☒ |
or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | ||||||
Part | Item Number | Section | Page Number | |||
I | ||||||
1 | ||||||
1A | ||||||
1B | ||||||
2 | ||||||
3 | ||||||
4 | ||||||
II | ||||||
5 | ||||||
6 | ||||||
7 | ||||||
7A | ||||||
8 | ||||||
Consolidated Financial Statements and Related Notes | ||||||
9 | ||||||
9A | ||||||
9B | ||||||
III | ||||||
10 | ||||||
11 | ||||||
12 | ||||||
13 | ||||||
14 | ||||||
IV | ||||||
15 | ||||||
(a) (1) Financial Statements - See listing in Item 8 above | ||||||
(a) (2) Financial Statement Schedules - None required | ||||||
(a) (3) Exhibits | ||||||
16 | ||||||
2015 to 2019 | As of December 31, | ||||||||||||||||||||
Compound Annual Growth Rate | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Available-for-sale securities | 13% | $ | 741,634 | $ | 663,678 | $ | 703,581 | $ | 593,012 | $ | 460,542 | ||||||||||
Gross loans (net of unearned income) | 40 | 3,852,244 | 3,060,747 | 1,996,029 | 1,296,886 | 992,726 | |||||||||||||||
Total assets | 33 | 4,931,233 | 4,107,215 | 2,961,118 | 2,133,106 | 1,574,346 | |||||||||||||||
Noninterest-bearing deposits | 43 | 521,826 | 484,284 | 290,906 | 198,088 | 123,430 | |||||||||||||||
Total deposits | 32% | $ | 3,923,759 | $ | 3,208,097 | $ | 2,303,364 | $ | 1,694,301 | $ | 1,294,812 |
Basel III Minimum For Capital Adequacy Purposes | Basel III Additional Capital Conservation Buffer | Basel III Ratio With Capital Conservation Buffer | |||
Total risk based capital (total capital to risk-weighted assets) | 8.00% | 2.50% | 10.50% | ||
Tier 1 risk based capital (tier 1 to risk-weighted assets) | 6.00 | 2.50 | 8.50 | ||
Common equity tier 1 risk based capital (CET1 to risk-weighted assets) | 4.50 | 2.50 | 7.00 | ||
Tier 1 leverage ratio (tier 1 to average assets) | 4.00% | —% | 4.00% |
As of December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
Book value per share | $ | 11.58 | $ | 10.21 | $ | 8.38 | $ | 7.34 | $ | 6.61 |
Price per Share in 2019 | |||||||
High | Low | ||||||
Stock Price | $ | 15.50 | $ | 11.11 |
August 15, 2019 | December 31, 2019 | ||||||
CrossFirst Bankshares, Inc. | $ | 100.00 | $ | 99.45 | |||
Russell 2000 Index | $ | 100.00 | $ | 114.85 | |||
KBW Nasdaq Regional Banking Index | $ | 100.00 | $ | 116.94 | |||
SNL U.S. Bank $5 billion to $10 billion Index | $ | 100.00 | $ | 118.57 |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||
Interest income | $ | 216,218 | $ | 156,880 | $ | 97,816 | $ | 69,069 | $ | 54,116 | ||||||||||
Interest expense | 74,774 | 46,512 | 22,998 | 15,016 | 11,849 | |||||||||||||||
Net interest income | 141,444 | 110,368 | 74,818 | 54,053 | 42,267 | |||||||||||||||
Provision for loan losses | 29,900 | 13,500 | 12,000 | 6,500 | 5,975 | |||||||||||||||
Noninterest income | 8,715 | 6,083 | 3,679 | 3,407 | 2,365 | |||||||||||||||
Noninterest expense | 87,648 | 85,755 | 62,089 | 40,587 | 30,562 | |||||||||||||||
Income before taxes | 32,611 | 17,196 | 4,408 | 10,373 | 8,095 | |||||||||||||||
Income tax expense (benefit) | 4,138 | (2,394 | ) | (1,441 | ) | 62 | 626 | |||||||||||||
Net income | 28,473 | 19,590 | 5,849 | 10,311 | 7,469 | |||||||||||||||
Preferred stock dividends | 175 | 2,100 | 2,100 | 2,100 | 2,066 | |||||||||||||||
Net income available to common stockholders | 28,298 | 17,490 | 3,749 | 8,211 | 5,403 | |||||||||||||||
Non-GAAP core operating income(1) | $ | 27,427 | $ | 19,940 | $ | 9,716 | $ | 10,311 | $ | 7,469 | ||||||||||
Balance Sheet Data: | ||||||||||||||||||||
Cash and cash equivalents | $ | 187,320 | $ | 216,541 | $ | 130,820 | $ | 155,972 | $ | 79,418 | ||||||||||
Available-for-sale securities | 741,634 | 663,678 | 703,581 | 593,012 | 460,542 | |||||||||||||||
Gross loans (net of unearned income) | 3,852,244 | 3,060,747 | 1,996,029 | 1,296,886 | 992,726 | |||||||||||||||
Allowance for loan losses | 56,896 | 37,826 | 26,091 | 20,786 | 15,526 | |||||||||||||||
Goodwill and other intangibles | 7,694 | 7,796 | 7,897 | 7,998 | 8,100 | |||||||||||||||
Total assets | 4,931,233 | 4,107,215 | 2,961,118 | 2,133,106 | 1,574,346 | |||||||||||||||
Noninterest-bearing deposits | 521,826 | 484,284 | 290,906 | 198,088 | 123,430 | |||||||||||||||
Total deposits | 3,923,759 | 3,208,097 | 2,303,364 | 1,694,301 | 1,294,812 | |||||||||||||||
Borrowings and repurchase agreements | 373,664 | 388,391 | 357,837 | 216,709 | 112,430 | |||||||||||||||
Preferred stock, liquidation value | — | 30,000 | 30,000 | 30,000 | 30,000 | |||||||||||||||
Total stockholders’ equity | $ | 601,644 | $ | 490,336 | $ | 287,147 | $ | 214,837 | $ | 160,004 | ||||||||||
Share and Per Share Data: | ||||||||||||||||||||
Basic earnings per share | $ | 0.59 | $ | 0.48 | $ | 0.12 | $ | 0.39 | $ | 0.29 | ||||||||||
Diluted earnings per share | 0.58 | 0.47 | 0.12 | 0.39 | 0.28 | |||||||||||||||
Book value per share | 11.58 | 10.21 | 8.38 | 7.34 | 6.61 | |||||||||||||||
Tangible book value per share(2) | $ | 11.43 | $ | 10.04 | $ | 8.12 | $ | 7.02 | $ | 6.20 | ||||||||||
Weighted average common shares outstanding - basic | 47,679,184 | 36,422,612 | 30,086,530 | 20,820,784 | 18,640,678 | |||||||||||||||
Weighted average common shares outstanding - diluted | 48,576,135 | 37,492,567 | 30,963,424 | 21,305,874 | 19,378,290 | |||||||||||||||
Shares outstanding at end of period | 51,969,203 | 45,074,322 | 30,686,256 | 25,194,872 | 19,661,718 |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Selected Ratios: | ||||||||||||||||||||
Return on average assets | 0.63 | % | 0.56 | % | 0.24 | % | 0.56 | % | 0.53 | % | ||||||||||
Non-GAAP core operating return on average assets(3) | 0.61 | 0.57 | 0.40 | 0.56 | 0.53 | |||||||||||||||
Return on average common equity | 5.38 | 5.34 | 1.53 | 5.51 | 4.60 | |||||||||||||||
Non-GAAP core operating return on average common equity(4) | 5.18 | 5.45 | 3.11 | 5.51 | 4.60 | |||||||||||||||
Yield on earning assets - tax equivalent(5) | 5.04 | 4.77 | 4.37 | 4.08 | 4.14 | |||||||||||||||
Yield on securities - tax equivalent(5) | 3.35 | 3.62 | 3.85 | 3.63 | 3.72 | |||||||||||||||
Yield on loans | 5.52 | 5.34 | 4.89 | 4.60 | 4.62 | |||||||||||||||
Cost of funds | 1.90 | 1.49 | 1.06 | 0.91 | 0.94 | |||||||||||||||
Cost of interest-bearing deposits | 2.21 | 1.71 | 1.12 | 0.96 | 1.01 | |||||||||||||||
Cost of total deposits | 1.89 | 1.44 | 0.99 | 0.87 | 0.91 | |||||||||||||||
Net interest margin - tax equivalent(5) | 3.31 | 3.39 | 3.40 | 3.24 | 3.27 | |||||||||||||||
Noninterest expense to average assets | 1.95 | 2.45 | 2.53 | 2.21 | 2.17 | |||||||||||||||
Efficiency ratio(6) | 58.37 | 73.64 | 79.10 | 70.64 | 68.48 | |||||||||||||||
Non-GAAP core operating efficiency ratio - tax equivalent(7) | 57.25 | 67.68 | 72.33 | 66.04 | 64.66 | |||||||||||||||
Noninterest-bearing deposits to total deposits | 13.30 | 15.10 | 12.63 | 11.69 | 9.53 | |||||||||||||||
Loans to deposits | 98.18 | % | 95.41 | % | 86.66 | % | 76.54 | % | 76.67 | % | ||||||||||
Credit Quality Ratios: | ||||||||||||||||||||
Allowance for loan losses to total loans | 1.48 | % | 1.23 | % | 1.30 | % | 1.60 | % | 1.56 | % | ||||||||||
Nonperforming assets to total assets | 0.97 | 0.43 | 0.18 | 0.20 | 0.08 | |||||||||||||||
Nonperforming loans to total loans | 1.15 | 0.58 | 0.27 | 0.33 | 0.12 | |||||||||||||||
Allowance for loan losses to nonperforming loans | 128.54 | 212.30 | 481.68 | 493.14 | 1,336.38 | |||||||||||||||
Net charge-offs to average loans | 0.31 | 0.07 | 0.44 | 0.11 | 0.04 | |||||||||||||||
Loans 30 - 89 days past due to loans | 0.18 | 0.12 | 0.90 | 0.36 | 0.02 | |||||||||||||||
Classified loans / (total capital + ALLL) | 13.20 | % | 19.21 | % | 13.25 | % | 18.92 | % | 20.51 | % |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Capital Ratios: | ||||||||||||||||||||
Total stockholders’ equity to total assets | 12.20 | % | 11.94 | % | 9.70 | % | 10.07 | % | 10.16 | % | ||||||||||
Tier 1 leverage ratio | 12.06 | 12.43 | 9.71 | 10.48 | 9.72 | |||||||||||||||
Common equity tier 1 capital ratio | 12.20 | 11.75 | 8.62 | 9.78 | 8.50 | |||||||||||||||
Tier 1 risk-based capital ratio | 12.22 | 12.53 | 9.70 | 11.38 | 10.70 | |||||||||||||||
Total risk-based capital ratio | 13.43 | % | 13.51 | % | 10.65 | % | 12.51 | % | 11.82 | % | ||||||||||
(1) We calculate ‘‘non-GAAP core operating income’’ as net income adjusted to remove non-recurring or non-core income and expense items related to restructuring charges associated with our CEO transition, impairment charges associated with two buildings that were held-for-sale, state tax credits and a one-time charge to income related to the 2017 Tax Act. Non-GAAP core operating income is a non-GAAP financial measure. The most directly comparable measure under GAAP is net income. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | ||||||||||||||||||||
(2) We calculate ‘‘tangible book value per share’’ as total stockholders’ equity less goodwill and intangible assets and preferred stock divided by the number of outstanding shares of our common stock at the end of the relevant period. Tangible book value per share is a non-GAAP financial measure. The most directly comparable GAAP measure is book value per share. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | ||||||||||||||||||||
(3) We calculate ‘‘non-GAAP core operating return on average assets’’ as non-GAAP core operating income (defined above) divided by average assets. Non-GAAP core operating return on average assets is a non-GAAP financial measure. The most directly comparable GAAP financial measure is return on average assets. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | ||||||||||||||||||||
(4) We calculate ‘‘non-GAAP core operating return on average common equity’’ as non-GAAP core operating income (defined above) less preferred dividends divided by average common equity. Non-GAAP core operating return on average common equity is a non-GAAP financial measure. The most directly comparable GAAP financial measure is return on average common equity. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. | ||||||||||||||||||||
(5) Tax-exempt income is calculated on a tax equivalent basis. Tax-exempt income includes municipal securities, which are exempt from federal taxation. A tax rate of 21% is used for fiscal year 2018 and 2019 and a tax rate of 35% is used for fiscal years 2017 and prior. | ||||||||||||||||||||
(6) We calculate efficiency ratio as noninterest expense divided by the sum of net interest income and noninterest income. | ||||||||||||||||||||
(7) We calculate ‘‘non-GAAP core operating efficiency ratio - tax-equivalent’’ as noninterest expense adjusted to remove non-recurring noninterest expenses as defined under non-GAAP core operating income divided by the sum of net interest income on a tax equivalent basis and noninterest income adjusted to remove non-recurring noninterest income as defined under non-GAAP core operating income. Non-GAAP core operating efficiency ratio - tax equivalent is a non-GAAP financial measure. The most directly comparable GAAP financial measure is the efficiency ratio. See ‘‘GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures’’ for a reconciliation of this measure. |
2015 to 2019 | As of December 31, | ||||||||||||||||||||
Compound Annual Growth Rate | 2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||
Available-for-sale securities | 13% | $ | 741,634 | $ | 663,678 | $ | 703,581 | $ | 593,012 | $ | 460,542 | ||||||||||
Gross loans (net of unearned income) | 40 | 3,852,244 | 3,060,747 | 1,996,029 | 1,296,886 | 992,726 | |||||||||||||||
Total assets | 33 | 4,931,233 | 4,107,215 | 2,961,118 | 2,133,106 | 1,574,346 | |||||||||||||||
Noninterest-bearing deposits | 43 | 521,826 | 484,284 | 290,906 | 198,088 | 123,430 | |||||||||||||||
Total deposits | 32% | $ | 3,923,759 | $ | 3,208,097 | $ | 2,303,364 | $ | 1,694,301 | $ | 1,294,812 |
based on COVID-19 pandemic. Update to 2021 Events Discussed in the Previous 10-K Four of our branches are in areas that were impacted by severe, cold weather conditionsin February and March of 2021. One branch sustained water damage but did not impact operations or our ability to supportour customers. In 2021, the Company repaired and replaced the property and equipment impacted by the water damage. The related cost was primarilypaid for by our insurance provider. |
For the Years Ended December 31, | ||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Average Balance | Interest Income / Expense | Yield / Rate(4) | Average Balance | Interest Income / Expense | Yield / Rate(4) | Average Balance | Interest Income / Expense | Yield / Rate(4) | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||
Securities - taxable | $ | 330,051 | $ | 9,627 | 2.92 | % | $ | 281,709 | $ | 8,952 | 3.18 | % | $ | 202,323 | $ | 5,602 | 2.77 | % | ||||||||||||||
Securities - tax-exempt(1) | 390,908 | 14,533 | 3.72 | 459,231 | 17,856 | 3.89 | 488,828 | 20,978 | 4.29 | |||||||||||||||||||||||
Federal funds sold | 15,195 | 364 | 2.40 | 16,377 | 339 | 2.07 | 263 | 3 | 1.03 | |||||||||||||||||||||||
Interest-bearing deposits in other banks | 139,538 | 2,689 | 1.93 | 159,279 | 2,757 | 1.73 | 133,027 | 1,427 | 1.07 | |||||||||||||||||||||||
Gross loans, net of unearned income(2)(3) | 3,468,079 | 191,527 | 5.52 | 2,435,424 | 130,075 | 5.34 | 1,538,926 | 75,245 | 4.89 | |||||||||||||||||||||||
Total interest-earning assets(1) | 4,343,771 | $ | 218,740 | 5.04 | % | 3,352,020 | $ | 159,979 | 4.77 | % | 2,363,367 | $ | 103,255 | 4.37 | % | |||||||||||||||||
Allowance for loan losses | (42,015 | ) | (30,921 | ) | (26,069 | ) | ||||||||||||||||||||||||||
Other noninterest-earning assets | 198,008 | 173,556 | 115,499 | |||||||||||||||||||||||||||||
Total assets | $ | 4,499,764 | $ | 3,494,655 | $ | 2,452,797 | ||||||||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||
Transaction deposits | $ | 146,109 | $ | 1,742 | 1.19 | % | $ | 56,321 | $ | 175 | 0.31 | % | $ | 45,030 | $ | 108 | 0.24 | % | ||||||||||||||
Savings and money market deposits | 1,676,417 | 35,385 | 2.11 | 1,410,727 | 23,405 | 1.66 | 1,007,568 | 9,934 | 0.99 | |||||||||||||||||||||||
Time deposits | 1,243,304 | 30,541 | 2.46 | 835,595 | 15,792 | 1.89 | 610,333 | 8,634 | 1.41 | |||||||||||||||||||||||
Total interest-bearing deposits | 3,065,830 | 67,668 | 2.21 | 2,302,643 | 39,372 | 1.71 | 1,662,931 | 18,676 | 1.12 | |||||||||||||||||||||||
FHLB and short-term borrowings | 366,577 | 6,959 | 1.90 | 395,825 | 7,004 | 1.77 | 282,552 | 4,215 | 1.49 | |||||||||||||||||||||||
Trust preferred securities, net of fair value adjustments | 899 | 147 | 16.34 | 864 | 136 | 15.69 | 832 | 107 | 12.89 | |||||||||||||||||||||||
Noninterest-bearing deposits | 512,142 | — | — | 425,243 | — | — | 224,480 | — | — | |||||||||||||||||||||||
Cost of funds | 3,945,448 | $ | 74,774 | 1.90 | % | 3,124,575 | $ | 46,512 | 1.49 | % | 2,170,795 | $ | 22,998 | 1.06 | % | |||||||||||||||||
Other liabilities | 25,708 | 12,634 | 6,808 | |||||||||||||||||||||||||||||
Stockholders’ equity | 528,608 | 357,446 | 275,194 | |||||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 4,499,764 | $ | 3,494,655 | $ | 2,452,797 | ||||||||||||||||||||||||||
Net interest income(1) | $ | 143,966 | $ | 113,467 | $ | 80,257 | ||||||||||||||||||||||||||
Net interest spread(1) | 3.14 | % | 3.28 | % | 3.31 | % | ||||||||||||||||||||||||||
Net interest margin(1) | 3.31 | % | 3.39 | % | 3.40 | % | ||||||||||||||||||||||||||
(1) Tax-exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21% in 2019 and 2018 and 35% in 2017. | ||||||||||||||||||||||||||||||||
(2) Gross loans, net of unearned income includes nonaccrual loans of $40 million, $18 million, and $5 million as of December 31, 2019, 2018, and 2017, respectively. | ||||||||||||||||||||||||||||||||
(3) Loan interest income includes loan fees of $9 million, $7 million, and 4 million in 2019, 2018, and 2017, respectively. | ||||||||||||||||||||||||||||||||
(4) Actual unrounded values are used to calculate the reported yield or rate disclosed. Accordingly, recalculations using the amounts in thousands as disclosed in this report may not produce the same amounts. |
For the Years Ended December 31, | |||||||||||||||||||||||
2019 over 2018 | 2018 over 2017 | ||||||||||||||||||||||
Average Volume | Yield/Rate | Net Change(2) | Average Volume | Yield/Rate | Net Change(2) | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Interest Income | |||||||||||||||||||||||
Securities - taxable | $ | 1,449 | $ | (774 | ) | $ | 675 | $ | 2,432 | $ | 918 | $ | 3,350 | ||||||||||
Securities - tax-exempt(1) | (2,568 | ) | (755 | ) | (3,323 | ) | (1,229 | ) | (1,893 | ) | (3,122 | ) | |||||||||||
Federal funds sold | (26 | ) | 51 | 25 | 331 | 5 | 336 | ||||||||||||||||
Interest-bearing deposits in other banks | (365 | ) | 297 | (68 | ) | 323 | 1,007 | 1,330 | |||||||||||||||
Gross loans, net of unearned income | 56,927 | 4,525 | 61,452 | 47,350 | 7,480 | 54,830 | |||||||||||||||||
Total interest income(1) | 55,417 | 3,344 | 58,761 | 49,207 | 7,517 | 56,724 | |||||||||||||||||
Interest Expense | |||||||||||||||||||||||
Transaction deposits | 564 | 1,003 | 1,567 | 31 | 36 | 67 | |||||||||||||||||
Savings and money market deposits | 4,911 | 7,069 | 11,980 | 5,005 | 8,466 | 13,471 | |||||||||||||||||
Time deposits | 9,115 | 5,634 | 14,749 | 3,724 | 3,434 | 7,158 | |||||||||||||||||
Total interest-bearing deposits | 14,590 | 13,706 | 28,296 | 8,760 | 11,936 | 20,696 | |||||||||||||||||
FHLB and short-term borrowings | (538 | ) | 493 | (45 | ) | 1,899 | 890 | 2,789 | |||||||||||||||
Trust preferred securities, net of fair value adjustments | 5 | 6 | 11 | 4 | 25 | 29 | |||||||||||||||||
Total interest expense | 14,057 | 14,205 | 28,262 | 10,663 | 12,851 | 23,514 | |||||||||||||||||
Net interest income(1) | $ | 41,360 | $ | (10,861 | ) | $ | 30,499 | $ | 38,544 | $ | (5,334 | ) | $ | 33,210 | |||||||||
(1) Tax-exempt income is calculated on a tax-equivalent basis. Tax-free municipal securities are exempt from Federal taxes. The incremental tax rate used is 21% in 2019 and 2018 and 35% in 2017. | |||||||||||||||||||||||
(2) The change in interest not due solely to volume or rate has been allocated in proportion to the respective absolute dollar amounts of the change in volume or rate. |
For the Year Ended December 31, | |||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2018 | 2017 | $ | % | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Service charges and fees on customer accounts | $ | 604 | $ | 444 | $ | 160 | 36 | % | $ | 444 | $ | 1,201 | $ | (757 | ) | (63 | )% | ||||||||||||
Gain on sale of available-for-sale securities | 987 | 538 | 449 | 83 | 538 | 406 | 132 | 33 | |||||||||||||||||||||
Impairment of premises and equipment held for sale | (424 | ) | (171 | ) | (253 | ) | 148 | (171 | ) | (1,903 | ) | 1,732 | (91 | ) | |||||||||||||||
Gain on sale of loans | 207 | 827 | (620 | ) | (75 | ) | 827 | 827 | — | — | |||||||||||||||||||
Income from bank-owned life insurance | 1,878 | 1,969 | (91 | ) | (5 | ) | 1,969 | 1,452 | 517 | 36 | |||||||||||||||||||
Swap fee income, net | 2,753 | 285 | 2,468 | 866 | 285 | — | 285 | — | |||||||||||||||||||||
ATM and credit card interchange income | 1,785 | 1,224 | 561 | 46 | 1,224 | 706 | 518 | 73 | |||||||||||||||||||||
Other noninterest income | 925 | 967 | (42 | ) | (4 | ) | 967 | 990 | (23 | ) | �� | (2 | ) | ||||||||||||||||
Total noninterest income | $ | 8,715 | $ | 6,083 | $ | 2,632 | 43 | % | $ | 6,083 | $ | 3,679 | $ | 2,404 | 65 | % |
For the Year Ended December 31, | |||||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2018 | 2017 | $ | % | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Salary and employee benefits | $ | 57,114 | $ | 56,118 | $ | 996 | 2 | % | $ | 56,118 | $ | 39,461 | $ | 16,657 | 42 | % | |||||||||||||
Occupancy | 8,349 | 8,214 | 135 | 2 | 8,214 | 5,803 | 2,411 | 42 | |||||||||||||||||||||
Professional fees | 2,964 | 3,320 | (356 | ) | (11 | ) | 3,320 | 3,060 | 260 | 8 | |||||||||||||||||||
Deposit insurance premiums | 2,787 | 3,186 | (399 | ) | (13 | ) | 3,186 | 1,575 | 1,611 | 102 | |||||||||||||||||||
Data processing | 2,544 | 1,995 | 549 | 28 | 1,995 | 1,441 | 554 | 38 | |||||||||||||||||||||
Advertising | 2,455 | 2,691 | (236 | ) | (9 | ) | 2,691 | 2,648 | 43 | 2 | |||||||||||||||||||
Software and communication | 3,317 | 2,630 | 687 | 26 | 2,630 | 1,961 | 669 | 34 | |||||||||||||||||||||
Depreciation and amortization | 1,734 | 1,788 | (54 | ) | (3 | ) | 1,788 | 1,272 | 516 | 41 | |||||||||||||||||||
Other noninterest expense | 6,384 | 5,813 | 571 | 10 | 5,813 | 4,868 | 945 | 19 | |||||||||||||||||||||
Total noninterest expense | $ | 87,648 | $ | 85,755 | $ | 1,893 | 2 | % | $ | 85,755 | $ | 62,089 | $ | 23,666 | 38 | % |
For the Year Ended December 31, | |||||||||||||||||||||||||||
Change | Change | ||||||||||||||||||||||||||
2019 | 2018 | $ | % | 2018 | 2017 | $ | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Income tax expense (benefit) | $ | 4,138 | $ | (2,394 | ) | $ | 6,532 | NA | $ | (2,394 | ) | $ | (1,441 | ) | $ | (953 | ) | NA | |||||||||
Effective tax rate | 12.7 | % | (13.9 | )% | (13.9 | )% | (32.7 | )% |
As of December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||
Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | Amount | % of Loans | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial and industrial | $ | 1,356,817 | 35 | % | $ | 1,134,414 | 37 | % | $ | 771,208 | 38 | % | $ | 420,227 | 32 | % | $ | 343,683 | 34 | % | |||||||||
Energy | 408,573 | 11 | 358,283 | 12 | 242,655 | 12 | 168,546 | 13 | 137,492 | 14 | |||||||||||||||||||
Commercial real estate | 1,024,041 | 27 | 846,561 | 28 | 535,503 | 27 | $ | 396,203 | 30 | 306,911 | 31 | ||||||||||||||||||
Construction and land development | 628,418 | 16 | 440,032 | 14 | 255,362 | 13 | 138,165 | 11 | 101,428 | 10 | |||||||||||||||||||
Residential real estate | 398,695 | 10 | 246,275 | 8 | 163,531 | 8 | 97,802 | 8 | 47,259 | 5 | |||||||||||||||||||
Mortgage warehouse(1) | — | — | — | — | — | — | 58,504 | 4 | 42,006 | 4 | |||||||||||||||||||
Consumer | 45,163 | 1 | 43,814 | 1 | 33,786 | 2 | 20,250 | 2 | 15,735 | 2 | |||||||||||||||||||
Gross loans | 3,861,707 | 3,069,379 | 2,002,045 | 1,299,697 | 994,514 | ||||||||||||||||||||||||
Less: unearned income | 9,463 | 8,632 | 6,016 | 2,811 | 1,788 | ||||||||||||||||||||||||
Gross loans (net of unearned income) | $ | 3,852,244 | 100 | % | $ | 3,060,747 | 100 | % | $ | 1,996,029 | 100 | % | $ | 1,296,886 | 100 | % | $ | 992,726 | 100 | % | |||||||||
(1) Mortgage warehouse loans represented participations in large lines of credit used to fund single family residential mortgages. During 2017, the Company made a strategic decision to discontinue these participations. |
As of December 31, 2019 | ||||||||||||||||||||||||||||
Due after one year | ||||||||||||||||||||||||||||
Due in one year or less | through five years | Due after five years | ||||||||||||||||||||||||||
Fixed | Adjustable | Fixed | Adjustable | Fixed | Adjustable | |||||||||||||||||||||||
Rate | Rate | Rate | Rate | Rate | Rate | Total | ||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 55,515 | $ | 300,886 | $ | 356,382 | $ | 541,291 | $ | 49,898 | $ | 52,845 | $ | 1,356,817 | ||||||||||||||
Energy | 40 | 223,529 | 633 | 183,729 | — | 642 | 408,573 | |||||||||||||||||||||
Commercial real estate | 57,919 | 100,538 | 346,546 | 243,203 | 25,851 | 249,984 | 1,024,041 | |||||||||||||||||||||
Construction and land development | 5,321 | 90,462 | 42,607 | 406,980 | 12,147 | 70,901 | 628,418 | |||||||||||||||||||||
Residential real estate | 8,270 | 3,189 | 43,122 | 76,051 | 104,069 | 163,994 | 398,695 | |||||||||||||||||||||
Consumer | 3,424 | 7,824 | 4,958 | 6,404 | — | 22,553 | 45,163 | |||||||||||||||||||||
Gross loans | $ | 130,489 | $ | 726,428 | $ | 794,248 | $ | 1,457,658 | $ | 191,965 | $ | 560,919 | $ | 3,861,707 |
For the Period Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Beginning balance | $ | 37,826 | $ | 26,091 | $ | 20,786 | $ | 15,526 | $ | 9,905 | |||||||||
Provision for loan losses | 29,900 | 13,500 | 12,000 | 6,500 | 5,975 | ||||||||||||||
Charge-offs: | |||||||||||||||||||
Commercial | (7,954 | ) | (976 | ) | (5,822 | ) | (1,078 | ) | — | ||||||||||
Energy | (3,000 | ) | (1,256 | ) | (1,090 | ) | — | — | |||||||||||
Commercial real estate | (441 | ) | — | — | — | (47 | ) | ||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | (8 | ) | — | — | (13 | ) | (206 | ) | |||||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||
Consumer | (20 | ) | (71 | ) | (108 | ) | (177 | ) | (112 | ) | |||||||||
Total charge-offs | (11,423 | ) | (2,303 | ) | (7,020 | ) | (1,268 | ) | (365 | ) | |||||||||
Recoveries: | |||||||||||||||||||
Commercial | 15 | 462 | 301 | — | — | ||||||||||||||
Energy | 576 | 75 | — | — | — | ||||||||||||||
Commercial real estate | — | — | — | — | — | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | — | — | — | 18 | 1 | ||||||||||||||
Mortgage warehouse | — | — | — | — | — | ||||||||||||||
Consumer | 2 | 1 | 24 | 10 | 10 | ||||||||||||||
Total recoveries | 593 | 538 | 325 | 28 | 11 | ||||||||||||||
Net charge-offs | (10,830 | ) | (1,765 | ) | (6,695 | ) | (1,240 | ) | (354 | ) | |||||||||
Balance at end of period | $ | 56,896 | $ | 37,826 | $ | 26,091 | $ | 20,786 | $ | 15,526 | |||||||||
Ratio of net charge-offs during the period to average loans outstanding during the period | 0.31 | % | 0.07 | % | 0.44 | % | 0.11 | % | 0.04 | % |
For the Period Ended December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | $ | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Commercial | $ | 35,864 | 63 | % | $ | 16,584 | 43 | % | $ | 11,378 | 43 | % | $ | 9,315 | 45 | % | $ | 7,959 | 51 | % | |||||||||
Energy | 6,565 | 12 | 10,262 | 27 | 7,726 | 30 | 6,053 | 29 | 3,391 | 22 | |||||||||||||||||||
Commercial real estate | 8,085 | 14 | 6,755 | 18 | 4,668 | 18 | 3,755 | 18 | 2,860 | 18 | |||||||||||||||||||
Construction and land development | 3,516 | 6 | 2,475 | 7 | 1,200 | 5 | 661 | 3 | 599 | 4 | |||||||||||||||||||
Residential real estate | 2,546 | 4 | 1,464 | 4 | 905 | 3 | 851 | 4 | 439 | 3 | |||||||||||||||||||
Mortgage warehouse | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||
Consumer | 320 | 1 | 286 | 1 | 214 | 1 | 151 | 1 | 278 | 2 | |||||||||||||||||||
Total allowance for loan losses | $ | 56,896 | 100 | % | $ | 37,826 | 100 | % | $ | 26,091 | 100 | % | $ | 20,786 | 100 | % | $ | 15,526 | 100 | % |
For the Period Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Nonaccrual loans | $ | 39,675 | $ | 17,818 | $ | 5,417 | $ | 4,215 | $ | 1,162 | |||||||||
Loans past due 90 days or more and still accruing | 4,591 | — | — | — | — | ||||||||||||||
Total nonperforming loans | 44,266 | 17,818 | 5,417 | 4,215 | 1,162 | ||||||||||||||
Foreclosed assets held-for-sale | 3,619 | — | — | 61 | 21 | ||||||||||||||
Total nonperforming assets | $ | 47,885 | $ | 17,818 | $ | 5,417 | $ | 4,276 | $ | 1,183 | |||||||||
Allowance for loan losses to period end loans | 1.48 | % | 1.23 | % | 1.30 | % | 1.60 | % | 1.56 | % | |||||||||
Allowance for loan losses to period end nonperforming loans | 128.54 | 212.30 | 481.68 | 493.14 | 1,336.38 | ||||||||||||||
Nonperforming loans to period end loans | 1.15 | 0.58 | 0.27 | 0.33 | 0.12 | ||||||||||||||
Nonperforming assets to period end assets | 0.97 | % | 0.43 | % | 0.18 | % | 0.20 | % | 0.08 | % |
For the Period Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Loan Past Due Detail | |||||||||||||||||||
30 - 59 days past due | $ | 6,292 | $ | 3,062 | $ | 2,582 | $ | 4,716 | $ | 173 | |||||||||
60 - 89 days past due | 530 | 619 | 15,348 | — | — | ||||||||||||||
Total 30 - 89 days past due | $ | 6,822 | $ | 3,681 | $ | 17,930 | $ | 4,716 | $ | 173 | |||||||||
Loans 30 - 89 days past due to loans | 0.18 | % | 0.12 | % | 0.90 | % | 0.36 | % | 0.02 | % | |||||||||
Classified Loans | |||||||||||||||||||
Substandard | $ | 81,413 | $ | 96,247 | $ | 40,283 | $ | 44,574 | $ | 35,993 | |||||||||
Doubtful | 5,483 | 5,197 | 1,224 | — | — | ||||||||||||||
Loss | — | — | — | — | — | ||||||||||||||
Total classified loans | $ | 86,896 | $ | 101,444 | $ | 41,507 | $ | 44,574 | $ | 35,993 | |||||||||
Classified loans / (total capital + ALLL) | 13.20 | % | 19.21 | % | 13.25 | % | 18.92 | % | 20.51 | % |
Interest Rate Products | |||||||||||
As of December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Number of transactions | 56 | 20 | — | ||||||||
Notional amount | $ | 380,050 | $ | 77,709 | $ | — | |||||
Fair value of assets (located within other assets) | 9,838 | 1,051 | — | ||||||||
Fair value of liabilities (located within other liabilities) | $ | 9,907 | $ | 1,136 | $ | — |
As of or For the Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Ending balance | $ | 17,278 | $ | 14,525 | $ | 14,702 | $ | 8,584 | $ | 4,582 | |||||||||
Income earned | $ | 1,087 | $ | 980 | $ | 677 | $ | 365 | $ | 238 | |||||||||
Yield | 7.1 | % | 6.7 | % | 6.2 | % | 5.5 | % | 5.3 | % |
As of or For the Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Ending balance | $ | 65,689 | $ | 63,811 | $ | 61,842 | $ | 35,390 | $ | — | |||||||||
Income earned | $ | 1,878 | $ | 1,969 | $ | 1,452 | $ | 390 | $ | — | |||||||||
Tax-equivalent yield(1) | 3.6 | % | 3.9 | % | 4.6 | % | 4.7 | % | — | % | |||||||||
(1) Tax exempt income is calculated on a tax-equivalent basis. BOLI income is exempt from federal and state taxes. The incremental tax rate used is 24.7% in 2018 and 2019 and 35% between 2015 and 2017. |
As of December 31, | |||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||||||||||||
Amount | % | Amount | % | Amount | % | Amount | % | Amount | % | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Noninterest-bearing deposits | $ | 521,826 | 13 | % | $ | 484,284 | 15 | % | $ | 290,906 | 13 | % | $ | 198,088 | 12 | % | $ | 123,430 | 10 | % | |||||||||
Transaction deposits | 259,435 | 7 | 82,593 | 3 | 51,788 | 2 | 40,619 | 2 | 32,609 | 2 | |||||||||||||||||||
Savings and money market deposits | 1,902,752 | 48 | 1,631,543 | 51 | 1,209,092 | 52 | 940,854 | 56 | 814,159 | 63 | |||||||||||||||||||
Time deposits(1) | 1,239,746 | 32 | 1,009,677 | 31 | 751,578 | 33 | 514,740 | 30 | 324,614 | 25 | |||||||||||||||||||
Total deposits | $ | 3,923,759 | 100 | % | $ | 3,208,097 | 100 | % | $ | 2,303,364 | 100 | % | $ | 1,694,301 | 100 | % | $ | 1,294,812 | 100 | % | |||||||||
(1) Includes $392 million, $343 million, $240 million, $135 million and $78 million of brokered deposits, representing 32%, 34%, 32%, 26% and 24% of time deposits for the years ended December 31, 2019, 2018, 2017, 2016 and 2015, respectively. |
As of December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||
Average Balance | Weighted Average Rate | Average Balance | Weighted Average Rate | Average Balance | Weighted Average Rate | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Noninterest-bearing deposits | $ | 512,142 | — | % | $ | 425,243 | — | % | $ | 224,480 | — | % | ||||||||
Transaction deposits | 146,109 | 1.19 | 56,321 | 0.31 | 45,030 | 0.24 | ||||||||||||||
Savings and money market deposits | 1,676,417 | 2.11 | 1,410,727 | 1.66 | 1,007,568 | 0.99 | ||||||||||||||
Time deposits(1) | 1,243,304 | 2.46 | 835,595 | 1.89 | 610,333 | 1.41 | ||||||||||||||
Total deposits | $ | 3,577,972 | 1.89 | % | $ | 2,727,886 | 1.44 | % | $ | 1,887,411 | 0.99 | % |
As of December 31, 2019 | |||||||||||||||||||
Three Months or Less | Three to Six Months | Six to Twelve Months | After Twelve Months | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Time deposits (more than $100,000) | $ | 230,496 | $ | 151,756 | $ | 180,890 | $ | 137,212 | $ | 700,354 | |||||||||
Time deposits ($100,000 or less) | 194,423 | 82,906 | 84,768 | 177,295 | 539,392 | ||||||||||||||
Total time deposits | $ | 424,919 | $ | 234,662 | $ | 265,658 | $ | 314,507 | $ | 1,239,746 |
As of December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||
Amount | Weighted Average Interest Rate | Amount | Weighted Average Interest Rate | Amount | Weighted Average Interest Rate | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Repurchase agreements | $ | 14,921 | 1.00 | % | $ | 75,406 | 1.54 | % | $ | 38,622 | 0.94 | % | ||||||||
Federal funds purchased | — | — | — | — | — | — | ||||||||||||||
FHLB borrowings(1) | 358,743 | 1.84 | 312,985 | 1.89 | 319,215 | 1.75 | ||||||||||||||
TIB line of credit | — | — | — | — | — | — | ||||||||||||||
Trust preferred securities(2) | 921 | 3.63 | 884 | 4.53 | 850 | 3.33 | ||||||||||||||
Total other borrowings | $ | 374,585 | 1.81 | % | $ | 389,275 | 1.83 | % | $ | 358,687 | 1.67 | % | ||||||||
(1) Includes FHLB advances and FHLB line of credit. | ||||||||||||||||||||
(2) The difference between the interest rate above and the interest rate in the table below is due to the Company assuming a liability with a fair value of $1 million related to the assumption of trust preferred securities issued by Leawood Bancshares Statutory Trust I for $4 million on September 30, 2005. In 2012, the Company settled litigation related to the trust preferred securities which decreased the principal balance by $2 million and the recorded balance by approximately $400 thousand. The difference between the recorded amount and the contract value of $3 million is being accreted to the maturity date in 2035. |
For the Year Ended December 31, | ||||||||||||||||||||||||||
2019 | 2018 | 2017 | ||||||||||||||||||||||||
Maximum Amount Outstanding at Any Month End | Average Amount | Weighted Average Interest Rate | Maximum Amount Outstanding at Any Month End | Average Amount | Weighted Average Interest Rate | Maximum Amount Outstanding at Any Month End | Average Amount | Weighted Average Interest Rate | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Repurchase agreements | $ | 72,048 | $ | 43,845 | 1.32 | % | $ | 124,765 | $ | 77,232 | 1.30 | % | $ | 59,407 | $ | 42,269 | 0.69 | % | ||||||||
Federal funds purchased | 25,000 | 672 | 1.96 | 55,000 | 2,781 | 2.36 | — | — | — | |||||||||||||||||
FHLB borrowings(1) | 388,743 | 322,060 | 1.98 | 313,024 | 313,979 | 1.86 | 319,252 | 239,899 | 1.63 | |||||||||||||||||
TIB line of credit | — | — | — | 10,000 | 1,833 | 5.19 | 10,000 | 384 | 4.25 | |||||||||||||||||
Trust preferred securities | $ | 921 | 899 | 16.34 | $ | 884 | 864 | 11.77 | $ | 850 | 832 | 9.21 | ||||||||||||||
Total other borrowings | $ | 367,476 | 1.93 | % | $ | 396,689 | 1.79 | % | $ | 283,384 | 1.51 | % | ||||||||||||||
(1) Includes FHLB advances and FHLB line of credit. |
As of December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(Dollars in thousands) | ||||||||||||
On-balance sheet liquidity(1) | $ | 888,080 | $ | 769,491 | $ | 736,056 | ||||||
Off-balance sheet liquidity(2) | 524,332 | 450,101 | 184,353 | |||||||||
Total liquidity | $ | 1,412,412 | $ | 1,219,592 | $ | 920,409 | ||||||
On-balance sheet liquidity(1) as a percent of assets | 18 | % | 19 | % | 25 | % | ||||||
Total liquidity as a percent of assets | 29 | % | 30 | % | 31 | % | ||||||
(1) On-balance sheet liquidity represents funds currently on the balance sheet. It consists of overnight funds, short-term deposits with other banks, available-for-sale securities, and other assets. | ||||||||||||
(2) Off-balance sheet liquidity represents funds available from third-party sources. It consists of credit lines, wholesale deposits, debt funding, and other sources |
December 31, 2019 | ||||||||||||||||||||
Regulatory | Minimum | |||||||||||||||||||
Capital Ratio | To Be Considered | |||||||||||||||||||
Actual | Requirements | Well Capitalized | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Company: | ||||||||||||||||||||
Total capital to risk weighted assets | $ | 633,228 | 13.43 | % | $ | 495,095 | 10.50 | % | N/A | N/A | ||||||||||
Tier 1 capital to risk weighted assets | 576,332 | 12.22 | 400,791 | 8.50 | N/A | N/A | ||||||||||||||
CET1 to risk weighted assets | 575,411 | 12.20 | 330,063 | 7.00 | N/A | N/A | ||||||||||||||
Tier 1 leverage ratio | $ | 576,332 | 12.06 | % | $ | 191,093 | 4.00 | % | N/A | N/A | ||||||||||
Bank: | ||||||||||||||||||||
Total capital to risk weighted assets | $ | 581,600 | 12.34 | % | $ | 494,954 | 10.50 | % | $ | 471,385 | 10.00 | % | ||||||||
Tier 1 capital to risk weighted assets | 524,704 | 11.13 | 400,677 | 8.50 | 377,108 | 8.00 | ||||||||||||||
CET1 to risk weighted assets | 524,704 | 11.13 | 329,970 | 7.00 | 306,400 | 6.50 | ||||||||||||||
Tier 1 leverage ratio | $ | 524,704 | 10.98 | % | $ | 191,170 | 4.00 | % | $ | 238,963 | 5.00 | % |
December 31, 2018 | ||||||||||||||||||||
Regulatory | Minimum | |||||||||||||||||||
Capital Ratio | To Be Considered | |||||||||||||||||||
Actual | Requirements | Well Capitalized | ||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Company: | ||||||||||||||||||||
Total capital to risk weighted assets | $ | 521,111 | 13.51 | % | $ | 380,873 | 9.88 | % | N/A | N/A | ||||||||||
Tier 1 capital to risk weighted assets | 483,285 | 12.53 | 303,734 | 7.88 | N/A | N/A | ||||||||||||||
CET1 to risk weighted assets | 453,049 | 11.75 | 245,880 | 6.38 | N/A | N/A | ||||||||||||||
Tier 1 leverage ratio | $ | 483,285 | 12.43 | % | $ | 155,538 | 4.00 | % | N/A | N/A | ||||||||||
Bank: | ||||||||||||||||||||
Total capital to risk weighted assets | $ | 481,287 | 12.50 | % | $ | 380,369 | 9.88 | % | $ | 385,184 | 10.00 | % | ||||||||
Tier 1 capital to risk weighted assets | 443,461 | 11.51 | 303,332 | 7.88 | 308,147 | 8.00 | ||||||||||||||
CET1 to risk weighted assets | 443,461 | 11.51 | 245,555 | 6.38 | 250,369 | 6.50 | ||||||||||||||
Tier 1 leverage ratio | $ | 443,461 | 11.41 | % | $ | 155,420 | 4.00 | % | $ | 194,275 | 5.00 | % |
As of December 31, 2019 | |||||||||||||||||||
Payments due by period | |||||||||||||||||||
Less than | 1 to 2 | 2 to 5 | More than | ||||||||||||||||
1 Year | Years | Years | 5 Years | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Time deposits | $ | 925,239 | $ | 152,979 | $ | 161,528 | $ | — | $ | 1,239,746 | |||||||||
Repurchase agreements | 14,921 | — | — | — | 14,921 | ||||||||||||||
Federal funds purchased | — | — | — | — | — | ||||||||||||||
FHLB borrowings(1) | 45,000 | 51,500 | 56,143 | 206,100 | 358,743 | ||||||||||||||
Trust preferred security | — | — | — | 2,500 | 2,500 | ||||||||||||||
Operating leases | 1,796 | 1,572 | 4,528 | 6,162 | 14,058 | ||||||||||||||
Total | $ | 986,956 | $ | 206,051 | $ | 222,199 | $ | 214,762 | $ | 1,629,968 | |||||||||
(1) Includes FHLB advances and FHLB line of credit |
Year | Minimum Lease Payments | |||
(Dollars in thousands) | ||||
1 | $ | 1,303 | ||
2 | 1,312 | |||
3 | 1,321 | |||
4 | 1,331 | |||
5 | 1,341 | |||
Thereafter | $ | 14,327 |
As of December 31, | |||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Commitments to fund C&I loans | $ | 602,456 | $ | 597,534 | $ | 424,338 | $ | 215,891 | $ | 187,426 | |||||||||
Other loan commitments | 884,069 | 767,629 | 730,500 | 355,289 | 197,912 | ||||||||||||||
Standby letters of credit | 39,035 | 32,439 | 33,137 | 30,609 | 18,026 | ||||||||||||||
Lease agreement | 20,935 | 19,054 | 19,054 | — | — | ||||||||||||||
Total | $ | 1,546,495 | $ | 1,416,656 | $ | 1,207,029 | $ | 601,789 | $ | 403,364 |
•An earnings simulation measures the effect of changing interest rates on net interestincome and earnings. Earnings simulation is more detailed than gap analysis. Under this approach, the repricing characteristicsof each asset and liability instrument are programmed into a computer simulation model. This programming allows the Bankto refine important characteristics such as caps, floors, and time lag. It also allows the Bank to include the impact of new businessactivity in the analysis. Gap reporting only considers the existing balance sheet position. |
Hypothetical Change in Interest Rate - Rate Shock | ||||||||||||
December 31, 2019 | December 31, 2018 | |||||||||||
Change in Interest Rate (Basis Points) | Percent Change in Net Interest Income | Percent Change in Fair Value of Equity | Percent Change in Net Interest Income | Percent Change in Fair Value of Equity | ||||||||
+300 | 7.7 | % | (4.4 | )% | 13.5 | % | (4.7 | )% | ||||
+200 | 5.6 | (0.8 | ) | 9.4 | (1.9 | ) | ||||||
+100 | 3.0 | 0.4 | 5.0 | (0.2 | ) | |||||||
Base | — | — | — | — | ||||||||
-100 | (3.6 | )% | 0.1 | % | (6.1 | )% | (2.1 | )% |
Hypothetical Change in Interest Rate - Rate Ramp | ||||||
December 31, 2019 | December 31, 2018 | |||||
Change in Interest Rate (Basis Points) | Percent Change in Net Interest Income | Percent Change in Net Interest Income | ||||
+300 | 9.1 | % | 7.1 | % | ||
+200 | 6.2 | 4.9 | ||||
+100 | 3.1 | 2.5 | ||||
Base | — | — | ||||
-100 | (3.2 | )% | (3.0 | )% |
2019 Quarters | 2018 Quarters | ||||||||||||||||||||||||||||||
Fourth | Third | Second | First | Fourth | Third | Second | First | ||||||||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||||||||||
Income Statement Data: | |||||||||||||||||||||||||||||||
Interest income | $ | 55,180 | $ | 55,529 | $ | 54,192 | $ | 51,317 | $ | 47,068 | $ | 40,775 | $ | 36,906 | $ | 32,131 | |||||||||||||||
Interest expense | 18,001 | 19,743 | 19,318 | 17,712 | 14,753 | 11,807 | 10,958 | 8,994 | |||||||||||||||||||||||
Net interest income | 37,179 | 35,786 | 34,874 | 33,605 | 32,315 | 28,968 | 25,948 | 23,137 | |||||||||||||||||||||||
Provision for loan losses | 19,350 | 4,850 | 2,850 | 2,850 | 4,500 | 3,000 | 3,000 | 3,000 | |||||||||||||||||||||||
Noninterest income | 2,186 | 3,212 | 1,672 | 1,645 | 1,195 | 1,185 | 1,730 | 1,973 | |||||||||||||||||||||||
Noninterest expense | 21,885 | 21,172 | 21,960 | 22,631 | 20,166 | 19,875 | 25,556 | 20,158 | |||||||||||||||||||||||
Income before taxes | (1,870 | ) | 12,976 | 11,736 | 9,769 | 8,844 | 7,278 | (878 | ) | 1,952 | |||||||||||||||||||||
Income tax expense (benefit) | (1,170 | ) | 2,592 | 2,297 | 419 | (1,490 | ) | 924 | (1,156 | ) | (672 | ) | |||||||||||||||||||
Net income (loss) | (700 | ) | 10,384 | 9,439 | 9,350 | 10,334 | 6,354 | 278 | 2,624 | ||||||||||||||||||||||
Preferred stock dividends | — | — | — | 175 | 525 | 525 | 525 | 525 | |||||||||||||||||||||||
Net income (loss) available to common stockholders | (700 | ) | 10,384 | 9,439 | 9,175 | 9,809 | 5,829 | (247 | ) | 2,099 | |||||||||||||||||||||
Share and Per Share Data: | |||||||||||||||||||||||||||||||
Basic earnings (loss) per share(1) | $ | (0.01 | ) | $ | 0.22 | $ | 0.21 | $ | 0.20 | $ | 0.22 | $ | 0.15 | $ | (0.01 | ) | $ | 0.07 | |||||||||||||
Diluted earnings (loss) per share(1) | (0.01 | ) | 0.21 | 0.20 | 0.20 | 0.22 | 0.15 | (0.01 | ) | 0.07 | |||||||||||||||||||||
Book value per share | 11.58 | 11.59 | 11.00 | 10.63 | 10.21 | 9.43 | 8.80 | 8.12 | |||||||||||||||||||||||
Weighted average common shares outstanding - basic | 51,952,712 | 48,351,553 | 45,236,264 | 45,093,442 | 43,853,170 | 37,790,614 | 33,093,372 | 30,794,758 | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted | 52,748,312 | 49,164,549 | 46,211,780 | 45,960,267 | 44,920,448 | 38,778,624 | 34,291,222 | 32,097,870 | |||||||||||||||||||||||
Shares outstanding at end of period | 51,969,203 | 51,969,203 | 45,367,641 | 45,202,370 | 45,074,322 | 40,261,480 | 35,496,278 | 31,135,720 | |||||||||||||||||||||||
(1) Quarterly common Earnings Per Share (‘‘EPS’’) and diluted EPS may not sum to the full fiscal year EPS and diluted EPS as a result of differences in the computed weighted average shares outstanding and rounding differences. |
The Company has not made any material changes in the accounting methodology used to evaluate the fair market value of assets or liabilities when observable market prices and parameters are not available and management judgment is necessary. Based on current applicable GAAP guidance, the Company does not believe there is a reasonable likelihood that there will be a material change in the future estimates or assumptions used to record the fair market value of assets and liabilities. The Company’s investment portfolio, derivatives, impaired loans, assets held-for-sale and foreclosed assets require management’s judgment to determine the asset’s value. In the event the Company was required to decrease (increase) the investment portfolio’s fair value, the result would be a decline (increase) in total assets, In the event the Company was required to decrease (increase) the fair market value of derivatives, assets held-for-sale and foreclosed assets, the result would be a decline (increase) in total assets and net income. Impaired loans impact the ALLL. See the ALLL discussion above. |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Non-GAAP core operating income: | ||||||||||||||||||||
Net income | $ | 28,473 | $ | 19,590 | $ | 5,849 | $ | 10,311 | $ | 7,469 | ||||||||||
Add: restructuring charges | — | 4,733 | — | — | — | |||||||||||||||
Less: tax effect(1) | — | 1,381 | — | — | — | |||||||||||||||
Restructuring charges, net of tax | — | 3,352 | — | — | — | |||||||||||||||
Add: fixed asset impairments | 424 | 171 | 1,903 | — | — | |||||||||||||||
Less: tax effect(2) | 109 | 44 | 737 | — | — | |||||||||||||||
Fixed asset impairments, net of tax | 315 | 127 | 1,166 | — | — | |||||||||||||||
Add: state tax credit(3) | (1,361 | ) | (3,129 | ) | — | — | — | |||||||||||||
Add: 2017 Tax Cut and Jobs Act(3) | — | — | 2,701 | — | — | |||||||||||||||
Non-GAAP core operating income | $ | 27,427 | $ | 19,940 | $ | 9,716 | $ | 10,311 | $ | 7,469 | ||||||||||
(1) Represents the tax impact of the adjustments above at a tax rate of 25.73%, plus a permanent tax benefit associated with stock-based grants that were exercised prior to our former CEO’s departure. | ||||||||||||||||||||
(2) Represents the tax impact of the adjustments above at a tax rate of 25.73% for fiscal years 2019 and 2018 and 38.73% for fiscal years prior to 2018. | ||||||||||||||||||||
(3) No tax effect. |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Non-GAAP core operating return on average assets: | ||||||||||||||||||||
Net income | $ | 28,473 | $ | 19,590 | $ | 5,849 | $ | 10,311 | $ | 7,469 | ||||||||||
Non-GAAP core operating income | 27,427 | 19,940 | 9,716 | 10,311 | 7,469 | |||||||||||||||
Average assets | $ | 4,499,764 | $ | 3,494,655 | $ | 2,452,797 | $ | 1,839,563 | $ | 1,410,447 | ||||||||||
Return on average assets | 0.63 | % | 0.56 | % | 0.24 | % | 0.56 | % | 0.53 | % | ||||||||||
Non-GAAP core operating return on average assets | 0.61 | % | 0.57 | % | 0.40 | % | 0.56 | % | 0.53 | % |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Non-GAAP core operating return on average equity: | ||||||||||||||||||||
Net income | $ | 28,473 | $ | 19,590 | $ | 5,849 | $ | 10,311 | $ | 7,469 | ||||||||||
Non-GAAP core operating income | 27,427 | 19,940 | 9,716 | 10,311 | 7,469 | |||||||||||||||
Less: Preferred stock dividends | 175 | 2,100 | 2,100 | 2,100 | 2,066 | |||||||||||||||
Net income available to common stockholders | 28,298 | 17,490 | 3,749 | 8,211 | 5,403 | |||||||||||||||
Non-GAAP core operating income available to common stockholders | 27,252 | 17,840 | 7,616 | 8,211 | 5,403 | |||||||||||||||
Average common equity | $ | 526,225 | $ | 327,446 | $ | 245,193 | $ | 149,132 | $ | 117,343 | ||||||||||
GAAP return on average common equity | 5.38 | % | 5.34 | % | 1.53 | % | 5.51 | % | 4.60 | % | ||||||||||
Non-GAAP core operating return on common equity | 5.18 | % | 5.45 | % | 3.11 | % | 5.51 | % | 4.60 | % |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||
Tangible common stockholders’ equity and tangible book value per share: | ||||||||||||||||||||
Stockholders’ equity | $ | 601,644 | $ | 490,336 | $ | 287,147 | $ | 214,837 | $ | 160,004 | ||||||||||
Less: Goodwill and other intangible assets | 7,694 | 7,796 | 7,897 | 7,998 | 8,100 | |||||||||||||||
Less: Preferred stock | — | 30,000 | 30,000 | 30,000 | 30,000 | |||||||||||||||
Tangible common stockholders’ equity | $ | 593,950 | $ | 452,540 | $ | 249,250 | $ | 176,839 | $ | 121,904 | ||||||||||
Shares outstanding at end of period | 51,969,203 | 45,074,322 | 30,686,256 | 25,194,872 | 19,661,718 | |||||||||||||||
Book value per share | $ | 11.58 | $ | 10.21 | $ | 8.38 | $ | 7.34 | $ | 6.61 | ||||||||||
Tangible book value per share | $ | 11.43 | $ | 10.04 | $ | 8.12 | $ | 7.02 | $ | 6.20 |
As of or for the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Non-GAAP core operating efficiency ratio - tax-equivalent: | ||||||||||||||||||||
Noninterest expense | $ | 87,648 | $ | 85,755 | $ | 62,089 | $ | 40,587 | $ | 30,562 | ||||||||||
Less: Restructuring charges | — | 4,733 | — | — | — | |||||||||||||||
Non-GAAP noninterest expense (numerator) | 87,648 | 81,022 | 62,089 | 40,587 | 30,562 | |||||||||||||||
Net interest income | 141,444 | 110,368 | 74,818 | 54,053 | 42,267 | |||||||||||||||
Tax-equivalent interest income | 2,522 | 3,099 | 5,439 | 4,001 | 2,637 | |||||||||||||||
Noninterest income | 8,715 | 6,083 | 3,679 | 3,407 | 2,365 | |||||||||||||||
Add: Fixed asset impairments | 424 | 171 | 1,903 | — | — | |||||||||||||||
Non-GAAP operating revenue (denominator) | $ | 153,105 | $ | 119,721 | $ | 85,839 | $ | 61,461 | $ | 47,269 | ||||||||||
Efficiency ratio | 58.37 | % | 73.64 | % | 79.10 | % | 70.64 | % | 68.48 | % | ||||||||||
Non-GAAP core operating efficiency ratio - tax-equivalent | 57.25 | % | 67.68 | % | 72.33 | % | 66.04 | % | 64.66 | % |
As of December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Cash and cash equivalents | $ | 187,320 | $ | 216,541 | |||
Available-for-sale securities - taxable | 298,208 | 296,133 | |||||
Available-for-sale securities - tax-exempt | 443,426 | 367,545 | |||||
Premises and equipment, held for sale | — | 3,444 | |||||
Loans, net of allowance for loan losses of $56,896 and $37,826 at December 31, 2019 and 2018, respectively | 3,795,348 | 3,022,921 | |||||
Premises and equipment, net | 70,210 | 74,945 | |||||
Restricted equity securities | 17,278 | 14,525 | |||||
Interest receivable | 15,716 | 14,092 | |||||
Foreclosed assets held for sale | 3,619 | — | |||||
Deferred tax asset | 13,782 | 16,316 | |||||
Goodwill and other intangible assets, net | 7,694 | 7,796 | |||||
Bank-owned life insurance | 65,689 | 63,811 | |||||
Other | 12,943 | 9,146 | |||||
Total assets | $ | 4,931,233 | $ | 4,107,215 | |||
Liabilities and stockholders’ equity | |||||||
Deposits | |||||||
Noninterest bearing | $ | 521,826 | $ | 484,284 | |||
Savings, NOW and money market | 2,162,187 | 1,714,136 | |||||
Time | 1,239,746 | 1,009,677 | |||||
Total deposits | 3,923,759 | 3,208,097 | |||||
Federal funds purchased and repurchase agreements | 14,921 | 75,406 | |||||
Federal Home Loan Bank advances | 358,743 | 312,985 | |||||
Other borrowings | 921 | 884 | |||||
Interest payable and other liabilities | 31,245 | 19,507 | |||||
Total liabilities | 4,329,589 | 3,616,879 | |||||
Stockholders’ equity | |||||||
Redeemable preferred stock, $0.01 par value, $25 liquidation value: | |||||||
authorized - 5,000,000 shares, issued - 0 and 1,200,000 shares at December 31, 2019 and 2018, respectively | — | 12 | |||||
Common stock, $0.01 par value: | |||||||
authorized - 200,000,000 shares, issued - 51,969,203 and 45,074,322 shares at December 31, 2019 and 2018, respectively | 520 | 451 | |||||
Additional paid-in capital | 519,870 | 454,512 | |||||
Retained earnings | 64,888 | 38,567 | |||||
Other | (85 | ) | (196 | ) | |||
Accumulated other comprehensive income (loss) | 16,451 | (3,010 | ) | ||||
Total stockholders’ equity | 601,644 | 490,336 | |||||
Total liabilities and stockholders’ equity | $ | 4,931,233 | $ | 4,107,215 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Interest Income | |||||||||||
Loans, including fees | $ | 191,527 | $ | 130,075 | $ | 75,245 | |||||
Available-for-sale securities - Taxable | 8,540 | 7,972 | 4,925 | ||||||||
Available-for-sale securities - Tax-exempt | 12,011 | 14,757 | 15,539 | ||||||||
Deposits with financial institutions | 3,053 | 3,096 | 1,430 | ||||||||
Dividends on bank stocks | 1,087 | 980 | 677 | ||||||||
Total interest income | 216,218 | 156,880 | 97,816 | ||||||||
Interest Expense | |||||||||||
Deposits | 67,668 | 39,372 | 18,676 | ||||||||
Fed funds purchased and repurchase agreements | 592 | 1,068 | 294 | ||||||||
Advances from Federal Home Loan Bank | 6,367 | 5,841 | 3,904 | ||||||||
Other borrowings | 147 | 231 | 124 | ||||||||
Total interest expense | 74,774 | 46,512 | 22,998 | ||||||||
Net Interest Income | 141,444 | 110,368 | 74,818 | ||||||||
Provision for Loan Losses | 29,900 | 13,500 | 12,000 | ||||||||
Net Interest Income after Provision for Loan Losses | 111,544 | 96,868 | 62,818 | ||||||||
Noninterest Income | |||||||||||
Service charges and fees on customer accounts | 604 | 444 | 1,201 | ||||||||
Gain on sale of available-for-sale debt securities | 987 | 538 | 406 | ||||||||
Impairment of premises and equipment held for sale | (424 | ) | (171 | ) | (1,903 | ) | |||||
Gain on sale of loans | 207 | 827 | 827 | ||||||||
Income from bank-owned life insurance | 1,878 | 1,969 | 1,452 | ||||||||
Swap fee income, net | 2,753 | 285 | — | ||||||||
ATM and credit card interchange income | 1,785 | 1,224 | 706 | ||||||||
Other noninterest income | 925 | 967 | 990 | ||||||||
Total noninterest income | 8,715 | 6,083 | 3,679 | ||||||||
Noninterest Expense | |||||||||||
Salaries and employee benefits | 57,114 | 56,118 | 39,461 | ||||||||
Occupancy | 8,349 | 8,214 | 5,803 | ||||||||
Professional fees | 2,964 | 3,320 | 3,060 | ||||||||
Deposit insurance premiums | 2,787 | 3,186 | 1,575 | ||||||||
Data processing | 2,544 | 1,995 | 1,441 | ||||||||
Advertising | 2,455 | 2,691 | 2,648 | ||||||||
Software and communication | 3,317 | 2,630 | 1,961 | ||||||||
Equipment costs, other asset depreciation and amortization | 1,734 | 1,788 | 1,272 | ||||||||
Other noninterest expense | 6,384 | 5,813 | 4,868 | ||||||||
Total noninterest expense | 87,648 | 85,755 | 62,089 | ||||||||
Net Income Before Taxes | 32,611 | 17,196 | 4,408 | ||||||||
Income tax expense (benefit) | 4,138 | (2,394 | ) | (1,441 | ) | ||||||
Net Income | $ | 28,473 | $ | 19,590 | $ | 5,849 | |||||
Basic Earnings Per Share(1) | $ | 0.59 | $ | 0.48 | $ | 0.12 | |||||
Diluted Earnings Per Share(1) | $ | 0.58 | $ | 0.47 | $ | 0.12 | |||||
(1) Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018. |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Net Income | $ | 28,473 | $ | 19,590 | $ | 5,849 | |||||
Other Comprehensive Income | |||||||||||
Unrealized gain (loss) on available-for-sale securities | 26,682 | (12,755 | ) | 14,975 | |||||||
Less: income tax (benefit) | 6,545 | (3,125 | ) | 4,539 | |||||||
Unrealized gain (loss) on available-for-sale securities, net of income tax (benefit) | 20,137 | (9,630 | ) | 10,436 | |||||||
Reclassification adjustment for realized gains included in income | 987 | 538 | 405 | ||||||||
Less: income tax | 242 | 132 | 150 | ||||||||
Less: reclassification adjustment for realized gains included in income, net of income tax | 745 | 406 | 255 | ||||||||
Other comprehensive income (loss) | 19,392 | (10,036 | ) | 10,181 | |||||||
Comprehensive Income | $ | 47,865 | $ | 9,554 | $ | 16,030 |
Preferred Stock | Common Stock | Additional Paid in | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||
Shares | Amount | Shares(1) | Amount(1) | Capital | Earnings(1) | Other | Income (Loss) | Total | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
December 31, 2016 | 1,200,000 | $ | 12 | 25,194,872 | $ | 252 | $ | 197,812 | $ | 21,384 | $ | (313 | ) | $ | (4,310 | ) | $ | 214,837 | |||||||||||||||
Net income | — | — | — | — | — | 5,849 | — | — | 5,849 | ||||||||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | — | 10,181 | 10,181 | ||||||||||||||||||||||||
Reclassification of stranded tax effects due to Tax Cuts and Jobs Act | — | — | — | — | — | (1,155 | ) | — | 1,155 | — | |||||||||||||||||||||||
Issuance of shares | — | — | 5,448,744 | 55 | 55,729 | (28 | ) | — | — | 55,756 | |||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 42,640 | — | 179 | — | — | — | 179 | ||||||||||||||||||||||||
Preferred dividends declared | — | — | — | — | — | (2,100 | ) | — | — | (2,100 | ) | ||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 13 | — | 57 | — | 70 | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 2,247 | — | — | — | 2,247 | ||||||||||||||||||||||||
Employee stock purchase plan additions | — | — | — | — | 128 | — | — | — | 128 | ||||||||||||||||||||||||
December 31, 2017 | 1,200,000 | 12 | 30,686,256 | 307 | 256,108 | 23,950 | (256 | ) | 7,026 | 287,147 | |||||||||||||||||||||||
Net income | 19,590 | 19,590 | |||||||||||||||||||||||||||||||
Change in unrealized depreciation on available-for-sale securities | — | — | — | — | — | — | — | (10,036 | ) | (10,036 | ) | ||||||||||||||||||||||
Issuance of shares | — | — | 14,805,128 | 148 | 204,141 | (74 | ) | — | — | 204,215 | |||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 352,746 | 4 | (2,134 | ) | (1 | ) | — | — | (2,131 | ) | |||||||||||||||||||||
Retired shares | — | — | (769,808 | ) | (8 | ) | (8,218 | ) | (2,798 | ) | — | — | (11,024 | ) | |||||||||||||||||||
Preferred dividends declared | — | — | — | — | — | (2,100 | ) | — | — | (2,100 | ) | ||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 11 | — | 60 | — | 71 | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 4,439 | — | — | — | 4,439 | ||||||||||||||||||||||||
Employee stock purchase plan additions | — | — | — | — | 165 | — | — | — | 165 | ||||||||||||||||||||||||
December 31, 2018 | 1,200,000 | $ | 12 | 45,074,322 | $ | 451 | $ | 454,512 | $ | 38,567 | $ | (196 | ) | $ | (3,010 | ) | $ | 490,336 |
Preferred Stock | Common Stock | Additional Paid in | Retained | Accumulated Other Comprehensive | |||||||||||||||||||||||||||||
Shares | Amount | Shares(1) | Amount(1) | Capital | Earnings(1) | Other | Income (Loss) | Total | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||
December 31, 2018 | 1,200,000 | $ | 12 | 45,074,322 | $ | 451 | $ | 454,512 | $ | 38,567 | $ | (196 | ) | $ | (3,010 | ) | $ | 490,336 | |||||||||||||||
Net income | — | — | — | — | — | 28,473 | — | — | 28,473 | ||||||||||||||||||||||||
Change in unrealized appreciation on available-for-sale securities | — | — | — | — | — | — | — | 19,392 | 19,392 | ||||||||||||||||||||||||
Issuance of shares | — | — | 6,851,213 | 68 | 88,803 | — | — | — | 88,871 | ||||||||||||||||||||||||
Issuance of shares from equity-based awards | — | — | 53,668 | 1 | (246 | ) | — | — | — | (245 | ) | ||||||||||||||||||||||
Retired shares | (1,200,000 | ) | (12 | ) | (10,000 | ) | — | (30,088 | ) | (55 | ) | — | (30,155 | ) | |||||||||||||||||||
Preferred dividends declared | — | — | — | — | — | (175 | ) | — | — | (175 | ) | ||||||||||||||||||||||
Employee receivables from sale of stock | — | — | — | — | 6 | — | 111 | — | 117 | ||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 4,688 | — | — | — | 4,688 | ||||||||||||||||||||||||
Employee stock purchase plan additions | — | — | — | — | 36 | — | — | — | 36 | ||||||||||||||||||||||||
Adoption of ASU 2016-01 | — | — | — | — | — | (69 | ) | — | 69 | — | |||||||||||||||||||||||
Adoption of ASU 2018-07, net of tax of $306 | — | — | — | — | 2,159 | (1,853 | ) | — | — | 306 | |||||||||||||||||||||||
December 31, 2019 | — | $ | — | 51,969,203 | $ | 520 | $ | 519,870 | $ | 64,888 | $ | (85 | ) | $ | 16,451 | $ | 601,644 | ||||||||||||||||
(1) Share data has been adjusted to reflect a 2-for-1 stock split effected in the form of a dividend on December 21, 2018. |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Operating Activities | |||||||||||
Net income | $ | 28,473 | $ | 19,590 | $ | 5,849 | |||||
Items not requiring (providing) cash | |||||||||||
Depreciation and amortization | 5,318 | 4,675 | 3,057 | ||||||||
Provision for loan losses | 29,900 | 13,500 | 12,000 | ||||||||
Accretion of discounts and amortization of premiums on securities | 5,568 | 5,340 | 5,357 | ||||||||
Equity based compensation | 4,725 | 4,604 | 2,375 | ||||||||
(Gain) loss on disposal of fixed assets | 101 | (4 | ) | (9 | ) | ||||||
Gain on sale of loans | (207 | ) | (827 | ) | (827 | ) | |||||
Deferred income taxes | (3,486 | ) | (239 | ) | (3,206 | ) | |||||
Net increase in bank-owned life insurance | (1,878 | ) | (1,969 | ) | (1,452 | ) | |||||
Net gains on available-for-sale debt and equity securities | (1,049 | ) | (538 | ) | (406 | ) | |||||
Impairment of assets held for sale | 424 | 171 | 1,903 | ||||||||
Dividends on Federal Home Loan Bank stock | (1,083 | ) | (975 | ) | (675 | ) | |||||
Stock dividends on Community Reinvestment Act mutual fund | (49 | ) | (47 | ) | (44 | ) | |||||
Changes in | |||||||||||
Interest receivable | (1,624 | ) | (1,883 | ) | (3,410 | ) | |||||
Other assets | (3,565 | ) | (3,136 | ) | (3,172 | ) | |||||
Other liabilities | 12,262 | 7,588 | 5,480 | ||||||||
Net cash provided by operating activities | 73,830 | 45,850 | 22,820 | ||||||||
Investing Activities | |||||||||||
Net change in loans | (805,946 | ) | (1,066,483 | ) | (705,838 | ) | |||||
Purchases of available-for-sale securities | (233,116 | ) | (209,290 | ) | (208,539 | ) | |||||
Proceeds from maturities of available-for-sale securities | 75,478 | 47,157 | 47,491 | ||||||||
Proceeds from sale of available-for-sale securities | 100,907 | 183,987 | 61,701 | ||||||||
Proceeds from the sale of foreclosed assets | — | — | 55 | ||||||||
Purchase of premises and equipment | (850 | ) | (42,832 | ) | (16,517 | ) | |||||
Purchase of restricted equity securities | (2,792 | ) | (1,766 | ) | (5,611 | ) | |||||
Proceeds from the sale of fixed assets | 3,324 | 1,862 | 20 | ||||||||
Proceeds from sale of restricted equity securities | 1,121 | 2,919 | 167 | ||||||||
Purchase of bank-owned life insurance | — | — | (25,000 | ) | |||||||
Net cash used in investing activities | (861,874 | ) | (1,084,446 | ) | (852,071 | ) | |||||
Financing Activities | |||||||||||
Net increase in demand deposits, savings, NOW and money market accounts | 485,593 | 646,634 | 372,225 | ||||||||
Net increase in time deposits | 230,069 | 258,099 | 236,838 | ||||||||
Net (decrease) increase in fed funds purchased and repurchase agreements | (60,485 | ) | 36,784 | 17,347 | |||||||
Proceeds from line of credit | — | 35,000 | — | ||||||||
Repayment of line of credit | — | (35,000 | ) | (10,000 | ) | ||||||
Proceeds from Federal Home Loan Bank advances | 105,000 | 43,000 | 148,000 | ||||||||
Repayment of Federal Home Loan Bank advances | (59,242 | ) | (24,230 | ) | (39,218 | ) | |||||
Net proceeds (repayments) of Federal Home Loan Bank line of credit | — | (25,000 | ) | 25,000 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Retirement of preferred stock | (30,000 | ) | — | — | |||||||
Issuance of common shares, net of issuance cost | 88,324 | 203,848 | 55,756 | ||||||||
Proceeds from employee stock purchase plan | 547 | 367 | 235 | ||||||||
Common stock purchased and retired | (155 | ) | (11,024 | ) | — | ||||||
Acquisition of common stock for tax withholding obligations | (245 | ) | (2,132 | ) | (55 | ) | |||||
Net decrease in employee receivables | 117 | 71 | 71 | ||||||||
Dividends paid on preferred stock | (700 | ) | (2,100 | ) | (2,100 | ) | |||||
Net cash provided by financing activities | 758,823 | 1,124,317 | 804,099 | ||||||||
Increase (decrease) in cash and cash equivalents | (29,221 | ) | 85,721 | (25,152 | ) | ||||||
Cash and cash equivalents, beginning of period | 216,541 | 130,820 | 155,972 | ||||||||
Cash and cash equivalents, end of period | $ | 187,320 | $ | 216,541 | $ | 130,820 | |||||
Supplemental Cash Flows Information | |||||||||||
Interest paid | $ | 73,057 | $ | 45,414 | $ | 22,254 | |||||
Income taxes paid (received) | (29 | ) | 29 | 4,926 | |||||||
Foreclosed assets in settlement of loans | 3,619 | — | — | ||||||||
Dividends declared and unpaid on preferred stock | $ | — | $ | 525 | $ | 525 |
The Company gathered all potential lease and embedded lease agreements during 2019 and is evaluating the applicability and impact to the financial statements. The Company’s current operating leases relate primarily to three branch locations, as well as a future lease obligation mentioned in the subsequent event note. Based on these current leases, the Company anticipates recognizing a lease liability and related right-to-use asset on its balance sheet, with an immaterial impact to its income statement compared to the current lease accounting model. However, the ultimate impact of the standard will depend on the Company's lease portfolio as of the adoption date. |
Adoption of ASU 2018-07 required the Company to make a one time transfer of $2 million from retained earnings to additional paid in capital. | ||||||
The update did not apply to revenue associated with financial instruments, including loans and securities that are accounted for under other GAAP, which comprises a significant portion of the Company’s revenue stream. In addition, the Company’s noninterest income is generated by customer transactions or through the passage of time and as a result the pattern or timing of income recognition was not impacted. |
would have been charged off if the entity had not applied a nonaccrual accounting policy. | ||||||
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Earnings per Share | |||||||||||
Net income | $ | 28,473 | $ | 19,590 | $ | 5,849 | |||||
Less: preferred stock dividends | 175 | 2,100 | 2,100 | ||||||||
Net income available to common stockholders | $ | 28,298 | $ | 17,490 | $ | 3,749 | |||||
Weighted average common shares | 47,679,184 | 36,422,612 | 30,086,530 | ||||||||
Earnings per share | $ | 0.59 | $ | 0.48 | $ | 0.12 | |||||
Dilutive Earnings Per Share | |||||||||||
Net income available to common stockholders | $ | 28,298 | $ | 17,490 | $ | 3,749 | |||||
Weighted average common shares | 47,679,184 | 36,422,612 | 30,086,530 | ||||||||
Effect of dilutive shares | 896,951 | 1,069,955 | 876,894 | ||||||||
Weighted average dilutive common shares | 48,576,135 | 37,492,567 | 30,963,424 | ||||||||
Diluted earnings per share | $ | 0.58 | $ | 0.47 | $ | 0.12 | |||||
Dilutive shares not included because to do so would be antidilutive | 521,659 | 407,852 | 486,784 |
December 31, 2019 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Approximate Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 151,037 | $ | 1,668 | $ | 193 | $ | 152,512 | |||||||
Collateralized mortgage obligations - GSE residential | 128,876 | 625 | 289 | 129,212 | |||||||||||
State and political subdivisions | 436,448 | 19,996 | 104 | 456,340 | |||||||||||
Corporate bonds | 1,321 | 88 | — | 1,409 | |||||||||||
Total available-for-sale debt securities | 717,682 | 22,377 | 586 | 739,473 | |||||||||||
Equity securities | |||||||||||||||
Mutual funds | 2,190 | — | 29 | 2,161 | |||||||||||
Total equity securities | 2,190 | — | 29 | 2,161 | |||||||||||
Total available-for-sale securities | $ | 719,872 | $ | 22,377 | $ | 615 | $ | 741,634 |
December 31, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Approximate Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 131,215 | $ | 162 | $ | 2,090 | $ | 129,287 | |||||||
Collateralized mortgage obligations - GSE residential | 154,110 | 287 | 1,771 | 152,626 | |||||||||||
State and political subdivisions | 378,595 | 3,908 | 4,445 | 378,058 | |||||||||||
Corporate bonds | 1,613 | 70 | 26 | 1,657 | |||||||||||
Total available-for-sale debt securities | 665,533 | 4,427 | 8,332 | 661,628 | |||||||||||
Equity securities | |||||||||||||||
Mutual funds | 2,141 | — | 91 | 2,050 | |||||||||||
Total equity securities | 2,141 | — | 91 | 2,050 | |||||||||||
Total available-for-sale securities | $ | 667,674 | $ | 4,427 | $ | 8,423 | $ | 663,678 |
December 31, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Approximate Fair Value | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale debt securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 70,681 | $ | 15 | $ | 801 | $ | 69,895 | |||||||
Collateralized mortgage obligations - GSE residential | 95,478 | 94 | 1,290 | 94,282 | |||||||||||
State and political subdivisions | 522,131 | 12,961 | 1,741 | 533,351 | |||||||||||
Corporate bonds | 3,900 | 106 | — | 4,006 | |||||||||||
Total available-for-sale debt securities | 692,190 | 13,176 | 3,832 | 701,534 | |||||||||||
Equity securities | |||||||||||||||
Mutual funds | 2,094 | — | 47 | 2,047 | |||||||||||
Total equity securities | 2,094 | — | 47 | 2,047 | |||||||||||
Total available-for-sale securities | $ | 694,284 | $ | 13,176 | $ | 3,879 | $ | 703,581 |
December 31, 2019 | |||||||||||||||||||
Within | After One to | After Five to | After | ||||||||||||||||
One Year | Five Years | Ten Years | Ten Years | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||
Mortgage-backed - GSE residential(1) | |||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | 329 | $ | 150,708 | $ | 151,037 | |||||||||
Estimated fair value | — | — | 341 | 152,171 | 152,512 | ||||||||||||||
Weighted average yield(2) | — | % | — | % | 4.01 | % | 2.57 | % | 2.58 | % | |||||||||
Collateralized mortgage obligations - GSE residential(1) | |||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | 2,527 | $ | 126,349 | $ | 128,876 | |||||||||
Estimated fair value | — | — | 2,594 | 126,618 | 129,212 | ||||||||||||||
Weighted average yield(2) | — | % | — | % | 2.77 | % | 2.47 | % | 2.47 | % | |||||||||
State and political subdivisions | |||||||||||||||||||
Amortized cost | $ | 523 | $ | 6,050 | $ | 51,747 | $ | 378,128 | $ | 436,448 | |||||||||
Estimated fair value | 523 | 6,169 | 55,001 | 394,647 | 456,340 | ||||||||||||||
Weighted average yield(2) | 9.38 | % | 5.76 | % | 3.59 | % | 3.08 | % | 3.19 | % | |||||||||
Corporate bonds | |||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | 1,321 | $ | — | $ | 1,321 | |||||||||
Estimated fair value | — | — | 1,409 | — | 1,409 | ||||||||||||||
Weighted average yield(2) | — | % | — | % | 5.68 | % | — | % | 5.68 | % | |||||||||
Total available-for-sale debt securities | |||||||||||||||||||
Amortized cost | $ | 523 | $ | 6,050 | $ | 55,924 | $ | 655,185 | $ | 717,682 | |||||||||
Estimated fair value | 523 | 6,169 | 59,345 | 673,436 | 739,473 | ||||||||||||||
Weighted average yield(2) | 9.38 | % | 5.76 | % | 3.60 | % | 2.85 | % | 2.94 | % | |||||||||
(1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. | |||||||||||||||||||
(2) Yields are calculated based on amortized cost. |
December 31, 2018 | |||||||||||||||||||
Within | After One to | After Five to | After | ||||||||||||||||
One Year | Five Years | Ten Years | Ten Years | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Available-for-sale debt securities | |||||||||||||||||||
Mortgage-backed - GSE residential(1) | |||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | 1,436 | $ | 129,779 | $ | 131,215 | |||||||||
Estimated fair value | — | — | 1,426 | 127,861 | 129,287 | ||||||||||||||
Weighted average yield(2) | — | % | — | % | 2.91 | % | 2.90 | % | 2.90 | % | |||||||||
Collateralized mortgage obligations - GSE residential(1) | |||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | 95 | $ | 154,015 | $ | 154,110 | |||||||||
Estimated fair value | — | — | 97 | 152,529 | 152,626 | ||||||||||||||
Weighted average yield(2) | — | % | — | % | 4.38 | % | 2.95 | % | 2.95 | % | |||||||||
State and political subdivisions | |||||||||||||||||||
Amortized cost | $ | 55 | $ | 3,041 | $ | 29,738 | $ | 345,761 | $ | 378,595 | |||||||||
Estimated fair value | 55 | 3,065 | 30,773 | 344,165 | 378,058 | ||||||||||||||
Weighted average yield(2) | 6.34 | % | 3.64 | % | 3.81 | % | 3.18 | % | 3.23 | % | |||||||||
Corporate bonds | |||||||||||||||||||
Amortized cost | $ | — | $ | — | $ | 1,434 | $ | 179 | $ | 1,613 | |||||||||
Estimated fair value | — | — | 1,470 | 187 | 1,657 | ||||||||||||||
Weighted average yield(2) | — | % | — | % | 5.50 | % | 5.08 | % | 5.45 | % | |||||||||
Total available-for-sale debt securities | |||||||||||||||||||
Amortized cost | $ | 55 | $ | 3,041 | $ | 32,703 | $ | 629,734 | $ | 665,533 | |||||||||
Estimated fair value | 55 | 3,065 | 33,766 | 624,742 | 661,628 | ||||||||||||||
Weighted average yield(2) | 6.34 | % | 3.64 | % | 3.85 | % | 3.07 | % | 3.11 | % | |||||||||
(1) Actual maturities may differ from contractual maturities because issuers may have the rights to call or prepay obligations with or without prepayment penalties. | |||||||||||||||||||
(2) Yields are calculated based on amortized cost. |
December 31, 2019 | ||||||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | ||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | ||||||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | ||||||||||||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 7,959 | $ | 38 | 2 | $ | 20,396 | $ | 155 | 4 | $ | 28,355 | $ | 193 | 6 | |||||||||||||||||
Collateralized mortgage obligations - GSE residential | 48,980 | 199 | 7 | 8,622 | 90 | 9 | 57,602 | 289 | 16 | |||||||||||||||||||||||
State and political subdivisions | 21,412 | 102 | 11 | 167 | 2 | 2 | 21,579 | 104 | 13 | |||||||||||||||||||||||
Corporate bonds | 530 | — | 1 | — | — | 0 | 530 | — | 1 | |||||||||||||||||||||||
Total temporarily impaired debt securities | $ | 78,881 | $ | 339 | 21 | $ | 29,185 | $ | 247 | 15 | $ | 108,066 | $ | 586 | 36 |
December 31, 2018 | |||||||||||||||||||||||||||||
Less than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | Fair Value | Unrealized Losses | Number of Securities | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
Available-for-Sale Debt Securities | |||||||||||||||||||||||||||||
Mortgage-backed - GSE residential | $ | 66,232 | $ | 369 | 10 | $ | 44,280 | $ | 1,721 | 11 | $ | 110,512 | $ | 2,090 | 21 | ||||||||||||||
Collateralized mortgage obligations - GSE residential | 4,639 | 42 | 1 | 68,362 | 1,729 | 20 | 73,001 | 1,771 | 21 | ||||||||||||||||||||
State and political subdivisions | 85,181 | 1,210 | 68 | 97,721 | 3,235 | 74 | 182,902 | 4,445 | 142 | ||||||||||||||||||||
Corporate bonds | 723 | 26 | 1 | — | — | 0 | 723 | 26 | 1 | ||||||||||||||||||||
Total temporarily impaired debt securities | $ | 156,775 | $ | 1,647 | 80 | $ | 210,363 | $ | 6,685 | 105 | $ | 367,138 | $ | 8,332 | 185 |
For the Year Ended December 31, | |||
2019 | |||
(Dollars in thousands) | |||
Net gains recognized during the period on equity securities | $ | 62 | |
Less: net gains recognized during the period on equity securities sold during the period | — | ||
Unrealized gain recognized during the reporting period on equity securities still held at the reporting date | $ | 62 |
As of December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Commercial | $ | 1,356,817 | $ | 1,134,414 | |||
Energy | 408,573 | 358,283 | |||||
Commercial real estate | 1,024,041 | 846,561 | |||||
Construction and land development | 628,418 | 440,032 | |||||
Residential real estate | 398,695 | 246,275 | |||||
Consumer | 45,163 | 43,814 | |||||
Gross loans | 3,861,707 | 3,069,379 | |||||
Less: Allowance for loan losses | 56,896 | 37,826 | |||||
Less: Net deferred loan fees and costs | 9,463 | 8,632 | |||||
Net loans | $ | 3,795,348 | $ | 3,022,921 |
As of or For the Year Ended December 31, 2019 | |||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||
Beginning balance | $ | 16,584 | $ | 10,262 | $ | 6,755 | $ | 2,475 | $ | 1,464 | $ | 286 | $ | 37,826 | |||||||||||||
Provision charged to expense | 27,219 | (1,273 | ) | 1,771 | 1,041 | 1,090 | 52 | 29,900 | |||||||||||||||||||
Charged-off | (7,954 | ) | (3,000 | ) | (441 | ) | — | (8 | ) | (20 | ) | (11,423 | ) | ||||||||||||||
Recoveries | 15 | 576 | — | — | — | 2 | 593 | ||||||||||||||||||||
Ending balance | $ | 35,864 | $ | 6,565 | $ | 8,085 | $ | 3,516 | $ | 2,546 | $ | 320 | $ | 56,896 | |||||||||||||
Ending balance | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 19,942 | $ | 1,949 | $ | 210 | $ | — | $ | 197 | $ | — | $ | 22,298 | |||||||||||||
Collectively evaluated for impairment | $ | 15,922 | $ | 4,616 | $ | 7,875 | $ | 3,516 | $ | 2,349 | $ | 320 | $ | 34,598 | |||||||||||||
Allocated to loans | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 70,876 | $ | 9,744 | $ | 10,492 | $ | — | $ | 2,388 | $ | — | $ | 93,500 | |||||||||||||
Collectively evaluated for impairment | $ | 1,285,941 | $ | 398,829 | $ | 1,013,549 | $ | 628,418 | $ | 396,307 | $ | 45,163 | $ | 3,768,207 | |||||||||||||
Ending balance | $ | 1,356,817 | $ | 408,573 | $ | 1,024,041 | $ | 628,418 | $ | 398,695 | $ | 45,163 | $ | 3,861,707 |
As of or For the Year Ended December 31, 2018 | |||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||
Beginning balance | $ | 11,378 | $ | 7,726 | $ | 4,668 | $ | 1,200 | $ | 905 | $ | 214 | $ | 26,091 | |||||||||||||
Provision charged to expense | 5,720 | 3,717 | 2,087 | 1,275 | 559 | $ | 142 | 13,500 | |||||||||||||||||||
Charged-off | (976 | ) | (1,256 | ) | — | — | — | $ | (71 | ) | (2,303 | ) | |||||||||||||||
Recoveries | 462 | 75 | — | — | — | $ | 1 | 538 | |||||||||||||||||||
Ending balance | $ | 16,584 | $ | 10,262 | $ | 6,755 | $ | 2,475 | $ | 1,464 | $ | 286 | $ | 37,826 | |||||||||||||
Ending balance | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 5,814 | $ | 3,108 | $ | 473 | $ | — | $ | 5 | $ | — | $ | 9,400 | |||||||||||||
Collectively evaluated for impairment | $ | 10,770 | $ | 7,154 | $ | 6,282 | $ | 2,475 | $ | 1,459 | $ | 286 | $ | 28,426 | |||||||||||||
Allocated to loans | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 78,147 | $ | 16,250 | $ | 15,227 | $ | — | $ | 2,027 | $ | — | $ | 111,651 | |||||||||||||
Collectively evaluated for impairment | $ | 1,056,267 | $ | 342,033 | $ | 831,334 | $ | 440,032 | $ | 244,248 | $ | 43,814 | $ | 2,957,728 | |||||||||||||
Ending balance | $ | 1,134,414 | $ | 358,283 | $ | 846,561 | $ | 440,032 | $ | 246,275 | $ | 43,814 | $ | 3,069,379 |
As of or For the Year Ended December 31, 2017 | |||||||||||||||||||||||||||
Commercial | Energy | Commercial Real Estate | Construction and Land Development | Residential Real Estate | Consumer | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||||
Beginning balance | $ | 9,315 | $ | 6,053 | $ | 3,755 | $ | 660 | $ | 851 | $ | 152 | $ | 20,786 | |||||||||||||
Provision charged to expense | 7,584 | 2,763 | 913 | 540 | 54 | 146 | 12,000 | ||||||||||||||||||||
Charged-off | (5,822 | ) | (1,090 | ) | — | — | — | (108 | ) | (7,020 | ) | ||||||||||||||||
Recoveries | 301 | — | — | — | — | 24 | 325 | ||||||||||||||||||||
Ending balance | $ | 11,378 | $ | 7,726 | $ | 4,668 | $ | 1,200 | $ | 905 | $ | 214 | $ | 26,091 |
As of December 31, 2019 | |||||||||||||||||||||||
Pass & Watch Grades 1-4 | Special Mention Grade 5 | Substandard Grade 6 | Doubtful Grade 7 | Loss Grade 8 | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial | $ | 1,258,952 | $ | 27,069 | $ | 70,796 | $ | — | $ | — | $ | 1,356,817 | |||||||||||
Energy | 392,233 | 9,460 | 2,340 | 4,540 | — | 408,573 | |||||||||||||||||
Commercial real estate | 1,007,921 | 9,311 | 5,866 | 943 | — | 1,024,041 | |||||||||||||||||
Construction and land development | 628,418 | — | — | — | — | 628,418 | |||||||||||||||||
Residential real estate | 394,495 | 1,789 | 2,411 | — | — | 398,695 | |||||||||||||||||
Consumer | 45,163 | — | — | — | — | 45,163 | |||||||||||||||||
Total | $ | 3,727,182 | $ | 47,629 | $ | 81,413 | $ | 5,483 | $ | — | $ | 3,861,707 |
As of December 31, 2018 | |||||||||||||||||||||||
Pass & Watch Grades 1-4 | Special Mention Grade 5 | Substandard Grade 6 | Doubtful Grade 7 | Loss Grade 8 | Total | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Commercial | $ | 1,056,505 | $ | — | $ | 73,824 | $ | 4,085 | $ | — | $ | 1,134,414 | |||||||||||
Energy | 339,720 | 5,376 | 13,187 | — | — | 358,283 | |||||||||||||||||
Commercial real estate | 831,290 | 6,950 | 7,209 | 1,112 | — | 846,561 | |||||||||||||||||
Construction and land development | 440,032 | — | — | — | — | 440,032 | |||||||||||||||||
Residential real estate | 244,178 | 70 | 2,027 | — | — | 246,275 | |||||||||||||||||
Consumer | 43,814 | — | — | — | — | 43,814 | |||||||||||||||||
Total | $ | 2,955,539 | $ | 12,396 | $ | 96,247 | $ | 5,197 | $ | — | $ | 3,069,379 |
As of December 31, 2019 | |||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Total Past Due | Current | Total Loans Receivable | Loans >= 90 Days and Accruing | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Commercial | $ | 1,091 | $ | 276 | $ | 30,911 | $ | 32,278 | $ | 1,324,539 | $ | 1,356,817 | $ | 37 | |||||||||||||
Energy | 2,340 | — | 4,593 | 6,933 | 401,640 | 408,573 | 53 | ||||||||||||||||||||
Commercial real estate | 316 | — | 4,589 | 4,905 | 1,019,136 | 1,024,041 | 4,501 | ||||||||||||||||||||
Construction and land development | 196 | — | — | 196 | 628,222 | 628,418 | — | ||||||||||||||||||||
Residential real estate | 2,347 | — | 1,919 | 4,266 | 394,429 | 398,695 | — | ||||||||||||||||||||
Equity lines of credit | — | 254 | — | 254 | 23,138 | 23,392 | — | ||||||||||||||||||||
Consumer installment | 2 | — | — | 2 | 21,769 | 21,771 | — | ||||||||||||||||||||
Consumer | 2 | 254 | — | 256 | 44,907 | 45,163 | — | ||||||||||||||||||||
Total | $ | 6,292 | $ | 530 | $ | 42,012 | $ | 48,834 | $ | 3,812,873 | $ | 3,861,707 | $ | 4,591 |
As of December 31, 2018 | |||||||||||||||||||||||||||
30-59 Days Past Due | 60-89 Days Past Due | 90 Days or More | Total Past Due | Current | Total Loans Receivable | Loans >= 90 Days and Accruing | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Commercial | $ | 1,040 | $ | — | $ | 4,137 | $ | 5,177 | $ | 1,129,237 | $ | 1,134,414 | $ | — | |||||||||||||
Energy | 1,994 | — | 9,218 | 11,212 | 347,071 | 358,283 | — | ||||||||||||||||||||
Commercial real estate | — | 425 | 2,253 | 2,678 | 843,883 | 846,561 | — | ||||||||||||||||||||
Construction and land development | — | — | — | — | 440,032 | 440,032 | — | ||||||||||||||||||||
Residential real estate | 28 | 194 | — | 222 | 246,053 | 246,275 | — | ||||||||||||||||||||
Consumer | — | — | — | — | 43,814 | 43,814 | — | ||||||||||||||||||||
Total | $ | 3,062 | $ | 619 | $ | 15,608 | $ | 19,289 | $ | 3,050,090 | $ | 3,069,379 | $ | — |
As of or For the Year Ended December 31, 2019 | |||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment Impaired Loans | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Loans without a specific valuation | |||||||||||||||||||
Commercial | $ | 35,846 | $ | 35,846 | $ | — | $ | 44,646 | $ | 1,549 | |||||||||
Energy | 2,864 | 2,864 | — | 4,381 | 199 | ||||||||||||||
Commercial real estate | 9,464 | 9,464 | — | 12,907 | 669 | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | 2,139 | 2,139 | — | 2,140 | 14 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Loans with a specific valuation | |||||||||||||||||||
Commercial | 35,030 | 40,030 | 19,942 | 39,688 | 460 | ||||||||||||||
Energy | 6,880 | 9,880 | 1,949 | 10,547 | 264 | ||||||||||||||
Commercial real estate | 1,028 | 1,028 | 210 | 1,037 | 47 | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | 249 | 249 | 197 | 249 | 10 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Total | |||||||||||||||||||
Commercial | 70,876 | 75,876 | 19,942 | 84,334 | 2,009 | ||||||||||||||
Energy | 9,744 | 12,744 | 1,949 | 14,928 | 463 | ||||||||||||||
Commercial real estate | 10,492 | 10,492 | 210 | 13,944 | 716 | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | 2,388 | 2,388 | 197 | 2,389 | 24 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
$ | 93,500 | $ | 101,500 | $ | 22,298 | $ | 3,212 |
As of or For the Year Ended December 31, 2018 | |||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment Impaired Loans | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Loans without a specific valuation | |||||||||||||||||||
Commercial | $ | 40,151 | $ | 40,151 | $ | — | $ | 22,983 | $ | 2,329 | |||||||||
Energy | 2,789 | 2,789 | — | 2,991 | 200 | ||||||||||||||
Commercial real estate | 7,059 | 7,059 | — | 4,163 | 356 | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | 1,964 | 1,964 | — | 2,172 | 105 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Loans with a specific valuation | |||||||||||||||||||
Commercial | 37,996 | 37,996 | 5,814 | 24,282 | 1,691 | ||||||||||||||
Energy | 13,461 | 13,461 | 3,108 | 18,920 | 458 | ||||||||||||||
Commercial real estate | 8,168 | 8,168 | 473 | 4,222 | 571 | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | 63 | 63 | 5 | 60 | 5 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
Total | |||||||||||||||||||
Commercial | 78,147 | 78,147 | 5,814 | 47,265 | 4,020 | ||||||||||||||
Energy | 16,250 | 16,250 | 3,108 | 21,911 | 658 | ||||||||||||||
Commercial real estate | 15,227 | 15,227 | 473 | 8,385 | 927 | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | 2,027 | 2,027 | 5 | 2,232 | 110 | ||||||||||||||
Consumer | — | — | — | — | — | ||||||||||||||
$ | 111,651 | $ | 111,651 | $ | 9,400 | $ | 5,715 |
As of or For the Year Ended December 31, 2017 | |||||||||||||||||||
Recorded Balance | Unpaid Principal Balance | Specific Allowance | Average Investment Impaired Loans | Interest Income Recognized | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Total | |||||||||||||||||||
Commercial | $ | 11,128 | $ | 16,382 | $ | 2,287 | $ | 15,712 | $ | 1,056 | |||||||||
Energy | 26,484 | 27,574 | 3,396 | 26,718 | 2,094 | ||||||||||||||
Commercial real estate | 1,542 | 1,542 | 48 | 2,029 | 171 | ||||||||||||||
Construction and land development | — | — | — | — | — | ||||||||||||||
Residential real estate | 2,437 | 2,437 | 43 | 1,692 | 98 | ||||||||||||||
Equity lines of credit | — | — | — | — | — | ||||||||||||||
Consumer installment | — | — | — | — | — | ||||||||||||||
$ | 41,591 | $ | 47,935 | $ | 5,774 | $ | 3,419 |
As of December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Commercial | $ | 32,130 | $ | 4,781 | |||
Energy | 4,540 | 9,219 | |||||
Commercial real estate | 1,063 | 3,517 | |||||
Construction and land development | — | — | |||||
Residential real estate | 1,942 | 301 | |||||
Consumer | — | — | |||||
Total nonaccrual loans | $ | 39,675 | $ | 17,818 |
For the Year Ended December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Commercial | |||||||
- Deferred payment | $ | — | $ | 61 | |||
- Reduction of monthly payment | 994 | — | |||||
- Extension of maturity date | 30,005 | 300 | |||||
- Interest rate reduction | — | 1,153 | |||||
Energy | |||||||
- Reduction of monthly payment | — | 2,972 | |||||
Commercial real estate | |||||||
- Reduction of monthly payment | 3,767 | — | |||||
- Interest rate reduction | — | 2,256 | |||||
Total troubled debt restructurings | $ | 34,766 | $ | 6,742 |
For the Year Ended December 31, | |||||||||||||||||||
2019 | 2018 | ||||||||||||||||||
Number of Loans | Outstanding Balance | Balance 90 Days Past Due at Any Time During Previous 12 Months(1) | Number of Loans | Outstanding Balance | Balance 90 Days Past Due at Any Time During Previous 12 Months(1) | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Commercial | 7 | $ | 31,770 | $ | 831 | 6 | $ | 5,022 | $ | 55 | |||||||||
Energy | 2 | 2,864 | — | 2 | 3,631 | — | |||||||||||||
Commercial real estate | 3 | 4,909 | — | 2 | 1,382 | — | |||||||||||||
Construction and land development | — | — | — | — | — | — | |||||||||||||
Residential real estate | — | — | — | 1 | 237 | — | |||||||||||||
Consumer | — | — | — | — | — | — | |||||||||||||
Total restructured loans | 12 | $ | 39,543 | $ | 831 | 11 | $ | 10,272 | $ | 55 | |||||||||
(1) Default is considered to mean 90 days or more past due as to interest or principal. |
As of December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Land | $ | 7,384 | $ | 7,384 | |||
Building and improvements | 59,500 | 59,472 | |||||
Construction in progress | 524 | 74 | |||||
Furniture and fixtures | 12,851 | 12,694 | |||||
Equipment | 9,158 | 10,117 | |||||
89,417 | 89,741 | ||||||
Less: accumulated depreciation | 19,207 | 14,796 | |||||
Premises and equipment, net | $ | 70,210 | $ | 74,945 |
As of December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Land | $ | — | $ | 837 | |||
Building and improvements | — | 3,810 | |||||
Furniture and fixtures | — | 916 | |||||
Equipment | — | 132 | |||||
Gross assets held for sale prior to impairments | — | 5,695 | |||||
Less: accumulated depreciation | — | 648 | |||||
Net assets held for sale prior to impairments | — | 5,047 | |||||
Less: impairment | — | 1,603 | |||||
Assets held for sale | $ | — | $ | 3,444 |
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||
(Dollars in thousands) | |||||||||||
December 31, 2019 | |||||||||||
Goodwill | $ | 7,397 | $ | — | $ | 7,397 | |||||
Core deposit intangible | 1,014 | 717 | 297 | ||||||||
Total goodwill and intangible assets | $ | 8,411 | $ | 717 | $ | 7,694 | |||||
December 31, 2018 | |||||||||||
Goodwill | $ | 7,397 | $ | — | $ | 7,397 | |||||
Core deposit intangible | 1,014 | 615 | 399 | ||||||||
Total goodwill and intangible assets | $ | 8,411 | $ | 615 | $ | 7,796 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Amortization expense | $ | 102 | $ | 102 | $ | 101 |
(Dollars in thousands) | ||||
2020 | $ | 90 | ||
2021 | 78 | |||
2022 | 78 | |||
2023 | 51 | |||
2024 | $ | — |
December 31, 2019 | December 31, 2018 | ||||||||||
Product | Number of Instruments | Notional Amount | Number of Instruments | Notional Amount | |||||||
(Dollars in thousands) | |||||||||||
Back-to-back swaps | 56 | $ | 380,050 | 20 | $ | 77,709 |
Asset Derivatives | Liability Derivatives | ||||||||||||||||
Balance Sheet | As of December 31, | Balance Sheet | As of December 31, | ||||||||||||||
Location | 2019 | 2018 | Location | 2019 | 2018 | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||
Interest rate products | Other assets | $9,838 | $ | 1,051 | Other liabilities | $ | 9,907 | $ | 1,136 |
December 31, 2019 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||
Offsetting of derivative assets | |||||||||||||||||||||||
Derivatives | $ | 9,838 | $ | — | $ | 9,838 | $ | 97 | $ | — | $ | 9,741 | |||||||||||
Offsetting of derivative liabilities | |||||||||||||||||||||||
Derivatives | $ | 9,907 | $ | — | $ | 9,907 | $ | 97 | $ | — | $ | 9,810 |
December 31, 2018 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
Gross Amounts of Recognized Assets and Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Cash Collateral Received | Net Amount | ||||||||||||||||||
Offsetting of derivative assets | |||||||||||||||||||||||
Derivatives | $ | 1,051 | $ | — | $ | 1,051 | $ | 72 | $ | — | $ | 979 | |||||||||||
Offsetting of derivative liabilities | |||||||||||||||||||||||
Derivatives | $ | 1,136 | $ | — | $ | 1,136 | $ | 72 | $ | — | $ | 1,064 |
(Dollars in thousands) | |||
Within one year | $ | 925,239 | |
One to two years | 152,979 | ||
Two to three years | 105,483 | ||
Three to four years | 40,704 | ||
Four to five years | 15,341 | ||
After | — | ||
Total time deposits | $ | 1,239,746 |
As of and For the Year Ended December 31, | ||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Maximum | Maximum | |||||||||||||||||||
Balance at | Balance at | |||||||||||||||||||
Any End of | Any End of | |||||||||||||||||||
Balance | Rate(6) | Month | Balance | Rate(6) | Month | |||||||||||||||
Repurchase agreements(1) | $ | 14,921 | 1.00% | $ | 72,048 | $ | 75,406 | 1.54% | $ | 124,765 | ||||||||||
Federal funds purchased(2) | — | NA | 25,000 | — | NA | 55,000 | ||||||||||||||
FHLB advances(3) | 358,743 | 1.84 | 358,743 | 312,985 | 1.89 | 313,024 | ||||||||||||||
FHLB line of credit(3) | — | NA | 30,000 | — | NA | — | ||||||||||||||
TIB line of credit(4) | — | NA | — | — | NA | 10,000 | ||||||||||||||
Trust preferred security(5) | 921 | 3.63% | $ | 921 | 884 | 4.53% | $ | 884 | ||||||||||||
Total borrowings | $ | 374,585 | $ | 389,275 |
As of December 31, | ||||||||
2019 | 2018 | |||||||
(Dollars in thousands) | ||||||||
FHLB borrowing capacity relating to loans | $ | 490,218 | $ | 381,689 | ||||
FHLB borrowing capacity relating to securities | — | — | ||||||
Total FHLB borrowing capacity | $ | 490,218 | $ | 381,689 | ||||
Unused Federal Reserve borrowing capacity | $ | 287,857 | $ | 290,112 |
As of December 31, 2019 | |||||||||||||||||||||||||||
Within One Year | One to Two Years | Two to Three Years | Three to Four Years | Four to Five Years | After Five Years | Total | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
Fed funds purchased & repurchase agreements | $ | 14,921 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 14,921 | |||||||||||||
FHLB borrowings | 45,000 | 51,500 | 21,143 | 35,000 | — | 206,100 | 358,743 | ||||||||||||||||||||
Trust preferred securities(1) | — | — | — | — | — | 921 | 921 | ||||||||||||||||||||
Total | $ | 59,921 | $ | 51,500 | $ | 21,143 | $ | 35,000 | $ | — | $ | 207,021 | $ | 374,585 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Taxes currently payable (receivable) | $ | 7,624 | $ | (2,155 | ) | $ | 1,765 | ||||
Adjustment of deferred tax asset for enacted changes in tax rates | — | — | 2,701 | ||||||||
Deferred income tax liability | (3,486 | ) | (239 | ) | (5,907 | ) | |||||
Income tax expense (benefit) | $ | 4,138 | $ | (2,394 | ) | $ | (1,441 | ) |
For the Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(Dollars in thousands) | ||||||||||||
Computed at the statutory rate (21% for 2019 and 2018 and 34% for 2017) | $ | 6,848 | $ | 3,611 | $ | 1,481 | ||||||
Increase (decrease) resulting from | ||||||||||||
Tax-exempt income | (2,913 | ) | (3,508 | ) | (5,765 | ) | ||||||
Nondeductible expenses | 356 | 380 | 470 | |||||||||
State tax credit | (1,361 | ) | (3,129 | ) | — | |||||||
State income tax expense (benefit) | 1,288 | 687 | (322 | ) | ||||||||
Equity-based compensation | (88 | ) | (445 | ) | — | |||||||
Rate change - temporary differences | — | — | 3,857 | |||||||||
Rate change - Accumulated Other Comprehensive Income | — | — | (1,155 | ) | ||||||||
Other adjustments | 8 | 10 | (7 | ) | ||||||||
Actual tax expense (benefit) | $ | 4,138 | $ | (2,394 | ) | $ | (1,441 | ) |
As of December 31, | |||||||
December 31, 2019 | December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Deferred tax assets | |||||||
Net unrealized loss on securities available-for-sale | $ | — | $ | 986 | |||
Allowance for loan losses | 13,928 | 9,358 | |||||
Lease incentive | 294 | 329 | |||||
Impairment of available-for-sale securities | 493 | 498 | |||||
Valuation allowance on real estate | — | 396 | |||||
Loan fees | 2,317 | 2,135 | |||||
Net operating loss carryover | 339 | 398 | |||||
Accrued expenses | 2,131 | 1,927 | |||||
Deferred compensation | 2,444 | 1,838 | |||||
Alternative minimum tax credits | — | 2,365 | |||||
State tax credit | 3,287 | 2,506 | |||||
Other | 81 | 79 | |||||
Total deferred tax asset | 25,314 | 22,815 | |||||
Deferred tax liability | |||||||
Fair market value adjustments on trust preferred securities | (348 | ) | (356 | ) | |||
Net unrealized gain on securities available-for-sale | (5,339 | ) | — | ||||
FHLB stock basis | (996 | ) | (739 | ) | |||
Premises and equipment | (3,620 | ) | (5,019 | ) | |||
Other | (1,229 | ) | (385 | ) | |||
Total deferred tax liability | (11,532 | ) | (6,499 | ) | |||
Net deferred tax asset | $ | 13,782 | $ | 16,316 |
For the Year Ended December 31, | Affected Line Item in the | ||||||||||||
2019 | 2018 | 2017 | Statements of Income | ||||||||||
(Dollars in thousands) | |||||||||||||
Unrealized gains on available-for-sale securities | $ | 987 | $ | 538 | $ | 406 | Gain on sale of available-for-sale securities | ||||||
Amount reclassified before tax | 987 | 538 | 406 | ||||||||||
Less: tax effect | 242 | 132 | 151 | Income tax expense | |||||||||
Net reclassified amount | $ | 745 | $ | 406 | $ | 255 |
Actual | Minimum Capital Required - Basel III Phase-In Schedule | Minimum Capital Required - Basel III Fully Phased-In | Required to be Considered Well Capitalized | ||||||||||||||||||||||||
Amount | Ratio | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||||||||||||
Consolidated | $ | 633,228 | 13.4 | % | $ | 495,095 | 10.5 | % | $ | 495,095 | 10.5 | % | N/A | N/A | |||||||||||||
Bank | 581,600 | 12.3 | 494,954 | 10.5 | 494,954 | 10.5 | $ | 471,385 | 10.0 | % | |||||||||||||||||
Tier I capital to risk-weighted assets | |||||||||||||||||||||||||||
Consolidated | 576,332 | 12.2 | 400,791 | 8.5 | 400,791 | 8.5 | N/A | N/A | |||||||||||||||||||
Bank | 524,704 | 11.1 | 400,677 | 8.5 | 400,677 | 8.5 | 377,108 | 8.0 | |||||||||||||||||||
Common equity tier 1 to risk-weighted assets | |||||||||||||||||||||||||||
Consolidated | 575,411 | 12.2 | 330,063 | 7.0 | 330,063 | 7.0 | N/A | N/A | |||||||||||||||||||
Bank | 524,704 | 11.1 | 329,970 | 7.0 | 329,970 | 7.0 | 306,400 | 6.5 | |||||||||||||||||||
Tier I capital to average assets | |||||||||||||||||||||||||||
Consolidated | 576,332 | 12.1 | 191,099 | 4.0 | 191,093 | 4.0 | N/A | N/A | |||||||||||||||||||
Bank | $ | 524,704 | 11.0 | % | $ | 191,170 | 4.0 | % | $ | 191,170 | 4.0 | % | $ | 238,963 | 5.0 | % | |||||||||||
December 31, 2018 | |||||||||||||||||||||||||||
Total capital to risk-weighted assets | |||||||||||||||||||||||||||
Consolidated | $ | 521,111 | 13.5 | % | $ | 380,873 | 9.9 | % | $ | 404,979 | 10.5 | % | N/A | N/A | |||||||||||||
Bank | 481,287 | 12.5 | 380,369 | 9.9 | 404,443 | 10.5 | $ | 385,184 | 10.0 | % | |||||||||||||||||
Tier I capital to risk-weighted assets | |||||||||||||||||||||||||||
Consolidated | 483,285 | 12.5 | 303,734 | 7.9 | 327,840 | 8.5 | N/A | N/A | |||||||||||||||||||
Bank | 443,461 | 11.5 | 303,332 | 7.9 | 327,406 | 8.5 | 308,147 | 8.0 | |||||||||||||||||||
Common equity tier 1 to risk-weighted assets | |||||||||||||||||||||||||||
Consolidated | 453,049 | 11.7 | 245,880 | 6.4 | 269,986 | 7.0 | N/A | N/A | |||||||||||||||||||
Bank | 443,461 | 11.5 | 245,555 | 6.4 | 269,629 | 7.0 | 250,369 | 6.5 | |||||||||||||||||||
Tier I capital to average assets | |||||||||||||||||||||||||||
Consolidated | 483,285 | 12.4 | 155,538 | 4.0 | 155,538 | 4.0 | N/A | N/A | |||||||||||||||||||
Bank | $ | 443,461 | 11.4 | % | $ | 155,420 | 4.0 | % | $ | 155,420 | 4.0 | % | $ | 194,275 | 5.0 | % |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Beginning balance | $ | 6,276 | $ | 22,018 | $ | 25,036 | |||||
Adjustment for change in directors(1) | — | (20,725 | ) | — | |||||||
Adjusted beginning balance | 6,276 | 1,293 | 25,036 | ||||||||
New loans and advances | 11,418 | 5,267 | 4,284 | ||||||||
Repayments | (1,661 | ) | (284 | ) | (7,302 | ) | |||||
Ending balance | $ | 16,033 | $ | 6,276 | $ | 22,018 | |||||
(1) Represents loans no longer considered as related party transactions due to changes in the board of directors. |
For the Year Ended December 31, | |||
2019 | |||
(Dollars in thousands) | |||
Noninterest income subject to ASU 2014-09 | |||
Service charges and fees (rebates) on customer accounts | $ | 604 | |
ATM and credit card interchange income | 1,785 | ||
International fees | 716 | ||
Other fees | 122 | ||
Total noninterest income from contracts with customers | 3,227 | ||
Noninterest income not subject to ASU 2014-09 | |||
Other noninterest income | 5,488 | ||
Total noninterest income | $ | 8,715 |
For the Year Ended December 31, | |||||||||||
2019 | 2018 | 2017 | |||||||||
(Dollars in thousands) | |||||||||||
Stock appreciation rights | $ | 1,243 | $ | 1,457 | $ | 769 | |||||
Performance-based stock awards | 271 | 578 | 1,390 | ||||||||
Restricted stock awards | 3,174 | 2,404 | 88 | ||||||||
Employee stock purchase plan | 36 | 165 | 128 | ||||||||
Total stock-based compensation | $ | 4,724 | $ | 4,604 | $ | 2,375 |
For the Year Ended December 31, | |||||
2019(1) | 2018 | 2017 | |||
(Dollars in thousands, except per share data) | |||||
Assumptions: | |||||
Expected volatility | 24.63% - 33.63% | 25.69% - 42.99% | 28.40% - 40.94% | ||
Expected dividends | 0.00% | 0.00% | 0.00% | ||
Expected term (in years) | 4.24 - 7.00 | 4.00 - 9.50 | 4.75 - 9.50 | ||
Risk-free rate | 1.45% - 2.55% | 2.50% - 2.94% | 2.08% - 2.40% | ||
Weighted average grant date fair value per share | $5.43 | $4.68 | $5.46 | ||
Aggregate intrinsic value of SSARs exercised | $493 | $2,214 | $165 | ||
Total fair value of SSARs vested during the year | $1,171 | $1,710 | $959 | ||
Unrecognized compensation information: | |||||
Unrecognized compensation cost | $2,904 | $3,730 | $3,068 | ||
Period remaining (in years) | 3.9 | 3.9 | 4.8 | ||
(1) The Black-Scholes inputs include a revaluation of a nonemployee SSAR upon adoption of ASU 2018-07, as well as, SSARs granted during the period. |
Stock Settled Appreciation Rights | ||||||||
Units | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term | ||||||
Outstanding, January 1, 2019 | 1,736,574 | $ | 9.94 | 10.28 | ||||
Granted | 124,014 | 14.51 | 9.54 | |||||
Exercised | (57,400 | ) | 7.15 | |||||
Forfeited or expired | (30,536 | ) | 12.00 | |||||
Outstanding, December 31, 2019 | 1,772,652 | $ | 10.31 | 9.20 | ||||
Exercisable, December 31, 2019 | 854,562 | $ | 8.29 | 8.19 |
Performance-Based Awards | |||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested, January 1, 2019 | 159,384 | $ | 9.00 | ||||
Granted(1) | 32,864 | 14.16 | |||||
Vested | — | 0.00 | |||||
Forfeited | — | 0.00 | |||||
Nonvested, December 31, 2019 | 192,248 | $ | 9.88 | ||||
(1) Includes 6,060 Legacy PBSAs regranted under the Omnibus Plan upon agreement with a New Market Founder. The fair market value of common stock at the regrant date was $15.50. No modifications to the grants occurred resulting in no increase to the fair market value.The original Legacy PBSA had a weighted average grant date fair value of $8.25. |
Restricted Stock Units and Awards | |||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||
Nonvested, January 1, 2019 | 333,774 | $ | 14.47 | ||||
Granted | 170,394 | 15.50 | |||||
Vested | (152,486) | 13.68 | |||||
Forfeited | (10,902) | 14.00 | |||||
Nonvested, December 31, 2019 | 340,780 | $ | 15.35 |
For the Year Ended December 31, | |||||
2019 | 2018 | 2017 | |||
Assumptions: | |||||
Expected volatility | 7.60% | 7.60% | 13.80% | ||
Expected dividends | 0.00% | 0.00% | 0.00% | ||
Expected term (in years) | 1 | 1 | 1 | ||
Risk-free rate | 2.09% | 2.09% | 1.03% |
Change | Change in | |||||||||
in | Number of | |||||||||
Event | Event | Cumulative | Awards Issued / | Additional | ||||||
Date | Type | Expense | Exercised | Notes | ||||||
(Dollars in thousands) | ||||||||||
January 2018 | EIP Modification: from performance awards to time-vested awards | $ | 1,294 | None | Awards were exchanged at “Target” representing 100% of the original award. 282,192 PBSAs were forfeited and replaced with 282,192 RSUs. | |||||
May 2018 | Chairman Emeritus Agreement: SSAR and RSU vesting was accelerated | $ | 1,124 | 201,334 SSARs were exercised and 74,280 RSUs vested | 101,178 common shares were issued. | |||||
October 2018 | New Plan Approved: Existing awards were canceled and regranted under the Omnibus Plan as agreed with certain participants. | |||||||||
– SSARs | None | None | 1,595,430 SSARs were forfeited and regranted under the Omnibus Plan | |||||||
– RSUs | None | None | 298,254 RSUs were forfeited and regranted under the Omnibus Plan | |||||||
– PBSAs | None | None | 159,384 PBSAs were forfeited and regranted under the Omnibus Plan | |||||||
December 2018 | Stock Split: 2-for-1 Stock Split occurred | None | All awards, excluding 100,000 SSARs were split | All awards, other than the noted SSARs, were retroactively adjusted for all periods presented to reflect the 2-for-1 split |
Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(Dollars in thousands) | ||||||||||||
Rental Expense | $ | 2,526 | $ | 3,323 | $ | 2,598 |
Level 1 | ||
December 31, 2019 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 152,512 | $ | — | $ | 152,512 | $ | — | |||||||
Collateralized mortgage obligations - GSE residential | 129,212 | — | 129,212 | — | |||||||||||
State and political subdivisions | 456,340 | — | 456,340 | — | |||||||||||
Corporate bonds | 1,409 | — | 1,409 | — | |||||||||||
Mutual funds | 2,161 | — | 2,161 | — | |||||||||||
Derivative assets | 9,838 | — | 9,838 | — | |||||||||||
Derivative liabilities | $ | 9,907 | $ | — | $ | 9,907 | $ | — |
December 31, 2018 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Available-for-sale securities | |||||||||||||||
Mortgage-backed - GSE residential | $ | 129,287 | $ | — | $ | 129,287 | $ | — | |||||||
Collateralized mortgage obligations - GSE residential | 152,626 | — | 152,626 | — | |||||||||||
State and political subdivisions | 378,058 | — | 378,058 | — | |||||||||||
Corporate bonds | 1,657 | — | 1,657 | — | |||||||||||
Mutual funds | 2,050 | — | 2,050 | — | |||||||||||
Derivative assets | 1,051 | — | 1,051 | — | |||||||||||
Derivative liabilities | $ | 1,136 | $ | — | $ | 1,136 | $ | — |
December 31, 2019 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Collateral dependent impaired loans | $ | 20,889 | $ | — | $ | — | $ | 20,889 |
December 31, 2018 | |||||||||||||||
Fair Value Measurements Using | |||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Unobservable Inputs (Level 3) | ||||||||||||
(Dollars in thousands) | |||||||||||||||
Collateral dependent impaired loans | $ | 50,288 | $ | — | $ | — | $ | 50,288 | |||||||
Assets held-for-sale | 3,444 | — | 3,444 | — |
As of December 31, 2019 | |||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Collateral dependent impaired loans | $ | 20,889 | Market comparable properties | Marketability discount | 10% - 15% (12%) |
As of December 31, 2018 | |||||||||
Fair Value | Valuation Techniques | Unobservable Inputs | Range (Weighted Average) | ||||||
(Dollars in thousands) | |||||||||
Collateral dependent impaired loans | $ | 50,288 | Market comparable properties | Marketability discount | 10% - 15% (12%) |
December 31, 2019 | |||||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 187,320 | $ | 187,320 | $ | — | $ | — | $ | 187,320 | |||||||||
Available-for-sale securities | 741,634 | — | 741,634 | — | 741,634 | ||||||||||||||
Loans, net of allowance for loan losses | 3,795,348 | — | — | 3,810,818 | 3,810,818 | ||||||||||||||
Restricted equity securities | 17,278 | — | — | 17,278 | 17,278 | ||||||||||||||
Interest receivable | 15,716 | — | 15,716 | — | 15,716 | ||||||||||||||
Derivative assets | 9,838 | — | 9,838 | — | 9,838 | ||||||||||||||
Total | $ | 4,767,134 | $ | 187,320 | $ | 767,188 | $ | 3,828,096 | $ | 4,782,604 | |||||||||
Financial Liabilities | |||||||||||||||||||
Deposits | $ | 3,923,759 | $ | 521,826 | $ | — | $ | 3,407,012 | $ | 3,928,838 | |||||||||
Federal funds purchased and repurchase agreements | 14,921 | — | 14,921 | — | 14,921 | ||||||||||||||
Federal Home Loan Bank advances | 358,743 | — | 357,859 | — | 357,859 | ||||||||||||||
Other borrowings | 921 | — | 2,147 | — | 2,147 | ||||||||||||||
Interest payable | 4,584 | — | 4,584 | — | 4,584 | ||||||||||||||
Derivative liabilities | 9,907 | — | 9,907 | — | 9,907 | ||||||||||||||
Total | $ | 4,312,835 | $ | 521,826 | $ | 389,418 | $ | 3,407,012 | $ | 4,318,256 |
December 31, 2018 | |||||||||||||||||||
Carrying | Fair Value Measurements | ||||||||||||||||||
Amount | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||||
Financial Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 216,541 | $ | 216,541 | $ | — | $ | — | $ | 216,541 | |||||||||
Available-for-sale securities | 663,678 | — | 663,678 | — | 663,678 | ||||||||||||||
Loans, net of allowance for loan losses | 3,022,921 | — | — | 3,027,930 | 3,027,930 | ||||||||||||||
Restricted equity securities | 14,525 | — | — | 14,525 | 14,525 | ||||||||||||||
Interest receivable | 14,092 | — | 14,092 | — | 14,092 | ||||||||||||||
Derivative assets | 1,051 | — | 1,051 | — | 1,051 | ||||||||||||||
$ | 3,932,808 | $ | 216,541 | $ | 678,821 | $ | 3,042,455 | $ | 3,937,817 | ||||||||||
Financial Liabilities | |||||||||||||||||||
Deposits | $ | 3,208,097 | $ | 484,284 | $ | — | $ | 2,696,212 | $ | 3,180,496 | |||||||||
Federal funds purchased and repurchase agreements | 75,406 | — | 75,404 | — | 75,404 | ||||||||||||||
Federal Home Loan Bank advances | 312,985 | — | 298,017 | — | 298,017 | ||||||||||||||
Other borrowings | 884 | — | 2,022 | — | 2,022 | ||||||||||||||
Interest payable | 2,868 | — | 2,868 | — | 2,868 | ||||||||||||||
Derivative liabilities | 1,136 | — | 1,136 | — | 1,136 | ||||||||||||||
$ | 3,601,376 | $ | 484,284 | $ | 379,447 | $ | 2,696,212 | $ | 3,559,943 |
December 31, 2019 | December 31, 2018 | ||||||
(Dollars in thousands) | |||||||
Commitments to originate loans | $ | 134,652 | $ | 190,997 | |||
Standby letters of credit | 39,035 | 32,439 | |||||
Lines of credit | 1,351,873 | 1,174,166 | |||||
Future lease commitment | 20,935 | 19,054 | |||||
Total | $ | 1,546,495 | $ | 1,416,656 |
Year | Minimum Lease Payments | |||
(Dollars in thousands) | ||||
1 | $ | 1,303 | ||
2 | 1,312 | |||
3 | 1,321 | |||
4 | 1,331 | |||
5 | 1,341 | |||
Thereafter | $ | 14,327 |
Common Shares Issued and Outstanding | Common Stock | Additional Paid in Capital | Retained Earnings | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Balance at December 31, 2016 | 25,194,872 | $ | 252 | $ | 197,812 | $ | 21,384 | |||||||||
Private placement - September 2016 | 4,131,348 | 41 | 41,293 | (21 | ) | |||||||||||
Private placement - December 2016 | 500,000 | 5 | 4,998 | (3 | ) | |||||||||||
Private placement - March 2017 | 625,336 | 7 | 7,501 | (4 | ) | |||||||||||
Private placement - April 2017 | 100,000 | 1 | 999 | — | ||||||||||||
Warrants converted | 8,000 | — | 40 | — | ||||||||||||
ESPP issuance | 33,450 | — | 234 | — | ||||||||||||
Employee purchase plans | 84,060 | 1 | 898 | — | ||||||||||||
SSAR exercise | 9,190 | — | (55 | ) | — | |||||||||||
Other, nonissuance items | — | — | 2,388 | 2,594 | ||||||||||||
Balance at December 31, 2017 | 30,686,256 | $ | 307 | $ | 256,108 | $ | 23,950 | |||||||||
Performance awards - March 2018 | 136,190 | 1 | (482 | ) | (1 | ) | ||||||||||
Restricted awards - May 2018 | 41,340 | 1 | (470 | ) | — | |||||||||||
Private placement - February 2018 | 246,746 | 2 | 3,391 | (1 | ) | |||||||||||
Private placement - March 2018 | 8,904,626 | 89 | 126,847 | (45 | ) | |||||||||||
Private placement - October 2018 | 5,192,986 | 52 | 73,974 | (26 | ) | |||||||||||
Restricted awards - December 2018 | 68,668 | 1 | (481 | ) | — | |||||||||||
Warrants converted | 354,500 | 4 | 1,771 | (2 | ) | |||||||||||
ESPP issuance | 35,984 | — | 367 | — | ||||||||||||
Employee purchase plans | 56,550 | 1 | 713 | — | ||||||||||||
SSAR exercise | 106,548 | 1 | (701 | ) | — | |||||||||||
Repurchased and retired shares | (769,808 | ) | (8 | ) | (8,218 | ) | (2,798 | ) | ||||||||
RSAs granted | 13,736 | — | — | — | ||||||||||||
Capitalized placement costs | — | — | (2,922 | ) | — | |||||||||||
Other, nonissuance items | — | — | 4,615 | 17,490 | ||||||||||||
Balance at December 31, 2018 | 45,074,322 | $ | 451 | $ | 454,512 | $ | 38,567 | |||||||||
Repurchase and retired preferred shares | — | — | (29,988 | ) | — | |||||||||||
Repurchased and retired common shares | (10,000 | ) | — | (100 | ) | (55 | ) | |||||||||
RSUs vested | 14,530 | — | (93 | ) | — | |||||||||||
IPO | 6,594,362 | 66 | 95,552 | — |
Common Shares Issued and Outstanding | Common Stock | Additional Paid in Capital | Retained Earnings | |||||||||||||
(Dollars in thousands) | ||||||||||||||||
Capitalized placement costs | — | — | (8,564 | ) | — | |||||||||||
Warrants converted | 194,000 | 2 | 968 | — | ||||||||||||
ESPP issuance | 45,203 | 1 | 547 | — | ||||||||||||
Employee purchase plans | 17,648 | — | 300 | — | ||||||||||||
SSAR exercise | 21,723 | — | (153 | ) | — | |||||||||||
RSAs granted | 17,415 | — | — | — | ||||||||||||
Other, nonissuance items | 6,889 | 26,376 | ||||||||||||||
Balance at December 31, 2019 | 51,969,203 | $ | 520 | $ | 519,870 | $ | 64,888 |
Condensed Balance Sheets | |||||||
Year Ended December 31, | |||||||
2019 | 2018 | ||||||
(Dollars in thousands) | |||||||
Assets | |||||||
Investment in consolidated subsidiaries | |||||||
Banks | $ | 551,084 | $ | 450,302 | |||
Nonbanks | 870 | 870 | |||||
Cash | 52,478 | 37,439 | |||||
Other assets | 1,364 | 6,862 | |||||
Total assets | $ | 605,796 | $ | 495,473 | |||
Liabilities and stockholders’ equity | |||||||
Trust preferred securities, net | $ | 921 | $ | 884 | |||
Other liabilities | 3,231 | 4,253 | |||||
Total liabilities | 4,152 | 5,137 | |||||
Stockholders’ equity | |||||||
Redeemable preferred stock | — | 12 | |||||
Common stock | 520 | 451 | |||||
Additional paid-in capital | 519,870 | 454,512 | |||||
Retained earnings | 64,888 | 38,567 | |||||
Other | (85 | ) | (196 | ) | |||
Accumulated other comprehensive income (loss) | 16,451 | (3,010 | ) | ||||
Total stockholders’ equity | 601,644 | 490,336 | |||||
Total liabilities and stockholders’ equity | $ | 605,796 | $ | 495,473 | |||
Condensed Statements of Income | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(Dollars in thousands) | ||||||||||||
Income | ||||||||||||
Earnings of consolidated subsidiaries | $ | 28,814 | $ | 24,330 | $ | 6,941 | ||||||
Interest income | 3 | 3 | 2 | |||||||||
Management fees charged to subsidiaries | 7,500 | 6,000 | 5,500 | |||||||||
Other | (7 | ) | — | 8 | ||||||||
Total income | 36,310 | 30,333 | 12,451 | |||||||||
Expense | ||||||||||||
Salaries and employee benefits | 4,584 | 8,139 | 3,164 | |||||||||
Occupancy, net | 275 | 368 | 403 | |||||||||
Interest expense | 147 | 231 | 124 | |||||||||
Other | 2,897 | 3,503 | 3,470 | |||||||||
Total expense | 7,903 | 12,241 | 7,161 | |||||||||
Income tax benefit | (66 | ) | (1,498 | ) | (559 | ) | ||||||
Net income | $ | 28,473 | $ | 19,590 | $ | 5,849 |
Condensed Statements of Cash Flows | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(Dollars in thousands) | ||||||||||||
Operating Activities | ||||||||||||
Net income | $ | 28,473 | $ | 19,590 | $ | 5,849 | ||||||
Items not requiring (providing) cash | ||||||||||||
Earnings of consolidated subsidiaries | (28,814 | ) | (24,330 | ) | (6,941 | ) | ||||||
Accretion of discount on borrowings | 38 | 34 | 31 | |||||||||
Share-based incentive compensation | 1,974 | 2,224 | 735 | |||||||||
Other adjustments | 5,305 | 1,333 | (613 | ) | ||||||||
Net cash provided by (used in) operating activities | 6,976 | (1,149 | ) | (939 | ) | |||||||
Investing Activities | ||||||||||||
Increase in investment in subsidiaries | (49,825 | ) | (157,900 | ) | (37,900 | ) | ||||||
Net cash used in investing activities | (49,825 | ) | (157,900 | ) | (37,900 | ) | ||||||
Financing Activities | ||||||||||||
Proceeds from line of credit | — | 35,000 | — | |||||||||
Repayment of line of credit | — | (35,000 | ) | (10,000 | ) | |||||||
Redemption of preferred stock | (30,000 | ) | — | — | ||||||||
Dividends paid on preferred stock | (700 | ) | (2,100 | ) | (2,100 | ) | ||||||
Issuance of common stock, net | 88,324 | 203,848 | 55,756 | |||||||||
Common stock purchased and retired | (155 | ) | (11,024 | ) | — | |||||||
Acquisition of common stock for tax withholding obligations | (245 | ) | (2,132 | ) | (55 | ) | ||||||
Proceeds from employee stock purchase plan | 547 | 367 | 235 | |||||||||
Net decrease in employee receivables | 117 | 71 | 71 | |||||||||
Net cash provided by financing activities | 57,888 | 189,030 | 43,907 | |||||||||
Increase in cash | 15,039 | 29,981 | 5,068 | |||||||||
Cash at beginning of year | 37,439 | 7,458 | 2,390 | |||||||||
Cash at end of year | $ | 52,478 | $ | 37,439 | $ | 7,458 | ||||||
For the Year Ended December 31, | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
(Dollars in thousands) | ||||||||||||
Supplemental Cash Flows Information | ||||||||||||
Income taxes paid | $ | 215 | $ | — | $ | 3,930 | ||||||
Dividends declared and unpaid | $ | — | $ | 525 | $ | 525 |
Year | Minimum Lease Payments | |||
(Dollars in thousands) | ||||
1 | $ | 188 | ||
2 | 192 | |||
3 | 198 | |||
4 | 203 | |||
5 | 208 | |||
Thereafter | $ | 469 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans | ||||||||
Equity compensation plans approved by shareholders | — | — | — | ||||||||
Equity compensation plan not approved by shareholders | 1,866,152 | (A) | $ | 9.99 | (B) | 2,414,669 | (C) | ||||
Total | 1,866,152 | $ | 9.99 | 2,414,669 | |||||||
(A)Includes 100,000 shares issuable upon exercise of stock appreciation rights granted under the Chairman Emeritus Agreement, 113,500 shares issuable upon exercise of warrants, and 1,672,652 shares issuable upon exercise of stock appreciation rights granted under the 2018 Equity Incentive Plan. | |||||||||||
(B)Represents the weighted average exercise price of outstanding stock appreciate rights and warrants. Includes the weighted average exercise price of $28.50 for stock appreciation rights granted under the Chairman Emeritus Agreement, $5.00 for shares issuable upon exercise of warrants and $9.22 for stock appreciation rights granted under the 2018 Equity Incentive Plan. | |||||||||||
(C)Available shares can be granted in the form of stock appreciation rights, options, restricted stock or performance awards. The number of securities remaining available under the 2018 Equity Incentive Plan was 2,295,856 and under the Employee Stock Purchase Plan was 118,813. |
Incorporated by Reference | ||||||||
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date/Period End Date | ||||
3.1 | S-1 | 3.1 | July 18, 2019 | |||||
3.2 | S-1 | 3.2 | July 18, 2019 | |||||
3.3 | S-1 | 3.3 | July 18, 2019 | |||||
4.1 | S-1 | 4.1 | July 18, 2019 | |||||
4.2 | S-1/A | 4.2 | July 29, 2019 | |||||
4.3* | ||||||||
10.1 | S-1 | 10.1 | July 18, 2019 | |||||
10.1.1 | S-1 | 10.2 | July 18, 2019 | |||||
10.1.2 | S-1 | 10.3 | July 18, 2019 | |||||
10.2 | S-1 | 10.4 | July 18, 2019 | |||||
10.2.1 | S-1 | 10.5 | July 18, 2019 | |||||
10.3 | S-1 | 10.6 | July 18, 2019 | |||||
10.3.1 | S-1 | 10.7 | July 18, 2019 | |||||
10.4 | S-1 | 10.8 | July 18, 2019 |
Incorporated by Reference | ||||||||
Exhibit Number | Exhibit Description | Form | Exhibit | Filing Date/Period End Date | ||||
10.4.1 | S-1 | 10.9 | July 18, 2019 | |||||
10.5 | S-1 | 10.10 | July 18, 2019 | |||||
10.5.1 | S-1 | 10.11 | July 18, 2019 | |||||
10.6* | ||||||||
10.7* | ||||||||
10.8 | S-1 | 10.13 | July 18, 2019 | |||||
10.9 | S-1 | 10.14 | July 18, 2019 | |||||
10.10 | S-1 | 10.15 | July 18, 2019 | |||||
10.11 | S-1 | 10.16 | July 18, 2019 | |||||
10.12 | S-1 | 10.17 | July 18, 2019 | |||||
10.13 | S-1 | 10.18 | July 18, 2019 | |||||
10.14 | S-1 | 10.19 | July 18, 2019 | |||||
10.15 | S-1 | 10.20 | July 18, 2019 | |||||
10.16 | S-1 | 10.21 | July 18, 2019 | |||||
10.17 | S-1 | 10.22 | July 18, 2019 | |||||
10.18 | S-1 | 10.23 | July 18, 2019 | |||||
10.19 | S-1 | 10.24 | July 18, 2019 | |||||
10.20 | S-1 | 10.25 | July 18, 2019 | |||||
10.21 | S-1 | 10.26 | July 18, 2019 | |||||
10.22 | S-1 | 10.27 | July 18, 2019 | |||||
10.23 | S-1 | 10.28 | July 18, 2019 | |||||
21.1* | ||||||||
23.1* | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1** | ||||||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema | |||||||
101.CAL* | Inline XBRL Extension Calculation Linkbase | |||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||
104* | Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101) |
Title Date /s/ Rod Brenneman | ||||