Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 04, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2019 | |
Entity File Number | 001-11713 | |
Entity Registrant Name | OceanFirst Financial Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3412577 | |
Entity Address, Address Line One | 110 West Front Street, | |
Entity Address, City or Town | Red Bank, | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 07701 | |
City Area Code | 732 | |
Local Phone Number | 240-4500 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common stock, $0.01 par value per share | |
Trading Symbol | OCFC | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding | 50,360,164 | |
Entity Central Index Key | 0001004702 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 140,901 | $ 120,792 |
Debt securities available-for-sale, at estimated fair value | 127,308 | 100,717 |
Debt securities held-to-maturity, net (estimated fair value of $826,964 at September 30, 2019 and $832,815 at December 31, 2018) | 819,253 | 846,810 |
Equity investments, at estimated fair value | 10,145 | 9,655 |
Restricted equity investments, at cost | 62,095 | 56,784 |
Loans receivable, net | 6,081,938 | 5,579,222 |
Mortgage loans held-for-sale | 110 | 0 |
Interest and dividends receivable | 21,739 | 19,689 |
Other real estate owned | 294 | 1,381 |
Premises and equipment, net | 103,721 | 111,209 |
Bank Owned Life Insurance | 236,190 | 222,482 |
Deferred tax asset | 66,148 | 63,377 |
Assets held for sale | 5,156 | 4,522 |
Other assets | 69,033 | 24,101 |
Core deposit intangible | 16,605 | 16,971 |
Goodwill | 374,537 | 338,442 |
Total assets | 8,135,173 | 7,516,154 |
Liabilities and Stockholders’ Equity | ||
Deposits | 6,220,855 | 5,814,569 |
Federal Home Loan Bank advances | 512,149 | 449,383 |
Securities sold under agreements to repurchase with retail customers | 65,067 | 61,760 |
Other borrowings | 96,667 | 99,530 |
Advances by borrowers for taxes and insurance | 16,230 | 14,066 |
Other liabilities | 79,677 | 37,488 |
Total liabilities | 6,990,645 | 6,476,796 |
Stockholders’ equity: | ||
Preferred stock, $.01 par value, $1,000 liquidation preference, 5,000,000 shares authorized, no shares issued | 0 | 0 |
Common stock, $.01 par value, 150,000,000 shares authorized, 51,946,404 shares issued and 50,700,586 and 47,951,168 shares outstanding at September 30, 2019 and December 31, 2018, respectively | 519 | 483 |
Additional paid-in capital | 839,576 | 757,963 |
Retained earnings | 343,629 | 305,056 |
Accumulated other comprehensive loss | (1,355) | (3,450) |
Less: Unallocated common stock held by Employee Stock Ownership Plan | (8,950) | (9,857) |
Treasury stock, 1,245,818 and 459,251 shares at September 30, 2019 and December 31, 2018, respectively | (28,891) | (10,837) |
Common stock acquired by Deferred Compensation Plan | (91) | (87) |
Deferred Compensation Plan Liability | 91 | 87 |
Total stockholders’ equity | 1,144,528 | 1,039,358 |
Total liabilities and stockholders’ equity | $ 8,135,173 | $ 7,516,154 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Securities held-to-maturity, net estimated fair value | $ 826,964 | $ 832,815 |
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference | $ 1,000 | $ 1,000 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 51,946,404 | 51,946,404 |
Common stock, shares outstanding (shares) | 50,700,586 | 47,951,168 |
Treasury stock, shares (shares) | 1,245,818 | 459,251 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest income: | ||||
Loans | $ 69,715 | $ 64,497 | $ 209,633 | $ 184,229 |
Mortgage-backed securities | 3,761 | 4,105 | 11,748 | 12,087 |
Debt securities, equity investments and other | 3,411 | 2,780 | 10,338 | 7,980 |
Total interest income | 76,887 | 71,382 | 231,719 | 204,296 |
Interest expense: | ||||
Deposits | 9,817 | 5,799 | 28,218 | 15,510 |
Borrowed funds | 3,678 | 4,079 | 10,884 | 10,125 |
Total interest expense | 13,495 | 9,878 | 39,102 | 25,635 |
Net interest income | 63,392 | 61,504 | 192,617 | 178,661 |
Provision for loan losses | 305 | 907 | 1,281 | 2,984 |
Net interest income after provision for loan losses | 63,087 | 60,597 | 191,336 | 175,677 |
Other income: | ||||
Bankcard services revenue | 2,658 | 2,425 | 7,622 | 6,717 |
Net gain on sales of loans | 0 | 31 | 15 | 654 |
Net unrealized gain (loss) on equity investments | 89 | (70) | 330 | (282) |
Net loss from other real estate operations | (108) | (1,582) | (235) | (2,975) |
Income from Bank Owned Life Insurance | 1,431 | 1,337 | 4,045 | 3,813 |
Other | 2,237 | 836 | 3,743 | 1,880 |
Total other income | 11,543 | 8,285 | 30,934 | 26,079 |
Operating expenses: | ||||
Compensation and employee benefits | 21,276 | 19,694 | 67,394 | 64,189 |
Occupancy | 4,159 | 4,443 | 13,088 | 13,582 |
Equipment | 2,062 | 2,067 | 5,944 | 6,004 |
Marketing | 562 | 1,021 | 2,629 | 2,475 |
Federal deposit insurance and regulatory assessments | 297 | 927 | 1,931 | 2,857 |
Data processing | 3,398 | 3,125 | 10,736 | 9,968 |
Check card processing | 1,639 | 799 | 4,399 | 2,904 |
Professional fees | 2,580 | 1,066 | 5,697 | 3,746 |
Other operating expense | 3,902 | 3,366 | 11,153 | 9,928 |
Amortization of core deposit intangible | 1,009 | 995 | 3,029 | 2,828 |
Branch consolidation expense | 1,696 | 1,368 | 8,782 | 2,911 |
Merger related expenses | 777 | 662 | 6,761 | 25,863 |
Total operating expenses | 43,357 | 39,533 | 141,543 | 147,255 |
Income before provision for income taxes | 31,273 | 29,349 | 80,727 | 54,501 |
Provision for income taxes | 6,302 | 5,278 | 15,603 | 9,301 |
Net income | $ 24,971 | $ 24,071 | $ 65,124 | $ 45,200 |
Basic earnings per share (in dollars per share) | $ 0.50 | $ 0.50 | $ 1.30 | $ 0.97 |
Diluted earnings per share (in dollars per share) | $ 0.49 | $ 0.50 | $ 1.28 | $ 0.95 |
Average basic shares outstanding (in usd per share) | 50,491 | 47,685 | 50,242 | 46,451 |
Average diluted shares outstanding (in usd per share) | 50,966 | 48,572 | 50,830 | 47,403 |
Trust and asset management revenue | ||||
Other income: | ||||
Other income | $ 557 | $ 573 | $ 1,624 | $ 1,721 |
Fees and service charges | ||||
Other income: | ||||
Other income | $ 4,679 | $ 4,735 | $ 13,790 | $ 14,551 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,971 | $ 24,071 | $ 65,124 | $ 45,200 |
Other comprehensive income: | ||||
Unrealized gain (loss) on debt securities (net of tax expense of $55 and $489 in 2019, and net of tax benefit of $46 and $207 in 2018, respectively) | 164 | (179) | 1,723 | (772) |
Accretion of unrealized loss (gain) on debt securities reclassified to held-to-maturity (net of tax expense of $86 and $257 in 2019 and net of tax expense of $336 and $854 in 2018, respectively) | 124 | (110) | 372 | 1,836 |
Reclassification adjustment for gains included in net income (net of tax expense of $53 in 2018) | 0 | 0 | 0 | 195 |
Total other comprehensive income | 288 | (289) | 2,095 | 1,259 |
Total comprehensive income | $ 25,259 | $ 23,782 | $ 67,219 | $ 46,459 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized gain (loss) on securities, tax expense (benefit) | $ 55 | $ 489 | $ (46) | $ (207) |
Accretion of unrealized loss (gain) on securities reclassified to held-to-maturity, tax expense | $ 86 | $ 257 | $ 336 | 854 |
Reclassification adjustment for gains included in net income, tax expense | $ 53 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Employee Stock Ownership Plan | Preferred Stock | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Common Stock Acquired by Deferred Compensation Plan | Deferred Compensation Plan Liability | Sun Bancorp, Inc. | Sun Bancorp, Inc.Common Stock | Sun Bancorp, Inc.Additional Paid-In Capital | Sun Bancorp, Inc.Treasury Stock | Capital Bank of New Jersey | Capital Bank of New JerseyCommon Stock | Capital Bank of New JerseyAdditional Paid-In Capital |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Effect of adopting Accounting Standards Update (ASU) | Accounting Standards Update 2016-01 | $ 0 | $ (147) | $ 147 | ||||||||||||||
Beginning Balance at Dec. 31, 2017 | 601,941 | $ (2,479) | $ 0 | $ 336 | $ 354,377 | 271,023 | (5,349) | $ (15,967) | $ (84) | $ 84 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 45,200 | 45,200 | |||||||||||||||
Other comprehensive income, net of tax | 1,259 | 1,259 | |||||||||||||||
Stock awards | 2,530 | 2 | 2,528 | ||||||||||||||
Acquisition of common stock by ESOP | (8,400) | (8,400) | |||||||||||||||
Allocation of ESOP stock | 1,249 | 767 | 482 | ||||||||||||||
Cash dividend per share | (21,425) | (21,425) | |||||||||||||||
Exercise of stock options | 4,936 | 4 | 12,919 | (8,189) | 202 | ||||||||||||
Sale (purchase) of stock for the deferred compensation plan | 0 | (3) | 3 | ||||||||||||||
Acquisition, value | $ 402,554 | $ 141 | $ 386,648 | $ 15,765 | |||||||||||||
Ending Balance at Sep. 30, 2018 | 1,029,844 | (10,112) | 0 | 483 | 756,954 | 286,462 | (3,943) | 0 | (87) | 87 | |||||||
Beginning Balance at Jun. 30, 2018 | 1,012,568 | (10,232) | 0 | 482 | 752,223 | 273,749 | (3,654) | 0 | (84) | 84 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 24,071 | 24,071 | |||||||||||||||
Other comprehensive income, net of tax | (289) | (289) | |||||||||||||||
Stock awards | 743 | 0 | 743 | ||||||||||||||
Allocation of ESOP stock | 283 | 120 | 163 | ||||||||||||||
Cash dividend per share | (7,151) | (7,151) | |||||||||||||||
Exercise of stock options | (381) | 1 | 3,825 | (4,207) | |||||||||||||
Sale (purchase) of stock for the deferred compensation plan | 0 | ||||||||||||||||
Ending Balance at Sep. 30, 2018 | 1,029,844 | (10,112) | 0 | 483 | 756,954 | 286,462 | (3,943) | 0 | (87) | 87 | |||||||
Beginning Balance at Dec. 31, 2018 | 1,039,358 | (9,857) | 0 | 483 | 757,963 | 305,056 | (3,450) | (10,837) | (87) | 87 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 65,124 | 65,124 | |||||||||||||||
Other comprehensive income, net of tax | 2,095 | 2,095 | |||||||||||||||
Stock awards | 3,140 | 2 | 3,138 | ||||||||||||||
Allocation of ESOP stock | 1,182 | 907 | 275 | ||||||||||||||
Cash dividend per share | (25,943) | (25,943) | |||||||||||||||
Exercise of stock options | 1,145 | 2 | 1,751 | (608) | 0 | ||||||||||||
Purchase of shares of common stock | (18,054) | (18,054) | |||||||||||||||
Sale (purchase) of stock for the deferred compensation plan | 0 | (4) | 4 | ||||||||||||||
Acquisition, value | $ 76,481 | $ 32 | $ 76,449 | ||||||||||||||
Ending Balance at Sep. 30, 2019 | 1,144,528 | (8,950) | 0 | 519 | 839,576 | 343,629 | (1,355) | (28,891) | (91) | 91 | |||||||
Beginning Balance at Jun. 30, 2019 | 1,137,295 | (9,252) | 0 | 518 | 838,610 | 327,297 | (1,643) | (18,235) | (90) | 90 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||
Net income | 24,971 | 24,971 | |||||||||||||||
Other comprehensive income, net of tax | 288 | 288 | |||||||||||||||
Stock awards | 538 | 538 | |||||||||||||||
Allocation of ESOP stock | 381 | 302 | 79 | ||||||||||||||
Cash dividend per share | (8,639) | (8,639) | |||||||||||||||
Exercise of stock options | 350 | 1 | 349 | ||||||||||||||
Purchase of shares of common stock | (10,656) | (10,656) | |||||||||||||||
Sale (purchase) of stock for the deferred compensation plan | 0 | (1) | 1 | ||||||||||||||
Ending Balance at Sep. 30, 2019 | $ 1,144,528 | $ (8,950) | $ 0 | $ 519 | $ 839,576 | $ 343,629 | $ (1,355) | $ (28,891) | $ (91) | $ 91 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Retained Earnings | ||||
Cash dividend per share (in dollars per share) | $ 0.51 | $ 0.15 | $ 0.17 | $ 0.45 |
Treasury Stock | ||||
Purchase of common stock (shares) | 477,400 | 786,567 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 65,124 | $ 45,200 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 6,448 | 6,581 |
Allocation of ESOP stock | 1,182 | 1,249 |
Stock awards | 3,140 | 2,530 |
Net excess tax benefit on stock compensation | (243) | (722) |
Amortization of servicing asset | 33 | 86 |
Net premium amortization in excess of discount accretion on securities | 2,387 | 2,988 |
Net amortization of deferred costs on borrowings | 161 | 196 |
Amortization of core deposit intangible | 3,029 | 2,828 |
Net accretion of purchase accounting adjustments | (10,588) | (12,807) |
Net amortization of deferred costs and discounts on loans | 1,028 | 493 |
Provision for loan losses | 1,281 | 2,984 |
Net loss on sale and write-down of other real estate owned | 20 | 1,949 |
Write down of fixed assets held for sale to net realizable value | 7,289 | 3,744 |
Net gain on sale of fixed assets | (27) | (26) |
Net unrealized (gain) loss on equity securities | (330) | 282 |
Net gain on sales of loans | (15) | (654) |
Proceeds from sales of mortgage loans held for sale | 912 | 2,053 |
Mortgage loans originated for sale | (1,007) | (2,503) |
Increase in value of Bank Owned Life Insurance | (4,045) | (3,813) |
Net loss (gain) on sale of assets held for sale | 5 | (1,166) |
Increase in interest and dividends receivable | (462) | (947) |
Deferred tax provision | 336 | 0 |
(Increase) decrease in other assets | (27,786) | 13,452 |
Increase (decrease) in other liabilities | 34,110 | (1,744) |
Total adjustments | 16,858 | 17,033 |
Net cash provided by operating activities | 81,982 | 62,233 |
Cash flows from investing activities: | ||
Net (increase) decrease in loans receivable | (92,658) | 85,935 |
Proceeds from sale of under performing loans | 5,901 | 8,724 |
Purchase of loans receivable | (101,674) | (147,563) |
Purchase of debt investment securities available-for-sale | (35,106) | (28,010) |
Purchase of debt investment securities held-to-maturity | (3,577) | (4,017) |
Purchase of equity investments | (160) | (138) |
Proceeds from maturities and calls of debt investment securities available-for-sale | 28,447 | 14,001 |
Proceeds from maturities and calls of debt investment securities held-to-maturity | 25,547 | 38,540 |
Proceeds from Bank Owned Life Insurance | 716 | 2,708 |
Proceeds from the redemption of restricted equity investments | 85,894 | 83,806 |
Purchases of restricted equity investments | (90,892) | (104,408) |
Proceeds from sales of other real estate owned | 2,060 | 646 |
Proceeds from sales of assets held for sale | 412 | 7,488 |
Purchases of premises and equipment | (3,245) | (10,424) |
Cash consideration received (paid) for acquisition, net of cash received | 59,395 | (3,743) |
Net cash (used in) provided by investing activities | (28,324) | 37,968 |
Cash flows from financing activities: | ||
Decrease in deposits | (42,306) | (103,522) |
Increase in short-term borrowings | 107,307 | 122,376 |
Proceeds from Federal Home Loan Bank advances | 35,000 | 0 |
Repayments of Federal Home Loan Bank advances | (76,618) | (56,607) |
Repayments of other borrowings | (216) | (342) |
Increase in advances by borrowers for taxes and insurance | 2,164 | 5,498 |
Exercise of stock options | 1,145 | 4,936 |
Payment of employee taxes withheld from stock awards | (2,786) | (3,235) |
Purchase of treasury stock | (18,054) | 0 |
Acquisition of common stock by ESOP | 0 | (8,400) |
Dividends paid | (25,943) | (21,425) |
Net cash used in financing activities | (20,307) | (60,721) |
Net increase in cash and due from banks and restricted cash | 33,351 | 39,480 |
Supplemental Disclosure of Cash Flow Information: | ||
Cash and due from banks at beginning of period | 120,792 | 109,613 |
Cash and due from banks and restricted cash at beginning of period | 122,328 | 109,613 |
Restricted cash at beginning of period | 1,536 | 0 |
Cash and due from banks at end of period | 140,901 | 148,362 |
Restricted cash at end of period | 14,778 | 731 |
Cash and due from banks and restricted cash at end of period | 155,679 | 149,093 |
Cash paid during the period for: | ||
Interest | 39,293 | 26,637 |
Income taxes | 16,506 | 143 |
Accretion of unrealized loss on securities reclassified to held-to-maturity | 629 | 2,690 |
Net loan charge-offs | 1,222 | 1,884 |
Transfer of premises and equipment to assets held-for-sale | 1,607 | 11,092 |
Transfer of loans receivable to other real estate owned | 993 | 640 |
Non-cash assets acquired: | ||
Securities | 103,775 | 254,522 |
Restricted equity investments | 313 | 16,967 |
Loans | 307,778 | 1,517,172 |
Premises and equipment | 3,389 | 19,892 |
Accrued interest receivable | 1,390 | 5,621 |
Bank Owned Life Insurance | 10,460 | 85,238 |
Deferred tax asset | 3,829 | 57,712 |
Other assets | 1,405 | 5,246 |
Goodwill and other intangible assets, net | 38,780 | 199,500 |
Total non-cash assets acquired | 471,119 | 2,161,870 |
Liabilities assumed: | ||
Deposits | 449,018 | 1,616,073 |
Borrowings | 0 | 127,747 |
Other liabilities | 5,015 | 11,752 |
Total liabilities assumed | 454,033 | 1,755,572 |
Debt Securities | ||
Cash flows from investing activities: | ||
Principal repayments on debt mortgage-backed securities held-to-maturity | 1,334 | 2,706 |
Mortgage-backed Securities Held-to-Maturity | ||
Cash flows from investing activities: | ||
Principal repayments on debt mortgage-backed securities held-to-maturity | $ 89,282 | $ 91,717 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of OceanFirst Financial Corp. (the “Company”) and its wholly-owned subsidiaries, OceanFirst Bank N.A. (the “Bank”) and OceanFirst Risk Management, Inc., and the Bank’s wholly-owned subsidiaries, OceanFirst REIT Holdings, Inc., and its wholly-owned subsidiary OceanFirst Management Corp., and its wholly-owned subsidiary OceanFirst Realty Corp., OceanFirst Services, LLC and its wholly-owned subsidiary OFB Reinsurance, Ltd., 975 Holdings, LLC, Hooper Holdings, LLC., TRREO Holdings LLC, Casaba Real Estate Holdings Corporation, Cohensey Bridge, L.L.C., Prosperis Financial, LLC and CBNJ Investments Corp. All significant intercompany accounts and transactions have been eliminated in consolidation. Certain amounts previously reported have been reclassified to conform to the current year’s presentation. The interim consolidated financial statements reflect all normal and recurring adjustments which are, in the opinion of management, considered necessary for a fair presentation of the financial condition and results of operations for the periods presented. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results of operations that may be expected for all of 2019 . In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the statements of financial condition and the results of operations for the period. Actual results could differ from these estimates. Certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 . |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Sun Bancorp, Inc. Acquisition On January 31, 2018, the Company completed its acquisition of Sun Bancorp, Inc. (“Sun”), which after purchase accounting adjustments added $2.0 billion to assets, $1.5 billion to loans, and $1.6 billion to deposits. Total consideration paid for Sun was $474.9 million , including cash consideration of $72.4 million . Sun was merged with and into the Company on the date of acquisition. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired has been recorded as goodwill. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Sun, net of the total consideration paid (in thousands): At January 31, 2018 Fair Value Total Purchase Price: $ 474,930 Assets acquired: Cash and cash equivalents $ 68,632 Securities 254,522 Loans 1,517,345 Accrued interest receivable 5,621 Bank Owned Life Insurance 85,238 Deferred tax asset 57,597 Other assets 43,202 Core deposit intangible 11,897 Total assets acquired 2,044,054 Liabilities assumed: Deposits (1,616,073 ) Borrowings (127,727 ) Other liabilities (13,242 ) Total liabilities assumed (1,757,042 ) Net assets acquired $ 287,012 Goodwill recorded in the merger $ 187,918 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. On January 31, 2019, the Company finalized its review of the acquired assets and liabilities and will not be recording any further adjustments to the carrying value. Capital Bank of New Jersey Acquisition On January 31, 2019, the Company completed its acquisition of Capital Bank of New Jersey (“Capital Bank”), which after purchase accounting adjustments added $494.7 million to assets, $307.8 million to loans, and $449.0 million to deposits. Total consideration paid for Capital Bank was $76.8 million , including cash consideration of $353,000 . Capital Bank was merged with and into the Company on the date of acquisition. The acquisition was accounted for under the acquisition method of accounting. Under this method of accounting, the purchase price has been allocated to the respective assets acquired and liabilities assumed based upon their estimated fair values, net of tax. The excess of consideration paid over the estimated fair value of the net assets acquired has been recorded as goodwill. The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands): At January 31, 2019 Estimated Total Purchase Price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,778 Accrued interest receivable 1,390 Bank Owned Life Insurance 10,460 Deferred tax asset 3,829 Other assets 5,107 Core deposit intangible 2,662 Total assets acquired 494,749 Liabilities assumed: Deposits (449,018 ) Other liabilities (5,015 ) Total liabilities assumed (454,033 ) Net assets acquired $ 40,716 Goodwill recorded in the merger $ 36,118 The calculation of goodwill is subject to change for up to one year after the date of acquisition as additional information relative to the closing date estimates and uncertainties become available. As the Company finalizes its review of the acquired assets and liabilities, certain adjustments to the recorded carrying values may be required. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former Capital Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 31, 2019) through September 30, 2019 . In addition, the table provides unaudited condensed pro forma financial information assuming the Capital Bank acquisition had been completed as of January 1, 2019 for the nine months ended September 30, 2019 and as of January 1, 2018 for the nine months ended September 30, 2018 . The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain accounting policies of the acquired company to the Company’s policies that may have occurred as a result of the integration and consolidation of Capital Bank’s operations. The pro forma information shown reflects adjustments related to certain purchase accounting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects. (in thousands) Capital Bank Actual from February 1, 2019 to September 30, 2019 Sun Actual from February 1, 2018 to September 30, 2018 Pro forma Nine Months Ended September 30, 2019 Pro forma Net interest income $ 12,700 $ 47,619 $ 194,365 $ 199,415 Provision for loan losses 280 884 1,281 2,564 Non-interest income 991 5,654 31,046 28,432 Non-interest expense 11,035 26,150 143,338 172,621 Provision (benefit) for income taxes 499 5,510 15,620 10,423 Net income $ 1,877 $ 20,729 $ 65,172 $ 42,239 Fully diluted earnings per share $ 1.27 $ 0.83 Fair Value Measurement of Assets Assumed and Liabilities Assumed The methods used to determine the fair value of the assets acquired and liabilities assumed in the Sun and Capital Bank acquisitions were as follows. Refer to Note 8, Fair Value Measurements, for a discussion of the fair value hierarchy. Securities The estimated fair values of the securities were calculated utilizing Level 2 inputs. The securities acquired are bought and sold in active markets. Prices for these instruments were obtained through security industry sources that actively participate in the buying and selling of securities. Loans The acquired loan portfolio was valued utilizing Level 3 inputs and included the use of present value techniques employing cash flow estimates and incorporated assumptions that marketplace participants would use in estimating fair values. In instances where reliable market information was not available, the Company used its own assumptions in an effort to determine reasonable fair value. Specifically, the Company utilized three separate fair value analyses which a market participant would employ in estimating the total fair value adjustment. The three separate fair valuation methodologies used were: 1) interest rate loan fair value analysis; 2) general credit fair value adjustment; and 3) specific credit fair value adjustment. To prepare the interest rate fair value analysis, loans were grouped by characteristics such as loan type, term, collateral and rate. Market rates for similar loans were obtained from various external data sources and reviewed by Company management for reasonableness. The average of these rates was used as the fair value interest rate a market participant would utilize. A present value approach was utilized to calculate the interest rate fair value adjustment. The general credit fair value adjustment was calculated using a two part general credit fair value analysis: 1) expected lifetime losses and 2) estimated fair value adjustment for qualitative factors. The expected lifetime losses were calculated using an average of historical losses of the acquired bank. The adjustment related to qualitative factors was impacted by general economic conditions and the risk related to lack of experience with the originator’s underwriting process. To calculate the specific credit fair value adjustment, the Company reviewed the acquired loan portfolio for loans meeting the definition of an impaired loan with deteriorated credit quality. Loans meeting these criteria were reviewed by comparing the contractual cash flows to expected collectible cash flows. The aggregate expected cash flows less the acquisition date fair value resulted in an accretable yield amount which will be recognized over the life of the loans on a level yield basis as an adjustment to yield. Premises and Equipment Fair values are based upon appraisals from independent third parties. In addition to owned properties, Sun operated 21 properties subject to lease agreements, and Capital Bank operated one property subject to a lease agreement. Deposits and Core Deposit Premium Core deposit premium represents the value assigned to non-interest-bearing demand deposits, interest-bearing checking, money market and saving accounts acquired as part of the acquisition. The core deposit premium value represents the future economic benefit, including the present value of future tax benefits, of the potential cost saving from acquiring the core deposits as part of an acquisition compared to the cost of alternative funding sources and is valued utilizing Level 2 inputs. The core deposit premium totaled $11.9 million and $2.7 million for the acquisitions of Sun and Capital Bank, respectively, and is being amortized over its estimated useful life of approximately 10 years using an accelerated method. Time deposits are not considered to be core deposits as they are assumed to have a low expected average life upon acquisition. The fair value of time deposits represents the present value of the expected contractual payments discounted by market rates for similar time deposits and is valued utilizing Level 2 inputs. Borrowings Fair value estimates are based on discounting contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following reconciles shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Weighted average shares outstanding 51,039 48,337 50,792 46,913 Less: Unallocated ESOP shares (484 ) (546 ) (501 ) (401 ) Unallocated incentive award shares and shares held by deferred compensation plan (64 ) (106 ) (49 ) (61 ) Average basic shares outstanding 50,491 47,685 50,242 46,451 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 475 887 588 952 Average diluted shares outstanding 50,966 48,572 50,830 47,403 For the three months ended September 30, 2019 and 2018 , antidilutive stock options of 997,000 and 463,000 , respectively, were excluded from earnings per share calculations. For the nine months ended September 30, 2019 and 2018 , antidilutive stock options of 993,000 and 464,000 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity at September 30, 2019 , and December 31, 2018 , are as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value At September 30, 2019 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 124,050 $ 1,520 $ (119 ) $ 125,451 State and municipal obligations 1,250 1 — 1,251 Total investment securities 125,300 1,521 (119 ) 126,702 Mortgage-backed securities - FNMA 601 5 — 606 Total debt securities available-for-sale $ 125,901 $ 1,526 $ (119 ) $ 127,308 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 9,981 $ 2 $ (2 ) $ 9,981 State and municipal obligations 134,626 1,247 (259 ) 135,614 Corporate debt securities 81,233 915 (3,369 ) 78,779 Total investment securities 225,840 2,164 (3,630 ) 224,374 Mortgage-backed securities: FHLMC 219,047 2,194 (569 ) 220,672 FNMA 259,192 2,566 (503 ) 261,255 GNMA 116,730 1,268 (169 ) 117,829 SBA 2,908 — (74 ) 2,834 Total mortgage-backed securities 597,877 6,028 (1,315 ) 602,590 Total debt securities held-to-maturity $ 823,717 $ 8,192 $ (4,945 ) $ 826,964 Total debt securities $ 949,618 $ 9,718 $ (5,064 ) $ 954,272 At December 31, 2018 Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 100,524 $ 163 $ (963 ) $ 99,724 Mortgage-backed securities - FNMA 998 — (5 ) 993 Total debt securities available-for-sale $ 101,522 $ 163 $ (968 ) $ 100,717 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 14,975 $ — $ (130 ) $ 14,845 State and municipal obligations 123,987 67 (1,697 ) 122,357 Corporate debt securities 66,834 126 (4,984 ) 61,976 Total investment securities 205,796 193 (6,811 ) 199,178 Mortgage-backed securities: FHLMC 237,703 159 (5,110 ) 232,752 FNMA 277,266 753 (6,030 ) 271,989 GNMA 127,611 198 (2,360 ) 125,449 SBA 3,527 — (80 ) 3,447 Total mortgage-backed securities 646,107 1,110 (13,580 ) 633,637 Total debt securities held-to-maturity $ 851,903 $ 1,303 $ (20,391 ) $ 832,815 Total debt securities $ 953,425 $ 1,466 $ (21,359 ) $ 933,532 During the third quarter 2013, the Bank transferred $536.0 million of previously designated available-for-sale securities to a held-to-maturity designation at estimated fair value. The securities transferred had an unrealized net loss of $13.3 million at the time of transfer which continues to be reflected in accumulated other comprehensive loss on the consolidated balance sheet, net of subsequent amortization, which is being recognized over the life of the securities. The carrying value of the debt securities held-to-maturity at September 30, 2019 , and December 31, 2018 , is as follows (in thousands): September 30, 2019 December 31, 2018 Amortized cost $ 823,717 $ 851,903 Net loss on date of transfer from available-for-sale (13,347 ) (13,347 ) Accretion of net unrealized loss on securities reclassified as held-to-maturity 8,883 8,254 Carrying value $ 819,253 $ 846,810 There were no realized gains or losses for the three and nine months ended September 30, 2019 and there were realized gains of $0 and $248,000 on the sale of securities for the three and nine months ended September 30, 2018 . The amortized cost and estimated fair value of investment securities at September 30, 2019 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2019 , corporate debt securities with an amortized cost of $61.0 million and estimated fair value of $58.3 million were callable prior to the maturity date. September 30, 2019 Amortized Cost Estimated Fair Value Less than one year $ 71,705 $ 71,726 Due after one year through five years 190,181 192,486 Due after five years through ten years 75,453 72,747 Due after ten years 13,801 14,117 $ 351,140 $ 351,076 Mortgage-backed securities are excluded from the above table since their effective lives are expected to be shorter than the contractual maturity date due to principal prepayments. The estimated fair value of securities pledged as required security for deposits and for other purposes required by law amounted to $488.7 million and $563.1 million , at September 30, 2019 and December 31, 2018 , respectively, including $65.1 million and $74.1 million at September 30, 2019 and December 31, 2018 , respectively, pledged as collateral for securities sold under agreements to repurchase. The estimated fair value and unrealized losses of debt securities available-for-sale and held-to-maturity at September 30, 2019 and December 31, 2018 , segregated by the duration of the unrealized losses, are as follows (in thousands): At September 30, 2019 Less than 12 months 12 months or longer Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 5,011 $ (9 ) $ 32,363 $ (110 ) $ 37,374 $ (119 ) Total debt securities available-for-sale 5,011 (9 ) 32,363 (110 ) 37,374 (119 ) Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations — — 4,999 (2 ) 4,999 (2 ) State and municipal obligations 22,526 (71 ) 18,348 (188 ) 40,874 (259 ) Corporate debt securities — — 42,660 (3,369 ) 42,660 (3,369 ) Total investment securities 22,526 (71 ) 66,007 (3,559 ) 88,533 (3,630 ) Mortgage-backed securities: FHLMC 13,132 (32 ) 41,799 (537 ) 54,931 (569 ) FNMA 13,475 (31 ) 43,134 (472 ) 56,609 (503 ) GNMA 22,261 (56 ) 24,936 (113 ) 47,197 (169 ) SBA — — 2,834 (74 ) 2,834 (74 ) Total mortgage-backed securities 48,868 (119 ) 112,703 (1,196 ) 161,571 (1,315 ) Total debt securities held-to-maturity 71,394 (190 ) 178,710 (4,755 ) 250,104 (4,945 ) Total debt securities $ 76,405 $ (199 ) $ 211,073 $ (4,865 ) $ 287,478 $ (5,064 ) At December 31, 2018 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 985 $ (3 ) $ 66,438 $ (960 ) $ 67,423 $ (963 ) Mortgage-backed securities - FNMA 993 (5 ) — — 993 (5 ) Total debt securities available-for-sale 1,978 (8 ) 66,438 (960 ) 68,416 (968 ) Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations — — 14,845 (130 ) 14,845 (130 ) State and municipal obligations 2,856 (4 ) 106,073 (1,693 ) 108,929 (1,697 ) Corporate debt securities 2,470 (21 ) 43,059 (4,963 ) 45,529 (4,984 ) Total investment securities 5,326 (25 ) 163,977 (6,786 ) 169,303 (6,811 ) Mortgage-backed securities: FHLMC 46,615 (159 ) 147,763 (4,951 ) 194,378 (5,110 ) FNMA 27,594 (125 ) 185,328 (5,905 ) 212,922 (6,030 ) GNMA 35,221 (535 ) 59,468 (1,825 ) 94,689 (2,360 ) SBA 3,447 (80 ) — — 3,447 (80 ) Total mortgage-backed securities 112,877 (899 ) 392,559 (12,681 ) 505,436 (13,580 ) Total debt securities held-to-maturity 118,203 (924 ) 556,536 (19,467 ) 674,739 (20,391 ) Total debt securities $ 120,181 $ (932 ) $ 622,974 $ (20,427 ) $ 743,155 $ (21,359 ) At September 30, 2019 , the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands): Security Description Amortized Cost Estimated Fair Value Credit Rating Moody’s/ S&P Chase Capital $ 10,000 $ 9,200 Baa1/BBB- Wells Fargo Capital 5,000 4,625 A1/BBB Huntington Capital 5,000 4,450 Baa2/BB+ Keycorp Capital 5,000 4,525 Baa2/BB+ PNC Capital 5,000 4,600 Baa1/BBB- State Street Capital 5,000 4,613 A3/BBB SunTrust Capital 5,000 4,625 Not Rated/BB+ Celgene 1,511 1,508 Baa2/BBB+ Southern Company 1,507 1,505 Baa2/BBB+ BB&T 1,506 1,505 A2/A- AT&T Inc. 1,505 1,504 Baa2/BBB $ 46,029 $ 42,660 At September 30, 2019 , the estimated fair value of each of the above corporate debt securities was below cost. The Company concluded that these corporate debt securities were only temporarily impaired at September 30, 2019 . In concluding that the impairments were only temporary, the Company considered several factors in its analysis. The Company noted that each issuer made all the contractually due payments when required. There were no defaults on principal or interest payments and no interest payments were deferred. Based on management’s analysis of each individual security, the issuers appear to have the ability to meet debt service requirements over the life of the security. Furthermore, the Company does not intend to sell these corporate debt securities and it is more likely than not that the Company will not be required to sell the securities. Historically, the Company has not utilized securities sales as a source of liquidity. The Company’s long range liquidity plans indicate adequate sources of liquidity outside the securities portfolio. The mortgage-backed securities are issued and guaranteed by either the Federal Home Loan Mortgage Corporation (“FHLMC”), the Federal National Mortgage Association (“FNMA”), the Government National Mortgage Association (“GNMA”), or the Small Business Administration (“SBA”), corporations which are chartered by the United States Government and whose debt obligations are typically rated AA+ by one of the internationally-recognized credit rating services. The Company considers the unrealized losses to be the result of changes in interest rates which over time can have both a positive and negative impact on the estimated fair value of the mortgage-backed securities. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost. As a result, the Company concluded that these securities were only temporarily impaired at September 30, 2019 . |
Loans Receivable, Net
Loans Receivable, Net | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Loans Receivable, Net | Loans Receivable, Net Loans receivable, net at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Commercial: Commercial and industrial $ 405,970 $ 304,994 Commercial real estate – owner occupied 786,852 740,375 Commercial real estate – investor 2,220,799 2,015,210 Total commercial 3,413,621 3,060,579 Consumer: Residential real estate 2,234,026 2,044,286 Home equity loans and lines 330,370 353,386 Other consumer 98,835 121,561 Total consumer 2,663,231 2,519,233 6,076,852 5,579,812 Purchased credit impaired (“PCI”) loans 13,281 8,901 Total Loans 6,090,133 5,588,713 Deferred origination costs, net 8,441 7,086 Allowance for loan losses (16,636 ) (16,577 ) Total loans, net $ 6,081,938 $ 5,579,222 An analysis of the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 is as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Balance at beginning of period $ 16,135 $ 16,691 $ 16,577 $ 15,721 Provision charged to operations 305 907 1,281 2,984 Charge-offs (353 ) (891 ) (2,359 ) (2,708 ) Recoveries 549 114 1,137 824 Balance at end of period $ 16,636 $ 16,821 $ 16,636 $ 16,821 The following table presents an analysis of the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 and the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2019 and December 31, 2018 , excluding PCI loans (in thousands): Commercial and Industrial Commercial Real Estate – Owner Occupied Commercial Real Estate – Investor Residential Real Estate Consumer Unallocated Total For the three months ended Allowance for loan losses: Balance at beginning of period $ 1,639 $ 2,868 $ 8,406 $ 1,966 $ 512 $ 744 $ 16,135 Provision (benefit) charged to operations (352 ) 80 711 193 10 (337 ) 305 Charge-offs — (142 ) (57 ) (27 ) (127 ) — (353 ) Recoveries 49 114 292 39 55 — 549 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 For the three months ended Allowance for loan losses: Balance at beginning of period $ 2,080 $ 2,340 $ 9,058 $ 2,126 $ 526 $ 561 $ 16,691 Provision (benefit) charged to operations (520 ) 187 661 578 57 (56 ) 907 Charge-offs (146 ) — (138 ) (535 ) (72 ) — (891 ) Recoveries 28 1 9 57 19 — 114 Balance at end of period $ 1,442 $ 2,528 $ 9,590 $ 2,226 $ 530 $ 505 $ 16,821 For the nine months ended Allowance for loan losses: Balance at beginning of period $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Provision (benefit) charged to operations (406 ) 1,192 26 899 185 (615 ) 1,281 Charge-offs — (663 ) (143 ) (1,221 ) (332 ) — (2,359 ) Recoveries 133 114 699 80 111 — 1,137 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 For the nine months ended Allowance for loan losses: Balance at beginning of period $ 1,801 $ 3,175 $ 7,952 $ 1,804 $ 614 $ 375 $ 15,721 Provision (benefit) charged to operations (238 ) (734 ) 2,706 1,079 41 130 2,984 Charge-offs (202 ) (91 ) (1,239 ) (936 ) (240 ) — (2,708 ) Recoveries 81 178 171 279 115 — 824 Balance at end of period $ 1,442 $ 2,528 $ 9,590 $ 2,226 $ 530 $ 505 $ 16,821 September 30, 2019 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ 547 $ — $ — $ — $ — $ 547 Collectively evaluated for impairment 1,336 2,373 9,352 2,171 450 407 16,089 Total ending allowance balance $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 Loans: Loans individually evaluated for impairment $ 246 $ 6,152 $ 7,975 $ 10,093 $ 3,351 $ — $ 27,817 Loans collectively evaluated for impairment 405,724 780,700 2,212,824 2,223,933 425,854 — 6,049,035 Total ending loan balance $ 405,970 $ 786,852 $ 2,220,799 $ 2,234,026 $ 429,205 $ — $ 6,076,852 Commercial and Industrial Commercial Real Estate – Owner Occupied Commercial Real Estate – Investor Residential Real Estate Consumer Unallocated Total December 31, 2018 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,609 2,277 8,770 2,413 486 1,022 16,577 Total ending allowance balance $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Loans: Loans individually evaluated for impairment $ 1,626 $ 5,395 $ 9,738 $ 10,064 $ 2,974 $ — $ 29,797 Loans collectively evaluated for impairment 303,368 734,980 2,005,472 2,034,222 471,973 — 5,550,015 Total ending loan balance $ 304,994 $ 740,375 $ 2,015,210 $ 2,044,286 $ 474,947 $ — $ 5,579,812 A summary of impaired loans at September 30, 2019 , and December 31, 2018 , is as follows, excluding PCI loans (in thousands): September 30, 2019 December 31, 2018 Impaired loans with no allocated allowance for loan losses $ 25,539 $ 29,797 Impaired loans with allocated allowance for loan losses 2,278 — $ 27,817 $ 29,797 Amount of the allowance for loan losses allocated $ 547 $ — The Company defines an impaired loan as non-accrual commercial real estate, multi-family, land, construction and commercial loans in excess of $250,000 . Impaired loans also include all loans modified as troubled debt restructurings. At September 30, 2019 , the impaired loan portfolio totaled $27.8 million for which there was a specific allocation in the allowance for loan losses of $547,000 . At December 31, 2018 , the impaired loan portfolio totaled $29.8 million for which there was no specific allocation in the allowance for loan losses. The average balance of impaired loans for the three and nine months ended September 30, 2019 were $28.2 million and $30.2 million , respectively, and for the three and nine months ended September 30, 2018 were $32.9 million and $39.2 million , respectively. At September 30, 2019 and December 31, 2018 , impaired loans included troubled debt restructured (“TDR”) loans of $25.1 million and $26.5 million , respectively. The summary of loans individually evaluated for impairment by loan portfolio segment as of September 30, 2019 , and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 , is as follows, excluding PCI loans (in thousands): Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated As of September 30, 2019 With no related allowance recorded: Commercial and industrial $ 268 $ 246 $ — Commercial real estate – owner occupied 3,908 3,874 — Commercial real estate – investor 9,152 7,975 — Residential real estate 10,459 10,093 — Consumer 3,730 3,351 — $ 27,517 $ 25,539 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied 2,415 2,278 547 Commercial real estate – investor — — — Residential real estate — — — Consumer — — — $ 2,415 $ 2,278 $ 547 As of December 31, 2018 With no related allowance recorded: Commercial and industrial $ 1,750 $ 1,626 $ — Commercial real estate – owner occupied 5,413 5,395 — Commercial real estate – investor 12,633 9,738 — Residential real estate 10,441 10,064 — Consumer 3,301 2,974 — $ 33,538 $ 29,797 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied — — — Commercial real estate – investor — — — Residential real estate — — — Consumer — — — $ — $ — $ — Three Months Ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 247 $ 1 $ 982 $ 69 Commercial real estate – owner occupied 4,290 6 5,484 75 Commercial real estate – investor 8,072 85 12,191 102 Residential real estate 10,136 128 10,741 119 Consumer 3,362 42 2,782 33 $ 26,107 $ 262 $ 32,180 $ 398 With an allowance recorded: Commercial and industrial $ — $ — $ 736 $ — Commercial real estate – owner occupied 2,086 70 — — Commercial real estate – investor — — — — Residential real estate — — — — Consumer — — — — $ 2,086 $ 70 $ 736 $ — Nine Months Ended September 30, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial and industrial $ 593 $ 5 $ 906 $ 85 Commercial real estate – owner occupied 4,221 128 8,978 226 Commercial real estate – investor 9,869 243 14,259 304 Residential real estate 10,091 399 10,873 356 Consumer 3,216 136 2,629 116 $ 27,990 $ 911 $ 37,645 $ 1,087 With an allowance recorded: Commercial and industrial $ — $ — $ 736 $ — Commercial real estate – owner occupied 2,168 106 — — Commercial real estate – investor — — 838 — Residential real estate — — — — Consumer — — — — $ 2,168 $ 106 $ 1,574 $ — The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of September 30, 2019 and December 31, 2018 , excluding PCI loans (in thousands): September 30, 2019 December 31, 2018 Commercial and industrial $ 207 $ 1,587 Commercial real estate – owner occupied 4,537 501 Commercial real estate – investor 4,073 5,024 Residential real estate 5,953 7,389 Consumer 2,683 2,914 $ 17,453 $ 17,415 At September 30, 2019 , there were no commitments to lend additional funds to borrowers whose loans are in non-accrual status. The following table presents the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by loan portfolio segment, excluding PCI loans (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Total September 30, 2019 Commercial and industrial $ 483 $ — $ 207 $ 690 $ 405,280 $ 405,970 Commercial real estate – owner occupied 2,107 2,732 984 5,823 781,029 786,852 Commercial real estate – investor 1,489 2,005 3,939 7,433 2,213,366 2,220,799 Residential real estate 9,619 2,775 2,409 14,803 2,219,223 2,234,026 Consumer 926 429 2,297 3,652 425,553 429,205 $ 14,624 $ 7,941 $ 9,836 $ 32,401 $ 6,044,451 $ 6,076,852 December 31, 2018 Commercial and industrial $ — $ — $ — $ — $ 304,994 $ 304,994 Commercial real estate – owner occupied 5,104 236 197 5,537 734,838 740,375 Commercial real estate – investor 3,979 2,503 2,461 8,943 2,006,267 2,015,210 Residential real estate 10,199 4,979 4,451 19,629 2,024,657 2,044,286 Consumer 2,200 955 2,464 5,619 469,328 474,947 $ 21,482 $ 8,673 $ 9,573 $ 39,728 $ 5,540,084 $ 5,579,812 At September 30, 2019 and December 31, 2018 , loans in the amount of $17.5 million and $17.4 million , respectively, were three or more months delinquent or in the process of foreclosure and the Company was not accruing interest income on these loans. At September 30, 2019 , there were no loans that were ninety days or greater past due and still accruing interest. Non-accrual loans include both smaller balance homogenous loans that are collectively evaluated for impairment and individually classified impaired loans. The Company categorizes all commercial and commercial real estate loans, except for small business loans, into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation and current economic trends, among other factors. The Company uses the following definitions for risk ratings: Pass : Loans classified as Pass are well protected by the paying capacity and net worth of the borrower. Special Mention : Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date. Substandard : Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Doubtful : Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. As of September 30, 2019 and December 31, 2018 , and based on the most recent analysis performed, the risk category of loans by loan portfolio segment follows, excluding PCI loans (in thousands) is as follows: Pass Special Mention Substandard Doubtful Total September 30, 2019 Commercial and industrial $ 391,823 $ 1,785 $ 12,362 $ — $ 405,970 Commercial real estate – owner occupied 759,858 3,590 23,404 — 786,852 Commercial real estate – investor 2,152,925 52,405 15,469 — 2,220,799 $ 3,304,606 $ 57,780 $ 51,235 $ — $ 3,413,621 December 31, 2018 Commercial and industrial $ 291,265 $ 2,777 $ 10,952 $ — $ 304,994 Commercial real estate – owner occupied 706,825 3,000 30,550 — 740,375 Commercial real estate – investor 1,966,495 23,727 24,988 — 2,015,210 $ 2,964,585 $ 29,504 $ 66,490 $ — $ 3,060,579 For residential and consumer loans, the Company evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in residential and consumer loans based on payment activity as of September 30, 2019 and December 31, 2018 , excluding PCI loans (in thousands): Residential Consumer September 30, 2019 Performing $ 2,228,073 $ 426,522 Non-performing 5,953 2,683 $ 2,234,026 $ 429,205 December 31, 2018 Performing $ 2,036,897 $ 472,033 Non-performing 7,389 2,914 $ 2,044,286 $ 474,947 The recorded investment in residential and consumer loans collateralized by residential real estate, which are in the process of foreclosure, amounted to $2.1 million at September 30, 2019 . The amount of foreclosed residential real estate property held by the Company was $81,000 at September 30, 2019 . The Company classifies certain loans as troubled debt restructurings when credit terms to a borrower in financial difficulty are modified. The modifications may include a reduction in rate, an extension in term, the capitalization of past due amounts and/or the restructuring of scheduled principal payments. One-to-four family and consumer loans where the borrower’s debt is discharged in a bankruptcy filing are also considered troubled debt restructurings. For these loans, the Bank retains its security interest in the real estate collateral. Included in the non-accrual loan total at September 30, 2019 , and December 31, 2018 , were $6.2 million and $3.6 million , respectively, of troubled debt restructurings. At September 30, 2019 , and December 31, 2018 , the Company had $547,000 and $0 , respectively, of specific reserves allocated to loans that are classified as troubled debt restructurings. Non-accrual loans which become troubled debt restructurings are generally returned to accrual status after nine months of performance. In addition to the troubled debt restructurings included in non-accrual loans, the Company also has loans classified as accruing troubled debt restructurings at September 30, 2019 and December 31, 2018 , which totaled $19.0 million and $22.9 million , respectively. Troubled debt restructurings are considered in the allowance for loan losses similar to other impaired loans. The following table presents information about troubled debt restructurings which occurred during the three and nine months ended September 30, 2019 and 2018 , and troubled debt restructurings modified within the previous year and which defaulted during the three and nine months ended September 30, 2019 and 2018 (dollars in thousands): Number of Loans Pre-modification Recorded Investment Post-modification Recorded Investment Three months ended September 30, 2019 Troubled Debt Restructurings: Consumer 1 $ 54 $ 54 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Post-modification Nine months ended September 30, 2019 Troubled Debt Restructurings: Consumer 5 $ 496 $ 516 Residential real estate 5 921 972 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Recorded Investment Post-modification Recorded Investment Three Months Ended September 30, 2018 Troubled Debt Restructurings: Commercial real estate - owner occupied 1 $ 49 $ 50 Commercial real estate – investor 1 171 210 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Commercial real estate – investor 1 $ 2,820 Consumer 1 30 Number of Loans Pre-modification Recorded Investment Post-modification Recorded Investment Nine months ended September 30, 2018 Troubled Debt Restructurings: Commercial and industrial 2 $ 496 $ 502 Commercial real estate - owner occupied 1 49 50 Commercial real estate – investor 3 1,395 1,435 Residential real estate 2 257 270 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Commercial real estate – investor 1 $ 2,820 Consumer 1 30 As part of the Capital Bank acquisition, PCI loans were acquired at a discount primarily due to deteriorated credit quality. PCI loans are accounted for at fair value, based upon the present value of expected future cash flows, with no related allowance for loan losses. The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Capital Bank at January 31, 2019 (in thousands): Capital January 31, 2019 Contractually required principal and interest $ 6,877 Contractual cash flows not expected to be collected (non-accretable discount) (769 ) Expected cash flows to be collected at acquisition 6,108 Interest component of expected cash flows (accretable yield) (691 ) Fair value of acquired loans $ 5,417 The following table summarizes the changes in accretable yield for PCI loans during the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning balance $ 3,183 $ 2,300 $ 3,630 $ 161 Acquisition — — 691 2,646 Accretion (599 ) (368 ) (1,783 ) (1,459 ) Reclassification from non-accretable difference 69 470 115 1,054 Ending balance $ 2,653 $ 2,402 $ 2,653 $ 2,402 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The major types of deposits at September 30, 2019 and December 31, 2018 were as follows (in thousands): Type of Account September 30, 2019 December 31, 2018 Non-interest-bearing $ 1,406,194 $ 1,151,362 Interest-bearing checking 2,400,331 2,350,106 Money market deposit 593,457 569,680 Savings 901,168 877,177 Time deposits 919,705 866,244 Total deposits $ 6,220,855 $ 5,814,569 Included in time deposits at September 30, 2019 and December 31, 2018 , is $143.2 million and $124.3 million , respectively, in deposits of $250,000 and over. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Adopted 2019 In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach may be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements On July 30, 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements”, which provided an option to apply the transition provisions of the new standard at the adoption date rather than the earliest comparative period presented. Additionally, the ASU provides a practical expedient permitting lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company adopted this ASU in its entirety on January 1, 2019, and has appropriately reflected the changes throughout the Company’s consolidated financial statements. The Company elected to apply the new standard as of the adoption date and will not restate comparative prior periods. Additionally, the Company elected to apply the package of practical expedients standard under which the Company need not reassess whether any expired or existing contracts are leases or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The adoption of this ASU resulted in the recognition of a right-of-use asset of $20.6 million in other assets and a lease liability of $20.7 million in other liabilities. Refer to Note 10, Leases, for additional information. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” This ASU requires the amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. This ASU does not impact securities held as a discount, as the discount continues to be amortized to the contractual maturity. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this update did not have an impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. As a result, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Current GAAP contains limitations on how an entity can designate the hedged risk in certain cash flow and fair value hedging relationships. To address those current limitations, the amendments in this ASU permit hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk. In addition, the amendments in this ASU change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption was permitted. The Company does not enter into derivatives that are designated as hedging instruments and as such, the adoption of this ASU did not have an impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the newly enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. The Company has early adopted ASU 2018-02 for the year ended December 31, 2017, and has elected not to reclassify the income tax effects of the Tax Reform from accumulated other comprehensive loss to retained earnings. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company’s CECL implementation efforts are continuing to focus on model validation, developing new disclosures, establishing formal policies and procedures and other governance and control documentation. Based on the Company’s portfolio balances and forecasted economic conditions as of September 30, 2019, management believes the adoption of the CECL standard could result in an increase in the current reserves of approximately 20% to 40% , as compared to the Company’s current reserve levels of $25.1 million (including non-accretable credit marks on PCI loans). This preliminary estimate is contingent upon continued testing and refinement of the model, methodologies and judgments utilized to determine the estimate. The actual impact of the adoption will be dependent upon the portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Additionally, the preliminary estimate does not incorporate the impact of the anticipated mergers with Country Bank Holding Company Inc. and Two River Bancorp, which are expected to close during the first quarter of 2020. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” This ASU intends to simplify the subsequent measurement of goodwill, eliminating Step 2 from the goodwill impairment test. Instead, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU No. 2017-04 is effective for fiscal years beginning after December 15, 2019; early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU updates the disclosure requirements on Fair Value measurements by 1) removing: the disclosures for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements; 2) modifying: disclosures for timing of liquidation of an investee’s assets and disclosures for uncertainty in measurement as of reporting date; and 3) adding: disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring level 3 fair value measurements and disclosures for the range and weighted average of the significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted to any removed or modified disclosures and delay adoption of additional disclosures until the effective date. With the exception of the following, which should be applied prospectively, disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement, all other changes should be applied retrospectively to all periods presented upon the effective date. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. A fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability or in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or the most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. The Company uses valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability and developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability and developed based on the best information available in the circumstances. In that regard, a fair value hierarchy has been established for valuation inputs that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. Movements within the fair value hierarchy are recognized at the end of the applicable reporting period. There were no transfers between the levels of the fair value hierarchy for the three and nine months ended September 30, 2019 . The fair value hierarchy is as follows: Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlations or other means. Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. Assets and Liabilities Measured at Fair Value A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Debt Securities Available-For-Sale Debt securities classified as available-for-sale are reported at fair value. Fair value for these debt securities is determined using inputs other than quoted prices that are based on market observable information (Level 2). Level 2 debt securities are priced through third-party pricing services or security industry sources that actively participate in the buying and selling of securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific securities, but comparing the debt securities to benchmark or comparable debt securities. Equity Investments Equity investments are reported at fair value. Fair value for these investments is determined using a quoted price in an active market or exchange (Level 1). Interest Rate Swaps The Company’s interest rate swaps are reported at fair value utilizing models provided by an independent, third-party and observable market data. When entering into an interest rate swap agreement, the Company is exposed to fair value changes due to interest rate movements, and also the potential nonperformance of our contract counterparty. Other Real Estate Owned and Impaired Loans Other real estate owned and loans measured for impairment based on the fair value of the underlying collateral are recorded at estimated fair value, less estimated selling costs. Fair value is based on independent appraisals. The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Fair Value Measurements at Reporting Date Using: Total Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs September 30, 2019 Items measured on a recurring basis: Debt securities available-for-sale $ 127,308 $ — $ 127,308 $ — Equity investments 10,145 10,145 — — Interest rate swap asset 14,477 — 14,477 — Interest rate swap liability (15,170 ) — (15,170 ) — Items measured on a non-recurring basis: Other real estate owned 294 — — 294 Loans measured for impairment based on the fair value of the underlying collateral 8,983 — — 8,983 December 31, 2018 Items measured on a recurring basis: Debt securities available-for-sale $ 100,717 $ — $ 100,717 $ — Equity investments 9,655 9,655 — — Interest rate swap asset 1,722 — 1,722 — Interest rate swap liability (1,813 ) — (1,813 ) — Items measured on a non-recurring basis: Other real estate owned 1,381 — — 1,381 Loans measured for impairment based on the fair value of the underlying collateral 11,639 — — 11,639 Assets and Liabilities Disclosed at Fair Value A description of the valuation methodologies used for assets and liabilities disclosed at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below. Cash and Due from Banks For cash and due from banks, the carrying amount approximates fair value. Debt Securities Held-to-Maturity Debt securities classified as held-to-maturity are carried at amortized cost, as the Company has the positive intent and ability to hold these debt securities to maturity. The Company determines the fair value of the debt securities utilizing Level 1, Level 2 and, infrequently, Level 3 inputs. In general, fair value is based upon quoted market prices, where available. Most of the Company’s investment and mortgage-backed securities, however, are fixed income instruments that are not quoted on an exchange, but are bought and sold in active markets. Prices for these instruments are obtained through third-party pricing vendors or security industry sources that actively participate in the buying and selling of debt securities. Prices obtained from these sources include market quotations and matrix pricing. Matrix pricing is a mathematical technique used principally to value certain debt securities without relying exclusively on quoted prices for the specific debt securities, but comparing the debt securities to benchmark or comparable debt securities. Management’s policy is to obtain and review all available documentation from the third-party pricing service relating to their fair value determinations, including their methodology and summary of inputs. Management reviews this documentation, makes inquiries of the third-party pricing service and decides as to the level of the valuation inputs. Based on the Company’s review of the available documentation from the third-party pricing service, management concluded that Level 2 inputs were utilized for all securities except for certain state and municipal obligations known as bond anticipation notes (“BANs”) where management utilized Level 3 inputs. Restricted Equity Investments The fair value for Federal Home Loan Bank of New York and Federal Reserve Bank stock is its carrying value since this is the amount for which it could be redeemed. There is no active market for this stock and the Company is required to maintain a minimum investment as stipulated by the respective agencies. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type such as residential mortgage, consumer and commercial. Each loan category is further segmented into fixed and adjustable rate interest terms. Fair value of performing and non-performing loans was estimated by discounting the future cash flows, net of estimated prepayments, at a rate for which similar loans would be originated to new borrowers with similar terms. In accordance with the prospective adoption of ASU 2016-01, the fair value of loans was measured using the exit price notion. Deposits Other than Time Deposits The fair value of deposits with no stated maturity, such as non-interest-bearing demand deposits, savings, and interest-bearing checking accounts and money market accounts is, by definition, equal to the amount payable on demand. The related insensitivity of the majority of these deposits to interest rate changes creates a significant inherent value which is not reflected in the fair value reported. Time Deposits The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. Securities Sold Under Agreements to Repurchase with Retail Customers Fair value approximates the carrying amount as these borrowings are payable on demand and the interest rate adjusts monthly. Borrowed Funds Fair value estimates are based on discounting contractual cash flows using rates which approximate the rates offered for borrowings of similar remaining maturities. The book value and estimated fair value of the Bank’s significant financial instruments not recorded at fair value as of September 30, 2019 and December 31, 2018 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Value Level 1 Inputs Level 2 Inputs Level 3 Inputs September 30, 2019 Financial Assets: Cash and due from banks $ 140,901 $ 140,901 $ — $ — Debt securities held-to-maturity 819,253 — 819,916 7,048 Restricted equity investments 62,095 — — 62,095 Loans receivable, net and loans held-for-sale 6,082,048 — — 6,092,323 Financial Liabilities: Deposits other than time deposits 5,301,150 — 5,301,150 — Time deposits 919,705 — 919,663 — Federal Home Loan Bank advances and other borrowings 608,816 — 619,970 — Securities sold under agreements to repurchase with retail customers 65,067 65,067 — — December 31, 2018 Financial Assets: Cash and due from banks $ 120,792 $ 120,792 $ — $ — Debt securities held-to-maturity 846,810 — 830,999 1,816 Restricted equity investments 56,784 — — 56,784 Loans receivable, net and loans held-for-sale 5,579,222 — — 5,474,306 Financial Liabilities: Deposits other than time deposits 4,948,325 — 4,948,325 — Time deposits 866,244 — 853,678 — Federal Home Loan Bank advances and other borrowings 548,913 — 554,692 — Securities sold under agreements to repurchase with retail customers 61,760 61,760 — — Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because a limited market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other significant unobservable inputs. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial assets or liabilities include premises and equipment, Bank Owned Life Insurance, deferred tax assets and goodwill. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Derivatives, Hedging Activities
Derivatives, Hedging Activities, and Other Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives, Hedging Activities, and Other Financial Instruments | Derivatives, Hedging Activities and Other Financial Instruments The Company enters into derivative financial instruments which involve, to varying degrees, interest rate, market and credit risk. The Company manages these risks as part of its asset and liability management process and through credit policies and procedures, seeking to minimize counterparty credit risk by establishing credit limits and collateral agreements. The Company utilizes certain derivative financial instruments to enhance its ability to manage interest rate risk that exists as part of its ongoing business operations. The derivative financial instruments entered into by the Company are an economic hedge of a derivative offering to Bank customers. The Company does not use derivative financial instruments for trading purposes. Customer Derivatives – Interest Rate Swaps The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. Under these agreements, the Company enters into a variable-rate loan agreement with a customer in addition to an interest rate swap agreement, which serves to effectively swap the customer’s variable-rate loan into a fixed-rate loan. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB Accounting Standards Codification (“ASC”) Topic 815, Derivatives and Hedging, and are marked to market through earnings. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820, Fair Value Measurements. The Company recognized losses of $407,000 and $602,000 in other income resulting from fair value adjustments for the three and nine months ended September 30, 2019 , respectively, as compared to losses of $78,000 and $76,000 during the three and nine months ended September 30, 2018 , respectively. The notional amount of derivatives not designated as hedging instruments was $249.3 million and $59.3 million at September 30, 2019 and December 31, 2018 , respectively. The table below presents the fair value of derivatives not designated as hedging instruments as well as their location on the consolidated statements of financial condition (in thousands): Fair Value Balance Sheet Location September 30, 2019 December 31, 2018 Other assets $ 14,477 $ 1,722 Other liabilities 15,170 1,813 Credit risk-related Contingent Features The Company is a party to International Swaps and Derivatives Association agreements with third party broker-dealers that require a minimum dollar transfer amount upon a margin call. This requirement is dependent on certain specified credit measures. The amount of collateral posted with third parties was $16.8 million and $4.1 million at September 30, 2019 and December 31, 2018 , respectively. The amount of collateral posted with third parties is deemed to be sufficient to collateralize both the fair market value change as well as any additional amounts that may be required as a result of a change in the specified credit measures. The aggregate fair value of all derivative financial instruments in a liability position with credit measure contingencies and entered into with third parties was $15.2 million and $1.8 million at September 30, 2019 and December 31, 2018 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Leases (Topic 842). For the Company, Leases (Topic 842) primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, and therefore, were not previously included on the consolidated statements of financial condition. As part of the adoption of Leases (Topic 842), operating lease agreements are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease (previously referred to as capital leases), which was acquired in the Sun acquisition and has a lease term through 2029. This lease was previously required to be recorded on the Company’s consolidated statements of financial condition. As such, the adoption of Leases (Topic 842) did not have a material impact on the accounting for this lease. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): September 30, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 19,627 Finance lease ROU asset Premises and equipment, net 1,575 Total Lease ROU Asset $ 21,202 Lease Liabilities Operating lease liability Other liabilities $ 19,779 Finance lease liability Other borrowings 1,999 Total Lease Liability $ 21,778 The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, Leases (Topic 842) requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception. September 30, 2019 Weighted-Average Remaining Lease Term Operating leases 9.61 years Finance lease 9.85 years Weighted-Average Discount Rate Operating leases 3.43 % Finance lease 5.63 % The following table represents lease expenses and other lease information (in thousands): Three Months Ended Nine Months Ended Lease Expense Operating Lease Expense $ 995 $ 2,963 Finance Lease Expense: Amortization of ROU assets 41 234 Interest on lease liabilities (1) 29 147 Total $ 1,065 $ 3,344 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 969 $ 2,834 Operating cash flows from finance leases 29 147 Financing cash flows from finance leases 46 217 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of September 30, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2020 $ 295 $ 3,646 2021 295 3,301 2022 295 2,980 2023 295 2,313 2024 295 1,902 Thereafter 1,016 9,633 Total $ 2,491 $ 23,775 Less: Imputed Interest (492 ) (3,996 ) Total Lease Liabilities $ 1,999 $ 19,779 |
Leases | Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02, “Leases (Topic 842)” and all subsequent ASUs that modified Leases (Topic 842). For the Company, Leases (Topic 842) primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. The Company’s leases are comprised of real estate property for branches, ATM locations and office space with terms extending through 2050. The majority of the Company’s leases are classified as operating leases, and therefore, were not previously included on the consolidated statements of financial condition. As part of the adoption of Leases (Topic 842), operating lease agreements are required to be recognized on the consolidated statements of financial condition as a right-of-use (“ROU”) asset and a corresponding lease liability. The Company has one existing finance lease (previously referred to as capital leases), which was acquired in the Sun acquisition and has a lease term through 2029. This lease was previously required to be recorded on the Company’s consolidated statements of financial condition. As such, the adoption of Leases (Topic 842) did not have a material impact on the accounting for this lease. The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): September 30, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 19,627 Finance lease ROU asset Premises and equipment, net 1,575 Total Lease ROU Asset $ 21,202 Lease Liabilities Operating lease liability Other liabilities $ 19,779 Finance lease liability Other borrowings 1,999 Total Lease Liability $ 21,778 The calculated amount of the ROU assets and lease liabilities are impacted by the lease term and the discount rate used to calculate the present value of the minimum lease payments. Lease agreements often include one or more options to renew the lease at the Company’s discretion. If the exercise of a renewal option is considered to be reasonably certain, the Company includes the extended term in the calculation of the ROU asset and lease liability. For the discount rate, Leases (Topic 842) requires the Company to use the rate implicit in the lease, provided the rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate, at lease inception, over a similar term. For operating leases existing prior to January 1, 2019, the Company used the incremental borrowing rate for the remaining lease term as of January 1, 2019. For the finance lease, the Company utilized its incremental borrowing rate at lease inception. September 30, 2019 Weighted-Average Remaining Lease Term Operating leases 9.61 years Finance lease 9.85 years Weighted-Average Discount Rate Operating leases 3.43 % Finance lease 5.63 % The following table represents lease expenses and other lease information (in thousands): Three Months Ended Nine Months Ended Lease Expense Operating Lease Expense $ 995 $ 2,963 Finance Lease Expense: Amortization of ROU assets 41 234 Interest on lease liabilities (1) 29 147 Total $ 1,065 $ 3,344 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 969 $ 2,834 Operating cash flows from finance leases 29 147 Financing cash flows from finance leases 46 217 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of September 30, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2020 $ 295 $ 3,646 2021 295 3,301 2022 295 2,980 2023 295 2,313 2024 295 1,902 Thereafter 1,016 9,633 Total $ 2,491 $ 23,775 Less: Imputed Interest (492 ) (3,996 ) Total Lease Liabilities $ 1,999 $ 19,779 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Adopted 2019 In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842).” This ASU requires all lessees to recognize a lease liability and a right-of-use asset, measured at the present value of the future minimum lease payments, at the lease commencement date. Lessor accounting remains largely unchanged under the new guidance. The guidance is effective for fiscal years beginning after December 15, 2018, including interim reporting periods within that reporting period, with early adoption permitted. A modified retrospective approach may be applied for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements On July 30, 2018, the FASB issued ASU 2018-11, “Leases (Topic 842) Targeted Improvements”, which provided an option to apply the transition provisions of the new standard at the adoption date rather than the earliest comparative period presented. Additionally, the ASU provides a practical expedient permitting lessors to not separate non-lease components from the associated lease component if certain conditions are met. The Company adopted this ASU in its entirety on January 1, 2019, and has appropriately reflected the changes throughout the Company’s consolidated financial statements. The Company elected to apply the new standard as of the adoption date and will not restate comparative prior periods. Additionally, the Company elected to apply the package of practical expedients standard under which the Company need not reassess whether any expired or existing contracts are leases or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. The adoption of this ASU resulted in the recognition of a right-of-use asset of $20.6 million in other assets and a lease liability of $20.7 million in other liabilities. Refer to Note 10, Leases, for additional information. In March 2017, the FASB issued ASU 2017-08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities.” This ASU requires the amortization of premiums to the earliest call date on debt securities with call features that are explicit, noncontingent and callable at fixed prices and on preset dates. This ASU does not impact securities held as a discount, as the discount continues to be amortized to the contractual maturity. The guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this update did not have an impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities.” The amendments in this ASU was issued to better align an entity’s risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. As a result, the amendments expand and refine hedge accounting for both nonfinancial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. Current GAAP contains limitations on how an entity can designate the hedged risk in certain cash flow and fair value hedging relationships. To address those current limitations, the amendments in this ASU permit hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk. In addition, the amendments in this ASU change the guidance for designating fair value hedges of interest rate risk and for measuring the change in fair value of the hedged item in fair value hedges of interest rate risk. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption was permitted. The Company does not enter into derivatives that are designated as hedging instruments and as such, the adoption of this ASU did not have an impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This ASU was issued to address a narrow-scope financial reporting issue that arose as a result of the enactment of the Tax Cuts and Jobs Act (“Tax Reform”) on December 22, 2017. The objective of ASU 2018-02 is to address the tax effects of items within accumulated other comprehensive income (referred to as “stranded tax effects”) that do not reflect the appropriate tax rate enacted in the Tax Reform. As a result, the ASU 2018-02 allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate. The amount of the reclassification would be the difference between the historical corporate income tax rate of 35 percent and the newly enacted corporate income tax rate of 21 percent. ASU 2018-02 is effective for fiscal years beginning after December 15, 2018, with early adoption permitted, including adoption in an interim period. The amendments in this ASU may be applied retrospectively to each period in which the effect of the change in the U.S. Federal corporate income tax rate in the Tax Reform is recognized. The Company has early adopted ASU 2018-02 for the year ended December 31, 2017, and has elected not to reclassify the income tax effects of the Tax Reform from accumulated other comprehensive loss to retained earnings. Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “Measurement of Credit Losses on Financial Instruments.” This ASU significantly changes how entities will measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model. The new model, referred to as the current expected credit loss (“CECL”) model, will apply to: (1) financial assets subject to credit losses and measured at amortized cost, and (2) certain off-balance sheet credit exposures. This includes, but is not limited to, loans, leases, held-to-maturity securities, loan commitments, and financial guarantees. The CECL model does not apply to available-for-sale (“AFS”) debt securities. For AFS debt securities with unrealized losses, entities will measure credit losses in a manner similar to what they do today, except that the losses will be recognized as allowances rather than reductions in the amortized cost of the securities. As a result, entities will recognize improvements to estimated credit losses immediately in earnings rather than as interest income over time, as they do today. The ASU also simplifies the accounting model for purchased credit-impaired debt securities and loans. ASU 2016-13 also expands the disclosure requirements regarding an entity’s assumptions, models, and methods for estimating the allowance for loan and lease losses. In addition, entities will need to disclose the amortized cost balance for each class of financial asset by credit quality indicator, disaggregated by the year of origination. ASU No. 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019; early adoption is permitted for interim and annual reporting periods beginning after December 15, 2018. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective (i.e., modified retrospective approach). The Company’s CECL implementation efforts are continuing to focus on model validation, developing new disclosures, establishing formal policies and procedures and other governance and control documentation. Based on the Company’s portfolio balances and forecasted economic conditions as of September 30, 2019, management believes the adoption of the CECL standard could result in an increase in the current reserves of approximately 20% to 40% , as compared to the Company’s current reserve levels of $25.1 million (including non-accretable credit marks on PCI loans). This preliminary estimate is contingent upon continued testing and refinement of the model, methodologies and judgments utilized to determine the estimate. The actual impact of the adoption will be dependent upon the portfolio composition and credit quality at the adoption date, as well as economic conditions and forecasts at that time. Additionally, the preliminary estimate does not incorporate the impact of the anticipated mergers with Country Bank Holding Company Inc. and Two River Bancorp, which are expected to close during the first quarter of 2020. In January 2017, the FASB issued ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment.” This ASU intends to simplify the subsequent measurement of goodwill, eliminating Step 2 from the goodwill impairment test. Instead, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge by which the carrying amount exceeds the reporting unit’s fair value; however the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. The ASU also eliminates the requirement for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. ASU No. 2017-04 is effective for fiscal years beginning after December 15, 2019; early adoption is permitted for annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU updates the disclosure requirements on Fair Value measurements by 1) removing: the disclosures for transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements; 2) modifying: disclosures for timing of liquidation of an investee’s assets and disclosures for uncertainty in measurement as of reporting date; and 3) adding: disclosures for changes in unrealized gains and losses included in other comprehensive income for recurring level 3 fair value measurements and disclosures for the range and weighted average of the significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 is effective for fiscal years beginning after December 15, 2019, with early adoption permitted to any removed or modified disclosures and delay adoption of additional disclosures until the effective date. With the exception of the following, which should be applied prospectively, disclosures relating to changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the disclosures for uncertainty measurement, all other changes should be applied retrospectively to all periods presented upon the effective date. The adoption of this update will not have a material impact on the Company’s consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Acquisition [Line Items] | |
Business Acquisition, Pro Forma Information | The following table presents financial information regarding the former Capital Bank operations included in the Consolidated Statements of Income from the date of the acquisition (January 31, 2019) through September 30, 2019 . In addition, the table provides unaudited condensed pro forma financial information assuming the Capital Bank acquisition had been completed as of January 1, 2019 for the nine months ended September 30, 2019 and as of January 1, 2018 for the nine months ended September 30, 2018 . The table below has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the acquisition occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings or the impact of conforming certain accounting policies of the acquired company to the Company’s policies that may have occurred as a result of the integration and consolidation of Capital Bank’s operations. The pro forma information shown reflects adjustments related to certain purchase accounting fair value adjustments; amortization of core deposit and other intangibles; and related income tax effects. (in thousands) Capital Bank Actual from February 1, 2019 to September 30, 2019 Sun Actual from February 1, 2018 to September 30, 2018 Pro forma Nine Months Ended September 30, 2019 Pro forma Net interest income $ 12,700 $ 47,619 $ 194,365 $ 199,415 Provision for loan losses 280 884 1,281 2,564 Non-interest income 991 5,654 31,046 28,432 Non-interest expense 11,035 26,150 143,338 172,621 Provision (benefit) for income taxes 499 5,510 15,620 10,423 Net income $ 1,877 $ 20,729 $ 65,172 $ 42,239 Fully diluted earnings per share $ 1.27 $ 0.83 |
Sun Bancorp, Inc. | |
Business Acquisition [Line Items] | |
Summary of Assets Acquired and Liabilities Assumed and Their Initial Fair Value Estimates | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Sun, net of the total consideration paid (in thousands): At January 31, 2018 Fair Value Total Purchase Price: $ 474,930 Assets acquired: Cash and cash equivalents $ 68,632 Securities 254,522 Loans 1,517,345 Accrued interest receivable 5,621 Bank Owned Life Insurance 85,238 Deferred tax asset 57,597 Other assets 43,202 Core deposit intangible 11,897 Total assets acquired 2,044,054 Liabilities assumed: Deposits (1,616,073 ) Borrowings (127,727 ) Other liabilities (13,242 ) Total liabilities assumed (1,757,042 ) Net assets acquired $ 287,012 Goodwill recorded in the merger $ 187,918 |
Capital Bank | |
Business Acquisition [Line Items] | |
Summary of Assets Acquired and Liabilities Assumed and Their Initial Fair Value Estimates | The following table summarizes the estimated fair values of the assets acquired and the liabilities assumed at the date of the acquisition for Capital Bank, net of total consideration paid (in thousands): At January 31, 2019 Estimated Total Purchase Price: $ 76,834 Assets acquired: Cash and cash equivalents $ 59,748 Securities 103,775 Loans 307,778 Accrued interest receivable 1,390 Bank Owned Life Insurance 10,460 Deferred tax asset 3,829 Other assets 5,107 Core deposit intangible 2,662 Total assets acquired 494,749 Liabilities assumed: Deposits (449,018 ) Other liabilities (5,015 ) Total liabilities assumed (454,033 ) Net assets acquired $ 40,716 Goodwill recorded in the merger $ 36,118 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Shares Outstanding for Basic and Diluted Earnings per Share | The following reconciles shares outstanding for basic and diluted earnings per share for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Weighted average shares outstanding 51,039 48,337 50,792 46,913 Less: Unallocated ESOP shares (484 ) (546 ) (501 ) (401 ) Unallocated incentive award shares and shares held by deferred compensation plan (64 ) (106 ) (49 ) (61 ) Average basic shares outstanding 50,491 47,685 50,242 46,451 Add: Effect of dilutive securities: Incentive awards and shares held by deferred compensation plan 475 887 588 952 Average diluted shares outstanding 50,966 48,572 50,830 47,403 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity | The amortized cost and estimated fair value of debt securities available-for-sale and held-to-maturity at September 30, 2019 , and December 31, 2018 , are as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value At September 30, 2019 Debt securities available-for-sale: Investment securities: U.S. government and agency obligations $ 124,050 $ 1,520 $ (119 ) $ 125,451 State and municipal obligations 1,250 1 — 1,251 Total investment securities 125,300 1,521 (119 ) 126,702 Mortgage-backed securities - FNMA 601 5 — 606 Total debt securities available-for-sale $ 125,901 $ 1,526 $ (119 ) $ 127,308 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 9,981 $ 2 $ (2 ) $ 9,981 State and municipal obligations 134,626 1,247 (259 ) 135,614 Corporate debt securities 81,233 915 (3,369 ) 78,779 Total investment securities 225,840 2,164 (3,630 ) 224,374 Mortgage-backed securities: FHLMC 219,047 2,194 (569 ) 220,672 FNMA 259,192 2,566 (503 ) 261,255 GNMA 116,730 1,268 (169 ) 117,829 SBA 2,908 — (74 ) 2,834 Total mortgage-backed securities 597,877 6,028 (1,315 ) 602,590 Total debt securities held-to-maturity $ 823,717 $ 8,192 $ (4,945 ) $ 826,964 Total debt securities $ 949,618 $ 9,718 $ (5,064 ) $ 954,272 At December 31, 2018 Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 100,524 $ 163 $ (963 ) $ 99,724 Mortgage-backed securities - FNMA 998 — (5 ) 993 Total debt securities available-for-sale $ 101,522 $ 163 $ (968 ) $ 100,717 Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations $ 14,975 $ — $ (130 ) $ 14,845 State and municipal obligations 123,987 67 (1,697 ) 122,357 Corporate debt securities 66,834 126 (4,984 ) 61,976 Total investment securities 205,796 193 (6,811 ) 199,178 Mortgage-backed securities: FHLMC 237,703 159 (5,110 ) 232,752 FNMA 277,266 753 (6,030 ) 271,989 GNMA 127,611 198 (2,360 ) 125,449 SBA 3,527 — (80 ) 3,447 Total mortgage-backed securities 646,107 1,110 (13,580 ) 633,637 Total debt securities held-to-maturity $ 851,903 $ 1,303 $ (20,391 ) $ 832,815 Total debt securities $ 953,425 $ 1,466 $ (21,359 ) $ 933,532 |
Carrying Value of Held-to-Maturity Investment Securities | The carrying value of the debt securities held-to-maturity at September 30, 2019 , and December 31, 2018 , is as follows (in thousands): September 30, 2019 December 31, 2018 Amortized cost $ 823,717 $ 851,903 Net loss on date of transfer from available-for-sale (13,347 ) (13,347 ) Accretion of net unrealized loss on securities reclassified as held-to-maturity 8,883 8,254 Carrying value $ 819,253 $ 846,810 |
Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity | The amortized cost and estimated fair value of investment securities at September 30, 2019 by contractual maturity are shown below (in thousands). Actual maturities may differ from contractual maturities in instances where issuers have the right to call or prepay obligations with or without call or prepayment penalties. At September 30, 2019 , corporate debt securities with an amortized cost of $61.0 million and estimated fair value of $58.3 million were callable prior to the maturity date. September 30, 2019 Amortized Cost Estimated Fair Value Less than one year $ 71,705 $ 71,726 Due after one year through five years 190,181 192,486 Due after five years through ten years 75,453 72,747 Due after ten years 13,801 14,117 $ 351,140 $ 351,076 |
Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity | The estimated fair value and unrealized losses of debt securities available-for-sale and held-to-maturity at September 30, 2019 and December 31, 2018 , segregated by the duration of the unrealized losses, are as follows (in thousands): At September 30, 2019 Less than 12 months 12 months or longer Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 5,011 $ (9 ) $ 32,363 $ (110 ) $ 37,374 $ (119 ) Total debt securities available-for-sale 5,011 (9 ) 32,363 (110 ) 37,374 (119 ) Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations — — 4,999 (2 ) 4,999 (2 ) State and municipal obligations 22,526 (71 ) 18,348 (188 ) 40,874 (259 ) Corporate debt securities — — 42,660 (3,369 ) 42,660 (3,369 ) Total investment securities 22,526 (71 ) 66,007 (3,559 ) 88,533 (3,630 ) Mortgage-backed securities: FHLMC 13,132 (32 ) 41,799 (537 ) 54,931 (569 ) FNMA 13,475 (31 ) 43,134 (472 ) 56,609 (503 ) GNMA 22,261 (56 ) 24,936 (113 ) 47,197 (169 ) SBA — — 2,834 (74 ) 2,834 (74 ) Total mortgage-backed securities 48,868 (119 ) 112,703 (1,196 ) 161,571 (1,315 ) Total debt securities held-to-maturity 71,394 (190 ) 178,710 (4,755 ) 250,104 (4,945 ) Total debt securities $ 76,405 $ (199 ) $ 211,073 $ (4,865 ) $ 287,478 $ (5,064 ) At December 31, 2018 Less than 12 months 12 months or longer Total Estimated Unrealized Estimated Unrealized Estimated Unrealized Debt securities available-for-sale: Investment securities - U.S. government and agency obligations $ 985 $ (3 ) $ 66,438 $ (960 ) $ 67,423 $ (963 ) Mortgage-backed securities - FNMA 993 (5 ) — — 993 (5 ) Total debt securities available-for-sale 1,978 (8 ) 66,438 (960 ) 68,416 (968 ) Debt securities held-to-maturity: Investment securities: U.S. government and agency obligations — — 14,845 (130 ) 14,845 (130 ) State and municipal obligations 2,856 (4 ) 106,073 (1,693 ) 108,929 (1,697 ) Corporate debt securities 2,470 (21 ) 43,059 (4,963 ) 45,529 (4,984 ) Total investment securities 5,326 (25 ) 163,977 (6,786 ) 169,303 (6,811 ) Mortgage-backed securities: FHLMC 46,615 (159 ) 147,763 (4,951 ) 194,378 (5,110 ) FNMA 27,594 (125 ) 185,328 (5,905 ) 212,922 (6,030 ) GNMA 35,221 (535 ) 59,468 (1,825 ) 94,689 (2,360 ) SBA 3,447 (80 ) — — 3,447 (80 ) Total mortgage-backed securities 112,877 (899 ) 392,559 (12,681 ) 505,436 (13,580 ) Total debt securities held-to-maturity 118,203 (924 ) 556,536 (19,467 ) 674,739 (20,391 ) Total debt securities $ 120,181 $ (932 ) $ 622,974 $ (20,427 ) $ 743,155 $ (21,359 ) |
Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities | At September 30, 2019 , the amortized cost, estimated fair value and credit rating of the individual corporate debt securities in an unrealized loss position for greater than one year are as follows (in thousands): Security Description Amortized Cost Estimated Fair Value Credit Rating Moody’s/ S&P Chase Capital $ 10,000 $ 9,200 Baa1/BBB- Wells Fargo Capital 5,000 4,625 A1/BBB Huntington Capital 5,000 4,450 Baa2/BB+ Keycorp Capital 5,000 4,525 Baa2/BB+ PNC Capital 5,000 4,600 Baa1/BBB- State Street Capital 5,000 4,613 A3/BBB SunTrust Capital 5,000 4,625 Not Rated/BB+ Celgene 1,511 1,508 Baa2/BBB+ Southern Company 1,507 1,505 Baa2/BBB+ BB&T 1,506 1,505 A2/A- AT&T Inc. 1,505 1,504 Baa2/BBB $ 46,029 $ 42,660 |
Loans Receivable, Net (Tables)
Loans Receivable, Net (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Components of Loans Receivable, Net | Loans receivable, net at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Commercial: Commercial and industrial $ 405,970 $ 304,994 Commercial real estate – owner occupied 786,852 740,375 Commercial real estate – investor 2,220,799 2,015,210 Total commercial 3,413,621 3,060,579 Consumer: Residential real estate 2,234,026 2,044,286 Home equity loans and lines 330,370 353,386 Other consumer 98,835 121,561 Total consumer 2,663,231 2,519,233 6,076,852 5,579,812 Purchased credit impaired (“PCI”) loans 13,281 8,901 Total Loans 6,090,133 5,588,713 Deferred origination costs, net 8,441 7,086 Allowance for loan losses (16,636 ) (16,577 ) Total loans, net $ 6,081,938 $ 5,579,222 |
Analysis of Allowance for Loan Losses | An analysis of the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 is as follows (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Balance at beginning of period $ 16,135 $ 16,691 $ 16,577 $ 15,721 Provision charged to operations 305 907 1,281 2,984 Charge-offs (353 ) (891 ) (2,359 ) (2,708 ) Recoveries 549 114 1,137 824 Balance at end of period $ 16,636 $ 16,821 $ 16,636 $ 16,821 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans | The following table presents an analysis of the allowance for loan losses for the three and nine months ended September 30, 2019 and 2018 and the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2019 and December 31, 2018 , excluding PCI loans (in thousands): Commercial and Industrial Commercial Real Estate – Owner Occupied Commercial Real Estate – Investor Residential Real Estate Consumer Unallocated Total For the three months ended Allowance for loan losses: Balance at beginning of period $ 1,639 $ 2,868 $ 8,406 $ 1,966 $ 512 $ 744 $ 16,135 Provision (benefit) charged to operations (352 ) 80 711 193 10 (337 ) 305 Charge-offs — (142 ) (57 ) (27 ) (127 ) — (353 ) Recoveries 49 114 292 39 55 — 549 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 For the three months ended Allowance for loan losses: Balance at beginning of period $ 2,080 $ 2,340 $ 9,058 $ 2,126 $ 526 $ 561 $ 16,691 Provision (benefit) charged to operations (520 ) 187 661 578 57 (56 ) 907 Charge-offs (146 ) — (138 ) (535 ) (72 ) — (891 ) Recoveries 28 1 9 57 19 — 114 Balance at end of period $ 1,442 $ 2,528 $ 9,590 $ 2,226 $ 530 $ 505 $ 16,821 For the nine months ended Allowance for loan losses: Balance at beginning of period $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Provision (benefit) charged to operations (406 ) 1,192 26 899 185 (615 ) 1,281 Charge-offs — (663 ) (143 ) (1,221 ) (332 ) — (2,359 ) Recoveries 133 114 699 80 111 — 1,137 Balance at end of period $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 For the nine months ended Allowance for loan losses: Balance at beginning of period $ 1,801 $ 3,175 $ 7,952 $ 1,804 $ 614 $ 375 $ 15,721 Provision (benefit) charged to operations (238 ) (734 ) 2,706 1,079 41 130 2,984 Charge-offs (202 ) (91 ) (1,239 ) (936 ) (240 ) — (2,708 ) Recoveries 81 178 171 279 115 — 824 Balance at end of period $ 1,442 $ 2,528 $ 9,590 $ 2,226 $ 530 $ 505 $ 16,821 September 30, 2019 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ 547 $ — $ — $ — $ — $ 547 Collectively evaluated for impairment 1,336 2,373 9,352 2,171 450 407 16,089 Total ending allowance balance $ 1,336 $ 2,920 $ 9,352 $ 2,171 $ 450 $ 407 $ 16,636 Loans: Loans individually evaluated for impairment $ 246 $ 6,152 $ 7,975 $ 10,093 $ 3,351 $ — $ 27,817 Loans collectively evaluated for impairment 405,724 780,700 2,212,824 2,223,933 425,854 — 6,049,035 Total ending loan balance $ 405,970 $ 786,852 $ 2,220,799 $ 2,234,026 $ 429,205 $ — $ 6,076,852 Commercial and Industrial Commercial Real Estate – Owner Occupied Commercial Real Estate – Investor Residential Real Estate Consumer Unallocated Total December 31, 2018 Allowance for loan losses: Ending allowance balance attributed to loans: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Collectively evaluated for impairment 1,609 2,277 8,770 2,413 486 1,022 16,577 Total ending allowance balance $ 1,609 $ 2,277 $ 8,770 $ 2,413 $ 486 $ 1,022 $ 16,577 Loans: Loans individually evaluated for impairment $ 1,626 $ 5,395 $ 9,738 $ 10,064 $ 2,974 $ — $ 29,797 Loans collectively evaluated for impairment 303,368 734,980 2,005,472 2,034,222 471,973 — 5,550,015 Total ending loan balance $ 304,994 $ 740,375 $ 2,015,210 $ 2,044,286 $ 474,947 $ — $ 5,579,812 |
Summary of Impaired Loans Excluding PCI Loans | A summary of impaired loans at September 30, 2019 , and December 31, 2018 , is as follows, excluding PCI loans (in thousands): September 30, 2019 December 31, 2018 Impaired loans with no allocated allowance for loan losses $ 25,539 $ 29,797 Impaired loans with allocated allowance for loan losses 2,278 — $ 27,817 $ 29,797 Amount of the allowance for loan losses allocated $ 547 $ — |
Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans | The summary of loans individually evaluated for impairment by loan portfolio segment as of September 30, 2019 , and December 31, 2018 and for the three and nine months ended September 30, 2019 and 2018 , is as follows, excluding PCI loans (in thousands): Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated As of September 30, 2019 With no related allowance recorded: Commercial and industrial $ 268 $ 246 $ — Commercial real estate – owner occupied 3,908 3,874 — Commercial real estate – investor 9,152 7,975 — Residential real estate 10,459 10,093 — Consumer 3,730 3,351 — $ 27,517 $ 25,539 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied 2,415 2,278 547 Commercial real estate – investor — — — Residential real estate — — — Consumer — — — $ 2,415 $ 2,278 $ 547 As of December 31, 2018 With no related allowance recorded: Commercial and industrial $ 1,750 $ 1,626 $ — Commercial real estate – owner occupied 5,413 5,395 — Commercial real estate – investor 12,633 9,738 — Residential real estate 10,441 10,064 — Consumer 3,301 2,974 — $ 33,538 $ 29,797 $ — With an allowance recorded: Commercial and industrial $ — $ — $ — Commercial real estate – owner occupied — — — Commercial real estate – investor — — — Residential real estate — — — Consumer — — — $ — $ — $ — Three Months Ended September 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial and industrial $ 247 $ 1 $ 982 $ 69 Commercial real estate – owner occupied 4,290 6 5,484 75 Commercial real estate – investor 8,072 85 12,191 102 Residential real estate 10,136 128 10,741 119 Consumer 3,362 42 2,782 33 $ 26,107 $ 262 $ 32,180 $ 398 With an allowance recorded: Commercial and industrial $ — $ — $ 736 $ — Commercial real estate – owner occupied 2,086 70 — — Commercial real estate – investor — — — — Residential real estate — — — — Consumer — — — — $ 2,086 $ 70 $ 736 $ — Nine Months Ended September 30, 2019 2018 Average Interest Average Interest With no related allowance recorded: Commercial and industrial $ 593 $ 5 $ 906 $ 85 Commercial real estate – owner occupied 4,221 128 8,978 226 Commercial real estate – investor 9,869 243 14,259 304 Residential real estate 10,091 399 10,873 356 Consumer 3,216 136 2,629 116 $ 27,990 $ 911 $ 37,645 $ 1,087 With an allowance recorded: Commercial and industrial $ — $ — $ 736 $ — Commercial real estate – owner occupied 2,168 106 — — Commercial real estate – investor — — 838 — Residential real estate — — — — Consumer — — — — $ 2,168 $ 106 $ 1,574 $ — |
Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans | The following table presents the recorded investment in non-accrual loans by loan portfolio segment as of September 30, 2019 and December 31, 2018 , excluding PCI loans (in thousands): September 30, 2019 December 31, 2018 Commercial and industrial $ 207 $ 1,587 Commercial real estate – owner occupied 4,537 501 Commercial real estate – investor 4,073 5,024 Residential real estate 5,953 7,389 Consumer 2,683 2,914 $ 17,453 $ 17,415 |
Aging of Recorded Investment in Past Due Loans Excluding PCI Loans | The following table presents the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by loan portfolio segment, excluding PCI loans (in thousands): 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Past Due Total Past Due Loans Not Past Due Total September 30, 2019 Commercial and industrial $ 483 $ — $ 207 $ 690 $ 405,280 $ 405,970 Commercial real estate – owner occupied 2,107 2,732 984 5,823 781,029 786,852 Commercial real estate – investor 1,489 2,005 3,939 7,433 2,213,366 2,220,799 Residential real estate 9,619 2,775 2,409 14,803 2,219,223 2,234,026 Consumer 926 429 2,297 3,652 425,553 429,205 $ 14,624 $ 7,941 $ 9,836 $ 32,401 $ 6,044,451 $ 6,076,852 December 31, 2018 Commercial and industrial $ — $ — $ — $ — $ 304,994 $ 304,994 Commercial real estate – owner occupied 5,104 236 197 5,537 734,838 740,375 Commercial real estate – investor 3,979 2,503 2,461 8,943 2,006,267 2,015,210 Residential real estate 10,199 4,979 4,451 19,629 2,024,657 2,044,286 Consumer 2,200 955 2,464 5,619 469,328 474,947 $ 21,482 $ 8,673 $ 9,573 $ 39,728 $ 5,540,084 $ 5,579,812 |
Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans | As of September 30, 2019 and December 31, 2018 , and based on the most recent analysis performed, the risk category of loans by loan portfolio segment follows, excluding PCI loans (in thousands) is as follows: Pass Special Mention Substandard Doubtful Total September 30, 2019 Commercial and industrial $ 391,823 $ 1,785 $ 12,362 $ — $ 405,970 Commercial real estate – owner occupied 759,858 3,590 23,404 — 786,852 Commercial real estate – investor 2,152,925 52,405 15,469 — 2,220,799 $ 3,304,606 $ 57,780 $ 51,235 $ — $ 3,413,621 December 31, 2018 Commercial and industrial $ 291,265 $ 2,777 $ 10,952 $ — $ 304,994 Commercial real estate – owner occupied 706,825 3,000 30,550 — 740,375 Commercial real estate – investor 1,966,495 23,727 24,988 — 2,015,210 $ 2,964,585 $ 29,504 $ 66,490 $ — $ 3,060,579 |
Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans | The following table presents the recorded investment in residential and consumer loans based on payment activity as of September 30, 2019 and December 31, 2018 , excluding PCI loans (in thousands): Residential Consumer September 30, 2019 Performing $ 2,228,073 $ 426,522 Non-performing 5,953 2,683 $ 2,234,026 $ 429,205 December 31, 2018 Performing $ 2,036,897 $ 472,033 Non-performing 7,389 2,914 $ 2,044,286 $ 474,947 |
Troubled Debt Restructurings | The following table presents information about troubled debt restructurings which occurred during the three and nine months ended September 30, 2019 and 2018 , and troubled debt restructurings modified within the previous year and which defaulted during the three and nine months ended September 30, 2019 and 2018 (dollars in thousands): Number of Loans Pre-modification Recorded Investment Post-modification Recorded Investment Three months ended September 30, 2019 Troubled Debt Restructurings: Consumer 1 $ 54 $ 54 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Post-modification Nine months ended September 30, 2019 Troubled Debt Restructurings: Consumer 5 $ 496 $ 516 Residential real estate 5 921 972 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: None None Number of Loans Pre-modification Recorded Investment Post-modification Recorded Investment Three Months Ended September 30, 2018 Troubled Debt Restructurings: Commercial real estate - owner occupied 1 $ 49 $ 50 Commercial real estate – investor 1 171 210 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Commercial real estate – investor 1 $ 2,820 Consumer 1 30 Number of Loans Pre-modification Recorded Investment Post-modification Recorded Investment Nine months ended September 30, 2018 Troubled Debt Restructurings: Commercial and industrial 2 $ 496 $ 502 Commercial real estate - owner occupied 1 49 50 Commercial real estate – investor 3 1,395 1,435 Residential real estate 2 257 270 Number of Loans Recorded Investment Troubled Debt Restructurings Which Subsequently Defaulted: Commercial real estate – investor 1 $ 2,820 Consumer 1 30 |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period | The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected and the estimated fair value of the PCI loans acquired from Capital Bank at January 31, 2019 (in thousands): Capital January 31, 2019 Contractually required principal and interest $ 6,877 Contractual cash flows not expected to be collected (non-accretable discount) (769 ) Expected cash flows to be collected at acquisition 6,108 Interest component of expected cash flows (accretable yield) (691 ) Fair value of acquired loans $ 5,417 The following table summarizes the changes in accretable yield for PCI loans during the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended 2019 2018 2019 2018 Beginning balance $ 3,183 $ 2,300 $ 3,630 $ 161 Acquisition — — 691 2,646 Accretion (599 ) (368 ) (1,783 ) (1,459 ) Reclassification from non-accretable difference 69 470 115 1,054 Ending balance $ 2,653 $ 2,402 $ 2,653 $ 2,402 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Banking and Thrift [Abstract] | |
Summary of Major Types of Deposits | The major types of deposits at September 30, 2019 and December 31, 2018 were as follows (in thousands): Type of Account September 30, 2019 December 31, 2018 Non-interest-bearing $ 1,406,194 $ 1,151,362 Interest-bearing checking 2,400,331 2,350,106 Money market deposit 593,457 569,680 Savings 901,168 877,177 Time deposits 919,705 866,244 Total deposits $ 6,220,855 $ 5,814,569 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Financial Liabilities Measured at Fair Value | The following table summarizes financial assets and financial liabilities measured at fair value as of September 30, 2019 and December 31, 2018 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value (in thousands): Fair Value Measurements at Reporting Date Using: Total Fair Value Level 1 Inputs Level 2 Inputs Level 3 Inputs September 30, 2019 Items measured on a recurring basis: Debt securities available-for-sale $ 127,308 $ — $ 127,308 $ — Equity investments 10,145 10,145 — — Interest rate swap asset 14,477 — 14,477 — Interest rate swap liability (15,170 ) — (15,170 ) — Items measured on a non-recurring basis: Other real estate owned 294 — — 294 Loans measured for impairment based on the fair value of the underlying collateral 8,983 — — 8,983 December 31, 2018 Items measured on a recurring basis: Debt securities available-for-sale $ 100,717 $ — $ 100,717 $ — Equity investments 9,655 9,655 — — Interest rate swap asset 1,722 — 1,722 — Interest rate swap liability (1,813 ) — (1,813 ) — Items measured on a non-recurring basis: Other real estate owned 1,381 — — 1,381 Loans measured for impairment based on the fair value of the underlying collateral 11,639 — — 11,639 |
Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair Value | The book value and estimated fair value of the Bank’s significant financial instruments not recorded at fair value as of September 30, 2019 and December 31, 2018 are presented in the following tables (in thousands): Fair Value Measurements at Reporting Date Using: Book Value Level 1 Inputs Level 2 Inputs Level 3 Inputs September 30, 2019 Financial Assets: Cash and due from banks $ 140,901 $ 140,901 $ — $ — Debt securities held-to-maturity 819,253 — 819,916 7,048 Restricted equity investments 62,095 — — 62,095 Loans receivable, net and loans held-for-sale 6,082,048 — — 6,092,323 Financial Liabilities: Deposits other than time deposits 5,301,150 — 5,301,150 — Time deposits 919,705 — 919,663 — Federal Home Loan Bank advances and other borrowings 608,816 — 619,970 — Securities sold under agreements to repurchase with retail customers 65,067 65,067 — — December 31, 2018 Financial Assets: Cash and due from banks $ 120,792 $ 120,792 $ — $ — Debt securities held-to-maturity 846,810 — 830,999 1,816 Restricted equity investments 56,784 — — 56,784 Loans receivable, net and loans held-for-sale 5,579,222 — — 5,474,306 Financial Liabilities: Deposits other than time deposits 4,948,325 — 4,948,325 — Time deposits 866,244 — 853,678 — Federal Home Loan Bank advances and other borrowings 548,913 — 554,692 — Securities sold under agreements to repurchase with retail customers 61,760 61,760 — — |
Derivatives, Hedging Activiti_2
Derivatives, Hedging Activities, and Other Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts and Fair Value of Outstanding Derivative Positions | The table below presents the fair value of derivatives not designated as hedging instruments as well as their location on the consolidated statements of financial condition (in thousands): Fair Value Balance Sheet Location September 30, 2019 December 31, 2018 Other assets $ 14,477 $ 1,722 Other liabilities 15,170 1,813 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Right-of-Use Assets and Lease Liabilities | The following table represents the classification of the Company’s ROU assets and lease liabilities on the consolidated statements of financial condition (in thousands): September 30, 2019 Lease ROU Assets Classification Operating lease ROU asset Other assets $ 19,627 Finance lease ROU asset Premises and equipment, net 1,575 Total Lease ROU Asset $ 21,202 Lease Liabilities Operating lease liability Other liabilities $ 19,779 Finance lease liability Other borrowings 1,999 Total Lease Liability $ 21,778 |
Schedule of Weighted Average Remaining Lease Term and Discount Rate | September 30, 2019 Weighted-Average Remaining Lease Term Operating leases 9.61 years Finance lease 9.85 years Weighted-Average Discount Rate Operating leases 3.43 % Finance lease 5.63 % |
Schedule of Lease Costs and Other Lease Information | The following table represents lease expenses and other lease information (in thousands): Three Months Ended Nine Months Ended Lease Expense Operating Lease Expense $ 995 $ 2,963 Finance Lease Expense: Amortization of ROU assets 41 234 Interest on lease liabilities (1) 29 147 Total $ 1,065 $ 3,344 Other Information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 969 $ 2,834 Operating cash flows from finance leases 29 147 Financing cash flows from finance leases 46 217 (1) Included in borrowed funds interest expense on the consolidated statements of income. All other costs are included in occupancy expense. |
Future Minimum Payments for Finance Leases | Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of September 30, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2020 $ 295 $ 3,646 2021 295 3,301 2022 295 2,980 2023 295 2,313 2024 295 1,902 Thereafter 1,016 9,633 Total $ 2,491 $ 23,775 Less: Imputed Interest (492 ) (3,996 ) Total Lease Liabilities $ 1,999 $ 19,779 |
Future Minimum Payments for Operating Leases | Future minimum payments for the finance lease and operating leases with initial or remaining terms of one year or more as of September 30, 2019 were as follows (in thousands): Finance Lease Operating Leases For the Twelve Months Ended September 30, 2020 $ 295 $ 3,646 2021 295 3,301 2022 295 2,980 2023 295 2,313 2024 295 1,902 Thereafter 1,016 9,633 Total $ 2,491 $ 23,775 Less: Imputed Interest (492 ) (3,996 ) Total Lease Liabilities $ 1,999 $ 19,779 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | Jan. 31, 2019USD ($) | Jan. 31, 2018USD ($) | Sep. 30, 2019Property |
Sun Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Purchase accounting adjustments, assets | $ 2,044,054 | ||
Purchase accounting adjustments, loans | 1,517,345 | ||
Purchase accounting adjustments, deposits | 1,616,073 | ||
Total consideration paid | 474,930 | ||
Cash consideration | 72,400 | ||
Core deposit intangible | $ 11,897 | ||
Capital Bank | |||
Business Acquisition [Line Items] | |||
Purchase accounting adjustments, assets | $ 494,749 | ||
Purchase accounting adjustments, loans | 307,778 | ||
Purchase accounting adjustments, deposits | 449,018 | ||
Total consideration paid | 76,834 | ||
Cash consideration | 353 | ||
Core deposit intangible | $ 2,662 | ||
Core Deposits | |||
Business Acquisition [Line Items] | |||
Acquired finite-lived intangible assets, weighted average useful life | 10 years | ||
Sun Bancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Number of properties subject to lease agreement | Property | 21 | ||
Capital Bank | |||
Business Acquisition [Line Items] | |||
Number of properties subject to lease agreement | Property | 1 |
Business Combinations - Summary
Business Combinations - Summary of Assets Acquired and Liabilities Assumed and Their Initial Fair Value Estimates (Detail) - USD ($) $ in Thousands | Jan. 31, 2019 | Jan. 31, 2018 | Sep. 30, 2019 | Dec. 31, 2018 |
Assets acquired: | ||||
Bank Owned Life Insurance | $ 236,190 | $ 222,482 | ||
Liabilities Assumed | ||||
Goodwill recorded in the merger | $ 374,537 | $ 338,442 | ||
Sun Bancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Total consideration paid | $ 474,930 | |||
Assets acquired: | ||||
Cash and cash equivalents | 68,632 | |||
Securities | 254,522 | |||
Loans | 1,517,345 | |||
Accrued interest receivable | 5,621 | |||
Bank Owned Life Insurance | 85,238 | |||
Deferred tax asset | 57,597 | |||
Other assets | 43,202 | |||
Core deposit intangible | 11,897 | |||
Total assets acquired | 2,044,054 | |||
Liabilities Assumed | ||||
Deposits | (1,616,073) | |||
Borrowings | (127,727) | |||
Other liabilities | (13,242) | |||
Total liabilities assumed | (1,757,042) | |||
Net assets acquired | 287,012 | |||
Goodwill recorded in the merger | $ 187,918 | |||
Capital Bank | ||||
Business Acquisition [Line Items] | ||||
Total consideration paid | $ 76,834 | |||
Assets acquired: | ||||
Cash and cash equivalents | 59,748 | |||
Securities | 103,775 | |||
Loans | 307,778 | |||
Accrued interest receivable | 1,390 | |||
Bank Owned Life Insurance | 10,460 | |||
Deferred tax asset | 3,829 | |||
Other assets | 5,107 | |||
Core deposit intangible | 2,662 | |||
Total assets acquired | 494,749 | |||
Liabilities Assumed | ||||
Deposits | (449,018) | |||
Other liabilities | (5,015) | |||
Total liabilities assumed | (454,033) | |||
Net assets acquired | 40,716 | |||
Goodwill recorded in the merger | $ 36,118 |
Business Combinations - Schedul
Business Combinations - Schedule of Supplemental Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 8 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings per share, Pro forma: | ||||
Net interest income, Pro forma | $ 194,365 | $ 199,415 | ||
Provision for loan losses, Pro forma | 1,281 | 2,564 | ||
Non-interest income, Pro forma | 31,046 | 28,432 | ||
Non-interest expense, Pro forma | 143,338 | 172,621 | ||
Provision (benefit) for income taxes, Pro forma | 15,620 | 10,423 | ||
Net income, Pro forma | $ 65,172 | $ 42,239 | ||
Fully diluted, Pro forma (in usd per share) | $ 1.27 | $ 0.83 | ||
Capital Bank | ||||
Earnings per share, Actual: | ||||
Net interest income, Actual | $ 12,700 | |||
Provision for loan losses, Actual | 280 | |||
Non-interest income, Actual | 991 | |||
Non-interest expense, Actual | 11,035 | |||
Provision (benefit) for income taxes, Actual | 499 | |||
Net income, Actual | $ 1,877 | |||
Sun Bancorp, Inc. | ||||
Earnings per share, Actual: | ||||
Net interest income, Actual | $ 47,619 | |||
Provision for loan losses, Actual | 884 | |||
Non-interest income, Actual | 5,654 | |||
Non-interest expense, Actual | 26,150 | |||
Provision (benefit) for income taxes, Actual | 5,510 | |||
Net income, Actual | $ 20,729 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Shares Outstanding for Basic and Diluted Earnings per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average shares outstanding (shares) | 51,039 | 48,337 | 50,792 | 46,913 |
Less: Unallocated ESOP shares (shares) | (484) | (546) | (501) | (401) |
Unallocated incentive award shares and shares held by deferred compensation plan (shares) | (64) | (106) | (49) | (61) |
Average basic shares outstanding (shares) | 50,491 | 47,685 | 50,242 | 46,451 |
Add: Effect of dilutive securities: | ||||
Incentive awards and shares held by deferred compensation plan (shares) | 475 | 887 | 588 | 952 |
Average diluted shares outstanding (shares) | 50,966 | 48,572 | 50,830 | 47,403 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Antidilutive stock options excluded from earnings per share calculations (shares) | 997 | 463 | 993 | 464,000 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | $ 125,901 | $ 101,522 |
Available-for-sale, Gross Unrealized Gains | 1,526 | 163 |
Available-for-sale, Gross Unrealized Losses | (119) | (968) |
Available-for-sale, Estimated Fair Value | 127,308 | 100,717 |
Held-to-maturity, Amortized Cost | 823,717 | 851,903 |
Held-to-maturity, Gross Unrealized Gains | 8,192 | 1,303 |
Held-to-maturity, Gross Unrealized Losses | (4,945) | (20,391) |
Estimated Fair Value | 826,964 | 832,815 |
Total, Amortized Cost | 949,618 | 953,425 |
Total, Gross Unrealized Gains | 9,718 | 1,466 |
Total, Gross Unrealized Losses | (5,064) | (21,359) |
Total, Estimated Fair Value | 954,272 | 933,532 |
Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 125,300 | |
Available-for-sale, Gross Unrealized Gains | 1,521 | |
Available-for-sale, Gross Unrealized Losses | (119) | |
Available-for-sale, Estimated Fair Value | 126,702 | |
Held-to-maturity, Amortized Cost | 225,840 | 205,796 |
Held-to-maturity, Gross Unrealized Gains | 2,164 | 193 |
Held-to-maturity, Gross Unrealized Losses | (3,630) | (6,811) |
Estimated Fair Value | 224,374 | 199,178 |
U.S. government and agency obligations | Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 124,050 | 100,524 |
Available-for-sale, Gross Unrealized Gains | 1,520 | 163 |
Available-for-sale, Gross Unrealized Losses | (119) | (963) |
Available-for-sale, Estimated Fair Value | 125,451 | 99,724 |
Held-to-maturity, Amortized Cost | 9,981 | 14,975 |
Held-to-maturity, Gross Unrealized Gains | 2 | 0 |
Held-to-maturity, Gross Unrealized Losses | (2) | (130) |
Estimated Fair Value | 9,981 | 14,845 |
State and municipal obligations | Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 1,250 | |
Available-for-sale, Gross Unrealized Gains | 1 | |
Available-for-sale, Gross Unrealized Losses | 0 | |
Available-for-sale, Estimated Fair Value | 1,251 | |
Held-to-maturity, Amortized Cost | 134,626 | 123,987 |
Held-to-maturity, Gross Unrealized Gains | 1,247 | 67 |
Held-to-maturity, Gross Unrealized Losses | (259) | (1,697) |
Estimated Fair Value | 135,614 | 122,357 |
Corporate debt securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 46,029 | |
Estimated Fair Value | 42,660 | |
Corporate debt securities | Investment securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 81,233 | 66,834 |
Held-to-maturity, Gross Unrealized Gains | 915 | 126 |
Held-to-maturity, Gross Unrealized Losses | (3,369) | (4,984) |
Estimated Fair Value | 78,779 | 61,976 |
Mortgage-backed securities | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 597,877 | 646,107 |
Held-to-maturity, Gross Unrealized Gains | 6,028 | 1,110 |
Held-to-maturity, Gross Unrealized Losses | (1,315) | (13,580) |
Estimated Fair Value | 602,590 | 633,637 |
Mortgage-backed securities | FHLMC | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 219,047 | 237,703 |
Held-to-maturity, Gross Unrealized Gains | 2,194 | 159 |
Held-to-maturity, Gross Unrealized Losses | (569) | (5,110) |
Estimated Fair Value | 220,672 | 232,752 |
Mortgage-backed securities | FNMA | ||
Securities Financing Transaction [Line Items] | ||
Available-for-sale, Amortized Cost | 601 | 998 |
Available-for-sale, Gross Unrealized Gains | 5 | 0 |
Available-for-sale, Gross Unrealized Losses | 0 | (5) |
Available-for-sale, Estimated Fair Value | 606 | 993 |
Held-to-maturity, Amortized Cost | 259,192 | 277,266 |
Held-to-maturity, Gross Unrealized Gains | 2,566 | 753 |
Held-to-maturity, Gross Unrealized Losses | (503) | (6,030) |
Estimated Fair Value | 261,255 | 271,989 |
Mortgage-backed securities | GNMA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 116,730 | 127,611 |
Held-to-maturity, Gross Unrealized Gains | 1,268 | 198 |
Held-to-maturity, Gross Unrealized Losses | (169) | (2,360) |
Estimated Fair Value | 117,829 | 125,449 |
Mortgage-backed securities | SBA | ||
Securities Financing Transaction [Line Items] | ||
Held-to-maturity, Amortized Cost | 2,908 | 3,527 |
Held-to-maturity, Gross Unrealized Gains | 0 | 0 |
Held-to-maturity, Gross Unrealized Losses | (74) | (80) |
Estimated Fair Value | $ 2,834 | $ 3,447 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2013 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||||||
Available-for-sale securities transferred to held-to-maturity securities | $ 536,000,000 | |||||
Unrealized net loss on securities transferred from available-for-sale to held-to-maturity, Gross | $ 13,300,000 | |||||
Realized gains on the sale of available-for-sale securities | $ 0 | $ 0 | $ 0 | $ 248,000 | ||
Realized losses on the sale of available-for-sale securities | 0 | 0 | ||||
Corporate debt securities, callable, amortized cost | 61,000,000 | 61,000,000 | ||||
Corporate debt securities, callable, estimated fair value | 58,300,000 | 58,300,000 | ||||
Securities pledged for other debt obligations, at fair value | 488,700,000 | 488,700,000 | $ 563,100,000 | |||
Reverse Repurchase Agreement | ||||||
Debt Securities, Available-for-sale [Line Items] | ||||||
Securities pledged for repurchase agreements, at fair value | $ 65,100,000 | $ 65,100,000 | $ 74,100,000 |
Securities - Carrying Value of
Securities - Carrying Value of Held-to-Maturity Investment Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Amortized cost | $ 823,717 | $ 851,903 |
Net loss on date of transfer from available-for-sale | (13,347) | (13,347) |
Accretion of net unrealized loss on securities reclassified as held-to-maturity | 8,883 | 8,254 |
Carrying value | $ 819,253 | $ 846,810 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Estimated Fair Value of Investment Securities by Contractual Maturity (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Amortized Cost | |
Less than one year, Amortized Cost | $ 71,705 |
Due after one year through five years, Amortized Cost | 190,181 |
Due after five years through ten years, Amortized Cost | 75,453 |
Due after ten years, Amortized Cost | 13,801 |
Total Amortized Cost | 351,140 |
Estimated Fair Value | |
Less than one year, Estimated Fair Value | 71,726 |
Due after one year through five years, Estimated Fair Value | 192,486 |
Due after five years through ten years, Estimated Fair Value | 72,747 |
Due after ten years, Estimated Fair Value | 14,117 |
Total Estimated Fair Value | $ 351,076 |
Securities - Estimated Fair Val
Securities - Estimated Fair Value and Unrealized Loss for Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less thank 12 months, Estimated Fair Value | $ 5,011 | $ 1,978 |
Available-for-sale, Less than 12 Months, Unrealized Losses | (9) | (8) |
Available-for-sale, 12 months or longer, Estimated Fair Value | 32,363 | 66,438 |
Available-for-sale, 12 months or longer, Unrealized Losses | (110) | (960) |
Available-for-sale, Total, Estimated Fair Value | 37,374 | 68,416 |
Available-for-sale, Total, Unrealized Losses | (119) | (968) |
Held-to-maturity, Less than 12 months, Estimated Fair Value | 71,394 | 118,203 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (190) | (924) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 178,710 | 556,536 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (4,755) | (19,467) |
Held-to-maturity, Total, Estimated Fair Value | 250,104 | 674,739 |
Held-to-maturity, Total, Unrealized Losses | (4,945) | (20,391) |
Total securities, Less than 12 months, Estimated Fair Value | 76,405 | 120,181 |
Total securities, Less than 12 months, Unrealized Losses | (199) | (932) |
Total securities, 12 months or longer, Estimated Fair Value | 211,073 | 622,974 |
Total securities, 12 months or longer, Unrealized Losses | (4,865) | (20,427) |
Total securities, Estimated Fair Value | 287,478 | 743,155 |
Total securities, Unrealized Losses | (5,064) | (21,359) |
Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 22,526 | 5,326 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (71) | (25) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 66,007 | 163,977 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (3,559) | (6,786) |
Held-to-maturity, Total, Estimated Fair Value | 88,533 | 169,303 |
Held-to-maturity, Total, Unrealized Losses | (3,630) | (6,811) |
U.S. government and agency obligations | Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less thank 12 months, Estimated Fair Value | 5,011 | 985 |
Available-for-sale, Less than 12 Months, Unrealized Losses | (9) | (3) |
Available-for-sale, 12 months or longer, Estimated Fair Value | 32,363 | 66,438 |
Available-for-sale, 12 months or longer, Unrealized Losses | (110) | (960) |
Available-for-sale, Total, Estimated Fair Value | 37,374 | 67,423 |
Available-for-sale, Total, Unrealized Losses | (119) | (963) |
Held-to-maturity, Less than 12 months, Estimated Fair Value | 0 | 0 |
Held-to-maturity, Less than 12 months, Unrealized Losses | 0 | 0 |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 4,999 | 14,845 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (2) | (130) |
Held-to-maturity, Total, Estimated Fair Value | 4,999 | 14,845 |
Held-to-maturity, Total, Unrealized Losses | (2) | (130) |
Mortgage-backed securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 48,868 | 112,877 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (119) | (899) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 112,703 | 392,559 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (1,196) | (12,681) |
Held-to-maturity, Total, Estimated Fair Value | 161,571 | 505,436 |
Held-to-maturity, Total, Unrealized Losses | (1,315) | (13,580) |
Mortgage-backed securities | FHLMC | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 13,132 | 46,615 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (32) | (159) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 41,799 | 147,763 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (537) | (4,951) |
Held-to-maturity, Total, Estimated Fair Value | 54,931 | 194,378 |
Held-to-maturity, Total, Unrealized Losses | (569) | (5,110) |
Mortgage-backed securities | FNMA | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Available-for-sale, Less thank 12 months, Estimated Fair Value | 993 | |
Available-for-sale, Less than 12 Months, Unrealized Losses | (5) | |
Available-for-sale, 12 months or longer, Estimated Fair Value | 0 | |
Available-for-sale, 12 months or longer, Unrealized Losses | 0 | |
Available-for-sale, Total, Estimated Fair Value | 993 | |
Available-for-sale, Total, Unrealized Losses | (5) | |
Held-to-maturity, Less than 12 months, Estimated Fair Value | 13,475 | 27,594 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (31) | (125) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 43,134 | 185,328 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (472) | (5,905) |
Held-to-maturity, Total, Estimated Fair Value | 56,609 | 212,922 |
Held-to-maturity, Total, Unrealized Losses | (503) | (6,030) |
Mortgage-backed securities | GNMA | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 22,261 | 35,221 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (56) | (535) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 24,936 | 59,468 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (113) | (1,825) |
Held-to-maturity, Total, Estimated Fair Value | 47,197 | 94,689 |
Held-to-maturity, Total, Unrealized Losses | (169) | (2,360) |
Mortgage-backed securities | SBA | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 0 | 3,447 |
Held-to-maturity, Less than 12 months, Unrealized Losses | 0 | (80) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 2,834 | 0 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (74) | 0 |
Held-to-maturity, Total, Estimated Fair Value | 2,834 | 3,447 |
Held-to-maturity, Total, Unrealized Losses | (74) | (80) |
State and municipal obligations | Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 22,526 | 2,856 |
Held-to-maturity, Less than 12 months, Unrealized Losses | (71) | (4) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 18,348 | 106,073 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (188) | (1,693) |
Held-to-maturity, Total, Estimated Fair Value | 40,874 | 108,929 |
Held-to-maturity, Total, Unrealized Losses | (259) | (1,697) |
Corporate debt securities | Investment securities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Held-to-maturity, Less than 12 months, Estimated Fair Value | 0 | 2,470 |
Held-to-maturity, Less than 12 months, Unrealized Losses | 0 | (21) |
Held-to-maturity, 12 months or longer, Estimated Fair Value | 42,660 | 43,059 |
Held-to-maturity, 12 months or longer, Unrealized Losses | (3,369) | (4,963) |
Held-to-maturity, Total, Estimated Fair Value | 42,660 | 45,529 |
Held-to-maturity, Total, Unrealized Losses | $ (3,369) | $ (4,984) |
Securities - Amortized Cost, Es
Securities - Amortized Cost, Estimated Fair Value and Credit Rating of Corporate Debt Securities (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 823,717 | $ 851,903 |
Estimated Fair Value | 826,964 | $ 832,815 |
Chase Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 10,000 | |
Estimated Fair Value | $ 9,200 | |
Credit Rating Moody’s/ S&P | Baa1/BBB- | |
Wells Fargo Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,625 | |
Credit Rating Moody’s/ S&P | A1/BBB | |
Huntington Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,450 | |
Credit Rating Moody’s/ S&P | Baa2/BB+ | |
Keycorp Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,525 | |
Credit Rating Moody’s/ S&P | Baa2/BB+ | |
PNC Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,600 | |
Credit Rating Moody’s/ S&P | Baa1/BBB- | |
State Street Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,613 | |
Credit Rating Moody’s/ S&P | A3/BBB | |
SunTrust Capital | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 5,000 | |
Estimated Fair Value | $ 4,625 | |
Credit Rating Moody’s/ S&P | Not Rated/BB+ | |
Celgene | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,511 | |
Estimated Fair Value | $ 1,508 | |
Credit Rating Moody’s/ S&P | Baa2/BBB+ | |
Southern Company | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,507 | |
Estimated Fair Value | $ 1,505 | |
Credit Rating Moody’s/ S&P | Baa2/BBB+ | |
BB&T | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,506 | |
Estimated Fair Value | $ 1,505 | |
Credit Rating Moody’s/ S&P | A2/A- | |
AT&T Inc. | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 1,505 | |
Estimated Fair Value | $ 1,504 | |
Credit Rating Moody’s/ S&P | Baa2/BBB | |
Corporate debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 46,029 | |
Estimated Fair Value | $ 42,660 |
Loans Receivable, Net - Compone
Loans Receivable, Net - Components of Loans Receivable, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | $ 6,076,852 | $ 5,579,812 | ||||
Purchased credit impaired (“PCI”) loans | 13,281 | 8,901 | ||||
Total Loans | 6,090,133 | 5,588,713 | ||||
Deferred origination costs, net | 8,441 | 7,086 | ||||
Allowance for loan losses | (16,636) | $ (16,135) | (16,577) | $ (16,821) | $ (16,691) | $ (15,721) |
Total loans, net | 6,081,938 | 5,579,222 | ||||
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 3,413,621 | 3,060,579 | ||||
Commercial | Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 405,970 | 304,994 | ||||
Commercial | Commercial real estate – owner occupied | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 786,852 | 740,375 | ||||
Commercial | Commercial real estate – investor | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 2,220,799 | 2,015,210 | ||||
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 2,663,231 | 2,519,233 | ||||
Allowance for loan losses | (450) | $ (512) | (486) | $ (530) | $ (526) | $ (614) |
Consumer | Residential real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 2,234,026 | 2,044,286 | ||||
Consumer | Home equity loans and lines | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | 330,370 | 353,386 | ||||
Consumer | Other consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Total loans | $ 98,835 | $ 121,561 |
Loans Receivable, Net - Analysi
Loans Receivable, Net - Analysis of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Balance at beginning of period | $ 16,135 | $ 16,691 | $ 16,577 | $ 15,721 |
Provision charged to operations | 305 | 907 | 1,281 | 2,984 |
Charge-offs | (353) | (891) | (2,359) | (2,708) |
Recoveries | 549 | 114 | 1,137 | 824 |
Balance at end of period | $ 16,636 | $ 16,821 | $ 16,636 | $ 16,821 |
Loans Receivable, Net - Allowan
Loans Receivable, Net - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method Excluding PCI Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Allowance for loan losses: | |||||
Balance at beginning of period | $ 16,135 | $ 16,691 | $ 16,577 | $ 15,721 | |
Provision (benefit) charged to operations | 305 | 907 | 1,281 | 2,984 | |
Charge-offs | (353) | (891) | (2,359) | (2,708) | |
Recoveries | 549 | 114 | 1,137 | 824 | |
Balance at end of period | 16,636 | 16,821 | 16,636 | 16,821 | |
Ending allowance balance attributed to loans: | |||||
Individually evaluated for impairment | 547 | 547 | $ 0 | ||
Collectively evaluated for impairment | 16,089 | 16,089 | 16,577 | ||
Total ending allowance balance | 16,636 | 16,636 | 16,577 | ||
Loans: | |||||
Loans individually evaluated for impairment | 27,817 | 27,817 | 29,797 | ||
Loans collectively evaluated for impairment | 6,049,035 | 6,049,035 | 5,550,015 | ||
Total loans | 6,076,852 | 6,076,852 | 5,579,812 | ||
Commercial and Industrial | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 1,639 | 2,080 | 1,609 | 1,801 | |
Provision (benefit) charged to operations | (352) | (520) | (406) | (238) | |
Charge-offs | 0 | (146) | 0 | (202) | |
Recoveries | 49 | 28 | 133 | 81 | |
Balance at end of period | 1,336 | 1,442 | 1,336 | 1,442 | |
Ending allowance balance attributed to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 1,336 | 1,336 | 1,609 | ||
Total ending allowance balance | 1,336 | 1,336 | 1,609 | ||
Loans: | |||||
Loans individually evaluated for impairment | 246 | 246 | 1,626 | ||
Loans collectively evaluated for impairment | 405,724 | 405,724 | 303,368 | ||
Total loans | 405,970 | 405,970 | 304,994 | ||
Commercial real estate – owner occupied | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 2,868 | 2,340 | 2,277 | 3,175 | |
Provision (benefit) charged to operations | 80 | 187 | 1,192 | (734) | |
Charge-offs | (142) | 0 | (663) | (91) | |
Recoveries | 114 | 1 | 114 | 178 | |
Balance at end of period | 2,920 | 2,528 | 2,920 | 2,528 | |
Ending allowance balance attributed to loans: | |||||
Individually evaluated for impairment | 547 | 547 | 0 | ||
Collectively evaluated for impairment | 2,373 | 2,373 | 2,277 | ||
Total ending allowance balance | 2,920 | 2,920 | 2,277 | ||
Loans: | |||||
Loans individually evaluated for impairment | 6,152 | 6,152 | 5,395 | ||
Loans collectively evaluated for impairment | 780,700 | 780,700 | 734,980 | ||
Total loans | 786,852 | 786,852 | 740,375 | ||
Commercial Real Estate – Investor | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 8,406 | 9,058 | 8,770 | 7,952 | |
Provision (benefit) charged to operations | 711 | 661 | 26 | 2,706 | |
Charge-offs | (57) | (138) | (143) | (1,239) | |
Recoveries | 292 | 9 | 699 | 171 | |
Balance at end of period | 9,352 | 9,590 | 9,352 | 9,590 | |
Ending allowance balance attributed to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 9,352 | 9,352 | 8,770 | ||
Total ending allowance balance | 9,352 | 9,352 | 8,770 | ||
Loans: | |||||
Loans individually evaluated for impairment | 7,975 | 7,975 | 9,738 | ||
Loans collectively evaluated for impairment | 2,212,824 | 2,212,824 | 2,005,472 | ||
Total loans | 2,220,799 | 2,220,799 | 2,015,210 | ||
Residential Real Estate | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 1,966 | 2,126 | 2,413 | 1,804 | |
Provision (benefit) charged to operations | 193 | 578 | 899 | 1,079 | |
Charge-offs | (27) | (535) | (1,221) | (936) | |
Recoveries | 39 | 57 | 80 | 279 | |
Balance at end of period | 2,171 | 2,226 | 2,171 | 2,226 | |
Ending allowance balance attributed to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 2,171 | 2,171 | 2,413 | ||
Total ending allowance balance | 2,171 | 2,171 | 2,413 | ||
Loans: | |||||
Loans individually evaluated for impairment | 10,093 | 10,093 | 10,064 | ||
Loans collectively evaluated for impairment | 2,223,933 | 2,223,933 | 2,034,222 | ||
Total loans | 2,234,026 | 2,234,026 | 2,044,286 | ||
Consumer | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 512 | 526 | 486 | 614 | |
Provision (benefit) charged to operations | 10 | 57 | 185 | 41 | |
Charge-offs | (127) | (72) | (332) | (240) | |
Recoveries | 55 | 19 | 111 | 115 | |
Balance at end of period | 450 | 530 | 450 | 530 | |
Ending allowance balance attributed to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 450 | 450 | 486 | ||
Total ending allowance balance | 450 | 450 | 486 | ||
Loans: | |||||
Loans individually evaluated for impairment | 3,351 | 3,351 | 2,974 | ||
Loans collectively evaluated for impairment | 425,854 | 425,854 | 471,973 | ||
Total loans | 429,205 | 429,205 | 474,947 | ||
Unallocated | |||||
Allowance for loan losses: | |||||
Balance at beginning of period | 744 | 561 | 1,022 | 375 | |
Provision (benefit) charged to operations | (337) | (56) | (615) | 130 | |
Charge-offs | 0 | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | 0 | |
Balance at end of period | 407 | $ 505 | 407 | $ 505 | |
Ending allowance balance attributed to loans: | |||||
Individually evaluated for impairment | 0 | 0 | 0 | ||
Collectively evaluated for impairment | 407 | 407 | 1,022 | ||
Total ending allowance balance | 407 | 407 | 1,022 | ||
Loans: | |||||
Loans individually evaluated for impairment | 0 | 0 | 0 | ||
Loans collectively evaluated for impairment | 0 | 0 | 0 | ||
Total loans | $ 0 | $ 0 | $ 0 |
Loans Receivable, Net - Summary
Loans Receivable, Net - Summary of Impaired Loans Excluding PCI Loans (Detail) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Impaired loans with no allocated allowance for loan losses | $ 25,539,000 | $ 29,797,000 |
Impaired loans with allocated allowance for loan losses | 2,278,000 | 0 |
Total | 27,817,000 | 29,797,000 |
Amount of the allowance for loan losses allocated | $ 547,000 | $ 0 |
Loans Receivable, Net - Additio
Loans Receivable, Net - Additional Information (Detail) | Jan. 31, 2019USD ($) | Sep. 30, 2019USD ($)SecurityLoan | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)SecurityLoan | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Impaired loans on non-accrual commercial real estate, multi-family, land, construction, commercial and industrial loans | $ 250,000 | |||||
Impaired loan portfolio total | $ 27,817,000 | 27,817,000 | $ 29,797,000 | |||
Allocation in allowance for loan losses | 547,000 | 547,000 | 0 | |||
Average balance of impaired loans | 28,200,000 | $ 32,900,000 | 30,200,000 | $ 39,200,000 | ||
Troubled debt restructured loans | 25,100,000 | 25,100,000 | 26,500,000 | |||
Loans with non-accrual of interest | $ 17,453,000 | $ 17,453,000 | 17,415,000 | |||
Number of residential mortgage loans | SecurityLoan | 0 | 0 | ||||
Non-accrual loan total troubled debt restructurings | $ 6,200,000 | 3,600,000 | ||||
Specific reserves to loans accruing troubled debt restructurings | $ 547,000 | 547,000 | 0 | |||
Troubled debt restructured loans with accrual interest | 19,000,000 | 19,000,000 | 22,900,000 | |||
Capital Bank | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan and lease losses, loans acquired | $ 0 | |||||
Residential Real Estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans with non-accrual of interest | 5,953,000 | 5,953,000 | $ 7,389,000 | |||
Recorded investment in mortgage and consumer loans collateralized, foreclosure amount | 2,100,000 | 2,100,000 | ||||
Foreclosed property held | $ 81,000 | $ 81,000 |
Loans Receivable, Net - Summa_2
Loans Receivable, Net - Summary of Loans Individually Evaluated for Impairment by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||||
Recorded Investment | $ 27,817,000 | $ 27,817,000 | $ 29,797,000 | ||
Allowance for Loan Losses Allocated | 547,000 | 547,000 | 0 | ||
With no related allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 27,517,000 | 27,517,000 | 33,538,000 | ||
Recorded Investment | 25,539,000 | 25,539,000 | 29,797,000 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 26,107,000 | $ 32,180,000 | 27,990,000 | $ 37,645,000 | |
Interest Income Recognized | 262,000 | 398,000 | 911,000 | 1,087,000 | |
With an allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 2,415,000 | 2,415,000 | 0 | ||
Recorded Investment | 2,278,000 | 2,278,000 | 0 | ||
Allowance for Loan Losses Allocated | 547,000 | 547,000 | 0 | ||
Average Recorded Investment | 2,086,000 | 736,000 | 2,168,000 | 1,574,000 | |
Interest Income Recognized | 70,000 | 0 | 106,000 | 0 | |
Commercial and Industrial | With no related allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 268,000 | 268,000 | 1,750,000 | ||
Recorded Investment | 246,000 | 246,000 | 1,626,000 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 247,000 | 982,000 | 593,000 | 906,000 | |
Interest Income Recognized | 1,000 | 69,000 | 5,000 | 85,000 | |
Commercial and Industrial | With an allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment | 0 | 0 | 0 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 736,000 | 0 | 736,000 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Commercial real estate – owner occupied | With no related allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 3,908,000 | 3,908,000 | 5,413,000 | ||
Recorded Investment | 3,874,000 | 3,874,000 | 5,395,000 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 4,290,000 | 5,484,000 | 4,221,000 | 8,978,000 | |
Interest Income Recognized | 6,000 | 75,000 | 128,000 | 226,000 | |
Commercial real estate – owner occupied | With an allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 2,415,000 | 2,415,000 | 0 | ||
Recorded Investment | 2,278,000 | 2,278,000 | 0 | ||
Allowance for Loan Losses Allocated | 547,000 | 547,000 | 0 | ||
Average Recorded Investment | 2,086,000 | 0 | 2,168,000 | 0 | |
Interest Income Recognized | 70,000 | 0 | 106,000 | 0 | |
Commercial real estate – investor | With no related allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 9,152,000 | 9,152,000 | 12,633,000 | ||
Recorded Investment | 7,975,000 | 7,975,000 | 9,738,000 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 8,072,000 | 12,191,000 | 9,869,000 | 14,259,000 | |
Interest Income Recognized | 85,000 | 102,000 | 243,000 | 304,000 | |
Commercial real estate – investor | With an allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment | 0 | 0 | 0 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 838,000 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Residential real estate | With no related allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 10,459,000 | 10,459,000 | 10,441,000 | ||
Recorded Investment | 10,093,000 | 10,093,000 | 10,064,000 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 10,136,000 | 10,741,000 | 10,091,000 | 10,873,000 | |
Interest Income Recognized | 128,000 | 119,000 | 399,000 | 356,000 | |
Residential real estate | With an allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment | 0 | 0 | 0 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | 0 | 0 | 0 | 0 | |
Consumer | With no related allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 3,730,000 | 3,730,000 | 3,301,000 | ||
Recorded Investment | 3,351,000 | 3,351,000 | 2,974,000 | ||
Allowance for Loan Losses Allocated | 0 | 0 | 0 | ||
Average Recorded Investment | 3,362,000 | 2,782,000 | 3,216,000 | 2,629,000 | |
Interest Income Recognized | 42,000 | 33,000 | 136,000 | 116,000 | |
Consumer | With an allowance recorded | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid Principal Balance | 0 | 0 | 0 | ||
Recorded Investment | 0 | 0 | 0 | ||
Allowance for Loan Losses Allocated | 0 | 0 | $ 0 | ||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Interest Income Recognized | $ 0 | $ 0 | $ 0 | $ 0 |
Loans Receivable, Net - Recorde
Loans Receivable, Net - Recorded Investment in Non-Accrual Loans by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Recorded Investment in Non-accrual Loans | $ 17,453 | $ 17,415 |
Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Recorded Investment in Non-accrual Loans | 207 | 1,587 |
Commercial real estate – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Recorded Investment in Non-accrual Loans | 4,537 | 501 |
Commercial real estate – investor | ||
Financing Receivable, Past Due [Line Items] | ||
Recorded Investment in Non-accrual Loans | 4,073 | 5,024 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Recorded Investment in Non-accrual Loans | 5,953 | 7,389 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Recorded Investment in Non-accrual Loans | $ 2,683 | $ 2,914 |
Loans Receivable, Net - Aging o
Loans Receivable, Net - Aging of Recorded Investment in Past Due Loans Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 32,401 | $ 39,728 |
Greater than 90 Days Past Due | 9,836 | 9,573 |
Loans Not Past Due | 6,044,451 | 5,540,084 |
Total loans | 6,076,852 | 5,579,812 |
30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 14,624 | 21,482 |
60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,941 | 8,673 |
Commercial and Industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 690 | 0 |
Greater than 90 Days Past Due | 207 | 0 |
Loans Not Past Due | 405,280 | 304,994 |
Total loans | 405,970 | 304,994 |
Commercial and Industrial | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 483 | 0 |
Commercial and Industrial | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial real estate – owner occupied | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 5,823 | 5,537 |
Greater than 90 Days Past Due | 984 | 197 |
Loans Not Past Due | 781,029 | 734,838 |
Total loans | 786,852 | 740,375 |
Commercial real estate – owner occupied | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,107 | 5,104 |
Commercial real estate – owner occupied | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,732 | 236 |
Commercial real estate – investor | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7,433 | 8,943 |
Greater than 90 Days Past Due | 3,939 | 2,461 |
Loans Not Past Due | 2,213,366 | 2,006,267 |
Total loans | 2,220,799 | 2,015,210 |
Commercial real estate – investor | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,489 | 3,979 |
Commercial real estate – investor | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,005 | 2,503 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 14,803 | 19,629 |
Greater than 90 Days Past Due | 2,409 | 4,451 |
Loans Not Past Due | 2,219,223 | 2,024,657 |
Total loans | 2,234,026 | 2,044,286 |
Residential real estate | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9,619 | 10,199 |
Residential real estate | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,775 | 4,979 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 3,652 | 5,619 |
Greater than 90 Days Past Due | 2,297 | 2,464 |
Loans Not Past Due | 425,553 | 469,328 |
Total loans | 429,205 | 474,947 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 926 | 2,200 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 429 | $ 955 |
Loans Receivable, Net - Risk Ca
Loans Receivable, Net - Risk Category of Loans by Loan Portfolio Segment Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 3,413,621 | $ 3,060,579 |
Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 405,970 | 304,994 |
Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 786,852 | 740,375 |
Commercial real estate – investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,220,799 | 2,015,210 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,304,606 | 2,964,585 |
Pass | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 391,823 | 291,265 |
Pass | Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 759,858 | 706,825 |
Pass | Commercial real estate – investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,152,925 | 1,966,495 |
Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 57,780 | 29,504 |
Special Mention | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,785 | 2,777 |
Special Mention | Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,590 | 3,000 |
Special Mention | Commercial real estate – investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 52,405 | 23,727 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 51,235 | 66,490 |
Substandard | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 12,362 | 10,952 |
Substandard | Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 23,404 | 30,550 |
Substandard | Commercial real estate – investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 15,469 | 24,988 |
Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Doubtful | Commercial and Industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Doubtful | Commercial real estate – owner occupied | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Doubtful | Commercial real estate – investor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans Receivable, Net - Recor_2
Loans Receivable, Net - Recorded Investment in Residential and Consumer Loans Based on Payment Activity Excluding PCI Loans (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Non-performing | $ 17,453 | $ 17,415 |
Total loans | 6,076,852 | 5,579,812 |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Non-performing | 5,953 | 7,389 |
Total loans | 2,234,026 | 2,044,286 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Non-performing | 2,683 | 2,914 |
Total loans | 429,205 | 474,947 |
Residential Real Estate | Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Performing | 2,228,073 | 2,036,897 |
Non-performing | 5,953 | 7,389 |
Total loans | 2,234,026 | 2,044,286 |
Residential Real Estate | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Performing | 426,522 | 472,033 |
Non-performing | 2,683 | 2,914 |
Total loans | $ 429,205 | $ 474,947 |
Loans Receivable, Net - Trouble
Loans Receivable, Net - Troubled Debt Restructurings (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)SecurityLoan | Sep. 30, 2018USD ($)SecurityLoan | Sep. 30, 2019USD ($)SecurityLoan | Sep. 30, 2018USD ($)SecurityLoan | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans, Which Subsequently Defaulted | SecurityLoan | 0 | 0 | ||
Recorded Investment, Which Subsequently Defaulted | $ 0 | $ 0 | ||
Commercial and industrial | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 2 | |||
Pre-modification Recorded Investment | $ 496,000 | |||
Post-modification Recorded Investment | $ 502,000 | |||
Consumer | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 1 | 5 | ||
Pre-modification Recorded Investment | $ 54,000 | $ 496,000 | ||
Post-modification Recorded Investment | $ 54,000 | $ 516,000 | ||
Number of Loans, Which Subsequently Defaulted | SecurityLoan | 1 | 1 | ||
Recorded Investment, Which Subsequently Defaulted | $ 30,000 | $ 30,000 | ||
Residential real estate | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 5 | 2 | ||
Pre-modification Recorded Investment | $ 921,000 | $ 257,000 | ||
Post-modification Recorded Investment | $ 972,000 | $ 270,000 | ||
Commercial real estate – owner occupied | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 1 | 1 | ||
Pre-modification Recorded Investment | $ 49,000 | $ 49,000 | ||
Post-modification Recorded Investment | $ 50,000 | $ 50,000 | ||
Commercial real estate – investor | ||||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||||
Number of Loans | SecurityLoan | 1 | 3 | ||
Pre-modification Recorded Investment | $ 171,000 | $ 1,395,000 | ||
Post-modification Recorded Investment | $ 210,000 | $ 1,435,000 | ||
Number of Loans, Which Subsequently Defaulted | SecurityLoan | 1 | 1 | ||
Recorded Investment, Which Subsequently Defaulted | $ 2,820,000 | $ 2,820,000 |
Loans Receivable, Net - PCI Loa
Loans Receivable, Net - PCI Loans Acquired (Detail) - Capital Bank $ in Thousands | Jan. 31, 2019USD ($) |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items] | |
Contractually required principal and interest | $ 6,877 |
Contractual cash flows not expected to be collected (non-accretable discount) | (769) |
Expected cash flows to be collected at acquisition | 6,108 |
Interest component of expected cash flows (accretable yield) | (691) |
Fair value of acquired loans | $ 5,417 |
Loans Receivable, Net - Summa_3
Loans Receivable, Net - Summary of Changes in Accretable Yield (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 3,183 | $ 2,300 | $ 3,630 | $ 161 |
Acquisition | 0 | 0 | 691 | 2,646 |
Accretion | (599) | (368) | (1,783) | (1,459) |
Reclassification from non-accretable difference | 69 | 470 | 115 | 1,054 |
Ending balance | $ 2,653 | $ 2,402 | $ 2,653 | $ 2,402 |
Deposits - Summary of Major Typ
Deposits - Summary of Major Types of Deposits (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Non-interest-bearing | $ 1,406,194 | $ 1,151,362 |
Interest-bearing checking | 2,400,331 | 2,350,106 |
Money market deposit | 593,457 | 569,680 |
Savings | 901,168 | 877,177 |
Time deposits | 919,705 | 866,244 |
Total deposits | $ 6,220,855 | $ 5,814,569 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Time deposits, $250,000 and over | $ 143.2 | $ 124.3 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements - Narrative (Details) - USD ($) $ in Thousands | Dec. 15, 2019 | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 19,627 | ||
Operating lease liability | $ 19,779 | ||
Other assets | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease, right-of-use asset | $ 20,600 | ||
Other liabilities | Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease liability | $ 20,700 | ||
Forecast | Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Credit losses reserve | $ 25,100 | ||
Forecast | Minimum | Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Credit losses reserve, percent | 20.00% | ||
Forecast | Maximum | Accounting Standards Update 2016-13 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Credit losses reserve, percent | 40.00% |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Financial Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | $ 127,308 | $ 100,717 |
Equity investments | 10,145 | 9,655 |
Interest rate swap liability | 15,200 | 1,800 |
Other real estate owned | 294 | 1,381 |
Items measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 127,308 | 100,717 |
Equity investments | 10,145 | 9,655 |
Interest rate swap asset | 14,477 | 1,722 |
Interest rate swap liability | (15,170) | (1,813) |
Items measured on a recurring basis | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Equity investments | 10,145 | 9,655 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Items measured on a recurring basis | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 127,308 | 100,717 |
Equity investments | 0 | 0 |
Interest rate swap asset | 14,477 | 1,722 |
Interest rate swap liability | (15,170) | (1,813) |
Items measured on a recurring basis | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt securities available-for-sale, at estimated fair value | 0 | 0 |
Equity investments | 0 | 0 |
Interest rate swap asset | 0 | 0 |
Interest rate swap liability | 0 | 0 |
Items measured on a recurring basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 294 | 1,381 |
Items measured on a recurring basis | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 8,983 | 11,639 |
Items measured on a recurring basis | Level 1 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Items measured on a recurring basis | Level 1 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Items measured on a recurring basis | Level 2 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 0 | 0 |
Items measured on a recurring basis | Level 2 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | 0 | 0 |
Items measured on a recurring basis | Level 3 Inputs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 294 | 1,381 |
Items measured on a recurring basis | Level 3 Inputs | Loans measured for impairment based on the fair value of the underlying collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans | $ 8,983 | $ 11,639 |
Fair Value Measurements - Book
Fair Value Measurements - Book Value and Estimated Fair Value of Bank's Significant Financial Instruments Not Recorded at Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Debt securities held-to-maturity | $ 826,964 | $ 832,815 |
Restricted equity investments, at cost | 62,095 | 56,784 |
Financial Liabilities: | ||
Time deposits | 919,705 | 866,244 |
Securities sold under agreements to repurchase with retail customers | 65,067 | 61,760 |
Book Value | ||
Financial Assets: | ||
Cash and due from banks | 140,901 | 120,792 |
Debt securities held-to-maturity | 819,253 | 846,810 |
Restricted equity investments, at cost | 62,095 | 56,784 |
Loans receivable, net and loans held-for-sale | 6,082,048 | 5,579,222 |
Financial Liabilities: | ||
Deposits other than time deposits | 5,301,150 | 4,948,325 |
Time deposits | 919,705 | 866,244 |
Federal Home Loan Bank advances and other borrowings | 608,816 | 548,913 |
Securities sold under agreements to repurchase with retail customers | 65,067 | 61,760 |
Level 1 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 140,901 | 120,792 |
Debt securities held-to-maturity | 0 | 0 |
Restricted equity investments, at cost | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with retail customers | 65,067 | 61,760 |
Level 2 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 819,916 | 830,999 |
Restricted equity investments, at cost | 0 | 0 |
Loans receivable, net and loans held-for-sale | 0 | 0 |
Financial Liabilities: | ||
Deposits other than time deposits | 5,301,150 | 4,948,325 |
Time deposits | 919,663 | 853,678 |
Federal Home Loan Bank advances and other borrowings | 619,970 | 554,692 |
Securities sold under agreements to repurchase with retail customers | 0 | 0 |
Level 3 Inputs | ||
Financial Assets: | ||
Cash and due from banks | 0 | 0 |
Debt securities held-to-maturity | 7,048 | 1,816 |
Restricted equity investments, at cost | 62,095 | 56,784 |
Loans receivable, net and loans held-for-sale | 6,092,323 | 5,474,306 |
Financial Liabilities: | ||
Deposits other than time deposits | 0 | 0 |
Time deposits | 0 | 0 |
Federal Home Loan Bank advances and other borrowings | 0 | 0 |
Securities sold under agreements to repurchase with retail customers | $ 0 | $ 0 |
Derivatives, Hedging Activiti_3
Derivatives, Hedging Activities, and Other Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Collateral already posted, fair value | $ 16,800 | $ 16,800 | $ 4,100 | ||
Derivative liability | 15,200 | 15,200 | 1,800 | ||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Income (expense) in fair value adjustments | (407) | $ (78) | (602) | $ (76) | |
Not Designated as Hedging Instrument | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ 249,300 | $ 249,300 | $ 59,300 |
Derivatives, Hedging Activiti_4
Derivatives, Hedging Activities, and Other Financial Instruments - Notional and Fair Value of Derivatives Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Other assets | ||
Derivative [Line Items] | ||
Credit risk derivative asset, fair value | $ 14,477 | $ 1,722 |
Other liabilities | ||
Derivative [Line Items] | ||
Credit risk derivative liability, fair value | $ 15,170 | $ 1,813 |
Leases - Narrative (Details)
Leases - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019lease | |
Leases [Abstract] | |
Number of finance leases | 1 |
Leases - Schedule of Right-of-U
Leases - Schedule of Right-of-Use Assets and Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease ROU asset | $ 19,627 |
Finance lease ROU asset | 1,575 |
Total Lease ROU Asset | 21,202 |
Operating lease liability | 19,779 |
Finance lease liability | 1,999 |
Total Lease Liability | $ 21,778 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term (years) | 9 years 7 months 9 days |
Finance lease, weighted average remaining lease term (years) | 9 years 10 months 6 days |
Operating lease, weighted average discount rate (percent) | 3.43% |
Finance lease, weighted average discount rate (percent) | 5.63% |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs and Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Expense | ||
Operating Lease Expense | $ 995 | $ 2,963 |
Finance Lease Expense: | ||
Amortization of ROU assets | 41 | 234 |
Interest on lease liabilities | 29 | 147 |
Total | 1,065 | 3,344 |
Operating cash flows from operating leases | 969 | 2,834 |
Operating cash flows from finance leases | 29 | 147 |
Financing cash flows from finance leases | $ 46 | $ 217 |
Leases - Future Minimum Payment
Leases - Future Minimum Payments for Operating and Financing Leases (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Finance Lease | |
2020 | $ 295 |
2021 | 295 |
2022 | 295 |
2023 | 295 |
2024 | 295 |
Thereafter | 1,016 |
Total | 2,491 |
Less: Imputed Interest | (492) |
Total Lease Liabilities | 1,999 |
Operating Leases | |
2020 | 3,646 |
2021 | 3,301 |
2022 | 2,980 |
2023 | 2,313 |
2024 | 1,902 |
Thereafter | 9,633 |
Total | 23,775 |
Less: Imputed Interest | (3,996) |
Total Lease Liabilities | $ 19,779 |