Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 28, 2019 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FSB | ||
Entity Registrant Name | FRANKLIN FINANCIAL NETWORK INC. | ||
Entity Central Index Key | 0001407067 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 14,572,658 | ||
Entity Public Float | $ 496,909,455.20 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and due from financial institutions | $ 280,212 | $ 251,543 |
Certificates of deposit at other financial institutions | 3,594 | 2,855 |
Securities available for sale | 1,030,668 | 999,881 |
Securities held to maturity (fair value 2018—$118,955 and 2017—$217,608) | 121,617 | 214,856 |
Loans held for sale, at fair value | 11,103 | 12,024 |
Loans held for investment, net of deferred fees | 2,665,399 | 2,256,608 |
Allowance for loan losses | (23,451) | (21,247) |
Net loans | 2,641,948 | 2,235,361 |
Restricted equity securities, at cost | 21,831 | 18,492 |
Premises and equipment, net | 12,371 | 11,281 |
Accrued interest receivable | 13,337 | 11,947 |
Bank owned life insurance | 55,239 | 49,085 |
Deferred tax asset | 13,189 | 10,007 |
Foreclosed assets | 0 | 1,503 |
Servicing rights, net | 3,403 | 3,620 |
Goodwill | 18,176 | 9,124 |
Core deposit intangible, net | 952 | 1,007 |
Other assets | 21,799 | 10,940 |
Total assets | 4,249,439 | 3,843,526 |
Deposits | ||
Non-interest bearing | 290,580 | 272,172 |
Interest bearing | 3,141,227 | 2,895,056 |
Total deposits | 3,431,807 | 3,167,228 |
Federal funds purchased and repurchase agreements | 31,004 | |
Federal Home Loan Bank advances | 368,500 | 272,000 |
Subordinated notes, net | 58,693 | 58,515 |
Accrued interest payable | 4,700 | 2,769 |
Other liabilities | 12,906 | 7,357 |
Total liabilities | 3,876,606 | 3,538,873 |
Equity | ||
Preferred stock, no par value: 1,000,000 shares authorized; Senior non-cumulative preferred stock, no par value, $10,000 liquidation value: Series A, 10,000 shares authorized; no shares outstanding at December 31, 2018 and December 31, 2017 | ||
Common stock, no par value: 30,000,000 shares authorized; 14,538,085 and 13,237,128 issued and outstanding at December 31, 2018 and 2017, respectively | 264,905 | 222,665 |
Retained earnings | 123,176 | 88,671 |
Accumulated other comprehensive loss | (15,341) | (6,786) |
Total shareholders’ equity | 372,740 | 304,550 |
Noncontrolling interest in consolidated subsidiary | 93 | 103 |
Total equity | 372,833 | 304,653 |
Total liabilities and equity | $ 4,249,439 | $ 3,843,526 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Held-to-maturity securities, fair value | $ 118,955,000 | $ 217,608,000 |
Preferred stock, no par value | ||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Common stock, no par value | ||
Common stock shares authorized | 30,000,000 | 30,000,000 |
Common stock shares issued | 14,538,085 | 14,538,085 |
Common stock, shares, outstanding | 13,237,128 | 13,237,128 |
Senior Non-cumulative Preferred Stock [Member] | ||
Preferred stock, no par value | ||
Preferred stock, liquidation value | $ 10,000,000 | $ 10,000,000 |
Series A [Member] | ||
Preferred stock, shares authorized | 10,000 | 10,000 |
Preferred stock, shares outstanding | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income and dividends | |||
Loans, including fees | $ 131,854 | $ 100,470 | $ 78,236 |
Securities: | |||
Taxable | 26,533 | 21,309 | 15,306 |
Tax-exempt | 7,384 | 8,593 | 5,609 |
Dividends on restricted equity securities | 1,250 | 928 | 500 |
Federal funds sold and other | 2,924 | 1,153 | 256 |
Total interest income | 169,945 | 132,453 | 99,907 |
Interest expense | |||
Deposits | 53,326 | 27,464 | 14,234 |
Federal funds purchased and repurchase agreements | 419 | 407 | 303 |
Federal Home Loan Bank advances | 6,369 | 3,215 | 884 |
Subordinated notes and other borrowings | 4,328 | 4,321 | 2,902 |
Total interest expense | 64,442 | 35,407 | 18,323 |
Net interest income | 105,503 | 97,046 | 81,584 |
Provision for loan losses | 2,254 | 4,313 | 5,240 |
Net interest income after provision for loan losses | 103,249 | 92,733 | 76,344 |
Noninterest income | |||
Net gain on sale of loans | 6,286 | 6,779 | 7,183 |
Loan servicing fees, net | 441 | 336 | 22 |
Gain (loss) on sales and calls of securities | (4,160) | 896 | 2,172 |
Total noninterest income | 10,662 | 14,721 | 15,140 |
Noninterest expense | |||
Salaries and employee benefits | 43,837 | 35,268 | 30,029 |
Occupancy and equipment | 11,628 | 9,219 | 7,627 |
FDIC assessment expense | 3,448 | 3,680 | 2,068 |
Marketing | 1,092 | 965 | 762 |
Professional fees | 4,362 | 3,395 | 3,546 |
Other | 9,111 | 8,297 | 7,649 |
Total noninterest expense | 73,478 | 60,824 | 51,681 |
Income before income tax expense | 40,433 | 46,630 | 39,803 |
Income tax expense | 5,912 | 18,531 | 11,746 |
Net income | 34,521 | 28,099 | 28,057 |
Dividends paid on Series A preferred stock | (23) | ||
Earnings attributable to noncontrolling interest | (16) | (16) | |
Net income available to common shareholders | $ 34,505 | $ 28,083 | $ 28,034 |
Earnings per share: | |||
Basic | $ 2.44 | $ 2.14 | $ 2.56 |
Diluted | $ 2.34 | $ 2.04 | $ 2.42 |
Service charges on deposit accounts [Member] | |||
Noninterest income | |||
Total noninterest income | $ 217 | $ 154 | $ 185 |
Other Service Charges and Fees [Member] | |||
Noninterest income | |||
Total noninterest income | 3,151 | 3,041 | 3,041 |
Wealth Management [Member] | |||
Noninterest income | |||
Total noninterest income | 2,939 | 2,577 | 1,894 |
Net gain on sale of foreclosed assets [Member] | |||
Noninterest income | |||
Total noninterest income | 116 | (7) | 40 |
Other [Member] | |||
Noninterest income | |||
Total noninterest income | $ 1,672 | $ 945 | $ 603 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 34,521 | $ 28,099 | $ 28,057 |
Unrealized gains/losses on securities: | |||
Unrealized holding gain (loss) arising during the period | (15,739) | 4,015 | (9,609) |
Reclassification adjustment for gains (losses) on sales, calls, and prepayments of securities included in net income | 4,160 | (896) | (2,172) |
Net unrealized gains (losses) | (11,579) | 3,119 | (11,781) |
Tax effect, includes ($1,087), $351 and $852, respectively, income tax (benefit) expense from sales of securities | 3,024 | (1,221) | 4,619 |
Total other comprehensive income (loss) | (8,555) | 1,898 | (7,162) |
Comprehensive income | $ 25,966 | $ 29,997 | $ 20,895 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Income tax (benefit) expense from sales of securities | $ 1,087 | $ 351 | $ 852 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series A Preferred Stock [Member] | Common Stock [Member] | Common Stock [Member]Initial Public Offering [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2015 | $ 188,816 | $ 10,000 | $ 147,784 | $ 31,352 | $ (320) | ||
Beginning balance, shares at Dec. 31, 2015 | 10,571,377 | ||||||
Exercise of common stock options, includes net settlement of shares | 1,571 | $ 1,571 | |||||
Exercise of common stock options, includes net settlement of shares, number of shares | 190,389 | ||||||
Exercise of common stock warrants | 101 | $ 101 | |||||
Exercise of common stock warrants, number of shares | 8,450 | ||||||
Redemption of Series A preferred stock | (10,000) | $ (10,000) | |||||
Dividends paid on Series A preferred stock | (23) | (23) | |||||
Issuance of restricted stock, net of forfeitures, shares | 34,001 | ||||||
Stock based compensation expense, net of forfeitures | 1,641 | $ 1,641 | |||||
Stock issued related to public offering, net of stock issuance costs | 67,557 | 67,557 | |||||
Stock issued related to public offering, net of stock issuance costs, shares | 2,242,500 | ||||||
Stock issued in conjunction with 401(k) employer match, net of distributions | (300) | $ (300) | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions, number of shares | (9,763) | ||||||
Net income available to common shareholders | 28,034 | ||||||
Issuance of preferred stock of consolidated subsidiary to noncontrolling interest, net of issuance costs | 103 | $ 103 | |||||
Net income | 28,057 | 28,057 | |||||
Other comprehensive income (loss) | (7,162) | (7,162) | |||||
Ending balance at Dec. 31, 2016 | 270,361 | $ 218,354 | 59,386 | (7,482) | 103 | ||
Ending balance, shares at Dec. 31, 2016 | 13,036,954 | ||||||
Exercise of common stock options, includes net settlement of shares | 1,615 | $ 1,615 | |||||
Exercise of common stock options, includes net settlement of shares, number of shares | 166,894 | ||||||
Exercise of common stock warrants | 150 | $ 150 | |||||
Exercise of common stock warrants, number of shares | 12,461 | ||||||
Issuance of restricted stock, net of forfeitures, shares | 26,718 | ||||||
Stock based compensation expense, net of forfeitures | 2,802 | $ 2,802 | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions | (256) | $ (256) | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions, number of shares | (5,899) | ||||||
Earnings attributable to noncontrolling interest | 16 | 16 | |||||
Net income available to common shareholders | 28,083 | 28,083 | |||||
Noncontrolling interest distributions | (16) | (16) | |||||
Reclassification of disproportionate tax effect(Note 1) | 1,202 | (1,202) | |||||
Net income | 28,099 | ||||||
Other comprehensive income (loss) | 1,898 | 1,898 | |||||
Ending balance at Dec. 31, 2017 | 304,653 | $ 222,665 | 88,671 | (6,786) | 103 | ||
Ending balance, shares at Dec. 31, 2017 | 13,237,128 | ||||||
Exercise of common stock options, includes net settlement of shares | 3,047 | $ 3,047 | |||||
Exercise of common stock options, includes net settlement of shares, number of shares | 216,400 | ||||||
Issuance of restricted stock, net of forfeitures, shares | 122,469 | ||||||
Stock based compensation expense, net of forfeitures | 6,569 | $ 6,569 | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions | (308) | $ (308) | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions, number of shares | (8,302) | ||||||
Stock issued for acquisition, net of issuance costs | 32,932 | $ 32,932 | |||||
Stock issued for acquisition, net of issuance costs, shares | 970,390 | ||||||
Earnings attributable to noncontrolling interest | 16 | 16 | |||||
Net income available to common shareholders | 34,505 | 34,505 | |||||
Noncontrolling interest distributions | (16) | (16) | |||||
Net income | 34,521 | ||||||
Reclassification of issuance costs on preferred stock of consolidatedsubsidiary noncontrolling interest | (10) | (10) | |||||
Other comprehensive income (loss) | (8,555) | (8,555) | |||||
Ending balance at Dec. 31, 2018 | $ 372,833 | $ 264,905 | $ 123,176 | $ (15,341) | $ 93 | ||
Ending balance, shares at Dec. 31, 2018 | 14,538,085 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Common Stock [Member] | |
Stock issued related to public offering, stock issuance costs | $ 4,203 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net income | $ 34,521 | $ 28,099 | $ 28,057 |
Adjustments to reconcile net income to net cash from operating activities | |||
Depreciation and amortization on premises and equipment | 1,713 | 1,482 | 1,330 |
Accretion of purchase accounting adjustments | (1,338) | (1,078) | (1,175) |
Net amortization of securities | 8,083 | 10,129 | 7,673 |
Amortization of loan servicing right asset | 867 | 934 | 1,201 |
Amortization of core deposit intangible | 612 | 473 | 563 |
Amortization of debt issuance costs | 178 | 178 | 124 |
Provision for loan losses | 2,254 | 4,313 | 5,240 |
Deferred income tax (benefit) | 197 | 3,785 | (964) |
Excess tax benefit related to the exercise of stock options | (1,013) | ||
Origination of loans held for sale | (278,559) | (357,983) | (371,173) |
Proceeds from sale of loans held for sale | 285,116 | 378,243 | 367,369 |
Net gain on sale of loans | (6,286) | (6,779) | (7,183) |
(Gain) loss on sale of available for sale securities | 4,160 | (896) | (2,172) |
Income from bank owned life insurance | (1,535) | (818) | (648) |
(Gain) loss on sale of foreclosed assets | (81) | 20 | (28) |
Loss on sale of assets held for sale | 98 | ||
Stock-based compensation | 6,569 | 2,802 | 1,641 |
Recognition of deferred gain on sale of loans | (15) | (58) | (64) |
Recognition of deferred gain on sale of foreclosed assets | (10) | (14) | (12) |
Net change in: | |||
Accrued interest receivable and other assets | (8,777) | (10,020) | (2,278) |
Accrued interest payable and other liabilities | 2,638 | 2,826 | 1,610 |
Net cash from operating activities | 50,307 | 55,638 | 28,196 |
Available for sale securities: | |||
Sales | 176,016 | 240,175 | 93,873 |
Purchases | (474,163) | (664,894) | (391,036) |
Maturities, prepayments and calls | 359,859 | 175,457 | 103,307 |
Held to maturity securities: | |||
Purchases | (3,347) | (4,266) | (94,749) |
Maturities, prepayments and calls | 11,999 | 16,326 | 21,712 |
Net change in loans | (311,118) | (487,060) | (468,973) |
Purchase of bank owned life insurance | (119) | (25,000) | |
Proceeds from sale of buildings held for sale | 1,542 | ||
Purchase of restricted equity securities | (2,463) | (6,649) | (3,845) |
Proceeds from sale of foreclosed assets | 1,934 | 1,330 | 336 |
Purchases of premises and equipment, net | (2,551) | (3,212) | (3,241) |
Increase in certificates of deposits at other financial institutions | (239) | (1,800) | (805) |
Net cash acquired from acquisition (See Note 2) | 24,660 | ||
Capitalization of foreclosed assets | (35) | ||
Net cash from investing activities | (219,532) | (759,628) | (741,879) |
Cash flows from financing activities | |||
Increase in deposits | 141,417 | 775,410 | 577,779 |
Increase (decrease) in federal funds purchased and repurchase agreements | (31,004) | (52,297) | (17,785) |
Proceeds from Federal Home Loan Bank advances | 450,000 | 380,000 | 325,000 |
Repayment of Federal Home Loan Bank advances | (365,000) | (240,000) | (250,000) |
Proceeds from other borrowings | 10,000 | ||
Repayment of other borrowings | (10,000) | ||
Proceeds from issuance of subordinated notes, net of issuance costs | 58,213 | ||
Proceeds from exercise of common stock warrants | 150 | 101 | |
Proceeds from exercise of common stock options | 3,047 | 1,615 | 1,571 |
Proceeds from issuance of common stock, net of offering costs | (242) | 67,557 | |
Divestment of stock issued to 401(k) plan | (308) | (256) | (300) |
Redemption of Series A preferred stock | (10,000) | ||
Dividends paid on preferred stock | (23) | ||
Noncontrolling interest distributions | (16) | (16) | |
Proceeds from issuance of preferred stock of consolidated subsidiary to noncontrolling interest, net of issuance costs | 103 | ||
Net cash from financing activities | 197,894 | 864,606 | 752,216 |
Net change in cash and cash equivalents | 28,669 | 160,616 | 38,533 |
Cash and cash equivalents at beginning of period | 251,543 | 90,927 | 52,394 |
Cash and cash equivalents at end of period | 280,212 | 251,543 | 90,927 |
Supplemental information: | |||
Interest paid | 63,847 | 34,562 | 17,043 |
Income taxes paid | 10,892 | 15,680 | 14,023 |
Non-cash supplemental information: | |||
Fair value of stock and stock options issued related to Civic Bank acquisition (See FN 2) | 33,174 | ||
Transfers from loans to foreclosed assets | 350 | $ 2,818 | $ 108 |
Transfers from Held to Maturity to Available for Sale | $ 83,501 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation FFN was incorporated under the laws of the State of Tennessee on April 5, 2007. FSB was incorporated under the laws of the State of Tennessee and received its Certificate of Authority from the Tennessee Department of Financial Institutions and approval of Federal Deposit Insurance Corporation (FDIC) insurance on November 2, 2007. FSB is also a Federal Reserve member bank. The Company provides financial services through its offices in Franklin, Brentwood, Spring Hill, Murfreesboro, Nashville, Nolensville, and Smyrna, Tennessee. Its primary deposit products are checking, savings, and certificate of deposit accounts, and its primary lending products are commercial and residential construction, commercial, installment loans and lines secured by home equity. Substantially all loans are secured by specific items of collateral including commercial and residential real estate, business assets, and consumer assets. Commercial loans are expected to be repaid by cash flow from operations of businesses. The Company also focuses on electronic banking products such as internet banking, remote deposit capture and lockbox services. On July 1, 2014, Mid-South Bancorp (“Mid-South”) merged into the Bank with the Bank continuing as the surviving company. On December 28, 2015, the Company invested in a wholly-owned subsidiary, FSRM, which provides risk management services to the Company in the form of enhanced insurance coverages. On March 1, 2016, the Bank invested in a wholly-owned subsidiary, Franklin Synergy Investments of Tennessee, Inc. (“FSIT”), which provides investment services to the Bank. Also on March 1, 2016, FSIT invested in a wholly-owned subsidiary, Franklin Synergy Investments of Nevada, Inc. (“FSIN”), to provide investment services to FSIT. In addition, on March 1, 2016, FSIN invested in a subsidiary, Franklin Synergy Preferred Capital, Inc. (“FSPC”), to serve as a real estate investment trust (“REIT”), to allow the Bank to sell real estate loans to the REIT to obtain a tax benefit. FSIN has a controlling interest in the REIT, but the REIT also has a group of investors that own a noncontrolling interest in the preferred stock of the REIT. On April 1, 2018, Civic Bank & Trust merged with and into the Bank with the Bank continuing as the surviving company. (See Note 2) Use of Estimates Cash Flows Interest-Bearing Deposits in Financial Institutions Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of these criteria is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. No OTTI has been recognized for the years ended December 31, 2018, 2017 or 2016. Loans Held for Sale Certain loans held for sale are sold with servicing rights retained. The carrying value of loans sold with retained servicing is reduced by the amount allocated to the servicing right. Gains and losses on sales of loans are based on the difference between the selling price and the carrying value of the related loan sold. Loans Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to non-accrual status in accordance with the Company’s policy, typically after 90 days of non-payment. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Concentration of Credit Risk Purchased Credit Impaired (PCI) Loans Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. All loans classified by management as substandard or worse are individually evaluated for potential designation as impaired. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Troubled debt restructurings (TDRs) are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. TDRs are subsequently tracked and reviewed for impairment quarterly. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on a combination of the Bank’s loss history and loss history over the past three years from a group of other local banks that operate in the Middle Tennessee areas. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: • Construction and land development loans include loans to finance the process of improving, preparatory or erecting new structures or the on-site construction of industrial, commercial, residential or farm buildings. Construction and land development loans also include loans secured by vacant land, except land known to be used or usable for agricultural purposes. Construction loans generally are made for relatively short terms. They generally are more vulnerable to changes in economic conditions. Further, the nature of these loans is such that they are more difficult to evaluate and monitor. The risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value upon completion of the project and the estimated cost (including interest) of the project. Periodic site inspections are made on construction loans. • Commercial real estate loans include loans secured by non-residential real estate, including farmland and improvements thereon. Often these loans are made to single borrowers or groups of related borrowers, and the repayment of these loans largely depends on the results of operations and management of these properties. Adverse economic conditions may affect the repayment ability of these loans. • Residential real estate loans include loans secured by residential real estate, including single-family and multi-family dwellings. Mortgage title insurance and hazard insurance are normally required. Adverse economic conditions in the Company’s market area may reduce borrowers’ ability to repay these loans and may reduce the collateral securing these loans. • Commercial and industrial loans include loans for commercial, industrial, healthcare or agricultural purposes to business enterprises that are not secured by real estate. Commercial loans are typically made on the basis of the borrower’s ability to repay from the cash flow of the borrower’s business. Commercial and Agriculture loans are generally secured by accounts receivable, inventory and equipment. The collateral securing loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. • Consumer and other loans include loans to individuals for household, family and other personal expenditures that are not secured by real estate. Consumer loans are generally secured by customer deposit accounts, vehicles and other household goods. The collateral securing consumer loans may depreciate over time. Servicing Rights Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with loan servicing fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against mortgage loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. Transfers of Financial Assets Foreclosed Assets Premises and Equipment Restricted Equity Securities Company Owned Life Insurance/Bank Owned Life Insurance Goodwill and Other Intangible Assets Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from whole bank and branch acquisitions are amortized on an accelerated method over their estimated useful lives, which range from 7 to 10 years. Long-Term Assets Loan Commitments and Related Financial Instruments Mortgage Banking Derivatives Stock-Based Compensation Income Taxes A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. Retirement Plans Comprehensive Income Earnings Per Common Share Loss Contingencies Restrictions on Cash Dividend Restriction Fair Value of Financial Instruments Operating Segments Reclassifications: Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers The Company has identified the contract with a customer, identified the performance obligations in the contract, determined the transaction price, allocated the transaction price to the performance obligations in the contract, and recognized revenue when (or as) the Company satisfied a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not impacted by the new standard. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying the new standard that significantly affects the determination of the amount and timing of revenue from contracts with customers. In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. The Company does not have any equity investments that qualify for consideration under ASU 2016-01. See Note 9, “Fair Value,” for further information regarding the valuation of these loans. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business In February 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ” Under ASU 2018-02, entities may elect to reclassify certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017, from accumulated other comprehensive income to retained earnings. ASU 2018-02 also requires certain accounting policy disclosures. We elected to adopt the provisions of ASU 2018-02 as of January 1, 2018 in advance of the required application date of January 1, 2019. Early adoption is permitted with retrospective application. Deferred tax assets that were realized after December 31, 2017, were remeasured using the tax rates enacted as a result of the 2017 Tax Cuts and Jobs Act resulting in an additional income tax expense of $5,323 at December 31, 2017. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118.” ASU 2018-05 amends the Accounting Standards Codification to incorporate various SEC paragraphs pursuant to the issuance of SAB 118. SAB 118 addresses the application of generally accepted accounting principles in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. See Note 13 - Income Taxes. ASU 2015-05 became effective January 1, 2018, and did not have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities from the HTM intention to the AFS intention under a one-time exemption granted under the pronouncement. The transfer was not material In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Recently Issued, Not Yet Effective Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases The guidance requires that a lessee should recognize lease assets and lease liabilities as compared to previous GAAP that did not require lease assets and lease liabilities to be recognized for operating leases. The guidance becomes effective for Pinnacle Financial on January 1, 2019. In July 2016, the FASB issued Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases which provides technical corrections and improvements to ASU 2016-02. It is not anticipated that this update will have an impact on our adoption of ASU 2016-02. In July 2016, the FASB issued Targeted Improvements which provides an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statements in the period of adoption. The Company intends to elect the optional transition method on January 1, 2019, which will result in presentation of periods prior to adoption under the prior lease guidance of ASC Topic 840. In December 2018, the FASB issued . ASU 2018-20 permits lessors to account for certain taxes as lessee costs, permits lessors to exclude from revenue certain lessor costs paid by lessees directly to third parties, and requires lessors to allocate certain variable payments to lease and non-lease components. The Company expects to record a right of use asset and lease liability between $40 and $45 million on the adoption date of January 1, 2019, In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 will be effective for us on January 1, 2020, with early adoption permitted, and is not expected to have a significant impact on our financial statements. ASU 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20).” ASU 2018-14 amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 will be effective for us on January 1, 2021, with early adoption permitted, and is not expected to have a significant impact on our financial statements. 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 clarifies certain aspects of ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which was issued in April 2015. Specifically, 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 does not affect the accounting for the service element of a hosting arrangement that is a service contract. ASU 2018-15 will be effective for us on January 1, 2020, with early adoption permitted, and is not expected to have a significant impact on our financial statements. ASU 2018-16, “Derivatives and Hedging (Topic 815) - Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this update permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct U.S. Treasury obligations, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. ASU 2018-16 will be effective for us on January 1, 2019 and is not expected to have a significant impact on our financial statements. Other than those pronouncements discussed above and those which have been recently implemented, we do not believe there were any other recently issued accounting pronouncement that are expected to materially impact the Company. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | NOTE 2—BUSINESS COMBINATIONS As of April 1, 2018, Civic Bank & Trust merged with and into Franklin Synergy with Franklin Synergy continuing as the surviving company. Under the terms of the acquisition, Civic’s common shareholders received a total of 970,390 shares of the Company’s common stock in exchange for the outstanding shares of Civic common stock. With the completion of the acquisition, the Company has its first full service branch office in Nashville, Tennessee located in the Davidson County market. The results of Civic’s operations are included in the Company’s results since April 1, 2018. Acquisition-related costs of $565 are included in other noninterest expense in the Company’s income statement ended December 31, 2018. The fair value of the common shares issued as part of the consideration paid for Civic was determined using the basis of the closing price of the Company’s common shares on the acquisition date. Goodwill of $9,052 arising from the acquisition consisted largely of synergies resulting from the combining of the operations of the companies. The fair value of intangible assets related to core deposits was determined to be $558. The following table summarizes the consideration paid for Civic and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Consideration: Common stock issued to Civic shareholders $ 31,635 Fair value of stock options issued to Civic option holders 1,539 Fair value of total consideration $ 33,174 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 24,660 Certificates of deposit at other financial institutions 500 Securities available for sale 31,734 Loans 96,385 Equity securities 876 Premises and equipment 253 Core deposit intangibles 558 Foreclosed assets 350 Other assets 5,285 Total assets acquired 160,601 Deposits 123,162 Federal Home Loan Bank advances 11,500 Other liabilities 1,817 Total liabilities assumed 136,479 Total net assets acquired 24,122 Goodwill $ 9,052 The fair value of net assets acquired includes fair value adjustments to certain loan receivables that were not considered impaired as of the acquisition date. As such, these receivables were not subject to the guidance relating to purchased credit-impaired loans. Receivables acquired include loans and customer receivables with a fair value and gross contractual amounts receivable of $96,385 and $96,903, respectively, on the date of acquisition. The following table presents supplemental unaudited pro forma information as if the Civic acquisition had occurred at the beginning and 2017. The unaudited pro forma information includes adjustments for interest income on loans acquired, amortization of intangibles arising from the transaction, interest expense on deposits acquired, and the related income tax effects. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates. For the Year Ended December 31, Unaudited 2018 2017 Net interest income – pro forma $ 106,765 $ 103,055 Net income – pro forma $ 34,606 $ 29,368 Earnings per share – pro forma: Basic $ 2.28 $ 2.09 Diluted $ 2.20 $ 1.99 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | NOTE 3 - SECURITIES The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at December 31, 2018 and 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 U.S. Treasury securities $ 253,015 $ 59 $ (60 ) $ 253,014 U.S. government sponsored entities and agencies 21,999 1 (112 ) 21,888 Mortgage-backed securities: residential 596,766 27 (16,094 ) 580,699 Asset-backed securities 25,744 — (900 ) 24,844 Corporate Notes 12,480 21 (77 ) 12,424 State and political subdivisions 141,432 863 (4,496 ) 137,799 Total $ 1,051,436 $ 971 $ (21,739 ) $ 1,030,668 December 31, 2017 U.S. Treasury securities $ 229,119 $ — $ (210 ) $ 228,909 U.S. government sponsored entities and agencies 20,125 — (164 ) 19,961 Mortgage-backed securities: residential 641,225 102 (8,761 ) 632,566 Mortgage-backed securities: commercial 5,133 — (59 ) 5,074 State and political subdivisions 113,468 1,787 (1,884 ) 113,371 Total $ 1,009,070 $ 1,889 $ (11,078 ) $ 999,881 The amortized cost and fair value of the HTM securities portfolio at December 31, 2018 and 2017 and the corresponding amounts of gross unrecognized gains and losses were as follows: Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value December 31, 2018 Mortgage backed securities: residential $ 75,944 $ 34 $ (3,072 ) $ 72,906 State and political subdivisions 45,673 466 (90 ) 46,049 Total $ 121,617 $ 500 $ (3,162 ) $ 118,955 December 31, 2017 Mortgage backed securities: residential 93,366 207 (1,796 ) 91,777 State and political subdivisions 121,490 4,379 (38 ) 125,831 Total $ 214,856 $ 4,586 $ (1,834 ) $ 217,608 The mortgage backed securities in which the Company has invested, both AFS and HTM, are either issued by or guaranteed by Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), or Government National Mortgage Association (GNMA). The proceeds from sales, calls, and prepayments of available for sale securities and the associated gains and losses were as follows: 2018 2017 2016 Proceeds from sales $ 176,016 $ 240,175 $ 93,873 Proceeds from calls and prepayments — — 11,805 Gross gains 54 1,553 2,557 Gross losses (4,214 ) (657 ) (385 ) There were no calls of HTM securities during 2018; however, 16 bonds were transferred to the AFS intention during the fourth quarter and still held at year-end. The transfer between intentions was permitted under a new accounting pronouncement that, upon adoption, permitted a one-time opportunity to transfer eligible securities without affecting the status of other HTM securities. The transfer was part of a balance sheet rotation strategy, under which $246,000 of lower yielding, fixed rate securities was sold with the intention of rotating the proceeds into higher yielding investments and loans with the stated goal of improving net interest margin. The amortized cost and fair value of the investment securities portfolio are shown by contractual maturity. Securities not due at a single maturity date, primarily mortgage-backed securities, and asset-backed securities are shown separately. December 31, 2018 Amortized Cost Fair Value Available for sale Three months or less $ 44,941 $ 44,902 Over three months through one year 228,617 228,555 Over one year through five years 1,729 1,713 Over five years through ten years 17,126 17,079 Over ten years 136,513 132,876 Asset-backed securities 25,744 24,844 Mortgage-backed securities: residential 596,766 580,699 Total $ 1,051,436 $ 1,030,668 Held to maturity Three months or less $ 500 $ 501 Over three months through one year — — Over one year through five years 502 519 Over five years through ten years 1,051 1,060 Over ten years 43,620 43,969 Mortgage-backed securities: residential 75,944 72,906 Total $ 121,617 $ 118,955 Securities pledged at December 31, 2018 and 2017 had a carrying amount of $939,440 and $975,518 and were pledged to secure public deposits and repurchase agreements. At December 31, 2018 and 2017, there were no holdings of securities of any one issuer, other than the U.S. government-sponsored entities and agencies, in an amount greater than 10% of stockholders’ equity. ASU 2017-12 was early adopted in the fourth quarter of 2018, and subsequently, 40 bonds were transferred from the HTM intention to the AFS intention under a one-time exemption granted under the pronouncement. There were no derivatives as of December 31, 2018 The following table summarizes the securities with unrealized and unrecognized losses at December 31, 2018 and 2017, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018 Available for sale U.S. Treasury securities $ 163,722 $ (60 ) $ — $ — $ 163,722 $ (60 ) U.S. government sponsored entities and agencies 1,355 (12 ) 19,937 (100 ) 21,292 (112 ) Mortgage-backed securities: residential 83,203 (755 ) 490,752 (15,339 ) 573,955 (16,094 ) Asset-backed securities 24,845 (900 ) — — 24,845 (900 ) Corporate Notes 9,839 (77 ) — — 9,839 (77 ) State and political subdivisions 10,446 (106 ) 69,238 (4,390 ) 79,684 (4,496 ) Total available for sale $ 293,410 $ (1,910 ) $ 579,927 $ (19,829 ) $ 873,337 $ (21,739 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses Held to maturity Mortgage-backed securities: residential $ 2,239 $ (40 ) $ 68,067 $ (3,032 ) $ 70,306 $ (3,072 ) State and political subdivisions 8,362 (39 ) 3,675 (51 ) 12,037 (90 ) Total held to maturity $ 10,601 $ (79 ) $ 71,742 $ (3,083 ) $ 82,343 $ (3,162 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2017 Available for sale U.S. Treasury securities $ 228,909 $ (210 ) $ — $ — $ 228,909 $ (210 ) U.S. government sponsored entities and agencies 19,961 (164 ) — — 19,961 (164 ) Mortgage-backed securities: residential $ 301,158 $ (2,447 ) $ 311,366 $ (6,314 ) $ 612,524 $ (8,761 ) Mortgage-backed securities: commercial 5,074 (59 ) — — 5,074 (59 ) State and political subdivisions 1,298 (2 ) 62,725 (1,882 ) 64,023 (1,884 ) Total available for sale $ 556,400 $ (2,882 ) $ 374,091 $ (8,196 ) $ 930,491 $ (11,078 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses Held to maturity Mortgage-backed securities: residential $ 11,191 $ (69 ) $ 72,582 $ (1,727 ) $ 83,773 $ (1,796 ) State and political subdivisions 262 (2 ) 1,148 (36 ) 1,410 (38 ) Total held to maturity $ 11,453 $ (71 ) $ 73,730 $ (1,763 ) $ 85,183 $ (1,834 ) Unrealized losses on debt securities have not been recognized into income because the issuers bonds are of high credit quality (rated investment grade or better) management does not intend to sell, it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The fair value is expected to recover as the bonds approach maturity. At December 31, 2018, the Company had 200 available for sale securities in an unrealized loss position and 39 HTM securities in an unrecognized loss position compared to 163 AFS securities in an unrealized loss position and 33 HTM securities in an unrecognized loss position at December 31, 2017. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans | NOTE 4 - LOANS Loans at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Loans that are not PCI loans Construction and land development $ 584,440 $ 494,818 Commercial real estate: Nonfarm, nonresidential 754,243 628,554 Other 48,017 49,684 Residential real estate: Closed-end 1-4 family 492,989 407,695 Other 189,817 169,640 Commercial and industrial 590,854 502,006 Consumer and other 5,568 3,781 Loans before net deferred loan fees 2,665,928 2,256,178 Deferred loan fees, net (2,544 ) (1,963 ) Total loans that are not PCI loans 2,663,384 2,254,215 Total PCI loans 2,015 2,393 Allowance for loan losses (23,451 ) (21,247 ) Total loans, net of allowance for loan losses $ 2,641,948 $ 2,235,361 The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2018, 2017 and 2016: Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2018 Allowance for loan losses: Beginning balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Provision for loan losses 978 744 872 (383 ) 43 2,254 Loans charged-off (38 ) — (7 ) (49 ) (27 ) (121 ) Recoveries 1 — 44 11 15 71 Total ending allowance balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2017 Allowance for loan losses: Beginning balance $ 3,776 $ 4,266 $ 2,398 $ 6,068 $ 45 $ 16,553 Provision for loan losses (642 ) 1,715 1,387 1,823 30 4,313 Loans charged-off — — (1 ) (310 ) (49 ) (360 ) Recoveries 668 — 50 6 17 741 Total ending allowance balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2016 Allowance for loan losses: Beginning balance $ 3,186 $ 3,146 $ 1,861 $ 3,358 $ 36 $ 11,587 Provision for loan losses 601 1,120 511 2,964 44 5,240 Loans charged-off (11 ) — (40 ) (255 ) (42 ) (348 ) Recoveries — — 66 1 7 74 Total ending allowance balance $ 3,776 $ 4,266 $ 2,398 $ 6,068 $ 45 $ 16,553 For the years ended December 31, 2018 and 2017, there was $0 in allowance for loan losses for PCI loans. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017. Purchased and PCI loans are also included in the table. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality. Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2018 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 17 $ — $ 17 Collectively evaluated for impairment 4,743 6,725 4,743 7,149 74 23,434 Total ending allowance balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Loans: Individually evaluated for impairment $ 2,298 $ — $ 3,189 $ 167 $ — $ 5,654 Collectively evaluated for impairment 582,142 802,260 679,617 590,687 5,568 2,660,274 Purchased credit-impaired loans — — 76 1,939 — 2,015 Total ending loans balance $ 584,440 $ 802,260 $ 682,882 $ 592,793 $ 5,568 $ 2,667,943 Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2017 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 879 $ — $ 879 Collectively evaluated for impairment 3,802 5,981 3,834 6,708 43 20,368 Total ending allowance balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Loans: Individually evaluated for impairment $ 217 $ - $ 834 $ 3,090 $ — $ 4,141 Collectively evaluated for impairment 494,601 678,238 576,501 498,916 3,781 2,252,037 Purchased credit-impaired loans — 380 105 1,908 — 2,393 Total ending loans balance $ 494,818 $ 678,618 $ 577,440 $ 503,914 $ 3,781 $ 2,258,571 Loans collectively evaluated for impairment reported at December 31, 2018 include certain loans acquired from MidSouth and Civic. The acquired loans were recorded at estimated fair value at date of acquisition, which included an estimated credit discount. Acquired non-PCI loans were recorded at an estimated fair value of $178,818, comprised of contractually unpaid principal totaling $183,832 net of estimated discounts totaling $5,014 which included both credit and interest rate discount components. As of December 31, 2018, these non-PCI loans had a carrying value of $91,344, comprised of contractually unpaid principal totaling $92,554 and discounts totaling $1,210. Management evaluated these loans for credit deterioration since acquisition and determined that a $185 allowance for loan losses was necessary at December 31, 2018. The following table presents information related to impaired loans by class of loans as of December 31, 2018 and 2017: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated December 31, 2018 With no allowance recorded: Construction and land development $ 2,298 $ 2,298 $ — Residential real estate: Closed-end 1-4 family 1,272 1,280 — Other 1,917 1,917 — Subtotal 5,487 5,495 — With an allowance recorded: Commercial and industrial 167 167 17 Subtotal 167 167 17 Total $ 5,654 $ 5,662 $ 17 December 31, 2017 With no allowance recorded: Construction and land development $ 217 $ 217 $ — Residential real estate: Closed-end 1-4 family 14 14 — Other 820 820 — Commercial and industrial 108 108 — Subtotal 1,159 1,159 — With an allowance recorded: Commercial and industrial 2,982 2,982 879 Subtotal 2,982 2,982 879 Total $ 4,141 $ 4,141 $ 879 The following table presents the average recorded investment of impaired loans by class of loans for the years ended December 31, 2018, 2017 and 2016: Average Recorded Investment 2018 2017 2016 With no allowance recorded: Construction and land development $ 378 $ 921 $ 474 Commercial real estate: Nonfarm, nonresidential — 1,796 1,892 Residential real estate: Closed-end 1-4 family 715 649 747 Other 553 331 696 Commercial and industrial 655 899 207 Consumer and other — 1 8 Subtotal 2,301 4,597 4,024 With an allowance recorded: Residential real estate: Closed-end 1-4 family — 22 55 Commercial and industrial 993 2,480 490 Subtotal 993 2,502 545 Total $ 3,294 $ 7,099 $ 4,569 The impact on net interest income for these loans was not material to the Company’s results of operations for the years ended December 31, 2018, 2017 and 2016. The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2018 and 2017: Nonaccrual Loans Past Due Over 90 Days December 31, 2018 Construction loans $ 2,298 $ — Residential real estate: Closed-end 1-4 family 1,273 — Other 1,917 — Commercial and industrial — 208 Total $ 5,488 $ 208 December 31, 2017 Residential real estate: Closed-end 1-4 family $ 257 $ 14 Other 114 — Commercial and industrial 2,466 191 Total $ 2,837 $ 205 Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 and 2017 by class of loans: 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Loans Not Past Due PCI Loans Total December 31, 2018 Construction and land development $ 294 $ 1,986 $ 548 $ 2,828 $ 581,612 $ — $ 584,440 Commercial real estate: Nonfarm, nonresidential 515 — — 515 753,728 — 754,243 Other — — — — 48,017 — 48,017 Residential real estate: Closed-end 1-4 family 2,390 404 228 3,022 489,967 76 493,065 Other 142 — 1,810 1,952 187,865 — 189,817 Commercial and industrial 241 252 208 701 590,153 1,939 592,793 Consumer and other — — — — 5,568 — 5,568 $ 3,582 $ 2,642 $ 2,794 $ 9,018 $ 2,656,910 $ 2,015 $ 2,667,943 December 31, 2017 Construction and land development $ 1,918 $ 136 $ — $ 2,054 $ 492,764 $ — $ 494,818 Commercial real estate: Nonfarm, nonresidential — — — — 628,554 380 628,934 Other — — — — 49,684 — 49,684 Residential real estate: Closed-end 1-4 family 257 - 14 271 407,424 105 407,800 Other 146 719 114 979 168,661 — 169,640 Commercial and industrial 532 27 2,657 3,216 498,790 1,908 503,914 Consumer and other — — — — 3,781 — 3,781 $ 2,853 $ 882 $ 2,785 $ 6,520 $ 2,249,658 $ 2,393 $ 2,258,571 Credit The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans as well as non-homogeneous residential real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Special Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table includes PCI loans, which are included in the “Substandard” column. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of December 31, 2018 and 2017: Pass Special Mention Substandard Total December 31, 2018 Construction and land development $ 580,468 $ 1,416 $ 2,556 $ 584,440 Commercial real estate: Nonfarm, nonresidential 739,469 14,774 — 754,243 Other 48,017 — — 48,017 Residential real estate: Closed-end 1-4 family 489,781 948 2,336 493,065 Other 186,485 404 2,928 189,817 Commercial and industrial 553,589 8,313 30,891 592,793 Consumer and other 5,567 1 — 5,568 $ 2,603,376 $ 25,856 $ 38,711 $ 2,667,943 December 31, 2017 Construction and land development $ 494,601 $ — $ 217 $ 494,818 Commercial real estate: Nonfarm, nonresidential 609,458 12,602 6,874 628,934 Other 49,303 — 381 49,684 Residential real estate: Closed-end 1-4 family 404,832 615 2,353 407,800 Other 167,886 — 1,754 169,640 Commercial and industrial 485,363 10,350 8,201 503,914 Consumer and other 3,777 4 — 3,781 $ 2,215,220 $ 23,571 $ 19,780 $ 2,258,571 At December 31, 2018, the Bank realized a $21,186 increase in classified and criticized loans compared to December 31, 2017. The increase is specifically related to two Shared National Credit loans that were downgraded to a substandard rating subsequent to year-end 2018, during the review period that exists between December 31, 2018 and the filing of this document. These credits are still performing at this time. Troubled Debt Restructurings As of December 31, 2018, the Company’s loan portfolio contains one loan in the amount of $167 that has been modified in a troubled debt restructuring as of December 31, 2018. There was one loan in the amount of $608 that has been modified in troubled debt restructurings as of December 31, 2017. |
Loan Servicing
Loan Servicing | 12 Months Ended |
Dec. 31, 2018 | |
Transfers And Servicing [Abstract] | |
Loan Servicing | NOTE 5 - LOAN SERVICING Loans serviced for others are not reported as assets. The principal balances of these loans at December 31, 2018 and 2017 are as follows: 2018 2017 Loan portfolios serviced for: Federal Home Loan Mortgage Corporation $ 492,761 $ 507,233 Other 3,689 4,626 Custodial escrow balances maintained in connection with serviced loans were $2,588 and $2,672 at year-end 2018 and 2017. The related loan servicing rights activity for the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Servicing rights: Beginning of year $ 3,620 $ 3,621 $ 3,455 Additions 650 933 1,367 Amortized to expense (867 ) (934 ) (1,201 ) End of year $ 3,403 $ 3,620 $ 3,621 The components of net loan servicing fees for the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Loan servicing fees, net: Loan servicing fees $ 1,308 $ 1,270 $ 1,223 Amortization of loan servicing fees (867 ) (934 ) (1,201 ) Total $ 441 $ 336 $ 22 The fair value of servicing rights was estimated by management to be approximately $4,836 at December 31, 2018. Fair value for 2018 was determined using a weighted average discount rate of 9.5% and a weighted average prepayment speed of 11.9%. At December 31, 2017, the fair value of servicing rights was estimated by management to be approximately $5,089. Fair value for 2017 was determined using weighted average discount rate of 10.5% and a weighted average prepayment speed of 9.9%. |
Premises and Equipment and Leas
Premises and Equipment and Leases | 12 Months Ended |
Dec. 31, 2018 | |
Premises Equipment And Leases [Abstract] | |
Premises and Equipment and Leases | NOTE 6 - PREMISES AND EQUIPMENT AND LEASES Year-end premises and equipment were as follows: 2018 2017 Construction in progress $ 2,097 $ 3,215 Land and land improvements 33 33 Buildings 150 150 Leasehold improvements 9,487 7,582 Furniture, fixtures, and equipment 7,133 5,437 Computer equipment and software 3,700 3,380 Automobiles 29 29 22,629 19,826 Accumulated depreciation (10,258 ) (8,545 ) $ 12,371 $ 11,281 Depreciation and amortization expense was $1,713, $1,482 and $1,330 for the years ended December 31, 2018, 2017 and 2016, respectively. Lease Commitments: 2019 $ 4,841 2020 4,849 2021 4,871 2022 4,856 2023 4,885 Thereafter 36,178 Total $ 60,480 At December 31, 2018, the Bank had entered into a single capital lease of $3.1 million. The approximate future minimum lease payments due are as follows: 2019 $ 272 2020 276 2021 280 2022 284 2023 288 Thereafter 3,133 Total $ 4,533 We lease certain branch facilities from various partnership interests of certain directors. Payments related to these partnership leases are noted in Note 14, “Related Party Transactions ”. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | NOTE 7 – GOODWILL AND INTANGIBLE ASSETS Goodwill Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2018, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Goodwill associated with Midsouth and Civic mergers are not amortizable for book or tax deductible . Acquired Intangible Assets The following table represents acquired intangible assets at December 31, 2018 and 2017: 2018 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Acquired intangible assets: Core deposit intangibles $ 3,617 $ (2,665 ) $ 3,060 $ (2,053 ) Aggregate amortization expense was $612, $473 and $563 for 2018, 2017 and 2016, respectively. The following table presents estimated amortization expense for each of the next five years: 2019 504 2020 304 2021 121 2022 23 2023 - |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Deposits | NOTE 8 - DEPOSITS Composition of deposits is as follows: December 31, 2018 December 31, 2017 Retail $ 1,450,370 $ 1,326,909 Brokered 797,795 779,886 Local Government 782,890 1,002,584 Reciprocal and other 400,752 57,849 Total $ 3,431,807 $ 3,167,228 At December 31, 2018 and 2017, time deposits in denominations of $250 or greater totaled $368,635 and $392,633, respectively. At December 31, 2018 and 2017, the Company had $142 and $224, respectively, of deposit accounts in overdraft status and thus have been reclassified to loans on the accompanying consolidated balance sheets. Scheduled maturities of time deposits for the next five years were as follows: 2019 1,100,319 2020 107,129 2021 71,202 2022 37,044 2023 10,399 'Total 1,326,093 |
Federal Funds Purchased and Rep
Federal Funds Purchased and Repurchase Agreements | 12 Months Ended |
Dec. 31, 2018 | |
Brokers And Dealers [Abstract] | |
Federal Funds Purchased and Repurchase Agreements | NOTE 9 - FEDERAL FUNDS PURCHASED AND REPURCHASE AGREEMENTS As of December 31, 2018 and 2017, the Bank had federal funds lines (or the equivalent thereof) with correspondent banks totaling $217,500 and $217,500, respectively. There was $0 in outstanding federal funds purchased at December 31, 2018 and 2017. The Bank enters into borrowing arrangements with our retail business customers and correspondent banks through agreements to repurchase (“securities sold under agreements to repurchase”) under which the bank pledges investment securities owned and under its control as collateral against these short-term borrowing arrangements. At maturity the securities underlying the agreements are returned to the Company. At December 31, 2018 and December 31, 2017, these short-term borrowings totaled $0 and $31,004, respectively, and are secured by securities with carrying amounts of $0 and $41,618, respectively. Information concerning securities sold under agreements to repurchase is summarized as follows: 2018 2017 2016 Average daily balance during the year $ 11,302 $ 32,428 $ 39,647 Average interest rate during the year 1.29 % 0.85 % 0.58 % Maximum month-end balance during the year $ 36,071 $ 33,989 $ 61,669 Weighted average interest rate at year end 0.00 % 1.14 % 0.56 % At December 31, 2018 there were no repurchase agreements and no securities pledged for repurchase agreements. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Federal Home Loan Bank Advances | NOTE 10 – FEDERAL HOME LOAN BANK ADVANCES The Bank has established a line of credit with the FHLB of Cincinnati which is secured by a blanket pledge of 1-4 family residential mortgage loans, home equity lines of credit, and commercial real estate. The availability of the line is dependent, in part, on available collateral. At December 31, 2018 and 2017, the Company had received advances from the FHLB totaling $368,500 and $272,000, respectively. At December 31, 2018, the scheduled maturities of these advances and interest rates were as follows: Scheduled Maturities Weighted Average Rates 2019 $ 313,500 2.24 % 2020 55,000 1.72 % Thereafter — — Total $ 368,500 2.16 % Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. Qualifying loans totaling approximately $675,994, were pledged as security under a blanket pledge agreement with the FHLB at December 31, 2018. Based on this collateral, the Bank is eligible to borrow up to an additional $50.1 million as of December 31, 2018. |
Subordinated Notes
Subordinated Notes | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Subordinated Notes | NOTE 11 – SUBORDINATED NOTES At December 31, 2018, the Company’s subordinated notes, net of issuance costs, totaled $58,693. The Company’s subordinated notes, net of issuance costs, totaled $58,515 at December 31, 2017. For regulatory capital purposes, the subordinated notes are treated as Tier 2 capital, subject to certain limitations, and are included in total regulatory capital when calculating the Company’s total capital to risk weighted assets ratio as indicated in Note 16 of the consolidated financial statements. The Company completed the issuance of $60,000 in principal amount of subordinated notes in two separate offerings. In March 2016, $40,000 of 6.875% fixed-to-floating rate subordinated notes were issued in a public offering to accredited institutional investors, and in June 2016, $20,000 of 7.00% fixed-to-floating rate subordinated notes were issued to certain accredited institutional investors in a private offering. The subordinated notes are unsecured and will rank at least equally with all of the Company’s other unsecured subordinated indebtedness and will be effectively subordinated to all of our secured debt to the extent of the value of the collateral securing such debt. The subordinated notes will be subordinated in right of payment to all of our existing and future senior indebtedness, and will rank structurally junior to all existing and future liabilities of our subsidiaries including, in the case of the Company’s bank subsidiary, its depositors, and any preferred equity holders of our subsidiaries. The holders of the subordinated notes may be fully subordinated to interests held by the U.S. government in the event that we enter into a receivership, insolvency, liquidation, or similar proceeding. The following table summarizes the terms of each subordinated note offering: March 2016 Subordinated Notes June 2016 Subordinated Notes Principal amount issued $40,000 $20,000 Maturity date † March 30, 2026 July 1, 2026 Initial fixed interest rate 6.875% 7.00% Initial interest rate period 5 years 5 years First interest rate change date March 30, 2021 July 1, 2021 Interest payment frequency through year five* Semiannually Semiannually Interest payment frequency after five years* Quarterly Quarterly Interest repricing index and margin 3-month LIBOR plus 5.636% 3-month LIBOR plus 6.04% Repricing frequency after five years Quarterly Quarterly * Prior to January 14, 2019, the Company could not make interest payments on either series of subordinated notes without prior written approval from its primary regulatory agencies. Banking regulators terminated, effective as of January 14, 2019, the MOU previously entered into with the Bank. † The March 2016 Subordinated Notes are redeemable at the Company’s option in whole or in part on or after March 30, 2021, and the June 2016 Subordinated Notes are redeemable at the Company’s option in whole or in part on or after July 1, 2021. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Postemployment Benefits [Abstract] | |
Benefit Plans | NOTE 12 – BENEFIT PLANS A 401(k) benefit plan was adopted to begin benefits on May 1, 2008. The 401(k) benefit plan allows employee contributions of their compensation subject to certain limitations. Employee contributions are matched in the Company’s common stock equal to 100% of the first 2% of the compensation contributed and 50% of the next 4% of the compensation contributed. Expense for the years ended December 31, 2018, 2017 and 2016 was $687, $621 and $523, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 – INCOME TAXES A reconciliation of the income tax expense for the years ended December 31, 2018, 2017 and 2016 to the “expected” tax expense, which was computed by applying the statutory federal income tax rate of 21 percent for 2018 and 35 percent for 2017 and 2016 to income before income tax expense, is as follows: 2018 2017 2016 Computed “expected” tax expense $ 8,491 $ 16,321 $ 13,931 Increase (reduction) in tax expense resulting from: State tax expense, net of federal tax effect (612 ) 333 805 Effect of statutory rate changes enacted (1) - 5,323 — Non-deductible merger costs 67 19 114 Incentive stock options 475 506 254 Bank owned life insurance (320 ) (286 ) (227 ) Tax-exempt interest income, net of expense (1,296 ) (2,585 ) (1,801 ) Insurance premiums (293 ) (347 ) (364 ) Excess tax benefit from exercise of stock options and vesting of restricted stock (647 ) (805 ) (1,013 ) Other 47 52 47 Income tax expense $ 5,912 $ 18,531 $ 11,746 (1) On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. As a result of the changes under the Tax Act, the Company recorded incremental income tax expense of $5,323 during the year ended December 31, 2017, which consisted primarily of the remeasurement of deferred tax assets and liabilities at the new federal statutory rate of 21%. Prior to the enactment of the Tax Act, deferred tax assets and liabilities were measured at the previous federal statutory rate of 35%. Income tax expense (benefit) was as follows: 2018 2017 2016 Current expense Federal $ 6,399 $ 13,653 $ 11,416 State (684 ) 1,093 1,294 Deferred expense Federal 288 (957 ) (908 ) State (91 ) (581 ) (56 ) Deferred tax revaluation expense — 5,323 — Income tax expense $ 5,912 $ 18,531 $ 11,746 The sources of deferred income tax assets (liabilities) at December 31, 2018 and 2017 and the tax effect is as follows: 2018 2017 Deferred tax assets: Organizational and start-up costs $ 51 $ 64 Allowance for loan losses 5,881 5,367 Unrealized loss on securities 5,427 2,403 Net operating loss carry forward 2,035 2,317 Purchase accounting fair value adjustments 844 1,006 Accrued other expenses 701 567 Nonaccrual loan interest 105 355 Loan fees 656 511 Other 1,421 552 Total deferred tax asset 17,121 13,142 Deferred tax liabilities: Mortgage servicing rights $ (879 ) $ (933 ) Premises and equipment (1,204 ) (753 ) Prepaid expenses (702 ) (469 ) Purchase accounting fair value adjustments (250 ) (264 ) Other (897 ) (716 ) Total deferred tax liability (3,932 ) (3,135 ) Net deferred tax asset $ 13,189 $ 10,007 At December 31, 2018, the federal net operating loss remaining from the acquisition of MidSouth totaled $9,690 million, which will expire at various dates from 2025 to 2031. The federal net operating losses that can be utilized are subject to an annual limitation of $1.3 million. Deferred tax assets are recognized for net operating losses because the benefit is more likely than not to be realized. The Company does not have any uncertain tax positions and did not have any interest and penalties recorded in the income statement for the years ended December 31, 2018, 2017 and 2016. The Company and its subsidiaries are subject to U.S. federal income tax as well as income tax of the state of Tennessee. The Company is no longer subject to examination by taxing authorities for years before 2015. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 14 – RELATED PARTY TRANSACTIONS The Company enters into various credit arrangements with its executive officers, directors and their affiliates. These arrangements generally take the form of commercial lines of credit, personal lines of credit, mortgage loans, term loans or revolving arrangements secured by personal residences. Loans to principal officers, directors, and their affiliates during 2018 were as follows: Beginning balance $ 29,187 New loans/advances 4,507 Effect of changes in composition of related parties 4,576 Repayments (15,569 ) Ending balance $ 22,701 Deposits from principal officers, directors, and their affiliates at year end 2018 and 2017 were $40,273 and $17,477. The Bank has entered into various 15-year lease agreements between 2014 and 2018 with certain outside directors of the Company for branch and office facilities within Williamson County and Rutherford County, Tennessee. At December 31, 2018, the approximate future minimum operating lease payments due under non-cancelable operating and capital leases are reported in Note 6, “Premises & Equipment”. Rent expense attributable to related party leases in 2018, 2017 and 2016, was $3,893, $2,582 and $2,574, respectively. The future minimum rent payments of $54,783 are associated with related parties. The Company also paid a company affiliated with an outside director $0, $831 and $2,261 for construction of leasehold improvements during 2018, 2017 and 2016, respectively. In addition, the Company also paid a company affiliated with an outside director $1,027, $997 and $806 for the procurement of various insurance policies during the years ended December 31, 2018, 2017 and 2016, respectively. In 2018, the Bank sold five trucks for an aggregate of $325 to one of the Company’s directors. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Share-Based Payments | NOTE 15 - SHARE-BASED PAYMENTS In connection with the Company’s 2010 private offering, 32,425 warrants were issued to shareholders, one warrant for every twenty shares of common stock purchased. Each warrant allowed the shareholders to purchase an additional share of common stock at $12.00 per share. The warrants were issued with an effective date of March 30, 2010 and were exercisable in whole or in part up to seven years following the date of issuance. The warrants were detachable from the common stock. There were 0 and 12,461 warrants exercised during 2018 and 2017, respectively. A summary of the stock warrant activity for the years ended December 31, 2018 and 2017 follows: 2018 2017 Stock warrants exercised: Intrinsic value of warrants exercised $ - $ 329 Cash received from warrants exercised - 150 The warrants expired on March 30, 2017; therefore, at December 31, 2017 and 2018, there were no outstanding warrants. The Company has two share based compensation plans as described below. Total compensation cost that has been charged against income for those plans was $6,569, $2,802, and $1,641, respectively, for 2018, 2017, and 2016. The total income tax benefit related to vesting of restricted stock and exercises of stock options was $647, $805, and $1,013, respectively, for 2018, 2017 and 2016. Equity Incentive Employee, organizer and director awards are generally granted with an exercise price equal to the market price of the Company’s common stock at the date of grant; those option awards have a vesting period of two to five years and have a ten-year contractual term with certain events allowing for accelerated vesting. The Company assigns discretion to its Board of Directors to make grants either as qualified incentive stock options or as non-qualified stock options. All employee grants are intended to be treated as qualified incentive stock options, if allowable. All other grants are expected to be treated as non-qualified. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected stock price volatility is based on historical volatilities of the Company’s common stock. The Company uses historical data to estimate option exercise and post-vesting termination behavior. The expected term of options granted represents the period of time that options granted are expected to be outstanding, which takes into account that the options are not transferable. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of the grant. The fair value of options granted was determined using the following weighted-average assumptions as of grant date. 2018 2017 2016 Risk-free interest rate 3.10 % 2.05 % 1.59 % Expected term 7.5 years 6.9 years 7.5 years Expected stock price volatility 30.79 % 33.21 % 30.45 % Dividend yield 0.00 % 0.03 % 0.22 % The weighted average fair value of options granted for the years ending December 31, 2018, 2017 and 2016 was $11.50, $14.43, and $10.23, respectively. A summary of the activity with respect to stock options for the years ended December 31, 2018, 2017 and 2016 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 1,312,791 $ 13.04 Granted 299,587 28.85 Exercised (214,947 ) 11.31 Forfeited, expired, or cancelled (2,415 ) 19.43 Outstanding at December 31, 2016 1,395,016 $ 16.70 Granted 295,820 37.68 Exercised (180,555 ) 11.87 Forfeited, expired, or cancelled (3,113 ) 25.37 Outstanding at December 31, 2017 1,507,168 $ 21.37 Granted 572,637 30.48 Exercised (244,309 ) 16.83 Forfeited, expired, or cancelled (27,574 ) 28.66 Outstanding at December 31, 2018 1,807,922 $ 24.68 6.41 $ 9,581 Vested or expected to vest 914,368 $ 24.68 6.41 $ 9,102 Exercisable at December 31, 2018 798,994 $ 18.59 5.23 $ 8,750 2018 2017 2016 Stock options exercised: Intrinsic value of options exercised $ 4,873 $ 4,878 $ 4,725 Cash received from options exercised 3,047 1,615 1,571 Tax benefit realized from option exercises 565 484 843 As of December 31, 2018, there was $6,880 of total unrecognized compensation cost related to non-vested stock options granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.2 years. Additionally, the Company’s 2007 Omnibus Equity Incentive Plan and the Amended and Restated 2017 Omnibus Equity Incentive Plan provide for the granting of restricted share awards and other performance related incentives. When restricted shares are awarded, a participant receives voting and dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. These awards have a vesting period of two to five years with certain events allowing for accelerated vesting and vest in equal annual installments on the anniversary date of the grant. During 2018, 126,288 restricted share awards were granted, and during 2017, 27,282 restricted share awards were granted from the Company’s 2007 Omnibus Equity Incentive Plan. All future restricted share awards will be granted from the Amended and Restated 2017 Omnibus Equity Incentive Plan. A summary of activity for non-vested restricted share awards for the year ended December 31, 2018, 2017 and 2016 is as follows: Non-vested Shares Shares Weighted- Average Grant-Date Fair Value Non-vested at December 31, 2015 105,864 $ 15.89 Granted 36,496 28.47 Vested (33,407 ) 17.06 Forfeited (2,495 ) 16.97 Non-vested at December 31, 2016 106,458 $ 19.81 Granted 27,282 37.35 Vested (38,995 ) 18.40 Forfeited (564 ) 28.66 Non-vested at December 31, 2017 94,181 $ 25.42 Granted 126,288 33.04 Vested (40,134 ) 26.69 Forfeited (3,819 ) 31.80 Non-vested at December 31, 2018 176,516 $ 31.07 Compensation expense associated with the restricted share awards is recognized on a straight-line basis over the time period that the restrictions associated with the awards lapse based on the total cost of the award at the grant date. As of December 31, 2018, there was $2,650 of total unrecognized compensation cost related to non-vested shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 1.8 years. The total fair value of shares vested during the years ended December 31, 2018, 2017 and 2016 was $1,382, $1,432, and $1,003, respectively. |
Regulatory Capital Matters
Regulatory Capital Matters | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Matters | NOTE 16 – REGULATORY CAPITAL MATTERS Banks and bank holding companies are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Management believes that, as of December 31, 2018, the Company and Bank meet all capital adequacy requirements to which they are subject. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. Banks (Basel III rules) became effective for the Company on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under the Basel III rules, in order to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers, a banking organization must hold a capital conservation buffer composed of Common Equity Tier 1 Capital above its minimum risk-based capital requirements. The buffer is measured relative to RWA. Phase-in of the capital conservation buffer requirements began on January 1, 2016 and the requirements were fully phased in on January 1, 2019. The capital conservation buffer threshold for 2018 was 1.875%. A banking organization with a buffer greater than 2.5% will not be subject to limits on capital distributions or discretionary bonus payments; however, a banking organization with a buffer of less than 2.5% will be subject to increasingly stringent limitations as the buffer approaches zero. The rule also prohibits a banking organization from making distributions or discretionary bonus payments during any quarter if its eligible retained income is negative in that quarter and its capital conservation buffer ratio was less than 2.5% at the beginning of the quarter. Effectively, the Basel III framework will require us to meet minimum capital ratios of (i) 7% for Common Equity Tier 1 Capital, (ii) 8.5% Tier 1 Capital, and (iii) 10.5% Total Capital. The eligible retained income of a banking organization is defined as its net income for the four calendar quarters preceding the current calendar quarter, based on the organization’s quarterly regulatory reports, net of any distributions and associated tax effects not already reflected in net income. Now that the new rule is fully phased in, the minimum capital requirements plus the capital conservation buffer will exceed the prompt corrective action (“PCA”) well-capitalized thresholds. PCA regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial Actual Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Company-Level Common equity Tier 1 capital to RWA $ 367,096 12.18 % $ 135,598 4.50 % N/A N/A Total Capital to RWA $ 449,325 14.91 % $ 241,064 8.00 % N/A N/A Tier 1 (Core) Capital to RWA $ 367,096 12.18 % $ 180,798 6.00 % N/A N/A Tier 1 (Core) Capital to average assets $ 367,096 8.76 % $ 167,553 4.00 % N/A N/A Bank-Level Common equity Tier 1 capital to RWA $ 421,335 13.98 % $ 135,613 4.50 % $ 195,886 6.50 % Total Capital to RWA $ 444,871 14.76 % $ 241,090 8.00 % $ 301,363 10.00 % Tier 1 (Core) Capital to RWA $ 421,335 13.98 % $ 180,818 6.00 % $ 241,090 8.00 % Tier 1 (Core) Capital to average assets $ 421,335 10.07 % $ 167,420 4.00 % $ 209,275 5.00 % December 31, 2017 Company-Level Common equity Tier 1 capital to RWA $ 299,229 11.37 % $ 118,479 4.50 % N/A N/A Total Capital to RWA $ 379,083 14.40 % $ 210,629 8.00 % N/A N/A Tier 1 (Core) Capital to RWA $ 299,229 11.37 % $ 157,972 6.00 % N/A N/A Tier 1 (Core) Capital to average assets $ 299,229 8.25 % $ 145,100 4.00 % N/A N/A Bank-Level Common equity Tier 1 capital to RWA $ 353,512 13.43 % $ 118,489 4.50 % $ 171,151 6.50 % Total Capital to RWA $ 374,851 14.24 % $ 210,647 8.00 % $ 263,309 10.00 % Tier 1 (Core) Capital to RWA $ 353,512 13.43 % $ 157,985 6.00 % $ 210,647 8.00 % Tier 1 (Core) Capital to average assets $ 353,512 9.75 % $ 145,003 4.00 % $ 181,253 5.00 % Note: Minimum ratios presented exclude the capital conservation buffer. Dividend Restrictions |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 17 - FAIR VALUE Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other 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. Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods and significant assumptions to estimate the fair value of each type of asset and liability: Securities Derivatives Impaired Loans Foreclosed Assets Appraisals for both collateral-dependent impaired loans and real estate owned are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been review and verified by the Company. Once received, a member of the credit administration department reviews the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value in comparison with independent data sources such as recent market data or industry-wide statistics. On an annual basis, the Company compares the actual selling price of collateral that has been sold to the most recent appraised value to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Loans Held For Sale: Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury $ 253,014 $ — $ — U.S. government sponsored entities and agencies — 21,888 — Mortgage-backed securities: residential — 580,699 — Asset-backed securities — 24,844 — Corporate Notes — 12,424 — State and political subdivisions — 137,799 — Total securities available for sale $ 253,014 $ 777,654 $ — Loans held for sale $ — $ 11,103 $ — Mortgage banking derivatives $ — $ 206 $ — Financial Liabilities Mortgage banking derivatives $ — $ 129 $ — Fair Value Measurements at December 31, 2017 Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury $ 228,909 $ — $ — U.S. government sponsored entities and agencies — 19,961 — Mortgage-backed securities: residential — 632,566 — Mortgage-backed securities: commercial — 5,074 — State and political subdivisions — 113,371 — Total securities available for sale $ 228,909 $ 770,972 $ — Loans held for sale $ — $ 12,024 $ — Mortgage banking derivatives $ — $ 175 $ — Financial Liabilities Mortgage banking derivatives $ — $ 35 $ — There were no transfers between levels during 2018 and 2017. Financial Instruments Recorded Using Fair Value Option At December 31, 2018 the unpaid principal balance of loans held for sale was $10,722, resulting in an unrealized gain of $381 included in gains on sale of loans. None of these loans are 90 days or more past due or on nonaccrual as of December 31, 2018. At December 31, 2017, the unpaid principal balance of loans held for sale was $11,681, resulting in an unrealized gain of $343 included in gains on sale of loans. Assets Measured at Fair Value on a Non-recurring Basis Foreclosed assets measured at fair value less costs to sell, had a net carrying amount of $0 and $1,503 as of December 31, 2018 and 2017, respectively. There were no properties at December 31, 2018 that had required write-downs to fair value resulting in no write downs for the year ended December 31, 2017. The carrying amounts and estimated fair values of financial instruments, at December 31, 2018 and 2017 are as in the tables below. Due to the adoption of ASU 2016-01, the fair value of loans presented for 2018 uses the exit price and may not be comparable to the prior period. Fair Value Measurements at Carrying December 31, 2018 Using: Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 280,212 $ 280,212 $ — $ — $ 280,212 Securities available for sale 1,030,668 253,014 777,654 — 1,030,668 Certificates of deposit held at other financial institutions 3,594 — 3,594 — 3,594 Securities held to maturity 121,617 — 118,955 — 118,955 Loans held for sale 11,103 — 11,103 — 11,103 Net loans 2,641,948 — — 2,622,386 2,622,386 Restricted equity securities 21,831 n/a n/a n/a n/a Servicing rights, net 3,403 — — 4,836 4,836 Accrued interest receivable 13,337 71 5,539 7,727 13,337 Financial liabilities Deposits $ 3,431,807 $ 2,105,951 $ 1,319,326 $ — $ 3,425,277 Federal funds purchased and repurchase agreements - — — — — Federal Home Loan Bank advances 368,500 — 366,786 — 366,786 Subordinated notes 58,693 — — 59,852 59,852 Accrued interest payable 4,700 146 3,866 688 4,700 Fair Value Measurements at Carrying December 31, 2017 Using: Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 251,543 $ 251,543 $ — $ — $ 251,543 Securities available for sale 999,881 228,909 770,972 — 999,881 Certificates of deposit held at other financial institutions 2,855 — 2,855 — 2,855 Securities held to maturity 214,856 — 217,608 — 217,608 Loans held for sale 12,024 — 12,024 — 12,024 Net loans 2,235,361 — — 2,230,607 2,230,607 Restricted equity securities 18,492 n/a n/a n/a n/a Servicing rights, net 3,620 — — 5,089 5,089 Accrued interest receivable 11,947 73 5,724 6,150 11,947 Financial liabilities Deposits $ 3,167,228 $ 1,911,928 $ 1,224,041 $ — $ 3,135,969 Federal funds purchased and repurchase agreements 31,004 — 31,004 — 31,004 Federal Home Loan Bank advances 272,000 — 270,311 — 270,311 Subordinated notes 58,515 — — 59,951 59,951 Accrued interest payable 2,769 51 2,030 688 2,769 The methods and assumptions not previously described used to estimate fair values are described as follows: (a) The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. (b) Fair values of loans, excluding loans held for sale, are estimated as follows: For variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values resulting in a Level 3 classification. Fair values for other loans are estimated using discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality resulting in a Level 3 classification. Fair values for impaired loans are valued using the lower of cost or estimated based on the fair value of the underlying collateral. The fair value of the collateral is determined based on internal estimates and assessments provided by third-party appraisers. (c) It is not practical to determine the fair value of FHLB or FRB stock due to restrictions placed on its transferability. (d) Fair value of mortgage servicing rights is based on valuation models that calculate the present value of estimated net cash flows based on industry market data. The valuation model incorporates assumptions that market participants would use in estimating future net cash flows resulting in a Level 3 classification. (e) Deposits: The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings, and certain types of money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount) resulting in a Level 1 classification. The carrying amounts of fixed-term money market accounts approximate their fair values at the reporting date resulting in a Level 1 classification. Fair values for certificates of deposit are estimated using a discounted cash flows calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits resulting in a Level 2 classification. (f) The carrying amounts of federal funds purchased, borrowings under repurchase agreements, and other short-term borrowings, generally maturing within ninety days, approximate their fair values resulting in a Level 2 classification. (g) Federal The fair values of the Company’s long-term borrowings are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 2 classification. (h) Accrued The carrying amounts of accrued interest approximate fair value resulting in a Level 1, Level 2 or Level 3 classification based on the asset/liability with which they are associated. (i) Fair values for off-balance sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of commitments is not material. |
Mortgage Banking Derivatives
Mortgage Banking Derivatives | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Mortgage Banking Derivatives | NOTE 18 – MORTGAGE BANKING DERIVATIVES Commitments to fund certain mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors are considered derivatives. It is the Company’s practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of changes in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated as hedge relationships. At year-end 2018, the Company had approximately $28,731 of interest rate lock commitments and approximately $31,519 of forward commitments for the future delivery of residential mortgage loans. The fair value of these mortgage banking derivatives was reflected by a derivative asset and liability of $206 and $129, respectively, at December 31, 2018. At year-end 2017, the Company had approximately $21,656 of interest rate lock commitments and approximately $35,566 of forward commitments for the future delivery of residential mortgage loans. The fair value of these mortgage banking derivatives was reflected by a derivative asset and liability of $175 and $35, respectively, at December 31, 2017. Fair values were estimated based on changes in mortgage interest rates from the date of the commitments. Changes in the fair values of these mortgage-banking derivatives are included in net gains on sale of loans. The net gains (losses) relating to free-standing derivative instruments used for risk management is summarized below: 2018 2017 2016 Forward contracts related to mortgage loans held for sale and interest rate contracts $ 94 $ 32 $ (37 ) Interest rate contracts for customers 31 (54 ) (182 ) The following table reflects the amount and fair value of mortgage banking derivatives included in the consolidated balance sheet as of December 31, 2018 and 2017: 2018 2017 Notional Amount Fair Value Notional Amount Fair Value Included in other assets (liabilities): Interest rate contracts for customers $ 28,731 $ 206 $ 21,656 $ 175 Forward contracts related to mortgage loans held for sale $ 31,519 $ (129 ) $ 35,566 $ (35 ) |
Loan Commitments and Other Rela
Loan Commitments and Other Related Activities | 12 Months Ended |
Dec. 31, 2018 | |
Loan Commitments And Other Related Activities [Abstract] | |
Loan Commitments and Other Related Activities | NOTE 19 – LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES Some financial instruments, such as loan commitments, credit lines, letters of credit, and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contract are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. The contractual amounts of financial instruments with off-balance-sheet risk at year end were as follows: 2018 2017 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 28,731 $ — $ 21,656 $ — Unused lines of credit 128,313 526,271 124,997 480,184 Standby letters of credit 8,293 31,731 9,223 36,401 Commitments to make loans are generally made for periods of over 365 days. The fixed rate loan commitments have interest rates ranging from 2.50% to 12.00% and maturity terms ranging from less than 1 year to 30 years. |
Parent Company Only Condensed F
Parent Company Only Condensed Financial Information | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Condensed Financial Information | NOTE 20 – PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Franklin Financial Network, Inc. follows: CONDENSED BALANCE SHEETS December 31, 2018 2017 ASSETS Cash and cash equivalents $ 3,364 $ 5,958 Investment in banking subsidiary 426,979 358,833 Investment in other subsidiaries 1,919 2,393 Other assets 1,617 235 Total assets $ 433,879 $ 367,419 LIABILITIES AND EQUITY Subordinated notes $ 58,693 $ 58,515 Accrued expenses and other liabilities 2,446 4,354 Shareholders’ equity 372,740 304,550 Total liabilities and shareholders’ equity $ 433,879 $ 367,419 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years ended December 31, 2018 2017 2016 Dividends from subsidiaries $ 5,925 $ 4,000 $ 2,050 Other income 203 171 305 Interest expense 4,328 4,321 2,902 Other expense 5,163 2,890 2,842 Loss before income tax and undistributed subsidiaries income (3,363 ) (3,040 ) (3,389 ) Income tax benefit (2,229 ) (2,671 ) (2,320 ) Equity in undistributed subsidiaries income 35,655 28,468 29,126 Net income $ 34,521 $ 28,099 $ 28,057 Comprehensive income $ 25,966 $ 29,997 $ 20,895 CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31, 2018 2017 2016 Cash flows from operating activities Net income $ 34,521 $ 28,099 $ 28,057 Adjustments: Equity in undistributed subsidiaries income (35,655 ) (28,468 ) (29,126 ) Amortization of debt issuance costs 178 178 124 Stock-based compensation 1,008 219 105 Change in other assets (1,367 ) 728 (34 ) Change in other liabilities (1,908 ) 686 3,058 Net cash from operating activities (3,223 ) 1,442 2,184 Cash flows from investing activities Investments in subsidiaries (26,512 ) (1,359 ) (116,850 ) Net cash acquired from acquisition (See Note 2) 24,660 — — Net cash from investing activities (1,852 ) (1,359 ) (116,850 ) Cash flows from financing activities Proceeds from other borrowings — — 10,000 Repayment of other borrowings — — (10,000 ) Proceeds from issuance of subordinated notes, net of issuance costs — — 58,213 Proceeds from exercise of common stock warrants — 150 101 Proceeds from exercise of common stock options 3,047 1,615 1,571 Proceeds from issuance of common stock, net of offering costs (242 ) — 67,557 Divestment of common stock issued to 401(k) plan (308 ) (256 ) (300 ) Redemption of Series A preferred stock — — (10,000 ) Dividends paid on preferred stock (16 ) — (23 ) Net cash from financing activities 2,481 1,509 117,119 Net change in cash and cash equivalents (2,594 ) 1,592 2,453 Beginning cash and cash equivalents 5,958 4,366 1,913 Ending cash and cash equivalents $ 3,364 $ 5,958 $ 4,366 Non-cash supplemental information: Transfers from subsidiary stock based compensation expense to parent company only additional paid-in capital $ 5,561 $ 2,583 $ 1,536 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 21 – EARNINGS PER SHARE The two-class method is used in the calculation of basic and diluted earnings per share. Under the two-class method, earnings available to common shareholders for the period are allocated between common shareholders and participating securities according to dividends declared (or accumulated) and participation rights in undistributed earnings. The factors used in the earnings per share computation follow: Years Ended December 31, 2018 2017 2016 Basic Net income available to common shareholders $ 34,505 $ 28,083 $ 28,034 Less: earnings allocated to participating securities (372 ) (219 ) (284 ) Net income allocated to common shareholders $ 34,133 $ 27,864 $ 27,750 Weighted average common shares outstanding including participating securities 14,169,294 13,145,005 10,933,095 Less: Participating securities (152,638 ) (102,650 ) (110,628 ) Average shares 14,016,656 13,042,355 10,822,467 Basic earnings per common share $ 2.44 $ 2.14 $ 2.56 Diluted Net income allocated to common shareholders $ 34,133 $ 27,864 $ 27,750 Weighted average common shares outstanding for basic earnings per common share 14,016,656 13,042,355 10,822,467 Add: Dilutive effects of assumed exercises of stock options 540,302 633,738 655,485 Add: Dilutive effects of assumed exercises of stock warrants — 1,578 12,667 Average shares and dilutive potential common shares 14,556,958 13,677,671 11,490,619 Dilutive earnings per common share $ 2.34 $ 2.04 $ 2.42 Average stock options of 546,325, 285,706, and 165,232 shares of common stock were not considered in computing diluted earnings per common share for the year ended December 31, 2018, 2017, and 2016, respectively, because they were antidilutive. |
Capital Offering
Capital Offering | 12 Months Ended |
Dec. 31, 2018 | |
Capital Offering [Abstract] | |
Capital Offering | NOTE 22 - CAPITAL OFFERING The Company completed a secondary public offering of its common stock on November 21, 2016. The Company issued 2,242,500 shares of common stock at a price of $32.00 per share. Net proceeds were as follows: Gross proceeds $ 71,760 Less: Stock offering costs (4,203 ) Net proceeds from issuance of common stock $ 67,557 The proceeds of the offering were used to provide capital to Franklin Synergy Bank to support continued growth and for general corporate purposes. |
Quarterly Financial Results (Un
Quarterly Financial Results (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (Unaudited) | NOTE 23 – QUARTERLY FINANCIAL RESULTS (UNAUDITED) The following table provides a summary of selected consolidated quarterly financial data for the years ended December 31, 2018 and 2017: 2018 2017 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter† Second Quarter† First Quarter† Income Statement Data ($): Interest income $ 46,045 $ 43,717 $ 42,136 $ 38,047 $ 35,121 $ 33,780 $ 33,011 $ 30,541 Interest expense 19,125 17,155 15,231 12,931 10,513 9,454 8,542 6,898 Net interest income 26,920 26,562 26,905 25,116 24,608 24,326 24,469 23,643 Provision for loan losses 975 136 570 573 1,295 590 573 1,855 Noninterest income (383 ) 3,442 4,147 3,456 3,264 3,569 3,880 4,008 Noninterest expense 21,689 18,251 18,050 15,488 15,987 15,278 15,283 14,276 Net income before taxes 3,873 11,617 12,432 12,511 10,590 12,027 12,493 11,520 Income tax expense 122 1,068 2,263 2,459 8,188 3,138 3,619 3,586 Net income 3,751 10,549 10,169 10,052 2,402 8,889 8,874 7,934 Net income available to common shareholders 3,743 10,549 10,161 10,052 2,394 8,889 8,866 7,934 Earnings per share, basic $ 0.26 $ 0.73 $ 0.71 $ 0.76 $ 0.18 $ 0.67 $ 0.68 $ 0.61 Earnings per share, diluted $ 0.25 $ 0.70 $ 0.68 $ 0.73 $ 0.17 $ 0.65 $ 0.64 $ 0.58 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation FFN was incorporated under the laws of the State of Tennessee on April 5, 2007. FSB was incorporated under the laws of the State of Tennessee and received its Certificate of Authority from the Tennessee Department of Financial Institutions and approval of Federal Deposit Insurance Corporation (FDIC) insurance on November 2, 2007. FSB is also a Federal Reserve member bank. The Company provides financial services through its offices in Franklin, Brentwood, Spring Hill, Murfreesboro, Nashville, Nolensville, and Smyrna, Tennessee. Its primary deposit products are checking, savings, and certificate of deposit accounts, and its primary lending products are commercial and residential construction, commercial, installment loans and lines secured by home equity. Substantially all loans are secured by specific items of collateral including commercial and residential real estate, business assets, and consumer assets. Commercial loans are expected to be repaid by cash flow from operations of businesses. The Company also focuses on electronic banking products such as internet banking, remote deposit capture and lockbox services. On July 1, 2014, Mid-South Bancorp (“Mid-South”) merged into the Bank with the Bank continuing as the surviving company. On December 28, 2015, the Company invested in a wholly-owned subsidiary, FSRM, which provides risk management services to the Company in the form of enhanced insurance coverages. On March 1, 2016, the Bank invested in a wholly-owned subsidiary, Franklin Synergy Investments of Tennessee, Inc. (“FSIT”), which provides investment services to the Bank. Also on March 1, 2016, FSIT invested in a wholly-owned subsidiary, Franklin Synergy Investments of Nevada, Inc. (“FSIN”), to provide investment services to FSIT. In addition, on March 1, 2016, FSIN invested in a subsidiary, Franklin Synergy Preferred Capital, Inc. (“FSPC”), to serve as a real estate investment trust (“REIT”), to allow the Bank to sell real estate loans to the REIT to obtain a tax benefit. FSIN has a controlling interest in the REIT, but the REIT also has a group of investors that own a noncontrolling interest in the preferred stock of the REIT. On April 1, 2018, Civic Bank & Trust merged with and into the Bank with the Bank continuing as the surviving company. (See Note 2) |
Use of Estimates | Use of Estimates |
Cash Flows | Cash Flows |
Interest-Bearing Deposits in Financial Institutions | Interest-Bearing Deposits in Financial Institutions |
Securities | Securities Interest income includes amortization of purchase premium or discount. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method. Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. Management assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of these criteria is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. No OTTI has been recognized for the years ended December 31, 2018, 2017 or 2016. |
Loans Held for Sale | Loans Held for Sale Certain loans held for sale are sold with servicing rights retained. The carrying value of loans sold with retained servicing is reduced by the amount allocated to the servicing right. Gains and losses on sales of loans are based on the difference between the selling price and the carrying value of the related loan sold. |
Loans | Loans Interest income on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. A loan is moved to non-accrual status in accordance with the Company’s policy, typically after 90 days of non-payment. All interest accrued but not received for loans placed on nonaccrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Concentration of Credit Risk | Concentration of Credit Risk |
Purchased Credit Impaired Loans | Purchased Credit Impaired (PCI) Loans Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan’s or pool’s contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. A loan is impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. All loans classified by management as substandard or worse are individually evaluated for potential designation as impaired. If a loan is impaired, a portion of the allowance is allocated so that the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Troubled debt restructurings (TDRs) are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. TDRs are subsequently tracked and reviewed for impairment quarterly. For TDRs that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses. The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on a combination of the Bank’s loss history and loss history over the past three years from a group of other local banks that operate in the Middle Tennessee areas. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified: • Construction and land development loans include loans to finance the process of improving, preparatory or erecting new structures or the on-site construction of industrial, commercial, residential or farm buildings. Construction and land development loans also include loans secured by vacant land, except land known to be used or usable for agricultural purposes. Construction loans generally are made for relatively short terms. They generally are more vulnerable to changes in economic conditions. Further, the nature of these loans is such that they are more difficult to evaluate and monitor. The risk of loss on a construction loan is dependent largely upon the accuracy of the initial estimate of the property’s value upon completion of the project and the estimated cost (including interest) of the project. Periodic site inspections are made on construction loans. • Commercial real estate loans include loans secured by non-residential real estate, including farmland and improvements thereon. Often these loans are made to single borrowers or groups of related borrowers, and the repayment of these loans largely depends on the results of operations and management of these properties. Adverse economic conditions may affect the repayment ability of these loans. • Residential real estate loans include loans secured by residential real estate, including single-family and multi-family dwellings. Mortgage title insurance and hazard insurance are normally required. Adverse economic conditions in the Company’s market area may reduce borrowers’ ability to repay these loans and may reduce the collateral securing these loans. • Commercial and industrial loans include loans for commercial, industrial, healthcare or agricultural purposes to business enterprises that are not secured by real estate. Commercial loans are typically made on the basis of the borrower’s ability to repay from the cash flow of the borrower’s business. Commercial and Agriculture loans are generally secured by accounts receivable, inventory and equipment. The collateral securing loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. • Consumer and other loans include loans to individuals for household, family and other personal expenditures that are not secured by real estate. Consumer loans are generally secured by customer deposit accounts, vehicles and other household goods. The collateral securing consumer loans may depreciate over time. |
Servicing Rights | Servicing Rights Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to carrying amount. Impairment is determined by stratifying rights into groupings based on predominant risk characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual grouping, to the extent that fair value is less than the carrying amount. If the Company later determines that all or a portion of the impairment no longer exists for a particular grouping, a reduction of the allowance may be recorded as an increase to income. Changes in valuation allowances are reported with loan servicing fees on the income statement. The fair values of servicing rights are subject to significant fluctuations as a result of changes in estimated and actual prepayment speeds and default rates and losses. Servicing fee income, which is reported on the income statement as loan servicing fees, is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal; or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against mortgage loan servicing fee income. Late fees and ancillary fees related to loan servicing are not material. |
Transfers of Financial Assets | Transfers of Financial Assets |
Foreclosed Assets | Foreclosed Assets |
Premises and Equipment | Premises and Equipment |
Restricted Equity Securities | Restricted Equity Securities |
Company Owned Life Insurance/Bank Owned Life Insurance | Company Owned Life Insurance/Bank Owned Life Insurance |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Other intangible assets consist of core deposit and acquired customer relationship intangible assets arising from whole bank and branch acquisitions are amortized on an accelerated method over their estimated useful lives, which range from 7 to 10 years. |
Long-Term Assets | Long-Term Assets |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments |
Mortgage Banking Derivatives | Mortgage Banking Derivatives |
Stock-Based Compensation | Stock-Based Compensation |
Income Taxes | Income Taxes A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
Retirement Plans | Retirement Plans |
Comprehensive Income | Comprehensive Income |
Earnings Per Common Share | Earnings Per Common Share |
Loss Contingencies | Loss Contingencies |
Restrictions on Cash | Restrictions on Cash |
Dividend Restriction | Dividend Restriction |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Operating Segments | Operating Segments |
Reclassifications | Reclassifications: |
Recently Adopted and Recently Issued, Not Yet Effective Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, “ Revenue from Contracts with Customers The Company has identified the contract with a customer, identified the performance obligations in the contract, determined the transaction price, allocated the transaction price to the performance obligations in the contract, and recognized revenue when (or as) the Company satisfied a performance obligation. Significant revenue has not been recognized in the current reporting period that results from performance obligations satisfied in previous periods. The Company’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not impacted by the new standard. The Company has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying the new standard that significantly affects the determination of the amount and timing of revenue from contracts with customers. In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The guidance affects the accounting for equity investments, financial liabilities under the fair value option and the presentation and disclosure requirements of financial instruments. ASU 2016-01 was effective for the Company on January 1, 2018 and resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. The Company does not have any equity investments that qualify for consideration under ASU 2016-01. See Note 9, “Fair Value,” for further information regarding the valuation of these loans. In January 2017, the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business In February 2018, the FASB issued Accounting Standards Update (“ASU”) 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . ” Under ASU 2018-02, entities may elect to reclassify certain income tax effects related to the change in the U.S. statutory federal income tax rate under the Tax Cuts and Jobs Act, which was enacted on December 22, 2017, from accumulated other comprehensive income to retained earnings. ASU 2018-02 also requires certain accounting policy disclosures. We elected to adopt the provisions of ASU 2018-02 as of January 1, 2018 in advance of the required application date of January 1, 2019. Early adoption is permitted with retrospective application. Deferred tax assets that were realized after December 31, 2017, were remeasured using the tax rates enacted as a result of the 2017 Tax Cuts and Jobs Act resulting in an additional income tax expense of $5,323 at December 31, 2017. In March 2018, the FASB issued ASU 2018-05, “Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin (SAB) No. 118.” ASU 2018-05 amends the Accounting Standards Codification to incorporate various SEC paragraphs pursuant to the issuance of SAB 118. SAB 118 addresses the application of generally accepted accounting principles in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Cuts and Jobs Act. See Note 13 - Income Taxes. ASU 2015-05 became effective January 1, 2018, and did not have a material impact on our consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedging Activities from the HTM intention to the AFS intention under a one-time exemption granted under the pronouncement. The transfer was not material In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. Recently Issued, Not Yet Effective Accounting Pronouncements In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases The guidance requires that a lessee should recognize lease assets and lease liabilities as compared to previous GAAP that did not require lease assets and lease liabilities to be recognized for operating leases. The guidance becomes effective for Pinnacle Financial on January 1, 2019. In July 2016, the FASB issued Accounting Standards Update 2018-10, Codification Improvements to Topic 842, Leases which provides technical corrections and improvements to ASU 2016-02. It is not anticipated that this update will have an impact on our adoption of ASU 2016-02. In July 2016, the FASB issued Targeted Improvements which provides an optional transition method to adopt the new requirements of ASU 2016-02 as of the adoption date with no adjustment to the presentation or disclosure of comparative prior periods included in the financial statements in the period of adoption. The Company intends to elect the optional transition method on January 1, 2019, which will result in presentation of periods prior to adoption under the prior lease guidance of ASC Topic 840. In December 2018, the FASB issued . ASU 2018-20 permits lessors to account for certain taxes as lessee costs, permits lessors to exclude from revenue certain lessor costs paid by lessees directly to third parties, and requires lessors to allocate certain variable payments to lease and non-lease components. The Company expects to record a right of use asset and lease liability between $40 and $45 million on the adoption date of January 1, 2019, In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In January 2017, the FASB issued Accounting Standards Update No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20), Premium Amortization on Purchased Callable Debt Securities ASU 2018-13, “Fair Value Measurement (Topic 820) - Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement.” ASU 2018-13 modifies the disclosure requirements on fair value measurements in Topic 820. The amendments in this update remove disclosures that no longer are considered cost beneficial, modify/clarify the specific requirements of certain disclosures, and add disclosure requirements identified as relevant. ASU 2018-13 will be effective for us on January 1, 2020, with early adoption permitted, and is not expected to have a significant impact on our financial statements. ASU 2018-14, “Compensation - Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20).” ASU 2018-14 amends and modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans. The amendments in this update remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. ASU 2018-14 will be effective for us on January 1, 2021, with early adoption permitted, and is not expected to have a significant impact on our financial statements. 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 clarifies certain aspects of ASU 2015-05, “Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” which was issued in April 2015. Specifically, 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 does not affect the accounting for the service element of a hosting arrangement that is a service contract. ASU 2018-15 will be effective for us on January 1, 2020, with early adoption permitted, and is not expected to have a significant impact on our financial statements. ASU 2018-16, “Derivatives and Hedging (Topic 815) - Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes.” The amendments in this update permit use of the OIS rate based on SOFR as a U.S. benchmark interest rate for hedge accounting purposes under Topic 815 in addition to the interest rates on direct U.S. Treasury obligations, the LIBOR swap rate, the OIS rate based on the Fed Funds Effective Rate and the Securities Industry and Financial Markets Association (SIFMA) Municipal Swap Rate. ASU 2018-16 will be effective for us on January 1, 2019 and is not expected to have a significant impact on our financial statements. Other than those pronouncements discussed above and those which have been recently implemented, we do not believe there were any other recently issued accounting pronouncement that are expected to materially impact the Company. |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Consideration Paid for Business Combination and Acquisition of Assets and Liabilities | The following table summarizes the consideration paid for Civic and the amounts of the assets acquired and liabilities assumed recognized at the acquisition date: Consideration: Common stock issued to Civic shareholders $ 31,635 Fair value of stock options issued to Civic option holders 1,539 Fair value of total consideration $ 33,174 Recognized amounts of identifiable assets acquired and liabilities assumed: Cash and cash equivalents $ 24,660 Certificates of deposit at other financial institutions 500 Securities available for sale 31,734 Loans 96,385 Equity securities 876 Premises and equipment 253 Core deposit intangibles 558 Foreclosed assets 350 Other assets 5,285 Total assets acquired 160,601 Deposits 123,162 Federal Home Loan Bank advances 11,500 Other liabilities 1,817 Total liabilities assumed 136,479 Total net assets acquired 24,122 Goodwill $ 9,052 |
Schedule of Pro forma Information of Business Acquired | The following table presents supplemental unaudited pro forma information as if the Civic acquisition had occurred at the beginning and 2017. The unaudited pro forma information includes adjustments for interest income on loans acquired, amortization of intangibles arising from the transaction, interest expense on deposits acquired, and the related income tax effects. The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transactions been effected on the assumed dates. For the Year Ended December 31, Unaudited 2018 2017 Net interest income – pro forma $ 106,765 $ 103,055 Net income – pro forma $ 34,606 $ 29,368 Earnings per share – pro forma: Basic $ 2.28 $ 2.09 Diluted $ 2.20 $ 1.99 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available for Sale Securities | The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at December 31, 2018 and 2017 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value December 31, 2018 U.S. Treasury securities $ 253,015 $ 59 $ (60 ) $ 253,014 U.S. government sponsored entities and agencies 21,999 1 (112 ) 21,888 Mortgage-backed securities: residential 596,766 27 (16,094 ) 580,699 Asset-backed securities 25,744 — (900 ) 24,844 Corporate Notes 12,480 21 (77 ) 12,424 State and political subdivisions 141,432 863 (4,496 ) 137,799 Total $ 1,051,436 $ 971 $ (21,739 ) $ 1,030,668 December 31, 2017 U.S. Treasury securities $ 229,119 $ — $ (210 ) $ 228,909 U.S. government sponsored entities and agencies 20,125 — (164 ) 19,961 Mortgage-backed securities: residential 641,225 102 (8,761 ) 632,566 Mortgage-backed securities: commercial 5,133 — (59 ) 5,074 State and political subdivisions 113,468 1,787 (1,884 ) 113,371 Total $ 1,009,070 $ 1,889 $ (11,078 ) $ 999,881 |
Schedule of Amortized Cost and Fair Value of HTM Securities Portfolio | The amortized cost and fair value of the HTM securities portfolio at December 31, 2018 and 2017 and the corresponding amounts of gross unrecognized gains and losses were as follows: Amortized Cost Gross Unrecognized Gains Gross Unrecognized Losses Fair Value December 31, 2018 Mortgage backed securities: residential $ 75,944 $ 34 $ (3,072 ) $ 72,906 State and political subdivisions 45,673 466 (90 ) 46,049 Total $ 121,617 $ 500 $ (3,162 ) $ 118,955 December 31, 2017 Mortgage backed securities: residential 93,366 207 (1,796 ) 91,777 State and political subdivisions 121,490 4,379 (38 ) 125,831 Total $ 214,856 $ 4,586 $ (1,834 ) $ 217,608 |
Summary of Proceeds from Sales, Calls, and Prepayments of Available for Sale Securities and Associated Gains and Losses | The proceeds from sales, calls, and prepayments of available for sale securities and the associated gains and losses were as follows: 2018 2017 2016 Proceeds from sales $ 176,016 $ 240,175 $ 93,873 Proceeds from calls and prepayments — — 11,805 Gross gains 54 1,553 2,557 Gross losses (4,214 ) (657 ) (385 ) |
Schedule of Amortized Cost and Fair Value of Investment Securities Portfolio by Contractual Maturity | The amortized cost and fair value of the investment securities portfolio are shown by contractual maturity. Securities not due at a single maturity date, primarily mortgage-backed securities, and asset-backed securities are shown separately. December 31, 2018 Amortized Cost Fair Value Available for sale Three months or less $ 44,941 $ 44,902 Over three months through one year 228,617 228,555 Over one year through five years 1,729 1,713 Over five years through ten years 17,126 17,079 Over ten years 136,513 132,876 Asset-backed securities 25,744 24,844 Mortgage-backed securities: residential 596,766 580,699 Total $ 1,051,436 $ 1,030,668 Held to maturity Three months or less $ 500 $ 501 Over three months through one year — — Over one year through five years 502 519 Over five years through ten years 1,051 1,060 Over ten years 43,620 43,969 Mortgage-backed securities: residential 75,944 72,906 Total $ 121,617 $ 118,955 |
Schedule of Unrealized Losses and Fair Value by Major Security Type | The following table summarizes the securities with unrealized and unrecognized losses at December 31, 2018 and 2017, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2018 Available for sale U.S. Treasury securities $ 163,722 $ (60 ) $ — $ — $ 163,722 $ (60 ) U.S. government sponsored entities and agencies 1,355 (12 ) 19,937 (100 ) 21,292 (112 ) Mortgage-backed securities: residential 83,203 (755 ) 490,752 (15,339 ) 573,955 (16,094 ) Asset-backed securities 24,845 (900 ) — — 24,845 (900 ) Corporate Notes 9,839 (77 ) — — 9,839 (77 ) State and political subdivisions 10,446 (106 ) 69,238 (4,390 ) 79,684 (4,496 ) Total available for sale $ 293,410 $ (1,910 ) $ 579,927 $ (19,829 ) $ 873,337 $ (21,739 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses Held to maturity Mortgage-backed securities: residential $ 2,239 $ (40 ) $ 68,067 $ (3,032 ) $ 70,306 $ (3,072 ) State and political subdivisions 8,362 (39 ) 3,675 (51 ) 12,037 (90 ) Total held to maturity $ 10,601 $ (79 ) $ 71,742 $ (3,083 ) $ 82,343 $ (3,162 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2017 Available for sale U.S. Treasury securities $ 228,909 $ (210 ) $ — $ — $ 228,909 $ (210 ) U.S. government sponsored entities and agencies 19,961 (164 ) — — 19,961 (164 ) Mortgage-backed securities: residential $ 301,158 $ (2,447 ) $ 311,366 $ (6,314 ) $ 612,524 $ (8,761 ) Mortgage-backed securities: commercial 5,074 (59 ) — — 5,074 (59 ) State and political subdivisions 1,298 (2 ) 62,725 (1,882 ) 64,023 (1,884 ) Total available for sale $ 556,400 $ (2,882 ) $ 374,091 $ (8,196 ) $ 930,491 $ (11,078 ) Less Than 12 Months 12 Months or Longer Total Fair Value Unrecognized Losses Fair Value Unrecognized Losses Fair Value Unrecognized Losses Held to maturity Mortgage-backed securities: residential $ 11,191 $ (69 ) $ 72,582 $ (1,727 ) $ 83,773 $ (1,796 ) State and political subdivisions 262 (2 ) 1,148 (36 ) 1,410 (38 ) Total held to maturity $ 11,453 $ (71 ) $ 73,730 $ (1,763 ) $ 85,183 $ (1,834 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Summary of Loans | Loans at December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 Loans that are not PCI loans Construction and land development $ 584,440 $ 494,818 Commercial real estate: Nonfarm, nonresidential 754,243 628,554 Other 48,017 49,684 Residential real estate: Closed-end 1-4 family 492,989 407,695 Other 189,817 169,640 Commercial and industrial 590,854 502,006 Consumer and other 5,568 3,781 Loans before net deferred loan fees 2,665,928 2,256,178 Deferred loan fees, net (2,544 ) (1,963 ) Total loans that are not PCI loans 2,663,384 2,254,215 Total PCI loans 2,015 2,393 Allowance for loan losses (23,451 ) (21,247 ) Total loans, net of allowance for loan losses $ 2,641,948 $ 2,235,361 |
Activity in Allowance for Loan Losses by Portfolio Segment | The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2018, 2017 and 2016: Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2018 Allowance for loan losses: Beginning balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Provision for loan losses 978 744 872 (383 ) 43 2,254 Loans charged-off (38 ) — (7 ) (49 ) (27 ) (121 ) Recoveries 1 — 44 11 15 71 Total ending allowance balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2017 Allowance for loan losses: Beginning balance $ 3,776 $ 4,266 $ 2,398 $ 6,068 $ 45 $ 16,553 Provision for loan losses (642 ) 1,715 1,387 1,823 30 4,313 Loans charged-off — — (1 ) (310 ) (49 ) (360 ) Recoveries 668 — 50 6 17 741 Total ending allowance balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2016 Allowance for loan losses: Beginning balance $ 3,186 $ 3,146 $ 1,861 $ 3,358 $ 36 $ 11,587 Provision for loan losses 601 1,120 511 2,964 44 5,240 Loans charged-off (11 ) — (40 ) (255 ) (42 ) (348 ) Recoveries — — 66 1 7 74 Total ending allowance balance $ 3,776 $ 4,266 $ 2,398 $ 6,068 $ 45 $ 16,553 |
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2018 and 2017. Purchased and PCI loans are also included in the table. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality. Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2018 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 17 $ — $ 17 Collectively evaluated for impairment 4,743 6,725 4,743 7,149 74 23,434 Total ending allowance balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Loans: Individually evaluated for impairment $ 2,298 $ — $ 3,189 $ 167 $ — $ 5,654 Collectively evaluated for impairment 582,142 802,260 679,617 590,687 5,568 2,660,274 Purchased credit-impaired loans — — 76 1,939 — 2,015 Total ending loans balance $ 584,440 $ 802,260 $ 682,882 $ 592,793 $ 5,568 $ 2,667,943 Construction and Land Development Commercial Real Estate Residential Real Estate Commercial and Industrial Consumer and Other Total December 31, 2017 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 879 $ — $ 879 Collectively evaluated for impairment 3,802 5,981 3,834 6,708 43 20,368 Total ending allowance balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Loans: Individually evaluated for impairment $ 217 $ - $ 834 $ 3,090 $ — $ 4,141 Collectively evaluated for impairment 494,601 678,238 576,501 498,916 3,781 2,252,037 Purchased credit-impaired loans — 380 105 1,908 — 2,393 Total ending loans balance $ 494,818 $ 678,618 $ 577,440 $ 503,914 $ 3,781 $ 2,258,571 |
Summary of Impaired Loans by Class of Loans | The following table presents information related to impaired loans by class of loans as of December 31, 2018 and 2017: Unpaid Principal Balance Recorded Investment Allowance for Loan Losses Allocated December 31, 2018 With no allowance recorded: Construction and land development $ 2,298 $ 2,298 $ — Residential real estate: Closed-end 1-4 family 1,272 1,280 — Other 1,917 1,917 — Subtotal 5,487 5,495 — With an allowance recorded: Commercial and industrial 167 167 17 Subtotal 167 167 17 Total $ 5,654 $ 5,662 $ 17 December 31, 2017 With no allowance recorded: Construction and land development $ 217 $ 217 $ — Residential real estate: Closed-end 1-4 family 14 14 — Other 820 820 — Commercial and industrial 108 108 — Subtotal 1,159 1,159 — With an allowance recorded: Commercial and industrial 2,982 2,982 879 Subtotal 2,982 2,982 879 Total $ 4,141 $ 4,141 $ 879 The following table presents the average recorded investment of impaired loans by class of loans for the years ended December 31, 2018, 2017 and 2016: Average Recorded Investment 2018 2017 2016 With no allowance recorded: Construction and land development $ 378 $ 921 $ 474 Commercial real estate: Nonfarm, nonresidential — 1,796 1,892 Residential real estate: Closed-end 1-4 family 715 649 747 Other 553 331 696 Commercial and industrial 655 899 207 Consumer and other — 1 8 Subtotal 2,301 4,597 4,024 With an allowance recorded: Residential real estate: Closed-end 1-4 family — 22 55 Commercial and industrial 993 2,480 490 Subtotal 993 2,502 545 Total $ 3,294 $ 7,099 $ 4,569 |
Schedule of Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days on Accrual by Class of Loans | The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2018 and 2017: Nonaccrual Loans Past Due Over 90 Days December 31, 2018 Construction loans $ 2,298 $ — Residential real estate: Closed-end 1-4 family 1,273 — Other 1,917 — Commercial and industrial — 208 Total $ 5,488 $ 208 December 31, 2017 Residential real estate: Closed-end 1-4 family $ 257 $ 14 Other 114 — Commercial and industrial 2,466 191 Total $ 2,837 $ 205 |
Schedule of Aging of Recorded Investment in Past Due Loans by Class of Loans | The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 and 2017 by class of loans: 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total Past Due Loans Not Past Due PCI Loans Total December 31, 2018 Construction and land development $ 294 $ 1,986 $ 548 $ 2,828 $ 581,612 $ — $ 584,440 Commercial real estate: Nonfarm, nonresidential 515 — — 515 753,728 — 754,243 Other — — — — 48,017 — 48,017 Residential real estate: Closed-end 1-4 family 2,390 404 228 3,022 489,967 76 493,065 Other 142 — 1,810 1,952 187,865 — 189,817 Commercial and industrial 241 252 208 701 590,153 1,939 592,793 Consumer and other — — — — 5,568 — 5,568 $ 3,582 $ 2,642 $ 2,794 $ 9,018 $ 2,656,910 $ 2,015 $ 2,667,943 December 31, 2017 Construction and land development $ 1,918 $ 136 $ — $ 2,054 $ 492,764 $ — $ 494,818 Commercial real estate: Nonfarm, nonresidential — — — — 628,554 380 628,934 Other — — — — 49,684 — 49,684 Residential real estate: Closed-end 1-4 family 257 - 14 271 407,424 105 407,800 Other 146 719 114 979 168,661 — 169,640 Commercial and industrial 532 27 2,657 3,216 498,790 1,908 503,914 Consumer and other — — — — 3,781 — 3,781 $ 2,853 $ 882 $ 2,785 $ 6,520 $ 2,249,658 $ 2,393 $ 2,258,571 |
Summary of Risk Category of Loans by Class of Loans | Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of December 31, 2018 and 2017: Pass Special Mention Substandard Total December 31, 2018 Construction and land development $ 580,468 $ 1,416 $ 2,556 $ 584,440 Commercial real estate: Nonfarm, nonresidential 739,469 14,774 — 754,243 Other 48,017 — — 48,017 Residential real estate: Closed-end 1-4 family 489,781 948 2,336 493,065 Other 186,485 404 2,928 189,817 Commercial and industrial 553,589 8,313 30,891 592,793 Consumer and other 5,567 1 — 5,568 $ 2,603,376 $ 25,856 $ 38,711 $ 2,667,943 December 31, 2017 Construction and land development $ 494,601 $ — $ 217 $ 494,818 Commercial real estate: Nonfarm, nonresidential 609,458 12,602 6,874 628,934 Other 49,303 — 381 49,684 Residential real estate: Closed-end 1-4 family 404,832 615 2,353 407,800 Other 167,886 — 1,754 169,640 Commercial and industrial 485,363 10,350 8,201 503,914 Consumer and other 3,777 4 — 3,781 $ 2,215,220 $ 23,571 $ 19,780 $ 2,258,571 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transfers And Servicing [Abstract] | |
Schedule of Loans Serviced Not Reported as Assets | Loans serviced for others are not reported as assets. The principal balances of these loans at December 31, 2018 and 2017 are as follows: 2018 2017 Loan portfolios serviced for: Federal Home Loan Mortgage Corporation $ 492,761 $ 507,233 Other 3,689 4,626 |
Related Loan Servicing Rights Activity | The related loan servicing rights activity for the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Servicing rights: Beginning of year $ 3,620 $ 3,621 $ 3,455 Additions 650 933 1,367 Amortized to expense (867 ) (934 ) (1,201 ) End of year $ 3,403 $ 3,620 $ 3,621 |
Components of Net Loan Servicing Fees | The components of net loan servicing fees for the years ended December 31, 2018, 2017 and 2016 were as follows: 2018 2017 2016 Loan servicing fees, net: Loan servicing fees $ 1,308 $ 1,270 $ 1,223 Amortization of loan servicing fees (867 ) (934 ) (1,201 ) Total $ 441 $ 336 $ 22 |
Premises and Equipment and Le_2
Premises and Equipment and Leases (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Premises Equipment And Leases [Abstract] | |
Summary of Premises and Equipment | Year-end premises and equipment were as follows: 2018 2017 Construction in progress $ 2,097 $ 3,215 Land and land improvements 33 33 Buildings 150 150 Leasehold improvements 9,487 7,582 Furniture, fixtures, and equipment 7,133 5,437 Computer equipment and software 3,700 3,380 Automobiles 29 29 22,629 19,826 Accumulated depreciation (10,258 ) (8,545 ) $ 12,371 $ 11,281 |
Summary of Future Minimum Operating Lease Payments Due Under Non-cancelable Leases | At December 31, 2018, the approximate future minimum operating lease payments due under non-cancelable leases were as follows: 2019 $ 4,841 2020 4,849 2021 4,871 2022 4,856 2023 4,885 Thereafter 36,178 Total $ 60,480 |
Summary of Future Minimum Lease Payments Due Under Capital Lease | The approximate future minimum lease payments due are as follows: 2019 $ 272 2020 276 2021 280 2022 284 2023 288 Thereafter 3,133 Total $ 4,533 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | The following table represents acquired intangible assets at December 31, 2018 and 2017: 2018 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Acquired intangible assets: Core deposit intangibles $ 3,617 $ (2,665 ) $ 3,060 $ (2,053 ) |
Schedule of Estimated Amortization Expense | The following table presents estimated amortization expense for each of the next five years: 2019 504 2020 304 2021 121 2022 23 2023 - |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking And Thrift [Abstract] | |
Schedule of Composition of Deposits | Composition of deposits is as follows: December 31, 2018 December 31, 2017 Retail $ 1,450,370 $ 1,326,909 Brokered 797,795 779,886 Local Government 782,890 1,002,584 Reciprocal and other 400,752 57,849 Total $ 3,431,807 $ 3,167,228 |
Schedule of Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years were as follows: 2019 1,100,319 2020 107,129 2021 71,202 2022 37,044 2023 10,399 'Total 1,326,093 |
Federal Funds Purchased and R_2
Federal Funds Purchased and Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Brokers And Dealers [Abstract] | |
Summary of Information Concerning Securities Sold under Agreements to Repurchase | Information concerning securities sold under agreements to repurchase is summarized as follows: 2018 2017 2016 Average daily balance during the year $ 11,302 $ 32,428 $ 39,647 Average interest rate during the year 1.29 % 0.85 % 0.58 % Maximum month-end balance during the year $ 36,071 $ 33,989 $ 61,669 Weighted average interest rate at year end 0.00 % 1.14 % 0.56 % |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Maturities of Advances and Interest Rates | At December 31, 2018 and 2017, the Company had received advances from the FHLB totaling $368,500 and $272,000, respectively. At December 31, 2018, the scheduled maturities of these advances and interest rates were as follows: Scheduled Maturities Weighted Average Rates 2019 $ 313,500 2.24 % 2020 55,000 1.72 % Thereafter — — Total $ 368,500 2.16 % |
Subordinated Notes (Tables)
Subordinated Notes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Terms of Each Subordinated Note offering | The following table summarizes the terms of each subordinated note offering: March 2016 Subordinated Notes June 2016 Subordinated Notes Principal amount issued $40,000 $20,000 Maturity date † March 30, 2026 July 1, 2026 Initial fixed interest rate 6.875% 7.00% Initial interest rate period 5 years 5 years First interest rate change date March 30, 2021 July 1, 2021 Interest payment frequency through year five* Semiannually Semiannually Interest payment frequency after five years* Quarterly Quarterly Interest repricing index and margin 3-month LIBOR plus 5.636% 3-month LIBOR plus 6.04% Repricing frequency after five years Quarterly Quarterly |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Reconciliation of the Income Tax Expense Computed by Statutory Federal Income Tax Rate of 35 Percent and 34 Percent to Income Before Income Tax Expense | A reconciliation of the income tax expense for the years ended December 31, 2018, 2017 and 2016 to the “expected” tax expense, which was computed by applying the statutory federal income tax rate of 21 percent for 2018 and 35 percent for 2017 and 2016 to income before income tax expense, is as follows: 2018 2017 2016 Computed “expected” tax expense $ 8,491 $ 16,321 $ 13,931 Increase (reduction) in tax expense resulting from: State tax expense, net of federal tax effect (612 ) 333 805 Effect of statutory rate changes enacted (1) - 5,323 — Non-deductible merger costs 67 19 114 Incentive stock options 475 506 254 Bank owned life insurance (320 ) (286 ) (227 ) Tax-exempt interest income, net of expense (1,296 ) (2,585 ) (1,801 ) Insurance premiums (293 ) (347 ) (364 ) Excess tax benefit from exercise of stock options and vesting of restricted stock (647 ) (805 ) (1,013 ) Other 47 52 47 Income tax expense $ 5,912 $ 18,531 $ 11,746 (1) On December 22, 2017, the United States enacted tax reform legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), resulting in significant modifications to existing law. As a result of the changes under the Tax Act, the Company recorded incremental income tax expense of $5,323 during the year ended December 31, 2017, which consisted primarily of the remeasurement of deferred tax assets and liabilities at the new federal statutory rate of 21%. Prior to the enactment of the Tax Act, deferred tax assets and liabilities were measured at the previous federal statutory rate of 35%. |
Component of Income Tax Expense Benefit | Income tax expense (benefit) was as follows: 2018 2017 2016 Current expense Federal $ 6,399 $ 13,653 $ 11,416 State (684 ) 1,093 1,294 Deferred expense Federal 288 (957 ) (908 ) State (91 ) (581 ) (56 ) Deferred tax revaluation expense — 5,323 — Income tax expense $ 5,912 $ 18,531 $ 11,746 |
Sources of Deferred Income Tax Assets and Liabilities | The sources of deferred income tax assets (liabilities) at December 31, 2018 and 2017 and the tax effect is as follows: 2018 2017 Deferred tax assets: Organizational and start-up costs $ 51 $ 64 Allowance for loan losses 5,881 5,367 Unrealized loss on securities 5,427 2,403 Net operating loss carry forward 2,035 2,317 Purchase accounting fair value adjustments 844 1,006 Accrued other expenses 701 567 Nonaccrual loan interest 105 355 Loan fees 656 511 Other 1,421 552 Total deferred tax asset 17,121 13,142 Deferred tax liabilities: Mortgage servicing rights $ (879 ) $ (933 ) Premises and equipment (1,204 ) (753 ) Prepaid expenses (702 ) (469 ) Purchase accounting fair value adjustments (250 ) (264 ) Other (897 ) (716 ) Total deferred tax liability (3,932 ) (3,135 ) Net deferred tax asset $ 13,189 $ 10,007 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Loans to Principal Officers, Directors, and Their Affiliates | Loans to principal officers, directors, and their affiliates during 2018 were as follows: Beginning balance $ 29,187 New loans/advances 4,507 Effect of changes in composition of related parties 4,576 Repayments (15,569 ) Ending balance $ 22,701 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Summary of Stock Warrant Activity | A summary of the stock warrant activity for the years ended December 31, 2018 and 2017 follows: 2018 2017 Stock warrants exercised: Intrinsic value of warrants exercised $ - $ 329 Cash received from warrants exercised - 150 |
Fair Value Assumptions of Stock Options | The fair value of options granted was determined using the following weighted-average assumptions as of grant date. 2018 2017 2016 Risk-free interest rate 3.10 % 2.05 % 1.59 % Expected term 7.5 years 6.9 years 7.5 years Expected stock price volatility 30.79 % 33.21 % 30.45 % Dividend yield 0.00 % 0.03 % 0.22 % |
Summary of Company's Stock Option Activities | A summary of the activity with respect to stock options for the years ended December 31, 2018, 2017 and 2016 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at December 31, 2015 1,312,791 $ 13.04 Granted 299,587 28.85 Exercised (214,947 ) 11.31 Forfeited, expired, or cancelled (2,415 ) 19.43 Outstanding at December 31, 2016 1,395,016 $ 16.70 Granted 295,820 37.68 Exercised (180,555 ) 11.87 Forfeited, expired, or cancelled (3,113 ) 25.37 Outstanding at December 31, 2017 1,507,168 $ 21.37 Granted 572,637 30.48 Exercised (244,309 ) 16.83 Forfeited, expired, or cancelled (27,574 ) 28.66 Outstanding at December 31, 2018 1,807,922 $ 24.68 6.41 $ 9,581 Vested or expected to vest 914,368 $ 24.68 6.41 $ 9,102 Exercisable at December 31, 2018 798,994 $ 18.59 5.23 $ 8,750 |
Summary of Stock Options Exercised | 2018 2017 2016 Stock options exercised: Intrinsic value of options exercised $ 4,873 $ 4,878 $ 4,725 Cash received from options exercised 3,047 1,615 1,571 Tax benefit realized from option exercises 565 484 843 |
Summary of Activity for Nonvested Restricted Share Awards | A summary of activity for non-vested restricted share awards for the year ended December 31, 2018, 2017 and 2016 is as follows: Non-vested Shares Shares Weighted- Average Grant-Date Fair Value Non-vested at December 31, 2015 105,864 $ 15.89 Granted 36,496 28.47 Vested (33,407 ) 17.06 Forfeited (2,495 ) 16.97 Non-vested at December 31, 2016 106,458 $ 19.81 Granted 27,282 37.35 Vested (38,995 ) 18.40 Forfeited (564 ) 28.66 Non-vested at December 31, 2017 94,181 $ 25.42 Granted 126,288 33.04 Vested (40,134 ) 26.69 Forfeited (3,819 ) 31.80 Non-vested at December 31, 2018 176,516 $ 31.07 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Capital Requirements [Abstract] | |
Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are presented below as of December 31, 2018 and 2017 for the Company and Bank. Actual Required For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Regulations Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Company-Level Common equity Tier 1 capital to RWA $ 367,096 12.18 % $ 135,598 4.50 % N/A N/A Total Capital to RWA $ 449,325 14.91 % $ 241,064 8.00 % N/A N/A Tier 1 (Core) Capital to RWA $ 367,096 12.18 % $ 180,798 6.00 % N/A N/A Tier 1 (Core) Capital to average assets $ 367,096 8.76 % $ 167,553 4.00 % N/A N/A Bank-Level Common equity Tier 1 capital to RWA $ 421,335 13.98 % $ 135,613 4.50 % $ 195,886 6.50 % Total Capital to RWA $ 444,871 14.76 % $ 241,090 8.00 % $ 301,363 10.00 % Tier 1 (Core) Capital to RWA $ 421,335 13.98 % $ 180,818 6.00 % $ 241,090 8.00 % Tier 1 (Core) Capital to average assets $ 421,335 10.07 % $ 167,420 4.00 % $ 209,275 5.00 % December 31, 2017 Company-Level Common equity Tier 1 capital to RWA $ 299,229 11.37 % $ 118,479 4.50 % N/A N/A Total Capital to RWA $ 379,083 14.40 % $ 210,629 8.00 % N/A N/A Tier 1 (Core) Capital to RWA $ 299,229 11.37 % $ 157,972 6.00 % N/A N/A Tier 1 (Core) Capital to average assets $ 299,229 8.25 % $ 145,100 4.00 % N/A N/A Bank-Level Common equity Tier 1 capital to RWA $ 353,512 13.43 % $ 118,489 4.50 % $ 171,151 6.50 % Total Capital to RWA $ 374,851 14.24 % $ 210,647 8.00 % $ 263,309 10.00 % Tier 1 (Core) Capital to RWA $ 353,512 13.43 % $ 157,985 6.00 % $ 210,647 8.00 % Tier 1 (Core) Capital to average assets $ 353,512 9.75 % $ 145,003 4.00 % $ 181,253 5.00 % Note: Minimum ratios presented exclude the capital conservation buffer. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below: Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury $ 253,014 $ — $ — U.S. government sponsored entities and agencies — 21,888 — Mortgage-backed securities: residential — 580,699 — Asset-backed securities — 24,844 — Corporate Notes — 12,424 — State and political subdivisions — 137,799 — Total securities available for sale $ 253,014 $ 777,654 $ — Loans held for sale $ — $ 11,103 $ — Mortgage banking derivatives $ — $ 206 $ — Financial Liabilities Mortgage banking derivatives $ — $ 129 $ — Fair Value Measurements at December 31, 2017 Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) U.S. Treasury $ 228,909 $ — $ — U.S. government sponsored entities and agencies — 19,961 — Mortgage-backed securities: residential — 632,566 — Mortgage-backed securities: commercial — 5,074 — State and political subdivisions — 113,371 — Total securities available for sale $ 228,909 $ 770,972 $ — Loans held for sale $ — $ 12,024 $ — Mortgage banking derivatives $ — $ 175 $ — Financial Liabilities Mortgage banking derivatives $ — $ 35 $ — |
Carrying Amount and Estimated Fair Value of Financial Instruments | The carrying amounts and estimated fair values of financial instruments, at December 31, 2018 and 2017 are as in the tables below. Due to the adoption of ASU 2016-01, the fair value of loans presented for 2018 uses the exit price and may not be comparable to the prior period. Fair Value Measurements at Carrying December 31, 2018 Using: Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 280,212 $ 280,212 $ — $ — $ 280,212 Securities available for sale 1,030,668 253,014 777,654 — 1,030,668 Certificates of deposit held at other financial institutions 3,594 — 3,594 — 3,594 Securities held to maturity 121,617 — 118,955 — 118,955 Loans held for sale 11,103 — 11,103 — 11,103 Net loans 2,641,948 — — 2,622,386 2,622,386 Restricted equity securities 21,831 n/a n/a n/a n/a Servicing rights, net 3,403 — — 4,836 4,836 Accrued interest receivable 13,337 71 5,539 7,727 13,337 Financial liabilities Deposits $ 3,431,807 $ 2,105,951 $ 1,319,326 $ — $ 3,425,277 Federal funds purchased and repurchase agreements - — — — — Federal Home Loan Bank advances 368,500 — 366,786 — 366,786 Subordinated notes 58,693 — — 59,852 59,852 Accrued interest payable 4,700 146 3,866 688 4,700 Fair Value Measurements at Carrying December 31, 2017 Using: Amount Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 251,543 $ 251,543 $ — $ — $ 251,543 Securities available for sale 999,881 228,909 770,972 — 999,881 Certificates of deposit held at other financial institutions 2,855 — 2,855 — 2,855 Securities held to maturity 214,856 — 217,608 — 217,608 Loans held for sale 12,024 — 12,024 — 12,024 Net loans 2,235,361 — — 2,230,607 2,230,607 Restricted equity securities 18,492 n/a n/a n/a n/a Servicing rights, net 3,620 — — 5,089 5,089 Accrued interest receivable 11,947 73 5,724 6,150 11,947 Financial liabilities Deposits $ 3,167,228 $ 1,911,928 $ 1,224,041 $ — $ 3,135,969 Federal funds purchased and repurchase agreements 31,004 — 31,004 — 31,004 Federal Home Loan Bank advances 272,000 — 270,311 — 270,311 Subordinated notes 58,515 — — 59,951 59,951 Accrued interest payable 2,769 51 2,030 688 2,769 |
Mortgage Banking Derivatives (T
Mortgage Banking Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Summary of Net Gains (Losses) Relating to Free-Standing Derivative Instruments Used for Risk Management | The net gains (losses) relating to free-standing derivative instruments used for risk management is summarized below: 2018 2017 2016 Forward contracts related to mortgage loans held for sale and interest rate contracts $ 94 $ 32 $ (37 ) Interest rate contracts for customers 31 (54 ) (182 ) |
Summary of Amount and Fair Value of Mortgage Banking Derivatives Included in Consolidated Balance Sheet | The following table reflects the amount and fair value of mortgage banking derivatives included in the consolidated balance sheet as of December 31, 2018 and 2017: 2018 2017 Notional Amount Fair Value Notional Amount Fair Value Included in other assets (liabilities): Interest rate contracts for customers $ 28,731 $ 206 $ 21,656 $ 175 Forward contracts related to mortgage loans held for sale $ 31,519 $ (129 ) $ 35,566 $ (35 ) |
Loan Commitments and Other Re_2
Loan Commitments and Other Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loan Commitments And Other Related Activities [Abstract] | |
Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk | The contractual amounts of financial instruments with off-balance-sheet risk at year end were as follows: 2018 2017 Fixed Rate Variable Rate Fixed Rate Variable Rate Commitments to make loans $ 28,731 $ — $ 21,656 $ — Unused lines of credit 128,313 526,271 124,997 480,184 Standby letters of credit 8,293 31,731 9,223 36,401 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2018 2017 ASSETS Cash and cash equivalents $ 3,364 $ 5,958 Investment in banking subsidiary 426,979 358,833 Investment in other subsidiaries 1,919 2,393 Other assets 1,617 235 Total assets $ 433,879 $ 367,419 LIABILITIES AND EQUITY Subordinated notes $ 58,693 $ 58,515 Accrued expenses and other liabilities 2,446 4,354 Shareholders’ equity 372,740 304,550 Total liabilities and shareholders’ equity $ 433,879 $ 367,419 |
Condensed Statements of Income and Comprehensive Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years ended December 31, 2018 2017 2016 Dividends from subsidiaries $ 5,925 $ 4,000 $ 2,050 Other income 203 171 305 Interest expense 4,328 4,321 2,902 Other expense 5,163 2,890 2,842 Loss before income tax and undistributed subsidiaries income (3,363 ) (3,040 ) (3,389 ) Income tax benefit (2,229 ) (2,671 ) (2,320 ) Equity in undistributed subsidiaries income 35,655 28,468 29,126 Net income $ 34,521 $ 28,099 $ 28,057 Comprehensive income $ 25,966 $ 29,997 $ 20,895 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Years ended December 31, 2018 2017 2016 Cash flows from operating activities Net income $ 34,521 $ 28,099 $ 28,057 Adjustments: Equity in undistributed subsidiaries income (35,655 ) (28,468 ) (29,126 ) Amortization of debt issuance costs 178 178 124 Stock-based compensation 1,008 219 105 Change in other assets (1,367 ) 728 (34 ) Change in other liabilities (1,908 ) 686 3,058 Net cash from operating activities (3,223 ) 1,442 2,184 Cash flows from investing activities Investments in subsidiaries (26,512 ) (1,359 ) (116,850 ) Net cash acquired from acquisition (See Note 2) 24,660 — — Net cash from investing activities (1,852 ) (1,359 ) (116,850 ) Cash flows from financing activities Proceeds from other borrowings — — 10,000 Repayment of other borrowings — — (10,000 ) Proceeds from issuance of subordinated notes, net of issuance costs — — 58,213 Proceeds from exercise of common stock warrants — 150 101 Proceeds from exercise of common stock options 3,047 1,615 1,571 Proceeds from issuance of common stock, net of offering costs (242 ) — 67,557 Divestment of common stock issued to 401(k) plan (308 ) (256 ) (300 ) Redemption of Series A preferred stock — — (10,000 ) Dividends paid on preferred stock (16 ) — (23 ) Net cash from financing activities 2,481 1,509 117,119 Net change in cash and cash equivalents (2,594 ) 1,592 2,453 Beginning cash and cash equivalents 5,958 4,366 1,913 Ending cash and cash equivalents $ 3,364 $ 5,958 $ 4,366 Non-cash supplemental information: Transfers from subsidiary stock based compensation expense to parent company only additional paid-in capital $ 5,561 $ 2,583 $ 1,536 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share | The factors used in the earnings per share computation follow: Years Ended December 31, 2018 2017 2016 Basic Net income available to common shareholders $ 34,505 $ 28,083 $ 28,034 Less: earnings allocated to participating securities (372 ) (219 ) (284 ) Net income allocated to common shareholders $ 34,133 $ 27,864 $ 27,750 Weighted average common shares outstanding including participating securities 14,169,294 13,145,005 10,933,095 Less: Participating securities (152,638 ) (102,650 ) (110,628 ) Average shares 14,016,656 13,042,355 10,822,467 Basic earnings per common share $ 2.44 $ 2.14 $ 2.56 Diluted Net income allocated to common shareholders $ 34,133 $ 27,864 $ 27,750 Weighted average common shares outstanding for basic earnings per common share 14,016,656 13,042,355 10,822,467 Add: Dilutive effects of assumed exercises of stock options 540,302 633,738 655,485 Add: Dilutive effects of assumed exercises of stock warrants — 1,578 12,667 Average shares and dilutive potential common shares 14,556,958 13,677,671 11,490,619 Dilutive earnings per common share $ 2.34 $ 2.04 $ 2.42 |
Capital Offering (Tables)
Capital Offering (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Offering [Abstract] | |
Schedule of Net Proceeds | The Company completed a secondary public offering of its common stock on November 21, 2016. The Company issued 2,242,500 shares of common stock at a price of $32.00 per share. Net proceeds were as follows: Gross proceeds $ 71,760 Less: Stock offering costs (4,203 ) Net proceeds from issuance of common stock $ 67,557 |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Selected Consolidated Quarterly Financial Data | The following table provides a summary of selected consolidated quarterly financial data for the years ended December 31, 2018 and 2017: 2018 2017 Fourth Quarter Third Quarter Second Quarter First Quarter Fourth Quarter Third Quarter† Second Quarter† First Quarter† Income Statement Data ($): Interest income $ 46,045 $ 43,717 $ 42,136 $ 38,047 $ 35,121 $ 33,780 $ 33,011 $ 30,541 Interest expense 19,125 17,155 15,231 12,931 10,513 9,454 8,542 6,898 Net interest income 26,920 26,562 26,905 25,116 24,608 24,326 24,469 23,643 Provision for loan losses 975 136 570 573 1,295 590 573 1,855 Noninterest income (383 ) 3,442 4,147 3,456 3,264 3,569 3,880 4,008 Noninterest expense 21,689 18,251 18,050 15,488 15,987 15,278 15,283 14,276 Net income before taxes 3,873 11,617 12,432 12,511 10,590 12,027 12,493 11,520 Income tax expense 122 1,068 2,263 2,459 8,188 3,138 3,619 3,586 Net income 3,751 10,549 10,169 10,052 2,402 8,889 8,874 7,934 Net income available to common shareholders 3,743 10,549 10,161 10,052 2,394 8,889 8,866 7,934 Earnings per share, basic $ 0.26 $ 0.73 $ 0.71 $ 0.76 $ 0.18 $ 0.67 $ 0.68 $ 0.61 Earnings per share, diluted $ 0.25 $ 0.70 $ 0.68 $ 0.73 $ 0.17 $ 0.65 $ 0.64 $ 0.58 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)BondDerivative | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | Dec. 31, 2016USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
Maturity of cash, deposits with other financial institutions | 90 days | ||||
Other-than-temporary impairment recognized | $ 0 | $ 0 | $ 0 | ||
Loan past due | 90 days | ||||
Nonaccrual loans and loans past due | 90 days | ||||
Non-accrual status | 90 days | ||||
Tax Cuts and Jobs Act additional income tax expense | 5,323,000 | ||||
Tax benefit | 50.00% | ||||
Subsequent Event [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Right of use asset | $ 40,000,000 | ||||
Lease liability | $ 45,000,000 | ||||
ASU 2018-02 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Tax Cuts and Jobs Act additional income tax expense | $ 5,323,000 | ||||
ASU 2017-12 [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Number of bonds transferred from HTM intention to AFS intention under one-time exemption | Bond | 40 | ||||
Number of derivatives | Derivative | 0 | ||||
ASU 2017-08 [Member] | Scenario, Forecast [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Additional amortization expense | $ 900,000 | ||||
Minimum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated Useful Lives of Premises and Equipment | 3 years | ||||
Estimated useful lives of intangible assets | 7 years | ||||
Maximum [Member] | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated Useful Lives of Premises and Equipment | 15 years | ||||
Estimated useful lives of intangible assets | 10 years |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 18,176 | $ 9,124 | |
Civic Bank And Trust [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, merger date | Apr. 1, 2018 | ||
Merger, common stock issued | 970,390 | ||
Acquisition-related costs | $ 565 | ||
Goodwill | $ 9,052 | ||
Loans | 96,385 | ||
Customer receivables with a fair value and gross contractual amounts receivable | 96,903 | ||
Civic Bank And Trust [Member] | Core Deposit Intangibles [Member] | |||
Business Acquisition [Line Items] | |||
Fair value of intangible assets | $ 558 |
Business Combinations - Schedul
Business Combinations - Schedule of Consideration Paid for Business Combination and Acquisition of Assets and Liabilities (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Certificates of deposit at other financial institutions | $ 3,594 | $ 2,855 | |
Goodwill | $ 18,176 | $ 9,124 | |
Civic Bank And Trust [Member] | |||
Consideration: | |||
Common stock issued to Civic shareholders | $ 31,635 | ||
Fair value of stock options issued to Civic option holders | 1,539 | ||
Fair value of total consideration | 33,174 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Cash and cash equivalents | 24,660 | ||
Certificates of deposit at other financial institutions | 500 | ||
Securities available for sale | 31,734 | ||
Loans | 96,385 | ||
Equity securities | 876 | ||
Premises and equipment | 253 | ||
Foreclosed assets | 350 | ||
Other assets | 5,285 | ||
Total assets acquired | 160,601 | ||
Deposits | 123,162 | ||
Federal Home Loan Bank advances | 11,500 | ||
Other liabilities | 1,817 | ||
Total liabilities assumed | 136,479 | ||
Total net assets acquired | 24,122 | ||
Goodwill | 9,052 | ||
Civic Bank And Trust [Member] | Core Deposit Intangibles [Member] | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Core deposit intangibles | $ 558 |
Business Combinations - Sched_2
Business Combinations - Schedule of Pro forma Information of Business Acquired (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | ||
Net interest income – pro forma | $ 106,765 | $ 103,055 |
Net income – pro forma | $ 34,606 | $ 29,368 |
Earnings per share – pro forma: | ||
Basic | $ 2.28 | $ 2.09 |
Diluted | $ 2.20 | $ 1.99 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | $ 1,051,436 | $ 1,009,070 |
Gross Unrealized Gains | 971 | 1,889 |
Gross Unrealized Losses | (21,739) | (11,078) |
Fair Value | 1,030,668 | 999,881 |
U.S. Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | 253,015 | 229,119 |
Gross Unrealized Gains | 59 | |
Gross Unrealized Losses | (60) | (210) |
Fair Value | 253,014 | 228,909 |
U.S. Government Sponsored Entities and Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | 21,999 | 20,125 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (112) | (164) |
Fair Value | 21,888 | 19,961 |
Mortgage-Backed Securities: Residential [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | 596,766 | 641,225 |
Gross Unrealized Gains | 27 | 102 |
Gross Unrealized Losses | (16,094) | (8,761) |
Fair Value | 580,699 | 632,566 |
Asset-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | 25,744 | |
Gross Unrealized Losses | (900) | |
Fair Value | 24,844 | |
Corporate Notes [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | 12,480 | |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (77) | |
Fair Value | 12,424 | |
State and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | 141,432 | 113,468 |
Gross Unrealized Gains | 863 | 1,787 |
Gross Unrealized Losses | (4,496) | (1,884) |
Fair Value | $ 137,799 | 113,371 |
Mortgage-Backed Securities: Commercial [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost, Total | 5,133 | |
Gross Unrealized Losses | (59) | |
Fair Value | $ 5,074 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of HTM Securities Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 121,617 | $ 214,856 |
Gross Unrecognized Gains | 500 | 4,586 |
Gross Unrecognized Losses | (3,162) | (1,834) |
Fair Value | 118,955 | 217,608 |
Mortgage-Backed Securities: Residential [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 75,944 | 93,366 |
Gross Unrecognized Gains | 34 | 207 |
Gross Unrecognized Losses | (3,072) | (1,796) |
Fair Value | 72,906 | 91,777 |
State and Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 45,673 | 121,490 |
Gross Unrecognized Gains | 466 | 4,379 |
Gross Unrecognized Losses | (90) | (38) |
Fair Value | $ 46,049 | $ 125,831 |
Securities - Summary of Proceed
Securities - Summary of Proceeds from Sales, Calls, and Prepayments of Available for Sale Securities and Associated Gains and Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Available For Sale Securities [Abstract] | |||
Proceeds from sales | $ 176,016 | $ 240,175 | $ 93,873 |
Proceeds from calls and prepayments | 11,805 | ||
Gross gains | 54 | 1,553 | 2,557 |
Gross losses | $ (4,214) | $ (657) | $ (385) |
Securities - Additional Informa
Securities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018USD ($)SecurityBondDerivative | Dec. 31, 2018USD ($)SecurityBondDerivative | Dec. 31, 2017USD ($)Security | |
Marketable Securities [Line Items] | |||
Calls of HTM securities | $ | $ 0 | ||
Number of bonds transferred to AFS | Bond | 16 | ||
Proceeds from lower yielding, fixed rate securities sold | $ | 246,000,000 | ||
Carrying value of pledged securities | $ | $ 939,440,000 | $ 939,440,000 | $ 975,518,000 |
Number of available for sale securities in an unrealized loss position | Security | 200 | 200 | 163 |
Number of HTM securities in an unrecognized loss position | Security | 39 | 39 | 33 |
ASU 2017-12 [Member] | |||
Marketable Securities [Line Items] | |||
Number of bonds transferred from HTM intention to AFS intention under one-time exemption | Bond | 40 | 40 | |
Number of derivatives | Derivative | 0 | 0 | |
Other than US Government Sponsored Entities and Agencies [Member] | |||
Marketable Securities [Line Items] | |||
Amount of holdings of securities of any one issuer | Security | 0 | 0 | 0 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Fair Value of Investment Securities Portfolio by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Available for sale | ||
Amortized Cost, Three months or less | $ 44,941 | |
Amortized Cost, Over three months through one year | 228,617 | |
Amortized Cost, Over one year through five years | 1,729 | |
Amortized Cost, Over five years through ten years | 17,126 | |
Amortized Cost, Over ten years | 136,513 | |
Amortized Cost, Total | 1,051,436 | $ 1,009,070 |
Held to maturity | ||
Amortized Cost, Three months or less | 500 | |
Amortized Cost, Over three months through one year | 0 | |
Amortized Cost, Over one year through five years | 502 | |
Amortized Cost, Over five years through ten years | 1,051 | |
Amortized Cost, Over ten years | 43,620 | |
Amortized Cost | 121,617 | 214,856 |
Available for sale | ||
Fair Value, Three months or less | 44,902 | |
Fair Value, Over three months through one year | 228,555 | |
Fair Value, Over one year through five years | 1,713 | |
Fair Value, Over five years through ten years | 17,079 | |
Fair Value, Over ten years | 132,876 | |
Fair Value, Total | 1,030,668 | 999,881 |
Held to maturity | ||
Fair Value, Three months or less | 501 | |
Fair Value, Over three months through one year | 0 | |
Fair Value, Over one year through five years | 519 | |
Fair Value, Over five years through ten years | 1,060 | |
Fair Value, Over ten years | 43,969 | |
Fair Value, Total | 118,955 | 217,608 |
Asset-backed Securities [Member] | ||
Available for sale | ||
Amortized Cost, Mortgage-backed securities not due at a single maturity date | 25,744 | |
Amortized Cost, Total | 25,744 | |
Available for sale | ||
Fair Value, Mortgage-backed securities not due at a single maturity date | 24,844 | |
Fair Value, Total | 24,844 | |
Mortgage-Backed Securities: Residential [Member] | ||
Available for sale | ||
Amortized Cost, Mortgage-backed securities not due at a single maturity date | 596,766 | |
Amortized Cost, Total | 596,766 | 641,225 |
Held to maturity | ||
Amortized Cost, Mortgage-backed securities not due at a single maturity date | 75,944 | |
Amortized Cost | 75,944 | 93,366 |
Available for sale | ||
Fair Value, Mortgage-backed securities not due at a single maturity date | 580,699 | |
Fair Value, Total | 580,699 | 632,566 |
Held to maturity | ||
Fair Value, Mortgage-backed securities not due at a single maturity date | 72,906 | |
Fair Value, Total | $ 72,906 | $ 91,777 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses and Fair Value by Major Security Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | $ 293,410 | $ 556,400 |
Less Than 12 Months Available for sale Unrealized Losses | (1,910) | (2,882) |
12 Months or Longer Available for sale Fair Value | 579,927 | 374,091 |
12 Months or Longer Available for sale Unrealized Losses | (19,829) | (8,196) |
Available for sale Fair Value, Total | 873,337 | 930,491 |
Available for sale Unrealized Losses, Total | (21,739) | (11,078) |
Less Than 12 Months Held to maturity Fair Value | 10,601 | 11,453 |
Less Than 12 Months Held to maturity Unrealized Losses | (79) | (71) |
12 Months or Longer Held to maturity Fair Value | 71,742 | 73,730 |
12 Months or Longer Held to maturity Unrealized Losses | (3,083) | (1,763) |
Held to maturity Fair Value, Total | 82,343 | 85,183 |
Held to maturity Unrealized Losses, Total | (3,162) | (1,834) |
U.S. Treasury Securities [Member] | ||
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | 163,722 | 228,909 |
Less Than 12 Months Available for sale Unrealized Losses | (60) | (210) |
Available for sale Fair Value, Total | 163,722 | 228,909 |
Available for sale Unrealized Losses, Total | (60) | (210) |
U.S. Government Sponsored Entities and Agencies [Member] | ||
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | 1,355 | 19,961 |
Less Than 12 Months Available for sale Unrealized Losses | (12) | (164) |
12 Months or Longer Available for sale Fair Value | 19,937 | |
12 Months or Longer Available for sale Unrealized Losses | (100) | |
Available for sale Fair Value, Total | 21,292 | 19,961 |
Available for sale Unrealized Losses, Total | (112) | (164) |
Mortgage-Backed Securities: Residential [Member] | ||
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | 83,203 | 301,158 |
Less Than 12 Months Available for sale Unrealized Losses | (755) | (2,447) |
12 Months or Longer Available for sale Fair Value | 490,752 | 311,366 |
12 Months or Longer Available for sale Unrealized Losses | (15,339) | (6,314) |
Available for sale Fair Value, Total | 573,955 | 612,524 |
Available for sale Unrealized Losses, Total | (16,094) | (8,761) |
Less Than 12 Months Held to maturity Fair Value | 2,239 | 11,191 |
Less Than 12 Months Held to maturity Unrealized Losses | (40) | (69) |
12 Months or Longer Held to maturity Fair Value | 68,067 | 72,582 |
12 Months or Longer Held to maturity Unrealized Losses | (3,032) | (1,727) |
Held to maturity Fair Value, Total | 70,306 | 83,773 |
Held to maturity Unrealized Losses, Total | (3,072) | (1,796) |
Asset-backed Securities [Member] | ||
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | 24,845 | |
Less Than 12 Months Available for sale Unrealized Losses | (900) | |
Available for sale Fair Value, Total | 24,845 | |
Available for sale Unrealized Losses, Total | (900) | |
Corporate Notes [Member] | ||
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | 9,839 | |
Less Than 12 Months Available for sale Unrealized Losses | (77) | |
Available for sale Fair Value, Total | 9,839 | |
Available for sale Unrealized Losses, Total | (77) | |
State and Political Subdivisions [Member] | ||
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | 10,446 | 1,298 |
Less Than 12 Months Available for sale Unrealized Losses | (106) | (2) |
12 Months or Longer Available for sale Fair Value | 69,238 | 62,725 |
12 Months or Longer Available for sale Unrealized Losses | (4,390) | (1,882) |
Available for sale Fair Value, Total | 79,684 | 64,023 |
Available for sale Unrealized Losses, Total | (4,496) | (1,884) |
Less Than 12 Months Held to maturity Fair Value | 8,362 | 262 |
Less Than 12 Months Held to maturity Unrealized Losses | (39) | (2) |
12 Months or Longer Held to maturity Fair Value | 3,675 | 1,148 |
12 Months or Longer Held to maturity Unrealized Losses | (51) | (36) |
Held to maturity Fair Value, Total | 12,037 | 1,410 |
Held to maturity Unrealized Losses, Total | $ (90) | (38) |
Mortgage-Backed Securities: Commercial [Member] | ||
Schedule Of Held To Maturity And Available For Sale Securities [Line Items] | ||
Less Than 12 Months Available for Sale Fair Value | 5,074 | |
Less Than 12 Months Available for sale Unrealized Losses | (59) | |
Available for sale Fair Value, Total | 5,074 | |
Available for sale Unrealized Losses, Total | $ (59) |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 2,665,928 | $ 2,256,178 | ||
Deferred loan fees, net | (2,544) | (1,963) | ||
Total loans that are not PCI loans | 2,663,384 | 2,254,215 | ||
Total PCI loans | 2,015 | 2,393 | ||
Allowance for loan losses | (23,451) | (21,247) | $ (16,553) | $ (11,587) |
Net loans | 2,641,948 | 2,235,361 | ||
Commercial Real Estate Financing Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Nonfarm, nonresidential | 754,243 | 628,554 | ||
Commercial Real Estate, Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Other | 48,017 | 49,684 | ||
Real Estate Residential Closed-end 1-4 Family [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Closed-end 1-4 family | 492,989 | 407,695 | ||
Residential Real Estate, Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Other | 189,817 | 169,640 | ||
Construction and Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Construction and land development | 584,440 | 494,818 | ||
Allowance for loan losses | (4,743) | (3,802) | (3,776) | (3,186) |
Commercial and Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Commercial and industrial | 590,854 | 502,006 | ||
Total PCI loans | 1,939 | 1,908 | ||
Allowance for loan losses | (7,166) | (7,587) | (6,068) | (3,358) |
Consumer and Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Consumer and other | 5,568 | 3,781 | ||
Allowance for loan losses | $ (74) | $ (43) | $ (45) | $ (36) |
Loans - Activity in Allowance f
Loans - Activity in Allowance for Loan Losses by Portfolio Segment (Detail) - 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 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | $ 21,247 | $ 16,553 | $ 21,247 | $ 16,553 | $ 11,587 | ||||||
Provision for loan losses | $ 975 | $ 136 | $ 570 | 573 | $ 1,295 | $ 590 | $ 573 | 1,855 | 2,254 | 4,313 | 5,240 |
Loans charged-off | (121) | (360) | (348) | ||||||||
Recoveries | 71 | 741 | 74 | ||||||||
Total ending allowance balance | 23,451 | 21,247 | 23,451 | 21,247 | 16,553 | ||||||
Construction and Land Development [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 3,802 | 3,776 | 3,802 | 3,776 | 3,186 | ||||||
Provision for loan losses | 978 | (642) | 601 | ||||||||
Loans charged-off | (38) | (11) | |||||||||
Recoveries | 1 | 668 | |||||||||
Total ending allowance balance | 4,743 | 3,802 | 4,743 | 3,802 | 3,776 | ||||||
Commercial Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 5,981 | 4,266 | 5,981 | 4,266 | 3,146 | ||||||
Provision for loan losses | 744 | 1,715 | 1,120 | ||||||||
Total ending allowance balance | 6,725 | 5,981 | 6,725 | 5,981 | 4,266 | ||||||
Residential Real Estate [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 3,834 | 2,398 | 3,834 | 2,398 | 1,861 | ||||||
Provision for loan losses | 872 | 1,387 | 511 | ||||||||
Loans charged-off | (7) | (1) | (40) | ||||||||
Recoveries | 44 | 50 | 66 | ||||||||
Total ending allowance balance | 4,743 | 3,834 | 4,743 | 3,834 | 2,398 | ||||||
Commercial and Industrial [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | 7,587 | 6,068 | 7,587 | 6,068 | 3,358 | ||||||
Provision for loan losses | (383) | 1,823 | 2,964 | ||||||||
Loans charged-off | (49) | (310) | (255) | ||||||||
Recoveries | 11 | 6 | 1 | ||||||||
Total ending allowance balance | 7,166 | 7,587 | 7,166 | 7,587 | 6,068 | ||||||
Consumer and Other [Member] | |||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||
Beginning balance | $ 43 | $ 45 | 43 | 45 | 36 | ||||||
Provision for loan losses | 43 | 30 | 44 | ||||||||
Loans charged-off | (27) | (49) | (42) | ||||||||
Recoveries | 15 | 17 | 7 | ||||||||
Total ending allowance balance | $ 74 | $ 43 | $ 74 | $ 43 | $ 45 |
Loans - Additional Information
Loans - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jul. 01, 2014USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Unpaid principal amount | $ 5,654,000 | $ 4,141,000 | |||
Loans receivable carrying amount | 2,667,943,000 | 2,258,571,000 | |||
Allowance for loan losses | $ 23,451,000 | $ 21,247,000 | $ 16,553,000 | $ 11,587,000 | |
Number of loans modified as troubled debt restructuring | 1 | 1 | |||
Loans modified as troubled debt restructuring, Amount | $ 167,000 | $ 608,000 | |||
Classified and Criticized Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Increase loans outstanding | 21,186,000 | ||||
Non PCI Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Estimated fair value | $ 178,818,000 | ||||
Unpaid principal amount | 92,554,000 | 183,832,000 | |||
Estimated credit discount | 1,210,000 | $ 5,014,000 | |||
Loans receivable carrying amount | 91,344,000 | ||||
Allowance for loan losses | 185,000 | ||||
PCI Loans [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses for PCI loans | $ 0 | $ 0 |
Loans - Allowance for Loan Loss
Loans - Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | $ 17 | $ 879 | ||
Allowance for loan losses, Collectively evaluated for impairment | 23,434 | 20,368 | ||
Total ending allowance balance | 23,451 | 21,247 | $ 16,553 | $ 11,587 |
Loans, Individually evaluated for impairment | 5,654 | 4,141 | ||
Loans, Collectively evaluated for impairment | 2,660,274 | 2,252,037 | ||
Loans, Purchased credit-impaired loans | 2,015 | 2,393 | ||
Total ending loans balance | 2,667,943 | 2,258,571 | ||
Construction and Land Development [Member] | ||||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||||
Allowance for loan losses, Collectively evaluated for impairment | 4,743 | 3,802 | ||
Total ending allowance balance | 4,743 | 3,802 | 3,776 | 3,186 |
Loans, Individually evaluated for impairment | 2,298 | 217 | ||
Loans, Collectively evaluated for impairment | 582,142 | 494,601 | ||
Total ending loans balance | 584,440 | 494,818 | ||
Commercial Real Estate [Member] | ||||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||||
Allowance for loan losses, Collectively evaluated for impairment | 6,725 | 5,981 | ||
Total ending allowance balance | 6,725 | 5,981 | 4,266 | 3,146 |
Loans, Collectively evaluated for impairment | 802,260 | 678,238 | ||
Loans, Purchased credit-impaired loans | 380 | |||
Total ending loans balance | 802,260 | 678,618 | ||
Residential Real Estate [Member] | ||||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||||
Allowance for loan losses, Collectively evaluated for impairment | 4,743 | 3,834 | ||
Total ending allowance balance | 4,743 | 3,834 | 2,398 | 1,861 |
Loans, Individually evaluated for impairment | 3,189 | 834 | ||
Loans, Collectively evaluated for impairment | 679,617 | 576,501 | ||
Loans, Purchased credit-impaired loans | 76 | 105 | ||
Total ending loans balance | 682,882 | 577,440 | ||
Commercial and Industrial [Member] | ||||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||||
Allowance for loan losses, Individually evaluated for impairment | 17 | 879 | ||
Allowance for loan losses, Collectively evaluated for impairment | 7,149 | 6,708 | ||
Total ending allowance balance | 7,166 | 7,587 | 6,068 | 3,358 |
Loans, Individually evaluated for impairment | 167 | 3,090 | ||
Loans, Collectively evaluated for impairment | 590,687 | 498,916 | ||
Loans, Purchased credit-impaired loans | 1,939 | 1,908 | ||
Total ending loans balance | 592,793 | 503,914 | ||
Consumer and Other [Member] | ||||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||||
Allowance for loan losses, Collectively evaluated for impairment | 74 | 43 | ||
Total ending allowance balance | 74 | 43 | $ 45 | $ 36 |
Loans, Collectively evaluated for impairment | 5,568 | 3,781 | ||
Total ending loans balance | $ 5,568 | $ 3,781 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans by Class of Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance, With no allowance recorded | $ 5,487 | $ 1,159 | |
Unpaid Principal Balance, With an allowance recorded | 167 | 2,982 | |
Unpaid Principal Balance | 5,654 | 4,141 | |
Recorded Investment, With no allowance recorded | 5,495 | 1,159 | |
Recorded Investment, With an allowance recorded | 167 | 2,982 | |
Recorded Investment | 5,662 | 4,141 | |
Allowance for Loan Losses Allocated | 17 | 879 | |
Average Recorded Investment, With no allowance recorded | 2,301 | 4,597 | $ 4,024 |
Average Recorded Investment, With an allowance recorded | 993 | 2,502 | 545 |
Average Recorded Investment | 3,294 | 7,099 | 4,569 |
Real Estate Residential Closed-end 1-4 Family [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance, With no allowance recorded | 1,272 | 14 | |
Recorded Investment, With no allowance recorded | 1,280 | 14 | |
Average Recorded Investment, With no allowance recorded | 715 | 649 | 747 |
Average Recorded Investment, With an allowance recorded | 22 | 55 | |
Residential Real Estate, Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance, With no allowance recorded | 1,917 | 820 | |
Recorded Investment, With no allowance recorded | 1,917 | 820 | |
Average Recorded Investment, With no allowance recorded | 553 | 331 | 696 |
Commercial Real Estate Financing Receivable [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment, With no allowance recorded | 1,796 | 1,892 | |
Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance, With no allowance recorded | 2,298 | 217 | |
Recorded Investment, With no allowance recorded | 2,298 | 217 | |
Average Recorded Investment, With no allowance recorded | 378 | 921 | 474 |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid Principal Balance, With no allowance recorded | 108 | ||
Unpaid Principal Balance, With an allowance recorded | 167 | 2,982 | |
Recorded Investment, With no allowance recorded | 108 | ||
Recorded Investment, With an allowance recorded | 167 | 2,982 | |
Allowance for Loan Losses Allocated | 17 | 879 | |
Average Recorded Investment, With no allowance recorded | 655 | 899 | 207 |
Average Recorded Investment, With an allowance recorded | $ 993 | 2,480 | 490 |
Consumer and Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average Recorded Investment, With no allowance recorded | $ 1 | $ 8 |
Loans - Schedule of Recorded In
Loans - Schedule of Recorded Investment in Nonaccrual and Loans Past Due Over 90 Days on Accrual by Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Nonaccrual | $ 5,488 | $ 2,837 |
Recorded Investment, Loans Past Due Over 90 Days | 208 | 205 |
Construction Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Nonaccrual | 2,298 | |
Real Estate Residential Closed-end 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Nonaccrual | 1,273 | 257 |
Recorded Investment, Loans Past Due Over 90 Days | 14 | |
Residential Real Estate, Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Nonaccrual | 1,917 | 114 |
Commercial and Industrial Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Recorded Investment, Nonaccrual | 2,466 | |
Recorded Investment, Loans Past Due Over 90 Days | $ 208 | $ 191 |
Loans - Schedule of Aging of Re
Loans - Schedule of Aging of Recorded Investment in Past Due Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | $ 9,018 | $ 6,520 |
Aging of Recorded Investment, Loans Not Past Due | 2,656,910 | 2,249,658 |
Aging of Recorded Investment, Total | 2,667,943 | 2,258,571 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 2,828 | 2,054 |
Aging of Recorded Investment, Loans Not Past Due | 581,612 | 492,764 |
Aging of Recorded Investment, Total | 584,440 | 494,818 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 701 | 3,216 |
Aging of Recorded Investment, Loans Not Past Due | 590,153 | 498,790 |
Aging of Recorded Investment, Total | 592,793 | 503,914 |
Consumer and Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Loans Not Past Due | 5,568 | 3,781 |
Aging of Recorded Investment, Total | 5,568 | 3,781 |
PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, PCI Loans | 2,015 | 2,393 |
PCI Loans [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, PCI Loans | 1,939 | 1,908 |
Commercial Real Estate Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 515 | |
Aging of Recorded Investment, Loans Not Past Due | 753,728 | 628,554 |
Aging of Recorded Investment, Total | 754,243 | 628,934 |
Commercial Real Estate Financing Receivable [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, PCI Loans | 380 | |
Commercial Real Estate, Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Loans Not Past Due | 48,017 | 49,684 |
Aging of Recorded Investment, Total | 48,017 | 49,684 |
Real Estate Residential Closed-end 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 3,022 | 271 |
Aging of Recorded Investment, Loans Not Past Due | 489,967 | 407,424 |
Aging of Recorded Investment, Total | 493,065 | 407,800 |
Real Estate Residential Closed-end 1-4 Family [Member] | PCI Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, PCI Loans | 76 | 105 |
Residential Real Estate, Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 1,952 | 979 |
Aging of Recorded Investment, Loans Not Past Due | 187,865 | 168,661 |
Aging of Recorded Investment, Total | 189,817 | 169,640 |
30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 3,582 | 2,853 |
30 to 59 Days Past Due [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 294 | 1,918 |
30 to 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 241 | 532 |
30 to 59 Days Past Due [Member] | Commercial Real Estate Financing Receivable [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 515 | |
30 to 59 Days Past Due [Member] | Real Estate Residential Closed-end 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 2,390 | 257 |
30 to 59 Days Past Due [Member] | Residential Real Estate, Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 142 | 146 |
60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 2,642 | 882 |
60 to 89 Days Past Due [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 1,986 | 136 |
60 to 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 252 | 27 |
60 to 89 Days Past Due [Member] | Real Estate Residential Closed-end 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 404 | |
60 to 89 Days Past Due [Member] | Residential Real Estate, Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 719 | |
Greater Than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 2,794 | 2,785 |
Greater Than 90 Days Past Due [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 548 | |
Greater Than 90 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 208 | 2,657 |
Greater Than 90 Days Past Due [Member] | Real Estate Residential Closed-end 1-4 Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 228 | 14 |
Greater Than 90 Days Past Due [Member] | Residential Real Estate, Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | $ 1,810 | $ 114 |
Loans - Summary of Risk Categor
Loans - Summary of Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Risk Category Of Loans [Line Items] | ||
Total Loans | $ 2,667,943 | $ 2,258,571 |
Construction and Land Development [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 584,440 | 494,818 |
Commercial and Industrial [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 592,793 | 503,914 |
Consumer and Other [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 5,568 | 3,781 |
Pass [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 2,603,376 | 2,215,220 |
Pass [Member] | Construction and Land Development [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 580,468 | 494,601 |
Pass [Member] | Commercial and Industrial [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 553,589 | 485,363 |
Pass [Member] | Consumer and Other [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 5,567 | 3,777 |
Special Mention [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 25,856 | 23,571 |
Special Mention [Member] | Construction and Land Development [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 1,416 | |
Special Mention [Member] | Commercial and Industrial [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 8,313 | 10,350 |
Special Mention [Member] | Consumer and Other [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 1 | 4 |
Substandard [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 38,711 | 19,780 |
Substandard [Member] | Construction and Land Development [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 2,556 | 217 |
Substandard [Member] | Commercial and Industrial [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 30,891 | 8,201 |
Commercial Real Estate Financing Receivable [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 754,243 | 628,934 |
Commercial Real Estate Financing Receivable [Member] | Pass [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 739,469 | 609,458 |
Commercial Real Estate Financing Receivable [Member] | Special Mention [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 14,774 | 12,602 |
Commercial Real Estate Financing Receivable [Member] | Substandard [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 6,874 | |
Commercial Real Estate, Other [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 48,017 | 49,684 |
Commercial Real Estate, Other [Member] | Pass [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 48,017 | 49,303 |
Commercial Real Estate, Other [Member] | Substandard [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 381 | |
Real Estate Residential Closed-end 1-4 Family [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 493,065 | 407,800 |
Real Estate Residential Closed-end 1-4 Family [Member] | Pass [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 489,781 | 404,832 |
Real Estate Residential Closed-end 1-4 Family [Member] | Special Mention [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 948 | 615 |
Real Estate Residential Closed-end 1-4 Family [Member] | Substandard [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 2,336 | 2,353 |
Residential Real Estate, Other [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 189,817 | 169,640 |
Residential Real Estate, Other [Member] | Pass [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 186,485 | 167,886 |
Residential Real Estate, Other [Member] | Special Mention [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 404 | |
Residential Real Estate, Other [Member] | Substandard [Member] | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | $ 2,928 | $ 1,754 |
Loan Servicing - Schedule of Lo
Loan Servicing - Schedule of Loans Serviced Not Reported as Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Mortgage Corporation [Member] | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | $ 492,761 | $ 507,233 |
Other Serviced Loans [Member] | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | $ 3,689 | $ 4,626 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers And Servicing [Abstract] | ||
Escrow balances maintained | $ 2,588 | $ 2,672 |
Fair value of servicing rights | $ 4,836 | $ 5,089 |
Weighted average discount rate | 9.50% | 10.50% |
Weighted average prepayment speed | 11.90% | 9.90% |
Loan Servicing - Related Loan S
Loan Servicing - Related Loan Servicing Rights Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Servicing Asset At Amortized Value Additional Disclosures [Abstract] | |||
Beginning of year | $ 3,620 | $ 3,621 | $ 3,455 |
Additions | 650 | 933 | 1,367 |
Amortized to expense | (867) | (934) | (1,201) |
End of year | $ 3,403 | $ 3,620 | $ 3,621 |
Loan Servicing - Components of
Loan Servicing - Components of Net Loan Servicing Fees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transfers And Servicing [Abstract] | |||
Loan servicing fees | $ 1,308 | $ 1,270 | $ 1,223 |
Amortization of loan servicing fees | (867) | (934) | (1,201) |
Total | $ 441 | $ 336 | $ 22 |
Premises and Equipment and Le_3
Premises and Equipment and Leases - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 22,629 | $ 19,826 |
Accumulated depreciation | (10,258) | (8,545) |
Property plant and equipment net | 12,371 | 11,281 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 2,097 | 3,215 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 33 | 33 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 150 | 150 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 9,487 | 7,582 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 7,133 | 5,437 |
Computer Equipment and Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 3,700 | 3,380 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 29 | $ 29 |
Premises and Equipment and Le_4
Premises and Equipment and Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment Capitalized Interest Costs [Abstract] | |||
Depreciation and amortization on premises and equipment | $ 1,713 | $ 1,482 | $ 1,330 |
Rent expense | 5,528 | $ 4,454 | $ 3,602 |
Capital lease | $ 3,100 |
Premises and Equipment and Le_5
Premises and Equipment and Leases - Summary of Future Minimum Operating Lease Payments Due Under Non-cancelable Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 4,841 |
2020 | 4,849 |
2021 | 4,871 |
2022 | 4,856 |
2023 | 4,885 |
Thereafter | 36,178 |
Total | $ 60,480 |
Premises and Equipment and Le_6
Premises and Equipment and Leases - Summary of Future Minimum Lease Payments Due Under Capital Lease (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 272 |
2020 | 276 |
2021 | 280 |
2022 | 284 |
2023 | 288 |
Thereafter | 3,133 |
Total | $ 4,533 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Jul. 01, 2014 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 18,176 | $ 9,124 | |||
Core deposit intangible, net | 952 | 1,007 | |||
Core deposit intangibles, accumulated amortization | 2,665 | 2,053 | |||
Aggregate amortization expense | 612 | $ 473 | $ 563 | ||
MidSouth Bank [Member] | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Core deposit intangibles, accumulated amortization | 2,435 | ||||
MidSouth Bank [Member] | Core Deposit Intangibles [Member] | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 3,617 | ||||
Estimated economic life | 8 years 2 months 12 days | ||||
Civic Bank And Trust [Member] | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 9,052 | ||||
Civic Bank And Trust [Member] | Core Deposit Intangibles [Member] | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 558 | ||||
Estimated economic life | 3 years 2 months 12 days | ||||
Core deposit intangibles, accumulated amortization | $ 230 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Core deposit intangibles, Gross Carrying Amount | $ 3,617 | $ 3,060 |
Core deposit intangibles, Accumulated Amortization | $ (2,665) | $ (2,053) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | |
2019 | $ 504 |
2020 | 304 |
2021 | 121 |
2022 | $ 23 |
Deposits - Schedule of Composit
Deposits - Schedule of Composition of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investment Holdings [Line Items] | ||
Deposits | $ 3,431,807 | $ 3,167,228 |
Retail [Member] | ||
Investment Holdings [Line Items] | ||
Deposits | 1,450,370 | 1,326,909 |
Brokered [Member] | ||
Investment Holdings [Line Items] | ||
Deposits | 797,795 | 779,886 |
Local Government [Member] | ||
Investment Holdings [Line Items] | ||
Deposits | 782,890 | 1,002,584 |
Reciprocal and Other [Member] | ||
Investment Holdings [Line Items] | ||
Deposits | $ 400,752 | $ 57,849 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fees And Commissions Income [Abstract] | ||
Time Deposits, $250,000 or More | $ 368,635 | $ 392,633 |
Deposit accounts in overdraft status reclassified to loans | $ 142 | $ 224 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Maturities of Time Deposits [Abstract] | |
2019 | $ 1,100,319 |
2020 | 107,129 |
2021 | 71,202 |
2022 | 37,044 |
2023 | 10,399 |
'Total | $ 1,326,093 |
Federal Funds Purchased and R_3
Federal Funds Purchased and Repurchase Agreements - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Federal Home Loan Bank, Advances, Maximum Amount Available | $ 50,100,000 | |
Outstanding federal funds purchased | 0 | $ 0 |
Total short-term borrowings | 0 | 31,004,000 |
Carrying value of securities used to secure borrowings | 0 | 41,618,000 |
Securities pledged for repurchase agreements | 0 | |
Federal Funds Purchased [Member] | ||
Assets Sold under Agreements to Repurchase [Line Items] | ||
Federal Home Loan Bank, Advances, Maximum Amount Available | $ 217,500,000 | $ 217,500,000 |
Federal Funds Purchased and R_4
Federal Funds Purchased and Repurchase Agreements - Summary of Information Concerning Securities Sold under Agreements to Repurchase (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Banking And Thrift [Abstract] | |||
Average daily balance during the year | $ 11,302,000 | $ 32,428,000 | $ 39,647,000 |
Average interest rate during the year | 1.29% | 0.85% | 0.58% |
Maximum month-end balance during the year | $ 36,071,000 | $ 33,989,000 | $ 61,669,000 |
Weighted average interest rate at year end | 0.00% | 1.14% | 0.56% |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Federal Home Loan Banks [Abstract] | ||
Advances received from the FHLB | $ 368,500,000 | $ 272,000,000 |
Loans pledged as security | 675,994,000 | |
Federal Home Loan Bank, Advances, Maximum Amount Available | $ 50,100,000 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Schedule of Maturities of Advances and Interest Rates (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Federal Home Loan Banks [Abstract] | |
2019 | $ 313,500 |
2020 | 55,000 |
Thereafter | 0 |
Total | $ 368,500 |
2019 | 2.24% |
2020 | 1.72% |
Thereafter | 0.00% |
Total | 2.16% |
Subordinated Notes - Additional
Subordinated Notes - Additional Information (Detail) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||||
Subordinated notes, net of issuance costs | $ 58,693,000 | $ 58,515,000 | ||
Subordinated Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes, Aggregate principal amount | $ 60,000,000 | |||
Subordinated Debt [Member] | March 2016 Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes, Aggregate principal amount | $ 40,000,000 | |||
Notes, Interest rate | 6.875% | |||
Subordinated Debt [Member] | June 2016 Subordinated Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes, Aggregate principal amount | $ 20,000,000 | |||
Notes, Interest rate | 7.00% |
Subordinated Notes - Summary of
Subordinated Notes - Summary of Terms of Each Subordinated Note offering (Detail) - Subordinated Debt [Member] - USD ($) | 1 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Principal amount issued | $ 60,000,000 | ||
March 2016 Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount issued | $ 40,000,000 | ||
Maturity date | Mar. 30, 2026 | ||
Initial fixed interest rate | 6.875% | ||
First interest rate change date | Mar. 30, 2021 | ||
Interest payment frequency through year five | Semiannually | ||
Interest payment frequency after five years | Quarterly | ||
March 2016 Subordinated Notes [Member] | Initial Term [Member] | |||
Debt Instrument [Line Items] | |||
Initial interest rate period | 5 years | ||
June 2016 Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount issued | $ 20,000,000 | ||
Maturity date | Jul. 1, 2026 | ||
Initial fixed interest rate | 7.00% | ||
First interest rate change date | Jul. 1, 2021 | ||
Interest payment frequency through year five | Semiannually | ||
Interest payment frequency after five years | Quarterly | ||
June 2016 Subordinated Notes [Member] | Initial Term [Member] | |||
Debt Instrument [Line Items] | |||
Initial interest rate period | 5 years | ||
LIBOR [Member] | March 2016 Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest payment frequency through year five | Quarterly | ||
Interest repricing index and margin | 3-month LIBOR plus 5.636% | ||
LIBOR [Member] | June 2016 Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest payment frequency through year five | Quarterly | ||
Interest repricing index and margin | 3-month LIBOR plus 6.04% |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | May 01, 2008 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Postemployment Benefits Disclosure [Line Items] | ||||
Expense for the period | $ 687 | $ 621 | $ 523 | |
Employee Contribution Up to First 2% [Member] | ||||
Postemployment Benefits Disclosure [Line Items] | ||||
Contribution equivalent to the company's common stock | 100.00% | |||
Employee Contribution on Next 4% [Member] | ||||
Postemployment Benefits Disclosure [Line Items] | ||||
Contribution equivalent to the company's common stock | 50.00% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Interest and penalties | 0 | $ 0 | $ 0 |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Disclosure [Line Items] | |||
Federal net operating losses annual limitation amount | 1,300,000 | ||
MidSouth [Member] | |||
Income Tax Disclosure [Line Items] | |||
Net operating losses acquired from acquisition | $ 9,690,000,000 | ||
MidSouth [Member] | Minimum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Expiration date of net operating losses acquired from acquisition | 2025 | ||
MidSouth [Member] | Maximum [Member] | |||
Income Tax Disclosure [Line Items] | |||
Expiration date of net operating losses acquired from acquisition | 2031 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of the Income Tax Expense Computed by Statutory Federal Income Tax Rate of 34 Percent to Income Before Income Tax Expense (Detail) - 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] | |||||||||||
Computed “expected” tax expense | $ 8,491 | $ 16,321 | $ 13,931 | ||||||||
State tax expense, net of federal tax effect | (612) | 333 | 805 | ||||||||
Effect of statutory rate changes enacted | 5,323 | ||||||||||
Non-deductible merger costs | 67 | 19 | 114 | ||||||||
Incentive stock options | 475 | 506 | 254 | ||||||||
Bank owned life insurance | (320) | (286) | (227) | ||||||||
Tax-exempt interest income, net of expense | (1,296) | (2,585) | (1,801) | ||||||||
Insurance premiums | (293) | (347) | (364) | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | (647) | (805) | (1,013) | ||||||||
Other | 47 | 52 | 47 | ||||||||
Income tax expense | $ 122 | $ 1,068 | $ 2,263 | $ 2,459 | $ 8,188 | $ 3,138 | $ 3,619 | $ 3,586 | $ 5,912 | $ 18,531 | $ 11,746 |
Income Taxes - Summary of Rec_2
Income Taxes - Summary of Reconciliation of the Income Tax Expense Computed by Statutory Federal Income Tax Rate of 34 Percent to Income Before Income Tax Expense (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 35.00% | 35.00% |
Effect of statutory rate changes enacted | $ 5,323 |
Income Taxes - Component of Inc
Income Taxes - Component of Income Tax Expense Benefit (Detail) - 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 | |
Current expense | |||||||||||
Federal | $ 6,399 | $ 13,653 | $ 11,416 | ||||||||
State | (684) | 1,093 | 1,294 | ||||||||
Deferred expense | |||||||||||
Federal | 288 | (957) | (908) | ||||||||
State | (91) | (581) | (56) | ||||||||
Deferred tax revaluation expense | 5,323 | ||||||||||
Income tax expense | $ 122 | $ 1,068 | $ 2,263 | $ 2,459 | $ 8,188 | $ 3,138 | $ 3,619 | $ 3,586 | $ 5,912 | $ 18,531 | $ 11,746 |
Income Taxes - Sources of Defer
Income Taxes - Sources of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Organizational and start-up costs | $ 51 | $ 64 |
Allowance for loan losses | 5,881 | 5,367 |
Unrealized loss on securities | 5,427 | 2,403 |
Net operating loss carry forward | 2,035 | 2,317 |
Purchase accounting fair value adjustments | 844 | 1,006 |
Accrued other expenses | 701 | 567 |
Nonaccrual loan interest | 105 | 355 |
Loan fees | 656 | 511 |
Other | 1,421 | 552 |
Total deferred tax asset | 17,121 | 13,142 |
Deferred tax liabilities: | ||
Mortgage servicing rights | (879) | (933) |
Premises and equipment | (1,204) | (753) |
Prepaid expenses | (702) | (469) |
Purchase accounting fair value adjustments | (250) | (264) |
Other | (897) | (716) |
Total deferred tax liability | (3,932) | (3,135) |
Net deferred tax asset (liability) | $ 13,189 | $ 10,007 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans to Principal Officers, Directors, and Their Affiliates (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Related Party Transactions [Abstract] | |
Beginning balance | $ 29,187 |
New loans/advances | 4,507 |
Effect of changes in composition of related parties | 4,576 |
Repayments | (15,569) |
Ending balance | $ 22,701 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)Truck | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | |||
Deposits from principal officers, directors, and their affiliates | $ 40,273 | $ 17,477 | |
Rent Expense | 3,893 | 2,582 | $ 2,574 |
Future minimum rent payments | 60,480 | ||
Procurement of various insurance policies | $ 119 | 25,000 | |
Number of trucks sold | Truck | 5 | ||
Proceeds from sale of trucks aggregate amount | $ 325 | ||
Williamson County and Rutherford County [Member] | |||
Related Party Transaction [Line Items] | |||
Lease agreement term | 15 years | ||
Related Parties [Member] | |||
Related Party Transaction [Line Items] | |||
Future minimum rent payments | $ 54,783 | ||
Construction of leasehold improvements | 0 | 831 | 2,261 |
Procurement of various insurance policies | $ 1,027 | $ 997 | $ 806 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)Plan$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Apr. 12, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans | Plan | 2 | |||
Compensation cost charged against income | $ | $ 6,569 | $ 2,802 | $ 1,641 | |
Excess tax benefit related to vesting of restricted stock and exercise of stock options | $ | $ 647 | $ 805 | $ 1,013 | |
2010 Offering [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrant shares issued | 32,425 | |||
Warrant exercise price per share | $ / shares | $ 12 | |||
Number of warrants exercised | 0 | 12,461 | ||
Shares issuable upon exercise of warrants to purchase common stock | 20 | |||
Warrants exercisable period | 7 years | |||
Warrant expiration date | Mar. 30, 2017 | |||
Warrants outstanding | 0 | 0 | ||
2017 Omnibus Equity Incentive Plan [Member] | Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 5,000,000 | 3,500,000 | ||
Number of shares authorized for issuance | 2,513,043 | |||
2017 Omnibus Equity Incentive Plan [Member] | Stock Option [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 2 years | |||
2017 Omnibus Equity Incentive Plan [Member] | Stock Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 5 years | |||
2017 Omnibus Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 2 years | |||
2017 Omnibus Equity Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 5 years | |||
2007 Omnibus Equity Incentive Plan [Member] | Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 4,000,000 | |||
Options contractual term | 10 years | |||
Weighted average fair value of options | $ / shares | $ 11.50 | $ 14.43 | $ 10.23 | |
Unrecognized compensation cost, nonvested stock options | $ | $ 6,880 | |||
Unrecognized compensation cost, period of recognition | 1 year 2 months 12 days | |||
2007 Omnibus Equity Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, nonvested stock options | $ | $ 2,650 | |||
Unrecognized compensation cost, period of recognition | 1 year 9 months 18 days | |||
Number of restricted shares granted | 126,288 | 27,282 | 36,496 | |
Total fair value of shares vested | $ | $ 1,382 | $ 1,432 | $ 1,003 | |
2007 Omnibus Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 2 years | |||
2007 Omnibus Equity Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 5 years |
Share-Based Payments - Summary
Share-Based Payments - Summary of Stock Warrant Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Intrinsic value of warrants exercised | $ 329 | |
Cash received from warrants exercised | $ 150 | $ 101 |
Share-Based Payments - Fair Val
Share-Based Payments - Fair Value Assumptions of Stock Options (Detail) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Risk-free interest rate | 3.10% | 2.05% | 1.59% |
Expected term | 7 years 6 months | 6 years 10 months 24 days | 7 years 6 months |
Expected stock price volatility | 30.79% | 33.21% | 30.45% |
Dividend yield | 0.00% | 0.03% | 0.22% |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Company's Stock Options Activities (Detail) - Stock Option [Member] - 2007 and 2017 Omnibus Equity Incentive Plan [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Outstanding at beginning of year | 1,507,168 | 1,395,016 | 1,312,791 |
Shares, Granted | 572,637 | 295,820 | 299,587 |
Shares, Exercised | (244,309) | (180,555) | (214,947) |
Shares, Forfeited, expired, or cancelled | (27,574) | (3,113) | (2,415) |
Shares, Outstanding at period end | 1,807,922 | 1,507,168 | 1,395,016 |
Shares, Vested or expected to vest | 914,368 | ||
Shares, Exercisable at period end | 798,994 | ||
Weighted Average Exercise Price, Outstanding at beginning of year | $ 21.37 | $ 16.70 | $ 13.04 |
Weighted Average Exercise Price, Granted | 30.48 | 37.68 | 28.85 |
Weighted Average Exercise Price, Exercised | 16.83 | 11.87 | 11.31 |
Weighted Average Exercise Price, Forfeited, expired, or cancelled | 28.66 | 25.37 | 19.43 |
Weighted Average Exercise Price, Outstanding at period end | 24.68 | $ 21.37 | $ 16.70 |
Weighted Average Exercise Price, Vested or expected to vest | 24.68 | ||
Weighted Average Exercise Price, Exercisable at period end | $ 18.59 | ||
Weighted Average Remaining Contractual Term, Outstanding Balance | 6 years 4 months 28 days | ||
Weighted Average Remaining Contractual Term, Vested or expected to vest | 6 years 4 months 28 days | ||
Weighted Average Remaining Contractual Term, Exercisable at period end | 5 years 2 months 23 days | ||
Aggregate Intrinsic Value, Outstanding | $ 9,581 | ||
Aggregate Intrinsic Value, Vested or expected to vest | 9,102 | ||
Aggregate Intrinsic Value, Exercisable at period end | $ 8,750 |
Share-Based Payments - Summar_3
Share-Based Payments - Summary of Stock Options Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock options exercised: | |||
Cash received from options exercised | $ 3,047 | $ 1,615 | $ 1,571 |
Stock Option [Member] | 2007 and 2017 Omnibus Equity Incentive Plan [Member] | |||
Stock options exercised: | |||
Intrinsic value of options exercised | 4,873 | 4,878 | 4,725 |
Cash received from options exercised | 3,047 | 1,615 | 1,571 |
Tax benefit realized from option exercises | $ 565 | $ 484 | $ 843 |
Share-Based Payments - Summar_4
Share-Based Payments - Summary of Activity for Nonvested Restricted Share Awards (Detail) - Restricted Stock [Member] - 2007 and 2017 Omnibus Equity Incentive Plan [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares, Non-vested, Beginning Balance | 94,181 | 106,458 | 105,864 |
Shares, Granted | 126,288 | 27,282 | 36,496 |
Shares, Vested | (40,134) | (38,995) | (33,407) |
Shares, Forfeited | (3,819) | (564) | (2,495) |
Shares, Non-vested, Ending Balance | 176,516 | 94,181 | 106,458 |
Weighted-Average Grant-Date Fair Value, Non-vested, Beginning Balance | $ 25.42 | $ 19.81 | $ 15.89 |
Weighted-Average Grant-Date Fair Value, Granted | 33.04 | 37.35 | 28.47 |
Weighted-Average Grant-Date Fair Value, Vested | 26.69 | 18.40 | 17.06 |
Weighted-Average Grant-Date Fair Value, Forfeited | 31.80 | 28.66 | 16.97 |
Weighted-Average Grant-Date Fair Value, Non-vested, Ending Balance | $ 31.07 | $ 25.42 | $ 19.81 |
Regulatory Capital Matters - Ad
Regulatory Capital Matters - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital ratio to risk weighted assets | 12.18% | 11.37% |
Basel III [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer threshold | 1.875% | |
Capital conservation buffer limit for capital distributions or discretionary bonus payments | 2.50% | |
Common equity tier 1 capital ratio to risk weighted assets | 7.00% | |
Tier 1 capital ratio to risk weighted assets | 8.50% | |
Total capital to risk weighted assets | 10.50% |
Regulatory Capital Matters - Ac
Regulatory Capital Matters - Actual and Required Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 capital to RWA, Actual Amount | $ 367,096 | $ 299,229 |
Total Capital to RWA, Actual Amount | 449,325 | 379,083 |
Tier 1 (Core) Capital to RWA, Actual Amount | 367,096 | 299,229 |
Tier 1 (Core) Capital to average assets, Actual Amount | $ 367,096 | $ 299,229 |
Common equity Tier 1 capital to RWA, Actual Ratio | 12.18% | 11.37% |
Total Capital to RWA, Actual Ratio | 14.91% | 14.40% |
Tier 1 (Core) Capital to RWA, Actual Ratio | 12.18% | 11.37% |
Tier 1 (Core) Capital to average assets, Actual Ratio | 8.76% | 8.25% |
Common equity Tier 1 capital to RWA, Required For Capital Adequacy Purposes Amount | $ 135,598 | $ 118,479 |
Total Capital to RWA, Required For Capital Adequacy Purposes Amount | 241,064 | 210,629 |
Tier 1 (Core) Capital to RWA, Required For Capital Adequacy Purposes Amount | 180,798 | 157,972 |
Tier 1 (Core) Capital to average assets, Required For Capital Adequacy Purposes Amount | $ 167,553 | $ 145,100 |
Common equity Tier 1 capital to RWA, Required For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Total Capital to RWA, Required For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier 1 (Core) Capital to RWA, Required For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 (Core) Capital to average assets, Required For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1 capital to RWA, Actual Amount | $ 421,335 | $ 353,512 |
Total Capital to RWA, Actual Amount | 444,871 | 374,851 |
Tier 1 (Core) Capital to RWA, Actual Amount | 421,335 | 353,512 |
Tier 1 (Core) Capital to average assets, Actual Amount | $ 421,335 | $ 353,512 |
Common equity Tier 1 capital to RWA, Actual Ratio | 13.98% | 13.43% |
Total Capital to RWA, Actual Ratio | 14.76% | 14.24% |
Tier 1 (Core) Capital to RWA, Actual Ratio | 13.98% | 13.43% |
Tier 1 (Core) Capital to average assets, Actual Ratio | 10.07% | 9.75% |
Common equity Tier 1 capital to RWA, Required For Capital Adequacy Purposes Amount | $ 135,613 | $ 118,489 |
Total Capital to RWA, Required For Capital Adequacy Purposes Amount | 241,090 | 210,647 |
Tier 1 (Core) Capital to RWA, Required For Capital Adequacy Purposes Amount | 180,818 | 157,985 |
Tier 1 (Core) Capital to average assets, Required For Capital Adequacy Purposes Amount | $ 167,420 | $ 145,003 |
Common equity Tier 1 capital to RWA, Required For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Total Capital to RWA, Required For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier 1 (Core) Capital to RWA, Required For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 (Core) Capital to average assets, Required For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Common equity Tier 1 capital to RWA, To Be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 195,886 | $ 171,151 |
Total Capital to RWA, To Be Well Capitalized Under Prompt Corrective Action Regulations Amount | 301,363 | 263,309 |
Tier 1 (Core) Capital to RWA, To Be Well Capitalized Under Prompt Corrective Action Regulations Amount | 241,090 | 210,647 |
Tier 1 (Core) Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Regulations Amount | $ 209,275 | $ 181,253 |
Common equity Tier 1 capital to RWA, To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 6.50% | 6.50% |
Total Capital to RWA, To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 10.00% | 10.00% |
Tier 1 (Core) Capital to RWA, To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 8.00% | 8.00% |
Tier 1 (Core) Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Regulations Ratio | 5.00% | 5.00% |
Fair Value - Additional informa
Fair Value - Additional information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Fair value measurements, valuation techniques | For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). | ||
Transfers of assets between level 1 and level 2 | $ 0 | $ 0 | |
Transfers of assets between level 2 and level 1 | 0 | 0 | |
Transfers of liabilities between level 1 and level 2 | 0 | 0 | |
Transfers of liabilities between level 2 and level | 0 | 0 | |
Change in fair value related to loans held for sale | 6,286,000 | 6,779,000 | $ 7,183,000 |
Carrying amount of impaired loans with specific allocations | 5,662,000 | 4,141,000 | |
Foreclosed assets | 0 | 1,503,000 | |
Fair Value [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Carrying amount of impaired loans with specific allocations | 150,000 | 1,650,000 | |
Loans Held for Sale [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Unpaid principal balance of loans held for sale | 10,722,000 | 11,681,000 | |
Change in fair value related to loans held for sale | $ 381,000 | $ 343,000 | |
Maximum [Member] | Loans Held for Sale [Member] | |||
Fair Value Measurements Of Financial Instruments [Line Items] | |||
Term of loan | 90 days |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 1,030,668 | $ 999,881 |
Loans held for sale | 11,103 | 12,024 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 253,014 | 228,909 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 777,654 | 770,972 |
Loans held for sale | 11,103 | 12,024 |
Mortgage banking derivative assets | 206 | 175 |
Mortgage banking derivative liabilities | 129 | 35 |
U.S. Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 253,014 | 228,909 |
U.S. Treasury Securities [Member] | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 253,014 | 228,909 |
U.S. Government Sponsored Entities and Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 21,888 | 19,961 |
U.S. Government Sponsored Entities and Agencies [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 21,888 | 19,961 |
Mortgage-Backed Securities: Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 580,699 | 632,566 |
Mortgage-Backed Securities: Residential [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 580,699 | 632,566 |
Mortgage-Backed Securities: Commercial [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 5,074 | |
Mortgage-Backed Securities: Commercial [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 5,074 | |
Asset-backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 24,844 | |
Asset-backed Securities [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 24,844 | |
Corporate Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 12,424 | |
Corporate Notes [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 12,424 | |
State and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 137,799 | 113,371 |
State and Political Subdivisions [Member] | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 137,799 | $ 113,371 |
Fair Value - Carrying Amount an
Fair Value - Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets | ||
Securities available for sale | $ 1,030,668 | $ 999,881 |
Securities held to maturity | 118,955 | 217,608 |
Loans held for sale | 11,103 | 12,024 |
Servicing rights, net | 4,836 | 5,089 |
Reported Value Measurement [Member] | ||
Financial assets | ||
Cash and cash equivalents | 280,212 | 251,543 |
Securities available for sale | 1,030,668 | 999,881 |
Certificates of deposit held at other financial institutions | 3,594 | 2,855 |
Securities held to maturity | 121,617 | 214,856 |
Loans held for sale | 11,103 | 12,024 |
Net loans | 2,641,948 | 2,235,361 |
Restricted equity securities | 21,831 | 18,492 |
Servicing rights, net | 3,403 | 3,620 |
Accrued interest receivable | 13,337 | 11,947 |
Financial liabilities | ||
Deposits | 3,431,807 | 3,167,228 |
Federal funds purchased and repurchase agreements | 31,004 | |
Federal Home Loan Bank advances | 368,500 | 272,000 |
Subordinated notes | 58,693 | 58,515 |
Accrued interest payable | 4,700 | 2,769 |
Fair Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 280,212 | 251,543 |
Securities available for sale | 1,030,668 | 999,881 |
Certificates of deposit held at other financial institutions | 3,594 | 2,855 |
Securities held to maturity | 118,955 | 217,608 |
Loans held for sale | 11,103 | 12,024 |
Net loans | 2,622,386 | 2,230,607 |
Restricted equity securities | 0 | 0 |
Servicing rights, net | 4,836 | 5,089 |
Accrued interest receivable | 13,337 | 11,947 |
Financial liabilities | ||
Deposits | 3,425,277 | 3,135,969 |
Federal funds purchased and repurchase agreements | 31,004 | |
Federal Home Loan Bank advances | 366,786 | 270,311 |
Subordinated notes | 59,852 | 59,951 |
Accrued interest payable | 4,700 | 2,769 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 280,212 | 251,543 |
Securities available for sale | 253,014 | 228,909 |
Restricted equity securities | 0 | 0 |
Accrued interest receivable | 71 | 73 |
Financial liabilities | ||
Deposits | 2,105,951 | 1,911,928 |
Accrued interest payable | 146 | 51 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial assets | ||
Securities available for sale | 777,654 | 770,972 |
Certificates of deposit held at other financial institutions | 3,594 | 2,855 |
Securities held to maturity | 118,955 | 217,608 |
Loans held for sale | 11,103 | 12,024 |
Restricted equity securities | 0 | 0 |
Accrued interest receivable | 5,539 | 5,724 |
Financial liabilities | ||
Deposits | 1,319,326 | 1,224,041 |
Federal funds purchased and repurchase agreements | 31,004 | |
Federal Home Loan Bank advances | 366,786 | 270,311 |
Accrued interest payable | 3,866 | 2,030 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Financial assets | ||
Net loans | 2,622,386 | 2,230,607 |
Restricted equity securities | 0 | 0 |
Servicing rights, net | 4,836 | 5,089 |
Accrued interest receivable | 7,727 | 6,150 |
Financial liabilities | ||
Subordinated notes | 59,852 | 59,951 |
Accrued interest payable | $ 688 | $ 688 |
Mortgage Banking Derivatives -
Mortgage Banking Derivatives - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative [Line Items] | ||
Derivative assets | $ 206 | $ 175 |
Derivative liability | 129 | 35 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Mortgage banking derivatives | 28,731 | 21,656 |
Forward Commitments [Member] | ||
Derivative [Line Items] | ||
Mortgage banking derivatives | $ 31,519 | $ 35,566 |
Mortgage Banking Derivatives _2
Mortgage Banking Derivatives - Summary of Net Gains (Losses) Relating to Free-Standing Derivative Instruments Used for Risk Management (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Forward Contracts [Member] | |||
Derivative [Line Items] | |||
Derivative instruments | $ 94 | $ 32 | $ (37) |
Interest Rate Contract [Member] | |||
Derivative [Line Items] | |||
Derivative instruments | $ 31 | $ (54) | $ (182) |
Mortgage Banking Derivatives _3
Mortgage Banking Derivatives - Summary of Amount and Fair Value of Mortgage Banking Derivatives Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 28,731 | $ 21,656 |
Fair Value | 206 | 175 |
Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 31,519 | 35,566 |
Fair Value | $ (129) | $ (35) |
Loan Commitments and Other Re_3
Loan Commitments and Other Related Activities - Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Unused Lines of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 128,313 | $ 124,997 |
Variable Rate | 526,271 | 480,184 |
Commitments to Make Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 28,731 | 21,656 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 8,293 | 9,223 |
Variable Rate | $ 31,731 | $ 36,401 |
Loan Commitments and Other Re_4
Loan Commitments and Other Related Activities - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
Long-term Purchase Commitment [Line Items] | |
Commitments to make loans period | Over 365 days |
Fixed rate loan commitments | 2.50% |
Fixed rate loan commitments | 12.00% |
Minimum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Fixed rate loan maturity period | 1 year |
Maximum [Member] | |
Long-term Purchase Commitment [Line Items] | |
Fixed rate loan maturity period | 30 years |
Parent Company only Condensed_3
Parent Company only Condensed Financial Information - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Other assets | $ 21,799 | $ 10,940 |
Total assets | 4,249,439 | 3,843,526 |
LIABILITIES AND EQUITY | ||
Subordinated notes | 58,693 | 58,515 |
Shareholders’ equity | 372,740 | 304,550 |
Total liabilities and equity | 4,249,439 | 3,843,526 |
Franklin Financial Network, Inc. [Member] | ||
ASSETS | ||
Cash and cash equivalents | 3,364 | 5,958 |
Investment in banking subsidiary | 426,979 | 358,833 |
Investment in other subsidiaries | 1,919 | 2,393 |
Other assets | 1,617 | 235 |
Total assets | 433,879 | 367,419 |
LIABILITIES AND EQUITY | ||
Subordinated notes | 58,693 | 58,515 |
Accrued expenses and other liabilities | 2,446 | 4,354 |
Shareholders’ equity | 372,740 | 304,550 |
Total liabilities and equity | $ 433,879 | $ 367,419 |
Parent Company only Condensed_4
Parent Company only Condensed Financial Information - Condensed Statements of Income and Comprehensive Income (Detail) - 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 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest expense | $ 19,125 | $ 17,155 | $ 15,231 | $ 12,931 | $ 10,513 | $ 9,454 | $ 8,542 | $ 6,898 | $ 64,442 | $ 35,407 | $ 18,323 |
Income tax benefit | 122 | 1,068 | 2,263 | 2,459 | 8,188 | 3,138 | 3,619 | 3,586 | 5,912 | 18,531 | 11,746 |
Net income | $ 3,751 | $ 10,549 | $ 10,169 | $ 10,052 | $ 2,402 | $ 8,889 | $ 8,874 | $ 7,934 | 34,521 | 28,099 | 28,057 |
Comprehensive income | 25,966 | 29,997 | 20,895 | ||||||||
Franklin Financial Network, Inc. [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Dividends from subsidiaries | 5,925 | 4,000 | 2,050 | ||||||||
Other income | 203 | 171 | 305 | ||||||||
Interest expense | 4,328 | 4,321 | 2,902 | ||||||||
Other expense | 5,163 | 2,890 | 2,842 | ||||||||
Loss before income tax and undistributed subsidiaries income | (3,363) | (3,040) | (3,389) | ||||||||
Income tax benefit | (2,229) | (2,671) | (2,320) | ||||||||
Equity in undistributed subsidiaries income | 35,655 | 28,468 | 29,126 | ||||||||
Net income | 34,521 | 28,099 | 28,057 | ||||||||
Comprehensive income | $ 25,966 | $ 29,997 | $ 20,895 |
Parent Company only Condensed_5
Parent Company only Condensed Financial Information - Condensed Statements of Cash Flows (Detail) - 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 | |
Cash flows from operating activities | |||||||||||
Net income | $ 3,751 | $ 10,549 | $ 10,169 | $ 10,052 | $ 2,402 | $ 8,889 | $ 8,874 | $ 7,934 | $ 34,521 | $ 28,099 | $ 28,057 |
Adjustments: | |||||||||||
Amortization of debt issuance costs | 178 | 178 | 124 | ||||||||
Stock-based compensation | 6,569 | 2,802 | 1,641 | ||||||||
Net cash from operating activities | 50,307 | 55,638 | 28,196 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash acquired from acquisition (See Note 2) | 24,660 | ||||||||||
Net cash from investing activities | (219,532) | (759,628) | (741,879) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from other borrowings | 10,000 | ||||||||||
Repayment of other borrowings | (10,000) | ||||||||||
Proceeds from issuance of subordinated notes, net of issuance costs | 58,213 | ||||||||||
Proceeds from exercise of common stock warrants | 150 | 101 | |||||||||
Proceeds from exercise of common stock options | 3,047 | 1,615 | 1,571 | ||||||||
Proceeds from issuance of common stock, net of offering costs | (242) | 67,557 | |||||||||
Divestment of common stock issued to 401(k) plan | (308) | (256) | (300) | ||||||||
Redemption of Series A preferred stock | (10,000) | ||||||||||
Dividends paid on preferred stock | (23) | ||||||||||
Net cash from financing activities | 197,894 | 864,606 | 752,216 | ||||||||
Net change in cash and cash equivalents | 28,669 | 160,616 | 38,533 | ||||||||
Cash and cash equivalents at beginning of period | 251,543 | 90,927 | 251,543 | 90,927 | 52,394 | ||||||
Cash and cash equivalents at end of period | 280,212 | 251,543 | 280,212 | 251,543 | 90,927 | ||||||
Franklin Financial Network, Inc. [Member] | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | 34,521 | 28,099 | 28,057 | ||||||||
Adjustments: | |||||||||||
Equity in undistributed subsidiaries income | (35,655) | (28,468) | (29,126) | ||||||||
Amortization of debt issuance costs | 178 | 178 | 124 | ||||||||
Stock-based compensation | 1,008 | 219 | 105 | ||||||||
Change in other assets | (1,367) | 728 | (34) | ||||||||
Change in other liabilities | (1,908) | 686 | 3,058 | ||||||||
Net cash from operating activities | (3,223) | 1,442 | 2,184 | ||||||||
Cash flows from investing activities | |||||||||||
Investments in subsidiaries | (26,512) | (1,359) | (116,850) | ||||||||
Net cash acquired from acquisition (See Note 2) | 24,660 | ||||||||||
Net cash from investing activities | (1,852) | (1,359) | (116,850) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from other borrowings | 10,000 | ||||||||||
Repayment of other borrowings | (10,000) | ||||||||||
Proceeds from issuance of subordinated notes, net of issuance costs | 58,213 | ||||||||||
Proceeds from exercise of common stock warrants | 150 | 101 | |||||||||
Proceeds from exercise of common stock options | 3,047 | 1,615 | 1,571 | ||||||||
Proceeds from issuance of common stock, net of offering costs | (242) | 67,557 | |||||||||
Divestment of common stock issued to 401(k) plan | (308) | (256) | (300) | ||||||||
Redemption of Series A preferred stock | (10,000) | ||||||||||
Dividends paid on preferred stock | (16) | (23) | |||||||||
Net cash from financing activities | 2,481 | 1,509 | 117,119 | ||||||||
Net change in cash and cash equivalents | (2,594) | 1,592 | 2,453 | ||||||||
Cash and cash equivalents at beginning of period | $ 5,958 | $ 4,366 | 5,958 | 4,366 | 1,913 | ||||||
Cash and cash equivalents at end of period | $ 3,364 | $ 5,958 | 3,364 | 5,958 | 4,366 | ||||||
Non-cash supplemental information: | |||||||||||
Transfers from subsidiary stock based compensation expense to parent company only additional paid-in capital | $ 5,561 | $ 2,583 | $ 1,536 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Earnings per Share (Detail) - 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 | |
Basic | |||||||||||
Net income available to common shareholders | $ 3,743 | $ 10,549 | $ 10,161 | $ 10,052 | $ 2,394 | $ 8,889 | $ 8,866 | $ 7,934 | $ 34,505 | $ 28,083 | $ 28,034 |
Less: earnings allocated to participating securities | (372) | (219) | (284) | ||||||||
Net income allocated to common shareholders | $ 34,133 | $ 27,864 | $ 27,750 | ||||||||
Weighted average common shares outstanding including participating securities | 14,169,294 | 13,145,005 | 10,933,095 | ||||||||
Less: Participating securities | (152,638) | (102,650) | (110,628) | ||||||||
Average shares | 14,016,656 | 13,042,355 | 10,822,467 | ||||||||
Basic earnings per common share | $ 0.26 | $ 0.73 | $ 0.71 | $ 0.76 | $ 0.18 | $ 0.67 | $ 0.68 | $ 0.61 | $ 2.44 | $ 2.14 | $ 2.56 |
Diluted | |||||||||||
Net income allocated to common shareholders | $ 34,133 | $ 27,864 | $ 27,750 | ||||||||
Weighted average common shares outstanding for basic earnings per common share | 14,016,656 | 13,042,355 | 10,822,467 | ||||||||
Add: Dilutive effects of assumed exercises of stock options | 540,302 | 633,738 | 655,485 | ||||||||
Add: Dilutive effects of assumed exercises of stock warrants | 1,578 | 12,667 | |||||||||
Average shares and dilutive potential common shares | 14,556,958 | 13,677,671 | 11,490,619 | ||||||||
Dilutive earnings per common share | $ 0.25 | $ 0.70 | $ 0.68 | $ 0.73 | $ 0.17 | $ 0.65 | $ 0.64 | $ 0.58 | $ 2.34 | $ 2.04 | $ 2.42 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Average stock options to purchase shares of the Company's common stock | 546,325 | 285,706 | 165,232 |
Capital Offering - Additional I
Capital Offering - Additional Information (Detail) - Secondary Public Offering [Member] | Nov. 21, 2016$ / sharesshares |
Equity [Line Items] | |
Offering price per share in private placement | $ / shares | $ 32 |
Common shares issued | shares | 2,242,500 |
Capital Offering - Schedule of
Capital Offering - Schedule of Net Proceeds (Detail) - Secondary Public Offering [Member] $ in Thousands | Nov. 21, 2016USD ($) |
Equity [Line Items] | |
Gross proceeds | $ 71,760 |
Less: Stock offering costs | (4,203) |
Net proceeds from issuance of common stock | $ 67,557 |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) - Summary of Selected Consolidated Quarterly Financial Data (Detail) - 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 | |
Income Statement Data ($): | |||||||||||
Interest income | $ 46,045 | $ 43,717 | $ 42,136 | $ 38,047 | $ 35,121 | $ 33,780 | $ 33,011 | $ 30,541 | $ 169,945 | $ 132,453 | $ 99,907 |
Interest expense | 19,125 | 17,155 | 15,231 | 12,931 | 10,513 | 9,454 | 8,542 | 6,898 | 64,442 | 35,407 | 18,323 |
Net interest income | 26,920 | 26,562 | 26,905 | 25,116 | 24,608 | 24,326 | 24,469 | 23,643 | 105,503 | 97,046 | 81,584 |
Provision for loan losses | 975 | 136 | 570 | 573 | 1,295 | 590 | 573 | 1,855 | 2,254 | 4,313 | 5,240 |
Noninterest income | (383) | 3,442 | 4,147 | 3,456 | 3,264 | 3,569 | 3,880 | 4,008 | 10,662 | 14,721 | 15,140 |
Noninterest expense | 21,689 | 18,251 | 18,050 | 15,488 | 15,987 | 15,278 | 15,283 | 14,276 | 73,478 | 60,824 | 51,681 |
Income before income tax expense | 3,873 | 11,617 | 12,432 | 12,511 | 10,590 | 12,027 | 12,493 | 11,520 | 40,433 | 46,630 | 39,803 |
Income tax expense | 122 | 1,068 | 2,263 | 2,459 | 8,188 | 3,138 | 3,619 | 3,586 | 5,912 | 18,531 | 11,746 |
Net income | 3,751 | 10,549 | 10,169 | 10,052 | 2,402 | 8,889 | 8,874 | 7,934 | 34,521 | 28,099 | 28,057 |
Net income available to common shareholders | $ 3,743 | $ 10,549 | $ 10,161 | $ 10,052 | $ 2,394 | $ 8,889 | $ 8,866 | $ 7,934 | $ 34,505 | $ 28,083 | $ 28,034 |
Earnings per share, basic | $ 0.26 | $ 0.73 | $ 0.71 | $ 0.76 | $ 0.18 | $ 0.67 | $ 0.68 | $ 0.61 | $ 2.44 | $ 2.14 | $ 2.56 |
Earnings per share, diluted | $ 0.25 | $ 0.70 | $ 0.68 | $ 0.73 | $ 0.17 | $ 0.65 | $ 0.64 | $ 0.58 | $ 2.34 | $ 2.04 | $ 2.42 |