) | (529) | 187 | 7,785 | 1,055 |
Other comprehensive income (loss), net of tax | 1,404 | (8,438) | 27,751 | (31,135) |
AOCI reclassification to retained earnings from adoption of ASU 2018-02 | (2,947) | |||
Balance at the end of the period | $ 2,870 | $ (44,509) | $ 2,870 | $ (44,509) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Interest expense | $ (22,628) | $ (15,271) | $ (65,554) | $ (36,516) |
Provision for income taxes | (12,998) | (9,823) | (34,455) | (32,752) |
Net income | 51,565 | 47,082 | 137,392 | 129,867 |
Amount Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Net income | (529) | 187 | 7,785 | 1,055 |
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 | (241) | 35 | (585) | 121 |
Provision for income taxes | 53 | (8) | 128 | (27) |
Net income | (188) | 27 | (457) | 94 |
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 | (437) | 11 | 2,679 | 652 |
Provision for income taxes | 96 | (2) | (590) | (144) |
Net income | $ (341) | 9 | 2,089 | 508 |
Benefit Plans | Amount Reclassified from Accumulated Other Comprehensive Loss | ||||
Reclassifications out of accumulated other comprehensive income, net of tax | ||||
Salaries and employee benefits | 194 | 7,888 | 581 | |
Provision for income taxes | (43) | (1,735) | (128) | |
Net income | $ 151 | $ 6,153 | $ 453 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2009 | |
Derivative Financial Instruments | ||||||||
Notional Amount | $ 2,001,184,000 | $ 841,724,000 | $ 2,001,184,000 | $ 841,724,000 | ||||
Estimated Fair Value Gain | 24,402,000 | 10,015,000 | ||||||
Estimated Fair Value Loss | $ 43,373,000 | 10,035,000 | ||||||
Variable rate basis, variable rate receivable on notional amount | three-month LIBOR | |||||||
After-tax unrealized gain on cash flow hedge in other comprehensive income | 4,100,000 | 26,000 | $ 15,200,000 | 128,000 | ||||
Ineffectiveness in the cash flow hedge | 0 | 0 | 0 | 0 | ||||
Gain or loss recorded | 0 | 0 | 0 | 0 | ||||
Interest Rate Derivative Assets, at Fair Value | 21,700,000 | 21,700,000 | ||||||
Interest Rate Derivative Liabilities, at Fair Value | 23,500,000 | 23,500,000 | ||||||
Interest Rate Derivatives, at Fair Value, Net | 1,800,000 | 226,000 | 1,800,000 | 226,000 | ||||
Estimated gain (loss) on fair value of open contracts related to mortgage servicing rights | 2,100,000 | (392,000) | ||||||
Junior Subordinated Debt | ||||||||
Derivative Financial Instruments | ||||||||
Collateral provided | 300,000 | 300,000 | ||||||
FHLB Advances | ||||||||
Derivative Financial Instruments | ||||||||
Collateral provided | 28,200,000 | 28,200,000 | ||||||
Other Liabilities. | ||||||||
Derivative Financial Instruments | ||||||||
Cash flow hedge liability | 19,600,000 | 82,000 | 19,600,000 | 82,000 | ||||
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 | 148,749,000 | 74,898,000 | 148,749,000 | 74,898,000 | $ 50,442,000 | |||
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 | 111,561,000 | 56,174,000 | 111,561,000 | 56,174,000 | 37,832,000 | |||
Cash flow hedge | Borrower | ||||||||
Derivative Financial Instruments | ||||||||
Collateral provided | 64,000,000 | 64,000,000 | ||||||
Cash flow hedge | FHLB Advances - One | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 350,000,000 | |||||||
Outstanding advances | 350,000,000 | |||||||
Cash flow hedge | FHLB Advances - Two | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 150,000,000 | |||||||
Outstanding advances | 150,000,000 | |||||||
Cash flow hedge | FHLB Advances - Three | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 200,000,000 | |||||||
Interest rate contracts | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 1,000,000 | 684,300,000 | 1,000,000 | 684,300,000 | ||||
Mortgage servicing rights hedging | Non-designated hedges | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 134,000,000 | 63,500,000 | 134,000,000 | 63,500,000 | ||||
Mortgage servicing rights hedging | Non-designated hedges | Other Liabilities. | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 134,000,000 | 63,500,000 | 134,000,000 | 63,500,000 | ||||
Estimated Fair Value Loss | 86,000 | 493,000 | ||||||
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 | 2,071,000 | 392,000 | 2,071,000 | 392,000 | 705,000 | |||
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 | 145,625,000 | 83,068,000 | 145,625,000 | 83,068,000 | 54,533,000 | |||
Fair value of forward commitments | (631,000) | (355,000) | (631,000) | (355,000) | $ 621,000 | |||
Forward commitments | Non-designated hedges | Other Assets. | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 145,625,000 | 83,068,000 | 145,625,000 | 83,068,000 | ||||
Estimated Fair Value Gain | 2,702,000 | 747,000 | ||||||
Interest rate swap | LIBOR | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 8,000,000 | 8,000,000 | ||||||
Interest rate swap | Cash flow hedge | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 8,000,000 | |||||||
Interest rate swap | Cash flow hedge | FHLB Advances - One | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 350,000,000 | |||||||
Fixed rate payable on notional amount (as a percent) | 2.44% | |||||||
Interest rate swap | Cash flow hedge | FHLB Advances - Two | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 150,000,000 | |||||||
Fixed rate payable on notional amount (as a percent) | 2.21% | |||||||
Interest rate swap | Cash flow hedge | FHLB Advances - Three | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 200,000,000 | |||||||
Fixed rate payable on notional amount (as a percent) | 1.89% | |||||||
Interest rate swap | Cash flow hedge | Other Liabilities. | Counterparty | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 8,000,000 | 8,000,000 | ||||||
Estimated Fair Value Loss | 82,000 | |||||||
Interest rate swap | Cash flow hedge | Other Liabilities. | FHLB Advances | Counterparty | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 700,000,000 | 700,000,000 | ||||||
Estimated Fair Value Loss | $ 19,564,000 | |||||||
Interest rate swap | Cash flow hedge | LIBOR | ||||||||
Derivative Financial Instruments | ||||||||
Fixed rate payable on notional amount (as a percent) | 4.06% | 4.06% | ||||||
Interest rate swap | Cash flow hedge | LIBOR | FHLB Advances - One | ||||||||
Derivative Financial Instruments | ||||||||
Variable rate (as a percent) | 2.16% | 2.16% | ||||||
Interest rate swap | Cash flow hedge | LIBOR | FHLB Advances - Two | ||||||||
Derivative Financial Instruments | ||||||||
Variable rate (as a percent) | 2.10% | 2.10% | ||||||
Interest rate swap | Cash flow hedge | LIBOR | FHLB Advances - Three | ||||||||
Derivative Financial Instruments | ||||||||
Variable rate (as a percent) | 2.14% | 2.14% | ||||||
Interest rate swap | Fair Value Hedging | Counterparty | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 2,800,000 | $ 2,800,000 | ||||||
Interest rate swap | Fair Value Hedging | Other Assets and Other Liabilities | Counterparty | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 2,769,000 | 2,824,000 | 2,769,000 | 2,824,000 | ||||
Estimated Fair Value Gain | 33,000 | |||||||
Estimated Fair Value Loss | 260,000 | |||||||
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Borrower | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | 509,395,000 | 342,166,000 | 509,395,000 | 342,166,000 | ||||
Estimated Fair Value Gain | 21,700,000 | 193,000 | ||||||
Estimated Fair Value Loss | 63,000 | 9,460,000 | ||||||
Interest rate swap | Non-designated hedges | Other Assets and Other Liabilities | Counterparty | ||||||||
Derivative Financial Instruments | ||||||||
Notional Amount | $ 509,395,000 | $ 342,166,000 | 509,395,000 | 342,166,000 | ||||
Estimated Fair Value Gain | $ 9,042,000 | |||||||
Estimated Fair Value Loss | $ 23,400,000 |
Capital Ratios (Details)
Capital Ratios (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Capital ratios | ||||
Capital conversion buffer common equity Tier 1 of risk-weighted assets (as a percent) | 2.50% | |||
Common equity Tier 1 to risk-weighted assets | ||||
Actual, Capital Amount | $ 1,302,034 | $ 1,335,826 | $ 1,356,267 | |
Actual, Ratio (as a percent) | 11.22% | 12.05% | 12.30% | |
Minimum capital required, Ratio (as a percent) | 4.50% | |||
Required to be considered well capitalized, Capital Amount | $ 754,257 | $ 720,844 | $ 716,764 | |
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | 6.50% | |
Tier I capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 1,414,138 | $ 1,447,428 | $ 1,467,703 | |
Actual, Ratio (as a percent) | 12.19% | 13.05% | 13.31% | |
Minimum capital required, Ratio (as a percent) | 6.00% | 4.00% | ||
Required to be considered well capitalized, Capital Amount | $ 928,316 | $ 887,192 | $ 882,170 | |
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | 8.00% | 8.00% | |
Total capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 1,474,728 | $ 1,503,561 | $ 1,521,875 | |
Actual, Ratio (as a percent) | 12.71% | 13.56% | 13.80% | |
Minimum capital required, Ratio (as a percent) | 8.00% | |||
Required to be considered well capitalized, Capital Amount | $ 1,160,395 | $ 1,108,990 | $ 1,102,713 | |
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | 10.00% | 10.00% | |
Tier I capital to average assets (leverage ratio) | ||||
Actual, Capital Amount | $ 1,414,138 | $ 1,447,428 | $ 1,467,703 | |
Actual, Ratio (as a percent) | 9.72% | 10.65% | 10.82% | |
Minimum capital required, Ratio (as a percent) | 4.00% | |||
Required to be considered well capitalized, Capital Amount | $ 727,232 | $ 679,383 | $ 678,401 | |
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | 5.00% | 5.00% | |
Phase-In Schedule | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 812,276 | $ 706,981 | $ 702,980 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 6.38% | 6.38% | |
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 986,336 | $ 873,330 | $ 868,387 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 7.88% | 7.88% | |
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 1,218,415 | $ 1,095,128 | $ 1,088,929 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 9.88% | 9.88% | |
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 581,786 | $ 543,506 | $ 542,720 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | 4.00% | |
Fully Phased-In | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 812,276 | $ 776,293 | $ 771,899 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | 7.00% | |
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 986,336 | $ 942,642 | $ 937,306 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 8.50% | 8.50% | |
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 1,218,415 | $ 1,164,440 | $ 1,157,849 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 10.50% | 10.50% | |
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 581,786 | $ 543,506 | $ 542,720 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | 4.00% | |
South State Bank (the Bank) | ||||
Common equity Tier 1 to risk-weighted assets | ||||
Actual, Capital Amount | $ 1,392,599 | $ 1,427,764 | $ 1,449,326 | |
Actual, Ratio (as a percent) | 12.00% | 12.87% | 13.14% | |
Required to be considered well capitalized, Capital Amount | $ 754,263 | $ 720,902 | $ 716,834 | |
Required to be considered well capitalized, Ratio (as a percent) | 6.50% | 6.50% | 6.50% | |
Tier I capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 1,392,599 | $ 1,427,764 | $ 1,449,326 | |
Actual, Ratio (as a percent) | 12.00% | 12.87% | 13.14% | |
Required to be considered well capitalized, Capital Amount | $ 928,324 | $ 887,264 | $ 882,258 | |
Required to be considered well capitalized, Ratio (as a percent) | 8.00% | 8.00% | 8.00% | |
Total capital to risk-weighted assets | ||||
Actual, Capital Amount | $ 1,453,189 | $ 1,483,897 | $ 1,503,498 | |
Actual, Ratio (as a percent) | 12.52% | 13.38% | 13.63% | |
Required to be considered well capitalized, Capital Amount | $ 1,160,405 | $ 1,109,080 | $ 1,102,822 | |
Required to be considered well capitalized, Ratio (as a percent) | 10.00% | 10.00% | 10.00% | |
Tier I capital to average assets (leverage ratio) | ||||
Actual, Capital Amount | $ 1,392,599 | $ 1,427,764 | $ 1,449,326 | |
Actual, Ratio (as a percent) | 9.58% | 10.51% | 10.68% | |
Required to be considered well capitalized, Capital Amount | $ 727,060 | $ 679,234 | $ 678,219 | |
Required to be considered well capitalized, Ratio (as a percent) | 5.00% | 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 | $ 812,284 | $ 707,039 | $ 703,049 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 6.38% | 6.38% | |
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 986,345 | $ 873,401 | $ 868,472 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 7.88% | 7.88% | |
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 1,218,426 | $ 1,095,217 | $ 1,089,037 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 9.88% | 9.88% | |
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 581,648 | $ 543,387 | $ 542,575 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 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 | $ 812,284 | $ 776,356 | $ 771,975 | |
Minimum capital required, Ratio (as a percent) | 7.00% | 7.00% | 7.00% | |
Tier I capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 986,345 | $ 942,718 | $ 937,399 | |
Minimum capital required, Ratio (as a percent) | 8.50% | 8.50% | 8.50% | |
Total capital to risk-weighted assets | ||||
Minimum capital required, Capital Amount | $ 1,218,426 | $ 1,164,534 | $ 1,157,963 | |
Minimum capital required, Ratio (as a percent) | 10.50% | 10.50% | 10.50% | |
Tier I capital to average assets (leverage ratio) | ||||
Minimum capital required, Capital Amount | $ 581,648 | $ 543,387 | $ 542,575 | |
Minimum capital required, Ratio (as a percent) | 4.00% | 4.00% | 4.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Goodwill and Other Intangible Assets | |||
Goodwill | $ 1,002,900 | $ 1,002,900 | $ 1,002,900 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of gross carrying amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Other intangible assets | |||||
Gross carrying amount | $ 119,501 | $ 121,736 | $ 119,501 | $ 121,736 | $ 121,736 |
Accumulated amortization | (66,418) | (55,299) | (66,418) | (55,299) | (58,836) |
Net carrying amount | 53,083 | 66,437 | 53,083 | 66,437 | 62,900 |
Amortization expense | 3,268 | 3,537 | 9,817 | 10,672 | |
Estimated amortization expense for other intangibles for each of the next five quarters | |||||
December 31, 2019 | 3,267 | 3,267 | |||
March 31, 2020 | 3,007 | 3,007 | |||
June 30, 2020 | 2,995 | 2,995 | |||
September 30, 2020 | 2,945 | 2,945 | |||
December 31, 2020 | 2,921 | 2,921 | |||
Thereafter | 37,948 | 37,948 | |||
Net carrying amount | $ 53,083 | $ 66,437 | $ 53,083 | $ 66,437 | $ 62,900 |
Minimum | |||||
Other intangible assets | |||||
Estimated useful lives | 2 years | ||||
Maximum | |||||
Other intangible assets | |||||
Estimated useful lives | 15 years |
Loan Servicing, Mortgage Orig_3
Loan Servicing, Mortgage Origination, and Loans Held for Sale (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | |
MSRs | ||||||||
Changes in the fair value of MSRs and its offsetting hedge. | ||||||||
Increase (decrease) in fair value of MSRs | $ (2,294,000) | $ 683,000 | $ (7,218,000) | $ 3,628,000 | ||||
Decay of MSRs | (1,312,000) | (1,201,000) | (3,341,000) | (3,271,000) | ||||
Gains (loss) related to derivatives | 1,476,000 | (559,000) | 5,415,000 | (2,452,000) | ||||
Net effect on statements of income | (2,130,000) | (1,077,000) | $ (5,144,000) | $ (2,095,000) | ||||
Characteristics and sensitivity analysis of the MSR | ||||||||
Composition of residential loans serviced for others | 100.00% | 100.00% | 100.00% | |||||
Weighted average life (in years) | 6 years 1 month 6 days | 8 years 8 months 1 day | 7 years 10 months 17 days | |||||
Constant Prepayment rate (CPR) (as a percent) | 11.40% | 6.00% | 7.30% | |||||
Weighted average discount rate (as a percent) | 9.40% | 9.40% | 9.40% | |||||
Effect on fair value due to change in interest rates: | ||||||||
25 basis point increase | $ 2,398,000 | $ 1,504,000 | $ 816,000 | |||||
50 basis point increase | 4,390,000 | 2,740,000 | 1,423,000 | |||||
25 basis point decrease | (2,862,000) | (1,981,000) | (1,261,000) | |||||
50 basis point decrease | (5,999,000) | $ (4,421,000) | (2,892,000) | |||||
Custodial escrow balances maintained in connection with the loan servicing | $ 33,700,000 | $ 31,300,000 | ||||||
Fixed-rate mortgage loans | ||||||||
Characteristics and sensitivity analysis of the MSR | ||||||||
Composition of residential loans serviced for others | 99.80% | 99.80% | 99.80% | |||||
Adjustable-rate mortgage loans | ||||||||
Characteristics and sensitivity analysis of the MSR | ||||||||
Composition of residential loans serviced for others | 0.20% | 0.20% | 0.20% | |||||
First Financial Holdings, Inc. ("First Financial") | ||||||||
Loans held for sale, loan servicing and mortgage origination | ||||||||
Residential mortgages serviced for others | $ 3,100,000,000 | $ 3,100,000,000 | $ 3,000,000,000 | |||||
Contractually specified servicing fees earned | 1,900,000 | 1,900,000 | $ 5,800,000 | $ 5,700,000 | ||||
First Financial Holdings, Inc. ("First Financial") | MSRs | ||||||||
Loans held for sale, loan servicing and mortgage origination | ||||||||
Mortgage servicing rights | 28,700,000 | 36,100,000 | 28,700,000 | 36,100,000 | $ 34,700,000 | $ 28,700,000 | $ 34,700,000 | $ 36,100,000 |
Analysis of the activity in the MSRs | ||||||||
Balance at beginning of the period | 34,700,000 | |||||||
Balance at end of period | $ 28,700,000 | $ 36,100,000 | $ 28,700,000 | $ 36,100,000 | $ 34,700,000 |
Loan Servicing, Mortgage Orig_4
Loan Servicing, Mortgage Origination, and Loans Held for Sale - Mandatory cash forwards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||||
Loan sales | $ 216,100 | $ 168,300 | $ 517,900 | $ 496,900 | |
Loan securitizations and loan sales | $ 175,900 | $ 125,500 | $ 412,400 | $ 378,500 | |
Percentage of loan securitizations and loan sales | 81.40% | 74.50% | 79.60% | 76.20% | |
Loans held for sale | $ 87,393 | $ 33,752 | $ 87,393 | $ 33,752 | $ 22,925 |
Residential mortgage loans to be sold in secondary market | |||||
Mortgage loan securitizations, mandatory cash forwards, and whole loan sales | |||||
Loans held for sale | $ 87,400 | $ 33,800 | $ 87,400 | $ 33,800 | $ 22,900 |
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 |
Investments in Qualified Affo_2
Investments in Qualified Affordable Housing Projects (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Investment In Qualified Affordable Housing Projects. | ||
Tax credits and other tax benefits | $ 4.7 | $ 3.6 |
Amortization | 4.9 | 3.1 |
Carrying value | 78.1 | 42.5 |
Original investment value | 96.9 | 96.9 |
Funding obligation | 43.1 | $ 22.1 |
Amount repaid | $ 0 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Secured Debt, Repurchase Agreements | |||
Carrying amount of securities sold under repurchase agreements with customers | $ 235.5 | $ 205.3 | $ 215.3 |
Carrying amount of the securities pledged to collateralize repurchase agreements | $ 235.5 | $ 205.3 | $ 215.3 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Subsequent events | ||||||
Cost of shares repurchased | $ 340 | $ 290 | $ 2,303 | $ 2,016 | ||
2019 Stock Repurchase Program | ||||||
Subsequent events | ||||||
Shares authorized under repurchase program | 2,000,000 | |||||
Number of shares repurchased | 1,000,000 | |||||
Subsequent event | 2019 Stock Repurchase Program | ||||||
Subsequent events | ||||||
Number of shares repurchased | 165,000 | |||||
Share Price | $ 74.88 | |||||
Cost of shares repurchased | $ 12,400 | |||||
Additional shares available for repurchase | 835,000 |