Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 13, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | TEXAS CAPITAL BANCSHARES INC/TX | ||
Entity Central Index Key | 1,077,428 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus (Q1,Q2,Q3,FY) | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 50,239,639 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 4,567,174,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 214,191 | $ 178,010 |
Interest-bearing deposits in other banks | 2,815,684 | 2,697,581 |
Federal funds sold and securities purchased under resale agreements | 50,190 | 30,000 |
Investment securities | 120,216 | 23,511 |
Loans held for sale ($1,969.2 million and $1,007.7 million at December 2018 and 2017, respectively, at fair value) | 1,969,474 | 1,011,004 |
Loans held for investment, mortgage finance | 5,877,524 | 5,308,160 |
Loans held for investment (net of unearned income) | 16,690,550 | 15,366,252 |
Less: Allowance for loan losses | (191,522) | (184,655) |
Loans held for investment, net | 22,376,552 | 20,489,757 |
Mortgage servicing rights, net | 42,474 | 85,327 |
Premises and equipment, net | 23,802 | 25,176 |
Accrued interest receivable and other assets | 626,614 | 516,239 |
Goodwill and intangible assets, net | 18,570 | 19,040 |
Total assets | 28,257,767 | 25,075,645 |
Deposits: | ||
Non-interest-bearing | 7,317,161 | 7,812,660 |
Interest-bearing | 13,288,952 | 11,310,520 |
Total deposits | 20,606,113 | 19,123,180 |
Accrued interest payable | 20,675 | 7,680 |
Other liabilities | 194,238 | 182,212 |
Federal funds purchased and repurchase agreements | 641,174 | 365,040 |
Other borrowings | 3,900,000 | 2,800,000 |
Subordinated notes, net | 281,767 | 281,406 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Total liabilities | 25,757,373 | 22,872,924 |
Comprehensive income: | ||
Preferred stock, $.01 par value, $1,000 liquidation value: Authorized shares - 10,000,000; Issued shares - 6,000,000 shares issued at December 31, 2018 and 2017 | 150,000 | 150,000 |
Common stock, $.01 par value: Authorized shares - 100,000,000; Issued shares - 45,735,424 and 41,036,787 at December 31, 2018 and 2017, respectively | 502 | 496 |
Additional paid-in capital | 967,890 | 961,305 |
Retained earnings | 1,381,492 | 1,090,500 |
Treasury stock (shares at cost: 417 at December 31, 2018 and 2017) | (8) | (8) |
Accumulated other comprehensive income, net of taxes | 518 | 428 |
Total stockholders’ equity | 2,500,394 | 2,202,721 |
Total liabilities and stockholders’ equity | $ 28,257,767 | $ 25,075,645 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Loans held for sale ($1,007.7 million and $968.9 million at December 2017 and 2016, respectively, at fair value) | $ 1,969,200,000 | $ 1,007,700,000 |
Preferred stock, Liquidation value | $ 1,000 | $ 1,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 6,000,000 | 6,000,000 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 50,201,127 | 49,643,761 |
Treasury stock, shares | 417 | 417 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income | |||
Interest and fees on loans | $ 1,124,970 | $ 846,292 | $ 684,582 |
Investment securities | 2,834 | 1,066 | 967 |
Federal funds sold and securities purchased under resale agreements | 3,792 | 2,542 | 1,547 |
Interest-bearing deposits in other banks | 32,597 | 29,399 | 16,312 |
Total interest income | 1,164,193 | 879,299 | 703,408 |
Interest expense | |||
Deposits | 185,116 | 79,886 | 37,175 |
Federal funds purchased | 6,531 | 2,592 | 518 |
Other borrowings | 36,207 | 15,137 | 6,128 |
Subordinated notes | 16,764 | 16,764 | 16,764 |
Trust preferred subordinated debentures | 4,715 | 3,592 | 3,009 |
Total interest expense | 249,333 | 117,971 | 63,594 |
Net interest income | 914,860 | 761,328 | 639,814 |
Provision for credit losses | 87,000 | 44,000 | 77,000 |
Net interest income after provision for credit losses | 827,860 | 717,328 | 562,814 |
Non-interest income | |||
Service charges on deposit accounts | 12,787 | 12,432 | 10,341 |
Wealth management and trust fee income | 8,148 | 6,153 | 4,268 |
Brokered loan fees | 22,532 | 23,331 | 25,339 |
Servicing income | 18,307 | 15,657 | 1,715 |
Swap fees | 5,625 | 3,990 | 2,866 |
Gain/(Loss) on sale of loans held for sale | (15,934) | (2,387) | 2,547 |
Other | 26,559 | 15,080 | 13,704 |
Total non-interest income | 78,024 | 74,256 | 60,780 |
Non-interest expense | |||
Salaries and employee benefits | 291,768 | 264,231 | 228,985 |
Net occupancy expense | 30,342 | 25,811 | 23,221 |
Marketing | 39,335 | 26,787 | 17,303 |
Legal and professional | 42,990 | 29,731 | 23,326 |
Communications and technology | 30,056 | 31,004 | 25,562 |
FDIC insurance assessment | 24,307 | 23,510 | 24,440 |
Servicing related expenses | 14,934 | 15,506 | 1,703 |
Allowance and other carrying costs for other real estate owned | 474 | 6,437 | 824 |
Other | 50,890 | 42,859 | 37,033 |
Total non-interest expense | 525,096 | 465,876 | 382,397 |
Income before income taxes | 380,788 | 325,708 | 241,197 |
Income tax expense | 79,964 | 128,645 | 86,078 |
Net income | 300,824 | 197,063 | 155,119 |
Preferred stock dividends | (9,750) | (9,750) | (9,750) |
Net income available to common stockholders | 291,074 | 187,313 | 145,369 |
Other comprehensive income (loss) | |||
Change in unrealized gain (loss) on available-for-sale debt securities arising during period, before tax | 7 | 19 | (467) |
Income tax expense (benefit) related to unrealized loss on available-for-sale debt securities | 1 | 6 | (164) |
Other comprehensive income (loss), net of tax | 6 | 13 | (303) |
Comprehensive income | $ 300,830 | $ 197,076 | $ 154,816 |
Basic earnings per common share | |||
Basic earnings per common share | $ 5.83 | $ 3.78 | $ 3.14 |
Diluted earnings per common share | |||
Diluted earnings per common share | $ 5.79 | $ 3.73 | $ 3.11 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income |
Beginning balance - Shares at Dec. 31, 2015 | 6,000,000 | 45,874,224 | 417 | ||||
Beginning balance - Amount at Dec. 31, 2015 | $ 1,623,533 | $ 150,000 | $ 459 | $ 714,546 | $ 757,818 | $ (8) | $ 718 |
Comprehensive income: | |||||||
Net income | 155,119 | 155,119 | |||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | (303) | (303) | |||||
Comprehensive income | 154,816 | ||||||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 1,879 | 1,879 | |||||
Stock-based compensation expense recognized in earnings | 5,093 | 5,093 | |||||
Preferred stock dividends | (9,750) | (9,750) | |||||
Issuance of stock related to stock-based awards - Shares | 172,459 | ||||||
Issuance of stock related to stock-based awards - Amount | (2,481) | $ 1 | (2,482) | ||||
Issuance of stock - Shares | 3,450,000 | ||||||
Issuance of stock - Amount | 236,467 | $ 35 | 236,432 | ||||
Ending balance - Amount at Dec. 31, 2016 | 2,009,557 | $ 150,000 | $ 495 | 955,468 | 903,187 | $ (8) | 415 |
Ending balance - Shares at Dec. 31, 2016 | 6,000,000 | 49,504,079 | 417 | ||||
Comprehensive income: | |||||||
Stock Issued During Period, Shares, Other | 7,396 | ||||||
Stock Issued During Period, Value, Other | 0 | $ 0 | 0 | ||||
Net income | 197,063 | 197,063 | |||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | 13 | 13 | |||||
Comprehensive income | 197,076 | ||||||
Stock-based compensation expense recognized in earnings | 8,079 | 8,079 | |||||
Preferred stock dividends | (9,750) | (9,750) | |||||
Issuance of stock related to stock-based awards - Shares | 106,087 | ||||||
Issuance of stock related to stock-based awards - Amount | (2,241) | $ 1 | (2,242) | ||||
Ending balance - Amount at Dec. 31, 2017 | 2,202,721 | $ 150,000 | $ 496 | 961,305 | 1,090,500 | $ (8) | 428 |
Ending balance - Shares at Dec. 31, 2017 | 6,000,000 | 49,643,761 | 417 | ||||
Comprehensive income: | |||||||
Stock Issued During Period, Shares, Other | 33,595 | ||||||
Stock Issued During Period, Value, Other | 0 | $ 0 | 0 | ||||
Net income | 300,824 | 300,824 | |||||
Change in unrealized gain (loss) on available-for-sale securities, net of taxes | 6 | 6 | |||||
Comprehensive income | 300,830 | ||||||
Stock-based compensation expense recognized in earnings | 8,973 | 8,973 | |||||
Preferred stock dividends | (9,750) | (9,750) | |||||
Issuance of stock related to stock-based awards - Shares | 120,242 | ||||||
Issuance of stock related to stock-based awards - Amount | (2,382) | $ 1 | (2,383) | ||||
Ending balance - Amount at Dec. 31, 2018 | $ 2,500,394 | $ 150,000 | $ 502 | 967,890 | $ 1,381,492 | $ (8) | $ 518 |
Ending balance - Shares at Dec. 31, 2018 | 6,000,000 | 50,201,127 | 417 | ||||
Comprehensive income: | |||||||
Stock Issued During Period, Shares, Other | 437,124 | ||||||
Stock Issued During Period, Value, Other | $ 5 | $ (5) |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Income tax expense (benefit) related to unrealized loss on available-for-sale securities | $ 1 | $ 6 | $ (164) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 300,824 | $ 197,063 | $ 155,119 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for credit losses | 87,000 | 44,000 | 77,000 |
Deferred tax expense (benefit) | (6,400) | 31,276 | (2,946) |
Depreciation and amortization | 32,022 | 27,871 | 21,814 |
Net (gain)/loss on sale of loans held for sale | 15,934 | 2,387 | (2,547) |
Increase (decrease) in valuation allowance on mortgage servicing rights | (2,823) | 2,823 | 0 |
Stock-based compensation expense | 16,938 | 22,019 | 13,578 |
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | (2,013) |
Purchases and originations of loans held for sale | (6,753,709) | (5,556,964) | (3,327,482) |
Proceeds from sales and repayments of loans held for sale | 5,759,067 | 5,457,117 | 2,405,592 |
Technology write-off | 0 | 5,285 | 0 |
Other real estate owned write-down | 0 | 6,111 | 0 |
Changes in operating assets and liabilities: | |||
Accrued interest receivable and other assets | (123,542) | (117,116) | (61,832) |
Accrued interest payable and other liabilities | (5,026) | 10,289 | (2,576) |
Net cash provided by (used in) operating activities | (679,715) | 132,161 | (726,293) |
Investing activities | |||
Purchases of available-for-sale investment securities | (101,558) | (97,776) | (1,760) |
Maturities and calls of available-for-sale securities | 0 | 94,775 | 555 |
Principal payments received on available-for-sale securities | 3,426 | 4,383 | 5,856 |
Originations of mortgage finance loans | (99,151,237) | (86,931,566) | (100,574,326) |
Proceeds from pay-offs of mortgage finance loans | 98,581,873 | 86,120,744 | 101,043,264 |
Proceeds from sale of mortgage servicing rights | (70,824) | 0 | 0 |
Net increase in loans held for investment, excluding mortgage finance loans | (1,402,068) | (2,395,063) | (1,321,733) |
Purchase of premises and equipment, net | (7,651) | (12,265) | (2,176) |
Proceeds from sale of other real estate owned, net | 13,645 | 1,023 | 110 |
Net cash used in investing activities | (1,992,746) | (3,215,745) | (850,210) |
Financing activities | |||
Net increase in deposits | 1,482,933 | 2,106,349 | 1,932,212 |
Costs from issuance of stock related to stock-based awards and warrants | (2,382) | (2,241) | (2,481) |
Net proceeds from issuance of common stock | 0 | 0 | 236,467 |
Preferred dividends paid | (9,750) | (9,750) | (9,750) |
Net increase in other borrowings | 1,100,000 | 800,000 | 500,000 |
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | 2,013 |
Net increase (decrease) in Federal funds purchased and repurchase agreements | 276,134 | 255,465 | (33,476) |
Net cash provided by financing activities | 2,846,935 | 3,149,823 | 2,624,985 |
Net increase in cash and cash equivalents | 174,474 | 66,239 | 1,048,482 |
Cash and cash equivalents at beginning of period | 2,905,591 | 2,839,352 | 1,790,870 |
Cash and cash equivalents at end of period | 3,080,065 | 2,905,591 | 2,839,352 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the period for interest | 236,338 | 115,789 | 63,193 |
Cash paid during the period for income taxes | 75,405 | 103,871 | 88,262 |
Transfers from loans/leases to other real estate owned and other repossessed assets | $ 0 | $ 0 | $ 18,822 |
Operations and Summary of Signi
Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations and Summary of Significant Accounting Policies | Operations and Summary of Significant Accounting Policies Organization and Nature of Business Texas Capital Bancshares, Inc. (the "Company”), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the "Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional or national clientele of commercial borrowers. We are primarily a secured lender, with the majority of our loans held for investment, excluding mortgage finance loans and other national lines of business, being made to businesses headquartered or with operations in Texas. Our national lines of business provide specialized leading products to businesses throughout the United States. Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States ("GAAP") and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change. Basic and Diluted Earnings Per Common Share Basic earnings per common share is based on net income available to common stockholders divided by the weighted-average number of common shares outstanding during the period excluding non-vested stock. Diluted earnings per common share include the dilutive effect of stock options and non-vested stock awards granted using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 2 — Earnings Per Share. Accumulated Other Comprehensive Income Unrealized gains or losses on our available-for-sale debt securities (after applicable income tax expense or benefit) are included in accumulated other comprehensive income (loss), net ("AOCI"). AOCI is reported in the accompanying consolidated statements of stockholders’ equity and consolidated statements of income and other comprehensive income. GAAP does not permit the adjustment of tax amounts in AOCI for changes in tax rates, the effects become stranded in AOCI. Stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act (the "Tax Act") are reclassified from AOCI to retained earnings in accordance with our early adoption of ASU 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." Cash and Cash Equivalents Cash equivalents include amounts due from banks, interest-bearing deposits in other banks, Federal funds sold and securities purchased under resale agreements. Investment Securities Investment securities include available-for-sale debt securities and equity securities at fair value. Debt Securities Debt securities are classified as trading, available-for-sale or held-to-maturity. Management classifies securities at the time of purchase and re-assesses such designation at each balance sheet date; however, transfers between categories from this re-assessment are rare. Trading Account Debt securities acquired for resale in anticipation of short-term market movements are classified as trading, with realized and unrealized gains and losses recognized in income. To date, we have not had any activity in our trading account. Held-to-Maturity Debt securities are classified as held to maturity when we have the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. Debt securities not classified as held-to-maturity or trading are classified as available-for-sale. Available-for-Sale Available-for-sale debt securities are stated at fair value, with the unrealized gains and losses reported as a separate component of AOCI, net of tax. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion is included in interest income from securities. Realized gains and losses and declines in value judged to be other-than-temporary are included in gain (loss) on sale of securities. The cost of securities sold is based on the specific identification method. All debt securities are available-for-sale as of December 31, 2018 and 2017 . Equity Securities Beginning January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. Equity securities without readily determinable fair values are recorded at cost less any impairment, if any. Loans Loans Held for Sale Through our mortgage correspondent aggregation ("MCA") program, we commit to purchase residential mortgage loans from independent correspondent lenders and deliver those loans into the secondary market via whole loan sales to independent third parties or in securitization transactions to third parties such as Ginnie Mae or to GSEs such as Fannie Mae or Freddie Mac. In some cases, we retain the mortgage servicing rights. Once purchased, these loans are classified as held for sale and are carried at fair value pursuant to our election of the fair value option in accordance with Accounting Standards Codification ("ASC") 825, Financial Instruments . At the commitment date, we enter into a corresponding forward sale commitment with a third party, typically Ginnie Mae or a GSE, to deliver the loans within a specified timeframe. The estimated gain/loss for the entire transaction (from initial purchase commitment to final delivery of loans) is recorded as an asset or liability. The fair value of loans held for sale is derived from observable current market prices, when available, and includes the fair value of the mortgage servicing rights. Adjustments to reflect unrealized gains and losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as gain/(loss) on sale of loans held for sale in the consolidated statements of income and other comprehensive income. Residential mortgage loans held for sale are subject to both credit and interest rate risk. Credit risk is managed through underwriting policies and procedures, including collateral requirements, which are generally accepted by the secondary loan markets. Exposure to interest rate fluctuations is partially managed through forward sales contracts, which set the price for loans that will be delivered in the next 60 to 90 days. Pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not the obligation, to repurchase certain delinquent loans securitized in Ginnie Mae pools, if they meet defined delinquent loan criteria. Once the delinquency criteria have been met, and regardless of whether the repurchase option has been exercised, we account for these loans as if they had been repurchased and recognize the loans and a corresponding liability as held for sale and other liabilities, respectively, in the consolidated balance sheets. If the loans are actually repurchased, the liability is cash settled and the loans continue to be reported as held for sale. As an approved lender, we may collect losses incurred on repurchased loans through a claims process with the government agency. From time to time we hold for sale the guaranteed portion of Small Business Administration 7(a) loans, which are carried at lower of cost or market. Loans Held for Investment Loans held for investment (including financing leases) are stated at the amount of unpaid principal reduced by deferred income (net of costs). Interest on loans is recognized using the simple-interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees, are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. A loan held for investment is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral, less cost to sell. Impaired loans, or portions thereof, are charged off when a confirmed loss exists. Restructured loans are loans on which, due to the borrower’s financial difficulties, we have granted a concession that we would not otherwise consider for borrowers of similar credit quality. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modifications of terms that could potentially qualify as a restructuring include reduction of contractual interest rate, extension of the maturity date at a contractual interest rate lower than the current rate for new debt with similar risk, or a reduction of the face amount of debt, or forgiveness of either principal or accrued interest. A loan continues to qualify as restructured until a consistent payment history or change in borrower’s financial condition has been evidenced, generally no less than twelve months. Assuming that the restructuring agreement specifies an interest rate at the time of the restructuring that is greater than or equal to the rate that we are willing to accept for a new extension of credit with comparable risk, then the loan no longer has to be considered a restructuring if it is in compliance with modified terms in calendar years after the year of the restructure. The accrual of interest on loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Loans held for investment includes legal ownership interests in mortgage loans that we purchase through our mortgage warehouse lending division. The ownership interests are purchased from unaffiliated mortgage originators who are seeking additional funding through sale of the undivided ownership interests to facilitate their ability to originate loans. The mortgage originator has no obligation to offer and we have no obligation to purchase these interests. The originator closes mortgage loans consistent with underwriting standards established by approved investors, and, at the time of the sale to the investor, our ownership interest and that of the originator are delivered by us to the investor selected by the originator and approved by us. We typically purchase up to a 99% ownership interest in each mortgage with the originator owning the remaining percentage. These mortgage ownership interests are generally held by us for a period of less than 30 days and more typically 10-20 days. Because of conditions in agreements with originators designed to reduce transaction risks, under ASC 860, Transfers and Servicing of Financial Assets (“ASC 860”), the ownership interests do not qualify as participating interests. Under ASC 860, the ownership interests are deemed to be loans to the originators and payments we receive from investors are deemed to be payments made by or on behalf of the originator to repay the loan deemed made to the originator. Because we have an actual, legal ownership interest in the underlying residential mortgage loan, these interests are extensions of credit to the originators that are secured by the mortgage loans as collateral. Due to market conditions or events of default by the investor or the originator, we could be required to purchase the remaining interests in the mortgage loans and hold them beyond the expected 10-20 days. Mortgage loans acquired under these conditions would require mark-to-market adjustments to income and could require future allocations of the allowance for loan losses or be subject to charge off in the event the loans become impaired. Mortgage loan interests purchased and disposed of as expected receive no allocation of the allowance for loan losses due to the minimal loss experience with these assets. Allowance for Loan Losses The allowance for loan losses is comprised of general reserves, specific reserves for impaired loans and an additional qualitative reserve, all based on our estimate of losses inherent in the portfolio at the balance sheet date, but not yet identified with specified loans. In order to determine the allowance for loan losses, all loans are assigned a credit grade. Loan commitments graded substandard or worse and greater than $500,000 are specifically reviewed for loss potential. Loans deemed to be impaired, as well as restructured loans and loans formerly reported as restructured, are assigned a specific reserve based on the losses expected to be realized from those loans. For purposes of determining the general reserve, the remainder of the portfolio is segregated by product types to recognize differing risk profiles among portfolio segments, and then further segregated by credit grades. Each credit grade is assigned a risk factor, or reserve allocation percentage. These risk factors are multiplied by the outstanding principal balance of each loan and risk-weighted by product type to calculate a required reserve. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, specifically unfunded loan commitments and letters of credit, and any needed reserve is recorded in other liabilities. Even though portions of the allowance may be allocated to specific loans, the entire allowance is available for any credit that, in management’s judgment, should be charged off. We have several pass credit grades that are assigned to loans based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring. Within our criticized/classified credit grades are special mention, substandard, and doubtful. Special mention loans are those that are currently protected by the sound worth and paying capacity of the borrower, but that are potentially weak and constitute an additional credit risk. These loans have the potential to deteriorate to a substandard grade due to the existence of financial or administrative deficiencies. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Some substandard loans are inappropriately protected by sound worth and paying capacity of the borrower and of the collateral pledged and may be considered impaired. Substandard loans can be accruing or can be on non-accrual depending on the circumstances of the individual loans. Loans classified as doubtful have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable. The possibility of loss is extremely high. All doubtful loans are on non-accrual. The allowance allocation percentages assigned to each credit grade have been developed based primarily on an analysis of our historical loss rates. The level of the allowance reflects management’s continuing evaluation of conditions likely to impact the amount of losses expected to be incurred in the Bank’s loan portfolio. Such conditions include, without limitation, credit quality indicators such as amounts and percentages of loans classified as past due, criticized and non-performing, conditions internal to the Bank such as the skill and experience of lending and credit personnel and effectiveness of credit review processes, the rate of portfolio growth, the extent of hold limits and loan concentrations, such as loans to specific borrowers, loans to groups of affiliated borrowers, loans to borrowers in defined industry groups and loans to borrowers, and collateral, in defined geographic locations. Conditions external to the Bank that may impact incurred losses that are also considered by management in the evaluation of the allowance include the general health of the national economy and regional economies where the Bank operates, international economic conditions, domestic and international political events that may impact the Bank’s loan portfolio, regulatory developments deemed relevant to risk assessment and classification of credits and circumstances that may have negative consequences for industries or specific borrowers where the Bank has exposure. Management’s assessment of the allowance begins with a review of historical credit loss experience as a baseline before consideration of current environmental issues both internal and external to the Bank that might reasonably cause the measure of incurred loss to differ from historical experience. The Bank’s allowance methodology employs a loss migration technique to determine historical loss percentages applicable to all defined credit risk grades. The methodology also calculates historical loss percentages by portfolio segment and computes segment weights as a measure of the relative risk of loans in each segment compared to the entire portfolio. These processes allow for a continuous review of not only absolute historical loss percentages but also an assessment of credit risk grade migration, positive and negative, and changes in portfolio composition as defined by portfolio segment. Management has identified certain measures that are believed to offer guidance as leading, concurrent and trailing indicators respectively of general economic health that in turn are thought to be relevant to the measure of incurred loss in the Bank’s loan portfolio. These together with other internal and external risk elements have been individually quantified and collectively compiled into an aggregate range of adjustment from which management selects a single qualitative factor ("Q Factor"). This Q Factor is added or subtracted from historical loss rates, as relevant, to compute an appropriate reserve based upon actual portfolio composition as defined by portfolio segment and credit risk grade composition. By compiling identified risk elements into a range of possible adjustment and selection by management of a single factor from the range, management minimizes the risk of over-adjusting historical loss rates for changes in multiple contributing elements that may individually be signaling the same change in incurred loss. The specific Q Factor adjustment and application of any management overlay to model calculated segment weights reflects management’s determination that the allowance model is calculating an appropriate level of the allowance in the context of all known loan portfolio quality and concentration issues as well as other environmental factors that are reasonably believed to cause the measure of incurred loss, inclusive of unidentified losses inherent in the current portfolio, to differ from historical experience. Because credit risk grade migration, both positive and negative, can significantly trail triggering events such as change in economic conditions, commodity prices or interest rates or changes in collateral values or changes in regulatory interpretation or application of laws or standards impacting the Bank’s lending activities, management’s interpretation of the collective impact of all such issues on incurred loss guides management’s selection of an appropriate Q Factor adjustment. The additional qualitative reserve component of the allowance that is not derived by the allowance allocation percentages compensates for the uncertainty and complexity in estimating loan and lease losses associated with circumstances or events that are out of the ordinary, not predictable in amount or frequency or not reasonably correlated with either past experience and/or general economic conditions. Examples of such events include natural disasters such as hurricanes and borrower fraud through act or omission in delivery of accurate financial reporting or certification of collateral value. These situations, while not common, do not necessarily correlate well with historical loss trends or general economic conditions. Our methodology used to calculate the allowance considers historical losses, however, the historical loss rates for specific product types or credit risk grades may not fully incorporate the effects of such unpredictable events. The methodology used in the periodic review of the appropriateness of the allowance, which is performed at least quarterly, is designed to be dynamic and responsive to changes in portfolio credit quality. Changes are reflected in the general allowance, in specific reserves as the collectability of classified loans is evaluated with new information and in the additional qualitative reserve. As our portfolio has matured, historical loss ratios have been closely monitored. Our reserve appropriateness relies primarily on our loss history, supplemented by our additional qualitative reserve. The review of the appropriateness of the allowance is performed by executive management and presented to the audit and risk committees of our board of directors for their review. The committees report to the board as part of the board's review on a quarterly basis of the Company's consolidated financial statements. Other Real Estate Owned Other real estate owned (“OREO”), which is included in other assets on the consolidated balance sheet, consists of real estate that has been foreclosed. When foreclosure occurs, the acquired asset is recorded at fair value less selling costs, generally based on appraised value, which may result in partial charge-off of the loan through a charge to the allowance for loan losses, if necessary. Subsequent write-downs required for declines in value are recorded through a valuation allowance, or taken directly to the asset, and are recorded in allowance and other carrying costs for OREO in the consolidated statements of income and other comprehensive income. Gains or losses on sale of OREO are recorded in other non-interest income in the consolidated statements of income and other comprehensive income. Mortgage Servicing Rights, Net Mortgage servicing rights ("MSRs") are created by selling mortgage loans with servicing rights retained. We identify classes of servicing rights based upon the nature of the underlying assumptions used to value the asset along with the risks associated with the underlying asset. Based upon these criteria we have one class of MSRs, residential. MSRs are recognized based on the estimated fair value of the mortgage loans and the related servicing rights at the date of sale using values derived from a valuation model. MSRs are reported on the consolidated balance sheets at amortized cost, less a valuation allowance if the fair value of identified strata within the MSR portfolio are determined to have a fair value that is less than amortized cost. MSRs are amortized proportionally over the estimated life of the projected net servicing revenue and are periodically evaluated for impairment. Loan servicing fee income represents income earned for servicing mortgage loans owned by investors and includes mortgage servicing fees and other ancillary servicing income. Servicing fees are recorded as income when earned and are reported in non-interest income on the consolidated statements of income and other comprehensive income. MSR valuation allowance expense and servicing related expenses are recorded in servicing related expenses in the consolidated statements of income and other comprehensive income. Goodwill and Other Intangible Assets, Net Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our intangible assets relate primarily to loan customer relationships purchased as part of business acquisitions. Intangible assets with definite useful lives are amortized over their estimated life. Goodwill and intangible assets are tested for impairment at least annually or whenever changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Premises and Equipment, Net Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Furniture and equipment is generally depreciated over three to five years , while leasehold improvements are generally depreciated over the term of their respective lease. Gains or losses on disposals of premises and equipment are included in other non-interest income in the consolidated statements of income and other comprehensive income. Software Costs incurred in connection with development or purchase of internal use software and cloud computing arrangements, including an in-substance software license, are capitalized. Amortization is computed on a straight-line basis over the estimated useful life of the asset, which generally range from one to five years . Capitalized internal use software is included in other assets in the consolidated balance sheets. Financial Instruments with Off-Balance Sheet Risk The Company has undertaken certain guarantee obligations in the ordinary course of business which include liabilities with off-balance sheet risk. We consider the following arrangements to be guarantees: commitments to extend credit, standby letters of credit and indemnification agreements included within third party contractual arrangements. The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit that involve varying degrees of credit risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. In conjunction with the sale and securitization of loans held for sale, we may be exposed to liability resulting from recourse agreements and repurchase agreements. If it is determined subsequent to our sale of a loan that the loan sold is in breach of the representations or warranties made in the applicable sale agreement, we may have an obligation to either (a) repurchase the loan for the unpaid principal balance, accrued interest and related advances, (b) indemnify the purchaser against any loss it suffers or (c) make the purchaser whole for the economic benefits of the loan. Our repurchase, indemnification and make whole obligations vary based upon the terms of the applicable agreements, the nature of the asserted breach and the status of the mortgage loan at the time a claim is made. We establish reserves for estimated losses of this nature inherent in the origination of mortgage loans by estimating the losses inherent in the population of all loans sold based on trends in claims and actual loss severities experienced. The reserve will include accruals for probable contingent losses in addition to those identified in the pipeline of claims received. The estimation process is designed to include amounts based on actual losses experienced from actual activity. Revenue Recognition ASC 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: • Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Wealth management and trust fee income - this represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment managemen |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |
Investment Securities | Securities Available-for-Sale Debt Securities The following is a summary of available-for-sale debt securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 Available-for-sale debt securities: Residential mortgage-backed securities $ 6,874 $ 368 $ — $ 7,242 Tax-exempt asset-backed securities 95,518 286 — 95,804 $ 102,392 $ 654 $ — $ 103,046 December 31, 2017 Available-for-sale debt securities: Residential mortgage-backed securities $ 10,297 $ 648 $ — $ 10,945 During the third quarter of 2018, we purchased a $95.5 million tax-exempt security backed with underlying cash flows from municipal revenue bonds. The security was recorded as available-for-sale upon purchase and subsequently marked to fair value as of December 31, 2018 . The amortized cost and estimated fair value of available-for-sale debt securities are presented below by contractual maturity: (in thousands, except percentage data) Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total December 31, 2018 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ 3 $ 1,573 $ — $ 5,298 $ 6,874 Estimated fair value 4 1,668 — 5,570 7,242 Weighted average yield(3) 6.50 % 5.54 % — % 4.53 % 4.76 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 95,518 95,518 Estimated fair value — — — 95,804 95,804 Weighted average yield(2)(3) — % — % — % 4.25 % 4.25 % Total available-for-sale debt securities: Amortized cost $ 102,392 Estimated fair value $ 103,046 December 31, 2017 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ 409 $ 819 $ 1,502 $ 7,567 $ 10,297 Estimated fair value 418 916 1,636 7,975 10,945 Weighted average yield(3) 4.59 % 6.02 % 5.32 % 3.45 % 3.97 % (1) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 21% federal tax rate. (3) Yields are calculated based on amortized cost. Available-for-sale debt securities with carrying values of approximately $4.8 million and $1.7 million were pledged to secure certain customer repurchase agreements and deposits at December 31, 2018 . The comparative amounts at December 31, 2017 were $7.3 million and $1.6 million , respectively. Equity Securities Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. At December 31, 2018 and December 31, 2017 , we had $17.2 million and $12.6 million , respectively, in equity securities recorded at fair value. Prior to January 1, 2018, equity securities were stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. At December 31, 2017, net unrealized gains of $10,000 had been recognized in AOCI. On January 1, 2018, these unrealized gains and losses were reclassified out of AOCI and into retained earnings with subsequent changes in fair value being recognized in other non-interest income. The following is a summary of unrealized and realized gains/(losses) recognized in net income on equity securities: Year Ended (in thousands) Net gains/(losses) recognized during the period $ (975 ) Less: Realized net gains/(losses) recognized during the period on equity securities sold 460 Unrealized net gains/(losses) recognized during the period on equity securities still held $ (1,435 ) |
Loans Held for Investment and A
Loans Held for Investment and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Loans Held for Investment and Allowance for Loan Losses | Loans Held for Investment and Allowance for Loan Losses Loans held for investment are summarized by portfolio segment as follows: December 31, (in thousands) 2018 2017 Commercial $ 10,373,288 $ 9,189,811 Mortgage finance 5,877,524 5,308,160 Construction 2,120,966 2,166,208 Real estate 3,929,117 3,794,577 Consumer 63,438 48,684 Equipment leases 312,191 264,903 Gross loans held for investment 22,676,524 20,772,343 Deferred income (net of direct origination costs) (108,450 ) (97,931 ) Allowance for loan losses (191,522 ) (184,655 ) Total loans held for investment, net $ 22,376,552 $ 20,489,757 Summary of Loan Loss Experience The following tables summarize the credit risk profile of our loans held for investment by internally assigned grades and non-accrual status: (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Total December 31, 2018 Grade: Pass $ 10,034,597 $ 5,877,524 $ 2,099,955 $ 3,850,811 $ 61,815 $ 309,775 $ 22,234,477 Special mention 120,531 — 21,011 47,644 — 2,223 191,409 Substandard-accruing 140,297 — — 28,205 1,568 193 170,263 Non-accrual 77,863 — — 2,457 55 — 80,375 Total loans held for investment $ 10,373,288 $ 5,877,524 $ 2,120,966 $ 3,929,117 $ 63,438 $ 312,191 $ 22,676,524 December 31, 2017 Grade: Pass $ 8,967,471 $ 5,308,160 $ 2,152,654 $ 3,706,541 $ 48,591 $ 249,865 $ 20,433,282 Special mention 19,958 — 13,554 53,652 — 495 87,659 Substandard-accruing 102,651 — — 32,671 93 14,543 149,958 Non-accrual 99,731 — — 1,713 — — 101,444 Total loans held for investment $ 9,189,811 $ 5,308,160 $ 2,166,208 $ 3,794,577 $ 48,684 $ 264,903 $ 20,772,343 The allowance for loan losses is comprised of general reserves, specific reserves for impaired loans and an additional qualitative reserve all based on our estimate of losses inherent in the portfolio at the balance sheet date, but not yet identified with specified loans. For further discussion of the components of the allowance for loan losses as well as details regarding how the estimate of inherent losses is determined, refer to the Allowance for Loan Losses subheading in Note 1 - Operations and Summary of Significant Accounting Policies. We believe the allowance at December 31, 2018 to be appropriate, given management's assessment of losses inherent in the portfolio as of the evaluation date, the significant growth in the loan and lease portfolio, current economic conditions in our market areas and other factors. The following table details activity in the allowance for loan losses, as well as the recorded investment in loans held for investment, by portfolio segment and disaggregated on the basis of our impairment methodology. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Additional Qualitative Reserve Total Year ended December 31, 2018 Allowance for loan losses: Beginning balance $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Provision for loan losses 87,860 — (31 ) (1,003 ) 397 (1,427 ) (1,159 ) 84,637 Charge-offs 79,692 — — — 767 319 — 80,778 Recoveries 2,468 — — 69 438 33 — 3,008 Net charge-offs (recoveries) 77,224 — — (69 ) 329 286 — 77,770 Ending balance $ 129,442 $ — $ 19,242 $ 33,353 $ 425 $ 1,829 $ 7,231 $ 191,522 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 8,252 $ — $ — $ 48 $ 10 $ — $ — $ 8,310 Loans collectively evaluated for impairment 121,190 — 19,242 33,305 415 1,829 7,231 183,212 Total $ 129,442 $ — $ 19,242 $ 33,353 $ 425 $ 1,829 $ 7,231 $ 191,522 Period end loans allocated to: Loans individually evaluated for impairment $ 78,428 $ — $ — $ 8,857 $ 55 $ — $ — $ 87,340 Loans collectively evaluated for impairment 10,294,860 5,877,524 2,120,966 3,920,260 63,383 312,191 — 22,589,184 Total $ 10,373,288 $ 5,877,524 $ 2,120,966 $ 3,929,117 $ 63,438 $ 312,191 $ — $ 22,676,524 Year ended December 31, 2017 Allowance for loan losses: Beginning balance $ 128,768 $ — $ 13,144 $ 19,149 $ 241 $ 1,124 $ 5,700 $ 168,126 Provision for loan losses 19,590 — 6,084 15,353 226 2,408 2,690 46,351 Charge-offs 34,145 — 59 290 180 — — 34,674 Recoveries 4,593 — 104 75 70 10 — 4,852 Net charge-offs (recoveries) 29,552 — (45 ) 215 110 (10 ) — 29,822 Ending balance $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 24,316 $ — $ — $ 101 $ — $ — $ — $ 24,417 Loans collectively evaluated for impairment 94,490 — 19,273 34,186 357 3,542 8,390 160,238 Total $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Period end loans allocated to: Loans individually evaluated for impairment $ 100,676 $ — $ — $ 2,008 $ — $ — $ — $ 102,684 Loans collectively evaluated for impairment 9,089,135 5,308,160 2,166,208 3,792,569 48,684 264,903 — 20,669,659 Total $ 9,189,811 $ 5,308,160 $ 2,166,208 $ 3,794,577 $ 48,684 $ 264,903 $ — $ 20,772,343 We have traditionally maintained an additional qualitative reserve component to compensate for the uncertainty and complexity in estimating loan and lease losses associated with circumstances or events that are out of the ordinary, not predictable in amount or frequency or not reasonably correlated with other past experience and/or general economic conditions. At December 31, 2018 , the additional qualitative reserve as a percentage of loans held for investment was 0.03% compared to 0.04% at December 31, 2017 . The decline in the additional qualitative reserve at December 31, 2018 as compared to December 31, 2017 was primarily related to the resolution of remaining uncertainty regarding the impact to our loan portfolio from Hurricanes Harvey and Irma. The following tables detail our impaired loans held for investment by portfolio segment. In accordance with ASC 310, Receivables , we have also included all restructured and formerly restructured loans in our impaired loan totals. (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2018 With no related allowance recorded: Commercial Business loans $ 23,367 $ 55,008 $ — $ 16,426 $ 133 Energy loans 12,188 13,363 — 17,135 — Construction Market risk — — — — — Real estate Market risk — — — — — Commercial 7,388 7,388 — 3,215 — Secured by 1-4 family 1,233 1,233 — 734 — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 44,176 $ 76,992 $ — $ 37,510 $ 133 With an allowance recorded: Commercial Business loans $ 17,529 $ 17,564 $ 4,679 $ 41,307 $ — Energy loans 25,344 28,105 3,573 25,672 — Construction Market risk — — — — — Real estate Market risk — — — 49 — Commercial — — — 83 — Secured by 1-4 family 236 236 48 188 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans with an allowance recorded $ 43,164 $ 45,960 $ 8,310 $ 67,628 $ — Combined: Commercial Business loans $ 40,896 $ 72,572 $ 4,679 $ 57,733 $ 133 Energy loans 37,532 41,468 3,573 42,807 — Construction Market risk — — — — — Real estate Market risk — — — 49 — Commercial 7,388 7,388 — 3,298 — Secured by 1-4 family 1,469 1,469 48 922 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans $ 87,340 $ 122,952 $ 8,310 $ 105,138 $ 133 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017 With no related allowance recorded: Commercial Business loans $ 16,835 $ 18,257 $ — $ 22,964 $ — Energy loans 21,426 22,602 — 36,579 — Construction Market risk — — — — — Real estate Market risk — — — — — Commercial 1,096 1,096 — 2,166 — Secured by 1-4 family — — — — — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 39,357 $ 41,955 $ — $ 61,709 $ — With an allowance recorded: Commercial Business loans $ 18,645 $ 19,020 $ 2,544 $ 16,960 $ — Energy loans 43,770 55,875 21,772 50,867 6 Construction Market risk — — — 27 — Real estate Market risk 295 295 6 485 — Commercial 499 499 75 166 — Secured by 1-4 family 118 118 20 516 — Consumer — — — 33 — Equipment leases — — — 14 — Total impaired loans with an allowance recorded $ 63,327 $ 75,807 $ 24,417 $ 69,068 $ 6 Combined: Commercial Business loans $ 35,480 $ 37,277 $ 2,544 $ 39,924 $ — Energy loans 65,196 78,477 21,772 87,446 6 Construction Market risk — — — 27 — Real estate Market risk 295 295 6 485 — Commercial 1,595 1,595 75 2,332 — Secured by 1-4 family 118 118 20 516 — Consumer — — — 33 — Equipment leases — — — 14 — Total impaired loans $ 102,684 $ 117,762 $ 24,417 $ 130,777 $ 6 Average impaired loans outstanding during the years ended December 31, 2018 , 2017 and 2016 totaled $105.1 million , $130.8 million and $174.1 million , respectively. For the years ended December 31, 2018 , 2017 and 2016 , we recognized $133,000 , $6,000 and $62,000 , respectively, in interest income on non-accrual loans. Additional interest income that would have been recorded if the loans had been current during the years ended December 31, 2018 , 2017 and 2016 totaled $8.5 million , $19.0 million and $7.9 million , respectively. As of December 31, 2018 and 2017 , none of our non-accrual loans were earning interest income on a cash basis. The table below provides an age analysis of our loans held for investment: (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days(1) Total Past Due Non-accrual Current Total December 31, 2018 Commercial Business loans $ 16,845 $ 13,680 $ 9,163 $ 39,688 $ 40,331 $ 8,662,285 $ 8,742,304 Energy — 1,150 — 1,150 37,532 1,592,302 1,630,984 Mortgage finance loans — — — — — 5,877,524 5,877,524 Construction Market risk — 2,551 — 2,551 — 2,028,062 2,030,613 Commercial — — — — — 64,957 64,957 Secured by 1-4 family 59 — — 59 — 25,337 25,396 Real estate Market risk 1,738 — — 1,738 — 2,786,299 2,788,037 Commercial 1,643 4,595 — 6,238 988 776,232 783,458 Secured by 1-4 family 1,484 44 190 1,718 1,469 354,435 357,622 Consumer — — — — 55 63,383 63,438 Equipment leases 256 — — 256 — 311,935 312,191 Total loans held for investment $ 22,025 $ 22,020 $ 9,353 $ 53,398 $ 80,375 $ 22,542,751 $ 22,676,524 (1) Loans past due 90 days and still accruing includes premium finance loans of $9.2 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. As of December 31, 2018 and December 31, 2017 , we did not have any loans considered restructured that were not on non-accrual. Of the non-accrual loans at December 31, 2018 and 2017 , $20.0 million and $18.8 million , respectively, met the criteria for restructured. These loans had no unfunded commitments at their respective balance sheet dates. The following table details the recorded investment at December 31, 2018 and 2017 of loans that have been restructured during the years ended December 31, 2018 and 2017 by type of modification: Extended Maturity Adjusted Payment Schedule Total (in thousands, except number of contracts) Number of Contracts Balance at Period End Number of Contracts Balance at Period End Number of Contracts Balance at Period End Year Ended December 31, 2018 Commercial Business loans — $ — 2 $ 2,411 2 $ 2,411 Energy loans — — 5 10,047 5 10,047 Total — $ — 7 $ 12,458 $ 7 $ 12,458 Year Ended December 31, 2017 Commercial Business loans 1 $ 712 2 $ 6,928 $ 3 $ 7,640 Energy loans 1 — — — 1 — Total 2 $ 712 2 $ 6,928 $ 4 $ 7,640 Restructured loans generally include terms to temporarily place the loan on interest only, extend the payment terms or reduce the interest rate. We did not forgive any principal on the above loans. At December 31, 2018 , all of the above loans restructured in 2018 are on non-accrual. The restructuring of the loans did not have a significant impact on our allowance for loan losses at December 31, 2018 or 2017 . As of December 31, 2018 and 2017 , we did not have any loans that were restructured within the last 12 months that subsequently defaulted. |
OREO and Valuation Allowance fo
OREO and Valuation Allowance for Losses on OREO | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
OREO and Valuation Allowance for Losses on OREO | OREO and Valuation Allowance for Losses on OREO The table below presents a summary of the activity related to OREO: Year ended December 31, (in thousands) 2018 2017 2016 Beginning balance $ 11,742 $ 18,961 $ 278 Additions — — 18,822 Sales (11,663 ) (1,108 ) (139 ) Valuation allowance for OREO — — — Direct write-downs — (6,111 ) — Ending balance $ 79 $ 11,742 $ 18,961 During 2017, we recorded a $6.1 million write-down on one asset. In 2018, we sold this asset and recorded a $2.0 million gain on sale. The gain on sale was recorded in other non-interest income. |
Certain Transfers of Financial
Certain Transfers of Financial Assets | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Certain Transfers of Financial Assets | Certain Transfers of Financial Assets The table below presents a reconciliation of the changes in loans held for sale: Year Ended December 31, (in thousands) 2018 2017 Outstanding balance: Beginning balance $ 1,012,580 $ 980,414 Loans purchased 6,753,709 5,556,964 Payments and loans sold (5,816,504 ) (5,524,798 ) Ending balance(1) 1,949,785 1,012,580 Fair value adjustment: Beginning balance (1,576 ) 8,333 Increase/(decrease) to fair value 21,265 9,909 Ending balance 19,689 (1,576 ) Loans held for sale at fair value(1) $ 1,969,474 $ 1,011,004 (1) Includes $299,000 and $3.3 million of loans held for sale that are carried at lower of cost or market as of December 31, 2018 and 2017 , respectively. No loans held for sale were on non-accrual as of December 31, 2018 or December 31, 2017 . At December 31, 2018 and December 31, 2017 , we had $16.8 million and $19.7 million , respectively, in loans held for sale that were 90 days or more past due. The $16.8 million in loans held for sale that were 90 days or more past due at December 31, 2018 included $16.0 million in loans guaranteed by U.S. government agencies that were purchased out of Ginnie Mae securities and recorded as loans held for sale, at fair value, on the balance sheet. Interest on these past due loans accrues at the debenture rate guaranteed by the U.S. government. At December 31, 2017 $19.0 million of the $19.7 million in loans held for sale that were 90 days or more past due were loans that, pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not the obligation, to repurchase if defined delinquent loan criteria are met, and therefore must record as held for sale on our balance sheet regardless of whether the repurchase option has been exercised. From time to time we retain the right to service the loans sold through our MCA program, creating MSRs which are recorded as assets on our balance sheet. A summary of MSR activity is as follows: Year Ended December 31, (in thousands) 2018 2017 MSRs: Balance, beginning of year $ 88,150 $ 28,536 Capitalized servicing rights 39,149 67,970 Amortization (9,278 ) (8,356 ) Sales (75,547 ) — Balance, end of period $ 42,474 $ 88,150 Valuation allowance: Balance, beginning of year $ 2,823 $ — Increase in valuation allowance (2,823 ) 2,823 Balance, end of period $ — $ 2,823 MSRs, net(1) $ 42,474 $ 85,327 MSRs, fair value $ 44,502 $ 86,321 At December 31, 2018 and 2017 , our servicing portfolio of residential mortgage loans had an outstanding principal balance of $3.9 billion and $7.0 billion , respectively. The decline in MSRs, as well as in the outstanding balance of loans in our servicing portfolio, resulted primarily from the completion of MSR sales in 2018, as well as our strategic decision to retain fewer MSRs on loans sold through our MCA program in 2018. In connection with the servicing of these loans, we hold deposits in the name of investors representing escrow funds for taxes and insurance, as well as collections in transit to the investors. These escrow funds are segregated and held in separate non-interest-bearing bank accounts at the Bank. These deposits, included in total non-interest-bearing deposits on the consolidated balance sheets, were $37.9 million at December 31, 2018 and $73.4 million at December 31, 2017 . The estimated fair value of the MSR assets is obtained from an independent third party and reviewed by management on a quarterly basis. MSRs typically do not trade in an active, open market with readily observable prices; as such, the fair value of MSRs is determined using a discounted cash flow model to calculate the present value of the estimated future net servicing income. The assumptions utilized in the discounted cash flow model are based on market data for comparable assets, where available. Each quarter, management and the independent third party review the key assumptions used in the discounted cash flow model and make adjustments as necessary to estimate the fair value of the MSRs. At December 31, 2017 , the estimated fair value of MSRs was adjusted in anticipation of a sale of Ginnie Mae MSRs in the first quarter of 2018, which resulted in a $2.8 million impairment charge. There was no impairment charge at December 31, 2018 . The following summarizes the assumptions used by management to determine the fair value of MSRs: December 31, 2018 2017 Average discount rates 9.55 % 9.90 % Expected prepayment speeds 9.77 % 9.99 % Weighted-average life, in years 7.0 7.0 A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table: December 31, (in thousands) 2018 2017 50 bp adverse change in prepayment speed $ (6,028 ) $ (11,896 ) 100 bp adverse change in prepayment speed (11,629 ) (28,226 ) These sensitivities are hypothetical and actual results may differ materially due to a number of factors. The effect on fair value of a 10% variation in assumptions generally cannot be determined with confidence because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may be correlated with changes in other factors, which could impact the sensitivity analysis as presented. In conjunction with the sale and securitization of loans held for sale, we may be exposed to liability resulting from recourse agreements and repurchase agreements. Our estimated repurchase, indemnification and make whole obligation exposure totaled $1.6 million and $1.3 million at December 31, 2018 and December 31, 2017 , respectively, and is recorded in other liabilities in the consolidated balance sheets. We incurred $ 258,000 in losses due to repurchase, indemnification and make-whole obligations during the year ended December 31, 2018 compared to $31,000 in 2017 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill and other intangible assets are summarized as follows: (in thousands) Gross Goodwill and Intangible Assets Accumulated Amortization Net Goodwill and Intangible Assets December 31, 2018 Goodwill $ 15,468 $ (374 ) $ 15,094 Intangible assets—customer relationships and trademarks 9,006 (5,530 ) 3,476 Total goodwill and intangible assets $ 24,474 $ (5,904 ) $ 18,570 December 31, 2017 Goodwill $ 15,468 $ (374 ) $ 15,094 Intangible assets—customer relationships and trademarks 9,006 (5,060 ) 3,946 Total goodwill and intangible assets $ 24,474 $ (5,434 ) $ 19,040 Amortization expense related to intangible assets totaled $470,000 in 2018 , $472,000 in 2017 and $448,000 in 2016 . The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2018 is as follows: (in thousands) 2019 $ 470 2020 432 2021 405 2022 405 2023 382 Thereafter 1,382 Total $ 3,476 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment are summarized as follows: December 31, (in thousands) 2018 2017 Premises $ 27,999 $ 25,790 Furniture and equipment 35,130 32,234 Total cost 63,129 58,024 Accumulated depreciation (39,327 ) (32,848 ) Total premises and equipment, net $ 23,802 $ 25,176 Depreciation expense for the above premises and equipment was approximately $9.0 million, $6.9 million and $6.0 million in 2018 , 2017 and 2016 , respectively. We lease various premises under operating leases with various expiration dates extending through March 2032. Rent expense incurred under operating leases totaled approximately $16.5 million , $14.4 million and $13.7 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Minimum future lease payments under operating leases are as follows at December 31, 2018 : (in thousands) Minimum Payments 2019 $ 14,652 2020 15,549 2021 15,846 2022 15,012 2023 14,070 2024 and thereafter 28,666 Total $ 103,795 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | Deposits Deposits are summarized as follows: December 31, (in thousands) 2018 2017 Non-interest-bearing demand deposits $ 7,317,161 $ 7,812,660 Interest-bearing deposits Transaction 3,051,535 2,567,208 Savings 8,222,893 8,214,059 Time 2,014,524 529,253 Total interest-bearing deposits 13,288,952 11,310,520 Total deposits $ 20,606,113 $ 19,123,180 The scheduled maturities of interest-bearing time deposits were as follows at December 31, 2018 : (in thousands) 2019 $ 1,990,962 2020 21,894 2021 778 2022 263 2023 127 2024 and after 500 Total $ 2,014,524 At December 31, 2018 and 2017 , interest-bearing time deposits of $250,000 or more were approximately $270.2 million and $300.5 million, respectively. |
Short-Term and Other Borrowings
Short-Term and Other Borrowings | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-Term and Other Borrowings | Borrowings The following table summarizes our short-term and other borrowings: (dollar amounts in thousands) Federal Funds Purchased Customer Repurchase Agreements FHLB Borrowings December 31, 2018 Amount outstanding at year-end $ 629,169 $ 12,005 $ 3,900,000 Interest rate at year-end 2.54 % 0.09 % 2.56 % Average balance outstanding during the year $ 323,140 $ 9,812 $ 1,769,452 Weighted-average interest rate during the year 2.02 % 0.09 % 2.05 % Maximum month-end outstanding during the year $ 629,169 $ 13,835 $ 4,000,000 December 31, 2017 Amount outstanding at year-end $ 359,338 $ 5,702 $ 2,800,000 Interest rate at year-end 1.45 % 0.03 % 1.35 % Average balance outstanding during the year $ 215,895 $ 6,590 $ 1,395,753 Weighted-average interest rate during the year 1.20 % 0.04 % 1.08 % Maximum month-end outstanding during the year $ 544,203 $ 8,727 $ 2,800,000 December 31, 2016 Amount outstanding at year-end $ 101,800 $ 7,775 $ 2,000,000 Interest rate at year-end 0.80 % 0.05 % 0.61 % Average balance outstanding during the year $ 90,904 $ 15,380 $ 1,367,267 Weighted-average interest rate during the year 0.57 % 0.06 % 0.43 % Maximum month-end outstanding during the year $ 263,989 $ 18,884 $ 2,025,000 The following table summarizes our other borrowing capacities net of balances outstanding. As of December 31, 2018 , all are scheduled to mature within one year. December 31, (in thousands) 2018 2017 2016 FHLB borrowing capacity relating to loans $ 4,568,842 $ 3,890,995 $ 3,057,915 FHLB borrowing capacity relating to securities 721 2,071 1,653 Total FHLB borrowing capacity(1) $ 4,569,563 $ 3,893,066 $ 3,059,568 Unused Federal funds lines available from commercial banks $ 620,000 $ 885,000 $ 1,118,000 Unused Federal Reserve Borrowings capacity $ 4,933,965 $ 4,114,594 $ 3,179,087 Unused revolving line of credit(2) $ 130,000 $ 130,000 $ 130,000 (1) FHLB borrowings are collateralized by a blanket floating lien on certain real estate secured loans, mortgage finance assets and also certain pledged securities. (2) Unsecured revolving, non-amortizing line of credit with maturity date of December 17, 2019. Proceeds may be used for general corporate purposes, including funding regulatory capital infusions into the Bank. The loan agreement contains customary financial covenants and restrictions. No borrowings were made against this line of credit during 2018 or 2017; the average borrowings during the year ended December 31, 2016 were $6.8 million . |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated Borrowings [Abstract] | |
Long-Term Debt | Long-Term Debt From November 2002 to September 2006 various Texas Capital Statutory Trusts were created and subsequently issued floating rate trust preferred securities in various private offerings totaling $113.4 million . As of December 31, 2018 , the details of the trust preferred subordinated debentures are summarized below: (dollar amounts in thousands) Texas Capital Texas Capital Texas Capital Texas Capital Texas Capital Date issued November 19, 2002 April 10, 2003 October 6, 2005 April 28, 2006 September 29, 2006 Trust preferred securities issued $10,310 $10,310 $25,774 $25,774 $41,238 Floating or fixed rate securities Floating Floating Floating Floating Floating Interest rate on subordinated debentures 3 month LIBOR 3 month LIBOR 3 month LIBOR 3 month LIBOR 3 month LIBOR Maturity date November 2032 April 2033 December 2035 June 2036 December 2036 On September 21, 2012, the Company issued $111.0 million of subordinated notes. The notes mature in September 2042 and bear interest at a rate of 6.50% per annum, payable quarterly. The indenture governing the notes contains customary covenants and restrictions. On January 31, 2014, the Bank issued $175.0 million of subordinated notes in an offering to institutional investors exempt from registration under Section 3(a)(2) of the Securities Act of 1933 and 12 C.F.R. Part 16. The notes mature in January 2026 and bear interest at a rate of 5.25% per annum, payable semi-annually. The notes are unsecured and are subordinate to the Bank’s obligations to its depositors, its obligations under banker’s acceptances and letters of credit, certain obligations to Federal Reserve Banks and the FDIC and the Bank’s obligations to its other creditors, except any obligations which expressly rank on a parity with or junior to the notes. The notes qualify as Tier 2 capital for regulatory capital purposes, subject to applicable limitations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Tax Act enacted in December 2017 reduced the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the Tax Act, we remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to be recognized in the future, which was generally 21%, and as a result we recorded a $17.6 million provisional remeasurement write-off, which was recorded as additional income tax expense during 2017. During 2018, after completing the full analysis of the impact of the Tax Act, we recorded an insignificant additional provision. Income tax expense/(benefit) consists of the following: Year ended December 31, (in thousands) 2018 2017 2016 Current: Federal $ 82,556 $ 94,112 $ 86,612 State 3,808 3,257 2,412 Total 86,364 97,369 89,024 Deferred: Federal (6,400 ) 31,276 (2,946 ) State — — — Total (6,400 ) 31,276 (2,946 ) Total expense: Federal 76,156 125,388 83,666 State 3,808 3,257 2,412 Total $ 79,964 $ 128,645 $ 86,078 The reconciliation of our effective income tax rate to the U.S. federal statutory tax rate is as follows: Year ended December 31, 2018 2017 2016 U.S. statutory rate 21 % 35 % 35 % State taxes 1 % 1 % 1 % Non-deductible expenses 1 % 1 % 1 % Deferred tax asset remeasurement write-off — % 5 % — % Non-taxable income (1 )% (1 )% (1 )% Other (1 )% (1 )% — % Effective tax rate 21 % 40 % 36 % The tax effect of unrealized gains and losses on available-for-sale debt securities is recorded to other comprehensive income and is not a component of income tax expense/(benefit). We are no longer subject to U.S. federal income tax examinations for years before 2015 or state and local income tax examinations for years before 2014 . The table below summarizes significant components of our deferred tax assets and liabilities utilizing the federal corporate income tax rate of 21%. Management believes it is more likely than not that all of the deferred tax assets will be realized. Our net deferred tax assets are included in other assets in the consolidated balance sheets. December 31, (in thousands) 2018 2017 Deferred tax assets: Allowance for credit losses $ 44,224 $ 42,213 Loan origination fees 11,328 10,084 Stock compensation 3,363 4,460 Non-accrual interest 1,724 1,680 Non-qualified deferred compensation 2,211 1,217 Other 2,517 3,380 Total deferred tax assets 65,367 63,034 Deferred tax liabilities: Loan origination costs (2,049 ) (1,304 ) Leases (9,000 ) (6,850 ) MSRs (9,184 ) (17,619 ) Depreciation (8,233 ) (7,354 ) Unrealized gain on securities (138 ) (138 ) Other (2,662 ) (2,068 ) Total deferred tax liabilities (31,266 ) (35,333 ) Net deferred tax asset $ 34,101 $ 27,701 |
Stock-Based Compensation and Em
Stock-Based Compensation and Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Stock-Based Compensation and Employee Benefits | Stock-Based Compensation and Employee Benefits We have a qualified retirement plan, with a salary deferral feature designed to qualify under Section 401 of the Internal Revenue Code (“the 401(k) Plan”). The 401(k) Plan permits our employees to defer a portion of their compensation. Matching contributions may be made in amounts and at times determined by the Company. We contributed approximately $9.6 million , $8.4 million , and $6.8 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. Employees are eligible to participate in the 401(k) Plan when they meet certain requirements concerning minimum age and period of credited service. All contributions to the 401(k) Plan are invested in accordance with participant elections among certain investment options. During 2000, we implemented an Employee Stock Purchase Plan (“ESPP”). Employees are eligible for the plan when they meet certain requirements concerning period of credited service and minimum hours worked. Eligible employees may contribute a minimum of 1% to a maximum of 10% of eligible compensation up to the Section 423 of the Internal Revenue Code limit of $25,000. In 2006, stockholders approved the 2006 ESPP, which allocated 400,000 shares for purchase. As of December 31, 2018 , 2017 and 2016 , 143,348 , 132,285 and 124,572 shares had been purchased on behalf of the employees under the 2006 ESPP. We have stock-based compensation plans under which equity-based compensation grants are made by the board of directors, or its designated committee. Grants are subject to vesting requirements. Under the plans, we may grant, among other things, non-qualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), stock appreciation rights (“SARs”), cash-settled performance units or any combination thereof to employees and non-employee directors. A total of 2,550,000 shares are authorized for grant under the plans. Total shares remaining available for grant under the plans at December 31, 2018 were 2,121,515 . We also offer a non-qualified deferred compensation plan for our executives and key members of management in order to assist us in attracting and retaining these individuals. Participants in the plan may elect to defer up to 75% of their annual salary and/or short-term incentive payout into deferral accounts that mirror the gains or losses of investments selected by the participants. The plan allows us to make discretionary contributions on behalf of a participant as well as matching contributions. We made matching contributions of $1.0 million in 2018 and discretionary contributions of $260,000 in 2017 . All participant contributions to the plan and any related earnings are immediately vested and may be withdrawn upon the participant's separation from service, death or disability or upon a date specified by the participant. The deferrals are recorded to salaries and benefits as a reduction and a corresponding accrual is recorded in other liabilities. A summary of our SAR activity and related information is as follows. These rights are time based and generally vest ratably over a period of five years. December 31, 2018 December 31, 2017 December 31, 2016 SARs Weighted Average Exercise Price SARs Weighted Average Exercise Price SARs Weighted Average Exercise Price SARs outstanding at beginning of year 74,363 $ 30.12 125,863 $ 31.68 360,544 $ 25.73 SARs granted — — — — — — SARs exercised (33,013 ) 31.35 (51,500 ) 33.94 (234,681 ) 22.54 SARs forfeited — — — — — — SARs outstanding at year-end 41,350 $ 29.13 74,363 $ 30.12 125,863 $ 31.68 SARs vested and exercisable at year-end 39,750 $ 27.81 60,463 $ 26.02 94,463 $ 26.73 Weighted average remaining contractual life of SARs vested (in years) 2.33 2.82 3.62 Compensation expense $ 121,000 $ 265,000 $ 307,000 Unrecognized compensation expense $ 6,000 $ 127,000 $ 392,000 Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) 0.17 0.75 1.52 Fair value of shares vested during the year $ 210,807 $ 294,000 $ 337,000 Weighted average remaining contractual life of SARs (in years) 2.44 3.35 4.32 Intrinsic value of SARs exercised $ 925,479 $ 3,802,000 $ 4,881,000 A summary of our RSU activity and related information is as follows. Grants of RSUs include both performance-based and time-based vesting conditions and generally vest over a three-year period. December 31, 2018 December 31, 2017 December 31, 2016 RSUs Weighted Average Grant Date Fair Value RSUs Weighted RSUs Weighted RSUs outstanding at beginning of year 423,732 $ 60.01 425,055 $ 51.28 333,174 $ 48.60 RSUs granted 95,891 88.07 121,243 80.40 213,577 51.75 RSUs vested (121,507 ) 54.97 (102,057 ) 48.93 (94,296 ) 42.87 RSUs forfeited (48,583 ) 63.60 (20,509 ) 54.75 (27,400 ) 51.18 RSUs outstanding at year-end 349,533 $ 69.11 423,732 $ 60.01 425,055 $ 51.28 Compensation expense $ 8,803,000 $ 7,790,000 $ 4,771,000 Unrecognized compensation expense $ 16,538,000 $ 18,730,000 $ 17,167,000 Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) 2.90 3.15 3.37 Weighted average remaining contractual life of RSUs (in years) 8.13 8.33 8.65 In 2016, we began granting shares of restricted stock ("RSAs") to non-employee directors at the time that they join the board. These restricted shares generally vest ratably over a period of three years. We recorded compensation expense of $62,000, $61,000 and $35,000 for the years ended December 31, 2018, 2017 and 2016, respectively. Total compensation cost for all share-based arrangements was $9.0 million, $8.1 million and $5.1 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. We granted 138,773 cash-settled units in 2018 , with a total of 325,719 outstanding at December 31, 2018 , all of which are time-based and vest ratably over a period of four years . We granted 121,260 and 224,071 cash-settled units in 2017 and 2016 , respectively. Since these units have a cash payout feature, they are accounted for under the liability method with related expense based on the stock price at period end. Compensation cost for the cash-settled units was $8.0 million, $13.9 million and $8.5 million for the years ended December 31, 2018 , 2017 and 2016 , respectively. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The table below presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. This allowance is recorded in other liabilities on the consolidated balance sheet. Year Ended December 31, (in thousands) 2018 2017 Beginning balance of allowance for off-balance sheet credit losses $ 9,071 $ 11,422 Provision for off-balance sheet credit losses 2,363 (2,351 ) Ending balance of allowance for off-balance sheet credit losses $ 11,434 $ 9,071 Commitments to extend credit - period end balance $ 8,030,198 $ 6,957,847 Standby letters of credit - period end balance $ 236,537 $ 230,958 |
Regulatory Restrictions
Regulatory Restrictions | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Restrictions | The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory (and possibly additional discretionary) actions by regulators that, if undertaken, could have a direct material adverse effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The Basel III regulatory capital framework (the "Basel III Capital Rules") adopted by U.S. federal regulatory authorities, among other things, (i) establishes the capital measure called "Common Equity Tier 1" ("CET1"), (ii) specifies that Tier 1 capital consist of CET1 and "Additional Tier 1 Capital" instruments meeting stated requirements, (iii) requires that most deductions/adjustments to regulatory capital measures be made to CET1 and not to other components of capital and (iv) defines the scope of the deductions/adjustments to the capital measures. The Basel III Capital Rules became effective for us on January 1, 2015 with certain transition provisions fully phasing in over a period ending on January 1, 2019. Additionally, the Basel III Capital Rules require that we maintain a capital conservation buffer with respect to each of CET1, Tier 1 and total capital to risk-weighted assets, which provides for capital levels that exceed the minimum risk-based capital adequacy requirements. The capital conservation buffer is subject to a three year phase-in period that began on January 1, 2016 and will be fully phased-in on January 1, 2019 at 2.5%. The required phase-in capital conservation buffer during 2018 was 1.875% and during 2017 was 1.25%. A financial institution with a conservation buffer of less than the required amount is subject to limitations on capital distributions, including dividend payments and stock repurchases, and certain discretionary bonus payments to executive officers. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of CET1, Tier 1 and total capital to risk-weighted assets, and of Tier 1 capital to average assets, each as defined in the regulations. Management believes, as of December 31, 2018 , that the Company and the Bank meet all capital adequacy requirements to which they are subject. Financial institutions are categorized as well capitalized or adequately capitalized, based on minimum total risk-based, Tier 1 risk-based, CET1 and Tier 1 leverage ratios. As shown in the table below, the Company’s capital ratios exceeded the regulatory definition of adequately capitalized as of December 31, 2018 and 2017 . Based upon the information in its most recently filed call report, the Bank met the capital ratios necessary to be well capitalized. The regulatory authorities can apply changes in classification of assets and such changes may retroactively subject the Company to changes in capital ratios. Any such change could reduce one or more capital ratios below well-capitalized status. In addition, a change may result in imposition of additional assessments by the FDIC or could result in regulatory actions that could have a material effect on condition and results of operations. Because our Bank had less than $15.0 billion in total consolidated assets as of December 31, 2009, we are allowed to continue to classify our trust preferred securities, all of which were issued prior to May 19, 2010, as Tier 1 capital. The table below summarizes our actual and required capital ratios under the Basel III Capital Rules: Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum capital Required - Basel III Fully Phased-In Required to be Considered Well Capitalized (dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2018 CET1 Company $ 2,330,599 8.58 % $ 1,732,501 6.38 % $ 1,902,354 7.00 % N/A N/A Bank 2,340,988 8.62 % 1,731,955 6.38 % 1,901,755 7.00 % 1,765,915 6.50 % Total capital (to risk-weighted assets) Company 3,074,097 11.31 % 2,683,679 9.88 % 2,853,532 10.50 % N/A N/A Bank 2,925,872 10.77 % 2,682,833 9.88 % 2,852,632 10.50 % 2,716,793 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,589,374 9.53 % 2,140,149 7.88 % 2,310,002 8.50 % N/A N/A Bank 2,499,763 9.20 % 2,139,474 7.88 % 2,309,274 8.50 % 2,173,434 8.00 % Tier 1 capital (to average assets)(1) Company 2,589,374 9.87 % 1,049,694 4.00 % 1,049,694 4.00 % N/A N/A Bank 2,499,763 9.53 % 1,049,296 4.00 % 1,049,296 4.00 % 1,311,620 5.00 % December 31, 2017 CET1 Company $ 2,033,830 8.45 % $ 1,384,448 5.75 % $ 1,685,464 7.00 % N/A N/A Bank 1,992,152 8.28 % 1,383,475 5.75 % 1,684,231 7.00 % 1,563,929 6.50 % Total capital (to risk-weighted assets) Company 2,768,153 11.50 % 2,227,221 9.25 % 2,528,196 10.50 % N/A N/A Bank 2,567,961 10.67 % 2,225,591 9.25 % 2,526,347 10.50 % 2,406,044 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,293,016 9.52 % 1,745,659 7.25 % 2,046,635 8.50 % N/A N/A Bank 2,151,338 8.94 % 1,744,382 7.25 % 2,045,138 8.50 % 1,924,835 8.00 % Tier 1 capital (to average assets)(1) Company 2,293,016 9.15 % 1,002,494 4.00 % 1,002,494 4.00 % N/A N/A Bank 2,151,338 8.59 % 1,002,144 4.00 % 1,002,144 4.00 % 1,252,680 5.00 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. Our mortgage finance loan volumes can increase significantly at month-end, causing a meaningful difference between ending balance and average balance for any period. At December 31, 2018 , our total mortgage finance loans were $5.9 billion compared to the average for the quarter ended December 31, 2018 of $5.0 billion . As CET1, Tier 1 and total capital ratios are calculated using quarter-end risk-weighted assets and our mortgage finance loans are 100% risk-weighted (excluding MCA mortgage loans held for sale, which receive lower risk weights), the period-end fluctuation in these balances can significantly impact our reported ratios. Due to the actual risk profile and liquidity of this asset class, we manage capital allocated to mortgage finance loans based on changing trends in average balances and do not believe that the period-end balance is representative of risk characteristics that would justify higher allocations. However, we monitor our capital allocation to confirm that all capital levels remain above well-capitalized levels. Dividends that may be paid by banks are routinely restricted by various regulatory authorities. The amount that can be paid in any calendar year without prior approval of our Bank’s regulatory agencies cannot exceed the lesser of the net profits (as defined) for that year plus the net profits for the preceding two calendar years, or retained earnings. The Basel III Capital Rules further limit the amount of dividends that may be paid by our Bank. No dividends were declared or paid on our common stock during 2018 , 2017 or 2016 . The required reserve balances at the Federal Reserve at December 31, 2018 and 2017 were approximately $157.7 million and $197.3 million, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the computation of basic and diluted earnings per share: Year ended December 31, (in thousands except per share data) 2018 2017 2016 Numerator: Net income $ 300,824 $ 197,063 $ 155,119 Preferred stock dividends 9,750 9,750 9,750 Net income available to common stockholders $ 291,074 $ 187,313 $ 145,369 Denominator: Denominator for basic earnings per share—weighted average shares 49,936,702 49,587,169 46,239,210 Effect of employee stock-based awards(1) 218,275 239,008 128,228 Effect of warrants to purchase common stock 117,895 433,657 398,464 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 50,272,872 50,259,834 46,765,902 Basic earnings per common share $ 5.83 $ 3.78 $ 3.14 Diluted earnings per common share $ 5.79 $ 3.73 $ 3.11 (1) SARs and RSUs outstanding of 27,100 , 13,500 and 150,416 in 2018 , 2017 and 2016 , respectively, have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures We determine the fair market values of our assets and liabilities measured at fair value on a recurring and nonrecurring basis using the fair value hierarchy as prescribed in ASC 820. The standard describes three levels of inputs that may be used to measure fair value as provided below. Level 1 Quoted prices in active markets for identical assets or liabilities. Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; 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. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair values requires significant management judgment or estimation. Assets and liabilities measured at fair value are as follows: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 December 31, 2018 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 7,242 $ — Tax-exempt asset-backed securities — — 95,804 Equity securities(1)(2) 10,262 6,908 — Loans held for sale(3) — 1,952,760 16,415 Loans held for investment(4)(6) — — 29,885 OREO(5)(6) — — 79 Derivative assets(7) — 21,806 — Derivative liabilities(7) — 41,375 — Non-qualified deferred compensation plan liabilities(8) 10,148 — — December 31, 2017 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 10,945 $ — Equity securities(1)(2) 5,460 7,106 — Loans held for sale(3) — 1,007,695 — Loans held for investment(4)(6) — — 21,216 OREO(5)(6) — — 11,742 Derivative assets(7) — 16,719 — Derivative liabilities(7) — 17,377 — Non-qualified deferred compensation plan liabilities(8) 5,587 — — (1) Securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities which are measured quarterly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale purchased through our MCA program are measured at fair value on a recurring basis, generally monthly. (4) Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral. (5) OREO is transferred from loans to OREO at fair value less selling costs. (6) Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (7) Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (8) Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally correspond to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. Level 3 Valuations The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis using Level 3 inputs: Net Realized/Unrealized Gains (Losses) (in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period Year ended December 31, 2018 Tax-exempt asset-backed securities(1) $ — $ 95,521 $ (3 ) $ — $ 286 $ 95,804 Loans held for sale(2) $ — $ 38,430 $ (20,591 ) $ (173 ) $ (1,251 ) $ 16,415 (1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income. (2) Realized and unrealized gains/(losses) on loans held for sale are recorded in gain/(loss) on sale of loans held for sale. Tax-exempt asset-backed securities The fair value of tax-exempt asset-backed securities is based on a discounted cash flow model, which utilizes Level 3, or unobservable, inputs, the most significant of which were a discount rate and weighted-average life. At December 31, 2018 , a discount rate of 4.21% and a weighted-average life of 9.2 years were utilized to determine the fair value of these securities. Loans held for sale The fair value of loans held for sale using Level 3 inputs include loans that cannot be sold through normal sale channels and thus require significant management judgment or estimation when determining the fair value. The fair value of such loans is generally based upon quoted prices of comparable loans with a liquidity discount applied. At December 31, 2018 , the fair value of these loans was calculated using a weighted-average discounted price of 92.9% . Loans held for investment Certain impaired loans held for investment are reported at fair value through a specific valuation allowance allocation of the allowance for loan losses based upon the fair value of the underlying collateral. The $29.9 million fair value of loans held for investment at December 31, 2018 reported above includes impaired loans held for investment with a carrying value of $32.2 million that were reduced by specific valuation allowance allocations totaling $2.3 million based on collateral valuations utilizing Level 3 inputs. The $21.2 million fair value of loans held for investment at December 31, 2017 reported above includes impaired loans with a carrying value of $32.2 million that were reduced by specific valuation allowance allocations totaling $11.0 million based on collateral valuations utilizing Level 3 inputs. Fair values were based on third party appraisals, which are Level 3 inputs OREO Certain foreclosed assets, upon initial recognition, are recorded at fair value less estimated selling costs. At December 31, 2018 and 2017 , OREO had a carrying value of $79,000 and $11.7 million , respectively, with no specific valuation allowance. The fair value of OREO was computed based on third party appraisals, which are Level 3 valuation inputs. Fair Value of Financial Instruments GAAP requires disclosure of fair value information about financial instruments, whether or not recognized on the balance sheet, for which it is practical to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. This disclosure does not and is not intended to represent the fair value of the Company. A summary of the carrying amounts and estimated fair values of financial instruments is as follows: December 31, 2018 December 31, 2017 (in thousands) Carrying Amount Estimated Fair Value Carrying Estimated Financial assets: Level 1 inputs: Cash and cash equivalents $ 3,080,065 $ 3,080,065 $ 2,905,591 $ 2,905,591 Investment securities 10,262 10,262 5,460 5,460 Level 2 inputs: Investment securities 14,150 14,150 18,051 18,051 Loans held for sale 1,953,059 1,953,059 1,011,004 1,011,004 Derivative assets 21,806 21,806 16,719 16,719 Level 3 inputs: Investment securities 95,804 95,804 — — Loans held for sale 16,415 16,415 — — Loans held for investment, net 22,376,552 22,347,876 20,489,757 20,480,802 Financial liabilities: Level 2 inputs: Federal funds purchased 629,169 629,169 359,338 359,338 Customer repurchase agreements 12,005 12,005 5,702 5,702 Other borrowings 3,900,000 3,900,000 2,800,000 2,800,000 Subordinated notes 281,767 283,349 281,406 285,485 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 41,375 41,375 17,377 17,377 Level 3 inputs: Deposits 20,606,113 20,608,494 19,123,180 19,124,121 The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Investment Securities Within the investment securities portfolio, we hold equity securities related to our non-qualified deferred compensation plan that are valued using quoted market prices for identical equity securities in an active market, and are classified as Level 1 assets in the fair value hierarchy. The fair value of the remaining equity securities and residential mortgage-backed securities in our investment portfolio are based on prices obtained from independent pricing services that are based on quoted market prices for the same or similar securities, and are characterized as Level 2 assets in the fair value hierarchy. We have obtained documentation from our primary pricing service regarding their processes and controls applicable to pricing investment securities, and on a quarterly basis we independently verify the prices that we receive from the service provider using two additional independent pricing sources. We also hold tax-exempt asset-backed securities that are valued using a discounted cash flow model, which utilizes Level 3 inputs, and are classified as Level 3 assets in the fair value hierarchy. Loans Held for Sale Fair value for loans held for sale is derived from quoted market prices for similar loans, in which case they are characterized as Level 2 assets in the fair value hierarchy, or is derived from third party pricing models, in which case they are characterized as Level 3 assets in the fair value hierarchy. Derivatives The estimated fair value of interest rate swaps and caps is obtained from independent pricing services based on quoted market prices for similar derivative contracts and these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. On a quarterly basis, we independently verify the fair value using an additional independent pricing source. Foreign currency forward contracts are valued based upon quoted market prices obtained from independent pricing services for similar derivative contracts. As such, these financial instruments are characterized as Level 2 assets and liabilities in the fair value hierarchy. The derivative instruments related to the loans held for sale portfolio include loan purchase commitments and forward sales commitments. Loan purchase commitments are valued based upon the fair value of the underlying mortgage loans to be purchased, which is based on observable market data for similar loans. Forward sales commitments are valued based upon quoted market prices from brokers. As such, these loan purchase commitments and forward sales commitments are characterized as Level 2 assets or liabilities in the fair value hierarchy. |
Parent Company Only
Parent Company Only | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only | Parent Company Only Summarized financial information for Texas Capital Bancshares, Inc. – Parent Company Only are as follows: Balance Sheet December 31, (in thousands) 2018 2017 Assets Cash and cash equivalents $ 89,561 $ 144,635 Loans held for investment (net of unearned income) 7,500 7,500 Investment in subsidiaries 2,534,341 2,184,601 Other assets 87,451 86,300 Total assets $ 2,718,853 $ 2,423,036 Liabilities and Stockholders’ Equity Other liabilities $ 1,471 $ 1,244 Subordinated notes 108,614 108,513 Trust preferred subordinated debentures 113,406 113,406 Total liabilities 223,491 223,163 Preferred stock 150,000 150,000 Common stock 502 496 Additional paid-in capital 978,042 971,457 Retained earnings 1,366,308 1,077,500 Treasury stock (8 ) (8 ) Accumulated other comprehensive income 518 428 Total stockholders’ equity 2,495,362 2,199,873 Total liabilities and stockholders’ equity $ 2,718,853 $ 2,423,036 Statement of Earnings Year ended December 31, (in thousands) 2018 2017 2016 Interest on loans $ 3,398 $ 3,271 $ 3,250 Dividend income 10,400 10,400 10,400 Other income 142 108 90 Total income 13,940 13,779 13,740 Other non-interest income 7 13 152 Interest expense 12,031 10,908 10,525 Salaries and employee benefits 588 489 431 Legal and professional 2,020 1,700 1,429 Other non-interest expense 2,013 1,761 1,594 Total expense 16,652 14,858 13,979 Income (loss) before income taxes and equity in undistributed income of subsidiary (2,705 ) (1,066 ) (87 ) Income tax expense (benefit) (587 ) (371 ) (33 ) Income (loss) before equity in undistributed income of subsidiary (2,118 ) (695 ) (54 ) Equity in undistributed income of subsidiary 300,758 194,118 151,445 Net income 298,640 193,423 151,391 Preferred stock dividends 9,750 9,750 9,750 Net income available to common stockholders $ 288,890 $ 183,673 $ 141,641 Statements of Cash Flows Year ended December 31, (in thousands) 2018 2017 2016 Operating Activities Net income $ 298,640 $ 193,423 $ 151,391 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed income of subsidiary (300,758 ) (194,118 ) (151,445 ) Amortization 101 101 101 Increase in other assets (1,152 ) (739 ) (10 ) Excess tax benefits from stock-based compensation arrangements — — (2,013 ) Increase (decrease) in other liabilities 227 (40 ) 165 Net cash used in operating activities (2,942 ) (1,373 ) (1,811 ) Investing Activities Net increase in loans held for investment — (7,500 ) — Investments in and advances to subsidiaries (40,000 ) (55,000 ) (57,000 ) Net cash used in investing activities (40,000 ) (62,500 ) (57,000 ) Financing Activities Proceeds from sale of stock related to stock-based awards (2,382 ) (2,241 ) (2,481 ) Proceeds from sale of common stock — — 236,467 Preferred dividends paid (9,750 ) (9,750 ) (9,750 ) Excess tax benefits from stock-based compensation arrangements — — 2,013 Net cash provided by (used in) financing activities (12,132 ) (11,991 ) 226,249 Net increase (decrease) in cash and cash equivalents (55,074 ) (75,864 ) 167,438 Cash and cash equivalents at beginning of year 144,635 220,499 53,061 Cash and cash equivalents at end of year $ 89,561 $ 144,635 $ 220,499 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During 2018 and 2017, we have had transactions with our directors, executive officers and their affiliates and our employees. These transactions were made in the ordinary course of business and include extensions of credit and deposit transactions. The Bank had approximately $13.5 million in deposits from related parties, including directors, stockholders and their affiliates at both December 31, 2018 and 2017 . In February 2018, the Bank signed an agreement with Total System Services, Inc. ("TSYS"), under which TSYS will provide transaction processing services to the Bank in exchange for a fee, estimated to be $400,000 to $600,000 per year. A member of the Company’s board of directors, is the Senior Executive Vice President and Chief Information Officer of TSYS. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table: December 31, 2018 December 31, 2017 Estimated Fair Value Estimated Fair Value (in thousands) Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,579,328 $ 7,978 $ 16,719 $ 1,393,764 $ 4,736 $ 15,482 Commercial loan/lease interest rate caps 606,950 1,109 4 242,700 421 7 Foreign currency forward contracts 39,737 2,263 59 2,466 4 69 Customer counterparties: Commercial loan/lease interest rate swaps 1,579,328 16,719 7,978 1,393,764 15,482 4,736 Commercial loan/lease interest rate caps 606,950 4 1,109 242,700 7 421 Foreign currency forward contracts 39,737 59 2,263 2,466 69 4 Economic hedging interest rate derivatives: Loan purchase commitments 167,984 1,442 6 253,815 635 190 Forward sale commitments 1,928,527 — 21,005 1,086,224 — 1,103 Gross derivatives 29,574 49,143 21,354 22,012 Offsetting derivative assets/liabilities (7,768 ) (7,768 ) (4,635 ) (4,635 ) Net derivatives included in the consolidated balance sheets $ 21,806 $ 41,375 $ 16,719 $ 17,377 The weighted-average receive and pay interest rates for interest rate swaps outstanding were as follows: December 31, 2018 Weighted-Average Interest Rate December 31, 2017 Weighted-Average Interest Rate Received Paid Received Paid Non-hedging interest rate swaps 4.24 % 4.20 % 3.59 % 4.34 % The weighted-average strike rate for outstanding interest rate caps was 3.20% at December 31, 2018 and 2.40% at December 31, 2017 . Our credit exposure on derivative instruments is limited to the net favorable value and interest payments by each counterparty. In some cases collateral may be required from the counterparties involved if the net value of the derivative instruments exceeds a nominal amount. Our credit exposure associated with these instruments, net of any collateral pledged, was approximately $18.7 million at December 31, 2018 and approximately $16.7 million at December 31, 2017 . Collateral levels are monitored and adjusted on a regular basis for changes in interest rate swap and cap values, as well as for changes in the value of forward sale commitments. At December 31, 2018 , we had $25.3 million in cash collateral pledged for these derivatives, of which $11.2 million was included in interest-bearing deposits in other banks and $14.1 million was included in accrued interest receivable and other assets. At December 31, 2017 , we had $15.2 million in cash collateral pledged for these derivatives, of which $14.0 million was included in interest-bearing deposits and $1.2 million was included in accrued interest receivable and other assets. We also enter into credit risk participation agreements with financial institution counterparties for interest rate swaps related to loans in which we are either a participant or a lead bank. The risk participation agreements entered into by us as a participant bank provide credit protection to the financial institution counterparty should the borrower fail to perform on its interest rate derivative contract with that financial institution. We are party to 13 risk participation agreements where we are a participant bank with a notional amount of $149.1 million at December 31, 2018 , compared to 15 risk participation agreements having a notional amount of $157.1 million at December 31, 2017 . The maximum estimated exposure to these agreements, assuming 100% default by all obligors, was approximately $1.5 million at December 31, 2018 and $221,000 at December 31, 2017 . The fair value of these exposures was insignificant to the consolidated financial statements at both December 31, 2018 and December 31, 2017 . Risk participation agreements entered into by us as the lead bank provide credit protection to us should the borrower fail to perform on its interest rate derivative contract with us. We are party to 9 risk participation agreements where we are the lead bank having a notional amount of $114.8 million at December 31, 2018 , compared to 10 agreements having a notional amount of $86.3 million at December 31, 2017 . |
Stockholder's Equity
Stockholder's Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity On December 2, 2016, we completed a sale of 3.45 million shares of our common stock in a public offering. Net proceeds from the sale totaled $236.4 million . The additional equity was used for general corporate purposes, including repayment of $20.0 million of short-term debt and as additional capital to support continued loan growth. |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | Quarterly Financial Data (unaudited) The tables below summarize our quarterly financial information: 2018 Selected Quarterly Financial Data (in thousands, except per share data) Fourth Third Second First Interest income $ 321,718 $ 301,754 $ 286,852 $ 253,869 Interest expense 81,045 69,579 55,140 43,569 Net interest income 240,673 232,175 231,712 210,300 Provision for credit losses 35,000 13,000 27,000 12,000 Net interest income after provision for credit losses 205,673 219,175 204,712 198,300 Non-interest income 15,280 25,518 17,279 19,947 Non-interest expense 129,862 136,143 132,131 126,960 Income before income taxes 91,091 108,550 89,860 91,287 Income tax expense 19,200 22,998 18,424 19,342 Net income 71,891 85,552 71,436 71,945 Preferred stock dividends 2,437 2,438 2,437 2,438 Net income available to common stockholders $ 69,454 $ 83,114 $ 68,999 $ 69,507 Basic earnings per share: $ 1.38 $ 1.66 $ 1.39 $ 1.40 Diluted earnings per share: $ 1.38 $ 1.65 $ 1.38 $ 1.38 2017 Selected Quarterly Financial Data (in thousands, except per share data) Fourth Third Second First Interest income $ 249,519 $ 237,643 $ 208,191 $ 183,946 Interest expense 38,870 33,282 25,232 20,587 Net interest income 210,649 204,361 182,959 163,359 Provision for credit losses 2,000 20,000 13,000 9,000 Net interest income after provision for credit losses 208,649 184,361 169,959 154,359 Non-interest income 19,374 19,003 18,769 17,110 Non-interest expense 133,138 114,830 111,814 106,094 Income before income taxes 94,885 88,534 76,914 65,375 Income tax expense 50,143 29,850 25,819 22,833 Net income 44,742 58,684 51,095 42,542 Preferred stock dividends 2,437 2,438 2,437 2,438 Net income available to common stockholders $ 42,305 $ 56,246 $ 48,658 $ 40,104 Basic earnings per share: $ 0.85 $ 1.13 $ 0.98 $ 0.81 Diluted earnings per share: $ 0.84 $ 1.12 $ 0.97 $ 0.80 |
New Accounting Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Standards | New Accounting Standards ASU 2018-15 "Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40 - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract" ("ASU 2018-15") aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). ASU 2018-15 will be effective for us on January 1, 2020 and is not expected to have an impact on our consolidated financial statements as we currently apply this guidance in practice. ASU 2018-13 "Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13") removes the requirement to disclose the amount of and reasons for transfers between Level 1 and Level 2 fair value measurement methodologies, the policy for timing of transfers between levels and the valuation processes for Level 3 fair value measurements. It also adds a requirement to disclose changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. For certain unobservable inputs, entities may disclose other quantitative information in lieu of the weighted average if the other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for us on January 1, 2020. We are evaluating the impact adoption will have on our disclosures. ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" ("ASU 2016-13") requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. ASU 2016-13 will be effective for us on January 1, 2020. We are evaluating the impact adoption of ASU 2016-13 will have on our consolidated financial statements and disclosures. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption could be significantly influenced by the composition, characteristics and quality of our loan portfolio as well as the prevailing economic conditions and forecasts as of the adoption date. As part of our evaluation process, we have established a steering committee and working group that includes individuals from various functional areas to assess processes, portfolio segmentation, systems requirements and needed resources to implement this new accounting standard. ASU 2016-02 " Leases (Topic 842) " ("ASU 2016-02") requires that lessees and lessors recognize lease assets and lease liabilities on the balance sheet and disclose key information about leasing arrangements. ASU 2016-02 was effective for us on January 1, 2019. ASU 2016-02 provides for a modified retrospective transition approach requiring lessees to recognize and measure leases on the balance sheet at the beginning of either the earliest period presented or as of the beginning of the period of adoption with the option to elect certain practical expedients. We have elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and will not restate comparative periods. We also expect to elect certain optional practical expedients. We have implemented a third party software solution to assist with the accounting under the new standard. Our operating leases relate primarily to office space and bank branches. Based on our lease portfolio as of December 31, 2018, we anticipate recognizing a lease liability on our balance sheet of approximately $75 million with an offsetting right-of-use asset net of lease incentives, with an immaterial impact on our income statement compared to the current lease accounting model. |
Operations and Summary of Sig_2
Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business Texas Capital Bancshares, Inc. (the "Company”), a Delaware corporation, was incorporated in November 1996 and commenced banking operations in December 1998. The consolidated financial statements of the Company include the accounts of Texas Capital Bancshares, Inc. and its wholly owned subsidiary, Texas Capital Bank, National Association (the "Bank”). We serve the needs of commercial businesses and successful professionals and entrepreneurs located in Texas as well as operate several lines of business serving a regional or national clientele of commercial borrowers. We are primarily a secured lender, with the majority of our loans held for investment, excluding mortgage finance loans and other national lines of business, being made to businesses headquartered or with operations in Texas. |
Basis of Presentation | Basis of Presentation Our accounting and reporting policies conform to accounting principles generally accepted in the United States ("GAAP") and to generally accepted practices within the banking industry. Certain prior period balances have been reclassified to conform to the current period presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The allowance for loan losses, the fair value of financial instruments and the status of contingencies are particularly susceptible to significant change. |
Basic and Diluted Earnings Per Common Share | Basic and Diluted Earnings Per Common Share Basic earnings per common share is based on net income available to common stockholders divided by the weighted-average number of common shares outstanding during the period excluding non-vested stock. Diluted earnings per common share include the dilutive effect of stock options and non-vested stock awards granted using the treasury stock method. A reconciliation of the weighted-average shares used in calculating basic earnings per common share and the weighted average common shares used in calculating diluted earnings per common share for the reported periods is provided in Note 2 — Earnings Per Share. |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income Unrealized gains or losses on our available-for-sale debt securities (after applicable income tax expense or benefit) are included in accumulated other comprehensive income (loss), net ("AOCI"). AOCI is reported in the accompanying consolidated statements of stockholders’ equity and consolidated statements of income and other comprehensive income. GAAP does not permit the adjustment of tax amounts in AOCI for changes in tax rates, the effects become stranded in AOCI. Stranded tax effects caused by the revaluation of deferred taxes resulting from the newly enacted corporate tax rate in the Tax Cuts and Jobs Act (the "Tax Act") are reclassified from AOCI to retained earnings in accordance with our early adoption of ASU 2018-02 Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income." |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include amounts due from banks, interest-bearing deposits in other banks, Federal funds sold and securities purchased under resale agreements. |
Investment Securities | Investment Securities Investment securities include available-for-sale debt securities and equity securities at fair value. Debt Securities Debt securities are classified as trading, available-for-sale or held-to-maturity. Management classifies securities at the time of purchase and re-assesses such designation at each balance sheet date; however, transfers between categories from this re-assessment are rare. Trading Account Debt securities acquired for resale in anticipation of short-term market movements are classified as trading, with realized and unrealized gains and losses recognized in income. To date, we have not had any activity in our trading account. Held-to-Maturity Debt securities are classified as held to maturity when we have the positive intent and ability to hold the securities to maturity. Held-to-maturity securities are stated at amortized cost. Debt securities not classified as held-to-maturity or trading are classified as available-for-sale. Available-for-Sale Available-for-sale debt securities are stated at fair value, with the unrealized gains and losses reported as a separate component of AOCI, net of tax. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity, or in the case of mortgage-backed securities, over the estimated life of the security. Such amortization and accretion is included in interest income from securities. Realized gains and losses and declines in value judged to be other-than-temporary are included in gain (loss) on sale of securities. The cost of securities sold is based on the specific identification method. All debt securities are available-for-sale as of December 31, 2018 and 2017 . Equity Securities Beginning January 1, 2018, upon adoption of ASU 2016-01, equity securities with readily determinable fair values are stated at fair value with realized and unrealized gains and losses reported in income. For periods prior to January 1, 2018, equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses reported as a separate component of AOCI, net of tax. Equity securities without readily determinable fair values are recorded at cost less any impairment, if any. |
Loans | Loans Loans Held for Sale Through our mortgage correspondent aggregation ("MCA") program, we commit to purchase residential mortgage loans from independent correspondent lenders and deliver those loans into the secondary market via whole loan sales to independent third parties or in securitization transactions to third parties such as Ginnie Mae or to GSEs such as Fannie Mae or Freddie Mac. In some cases, we retain the mortgage servicing rights. Once purchased, these loans are classified as held for sale and are carried at fair value pursuant to our election of the fair value option in accordance with Accounting Standards Codification ("ASC") 825, Financial Instruments . At the commitment date, we enter into a corresponding forward sale commitment with a third party, typically Ginnie Mae or a GSE, to deliver the loans within a specified timeframe. The estimated gain/loss for the entire transaction (from initial purchase commitment to final delivery of loans) is recorded as an asset or liability. The fair value of loans held for sale is derived from observable current market prices, when available, and includes the fair value of the mortgage servicing rights. Adjustments to reflect unrealized gains and losses resulting from changes in fair value and realized gains and losses upon ultimate sale of the loans are classified as gain/(loss) on sale of loans held for sale in the consolidated statements of income and other comprehensive income. Residential mortgage loans held for sale are subject to both credit and interest rate risk. Credit risk is managed through underwriting policies and procedures, including collateral requirements, which are generally accepted by the secondary loan markets. Exposure to interest rate fluctuations is partially managed through forward sales contracts, which set the price for loans that will be delivered in the next 60 to 90 days. Pursuant to Ginnie Mae servicing guidelines, we have the unilateral right, but not the obligation, to repurchase certain delinquent loans securitized in Ginnie Mae pools, if they meet defined delinquent loan criteria. Once the delinquency criteria have been met, and regardless of whether the repurchase option has been exercised, we account for these loans as if they had been repurchased and recognize the loans and a corresponding liability as held for sale and other liabilities, respectively, in the consolidated balance sheets. If the loans are actually repurchased, the liability is cash settled and the loans continue to be reported as held for sale. As an approved lender, we may collect losses incurred on repurchased loans through a claims process with the government agency. From time to time we hold for sale the guaranteed portion of Small Business Administration 7(a) loans, which are carried at lower of cost or market. Loans Held for Investment Loans held for investment (including financing leases) are stated at the amount of unpaid principal reduced by deferred income (net of costs). Interest on loans is recognized using the simple-interest method on the daily balances of the principal amounts outstanding. Loan origination fees, net of direct loan origination costs, and commitment fees, are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. A loan held for investment is considered impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral, less cost to sell. Impaired loans, or portions thereof, are charged off when a confirmed loss exists. Restructured loans are loans on which, due to the borrower’s financial difficulties, we have granted a concession that we would not otherwise consider for borrowers of similar credit quality. This may include a transfer of real estate or other assets from the borrower, a modification of loan terms, or a combination of the two. Modifications of terms that could potentially qualify as a restructuring include reduction of contractual interest rate, extension of the maturity date at a contractual interest rate lower than the current rate for new debt with similar risk, or a reduction of the face amount of debt, or forgiveness of either principal or accrued interest. A loan continues to qualify as restructured until a consistent payment history or change in borrower’s financial condition has been evidenced, generally no less than twelve months. Assuming that the restructuring agreement specifies an interest rate at the time of the restructuring that is greater than or equal to the rate that we are willing to accept for a new extension of credit with comparable risk, then the loan no longer has to be considered a restructuring if it is in compliance with modified terms in calendar years after the year of the restructure. The accrual of interest on loans is discontinued when there is a clear indication that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan is 90 days past due. When a loan is placed on non-accrual status, all previously accrued and unpaid interest is reversed. Interest income is subsequently recognized on a cash basis as long as the remaining book balance of the asset is deemed to be collectible. If collectability is questionable, then cash payments are applied to principal. A loan is placed back on accrual status when both principal and interest are current and it is probable that we will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement. Loans held for investment includes legal ownership interests in mortgage loans that we purchase through our mortgage warehouse lending division. The ownership interests are purchased from unaffiliated mortgage originators who are seeking additional funding through sale of the undivided ownership interests to facilitate their ability to originate loans. The mortgage originator has no obligation to offer and we have no obligation to purchase these interests. The originator closes mortgage loans consistent with underwriting standards established by approved investors, and, at the time of the sale to the investor, our ownership interest and that of the originator are delivered by us to the investor selected by the originator and approved by us. We typically purchase up to a 99% ownership interest in each mortgage with the originator owning the remaining percentage. These mortgage ownership interests are generally held by us for a period of less than 30 days and more typically 10-20 days. Because of conditions in agreements with originators designed to reduce transaction risks, under ASC 860, Transfers and Servicing of Financial Assets (“ASC 860”), the ownership interests do not qualify as participating interests. Under ASC 860, the ownership interests are deemed to be loans to the originators and payments we receive from investors are deemed to be payments made by or on behalf of the originator to repay the loan deemed made to the originator. Because we have an actual, legal ownership interest in the underlying residential mortgage loan, these interests are extensions of credit to the originators that are secured by the mortgage loans as collateral. Due to market conditions or events of default by the investor or the originator, we could be required to purchase the remaining interests in the mortgage loans and hold them beyond the expected 10-20 days. Mortgage loans acquired under these conditions would require mark-to-market adjustments to income and could require future allocations of the allowance for loan losses or be subject to charge off in the event the loans become impaired. Mortgage loan interests purchased and disposed of as expected receive no allocation of the allowance for loan losses due to the minimal loss experience with these assets. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is comprised of general reserves, specific reserves for impaired loans and an additional qualitative reserve, all based on our estimate of losses inherent in the portfolio at the balance sheet date, but not yet identified with specified loans. In order to determine the allowance for loan losses, all loans are assigned a credit grade. Loan commitments graded substandard or worse and greater than $500,000 are specifically reviewed for loss potential. Loans deemed to be impaired, as well as restructured loans and loans formerly reported as restructured, are assigned a specific reserve based on the losses expected to be realized from those loans. For purposes of determining the general reserve, the remainder of the portfolio is segregated by product types to recognize differing risk profiles among portfolio segments, and then further segregated by credit grades. Each credit grade is assigned a risk factor, or reserve allocation percentage. These risk factors are multiplied by the outstanding principal balance of each loan and risk-weighted by product type to calculate a required reserve. A similar process is employed to calculate a reserve assigned to off-balance sheet commitments, specifically unfunded loan commitments and letters of credit, and any needed reserve is recorded in other liabilities. Even though portions of the allowance may be allocated to specific loans, the entire allowance is available for any credit that, in management’s judgment, should be charged off. We have several pass credit grades that are assigned to loans based on varying levels of risk, ranging from credits that are secured by cash or marketable securities, to watch credits which have all the characteristics of an acceptable credit risk but warrant more than the normal level of monitoring. Within our criticized/classified credit grades are special mention, substandard, and doubtful. Special mention loans are those that are currently protected by the sound worth and paying capacity of the borrower, but that are potentially weak and constitute an additional credit risk. These loans have the potential to deteriorate to a substandard grade due to the existence of financial or administrative deficiencies. Substandard loans have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that we will sustain some loss if the deficiencies are not corrected. Some substandard loans are inappropriately protected by sound worth and paying capacity of the borrower and of the collateral pledged and may be considered impaired. Substandard loans can be accruing or can be on non-accrual depending on the circumstances of the individual loans. Loans classified as doubtful have all the weaknesses inherent in substandard loans with the added characteristics that the weaknesses make collection or liquidation in full highly questionable and improbable. The possibility of loss is extremely high. All doubtful loans are on non-accrual. The allowance allocation percentages assigned to each credit grade have been developed based primarily on an analysis of our historical loss rates. The level of the allowance reflects management’s continuing evaluation of conditions likely to impact the amount of losses expected to be incurred in the Bank’s loan portfolio. Such conditions include, without limitation, credit quality indicators such as amounts and percentages of loans classified as past due, criticized and non-performing, conditions internal to the Bank such as the skill and experience of lending and credit personnel and effectiveness of credit review processes, the rate of portfolio growth, the extent of hold limits and loan concentrations, such as loans to specific borrowers, loans to groups of affiliated borrowers, loans to borrowers in defined industry groups and loans to borrowers, and collateral, in defined geographic locations. Conditions external to the Bank that may impact incurred losses that are also considered by management in the evaluation of the allowance include the general health of the national economy and regional economies where the Bank operates, international economic conditions, domestic and international political events that may impact the Bank’s loan portfolio, regulatory developments deemed relevant to risk assessment and classification of credits and circumstances that may have negative consequences for industries or specific borrowers where the Bank has exposure. Management’s assessment of the allowance begins with a review of historical credit loss experience as a baseline before consideration of current environmental issues both internal and external to the Bank that might reasonably cause the measure of incurred loss to differ from historical experience. The Bank’s allowance methodology employs a loss migration technique to determine historical loss percentages applicable to all defined credit risk grades. The methodology also calculates historical loss percentages by portfolio segment and computes segment weights as a measure of the relative risk of loans in each segment compared to the entire portfolio. These processes allow for a continuous review of not only absolute historical loss percentages but also an assessment of credit risk grade migration, positive and negative, and changes in portfolio composition as defined by portfolio segment. Management has identified certain measures that are believed to offer guidance as leading, concurrent and trailing indicators respectively of general economic health that in turn are thought to be relevant to the measure of incurred loss in the Bank’s loan portfolio. These together with other internal and external risk elements have been individually quantified and collectively compiled into an aggregate range of adjustment from which management selects a single qualitative factor ("Q Factor"). This Q Factor is added or subtracted from historical loss rates, as relevant, to compute an appropriate reserve based upon actual portfolio composition as defined by portfolio segment and credit risk grade composition. By compiling identified risk elements into a range of possible adjustment and selection by management of a single factor from the range, management minimizes the risk of over-adjusting historical loss rates for changes in multiple contributing elements that may individually be signaling the same change in incurred loss. The specific Q Factor adjustment and application of any management overlay to model calculated segment weights reflects management’s determination that the allowance model is calculating an appropriate level of the allowance in the context of all known loan portfolio quality and concentration issues as well as other environmental factors that are reasonably believed to cause the measure of incurred loss, inclusive of unidentified losses inherent in the current portfolio, to differ from historical experience. Because credit risk grade migration, both positive and negative, can significantly trail triggering events such as change in economic conditions, commodity prices or interest rates or changes in collateral values or changes in regulatory interpretation or application of laws or standards impacting the Bank’s lending activities, management’s interpretation of the collective impact of all such issues on incurred loss guides management’s selection of an appropriate Q Factor adjustment. The additional qualitative reserve component of the allowance that is not derived by the allowance allocation percentages compensates for the uncertainty and complexity in estimating loan and lease losses associated with circumstances or events that are out of the ordinary, not predictable in amount or frequency or not reasonably correlated with either past experience and/or general economic conditions. Examples of such events include natural disasters such as hurricanes and borrower fraud through act or omission in delivery of accurate financial reporting or certification of collateral value. These situations, while not common, do not necessarily correlate well with historical loss trends or general economic conditions. Our methodology used to calculate the allowance considers historical losses, however, the historical loss rates for specific product types or credit risk grades may not fully incorporate the effects of such unpredictable events. The methodology used in the periodic review of the appropriateness of the allowance, which is performed at least quarterly, is designed to be dynamic and responsive to changes in portfolio credit quality. Changes are reflected in the general allowance, in specific reserves as the collectability of classified loans is evaluated with new information and in the additional qualitative reserve. As our portfolio has matured, historical loss ratios have been closely monitored. Our reserve appropriateness relies primarily on our loss history, supplemented by our additional qualitative reserve. The review of the appropriateness of the allowance is performed by executive management and presented to the audit and risk committees of our board of directors for their review. The committees report to the board as part of the board's review on a quarterly basis of the Company's consolidated financial statements. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (“OREO”), which is included in other assets on the consolidated balance sheet, consists of real estate that has been foreclosed. When foreclosure occurs, the acquired asset is recorded at fair value less selling costs, generally based on appraised value, which may result in partial charge-off of the loan through a charge to the allowance for loan losses, if necessary. Subsequent write-downs required for declines in value are recorded through a valuation allowance, or taken directly to the asset, and are recorded in allowance and other carrying costs for OREO in the consolidated statements of income and other comprehensive income. Gains or losses on sale of OREO are recorded in other non-interest income in the consolidated statements of income and other comprehensive income. |
Mortgage Servicing Rights | Mortgage Servicing Rights, Net Mortgage servicing rights ("MSRs") are created by selling mortgage loans with servicing rights retained. We identify classes of servicing rights based upon the nature of the underlying assumptions used to value the asset along with the risks associated with the underlying asset. Based upon these criteria we have one class of MSRs, residential. MSRs are recognized based on the estimated fair value of the mortgage loans and the related servicing rights at the date of sale using values derived from a valuation model. MSRs are reported on the consolidated balance sheets at amortized cost, less a valuation allowance if the fair value of identified strata within the MSR portfolio are determined to have a fair value that is less than amortized cost. MSRs are amortized proportionally over the estimated life of the projected net servicing revenue and are periodically evaluated for impairment. Loan servicing fee income represents income earned for servicing mortgage loans owned by investors and includes mortgage servicing fees and other ancillary servicing income. Servicing fees are recorded as income when earned and are reported in non-interest income on the consolidated statements of income and other comprehensive income. MSR valuation allowance expense and servicing related expenses are recorded in servicing related expenses in the consolidated statements of income and other comprehensive income. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets, Net Intangible assets are acquired assets that lack physical substance but can be distinguished from goodwill because of contractual or other legal rights or because the asset is capable of being sold or exchanged either on its own or in combination with a related contract, asset, or liability. Our intangible assets relate primarily to loan customer relationships purchased as part of business acquisitions. Intangible assets with definite useful lives are amortized over their estimated life. Goodwill and intangible assets are tested for impairment at least annually or whenever changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Premises and Equipment | Premises and Equipment, Net Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Furniture and equipment is generally depreciated over three to five years , while leasehold improvements are generally depreciated over the term of their respective lease. Gains or losses on disposals of premises and equipment are included in other non-interest income in the consolidated statements of income and other comprehensive income. |
Software | Software Costs incurred in connection with development or purchase of internal use software and cloud computing arrangements, including an in-substance software license, are capitalized. Amortization is computed on a straight-line basis over the estimated useful life of the asset, which generally range from one to five years . Capitalized internal use software is included in other assets in the consolidated balance sheets. |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The Company has undertaken certain guarantee obligations in the ordinary course of business which include liabilities with off-balance sheet risk. We consider the following arrangements to be guarantees: commitments to extend credit, standby letters of credit and indemnification agreements included within third party contractual arrangements. The Bank is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit that involve varying degrees of credit risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the borrower. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. In conjunction with the sale and securitization of loans held for sale, we may be exposed to liability resulting from recourse agreements and repurchase agreements. If it is determined subsequent to our sale of a loan that the loan sold is in breach of the representations or warranties made in the applicable sale agreement, we may have an obligation to either (a) repurchase the loan for the unpaid principal balance, accrued interest and related advances, (b) indemnify the purchaser against any loss it suffers or (c) make the purchaser whole for the economic benefits of the loan. Our repurchase, indemnification and make whole obligations vary based upon the terms of the applicable agreements, the nature of the asserted breach and the status of the mortgage loan at the time a claim is made. We establish reserves for estimated losses of this nature inherent in the origination of mortgage loans by estimating the losses inherent in the population of all loans sold based on trends in claims and actual loss severities experienced. The reserve will include accruals for probable contingent losses in addition to those identified in the pipeline of claims received. The estimation process is designed to include amounts based on actual losses experienced from actual activity. |
Revenue Recognition | Revenue Recognition ASC 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, letters of credit, derivatives and investment securities, as well as revenue related to our mortgage servicing activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: • Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. • Wealth management and trust fee income - this represents monthly fees due from wealth management customers as consideration for managing the customers' assets. Wealth management and trust services include custody of assets, investment management, escrow services, fees for trust services and similar fiduciary activities. Revenue is recognized when our performance obligation is completed each month, which is generally the time that payment is received. Also included are fees received from a third party broker-dealer as part of a revenue-sharing agreement for fees earned from customers that we refer to the third party. These fees are paid to us by the third party on a quarterly basis and recognized ratably throughout the quarter as our performance obligation is satisfied. • Brokered loan fees - these represent fees for the administration and funding of purchased mortgage loan interests as well as facility renewal and application fees received from mortgage originator customers in our warehouse lending business. Also included are fees received from independent correspondent mortgage lenders as consideration for our purchase of individual residential mortgage loans through our MCA business. Revenue related to the warehouse lending business is recognized when the related loan interest is disposed (i.e., through sale or payoff) or upon receipt of the facility renewal or application. Revenue related to our MCA business is recognized at the time a loan is purchased. • Other non-interest income primarily includes items such as letter of credit fees, bank owned life insurance income, dividends on FHLB and FRB stock and other general operating income, none of which are subject to the requirements of ASC 606. |
Stock-based Compensation | Stock-based Compensation We account for all stock-based compensation transactions in accordance with ASC 718, Compensation — Stock Compensation (“ASC 718”), which requires that stock compensation transactions be recognized as compensation expense in the consolidated statement of income and other comprehensive income based on their fair values on the measurement date, which is the date of the grant. |
Income Taxes | Income Taxes The Company and its subsidiary file a consolidated federal income tax return. We utilize the liability method in accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based upon the difference between the values of the assets and liabilities as reflected in the financial statements and their related tax basis using enacted tax rates in effect for the year in which the differences are expected to be recovered or settled. As changes in tax law or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. A valuation allowance is provided against deferred tax assets unless it is more likely than not that such deferred tax assets will be realized. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value under GAAP and enhances disclosures about fair value measurements. In general, fair values of financial instruments are based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. |
Derivative Financial Instruments | Derivative Financial Instruments All contracts that satisfy the definition of a derivative are recorded at fair value in other assets and other liabilities in the consolidated balance sheets. We record the derivatives on a net basis when a right of offset exists, based on transactions with a single counterparty that are subject to a legally enforceable master netting agreement. We enter into interest rate derivative contracts that are not designated as hedging instruments. These derivative positions relate to transactions in which we enter into an interest rate swap, cap and/or floor with a customer while at the same time entering into an offsetting interest rate swap, cap and/or floor with another financial institution. In connection with each swap transaction, we agree 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, we agree 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. The transaction allows our customer to effectively convert a variable rate loan to a fixed rate. Because we act as an intermediary for our customer, changes in the fair value of the underlying derivative contracts substantially offset each other and do not have a material impact on our results of operations. We also enter into foreign currency forward contracts that are not designed as hedging instruments. These derivative instruments relate to transactions in which we enter into a contract with a customer to buy or sell a foreign currency at a future date for a specified price while at the same time entering into an offsetting contract with a financial institution to buy or sell the same currency at the same future date for a specified price. These transactions allow our customers to manage their exposure to foreign currency exchange rate fluctuations. Because we act as an intermediary for our customer, changes in the fair value of the underlying derivative instruments substantially offset each other and do not have a material impact on our results of operations. We also enter into loan purchase commitment contracts with mortgage originators to purchase residential mortgage loans at a future date, as well as forward sales commitment contracts to sell residential mortgage loans at a future date as part of our MCA program. The objective of these transactions is to mitigate our exposure to interest rate risk associated with the purchase of mortgage loans held for sale. Any changes in fair value are recorded in other non-interest expense in the consolidated statements of income and other comprehensive income. |
Segment Reporting | Segment Reporting We have determined that all of our lending divisions and subsidiaries meet the aggregation criteria of ASC 280, Segment Reporting , since all offer similar products and services, operate with similar processes, have similar customers and are collectively reviewed by the chief operating decision maker. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |
Summary of securities | The following is a summary of available-for-sale debt securities: (in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value December 31, 2018 Available-for-sale debt securities: Residential mortgage-backed securities $ 6,874 $ 368 $ — $ 7,242 Tax-exempt asset-backed securities 95,518 286 — 95,804 $ 102,392 $ 654 $ — $ 103,046 December 31, 2017 Available-for-sale debt securities: Residential mortgage-backed securities $ 10,297 $ 648 $ — $ 10,945 |
Schedule of amortized cost and estimated fair value of securities | The amortized cost and estimated fair value of available-for-sale debt securities are presented below by contractual maturity: (in thousands, except percentage data) Less Than One Year After One Through Five Years After Five Through Ten Years After Ten Years Total December 31, 2018 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ 3 $ 1,573 $ — $ 5,298 $ 6,874 Estimated fair value 4 1,668 — 5,570 7,242 Weighted average yield(3) 6.50 % 5.54 % — % 4.53 % 4.76 % Tax-exempt asset-backed securities:(1) Amortized Cost — — — 95,518 95,518 Estimated fair value — — — 95,804 95,804 Weighted average yield(2)(3) — % — % — % 4.25 % 4.25 % Total available-for-sale debt securities: Amortized cost $ 102,392 Estimated fair value $ 103,046 December 31, 2017 Available-for-sale: Residential mortgage-backed securities:(1) Amortized cost $ 409 $ 819 $ 1,502 $ 7,567 $ 10,297 Estimated fair value 418 916 1,636 7,975 10,945 Weighted average yield(3) 4.59 % 6.02 % 5.32 % 3.45 % 3.97 % (1) Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without prepayment penalties. (2) Yields have been adjusted to a tax equivalent basis assuming a 21% federal tax rate. (3) Yields are calculated based on amortized cost. |
Summary of unrealized and realized gains/(losses) recognized in net income on equity securities | The following is a summary of unrealized and realized gains/(losses) recognized in net income on equity securities: Year Ended (in thousands) Net gains/(losses) recognized during the period $ (975 ) Less: Realized net gains/(losses) recognized during the period on equity securities sold 460 Unrealized net gains/(losses) recognized during the period on equity securities still held $ (1,435 ) |
Loans Held for Investment and_2
Loans Held for Investment and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of loans held for investments | Loans held for investment are summarized by portfolio segment as follows: December 31, (in thousands) 2018 2017 Commercial $ 10,373,288 $ 9,189,811 Mortgage finance 5,877,524 5,308,160 Construction 2,120,966 2,166,208 Real estate 3,929,117 3,794,577 Consumer 63,438 48,684 Equipment leases 312,191 264,903 Gross loans held for investment 22,676,524 20,772,343 Deferred income (net of direct origination costs) (108,450 ) (97,931 ) Allowance for loan losses (191,522 ) (184,655 ) Total loans held for investment, net $ 22,376,552 $ 20,489,757 |
Schedule of the credit risk profile of loan portfolio by internally assigned grades and nonaccrual status | The following tables summarize the credit risk profile of our loans held for investment by internally assigned grades and non-accrual status: (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Total December 31, 2018 Grade: Pass $ 10,034,597 $ 5,877,524 $ 2,099,955 $ 3,850,811 $ 61,815 $ 309,775 $ 22,234,477 Special mention 120,531 — 21,011 47,644 — 2,223 191,409 Substandard-accruing 140,297 — — 28,205 1,568 193 170,263 Non-accrual 77,863 — — 2,457 55 — 80,375 Total loans held for investment $ 10,373,288 $ 5,877,524 $ 2,120,966 $ 3,929,117 $ 63,438 $ 312,191 $ 22,676,524 December 31, 2017 Grade: Pass $ 8,967,471 $ 5,308,160 $ 2,152,654 $ 3,706,541 $ 48,591 $ 249,865 $ 20,433,282 Special mention 19,958 — 13,554 53,652 — 495 87,659 Substandard-accruing 102,651 — — 32,671 93 14,543 149,958 Non-accrual 99,731 — — 1,713 — — 101,444 Total loans held for investment $ 9,189,811 $ 5,308,160 $ 2,166,208 $ 3,794,577 $ 48,684 $ 264,903 $ 20,772,343 |
Schedule of activity in the reserve for loan losses by portfolio segment | Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. (in thousands) Commercial Mortgage Finance Construction Real Estate Consumer Equipment Leases Additional Qualitative Reserve Total Year ended December 31, 2018 Allowance for loan losses: Beginning balance $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Provision for loan losses 87,860 — (31 ) (1,003 ) 397 (1,427 ) (1,159 ) 84,637 Charge-offs 79,692 — — — 767 319 — 80,778 Recoveries 2,468 — — 69 438 33 — 3,008 Net charge-offs (recoveries) 77,224 — — (69 ) 329 286 — 77,770 Ending balance $ 129,442 $ — $ 19,242 $ 33,353 $ 425 $ 1,829 $ 7,231 $ 191,522 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 8,252 $ — $ — $ 48 $ 10 $ — $ — $ 8,310 Loans collectively evaluated for impairment 121,190 — 19,242 33,305 415 1,829 7,231 183,212 Total $ 129,442 $ — $ 19,242 $ 33,353 $ 425 $ 1,829 $ 7,231 $ 191,522 Period end loans allocated to: Loans individually evaluated for impairment $ 78,428 $ — $ — $ 8,857 $ 55 $ — $ — $ 87,340 Loans collectively evaluated for impairment 10,294,860 5,877,524 2,120,966 3,920,260 63,383 312,191 — 22,589,184 Total $ 10,373,288 $ 5,877,524 $ 2,120,966 $ 3,929,117 $ 63,438 $ 312,191 $ — $ 22,676,524 Year ended December 31, 2017 Allowance for loan losses: Beginning balance $ 128,768 $ — $ 13,144 $ 19,149 $ 241 $ 1,124 $ 5,700 $ 168,126 Provision for loan losses 19,590 — 6,084 15,353 226 2,408 2,690 46,351 Charge-offs 34,145 — 59 290 180 — — 34,674 Recoveries 4,593 — 104 75 70 10 — 4,852 Net charge-offs (recoveries) 29,552 — (45 ) 215 110 (10 ) — 29,822 Ending balance $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Period end allowance for loan losses allocated to: Loans individually evaluated for impairment $ 24,316 $ — $ — $ 101 $ — $ — $ — $ 24,417 Loans collectively evaluated for impairment 94,490 — 19,273 34,186 357 3,542 8,390 160,238 Total $ 118,806 $ — $ 19,273 $ 34,287 $ 357 $ 3,542 $ 8,390 $ 184,655 Period end loans allocated to: Loans individually evaluated for impairment $ 100,676 $ — $ — $ 2,008 $ — $ — $ — $ 102,684 Loans collectively evaluated for impairment 9,089,135 5,308,160 2,166,208 3,792,569 48,684 264,903 — 20,669,659 Total $ 9,189,811 $ 5,308,160 $ 2,166,208 $ 3,794,577 $ 48,684 $ 264,903 $ — $ 20,772,343 |
Schedule of impaired loans, by portfolio class | The following tables detail our impaired loans held for investment by portfolio segment. In accordance with ASC 310, Receivables , we have also included all restructured and formerly restructured loans in our impaired loan totals. (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2018 With no related allowance recorded: Commercial Business loans $ 23,367 $ 55,008 $ — $ 16,426 $ 133 Energy loans 12,188 13,363 — 17,135 — Construction Market risk — — — — — Real estate Market risk — — — — — Commercial 7,388 7,388 — 3,215 — Secured by 1-4 family 1,233 1,233 — 734 — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 44,176 $ 76,992 $ — $ 37,510 $ 133 With an allowance recorded: Commercial Business loans $ 17,529 $ 17,564 $ 4,679 $ 41,307 $ — Energy loans 25,344 28,105 3,573 25,672 — Construction Market risk — — — — — Real estate Market risk — — — 49 — Commercial — — — 83 — Secured by 1-4 family 236 236 48 188 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans with an allowance recorded $ 43,164 $ 45,960 $ 8,310 $ 67,628 $ — Combined: Commercial Business loans $ 40,896 $ 72,572 $ 4,679 $ 57,733 $ 133 Energy loans 37,532 41,468 3,573 42,807 — Construction Market risk — — — — — Real estate Market risk — — — 49 — Commercial 7,388 7,388 — 3,298 — Secured by 1-4 family 1,469 1,469 48 922 — Consumer 55 55 10 54 — Equipment leases — — — 275 — Total impaired loans $ 87,340 $ 122,952 $ 8,310 $ 105,138 $ 133 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized December 31, 2017 With no related allowance recorded: Commercial Business loans $ 16,835 $ 18,257 $ — $ 22,964 $ — Energy loans 21,426 22,602 — 36,579 — Construction Market risk — — — — — Real estate Market risk — — — — — Commercial 1,096 1,096 — 2,166 — Secured by 1-4 family — — — — — Consumer — — — — — Equipment leases — — — — — Total impaired loans with no allowance recorded $ 39,357 $ 41,955 $ — $ 61,709 $ — With an allowance recorded: Commercial Business loans $ 18,645 $ 19,020 $ 2,544 $ 16,960 $ — Energy loans 43,770 55,875 21,772 50,867 6 Construction Market risk — — — 27 — Real estate Market risk 295 295 6 485 — Commercial 499 499 75 166 — Secured by 1-4 family 118 118 20 516 — Consumer — — — 33 — Equipment leases — — — 14 — Total impaired loans with an allowance recorded $ 63,327 $ 75,807 $ 24,417 $ 69,068 $ 6 Combined: Commercial Business loans $ 35,480 $ 37,277 $ 2,544 $ 39,924 $ — Energy loans 65,196 78,477 21,772 87,446 6 Construction Market risk — — — 27 — Real estate Market risk 295 295 6 485 — Commercial 1,595 1,595 75 2,332 — Secured by 1-4 family 118 118 20 516 — Consumer — — — 33 — Equipment leases — — — 14 — Total impaired loans $ 102,684 $ 117,762 $ 24,417 $ 130,777 $ 6 |
Schedule of an age analysis of accruing past due loans | The table below provides an age analysis of our loans held for investment: (in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days(1) Total Past Due Non-accrual Current Total December 31, 2018 Commercial Business loans $ 16,845 $ 13,680 $ 9,163 $ 39,688 $ 40,331 $ 8,662,285 $ 8,742,304 Energy — 1,150 — 1,150 37,532 1,592,302 1,630,984 Mortgage finance loans — — — — — 5,877,524 5,877,524 Construction Market risk — 2,551 — 2,551 — 2,028,062 2,030,613 Commercial — — — — — 64,957 64,957 Secured by 1-4 family 59 — — 59 — 25,337 25,396 Real estate Market risk 1,738 — — 1,738 — 2,786,299 2,788,037 Commercial 1,643 4,595 — 6,238 988 776,232 783,458 Secured by 1-4 family 1,484 44 190 1,718 1,469 354,435 357,622 Consumer — — — — 55 63,383 63,438 Equipment leases 256 — — 256 — 311,935 312,191 Total loans held for investment $ 22,025 $ 22,020 $ 9,353 $ 53,398 $ 80,375 $ 22,542,751 $ 22,676,524 (1) Loans past due 90 days and still accruing includes premium finance loans of $9.2 million . These loans are generally secured by obligations of insurance carriers to refund premiums on canceled insurance policies. The refund of premiums from the insurance carriers can take 180 days or longer from the cancellation date. |
Schedule of loans that have been restructured | The following table details the recorded investment at December 31, 2018 and 2017 of loans that have been restructured during the years ended December 31, 2018 and 2017 by type of modification: Extended Maturity Adjusted Payment Schedule Total (in thousands, except number of contracts) Number of Contracts Balance at Period End Number of Contracts Balance at Period End Number of Contracts Balance at Period End Year Ended December 31, 2018 Commercial Business loans — $ — 2 $ 2,411 2 $ 2,411 Energy loans — — 5 10,047 5 10,047 Total — $ — 7 $ 12,458 $ 7 $ 12,458 Year Ended December 31, 2017 Commercial Business loans 1 $ 712 2 $ 6,928 $ 3 $ 7,640 Energy loans 1 — — — 1 — Total 2 $ 712 2 $ 6,928 $ 4 $ 7,640 |
OREO and Valuation Allowance _2
OREO and Valuation Allowance for Losses on OREO (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Real Estate Owned, Disclosure of Detailed Components [Abstract] | |
Summary of the activity related to OREO | The table below presents a summary of the activity related to OREO: Year ended December 31, (in thousands) 2018 2017 2016 Beginning balance $ 11,742 $ 18,961 $ 278 Additions — — 18,822 Sales (11,663 ) (1,108 ) (139 ) Valuation allowance for OREO — — — Direct write-downs — (6,111 ) — Ending balance $ 79 $ 11,742 $ 18,961 During 2017, we recorded a $6.1 million write-down on one asset. In 2018, we sold this asset and recorded a $2.0 million gain on sale. The gain on sale was recorded in other non-interest income. |
Certain Transfers of Financia_2
Certain Transfers of Financial Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | |
Schedule of Loans Held-for-sale [Table Text Block] | The table below presents a reconciliation of the changes in loans held for sale: Year Ended December 31, (in thousands) 2018 2017 Outstanding balance: Beginning balance $ 1,012,580 $ 980,414 Loans purchased 6,753,709 5,556,964 Payments and loans sold (5,816,504 ) (5,524,798 ) Ending balance(1) 1,949,785 1,012,580 Fair value adjustment: Beginning balance (1,576 ) 8,333 Increase/(decrease) to fair value 21,265 9,909 Ending balance 19,689 (1,576 ) Loans held for sale at fair value(1) $ 1,969,474 $ 1,011,004 (1) Includes $299,000 and $3.3 million of loans held for sale that are carried at lower of cost or market as of December 31, 2018 and 2017 , respectively. |
Schedule of Mortgage Servicing Rights Activity [Table Text Block] | retain the right to service the loans sold through our MCA program, creating MSRs which are recorded as assets on our balance sheet. A summary of MSR activity is as follows: Year Ended December 31, (in thousands) 2018 2017 MSRs: Balance, beginning of year $ 88,150 $ 28,536 Capitalized servicing rights 39,149 67,970 Amortization (9,278 ) (8,356 ) Sales (75,547 ) — Balance, end of period $ 42,474 $ 88,150 Valuation allowance: Balance, beginning of year $ 2,823 $ — Increase in valuation allowance (2,823 ) 2,823 Balance, end of period $ — $ 2,823 MSRs, net(1) $ 42,474 $ 85,327 MSRs, fair value $ 44,502 $ 86,321 |
Schedule of Fair Value Assumption Used to Value Mortgage Servicing Rights Retained [Table Text Block] | The following summarizes the assumptions used by management to determine the fair value of MSRs: December 31, 2018 2017 Average discount rates 9.55 % 9.90 % Expected prepayment speeds 9.77 % 9.99 % Weighted-average life, in years 7.0 7.0 |
Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block] | A sensitivity analysis of changes in the fair value of our MSR portfolio resulting from certain key assumptions is presented in the following table: December 31, (in thousands) 2018 2017 50 bp adverse change in prepayment speed $ (6,028 ) $ (11,896 ) 100 bp adverse change in prepayment speed (11,629 ) (28,226 ) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill and other intangible assets | Goodwill and other intangible assets are summarized as follows: (in thousands) Gross Goodwill and Intangible Assets Accumulated Amortization Net Goodwill and Intangible Assets December 31, 2018 Goodwill $ 15,468 $ (374 ) $ 15,094 Intangible assets—customer relationships and trademarks 9,006 (5,530 ) 3,476 Total goodwill and intangible assets $ 24,474 $ (5,904 ) $ 18,570 December 31, 2017 Goodwill $ 15,468 $ (374 ) $ 15,094 Intangible assets—customer relationships and trademarks 9,006 (5,060 ) 3,946 Total goodwill and intangible assets $ 24,474 $ (5,434 ) $ 19,040 |
Schedule of estimated aggregate future amortization expense for intangible assets | The estimated aggregate future amortization expense for intangible assets remaining as of December 31, 2018 is as follows: (in thousands) 2019 $ 470 2020 432 2021 405 2022 405 2023 382 Thereafter 1,382 Total $ 3,476 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of premises and equipment | Premises and equipment are summarized as follows: December 31, (in thousands) 2018 2017 Premises $ 27,999 $ 25,790 Furniture and equipment 35,130 32,234 Total cost 63,129 58,024 Accumulated depreciation (39,327 ) (32,848 ) Total premises and equipment, net $ 23,802 $ 25,176 |
Schedule of minimum future lease payments under operating leases | Minimum future lease payments under operating leases are as follows at December 31, 2018 : (in thousands) Minimum Payments 2019 $ 14,652 2020 15,549 2021 15,846 2022 15,012 2023 14,070 2024 and thereafter 28,666 Total $ 103,795 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of deposits | Deposits are summarized as follows: December 31, (in thousands) 2018 2017 Non-interest-bearing demand deposits $ 7,317,161 $ 7,812,660 Interest-bearing deposits Transaction 3,051,535 2,567,208 Savings 8,222,893 8,214,059 Time 2,014,524 529,253 Total interest-bearing deposits 13,288,952 11,310,520 Total deposits $ 20,606,113 $ 19,123,180 |
Schedule of maturities of interest-bearing time deposits | The scheduled maturities of interest-bearing time deposits were as follows at December 31, 2018 : (in thousands) 2019 $ 1,990,962 2020 21,894 2021 778 2022 263 2023 127 2024 and after 500 Total $ 2,014,524 |
Short-Term and Other Borrowin_2
Short-Term and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of borrowings | The following table summarizes our short-term and other borrowings: (dollar amounts in thousands) Federal Funds Purchased Customer Repurchase Agreements FHLB Borrowings December 31, 2018 Amount outstanding at year-end $ 629,169 $ 12,005 $ 3,900,000 Interest rate at year-end 2.54 % 0.09 % 2.56 % Average balance outstanding during the year $ 323,140 $ 9,812 $ 1,769,452 Weighted-average interest rate during the year 2.02 % 0.09 % 2.05 % Maximum month-end outstanding during the year $ 629,169 $ 13,835 $ 4,000,000 December 31, 2017 Amount outstanding at year-end $ 359,338 $ 5,702 $ 2,800,000 Interest rate at year-end 1.45 % 0.03 % 1.35 % Average balance outstanding during the year $ 215,895 $ 6,590 $ 1,395,753 Weighted-average interest rate during the year 1.20 % 0.04 % 1.08 % Maximum month-end outstanding during the year $ 544,203 $ 8,727 $ 2,800,000 December 31, 2016 Amount outstanding at year-end $ 101,800 $ 7,775 $ 2,000,000 Interest rate at year-end 0.80 % 0.05 % 0.61 % Average balance outstanding during the year $ 90,904 $ 15,380 $ 1,367,267 Weighted-average interest rate during the year 0.57 % 0.06 % 0.43 % Maximum month-end outstanding during the year $ 263,989 $ 18,884 $ 2,025,000 |
Summary of other borrowing capacities | The following table summarizes our other borrowing capacities net of balances outstanding. As of December 31, 2018 , all are scheduled to mature within one year. December 31, (in thousands) 2018 2017 2016 FHLB borrowing capacity relating to loans $ 4,568,842 $ 3,890,995 $ 3,057,915 FHLB borrowing capacity relating to securities 721 2,071 1,653 Total FHLB borrowing capacity(1) $ 4,569,563 $ 3,893,066 $ 3,059,568 Unused Federal funds lines available from commercial banks $ 620,000 $ 885,000 $ 1,118,000 Unused Federal Reserve Borrowings capacity $ 4,933,965 $ 4,114,594 $ 3,179,087 Unused revolving line of credit(2) $ 130,000 $ 130,000 $ 130,000 (1) FHLB borrowings are collateralized by a blanket floating lien on certain real estate secured loans, mortgage finance assets and also certain pledged securities. (2) Unsecured revolving, non-amortizing line of credit with maturity date of December 17, 2019. Proceeds may be used for general corporate purposes, including funding regulatory capital infusions into the Bank. The loan agreement contains customary financial covenants and restrictions. No borrowings were made against this line of credit during 2018 or 2017; the average borrowings during the year ended December 31, 2016 were $6.8 million . |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated Borrowings [Abstract] | |
Schedule of details of the trust preferred subordinated debentures | As of December 31, 2018 , the details of the trust preferred subordinated debentures are summarized below: (dollar amounts in thousands) Texas Capital Texas Capital Texas Capital Texas Capital Texas Capital Date issued November 19, 2002 April 10, 2003 October 6, 2005 April 28, 2006 September 29, 2006 Trust preferred securities issued $10,310 $10,310 $25,774 $25,774 $41,238 Floating or fixed rate securities Floating Floating Floating Floating Floating Interest rate on subordinated debentures 3 month LIBOR 3 month LIBOR 3 month LIBOR 3 month LIBOR 3 month LIBOR Maturity date November 2032 April 2033 December 2035 June 2036 December 2036 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense/(benefit) | Year ended December 31, (in thousands) 2018 2017 2016 Current: Federal $ 82,556 $ 94,112 $ 86,612 State 3,808 3,257 2,412 Total 86,364 97,369 89,024 Deferred: Federal (6,400 ) 31,276 (2,946 ) State — — — Total (6,400 ) 31,276 (2,946 ) Total expense: Federal 76,156 125,388 83,666 State 3,808 3,257 2,412 Total $ 79,964 $ 128,645 $ 86,078 |
Schedule of deferred tax assets and liabilities | December 31, (in thousands) 2018 2017 Deferred tax assets: Allowance for credit losses $ 44,224 $ 42,213 Loan origination fees 11,328 10,084 Stock compensation 3,363 4,460 Non-accrual interest 1,724 1,680 Non-qualified deferred compensation 2,211 1,217 Other 2,517 3,380 Total deferred tax assets 65,367 63,034 Deferred tax liabilities: Loan origination costs (2,049 ) (1,304 ) Leases (9,000 ) (6,850 ) MSRs (9,184 ) (17,619 ) Depreciation (8,233 ) (7,354 ) Unrealized gain on securities (138 ) (138 ) Other (2,662 ) (2,068 ) Total deferred tax liabilities (31,266 ) (35,333 ) Net deferred tax asset $ 34,101 $ 27,701 |
Reconciliation of income attributable to continuing operations | The reconciliation of our effective income tax rate to the U.S. federal statutory tax rate is as follows: Year ended December 31, 2018 2017 2016 U.S. statutory rate 21 % 35 % 35 % State taxes 1 % 1 % 1 % Non-deductible expenses 1 % 1 % 1 % Deferred tax asset remeasurement write-off — % 5 % — % Non-taxable income (1 )% (1 )% (1 )% Other (1 )% (1 )% — % Effective tax rate 21 % 40 % 36 % |
Stock-Based Compensation and _2
Stock-Based Compensation and Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Compensation Related Costs [Abstract] | |
Schedule of stock appreciation rights activity | A summary of our SAR activity and related information is as follows. These rights are time based and generally vest ratably over a period of five years. December 31, 2018 December 31, 2017 December 31, 2016 SARs Weighted Average Exercise Price SARs Weighted Average Exercise Price SARs Weighted Average Exercise Price SARs outstanding at beginning of year 74,363 $ 30.12 125,863 $ 31.68 360,544 $ 25.73 SARs granted — — — — — — SARs exercised (33,013 ) 31.35 (51,500 ) 33.94 (234,681 ) 22.54 SARs forfeited — — — — — — SARs outstanding at year-end 41,350 $ 29.13 74,363 $ 30.12 125,863 $ 31.68 SARs vested and exercisable at year-end 39,750 $ 27.81 60,463 $ 26.02 94,463 $ 26.73 Weighted average remaining contractual life of SARs vested (in years) 2.33 2.82 3.62 Compensation expense $ 121,000 $ 265,000 $ 307,000 Unrecognized compensation expense $ 6,000 $ 127,000 $ 392,000 Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) 0.17 0.75 1.52 Fair value of shares vested during the year $ 210,807 $ 294,000 $ 337,000 Weighted average remaining contractual life of SARs (in years) 2.44 3.35 4.32 Intrinsic value of SARs exercised $ 925,479 $ 3,802,000 $ 4,881,000 |
Summary of status and changes in nonvested restricted stock units | ummary of our RSU activity and related information is as follows. Grants of RSUs include both performance-based and time-based vesting conditions and generally vest over a three-year period. December 31, 2018 December 31, 2017 December 31, 2016 RSUs Weighted Average Grant Date Fair Value RSUs Weighted RSUs Weighted RSUs outstanding at beginning of year 423,732 $ 60.01 425,055 $ 51.28 333,174 $ 48.60 RSUs granted 95,891 88.07 121,243 80.40 213,577 51.75 RSUs vested (121,507 ) 54.97 (102,057 ) 48.93 (94,296 ) 42.87 RSUs forfeited (48,583 ) 63.60 (20,509 ) 54.75 (27,400 ) 51.18 RSUs outstanding at year-end 349,533 $ 69.11 423,732 $ 60.01 425,055 $ 51.28 Compensation expense $ 8,803,000 $ 7,790,000 $ 4,771,000 Unrecognized compensation expense $ 16,538,000 $ 18,730,000 $ 17,167,000 Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) 2.90 3.15 3.37 Weighted average remaining contractual life of RSUs (in years) 8.13 8.33 8.65 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Schedule of financial instruments with off-balance sheet risk | The table below presents our financial instruments with off-balance sheet risk, as well as the activity in the allowance for off-balance sheet credit losses related to those financial instruments. This allowance is recorded in other liabilities on the consolidated balance sheet. Year Ended December 31, (in thousands) 2018 2017 Beginning balance of allowance for off-balance sheet credit losses $ 9,071 $ 11,422 Provision for off-balance sheet credit losses 2,363 (2,351 ) Ending balance of allowance for off-balance sheet credit losses $ 11,434 $ 9,071 Commitments to extend credit - period end balance $ 8,030,198 $ 6,957,847 Standby letters of credit - period end balance $ 236,537 $ 230,958 |
Regulatory Restrictions (Tables
Regulatory Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of compliance with Regulatory Capital Requirements | The table below summarizes our actual and required capital ratios under the Basel III Capital Rules: Actual Minimum Capital Required - Basel III Phase-In Schedule Minimum capital Required - Basel III Fully Phased-In Required to be Considered Well Capitalized (dollars in thousands) Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio Capital Amount Ratio December 31, 2018 CET1 Company $ 2,330,599 8.58 % $ 1,732,501 6.38 % $ 1,902,354 7.00 % N/A N/A Bank 2,340,988 8.62 % 1,731,955 6.38 % 1,901,755 7.00 % 1,765,915 6.50 % Total capital (to risk-weighted assets) Company 3,074,097 11.31 % 2,683,679 9.88 % 2,853,532 10.50 % N/A N/A Bank 2,925,872 10.77 % 2,682,833 9.88 % 2,852,632 10.50 % 2,716,793 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,589,374 9.53 % 2,140,149 7.88 % 2,310,002 8.50 % N/A N/A Bank 2,499,763 9.20 % 2,139,474 7.88 % 2,309,274 8.50 % 2,173,434 8.00 % Tier 1 capital (to average assets)(1) Company 2,589,374 9.87 % 1,049,694 4.00 % 1,049,694 4.00 % N/A N/A Bank 2,499,763 9.53 % 1,049,296 4.00 % 1,049,296 4.00 % 1,311,620 5.00 % December 31, 2017 CET1 Company $ 2,033,830 8.45 % $ 1,384,448 5.75 % $ 1,685,464 7.00 % N/A N/A Bank 1,992,152 8.28 % 1,383,475 5.75 % 1,684,231 7.00 % 1,563,929 6.50 % Total capital (to risk-weighted assets) Company 2,768,153 11.50 % 2,227,221 9.25 % 2,528,196 10.50 % N/A N/A Bank 2,567,961 10.67 % 2,225,591 9.25 % 2,526,347 10.50 % 2,406,044 10.00 % Tier 1 capital (to risk-weighted assets) Company 2,293,016 9.52 % 1,745,659 7.25 % 2,046,635 8.50 % N/A N/A Bank 2,151,338 8.94 % 1,744,382 7.25 % 2,045,138 8.50 % 1,924,835 8.00 % Tier 1 capital (to average assets)(1) Company 2,293,016 9.15 % 1,002,494 4.00 % 1,002,494 4.00 % N/A N/A Bank 2,151,338 8.59 % 1,002,144 4.00 % 1,002,144 4.00 % 1,252,680 5.00 % (1) The Tier 1 capital ratio (to average assets) is not impacted by the Basel III Capital Rules; however, the Federal Reserve Board and the FDIC may require the Company and the Bank, respectively, to maintain a Tier 1 capital ratio (to average assets) above the required minimum. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table presents the computation of basic and diluted earnings per share: Year ended December 31, (in thousands except per share data) 2018 2017 2016 Numerator: Net income $ 300,824 $ 197,063 $ 155,119 Preferred stock dividends 9,750 9,750 9,750 Net income available to common stockholders $ 291,074 $ 187,313 $ 145,369 Denominator: Denominator for basic earnings per share—weighted average shares 49,936,702 49,587,169 46,239,210 Effect of employee stock-based awards(1) 218,275 239,008 128,228 Effect of warrants to purchase common stock 117,895 433,657 398,464 Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions 50,272,872 50,259,834 46,765,902 Basic earnings per common share $ 5.83 $ 3.78 $ 3.14 Diluted earnings per common share $ 5.79 $ 3.73 $ 3.11 (1) SARs and RSUs outstanding of 27,100 , 13,500 and 150,416 in 2018 , 2017 and 2016 , respectively, have not been included in diluted earnings per share because to do so would have been antidilutive for the periods presented. |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value | Assets and liabilities measured at fair value are as follows: Fair Value Measurements Using (in thousands) Level 1 Level 2 Level 3 December 31, 2018 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 7,242 $ — Tax-exempt asset-backed securities — — 95,804 Equity securities(1)(2) 10,262 6,908 — Loans held for sale(3) — 1,952,760 16,415 Loans held for investment(4)(6) — — 29,885 OREO(5)(6) — — 79 Derivative assets(7) — 21,806 — Derivative liabilities(7) — 41,375 — Non-qualified deferred compensation plan liabilities(8) 10,148 — — December 31, 2017 Available-for-sale debt securities:(1) Residential mortgage-backed securities $ — $ 10,945 $ — Equity securities(1)(2) 5,460 7,106 — Loans held for sale(3) — 1,007,695 — Loans held for investment(4)(6) — — 21,216 OREO(5)(6) — — 11,742 Derivative assets(7) — 16,719 — Derivative liabilities(7) — 17,377 — Non-qualified deferred compensation plan liabilities(8) 5,587 — — (1) Securities are measured at fair value on a recurring basis, generally monthly, except for tax-exempt asset-backed securities which are measured quarterly. (2) Equity securities consist of Community Reinvestment Act funds and investments related to our non-qualified deferred compensation plan. (3) Loans held for sale purchased through our MCA program are measured at fair value on a recurring basis, generally monthly. (4) Includes impaired loans that have been measured for impairment at the fair value of the loan’s collateral. (5) OREO is transferred from loans to OREO at fair value less selling costs. (6) Loans held for investment and OREO are measured on a nonrecurring basis, generally annually or more often as warranted by market and economic conditions. (7) Derivative assets and liabilities are measured at fair value on a recurring basis, generally quarterly. (8) Non-qualified deferred compensation plan liabilities represent the fair value of the obligation to the employee, which generally correspond to the fair value of the invested assets, and are measured at fair value on a recurring basis, generally monthly. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the level 3 fair value category measured at fair value on a recurring basis using Level 3 inputs: Net Realized/Unrealized Gains (Losses) (in thousands) Balance at Beginning of Period Purchases / Additions Sales / Reductions Realized Unrealized Balance at End of Period Year ended December 31, 2018 Tax-exempt asset-backed securities(1) $ — $ 95,521 $ (3 ) $ — $ 286 $ 95,804 Loans held for sale(2) $ — $ 38,430 $ (20,591 ) $ (173 ) $ (1,251 ) $ 16,415 (1) Unrealized gains/(losses) on available-for-sale debt securities are recorded in AOCI. Realized gains/(losses) are recorded in other non-interest income. (2) Realized and unrealized gains/(losses) on loans held for sale are recorded in gain/(loss) on sale of loans held for sale. |
Summary of the carrying amounts and estimated fair values of financial instruments | A summary of the carrying amounts and estimated fair values of financial instruments is as follows: December 31, 2018 December 31, 2017 (in thousands) Carrying Amount Estimated Fair Value Carrying Estimated Financial assets: Level 1 inputs: Cash and cash equivalents $ 3,080,065 $ 3,080,065 $ 2,905,591 $ 2,905,591 Investment securities 10,262 10,262 5,460 5,460 Level 2 inputs: Investment securities 14,150 14,150 18,051 18,051 Loans held for sale 1,953,059 1,953,059 1,011,004 1,011,004 Derivative assets 21,806 21,806 16,719 16,719 Level 3 inputs: Investment securities 95,804 95,804 — — Loans held for sale 16,415 16,415 — — Loans held for investment, net 22,376,552 22,347,876 20,489,757 20,480,802 Financial liabilities: Level 2 inputs: Federal funds purchased 629,169 629,169 359,338 359,338 Customer repurchase agreements 12,005 12,005 5,702 5,702 Other borrowings 3,900,000 3,900,000 2,800,000 2,800,000 Subordinated notes 281,767 283,349 281,406 285,485 Trust preferred subordinated debentures 113,406 113,406 113,406 113,406 Derivative liabilities 41,375 41,375 17,377 17,377 Level 3 inputs: Deposits 20,606,113 20,608,494 19,123,180 19,124,121 |
Parent Company Only (Tables)
Parent Company Only (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
Balance Sheet | Balance Sheet December 31, (in thousands) 2018 2017 Assets Cash and cash equivalents $ 89,561 $ 144,635 Loans held for investment (net of unearned income) 7,500 7,500 Investment in subsidiaries 2,534,341 2,184,601 Other assets 87,451 86,300 Total assets $ 2,718,853 $ 2,423,036 Liabilities and Stockholders’ Equity Other liabilities $ 1,471 $ 1,244 Subordinated notes 108,614 108,513 Trust preferred subordinated debentures 113,406 113,406 Total liabilities 223,491 223,163 Preferred stock 150,000 150,000 Common stock 502 496 Additional paid-in capital 978,042 971,457 Retained earnings 1,366,308 1,077,500 Treasury stock (8 ) (8 ) Accumulated other comprehensive income 518 428 Total stockholders’ equity 2,495,362 2,199,873 Total liabilities and stockholders’ equity $ 2,718,853 $ 2,423,036 |
Statement of Earnings | Statement of Earnings Year ended December 31, (in thousands) 2018 2017 2016 Interest on loans $ 3,398 $ 3,271 $ 3,250 Dividend income 10,400 10,400 10,400 Other income 142 108 90 Total income 13,940 13,779 13,740 Other non-interest income 7 13 152 Interest expense 12,031 10,908 10,525 Salaries and employee benefits 588 489 431 Legal and professional 2,020 1,700 1,429 Other non-interest expense 2,013 1,761 1,594 Total expense 16,652 14,858 13,979 Income (loss) before income taxes and equity in undistributed income of subsidiary (2,705 ) (1,066 ) (87 ) Income tax expense (benefit) (587 ) (371 ) (33 ) Income (loss) before equity in undistributed income of subsidiary (2,118 ) (695 ) (54 ) Equity in undistributed income of subsidiary 300,758 194,118 151,445 Net income 298,640 193,423 151,391 Preferred stock dividends 9,750 9,750 9,750 Net income available to common stockholders $ 288,890 $ 183,673 $ 141,641 |
Statement of Cash Flows | Statements of Cash Flows Year ended December 31, (in thousands) 2018 2017 2016 Operating Activities Net income $ 298,640 $ 193,423 $ 151,391 Adjustments to reconcile net income to net cash used in operating activities: Equity in undistributed income of subsidiary (300,758 ) (194,118 ) (151,445 ) Amortization 101 101 101 Increase in other assets (1,152 ) (739 ) (10 ) Excess tax benefits from stock-based compensation arrangements — — (2,013 ) Increase (decrease) in other liabilities 227 (40 ) 165 Net cash used in operating activities (2,942 ) (1,373 ) (1,811 ) Investing Activities Net increase in loans held for investment — (7,500 ) — Investments in and advances to subsidiaries (40,000 ) (55,000 ) (57,000 ) Net cash used in investing activities (40,000 ) (62,500 ) (57,000 ) Financing Activities Proceeds from sale of stock related to stock-based awards (2,382 ) (2,241 ) (2,481 ) Proceeds from sale of common stock — — 236,467 Preferred dividends paid (9,750 ) (9,750 ) (9,750 ) Excess tax benefits from stock-based compensation arrangements — — 2,013 Net cash provided by (used in) financing activities (12,132 ) (11,991 ) 226,249 Net increase (decrease) in cash and cash equivalents (55,074 ) (75,864 ) 167,438 Cash and cash equivalents at beginning of year 144,635 220,499 53,061 Cash and cash equivalents at end of year $ 89,561 $ 144,635 $ 220,499 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The notional amounts and estimated fair values of derivative positions outstanding are presented in the following table: December 31, 2018 December 31, 2017 Estimated Fair Value Estimated Fair Value (in thousands) Notional Amount Asset Derivative Liability Derivative Notional Amount Asset Derivative Liability Derivative Non-hedging derivatives: Financial institution counterparties: Commercial loan/lease interest rate swaps $ 1,579,328 $ 7,978 $ 16,719 $ 1,393,764 $ 4,736 $ 15,482 Commercial loan/lease interest rate caps 606,950 1,109 4 242,700 421 7 Foreign currency forward contracts 39,737 2,263 59 2,466 4 69 Customer counterparties: Commercial loan/lease interest rate swaps 1,579,328 16,719 7,978 1,393,764 15,482 4,736 Commercial loan/lease interest rate caps 606,950 4 1,109 242,700 7 421 Foreign currency forward contracts 39,737 59 2,263 2,466 69 4 Economic hedging interest rate derivatives: Loan purchase commitments 167,984 1,442 6 253,815 635 190 Forward sale commitments 1,928,527 — 21,005 1,086,224 — 1,103 Gross derivatives 29,574 49,143 21,354 22,012 Offsetting derivative assets/liabilities (7,768 ) (7,768 ) (4,635 ) (4,635 ) Net derivatives included in the consolidated balance sheets $ 21,806 $ 41,375 $ 16,719 $ 17,377 |
Schedule Of Weighted Average Interest Rate Received And Paid | The weighted-average receive and pay interest rates for interest rate swaps outstanding were as follows: December 31, 2018 Weighted-Average Interest Rate December 31, 2017 Weighted-Average Interest Rate Received Paid Received Paid Non-hedging interest rate swaps 4.24 % 4.20 % 3.59 % 4.34 % |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | 2018 Selected Quarterly Financial Data (in thousands, except per share data) Fourth Third Second First Interest income $ 321,718 $ 301,754 $ 286,852 $ 253,869 Interest expense 81,045 69,579 55,140 43,569 Net interest income 240,673 232,175 231,712 210,300 Provision for credit losses 35,000 13,000 27,000 12,000 Net interest income after provision for credit losses 205,673 219,175 204,712 198,300 Non-interest income 15,280 25,518 17,279 19,947 Non-interest expense 129,862 136,143 132,131 126,960 Income before income taxes 91,091 108,550 89,860 91,287 Income tax expense 19,200 22,998 18,424 19,342 Net income 71,891 85,552 71,436 71,945 Preferred stock dividends 2,437 2,438 2,437 2,438 Net income available to common stockholders $ 69,454 $ 83,114 $ 68,999 $ 69,507 Basic earnings per share: $ 1.38 $ 1.66 $ 1.39 $ 1.40 Diluted earnings per share: $ 1.38 $ 1.65 $ 1.38 $ 1.38 2017 Selected Quarterly Financial Data (in thousands, except per share data) Fourth Third Second First Interest income $ 249,519 $ 237,643 $ 208,191 $ 183,946 Interest expense 38,870 33,282 25,232 20,587 Net interest income 210,649 204,361 182,959 163,359 Provision for credit losses 2,000 20,000 13,000 9,000 Net interest income after provision for credit losses 208,649 184,361 169,959 154,359 Non-interest income 19,374 19,003 18,769 17,110 Non-interest expense 133,138 114,830 111,814 106,094 Income before income taxes 94,885 88,534 76,914 65,375 Income tax expense 50,143 29,850 25,819 22,833 Net income 44,742 58,684 51,095 42,542 Preferred stock dividends 2,437 2,438 2,437 2,438 Net income available to common stockholders $ 42,305 $ 56,246 $ 48,658 $ 40,104 Basic earnings per share: $ 0.85 $ 1.13 $ 0.98 $ 0.81 Diluted earnings per share: $ 0.84 $ 1.12 $ 0.97 $ 0.80 |
Operations and Summary of Sig_3
Operations and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Useful life | 1 year |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Useful life | 5 years |
Investment Securities (Details)
Investment Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||||
Amortized Cost | $ 102,392 | |||
Gross Unrealized Gains | 654 | |||
Gross Unrealized Losses | 0 | |||
Estimated Fair Value | 103,046 | |||
Payments to acquire AFS securities, debt | 101,558 | $ 97,776 | $ 1,760 | |
Residential mortgage-backed securities | ||||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||||
Amortized Cost | 6,874 | 10,297 | ||
Gross Unrealized Gains | 368 | 648 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value | 7,242 | $ 10,945 | ||
Tax-exempt asset-backed securities | ||||
Debt Securities, Available-for-sale, Fair Value to Amortized Cost [Abstract] | ||||
Amortized Cost | 95,518 | |||
Gross Unrealized Gains | 286 | |||
Gross Unrealized Losses | 0 | |||
Estimated Fair Value | $ 95,804 | |||
Payments to acquire AFS securities, debt | $ 95,500 |
Investment Securities (Details
Investment Securities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortized cost | |||
Amortized Cost | $ 102,392 | ||
Estimated fair value | |||
Total | 103,046 | ||
Investment securities | $ 103,046 | ||
Available-for-sale Securities, Other Disclosure Items | |||
Federal tax rate (percent) | 21.00% | 35.00% | 35.00% |
Customer repurchase agreements | |||
Available-for-sale Securities, Other Disclosure Items | |||
Available-for-sale debt securities pledged to secure certain customer repurchase agreements and deposits | $ 4,800 | $ 7,300 | |
Residential mortgage-backed securities | |||
Amortized cost | |||
Less Than One Year | 3 | 409 | |
After One Through Five Years | 1,573 | 819 | |
After Five Through Ten Years | 0 | 1,502 | |
After Ten Years | 5,298 | 7,567 | |
Amortized Cost | 6,874 | 10,297 | |
Estimated fair value | |||
Less Than One Year | 4 | 418 | |
After One Through Five Years | 1,668 | 916 | |
After Five Through Ten Years | 0 | 1,636 | |
After Ten Years | 5,570 | 7,975 | |
Investment securities | $ 7,242 | $ 10,945 | |
Weighted average yield | |||
Less Than One Year | 6.50% | 4.59% | |
After One Through Five Years | 5.54% | 6.02% | |
After Five Through Ten Years | 0.00% | 5.32% | |
After Ten Years | 4.53% | 3.45% | |
Total | 4.76% | 3.97% | |
Tax-exempt asset-backed securities | |||
Amortized cost | |||
Less Than One Year | $ 0 | ||
After One Through Five Years | 0 | ||
After Five Through Ten Years | 0 | ||
After Ten Years | 95,518 | ||
Amortized Cost | 95,518 | ||
Estimated fair value | |||
Less Than One Year | 0 | ||
After One Through Five Years | 0 | ||
After Five Through Ten Years | 0 | ||
After Ten Years | 95,804 | ||
Investment securities | $ 95,804 | ||
Weighted average yield | |||
Less Than One Year | 0.00% | ||
After One Through Five Years | 0.00% | ||
After Five Through Ten Years | 0.00% | ||
After Ten Years | 4.25% | ||
Total | 4.25% | ||
Deposits | |||
Available-for-sale Securities, Other Disclosure Items | |||
Available-for-sale debt securities pledged to secure certain customer repurchase agreements and deposits | $ 1,700 | $ 1,600 |
Investment Securities (Detail_2
Investment Securities (Details 2) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Abstract] | ||
Estimated fair value | $ 17,200,000 | $ 12,600,000 |
Net unrealized gains reclassified out of AOCI into retained earnings | $ 10,000 | |
Net gains/(losses) recognized during the period | (975,000) | |
Less: Realized net gains/(losses) recognized during the period on equity securities sold | 460,000 | |
Unrealized net gains/(losses) recognized during the period on equity securities still held | $ (1,435,000) |
Loans Held for Investment and_3
Loans Held for Investment and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable, Net Reported Amount | |||
Commercial | $ 10,373,288 | $ 9,189,811 | |
Mortgage finance | 5,877,524 | 5,308,160 | |
Construction | 2,120,966 | 2,166,208 | |
Real estate | 3,929,117 | 3,794,577 | |
Consumer | 63,438 | 48,684 | |
Equipment leases | 312,191 | 264,903 | |
Gross loans held for investment | 22,676,524 | 20,772,343 | |
Deferred income (net of direct origination costs) | (108,450) | (97,931) | |
Allowance for loan losses | (191,522) | (184,655) | $ (168,126) |
Loans held for investment, net | $ 22,376,552 | $ 20,489,757 |
Loans Held for Investment and_4
Loans Held for Investment and Allowance for Loan Losses (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Additional qualitative reserve as percentage of loans held for investment | 0.03% | 0.04% | |
Average impaired loans outstanding | $ 105,138 | $ 130,777 | $ 174,100 |
Interest income recognized on non-accrual loans | 100 | 0 | 100 |
Interest lost on non-accrual loans | 8,500 | 19,000 | $ 7,900 |
Non-accrual loans earning on cash basis | 0 | ||
Nonaccrual loans that met the criteria for restructured | $ 20,000 | $ 18,800 |
Loans Held for Investment and_5
Loans Held for Investment and Allowance for Loan Losses (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | $ 10,373,288 | $ 9,189,811 |
Mortgage finance | 5,877,524 | 5,308,160 |
Construction | 2,120,966 | 2,166,208 |
Real estate | 3,929,117 | 3,794,577 |
Consumer | 63,438 | 48,684 |
Equipment leases | 312,191 | 264,903 |
Total | 22,676,524 | 20,772,343 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 10,034,597 | 8,967,471 |
Mortgage finance | 5,877,524 | 5,308,160 |
Construction | 2,099,955 | 2,152,654 |
Real estate | 3,850,811 | 3,706,541 |
Consumer | 61,815 | 48,591 |
Equipment leases | 309,775 | 249,865 |
Total | 22,234,477 | 20,433,282 |
Special mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 120,531 | 19,958 |
Mortgage finance | 0 | 0 |
Construction | 21,011 | 13,554 |
Real estate | 47,644 | 53,652 |
Consumer | 0 | 0 |
Equipment leases | 2,223 | 495 |
Total | 191,409 | 87,659 |
Substandard-accruing | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 140,297 | 102,651 |
Mortgage finance | 0 | 0 |
Construction | 0 | 0 |
Real estate | 28,205 | 32,671 |
Consumer | 1,568 | 93 |
Equipment leases | 193 | 14,543 |
Total | 170,263 | 149,958 |
Non-accrual | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Commercial | 77,863 | 99,731 |
Mortgage finance | 0 | 0 |
Construction | 0 | 0 |
Real estate | 2,457 | 1,713 |
Consumer | 55 | 0 |
Equipment leases | 0 | 0 |
Total | $ 80,375 | $ 101,444 |
Loans Held for Investment and_6
Loans Held for Investment and Allowance for Loan Losses (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 184,655 | $ 168,126 |
Provision for loan losses | 84,637 | 46,351 |
Charge-offs | 80,778 | 34,674 |
Recoveries | 3,008 | 4,852 |
Net charge-offs (recoveries) | 77,770 | 29,822 |
Ending balance | 191,522 | 184,655 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 8,310 | 24,417 |
Loans collectively evaluated for impairment | 183,212 | 160,238 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 87,340 | 102,684 |
Loans collectively evaluated for impairment | 22,589,184 | 20,669,659 |
Gross loans held for investment | $ 22,676,524 | $ 20,772,343 |
Additional qualitative reserve as percentage of loans held for investment | 0.03% | 0.04% |
Commercial | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | $ 118,806 | $ 128,768 |
Provision for loan losses | 87,860 | 19,590 |
Charge-offs | 79,692 | 34,145 |
Recoveries | 2,468 | 4,593 |
Net charge-offs (recoveries) | 77,224 | 29,552 |
Ending balance | 129,442 | 118,806 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 8,252 | 24,316 |
Loans collectively evaluated for impairment | 121,190 | 94,490 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 78,428 | 100,676 |
Loans collectively evaluated for impairment | 10,294,860 | 9,089,135 |
Gross loans held for investment | 10,373,288 | 9,189,811 |
Mortgage Finance | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 0 | 0 |
Provision for loan losses | 0 | 0 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs (recoveries) | 0 | 0 |
Ending balance | 0 | 0 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 0 | 0 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 5,877,524 | 5,308,160 |
Gross loans held for investment | 5,877,524 | 5,308,160 |
Construction | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 19,273 | 13,144 |
Provision for loan losses | (31) | 6,084 |
Charge-offs | 0 | 59 |
Recoveries | 0 | 104 |
Net charge-offs (recoveries) | 0 | (45) |
Ending balance | 19,242 | 19,273 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 19,242 | 19,273 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 2,120,966 | 2,166,208 |
Gross loans held for investment | 2,120,966 | 2,166,208 |
Real Estate | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 34,287 | 19,149 |
Provision for loan losses | (1,003) | 15,353 |
Charge-offs | 0 | 290 |
Recoveries | 69 | 75 |
Net charge-offs (recoveries) | (69) | 215 |
Ending balance | 33,353 | 34,287 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 48 | 101 |
Loans collectively evaluated for impairment | 33,305 | 34,186 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 8,857 | 2,008 |
Loans collectively evaluated for impairment | 3,920,260 | 3,792,569 |
Gross loans held for investment | 3,929,117 | 3,794,577 |
Consumer | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 357 | 241 |
Provision for loan losses | 397 | 226 |
Charge-offs | 767 | 180 |
Recoveries | 438 | 70 |
Net charge-offs (recoveries) | 329 | 110 |
Ending balance | 425 | 357 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 10 | 0 |
Loans collectively evaluated for impairment | 415 | 357 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 55 | 0 |
Loans collectively evaluated for impairment | 63,383 | 48,684 |
Gross loans held for investment | 63,438 | 48,684 |
Equipment Leases | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 3,542 | 1,124 |
Provision for loan losses | (1,427) | 2,408 |
Charge-offs | 319 | 0 |
Recoveries | 33 | 10 |
Net charge-offs (recoveries) | 286 | (10) |
Ending balance | 1,829 | 3,542 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 1,829 | 3,542 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 312,191 | 264,903 |
Gross loans held for investment | 312,191 | 264,903 |
Additional Qualitative Reserve | ||
Allowance for Loan and Lease Losses [Roll Forward] | ||
Beginning balance | 8,390 | 5,700 |
Provision for loan losses | (1,159) | 2,690 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Net charge-offs (recoveries) | 0 | 0 |
Ending balance | 7,231 | 8,390 |
Period end allowance for loan losses allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 7,231 | 8,390 |
Period end loans allocated to: | ||
Loans individually evaluated for impairment | 0 | 0 |
Loans collectively evaluated for impairment | 0 | 0 |
Gross loans held for investment | $ 0 | $ 0 |
Loans Held for Investment and_7
Loans Held for Investment and Allowance for Loan Losses (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | $ 44,176 | $ 39,357 | |
With An Allowanced Recorded, Recorded Investment | 43,164 | 63,327 | |
Combined, Recorded Investment | 87,340 | 102,684 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 76,992 | 41,955 | |
With An Allowanced Recorded, Unpaid Principal Balance | 45,960 | 75,807 | |
Combined, Unpaid Principal Balance | 122,952 | 117,762 | |
Related Allowance | 8,310 | 24,417 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 37,510 | 61,709 | |
With An Allowanced Recorded, Average Recorded Investment | 67,628 | 69,068 | |
Combined, Average Recorded Investment | 105,138 | 130,777 | $ 174,100 |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 133 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 6 | |
Interest income recognized on non-accrual loans | 100 | 0 | $ 100 |
Commercial | Business loans | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 23,367 | 16,835 | |
With An Allowanced Recorded, Recorded Investment | 17,529 | 18,645 | |
Combined, Recorded Investment | 40,896 | 35,480 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 55,008 | 18,257 | |
With An Allowanced Recorded, Unpaid Principal Balance | 17,564 | 19,020 | |
Combined, Unpaid Principal Balance | 72,572 | 37,277 | |
Related Allowance | 4,679 | 2,544 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 16,426 | 22,964 | |
With An Allowanced Recorded, Average Recorded Investment | 41,307 | 16,960 | |
Combined, Average Recorded Investment | 57,733 | 39,924 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 133 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
Combined, Interest Income Recognized | 133 | 0 | |
Commercial | Energy loans | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 12,188 | 21,426 | |
With An Allowanced Recorded, Recorded Investment | 25,344 | 43,770 | |
Combined, Recorded Investment | 37,532 | 65,196 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 13,363 | 22,602 | |
With An Allowanced Recorded, Unpaid Principal Balance | 28,105 | 55,875 | |
Combined, Unpaid Principal Balance | 41,468 | 78,477 | |
Related Allowance | 3,573 | 21,772 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 17,135 | 36,579 | |
With An Allowanced Recorded, Average Recorded Investment | 25,672 | 50,867 | |
Combined, Average Recorded Investment | 42,807 | 87,446 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 6 | |
Combined, Interest Income Recognized | 0 | 6 | |
Construction | Market risk | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Recorded Investment | 0 | 0 | |
Combined, Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | |
Combined, Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Average Recorded Investment | 0 | 27 | |
Combined, Average Recorded Investment | 0 | 27 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
Combined, Interest Income Recognized | 0 | 0 | |
Real estate | Market risk | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Recorded Investment | 0 | 295 | |
Combined, Recorded Investment | 0 | 295 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 0 | 295 | |
Combined, Unpaid Principal Balance | 0 | 295 | |
Related Allowance | 0 | 6 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Average Recorded Investment | 49 | 485 | |
Combined, Average Recorded Investment | 49 | 485 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
Combined, Interest Income Recognized | 0 | 0 | |
Real estate | Commercial | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 7,388 | 1,096 | |
With An Allowanced Recorded, Recorded Investment | 0 | 499 | |
Combined, Recorded Investment | 7,388 | 1,595 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 7,388 | 1,096 | |
With An Allowanced Recorded, Unpaid Principal Balance | 0 | 499 | |
Combined, Unpaid Principal Balance | 7,388 | 1,595 | |
Related Allowance | 0 | 75 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 3,215 | 2,166 | |
With An Allowanced Recorded, Average Recorded Investment | 83 | 166 | |
Combined, Average Recorded Investment | 3,298 | 2,332 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
Combined, Interest Income Recognized | 0 | 0 | |
Real estate | Secured by 1-4 family | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 1,233 | 0 | |
With An Allowanced Recorded, Recorded Investment | 236 | 118 | |
Combined, Recorded Investment | 1,469 | 118 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 1,233 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 236 | 118 | |
Combined, Unpaid Principal Balance | 1,469 | 118 | |
Related Allowance | 48 | 20 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 734 | 0 | |
With An Allowanced Recorded, Average Recorded Investment | 188 | 516 | |
Combined, Average Recorded Investment | 922 | 516 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
Combined, Interest Income Recognized | 0 | 0 | |
Consumer | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Recorded Investment | 55 | 0 | |
Combined, Recorded Investment | 55 | 0 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 55 | 0 | |
Combined, Unpaid Principal Balance | 55 | 0 | |
Related Allowance | 10 | 0 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Average Recorded Investment | 54 | 33 | |
Combined, Average Recorded Investment | 54 | 33 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
Combined, Interest Income Recognized | 0 | 0 | |
Equipment leases | |||
Recorded Investment | |||
With No Related Allowanced Recorded, Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Recorded Investment | 0 | 0 | |
Combined, Recorded Investment | 0 | 0 | |
Unpaid Principal Balance | |||
With No Related Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | |
With An Allowanced Recorded, Unpaid Principal Balance | 0 | 0 | |
Combined, Unpaid Principal Balance | 0 | 0 | |
Related Allowance | 0 | 0 | |
Average Recorded Investment | |||
With No Related Allowanced Recorded, Average Recorded Investment | 0 | 0 | |
With An Allowanced Recorded, Average Recorded Investment | 275 | 14 | |
Combined, Average Recorded Investment | 275 | 14 | |
Interest Income Recognized | |||
With No Related Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
With An Allowanced Recorded, Interest Income Recognized | 0 | 0 | |
Combined, Interest Income Recognized | $ 0 | $ 0 |
Loans Held for Investment and_8
Loans Held for Investment and Allowance for Loan Losses (Details 7) $ in Thousands | Dec. 31, 2018USD ($) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | $ 53,398 |
Non-accrual | 80,375 |
Current | 22,542,751 |
Total | 22,676,524 |
Premium finance loans past due and still accruing | 9,200 |
Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 39,688 |
Non-accrual | 40,331 |
Current | 8,662,285 |
Total | 8,742,304 |
Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,150 |
Non-accrual | 37,532 |
Current | 1,592,302 |
Total | 1,630,984 |
Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 0 |
Current | 5,877,524 |
Total | 5,877,524 |
Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 2,551 |
Non-accrual | 0 |
Current | 2,028,062 |
Total | 2,030,613 |
Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 0 |
Current | 64,957 |
Total | 64,957 |
Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 59 |
Non-accrual | 0 |
Current | 25,337 |
Total | 25,396 |
Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,738 |
Non-accrual | 0 |
Current | 2,786,299 |
Total | 2,788,037 |
Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 6,238 |
Non-accrual | 988 |
Current | 776,232 |
Total | 783,458 |
Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,718 |
Non-accrual | 1,469 |
Current | 354,435 |
Total | 357,622 |
Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Non-accrual | 55 |
Current | 63,383 |
Total | 63,438 |
Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 256 |
Non-accrual | 0 |
Current | 311,935 |
Total | 312,191 |
30 to 59 Days Past Due | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 22,025 |
30 to 59 Days Past Due | Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 16,845 |
30 to 59 Days Past Due | Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 59 |
30 to 59 Days Past Due | Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,738 |
30 to 59 Days Past Due | Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,643 |
30 to 59 Days Past Due | Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,484 |
30 to 59 Days Past Due | Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
30 to 59 Days Past Due | Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 256 |
60 to 89 Days Past Due | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 22,020 |
60 to 89 Days Past Due | Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 13,680 |
60 to 89 Days Past Due | Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 1,150 |
60 to 89 Days Past Due | Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 2,551 |
60 to 89 Days Past Due | Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 4,595 |
60 to 89 Days Past Due | Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 44 |
60 to 89 Days Past Due | Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
60 to 89 Days Past Due | Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 9,353 |
Greater Than 90 Days | Commercial | Business loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 9,163 |
Greater Than 90 Days | Commercial | Energy loans | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Mortgage Finance | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Construction | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Construction | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Construction | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Real estate | Market risk | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Real estate | Commercial | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Real estate | Secured by 1-4 family | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 190 |
Greater Than 90 Days | Consumer | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | 0 |
Greater Than 90 Days | Equipment leases | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |
Total Past Due | $ 0 |
Loans Held for Investment and_9
Loans Held for Investment and Allowance for Loan Losses (Details 8) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 7 | 4 |
Loans modified as restructured loans | $ | $ 12,458 | $ 7,640 |
Extended maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 0 | 2 |
Loans modified as restructured loans | $ | $ 0 | $ 712 |
Adjusted payment schedule | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 7 | 2 |
Loans modified as restructured loans | $ | $ 12,458 | $ 6,928 |
Commercial | Business loans | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 2 | 3 |
Loans modified as restructured loans | $ | $ 2,411 | $ 7,640 |
Commercial | Business loans | Extended maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 0 | 1 |
Loans modified as restructured loans | $ | $ 0 | $ 712 |
Commercial | Business loans | Adjusted payment schedule | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 2 | 2 |
Loans modified as restructured loans | $ | $ 2,411 | $ 6,928 |
Commercial | Energy loans | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 5 | 1 |
Loans modified as restructured loans | $ | $ 10,047 | $ 0 |
Commercial | Energy loans | Extended maturity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 0 | 1 |
Loans modified as restructured loans | $ | $ 0 | $ 0 |
Commercial | Energy loans | Adjusted payment schedule | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | loan | 5 | 0 |
Loans modified as restructured loans | $ | $ 10,047 | $ 0 |
OREO and Valuation Allowance _3
OREO and Valuation Allowance for Losses on OREO (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Real Estate [Roll Forward] | |||
Beginning balance | $ 11,742 | $ 18,961 | $ 278 |
Additions | 0 | 0 | 18,822 |
Sales | (11,663) | (1,108) | (139) |
Valuation allowance for OREO | 0 | 0 | 0 |
Direct write-downs | 0 | (6,111) | 0 |
Ending balance | 79 | 11,742 | 18,961 |
Other real estate owned write-down | $ 0 | 6,111 | $ 0 |
Gain on sale | $ 2,000 |
Certain Transfers of Financia_3
Certain Transfers of Financial Assets Certain Transfers of Financial Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding balance: | |||
Beginning balance | $ 1,012,580 | $ 980,414 | |
Loans purchased | 6,753,709 | 5,556,964 | |
Payments and loans sold | 5,816,504 | 5,524,798 | |
Ending balance | 1,949,785 | 1,012,580 | |
Fair value adjustment: | |||
Increase/(decrease) to fair value | 21,265 | 9,909 | |
Loans held for sale | 1,969,474 | 1,011,004 | |
Fair value over (under) outstanding balance | 19,689 | (1,576) | $ 8,333 |
Small Business Administration Loans [Member] | |||
Fair value adjustment: | |||
Fair value over (under) outstanding balance | $ 299 | $ 3,300 |
Certain Transfers of Financia_4
Certain Transfers of Financial Assets (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for sale | $ 1,949,785,000 | $ 1,012,580,000 | $ 980,414,000 |
Estimated exposure related to servicing assets | 1,600,000 | 1,300,000 | |
Principal amount outstanding of loans in servicing portfolio | 3,900,000,000 | 7,000,000,000 | |
Escrow deposits related to servicing portfolio | 37,900,000 | 73,400,000 | |
Losses due to repurchase indemnification and make-whole obligations | 258,000 | 31,000 | |
Greater Than 90 Days | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for sale | 16,800,000 | 19,700,000 | |
Mortgage servicing rights | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Impairment charges | 2,800,000 | ||
Government guarantees | Greater Than 90 Days | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for sale | 16,000,000 | $ 19,000,000 | |
Non-accrual | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Loans held for sale | $ 0 |
Certain Transfers of Financia_5
Certain Transfers of Financial Assets (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation Allowance for Impairment of Recognized Servicing Assets, Sales and Disposals [Abstract] | ||
Valuation allowance, beginning balance | $ 1,300 | |
Valuation allowance, ending balance | 1,600 | $ 1,300 |
Mortgage Servicing Rights | ||
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance, beginning of year | 88,150 | 28,536 |
Capitalized servicing rights | 39,149 | 67,970 |
Amortization | (9,278) | (8,356) |
Sales | (75,547) | 0 |
Balance, end of period | 42,474 | 88,150 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Sales and Disposals [Abstract] | ||
Valuation allowance, beginning balance | 2,823 | 0 |
Increase in valuation allowance | (2,823) | 2,823 |
Valuation allowance, ending balance | 0 | 2,823 |
MSRs, net | 42,474 | 85,327 |
Fair value | $ 44,502 | $ 86,321 |
Certain Transfers of Financia_6
Certain Transfers of Financial Assets (Details 3) - Mortgage Servicing Rights | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items] | ||
Average discount rates (percent) | 9.55% | 9.90% |
Expected prepayment speeds (percent) | 9.77% | 9.99% |
Weighted-average life, in years | 7 years | 7 years |
Certain Transfers of Financia_7
Certain Transfers of Financial Assets Certain Transfers of Financial Assets (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Transfers and Servicing [Abstract] | ||
50 bp adverse change in prepayment speed | $ (6,028) | $ (11,896) |
100 bp adverse change in prepayment speed | $ (11,629) | $ (28,226) |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill | ||
Gross | $ 15,468 | $ 15,468 |
Accumulated Amortization | (374) | (374) |
Net | 15,094 | 15,094 |
Intangible assets—customer relationships and trademarks | ||
Gross | 9,006 | 9,006 |
Accumulated Amortization | (5,530) | (5,060) |
Net | 3,476 | 3,946 |
Total goodwill and intangible assets | ||
Gross | 24,474 | 24,474 |
Accumulated Amortization | (5,904) | (5,434) |
Net | $ 18,570 | $ 19,040 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 470 | |
2,017 | 432 | |
2,018 | 405 | |
2,019 | 405 | |
2,020 | 382 | |
Thereafter | 1,382 | |
Net | $ 3,476 | $ 3,946 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Total intangible assets | $ 18,570 | $ 19,040 | |
Amortization expense related to intangible assets | $ 470 | $ 472 | $ 448 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of premises and equipment | |||
Premises and equipment, gross | $ 63,129 | $ 58,024 | |
Accumulated depreciation | (39,327) | (32,848) | |
Total premises and equipment, net | 23,802 | 25,176 | |
Depreciation, Depletion and Amortization | |||
Depreciation expense | 9,000 | 6,900 | $ 6,000 |
Premises | |||
Summary of premises and equipment | |||
Premises and equipment, gross | 27,999 | 25,790 | |
Furniture and equipment | |||
Summary of premises and equipment | |||
Premises and equipment, gross | $ 35,130 | $ 32,234 |
Premises and Equipment Premises
Premises and Equipment Premises and Equipment (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Rent expense | $ 16,500 | $ 14,400 | $ 13,700 |
2,019 | 14,652 | ||
2,020 | 15,549 | ||
2,021 | 15,846 | ||
2,022 | 15,012 | ||
2,023 | 14,070 | ||
2024 and thereafter | 28,666 | ||
Total | $ 103,795 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Non-interest bearing deposits | ||
Non-interest-bearing demand deposits | $ 7,317,161 | $ 7,812,660 |
Interest-bearing deposits | ||
Transaction | 3,051,535 | 2,567,208 |
Savings | 8,222,893 | 8,214,059 |
Time | 2,014,524 | 529,253 |
Total interest-bearing deposits | 13,288,952 | 11,310,520 |
Total deposits | $ 20,606,113 | $ 19,123,180 |
Deposits (Details 1)
Deposits (Details 1) $ in Thousands | Dec. 31, 2018USD ($) |
Scheduled maturities of interest bearing time deposits | |
2,015 | $ 1,990,962 |
2,016 | 21,894 |
2,017 | 778 |
2,018 | 263 |
2,019 | 127 |
2024 and after | 500 |
Interest bearing time deposits, total | $ 2,014,524 |
Deposits (Details 2)
Deposits (Details 2) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Deposits from related parties | $ 13.5 | $ 13.5 |
Interest-bearing time deposits of $250,000 or more | $ 270.2 | $ 300.5 |
Short-Term and Other Borrowin_3
Short-Term and Other Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Federal funds purchased | |||
Debt Instrument [Line Items] | |||
Amount outstanding at year-end | $ 629,169 | $ 359,338 | $ 101,800 |
Interest rate at year-end | 2.54% | 1.45% | 0.80% |
Average balance outstanding during the year | $ 323,140 | $ 215,895 | $ 90,904 |
Weighted-average interest rate during the year | 2.02% | 1.20% | 0.57% |
Maximum outstanding at any month end | $ 629,169 | $ 544,203 | $ 263,989 |
Customer repurchase agreements | |||
Debt Instrument [Line Items] | |||
Amount outstanding at year-end | $ 12,005 | $ 5,702 | $ 7,775 |
Interest rate at year-end | 0.09% | 0.03% | 0.05% |
Average balance outstanding during the year | $ 9,812 | $ 6,590 | $ 15,380 |
Weighted-average interest rate during the year | 0.09% | 0.04% | 0.06% |
Maximum outstanding at any month end | $ 13,835 | $ 8,727 | $ 18,884 |
FHLB borrowings | |||
Debt Instrument [Line Items] | |||
Amount outstanding at year-end | $ 3,900,000 | $ 2,800,000 | $ 2,000,000 |
Interest rate at year-end | 2.56% | 1.35% | 0.61% |
Average balance outstanding during the year | $ 1,769,452 | $ 1,395,753 | $ 1,367,267 |
Weighted-average interest rate during the year | 2.05% | 1.08% | 0.43% |
Maximum outstanding at any month end | $ 4,000,000 | $ 2,800,000 | $ 2,025,000 |
Short-Term and Other Borrowin_4
Short-Term and Other Borrowings (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Summary of other borrowing capacities | |||
Total FHLB borrowing capacity | $ 4,569,563,000 | $ 3,893,066,000 | $ 3,059,568,000 |
Unused Federal funds lines available from commercial banks | 620,000,000 | 885,000,000 | 1,118,000,000 |
Unused Federal Reserve Borrowings capacity | 4,933,965,000 | 4,114,594,000 | 3,179,087,000 |
Unused revolving line of credit | 130,000,000 | 130,000,000 | 130,000,000 |
Average amount oustanding | 0 | 0 | 6,800,000 |
FHLB borrowing capacity relating to loans | |||
Summary of other borrowing capacities | |||
Total FHLB borrowing capacity | 4,568,842,000 | 3,890,995,000 | 3,057,915,000 |
FHLB borrowing capacity relating to securities | |||
Summary of other borrowing capacities | |||
Total FHLB borrowing capacity | $ 721,000 | $ 2,071,000 | $ 1,653,000 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2014 | Sep. 21, 2012 |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Trust preferred securities issued | $ 113,406 | $ 113,406 | $ 175,000 | $ 111,000 |
Stated interest rate | 5.25% | 6.50% | ||
Trust preferred subordinated debentures | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Total borrowings | $ 113,400 |
Long-Term Debt (Details 1)
Long-Term Debt (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2014 | Sep. 21, 2012 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Trust preferred securities issued | $ 113,406 | $ 113,406 | $ 175,000 | $ 111,000 |
Texas Capital Bancshares Statutory Trust I | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Date issued | Nov. 19, 2002 | |||
Trust preferred securities issued | $ 10,310 | |||
Floating or fixed rate securities | Floating | |||
Maturity date | Nov. 30, 2032 | |||
Texas Capital Bancshares Statutory Trust I | LIBOR | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Interest rate on subordinated debentures | 3 month LIBOR + 3.35% | |||
Interest rate on subordinated debentures, spread on variable rate | 3.35% | |||
Texas Capital Statutory Trust II | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Date issued | Apr. 10, 2003 | |||
Trust preferred securities issued | $ 10,310 | |||
Floating or fixed rate securities | Floating | |||
Maturity date | Apr. 30, 2033 | |||
Texas Capital Statutory Trust II | LIBOR | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Interest rate on subordinated debentures | 3 month LIBOR + 3.25% | |||
Interest rate on subordinated debentures, spread on variable rate | 3.25% | |||
Texas Capital Statutory Trust III | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Date issued | Oct. 6, 2005 | |||
Trust preferred securities issued | $ 25,774 | |||
Floating or fixed rate securities | Floating | |||
Maturity date | Dec. 31, 2035 | |||
Texas Capital Statutory Trust III | LIBOR | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Interest rate on subordinated debentures | 3 month LIBOR + 1.51% | |||
Interest rate on subordinated debentures, spread on variable rate | 1.51% | |||
Texas Capital Statutory Trust IV | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Date issued | Apr. 28, 2006 | |||
Trust preferred securities issued | $ 25,774 | |||
Floating or fixed rate securities | Floating | |||
Maturity date | Jun. 30, 2036 | |||
Texas Capital Statutory Trust IV | LIBOR | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Interest rate on subordinated debentures | 3 month LIBOR + 1.60% | |||
Interest rate on subordinated debentures, spread on variable rate | 1.60% | |||
Texas Capital Statutory Trust V | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Date issued | Sep. 29, 2006 | |||
Trust preferred securities issued | $ 41,238 | |||
Floating or fixed rate securities | Floating | |||
Maturity date | Dec. 31, 2036 | |||
Texas Capital Statutory Trust V | LIBOR | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Interest rate on subordinated debentures | 3 month LIBOR + 1.71% | |||
Interest rate on subordinated debentures, spread on variable rate | 1.71% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||||||||||
Tax impact of TCJA | $ 17,600 | ||||||||||
Current: | |||||||||||
Federal | 82,556 | $ 94,112 | $ 86,612 | ||||||||
State | 3,808 | 3,257 | 2,412 | ||||||||
Total | 86,364 | 97,369 | 89,024 | ||||||||
Deferred: | |||||||||||
Federal | (6,400) | 31,276 | (2,946) | ||||||||
State | 0 | 0 | 0 | ||||||||
Total | (6,400) | 31,276 | (2,946) | ||||||||
Total expense: | |||||||||||
Federal | 76,156 | 125,388 | 83,666 | ||||||||
State | 3,808 | 3,257 | 2,412 | ||||||||
Total | $ 19,200 | $ 22,998 | $ 18,424 | $ 19,342 | $ 50,143 | $ 29,850 | $ 25,819 | $ 22,833 | $ 79,964 | $ 128,645 | $ 86,078 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Tax at U.S. statutory rate | 21.00% | 35.00% | 35.00% |
State taxes (percent) | 1.00% | 1.00% | 1.00% |
Non-deductible expenses (percent) | 1.00% | 1.00% | 1.00% |
Deductible tax asset write-off (percent) | 0.00% | 5.00% | 0.00% |
Non-taxable income (percent) | (1.00%) | (1.00%) | (1.00%) |
Other (percent) | (1.00%) | (1.00%) | (0.00%) |
Total (percent) | 21.00% | 40.00% | 36.00% |
Deferred tax assets: | |||
Allowance for credit losses | $ 44,224 | $ 42,213 | |
Loan origination fees | 11,328 | 10,084 | |
Stock compensation | 3,363 | 4,460 | |
Non-accrual interest | 1,724 | 1,680 | |
Non-qualified deferred compensation | 2,211 | 1,217 | |
Other | 2,517 | 3,380 | |
Total deferred tax assets | 65,367 | 63,034 | |
Deferred tax liabilities: | |||
Loan origination costs | (2,049) | (1,304) | |
Leases | (9,000) | (6,850) | |
MSRs | (9,184) | (17,619) | |
Depreciation | (8,233) | (7,354) | |
Unrealized gain on securities | (138) | (138) | |
Other | (2,662) | (2,068) | |
Total deferred tax liabilities | (31,266) | (35,333) | |
Net deferred tax asset | $ 34,101 | $ 27,701 |
Stock-Based Compensation and _3
Stock-Based Compensation and Employee Benefits (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employer contribution | $ 9,600,000 | $ 8,400,000 | $ 6,800,000 |
Eligible employee contribution, minimum (in percent) | 1.00% | ||
Eligible employee contribution, maximum (in percent) | 10.00% | ||
Number of shares authorized under the plan | 2,550,000 | ||
Number of shares available to be issued under the plan | 2,121,515 | ||
Compensation expense | $ 8,803,000 | ||
Compensation cost for all share-based arrangements, net of taxes | 9,000,000 | 8,100,000 | $ 5,100,000 |
Employer discretionary contributions | $ 1,000,000 | $ 260,000 | |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 95,891 | 121,243 | 213,577 |
Compensation expense | $ 7,790,000 | $ 4,771,000 | |
Weighted average remaining contractual life of SARs (in years) | 8 years 1 month 16 days | 8 years 4 months | 8 years 7 months 24 days |
Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) | 2 years 10 months 25 days | 3 years 1 month 25 days | 3 years 4 months 15 days |
SARs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | 0 | 0 |
Compensation expense | $ 121,000 | $ 265,000 | $ 307,000 |
Weighted average remaining contractual life of SARs (in years) | 2 years 5 months 9 days | 3 years 4 months 5 days | 4 years 3 months 24 days |
Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) | 2 months 1 day | 9 months | 1 year 6 months 7 days |
Cash based performance | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of cash-based performance units issued in period | 138,773 | 121,260 | 224,071 |
Number of cash-based performance units outstanding | 325,719 | ||
Cash-based compensation expense | $ 8,000,000 | $ 13,900,000 | $ 8,500,000 |
Service based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Minimum | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | 4 years | 4 years |
Maximum | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 5 years | 5 years | 5 years |
Director | RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | ||
2006 ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized under the plan | 400,000 | ||
Number of shares purchased under the plan | 143,348 | 132,285 | 124,572 |
Stock-Based Compensation and _4
Stock-Based Compensation and Employee Benefits (Details 3) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Additional Information: | |||
Compensation expense | $ 8,803,000 | ||
Unrecognized compensation expense | $ 16,538,000 | ||
SARs | |||
SARs | |||
RSUs outstanding at beginning of year | 74,363 | 125,863 | 360,544 |
Granted | 0 | 0 | 0 |
SARs exercised | (33,013) | (51,500) | (234,681) |
SARs forfeited | 0 | 0 | 0 |
RSUs outstanding at year-end | 41,350 | 74,363 | 125,863 |
Weighted Average Exercise Price | |||
SARs outstanding at beginning of year, weighted average exercise price | $ 30.12 | $ 31.68 | $ 25.73 |
SARs granted, weighted average exercise price | 0 | 0 | 0 |
SARs exercised, weighted average exercise price | 31.35 | 33.94 | 22.54 |
SARs forfeited, weighted average exercise price | 0 | 0 | 0 |
SARs outstanding at year end, weighted average exercise price | $ 29.13 | $ 30.12 | $ 31.68 |
Additional Information: | |||
SARs vested and exercisable at year-end | 39,750 | 60,463 | 94,463 |
SARs vested and exercisable at year end, weighted average exercise price | $ 27.81 | $ 26.02 | $ 26.73 |
Weighted average remaining contractual life of SARs vested (in years) | 2 years 3 months 29 days | 2 years 9 months 27 days | 3 years 7 months 12 days |
Compensation expense | $ 121,000 | $ 265,000 | $ 307,000 |
Unrecognized compensation expense | $ 6,000 | $ 127,000 | $ 392,000 |
Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) | 2 months 1 day | 9 months | 1 year 6 months 7 days |
Fair value of shares vested during the year | $ 210,807 | $ 294,000 | $ 337,000 |
Weighted average remaining contractual life of SARs (in years) | 2 years 5 months 9 days | 3 years 4 months 5 days | 4 years 3 months 24 days |
Intrinsic value of SARs exercised | $ 925,479 | $ 3,802,000 | $ 4,881,000 |
Stock-Based Compensation and _5
Stock-Based Compensation and Employee Benefits (Details 4) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted- Average Grant- Date Fair Value | |||
Compensation expense | $ 8,803,000 | ||
Unrecognized compensation expense | $ 16,538,000 | ||
RSUs | |||
Number of Shares | |||
RSUs outstanding at beginning of year | 423,732 | 425,055 | 333,174 |
Granted | 95,891 | 121,243 | 213,577 |
RSUs exercised | (121,507) | (102,057) | (94,296) |
SARs forfeited | (48,583) | (20,509) | (27,400) |
RSUs outstanding at year-end | 349,533 | 423,732 | 425,055 |
Weighted- Average Grant- Date Fair Value | |||
Balance at beginning of year, weighted average grant-date fair value | $ 60.01 | $ 51.28 | $ 48.60 |
Granted, weighted average grant-date fair value | 88.07 | 80.40 | 51.75 |
RSUs exercised | 54.97 | 48.93 | 42.87 |
Forfeited, weighted average grant-date fair value | 63.60 | 54.75 | 51.18 |
Balance at year end, weighted average grant-date fair value | $ 69.11 | $ 60.01 | $ 51.28 |
Compensation expense | $ 7,790,000 | $ 4,771,000 | |
Unrecognized compensation expense | $ 18,730,000 | $ 17,167,000 | |
Weighted average period over which unrecognized compensation expense is expected to be recognized (in years) | 2 years 10 months 25 days | 3 years 1 month 25 days | 3 years 4 months 15 days |
Weighted average remaining contractual life of RSUs (in years) | 8 years 1 month 16 days | 8 years 4 months | 8 years 7 months 24 days |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance For Off-Balance Sheet Credit Losses [Roll Forward] | ||
Beginning balance of allowance for off-balance sheet credit losses | $ 9,071 | $ 11,422 |
Provision for off-balance sheet credit losses | 2,363 | (2,351) |
Ending balance of allowance for off-balance sheet credit losses | 11,434 | 9,071 |
Commitments to extend credit | ||
Allowance For Off-Balance Sheet Credit Losses [Roll Forward] | ||
Off-balance sheet liability | 8,030,198 | 6,957,847 |
Standby letters of credit | ||
Allowance For Off-Balance Sheet Credit Losses [Roll Forward] | ||
Off-balance sheet liability | $ 236,537 | $ 230,958 |
Regulatory Restrictions (Detail
Regulatory Restrictions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | ||
Required reserve balance at the Federal Reserve | $ 157,700 | $ 197,300 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Mortgage finance | 5,877,524 | 5,308,160 |
Mortgage Finance, Average Balance | 5,000,000 | |
Common Equity Tier 1 [Abstract] | ||
CET1, actual amount | 2,330,599 | 2,033,830 |
Total capital (to risk-weighted assets): | ||
Total capital (to risk weighted assets), actual amount | 3,074,097 | 2,768,153 |
Tier 1 capital (to risk-weighted assets): | ||
Tier 1 capital (to risk-weighted assets), actual amount | 2,589,374 | 2,293,016 |
Tier 1 capital (to average assets): | ||
Tier 1 capital (to average assets), actual amount | $ 2,589,374 | $ 2,293,016 |
Risk Based Ratios [Abstract] | ||
CET1, actual ratio | 8.58% | 8.45% |
Total capital (to risk weighted assets), actual ratio | 11.31% | 11.50% |
Tier 1 capital (to risk-weighted assets), actual ratio | 9.53% | 9.52% |
Tier 1 capital (to average assets), actual ratio | 9.87% | 9.15% |
Bank | ||
Common Equity Tier 1 [Abstract] | ||
CET1, actual amount | $ 2,340,988 | $ 1,992,152 |
CET1 to be well capitalized under prompt corrective action provisions, amount | 1,765,915 | 1,563,929 |
Total capital (to risk-weighted assets): | ||
Total capital (to risk weighted assets), actual amount | 2,925,872 | 2,567,961 |
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, amount | 2,716,793 | 2,406,044 |
Tier 1 capital (to risk-weighted assets): | ||
Tier 1 capital (to risk-weighted assets), actual amount | 2,499,763 | 2,151,338 |
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, amount | 2,173,434 | 1,924,835 |
Tier 1 capital (to average assets): | ||
Tier 1 capital (to average assets), actual amount | 2,499,763 | 2,151,338 |
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, amount | $ 1,311,620 | $ 1,252,680 |
Risk Based Ratios [Abstract] | ||
CET1, actual ratio | 8.62% | 8.28% |
CET1 to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Total capital (to risk weighted assets), actual ratio | 10.77% | 10.67% |
Total capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), actual ratio | 9.20% | 8.94% |
Tier 1 capital (to risk weighted assets) to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Tier 1 capital (to average assets), actual ratio | 9.53% | 8.59% |
Tier 1 capital (to average assets) to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% |
Basel III, Phase-In Schedule | ||
Common Equity Tier 1 [Abstract] | ||
CET1 for capital adequacy purposes, amount | $ 1,732,501 | $ 1,384,448 |
Total capital (to risk-weighted assets): | ||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 2,683,679 | 2,227,221 |
Tier 1 capital (to risk-weighted assets): | ||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,140,149 | 1,745,659 |
Tier 1 capital (to average assets): | ||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,049,694 | $ 1,002,494 |
Risk Based Ratios [Abstract] | ||
CET1 for capital adequacy purposes, ratio | 6.38% | 5.75% |
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 9.88% | 9.25% |
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 7.88% | 7.25% |
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | 4.00% |
Basel III, Phase-In Schedule | Bank | ||
Common Equity Tier 1 [Abstract] | ||
CET1 for capital adequacy purposes, amount | $ 1,731,955 | $ 1,383,475 |
Total capital (to risk-weighted assets): | ||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 2,682,833 | 2,225,591 |
Tier 1 capital (to risk-weighted assets): | ||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,139,474 | 1,744,382 |
Tier 1 capital (to average assets): | ||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,049,296 | $ 1,002,144 |
Risk Based Ratios [Abstract] | ||
CET1 for capital adequacy purposes, ratio | 6.38% | 5.75% |
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 9.88% | 9.25% |
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 7.88% | 7.25% |
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | 4.00% |
Basel III, Phased-In | ||
Common Equity Tier 1 [Abstract] | ||
CET1 for capital adequacy purposes, amount | $ 1,902,354 | $ 1,685,464 |
Total capital (to risk-weighted assets): | ||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 2,853,532 | 2,528,196 |
Tier 1 capital (to risk-weighted assets): | ||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,310,002 | 2,046,635 |
Tier 1 capital (to average assets): | ||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,049,694 | $ 1,002,494 |
Risk Based Ratios [Abstract] | ||
CET1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 10.50% | 10.50% |
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 8.50% | 8.50% |
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | 4.00% |
Basel III, Phased-In | Bank | ||
Common Equity Tier 1 [Abstract] | ||
CET1 for capital adequacy purposes, amount | $ 1,901,755 | $ 1,684,231 |
Total capital (to risk-weighted assets): | ||
Total capital (to risk weighted assets) for capital adequacy purposes, amount | 2,852,632 | 2,526,347 |
Tier 1 capital (to risk-weighted assets): | ||
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, amount | 2,309,274 | 2,045,138 |
Tier 1 capital (to average assets): | ||
Tier 1 capital (to average assets) for capital adequacy purposes, amount | $ 1,049,296 | $ 1,002,144 |
Risk Based Ratios [Abstract] | ||
CET1 for capital adequacy purposes, ratio | 7.00% | 7.00% |
Total capital (to risk weighted assets) for capital adequacy purposes, ratio | 10.50% | 10.50% |
Tier 1 capital (to risk-weighted assets) for capital adequacy purposes, ratio | 8.50% | 8.50% |
Tier 1 capital (to average assets) for capital adequacy purposes, ratio | 4.00% | 4.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||||||||||
Net income | $ 71,891 | $ 85,552 | $ 71,436 | $ 71,945 | $ 44,742 | $ 58,684 | $ 51,095 | $ 42,542 | $ 300,824 | $ 197,063 | $ 155,119 |
Preferred stock dividends | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | 9,750 | 9,750 | 9,750 |
Net income available to common stockholders | $ 69,454 | $ 83,114 | $ 68,999 | $ 69,507 | $ 42,305 | $ 56,246 | $ 48,658 | $ 40,104 | $ 291,074 | $ 187,313 | $ 145,369 |
Denominator: | |||||||||||
Denominator for basic earnings per share—weighted average shares | 49,936,702 | 49,587,169 | 46,239,210 | ||||||||
Effect of employee stock-based awards | 218,275 | 239,008 | 128,228 | ||||||||
Effect of warrants to purchase common stock | 117,895 | 433,657 | 398,464 | ||||||||
Denominator for dilutive earnings per share—adjusted weighted average shares and assumed conversions | 50,272,872 | 50,259,834 | 46,765,902 | ||||||||
Basic earnings per common share | $ 1.38 | $ 1.66 | $ 1.39 | $ 1.40 | $ 0.85 | $ 1.13 | $ 0.98 | $ 0.81 | $ 5.83 | $ 3.78 | $ 3.14 |
Diluted earnings per common share | $ 1.38 | $ 1.65 | $ 1.38 | $ 1.38 | $ 0.84 | $ 1.12 | $ 0.97 | $ 0.80 | $ 5.79 | $ 3.73 | $ 3.11 |
Stock options excluded from computation of EPS | 27,100 | 13,500 | 150,416 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | $ 103,046 | |||
Investment securities | 103,046 | |||
Loans held for sale | 1,969,200 | $ 1,007,700 | ||
OREO | 79 | 11,742 | $ 18,961 | $ 278 |
Tax-exempt asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 95,804 | |||
Fair value measurements, recurring basis | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | 0 | 0 | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Non-qualified deferred compensation plan liabilities | 10,148 | 5,587 | ||
Fair value measurements, recurring basis | Level 1 | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 0 | 0 | ||
Fair value measurements, recurring basis | Level 1 | Tax-exempt asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 0 | |||
Fair value measurements, recurring basis | Level 1 | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 10,262 | 5,460 | ||
Fair value measurements, recurring basis | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | 1,952,760 | 1,007,695 | ||
Derivative assets | 21,806 | 16,719 | ||
Derivative liabilities | 41,375 | 17,377 | ||
Non-qualified deferred compensation plan liabilities | 0 | 0 | ||
Fair value measurements, recurring basis | Level 2 | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 7,242 | 10,945 | ||
Fair value measurements, recurring basis | Level 2 | Tax-exempt asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 0 | |||
Fair value measurements, recurring basis | Level 2 | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 6,908 | 7,106 | ||
Fair value measurements, recurring basis | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans held for sale | 16,415 | 0 | ||
Derivative assets | 0 | 0 | ||
Derivative liabilities | 0 | 0 | ||
Non-qualified deferred compensation plan liabilities | 0 | 0 | ||
Fair value measurements, recurring basis | Level 3 | Residential mortgage-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 0 | 0 | ||
Fair value measurements, recurring basis | Level 3 | Tax-exempt asset-backed securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 95,804 | |||
Fair value measurements, recurring basis | Level 3 | Equity securities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment securities | 0 | 0 | ||
Fair value measurements, nonrecurring basis | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans | 0 | 0 | ||
OREO | 0 | 0 | ||
Fair value measurements, nonrecurring basis | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans | 0 | 0 | ||
OREO | 0 | 0 | ||
Fair value measurements, nonrecurring basis | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans | 29,885 | 21,216 | ||
OREO | $ 79 | $ 11,742 |
Fair Value Disclosures (Detai_2
Fair Value Disclosures (Details 1) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Tax-exempt asset-backed securities | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at Beginning of Period | $ 0 |
Purchases / Additions | 95,521 |
Sales / Reductions | (3) |
Realized | 0 |
Unrealized | 286 |
Balance at End of Period | 95,804 |
Loans held for sale | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Balance at Beginning of Period | 0 |
Purchases / Additions | 38,430 |
Sales / Reductions | (20,591) |
Realized | (173) |
Unrealized | (1,251) |
Balance at End of Period | $ 16,415 |
Fair Value Disclosures (Detai_3
Fair Value Disclosures (Details 2) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Impaired loans | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset measured on nonrecurring basis, carrying value | $ 32,200 | $ 32,200 |
Asset measured on nonrecurring basis, specific valuation allowance | 2,300 | 11,000 |
Asset measured on nonrecurring basis, reported fair value | 29,900 | 21,200 |
OREO | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset measured on nonrecurring basis, carrying value | $ 79 | $ 11,742 |
Measurement Input, Discount Rate | ||
Fair Value Assets Measured On Non Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Asset-Backed Securities, Measurement Input | 0.0421 | |
Asset-Backed Securities, Term | 9 years 2 months 13 days | |
Loans Held-for-sale, Measurement Input | 0.929 |
Fair Value Disclosures (Detai_4
Fair Value Disclosures (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | $ 103,046 | |
Loans held for sale | 1,969,200 | $ 1,007,700 |
Subordinated notes | 281,767 | 281,406 |
Level 1 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 10,262 | 5,460 |
Level 1 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 3,080,065 | 2,905,591 |
Investment securities | 10,262 | 5,460 |
Level 2 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 14,150 | 18,051 |
Loans held for sale | 1,953,059 | 1,011,004 |
Derivative assets | 21,806 | 16,719 |
Federal funds purchased | 629,169 | 359,338 |
Customer repurchase agreements | 12,005 | 5,702 |
Other borrowings | 3,900,000 | 2,800,000 |
Subordinated notes | 281,767 | 281,406 |
Derivative liabilities | 41,375 | 17,377 |
Level 2 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 14,150 | 18,051 |
Loans held for sale | 1,953,059 | 1,011,004 |
Derivative assets | 21,806 | 16,719 |
Federal funds purchased | 629,169 | 359,338 |
Customer repurchase agreements | 12,005 | 5,702 |
Other borrowings | 3,900,000 | 2,800,000 |
Subordinated notes | 283,349 | 285,485 |
Derivative liabilities | 41,375 | 17,377 |
Level 3 | Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 95,804 | 0 |
Loans held for sale | 16,415 | 0 |
Loans held for investment, net | 22,376,552 | 20,489,757 |
Deposits | 20,606,113 | 19,123,180 |
Trust preferred subordinated debentures | 113,406 | 113,406 |
Level 3 | Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Investment securities | 95,804 | 0 |
Loans held for sale | 16,415 | 0 |
Loans held for investment, net | 22,347,876 | 20,480,802 |
Deposits | 20,608,494 | 19,124,121 |
Trust preferred subordinated debentures | $ 113,406 | $ 113,406 |
Parent Company Only (Details)
Parent Company Only (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2014 | Sep. 21, 2012 |
Assets | ||||||
Cash and cash equivalents | $ 3,080,065 | $ 2,905,591 | $ 2,839,352 | $ 1,790,870 | ||
Loans held for investment (net of unearned income) | 16,690,550 | 15,366,252 | ||||
Other assets | 626,614 | 516,239 | ||||
Total assets | 28,257,767 | 25,075,645 | ||||
Liabilities and Stockholders’ Equity | ||||||
Subordinated notes, net | 281,767 | 281,406 | ||||
Trust preferred subordinated debentures | 113,406 | 113,406 | $ 175,000 | $ 111,000 | ||
Total liabilities | 25,757,373 | 22,872,924 | ||||
Preferred stock | 150,000 | 150,000 | ||||
Common stock | 502 | 496 | ||||
Additional paid-in capital | 967,890 | 961,305 | ||||
Retained earnings | 1,381,492 | 1,090,500 | ||||
Treasury stock | (8) | (8) | ||||
Accumulated other comprehensive income | 518 | 428 | ||||
Total stockholders’ equity | 2,500,394 | 2,202,721 | 2,009,557 | 1,623,533 | ||
Total liabilities and stockholders’ equity | 28,257,767 | 25,075,645 | ||||
Texas Capital Bancshares, Inc. | ||||||
Assets | ||||||
Cash and cash equivalents | 89,561 | 144,635 | $ 220,499 | $ 53,061 | ||
Loans held for investment (net of unearned income) | 7,500 | 7,500 | ||||
Investment in subsidiaries | 2,534,341 | 2,184,601 | ||||
Other assets | 87,451 | 86,300 | ||||
Total assets | 2,718,853 | 2,423,036 | ||||
Liabilities and Stockholders’ Equity | ||||||
Other liabilities | 1,471 | 1,244 | ||||
Subordinated notes, net | 108,614 | 108,513 | ||||
Trust preferred subordinated debentures | 113,406 | 113,406 | ||||
Total liabilities | 223,491 | 223,163 | ||||
Preferred stock | 150,000 | 150,000 | ||||
Common stock | 502 | 496 | ||||
Additional paid-in capital | 978,042 | 971,457 | ||||
Retained earnings | 1,366,308 | 1,077,500 | ||||
Treasury stock | (8) | (8) | ||||
Accumulated other comprehensive income | 518 | 428 | ||||
Total stockholders’ equity | 2,495,362 | 2,199,873 | ||||
Total liabilities and stockholders’ equity | $ 2,718,853 | $ 2,423,036 |
Parent Company Only (Details 1)
Parent Company Only (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Earnings | |||||||||||
Interest on loans | $ 1,124,970 | $ 846,292 | $ 684,582 | ||||||||
Other non-interest income | 26,559 | 15,080 | 13,704 | ||||||||
Interest expense | $ 81,045 | $ 69,579 | $ 55,140 | $ 43,569 | $ 38,870 | $ 33,282 | $ 25,232 | $ 20,587 | 249,333 | 117,971 | 63,594 |
Salaries and employee benefits | 291,768 | 264,231 | 228,985 | ||||||||
Legal and professional | 42,990 | 29,731 | 23,326 | ||||||||
Other non-interest expense | 50,890 | 42,859 | 37,033 | ||||||||
Income tax expense | 19,200 | 22,998 | 18,424 | 19,342 | 50,143 | 29,850 | 25,819 | 22,833 | 79,964 | 128,645 | 86,078 |
Net income | 71,891 | 85,552 | 71,436 | 71,945 | 44,742 | 58,684 | 51,095 | 42,542 | 300,824 | 197,063 | 155,119 |
Preferred stock dividends | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | 9,750 | 9,750 | 9,750 |
Net income available to common stockholders | $ 69,454 | $ 83,114 | $ 68,999 | $ 69,507 | $ 42,305 | $ 56,246 | $ 48,658 | $ 40,104 | 291,074 | 187,313 | 145,369 |
Texas Capital Bancshares, Inc. | |||||||||||
Statement of Earnings | |||||||||||
Interest on loans | 3,398 | 3,271 | 3,250 | ||||||||
Dividend income | 10,400 | 10,400 | 10,400 | ||||||||
Other income | 142 | 108 | 90 | ||||||||
Total income | 13,940 | 13,779 | 13,740 | ||||||||
Other non-interest income | 7 | 13 | 152 | ||||||||
Interest expense | 12,031 | 10,908 | 10,525 | ||||||||
Salaries and employee benefits | 588 | 489 | 431 | ||||||||
Legal and professional | 2,020 | 1,700 | 1,429 | ||||||||
Other non-interest expense | 2,013 | 1,761 | 1,594 | ||||||||
Total expense | 16,652 | 14,858 | 13,979 | ||||||||
Income (loss) before income taxes and equity in undistributed income of subsidiary | (2,705) | (1,066) | (87) | ||||||||
Income tax expense | (587) | (371) | (33) | ||||||||
Income before income taxes | (2,118) | (695) | (54) | ||||||||
Equity in undistributed income of subsidiary | 300,758 | 194,118 | 151,445 | ||||||||
Net income | 298,640 | 193,423 | 151,391 | ||||||||
Preferred stock dividends | 9,750 | 9,750 | 9,750 | ||||||||
Net income available to common stockholders | $ 288,890 | $ 183,673 | $ 141,641 |
Parent Company Only (Details 2)
Parent Company Only (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||||||||||
Net income | $ 71,891 | $ 85,552 | $ 71,436 | $ 71,945 | $ 44,742 | $ 58,684 | $ 51,095 | $ 42,542 | $ 300,824 | $ 197,063 | $ 155,119 |
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Increase in other assets | (123,542) | (117,116) | (61,832) | ||||||||
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | (2,013) | ||||||||
Increase (decrease) in other liabilities | (5,026) | 10,289 | (2,576) | ||||||||
Net cash provided by (used in) operating activities | (679,715) | 132,161 | (726,293) | ||||||||
Investing Activities | |||||||||||
Net cash used in investing activities | (1,992,746) | (3,215,745) | (850,210) | ||||||||
Financing Activities | |||||||||||
Proceeds from sale of common stock | 0 | 0 | 236,467 | ||||||||
Preferred dividends paid | (9,750) | (9,750) | (9,750) | ||||||||
Net other borrowings | 1,100,000 | 800,000 | 500,000 | ||||||||
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | 2,013 | ||||||||
Net cash provided by financing activities | 2,846,935 | 3,149,823 | 2,624,985 | ||||||||
Net increase (decrease) in cash and cash equivalents | 174,474 | 66,239 | 1,048,482 | ||||||||
Cash and cash equivalents at beginning of period | 2,905,591 | 2,839,352 | 2,905,591 | 2,839,352 | 1,790,870 | ||||||
Cash and cash equivalents at end of period | 3,080,065 | 2,905,591 | 3,080,065 | 2,905,591 | 2,839,352 | ||||||
Texas Capital Bancshares, Inc. | |||||||||||
Operating activities | |||||||||||
Net income | 298,640 | 193,423 | 151,391 | ||||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Equity in undistributed income of subsidiary | (300,758) | (194,118) | (151,445) | ||||||||
Amortization | 101 | 101 | 101 | ||||||||
Increase in other assets | (1,152) | (739) | (10) | ||||||||
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | (2,013) | ||||||||
Increase (decrease) in other liabilities | 227 | (40) | 165 | ||||||||
Net cash provided by (used in) operating activities | (2,942) | (1,373) | (1,811) | ||||||||
Investing Activities | |||||||||||
Net increase in loans held for investment | 0 | (7,500) | 0 | ||||||||
Investments in and advances to subsidiaries | (40,000) | (55,000) | (57,000) | ||||||||
Net cash used in investing activities | (40,000) | (62,500) | (57,000) | ||||||||
Financing Activities | |||||||||||
Costs from issuance of stock related to stock-based awards and warrants | (2,382) | (2,241) | (2,481) | ||||||||
Proceeds from sale of common stock | 0 | 0 | 236,467 | ||||||||
Preferred dividends paid | (9,750) | (9,750) | (9,750) | ||||||||
Excess tax benefits from stock-based compensation arrangements | 0 | 0 | 2,013 | ||||||||
Net cash provided by financing activities | (12,132) | (11,991) | 226,249 | ||||||||
Net increase (decrease) in cash and cash equivalents | (55,074) | (75,864) | 167,438 | ||||||||
Cash and cash equivalents at beginning of period | $ 144,635 | $ 220,499 | 144,635 | 220,499 | 53,061 | ||||||
Cash and cash equivalents at end of period | $ 89,561 | $ 144,635 | $ 89,561 | $ 144,635 | $ 220,499 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 1 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Deposits from related parties | $ 13.5 | $ 13.5 | |
Minimum | Director | |||
Related Party Transaction [Line Items] | |||
Transaction processing services fee | $ 0.4 | ||
Maximum | Director | |||
Related Party Transaction [Line Items] | |||
Transaction processing services fee | $ 0.6 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details 1) - Non-hedging - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Estimated fair value, asset derivative | $ 29,574 | $ 21,354 |
Estimated fair value, liability derivative | 49,143 | 22,012 |
Offsetting derivative liabilities | (7,768) | (4,635) |
Offsetting derivative assets | (7,768) | (4,635) |
Net asset derivatives included in the consolidated balance sheets | 21,806 | 16,719 |
Net liability derivatives included in the consolidated balance sheets | 41,375 | 17,377 |
Interest rate contract | Loan purchase commitments | ||
Derivative [Line Items] | ||
Notional amount | 167,984 | 253,815 |
Estimated fair value, asset derivative | 1,442 | 635 |
Estimated fair value, liability derivative | 6 | 190 |
Interest rate contract | Loan purchase commitments | ||
Derivative [Line Items] | ||
Notional amount | 1,928,527 | 1,086,224 |
Estimated fair value, asset derivative | 0 | 0 |
Estimated fair value, liability derivative | 21,005 | 1,103 |
Financial institution counterparties | Commercial loan/lease | Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 1,579,328 | 1,393,764 |
Estimated fair value, asset derivative | 7,978 | 4,736 |
Estimated fair value, liability derivative | 16,719 | 15,482 |
Financial institution counterparties | Commercial loan/lease | Interest rate cap | ||
Derivative [Line Items] | ||
Notional amount | 606,950 | 242,700 |
Estimated fair value, asset derivative | 1,109 | 421 |
Estimated fair value, liability derivative | 4 | 7 |
Financial institution counterparties | Commercial loan/lease | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount | 39,737 | 2,466 |
Estimated fair value, asset derivative | 2,263 | 4 |
Estimated fair value, liability derivative | 59 | 69 |
Customer counterparties | Commercial loan/lease | Interest rate swap | ||
Derivative [Line Items] | ||
Notional amount | 1,579,328 | 1,393,764 |
Estimated fair value, asset derivative | 16,719 | 15,482 |
Estimated fair value, liability derivative | 7,978 | 4,736 |
Customer counterparties | Commercial loan/lease | Interest rate cap | ||
Derivative [Line Items] | ||
Notional amount | 606,950 | 242,700 |
Estimated fair value, asset derivative | 4 | 7 |
Estimated fair value, liability derivative | 1,109 | 421 |
Customer counterparties | Commercial loan/lease | Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Notional amount | 39,737 | 2,466 |
Estimated fair value, asset derivative | 59 | 69 |
Estimated fair value, liability derivative | $ 2,263 | $ 4 |
Derivative Financial Instrume_4
Derivative Financial Instruments Derivative Financial Instruments (Details 2) - Non-hedging - Commercial loan/lease - Interest rate swap | Dec. 31, 2018 | Dec. 31, 2017 |
Interest rate received | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 4.24% | 3.59% |
Interest rate paid | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 4.20% | 4.34% |
Derivative Financial Instrume_5
Derivative Financial Instruments Derivative Financial Instruments (Details 3) | Dec. 31, 2018USD ($)instrument | Dec. 31, 2017USD ($)instrument |
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 25,300,000 | $ 15,200,000 |
Risk participation agreement - participant bank | ||
Derivative [Line Items] | ||
Instruments held | instrument | 13 | 15 |
Maximum exposure | $ 1,500,000 | $ 221,000 |
Notional amount | $ 149,000,000 | $ 157,000,000 |
Risk participation agreement - lead bank | ||
Derivative [Line Items] | ||
Instruments held | instrument | 9 | 10 |
Notional amount | $ 114,800,000 | $ 86,300,000 |
Non-hedging | Commercial loan/lease | ||
Derivative [Line Items] | ||
Credit risk exposure, net of collateral pledged, relating to derivatives | $ 18,700,000 | $ 16,700,000 |
Non-hedging | Interest rate cap | Commercial loan/lease | ||
Derivative [Line Items] | ||
Weighted average fixed interest rate | 3.20% | 2.40% |
Interest-bearing deposits | ||
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 11,200,000 | $ 14,000,000 |
Other assets | ||
Derivative [Line Items] | ||
Cash collateral pledged for derivatives | $ 14,100,000 | $ 1,200,000 |
Stockholder's Equity (Details)
Stockholder's Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 02, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity Distribution Agreement [Line Items] | ||||
Net proceeds from issuance of stock | $ 236,467 | |||
Par value of preferred stock | $ 0.01 | $ 0.01 | ||
Payments of dividends on preferred stock | $ 9,750 | $ 9,750 | 9,750 | |
Common Stock | ||||
Equity Distribution Agreement [Line Items] | ||||
Net proceeds from issuance of stock | $ 236,400 | $ 35 | ||
Issuance of stock - shares | 3,450,000 | 3,450,000 | ||
Repayments of short-term debt | $ 0 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Interest income | $ 321,718 | $ 301,754 | $ 286,852 | $ 253,869 | $ 249,519 | $ 237,643 | $ 208,191 | $ 183,946 | $ 1,164,193 | $ 879,299 | $ 703,408 |
Interest expense | 81,045 | 69,579 | 55,140 | 43,569 | 38,870 | 33,282 | 25,232 | 20,587 | 249,333 | 117,971 | 63,594 |
Net interest income | 240,673 | 232,175 | 231,712 | 210,300 | 210,649 | 204,361 | 182,959 | 163,359 | 914,860 | 761,328 | 639,814 |
Provision for credit losses | 35,000 | 13,000 | 27,000 | 12,000 | 2,000 | 20,000 | 13,000 | 9,000 | 87,000 | 44,000 | 77,000 |
Net interest income after provision for credit losses | 205,673 | 219,175 | 204,712 | 198,300 | 208,649 | 184,361 | 169,959 | 154,359 | 827,860 | 717,328 | 562,814 |
Non-interest income | 15,280 | 25,518 | 17,279 | 19,947 | 19,374 | 19,003 | 18,769 | 17,110 | 78,024 | 74,256 | 60,780 |
Non-interest expense | 129,862 | 136,143 | 132,131 | 126,960 | 133,138 | 114,830 | 111,814 | 106,094 | 525,096 | 465,876 | 382,397 |
Income before income taxes | 91,091 | 108,550 | 89,860 | 91,287 | 94,885 | 88,534 | 76,914 | 65,375 | 380,788 | 325,708 | 241,197 |
Income tax expense | 19,200 | 22,998 | 18,424 | 19,342 | 50,143 | 29,850 | 25,819 | 22,833 | 79,964 | 128,645 | 86,078 |
Net income | 71,891 | 85,552 | 71,436 | 71,945 | 44,742 | 58,684 | 51,095 | 42,542 | 300,824 | 197,063 | 155,119 |
Preferred stock dividends | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | 2,437 | 2,438 | 9,750 | 9,750 | 9,750 |
Net income available to common stockholders | $ 69,454 | $ 83,114 | $ 68,999 | $ 69,507 | $ 42,305 | $ 56,246 | $ 48,658 | $ 40,104 | $ 291,074 | $ 187,313 | $ 145,369 |
Basic earnings per share: | |||||||||||
Basic earnings per common share | $ 1.38 | $ 1.66 | $ 1.39 | $ 1.40 | $ 0.85 | $ 1.13 | $ 0.98 | $ 0.81 | $ 5.83 | $ 3.78 | $ 3.14 |
Diluted earnings per share: | |||||||||||
Diluted earnings per common share | $ 1.38 | $ 1.65 | $ 1.38 | $ 1.38 | $ 0.84 | $ 1.12 | $ 0.97 | $ 0.80 | $ 5.79 | $ 3.73 | $ 3.11 |
Average shares | |||||||||||
Basic | 49,936,702 | 49,587,169 | 46,239,210 | ||||||||
Diluted | 50,272,872 | 50,259,834 | 46,765,902 |
New Accounting Standards New Ac
New Accounting Standards New Accounting Standards (Details) - Subsequent Event - Accounting Standards Update 2016-02 $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating Lease, Right-of-Use Asset | $ 75 |
Lease liability | $ 75 |
Uncategorized Items - tcbi-2018
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 84,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (82,000) |