Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | ||
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Common Stock, par value $0.01 per share | EFSC | Nasdaq Global Select Market |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||
Emerging growth company | ☐ |
Page | ||
PART I - FINANCIAL INFORMATION | ||
Item 1. Financial Statements | ||
Condensed Consolidated Balance Sheets (Unaudited) | ||
Condensed Consolidated Statements of Operations (Unaudited) | ||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) | ||
Condensed Consolidated Statements of Shareholders’ Equity (Unaudited) | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||
Notes to Condensed Consolidated Financial Statements (Unaudited) | ||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3. Quantitative and Qualitative Disclosures About Market Risk | ||
Item 4. Controls and Procedures | ||
PART II - OTHER INFORMATION | ||
Item 1. Legal Proceedings | ||
Item 1A. Risk Factors | ||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 3. Defaults Upon Senior Securities | ||
Item 4. Mine Safety Disclosures | ||
Item 5. Other Information | ||
Item 6. Exhibits | ||
Signatures | ||
(in thousands, except share and per share data) | March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||
Assets | ||||||||||||||
Cash and due from banks | $ | 85,578 | $ | 91,511 | $ | 106,835 | $ | 91,511 | ||||||
Federal funds sold | 1,934 | 1,714 | 2,744 | 1,714 | ||||||||||
Interest-earning deposits (including $6,665 and $1,305 pledged as collateral, respectively) | 133,970 | 103,327 | ||||||||||||
Interest-earning deposits (including $14,195 and $1,305 pledged as collateral, respectively) | 79,821 | 103,327 | ||||||||||||
Total cash and cash equivalents | 221,482 | 196,552 | 189,400 | 196,552 | ||||||||||
Interest-earning deposits greater than 90 days | 3,485 | 3,185 | 2,750 | 3,185 | ||||||||||
Securities available for sale | 1,099,185 | 721,369 | 1,223,052 | 721,369 | ||||||||||
Securities held to maturity, at cost | 64,368 | 65,679 | 62,725 | 65,679 | ||||||||||
Loans held for sale | 654 | 392 | 1,437 | 392 | ||||||||||
Loans | 5,017,077 | 4,350,001 | 5,149,497 | 4,350,001 | ||||||||||
Less: Allowance for loan losses | 43,095 | 43,476 | 43,822 | 43,476 | ||||||||||
Loans, net | 4,973,982 | 4,306,525 | 5,105,675 | 4,306,525 | ||||||||||
Other real estate | 6,804 | 469 | 10,531 | 469 | ||||||||||
Other investments, at cost | 34,860 | 26,654 | 42,990 | 26,654 | ||||||||||
Fixed assets, net | 60,301 | 32,109 | 58,888 | 32,109 | ||||||||||
Operating lease right-of-use asset | 14,858 | — | 14,164 | — | ||||||||||
Accrued interest receivable | 26,276 | 16,069 | 27,008 | 16,069 | ||||||||||
State tax credits held for sale, at cost | 37,215 | 37,587 | 37,294 | 37,587 | ||||||||||
Goodwill | 207,632 | 117,345 | 211,251 | 117,345 | ||||||||||
Intangible assets, net | 31,048 | 8,553 | 29,201 | 8,553 | ||||||||||
Bank-owned life insurance | 101,416 | 73,233 | ||||||||||||
Other assets | 150,607 | 113,174 | 64,073 | 39,941 | ||||||||||
Total assets | $ | 6,932,757 | $ | 5,645,662 | $ | 7,181,855 | $ | 5,645,662 | ||||||
Liabilities and Shareholders' Equity | ||||||||||||||
Demand deposits | $ | 1,186,508 | $ | 1,100,718 | $ | 1,181,577 | $ | 1,100,718 | ||||||
Interest-bearing transaction accounts | 1,389,826 | 1,037,684 | 1,392,586 | 1,037,684 | ||||||||||
Money market accounts | 1,580,291 | 1,565,729 | 1,611,766 | 1,565,729 | ||||||||||
Savings | 575,740 | 199,425 | 550,839 | 199,425 | ||||||||||
Certificates of deposit: | ||||||||||||||
Brokered | 180,788 | 198,981 | 213,138 | 198,981 | ||||||||||
Other | 623,960 | 485,448 | 609,432 | 485,448 | ||||||||||
Total deposits | 5,537,113 | 4,587,985 | 5,559,338 | 4,587,985 | ||||||||||
Subordinated debentures and notes (net of debt issuance cost of $972 and $1,005, respectively) | 140,668 | 118,156 | ||||||||||||
Subordinated debentures and notes (net of debt issuance cost of $940 and $1,005, respectively) | 141,100 | 118,156 | ||||||||||||
Federal Home Loan Bank advances | 180,466 | 70,000 | 389,446 | 70,000 | ||||||||||
Other borrowings | 172,171 | 221,450 | 160,961 | 221,450 | ||||||||||
Notes payable | 40,000 | 2,000 | 37,143 | 2,000 | ||||||||||
Operating lease liability | 15,462 | — | 14,815 | — | ||||||||||
Accrued interest payable | 3,231 | 1,977 | 2,701 | 1,977 | ||||||||||
Other liabilities | 45,811 | 40,290 | 50,850 | 40,290 | ||||||||||
Total liabilities | 6,134,922 | 5,041,858 | 6,356,354 | 5,041,858 | ||||||||||
Shareholders' equity: | ||||||||||||||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 0 shares issued and outstanding | — | — | — | — | ||||||||||
Common stock, $0.01 par value; 30,000,000 shares authorized; 28,004,905 and 23,938,994 shares issued, respectively | 280 | 239 | ||||||||||||
Common stock, $0.01 par value; 45,000,000 shares authorized; 28,033,246 and 23,938,994 shares issued, respectively | 280 | 239 | ||||||||||||
Treasury stock, at cost; 1,127,105 shares | (42,655 | ) | (42,655 | ) | (42,655 | ) | (42,655 | ) | ||||||
Additional paid in capital | 521,761 | 350,936 | 523,454 | 350,936 | ||||||||||
Retained earnings | 316,959 | 304,566 | 331,348 | 304,566 | ||||||||||
Accumulated other comprehensive income (loss) | 1,490 | (9,282 | ) | 13,074 | (9,282 | ) | ||||||||
Total shareholders' equity | 797,835 | 603,804 | 825,501 | 603,804 | ||||||||||
Total liabilities and shareholders' equity | $ | 6,932,757 | $ | 5,645,662 | $ | 7,181,855 | $ | 5,645,662 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
(in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Interest income: | ||||||||||||||||||||||
Interest and fees on loans | $ | 61,025 | $ | 50,450 | $ | 69,628 | $ | 52,948 | $ | 130,653 | $ | 103,398 | ||||||||||
Interest on debt securities: | ||||||||||||||||||||||
Taxable | 5,475 | 3,987 | 7,757 | 4,228 | 13,232 | 8,215 | ||||||||||||||||
Nontaxable | 447 | 282 | 861 | 271 | 1,308 | 553 | ||||||||||||||||
Interest on interest-bearing deposits | 447 | 240 | 703 | 231 | 1,150 | 471 | ||||||||||||||||
Dividends on equity securities | 223 | 205 | 252 | 201 | 475 | 406 | ||||||||||||||||
Total interest income | 67,617 | 55,164 | 79,201 | 57,879 | 146,818 | 113,043 | ||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Interest-bearing transaction accounts | 1,790 | 806 | 2,134 | 817 | 3,924 | 1,623 | ||||||||||||||||
Money market accounts | 6,515 | 3,353 | 6,996 | 4,445 | 13,511 | 7,798 | ||||||||||||||||
Savings accounts | 183 | 125 | 231 | 147 | 414 | 272 | ||||||||||||||||
Certificates of deposit | 3,332 | 1,899 | 3,758 | 2,338 | 7,090 | 4,237 | ||||||||||||||||
Subordinated debentures and notes | 1,648 | 1,368 | 1,958 | 1,454 | 3,606 | 2,822 | ||||||||||||||||
Federal Home Loan Bank advances | 1,398 | 1,258 | 1,696 | 1,448 | 3,094 | 2,706 | ||||||||||||||||
Notes payable and other borrowings | 408 | 184 | 713 | 182 | 1,121 | 366 | ||||||||||||||||
Total interest expense | 15,274 | 8,993 | 17,486 | 10,831 | 32,760 | 19,824 | ||||||||||||||||
Net interest income | 52,343 | 46,171 | 61,715 | 47,048 | 114,058 | 93,219 | ||||||||||||||||
Provision for loan losses | 1,476 | 1,871 | 1,722 | 390 | 3,198 | 2,261 | ||||||||||||||||
Net interest income after provision for loan losses | 50,867 | 44,300 | 59,993 | 46,658 | 110,860 | 90,958 | ||||||||||||||||
Noninterest income: | ||||||||||||||||||||||
Service charges on deposit accounts | 2,935 | 2,851 | 3,366 | 3,007 | 6,301 | 5,858 | ||||||||||||||||
Wealth management revenue | 1,992 | 2,114 | 2,661 | 2,141 | 4,653 | 4,255 | ||||||||||||||||
Card services revenue | 1,790 | 1,516 | 2,461 | 1,650 | 4,251 | 3,166 | ||||||||||||||||
Gain on sale of other real estate | 66 | — | ||||||||||||||||||||
Tax credit activity, net | 158 | 252 | ||||||||||||||||||||
Gain (loss) on sale of other real estate | (18 | ) | — | 48 | — | |||||||||||||||||
Tax credit income | 572 | 64 | 730 | 316 | ||||||||||||||||||
Miscellaneous income | 2,289 | 2,809 | 2,922 | 2,831 | 5,211 | 5,640 | ||||||||||||||||
Total noninterest income | 9,230 | 9,542 | 11,964 | 9,693 | 21,194 | 19,235 | ||||||||||||||||
Noninterest expense: | ||||||||||||||||||||||
Employee compensation and benefits | 19,352 | 16,491 | 20,687 | 16,582 | 40,039 | 33,073 | ||||||||||||||||
Occupancy | 2,637 | 2,406 | 3,188 | 2,342 | 5,825 | 4,748 | ||||||||||||||||
Data processing | 1,906 | 1,467 | 2,458 | 1,533 | 4,364 | 3,000 | ||||||||||||||||
Professional fees | 746 | 849 | 1,037 | 747 | 1,783 | 1,596 | ||||||||||||||||
FDIC and other insurance | 848 | 917 | 815 | 920 | 1,663 | 1,837 | ||||||||||||||||
Loan legal and other real estate expense | 482 | 299 | 818 | (23 | ) | 1,300 | 276 | |||||||||||||||
Merger related expenses | 7,270 | — | 10,306 | — | 17,576 | — | ||||||||||||||||
Other | 6,597 | 6,714 | 9,745 | 7,118 | 16,342 | 13,832 | ||||||||||||||||
Total noninterest expense | 39,838 | 29,143 | 49,054 | 29,219 | 88,892 | 58,362 | ||||||||||||||||
Income before income tax expense | 20,259 | 24,699 | 22,903 | 27,132 | 43,162 | 51,831 | ||||||||||||||||
Income tax expense | 4,103 | 3,778 | 4,479 | 4,881 | 8,582 | 8,659 | ||||||||||||||||
Net income | $ | 16,156 | $ | 20,921 | $ | 18,424 | $ | 22,251 | $ | 34,580 | $ | 43,172 | ||||||||||
Earnings per common share | ||||||||||||||||||||||
Basic | $ | 0.68 | $ | 0.91 | $ | 0.69 | $ | 0.96 | $ | 1.36 | $ | 1.87 | ||||||||||
Diluted | 0.67 | 0.90 | 0.68 | 0.95 | 1.36 | 1.85 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Net income | $ | 16,156 | $ | 20,921 | $ | 18,424 | $ | 22,251 | $ | 34,580 | $ | 43,172 | ||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||||||||
Unrealized gains (losses) on investment securities arising during the period, net of income tax expense (benefit) for three months of $3,774 and $(2,265), respectively | 11,504 | (6,904 | ) | |||||||||||||||||||
Less: Reclassification adjustment for realized gains (losses) on sale of securities available for sale included in net income, net of income tax expense (benefit) for three months of ($72) and $2, respectively | 220 | (7 | ) | |||||||||||||||||||
Unrealized loss on cash flow hedges arising during the period, net of income tax benefit of $312 | (952 | ) | — | |||||||||||||||||||
Unrealized gains (losses) on investment securities arising during the period, net of income tax expense (benefit) for three months of $4,213 and $(333), and for six months of $7,987 and $(2,598), respectively | 12,845 | (1,017 | ) | 24,349 | (7,921 | ) | ||||||||||||||||
Less: Reclassification adjustment for realized gains (losses) on sale of securities available for sale included in net income, net of income tax expense (benefit) for six months of $(72) and $2, respectively | — | — | 220 | (7 | ) | |||||||||||||||||
Unrealized loss on cash flow hedges arising during the 2019 periods, net of income tax benefit for three months of $413 and for six months of $726 | (1,261 | ) | — | (2,213 | ) | — | ||||||||||||||||
Total other comprehensive income (loss) | 10,772 | (6,911 | ) | 11,584 | (1,017 | ) | 22,356 | (7,928 | ) | |||||||||||||
Total comprehensive income | $ | 26,928 | $ | 14,010 | $ | 30,008 | $ | 21,234 | $ | 56,936 | $ | 35,244 |
(in thousands, except per share data) | Common Stock | Treasury Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | Common Stock | Treasury Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 280 | $ | (42,655 | ) | $ | 521,761 | $ | 316,959 | $ | 1,490 | $ | 797,835 | |||||||||||||||||||||||||||||||||
Net income | — | — | — | 18,424 | — | 18,424 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 11,584 | 11,584 | ||||||||||||||||||||||||||||||||||||||||
Total comprehensive income | — | — | — | 18,424 | 11,584 | 30,008 | ||||||||||||||||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.15 per share | — | — | — | (4,035 | ) | — | (4,035 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance under equity compensation plans, 28,341 shares, net | — | — | 707 | — | — | 707 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 986 | — | — | 986 | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 280 | $ | (42,655 | ) | $ | 523,454 | $ | 331,348 | $ | 13,074 | $ | 825,501 | |||||||||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 239 | $ | (42,655 | ) | $ | 350,936 | $ | 304,566 | $ | (9,282 | ) | $ | 603,804 | $ | 239 | $ | (42,655 | ) | $ | 350,936 | $ | 304,566 | $ | (9,282 | ) | $ | 603,804 | ||||||||||||||||||
Net income | — | — | — | 16,156 | — | 16,156 | — | — | — | 34,580 | — | 34,580 | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 10,772 | 10,772 | — | — | — | — | 22,356 | 22,356 | ||||||||||||||||||||||||||||||||||
Total comprehensive income | — | — | — | 16,156 | 10,772 | 26,928 | — | — | — | 34,580 | 22,356 | 56,936 | ||||||||||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.14 per share | — | — | — | (3,763 | ) | — | (3,763 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance under equity compensation plans, 75,089 shares, net | 1 | — | (1,941 | ) | — | — | (1,940 | ) | ||||||||||||||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.29 per share | — | — | — | (7,798 | ) | — | (7,798 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance under equity compensation plans, 103,430 shares, net | 1 | — | (1,234 | ) | — | — | (1,233 | ) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 921 | — | — | 921 | — | — | 1,907 | — | — | 1,907 | ||||||||||||||||||||||||||||||||||
Shares issued in connection with acquisition of Trinity Capital Corporation, 3,990,822 shares | 40 | — | 171,845 | — | — | 171,885 | 40 | — | 171,845 | — | — | 171,885 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | 280 | $ | (42,655 | ) | $ | 521,761 | $ | 316,959 | $ | 1,490 | $ | 797,835 | |||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | $ | 280 | $ | (42,655 | ) | $ | 523,454 | $ | 331,348 | $ | 13,074 | $ | 825,501 | |||||||||||||||||||||||||||||||||
(in thousands, except per share data) | Common Stock | Treasury Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | Common Stock | Treasury Stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive income (loss) | Total shareholders’ equity | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | 239 | $ | (26,326 | ) | $ | 348,092 | $ | 244,573 | $ | (11,563 | ) | $ | 555,015 | ||||||||||||||||||||||||||||||||
Net income | — | — | — | 22,251 | — | 22,251 | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (1,017 | ) | (1,017 | ) | ||||||||||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 22,251 | (1,017 | ) | 21,234 | |||||||||||||||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.11 per share | — | — | — | (2,544 | ) | — | (2,544 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance under equity compensation plans, 32,959 shares, net | — | — | (534 | ) | — | — | (534 | ) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 913 | — | — | 913 | ||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 239 | $ | (26,326 | ) | $ | 348,471 | $ | 264,280 | $ | (12,580 | ) | $ | 574,084 | ||||||||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 238 | $ | (23,268 | ) | $ | 350,061 | $ | 225,360 | $ | (3,818 | ) | $ | 548,573 | $ | 238 | $ | (23,268 | ) | $ | 350,061 | $ | 225,360 | $ | (3,818 | ) | $ | 548,573 | ||||||||||||||||||
Net income | — | — | — | 20,921 | — | 20,921 | — | — | — | 43,172 | — | 43,172 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (6,911 | ) | (6,911 | ) | — | — | — | — | (7,928 | ) | (7,928 | ) | ||||||||||||||||||||||||||||||
Total comprehensive income (loss) | — | — | — | 20,921 | (6,911 | ) | 14,010 | — | — | — | 43,172 | (7,928 | ) | 35,244 | ||||||||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.11 per share | — | — | — | (2,542 | ) | — | (2,542 | ) | ||||||||||||||||||||||||||||||||||||||
Cash dividends paid on common shares, $0.22 per share | — | — | — | (5,086 | ) | — | (5,086 | ) | ||||||||||||||||||||||||||||||||||||||
Repurchase of common shares | — | (3,058 | ) | — | — | — | (3,058 | ) | — | (3,058 | ) | — | — | — | (3,058 | ) | ||||||||||||||||||||||||||||||
Issuance under equity compensation plans, 86,598 shares, net | 1 | — | (2,687 | ) | — | — | (2,686 | ) | ||||||||||||||||||||||||||||||||||||||
Issuance under equity compensation plans, 119,557 shares, net | 1 | — | (3,221 | ) | — | — | (3,220 | ) | ||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 718 | — | — | 718 | — | — | 1,631 | — | — | 1,631 | ||||||||||||||||||||||||||||||||||
Reclassification adjustment for change in accounting policies | — | — | — | 834 | (834 | ) | — | — | — | — | 834 | (834 | ) | — | ||||||||||||||||||||||||||||||||
Balance at March 31, 2018 | $ | 239 | $ | (26,326 | ) | $ | 348,092 | $ | 244,573 | $ | (11,563 | ) | $ | 555,015 | ||||||||||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 239 | $ | (26,326 | ) | $ | 348,471 | $ | 264,280 | $ | (12,580 | ) | $ | 574,084 |
Three months ended March 31, | Six months ended June 30, | |||||||||||||
(in thousands, except share data) | 2019 | 2018 | 2019 | 2018 | ||||||||||
Cash flows from operating activities: | ||||||||||||||
Net income | $ | 16,156 | $ | 20,921 | $ | 34,580 | $ | 43,172 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||||||
Depreciation | 1,162 | 849 | 2,743 | 1,707 | ||||||||||
Provision for loan losses | 1,476 | 1,870 | 3,198 | 2,261 | ||||||||||
Deferred income taxes | 2,727 | 2,290 | 3,813 | 3,156 | ||||||||||
Net amortization of debt securities | 407 | 533 | 1,189 | 956 | ||||||||||
Amortization of intangible assets | 838 | 656 | 2,418 | 1,288 | ||||||||||
Loss (gain) on sale of investment securities | 292 | (9 | ) | 292 | (9 | ) | ||||||||
Mortgage loans originated for sale | (4,087 | ) | (12,389 | ) | (11,645 | ) | (25,064 | ) | ||||||
Proceeds from mortgage loans sold | 3,825 | 13,917 | 10,629 | 27,070 | ||||||||||
Gain on sale of other real estate | (66 | ) | — | (48 | ) | — | ||||||||
Gain on state tax credits, net | (158 | ) | (252 | ) | (107 | ) | (316 | ) | ||||||
Share-based compensation | 921 | 718 | 1,907 | 1,631 | ||||||||||
Net accretion of loan discount | (596 | ) | (467 | ) | ||||||||||
Accretion of loan discount | (4,702 | ) | (793 | ) | ||||||||||
Changes in: | ||||||||||||||
Accrued interest receivable | (6,210 | ) | (3,209 | ) | (6,942 | ) | (3,739 | ) | ||||||
Accrued interest payable | 884 | 315 | 354 | 154 | ||||||||||
Other assets | (104 | ) | (888 | ) | (9,697 | ) | (809 | ) | ||||||
Other liabilities | (1,755 | ) | (2,640 | ) | (7,415 | ) | 1,203 | |||||||
Net cash provided by operating activities | 15,712 | 22,215 | 20,567 | 51,868 | ||||||||||
Cash flows from investing activities: | ||||||||||||||
Acquisition cash purchase price, net of cash and cash equivalents acquired | (23,376 | ) | — | (23,377 | ) | — | ||||||||
Net decrease (increase) in loans | 13,855 | (93,125 | ) | |||||||||||
Increase in loans | (121,115 | ) | (178,386 | ) | ||||||||||
Proceeds from the sale of securities, available for sale | 259,420 | 1,451 | 263,298 | 1,451 | ||||||||||
Proceeds from the paydown or maturity of securities, available for sale | 27,684 | 19,683 | 58,229 | 40,743 | ||||||||||
Proceeds from the paydown or maturity of securities, held to maturity | 1,269 | 1,639 | 2,864 | 3,239 | ||||||||||
Proceeds from the redemption of other investments | 11,744 | 13,514 | 31,138 | 22,728 | ||||||||||
Proceeds from the sale of state tax credits held for sale | 2,381 | 1,356 | 2,252 | 1,940 | ||||||||||
Proceeds from the sale of other real estate | 66 | — | 2,281 | — | ||||||||||
Payments for the purchase/origination of: | ||||||||||||||
Payments for the purchase of: | ||||||||||||||
Available for sale debt securities | (221,711 | ) | (40,313 | ) | (363,900 | ) | (62,055 | ) | ||||||
Other investments | (14,977 | ) | (17,864 | ) | (43,589 | ) | (33,719 | ) | ||||||
State tax credits held for sale | (1,852 | ) | — | (1,852 | ) | (4,636 | ) | |||||||
Fixed assets, net | (1,268 | ) | (370 | ) | (2,236 | ) | (1,915 | ) | ||||||
Net cash provided by (used in) investing activities | 53,235 | (114,029 | ) | |||||||||||
Net cash used in investing activities | (196,007 | ) | (210,610 | ) | ||||||||||
Cash flows from financing activities: | ||||||||||||||
Net decrease in noninterest-bearing deposit accounts | (83,290 | ) | (22,202 | ) | (88,219 | ) | (72,938 | ) | ||||||
Net (increase) decrease in interest-bearing deposit accounts | (48,770 | ) | 147,165 | |||||||||||
Net increase (decrease) in interest-bearing deposit accounts | (21,615 | ) | 164,436 | |||||||||||
Proceeds from Federal Home Loan Bank advances | 364,525 | 484,500 | 962,000 | 907,500 | ||||||||||
Repayments of Federal Home Loan Bank advances | (259,500 | ) | (432,500 | ) | (649,500 | ) | (718,500 | ) | ||||||
Proceeds from notes payable | 40,000 | — | 40,000 | — | ||||||||||
Repayments of notes payable | (2,000 | ) | — | (4,857 | ) | — | ||||||||
Net decrease in other borrowings | (49,279 | ) | (87,085 | ) | (60,490 | ) | (86,458 | ) | ||||||
Cash dividends paid on common stock | (3,763 | ) | (2,542 | ) | (7,798 | ) | (5,086 | ) | ||||||
Payments for the repurchase of common stock | — | (3,058 | ) | — | (3,058 | ) | ||||||||
Payments for the issuance of equity instruments, net | (1,940 | ) | (2,686 | ) | (1,233 | ) | (3,220 | ) | ||||||
Net cash (used in) provided by financing activities | (44,017 | ) | 81,592 | |||||||||||
Net increase (decrease) in cash and cash equivalents | 24,930 | (10,222 | ) | |||||||||||
Net cash provided by financing activities | 168,288 | 182,676 | ||||||||||||
Net increase in cash and cash equivalents | (7,152 | ) | 23,934 | |||||||||||
Cash and cash equivalents, beginning of period | 196,552 | 153,323 | 196,552 | 153,323 | ||||||||||
Cash and cash equivalents, end of period | $ | 221,482 | $ | 143,101 | $ | 189,400 | $ | 177,257 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||||
Cash paid during the period for: | ||||||||||||||
Interest | $ | 14,020 | $ | 8,677 | $ | 32,036 | $ | 19,670 | ||||||
Income taxes | — | 685 | 11,915 | 780 | ||||||||||
Noncash transactions: | ||||||||||||||
Transfer to other real estate owned in settlement of loans | $ | 1,372 | $ | — | $ | 7,783 | $ | — | ||||||
Common shares issued in connection with acquisition | 171,885 | — | 171,885 | — |
(in thousands) | As Recorded by TCC | Adjustments | As Recorded by EFSC | As Recorded by Trinity | Adjustments | As Recorded by EFSC | ||||||||||||||||
Assets acquired: | ||||||||||||||||||||||
Cash and cash equivalents | $ | 13,899 | $ | — | $ | 13,899 | $ | 13,899 | $ | — | $ | 13,899 | ||||||||||
Interest-earning deposits greater than 90 days | 100 | — | 100 | 100 | — | 100 | ||||||||||||||||
Securities | 428,715 | (414 | ) | (a) | 428,301 | 428,715 | (619 | ) | (a) | 428,096 | ||||||||||||
Loans, net | 705,057 | (21,493 | ) | (b) | 683,564 | |||||||||||||||||
Loans | 705,057 | (20,743 | ) | (b) | 684,314 | |||||||||||||||||
Other real estate | 5,284 | (321 | ) | (c) | 4,963 | 5,284 | (772 | ) | (c) | 4,512 | ||||||||||||
Other investments | 6,673 | — | 6,673 | 6,673 | — | 6,673 | ||||||||||||||||
Fixed assets, net | 27,586 | 500 | (d) | 28,086 | ||||||||||||||||||
Fixed assets | 27,586 | (300 | ) | (d) | 27,286 | |||||||||||||||||
Accrued interest receivable | 3,997 | — | 3,997 | 3,997 | — | 3,997 | ||||||||||||||||
Intangible assets | — | 23,333 | (e) | 23,333 | — | 23,066 | (e) | 23,066 | ||||||||||||||
Deferred tax assets | 10,708 | 2 | (f) | 10,710 | 10,708 | (1,057 | ) | (f) | 9,651 | |||||||||||||
Other assets | 35,045 | (2,947 | ) | (g) | 32,098 | 35,045 | (5,008 | ) | (g) | 30,037 | ||||||||||||
Total assets acquired | $ | 1,237,064 | $ | (1,340 | ) | $ | 1,235,724 | $ | 1,237,064 | $ | (5,433 | ) | $ | 1,231,631 | ||||||||
Liabilities assumed: | ||||||||||||||||||||||
Deposits | $ | 1,081,151 | $ | 36 | (h) | $ | 1,081,187 | $ | 1,081,151 | $ | 36 | (h) | $ | 1,081,187 | ||||||||
Subordinated debentures | 26,806 | (4,325 | ) | (i) | 22,481 | 26,806 | (3,972 | ) | (i) | 22,834 | ||||||||||||
Federal Home Loan Bank advances | 6,800 | 171 | (j) | 6,971 | 6,800 | 171 | (j) | 6,971 | ||||||||||||||
Accrued interest payable | 370 | — | 370 | 370 | — | 370 | ||||||||||||||||
Other liabilities | 5,842 | — | 5,842 | 5,842 | (827 | ) | (k) | 5,015 | ||||||||||||||
Total liabilities assumed | $ | 1,120,969 | $ | (4,118 | ) | $ | 1,116,851 | $ | 1,120,969 | $ | (4,592 | ) | $ | 1,116,377 | ||||||||
Net assets acquired | $ | 116,095 | $ | 2,778 | $ | 118,873 | $ | 116,095 | $ | (841 | ) | $ | 115,254 | |||||||||
Consideration paid: | ||||||||||||||||||||||
Cash | $ | 37,276 | $ | 37,275 | ||||||||||||||||||
Common stock | 171,884 | 171,885 | ||||||||||||||||||||
Total consideration paid | $ | 209,160 | $ | 209,160 | ||||||||||||||||||
Goodwill | $ | 90,287 | $ | 93,906 |
(b) | Fair value adjustments based on the Company’s evaluation of the acquired loan portfolio, write-off of net deferred loan costs and elimination of the allowance for loan losses recorded by Trinity. |
(c) | Fair value adjustment based on the Company’s evaluation of the acquired OREO portfolio. |
(d) | Fair value adjustments based on the Company’s evaluation of the acquired premises and equipment. |
(e) |
(f) | Adjustment for deferred taxes at the acquisition date. |
(g) | Fair value adjustment of other assets at the acquisition date. |
(h) | Fair value adjustment to time deposits. |
(i) | Fair value adjustment to the trust preferred securities at the acquisition date. |
(j) | Fair value adjustment to the Federal Home Loan Bank borrowings. |
(k) | Fair value adjustment of other liabilities recorded during the second quarter of 2019 upon continued refinement of the fair values. |
Pro Forma | |||||||
Six months ended June 30, | |||||||
(in thousands, except per share data) | 2019 | 2018 | |||||
Total revenues (net interest income plus noninterest income) | $ | 144,915 | $ | 140,612 | |||
Net income | 48,987 | 33,616 | |||||
Diluted earnings per common share | 1.65 | 1.23 |
Pro Forma | |||||||
Three months ended March 31, | |||||||
(in thousands, except per share data) | 2019 | 2018 | |||||
Total revenues (net interest income plus noninterest income) | $ | 71,983 | $ | 68,874 | |||
Net income | 23,100 | 15,009 | |||||
Diluted earnings per common share | 0.82 | 0.55 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands, except per share data) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net income as reported | $ | 18,424 | $ | 22,251 | $ | 34,580 | $ | 43,172 | |||||||
Weighted average common shares outstanding | 26,887 | 23,124 | 25,415 | 23,119 | |||||||||||
Additional dilutive common stock equivalents | 53 | 194 | 73 | 213 | |||||||||||
Weighted average diluted common shares outstanding | 26,940 | 23,318 | 25,488 | 23,332 | |||||||||||
Basic earnings per common share: | $ | 0.69 | $ | 0.96 | $ | 1.36 | $ | 1.87 | |||||||
Diluted earnings per common share: | 0.68 | 0.95 | $ | 1.36 | $ | 1.85 |
Three months ended March 31, | |||||||
(in thousands, except per share data) | 2019 | 2018 | |||||
Net income as reported | $ | 16,156 | $ | 20,921 | |||
Weighted average common shares outstanding | 23,927 | 23,115 | |||||
Additional dilutive common stock equivalents | 156 | 172 | |||||
Weighted average diluted common shares outstanding | 24,083 | 23,287 | |||||
Basic earnings per common share: | $ | 0.68 | $ | 0.91 | |||
Diluted earnings per common share: | 0.67 | 0.90 |
June 30, 2019 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | 49,998 | $ | 153 | $ | — | $ | 50,151 | |||||||
Obligations of states and political subdivisions | 114,173 | 4,523 | — | 118,696 | |||||||||||
Agency mortgage-backed securities | 911,770 | 14,122 | (1,845 | ) | 924,047 | ||||||||||
U.S. Treasury bills | 9,966 | 239 | — | 10,205 | |||||||||||
Corporate debt securities | 116,434 | 3,519 | — | 119,953 | |||||||||||
Total securities available for sale | $ | 1,202,341 | $ | 22,556 | $ | (1,845 | ) | $ | 1,223,052 | ||||||
Held to maturity securities: | |||||||||||||||
Obligations of states and political subdivisions | $ | 12,474 | $ | 160 | $ | (1 | ) | $ | 12,633 | ||||||
Agency mortgage-backed securities | 50,251 | 251 | (74 | ) | 50,428 | ||||||||||
Total securities held to maturity | $ | 62,725 | $ | 411 | $ | (75 | ) | $ | 63,061 |
March 31, 2019 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | 54,128 | $ | — | $ | (347 | ) | $ | 53,781 | ||||||
Obligations of states and political subdivisions | 114,770 | 2,218 | (3 | ) | 116,985 | ||||||||||
Agency mortgage-backed securities | 895,899 | 6,461 | (4,816 | ) | 897,544 | ||||||||||
U.S. Treasury bills | 9,964 | 113 | — | 10,077 | |||||||||||
Corporate debt securities | 20,768 | 30 | — | 20,798 | |||||||||||
Total securities available for sale | $ | 1,095,529 | $ | 8,822 | $ | (5,166 | ) | $ | 1,099,185 | ||||||
Held to maturity securities: | |||||||||||||||
Obligations of states and political subdivisions | $ | 12,490 | $ | 91 | $ | (20 | ) | $ | 12,561 | ||||||
Agency mortgage-backed securities | 51,878 | 11 | (303 | ) | 51,586 | ||||||||||
Total securities held to maturity | $ | 64,368 | $ | 102 | $ | (323 | ) | $ | 64,147 |
December 31, 2018 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | 99,926 | $ | — | $ | (1,428 | ) | $ | 98,498 | ||||||
Obligations of states and political subdivisions | 26,566 | 327 | (83 | ) | 26,810 | ||||||||||
Agency mortgage-backed securities | 596,825 | 1,160 | (11,849 | ) | 586,136 | ||||||||||
U.S. Treasury Bills | $ | 9,962 | $ | — | $ | (37 | ) | $ | 9,925 | ||||||
Total securities available for sale | $ | 733,279 | $ | 1,487 | $ | (13,397 | ) | $ | 721,369 | ||||||
Held to maturity securities: | |||||||||||||||
Obligations of states and political subdivisions | $ | 12,506 | $ | 16 | $ | (114 | ) | $ | 12,408 | ||||||
Agency mortgage-backed securities | 53,173 | — | (1,647 | ) | 51,526 | ||||||||||
Total securities held to maturity | $ | 65,679 | $ | 16 | $ | (1,761 | ) | $ | 63,934 |
December 31, 2018 | |||||||||||||||
(in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | |||||||||||
Available for sale securities: | |||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | 99,926 | $ | — | $ | (1,428 | ) | $ | 98,498 | ||||||
Obligations of states and political subdivisions | 26,566 | 327 | (83 | ) | 26,810 | ||||||||||
Agency mortgage-backed securities | 596,825 | 1,160 | (11,849 | ) | 586,136 | ||||||||||
U.S. Treasury Bills | $ | 9,962 | $ | — | $ | (37 | ) | $ | 9,925 | ||||||
Total securities available for sale | $ | 733,279 | $ | 1,487 | $ | (13,397 | ) | $ | 721,369 | ||||||
Held to maturity securities: | |||||||||||||||
Obligations of states and political subdivisions | $ | 12,506 | $ | 16 | $ | (114 | ) | $ | 12,408 | ||||||
Agency mortgage-backed securities | 53,173 | — | (1,647 | ) | 51,526 | ||||||||||
Total securities held to maturity | $ | 65,679 | $ | 16 | $ | (1,761 | ) | $ | 63,934 |
Available for sale | Held to maturity | ||||||||||||||
(in thousands) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||
Due in one year or less | $ | 1,571 | $ | 1,579 | $ | — | $ | — | |||||||
Due after one year through five years | 67,794 | 68,369 | 3,883 | 3,931 | |||||||||||
Due after five years through ten years | 127,156 | 131,019 | 8,591 | 8,702 | |||||||||||
Due after ten years | 94,050 | 98,038 | — | — | |||||||||||
Agency mortgage-backed securities | 911,770 | 924,047 | 50,251 | 50,428 | |||||||||||
$ | 1,202,341 | $ | 1,223,052 | $ | 62,725 | $ | 63,061 |
Available for sale | Held to maturity | ||||||||||||||
(in thousands) | Amortized Cost | Estimated Fair Value | Amortized Cost | Estimated Fair Value | |||||||||||
Due in one year or less | $ | 1,876 | $ | 1,888 | $ | — | $ | — | |||||||
Due after one year through five years | 67,451 | 67,377 | 2,534 | 2,546 | |||||||||||
Due after five years through ten years | 31,819 | 32,135 | 9,957 | 10,015 | |||||||||||
Due after ten years | 98,484 | 100,241 | — | — | |||||||||||
Agency mortgage-backed securities | 895,899 | 897,544 | 51,877 | 51,586 | |||||||||||
$ | 1,095,529 | $ | 1,099,185 | $ | 64,368 | $ | 64,147 |
June 30, 2019 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Obligations of states and political subdivisions | 386 | 1 | 839 | — | 1,225 | 1 | |||||||||||||||||
Agency mortgage-backed securities | 17,122 | 300 | 178,017 | 1,619 | 195,139 | 1,919 | |||||||||||||||||
$ | 17,508 | $ | 301 | $ | 178,856 | $ | 1,619 | $ | 196,364 | $ | 1,920 | ||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | 19,622 | $ | 322 | $ | 78,876 | $ | 1,106 | $ | 98,498 | $ | 1,428 | |||||||||||
Obligations of states and political subdivisions | 3,102 | 15 | 14,156 | 182 | 17,258 | 197 | |||||||||||||||||
Agency mortgage-backed securities | 87,357 | 2,211 | 389,770 | 11,285 | 477,127 | 13,496 | |||||||||||||||||
U.S. Treasury bills | — | — | 9,925 | 37 | 9,925 | 37 | |||||||||||||||||
$ | 110,081 | $ | 2,548 | $ | 492,727 | $ | 12,610 | $ | 602,808 | $ | 15,158 |
March 31, 2019 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | 19,854 | $ | 95 | $ | 29,796 | $ | 252 | $ | 49,650 | $ | 347 | |||||||||||
Obligations of states and political subdivisions | 680 | 10 | 2,949 | 13 | 3,629 | 23 | |||||||||||||||||
Agency mortgage-backed securities | 47,506 | 685 | 326,319 | 4,434 | 373,825 | 5,119 | |||||||||||||||||
$ | 68,040 | $ | 790 | $ | 359,064 | $ | 4,699 | $ | 427,104 | $ | 5,489 | ||||||||||||
December 31, 2018 | |||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||
(in thousands) | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | 19,622 | $ | 322 | $ | 78,876 | $ | 1,106 | $ | 98,498 | $ | 1,428 | |||||||||||
Obligations of states and political subdivisions | 3,102 | 15 | 14,156 | 182 | 17,258 | 197 | |||||||||||||||||
Agency mortgage-backed securities | 87,357 | 2,211 | 389,770 | 11,285 | 477,127 | 13,496 | |||||||||||||||||
U.S. Treasury bills | — | — | 9,925 | 37 | 9,925 | 37 | |||||||||||||||||
$ | 110,081 | $ | 2,548 | $ | 492,727 | $ | 12,610 | $ | 602,808 | $ | 15,158 |
(in thousands) | March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||
Loans accounted for at amortized cost | $ | 4,894,574 | $ | 4,303,600 | $ | 5,046,182 | $ | 4,303,600 | ||||||
Loans accounted for as PCI | 122,503 | 46,401 | 103,315 | 46,401 | ||||||||||
Total loans | $ | 5,017,077 | $ | 4,350,001 | $ | 5,149,497 | $ | 4,350,001 |
(in thousands) | March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||
Allowance for loans accounted for at amortized cost | $ | 41,945 | $ | 42,295 | $ | 42,935 | $ | 42,295 | ||||||
Allowance for loans accounted for as PCI | 1,150 | 1,181 | 887 | 1,181 | ||||||||||
Total allowance for loan losses | $ | 43,095 | $ | 43,476 | $ | 43,822 | $ | 43,476 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
Commercial and industrial | $ | 2,248,571 | $ | 2,121,008 | |||
Real estate: | |||||||
Commercial - investor owned | 1,198,308 | 843,728 | |||||
Commercial - owner occupied | 678,046 | 604,498 | |||||
Construction and land development | 396,370 | 330,097 | |||||
Residential | 395,828 | 298,944 | |||||
Total real estate loans | 2,668,552 | 2,077,267 | |||||
Consumer and other | 131,041 | 107,351 | |||||
Loans, before unearned loan fees | 5,048,164 | 4,305,626 | |||||
Unearned loan fees, net | (1,982 | ) | (2,026 | ) | |||
Loans, including unearned loan fees | $ | 5,046,182 | $ | 4,303,600 |
(in thousands) | March 31, 2019 | December 31, 2018 | |||||
Commercial and industrial | $ | 2,209,437 | $ | 2,121,008 | |||
Real estate: | |||||||
Commercial - investor owned | 1,144,868 | 843,728 | |||||
Commercial - owner occupied | 647,198 | 604,498 | |||||
Construction and land development | 358,884 | 330,097 | |||||
Residential | 416,731 | 298,944 | |||||
Total real estate loans | 2,567,681 | 2,077,267 | |||||
Consumer and other | 119,368 | 107,351 | |||||
Loans, before unearned loan fees | 4,896,486 | 4,305,626 | |||||
Unearned loan fees, net | (1,912 | ) | (2,026 | ) | |||
Loans, including unearned loan fees | $ | 4,894,574 | $ | 4,303,600 |
(in thousands) | Commercial and industrial | CRE - investor owned | CRE - owner occupied | Construction and land development | Residential real estate | Consumer and other | Total | ||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 29,039 | $ | 4,683 | $ | 4,239 | $ | 1,987 | $ | 1,616 | $ | 731 | $ | 42,295 | |||||||||||||
Provision (provision reversal) for loan losses | 1,445 | 769 | (431 | ) | (252 | ) | (288 | ) | 233 | 1,476 | |||||||||||||||||
Losses charged off | (1,853 | ) | (120 | ) | (36 | ) | (45 | ) | (67 | ) | (129 | ) | (2,250 | ) | |||||||||||||
Recoveries | 29 | 7 | 2 | 9 | 364 | 13 | 424 | ||||||||||||||||||||
Balance at March 31, 2019 | $ | 28,660 | $ | 5,339 | $ | 3,774 | $ | 1,699 | $ | 1,625 | $ | 848 | $ | 41,945 | |||||||||||||
Provision (provision reversal) for loan losses | 1,781 | 364 | 591 | (216 | ) | (345 | ) | (215 | ) | 1,960 | |||||||||||||||||
Losses charged off | (1,380 | ) | (431 | ) | — | — | (26 | ) | (53 | ) | (1,890 | ) | |||||||||||||||
Recoveries | 32 | 52 | 6 | 489 | 124 | 217 | 920 | ||||||||||||||||||||
Balance at June 30, 2019 | $ | 29,093 | $ | 5,324 | $ | 4,371 | $ | 1,972 | $ | 1,378 | $ | 797 | $ | 42,935 |
(in thousands) | Commercial and industrial | CRE - investor owned | CRE - owner occupied | Construction and land development | Residential real estate | Consumer and other | Total | ||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||
Balance at December 31, 2018 | $ | 29,039 | $ | 4,683 | $ | 4,239 | $ | 1,987 | $ | 1,616 | $ | 731 | $ | 42,295 | |||||||||||||
Provision (provision reversal) for loan losses | 1,445 | 769 | (431 | ) | (252 | ) | (288 | ) | 233 | 1,476 | |||||||||||||||||
Losses charged off | (1,853 | ) | (120 | ) | (36 | ) | (45 | ) | (67 | ) | (129 | ) | (2,250 | ) | |||||||||||||
Recoveries | 29 | 7 | 2 | 9 | 364 | 13 | 424 | ||||||||||||||||||||
Balance at March 31, 2019 | $ | 28,660 | $ | 5,339 | $ | 3,774 | $ | 1,699 | $ | 1,625 | $ | 848 | $ | 41,945 |
(in thousands) | Commercial and industrial | CRE - investor owned | CRE - owner occupied | Construction and land development | Residential real estate | Consumer and other | Total | ||||||||||||||||||||
Balance June 30, 2019 | |||||||||||||||||||||||||||
Allowance for loan losses - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,402 | $ | 165 | $ | 9 | $ | — | $ | 23 | $ | — | $ | 2,599 | |||||||||||||
Collectively evaluated for impairment | 26,691 | 5,159 | 4,362 | 1,972 | 1,355 | 797 | 40,336 | ||||||||||||||||||||
Total | $ | 29,093 | $ | 5,324 | $ | 4,371 | $ | 1,972 | $ | 1,378 | $ | 797 | $ | 42,935 | |||||||||||||
Loans - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 15,112 | $ | 1,284 | $ | 1,629 | $ | — | $ | 3,060 | $ | — | $ | 21,085 | |||||||||||||
Collectively evaluated for impairment | 2,233,459 | 1,197,024 | 676,417 | 396,370 | 392,768 | 129,059 | 5,025,097 | ||||||||||||||||||||
Total | $ | 2,248,571 | $ | 1,198,308 | $ | 678,046 | $ | 396,370 | $ | 395,828 | $ | 129,059 | $ | 5,046,182 | |||||||||||||
Balance December 31, 2018 | |||||||||||||||||||||||||||
Allowance for loan losses - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,266 | $ | — | $ | 109 | $ | — | $ | 52 | $ | 26 | $ | 4,453 | |||||||||||||
Collectively evaluated for impairment | 24,773 | 4,683 | 4,130 | 1,987 | 1,564 | 705 | 37,842 | ||||||||||||||||||||
Total | $ | 29,039 | $ | 4,683 | $ | 4,239 | $ | 1,987 | $ | 1,616 | $ | 731 | $ | 42,295 | |||||||||||||
Loans - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12,950 | $ | 398 | $ | 2,135 | $ | — | $ | 2,277 | $ | 311 | $ | 18,071 | |||||||||||||
Collectively evaluated for impairment | 2,108,058 | 843,330 | 602,363 | 330,097 | 296,667 | 105,014 | 4,285,529 | ||||||||||||||||||||
Total | $ | 2,121,008 | $ | 843,728 | $ | 604,498 | $ | 330,097 | $ | 298,944 | $ | 105,325 | $ | 4,303,600 |
(in thousands) | Commercial and industrial | CRE - investor owned | CRE - owner occupied | Construction and land development | Residential real estate | Consumer and other | Total | ||||||||||||||||||||
Balance March 31, 2019 | |||||||||||||||||||||||||||
Allowance for loan losses - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 2,199 | $ | 596 | $ | 119 | $ | — | $ | — | $ | — | $ | 2,914 | |||||||||||||
Collectively evaluated for impairment | 26,461 | 4,743 | 3,655 | 1,699 | 1,625 | 848 | 39,031 | ||||||||||||||||||||
Total | $ | 28,660 | $ | 5,339 | $ | 3,774 | $ | 1,699 | $ | 1,625 | $ | 848 | $ | 41,945 | |||||||||||||
Loans - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 7,205 | $ | 1,527 | $ | 2,296 | $ | — | $ | 408 | $ | — | $ | 11,436 | |||||||||||||
Collectively evaluated for impairment | 2,202,232 | 1,143,341 | 644,902 | 358,884 | 416,323 | 117,456 | 4,883,138 | ||||||||||||||||||||
Total | $ | 2,209,437 | $ | 1,144,868 | $ | 647,198 | $ | 358,884 | $ | 416,731 | $ | 117,456 | $ | 4,894,574 | |||||||||||||
Balance December 31, 2018 | |||||||||||||||||||||||||||
Allowance for loan losses - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 4,266 | $ | — | $ | 109 | $ | — | $ | 52 | $ | 26 | $ | 4,453 | |||||||||||||
Collectively evaluated for impairment | 24,773 | 4,683 | 4,130 | 1,987 | 1,564 | 705 | 37,842 | ||||||||||||||||||||
Total | $ | 29,039 | $ | 4,683 | $ | 4,239 | $ | 1,987 | $ | 1,616 | $ | 731 | $ | 42,295 | |||||||||||||
Loans - Ending balance: | |||||||||||||||||||||||||||
Individually evaluated for impairment | $ | 12,950 | $ | 398 | $ | 2,135 | $ | — | $ | 2,277 | $ | 311 | $ | 18,071 | |||||||||||||
Collectively evaluated for impairment | 2,108,058 | 843,330 | 602,363 | 330,097 | 296,667 | 105,014 | 4,285,529 | ||||||||||||||||||||
Total | $ | 2,121,008 | $ | 843,728 | $ | 604,498 | $ | 330,097 | $ | 298,944 | $ | 105,325 | $ | 4,303,600 |
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | ||||||||||||||||||||||||||||||||||
Commercial and industrial | $ | 9,515 | $ | 2,168 | $ | 5,037 | $ | 7,205 | $ | 2,199 | $ | 7,855 | $ | 28,835 | $ | 6,826 | $ | 8,286 | $ | 15,112 | $ | 2,402 | $ | 16,728 | ||||||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||
Commercial - investor owned | 1,555 | 271 | 1,256 | 1,527 | 596 | 1,527 | 1,948 | 459 | 825 | 1,284 | 165 | 1,460 | ||||||||||||||||||||||||||||||||||
Commercial - owner occupied | 484 | 467 | — | 467 | — | 471 | 405 | 231 | 155 | 386 | 9 | 393 | ||||||||||||||||||||||||||||||||||
Construction and land development | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Residential | 409 | 408 | — | 408 | — | 408 | 3,069 | 2,928 | 132 | 3,060 | 23 | 1,869 | ||||||||||||||||||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 11,963 | $ | 3,314 | $ | 6,293 | $ | 9,607 | $ | 2,795 | $ | 10,261 | $ | 34,257 | $ | 10,444 | $ | 9,398 | $ | 19,842 | $ | 2,599 | $ | 20,450 |
December 31, 2018 | |||||||||||||||||||||||
(in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | |||||||||||||||||
Commercial and industrial | $ | 21,893 | $ | 3,294 | $ | 9,656 | $ | 12,950 | $ | 4,266 | $ | 13,827 | |||||||||||
Real estate: | |||||||||||||||||||||||
Commercial - investor owned | 553 | 398 | — | 398 | — | 277 | |||||||||||||||||
Commercial - owner occupied | 847 | 472 | 336 | 808 | 109 | 691 | |||||||||||||||||
Construction and land development | — | — | — | — | — | — | |||||||||||||||||
Residential | 2,425 | 1,659 | 618 | 2,277 | 52 | 778 | |||||||||||||||||
Consumer and other | 329 | — | 312 | 312 | 26 | — | |||||||||||||||||
Total | $ | 26,047 | $ | 5,823 | $ | 10,922 | $ | 16,745 | $ | 4,453 | $ | 15,573 |
December 31, 2018 | |||||||||||||||||||||||
(in thousands) | Unpaid Contractual Principal Balance | Recorded Investment With No Allowance | Recorded Investment With Allowance | Total Recorded Investment | Related Allowance | Average Recorded Investment | |||||||||||||||||
Commercial and industrial | $ | 21,893 | $ | 3,294 | $ | 9,656 | $ | 12,950 | $ | 4,266 | $ | 13,827 | |||||||||||
Real estate: | |||||||||||||||||||||||
Commercial - investor owned | 553 | 398 | — | 398 | — | 277 | |||||||||||||||||
Commercial - owner occupied | 847 | 472 | 336 | 808 | 109 | 691 | |||||||||||||||||
Construction and land development | — | — | — | — | — | — | |||||||||||||||||
Residential | 2,425 | 1,659 | 618 | 2,277 | 52 | 778 | |||||||||||||||||
Consumer and other | 329 | — | 312 | 312 | 26 | — | |||||||||||||||||
Total | $ | 26,047 | $ | 5,823 | $ | 10,922 | $ | 16,745 | $ | 4,453 | $ | 15,573 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Total interest income that would have been recognized under original terms | $ | 210 | $ | 467 | $ | 647 | $ | 1,001 | |||||||
Total cash received and recognized as interest income on non-accrual loans | 123 | 78 | 185 | 89 | |||||||||||
Total interest income recognized on accruing, impaired loans | 110 | 13 | 113 | 23 |
Three months ended March 31, | |||||||
(in thousands) | 2019 | 2018 | |||||
Total interest income that would have been recognized under original terms | $ | 436 | $ | 534 | |||
Total cash received and recognized as interest income on non-accrual loans | 62 | 11 | |||||
Total interest income recognized on accruing, impaired loans | 3 | 11 |
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||
(in thousands) | Non-accrual | Restructured, not on non-accrual | Total | Non-accrual | Restructured, accruing | Loans over 90 days past due and still accruing interest | Total | |||||||||||||||||||
Commercial and industrial | $ | 7,094 | $ | 111 | $ | 7,205 | $ | 11,009 | $ | 104 | $ | 3,999 | $ | 15,112 | ||||||||||||
Real estate: | ||||||||||||||||||||||||||
Commercial - investor owned | 1,527 | — | 1,527 | 1,284 | — | — | 1,284 | |||||||||||||||||||
Commercial - owner occupied | 467 | — | 467 | 386 | — | — | 386 | |||||||||||||||||||
Construction and land development | — | — | — | — | — | — | — | |||||||||||||||||||
Residential | 328 | 80 | 408 | 2,980 | 80 | — | 3,060 | |||||||||||||||||||
Consumer and other | — | — | — | — | — | — | — | |||||||||||||||||||
Total | $ | 9,416 | $ | 191 | $ | 9,607 | $ | 15,659 | $ | 184 | $ | 3,999 | $ | 19,842 |
December 31, 2018 | December 31, 2018 | |||||||||||||||||||||
(in thousands) | Non-accrual | Restructured, not on non-accrual | Total | Non-accrual | Restructured, accruing | Total | ||||||||||||||||
Commercial and industrial | $ | 12,805 | $ | 145 | $ | 12,950 | $ | 12,805 | $ | 145 | $ | 12,950 | ||||||||||
Real estate: | ||||||||||||||||||||||
Commercial - investor owned | 398 | — | 398 | 398 | — | 398 | ||||||||||||||||
Commercial - owner occupied | 808 | — | 808 | 808 | — | 808 | ||||||||||||||||
Construction and land development | — | — | — | — | — | — | ||||||||||||||||
��Residential | 2,197 | 80 | 2,277 | |||||||||||||||||||
Residential | 2,197 | 80 | 2,277 | |||||||||||||||||||
Consumer and other | 312 | — | 312 | 312 | — | 312 | ||||||||||||||||
Total | $ | 16,520 | $ | 225 | $ | 16,745 | $ | 16,520 | $ | 225 | $ | 16,745 |
June 30, 2019 | ||||||||||
(in thousands, except for number of loans) | Number of loans | Pre-Modification Outstanding Recorded Balance | Post-Modification Outstanding Recorded Balance | |||||||
Real estate: | ||||||||||
Commercial - owner occupied | 1 | 188 | 188 | |||||||
Residential | 2 | 332 | 332 | |||||||
Total | 3 | $ | 520 | $ | 520 |
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 22,062 | $ | 5,816 | $ | 27,878 | $ | 2,181,559 | $ | 2,209,437 | $ | 6,682 | $ | 12,562 | $ | 19,244 | $ | 2,229,327 | $ | 2,248,571 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||
Commercial - investor owned | — | 1,527 | 1,527 | 1,143,341 | 1,144,868 | 1,647 | 1,096 | 2,743 | 1,195,565 | 1,198,308 | ||||||||||||||||||||||||||||
Commercial - owner occupied | 708 | 229 | 937 | 646,261 | 647,198 | 415 | 155 | 570 | 677,476 | 678,046 | ||||||||||||||||||||||||||||
Construction and land development | 98 | — | 98 | 358,786 | 358,884 | 41 | — | 41 | 396,329 | 396,370 | ||||||||||||||||||||||||||||
Residential | 4,945 | 328 | 5,273 | 411,458 | 416,731 | 1,147 | 2,649 | 3,796 | 392,032 | 395,828 | ||||||||||||||||||||||||||||
Consumer and other | 69 | — | 69 | 117,387 | 117,456 | 131 | — | 131 | 128,928 | 129,059 | ||||||||||||||||||||||||||||
Total | $ | 27,882 | $ | 7,900 | $ | 35,782 | $ | 4,858,792 | $ | 4,894,574 | $ | 10,063 | $ | 16,462 | $ | 26,525 | $ | 5,019,657 | $ | 5,046,182 |
December 31, 2018 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial and industrial | $ | 66 | $ | 10,257 | $ | 10,323 | $ | 2,110,685 | $ | 2,121,008 | |||||||||
Real estate: | |||||||||||||||||||
Commercial - investor owned | 529 | 127 | 656 | 843,072 | 843,728 | ||||||||||||||
Commercial - owner occupied | 292 | 565 | 857 | 603,641 | 604,498 | ||||||||||||||
Construction and land development | 6 | — | 6 | 330,091 | 330,097 | ||||||||||||||
Residential | 709 | 897 | 1,606 | 297,338 | 298,944 | ||||||||||||||
Consumer and other | — | 312 | 312 | 105,013 | 105,325 | ||||||||||||||
Total | $ | 1,602 | $ | 12,158 | $ | 13,760 | $ | 4,289,840 | $ | 4,303,600 |
December 31, 2018 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial and industrial | $ | 66 | $ | 10,257 | $ | 10,323 | $ | 2,110,685 | $ | 2,121,008 | |||||||||
Real estate: | |||||||||||||||||||
Commercial - investor owned | 529 | 127 | 656 | 843,072 | 843,728 | ||||||||||||||
Commercial - owner occupied | 292 | 565 | 857 | 603,641 | 604,498 | ||||||||||||||
Construction and land development | 6 | — | 6 | 330,091 | 330,097 | ||||||||||||||
Residential | 709 | 897 | 1,606 | 297,338 | 298,944 | ||||||||||||||
Consumer and other | — | 312 | 312 | 105,013 | 105,325 | ||||||||||||||
Total | $ | 1,602 | $ | 12,158 | $ | 13,760 | $ | 4,289,840 | $ | 4,303,600 |
• | Grades 1, 2, and 3 – Includes loans to borrowers with a continuous record of strong earnings, sound balance sheet condition and capitalization, ample liquidity with solid cash flow, and whose management team has experience and depth within their industry. |
• | Grade 4 – Includes loans to borrowers with positive trends in profitability, satisfactory capitalization and balance sheet condition, and sufficient liquidity and cash flow. |
• | Grade 5 – Includes loans to borrowers that may display fluctuating trends in sales, profitability, capitalization, liquidity, and cash flow. |
• | Grade 6 – Includes loans to borrowers where an adverse change or perceived weakness has occurred, but may be correctable in the near future. Alternatively, this rating category may also include circumstances where the borrower is starting to reverse a negative trend or condition, or has recently been upgraded from a 7, 8, or 9 rating. |
• | Grade 7 – Watch credits are borrowers that have experienced financial setback of a nature that is not determined to be severe or influence ‘ongoing concern’ expectations. Although possible, no loss is anticipated, due to strong collateral and/or guarantor support. |
• | Grade 8 – Substandard credits include those borrowers characterized by significant losses and sustained downward trends in balance sheet condition, liquidity, and cash flow. Repayment reliance may have shifted to secondary sources. Collateral exposure may exist and additional reserves may be warranted. |
• | Grade 9 – Doubtful credits include borrowers that may show deteriorating trends that are unlikely to be corrected. Collateral values may appear insufficient for full recovery, therefore requiring a partial charge-off, or debt renegotiation with the borrower. The borrower may have declared bankruptcy or bankruptcy is likely in the near term. All doubtful rated credits will be on non-accrual. |
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||
(in thousands) | Pass (1-6) | Watch (7) | Classified (8 & 9) | Total | Pass (1-6) | Watch (7) | Classified (8 & 9) | Total | ||||||||||||||||||||||
Commercial and industrial | $ | 1,991,293 | $ | 157,408 | $ | 60,736 | $ | 2,209,437 | $ | 2,035,655 | $ | 142,288 | $ | 70,628 | $ | 2,248,571 | ||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||
Commercial - investor owned | 1,124,030 | 17,088 | 3,750 | 1,144,868 | 1,175,396 | 19,884 | 3,028 | 1,198,308 | ||||||||||||||||||||||
Commercial - owner occupied | 608,773 | 36,052 | 2,373 | 647,198 | 648,403 | 26,463 | 3,180 | 678,046 | ||||||||||||||||||||||
Construction and land development | 354,835 | 3,984 | 65 | 358,884 | 390,532 | 5,774 | 64 | 396,370 | ||||||||||||||||||||||
Residential | 409,032 | 1,996 | 5,703 | 416,731 | 387,610 | 3,011 | 5,207 | 395,828 | ||||||||||||||||||||||
Consumer and other | 117,451 | 5 | — | 117,456 | 129,059 | — | — | 129,059 | ||||||||||||||||||||||
Total | $ | 4,605,414 | $ | 216,533 | $ | 72,627 | $ | 4,894,574 | $ | 4,766,655 | $ | 197,420 | $ | 82,107 | $ | 5,046,182 |
December 31, 2018 | |||||||||||||||
(in thousands) | Pass (1-6) | Watch (7) | Classified (8 & 9) | Total | |||||||||||
Commercial and industrial | $ | 1,927,782 | $ | 146,033 | $ | 47,193 | $ | 2,121,008 | |||||||
Real estate: | |||||||||||||||
Commercial - investor owned | 823,128 | 15,083 | 5,517 | 843,728 | |||||||||||
Commercial - owner occupied | 563,003 | 31,834 | 9,661 | 604,498 | |||||||||||
Construction and land development | 318,451 | 11,580 | 66 | 330,097 | |||||||||||
Residential | 287,802 | 4,232 | 6,910 | 298,944 | |||||||||||
Consumer and other | 105,007 | 6 | 312 | 105,325 | |||||||||||
Total | $ | 4,025,173 | $ | 208,768 | $ | 69,659 | $ | 4,303,600 |
December 31, 2018 | |||||||||||||||
(in thousands) | Pass (1-6) | Watch (7) | Classified (8 & 9) | Total | |||||||||||
Commercial and industrial | $ | 1,927,782 | $ | 146,033 | $ | 47,193 | $ | 2,121,008 | |||||||
Real estate: | |||||||||||||||
Commercial - investor owned | 823,128 | 15,083 | 5,517 | 843,728 | |||||||||||
Commercial - owner occupied | 563,003 | 31,834 | 9,661 | 604,498 | |||||||||||
Construction and land development | 318,451 | 11,580 | 66 | 330,097 | |||||||||||
Residential | 287,802 | 4,232 | 6,910 | 298,944 | |||||||||||
Consumer and other | 105,007 | 6 | 312 | 105,325 | |||||||||||
Total | $ | 4,025,173 | $ | 208,768 | $ | 69,659 | $ | 4,303,600 |
June 30, 2019 | December 31, 2018 | ||||||||
(in thousands) | Weighted- Average Risk Rating1 | Recorded Investment PCI Loans | Weighted- Average Risk Rating1 | Recorded Investment PCI Loans | |||||
Commercial and industrial | 5.80 | $ | 16,909 | 6.09 | $ | 2,159 | |||
Real estate: | |||||||||
Commercial - investor owned | 6.94 | 41,988 | 7.19 | 23,939 | |||||
Commercial - owner occupied | 6.68 | 22,616 | 7.39 | 9,669 | |||||
Construction and land development | 5.74 | 8,187 | 6.03 | 4,548 | |||||
Residential | 6.29 | 13,372 | 6.40 | 6,082 | |||||
Total real estate loans | 86,163 | 44,238 | |||||||
Consumer and other | 5.11 | 243 | 2.18 | 4 | |||||
Total | $ | 103,315 | $ | 46,401 | |||||
1Risk ratings are based on the borrower’s contractual obligation, which is not reflective of the purchase discount. |
March 31, 2019 | December 31, 2018 | ||||||||
(in thousands) | Weighted- Average Risk Rating1 | Recorded Investment PCI Loans | Weighted- Average Risk Rating1 | Recorded Investment PCI Loans | |||||
Commercial and industrial | 4.75 | $ | 17,613 | 6.09 | $ | 2,159 | |||
Real estate: | |||||||||
Commercial - investor owned | 6.68 | 42,948 | 7.19 | 23,939 | |||||
Commercial - owner occupied | 6.81 | 35,026 | 7.39 | 9,669 | |||||
Construction and land development | 6.16 | 10,481 | 6.03 | 4,548 | |||||
Residential | 6.20 | 16,171 | 6.40 | 6,082 | |||||
Total real estate loans | 122,239 | 46,397 | |||||||
Consumer and other | 3.58 | 264 | 2.18 | 4 | |||||
Total | $ | 122,503 | $ | 46,401 | |||||
1Risk ratings are based on the borrower’s contractual obligation, which is not reflective of the purchase discount. |
March 31, 2019 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||||||||||||||||
Commercial and industrial | $ | 945 | $ | — | $ | 945 | $ | 16,668 | $ | 17,613 | $ | 1,525 | $ | — | $ | 1,525 | $ | 15,384 | $ | 16,909 | ||||||||||||||||||
Real estate: | ||||||||||||||||||||||||||||||||||||||
Commercial - investor owned | 1,580 | 1,868 | 3,448 | 39,500 | 42,948 | 1,317 | 1,917 | 3,234 | 38,754 | 41,988 | ||||||||||||||||||||||||||||
Commercial - owner occupied | 751 | 6,358 | 7,109 | 27,917 | 35,026 | — | 1,381 | 1,381 | 21,235 | 22,616 | ||||||||||||||||||||||||||||
Construction and land development | 152 | 258 | 410 | 10,071 | 10,481 | 70 | 154 | 224 | 7,963 | 8,187 | ||||||||||||||||||||||||||||
Residential | 1,648 | 849 | 2,497 | 13,674 | 16,171 | 226 | 235 | 461 | 12,911 | 13,372 | ||||||||||||||||||||||||||||
Consumer and other | — | — | — | 264 | 264 | — | — | — | 243 | 243 | ||||||||||||||||||||||||||||
Total | $ | 5,076 | $ | 9,333 | $ | 14,409 | $ | 108,094 | $ | 122,503 | $ | 3,138 | $ | 3,687 | $ | 6,825 | $ | 96,490 | $ | 103,315 |
December 31, 2018 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | 2,159 | $ | 2,159 | |||||||||
Real estate: | |||||||||||||||||||
Commercial - investor owned | 416 | 88 | 504 | 23,435 | 23,939 | ||||||||||||||
Commercial - owner occupied | 591 | 6,279 | 6,870 | 2,799 | 9,669 | ||||||||||||||
Construction and land development | — | — | — | 4,548 | 4,548 | ||||||||||||||
Residential | 146 | 37 | 183 | 5,899 | 6,082 | ||||||||||||||
Consumer and other | — | — | — | 4 | 4 | ||||||||||||||
Total | $ | 1,153 | $ | 6,404 | $ | 7,557 | $ | 38,844 | $ | 46,401 |
December 31, 2018 | |||||||||||||||||||
(in thousands) | 30-89 Days Past Due | 90 or More Days Past Due | Total Past Due | Current | Total | ||||||||||||||
Commercial and industrial | $ | — | $ | — | $ | — | $ | 2,159 | $ | 2,159 | |||||||||
Real estate: | |||||||||||||||||||
Commercial - investor owned | 416 | 88 | 504 | 23,435 | 23,939 | ||||||||||||||
Commercial - owner occupied | 591 | 6,279 | 6,870 | 2,799 | 9,669 | ||||||||||||||
Construction and land development | — | — | — | 4,548 | 4,548 | ||||||||||||||
Residential | 146 | 37 | 183 | 5,899 | 6,082 | ||||||||||||||
Consumer and other | — | — | — | 4 | 4 | ||||||||||||||
Total | $ | 1,153 | $ | 6,404 | $ | 7,557 | $ | 38,844 | $ | 46,401 |
(in thousands) | Contractual Cashflows | Non-accretable Difference | Accretable Yield | Carrying Amount | |||||||||||
Balance December 31, 2018 | $ | 73,157 | $ | 15,299 | $ | 12,638 | $ | 45,220 | |||||||
Acquisitions | 111,963 | 13,542 | 30,238 | 68,183 | |||||||||||
Principal reductions and interest payments | (19,285 | ) | — | — | (19,285 | ) | |||||||||
Accretion of loan discount | — | — | (4,645 | ) | 4,645 | ||||||||||
Changes in contractual and expected cash flows due to remeasurement | 7,725 | (2,057 | ) | 627 | 9,155 | ||||||||||
Reductions due to disposals | (8,709 | ) | (3,224 | ) | 5 | (5,490 | ) | ||||||||
Balance June 30, 2019 | $ | 164,851 | $ | 23,560 | $ | 38,863 | $ | 102,428 | |||||||
Balance December 31, 2017 | $ | 112,710 | $ | 29,005 | $ | 13,964 | $ | 69,741 | |||||||
Principal reductions and interest payments | (22,667 | ) | — | — | (22,667 | ) | |||||||||
Accretion of loan discount | — | — | (3,400 | ) | 3,400 | ||||||||||
Changes in contractual and expected cash flows due to remeasurement | 3,281 | (8,771 | ) | 4,124 | 7,928 | ||||||||||
Balance June 30, 2018 | $ | 93,324 | $ | 20,234 | $ | 14,688 | $ | 58,402 |
(in thousands) | Contractual Cashflows | Non-accretable Difference | Accretable Yield | Carrying Amount | |||||||||||
Balance December 31, 2018 | $ | 73,157 | $ | 15,299 | $ | 12,638 | $ | 45,220 | |||||||
Acquisitions | 120,713 | 11,531 | 28,520 | 80,662 | |||||||||||
Principal reductions and interest payments | (10,033 | ) | — | — | (10,033 | ) | |||||||||
Accretion of loan discount | — | — | (1,603 | ) | 1,603 | ||||||||||
Changes in contractual and expected cash flows due to remeasurement | 4,081 | (6 | ) | 94 | 3,993 | ||||||||||
Reductions due to disposals | (120 | ) | (28 | ) | — | (92 | ) | ||||||||
Balance March 31, 2019 | $ | 187,798 | $ | 26,796 | $ | 39,649 | $ | 121,353 | |||||||
Balance December 31, 2017 | $ | 112,710 | $ | 29,005 | $ | 13,962 | $ | 69,743 | |||||||
Principal reductions and interest payments | (12,142 | ) | — | — | (12,142 | ) | |||||||||
Accretion of loan discount | — | — | (1,755 | ) | 1,755 | ||||||||||
Changes in contractual and expected cash flows due to remeasurement | 2,863 | — | — | 2,863 | |||||||||||
Balance March 31, 2018 | $ | 103,431 | $ | 29,005 | $ | 12,207 | $ | 62,219 |
For the three months ended | |||
(in thousands) | March 31, 2019 | ||
Operating lease cost | $ | 806 | |
Short-term lease cost | 35 | ||
Less: sublease income | $ | (88 | ) |
Total lease cost | $ | 753 |
For the three months ended | For the six months ended | |||||
(in thousands) | June 30, 2019 | June 30, 2019 | ||||
Operating lease cost | $ | 807 | $ | 1,613 | ||
Short-term lease cost | 73 | 134 | ||||
Less: sublease income | $ | (184 | ) | $ | (272 | ) |
Total lease cost | $ | 696 | $ | 1,475 |
For the three months ended | |||
(in thousands) | March 31, 2019 | ||
Cash paid for amounts included in the measurement of lease liabilities | |||
Payments on operating leases | $ | 861 |
As of | |||
(in thousands) | June 30, 2019 | ||
Operating lease right-of-use assets | $ | 14,164 | |
Operating lease liabilities | 14,815 | ||
Operating leases | |||
Weighted average remaining lease term | 5 years | ||
Weighted average discount rate | 3.0 | % |
As of | |||
(in thousands) | March 31, 2019 | ||
Operating lease right-of-use assets | $ | 14,858 | |
Operating lease liabilities | 15,462 | ||
Operating leases | |||
Weighted average remaining lease term | 6 years | ||
Weighted average discount rate | 3.0 | % |
(in thousands) | |||
Year | Amount | ||
2019 | $ | 1,618 | |
2020 | 3,246 | ||
2021 | 3,272 | ||
2022 | 2,709 | ||
2023 | 2,106 | ||
Thereafter | 3,143 | ||
Total operating lease liabilities, payments | 16,094 | ||
Less: present value adjustment | 1,279 | ||
Operating lease liabilities | $ | 14,815 |
(in thousands) | |||
Year | Amount | ||
2019 | $ | 2,378 | |
2020 | 3,246 | ||
2021 | 3,272 | ||
2022 | 2,709 | ||
2023 | 2,106 | ||
Thereafter | 3,143 | ||
Total operating lease liabilities, payments | 16,854 | ||
Less: present value adjustment | 1,392 | ||
Operating lease liabilities | $ | 15,462 |
(in thousands) | June 30, 2019 | December 31, 2018 | |||||
Commitments to extend credit | $ | 1,393,782 | $ | 1,344,687 | |||
Letters of credit | 52,060 | 44,665 |
(in thousands) | March 31, 2019 | December 31, 2018 | |||||
Commitments to extend credit | $ | 1,411,819 | $ | 1,344,687 | |||
Letters of credit | 53,645 | 44,665 |
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||||||||
As of March 31, 2019 | As of December 31, 2018 | As of March 31, 2019 | As of December 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||
(in thousands) | Notional Amount | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Notional Amount | Balance Sheet Location | Fair Value | Notional Amount | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||||
Derivatives designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | Derivatives Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 61,962 | Other Assets | $ | — | Other Assets | $ | — | Other Liabilities | $ | 1,264 | Other Liabilities | $ | — | $ | 61,962 | Other Assets | $ | — | $ | — | Other Assets | $ | — | Other Liabilities | $ | 2,939 | Other Liabilities | $ | — | |||||||||||||
Total | $ | — | $ | — | $ | 1,264 | $ | — | $ | — | $ | — | $ | 2,939 | $ | — | |||||||||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||||||||||||||||||||||
Derivatives not Designated as Hedging Instruments | Derivatives not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||||||||||||
Interest rate swap | $ | 523,017 | Other Assets | $ | 5,277 | Other Assets | $ | 2,217 | Other Liabilities | $ | 5,277 | Other Liabilities | $ | 2,217 | $ | 609,454 | Other Assets | $ | 10,511 | $ | 494,567 | Other Assets | $ | 2,217 | Other Liabilities | $ | 11,386 | Other Liabilities | $ | 2,217 | |||||||||||||
Foreign exchange forward contracts | 1,426 | Other Assets | 1,426 | Other Assets | 806 | Other Liabilities | 1,426 | Other Liabilities | 806 | 613 | Other Assets | 613 | 806 | Other Assets | 806 | Other Liabilities | 613 | Other Liabilities | 806 | ||||||||||||||||||||||||
Total | $ | 6,703 | $ | 3,023 | $ | 6,703 | $ | 3,023 | $ | 11,124 | $ | 3,023 | $ | 11,999 | $ | 3,023 |
Derivatives in Subtopic 815-20 Hedging Relationships | Amount of Gain or (Loss) Recognized in OCI on Derivative | Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | |||||||||||||||||
Amount of Gain or (Loss) Recognized in OCI on Derivative | Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | ||||||||||||||||||
(in thousands) | March 31, 2019 | March 31, 2019 | Three months ended June 30, 2019 | Three months ended June 30, 2019 | ||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||||||||||||
Interest rate swap | $ | (1,264 | ) | Interest Expense | $ | — | $ | (1,675 | ) | Interest Expense | $ | (6 | ) | |||||||
Total | $ | (1,264 | ) | $ | — | $ | (1,675 | ) | $ | (6 | ) |
Amount of Gain or (Loss) Recognized in OCI on Derivative | Location of Gain or (Loss) Recognized from Accumulated Other Comprehensive Income into Income | Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income | ||||||||
(in thousands) | Six months ended June 30, 2019 | Six months ended June 30, 2019 | ||||||||
Derivatives in Cash Flow Hedging Relationships | ||||||||||
Interest rate swap | $ | (2,939 | ) | Interest Expense | $ | (6 | ) | |||
Total | $ | (2,939 | ) | $ | (6 | ) |
As of June 30, 2019 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
(in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Fair Value Collateral Posted | Net Amount | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate swap | $ | 10,511 | $ | — | $ | 10,511 | $ | 97 | $ | — | $ | 10,413 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swap | $ | 14,325 | $ | — | $ | 14,325 | $ | 97 | $ | 13,982 | $ | 246 | |||||||||||
Securities sold under agreements to repurchase | 160,961 | — | 160,961 | — | 160,961 | — | |||||||||||||||||
As of December 31, 2018 | |||||||||||||||||||||||
Gross Amounts Not Offset in the Statement of Financial Position | |||||||||||||||||||||||
(in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Fair Value Collateral Posted | Net Amount | |||||||||||||||||
Assets: | |||||||||||||||||||||||
Interest rate swap | $ | 2,217 | $ | — | $ | 2,217 | $ | — | $ | — | $ | 2,217 | |||||||||||
Liabilities: | |||||||||||||||||||||||
Interest rate swap | $ | 2,217 | $ | — | $ | 2,217 | $ | — | $ | — | $ | 2,217 | |||||||||||
Securities sold under agreements to repurchase | 221,450 | — | 221,450 | — | 221,450 | — |
As of March 31, 2019 | |||||||||||||||||||||||
Assets | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
(in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Fair Value Collateral Posted | Net Amount | |||||||||||||||||
Interest rate swap | $ | 5,277 | $ | — | $ | 5,277 | $ | 657 | $ | — | $ | 4,620 | |||||||||||
Liabilities | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
(in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities presented in the Statement of Financial Position | Financial Instruments | Fair Value Collateral Posted | Net Amount | |||||||||||||||||
Interest rate swap | $ | 6,541 | $ | — | $ | 6,541 | $ | 657 | $ | 5,216 | $ | 668 | |||||||||||
Securities sold under agreements to repurchase | 172,171 | — | 172,171 | — | 172,171 | — | |||||||||||||||||
As of December 31, 2018 | |||||||||||||||||||||||
Assets | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
(in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Assets presented in the Statement of Financial Position | Financial Instruments | Fair Value Collateral Posted | Net Amount | |||||||||||||||||
Interest rate swap | $ | 2,217 | $ | — | $ | 2,217 | $ | — | $ | — | $ | 2,217 | |||||||||||
Liabilities | Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||||||||
(in thousands) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Financial Position | Net Amounts of Liabilities presented in the Statement of Financial Position | Financial Instruments | Fair Value Collateral Posted | Net Amount | |||||||||||||||||
Interest rate swap | $ | 2,217 | $ | — | $ | 2,217 | $ | — | $ | — | $ | 2,217 | |||||||||||
Securities sold under agreements to repurchase | 221,450 | — | 221,450 | — | 221,450 | — |
June 30, 2019 | |||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||
Assets | |||||||||||||||
Securities available for sale | |||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | — | $ | 50,151 | $ | — | $ | 50,151 | |||||||
Obligations of states and political subdivisions | — | 118,696 | — | 118,696 | |||||||||||
Agency mortgage-backed securities | — | 924,047 | — | 924,047 | |||||||||||
U.S. Treasury bills | — | 10,205 | — | 10,205 | |||||||||||
Corporate debt securities | — | 119,953 | 119,953 | ||||||||||||
Total securities available for sale | — | 1,223,052 | — | 1,223,052 | |||||||||||
Other investments | 145 | — | — | 145 | |||||||||||
Derivatives | — | 11,124 | — | 11,124 | |||||||||||
Total assets | $ | 145 | $ | 1,234,176 | $ | — | $ | 1,234,321 | |||||||
Liabilities | |||||||||||||||
Derivatives | $ | — | $ | 14,938 | $ | — | $ | 14,938 | |||||||
Total liabilities | $ | — | $ | 14,938 | $ | — | $ | 14,938 |
March 31, 2019 | |||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||
Assets | |||||||||||||||
Securities available for sale | |||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | — | $ | 53,781 | $ | — | $ | 53,781 | |||||||
Obligations of states and political subdivisions | — | 116,985 | — | 116,985 | |||||||||||
Agency mortgage-backed securities | — | 897,544 | — | 897,544 | |||||||||||
U.S. Treasury bills | — | 10,077 | — | 10,077 | |||||||||||
Corporate debt securities | — | 20,798 | 20,798 | ||||||||||||
Total securities available for sale | — | 1,099,185 | — | 1,099,185 | |||||||||||
Other investments | 145 | — | — | 145 | |||||||||||
Derivatives | — | 6,703 | — | 6,703 | |||||||||||
Total assets | $ | 145 | $ | 1,105,888 | $ | — | $ | 1,106,033 | |||||||
Liabilities | |||||||||||||||
Derivatives | $ | — | $ | 7,967 | $ | — | $ | 7,967 | |||||||
Total liabilities | $ | — | $ | 7,967 | $ | — | $ | 7,967 |
December 31, 2018 | |||||||||||||||
(in thousands) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total Fair Value | |||||||||||
Assets | |||||||||||||||
Securities available for sale | |||||||||||||||
Obligations of U.S. Government-sponsored enterprises | $ | — | $ | 98,498 | $ | — | $ | 98,498 | |||||||
Obligations of states and political subdivisions | — | 26,810 | — | 26,810 | |||||||||||
Agency mortgage-backed securities | — | 586,136 | — | 586,136 | |||||||||||
U.S. Treasury bills | — | 9,925 | — | 9,925 | |||||||||||
Total securities available for sale | — | 721,369 | — | 721,369 | |||||||||||
Other investments | 121 | — | — | 121 | |||||||||||
Derivatives | — | 3,023 | — | 3,023 | |||||||||||
Total assets | $ | 121 | $ | 724,392 | $ | — | $ | 724,513 | |||||||
Liabilities | |||||||||||||||
Derivatives | $ | — | $ | 3,023 | $ | — | $ | 3,023 | |||||||
Total liabilities | $ | — | $ | 3,023 | $ | — | $ | 3,023 |
State tax credits held for sale | State tax credits held for sale | |||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Beginning balance | $ | — | $ | 400 | $ | — | $ | 350 | $ | — | $ | 400 | ||||||||||
Total gains: | ||||||||||||||||||||||
Included in earnings | — | 3 | — | 3 | — | 6 | ||||||||||||||||
Purchases, sales, issuances and settlements: | ||||||||||||||||||||||
Sales | — | (53 | ) | — | (54 | ) | — | (107 | ) | |||||||||||||
Ending balance | $ | — | $ | 350 | $ | — | $ | 299 | $ | — | $ | 299 | ||||||||||
Change in unrealized gains (losses) relating to assets still held at the reporting date | $ | — | $ | (13 | ) | $ | — | $ | (13 | ) | $ | — | $ | (26 | ) |
(1) | (1) | (1) | (1) | ||||||||||||||||||||
(in thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total losses for the three months ended June 30, 2019 | Total losses for the six months ended June 30, 2019 | |||||||||||||||||
Impaired loans | $ | 1,054 | $ | — | $ | — | $ | 1,054 | $ | 1,199 | $ | 1,199 | |||||||||||
Total | $ | 1,054 | $ | — | $ | — | $ | 1,054 | $ | 1,199 | $ | 1,199 | |||||||||||
(1) The amounts represent only balances measured at fair value during the period and still held as of the reporting date. |
June 30, 2019 | December 31, 2018 | ||||||||||||||
(in thousands) | Carrying Amount | Estimated fair value | Carrying Amount | Estimated fair value | |||||||||||
Balance sheet assets | |||||||||||||||
Cash and due from banks | $ | 106,835 | $ | 106,835 | $ | 91,511 | $ | 91,511 | |||||||
Federal funds sold | 2,744 | 2,744 | 1,714 | 1,714 | |||||||||||
Interest-bearing deposits | 82,571 | 82,571 | 106,512 | 106,512 | |||||||||||
Securities available for sale | 1,223,052 | 1,223,052 | 721,369 | 721,369 | |||||||||||
Securities held to maturity | 62,725 | 63,061 | 65,679 | 63,934 | |||||||||||
Other investments, at cost | 42,990 | 42,990 | 26,654 | 26,654 | |||||||||||
Loans held for sale | 1,437 | 1,437 | 392 | 392 | |||||||||||
Derivative financial instruments | 11,124 | 11,124 | 3,023 | 3,023 | |||||||||||
Portfolio loans, net | 5,105,675 | 5,049,215 | 4,306,525 | 4,253,239 | |||||||||||
State tax credits, held for sale | 37,294 | 39,037 | 37,587 | 39,169 | |||||||||||
Accrued interest receivable | 27,008 | 27,008 | 16,069 | 16,069 | |||||||||||
Balance sheet liabilities | |||||||||||||||
Deposits | 5,559,338 | 5,536,456 | 4,587,985 | 4,583,047 | |||||||||||
Subordinated debentures and notes | 141,100 | 132,301 | 118,156 | 106,316 | |||||||||||
Federal Home Loan Bank advances | 389,446 | 389,471 | 70,000 | 70,000 | |||||||||||
Other borrowings | 198,104 | 197,988 | 223,450 | 223,260 | |||||||||||
Derivative financial instruments | 14,938 | 14,938 | 3,023 | 3,023 | |||||||||||
Accrued interest payable | 2,701 | 2,701 | 1,977 | 1,977 |
March 31, 2019 | December 31, 2018 | ||||||||||||||
(in thousands) | Carrying Amount | Estimated fair value | Carrying Amount | Estimated fair value | |||||||||||
Balance sheet assets | |||||||||||||||
Cash and due from banks | $ | 85,578 | $ | 85,578 | $ | 91,511 | $ | 91,511 | |||||||
Federal funds sold | 1,934 | 1,934 | 1,714 | 1,714 | |||||||||||
Interest-bearing deposits | 137,455 | 137,455 | 106,512 | 106,512 | |||||||||||
Securities available for sale | 1,099,185 | 1,099,185 | 721,369 | 721,369 | |||||||||||
Securities held to maturity | 64,368 | 64,147 | 65,679 | 63,934 | |||||||||||
Other investments, at cost | 34,860 | 34,860 | 26,654 | 26,654 | |||||||||||
Loans held for sale | 654 | 654 | 392 | 392 | |||||||||||
Derivative financial instruments | 6,703 | 6,703 | 3,023 | 3,023 | |||||||||||
Portfolio loans, net | 4,973,982 | 4,920,761 | 4,306,525 | 4,253,239 | |||||||||||
State tax credits, held for sale | 37,215 | 39,355 | 37,587 | 39,169 | |||||||||||
Accrued interest receivable | 26,276 | 26,276 | 16,069 | 16,069 | |||||||||||
Balance sheet liabilities | |||||||||||||||
Deposits | 5,537,113 | 5,532,053 | 4,587,985 | 4,583,047 | |||||||||||
Subordinated debentures and notes | 140,668 | 131,634 | 118,156 | 106,316 | |||||||||||
Federal Home Loan Bank advances | 180,466 | 180,463 | 70,000 | 70,000 | |||||||||||
Other borrowings | 212,171 | 212,026 | 223,450 | 223,260 | |||||||||||
Derivative financial instruments | 7,967 | 7,967 | 3,023 | 3,023 | |||||||||||
Accrued interest payable | 3,231 | 3,231 | 1,977 | 1,977 |
Estimated Fair Value Measurement at Reporting Date Using | Balance at June 30, 2019 | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial Assets: | |||||||||||||||
Securities held to maturity | $ | — | $ | 63,031 | $ | — | $ | 63,031 | |||||||
Portfolio loans, net | — | — | 5,049,215 | 5,049,215 | |||||||||||
State tax credits, held for sale | — | — | 39,037 | 39,037 | |||||||||||
Financial Liabilities: | |||||||||||||||
Deposits | 4,736,768 | — | 799,688 | 5,536,456 | |||||||||||
Subordinated debentures and notes | — | 132,301 | — | 132,301 | |||||||||||
Federal Home Loan Bank advances | — | 389,471 | — | 389,471 | |||||||||||
Other borrowings | — | 197,988 | — | 197,988 | |||||||||||
Estimated Fair Value Measurement at Reporting Date Using | Balance at December 31, 2018 | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial Assets: | |||||||||||||||
Securities held to maturity | $ | — | $ | 63,934 | $ | — | $ | 63,934 | |||||||
Portfolio loans, net | — | — | 4,253,239 | 4,253,239 | |||||||||||
State tax credits, held for sale | — | — | 39,169 | 39,169 | |||||||||||
Financial Liabilities: | |||||||||||||||
Deposits | 3,903,556 | — | 679,491 | 4,583,047 | |||||||||||
Subordinated debentures and notes | — | 106,316 | — | 106,316 | |||||||||||
Federal Home Loan Bank advances | — | 70,000 | — | 70,000 | |||||||||||
Other borrowings | — | 223,260 | — | 223,260 |
Estimated Fair Value Measurement at Reporting Date Using | Balance at March 31, 2019 | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial Assets: | |||||||||||||||
Securities held to maturity | $ | — | $ | 64,147 | $ | — | $ | 64,147 | |||||||
Portfolio loans, net | — | — | 4,920,761 | 4,920,761 | |||||||||||
State tax credits, held for sale | — | — | 39,355 | 39,355 | |||||||||||
Financial Liabilities: | |||||||||||||||
Deposits | 4,732,365 | — | 799,688 | 5,532,053 | |||||||||||
Subordinated debentures and notes | — | 131,634 | — | 131,634 | |||||||||||
Federal Home Loan Bank advances | — | 180,463 | — | 180,463 | |||||||||||
Other borrowings | — | 212,026 | — | 212,026 | |||||||||||
Estimated Fair Value Measurement at Reporting Date Using | Balance at December 31, 2018 | ||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||
Financial Assets: | |||||||||||||||
Securities held to maturity | $ | — | $ | 63,934 | $ | — | $ | 63,934 | |||||||
Portfolio loans, net | — | — | 4,253,239 | 4,253,239 | |||||||||||
State tax credits, held for sale | — | — | 39,169 | 39,169 | |||||||||||
Financial Liabilities: | |||||||||||||||
Deposits | 3,903,556 | — | 679,491 | 4,583,047 | |||||||||||
Subordinated debentures and notes | — | 106,316 | — | 106,316 | |||||||||||
Federal Home Loan Bank advances | — | 70,000 | — | 70,000 | |||||||||||
Other borrowings | — | 223,260 | — | 223,260 |
Six months ended | |||
(in thousands) | June 30, 2019 | ||
Gross core deposit intangible balance, beginning of period | $ | 20,574 | |
Additions | 23,066 | ||
Gross core deposit intangible, end of period | 43,640 | ||
Accumulated amortization | (14,439 | ) | |
Core deposit intangible, net, end of year | $ | 29,201 |
For the quarter ended | |||
(in thousands) | March 31, 2019 | ||
Gross core deposit intangible balance, beginning of period | $ | 20,574 | |
Additions | 23,333 | ||
Gross core deposit intangible, end of period | 43,907 | ||
Accumulated amortization | (12,859 | ) | |
Core deposit intangible, net, end of year | $ | 31,048 |
Year | Core Deposit Intangible | ||
2019 | $ | 3,125 | |
2020 | 5,608 | ||
2021 | 4,814 | ||
2022 | 4,085 | ||
2023 | 3,456 | ||
After 2023 | 8,113 | ||
$ | 29,201 |
Year | Core Deposit Intangible | ||
2019 | $ | 4,745 | |
2020 | 5,652 | ||
2021 | 4,854 | ||
2022 | 4,120 | ||
2023 | 3,486 | ||
After 2023 | 8,191 | ||
$ | 31,048 |
Amount | Maturity Date | Call Date | Interest Rate | ||||||||||
(in thousands) | June 30, 2019 | December 31, 2018 | |||||||||||
EFSC Clayco Statutory Trust I | $ | 3,196 | $ | 3,196 | December 17, 2033 | December 17, 2008 | Floats @ 3MO LIBOR + 2.85% | ||||||
EFSC Capital Trust II | 5,155 | 5,155 | June 17, 2034 | June 17, 2009 | Floats @ 3MO LIBOR + 2.65% | ||||||||
EFSC Statutory Trust III | 11,341 | 11,341 | December 15, 2034 | December 15, 2009 | Floats @ 3MO LIBOR + 1.97% | ||||||||
EFSC Clayco Statutory Trust II | 4,124 | 4,124 | September 15, 2035 | September 15, 2010 | Floats @ 3MO LIBOR + 1.83% | ||||||||
EFSC Statutory Trust IV | 10,310 | 10,310 | December 15, 2035 | December 15, 2010 | Floats @ 3MO LIBOR + 1.44% | ||||||||
EFSC Statutory Trust V | 4,124 | 4,124 | September 15, 2036 | September 15, 2011 | Floats @ 3MO LIBOR + 1.60% | ||||||||
EFSC Capital Trust VI | 14,433 | 14,433 | March 30, 2037 | March 30, 2012 | Floats @ 3MO LIBOR + 1.60% | ||||||||
EFSC Capital Trust VII | 4,124 | 4,124 | December 15, 2037 | December 15, 2012 | Floats @ 3MO LIBOR + 2.25% | ||||||||
JEFFCO Stat Trust I (1) | 7,953 | 8,019 | February 22, 2031 | February 22, 2011 | Fixed @ 10.20% | ||||||||
JEFFCO Stat Trust II (1) | 4,362 | 4,335 | March 17, 2034 | March 17, 2009 | Floats @ 3MO LIBOR + 2.75% | ||||||||
Trinity Capital Trust III (1) | 5,172 | — | September 8, 2034 | September 8, 2009 | Floats @ 3MO LIBOR + 2.70% | ||||||||
Trinity Capital Trust IV (1) | 10,284 | — | November 23, 2035 | August 23, 2010 | Fixed @ 6.88% | ||||||||
Trinity Capital Trust V (1) | 7,462 | — | December 15, 2036 | September 15, 2011 | Floats @ 3MO LIBOR + 1.65% | ||||||||
Total junior subordinated debentures | 92,040 | 69,161 | |||||||||||
Fixed-to-floating rate subordinated notes | 50,000 | 50,000 | November 1, 2026 | November 1, 2021 | Fixed @ 4.75% until November 1, 2021, then floats @ 3MO LIBOR + 3.387% | ||||||||
Debt issuance costs | (940 | ) | (1,005 | ) | |||||||||
Total fixed-to-floating rate subordinated notes | 49,060 | 48,995 | |||||||||||
Total subordinated debentures and notes | $ | 141,100 | $ | 118,156 | |||||||||
(1) Purchase accounting adjustments are reflected in the balance and also impact the effective interest rate. |
Amount | Maturity Date | Call Date | Interest Rate | ||||||||||
(in thousands) | March 31, 2019 | December 31, 2018 | |||||||||||
EFSC Clayco Statutory Trust I | $ | 3,196 | $ | 3,196 | December 17, 2033 | December 17, 2008 | Floats @ 3MO LIBOR + 2.85% | ||||||
EFSC Capital Trust II | 5,155 | 5,155 | June 17, 2034 | June 17, 2009 | Floats @ 3MO LIBOR + 2.65% | ||||||||
EFSC Statutory Trust III | 11,341 | 11,341 | December 15, 2034 | December 15, 2009 | Floats @ 3MO LIBOR + 1.97% | ||||||||
EFSC Clayco Statutory Trust II | 4,124 | 4,124 | September 15, 2035 | September 15, 2010 | Floats @ 3MO LIBOR + 1.83% | ||||||||
EFSC Statutory Trust IV | 10,310 | 10,310 | December 15, 2035 | December 15, 2010 | Floats @ 3MO LIBOR + 1.44% | ||||||||
EFSC Statutory Trust V | 4,124 | 4,124 | September 15, 2036 | September 15, 2011 | Floats @ 3MO LIBOR + 1.60% | ||||||||
EFSC Capital Trust VI | 14,433 | 14,433 | March 30, 2037 | March 30, 2012 | Floats @ 3MO LIBOR + 1.60% | ||||||||
EFSC Capital Trust VII | 4,124 | 4,124 | December 15, 2037 | December 15, 2012 | Floats @ 3MO LIBOR + 2.25% | ||||||||
JEFFCO Stat Trust I (1) | 7,986 | 8,019 | February 22, 2031 | February 22, 2011 | Fixed @ 10.20% | ||||||||
JEFFCO Stat Trust II (1) | 4,348 | 4,335 | March 17, 2034 | March 17, 2009 | Floats @ 3MO LIBOR + 2.75% | ||||||||
Trinity Capital Trust III (1) | 5,156 | — | September 8, 2034 | September 8, 2009 | Floats @ 3MO LIBOR + 2.70% | ||||||||
Trinity Capital Trust IV (1) | 9,921 | — | November 23, 2035 | August 23, 2010 | Fixed @ 6.88% | ||||||||
Trinity Capital Trust V (1) | 7,422 | — | December 15, 2036 | September 15, 2011 | Floats @ 3MO LIBOR + 1.65% | ||||||||
Total junior subordinated debentures | 91,640 | 69,161 | |||||||||||
Fixed-to-floating rate subordinated notes | 50,000 | 50,000 | November 1, 2026 | November 1, 2021 | Fixed @ 4.75% until November 1, 2021, then floats @ 3MO LIBOR + 3.387% | ||||||||
Debt issuance costs | (972 | ) | (1,005 | ) | |||||||||
Total fixed-to-floating rate subordinated notes | 49,028 | 48,995 | |||||||||||
Total subordinated debentures and notes | $ | 140,668 | $ | 118,156 | |||||||||
(1) Purchase accounting adjustments are reflected in the balance and also impact the effective interest rate. |
(in thousands) | ||||||
Assets acquired: | ||||||
Cash and cash equivalents | $ | 13,899 | $ | 13,899 | ||
Interest-earning deposits greater than 90 days | 100 | 100 | ||||
Securities | 428,301 | 428,096 | ||||
Loans, net | 683,564 | |||||
Loans | 684,314 | |||||
Other real estate | 4,963 | 4,512 | ||||
Other investments | 6,673 | 6,673 | ||||
Fixed assets, net | 28,086 | |||||
Fixed assets | 27,286 | |||||
Accrued interest receivable | 3,997 | 3,997 | ||||
Intangible assets | 23,333 | 23,066 | ||||
Deferred tax assets | 10,710 | 9,651 | ||||
Other assets | 32,098 | 30,037 | ||||
Total assets acquired | $ | 1,235,724 | $ | 1,231,631 | ||
Liabilities assumed: | ||||||
Deposits | $ | 1,081,187 | $ | 1,081,187 | ||
Subordinated debentures | 22,481 | 22,834 | ||||
FHLB advances | 6,971 | 6,971 | ||||
Accrued interest payable | 370 | 370 | ||||
Other liabilities | 5,842 | 5,015 | ||||
Total liabilities assumed | $ | 1,116,851 | $ | 1,116,377 | ||
Net assets acquired | $ | 118,873 | $ | 115,254 | ||
Consideration paid: | ||||||
Cash | $ | 37,276 | $ | 37,275 | ||
Common stock | 171,884 | 171,885 | ||||
Total consideration paid | $ | 209,160 | $ | 209,160 | ||
Goodwill | $ | 90,287 | $ | 93,906 |
(in thousands, except per share data) | At or for the three months ended | At or for the Three Months ended | For the Six Months ended | |||||||||||||||||||||||
March 31, 2019 | December 31, 2018 | March 31, 2018 | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||
EARNINGS | ||||||||||||||||||||||||||
Total interest income | $ | 67,617 | $ | 64,002 | $ | 55,164 | $ | 79,201 | $ | 57,879 | $ | 146,818 | $ | 113,043 | ||||||||||||
Total interest expense | 15,274 | 13,409 | 8,993 | 17,486 | 10,831 | 32,760 | 19,824 | |||||||||||||||||||
Net interest income | 52,343 | 50,593 | 46,171 | 61,715 | 47,048 | 114,058 | 93,219 | |||||||||||||||||||
Provision for portfolio loans | 1,476 | 2,120 | 1,871 | 1,722 | 390 | 3,198 | 2,261 | |||||||||||||||||||
Net interest income after provision for loan losses | 50,867 | 48,473 | 44,300 | 59,993 | 46,658 | 110,860 | 90,958 | |||||||||||||||||||
Total noninterest income | 9,230 | 10,702 | 9,542 | 11,964 | 9,693 | 21,194 | 19,235 | |||||||||||||||||||
Total noninterest expense | 39,838 | 30,747 | 29,143 | 49,054 | 29,219 | 88,892 | 58,362 | |||||||||||||||||||
Income before income tax expense | 20,259 | 28,428 | 24,699 | 22,903 | 27,132 | 43,162 | 51,831 | |||||||||||||||||||
Income tax expense | 4,103 | 4,899 | 3,778 | 4,479 | 4,881 | 8,582 | 8,659 | |||||||||||||||||||
Net income | $ | 16,156 | $ | 23,529 | $ | 20,921 | $ | 18,424 | $ | 22,251 | $ | 34,580 | $ | 43,172 | ||||||||||||
Basic earnings per share | $ | 0.68 | $ | 1.02 | $ | 0.91 | $ | 0.69 | $ | 0.96 | $ | 1.36 | $ | 1.87 | ||||||||||||
Diluted earnings per share | 0.67 | 1.02 | 0.90 | 0.68 | 0.95 | 1.36 | 1.85 | |||||||||||||||||||
Return on average assets | 1.10 | % | 1.69 | % | 1.59 | % | 1.05 | % | 1.65 | % | 1.07 | % | 1.62 | % | ||||||||||||
Return on average common equity | 9.89 | 15.61 | 15.31 | 9.09 | 15.70 | 9.45 | % | 15.51 | % | |||||||||||||||||
Return on average tangible common equity1 | 12.93 | 19.79 | 19.92 | 12.92 | 20.23 | 12.93 | % | 20.08 | % | |||||||||||||||||
Net interest margin (tax equivalent) | 3.87 | 3.94 | 3.80 | 3.86 | 3.77 | 3.87 | % | 3.79 | % | |||||||||||||||||
Core net interest margin1 | 3.79 | 3.77 | 3.74 | 3.80 | 3.75 | 3.80 | % | 3.74 | % | |||||||||||||||||
Efficiency ratio | 64.70 | 50.16 | 52.31 | 66.58 | 51.50 | 65.72 | % | 51.90 | % | |||||||||||||||||
Core efficiency ratio1 | 54.06 | 49.77 | 54.02 | 53.30 | 52.36 | 53.65 | % | 53.18 | % | |||||||||||||||||
Book value per common share | $ | 29.68 | $ | 26.47 | $ | 24.02 | $ | 30.68 | $ | 24.81 | ||||||||||||||||
Tangible book value per common share1 | 20.80 | 20.95 | 18.49 | 21.74 | 19.32 | |||||||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||||||||
Net charge-offs (recoveries) | $ | 1,826 | $ | 2,822 | $ | (226 | ) | |||||||||||||||||||
Net charge-offs | $ | 970 | $ | 641 | $ | 2,796 | $ | 415 | ||||||||||||||||||
Nonperforming loans | 9,607 | 16,745 | 15,582 | 19,842 | 14,801 | |||||||||||||||||||||
Classified assets | 79,750 | 70,126 | 77,195 | 91,715 | 74,001 | |||||||||||||||||||||
Nonperforming loans to total loans | 0.19 | % | 0.38 | % | 0.37 | % | 0.39 | % | 0.35 | % | ||||||||||||||||
Nonperforming assets to total assets | 0.24 | 0.30 | 0.30 | 0.42 | 0.28 | |||||||||||||||||||||
Allowance for loan losses to total loans | 0.86 | 1.00 | 1.07 | 0.85 | 1.04 | |||||||||||||||||||||
Net charge-offs (recoveries) to average loans (annualized) | 0.16 | 0.26 | (0.02 | ) | ||||||||||||||||||||||
Net charge-offs to average loans (annualized) | 0.08 | 0.06 | 0.12 | % | 0.02 | % | ||||||||||||||||||||
(1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” | (1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” | (1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” |
• | The Company reported net income of $34.6 million, or $1.36 per diluted share, for the six months ended June 30, 2019, compared to $43.2 million, or $1.85 per diluted share, for the same period in 2018. The earnings per share decrease of $0.49 primarily resulted from $17.6 million pretax ($13.7 million after tax), or $0.54 per diluted share, of merger-related expenses. Return on average assets (“ROAA”), return on average common equity (“ROAE”), and return on average tangible common equity1 (“ROATCE”) were 1.07%, 9.45%, and |
• | Net interest margin for the first |
• | Noninterest income for the first six months of 2019 increased $2.0 million or 10%, compared to the prior year period due to contributions from Trinity of approximately $2.9 million, primarily related to wealth management and card services revenue. The increase from Trinity was partially offset by the reduction of nonrecurring revenue received in the prior year period. |
• | Loans – Total loans increased to $5.1 billion at June 30, 2019, increasing $799 million when compared to December 31, 2018. The increase is primarily attributable to the acquisition of Trinity along with growth in the commercial and industrial (“C&I”), commercial real estate (“CRE”), and life insurance premium finance categories, partially offset by paydowns outpacing growth in the other categories. |
• | Deposits – Total deposits at June 30, 2019 were $5.6 billion, an increase of $971 million, from December 31, 2018. The increase is primarily attributable to the acquisition of Trinity. Core deposits, defined as total deposits excluding time deposits, were $4.7 billion at June 30, 2019, an increase of $833 million, or 21% when compared to December 31, 2018. |
• | Asset quality – Nonperforming loans were $19.8 million at June 30, 2019, compared to $16.7 million at December 31, 2018. Nonperforming loans represented 0.39% and 0.19% of total loans at June 30, 2019 and December 31, 2018, respectively. |
Three months ended March 31, | Three months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | ||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||
Taxable portfolio loans (1) | $ | 4,468,412 | $ | 59,227 | 5.38 | % | $ | 4,072,639 | $ | 48,891 | 4.87 | % | $ | 5,056,172 | $ | 68,093 | 5.40 | % | $ | 4,162,720 | $ | 51,783 | 4.99 | % | ||||||||||||||||||
Tax-exempt portfolio loans (2) | 28,021 | 424 | 6.14 | 37,206 | 489 | 5.33 | 26,821 | 453 | 6.77 | 35,117 | 474 | 5.41 | ||||||||||||||||||||||||||||||
Non-core acquired loans - contractual | 14,954 | 322 | 8.73 | 29,125 | 426 | 5.93 | 12,188 | 284 | 9.35 | 26,179 | 517 | 7.92 | ||||||||||||||||||||||||||||||
Non-core acquired loans - incremental accretion | 1,157 | 31.37 | 766 | 10.67 | 910 | 29.95 | 291 | 4.46 | ||||||||||||||||||||||||||||||||||
Total loans | 4,511,387 | 61,130 | 5.50 | 4,138,970 | 50,572 | 4.96 | 5,095,181 | 69,740 | 5.49 | 4,224,016 | 53,065 | 5.04 | ||||||||||||||||||||||||||||||
Taxable investments in debt and equity securities | 831,627 | 5,698 | 2.78 | 698,459 | 4,192 | 2.43 | 1,120,526 | 8,009 | 2.87 | 703,185 | 4,429 | 2.53 | ||||||||||||||||||||||||||||||
Non-taxable investments in debt and equity securities (2) | 65,309 | 594 | 3.69 | 42,128 | 375 | 3.61 | 126,003 | 1,143 | 3.64 | 40,349 | 360 | 3.58 | ||||||||||||||||||||||||||||||
Short-term investments | 102,166 | 447 | 1.77 | 69,318 | 240 | 1.40 | 111,291 | 703 | 2.53 | 56,057 | 231 | 1.65 | ||||||||||||||||||||||||||||||
Total securities and short-term investments | 999,102 | 6,739 | 2.74 | 809,905 | 4,807 | 2.41 | 1,357,820 | 9,855 | 2.91 | 799,591 | 5,020 | 2.52 | ||||||||||||||||||||||||||||||
Total interest-earning assets | 5,510,489 | 67,869 | 4.99 | 4,948,875 | 55,379 | 4.54 | 6,453,001 | 79,595 | 4.95 | 5,023,607 | 58,085 | 4.64 | ||||||||||||||||||||||||||||||
Noninterest-earning assets: | ||||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 80,991 | 88,630 | ||||||||||||||||||||||||||||||||||||||||
Other assets | 408,195 | 346,376 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (43,589 | ) | (43,769 | ) | ||||||||||||||||||||||||||||||||||||||
Noninterest-earning assets | 604,604 | 391,544 | ||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 5,956,086 | $ | 5,340,112 | $ | 7,057,605 | $ | 5,415,151 | ||||||||||||||||||||||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,077,289 | $ | 1,790 | 0.67 | % | $ | 862,912 | $ | 806 | 0.38 | % | $ | 1,384,090 | $ | 2,134 | 0.62 | % | $ | 823,650 | $ | 817 | 0.40 | % | ||||||||||||||||||
Money market accounts | 1,521,878 | 6,515 | 1.74 | 1,391,055 | 3,353 | 0.98 | 1,576,333 | 6,996 | 1.78 | 1,494,194 | 4,445 | 1.19 | ||||||||||||||||||||||||||||||
Savings | 299,731 | 183 | 0.25 | 201,852 | 125 | 0.25 | 562,503 | 231 | 0.16 | 208,662 | 147 | 0.28 | ||||||||||||||||||||||||||||||
Certificates of deposit | 712,269 | 3,332 | 1.90 | 603,736 | 1,899 | 1.28 | 815,138 | 3,758 | 1.85 | 633,897 | 2,338 | 1.48 | ||||||||||||||||||||||||||||||
Total interest-bearing deposits | 3,611,167 | 11,820 | 1.33 | 3,059,555 | 6,183 | 0.82 | 4,338,064 | 13,119 | 1.21 | 3,160,403 | 7,747 | 0.98 | ||||||||||||||||||||||||||||||
Subordinated debentures | 124,154 | 1,648 | 5.38 | 118,110 | 1,368 | 4.70 | 141,059 | 1,958 | 5.57 | 118,124 | 1,454 | 4.94 | ||||||||||||||||||||||||||||||
FHLB advances | 215,420 | 1,398 | 2.63 | 302,548 | 1,258 | 1.69 | 263,384 | 1,696 | 2.58 | 294,643 | 1,448 | 1.97 | ||||||||||||||||||||||||||||||
Other borrowed funds | 202,197 | 408 | 0.82 | 207,442 | 184 | 0.36 | 204,375 | 713 | 1.40 | 167,661 | 182 | 0.44 | ||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 4,152,938 | 15,274 | 1.49 | 3,687,655 | 8,993 | 0.99 | 4,946,882 | 17,486 | 1.42 | 3,740,831 | 10,831 | 1.16 | ||||||||||||||||||||||||||||||
Noninterest bearing liabilities: | ||||||||||||||||||||||||||||||||||||||||||
Demand deposits | 1,088,323 | 1,064,771 | 1,244,008 | 1,069,888 | ||||||||||||||||||||||||||||||||||||||
Other liabilities | 52,371 | 33,620 | 53,609 | 35,877 | ||||||||||||||||||||||||||||||||||||||
Total liabilities | 5,293,632 | 4,786,046 | 6,244,499 | 4,846,596 | ||||||||||||||||||||||||||||||||||||||
Shareholders' equity | 662,454 | 554,066 | 813,106 | 568,555 | ||||||||||||||||||||||||||||||||||||||
Total liabilities & shareholders' equity | $ | 5,956,086 | $ | 5,340,112 | $ | 7,057,605 | $ | 5,415,151 | ||||||||||||||||||||||||||||||||||
Net interest income | $ | 52,595 | $ | 46,386 | $ | 62,109 | $ | 47,254 | ||||||||||||||||||||||||||||||||||
Net interest spread | 3.50 | % | 3.55 | % | 3.53 | % | 3.48 | % | ||||||||||||||||||||||||||||||||||
Net interest margin | 3.87 | % | 3.80 | % | 3.86 | % | 3.77 | % | ||||||||||||||||||||||||||||||||||
Core net interest margin (3) | 3.79 | % | 3.74 | % | 3.80 | % | 3.75 | % |
(1) | Average balances include non-accrual loans. The income on such loans is included in interest but is recognized only upon receipt. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately |
(2) | Non-taxable income is presented on a tax-equivalent basis using a 24.7% tax rate in 2019 and 2018. The tax-equivalent adjustments were |
(3) | A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial measures.” |
Six months ended June 30, 2019 | |||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||
(in thousands) | Average Balance | Interest Income/Expense | Average Yield/ Rate | Average Balance | Interest Income/Expense | Average Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Taxable portfolio loans (1) | $ | 4,763,916 | $ | 127,320 | 5.39 | % | $ | 4,117,928 | $ | 100,675 | 4.93 | % | |||||||||
Tax-exempt portfolio loans (2) | 27,418 | 878 | 6.46 | 36,156 | 963 | 5.37 | |||||||||||||||
Non-core acquired loans - contractual | 13,564 | 605 | 8.99 | 27,644 | 942 | 6.87 | |||||||||||||||
Non-core acquired loans - incremental accretion | 2,067 | 30.74 | 1,057 | 7.71 | |||||||||||||||||
Total loans | 4,804,898 | 130,870 | 5.49 | 4,181,728 | 103,637 | 5.00 | |||||||||||||||
Taxable investments in debt and equity securities | 976,875 | 13,707 | 2.83 | 700,835 | 8,621 | 2.48 | |||||||||||||||
Non-taxable investments in debt and equity securities (2) | 95,823 | 1,737 | 3.66 | 41,233 | 735 | 3.59 | |||||||||||||||
Short-term investments | 106,752 | 1,150 | 2.17 | 62,651 | 471 | 1.52 | |||||||||||||||
Total securities and short-term investments | 1,179,450 | 16,594 | 2.84 | 804,719 | 9,827 | 2.46 | |||||||||||||||
Total interest-earning assets | 5,984,348 | 147,464 | 4.97 | 4,986,447 | 113,464 | 4.59 | |||||||||||||||
Noninterest-earning assets | 525,540 | 391,392 | |||||||||||||||||||
Total assets | $ | 6,509,888 | $ | 5,377,839 | |||||||||||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Interest-bearing transaction accounts | $ | 1,231,537 | $ | 3,924 | 0.64 | % | $ | 843,172 | $ | 1,623 | 0.39 | % | |||||||||
Money market accounts | 1,549,255 | 13,511 | 1.76 | 1,442,910 | 7,798 | 1.09 | |||||||||||||||
Savings | 431,843 | 414 | 0.19 | 205,276 | 272 | 0.27 | |||||||||||||||
Certificates of deposit | 763,988 | 7,090 | 1.87 | 618,900 | 4,237 | 1.38 | |||||||||||||||
Total interest-bearing deposits | 3,976,623 | 24,939 | 1.26 | 3,110,258 | 13,930 | 0.90 | |||||||||||||||
Subordinated debentures | 132,653 | 3,606 | 5.48 | 118,117 | 2,822 | 4.82 | |||||||||||||||
FHLB advances | 239,535 | 3,094 | 2.60 | 298,573 | 2,706 | 1.83 | |||||||||||||||
Other borrowed funds | 203,292 | 1,121 | 1.11 | 187,442 | 366 | 0.39 | |||||||||||||||
Total interest-bearing liabilities | 4,552,103 | 32,760 | 1.45 | 3,714,390 | 19,824 | 1.08 | |||||||||||||||
Noninterest bearing liabilities: | |||||||||||||||||||||
Demand deposits | 1,166,595 | 1,067,343 | |||||||||||||||||||
Other liabilities | 52,994 | 34,755 | |||||||||||||||||||
Total liabilities | 5,771,692 | 4,816,488 | |||||||||||||||||||
Shareholders' equity | 738,196 | 561,351 | |||||||||||||||||||
Total liabilities & shareholders' equity | $ | 6,509,888 | $ | 5,377,839 | |||||||||||||||||
Net interest income | $ | 114,704 | $ | 93,640 | |||||||||||||||||
Net interest spread | 3.52 | % | 3.51 | % | |||||||||||||||||
Net interest margin | 3.87 | % | 3.79 | % | |||||||||||||||||
Core net interest margin (3) | 3.80 | % | 3.74 | % |
(1) | Average balances include non-accrual loans. The income on such loans is included in interest but is recognized only upon receipt. Loan fees, net of amortization of deferred loan origination fees and costs, included in interest income are approximately $2.1 million and $1.9 million for the six months ended June 30, 2019 and 2018 respectively. |
(2) | Non-taxable income is presented on a fully tax-equivalent basis using a 24.7% tax rate in 2019 and 2018. The tax-equivalent adjustments were $0.6 million and $0.4 million for the six months ended June 30, 2019 and 2018, respectively. |
(3) | A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption "Use of Non-GAAP Financial measures." |
2019 compared to 2018 | 2019 compared to 2018 | |||||||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||
Increase (decrease) due to | Increase (decrease) due to | Increase (decrease) due to | ||||||||||||||||||||||||||||||||
(in thousands) | Volume(1) | Rate(2) | Net | Volume(1) | Rate(2) | Net | Volume(1) | Rate(2) | Net | |||||||||||||||||||||||||
Interest earned on: | ||||||||||||||||||||||||||||||||||
Taxable loans | $ | 4,975 | $ | 5,361 | $ | 10,336 | $ | 11,795 | $ | 4,515 | $ | 16,310 | $ | 16,717 | $ | 9,928 | $ | 26,645 | ||||||||||||||||
Tax-exempt loans (3) | (132 | ) | 67 | (65 | ) | (126 | ) | 105 | (21 | ) | (259 | ) | 174 | (85 | ) | |||||||||||||||||||
Non-core acquired loans | (790 | ) | 1,077 | 287 | (617 | ) | 1,003 | 386 | (1,418 | ) | 2,091 | 673 | ||||||||||||||||||||||
Taxable investments in debt and equity securities | 858 | 648 | 1,506 | 2,919 | 661 | 3,580 | 3,747 | 1,339 | 5,086 | |||||||||||||||||||||||||
Non-taxable investments in debt and equity securities (3) | 211 | 8 | 219 | 777 | 6 | 783 | 990 | 12 | 1,002 | |||||||||||||||||||||||||
Short-term investments | 133 | 74 | 207 | 306 | 166 | 472 | 421 | 258 | 679 | |||||||||||||||||||||||||
Total interest-earning assets | $ | 5,255 | $ | 7,235 | $ | 12,490 | $ | 15,054 | $ | 6,456 | $ | 21,510 | $ | 20,198 | $ | 13,802 | $ | 34,000 | ||||||||||||||||
Interest paid on: | ||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts | $ | 242 | $ | 742 | $ | 984 | $ | 728 | $ | 589 | $ | 1,317 | $ | 950 | $ | 1,351 | $ | 2,301 | ||||||||||||||||
Money market accounts | 342 | 2,820 | 3,162 | 255 | 2,296 | 2,551 | 613 | 5,100 | 5,713 | |||||||||||||||||||||||||
Savings | 58 | — | 58 | 166 | (82 | ) | 84 | 234 | (92 | ) | 142 | |||||||||||||||||||||||
Certificates of deposit | 388 | 1,045 | 1,433 | 758 | 662 | 1,420 | 1,133 | 1,720 | 2,853 | |||||||||||||||||||||||||
Subordinated debentures | 73 | 207 | 280 | 304 | 200 | 504 | 370 | 414 | 784 | |||||||||||||||||||||||||
FHLB advances | (431 | ) | 571 | 140 | (166 | ) | 414 | 248 | (607 | ) | 995 | 388 | ||||||||||||||||||||||
Borrowed funds | (5 | ) | 229 | 224 | 48 | 483 | 531 | 33 | 722 | 755 | ||||||||||||||||||||||||
Total interest-bearing liabilities | 667 | 5,614 | 6,281 | 2,093 | 4,562 | 6,655 | 2,726 | 10,210 | 12,936 | |||||||||||||||||||||||||
Net interest income | $ | 4,588 | $ | 1,621 | $ | 6,209 | $ | 12,961 | $ | 1,894 | $ | 14,855 | $ | 17,472 | $ | 3,592 | $ | 21,064 |
2019 compared to 2018 | |||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2019 | 2018 | Increase (decrease) | 2019 | 2018 | Increase (decrease) | 2019 | 2018 | Increase (decrease) | ||||||||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 2,935 | $ | 2,851 | $ | 84 | 3 | % | $ | 3,366 | $ | 3,007 | $ | 359 | 12 | % | $ | 6,301 | $ | 5,858 | $ | 443 | 8 | % | |||||||||||||||||||
Wealth management revenue | 1,992 | 2,114 | (122 | ) | (6 | )% | 2,661 | 2,141 | 520 | 24 | % | 4,653 | 4,255 | 398 | 9 | % | |||||||||||||||||||||||||||
Card services revenue | 1,790 | 1,516 | 274 | 18 | % | 2,461 | 1,650 | 811 | 49 | % | 4,251 | 3,166 | 1,085 | 34 | % | ||||||||||||||||||||||||||||
Gain on sale of other real estate | 66 | — | 66 | NM | |||||||||||||||||||||||||||||||||||||||
Tax credit activity, net | 158 | 252 | (94 | ) | (37 | )% | |||||||||||||||||||||||||||||||||||||
Gain on sale of investment securities | — | — | — | NM | |||||||||||||||||||||||||||||||||||||||
Gain (loss) on sale of other real estate | (18 | ) | — | (18 | ) | NM | 48 | — | 48 | NM | |||||||||||||||||||||||||||||||||
Tax credit income | 572 | 64 | 508 | 794 | % | 730 | 316 | 414 | 131 | % | |||||||||||||||||||||||||||||||||
Miscellaneous income | 2,289 | 2,809 | (520 | ) | (19 | )% | 2,922 | 2,831 | 91 | 3 | % | 5,211 | 5,640 | (429 | ) | (8 | )% | ||||||||||||||||||||||||||
Total noninterest income | $ | 9,230 | $ | 9,542 | $ | (312 | ) | (3 | )% | $ | 11,964 | $ | 9,693 | $ | 2,271 | 23 | % | $ | 21,194 | $ | 19,235 | $ | 1,959 | 10 | % | ||||||||||||||||||
(1) A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” | |||||||||||||||||||||||||||||||||||||||||||
NM - Not meaningful | NM - Not meaningful |
2019 compared to 2018 | |||||||||||||||||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
(in thousands) | 2019 | 2018 | Increase (decrease) | ||||||||||||||||||||||||||
Employee compensation and benefits | $ | 20,687 | $ | 16,582 | $ | 4,105 | 25 | % | $ | 40,039 | $ | 33,073 | $ | 6,966 | 21 | % | |||||||||||||
Occupancy | 3,188 | 2,342 | 846 | 36 | % | 5,825 | 4,748 | 1,077 | 23 | % | |||||||||||||||||||
Data processing | 2,458 | 1,533 | 925 | 60 | % | 4,364 | 3,000 | 1,364 | 45 | % | |||||||||||||||||||
Professional fees | 1,037 | 747 | 290 | 39 | % | 1,783 | 1,596 | 187 | 12 | % | |||||||||||||||||||
FDIC and other insurance | 815 | 920 | (105 | ) | (11 | )% | 1,663 | 1,837 | (174 | ) | (9 | )% | |||||||||||||||||
Loan legal and other real estate expense | 818 | (23 | ) | 841 | (3,657 | )% | 1,300 | 276 | 1,024 | 371 | % | ||||||||||||||||||
Merger related expenses | 10,306 | — | 10,306 | — | % | 17,576 | — | 17,576 | — | % | |||||||||||||||||||
Other | 9,745 | 7,118 | 2,627 | 37 | % | 16,342 | 13,832 | 2,510 | 18 | % | |||||||||||||||||||
Total noninterest expense | $ | 49,054 | $ | 29,219 | $ | 19,835 | 68 | % | $ | 88,892 | $ | 58,362 | $ | 30,530 | 52 | % | |||||||||||||
Efficiency ratio | 66.58 | % | 51.50 | % | 15.08 | % | 65.72 | % | 51.90 | % | 13.82 | % | |||||||||||||||||
Core efficiency ratio1 | 53.30 | % | 52.36 | % | 0.94 | % | 53.65 | % | 53.18 | % | 0.47 | % | |||||||||||||||||
1A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” |
Three months ended March 31, | ||||||||||||||
(in thousands) | 2019 | 2018 | Increase (decrease) | |||||||||||
Employee compensation and benefits | $ | 19,352 | $ | 16,491 | $ | 2,861 | 17 | % | ||||||
Occupancy | 2,637 | 2,406 | 231 | 10 | % | |||||||||
Data processing | 1,906 | 1,467 | 439 | 30 | % | |||||||||
Professional fees | 746 | 849 | (103 | ) | (12 | )% | ||||||||
FDIC and other insurance | 848 | 917 | (69 | ) | (8 | )% | ||||||||
Loan legal and other real estate expense | 482 | 299 | 183 | 61 | % | |||||||||
Merger related expenses | 7,270 | — | 7,270 | — | % | |||||||||
Other | 6,597 | 6,714 | (117 | ) | (2 | )% | ||||||||
Total noninterest expense | $ | 39,838 | $ | 29,143 | $ | 10,695 | 37 | % | ||||||
Efficiency ratio | 64.70 | % | 52.31 | % | 12.39 | % | 24 | % | ||||||
Core efficiency ratio1 | 54.06 | % | 54.02 | % | 0.04 | % | — | % | ||||||
1A non-GAAP measure. A reconciliation has been included in this MD&A section under the caption “Use of Non-GAAP Financial Measures.” |
(in thousands) | March 31, 2019 | December 31, 2018 | Increase (decrease) | June 30, 2019 | December 31, 2018 | Increase (decrease) | |||||||||||||||||||||
Total cash and cash equivalents | $ | 221,482 | $ | 196,552 | $ | 24,930 | 12.7 | % | $ | 189,400 | $ | 196,552 | $ | (7,152 | ) | (4 | )% | ||||||||||
Securities | 1,163,553 | 787,048 | 376,505 | 47.8 | % | 1,285,777 | 787,048 | 498,729 | 63 | ||||||||||||||||||
Loans held for investment | 5,017,077 | 4,190,845 | 826,232 | 19.7 | % | 5,149,497 | 4,350,001 | 799,496 | 18 | ||||||||||||||||||
Total assets | 6,932,757 | 5,645,662 | 1,287,095 | 22.8 | % | 7,181,855 | 5,645,662 | 1,536,193 | 27 | ||||||||||||||||||
Deposits | 5,537,113 | 4,587,985 | 949,128 | 20.7 | % | 5,559,338 | 4,587,985 | 971,353 | 21 | ||||||||||||||||||
Total liabilities | 6,134,922 | 5,041,858 | 1,093,064 | 21.7 | % | 6,356,354 | 5,041,858 | 1,314,496 | 26 | ||||||||||||||||||
Total shareholders’ equity | 797,835 | 603,804 | 194,031 | 32.1 | % | 825,501 | 603,804 | 221,697 | 37 |
(in thousands) | March 31, 2019 | December 31, 2018 | Increase (decrease) | June 30, 2019 | December 31, 2018 | Increase (decrease) | ||||||||||||||||||||||
Commercial and industrial | $ | 2,227,050 | $ | 2,123,167 | $ | 103,883 | 4.9 | % | $ | 2,265,480 | $ | 2,123,167 | $ | 142,313 | 7 | % | ||||||||||||
Commercial real estate - investor owned | 1,187,816 | 867,667 | 320,149 | 36.9 | % | 1,240,296 | 867,667 | 372,629 | 43 | |||||||||||||||||||
Commercial real estate - owner occupied | 682,224 | 614,167 | 68,057 | 11.1 | % | 700,662 | 614,167 | 86,495 | 14 | |||||||||||||||||||
Construction and land development | 369,365 | 334,645 | 34,720 | 10.4 | % | 404,557 | 334,645 | 69,912 | 21 | |||||||||||||||||||
Residential real estate | 432,902 | 305,026 | 127,876 | 41.9 | % | 409,200 | 305,026 | 104,174 | 34 | |||||||||||||||||||
Consumer and other | 117,720 | 105,329 | 12,391 | 11.8 | % | 129,302 | 105,329 | 23,973 | 23 | |||||||||||||||||||
Loans held for investment | $ | 5,017,077 | $ | 4,350,001 | $ | 667,076 | 15.3 | % | $ | 5,149,497 | $ | 4,350,001 | $ | 799,496 | 18 | % |
At the quarter ended | ||||||||||||||||||||||||||||
(in thousands) | March 31, 2019 | December 31, 2018 | Increase (decrease) | June 30, 2019 | December 31, 2018 | Increase (decrease) | ||||||||||||||||||||||
C&I - general | $ | 1,128,755 | $ | 995,491 | $ | 133,264 | 13.4 | % | $ | 1,103,908 | $ | 995,491 | $ | 108,417 | 11 | % | ||||||||||||
CRE investor owned - general | 1,183,471 | 862,423 | 321,048 | 37.2 | % | 1,235,596 | 862,423 | 373,173 | 43 | |||||||||||||||||||
CRE owner occupied - general | 576,026 | 496,835 | 79,191 | 15.9 | % | 591,401 | 496,835 | 94,566 | 19 | |||||||||||||||||||
Enterprise value lending1 | 439,500 | 465,992 | (26,492 | ) | (5.7 | )% | 445,981 | 465,992 | (20,011 | ) | (4 | ) | ||||||||||||||||
Life insurance premium financing1 | 440,693 | 417,950 | 22,743 | 5.4 | % | 465,777 | 417,950 | 47,827 | 11 | |||||||||||||||||||
Residential real estate - general | 432,556 | 304,671 | 127,885 | 42.0 | % | 409,200 | 304,671 | 104,529 | 34 | |||||||||||||||||||
Construction and land development - general | 345,207 | 310,832 | 34,375 | 11.1 | % | 376,597 | 310,832 | 65,765 | 21 | |||||||||||||||||||
Tax credits1 | 235,454 | 262,735 | (27,281 | ) | (10.4 | )% | 268,405 | 262,735 | 5,670 | 2 | ||||||||||||||||||
Agriculture1 | 126,088 | 136,188 | (10,100 | ) | (7.4 | )% | 131,671 | 136,188 | (4,517 | ) | (3 | ) | ||||||||||||||||
Consumer and other - general | 109,327 | 96,884 | 12,443 | 12.8 | % | 120,961 | 96,884 | 24,077 | 25 | |||||||||||||||||||
Total loans | $ | 5,017,077 | $ | 4,350,001 | $ | 667,076 | 15.3 | % | $ | 5,149,497 | $ | 4,350,001 | $ | 799,496 | 18 | % | ||||||||||||
Note: Certain prior period amounts have been reclassified among the categories to conform to the current period presentation. | ||||||||||||||||||||||||||||
1Specialized categories may include a mix of C&I, CRE, construction and land development, or consumer and other loans. | 1Specialized categories may include a mix of C&I, CRE, construction and land development, or consumer and other loans. | 1Specialized categories may include a mix of C&I, CRE, construction and land development, or consumer and other loans. |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Allowance at beginning of period, for portfolio loans | $ | 42,295 | $ | 38,166 | $ | 41,945 | $ | 40,263 | $ | 42,295 | $ | 38,166 | ||||||||||
Loans charged off: | ||||||||||||||||||||||
Commercial and industrial | (1,853 | ) | (732 | ) | (1,380 | ) | (956 | ) | (3,233 | ) | (1,688 | ) | ||||||||||
Real estate: | ||||||||||||||||||||||
Commercial | (156 | ) | — | (431 | ) | — | (587 | ) | — | |||||||||||||
Construction and land development | (45 | ) | — | — | — | (45 | ) | — | ||||||||||||||
Residential | (67 | ) | (254 | ) | (26 | ) | (38 | ) | (93 | ) | (292 | ) | ||||||||||
Consumer and other | (129 | ) | (49 | ) | (53 | ) | (33 | ) | (182 | ) | (82 | ) | ||||||||||
Total loans charged off | (2,250 | ) | (1,035 | ) | (1,890 | ) | (1,027 | ) | (4,140 | ) | (2,062 | ) | ||||||||||
Recoveries of loans previously charged off: | ||||||||||||||||||||||
Commercial and industrial | 29 | 956 | 32 | 118 | 61 | 1,074 | ||||||||||||||||
Real estate: | ||||||||||||||||||||||
Commercial | 9 | 12 | 58 | 13 | 67 | 25 | ||||||||||||||||
Construction and land development | 9 | 206 | 489 | 168 | 498 | 374 | ||||||||||||||||
Residential | 364 | 73 | 124 | 59 | 488 | 132 | ||||||||||||||||
Consumer and other | 13 | 14 | 217 | 28 | 230 | 42 | ||||||||||||||||
Total recoveries of loans | 424 | 1,261 | 920 | 386 | 1,344 | 1,647 | ||||||||||||||||
Net loan charge-offs | (1,826 | ) | 226 | (970 | ) | (641 | ) | (2,796 | ) | (415 | ) | |||||||||||
Provision for loan losses | 1,476 | 1,871 | 1,960 | 2,385 | 3,436 | 4,256 | ||||||||||||||||
Allowance at end of period, for portfolio loans | $ | 41,945 | $ | 40,263 | $ | 42,935 | $ | 42,007 | $ | 42,935 | $ | 42,007 | ||||||||||
Allowance at beginning of period, for purchased credit impaired loans | $ | 1,181 | $ | 4,411 | $ | 1,150 | $ | 4,387 | $ | 1,181 | $ | 4,411 | ||||||||||
Loans charged off | — | — | — | — | — | — | ||||||||||||||||
Recoveries of loans | — | — | — | — | — | — | ||||||||||||||||
Net loan charge-offs | — | — | — | — | — | — | ||||||||||||||||
Other | (31 | ) | (24 | ) | (25 | ) | (29 | ) | (56 | ) | (53 | ) | ||||||||||
Provision reversal for purchased credit impaired loan losses | $ | (238 | ) | $ | (1,995 | ) | $ | (238 | ) | $ | (1,995 | ) | ||||||||||
Allowance at end of period, for purchased credit impaired loans | $ | 1,150 | $ | 4,387 | $ | 887 | $ | 2,363 | $ | 887 | $ | 2,363 | ||||||||||
Total allowance at end of period | $ | 43,095 | $ | 44,650 | $ | 43,822 | $ | 44,370 | $ | 43,822 | $ | 44,370 | ||||||||||
Portfolio loans, average | $ | 4,496,125 | $ | 4,108,400 | $ | 5,082,013 | $ | 4,196,875 | $ | 4,790,688 | $ | 4,152,882 | ||||||||||
Total loans, average | 4,511,079 | 4,137,525 | 5,095,181 | 4,224,016 | 4,804,898 | 4,181,728 | ||||||||||||||||
Total loans, ending | 5,017,077 | 4,190,845 | 5,149,497 | 4,275,761 | ||||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.16 | % | (0.02 | )% | ||||||||||||||||||
Net charge-offs to average loans | 0.08 | % | 0.06 | % | 0.12 | % | 0.02 | % | ||||||||||||||
Allowance for loan losses to total loans | 0.86 | % | 1.07 | % | 0.85 | % | 1.04 | % | 0.85 | % | 1.04 | % |
(in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 2018 | ||||||||||||||||
Non-accrual loans | $ | 9,416 | $ | 16,520 | $ | 14,858 | $ | 15,659 | $ | 16,520 | $ | 14,168 | ||||||||||
Loans past due 90 days or more and still accruing interest | — | — | — | 3,999 | — | — | ||||||||||||||||
Restructured loans | 191 | 225 | 724 | 184 | 225 | 633 | ||||||||||||||||
Total nonperforming loans | 9,607 | 16,745 | 15,582 | 19,842 | 16,745 | 14,801 | ||||||||||||||||
Other real estate | 6,804 | 469 | 455 | 10,531 | 469 | 454 | ||||||||||||||||
Total nonperforming assets | $ | 16,411 | $ | 17,214 | $ | 16,037 | $ | 30,373 | $ | 17,214 | $ | 15,255 | ||||||||||
Total assets | $ | 6,932,757 | $ | 5,645,662 | $ | 5,383,102 | $ | 7,181,855 | $ | 5,645,662 | $ | 5,509,924 | ||||||||||
Total loans | 4,894,574 | 4,350,001 | 4,190,845 | 5,046,182 | 4,350,001 | 4,275,761 | ||||||||||||||||
Total loans plus other real estate | 5,023,881 | 4,350,470 | 4,191,300 | 5,160,028 | 4,350,470 | 4,276,215 | ||||||||||||||||
Nonperforming loans to total loans | 0.19 | % | 0.38 | % | 0.37 | % | 0.39 | % | 0.38 | % | 0.35 | % | ||||||||||
Nonperforming assets to total loans plus other real estate | 0.33 | 0.40 | 0.38 | |||||||||||||||||||
Nonperforming assets to total assets | 0.24 | 0.30 | 0.30 | 0.42 | 0.30 | 0.28 | ||||||||||||||||
Allowance for loan losses to nonperforming loans | 449 | 260 | 287 | 221 | 260 | 300 |
(in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | June 30, 2019 | December 31, 2018 | June 30, 2018 | ||||||||||||||||
Commercial and industrial | $ | 7,205 | $ | 12,950 | $ | 12,313 | $ | 15,112 | $ | 12,950 | $ | 11,227 | ||||||||||
Commercial real estate | 1,995 | 1,206 | 1,167 | 1,670 | 1,206 | 1,153 | ||||||||||||||||
Construction and land development | — | — | — | — | — | 435 | ||||||||||||||||
Residential real estate | 407 | 2,277 | 1,777 | 3,060 | 2,277 | 1,669 | ||||||||||||||||
Consumer and other | — | 312 | 325 | — | 312 | 317 | ||||||||||||||||
Total | $ | 9,607 | $ | 16,745 | $ | 15,582 | $ | 19,842 | $ | 16,745 | $ | 14,801 |
Three months ended March 31, | Six months ended June 30, | |||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||
Nonperforming loans beginning of period | $ | 16,745 | $ | 15,687 | $ | 16,745 | $ | 15,687 | ||||||
Additions to nonaccrual loans | 1,453 | 1,429 | 10,605 | 2,101 | ||||||||||
Additions to restructured loans | — | 30 | — | 85 | ||||||||||
Charge-offs | (2,135 | ) | (1,003 | ) | (3,965 | ) | (1,997 | ) | ||||||
Other principal reductions | (4,947 | ) | (561 | ) | (5,136 | ) | (1,075 | ) | ||||||
Moved to other real estate | (835 | ) | — | (1,732 | ) | — | ||||||||
Moved to performing | (674 | ) | — | (674 | ) | — | ||||||||
Nonperforming loans end of period | $ | 9,607 | $ | 15,582 | $ | 19,842 | $ | 14,801 |
Three months ended March 31, | Six months ended June 30, | |||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | ||||||||||
Other real estate beginning of period | $ | 469 | $ | 498 | $ | 469 | $ | 498 | ||||||
Additions and expenses capitalized to prepare property for sale | 1,372 | — | 7,783 | — | ||||||||||
Additions from acquisition | 4,963 | — | 4,512 | — | ||||||||||
Writedowns in value | — | (43 | ) | — | (44 | ) | ||||||||
Sales | (2,233 | ) | — | |||||||||||
Other real estate end of period | $ | 6,804 | $ | 455 | $ | 10,531 | $ | 454 |
(in thousands) | March 31, 2019 | December 31, 2018 | Increase (decrease) | June 30, 2019 | December 31, 2018 | Increase (decrease) | ||||||||||||||||||||||
Demand deposits | $ | 1,186,508 | $ | 1,100,718 | $ | 85,790 | 7.8 | % | $ | 1,181,577 | $ | 1,100,718 | $ | 80,859 | 7.3 | % | ||||||||||||
Interest-bearing transaction accounts | 1,389,826 | 1,037,684 | 352,142 | 33.9 | % | 1,392,586 | 1,037,684 | 354,902 | 34.2 | % | ||||||||||||||||||
Money market accounts | 1,580,291 | 1,565,729 | 14,562 | 0.9 | % | 1,611,766 | 1,565,729 | 46,037 | 2.9 | % | ||||||||||||||||||
Savings | 575,740 | 199,425 | 376,315 | 188.7 | % | 550,839 | 199,425 | 351,414 | 176.2 | % | ||||||||||||||||||
Certificates of deposit: | ||||||||||||||||||||||||||||
Brokered | 180,788 | 198,981 | (18,193 | ) | (9.1 | )% | 213,138 | 198,981 | 14,157 | 7.1 | % | |||||||||||||||||
Other | 623,960 | 485,448 | 138,512 | 28.5 | % | 609,432 | 485,448 | 123,984 | 25.5 | % | ||||||||||||||||||
Total deposits | $ | 5,537,113 | $ | 4,587,985 | $ | 949,128 | 20.7 | % | $ | 5,559,338 | $ | 4,587,985 | $ | 971,353 | 21.2 | % | ||||||||||||
Non-time deposits / total deposits | 85 | % | 85 | % | 85 | % | 85 | % | ||||||||||||||||||||
Demand deposits / total deposits | 21 | % | 24 | % | 21 | % | 24 | % |
(in thousands) | March 31, 2019 | December 31, 2018 | Well Capitalized Minimum % | June 30, 2019 | December 31, 2018 | Well Capitalized Minimum % | ||||||||||||||
Total capital to risk-weighted assets | 12.75 | % | 12.26 | % | 10.00 | % | 12.44 | % | 12.26 | % | 10.00 | % | ||||||||
Tier 1 capital to risk-weighted assets | 12.00 | 11.38 | 8.00 | 11.70 | 11.38 | 8.00 | ||||||||||||||
Common equity tier 1 capital to risk-weighted assets | 12.00 | 11.37 | 6.50 | 11.70 | 11.37 | 6.50 | ||||||||||||||
Leverage ratio (Tier 1 capital to average assets) | 12.01 | 10.52 | 5.00 | 10.23 | 10.52 | 5.00 | ||||||||||||||
Total risk-based capital | $ | 740,510 | $ | 611,197 | $ | 749,411 | $ | 611,197 | ||||||||||||
Tier 1 capital | 696,910 | 567,296 | 705,084 | 567,296 | ||||||||||||||||
Common equity tier 1 capital | 696,853 | 567,239 | 705,027 | 567,239 |
(in thousands) | March 31, 2019 | December 31, 2018 | Well Capitalized Minimum % | June 30, 2019 | December 31, 2018 | Well Capitalized Minimum % | ||||||||||||
Total capital to risk-weighted assets | 12.86 | % | 13.02 | % | N/A | 12.62 | % | 13.02 | % | N/A | ||||||||
Tier 1 capital to risk-weighted assets | 11.25 | 11.14 | N/A | 11.06 | 11.14 | N/A | ||||||||||||
Common equity tier 1 capital to risk-weighted assets | 9.64 | 9.79 | N/A | 9.51 | 9.79 | N/A | ||||||||||||
Leverage ratio (Tier 1 capital to average assets) | 11.43 | 10.29 | N/A | 9.81 | 10.29 | N/A | ||||||||||||
Tangible common equity to tangible assets1 | 8.35 | 8.66 | N/A | 8.43 | 8.66 | N/A | ||||||||||||
Total risk-based capital | $ | 748,388 | $ | 650,859 | $ | 763,312 | $ | 650,859 | ||||||||||
Tier 1 capital | 654,788 | 556,958 | 668,985 | 556,958 | ||||||||||||||
Common equity tier 1 capital | 561,131 | 489,301 | 575,328 | 489,301 | ||||||||||||||
1 Not a required regulatory capital ratio | 1 Not a required regulatory capital ratio | 1 Not a required regulatory capital ratio |
For the Three Months ended | For the Three Months ended | For the Six Months ended | ||||||||||||||||||||||||||||
(in thousands) | March 31, 2019 | December 31, 2018 | March 31, 2018 | June 30, 2019 | March 31, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | ||||||||||||||||||||||
Net interest income | $ | 52,343 | $ | 50,593 | $ | 46,171 | $ | 61,715 | $ | 52,343 | $ | 47,048 | $ | 114,058 | $ | 93,219 | ||||||||||||||
Less: Incremental accretion income | 1,157 | 2,109 | 766 | 910 | 1,157 | 291 | 2,067 | 1,057 | ||||||||||||||||||||||
Core net interest income | 51,186 | 48,484 | 45,405 | 60,805 | 51,186 | 46,757 | 111,991 | 92,162 | ||||||||||||||||||||||
Total noninterest income | 9,230 | 10,702 | 9,542 | 11,964 | 9,230 | 9,693 | 21,194 | 19,235 | ||||||||||||||||||||||
Less: Gain on sale of investment securities | — | — | 9 | — | — | — | — | 9 | ||||||||||||||||||||||
Less: Other income from non-core acquired assets | 365 | 10 | 1,013 | 2 | 365 | 18 | 367 | 1,031 | ||||||||||||||||||||||
Less: Other non-core income | — | 26 | — | 266 | — | 649 | 266 | 649 | ||||||||||||||||||||||
Core noninterest income | 8,865 | 10,666 | 8,520 | 11,696 | 8,865 | 9,026 | 20,561 | 17,546 | ||||||||||||||||||||||
Total core revenue | 60,051 | 59,150 | 53,925 | 72,501 | 60,051 | 55,783 | 132,552 | 109,708 | ||||||||||||||||||||||
Total noninterest expense | 39,838 | 30,747 | 29,143 | 49,054 | 39,838 | 29,219 | 88,892 | 58,362 | ||||||||||||||||||||||
Less: Other expenses related to non-core acquired loans | 103 | 40 | 14 | 103 | 103 | (229 | ) | 206 | (215 | ) | ||||||||||||||||||||
Less: Merger related expenses | 7,270 | 1,271 | — | 10,306 | 7,270 | — | 17,576 | — | ||||||||||||||||||||||
Less: Facilities disposal charge | — | — | 239 | — | 239 | |||||||||||||||||||||||||
Core noninterest expense | 32,465 | 29,436 | 29,129 | 38,645 | 32,465 | 29,209 | 71,110 | 58,338 | ||||||||||||||||||||||
Core efficiency ratio | 54.06 | % | 49.77 | % | 54.02 | % | 53.30 | % | 54.06 | % | 52.36 | % | 53.65 | % | 53.18 | % |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Net interest income | $ | 52,595 | $ | 46,386 | $ | 62,109 | $ | 47,254 | $ | 114,704 | $ | 93,640 | ||||||||||
Less: Incremental accretion income | 1,157 | 766 | 910 | 291 | 2,067 | 1,057 | ||||||||||||||||
Core net interest income | $ | 51,438 | $ | 45,620 | ||||||||||||||||||
Core net interest income, tax equivalent | $ | 61,199 | $ | 46,963 | $ | 112,637 | $ | 92,583 | ||||||||||||||
Average earning assets | $ | 5,510,489 | $ | 4,948,875 | $ | 6,453,005 | $ | 5,023,607 | $ | 5,984,348 | $ | 4,986,447 | ||||||||||
Reported net interest margin | 3.87 | % | 3.80 | % | 3.86 | % | 3.77 | % | 3.87 | % | 3.79 | % | ||||||||||
Core net interest margin | 3.79 | % | 3.74 | % | 3.80 | % | 3.75 | % | 3.80 | % | 3.74 | % |
(in thousands) | March 31, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||
Total shareholders' equity | $ | 797,835 | $ | 603,804 | $ | 825,501 | $ | 603,804 | ||||||
Less: Goodwill | 207,632 | 117,345 | 211,251 | 117,345 | ||||||||||
Less: Intangible assets | 31,048 | 8,553 | 29,201 | 8,553 | ||||||||||
Tangible common equity | $ | 559,155 | $ | 477,906 | $ | 585,049 | $ | 477,906 | ||||||
Total assets | $ | 6,932,757 | $ | 5,645,662 | $ | 7,181,855 | $ | 5,645,662 | ||||||
Less: Goodwill | 207,632 | 117,345 | 211,251 | 117,345 | ||||||||||
Less: Intangible assets | 31,048 | 8,553 | 29,201 | 8,553 | ||||||||||
Tangible assets | $ | 6,694,077 | $ | 5,519,764 | $ | 6,941,403 | $ | 5,519,764 | ||||||
Tangible common equity to tangible assets | 8.35 | % | 8.66 | % | 8.43 | % | 8.66 | % |
For the Quarter ended | For the Quarter ended | |||||||||||||||||||||
($ in thousands, except per share data) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Jun 30, 2019 | Mar 31, 2019 | Jun 30, 2018 | ||||||||||||||||
Average shareholder’s equity | $ | 662,454 | $ | 597,864 | $ | 554,066 | $ | 813,106 | $ | 662,454 | $ | 568,555 | ||||||||||
Less: Average goodwill | 141,422 | 117,345 | 117,345 | 211,251 | 141,422 | 117,345 | ||||||||||||||||
Less: Average intangible assets | 14,472 | 8,841 | 10,715 | 29,965 | 14,472 | 10,074 | ||||||||||||||||
Average tangible common equity | 506,560 | 471,678 | 426,006 | 571,890 | 506,560 | 441,136 |
For the three months ended | For the three months ended | |||||||||||||||||||||
($ in thousands, except per share data) | Mar 31, 2019 | Dec 31, 2018 | Mar 31, 2018 | Jun 30, 2019 | Mar 31, 2019 | Jun 30, 2018 | ||||||||||||||||
Net income - GAAP | $ | 16,156 | $ | 23,529 | $ | 20,921 | $ | 18,424 | $ | 16,156 | $ | 22,251 | ||||||||||
Merger-related expenses | 7,270 | 1,271 | — | 10,306 | 7,270 | — | ||||||||||||||||
Related tax effect | (1,535 | ) | (314 | ) | — | (2,331 | ) | (1,535 | ) | — | ||||||||||||
Adjusted net income - Non-GAAP | $ | 21,891 | $ | 24,486 | $ | 20,921 | $ | 26,399 | $ | 21,891 | $ | 22,251 | ||||||||||
Average assets | $ | 5,956,086 | $ | 5,518,740 | $ | 5,340,112 | $ | 7,057,605 | $ | 5,956,086 | $ | 5,415,151 | ||||||||||
ROAA - GAAP net income | 1.10 | % | 1.69 | % | 1.59 | % | 1.05 | % | 1.10 | % | 1.65 | % | ||||||||||
ROAA - Adjusted net income | 1.49 | 1.76 | 1.59 | 1.50 | 1.49 | 1.65 | ||||||||||||||||
Average shareholder’s equity | $ | 662,454 | $ | 597,864 | $ | 554,066 | $ | 813,106 | $ | 662,454 | $ | 568,555 | ||||||||||
ROAE - GAAP net income | 9.89 | % | 15.61 | % | 15.31 | % | 9.09 | % | 9.89 | % | 15.70 | % | ||||||||||
ROAE - Adjusted net income | 13.40 | 16.25 | 15.31 | 13.02 | 13.40 | 15.70 | ||||||||||||||||
Average tangible common equity | $ | 506,560 | $ | 471,678 | $ | 426,006 | $ | 571,890 | $ | 506,560 | $ | 441,136 | ||||||||||
ROATCE - GAAP net income | 12.93 | % | 19.79 | % | 19.92 | % | 12.92 | % | 12.93 | % | 20.23 | % | ||||||||||
ROATCE - Adjusted net income | 17.53 | 20.60 | 19.92 | 18.52 | 17.53 | 20.23 |
Rate Shock | Annual % change in net interest income |
+ 300 bp | |
+ 200 bp | |
+ 100 bp | |
- 100 bp | |
- 200 bp |
Exhibit No. | Description |
2.1 |
3.1 |
3.2 |
3.3 |
3.4 |
3.5 |
3.6 |
3.7 |
*3.8 |
3.9 |
*31.1 |
*31.2 |
**32.1 |
**32.2 |
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 | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
ENTERPRISE FINANCIAL SERVICES CORP | |||
By: | /s/ James B. Lally | ||
James B. Lally | |||
Chief Executive Officer | |||
By: | /s/ Keene S. Turner | ||
Keene S. Turner | |||
Chief Financial Officer |