Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | PROSPERITY BANCSHARES, INC. | |
Entity Central Index Key | 0001068851 | |
Trading Symbol | PB | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 92,558,558 | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-35388 | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 74-2331986 | |
Entity Address, Address Line One | Prosperity Bank Plaza | |
Entity Address, Address Line Two | 4295 San Felipe | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77027 | |
City Area Code | 281 | |
Local Phone Number | 269-7199 | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Security Exchange Name | NYSE | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 1,031,193 | $ 573,589 |
Federal funds sold | 56,469 | 519 |
Total cash and cash equivalents | 1,087,662 | 574,108 |
Available for sale securities, at fair value | 461,115 | 287,663 |
Held to maturity securities, at cost (fair value of $7,145,837 and $8,303,851, respectively) | 6,970,380 | 8,282,393 |
Total securities | 7,431,495 | 8,570,056 |
Loans held for sale | 51,694 | 80,959 |
Loans held for investment | 18,013,333 | 17,211,625 |
Total loans | 20,795,641 | 18,845,346 |
Less: allowance for credit losses on loans | (323,635) | (87,469) |
Loans, net | 20,472,006 | 18,757,877 |
Accrued interest receivable | 87,555 | 80,797 |
Goodwill | 3,231,692 | 3,223,671 |
Core deposit intangibles, net | 76,478 | 86,404 |
Bank premises and equipment, net | 325,994 | 326,832 |
Other real estate owned | 11,548 | 6,936 |
Bank owned life insurance (BOLI) | 326,452 | 321,793 |
Federal Home Loan Bank of Dallas stock | 8,901 | 83,945 |
Other assets | 137,816 | 153,289 |
TOTAL ASSETS | 33,197,599 | 32,185,708 |
Deposits: | ||
Noninterest-bearing | 8,998,328 | 7,763,894 |
Interest-bearing | 17,460,878 | 16,435,838 |
Total deposits | 26,459,206 | 24,199,732 |
Fed funds purchased and other borrowings | 2,570 | 1,303,730 |
Securities sold under repurchase agreements | 380,274 | 377,294 |
Subordinated notes | 125,146 | 125,804 |
Accrued interest payable | 6,592 | 8,585 |
Allowance for credit losses on off-balance sheet credit exposures | 29,947 | 5,599 |
Other liabilities | 158,987 | 194,129 |
Total liabilities | 27,162,722 | 26,214,873 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS’ EQUITY: | ||
Preferred stock, $1 par value; 20,000,000 shares authorized; none issued or outstanding | ||
Common stock, $1 par value; 200,000,000 shares authorized; 92,562,434 shares issued and outstanding at September 30, 2020; 94,746,019 shares issued and outstanding at December 31, 2019 | 92,562 | 94,746 |
Capital surplus | 3,631,213 | 3,734,519 |
Retained earnings | 2,311,451 | 2,140,968 |
Accumulated other comprehensive (loss) income —net unrealized (loss) gain on available for sale securities, net of tax (benefit) expense of $(93) and $160, respectively | (349) | 602 |
Total shareholders’ equity | 6,034,877 | 5,970,835 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 33,197,599 | 32,185,708 |
Warehouse Purchase Program [Member] | ||
ASSETS | ||
Loans held for investment | 2,730,614 | 1,552,762 |
Total loans | $ 2,730,614 | $ 1,552,762 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Held to maturity securities, fair value | $ 7,145,837 | $ 8,303,851 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, shares issued (in shares) | 92,562,434 | 94,746,019 |
Common stock, shares outstanding (in shares) | 92,562,434 | 94,746,019 |
Accumulated other comprehensive income net unrealized (loss) gain on available for sale securities, tax (benefit) expense | $ (93) | $ 160 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
INTEREST INCOME: | ||||
Loans, including fees | $ 244,255 | $ 134,943 | $ 734,270 | $ 398,533 |
Securities | 38,033 | 50,872 | 130,091 | 160,464 |
Federal funds sold and other earning assets | 144 | 363 | 902 | 1,083 |
Total interest income | 282,432 | 186,178 | 865,263 | 560,080 |
INTEREST EXPENSE: | ||||
Deposits | 22,458 | 26,939 | 82,745 | 78,629 |
Other borrowings | 52 | 4,335 | 3,517 | 15,208 |
Securities sold under repurchase agreements | 309 | 914 | 1,403 | 2,504 |
Subordinated notes | 1,500 | 4,499 | ||
Total interest expense | 24,319 | 32,188 | 92,164 | 96,341 |
NET INTEREST INCOME | 258,113 | 153,990 | 773,099 | 463,739 |
PROVISION FOR CREDIT LOSSES | 10,000 | 1,100 | 20,000 | 2,600 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 248,113 | 152,890 | 753,099 | 461,139 |
NONINTEREST INCOME: | ||||
Nonsufficient funds (NSF) fees | 7,156 | 8,835 | 22,244 | 24,624 |
Credit card, debit card and ATM card income | 8,315 | 6,688 | 23,052 | 19,139 |
Service charges on deposit accounts | 5,920 | 5,020 | 17,814 | 15,007 |
Trust income | 2,502 | 2,492 | 7,406 | 7,645 |
Mortgage income | 2,958 | 839 | 6,788 | 2,551 |
Brokerage income | 628 | 522 | 1,862 | 1,736 |
Net (loss) gain on sale or write down of assets | (528) | (3) | (4,858) | 57 |
Other | 7,973 | 6,280 | 20,679 | 18,016 |
Total noninterest income | 34,924 | 30,673 | 94,987 | 88,775 |
NONINTEREST EXPENSE: | ||||
Salaries and employee benefits | 75,068 | 52,978 | 231,459 | 156,992 |
Net occupancy and equipment | 8,644 | 5,607 | 26,814 | 16,565 |
Credit and debit card, data processing and software amortization | 8,776 | 4,989 | 31,887 | 14,466 |
Regulatory assessments and FDIC insurance | 2,512 | 1,814 | 7,191 | 6,513 |
Core deposit intangibles amortization | 3,270 | 1,248 | 9,926 | 3,832 |
Depreciation | 4,605 | 3,286 | 13,971 | 9,501 |
Communications | 3,027 | 2,214 | 9,546 | 6,667 |
Other real estate expense, net | 121 | (47) | 81 | (75) |
Merger related expenses | 8,018 | |||
Other | 11,896 | 8,610 | 38,135 | 25,630 |
Total noninterest expense | 117,919 | 80,699 | 377,028 | 240,091 |
INCOME BEFORE INCOME TAXES | 165,118 | 102,864 | 471,058 | 309,823 |
PROVISION FOR INCOME TAXES | 35,054 | 21,106 | 79,245 | 63,405 |
NET INCOME | $ 130,064 | $ 81,758 | $ 391,813 | $ 246,418 |
EARNINGS PER SHARE: | ||||
Basic | $ 1.40 | $ 1.19 | $ 4.20 | $ 3.55 |
Diluted | $ 1.40 | $ 1.19 | $ 4.20 | $ 3.55 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 130,064 | $ 81,758 | $ 391,813 | $ 246,418 |
Securities available for sale: | ||||
Change in unrealized gains (losses) during the period | 1,325 | (1,563) | (1,204) | (344) |
Total other comprehensive income (loss) | 1,325 | (1,563) | (1,204) | (344) |
Deferred tax (expense) benefit related to other comprehensive income (loss) | (278) | 328 | 253 | 72 |
Other comprehensive income (loss), net of tax | 1,047 | (1,235) | (951) | (272) |
Comprehensive income | $ 131,111 | $ 80,523 | $ 390,862 | $ 246,146 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | [1] | Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Common Stock [Member] | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Capital Surplus [Member] | Capital Surplus [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | [1] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect, Period of Adoption, Adjusted Balance [Member] |
BALANCE at Dec. 31, 2018 | $ 4,052,824 | $ 69,847 | $ 2,045,351 | $ 1,937,316 | $ 310 | |||||||||
BALANCE (in shares) at Dec. 31, 2018 | 69,846,825 | |||||||||||||
Net income | 246,418 | 246,418 | ||||||||||||
Other comprehensive income (loss) | (272) | (272) | ||||||||||||
Common stock issued in connection with the issuance of restricted stock awards, net | $ 23 | (23) | ||||||||||||
Common stock issued in connection with the issuance of restricted stock awards, net (in shares) | 23,184 | |||||||||||||
Common stock repurchase | (94,484) | $ (1,473) | (93,011) | |||||||||||
Common stock repurchase (in shares) | (1,473,231) | |||||||||||||
Stock based compensation expense | 7,643 | 7,643 | ||||||||||||
Cash dividends declared | (85,323) | (85,323) | ||||||||||||
BALANCE at Sep. 30, 2019 | 4,126,806 | $ 68,397 | 1,959,960 | 2,098,411 | 38 | |||||||||
BALANCE (in shares) at Sep. 30, 2019 | 68,396,778 | |||||||||||||
BALANCE at Jun. 30, 2019 | 4,127,895 | $ 69,261 | 2,012,665 | 2,044,696 | 1,273 | |||||||||
BALANCE (in shares) at Jun. 30, 2019 | 69,261,431 | |||||||||||||
Net income | 81,758 | 81,758 | ||||||||||||
Other comprehensive income (loss) | (1,235) | (1,235) | ||||||||||||
Common stock issued in connection with the issuance of restricted stock awards, net | $ 10 | (10) | ||||||||||||
Common stock issued in connection with the issuance of restricted stock awards, net (in shares) | 9,750 | |||||||||||||
Common stock repurchase | (56,063) | $ (874) | (55,189) | |||||||||||
Common stock repurchase (in shares) | (874,403) | |||||||||||||
Stock based compensation expense | 2,494 | 2,494 | ||||||||||||
Cash dividends declared | (28,043) | (28,043) | ||||||||||||
BALANCE at Sep. 30, 2019 | 4,126,806 | $ 68,397 | 1,959,960 | 2,098,411 | 38 | |||||||||
BALANCE (in shares) at Sep. 30, 2019 | 68,396,778 | |||||||||||||
BALANCE at Dec. 31, 2019 | $ 5,970,835 | $ (92,860) | $ 5,877,975 | $ 94,746 | $ 94,746 | 3,734,519 | $ 3,734,519 | $ 2,140,968 | $ (92,860) | $ 2,048,108 | 602 | $ 602 | ||
BALANCE (in shares) at Dec. 31, 2019 | 94,746,019 | 94,746,019 | ||||||||||||
Accounting Standards Update [Extensible List] | pb:AccountingStandardsUpdate201613AndOtherMember | pb:AccountingStandardsUpdate201613AndOtherMember | ||||||||||||
Net income | $ 391,813 | $ 391,813 | ||||||||||||
Other comprehensive income (loss) | (951) | (951) | ||||||||||||
Common stock issued in connection with the issuance of restricted stock awards, net | $ 6 | (6) | ||||||||||||
Common stock issued in connection with the issuance of restricted stock awards, net (in shares) | 6,000 | |||||||||||||
Common stock repurchase | (114,964) | $ (2,190) | (112,774) | |||||||||||
Common stock repurchase (in shares) | (2,189,585) | |||||||||||||
Stock based compensation expense | 9,474 | 9,474 | ||||||||||||
Cash dividends declared | (128,470) | (128,470) | ||||||||||||
BALANCE at Sep. 30, 2020 | 6,034,877 | $ 92,562 | 3,631,213 | 2,311,451 | (349) | |||||||||
BALANCE (in shares) at Sep. 30, 2020 | 92,562,434 | |||||||||||||
BALANCE at Jun. 30, 2020 | 5,948,122 | $ 92,660 | 3,632,847 | 2,224,011 | (1,396) | |||||||||
BALANCE (in shares) at Jun. 30, 2020 | 92,660,462 | |||||||||||||
Net income | 130,064 | 130,064 | ||||||||||||
Other comprehensive income (loss) | 1,047 | 1,047 | ||||||||||||
Common stock repurchase | (4,903) | $ (98) | (4,805) | |||||||||||
Common stock repurchase (in shares) | (98,028) | |||||||||||||
Stock based compensation expense | 3,171 | 3,171 | ||||||||||||
Cash dividends declared | (42,624) | (42,624) | ||||||||||||
BALANCE at Sep. 30, 2020 | $ 6,034,877 | $ 92,562 | $ 3,631,213 | $ 2,311,451 | $ (349) | |||||||||
BALANCE (in shares) at Sep. 30, 2020 | 92,562,434 | |||||||||||||
[1] | ASU 2016-13 became effective for the Company on January 1, 2020. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Retained Earnings [Member] | ||||
Cash dividend declared, per share (in dollars per share) | $ 0.46 | $ 0.41 | $ 1.38 | $ 1.23 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 391,813 | $ 246,418 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and core deposit intangibles amortization | 23,897 | 13,333 |
Provision for credit losses | 20,000 | 2,600 |
Net amortization of premium on investments | 27,318 | 22,223 |
Net gain on sale of other real estate and repossessed assets | (263) | (346) |
Net loss on sale or write down of premises and equipment | 2,506 | |
Net loss (gain) on sale or write down of assets | 2,352 | (57) |
Net accretion of discount on loans | (75,282) | (4,303) |
Net amortization of premium on deposits | (5,303) | |
Gain on sale of loans | (4,957) | (2,355) |
Proceeds from sale of loans held for sale | 338,740 | 132,554 |
Originations of loans held for sale | (305,612) | (121,212) |
Stock based compensation expense | 9,474 | 7,643 |
Decrease in accrued interest receivable and other assets | 97,047 | 13,860 |
(Decrease) increase in accrued interest payable and other liabilities | (24,834) | 38,840 |
Net cash provided by operating activities | 496,896 | 349,198 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from maturities and principal paydowns of held to maturity securities | 1,751,229 | 1,328,559 |
Purchase of held to maturity securities | (466,474) | (222,906) |
Proceeds from maturities and principal paydowns of available for sale securities | 12,027,029 | 9,020,085 |
Purchase of available for sale securities | (12,201,746) | (9,234,545) |
Originations of WPP loans | (30,474,590) | |
Proceeds from pay-offs of WPP | 29,296,738 | |
Net increase in loans held for investment | (626,308) | (312,461) |
Purchase of bank premises and equipment | (17,617) | (16,253) |
Proceeds from sale of bank premises, equipment and other real estate | 4,766 | 4,531 |
Proceeds from insurance claims | 468 | 3,637 |
Net cash (used in) provided by investing activities | (706,505) | 570,647 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net increase in noninterest-bearing deposits | 1,234,434 | 117,887 |
Net increase (decrease) in interest-bearing deposits | 1,030,343 | (444,525) |
Net repayments of other short-term borrowings | (1,300,000) | (430,000) |
Repayments of other long-term borrowings | (1,160) | (331) |
Net increase in securities sold under repurchase agreements | 2,980 | 26,684 |
Repurchase of common stock | (114,964) | (94,484) |
Payments of cash dividends | (128,470) | (85,323) |
Net cash provided by (used in) financing activities | 723,163 | (910,092) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 513,554 | 9,753 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 574,108 | 411,127 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,087,662 | 420,880 |
NONCASH ACTIVITIES: | ||
Acquisition of real estate through foreclosure of collateral | 8,229 | 1,998 |
SUPPLEMENTAL INFORMATION: | ||
Income taxes paid | 132,185 | 63,250 |
Interest paid | $ 94,157 | $ 95,104 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION The consolidated financial statements include the accounts of Prosperity Bancshares, Inc. ® ® The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for financial information and with the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, the statements reflect all adjustments necessary for a fair presentation of the financial position, results of operations and cash flows of the Company on a consolidated basis; and all such adjustments are of a normal recurring nature. These financial statements and the notes thereto should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Operating results for the nine-month period ended September 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020 or any other period. |
Income Per Common Share
Income Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Income Per Common Share | 2. INCOME PER COMMON SHARE The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share data) Net income $ 130,064 $ 81,758 $ 391,813 $ 246,418 Basic: Weighted average shares outstanding 92,656 $ 1.40 68,738 $ 1.19 93,226 $ 4.20 69,463 $ 3.55 Diluted: Weighted average shares outstanding 92,656 $ 1.40 68,738 $ 1.19 93,226 $ 4.20 69,463 $ 3.55 As of September 30, 2020, all stock options have been exercised and there are no options outstanding. There were no stock options exercisable during the three and nine months ended September 30, 2020 or 2019 that would have had an anti-dilutive effect on the above computation. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Sep. 30, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
New Accounting Standards | 3. NEW ACCOUNTING STANDARDS Accounting Standards Updates (“ASU”) ASU 2020-04, "Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting - Accounting Standards Codification (“ASC”) Topic 848 ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. The guidance allows for companies to: (i) account for certain contract modifications as a continuation of the existing contract without additional analysis; (ii) continue hedge accounting when certain critical terms of a hedging relationship change and assess effectiveness in ways that disregard certain potential sources of ineffectiveness; and (iii) make a one-time sale and/or transfer of certain debt securities from held-to-maturity to available-for-sale or trading. This ASU is available for adoption effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within ASU 2020-04, the amendments must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made at any time after March 12, 2020. The Company anticipates this ASU will simplify any modifications it executes between the selected start date (yet to be determined) and December 31, 2022 that are directly related to the LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees and costs. ASU 2020-04 is not expected to have a significant impact on the Company’s financial statements. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments ( “ASC 326 ” ).” On January 1, 2020 , the Company adopted ASU 2016-13 which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of CECL is based on relevant information about past events including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted ASU 2016-13 using the modified-retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior periods are reported with previously applicable GAAP. Upon adoption of ASU 2016-13, the Company recognized an increase in allowance for credit losses for loans of $108.7 million, of which $102.5 million was related to LegacyTexas Financial Group, Inc. (“LegacyTexas”), which merged into Bancshares on November 1, 2019, and an increase in allowance for credit losses for off-balance sheet credit exposures of $24.4 million, of which $6.3 million was related to LegacyTexas, with a corresponding decrease in retained earnings (pre-tax). Additionally, the Company adopted ASU 2016-13 using the prospective transition approach for financial assets purchased with credit deterioration. The Company recognized an increase in the allowance for credit losses for loans of $131.8 million, of which $130.3 million was related to LegacyTexas, due to the reclass of purchased credit deteriorated discounts as the result of adopting ASU 2016-13. See Note 5 “Loans and Allowance for Credit Losses” for additional information. The Company recognized no allowance for credit losses related to debt securities. See Note 4 “Securities” for additional information. The following table illustrates the impact of adopting ASU 2016-13: January 1, 2020 As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (Dollars in thousands) Assets: Loans Construction, land development and other land loans $ 28,729 $ 14,654 $ 14,075 Agriculture and agriculture real estate (includes farmland) 5,768 2,971 2,797 1-4 family (includes home equity) 23,544 15,277 8,267 Commercial real estate (includes multi-family residential) 61,322 12,332 48,990 Commercial and industrial 180,069 40,445 139,624 Consumer and other 28,575 1,790 26,785 Allowance for credit losses on loans $ 328,007 $ 87,469 $ 240,538 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 29,947 $ 5,599 $ 24,348 |
Securities
Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | 4. SECURITIES The amortized cost and fair value of investment securities were as follows: September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 418,575 $ 138 $ (525 ) $ 418,188 Mortgage-backed securities 42,982 570 (625 ) 42,927 Total $ 461,557 $ 708 $ (1,150 ) $ 461,115 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 3,989 $ 25 $ — $ 4,014 States and political subdivisions 170,427 9,288 (187 ) 179,528 Collateralized mortgage obligations 123,309 2,080 (256 ) 125,133 Mortgage-backed securities 6,672,655 165,665 (1,158 ) 6,837,162 Total $ 6,970,380 $ 177,058 $ (1,601 ) $ 7,145,837 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale States and political subdivisions $ 470 $ 1 $ — $ 471 Collateralized mortgage obligations 235,222 690 (139 ) 235,773 Mortgage-backed securities 51,209 659 (449 ) 51,419 Total $ 286,901 $ 1,350 $ (588 ) $ 287,663 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 13,933 $ 58 $ — $ 13,991 States and political subdivisions 238,347 7,632 (189 ) 245,790 Collateralized mortgage obligations 203,470 1,115 (373 ) 204,212 Mortgage-backed securities 7,826,643 48,060 (34,845 ) 7,839,858 Total $ 8,282,393 $ 56,865 $ (35,407 ) $ 8,303,851 The investment securities portfolio is measured for expected credit losses by segregating the portfolio into two general segments and applying the appropriate expected credit losses methodology. Investment securities classified as available for sale or held to maturity are evaluated for expected credit losses under Financial Accounting Standards Board (“FASB”): ASC 326 , “Financial Instruments – Credit Losses.” Available for sale securities . For available for sale securities in an unrealized loss position, the amount of the expected credit losses recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss. If an entity intends to sell or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, the expected credit losses will be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the expected credit losses will be separated into the amount representing the credit-related portion of the impairment loss (“credit loss”) and the noncredit portion of the impairment loss (“noncredit portion”). The amount of the total expected credit losses related to the credit loss is determined based on the difference between the present value of cash flows expected to be collected and the amortized cost basis and such difference is recognized in earnings. The amount of the total expected credit losses related to the noncredit portion is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the expected credit losses recognized in earnings will become the new amortized cost basis of the investment. A s of September 30, 2020 , management does not have the intent to sell any of the securities classified as available for sale before a recovery of cost. In addition, management believes it is more likely than not that the Company will not be required to sell any of its investment securities before a recovery of cost. The unrealized losses are largely due to changes in market interest rates and spread relationships since the time the underlying securities were purchased . The fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality. Accordingly, as of September 30, 2020 , management believes that there is no potential for credit losses on available for sale securities. Held to maturity securities . The Company’s held to maturity investments include mortgage-related bonds issued by either the Government National Mortgage Corporation (“Ginnie Mae”), Federal National Mortgage Association (“Fannie Mae”) or Federal Home Loan Mortgage Corporation (“Freddie Mac”). Ginnie Mae issued securities are explicitly guaranteed by the U.S. government, while Fannie Mae and Freddie Mac issued securities are fully guaranteed by those respective United States government-sponsored agencies, and conditionally guaranteed by the full faith and credit of the United States. The Company’s held to maturity securities also include taxable and tax-exempt municipal securities issued primarily by school districts, utility districts and municipalities located in Texas. The Company’s investment in municipal securities is exposed to credit risk. The securities are highly rated by major rating agencies and regularly reviewed by management. A significant portion are guaranteed or insured by either the Texas Permanent School Fund, Assured Guaranty or Build America Mutual. As of September 30, 2020, the Company’s municipal securities represent 2.3% of the securities portfolio. Management has the ability and intent to hold the securities classified as held to maturity until they mature, at which time the Company will receive full value for the securities. Accordingly, as of September 30, 2020, management believes that there is no potential for material credit losses on held to maturity securities. Securities with unrealized losses, segregated by length of time, that have been in a continuous loss position were as follows: September 30, 2020 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 188,671 $ (515 ) $ 1,886 $ (10 ) $ 190,557 $ (525 ) Mortgage-backed securities 16,298 (365 ) 12,815 (260 ) 29,113 (625 ) Total $ 204,969 $ (880 ) $ 14,701 $ (270 ) $ 219,670 $ (1,150 ) Held to Maturity States and political subdivisions $ 1,689 $ (187 ) $ — $ — $ 1,689 $ (187 ) Collateralized mortgage obligations 33,507 (256 ) — — 33,507 (256 ) Mortgage-backed securities 118,159 (858 ) 19,716 (300 ) 137,875 (1,158 ) Total $ 153,355 $ (1,301 ) $ 19,716 $ (300 ) $ 173,071 $ (1,601 ) December 31, 2019 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 50,245 $ (136 ) $ 1,818 $ (3 ) $ 52,063 $ (139 ) Mortgage-backed securities 34,901 (449 ) 10 — 34,911 (449 ) Total $ 85,146 $ (585 ) $ 1,828 $ (3 ) $ 86,974 $ (588 ) Held to Maturity States and political subdivisions $ 58,329 $ (183 ) $ 3,241 $ (6 ) $ 61,570 $ (189 ) Collateralized mortgage obligations 54,890 (373 ) — — 54,890 (373 ) Mortgage-backed securities 947,314 (3,017 ) 3,110,765 (31,828 ) 4,058,079 (34,845 ) Total $ 1,060,533 $ (3,573 ) $ 3,114,006 $ (31,834 ) $ 4,174,539 $ (35,407 ) At September 30, 2020 and December 31, 2019, there were 44 securities and 138 securities, respectively, in an unrealized loss position for 12 months or more. The amortized cost and fair value of investment securities at September 30, 2020, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations at any time with or without call or prepayment penalties. Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 26,715 $ 26,744 $ — $ — Due after one year through five years 96,287 101,719 — — Due after five years through ten years 44,637 48,053 — — Due after ten years 6,777 7,026 — — Subtotal 174,416 183,542 — — Mortgage-backed securities and collateralized mortgage obligations 6,795,964 6,962,295 461,557 461,115 Total $ 6,970,380 $ 7,145,837 $ 461,557 $ 461,115 The Company recorded no gain or loss on the sale of securities for the three and nine months ended September 30, 2020 and 2019. As of September 30, 2020, the Company did not own any non-agency collateralized mortgage obligations. At September 30, 2020 and December 31, 2019, the Company did not own securities of any one issuer (other than the U.S. government and its agencies) for which aggregate adjusted cost exceeded 10% of the consolidated shareholders’ equity at such respective dates. Securities with an amortized cost of $5.80 billion and $5.98 billion and a fair value of $5.94 billion and $5.99 billion at September 30, 2020 and December 31, 2019, respectively, were pledged to collateralize public deposits and for other purposes required or permitted by law. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Credit Losses | 5. LOANS AND ALLOWANCE FOR CREDIT LOSSES The loan portfolio consists of various types of loans and is categorized by major type as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Residential mortgage loans held for sale $ 51,694 $ 80,959 Commercial and industrial 4,150,189 3,205,595 Real estate: Construction, land development and other land loans 2,081,762 2,064,167 1-4 family residential (includes home equity) 4,615,710 4,306,452 Commercial real estate (includes multi-family residential) 6,179,901 6,556,285 Farmland 419,126 495,558 Agriculture 179,846 185,297 Consumer and other 386,799 398,271 Total loans held for investment, excluding Warehouse Purchase Program 18,013,333 17,211,625 Warehouse Purchase Program 2,730,614 1,552,762 Total loans, including Warehouse Purchase Program $ 20,795,641 $ 18,845,346 Concentrations of Credit. Most of the Company’s lending activity occurs within the states of Texas and Oklahoma. Commercial real estate loans, 1-4 family residential loans and construction, land development and other land loans make up 71.3% of the Company’s total loan portfolio, excluding Warehouse Purchase Program loans, at September 30, 2020. As of September 30, 2020 and December 31, 2019, excluding Warehouse Purchase Program loans, there were no concentrations of loans related to any single industry in excess of 10% Related Party Loans. As of September 30, 2020 and December 31, 2019, loans outstanding to directors, officers and their affiliates totaled $1.8 million and $4.2 million, respectively. All transactions between the Company and such related parties are conducted in the ordinary course of business and made on the same terms and conditions as similar transactions with unaffiliated persons. An analysis of activity with respect to these related party loans is as follows: As of and for the nine months ended September 30, 2020 As of and for the year ended December (Dollars in thousands) Beginning balance on January 1 $ 4,152 $ 1,923 New loans 813 1 Transfers — 2,500 Repayments (3,134 ) (272 ) Ending balance $ 1,831 $ 4,152 Nonperforming Assets and Nonaccrual and Past Due Loans. The Company has several procedures in place to assist it in maintaining the overall quality of its loan portfolio. The Company has established underwriting guidelines to be followed by its officers, including requiring appraisals on loans collateralized by real estate. The Company also monitors its delinquency levels for any negative or adverse trends. Nevertheless, the Company’s loan portfolio could become subject to increasing pressures from deteriorating borrower credit due to general economic conditions. The Company generally places a loan on nonaccrual status and ceases accruing interest when the payment of principal or interest is delinquent for 90 days, or earlier in some cases, unless the loan is in the process of collection and the underlying collateral fully supports the carrying value of the loan. A loan may be returned to accrual status when all the principal and interest amounts contractually due are brought current and future principal and interest amounts contractually due are reasonably assured, which is typically evidenced by a sustained period (at least six months) of repayment performance by the borrower. With respect to potential problem loans, an evaluation of the borrower’s overall financial condition is made to determine the need, if any, for possible writedowns or appropriate additions to the allowance for credit losses. An aging analysis of past due loans, segregated by category of loan, is presented below: September 30, 2020 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 24,592 $ 422 $ 25,014 $ 2,211 $ 2,054,537 $ 2,081,762 Warehouse Purchase Program loans — — — — 2,730,614 2,730,614 Agriculture and agriculture real estate (includes farmland) 30 — 30 1,200 597,742 598,972 1-4 family (includes home equity) (1) 6,160 40 6,200 23,769 4,637,435 4,667,404 Commercial real estate (includes multi-family residential) 2,758 — 2,758 11,486 6,165,657 6,179,901 Commercial and industrial 4,958 — 4,958 17,153 4,128,078 4,150,189 Consumer and other 529 — 529 1,593 384,677 386,799 Total $ 39,027 $ 462 $ 39,489 $ 57,412 $ 20,698,740 $ 20,795,641 December 31, 2019 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 16,470 $ — $ 16,470 $ 1,142 $ 2,046,555 $ 2,064,167 Warehouse Purchase Program loans — — — — 1,552,762 1,552,762 Agriculture and agriculture real estate (includes farmland) 466 — 466 103 680,286 680,855 1-4 family (includes home equity) (1) 43,884 441 44,325 24,413 4,318,673 4,387,411 Commercial real estate (includes multi-family residential) 10,669 — 10,669 12,714 6,532,902 6,556,285 Commercial and industrial 7,249 — 7,249 16,809 3,181,537 3,205,595 Consumer and other 1,708 — 1,708 62 396,501 398,271 Total $ 80,446 $ 441 $ 80,887 $ 55,243 $ 18,709,216 $ 18,845,346 (1) Includes $51.7 million and $81.0 million of residential mortgage loans held for sale at September 30, 2020 and December 31, 2019, respectively. The following table presents information regarding nonperforming assets as of the dates indicated: September 30, 2020 December 31, 2019 (Dollars in thousands) Nonaccrual loans (1) (2) $ 57,412 $ 55,243 Accruing loans 90 or more days past due 462 441 Total nonperforming loans 57,874 55,684 Repossessed assets 120 323 Other real estate 11,548 6,936 Total nonperforming assets $ 69,542 $ 62,943 Nonperforming assets to total loans and other real estate 0.33 % 0.33 % Nonperforming assets to total loans, excluding Warehouse Purchase Program loans, and other real estate 0.38 % 0.36 % (1) Includes troubled debt restructurings of $13.2 million and $13.6 million as of September 30, 2020 and December 31, 2019, respectively. (2) There were no nonperforming or troubled debt restructurings of warehouse lines of credit or Warehouse Purchase Program loans for the periods presented. The Company had $69.5 million in nonperforming assets at September 30, 2020 compared with $62.9 million at December 31, 2019. Nonperforming assets were 0.33% If interest on nonaccrual loans had been accrued under the original loan terms, approximately $2.3 million and $2.2 million would have been recorded as income for the nine months ended September 30, 2020 and 2019, respectively. The Company had $57.4 million in nonaccrual loans at September 30, 2020 compared with $50.0 million at September 30, 2019. Acquired Loans. Acquired loans were preliminarily recorded at fair value based on a discounted cash flow valuation methodology that considers, among other things, interest rates, projected default rates, loss given default, and recovery rates. During the valuation process, the Company identified purchased credit deteriorated (“PCD”) and Non-PCD loans in the acquired loan portfolios. Loans acquired with evidence of credit quality deterioration at acquisition for which it was probable that the Company would not be able to collect all contractual amounts due were accounted for as PCD. PCD loan identification considers the following factors: payment history and past due status, debt service coverage, loan grading, collateral values and other factors that may indicate deterioration of credit quality since origination. Non-PCD loan identification considers the following factors: account types, remaining terms, annual interest rates or coupons, current market rates, interest types, past delinquencies, timing of principal and interest payments, loan to value ratios, loss exposures and remaining balances. Accretion of purchased discounts on PCD loans will be based on future cash flows, taking into account contractual maturities. Accretion of purchased discounts on Non-PCD loans will be recognized on a level-yield basis based on contractual maturity of individual loans. PCD Loans. The recorded investment in PCD loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of September 30, 2020 and December 31, 2019 . September 30, 2020 December 31, 2019 (Dollars in thousands) PCD loans: Outstanding balance $ 226,080 $ 410,785 Discount (1) (16,760 ) (167,320 ) (2) Recorded investment $ 209,320 $ 243,465 (1) ASU 2016-13 became effective for the Company on January 1, 2020. (2) Includes $131.8 million in PCD loans credit discount. Changes in the accretable yield for acquired PCD loans for the three and nine months ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Balance at beginning of period $ 22,565 $ 904 $ 35,654 $ 1,534 Adjustments — 26 (449 ) 62 Accretion charge-offs — — (354 ) — Accretion (5,805 ) (277 ) (18,091 ) (943 ) Balance at September 30, $ 16,760 $ 653 $ 16,760 $ 653 Income recognition on PCD loans is subject to the timing and amount of future cash flows. PCD loans for which the Company is accruing interest income are not considered non-performing or impaired. The adoption of ASU 2016-13, “ Financial Instruments-Credit-Losses (ASC Topic 326) – Measurement of Credit Losses on Financial Instruments Non-PCD Loans. The recorded investment in Non-PCD loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 (Dollars in thousands) Non-PCD loans: Outstanding balance $ 4,468,843 $ 6,102,540 Discount (53,115 ) (110,130 ) Recorded investment $ 4,415,728 $ 5,992,410 Changes in the discount accretion for Non-PCD loans for the three and nine months ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Balance at beginning of period $ 69,860 $ 12,479 $ 110,130 $ 14,833 Adjustments (16 ) — 296 — Accretion charge-offs — — (120 ) — Accretion (16,729 ) (1,006 ) (57,191 ) (3,360 ) Balance at September 30, $ 53,115 $ 11,473 $ 53,115 $ 11,473 Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio and methodology for calculating the allowance for credit losses, management assigns and tracks loan grades to be used as credit quality indicators. The following is a general description of the loan grades used: Grade 1— Credits in this category have risk potential that is virtually nonexistent. These loans may be secured by insured certificates of deposit, insured savings accounts, U.S. Government securities and highly rated municipal bonds. Grade 2— Credits in this category are of the highest quality. These borrowers represent top rated companies and individuals with unquestionable financial standing with excellent global cash flow coverage, net worth, liquidity and collateral coverage. Grade 3— Credits in this category are not immune from risk but are well protected by the collateral and paying capacity of the borrower. These loans may exhibit a minor unfavorable credit factor, but the overall credit is sufficiently strong to minimize the possibility of loss. Grade 4— Credits in this category are considered to be of acceptable credit quality with moderately greater risk than Grade 3 and receiving closer monitoring. Loans in this category have sources of repayment that remain sufficient to preclude a larger than normal probability of default and secondary sources are likewise currently of sufficient quantity, quality, and liquidity to protect the Company against loss of principal and interest. These borrowers have specific risk factors, but the overall strength of the credit is acceptable based on other mitigating credit and/or collateral factors and can repay the debt in the normal course of business. Grade 5— Credits in this category constitute an undue and unwarranted credit risk; however, the factors do not rise to a level of substandard. These credits have potential weaknesses and/or declining trends that, if not corrected, could expose the Company to risk at a future date. These loans are monitored on the Company’s internally-generated watch list and evaluated on a quarterly basis. Grade 6— Credits in this category are considered “substandard” but “non-impaired” loans in accordance with regulatory guidelines. Loans in this category have well-defined weakness that, if not corrected, could make default of principal and interest possible. Loans in this category are still accruing interest and may be dependent upon secondary sources of repayment and/or collateral liquidation. Grade 7— Credits in this category are deemed “substandard” and “impaired” pursuant to regulatory guidelines. As such, the Company has determined that it is probable that less than 100% of the contractual principal and interest will be collected. These loans are individually evaluated for a specific reserve and will typically have the accrual of interest stopped. Grade 8— Credits in this category include “doubtful” loans in accordance with regulatory guidance. Such loans are no longer accruing interest and factors indicate a loss is imminent. These loans are also deemed “impaired.” While a specific reserve may be in place while the loan and collateral is being evaluated, these loans are typically charged down to an amount the Company estimates is collectible. Grade 9— Credits in this category are deemed a “loss” in accordance with regulatory guidelines and have been charged off or charged down. The Company may continue collection efforts and may have partial recovery in the future. The following table presents loans by risk grade, by category of loan and year of origination/renewal at September 30, 2020. Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (Dollars in thousands) Construction, Land Development and Other Land Loans Grade 1 $ — $ — $ — $ — $ — $ — $ — $ — $ — Grade 2 — — — 86 126 267 — — 479 Grade 3 646,011 630,323 297,303 128,581 23,831 56,166 114,716 — 1,896,931 Grade 4 70,111 30,016 33,405 19,562 3,806 7,187 10,134 — 174,221 Grade 5 — — 829 4,510 — 117 — — 5,456 Grade 6 — — — — 565 1,325 — — 1,890 Grade 7 — — 1,080 — 6 390 734 — 2,210 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans — 171 115 289 — — — — 575 Total 716,122 660,510 332,732 153,028 28,334 65,452 125,584 — 2,081,762 Agriculture and Agriculture Real Estate (includes Farmland) Grade 1 $ 2,004 $ 542 $ 177 $ 182 — — $ 10,032 $ 2 $ 12,939 Grade 2 30 — — 351 5 1,532 310 — 2,228 Grade 3 95,589 81,626 62,552 52,243 47,463 92,816 74,173 145 506,607 Grade 4 15,376 10,246 4,873 3,043 4,633 17,219 9,021 23 64,434 Grade 5 1,984 3,705 577 — — 14 2,302 — 8,582 Grade 6 804 — 59 — 186 181 — — 1,230 Grade 7 — 308 15 — — 853 — — 1,176 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans 976 209 296 — — 295 — — 1,776 Total 116,763 96,636 68,549 55,819 52,287 112,910 95,838 170 598,972 1-4 Family (includes Home Equity) (1) Grade 1 $ 117 $ — $ — $ — $ — $ — $ 95 $ — $ 212 Grade 2 288 315 987 676 254 7,705 1,133 — 11,358 Grade 3 1,010,159 910,378 612,545 482,791 473,571 888,135 125,281 3,313 4,506,173 Grade 4 7,620 16,515 23,244 22,256 10,766 36,955 2,550 249 120,155 Grade 5 — 219 157 6 712 1,971 — — 3,065 Grade 6 23 39 3 332 — 1,524 — — 1,921 Grade 7 — 1,535 952 3,108 1,544 12,114 3,485 — 22,738 Grade 8 — — — — 9 87 — — 96 Grade 9 — — — — — — — — — PCD Loans — — — — 238 1,448 — — 1,686 Total 1,018,207 929,001 637,888 509,169 487,094 949,939 132,544 3,562 4,667,404 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (Dollars in thousands) Commercial Real Estate (includes Multi-Family Residential) Grade 1 $ — $ — $ — $ — $ — $ — $ — $ — $ — Grade 2 10,046 2,006 — 7,450 201 1,386 — — 21,089 Grade 3 468,230 986,980 983,614 824,609 464,007 1,018,983 63,247 2,072 4,811,742 Grade 4 89,339 79,177 209,634 214,653 156,972 318,504 8,505 6,597 1,083,381 Grade 5 6,120 7,556 16,457 2,771 35,280 43,836 1,306 — 113,326 Grade 6 10,014 174 — 10,587 3,176 14,906 — — 38,857 Grade 7 19 — 1,238 15 7,840 847 1,485 — 11,444 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans 48,199 21,935 5,361 6,278 200 18,089 — — 100,062 Total 631,967 1,097,828 1,216,304 1,066,363 667,676 1,416,551 74,543 8,669 6,179,901 Commercial and Industrial Grade 1 $ 1,389,705 $ 7,320 $ 4,109 $ 917 $ 834 $ 569 $ 18,249 $ 162 $ 1,421,865 Grade 2 2,395 10,990 17,344 1,348 1,422 1,052 24,324 — 58,875 Grade 3 342,204 370,525 302,552 110,782 74,182 150,914 715,920 11,273 2,078,352 Grade 4 54,749 74,189 51,515 36,188 9,627 30,103 106,284 1,179 363,834 Grade 5 5,213 30,676 4,309 7 218 1,924 11,310 5,010 58,667 Grade 6 390 104 247 — 1,152 1,906 22,159 — 25,958 Grade 7 759 344 13,002 390 988 288 36,901 17 52,689 Grade 8 — — — — 8 — — — 8 Grade 9 — — — — — — — — — PCD Loans 16,637 22,115 20,505 10,932 — 798 2,855 16,099 89,941 Total $ 1,812,052 $ 516,263 $ 413,583 $ 160,564 $ 88,431 $ 187,554 $ 938,002 $ 33,740 $ 4,150,189 Consumer and Other Grade 1 $ 37,213 $ 11,159 $ 4,170 $ 2,469 $ 1,370 $ 157 $ 1,523 $ — $ 58,061 Grade 2 2,350 1,036 407 31,450 1,583 — 1,204 — 38,030 Grade 3 39,858 50,310 31,445 22,314 7,615 16,122 74,327 73 242,064 Grade 4 4,237 2,052 964 75 84 118 14,148 — 21,678 Grade 5 — — 66 18 — — 9,997 — 10,081 Grade 6 — — — — — — — — — Grade 7 2 1,569 7 4 — 21 2 — 1,605 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans 3,800 — — — — — 11,480 — 15,280 Total $ 87,460 $ 66,126 $ 37,059 $ 56,330 $ 10,652 $ 16,418 $ 112,681 $ 73 $ 386,799 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (Dollars in thousands) Warehouse Purchase Program Grade 1 $ — $ — $ — $ — $ — $ — $ — $ — $ — Grade 2 — — — — — — — — — Grade 3 2,730,614 — — — — — — — 2,730,614 Grade 4 — — — — — — — — — Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans — — — — — — — — — Total $ 2,730,614 $ — $ — $ — $ — $ — $ — $ — $ 2,730,614 Total Grade 1 $ 1,429,039 $ 19,021 $ 8,456 $ 3,568 $ 2,204 $ 726 $ 29,899 $ 164 $ 1,493,077 Grade 2 15,109 14,347 18,738 41,361 3,591 11,942 26,971 — 132,059 Grade 3 5,332,665 3,030,142 2,290,011 1,621,320 1,090,669 2,223,136 1,167,664 16,876 16,772,483 Grade 4 241,432 212,195 323,635 295,777 185,888 410,086 150,642 8,048 1,827,703 Grade 5 13,317 42,156 22,395 7,312 36,210 47,862 24,915 5,010 199,177 Grade 6 11,231 317 309 10,919 5,079 19,842 22,159 — 69,856 Grade 7 780 3,756 16,294 3,517 10,378 14,513 42,607 17 91,862 Grade 8 — — — — 17 87 — — 104 Grade 9 — — — — — — — — — PCD Loans 69,612 44,430 26,277 17,499 438 20,630 14,335 16,099 209,320 Total $ 7,113,185 $ 3,366,364 $ 2,706,115 $ 2,001,273 $ 1,334,474 $ 2,748,824 $ 1,479,192 $ 46,214 $ 20,795,641 (1) Includes $51.7 million of residential mortgage loans held for sale at September 30, 2020. Allowance for Credit Losses on Loans. The allowance for credit losses is adjusted through charges to earnings in the form of a provision for credit losses. Management has established an allowance for credit losses which it believes is adequate as of September 30, 2020 for estimated losses in the Company’s loan portfolio. The amount of the allowance for credit losses is affected by the following: (1) charge-offs of loans that occur when loans are deemed uncollectible and decrease the allowance, (2) recoveries on loans previously charged off that increase the allowance and (3) provisions for credit losses charged to earnings that increase the allowance or provision releases returned to earnings that decrease the allowance. Based on an evaluation of the loan portfolio and consideration of the factors listed below, management presents a quarterly review of the allowance for credit losses to the Bank’s Board of Directors, indicating any change in the allowance since the last review and any recommendations as to adjustments in the allowance. Although management believes it uses the best information available to make determinations with respect to the allowance for credit losses, future adjustments may be necessary if economic conditions or the borrower’s performance differ from the assumptions used in making the initial determinations. The Company’s allowance for credit losses on loans consists of two components: (1) a specific valuation allowance based on probable losses on specifically identified loans and (2) a general valuation allowance based on historical lifetime loan loss experience, general economic conditions and other qualitative risk factors both internal and external to the Company. In setting the specific valuation allowance, the Company follows a loan review program to evaluate the credit risk in the total loan portfolio and assigns risk grades to each loan. Through this loan review process, the Company maintains an internal list of impaired loans, which along with the delinquency list of loans, helps management assess the overall quality of the loan portfolio and the adequacy of the allowance for credit losses. All loans that have been identified as impaired are reviewed on a quarterly basis in order to determine whether a specific reserve is required. For certain impaired loans, the Company allocates a specific loan loss reserve primarily based on the value of the collateral securing the impaired loan in accordance with ASC Topic 326-20, “ Financial Instruments - Credit Losses . ” The specific reserves are determined on an individual loan basis. Loans for which specific reserves are provided are excluded from the general valuation allowance described below. In connection with this review of the loan portfolio, the Company considers risk elements attributable to particular loan types or categories in assessing the quality of individual loans. Some of the risk elements include: • for 1-4 family residential mortgage loans, the borrower’s ability to repay the loan, including a consideration of the debt to income ratio and employment and income stability, the loan to value ratio, and the age, condition and marketability of collateral; • for commercial real estate loans and multifamily residential loans, the debt service coverage ratio (income from the property in excess of operating expenses compared to loan payment requirements), operating results of the owner in the case of owner-occupied properties, the loan to value ratio, the age and condition of the collateral and the volatility of income, property value and future operating results typical of properties of that type; • for construction, land development and other land loans, the perceived feasibility of the project including the ability to sell developed lots or improvements constructed for resale or the ability to lease property constructed for lease, the quality and nature of contracts for presale or prelease, if any, experience and ability of the developer and loan to value ratio; • for commercial and industrial loans, the operating results of the commercial, industrial or professional enterprise, the borrower’s business, professional and financial ability and expertise, the specific risks and volatility of income and operating results typical for businesses in that category and the value, nature and marketability of collateral; • for the Warehouse Purchase Program, the capitalization and liquidity of the mortgage banking client, the operating experience, the client’s satisfactory underwriting of purchased loans and the consistent timeliness by client of loan resale to investors; • for agriculture real estate loans, the experience and financial capability of the borrower, projected debt service coverage of the operations of the borrower and loan to value ratio; and • for non-real estate agriculture loans, the operating results, experience and financial capability of the borrower, historical and expected market conditions and the value, nature and marketability of collateral. In addition, for each category, the Company considers secondary sources of income and the financial strength and credit history of the borrower and any guarantors. In determining the amount of the general valuation allowance, management considers factors such as historical lifetime loan loss experience, concentration risk of specific loan types, the volume, growth and composition of the Company’s loan portfolio, current economic conditions and reasonable and supportable forecasted economic conditions that may affect the borrower’s ability to pay and the value of collateral, the evaluation of the Company’s loan portfolio through its internal loan review process, general economic conditions and other qualitative risk factors both internal and external to the Company and other relevant factors in accordance with ASC Topic 326, “ Financial Instruments – Credit Losses.” The following table details activity in the allowance for credit losses on loans by category of loan for the three and nine months ended September 30, 2020 and 2019. Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Allowance for credit losses: Three Months Ended Balance June 30, 2020 $ 39,862 $ 6,898 $ 33,021 $ 78,207 $ 149,884 $ 16,333 $ 324,205 Provision for credit losses 4,187 554 7,517 3,188 (4,982 ) (464 ) 10,000 Charge-offs (500 ) — (436 ) (676 ) (8,444 ) (1,092 ) (11,148 ) Recoveries 22 17 184 — 99 256 578 Net charge-offs (478 ) 17 (252 ) (676 ) (8,345 ) (836 ) (10,570 ) Balance September 30, 2020 $ 43,571 $ 7,469 $ 40,286 $ 80,719 $ 136,557 $ 15,033 $ 323,635 Nine Months Ended Beginning balance, prior to adoption of ASC 326 $ 14,654 $ 2,971 $ 15,277 $ 12,332 $ 40,445 $ 1,790 $ 87,469 Impact of adoption ASC 326 14,075 2,797 8,267 48,990 139,624 26,785 240,538 Provision for credit losses 15,302 1,680 17,050 19,992 (22,990 ) (11,034 ) 20,000 Charge-offs (500 ) (62 ) (611 ) (676 ) (21,733 ) (3,529 ) (27,111 ) Recoveries 40 83 303 81 1,211 1,021 2,739 Net charge-offs (460 ) 21 (308 ) (595 ) (20,522 ) (2,508 ) (24,372 ) Balance September 30, 2020 $ 43,571 $ 7,469 $ 40,286 $ 80,719 $ 136,557 $ 15,033 $ 323,635 Allowance for credit losses: Three Months Ended Balance June 30, 2019 $ 15,886 $ 3,816 $ 14,383 $ 12,166 $ 39,177 $ 1,578 $ 87,006 Provision for credit losses 290 188 543 452 (763 ) 970 1,100 Charge-offs — (294 ) - — (419 ) (1,024 ) (1,737 ) Recoveries 6 16 9 1 502 158 692 Net charge-offs 6 (278 ) 9 1 83 (866 ) (1,045 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 Nine Months Ended Balance December 31, 2018 $ 15,582 $ 2,693 $ 14,135 $ 11,220 $ 40,223 $ 1,587 $ 86,440 Provision for credit losses 21 (921 ) 799 1,396 (918 ) 2,223 2,600 Charge-offs (63 ) (358 ) (22 ) — (2,501 ) (2,821 ) (5,765 ) Recoveries 62 1,312 23 3 1,693 693 3,786 Net charge-offs (1 ) 954 1 3 (808 ) (2,128 ) (1,979 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 The allowance for credit losses on loans as of September 30, 2020 totaled $323.6 million or 1.56% of total loans, including acquired loans with discounts, an increase of $236.2 million or 270.0% compared to the allowance for credit losses on loans totaling $87.5 million or 0.46% of total loans, including acquired loans with discounts, for December 31, 2019. The increase in allowance for credit losses was primarily due to $240.5 million related to the Company’s adoption of CECL. The increase in allowance for loan losses was additionally driven by the anticipated impact of the on-going novel strain of coronavirus disease (“COVID-19”) pandemic, elevated unemployment levels and other internal and external environment factors, which resulted in a provision for credit losses of $10.0 million and $20.0 million for the three and nine months ended September 30, 2020, respectively. Net charge-offs were $10.6 and $24.4 million for the three and nine months ended September 30, 2020, respectively. Net charge-offs for the third quarter of 2020 included $8.6 million related to PCD loans that had specific reserves of $15.7 million, of which $8.6 million was allocated to the charge-offs and $7.1 million moved to the general reserve. Additionally, $6.1 million of specific reserves on resolved PCD loans was released to the general reserve without taking any charge-off. Net charge-offs for the nine months ended September 30, 2020 included $ 21.0 million related to PCD loans that had specific reserves of $44.2 million, of which $ 21.0 million was allocated to the charge-offs and $ 23.2 million moved to the general reserve. The Company actively participated in the Paycheck Protection Program (“PPP”), under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) during the second quarter of 2020. As of September 30, 2020, the Company had 11,948 PPP loans totaling $1.39 billion. The loans have two year terms, are fully guaranteed by the SBA, and do not carry an allowance. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures. The allowance for credit losses on off-balance sheet credit exposures estimates expected credit losses over the contractual period in which there is exposure to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance is adjusted as a provision for credit loss expense. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on the commitments expected to fund. The estimate of commitments expected to fund is affected by historical analysis looking at utilization rates. The expected credit loss rates applied to the commitments expected to fund are affected by the general valuation allowance utilized for outstanding balances with the same underlying assumptions and drivers. As of September 30, 2020, the Company had $29.9 million in allowance for credit losses on off-balance sheet credit exposures, compared with $5.6 million as of December 31, 2019. The allowance for credit losses on off-balance sheet credit exposures is a separate line item on the Company’s consolidated balance sheet. As of September 30, 2020, the Company had $1.75 billion in commitments expected to fund. Troubled Debt Restructurings. The restructuring of a loan is considered a “troubled debt restructuring” if both (1) the borrower is experiencing financial difficulties and (2) the creditor has granted a concession. Concessions may include interest rate reductions or below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. Under ASC Topic 310-40 “ the Company evaluates all loan modifications to identify whether the restructuring constitutes a troubled debt restructuring. As of September 30, 2020 and 2019, the Company had $13.2 million and $14.3 million, respectively, in outstanding troubled debt restructurings The following table presents information regarding the recorded investment of loans that were modified as troubled debt restructurings during the nine months ended September 30, 2020 and 2019. Nine Months Ended September 30, 2020 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Construction, land development and other land loans — $ — $ — — $ — $ — Agriculture and agriculture real estate (includes farmland) — — — — — — 1-4 Family (includes home equity) 1 23 12 — — — Commercial real estate (includes multi-family residential) — — — — — — Commercial and industrial — — — 2 14,993 14,188 Consumer and other — — — — — — Total 1 $ 23 $ 12 2 $ 14,993 $ 14,188 As of September 30, 2020, there have been no defaults on any loans that were modified as troubled debt restructurings during the preceding twelve months. |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair values represent the estimated price that would be received from selling an asset or paid to transfer a liability, otherwise known as an “exit price.” Securities available for sale are recorded at fair value on a recurring basis. Additionally, from time to time, the Company may be required to record at fair value other assets on a nonrecurring basis. These nonrecurring fair value adjustments typically involve application of lower-of-cost-or-market accounting or write downs of individual assets. ASC Topic 820, “Fair Value Measurements and Disclosures” Fair Value Hierarchy The Company groups financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: • Level 1—Quoted prices in active markets for identical assets or liabilities. • Level 2—Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities) or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of an asset or liability is the price that would be received to sell that asset or paid to transfer that liability in an orderly transaction occurring in the principal market (or most advantageous market in the absence of a principal market) for such asset or liability. In estimating fair value, the Company utilizes valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. Such valuation techniques are consistently applied. Inputs to valuation techniques include the assumptions that market participants would use in pricing an asset or liability. The fair value disclosures below represent the Company’s estimates based on relevant market information and information about the financial instruments. Fair value estimates are based on judgments regarding current economic conditions, risk characteristics of the various instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in the above methodologies and assumptions could significantly affect the estimates. The following tables present fair values for assets and liabilities measured at fair value on a recurring basis: As of September 30, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: Collateralized mortgage obligations $ — $ 418,188 $ — $ 418,188 Mortgage-backed securities — 42,927 — 42,927 Total $ — $ 461,115 $ — $ 461,115 Derivative financial instruments: Loan customer counterparty $ — $ 13,510 $ — $ 13,510 Financial institution counterparty — — — — Liabilities: Derivative financial instruments: Loan customer counterparty $ — $ — $ — $ — Financial institution counterparty — 13,510 — 13,510 As of December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: States and political subdivisions $ — $ 471 $ — $ 471 Collateralized mortgage obligations — 235,773 — 235,773 Mortgage-backed securities — 51,419 — 51,419 Total available for sale securities $ — $ 287,663 $ — $ 287,663 Derivative financial instruments: Interest rate lock commitments $ — 305 $ — 305 Forward mortgage-backed securities trades — 3 — 3 Loan customer counterparty — 4,829 — 4,829 Financial institution counterparty — 240 — 240 Liabilities: Derivative financial instruments: Interest rate lock commitments $ — $ — $ — $ — Forward mortgage-backed securities trades — 83 — 83 Loan customer counterparty — 240 — 240 Financial institution counterparty — 4,829 — 4,829 Certain assets and liabilities are measured at fair value on a nonrecurring 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). These instruments include other real estate owned, repossessed assets, held to maturity debt securities, loans held for sale and impaired loans, which are included as loans held for investment. For the three and nine months ended September 30, 2020, the Company had additions to other real estate owned of $7.4 million and $8.2 million, respectively, of which $6.2 million and $6.9 million, respectively, were outstanding as of September 30, 2020. For the three and nine months ended September 30, 2020, the Company had additions to impaired loans of $8.9 million and $26.3 million, respectively, of which $8.9 million and $13.0 million, respectively, were outstanding as of September 30, 2020. The remaining financial assets and liabilities measured at fair value on a non-recurring basis that were recorded in 2020 and remained outstanding at September 30, 2020 were not significant. The following tables present carrying and fair value information of financial instruments as of the dates indicated: As of September 30, 2020 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Cash and due from banks $ 1,031,193 $ 1,031,193 $ — $ — $ 1,031,193 Federal funds sold 56,469 56,469 — — 56,469 Held to maturity securities 6,970,380 — 7,145,837 — 7,145,837 Loans held for sale 51,694 — 51,694 — 51,694 Loans held for investment, net of allowance 17,689,698 — — 17,704,208 17,704,208 Loans held for investment - Warehouse Purchase Program 2,730,614 — 2,730,614 — 2,730,614 Other real estate owned 11,548 — 11,548 — 11,548 Liabilities Deposits: Noninterest-bearing $ 8,998,328 $ — $ 8,998,328 $ — $ 8,998,328 Interest-bearing 17,460,878 — 17,485,431 — 17,485,431 Other borrowings 2,570 — 2,782 — 2,782 Securities sold under repurchase agreements 380,274 — 380,297 — 380,297 Subordinated notes 125,146 — 125,586 — 125,586 As of December 31, 2019 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Cash and due from banks $ 573,589 $ 573,589 $ — $ — $ 573,589 Federal funds sold 519 519 — — 519 Held to maturity securities 8,282,393 — 8,303,851 — 8,303,851 Loans held for sale 80,959 — 80,959 — 80,959 Loans held for investment, net of allowance 17,124,156 — — 17,045,523 17,045,523 Loans held for investment - Warehouse Purchase Program 1,552,762 — 1,552,762 — 1,552,762 Other real estate owned 6,936 — 6,936 — 6,936 Liabilities Deposits: Noninterest-bearing $ 7,763,894 $ — $ 7,763,894 $ — $ 7,763,894 Interest-bearing 16,435,838 — 16,437,453 — 16,437,453 Other borrowings 1,303,730 — 1,303,941 — 1,303,941 Securities sold under repurchase agreements 377,294 — 377,302 — 377,302 Subordinated notes 125,804 — 125,743 — 125,743 The following is a description of the fair value estimates, methods and assumptions that are used by the Company in estimating the fair values of financial instruments. Loans held for sale — Loans held for sale are carried at the lower of cost or estimated fair value. Fair value for consumer mortgages held for sale is based on commitments on hand from investors or prevailing market prices. As such, the Company classifies loans held for sale subjected to nonrecurring fair value adjustments as Level 2. Loans held for investment — The Company does not record loans at fair value on a recurring basis. As such, valuation techniques discussed herein for loans are primarily for estimating fair value disclosures. The Company refined the calculation to estimate fair value for loans held for investment to be in accordance with ASU 2016-01. The refined discounted cash flow calculation to determine fair value considers internal and market-based information such as prepayment risk, cost of funds and liquidity. From time to time, the Company records nonrecurring fair value adjustments to impaired loans to reflect (1) partial write downs that are based on the observable market price or current appraised value of the collateral, or (2) the full charge-off of the loan carrying value. Where appraisals are not available, estimated cash flows are discounted using a rate commensurate with the credit risk associated with those cash flows. Assumptions regarding credit risk, cash flows and discount rates are judgmentally determined using available market information and specific borrower information. The Company classifies the estimated fair value of loans held for investment as Level 3. Other real estate owned — Other real estate owned is primarily foreclosed properties securing residential loans and commercial real estate. Foreclosed assets are adjusted to fair value less estimated costs to sell upon transfer of the loans to other real estate owned. Subsequently, these assets are carried at the lower of carrying value or fair value less estimated costs to sell. Other real estate carried at fair value based on an observable market price or a current appraised value is classified by the Company as Level 2. When management determines that the fair value of other real estate requires additional adjustments, either as a result of a non-current appraisal or when there is no observable market price, the Company classifies the other real estate as Level 3. The fair value estimates presented herein are based on pertinent information available to management at September 30, 2020. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. |
Goodwill and Core Deposit Intan
Goodwill and Core Deposit Intangibles | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangibles | 7. GOODWILL AND CORE DEPOSIT INTANGIBLES Changes in the carrying amount of the Company’s goodwill and core deposit intangibles for the nine months ended September 30, 2020 and the year ended December 31, 2019 were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance as of December 31, 2018 $ 1,900,845 $ 32,883 Less: Amortization — (6,537 ) Add: LegacyTexas Merger 1,322,826 60,058 Balance as of December 31, 2019 3,223,671 86,404 Less: Amortization — (9,926 ) Add: Measurement period adjustment of LegacyTexas Merger 8,021 — Balance as of September 30, 2020 $ 3,231,692 $ 76,478 Goodwill is recorded as of the acquisition date of each entity. The Company may record subsequent adjustments to goodwill for amounts undeterminable at acquisition date, such as deferred taxes and real estate valuations, and therefore the goodwill amounts may change accordingly. The Company initially records the total premium paid on acquisitions as goodwill. After finalizing the valuation, core deposit intangibles are identified and reclassified from goodwill to core deposit intangibles on the balance sheet. This reclassification has no effect on total assets, liabilities, shareholders’ equity, net income or cash flows. Management performs an evaluation annually, and more frequently if a triggering event occurs, of whether any impairment of the goodwill and core deposit intangibles has occurred. If any such impairment is determined, a write-down is recorded. As of September 30, 2020, there was no impairment recorded on goodwill and core deposit intangibles. The measurement period for the Company to determine the fair value of acquired identifiable assets and assumed liabilities will be at the end of the earlier of (1) twelve months from the date of acquisition or (2) as soon as the Company receives the information it was seeking about facts and circumstances that existed as of the date of acquisition. Core deposit intangibles are being amortized on a non-pro rata basis over their estimated lives, which the Company believes is between 10 and 15 years. Amortization expense related to intangible assets totaled $3.3 million and $1.2 million for the three months ended September 30, 2020 and 2019, respectively, and $9.9 million and $3.8 million for the nine months ended September 30, 2020 and 2019, respectively. The estimated aggregate future amortization expense for core deposit intangibles remaining as of September 30, 2020 is as follows (dollars in thousands): Remaining 2020 $ 3,243 2021 11,551 2022 10,336 2023 9,360 2024 8,699 Thereafter 33,289 Total $ 76,478 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES The amount of federal and state income tax expense is influenced by the amount of pre-tax income, the amount of tax-exempt income and the amount of other nondeductible expenses. Income tax expense totaled $35.1 million for the three months ended September 30, 2020 compared with $21.1 million for the same period in 2019, an increase of $13.9 million or 66.1%. The increase was primarily due the increase in pre-tax income related to the Merger . In response to the COVID-19 pandemic, on March 27, 2020, the President of the United States signed the CARES Act into law. The CARES Act permits a five-year carryback period for NOLs, which allowed the Company to generate an anticipated tax refund and income tax benefit resulting from the tax rate differential between the current statutory tax rate of 21% and the 35% statutory tax rate in prior years during the carryback period. Pursuant to this provision of the CARES Act, the Company recorded a federal current benefit for taxes on income during the nine months ended September 30, 2020 due to the NOLs generated in 2019 by LegacyTexas that were used to offset taxable income generated between 2014 and 2017 taxed at 35% resulting in a tax benefit of $20.1 million, which is included in provision for income taxes in the accompanying condensed consolidated statements of income. This caused a reduction in the effective tax rate during the nine months ended September 30, 2020 as NOLs carried back to tax years 2014 through 2017 are applied at a federal tax rate of 35% applicable to those tax years, compared to a 21% tax rate effective at September 30, 2020. As a result, during the nine months ended September 30, 2020, the Company’s total deferred tax asset decreased by $31.9 million. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | 9. STOCK–BASED COMPENSATION At September 30, 2020, the Company had two stock-based employee compensation plans with awards outstanding. On March 3, 2020, Bancshares’ Board of Directors established the Prosperity Bancshares, Inc. 2020 Stock Incentive Plan (the “2020 Plan”), subject to approval by the Company’s shareholders. The Company’s shareholders approved the 2020 Plan at the annual meeting of shareholders on April 21, 2020. The 2020 Plan authorizes the issuance of up to 2,500,000 shares of common stock upon the exercise of options or pursuant to the grant or exercise, as the case may be, of other awards granted under the 2020 Plan, including incentive stock options, nonqualified stock options, stock appreciation rights, shares of restricted stock and restricted stock units. As of September 30, 2020, 12,500 shares of unvested restricted stock have been granted under the 2020 Plan. During 2012, Bancshares’ Board of Directors established the Prosperity Bancshares, Inc. 2012 Stock Incentive Plan (the “2012 Plan”), which was approved by Bancshares’ shareholders and authorized the issuance of up to 1,250,000 shares of common stock upon the exercise of options granted under the 2012 Plan or pursuant to the grant or exercise, as the case may be, of other awards granted under the 2012 Plan, including restricted stock, stock appreciation rights, phantom stock awards and performance awards. As of September 30, 2020, 370,313 shares of common stock had been issued pursuant to vested awards and 489,312 shares of unvested restricted stock had been granted under the 2012 Plan prior to the adoption of the 2020 Plan by the Company’s shareholders. The Company does not plan to make any further awards pursuant to the 2012 Plan. As of September 30, 2020, the Company had no stock options outstanding. Stock-based compensation expense related to restricted stock was $3.2 million and $2.5 million during the three months ended September 30, 2020 and 2019, respectively, and $ 9.5 million and $ 7.6 million during the nine months ended September 30, 2020 and 2019 . As of September 30, 2020 , there was $ 8.9 million of total unrecognized compensation expense related to stock-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.90 years . |
Contractual Obligations and Off
Contractual Obligations and Off-Balance Sheet Items | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contractual Obligations and Off-Balance Sheet Items | 10. CONTRACTUAL OBLIGATIONS AND OFF-BALANCE SHEET ITEMS Contractual Obligations The Company’s contractual obligations and other commitments to make future payments as of September 30, 2020 (other than deposit obligations and securities sold under repurchase agreements) are summarized below. The Company’s future cash payments associated with its contractual obligations pursuant to its subordinated notes and Federal Home Loan Bank (“FHLB”) advances and notes payable as of September 30, 2020 are summarized below. The future interest payments were calculated using the current rate in effect at September 30, 2020. In September 2020, the Company gave irrevocable notice of its intent to redeem the outstanding subordinated notes on December 1, 2020. The $125.1 million outstanding balance of the subordinated notes and all accrued interest payable upon redemption is included in the “1 year or less” column below. Payments for the subordinated notes include interest of $1.1 million. Payments for FHLB notes payable include interest of $205 thousand that will be paid over the future periods. The payments do not include pre-payment options that may be available to the Company. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Subordinated notes $ 126,292 $ — $ — $ — $ 126,292 Federal Home Loan Bank advances and notes payable 974 1,067 366 18 2,425 Total $ 127,266 $ 1,067 $ 366 $ 18 $ 128,717 Leases The Company’s leases relate primarily to operating leases for office space and banking centers. The Company determines if an arrangement is a lease or contains a lease at inception. The Company’s leases have remaining lease terms of 1 to 18 years, which may include the option to extend the lease when it is reasonably certain for the Company to exercise that option. Operating lease right-of-use (ROU) assets and liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental collateralized borrowing rate to determine the present value of lease payments. Short-term leases and leases with variable lease costs are immaterial and the Company does not have any sublease arrangements. As of September 30, 2020, operating lease ROU assets and lease liabilities were approximately $54.0 million. ROU assets and lease liabilities were classified as other assets and other liabilities, respectively. As of September 30, 2020, the weighted average remaining lease terms of the Company’s operating leases were 7.4 years. The weighted average discount rate used to determine the lease liabilities as of September 30, 2020 for the Company’s operating leases was 2.34%. Cash paid for the Company’s operating leases for the three months ended September 30, 2020 and 2019 was $3.3 million and $1.4 million, respectively. Cash paid for the Company’s operating leases for the nine months ended September 30, 2020 and 2019 was $10.5 million and $4.2 million, respectively. The Company obtained $5.6 million in ROU assets in exchange for lease liabilities for four operating leases during the nine months ended September 30, 2020. The Company’s future undiscounted cash payments associated with its operating leases as of September 30, 2020 are summarized below (dollars in thousands). Remaining 2020 $ 2,637 2021 10,196 2022 9,671 2023 8,922 2024 8,042 2025 7,651 Thereafter 19,383 Total undiscounted lease payments $ 66,502 The following table presents a summary of non-cancelable future operating lease commitments as of December 31, 2019 (dollars in thousands): 2020 $ 10,137 2021 9,169 2022 8,641 2023 7,998 2024 7,119 Thereafter 24,996 Total non-cancelable lease payments $ 68,060 Off-Balance Sheet Items In the normal course of business, the Company enters into various transactions that, in accordance with GAAP, are not included in its consolidated balance sheets. The Company enters into these transactions to meet the financing needs of its customers. These transactions include commitments to extend credit and standby letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized in the consolidated balance sheets. The Company’s commitments associated with outstanding standby letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit expiring by period as of September 30, 2020 are summarized below. Since commitments associated with letters of credit, unused capacity of Warehouse Purchase Program loans, allowance for credit losses on off-balance sheet credit exposures and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Standby letters of credit $ 104,896 $ 6,616 $ 1,337 $ — $ 112,849 Unused capacity on Warehouse Purchase Program loans 803,386 — — — 803,386 Commitments to extend credit 1,743,194 852,081 342,756 1,245,988 4,184,019 Total $ 2,651,476 $ 858,697 $ 344,093 $ 1,245,988 $ 5,100,254 The Company funds an allowance for credit losses on off-balance sheet lending-related commitments and guarantees on credit card debt through a charge to provision for credit losses on the Company’s consolidated statement of income. At September 30, 2020 and December 31, 2019, this allowance for credit losses on off-balance sheet lending-related commitments and guarantees on credit card debt, included in “Allowance for credit losses on off-balance sheet credit exposures” on the Company’s consolidated balance sheet, totaled $29.9 million and $5.6 million, respectively. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Other Comprehensive Income | 11. OTHER COMPREHENSIVE INCOME The tax effects allocated to each component of other comprehensive income were as follows: Three Months Ended September 30, 2020 2019 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive income (loss): Securities available for sale: Change in unrealized gain (loss) during period $ 1,325 $ (278 ) $ 1,047 $ (1,563 ) $ 328 $ (1,235 ) Total securities available for sale 1,325 (278 ) 1,047 (1,563 ) 328 (1,235 ) Total other comprehensive income (loss) $ 1,325 $ (278 ) $ 1,047 $ (1,563 ) $ 328 $ (1,235 ) Nine Months Ended September 30, 2020 2019 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive loss: Securities available for sale: Change in unrealized loss during period $ (1,204 ) $ 253 $ (951 ) $ (344 ) $ 72 $ (272 ) Total securities available for sale (1,204 ) 253 (951 ) (344 ) 72 (272 ) Total other comprehensive loss $ (1,204 ) $ 253 $ (951 ) $ (344 ) $ 72 $ (272 ) Activity in accumulated other comprehensive income associated with securities available for sale, net of tax, was as follows: Securities Available for Sale Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Balance at December 31, 2019 $ 602 $ 602 Other comprehensive loss (951 ) (951 ) Balance at September 30, 2020 $ (349 ) $ (349 ) Balance at December 31, 2018 $ 310 $ 310 Other comprehensive loss (272 ) (272 ) Balance at September 30, 2019 $ 38 $ 38 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. DERIVATIVE FINANCIAL INSTRUMENTS The following table provides the outstanding notional balances and fair values of outstanding derivative positions at September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value (Dollars in thousands) Interest rate lock commitments $ — $ — $ — $ 9,438 $ 305 $ — Forward mortgage-backed securities trades — — — 40,750 3 83 Commercial loan interest rate swaps and caps: Loan customer counterparty 224,928 13,510 — 231,345 4,829 240 Financial institution counterparty 224,928 — 13,510 231,345 240 4,829 These financial instruments are not designated as hedging instruments and are used for asset and liability management and commercial customers’ financing needs. All derivatives are carried at fair value in either other assets or other liabilities. Interest rate lock commitments (“IRLCs”) — In the normal course of business, the Company enters into interest rate lock commitments with consumers to originate mortgage loans at a specified interest rate. These commitments, which contain fixed expiration dates, offer the borrower an interest rate guarantee provided the loan meets underwriting guidelines and closes within the timeframe established by the Company. Forward mortgage-backed securities trades — The Company manages the changes in fair value associated with changes in interest rates related to IRLCs by using forward sold commitments known as forward mortgage-backed securities trades. These instruments are typically entered into at the time the interest rate lock commitment is made. Interest rate swaps and caps — These derivative positions relate to transactions in which the Company enters into an interest rate swap or cap with a customer, while at the same time entering into an offsetting interest rate swap or cap with another financial institution. An interest rate swap transaction allows the Company’s customer to effectively convert a variable rate loan to a fixed rate. In connection with each swap, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on a similar notional amount at a fixed interest rate. At the same time, the Company agrees to pay another financial institution the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. In connection with each interest rate cap, the Company sells a cap to the customer and agree s to pay interest if the underlying index exceeds the strike price defined in the cap agreement. Simultaneously the Company purchases a cap with matching terms from another financial institution that agrees to pay the Company if the underlying index exceeds the strike price. The commercial loan customer counterparty weighted average received and paid interest rates for interest rate swaps outstanding at September 30, 2020 and December 31, 2019 are presented in the following table. Weighted-Average Interest Rate September 30, 2020 December 31, 2019 Received Paid Received Paid Loan customer counterparty 0.58 % 2.83 % 3.42 % 2.86 % The Company’s credit exposure on interest rate swaps is limited to the net favorable value of all swaps by each counterparty, which was approximately $13.5 million at September 30, 2020 and $4.8 million at December 31, 2019. This credit exposure is partly mitigated as transactions with customers are secured by the collateral, if any, securing the underlying transaction being hedged. The Company’s credit exposure, net of collateral pledged, relating to interest rate swaps with upstream financial institution counter-parties was zero at September 30, 2020. A credit support annex is in place and allows the Company to call collateral from upstream financial institution counter-parties. Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap values. The Company’s cash collateral pledged for interest rate swaps was $15.3 million at September 30, 2020 and $9.3 The initial and subsequent changes in the fair value of IRLCs and the forward sales of mortgage-backed securities are recorded in net gain on sale of mortgage loans. These gains and losses were not attributable to instrument-specific credit risk. For interest rate swaps and caps, because the Company acts as an intermediary for its customer, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on its results of operations. Income (loss) for the three and nine months ended September 30, 2020 and 2019 was as follows: Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments 2020 2019 2020 2019 (Dollars in thousands) Interest rate lock commitments $ — $ — $ (305 ) $ — Forward mortgage-backed securities trades — — (2,398 ) — |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | 13. ACQUISITIONS Acquisitions are an integral part of the Company’s growth strategy. All acquisitions were accounted for using the acquisition method of accounting. Accordingly, the assets and liabilities of the acquired entities were recorded at their fair values at the acquisition date. The excess of the purchase price over the estimated fair value of the net assets for tax-free acquisitions was recorded as goodwill, none of which is deductible for tax purposes. The excess of the purchase price over the estimated fair value of the net assets for taxable acquisitions was also recorded as goodwill, and is deductible for tax purposes. The identified core deposit intangibles for each acquisition are being amortized using a non-pro rata basis over an estimated life of 10 to 15 years. The results of operations for each acquisition have been included in the Company’s consolidated financial results beginning on the respective acquisition date. The measurement period for the Company to determine the fair values of acquired identifiable assets and assumed liabilities will end at the earlier of (1) twelve months from the date of the acquisition or (2) as soon as the Company receives the information it is seeking about facts and circumstances that existed as of the acquisition date or learns that more information is not obtainable. The following acquisitions were completed on the dates indicated: 2019 Acquisition Merger with LegacyTexas Financial Group, Inc. On November 1, 2019, LegacyTexas Financial Group, Inc. merged into Prosperity Bancshares and LegacyTexas Bank merged into the Bank. LegacyTexas was headquartered in Plano, Texas and operated 42 locations in 19 North Texas cities in and around the Dallas-Fort Worth area. As of September 30, 2019, LegacyTexas, on a consolidated basis, reported total assets of $10.5 billion, total gross loans of $9.1 billion, total deposits of $6.5 billion and shareholders’ equity of $1.2 billion. Pursuant to the terms of the merger agreement, Bancshares issued 26,228,148 shares of Bancshares common stock, with a closing price of $69.02 per share on November 1, 2019, plus $318.0 million in cash, comprised of $308.6 million in cash and $9.4 million in cash for taxes withheld, for all outstanding shares of LegacyTexas. The assets and liabilities of LegacyTexas were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. As of September 30, 2020, the following table presents the amounts recorded on the consolidated balance sheet on the acquisition date (dollars in thousands). Initially Recorded at Acquisition Date Measurement Period Adjustments Adjusted Values as of September 30, 2020 Fair value of consideration paid: Common stock issued (26,228,148 shares) $ 1,810,267 $ — $ 1,810,267 Cash 318,018 — 318,018 Total consideration paid $ 2,128,285 $ — $ 2,128,285 Fair value of assets acquired: Cash and due from banks $ 228,649 $ — $ 228,649 Securities held to maturity 472,933 — 472,933 Loans held for sale 60,818 — 60,818 Loans held for investment 6,771,080 — 6,771,080 Loans held for investment - Warehouse Purchase Program 1,693,049 — 1,693,049 Bank premises and equipment 67,347 (1,299 ) 66,048 Other real estate owned 4,876 — 4,876 Core deposit intangibles 60,058 — 60,058 Federal Home Loan Bank stock 117,939 (113 ) 117,826 Bank owned life insurance and other assets 242,592 (7,125 ) 235,467 Total assets acquired 9,719,341 (8,537 ) 9,710,804 Fair value of liabilities assumed: Deposits 6,434,732 — 6,434,732 Other borrowings 2,078,682 — 2,078,682 Securities sold under repurchase agreements 57,670 — 57,670 Trust preferred securities 15,376 — 15,376 Subordinated notes 125,950 — 125,950 Other liabilities 201,472 (516 ) 200,956 Total liabilities assumed 8,913,882 (516 ) 8,913,366 Fair value of net assets acquired $ 805,459 $ (8,021 ) $ 797,438 Goodwill resulting from acquisition $ 1,322,826 $ 8,021 $ 1,330,847 The measurement period adjustments noted in the table above were a result of information obtained subsequent to the Company’s initial reporting of provisional fair values but prior to finalizing the fair values in accordance with ASC 805, Business Combinations. Such information was determined to be a condition in existence as of acquisition date. As of September 30, 2020, the Company recognized goodwill of $1.33 billion , which is subject to subsequent fair value adjustments Merger Related Expenses: The Company incurred zero and $8.0 million of pre-tax merger related expenses during the three and nine months ended September 30, 2020, respectively. The Company incurred $46.4 million of pre-tax merger related expenses during the year ended December 31, 2019. The merger related expenses are reflected on the Company’s income statement for the applicable periods under “Merger related expenses” and consist of salaries and benefits, data processing and professional and legal fees. Pro Forma Information : Operations of LegacyTexas have been included in the consolidated financial statements since November 1, 2019 . The following pro forma information presents the results of operations for the three and nine months ended September 30, 2019, as if the Merger had occurred on January 1, 2019 (dollars in thousands, except per share amounts). Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Net interest income $ 259,730 $ 768,548 Net income 140,400 367,677 Basic earnings per share 1.47 3.85 Diluted earnings per share 1.47 3.85 The above pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the merged companies that would have been achieved had the Merger occurred on January 1, 2019, nor are they intended to represent or be indicative of future results of operations. The pro forma results do not include expected operating cost savings as a result of the acquisition. These pro forma results require significant estimates and judgments particularly as they relate to valuation and accretion of income associated with acquired loans. Pro forma adjustments principally included: • Reversing interest income and interest expense as previously recorded by LegacyTexas and recording interest income and interest expense based on impact of estimated fair values of the acquired interest-earning assets and assumed interest-bearing liabilities; • Reversing core deposit intangible amortization as previously recorded by LegacyTexas and recording amortization expense as it relates to the core deposit intangible recognized from the acquisition; and • Reporting merger related expenses as if they were incurred on January 1, 2019. |
New Accounting Standards (Polic
New Accounting Standards (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Accounting Standards Updates (''ASU'') | Accounting Standards Updates (“ASU”) ASU 2020-04, "Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting - Accounting Standards Codification (“ASC”) Topic 848 ASU 2020-04 provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. The guidance allows for companies to: (i) account for certain contract modifications as a continuation of the existing contract without additional analysis; (ii) continue hedge accounting when certain critical terms of a hedging relationship change and assess effectiveness in ways that disregard certain potential sources of ineffectiveness; and (iii) make a one-time sale and/or transfer of certain debt securities from held-to-maturity to available-for-sale or trading. This ASU is available for adoption effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of January 1, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic within ASU 2020-04, the amendments must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. The one-time election to sell and/or transfer debt securities classified as held-to-maturity may be made at any time after March 12, 2020. The Company anticipates this ASU will simplify any modifications it executes between the selected start date (yet to be determined) and December 31, 2022 that are directly related to the LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees and costs. ASU 2020-04 is not expected to have a significant impact on the Company’s financial statements. ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments ( “ASC 326 ” ).” On January 1, 2020 , the Company adopted ASU 2016-13 which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (“CECL”) methodology. CECL requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of CECL is based on relevant information about past events including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company adopted ASU 2016-13 using the modified-retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Reporting periods beginning after January 1, 2020 are presented under ASC 326 while prior periods are reported with previously applicable GAAP. Upon adoption of ASU 2016-13, the Company recognized an increase in allowance for credit losses for loans of $108.7 million, of which $102.5 million was related to LegacyTexas Financial Group, Inc. (“LegacyTexas”), which merged into Bancshares on November 1, 2019, and an increase in allowance for credit losses for off-balance sheet credit exposures of $24.4 million, of which $6.3 million was related to LegacyTexas, with a corresponding decrease in retained earnings (pre-tax). Additionally, the Company adopted ASU 2016-13 using the prospective transition approach for financial assets purchased with credit deterioration. The Company recognized an increase in the allowance for credit losses for loans of $131.8 million, of which $130.3 million was related to LegacyTexas, due to the reclass of purchased credit deteriorated discounts as the result of adopting ASU 2016-13. See Note 5 “Loans and Allowance for Credit Losses” for additional information. The Company recognized no allowance for credit losses related to debt securities. See Note 4 “Securities” for additional information. The following table illustrates the impact of adopting ASU 2016-13: January 1, 2020 As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (Dollars in thousands) Assets: Loans Construction, land development and other land loans $ 28,729 $ 14,654 $ 14,075 Agriculture and agriculture real estate (includes farmland) 5,768 2,971 2,797 1-4 family (includes home equity) 23,544 15,277 8,267 Commercial real estate (includes multi-family residential) 61,322 12,332 48,990 Commercial and industrial 180,069 40,445 139,624 Consumer and other 28,575 1,790 26,785 Allowance for credit losses on loans $ 328,007 $ 87,469 $ 240,538 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 29,947 $ 5,599 $ 24,348 |
Income Per Common Share (Tables
Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the computation of basic and diluted earnings per share: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount Amount Per Share Amount (Amounts in thousands, except per share data) Net income $ 130,064 $ 81,758 $ 391,813 $ 246,418 Basic: Weighted average shares outstanding 92,656 $ 1.40 68,738 $ 1.19 93,226 $ 4.20 69,463 $ 3.55 Diluted: Weighted average shares outstanding 92,656 $ 1.40 68,738 $ 1.19 93,226 $ 4.20 69,463 $ 3.55 |
New Accounting Standards (Table
New Accounting Standards (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Schedule of Impact of Adopting ASU 2016-13 | The following table illustrates the impact of adopting ASU 2016-13: January 1, 2020 As Reported Under ASC 326 Pre-ASC 326 Adoption Impact of ASC 326 Adoption (Dollars in thousands) Assets: Loans Construction, land development and other land loans $ 28,729 $ 14,654 $ 14,075 Agriculture and agriculture real estate (includes farmland) 5,768 2,971 2,797 1-4 family (includes home equity) 23,544 15,277 8,267 Commercial real estate (includes multi-family residential) 61,322 12,332 48,990 Commercial and industrial 180,069 40,445 139,624 Consumer and other 28,575 1,790 26,785 Allowance for credit losses on loans $ 328,007 $ 87,469 $ 240,538 Liabilities: Allowance for credit losses on off-balance sheet credit exposures $ 29,947 $ 5,599 $ 24,348 |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Investment Securities | The amortized cost and fair value of investment securities were as follows: September 30, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 418,575 $ 138 $ (525 ) $ 418,188 Mortgage-backed securities 42,982 570 (625 ) 42,927 Total $ 461,557 $ 708 $ (1,150 ) $ 461,115 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 3,989 $ 25 $ — $ 4,014 States and political subdivisions 170,427 9,288 (187 ) 179,528 Collateralized mortgage obligations 123,309 2,080 (256 ) 125,133 Mortgage-backed securities 6,672,655 165,665 (1,158 ) 6,837,162 Total $ 6,970,380 $ 177,058 $ (1,601 ) $ 7,145,837 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for Sale States and political subdivisions $ 470 $ 1 $ — $ 471 Collateralized mortgage obligations 235,222 690 (139 ) 235,773 Mortgage-backed securities 51,209 659 (449 ) 51,419 Total $ 286,901 $ 1,350 $ (588 ) $ 287,663 Held to Maturity U.S. Treasury securities and obligations of U.S. Government agencies $ 13,933 $ 58 $ — $ 13,991 States and political subdivisions 238,347 7,632 (189 ) 245,790 Collateralized mortgage obligations 203,470 1,115 (373 ) 204,212 Mortgage-backed securities 7,826,643 48,060 (34,845 ) 7,839,858 Total $ 8,282,393 $ 56,865 $ (35,407 ) $ 8,303,851 |
Securities in Continuous Loss Position | Securities with unrealized losses, segregated by length of time, that have been in a continuous loss position were as follows: September 30, 2020 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 188,671 $ (515 ) $ 1,886 $ (10 ) $ 190,557 $ (525 ) Mortgage-backed securities 16,298 (365 ) 12,815 (260 ) 29,113 (625 ) Total $ 204,969 $ (880 ) $ 14,701 $ (270 ) $ 219,670 $ (1,150 ) Held to Maturity States and political subdivisions $ 1,689 $ (187 ) $ — $ — $ 1,689 $ (187 ) Collateralized mortgage obligations 33,507 (256 ) — — 33,507 (256 ) Mortgage-backed securities 118,159 (858 ) 19,716 (300 ) 137,875 (1,158 ) Total $ 153,355 $ (1,301 ) $ 19,716 $ (300 ) $ 173,071 $ (1,601 ) December 31, 2019 Less than 12 Months 12 Months or More Total Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses Estimated Fair Value Unrealized Losses (Dollars in thousands) Available for Sale Collateralized mortgage obligations $ 50,245 $ (136 ) $ 1,818 $ (3 ) $ 52,063 $ (139 ) Mortgage-backed securities 34,901 (449 ) 10 — 34,911 (449 ) Total $ 85,146 $ (585 ) $ 1,828 $ (3 ) $ 86,974 $ (588 ) Held to Maturity States and political subdivisions $ 58,329 $ (183 ) $ 3,241 $ (6 ) $ 61,570 $ (189 ) Collateralized mortgage obligations 54,890 (373 ) — — 54,890 (373 ) Mortgage-backed securities 947,314 (3,017 ) 3,110,765 (31,828 ) 4,058,079 (34,845 ) Total $ 1,060,533 $ (3,573 ) $ 3,114,006 $ (31,834 ) $ 4,174,539 $ (35,407 ) |
Investment Securities by Contractual Maturity | The amortized cost and fair value of investment securities at September 30, 2020, by contractual maturity, are shown below. Actual maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations at any time with or without call or prepayment penalties. Held to Maturity Available for Sale Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due in one year or less $ 26,715 $ 26,744 $ — $ — Due after one year through five years 96,287 101,719 — — Due after five years through ten years 44,637 48,053 — — Due after ten years 6,777 7,026 — — Subtotal 174,416 183,542 — — Mortgage-backed securities and collateralized mortgage obligations 6,795,964 6,962,295 461,557 461,115 Total $ 6,970,380 $ 7,145,837 $ 461,557 $ 461,115 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Types of Loans in Loan Portfolio | The loan portfolio consists of various types of loans and is categorized by major type as follows: September 30, 2020 December 31, 2019 (Dollars in thousands) Residential mortgage loans held for sale $ 51,694 $ 80,959 Commercial and industrial 4,150,189 3,205,595 Real estate: Construction, land development and other land loans 2,081,762 2,064,167 1-4 family residential (includes home equity) 4,615,710 4,306,452 Commercial real estate (includes multi-family residential) 6,179,901 6,556,285 Farmland 419,126 495,558 Agriculture 179,846 185,297 Consumer and other 386,799 398,271 Total loans held for investment, excluding Warehouse Purchase Program 18,013,333 17,211,625 Warehouse Purchase Program 2,730,614 1,552,762 Total loans, including Warehouse Purchase Program $ 20,795,641 $ 18,845,346 |
Related Party Loans | An analysis of activity with respect to these related party loans is as follows: As of and for the nine months ended September 30, 2020 As of and for the year ended December (Dollars in thousands) Beginning balance on January 1 $ 4,152 $ 1,923 New loans 813 1 Transfers — 2,500 Repayments (3,134 ) (272 ) Ending balance $ 1,831 $ 4,152 |
Aging Analysis of Past Due Loans | An aging analysis of past due loans, segregated by category of loan, is presented below: September 30, 2020 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 24,592 $ 422 $ 25,014 $ 2,211 $ 2,054,537 $ 2,081,762 Warehouse Purchase Program loans — — — — 2,730,614 2,730,614 Agriculture and agriculture real estate (includes farmland) 30 — 30 1,200 597,742 598,972 1-4 family (includes home equity) (1) 6,160 40 6,200 23,769 4,637,435 4,667,404 Commercial real estate (includes multi-family residential) 2,758 — 2,758 11,486 6,165,657 6,179,901 Commercial and industrial 4,958 — 4,958 17,153 4,128,078 4,150,189 Consumer and other 529 — 529 1,593 384,677 386,799 Total $ 39,027 $ 462 $ 39,489 $ 57,412 $ 20,698,740 $ 20,795,641 December 31, 2019 Loans Past Due and Still Accruing 30-89 Days 90 or More Days Total Past Due Loans Nonaccrual Loans Current Loans Total Loans (Dollars in thousands) Construction, land development and other land loans $ 16,470 $ — $ 16,470 $ 1,142 $ 2,046,555 $ 2,064,167 Warehouse Purchase Program loans — — — — 1,552,762 1,552,762 Agriculture and agriculture real estate (includes farmland) 466 — 466 103 680,286 680,855 1-4 family (includes home equity) (1) 43,884 441 44,325 24,413 4,318,673 4,387,411 Commercial real estate (includes multi-family residential) 10,669 — 10,669 12,714 6,532,902 6,556,285 Commercial and industrial 7,249 — 7,249 16,809 3,181,537 3,205,595 Consumer and other 1,708 — 1,708 62 396,501 398,271 Total $ 80,446 $ 441 $ 80,887 $ 55,243 $ 18,709,216 $ 18,845,346 (1) Includes $51.7 million and $81.0 million of residential mortgage loans held for sale at September 30, 2020 and December 31, 2019, respectively. |
Non-performing Assets | The following table presents information regarding nonperforming assets as of the dates indicated: September 30, 2020 December 31, 2019 (Dollars in thousands) Nonaccrual loans (1) (2) $ 57,412 $ 55,243 Accruing loans 90 or more days past due 462 441 Total nonperforming loans 57,874 55,684 Repossessed assets 120 323 Other real estate 11,548 6,936 Total nonperforming assets $ 69,542 $ 62,943 Nonperforming assets to total loans and other real estate 0.33 % 0.33 % Nonperforming assets to total loans, excluding Warehouse Purchase Program loans, and other real estate 0.38 % 0.36 % (1) Includes troubled debt restructurings of $13.2 million and $13.6 million as of September 30, 2020 and December 31, 2019, respectively. (2) There were no nonperforming or troubled debt restructurings of warehouse lines of credit or Warehouse Purchase Program loans for the periods presented. |
Recorded Investment and Outstanding Balance for Purchased Credit Deteriorated Loans and Non Purchased Credit Deteriorated Loans | The recorded investment in PCD loans included in the consolidated balance sheet and the related outstanding balance as of the dates indicated are presented in the table below. The outstanding balance represents the total amount owed as of September 30, 2020 and December 31, 2019 . September 30, 2020 December 31, 2019 (Dollars in thousands) PCD loans: Outstanding balance $ 226,080 $ 410,785 Discount (1) (16,760 ) (167,320 ) (2) Recorded investment $ 209,320 $ 243,465 (1) ASU 2016-13 became effective for the Company on January 1, 2020. (2) Includes $131.8 million in PCD loans credit discount. September 30, 2020 December 31, 2019 (Dollars in thousands) Non-PCD loans: Outstanding balance $ 4,468,843 $ 6,102,540 Discount (53,115 ) (110,130 ) Recorded investment $ 4,415,728 $ 5,992,410 |
Summary of Changes in Accretable Yields of Acquired Loans | Changes in the accretable yield for acquired PCD loans for the three and nine months ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Balance at beginning of period $ 22,565 $ 904 $ 35,654 $ 1,534 Adjustments — 26 (449 ) 62 Accretion charge-offs — — (354 ) — Accretion (5,805 ) (277 ) (18,091 ) (943 ) Balance at September 30, $ 16,760 $ 653 $ 16,760 $ 653 Changes in the discount accretion for Non-PCD loans for the three and nine months ended September 30, 2020 and 2019 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Dollars in thousands) Balance at beginning of period $ 69,860 $ 12,479 $ 110,130 $ 14,833 Adjustments (16 ) — 296 — Accretion charge-offs — — (120 ) — Accretion (16,729 ) (1,006 ) (57,191 ) (3,360 ) Balance at September 30, $ 53,115 $ 11,473 $ 53,115 $ 11,473 |
Risk Grade by Category of Loan and Year of Origination/Renewal | The following table presents loans by risk grade, by category of loan and year of origination/renewal at September 30, 2020. Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (Dollars in thousands) Construction, Land Development and Other Land Loans Grade 1 $ — $ — $ — $ — $ — $ — $ — $ — $ — Grade 2 — — — 86 126 267 — — 479 Grade 3 646,011 630,323 297,303 128,581 23,831 56,166 114,716 — 1,896,931 Grade 4 70,111 30,016 33,405 19,562 3,806 7,187 10,134 — 174,221 Grade 5 — — 829 4,510 — 117 — — 5,456 Grade 6 — — — — 565 1,325 — — 1,890 Grade 7 — — 1,080 — 6 390 734 — 2,210 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans — 171 115 289 — — — — 575 Total 716,122 660,510 332,732 153,028 28,334 65,452 125,584 — 2,081,762 Agriculture and Agriculture Real Estate (includes Farmland) Grade 1 $ 2,004 $ 542 $ 177 $ 182 — — $ 10,032 $ 2 $ 12,939 Grade 2 30 — — 351 5 1,532 310 — 2,228 Grade 3 95,589 81,626 62,552 52,243 47,463 92,816 74,173 145 506,607 Grade 4 15,376 10,246 4,873 3,043 4,633 17,219 9,021 23 64,434 Grade 5 1,984 3,705 577 — — 14 2,302 — 8,582 Grade 6 804 — 59 — 186 181 — — 1,230 Grade 7 — 308 15 — — 853 — — 1,176 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans 976 209 296 — — 295 — — 1,776 Total 116,763 96,636 68,549 55,819 52,287 112,910 95,838 170 598,972 1-4 Family (includes Home Equity) (1) Grade 1 $ 117 $ — $ — $ — $ — $ — $ 95 $ — $ 212 Grade 2 288 315 987 676 254 7,705 1,133 — 11,358 Grade 3 1,010,159 910,378 612,545 482,791 473,571 888,135 125,281 3,313 4,506,173 Grade 4 7,620 16,515 23,244 22,256 10,766 36,955 2,550 249 120,155 Grade 5 — 219 157 6 712 1,971 — — 3,065 Grade 6 23 39 3 332 — 1,524 — — 1,921 Grade 7 — 1,535 952 3,108 1,544 12,114 3,485 — 22,738 Grade 8 — — — — 9 87 — — 96 Grade 9 — — — — — — — — — PCD Loans — — — — 238 1,448 — — 1,686 Total 1,018,207 929,001 637,888 509,169 487,094 949,939 132,544 3,562 4,667,404 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (Dollars in thousands) Commercial Real Estate (includes Multi-Family Residential) Grade 1 $ — $ — $ — $ — $ — $ — $ — $ — $ — Grade 2 10,046 2,006 — 7,450 201 1,386 — — 21,089 Grade 3 468,230 986,980 983,614 824,609 464,007 1,018,983 63,247 2,072 4,811,742 Grade 4 89,339 79,177 209,634 214,653 156,972 318,504 8,505 6,597 1,083,381 Grade 5 6,120 7,556 16,457 2,771 35,280 43,836 1,306 — 113,326 Grade 6 10,014 174 — 10,587 3,176 14,906 — — 38,857 Grade 7 19 — 1,238 15 7,840 847 1,485 — 11,444 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans 48,199 21,935 5,361 6,278 200 18,089 — — 100,062 Total 631,967 1,097,828 1,216,304 1,066,363 667,676 1,416,551 74,543 8,669 6,179,901 Commercial and Industrial Grade 1 $ 1,389,705 $ 7,320 $ 4,109 $ 917 $ 834 $ 569 $ 18,249 $ 162 $ 1,421,865 Grade 2 2,395 10,990 17,344 1,348 1,422 1,052 24,324 — 58,875 Grade 3 342,204 370,525 302,552 110,782 74,182 150,914 715,920 11,273 2,078,352 Grade 4 54,749 74,189 51,515 36,188 9,627 30,103 106,284 1,179 363,834 Grade 5 5,213 30,676 4,309 7 218 1,924 11,310 5,010 58,667 Grade 6 390 104 247 — 1,152 1,906 22,159 — 25,958 Grade 7 759 344 13,002 390 988 288 36,901 17 52,689 Grade 8 — — — — 8 — — — 8 Grade 9 — — — — — — — — — PCD Loans 16,637 22,115 20,505 10,932 — 798 2,855 16,099 89,941 Total $ 1,812,052 $ 516,263 $ 413,583 $ 160,564 $ 88,431 $ 187,554 $ 938,002 $ 33,740 $ 4,150,189 Consumer and Other Grade 1 $ 37,213 $ 11,159 $ 4,170 $ 2,469 $ 1,370 $ 157 $ 1,523 $ — $ 58,061 Grade 2 2,350 1,036 407 31,450 1,583 — 1,204 — 38,030 Grade 3 39,858 50,310 31,445 22,314 7,615 16,122 74,327 73 242,064 Grade 4 4,237 2,052 964 75 84 118 14,148 — 21,678 Grade 5 — — 66 18 — — 9,997 — 10,081 Grade 6 — — — — — — — — — Grade 7 2 1,569 7 4 — 21 2 — 1,605 Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans 3,800 — — — — — 11,480 — 15,280 Total $ 87,460 $ 66,126 $ 37,059 $ 56,330 $ 10,652 $ 16,418 $ 112,681 $ 73 $ 386,799 Term Loans Amortized Cost Basis by Origination Year 2020 2019 2018 2017 2016 Prior Revolving Loans Revolving Loans Converted to Term Loans Total (Dollars in thousands) Warehouse Purchase Program Grade 1 $ — $ — $ — $ — $ — $ — $ — $ — $ — Grade 2 — — — — — — — — — Grade 3 2,730,614 — — — — — — — 2,730,614 Grade 4 — — — — — — — — — Grade 5 — — — — — — — — — Grade 6 — — — — — — — — — Grade 7 — — — — — — — — — Grade 8 — — — — — — — — — Grade 9 — — — — — — — — — PCD Loans — — — — — — — — — Total $ 2,730,614 $ — $ — $ — $ — $ — $ — $ — $ 2,730,614 Total Grade 1 $ 1,429,039 $ 19,021 $ 8,456 $ 3,568 $ 2,204 $ 726 $ 29,899 $ 164 $ 1,493,077 Grade 2 15,109 14,347 18,738 41,361 3,591 11,942 26,971 — 132,059 Grade 3 5,332,665 3,030,142 2,290,011 1,621,320 1,090,669 2,223,136 1,167,664 16,876 16,772,483 Grade 4 241,432 212,195 323,635 295,777 185,888 410,086 150,642 8,048 1,827,703 Grade 5 13,317 42,156 22,395 7,312 36,210 47,862 24,915 5,010 199,177 Grade 6 11,231 317 309 10,919 5,079 19,842 22,159 — 69,856 Grade 7 780 3,756 16,294 3,517 10,378 14,513 42,607 17 91,862 Grade 8 — — — — 17 87 — — 104 Grade 9 — — — — — — — — — PCD Loans 69,612 44,430 26,277 17,499 438 20,630 14,335 16,099 209,320 Total $ 7,113,185 $ 3,366,364 $ 2,706,115 $ 2,001,273 $ 1,334,474 $ 2,748,824 $ 1,479,192 $ 46,214 $ 20,795,641 (1) Includes $51.7 million of residential mortgage loans held for sale at September 30, 2020. |
Allowance for Credit Losses on Loans by Category of Loan | The following table details activity in the allowance for credit losses on loans by category of loan for the three and nine months ended September 30, 2020 and 2019. Construction, Land Development and Other Land Loans Agriculture and Agriculture Real Estate (includes Farmland) 1-4 Family (includes Home Equity) Commercial Real Estate (includes Multi-Family Residential) Commercial and Industrial Consumer and Other Total (Dollars in thousands) Allowance for credit losses: Three Months Ended Balance June 30, 2020 $ 39,862 $ 6,898 $ 33,021 $ 78,207 $ 149,884 $ 16,333 $ 324,205 Provision for credit losses 4,187 554 7,517 3,188 (4,982 ) (464 ) 10,000 Charge-offs (500 ) — (436 ) (676 ) (8,444 ) (1,092 ) (11,148 ) Recoveries 22 17 184 — 99 256 578 Net charge-offs (478 ) 17 (252 ) (676 ) (8,345 ) (836 ) (10,570 ) Balance September 30, 2020 $ 43,571 $ 7,469 $ 40,286 $ 80,719 $ 136,557 $ 15,033 $ 323,635 Nine Months Ended Beginning balance, prior to adoption of ASC 326 $ 14,654 $ 2,971 $ 15,277 $ 12,332 $ 40,445 $ 1,790 $ 87,469 Impact of adoption ASC 326 14,075 2,797 8,267 48,990 139,624 26,785 240,538 Provision for credit losses 15,302 1,680 17,050 19,992 (22,990 ) (11,034 ) 20,000 Charge-offs (500 ) (62 ) (611 ) (676 ) (21,733 ) (3,529 ) (27,111 ) Recoveries 40 83 303 81 1,211 1,021 2,739 Net charge-offs (460 ) 21 (308 ) (595 ) (20,522 ) (2,508 ) (24,372 ) Balance September 30, 2020 $ 43,571 $ 7,469 $ 40,286 $ 80,719 $ 136,557 $ 15,033 $ 323,635 Allowance for credit losses: Three Months Ended Balance June 30, 2019 $ 15,886 $ 3,816 $ 14,383 $ 12,166 $ 39,177 $ 1,578 $ 87,006 Provision for credit losses 290 188 543 452 (763 ) 970 1,100 Charge-offs — (294 ) - — (419 ) (1,024 ) (1,737 ) Recoveries 6 16 9 1 502 158 692 Net charge-offs 6 (278 ) 9 1 83 (866 ) (1,045 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 Nine Months Ended Balance December 31, 2018 $ 15,582 $ 2,693 $ 14,135 $ 11,220 $ 40,223 $ 1,587 $ 86,440 Provision for credit losses 21 (921 ) 799 1,396 (918 ) 2,223 2,600 Charge-offs (63 ) (358 ) (22 ) — (2,501 ) (2,821 ) (5,765 ) Recoveries 62 1,312 23 3 1,693 693 3,786 Net charge-offs (1 ) 954 1 3 (808 ) (2,128 ) (1,979 ) Balance September 30, 2019 $ 15,602 $ 3,726 $ 14,935 $ 12,619 $ 38,497 $ 1,682 $ 87,061 |
Troubled Debt Restructurings | The following table presents information regarding the recorded investment of loans that were modified as troubled debt restructurings during the nine months ended September 30, 2020 and 2019. Nine Months Ended September 30, 2020 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Troubled Debt Restructurings Construction, land development and other land loans — $ — $ — — $ — $ — Agriculture and agriculture real estate (includes farmland) — — — — — — 1-4 Family (includes home equity) 1 23 12 — — — Commercial real estate (includes multi-family residential) — — — — — — Commercial and industrial — — — 2 14,993 14,188 Consumer and other — — — — — — Total 1 $ 23 $ 12 2 $ 14,993 $ 14,188 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Assets and Liabilities Measured on Recurring Basis | The following tables present fair values for assets and liabilities measured at fair value on a recurring basis: As of September 30, 2020 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: Collateralized mortgage obligations $ — $ 418,188 $ — $ 418,188 Mortgage-backed securities — 42,927 — 42,927 Total $ — $ 461,115 $ — $ 461,115 Derivative financial instruments: Loan customer counterparty $ — $ 13,510 $ — $ 13,510 Financial institution counterparty — — — — Liabilities: Derivative financial instruments: Loan customer counterparty $ — $ — $ — $ — Financial institution counterparty — 13,510 — 13,510 As of December 31, 2019 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Available for sale securities: States and political subdivisions $ — $ 471 $ — $ 471 Collateralized mortgage obligations — 235,773 — 235,773 Mortgage-backed securities — 51,419 — 51,419 Total available for sale securities $ — $ 287,663 $ — $ 287,663 Derivative financial instruments: Interest rate lock commitments $ — 305 $ — 305 Forward mortgage-backed securities trades — 3 — 3 Loan customer counterparty — 4,829 — 4,829 Financial institution counterparty — 240 — 240 Liabilities: Derivative financial instruments: Interest rate lock commitments $ — $ — $ — $ — Forward mortgage-backed securities trades — 83 — 83 Loan customer counterparty — 240 — 240 Financial institution counterparty — 4,829 — 4,829 |
Summary of Carrying and Fair Value Information of Financial Instruments | The following tables present carrying and fair value information of financial instruments as of the dates indicated: As of September 30, 2020 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Cash and due from banks $ 1,031,193 $ 1,031,193 $ — $ — $ 1,031,193 Federal funds sold 56,469 56,469 — — 56,469 Held to maturity securities 6,970,380 — 7,145,837 — 7,145,837 Loans held for sale 51,694 — 51,694 — 51,694 Loans held for investment, net of allowance 17,689,698 — — 17,704,208 17,704,208 Loans held for investment - Warehouse Purchase Program 2,730,614 — 2,730,614 — 2,730,614 Other real estate owned 11,548 — 11,548 — 11,548 Liabilities Deposits: Noninterest-bearing $ 8,998,328 $ — $ 8,998,328 $ — $ 8,998,328 Interest-bearing 17,460,878 — 17,485,431 — 17,485,431 Other borrowings 2,570 — 2,782 — 2,782 Securities sold under repurchase agreements 380,274 — 380,297 — 380,297 Subordinated notes 125,146 — 125,586 — 125,586 As of December 31, 2019 Carrying Estimated Fair Value Amount Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets Cash and due from banks $ 573,589 $ 573,589 $ — $ — $ 573,589 Federal funds sold 519 519 — — 519 Held to maturity securities 8,282,393 — 8,303,851 — 8,303,851 Loans held for sale 80,959 — 80,959 — 80,959 Loans held for investment, net of allowance 17,124,156 — — 17,045,523 17,045,523 Loans held for investment - Warehouse Purchase Program 1,552,762 — 1,552,762 — 1,552,762 Other real estate owned 6,936 — 6,936 — 6,936 Liabilities Deposits: Noninterest-bearing $ 7,763,894 $ — $ 7,763,894 $ — $ 7,763,894 Interest-bearing 16,435,838 — 16,437,453 — 16,437,453 Other borrowings 1,303,730 — 1,303,941 — 1,303,941 Securities sold under repurchase agreements 377,294 — 377,302 — 377,302 Subordinated notes 125,804 — 125,743 — 125,743 |
Goodwill and Core Deposit Int_2
Goodwill and Core Deposit Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Core Deposit Intangibles | Changes in the carrying amount of the Company’s goodwill and core deposit intangibles for the nine months ended September 30, 2020 and the year ended December 31, 2019 were as follows: Goodwill Core Deposit Intangibles (Dollars in thousands) Balance as of December 31, 2018 $ 1,900,845 $ 32,883 Less: Amortization — (6,537 ) Add: LegacyTexas Merger 1,322,826 60,058 Balance as of December 31, 2019 3,223,671 86,404 Less: Amortization — (9,926 ) Add: Measurement period adjustment of LegacyTexas Merger 8,021 — Balance as of September 30, 2020 $ 3,231,692 $ 76,478 |
Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles | The estimated aggregate future amortization expense for core deposit intangibles remaining as of September 30, 2020 is as follows (dollars in thousands): Remaining 2020 $ 3,243 2021 11,551 2022 10,336 2023 9,360 2024 8,699 Thereafter 33,289 Total $ 76,478 |
Contractual Obligations and O_2
Contractual Obligations and Off-Balance Sheet Items (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Contractual Obligations and Other Commitments | The Company’s contractual obligations and other commitments to make future payments as of September 30, 2020 (other than deposit obligations and securities sold under repurchase agreements) are summarized below. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Subordinated notes $ 126,292 $ — $ — $ — $ 126,292 Federal Home Loan Bank advances and notes payable 974 1,067 366 18 2,425 Total $ 127,266 $ 1,067 $ 366 $ 18 $ 128,717 |
Future Undiscounted Cash Payments Associated with its Operating Leases | The Company’s future undiscounted cash payments associated with its operating leases as of September 30, 2020 are summarized below (dollars in thousands). Remaining 2020 $ 2,637 2021 10,196 2022 9,671 2023 8,922 2024 8,042 2025 7,651 Thereafter 19,383 Total undiscounted lease payments $ 66,502 |
Summary of Non-Cancelable Future Operating Lease Commitments | The following table presents a summary of non-cancelable future operating lease commitments as of December 31, 2019 (dollars in thousands): 2020 $ 10,137 2021 9,169 2022 8,641 2023 7,998 2024 7,119 Thereafter 24,996 Total non-cancelable lease payments $ 68,060 |
Summary of Commitments Associated with Outstanding Standby Letters of Credit, Unused Capacity on Warehouse Purchase Program Loans and Commitments to Extend Credit | The Company’s commitments associated with outstanding standby letters of credit, unused capacity on Warehouse Purchase Program loans and commitments to extend credit expiring by period as of September 30, 2020 are summarized below. Since commitments associated with letters of credit, unused capacity of Warehouse Purchase Program loans, allowance for credit losses on off-balance sheet credit exposures and commitments to extend credit may expire unused, the amounts shown do not necessarily reflect the actual future cash funding requirements. 1 year or less More than 1 year but less than 3 years 3 years or more but less than 5 years 5 years or more Total (Dollars in thousands) Standby letters of credit $ 104,896 $ 6,616 $ 1,337 $ — $ 112,849 Unused capacity on Warehouse Purchase Program loans 803,386 — — — 803,386 Commitments to extend credit 1,743,194 852,081 342,756 1,245,988 4,184,019 Total $ 2,651,476 $ 858,697 $ 344,093 $ 1,245,988 $ 5,100,254 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Tax Effects Allocated to Each Component of Other Comprehensive Income | The tax effects allocated to each component of other comprehensive income were as follows: Three Months Ended September 30, 2020 2019 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive income (loss): Securities available for sale: Change in unrealized gain (loss) during period $ 1,325 $ (278 ) $ 1,047 $ (1,563 ) $ 328 $ (1,235 ) Total securities available for sale 1,325 (278 ) 1,047 (1,563 ) 328 (1,235 ) Total other comprehensive income (loss) $ 1,325 $ (278 ) $ 1,047 $ (1,563 ) $ 328 $ (1,235 ) Nine Months Ended September 30, 2020 2019 Before Tax Amount Tax Effect Net of Tax Amount Before Tax Amount Tax Effect Net of Tax Amount (Dollars in thousands) Other comprehensive loss: Securities available for sale: Change in unrealized loss during period $ (1,204 ) $ 253 $ (951 ) $ (344 ) $ 72 $ (272 ) Total securities available for sale (1,204 ) 253 (951 ) (344 ) 72 (272 ) Total other comprehensive loss $ (1,204 ) $ 253 $ (951 ) $ (344 ) $ 72 $ (272 ) |
Activity in Accumulated Other Comprehensive Income Associated with Securities Available for Sale, Net of Tax | Activity in accumulated other comprehensive income associated with securities available for sale, net of tax, was as follows: Securities Available for Sale Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Balance at December 31, 2019 $ 602 $ 602 Other comprehensive loss (951 ) (951 ) Balance at September 30, 2020 $ (349 ) $ (349 ) Balance at December 31, 2018 $ 310 $ 310 Other comprehensive loss (272 ) (272 ) Balance at September 30, 2019 $ 38 $ 38 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Balances and Fair Value of Derivative Positions | The following table provides the outstanding notional balances and fair values of outstanding derivative positions at September 30, 2020 and December 31, 2019. September 30, 2020 December 31, 2019 Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value Outstanding Notional Balance Asset Derivative Fair Value Liability Derivative Fair Value (Dollars in thousands) Interest rate lock commitments $ — $ — $ — $ 9,438 $ 305 $ — Forward mortgage-backed securities trades — — — 40,750 3 83 Commercial loan interest rate swaps and caps: Loan customer counterparty 224,928 13,510 — 231,345 4,829 240 Financial institution counterparty 224,928 — 13,510 231,345 240 4,829 |
Schedule of Weighted Average Received and Paid Interest Rates for Interest Rate Swaps Outstanding | The commercial loan customer counterparty weighted average received and paid interest rates for interest rate swaps outstanding at September 30, 2020 and December 31, 2019 are presented in the following table. Weighted-Average Interest Rate September 30, 2020 December 31, 2019 Received Paid Received Paid Loan customer counterparty 0.58 % 2.83 % 3.42 % 2.86 % |
Schedule of Income (Loss) from Derivatives Not Designated as Hedging Instruments | Income (loss) for the three and nine months ended September 30, 2020 and 2019 was as follows: Three Months Ended September 30, Nine Months Ended September 30, Derivatives not designated as hedging instruments 2020 2019 2020 2019 (Dollars in thousands) Interest rate lock commitments $ — $ — $ (305 ) $ — Forward mortgage-backed securities trades — — (2,398 ) — |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Amounts Recorded on Consolidated Balance Sheet on Acquisition Date | The assets and liabilities of LegacyTexas were recorded on the consolidated balance sheet at estimated fair value on the acquisition date. As of September 30, 2020, the following table presents the amounts recorded on the consolidated balance sheet on the acquisition date (dollars in thousands). Initially Recorded at Acquisition Date Measurement Period Adjustments Adjusted Values as of September 30, 2020 Fair value of consideration paid: Common stock issued (26,228,148 shares) $ 1,810,267 $ — $ 1,810,267 Cash 318,018 — 318,018 Total consideration paid $ 2,128,285 $ — $ 2,128,285 Fair value of assets acquired: Cash and due from banks $ 228,649 $ — $ 228,649 Securities held to maturity 472,933 — 472,933 Loans held for sale 60,818 — 60,818 Loans held for investment 6,771,080 — 6,771,080 Loans held for investment - Warehouse Purchase Program 1,693,049 — 1,693,049 Bank premises and equipment 67,347 (1,299 ) 66,048 Other real estate owned 4,876 — 4,876 Core deposit intangibles 60,058 — 60,058 Federal Home Loan Bank stock 117,939 (113 ) 117,826 Bank owned life insurance and other assets 242,592 (7,125 ) 235,467 Total assets acquired 9,719,341 (8,537 ) 9,710,804 Fair value of liabilities assumed: Deposits 6,434,732 — 6,434,732 Other borrowings 2,078,682 — 2,078,682 Securities sold under repurchase agreements 57,670 — 57,670 Trust preferred securities 15,376 — 15,376 Subordinated notes 125,950 — 125,950 Other liabilities 201,472 (516 ) 200,956 Total liabilities assumed 8,913,882 (516 ) 8,913,366 Fair value of net assets acquired $ 805,459 $ (8,021 ) $ 797,438 Goodwill resulting from acquisition $ 1,322,826 $ 8,021 $ 1,330,847 |
Summary of Pro Forma Information | The following pro forma information presents the results of operations for the three and nine months ended September 30, 2019, as if the Merger had occurred on January 1, 2019 (dollars in thousands, except per share amounts). Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Net interest income $ 259,730 $ 768,548 Net income 140,400 367,677 Basic earnings per share 1.47 3.85 Diluted earnings per share 1.47 3.85 |
Income Per Common Share - Sched
Income Per Common Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 130,064 | $ 81,758 | $ 391,813 | $ 246,418 |
Basic, Weighted average shares outstanding (in shares) | 92,656 | 68,738 | 93,226 | 69,463 |
Basic | $ 1.40 | $ 1.19 | $ 4.20 | $ 3.55 |
Diluted, Weighted average shares outstanding (in shares) | 92,656 | 68,738 | 93,226 | 69,463 |
Diluted | $ 1.40 | $ 1.19 | $ 4.20 | $ 3.55 |
Income Per Common Share - Addit
Income Per Common Share - Additional Information (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Number of options outstanding | 0 | 0 | ||
Antidilutive Securities excluded from computation of earnings per share, amount | 0 | 0 | 0 | 0 |
New Accounting Standards - Addi
New Accounting Standards - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Increase in allowance for credit losses for loans | $ 236,200,000 |
Accounting Standards Update 2016-13 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Increase in allowance for credit losses for loans | 108,700,000 |
Increase in allowance for credit losses for off-balance sheet credit exposures | 24,400,000 |
Increase in allowance for credit losses for loans | 131,800,000 |
Allowance for credit losses related to debt securities | 0 |
Legacy Texas [Member] | Accounting Standards Update 2016-13 [Member] | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Increase in allowance for credit losses for loans | 102,500,000 |
Increase in allowance for credit losses for off-balance sheet credit exposures | 6,300,000 |
Increase in allowance for credit losses for loans | $ 130,300,000 |
New Accounting Standards - Sche
New Accounting Standards - Schedule of Impact of Adopting ASU 2016-13 (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Jun. 30, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | $ 323,635 | $ 324,205 | $ 328,007 | $ 87,469 | $ 87,061 | $ 87,006 | $ 86,440 |
Allowance for credit losses on off-balance sheet credit exposures | 29,947 | 29,947 | 5,599 | ||||
Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 240,538 | ||||||
Allowance for credit losses on off-balance sheet credit exposures | 24,348 | ||||||
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 7,469 | 6,898 | 2,971 | 3,726 | 3,816 | 2,693 | |
Pre-ASC 326 Adoption [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 87,469 | ||||||
Allowance for credit losses on off-balance sheet credit exposures | 5,599 | ||||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 43,571 | 39,862 | 28,729 | 14,654 | 15,602 | 15,886 | 15,582 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 14,075 | ||||||
Real Estate [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 5,768 | ||||||
Real Estate [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 2,797 | ||||||
Real Estate [Member] | 1-4 Family [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 40,286 | 33,021 | 23,544 | 15,277 | 14,935 | 14,383 | 14,135 |
Real Estate [Member] | 1-4 Family [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 8,267 | ||||||
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 80,719 | 78,207 | 61,322 | 12,332 | 12,619 | 12,166 | 11,220 |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 48,990 | ||||||
Real Estate [Member] | Pre-ASC 326 Adoption [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 14,654 | ||||||
Real Estate [Member] | Pre-ASC 326 Adoption [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 2,971 | ||||||
Real Estate [Member] | Pre-ASC 326 Adoption [Member] | 1-4 Family [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 15,277 | ||||||
Real Estate [Member] | Pre-ASC 326 Adoption [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 12,332 | ||||||
Commercial and Industrial [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 136,557 | 149,884 | 180,069 | 40,445 | 38,497 | 39,177 | 40,223 |
Commercial and Industrial [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 139,624 | ||||||
Commercial and Industrial [Member] | Pre-ASC 326 Adoption [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 40,445 | ||||||
Consumer and Other [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | $ 15,033 | $ 16,333 | 28,575 | $ 1,790 | $ 1,682 | $ 1,578 | $ 1,587 |
Consumer and Other [Member] | Accounting Standards Update 2016-13 [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | 26,785 | ||||||
Consumer and Other [Member] | Pre-ASC 326 Adoption [Member] | |||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||||
Allowance for credit losses on loans | $ 1,790 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | $ 461,557 | $ 286,901 |
Available for Sale, Gross Unrealized Gains | 708 | 1,350 |
Available for Sale, Gross Unrealized Losses | (1,150) | (588) |
Available for Sale | 461,115 | 287,663 |
Held to Maturity, Amortized Cost | 6,970,380 | 8,282,393 |
Held to Maturity, Gross Unrealized Gains | 177,058 | 56,865 |
Held to Maturity, Gross Unrealized Losses | (1,601) | (35,407) |
Held to Maturity | 7,145,837 | 8,303,851 |
States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 470 | |
Available for Sale, Gross Unrealized Gains | 1 | |
Available for Sale | 471 | |
Held to Maturity, Amortized Cost | 170,427 | 238,347 |
Held to Maturity, Gross Unrealized Gains | 9,288 | 7,632 |
Held to Maturity, Gross Unrealized Losses | (187) | (189) |
Held to Maturity | 179,528 | 245,790 |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 418,575 | 235,222 |
Available for Sale, Gross Unrealized Gains | 138 | 690 |
Available for Sale, Gross Unrealized Losses | (525) | (139) |
Available for Sale | 418,188 | 235,773 |
Held to Maturity, Amortized Cost | 123,309 | 203,470 |
Held to Maturity, Gross Unrealized Gains | 2,080 | 1,115 |
Held to Maturity, Gross Unrealized Losses | (256) | (373) |
Held to Maturity | 125,133 | 204,212 |
Mortgage-backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Amortized Cost | 42,982 | 51,209 |
Available for Sale, Gross Unrealized Gains | 570 | 659 |
Available for Sale, Gross Unrealized Losses | (625) | (449) |
Available for Sale | 42,927 | 51,419 |
Held to Maturity, Amortized Cost | 6,672,655 | 7,826,643 |
Held to Maturity, Gross Unrealized Gains | 165,665 | 48,060 |
Held to Maturity, Gross Unrealized Losses | (1,158) | (34,845) |
Held to Maturity | 6,837,162 | 7,839,858 |
U.S. Treasury Securities and Obligations of U.S. Government Agencies [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to Maturity, Amortized Cost | 3,989 | 13,933 |
Held to Maturity, Gross Unrealized Gains | 25 | 58 |
Held to Maturity | $ 4,014 | $ 13,991 |
Securities - Additional Informa
Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020USD ($)Security | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)SegmentSecurity | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)Security | |
Schedule Of Held To Maturity Securities [Line Items] | |||||
Number of Investment Securities Segments | Segment | 2 | ||||
Credit losses | $ 0 | ||||
Municipal securities percentage of securities portfolio | 2.30% | 2.30% | |||
Securities in Unrealized Loss Positions Qualitative Disclosure Number of Positions Greater Than or Equal to One Year | Security | 44 | 44 | 138 | ||
Gain (loss) on sale of securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Available for sale securities, at fair value | 461,115,000 | 461,115,000 | $ 287,663,000 | ||
Collateralized Securities [Member] | |||||
Schedule Of Held To Maturity Securities [Line Items] | |||||
Available for Sale Securities, Amortized Cost Basis | 5,800,000,000 | 5,800,000,000 | 5,980,000,000 | ||
Available for sale securities, at fair value | $ 5,940,000,000 | $ 5,940,000,000 | $ 5,990,000,000 | ||
Securities Concentration Risk [Member] | Stockholders' Equity, Total [Member] | |||||
Schedule Of Held To Maturity Securities [Line Items] | |||||
Concentration Risk, Percentage | 10.00% | 10.00% |
Securities - Securities in Cont
Securities - Securities in Continuous Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Estimated Fair Value, Less than 12 Months | $ 204,969 | $ 85,146 |
Available for Sale, Unrealized Losses, Less than 12 Months | (880) | (585) |
Available for Sale, Estimated Fair Value, 12 Months or More | 14,701 | 1,828 |
Available for Sale, Unrealized Losses, 12 Months or More | (270) | (3) |
Available for Sale, Estimated Fair Value, Total | 219,670 | 86,974 |
Available for Sale, Unrealized Losses, Total | (1,150) | (588) |
Held to Maturity, Estimated Fair Value, Less than 12 Months | 153,355 | 1,060,533 |
Held to Maturity, Unrealized Losses, Less than 12 Months | (1,301) | (3,573) |
Held to Maturity, Estimated Fair Value, 12 Months or More | 19,716 | 3,114,006 |
Held to Maturity, Unrealized Losses, 12 Months or More | (300) | (31,834) |
Held to Maturity, Estimated Fair Value, Total | 173,071 | 4,174,539 |
Held to Maturity, Unrealized Losses, Total | (1,601) | (35,407) |
Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Estimated Fair Value, Less than 12 Months | 188,671 | 50,245 |
Available for Sale, Unrealized Losses, Less than 12 Months | (515) | (136) |
Available for Sale, Estimated Fair Value, 12 Months or More | 1,886 | 1,818 |
Available for Sale, Unrealized Losses, 12 Months or More | (10) | (3) |
Available for Sale, Estimated Fair Value, Total | 190,557 | 52,063 |
Available for Sale, Unrealized Losses, Total | (525) | (139) |
Held to Maturity, Estimated Fair Value, Less than 12 Months | 33,507 | 54,890 |
Held to Maturity, Unrealized Losses, Less than 12 Months | (256) | (373) |
Held to Maturity, Estimated Fair Value, Total | 33,507 | 54,890 |
Held to Maturity, Unrealized Losses, Total | (256) | (373) |
Mortgage-backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Estimated Fair Value, Less than 12 Months | 16,298 | 34,901 |
Available for Sale, Unrealized Losses, Less than 12 Months | (365) | (449) |
Available for Sale, Estimated Fair Value, 12 Months or More | 12,815 | 10 |
Available for Sale, Unrealized Losses, 12 Months or More | (260) | |
Available for Sale, Estimated Fair Value, Total | 29,113 | 34,911 |
Available for Sale, Unrealized Losses, Total | (625) | (449) |
Held to Maturity, Estimated Fair Value, Less than 12 Months | 118,159 | 947,314 |
Held to Maturity, Unrealized Losses, Less than 12 Months | (858) | (3,017) |
Held to Maturity, Estimated Fair Value, 12 Months or More | 19,716 | 3,110,765 |
Held to Maturity, Unrealized Losses, 12 Months or More | (300) | (31,828) |
Held to Maturity, Estimated Fair Value, Total | 137,875 | 4,058,079 |
Held to Maturity, Unrealized Losses, Total | (1,158) | (34,845) |
States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Held to Maturity, Estimated Fair Value, Less than 12 Months | 1,689 | 58,329 |
Held to Maturity, Unrealized Losses, Less than 12 Months | (187) | (183) |
Held to Maturity, Estimated Fair Value, 12 Months or More | 3,241 | |
Held to Maturity, Unrealized Losses, 12 Months or More | (6) | |
Held to Maturity, Estimated Fair Value, Total | 1,689 | 61,570 |
Held to Maturity, Unrealized Losses, Total | $ (187) | $ (189) |
Securities - Investment Securit
Securities - Investment Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Held to Maturity, amortized cost, due in one year or less | $ 26,715 | |
Held to Maturity, amortized cost, due after one year through five years | 96,287 | |
Held to Maturity, amortized cost, due after five years through ten years | 44,637 | |
Held to Maturity, amortized cost, due after ten years | 6,777 | |
Held to Maturity, amortized cost, subtotal | 174,416 | |
Held to Maturity, amortized cost, mortgage-backed securities and collateralized mortgage obligations | 6,795,964 | |
Held to Maturity, Amortized Cost | 6,970,380 | $ 8,282,393 |
Held to Maturity, fair value, due in one year or less | 26,744 | |
Held to Maturity, fair value, due after one year through five years | 101,719 | |
Held to Maturity, fair value, due after five years through ten years | 48,053 | |
Held to Maturity, fair value, due after ten years | 7,026 | |
Held to Maturity, fair value, subtotal | 183,542 | |
Held to Maturity, fair value, mortgage-backed securities and collateralized mortgage obligations | 6,962,295 | |
Held to Maturity, fair value, total | 7,145,837 | 8,303,851 |
Available for Sale, amortized cost, mortgage-backed securities and collateralized mortgage obligations | 461,557 | |
Available for Sale, Amortized Cost | 461,557 | 286,901 |
Available for Sale, fair value, mortgage-backed securities and collateralized mortgage obligations | 461,115 | |
Available for Sale securities, at fair value | $ 461,115 | $ 287,663 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Types of Loans in Loan Portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for sale | $ 51,694 | $ 80,959 | |
Total loans held for investment | 18,013,333 | 17,211,625 | |
Total loans, including Warehouse Purchase Program | 20,795,641 | 18,845,346 | |
Residential Mortgage Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for sale | 51,694 | 80,959 | |
Warehouse Purchase Program [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 2,730,614 | 1,552,762 | |
Total loans, including Warehouse Purchase Program | 2,730,614 | 1,552,762 | |
Commercial and Industrial [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 4,150,189 | 3,205,595 | |
Total loans, including Warehouse Purchase Program | 4,150,189 | 3,205,595 | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 2,081,762 | 2,064,167 | |
Total loans, including Warehouse Purchase Program | 2,081,762 | 2,064,167 | |
Real Estate [Member] | 1-4 Family [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 4,615,710 | 4,306,452 | |
Total loans, including Warehouse Purchase Program | [1] | 4,667,404 | 4,387,411 |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 6,179,901 | 6,556,285 | |
Total loans, including Warehouse Purchase Program | 6,179,901 | 6,556,285 | |
Real Estate [Member] | Farmland [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 419,126 | 495,558 | |
Agriculture [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 179,846 | 185,297 | |
Consumer and Other [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans held for investment | 386,799 | 398,271 | |
Total loans, including Warehouse Purchase Program | $ 386,799 | $ 398,271 | |
[1] | Includes $51.7 million and $81.0 million of residential mortgage loans held for sale at September 30, 2020 and December 31, 2019, respectively. |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Loancontract | Sep. 30, 2019USD ($)contract | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Percentage of Loans Related to Single Industry on Loans | 10.00% | 10.00% | 10.00% | ||||
Percentage of real estate loans aggregating to company loan portfolio, excluding Warehouse Purchase Program loans | 71.30% | 71.30% | |||||
Loans and Leases Receivable, Related Parties | $ 1,831 | $ 1,831 | $ 4,152 | $ 1,923 | |||
Loans held for investment | $ 18,013,333 | $ 18,013,333 | $ 17,211,625 | ||||
Financing Receivable Ratio of Nonperforming Loans to All Loans and Other Real Estate | 0.33% | 0.33% | 0.33% | ||||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | $ 2,300 | $ 2,200 | |||||
Loans and leases receivable, nonaccrual loans | $ 57,400 | $ 50,000 | 57,400 | 50,000 | |||
Financing Receivable, Allowance for Credit Losses on Loans | $ 323,600 | $ 323,600 | $ 87,500 | ||||
Allowance for Credit Losses as Percentage of Loans | 1.56% | 1.56% | 0.46% | ||||
Increase in allowance for credit losses for loans | $ 236,200 | ||||||
Increase in allowance for credit losses for loans, percentage | 270.00% | ||||||
Provision for credit losses | $ 10,000 | 1,100 | $ 20,000 | 2,600 | |||
Net charge-offs | 10,570 | 1,045 | 24,372 | $ 1,979 | |||
Allowance for credit losses on off-balance sheet credit exposures | 29,947 | 29,947 | $ 29,947 | $ 5,599 | |||
Commitments expected to fund | 1,750,000 | 1,750,000 | |||||
Nonaccrual loans | 57,412 | $ 57,412 | 55,243 | ||||
Troubled debt restructurings, number of loans | contract | 1 | 2 | |||||
Financing receivable, number of loans with default | contract | 0 | ||||||
Financing receivable, modifications, recorded investment | 12 | 14,200 | $ 12 | $ 14,200 | |||
Troubled debt restructuring, recorded investment at date of restructure | $ 23 | 14,993 | |||||
Loan to be Considered as Payment Default in Period | 90 days | ||||||
Troubled Debt Restructuring [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Allowance for credit losses on off-balance sheet credit exposures | 29,900 | $ 29,900 | 5,600 | ||||
Nonaccrual loans | 13,200 | $ 14,300 | 13,200 | $ 14,300 | |||
COVID-19 [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Provision for credit losses | 10,000 | 20,000 | |||||
Net charge-offs | $ 10,600 | $ 24,400 | |||||
CARES Act [Member] | Paycheck Protection Program [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of loans | Loan | 11,948 | ||||||
Funded amount | $ 1,390,000 | ||||||
Term period of loans | 2 years | 2 years | |||||
PCD Loans [Member] | COVID-19 [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Net charge-offs | $ 8,600 | $ 21,000 | |||||
Specific reserves | 15,700 | 44,200 | |||||
General reserve | 7,100 | 23,200 | |||||
Additional specific reserves | 6,100 | ||||||
Accounting Standards Update 2016-13 [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Increase in allowance for credit losses for loans | 108,700 | ||||||
Increase in allowance for credit losses due to adoption of CECL | 240,538 | 240,538 | |||||
Allowance for credit losses on off-balance sheet credit exposures | $ 24,348 | ||||||
Accounting Standards Update 2016-13 [Member] | PCD Loans [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
PCD discount reallocated to allowance for credit losses | 131,800 | ||||||
Nonperforming Financial Instruments [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loans held for investment | $ 69,500 | $ 69,500 | $ 62,900 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Related Party Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Receivables [Abstract] | ||
Beginning balance on January 1 | $ 4,152 | $ 1,923 |
New loans | 813 | 1 |
Transfers | 2,500 | |
Repayments | (3,134) | (272) |
Ending balance | $ 1,831 | $ 4,152 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | $ 39,489 | $ 80,887 | |
Nonaccrual loans | 57,412 | 55,243 | |
Current loans | 20,698,740 | 18,709,216 | |
Total loans | 20,795,641 | 18,845,346 | |
Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 39,027 | 80,446 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 462 | 441 | |
Warehouse Purchase Program Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Current loans | 2,730,614 | 1,552,762 | |
Total loans | 2,730,614 | 1,552,762 | |
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 30 | 466 | |
Nonaccrual loans | 1,200 | 103 | |
Current loans | 597,742 | 680,286 | |
Total loans | 598,972 | 680,855 | |
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 30 | 466 | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 25,014 | 16,470 | |
Nonaccrual loans | 2,211 | 1,142 | |
Current loans | 2,054,537 | 2,046,555 | |
Total loans | 2,081,762 | 2,064,167 | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 24,592 | 16,470 | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 422 | ||
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | [1] | 6,200 | 44,325 |
Nonaccrual loans | [1] | 23,769 | 24,413 |
Current loans | [1] | 4,637,435 | 4,318,673 |
Total loans | [1] | 4,667,404 | 4,387,411 |
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | [1] | 6,160 | 43,884 |
Real Estate [Member] | 1-4 Family Residential (Includes Home Equity) [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | [1] | 40 | 441 |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 2,758 | 10,669 | |
Nonaccrual loans | 11,486 | 12,714 | |
Current loans | 6,165,657 | 6,532,902 | |
Total loans | 6,179,901 | 6,556,285 | |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 2,758 | 10,669 | |
Commercial and Industrial [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 4,958 | 7,249 | |
Nonaccrual loans | 17,153 | 16,809 | |
Current loans | 4,128,078 | 3,181,537 | |
Total loans | 4,150,189 | 3,205,595 | |
Commercial and Industrial [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 4,958 | 7,249 | |
Consumer and Other [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | 529 | 1,708 | |
Nonaccrual loans | 1,593 | 62 | |
Current loans | 384,677 | 396,501 | |
Total loans | 386,799 | 398,271 | |
Consumer and Other [Member] | Financing Receivables, 30 to 89 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans past due and still accruing | $ 529 | $ 1,708 | |
[1] | Includes $51.7 million and $81.0 million of residential mortgage loans held for sale at September 30, 2020 and December 31, 2019, respectively. |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Aging Analysis of Past Due Loans (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 51,694 | $ 80,959 |
Residential Mortgage Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Loans held for sale | $ 51,694 | $ 80,959 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Nonperforming Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | $ 18,013,333 | $ 17,211,625 | |
Other real estate owned | $ 11,548 | $ 6,936 | |
Nonperforming assets to total loans and other real estate | 0.33% | 0.33% | |
Nonperforming assets to total loans, excluding Warehouse Purchase Program loans, and other real estate | 0.38% | 0.36% | |
Nonperforming Financial Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | $ 57,874 | $ 55,684 | |
Repossessed assets | 120 | 323 | |
Other real estate owned | 11,548 | 6,936 | |
Total nonperforming assets | 69,542 | 62,943 | |
Nonperforming Financial Loans [Member] | Finance Receivable Nonaccrual Status [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | [1],[2] | 57,412 | 55,243 |
Nonperforming Financial Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | $ 462 | $ 441 | |
[1] | Includes troubled debt restructurings of $13.2 million and $13.6 million as of September 30, 2020 and December 31, 2019, respectively. | ||
[2] | There were no nonperforming or troubled debt restructurings of warehouse lines of credit or Warehouse Purchase Program loans for the periods presented. |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Nonperforming Assets (Parenthetical) (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | $ 18,013,333,000 | $ 17,211,625,000 | |
Nonperforming Financial Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | 57,874,000 | 55,684,000 | |
Nonperforming Financial Loans [Member] | Finance Receivable Nonaccrual Status [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | [1],[2] | 57,412,000 | 55,243,000 |
Troubled Debt Restructuring [Member] | Nonperforming Financial Loans [Member] | Finance Receivable Nonaccrual Status [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | 13,200,000 | 13,600,000 | |
Troubled Debt Restructuring [Member] | Nonperforming Financial Loans [Member] | Finance Receivable Nonaccrual Status [Member] | Warehouse Purchase Program [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Loans held for investment | $ 0 | $ 0 | |
[1] | Includes troubled debt restructurings of $13.2 million and $13.6 million as of September 30, 2020 and December 31, 2019, respectively. | ||
[2] | There were no nonperforming or troubled debt restructurings of warehouse lines of credit or Warehouse Purchase Program loans for the periods presented. |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Recorded Investment and Outstanding Balance for Purchased Credit Deteriorated Loans and Non Purchased Credit Deteriorated Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | ||
PCD Loans [Member] | ||||
Purchased And Non Purchased Credit Impaired Loans [Line Items] | ||||
Outstanding balance | $ 226,080 | $ 410,785 | ||
Discount | [1] | (16,760) | (167,320) | [2] |
Recorded investment | 209,320 | 243,465 | ||
Non-PCD Loans [Member] | ||||
Purchased And Non Purchased Credit Impaired Loans [Line Items] | ||||
Outstanding balance | 4,468,843 | 6,102,540 | ||
Discount | (53,115) | (110,130) | ||
Recorded investment | $ 4,415,728 | $ 5,992,410 | ||
[1] | ASU 2016-13 became effective for the Company on January 1, 2020. | |||
[2] | Includes $131.8 million in PCD loans credit discount. |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Recorded Investment and Outstanding Balance for Purchased Credit Deteriorated Loans and Non Purchased Credit Deteriorated Loans (Parenthetical) (Details) $ in Millions | Dec. 31, 2019USD ($) |
PCD Loans [Member] | |
Purchased And Non Purchased Credit Impaired Loans [Line Items] | |
PCD loans credit discount | $ 131.8 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Changes in Accretable Yields of Acquired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
PCD Loans [Member] | ||||
Changes In Accretable Yield for PCI And Non PCI Loans [Line Items] | ||||
Balance at beginning of period | $ 22,565 | $ 904 | $ 35,654 | $ 1,534 |
Adjustments | 26 | (449) | 62 | |
Accretion charge-offs | (354) | |||
Accretion | (5,805) | (277) | (18,091) | (943) |
Balance at September 30, | 16,760 | 653 | 16,760 | 653 |
Non-PCD Loans [Member] | ||||
Changes In Accretable Yield for PCI And Non PCI Loans [Line Items] | ||||
Balance at beginning of period | 69,860 | 12,479 | 110,130 | 14,833 |
Adjustments | (16) | 296 | ||
Accretion charge-offs | (120) | |||
Accretion | (16,729) | (1,006) | (57,191) | (3,360) |
Balance at September 30, | $ 53,115 | $ 11,473 | $ 53,115 | $ 11,473 |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Risk Grade by Category of Loan and Year of Origination/Renewal (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable Impaired [Line Items] | |||
2020 | $ 7,113,185 | ||
2019 | 3,366,364 | ||
2018 | 2,706,115 | ||
2017 | 2,001,273 | ||
2016 | 1,334,474 | ||
Prior | 2,748,824 | ||
Revolving Loans | 1,479,192 | ||
Revolving Loans Converted to Term Loans | 46,214 | ||
Total loans | 20,795,641 | $ 18,845,346 | |
PCD Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 69,612 | ||
2019 | 44,430 | ||
2018 | 26,277 | ||
2017 | 17,499 | ||
2016 | 438 | ||
Prior | 20,630 | ||
Revolving Loans | 14,335 | ||
Revolving Loans Converted to Term Loans | 16,099 | ||
Total loans | 209,320 | ||
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 116,763 | ||
2019 | 96,636 | ||
2018 | 68,549 | ||
2017 | 55,819 | ||
2016 | 52,287 | ||
Prior | 112,910 | ||
Revolving Loans | 95,838 | ||
Revolving Loans Converted to Term Loans | 170 | ||
Total loans | 598,972 | 680,855 | |
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | PCD Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 976 | ||
2019 | 209 | ||
2018 | 296 | ||
Prior | 295 | ||
Total loans | 1,776 | ||
Warehouse Purchase Program [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 2,730,614 | ||
Total loans | 2,730,614 | 1,552,762 | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 716,122 | ||
2019 | 660,510 | ||
2018 | 332,732 | ||
2017 | 153,028 | ||
2016 | 28,334 | ||
Prior | 65,452 | ||
Revolving Loans | 125,584 | ||
Total loans | 2,081,762 | 2,064,167 | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | PCD Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2019 | 171 | ||
2018 | 115 | ||
2017 | 289 | ||
Total loans | 575 | ||
Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 1,018,207 | ||
2019 | 929,001 | ||
2018 | 637,888 | ||
2017 | 509,169 | ||
2016 | 487,094 | ||
Prior | 949,939 | ||
Revolving Loans | 132,544 | ||
Revolving Loans Converted to Term Loans | 3,562 | ||
Total loans | [1] | 4,667,404 | 4,387,411 |
Real Estate [Member] | 1-4 Family [Member] | PCD Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2016 | 238 | ||
Prior | 1,448 | ||
Total loans | 1,686 | ||
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 631,967 | ||
2019 | 1,097,828 | ||
2018 | 1,216,304 | ||
2017 | 1,066,363 | ||
2016 | 667,676 | ||
Prior | 1,416,551 | ||
Revolving Loans | 74,543 | ||
Revolving Loans Converted to Term Loans | 8,669 | ||
Total loans | 6,179,901 | 6,556,285 | |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | PCD Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 48,199 | ||
2019 | 21,935 | ||
2018 | 5,361 | ||
2017 | 6,278 | ||
2016 | 200 | ||
Prior | 18,089 | ||
Total loans | 100,062 | ||
Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 1,812,052 | ||
2019 | 516,263 | ||
2018 | 413,583 | ||
2017 | 160,564 | ||
2016 | 88,431 | ||
Prior | 187,554 | ||
Revolving Loans | 938,002 | ||
Revolving Loans Converted to Term Loans | 33,740 | ||
Total loans | 4,150,189 | 3,205,595 | |
Commercial and Industrial [Member] | PCD Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 16,637 | ||
2019 | 22,115 | ||
2018 | 20,505 | ||
2017 | 10,932 | ||
Prior | 798 | ||
Revolving Loans | 2,855 | ||
Revolving Loans Converted to Term Loans | 16,099 | ||
Total loans | 89,941 | ||
Consumer and Other [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 87,460 | ||
2019 | 66,126 | ||
2018 | 37,059 | ||
2017 | 56,330 | ||
2016 | 10,652 | ||
Prior | 16,418 | ||
Revolving Loans | 112,681 | ||
Revolving Loans Converted to Term Loans | 73 | ||
Total loans | 386,799 | $ 398,271 | |
Consumer and Other [Member] | PCD Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 3,800 | ||
Revolving Loans | 11,480 | ||
Total loans | 15,280 | ||
Grade 1 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 1,429,039 | ||
2019 | 19,021 | ||
2018 | 8,456 | ||
2017 | 3,568 | ||
2016 | 2,204 | ||
Prior | 726 | ||
Revolving Loans | 29,899 | ||
Revolving Loans Converted to Term Loans | 164 | ||
Total loans | 1,493,077 | ||
Grade 1 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 2,004 | ||
2019 | 542 | ||
2018 | 177 | ||
2017 | 182 | ||
Revolving Loans | 10,032 | ||
Revolving Loans Converted to Term Loans | 2 | ||
Total loans | 12,939 | ||
Grade 1 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 117 | ||
Revolving Loans | 95 | ||
Total loans | 212 | ||
Grade 1 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 1,389,705 | ||
2019 | 7,320 | ||
2018 | 4,109 | ||
2017 | 917 | ||
2016 | 834 | ||
Prior | 569 | ||
Revolving Loans | 18,249 | ||
Revolving Loans Converted to Term Loans | 162 | ||
Total loans | 1,421,865 | ||
Grade 1 [Member] | Consumer and Other [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 37,213 | ||
2019 | 11,159 | ||
2018 | 4,170 | ||
2017 | 2,469 | ||
2016 | 1,370 | ||
Prior | 157 | ||
Revolving Loans | 1,523 | ||
Total loans | 58,061 | ||
Grade 2 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 15,109 | ||
2019 | 14,347 | ||
2018 | 18,738 | ||
2017 | 41,361 | ||
2016 | 3,591 | ||
Prior | 11,942 | ||
Revolving Loans | 26,971 | ||
Total loans | 132,059 | ||
Grade 2 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 30 | ||
2017 | 351 | ||
2016 | 5 | ||
Prior | 1,532 | ||
Revolving Loans | 310 | ||
Total loans | 2,228 | ||
Grade 2 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2017 | 86 | ||
2016 | 126 | ||
Prior | 267 | ||
Total loans | 479 | ||
Grade 2 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 288 | ||
2019 | 315 | ||
2018 | 987 | ||
2017 | 676 | ||
2016 | 254 | ||
Prior | 7,705 | ||
Revolving Loans | 1,133 | ||
Total loans | 11,358 | ||
Grade 2 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 10,046 | ||
2019 | 2,006 | ||
2017 | 7,450 | ||
2016 | 201 | ||
Prior | 1,386 | ||
Total loans | 21,089 | ||
Grade 2 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 2,395 | ||
2019 | 10,990 | ||
2018 | 17,344 | ||
2017 | 1,348 | ||
2016 | 1,422 | ||
Prior | 1,052 | ||
Revolving Loans | 24,324 | ||
Total loans | 58,875 | ||
Grade 2 [Member] | Consumer and Other [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 2,350 | ||
2019 | 1,036 | ||
2018 | 407 | ||
2017 | 31,450 | ||
2016 | 1,583 | ||
Revolving Loans | 1,204 | ||
Total loans | 38,030 | ||
Grade 3 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 5,332,665 | ||
2019 | 3,030,142 | ||
2018 | 2,290,011 | ||
2017 | 1,621,320 | ||
2016 | 1,090,669 | ||
Prior | 2,223,136 | ||
Revolving Loans | 1,167,664 | ||
Revolving Loans Converted to Term Loans | 16,876 | ||
Total loans | 16,772,483 | ||
Grade 3 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 95,589 | ||
2019 | 81,626 | ||
2018 | 62,552 | ||
2017 | 52,243 | ||
2016 | 47,463 | ||
Prior | 92,816 | ||
Revolving Loans | 74,173 | ||
Revolving Loans Converted to Term Loans | 145 | ||
Total loans | 506,607 | ||
Grade 3 [Member] | Warehouse Purchase Program [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 2,730,614 | ||
Total loans | 2,730,614 | ||
Grade 3 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 646,011 | ||
2019 | 630,323 | ||
2018 | 297,303 | ||
2017 | 128,581 | ||
2016 | 23,831 | ||
Prior | 56,166 | ||
Revolving Loans | 114,716 | ||
Total loans | 1,896,931 | ||
Grade 3 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 1,010,159 | ||
2019 | 910,378 | ||
2018 | 612,545 | ||
2017 | 482,791 | ||
2016 | 473,571 | ||
Prior | 888,135 | ||
Revolving Loans | 125,281 | ||
Revolving Loans Converted to Term Loans | 3,313 | ||
Total loans | 4,506,173 | ||
Grade 3 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 468,230 | ||
2019 | 986,980 | ||
2018 | 983,614 | ||
2017 | 824,609 | ||
2016 | 464,007 | ||
Prior | 1,018,983 | ||
Revolving Loans | 63,247 | ||
Revolving Loans Converted to Term Loans | 2,072 | ||
Total loans | 4,811,742 | ||
Grade 3 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 342,204 | ||
2019 | 370,525 | ||
2018 | 302,552 | ||
2017 | 110,782 | ||
2016 | 74,182 | ||
Prior | 150,914 | ||
Revolving Loans | 715,920 | ||
Revolving Loans Converted to Term Loans | 11,273 | ||
Total loans | 2,078,352 | ||
Grade 3 [Member] | Consumer and Other [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 39,858 | ||
2019 | 50,310 | ||
2018 | 31,445 | ||
2017 | 22,314 | ||
2016 | 7,615 | ||
Prior | 16,122 | ||
Revolving Loans | 74,327 | ||
Revolving Loans Converted to Term Loans | 73 | ||
Total loans | 242,064 | ||
Grade 4 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 241,432 | ||
2019 | 212,195 | ||
2018 | 323,635 | ||
2017 | 295,777 | ||
2016 | 185,888 | ||
Prior | 410,086 | ||
Revolving Loans | 150,642 | ||
Revolving Loans Converted to Term Loans | 8,048 | ||
Total loans | 1,827,703 | ||
Grade 4 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 15,376 | ||
2019 | 10,246 | ||
2018 | 4,873 | ||
2017 | 3,043 | ||
2016 | 4,633 | ||
Prior | 17,219 | ||
Revolving Loans | 9,021 | ||
Revolving Loans Converted to Term Loans | 23 | ||
Total loans | 64,434 | ||
Grade 4 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 70,111 | ||
2019 | 30,016 | ||
2018 | 33,405 | ||
2017 | 19,562 | ||
2016 | 3,806 | ||
Prior | 7,187 | ||
Revolving Loans | 10,134 | ||
Total loans | 174,221 | ||
Grade 4 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 7,620 | ||
2019 | 16,515 | ||
2018 | 23,244 | ||
2017 | 22,256 | ||
2016 | 10,766 | ||
Prior | 36,955 | ||
Revolving Loans | 2,550 | ||
Revolving Loans Converted to Term Loans | 249 | ||
Total loans | 120,155 | ||
Grade 4 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 89,339 | ||
2019 | 79,177 | ||
2018 | 209,634 | ||
2017 | 214,653 | ||
2016 | 156,972 | ||
Prior | 318,504 | ||
Revolving Loans | 8,505 | ||
Revolving Loans Converted to Term Loans | 6,597 | ||
Total loans | 1,083,381 | ||
Grade 4 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 54,749 | ||
2019 | 74,189 | ||
2018 | 51,515 | ||
2017 | 36,188 | ||
2016 | 9,627 | ||
Prior | 30,103 | ||
Revolving Loans | 106,284 | ||
Revolving Loans Converted to Term Loans | 1,179 | ||
Total loans | 363,834 | ||
Grade 4 [Member] | Consumer and Other [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 4,237 | ||
2019 | 2,052 | ||
2018 | 964 | ||
2017 | 75 | ||
2016 | 84 | ||
Prior | 118 | ||
Revolving Loans | 14,148 | ||
Total loans | 21,678 | ||
Grade 5 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 13,317 | ||
2019 | 42,156 | ||
2018 | 22,395 | ||
2017 | 7,312 | ||
2016 | 36,210 | ||
Prior | 47,862 | ||
Revolving Loans | 24,915 | ||
Revolving Loans Converted to Term Loans | 5,010 | ||
Total loans | 199,177 | ||
Grade 5 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 1,984 | ||
2019 | 3,705 | ||
2018 | 577 | ||
Prior | 14 | ||
Revolving Loans | 2,302 | ||
Total loans | 8,582 | ||
Grade 5 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2018 | 829 | ||
2017 | 4,510 | ||
Prior | 117 | ||
Total loans | 5,456 | ||
Grade 5 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2019 | 219 | ||
2018 | 157 | ||
2017 | 6 | ||
2016 | 712 | ||
Prior | 1,971 | ||
Total loans | 3,065 | ||
Grade 5 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 6,120 | ||
2019 | 7,556 | ||
2018 | 16,457 | ||
2017 | 2,771 | ||
2016 | 35,280 | ||
Prior | 43,836 | ||
Revolving Loans | 1,306 | ||
Total loans | 113,326 | ||
Grade 5 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 5,213 | ||
2019 | 30,676 | ||
2018 | 4,309 | ||
2017 | 7 | ||
2016 | 218 | ||
Prior | 1,924 | ||
Revolving Loans | 11,310 | ||
Revolving Loans Converted to Term Loans | 5,010 | ||
Total loans | 58,667 | ||
Grade 5 [Member] | Consumer and Other [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2018 | 66 | ||
2017 | 18 | ||
Revolving Loans | 9,997 | ||
Total loans | 10,081 | ||
Grade 6 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 11,231 | ||
2019 | 317 | ||
2018 | 309 | ||
2017 | 10,919 | ||
2016 | 5,079 | ||
Prior | 19,842 | ||
Revolving Loans | 22,159 | ||
Total loans | 69,856 | ||
Grade 6 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 804 | ||
2018 | 59 | ||
2016 | 186 | ||
Prior | 181 | ||
Total loans | 1,230 | ||
Grade 6 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2016 | 565 | ||
Prior | 1,325 | ||
Total loans | 1,890 | ||
Grade 6 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 23 | ||
2019 | 39 | ||
2018 | 3 | ||
2017 | 332 | ||
Prior | 1,524 | ||
Total loans | 1,921 | ||
Grade 6 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 10,014 | ||
2019 | 174 | ||
2017 | 10,587 | ||
2016 | 3,176 | ||
Prior | 14,906 | ||
Total loans | 38,857 | ||
Grade 6 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 390 | ||
2019 | 104 | ||
2018 | 247 | ||
2016 | 1,152 | ||
Prior | 1,906 | ||
Revolving Loans | 22,159 | ||
Total loans | 25,958 | ||
Grade 7 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 780 | ||
2019 | 3,756 | ||
2018 | 16,294 | ||
2017 | 3,517 | ||
2016 | 10,378 | ||
Prior | 14,513 | ||
Revolving Loans | 42,607 | ||
Revolving Loans Converted to Term Loans | 17 | ||
Total loans | 91,862 | ||
Grade 7 [Member] | Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2019 | 308 | ||
2018 | 15 | ||
Prior | 853 | ||
Total loans | 1,176 | ||
Grade 7 [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2018 | 1,080 | ||
2016 | 6 | ||
Prior | 390 | ||
Revolving Loans | 734 | ||
Total loans | 2,210 | ||
Grade 7 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2019 | 1,535 | ||
2018 | 952 | ||
2017 | 3,108 | ||
2016 | 1,544 | ||
Prior | 12,114 | ||
Revolving Loans | 3,485 | ||
Total loans | 22,738 | ||
Grade 7 [Member] | Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 19 | ||
2018 | 1,238 | ||
2017 | 15 | ||
2016 | 7,840 | ||
Prior | 847 | ||
Revolving Loans | 1,485 | ||
Total loans | 11,444 | ||
Grade 7 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 759 | ||
2019 | 344 | ||
2018 | 13,002 | ||
2017 | 390 | ||
2016 | 988 | ||
Prior | 288 | ||
Revolving Loans | 36,901 | ||
Revolving Loans Converted to Term Loans | 17 | ||
Total loans | 52,689 | ||
Grade 7 [Member] | Consumer and Other [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2020 | 2 | ||
2019 | 1,569 | ||
2018 | 7 | ||
2017 | 4 | ||
Prior | 21 | ||
Revolving Loans | 2 | ||
Total loans | 1,605 | ||
Grade 8 [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2016 | 17 | ||
Prior | 87 | ||
Total loans | 104 | ||
Grade 8 [Member] | Real Estate [Member] | 1-4 Family [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2016 | 9 | ||
Prior | 87 | ||
Total loans | 96 | ||
Grade 8 [Member] | Commercial and Industrial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
2016 | 8 | ||
Total loans | $ 8 | ||
[1] | Includes $51.7 million and $81.0 million of residential mortgage loans held for sale at September 30, 2020 and December 31, 2019, respectively. |
Loans and Allowance for Cred_14
Loans and Allowance for Credit Losses - Risk Grade by Category of Loan and Year of Origination/Renewal (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable Impaired [Line Items] | ||
Loans held for sale | $ 51,694 | $ 80,959 |
Residential Mortgage Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Loans held for sale | $ 51,694 | $ 80,959 |
Loans and Allowance for Cred_15
Loans and Allowance for Credit Losses - Allowance for Credit Losses on Loans by Category of Loan (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | $ 324,205 | $ 87,006 | $ 87,469 | $ 86,440 |
Provision for credit losses | 10,000 | 1,100 | 20,000 | 2,600 |
Charge-offs | (11,148) | (1,737) | (27,111) | (5,765) |
Recoveries | 578 | 692 | 2,739 | 3,786 |
Net charge-offs | (10,570) | (1,045) | (24,372) | (1,979) |
Allowance for credit losses, ending balance | 323,635 | 87,061 | 323,635 | 87,061 |
Accounting Standards Update 2016-13 [Member] | ||||
Allowance for credit losses: | ||||
Impact of adoption ASC 326 | 240,538 | 240,538 | ||
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 6,898 | 3,816 | 2,971 | 2,693 |
Provision for credit losses | 554 | 188 | 1,680 | (921) |
Charge-offs | (294) | (62) | (358) | |
Recoveries | 17 | 16 | 83 | 1,312 |
Net charge-offs | 17 | (278) | 21 | 954 |
Allowance for credit losses, ending balance | 7,469 | 3,726 | 7,469 | 3,726 |
Agriculture and Agriculture Real Estate (Includes Farmland) [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Allowance for credit losses: | ||||
Impact of adoption ASC 326 | 2,797 | 2,797 | ||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 39,862 | 15,886 | 14,654 | 15,582 |
Provision for credit losses | 4,187 | 290 | 15,302 | 21 |
Charge-offs | (500) | (500) | (63) | |
Recoveries | 22 | 6 | 40 | 62 |
Net charge-offs | (478) | 6 | (460) | (1) |
Allowance for credit losses, ending balance | 43,571 | 15,602 | 43,571 | 15,602 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Allowance for credit losses: | ||||
Impact of adoption ASC 326 | 14,075 | 14,075 | ||
Real Estate [Member] | 1-4 Family [Member] | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 33,021 | 14,383 | 15,277 | 14,135 |
Provision for credit losses | 7,517 | 543 | 17,050 | 799 |
Charge-offs | (436) | (611) | (22) | |
Recoveries | 184 | 9 | 303 | 23 |
Net charge-offs | (252) | 9 | (308) | 1 |
Allowance for credit losses, ending balance | 40,286 | 14,935 | 40,286 | 14,935 |
Real Estate [Member] | 1-4 Family [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Allowance for credit losses: | ||||
Impact of adoption ASC 326 | 8,267 | 8,267 | ||
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 78,207 | 12,166 | 12,332 | 11,220 |
Provision for credit losses | 3,188 | 452 | 19,992 | 1,396 |
Charge-offs | (676) | (676) | ||
Recoveries | 1 | 81 | 3 | |
Net charge-offs | (676) | 1 | (595) | 3 |
Allowance for credit losses, ending balance | 80,719 | 12,619 | 80,719 | 12,619 |
Real Estate [Member] | Commercial Real Estate (Includes Multi-Family Residential) [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Allowance for credit losses: | ||||
Impact of adoption ASC 326 | 48,990 | 48,990 | ||
Commercial and Industrial [Member] | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 149,884 | 39,177 | 40,445 | 40,223 |
Provision for credit losses | (4,982) | (763) | (22,990) | (918) |
Charge-offs | (8,444) | (419) | (21,733) | (2,501) |
Recoveries | 99 | 502 | 1,211 | 1,693 |
Net charge-offs | (8,345) | 83 | (20,522) | (808) |
Allowance for credit losses, ending balance | 136,557 | 38,497 | 136,557 | 38,497 |
Commercial and Industrial [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Allowance for credit losses: | ||||
Impact of adoption ASC 326 | 139,624 | 139,624 | ||
Consumer and Other [Member] | ||||
Allowance for credit losses: | ||||
Allowance for credit losses, beginning balance | 16,333 | 1,578 | 1,790 | 1,587 |
Provision for credit losses | (464) | 970 | (11,034) | 2,223 |
Charge-offs | (1,092) | (1,024) | (3,529) | (2,821) |
Recoveries | 256 | 158 | 1,021 | 693 |
Net charge-offs | (836) | (866) | (2,508) | (2,128) |
Allowance for credit losses, ending balance | 15,033 | $ 1,682 | 15,033 | $ 1,682 |
Consumer and Other [Member] | Accounting Standards Update 2016-13 [Member] | ||||
Allowance for credit losses: | ||||
Impact of adoption ASC 326 | $ 26,785 | $ 26,785 |
Loans and Allowance for Cred_16
Loans and Allowance for Credit Losses - Troubled Debt Restructurings (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020USD ($)contract | Sep. 30, 2019USD ($)contract | |
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructurings, number of loans | contract | 1 | 2 |
Troubled debt restructurings, pre-modification outstanding recorded investment | $ 23 | $ 14,993 |
Troubled debt restructurings, post-modification outstanding recorded investment | $ 12 | $ 14,188 |
Real Estate [Member] | 1-4 Family [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructurings, number of loans | contract | 1 | |
Troubled debt restructurings, pre-modification outstanding recorded investment | $ 23 | |
Troubled debt restructurings, post-modification outstanding recorded investment | $ 12 | |
Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Troubled debt restructurings, number of loans | contract | 2 | |
Troubled debt restructurings, pre-modification outstanding recorded investment | $ 14,993 | |
Troubled debt restructurings, post-modification outstanding recorded investment | $ 14,188 |
Fair Value - Fair Value Assets
Fair Value - Fair Value Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available for sale securities: | ||
Available for sale securities, at fair value | $ 461,115 | $ 287,663 |
Fair Value, Measurements, Recurring [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 461,115 | 287,663 |
Fair Value, Measurements, Recurring [Member] | Loan Customer Counterparty [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 13,510 | 4,829 |
Derivative financial instruments: | ||
Derivative financial instruments, liabilities at fair value | 240 | |
Fair Value, Measurements, Recurring [Member] | Financial Institution Counterparty [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 240 | |
Derivative financial instruments: | ||
Derivative financial instruments, liabilities at fair value | 13,510 | 4,829 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Lock Commitments [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 305 | |
Fair Value, Measurements, Recurring [Member] | Forward Mortgage-Backed Securities Trades [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 3 | |
Derivative financial instruments: | ||
Derivative financial instruments, liabilities at fair value | 83 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 461,115 | 287,663 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Loan Customer Counterparty [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 13,510 | 4,829 |
Derivative financial instruments: | ||
Derivative financial instruments, liabilities at fair value | 240 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Financial Institution Counterparty [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 240 | |
Derivative financial instruments: | ||
Derivative financial instruments, liabilities at fair value | 13,510 | 4,829 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Lock Commitments [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 305 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Forward Mortgage-Backed Securities Trades [Member] | ||
Derivative financial instruments: | ||
Derivative financial instruments, assets at fair value | 3 | |
Derivative financial instruments: | ||
Derivative financial instruments, liabilities at fair value | 83 | |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 418,188 | 235,773 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Obligations [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 418,188 | 235,773 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 42,927 | 51,419 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed Securities [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | $ 42,927 | 51,419 |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | 471 | |
Fair Value, Measurements, Recurring [Member] | States and Political Subdivisions [Member] | Level 2 [Member] | ||
Available for sale securities: | ||
Available for sale securities, at fair value | $ 471 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | ||
Other real estate, additions | $ 7.4 | $ 8.2 |
Real estate owned outstanding | 6.2 | 6.9 |
Additions to impaired loans | 8.9 | 26.3 |
Impaired loans outstanding | $ 8.9 | $ 13 |
Fair Value - Summary of Carryin
Fair Value - Summary of Carrying and Fair Value Information of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 1,031,193 | $ 573,589 |
Federal funds sold | 56,469 | 519 |
Held to maturity securities | 7,145,837 | 8,303,851 |
Loans held for sale | 51,694 | 80,959 |
Loans held for investment | 18,013,333 | 17,211,625 |
Other real estate owned | 11,548 | 6,936 |
Liabilities | ||
Noninterest-bearing | 8,998,328 | 7,763,894 |
Interest-bearing | 17,460,878 | 16,435,838 |
Other borrowings | 2,570 | 1,303,730 |
Securities sold under repurchase agreements | 380,274 | 377,294 |
Subordinated notes | 125,146 | 125,804 |
Carrying Amount [Member] | ||
Assets | ||
Cash and due from banks | 1,031,193 | 573,589 |
Federal funds sold | 56,469 | 519 |
Held to maturity securities | 6,970,380 | 8,282,393 |
Loans held for sale | 51,694 | 80,959 |
Loans held for investment, net of allowance | 17,689,698 | 17,124,156 |
Other real estate owned | 11,548 | 6,936 |
Liabilities | ||
Noninterest-bearing | 8,998,328 | 7,763,894 |
Interest-bearing | 17,460,878 | 16,435,838 |
Other borrowings | 2,570 | 1,303,730 |
Securities sold under repurchase agreements | 380,274 | 377,294 |
Subordinated notes | 125,146 | 125,804 |
Carrying Amount [Member] | Warehouse Purchase Program [Member] | ||
Assets | ||
Loans held for investment | 2,730,614 | 1,552,762 |
Estimated Fair Value [Member] | ||
Assets | ||
Cash and due from banks | 1,031,193 | 573,589 |
Federal funds sold | 56,469 | 519 |
Held to maturity securities | 7,145,837 | 8,303,851 |
Loans held for sale | 51,694 | 80,959 |
Loans held for investment, net of allowance | 17,704,208 | 17,045,523 |
Other real estate owned | 11,548 | 6,936 |
Liabilities | ||
Noninterest-bearing | 8,998,328 | 7,763,894 |
Interest-bearing | 17,485,431 | 16,437,453 |
Other borrowings | 2,782 | 1,303,941 |
Securities sold under repurchase agreements | 380,297 | 377,302 |
Subordinated notes | 125,586 | 125,743 |
Estimated Fair Value [Member] | Level 1 [Member] | ||
Assets | ||
Cash and due from banks | 1,031,193 | 573,589 |
Federal funds sold | 56,469 | 519 |
Estimated Fair Value [Member] | Level 2 [Member] | ||
Assets | ||
Held to maturity securities | 7,145,837 | 8,303,851 |
Loans held for sale | 51,694 | 80,959 |
Other real estate owned | 11,548 | 6,936 |
Liabilities | ||
Noninterest-bearing | 8,998,328 | 7,763,894 |
Interest-bearing | 17,485,431 | 16,437,453 |
Other borrowings | 2,782 | 1,303,941 |
Securities sold under repurchase agreements | 380,297 | 377,302 |
Subordinated notes | 125,586 | 125,743 |
Estimated Fair Value [Member] | Level 3 [Member] | ||
Assets | ||
Loans held for investment, net of allowance | 17,704,208 | 17,045,523 |
Estimated Fair Value [Member] | Warehouse Purchase Program [Member] | ||
Assets | ||
Loans held for investment | 2,730,614 | 1,552,762 |
Estimated Fair Value [Member] | Warehouse Purchase Program [Member] | Level 2 [Member] | ||
Assets | ||
Loans held for investment | $ 2,730,614 | $ 1,552,762 |
Goodwill and Core Deposit Int_3
Goodwill and Core Deposit Intangibles - Goodwill and Core Deposit Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Goodwill, Beginning balance | $ 3,223,671 | $ 1,900,845 | $ 1,900,845 | ||
Goodwill, LegacyTexas Merger | 1,322,826 | ||||
Goodwill, Measurement period adjustment of LegacyTexas Merger | 8,021 | ||||
Goodwill, Ending balance | $ 3,231,692 | 3,231,692 | 3,223,671 | ||
Core Deposit Intangibles, Beginning balance | 86,404 | 32,883 | 32,883 | ||
Core Deposit Intangibles, Amortization | (3,270) | $ (1,248) | (9,926) | $ (3,832) | (6,537) |
Core Deposit Intangibles, LegacyTexas Merger | 60,058 | ||||
Core Deposit Intangibles, Ending balance | $ 76,478 | $ 76,478 | $ 86,404 |
Goodwill and Core Deposit Int_4
Goodwill and Core Deposit Intangibles - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | |||||
Impairment recorded on goodwill and core deposit intangibles | $ 0 | ||||
Amortization expense related to intangible assets | $ 3,270,000 | $ 1,248,000 | $ 9,926,000 | $ 3,832,000 | $ 6,537,000 |
Minimum [Member] | |||||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||||
Finite-lived intangible assets, useful life | 10 years | ||||
Maximum [Member] | |||||
Schedule Of Intangible Assets And Goodwill [Line Items] | |||||
Finite-lived intangible assets, useful life | 15 years |
Goodwill and Core Deposit Int_5
Goodwill and Core Deposit Intangibles - Estimated Aggregate Future Amortization Expense for Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Remaining 2020 | $ 3,243 | ||
2021 | 11,551 | ||
2022 | 10,336 | ||
2023 | 9,360 | ||
2024 | 8,699 | ||
Thereafter | 33,289 | ||
Total | $ 76,478 | $ 86,404 | $ 32,883 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 35,054 | $ 21,106 | $ 79,245 | $ 63,405 | |
Increase (decrease) in income tax expense | $ 13,900 | $ 15,800 | |||
Increase (decrease) in income tax expense, Percentage | 66.10% | 25.00% | |||
Income taxes receivable, net operating loss, CARES Act. | $ 20,100 | ||||
Effective income tax rate | 21.20% | 20.50% | 16.80% | 20.50% | |
Effective income tax rate reconciliation, at federal statutory income tax rate, percent | 21.00% | 35.00% | |||
Decrease in deferred tax asset | $ 31,900 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Planshares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Planshares | Sep. 30, 2019USD ($) | Dec. 31, 2012shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock-based employee compensation plans | Plan | 2 | 2 | |||
Total unrecognized compensation expense related to stock-based compensation arrangements | $ | $ 8.9 | $ 8.9 | |||
Weighted-average period of cost expected to be recognized | 1 year 10 months 24 days | ||||
Number of shares outstanding | 0 | 0 | |||
Restricted Stock [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ | $ 3.2 | $ 2.5 | $ 9.5 | $ 7.6 | |
2020 Stock Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common shares authorized for issuance | 2,500,000 | 2,500,000 | |||
Number of restricted shares granted | 12,500 | ||||
2012 Stock Incentive Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common shares authorized for issuance | 1,250,000 | ||||
Number of restricted shares granted | 489,312 | ||||
Shares issued | 370,313 |
Contractual Obligations and O_3
Contractual Obligations and Off-Balance Sheet Items - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2019 | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||||||
Subordinated notes | $ 125,146 | $ 125,146 | $ 125,804 | |||
Operating lease, right-of-use asset | 54,000 | 54,000 | ||||
Operating lease, liability | $ 54,000 | $ 54,000 | ||||
Operating lease, weighted average remaining lease term | 7 years 4 months 24 days | 7 years 4 months 24 days | ||||
Operating lease, weighted average discount rate, percent | 2.34% | 2.34% | ||||
Operating lease, payments | $ 3,300 | $ 1,400 | $ 10,500 | $ 4,200 | ||
Right-of-Use asset obtained in exchange for operating lease liability | 5,600 | |||||
Allowance for credit losses on off-balance sheet credit exposures | $ 29,947 | $ 29,947 | $ 29,947 | $ 5,599 | ||
Minimum [Member] | ||||||
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||||||
Lessee operating lease remaining lease term | 1 year | 1 year | ||||
Maximum [Member] | ||||||
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||||||
Lessee operating lease remaining lease term | 18 years | 18 years | ||||
Subordinated Notes Payable [Member] | ||||||
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||||||
Interest payable | $ 1,100 | $ 1,100 | ||||
Federal Home Loan Bank Advance And Notes Payable [Member] | ||||||
Contractual Obligations And Off Balance Sheet Items [Line Items] | ||||||
Interest payable | $ 205 | $ 205 |
Contractual Obligations and O_4
Contractual Obligations and Off-Balance Sheet Items - Contractual Obligations and Other Commitments (Details) - Lease Total [Member] $ in Thousands | Sep. 30, 2020USD ($) |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | $ 127,266 |
More than 1 year but less than 3 years | 1,067 |
3 years or more but less than 5 years | 366 |
5 years or more | 18 |
Total | 128,717 |
Subordinated Notes Payable [Member] | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | 126,292 |
Total | 126,292 |
Federal Home Loan Bank Advance And Notes Payable [Member] | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | 974 |
More than 1 year but less than 3 years | 1,067 |
3 years or more but less than 5 years | 366 |
5 years or more | 18 |
Total | $ 2,425 |
Contractual Obligations and O_5
Contractual Obligations and Off-Balance Sheet Items - Future Undiscounted Cash Payments Associated with its Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Remaining 2020 | $ 2,637 | |
2021 | 10,196 | $ 10,137 |
2022 | 9,671 | 9,169 |
2023 | 8,922 | 8,641 |
2024 | 8,042 | 7,998 |
2025 | 7,651 | 7,119 |
Thereafter | 19,383 | 24,996 |
Total undiscounted lease payments | $ 66,502 | $ 68,060 |
Contractual Obligations and O_6
Contractual Obligations and Off-Balance Sheet Items - Summary of Non-Cancelable Future Operating Lease Commitments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 | $ 10,196 | $ 10,137 |
2021 | 9,671 | 9,169 |
2022 | 8,922 | 8,641 |
2023 | 8,042 | 7,998 |
2024 | 7,651 | 7,119 |
Thereafter | 19,383 | 24,996 |
Total undiscounted lease payments | $ 66,502 | $ 68,060 |
Contractual Obligations and O_7
Contractual Obligations and Off-Balance Sheet Items - Summary of Commitments Associated with Outstanding Standby Letters of Credit and Commitments to Extend Credit (Details) - Guarantee Obligations [Member] $ in Thousands | Sep. 30, 2020USD ($) |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | $ 2,651,476 |
More than 1 year but less than 3 years | 858,697 |
3 years or more but less than 5 years | 344,093 |
5 years or more | 1,245,988 |
Total | 5,100,254 |
Unused capacity on Warehouse Purchase Program loans [Member] | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | 803,386 |
Total | 803,386 |
Commitments to Extend Credit [Member] | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | 1,743,194 |
More than 1 year but less than 3 years | 852,081 |
3 years or more but less than 5 years | 342,756 |
5 years or more | 1,245,988 |
Total | 4,184,019 |
Standby Letters of Credit [Member] | |
Contractual Obligations And Off Balance Sheet Items [Line Items] | |
1 year or less | 104,896 |
More than 1 year but less than 3 years | 6,616 |
3 years or more but less than 5 years | 1,337 |
5 years or more | 0 |
Total | $ 112,849 |
Other Comprehensive Income - Ta
Other Comprehensive Income - Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Equity [Abstract] | ||||
Change in unrealized gain (loss) during period, before tax amount | $ 1,325 | $ (1,563) | $ (1,204) | $ (344) |
Change in unrealized gain (loss) during period, tax effect | (278) | 328 | 253 | 72 |
Change in unrealized gain (loss) during period, net of tax amount | 1,047 | (1,235) | (951) | (272) |
Total securities available for sale, before tax amount | 1,325 | (1,563) | (1,204) | (344) |
Total securities available for sale, tax effect | (278) | 328 | 253 | 72 |
Total securities available for sale, net of tax amount | 1,047 | (1,235) | (951) | (272) |
Total other comprehensive income (loss), before tax amount | 1,325 | (1,563) | (1,204) | (344) |
Total other comprehensive income (loss), tax effect | (278) | 328 | 253 | 72 |
Other comprehensive income (loss), net of tax | $ 1,047 | $ (1,235) | $ (951) | $ (272) |
Other Comprehensive Income - Ac
Other Comprehensive Income - Activity in Accumulated Other Comprehensive Income Associated with Securities Available for Sale, Net of Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Beginning balance, accumulated other comprehensive income | $ 602 | $ 310 | ||
Other comprehensive loss | $ 1,047 | $ (1,235) | (951) | (272) |
Ending balance, accumulated other comprehensive income | (349) | 38 | (349) | 38 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | ||||
Beginning balance, accumulated other comprehensive income | 602 | 310 | ||
Other comprehensive loss | (951) | (272) | ||
Ending balance, accumulated other comprehensive income | $ (349) | $ 38 | $ (349) | $ 38 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Schedule of Notional Balances and Fair Value of Derivative Positions (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Interest Rate Lock Commitments [Member] | ||
Derivatives Fair Value [Line Items] | ||
Outstanding Notional Balance | $ 9,438 | |
Derivative financial instruments, assets at fair value | 305 | |
Forward Mortgage-Backed Securities Trades [Member] | ||
Derivatives Fair Value [Line Items] | ||
Outstanding Notional Balance | 40,750 | |
Derivative financial instruments, assets at fair value | 3 | |
Derivative financial instruments, liabilities at fair value | 83 | |
Commercial Loan Interest Rate Swaps and Caps [Member] | Loan Customer Counterparty [Member] | ||
Derivatives Fair Value [Line Items] | ||
Outstanding Notional Balance | $ 224,928 | 231,345 |
Derivative financial instruments, assets at fair value | 13,510 | 4,829 |
Derivative financial instruments, liabilities at fair value | 240 | |
Commercial Loan Interest Rate Swaps and Caps [Member] | Financial Institution Counterparty [Member] | ||
Derivatives Fair Value [Line Items] | ||
Outstanding Notional Balance | 224,928 | 231,345 |
Derivative financial instruments, assets at fair value | 240 | |
Derivative financial instruments, liabilities at fair value | $ 13,510 | $ 4,829 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Weighted Average Received and Paid Interest Rates for Interest Rate Swaps Outstanding (Details) - Commercial Loan Interest Rate Swaps and Caps [Member] - Loan Customer Counterparty [Member] | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Weighted-Average Interest Rate Received | 0.0058 | 0.0342 |
Weighted-Average Interest Rate Paid | 0.0283 | 0.0286 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Additional Information (Details) - Interest Rate Swap - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Credit exposure | $ 13,500,000 | $ 4,800,000 |
Cash collateral pledged | 15,300,000 | $ 9,300,000 |
Financial Institution Counterparty [Member] | ||
Derivative [Line Items] | ||
Credit exposure | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Income (Loss) from Derivatives (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Interest Rate Lock Commitments [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Derivatives not designated as hedging instruments | $ (305) |
Forward Mortgage-Backed Securities Trades [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Derivatives not designated as hedging instruments | $ (2,398) |
Acquisitions (Summary) - Additi
Acquisitions (Summary) - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Minimum [Member] | |
Business Acquisition [Line Items] | |
Acquired finite-lived intangible assets, weighted average useful life | 10 years |
Maximum [Member] | |
Business Acquisition [Line Items] | |
Acquired finite-lived intangible assets, weighted average useful life | 15 years |
Acquisitions (2019 Acquisitions
Acquisitions (2019 Acquisitions) - Additional Information (Details) $ / shares in Units, $ in Thousands | Nov. 01, 2019USD ($)LocationCity$ / sharesshares | Sep. 30, 2020USD ($) | Sep. 30, 2020USD ($)shares | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||||
Total assets | $ 33,197,599 | $ 33,197,599 | $ 32,185,708 | |||||
Total deposits | 26,459,206 | 26,459,206 | 24,199,732 | |||||
Shareholders’ equity | 6,034,877 | 6,034,877 | 5,970,835 | $ 5,948,122 | $ 4,126,806 | $ 4,127,895 | $ 4,052,824 | |
Goodwill | 3,231,692 | 3,231,692 | 3,223,671 | $ 1,900,845 | ||||
Finite-lived intangible assets acquired | 60,058 | |||||||
Merger-related expenses | $ 8,018 | |||||||
Legacy Texas [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total assets | 10,500,000 | |||||||
Total gross loans | 9,100,000 | |||||||
Total deposits | 6,500,000 | |||||||
Shareholders’ equity | $ 1,200,000 | |||||||
Legacy Texas [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition, equity interest issued or issuable, number of shares | shares | 26,228,148 | 26,228,148 | ||||||
Business acquisition, closing share price | $ / shares | $ 69.02 | |||||||
Payments to acquire businesses in cash | $ 318,000 | $ 318,018 | ||||||
Payments to acquire businesses in cash, cash | 308,600 | |||||||
Payments to acquire businesses in cash, cash for taxes withheld | $ 9,400 | |||||||
Goodwill | 1,330,847 | 1,330,847 | ||||||
Finite-lived intangible assets acquired | 52,100 | |||||||
Merger-related expenses | $ 0 | $ 8,000 | $ 46,400 | |||||
Legacy Texas [Member] | North Texas [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of bank operating locations | Location | 42 | |||||||
Number of bank operating cities | City | 19 |
Acquisitions - Amounts Recorded
Acquisitions - Amounts Recorded on Consolidated Balance Sheet on Acquisition Date (Details) - USD ($) $ in Thousands | Nov. 01, 2019 | Sep. 30, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value of liabilities assumed: | ||||
Goodwill | $ 3,231,692 | $ 3,223,671 | $ 1,900,845 | |
Legacy Texas [Member] | ||||
Fair value of consideration paid: | ||||
Common stock issued (26,228,148 shares) | 1,810,267 | |||
Payments to acquire businesses in cash | $ 318,000 | 318,018 | ||
Total consideration paid | 2,128,285 | |||
Fair value of assets acquired: | ||||
Cash and due from banks | 228,649 | |||
Securities held to maturity | 472,933 | |||
Loans held for sale | 60,818 | |||
Loans held for investment | 6,771,080 | |||
Loans held for investment - Warehouse Purchase Program | 1,693,049 | |||
Bank premises and equipment | 66,048 | |||
Other real estate owned | 4,876 | |||
Core deposit intangibles | 60,058 | |||
Federal Home Loan Bank stock | 117,826 | |||
Bank owned life insurance and other assets | 235,467 | |||
Total assets acquired | 9,710,804 | |||
Fair value of liabilities assumed: | ||||
Deposits | 6,434,732 | |||
Other borrowings | 2,078,682 | |||
Securities sold under repurchase agreements | 57,670 | |||
Trust preferred securities | 15,376 | |||
Subordinated notes | 125,950 | |||
Other liabilities | 200,956 | |||
Total liabilities assumed | 8,913,366 | |||
Fair value of net assets acquired | 797,438 | |||
Goodwill | 1,330,847 | |||
ASC 805 [Member] | Legacy Texas [Member] | ||||
Fair value of consideration paid: | ||||
Common stock issued (26,228,148 shares) | 1,810,267 | |||
Payments to acquire businesses in cash | 318,018 | |||
Total consideration paid | 2,128,285 | |||
Fair value of assets acquired: | ||||
Cash and due from banks | 228,649 | |||
Securities held to maturity | 472,933 | |||
Loans held for sale | 60,818 | |||
Loans held for investment | 6,771,080 | |||
Loans held for investment - Warehouse Purchase Program | 1,693,049 | |||
Bank premises and equipment | 67,347 | |||
Other real estate owned | 4,876 | |||
Core deposit intangibles | 60,058 | |||
Federal Home Loan Bank stock | 117,939 | |||
Bank owned life insurance and other assets | 242,592 | |||
Total assets acquired | 9,719,341 | |||
Fair value of liabilities assumed: | ||||
Deposits | 6,434,732 | |||
Other borrowings | 2,078,682 | |||
Securities sold under repurchase agreements | 57,670 | |||
Trust preferred securities | 15,376 | |||
Subordinated notes | 125,950 | |||
Other liabilities | 201,472 | |||
Total liabilities assumed | 8,913,882 | |||
Fair value of net assets acquired | 805,459 | |||
Goodwill | $ 1,322,826 | |||
Measurement Period Adjustments [Member] | ASC 805 [Member] | Legacy Texas [Member] | ||||
Fair value of assets acquired: | ||||
Bank premises and equipment | (1,299) | |||
Federal Home Loan Bank stock | (113) | |||
Bank owned life insurance and other assets | (7,125) | |||
Total assets acquired | (8,537) | |||
Fair value of liabilities assumed: | ||||
Other liabilities | (516) | |||
Total liabilities assumed | (516) | |||
Fair value of net assets acquired | (8,021) | |||
Goodwill | $ 8,021 |
Acquisitions - Amounts Record_2
Acquisitions - Amounts Recorded on Consolidated Balance Sheet on Acquisition Date (Parenthetical) (Details) - shares | Nov. 01, 2019 | Sep. 30, 2020 |
Legacy Texas [Member] | ||
Business Acquisition [Line Items] | ||
Business acquisition, equity interest issued or issuable, number of shares | 26,228,148 | 26,228,148 |
Acquisitions - Summary of Pro F
Acquisitions - Summary of Pro Forma Information (Details) - Legacy Texas [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Changes In Accretable Yield for PCI And Non PCI Loans [Line Items] | ||
Net interest income | $ 259,730 | $ 768,548 |
Net income | $ 140,400 | $ 367,677 |
Basic earnings per share | $ 1.47 | $ 3.85 |
Diluted earnings per share | $ 1.47 | $ 3.85 |