Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 06, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-36895 | ||
Entity Registrant Name | FRANKLIN FINANCIAL NETWORK, INC. | ||
Entity Incorporation, State or Country Code | TN | ||
Entity Tax Identification Number | 20-8839445 | ||
Entity Address, Address Line One | 722 Columbia Avenue | ||
Entity Address, City or Town | Franklin | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 37064 | ||
City Area Code | 615 | ||
Local Phone Number | 236-2265 | ||
Title of 12(b) Security | Common Stock, no par value per share | ||
Trading Symbol | FSB | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 431,382,862 | ||
Entity Common Stock, Shares Outstanding | 14,859,704 | ||
Documents Incorporated by Reference | None. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001407067 | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from financial institutions | $ 234,991 | $ 280,212 |
Certificates of deposit at other financial institutions | 3,590 | 3,594 |
Securities available for sale | 652,132 | 1,030,668 |
Securities held to maturity (fair value 2019—$0 and 2018—$118,955) | 0 | 121,617 |
Loans held for sale, at fair value | 43,162 | 11,103 |
Loans held for investment, net of deferred fees | 2,812,444 | 2,672,399 |
Allowance for loan losses | 45,436 | 23,451 |
Net loans | 2,767,008 | 2,648,948 |
Restricted equity securities, at cost | 24,802 | 21,831 |
Premises and equipment, net | 12,141 | 12,371 |
Accrued interest receivable | 12,362 | 13,337 |
Bank owned life insurance | 56,726 | 55,239 |
Deferred tax asset | 14,229 | 13,189 |
Servicing rights, net | 3,246 | 3,403 |
Goodwill | 18,176 | 18,176 |
Core deposit intangible, net | 448 | 952 |
Other assets | 53,149 | 14,799 |
Total assets | 3,896,162 | 4,249,439 |
Deposits | ||
Non-interest bearing | 319,373 | 290,580 |
Interest bearing | 2,888,211 | 3,141,227 |
Total deposits | 3,207,584 | 3,431,807 |
Federal Home Loan Bank advances | 155,000 | 368,500 |
Subordinated notes, net | 58,872 | 58,693 |
Accrued interest payable | 4,201 | 4,700 |
Other liabilities | 60,079 | 12,906 |
Total liabilities | 3,485,736 | 3,876,606 |
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, 2019 and December 31, 2018 | 0 | 0 |
Common stock, no par value: 30,000,000 shares authorized; 14,848,017 issued and 14,821,594 outstanding at December 31, 2019, and 14,538,085 issued and outstanding at December 31, 2018 | 275,412 | 264,905 |
Retained earnings | 133,102 | 123,176 |
Accumulated other comprehensive income (loss) | 1,819 | (15,341) |
Total shareholders’ equity | 410,333 | 372,740 |
Noncontrolling interest in consolidated subsidiary | 93 | 93 |
Total equity | 410,426 | 372,833 |
Total liabilities and equity | $ 3,896,162 | $ 4,249,439 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | $ 0 | $ 118,955,000 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Common stock shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock shares issued (in shares) | 14,848,017 | 14,538,085 |
Common stock, shares, outstanding (in shares) | 14,821,594 | 14,538,085 |
Senior Non-cumulative Preferred Stock | ||
Preferred stock, liquidation value | $ 10,000 | $ 10,000 |
Series A | ||
Preferred stock, shares authorized (in shares) | 10,000 | 10,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income and dividends | |||
Loans, including fees | $ 157,225 | $ 131,918 | $ 100,470 |
Securities: | |||
Taxable | 17,462 | 26,533 | 21,309 |
Tax-exempt | 5,559 | 7,384 | 8,593 |
Dividends on restricted equity securities | 1,213 | 1,243 | 928 |
Federal funds sold and other | 3,233 | 2,867 | 1,153 |
Total interest income | 184,692 | 169,945 | 132,453 |
Interest expense | |||
Deposits | 61,298 | 53,326 | 27,464 |
Federal funds purchased and repurchase agreements | 290 | 419 | 407 |
Federal Home Loan Bank advances | 7,616 | 6,369 | 3,215 |
Subordinated notes and other borrowings | 4,328 | 4,328 | 4,321 |
Total interest expense | 73,532 | 64,442 | 35,407 |
Net interest income | 111,160 | 105,503 | 97,046 |
Provision for loan losses | 32,047 | 2,254 | 4,313 |
Net interest income after provision for loan losses | 79,113 | 103,249 | 92,733 |
Noninterest income | |||
Gain (loss) on sales and calls of securities | 2,043 | (4,160) | 896 |
Net (loss) gain on sale of loans held for investment | (2,003) | 0 | 226 |
Total noninterest income | 17,775 | 10,662 | 14,721 |
Noninterest expense | |||
Salaries and employee benefits | 50,813 | 43,837 | 35,268 |
Occupancy and equipment | 13,069 | 11,628 | 9,219 |
FDIC assessment expense | 1,843 | 3,448 | 3,680 |
Marketing | 1,189 | 1,092 | 965 |
Professional fees | 4,356 | 4,413 | 3,419 |
Amortization of core deposit intangible | 504 | 612 | 473 |
Other | 10,105 | 8,448 | 7,800 |
Total noninterest expense | 81,879 | 73,478 | 60,824 |
Income before income tax expense | 15,009 | 40,433 | 46,630 |
Income tax expense | 187 | 5,912 | 18,531 |
Net income | 14,822 | 34,521 | 28,099 |
Earnings attributable to noncontrolling interest | (16) | (16) | (16) |
Net income available to common shareholders | $ 14,806 | $ 34,505 | $ 28,083 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.01 | $ 2.44 | $ 2.14 |
Diluted (in dollars per share) | $ 0.98 | $ 2.34 | $ 2.04 |
Service charges on deposit accounts | |||
Noninterest income | |||
Noninterest income | $ 317 | $ 217 | $ 154 |
Other Service Charges and Fees | |||
Noninterest income | |||
Noninterest income | 3,724 | 3,183 | 3,039 |
Mortgage banking service | |||
Noninterest income | |||
Loan servicing fees | 9,154 | 6,696 | 6,892 |
Wealth management | |||
Noninterest income | |||
Noninterest income | 2,880 | 2,969 | 2,613 |
Net gain on sale of foreclosed assets | |||
Noninterest income | |||
Noninterest income | 7 | 91 | (7) |
Other | |||
Noninterest income | |||
Noninterest income | $ 1,653 | $ 1,666 | $ 908 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Income tax (benefit) expense from sales of securities | $ 534 | $ (1,087) | $ 351 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Common Stock | |
Common stock cash dividends paid (in dollars per share) | $ 0.18 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net income | $ 14,822 | $ 34,521 | $ 28,099 |
Adjustments to reconcile net income to net cash from operating activities | |||
Depreciation and amortization on premises and equipment | 1,800 | 1,713 | 1,482 |
Accretion of purchase accounting adjustments | (700) | (1,338) | (1,078) |
Net amortization of securities | 6,876 | 8,083 | 10,129 |
Amortization of loan servicing right asset | 1,289 | 867 | 934 |
Amortization of core deposit intangible | 504 | 612 | 473 |
Amortization of debt issuance costs | 179 | 178 | 178 |
Provision for loan losses | 32,047 | 2,254 | 4,313 |
Deferred income tax (benefit) | (6,957) | 197 | 3,785 |
Excess tax benefit related to share-based compensation | (86) | (565) | (484) |
Origination of loans held for sale | (655,546) | (278,559) | (357,983) |
Proceeds from sale of loans held for sale | 631,572 | 285,116 | 378,469 |
Loss (gain) on sale of loans held for investment | 2,003 | 0 | (226) |
Gain on sale of loans held for sale | (9,217) | (6,286) | (6,779) |
(Gain) loss on sale of available for sale securities | (2,043) | 4,160 | (896) |
Income from bank owned life insurance | (1,487) | (1,535) | (818) |
(Gain) loss on sale of foreclosed assets | 0 | (81) | 20 |
Stock-based compensation | 5,917 | 6,569 | 2,802 |
Recognition of deferred gain on sale of loans | (15) | (15) | (58) |
Recognition of deferred gain on sale of foreclosed assets | (14) | (10) | (14) |
Net change in: | |||
Accrued interest receivable and other assets | 6,597 | (8,212) | (9,536) |
Accrued interest payable and other liabilities | (3,730) | 2,638 | 2,826 |
Net cash from operating activities | 23,811 | 50,307 | 55,638 |
Available for sale securities: | |||
Sales | 582,950 | 176,016 | 240,175 |
Purchases | (208,661) | (474,163) | (664,894) |
Maturities, prepayments and calls | 145,203 | 359,859 | 175,457 |
Held to maturity securities: | |||
Purchases | (4,909) | (3,347) | (4,266) |
Maturities, prepayments and calls | 8,116 | 11,999 | 16,326 |
Net change in loans | 228,259 | 311,118 | 487,060 |
Proceeds from sale of loans held for investment | 76,849 | 0 | 0 |
Purchase of bank owned life insurance | 0 | (119) | (25,000) |
Purchase of restricted equity securities | (2,971) | (2,463) | (6,649) |
Proceeds from sale of foreclosed assets | 0 | 1,934 | 1,330 |
Purchases of premises and equipment, net | (1,569) | (2,551) | (3,212) |
Decrease (increase) in certificates of deposits at other financial institutions | 4 | (239) | (1,800) |
Net cash acquired from acquisition (See Note 2) | 0 | 24,660 | 0 |
Capitalization of foreclosed assets | 0 | 0 | (35) |
Net cash from investing activities | 366,753 | (219,532) | (759,628) |
Cash flows from financing activities | |||
(Decrease) Increase in deposits | (224,223) | 141,417 | 775,410 |
Increase (decrease) in federal funds purchased and repurchase agreements | 0 | (31,004) | (52,297) |
Proceeds from Federal Home Loan Bank advances | 525,000 | 450,000 | 380,000 |
Repayment of Federal Home Loan Bank advances | (738,500) | (365,000) | (240,000) |
Proceeds from exercise of common stock warrants | 0 | 0 | 150 |
Proceeds from exercise of common stock options | 5,307 | 3,047 | 1,615 |
Proceeds from issuance of common stock, net of offering costs | 0 | (242) | 0 |
Divestment of stock issued to 401(k) plan | 0 | (308) | (256) |
Purchase of treasury stock | (717) | 0 | 0 |
Noncontrolling interest distributions | (2,636) | 0 | 0 |
Noncontrolling interest distributions | (16) | (16) | (16) |
Net cash from financing activities | (435,785) | 197,894 | 864,606 |
Net change in cash and cash equivalents | (45,221) | 28,669 | 160,616 |
Cash and cash equivalents at beginning of period | 280,212 | 251,543 | 90,927 |
Cash and cash equivalents at end of period | 234,991 | 280,212 | 251,543 |
Supplemental information: | |||
Interest paid | 74,031 | 63,847 | 34,562 |
Income taxes paid | 9,994 | 10,892 | 15,680 |
Non-cash supplemental information: | |||
Fair value of stock and stock options issued related to Civic Bank acquisition (See FN 2) | 0 | 33,174 | 0 |
Transfers from loans to foreclosed assets | 0 | 350 | 2,818 |
Transfers from Held to Maturity to Available for Sale | 116,203 | $ 83,501 | $ 0 |
Establishment of lease liability and right of use asset | $ 43,723 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 14,822 | $ 34,521 | $ 28,099 |
Unrealized gains/losses on securities: | |||
Unrealized holding gains (losses) arising during the period | 26,713 | (15,739) | 4,015 |
Reclassification adjustment for (gains) losses on sales, calls, and prepayments of securities included in net income | (2,043) | 4,160 | (896) |
Tax effect, includes $534, $(1,087), and $351, respectively, income tax (benefit) expense from sales of securities | (6,334) | 3,024 | (1,221) |
Net unrealized gains (losses) on securities | 18,336 | (8,555) | 1,898 |
Unrealized gains/losses on cash flow hedge: | |||
Unrealized holding gain (loss) arising during the period | (1,592) | 0 | 0 |
Tax effect | 416 | 0 | 0 |
Net unrealized gains (losses) on cash flow hedge | (1,176) | 0 | 0 |
Total other comprehensive income (loss) | 17,160 | (8,555) | 1,898 |
Comprehensive income | $ 31,982 | $ 25,966 | $ 29,997 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2016 | 0 | 13,036,954 | ||||
Beginning balance at Dec. 31, 2016 | $ 270,361 | $ 218,354 | $ 59,386 | $ (7,482) | $ 103 | |
Exercise of common stock options, includes net settlement of shares (in shares) | 166,894 | |||||
Exercise of common stock options, includes net settlement of shares | 1,615 | $ 1,615 | ||||
Exercise of common stock warrants (in shares) | 12,461 | |||||
Exercise of common stock warrants | 150 | $ 150 | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 26,718 | |||||
Issuance of restricted stock, net of forfeitures | 0 | |||||
Stock based compensation expense, net of forfeitures | 2,802 | $ 2,802 | ||||
Reclassification of disproportionate tax effect | 0 | 1,202 | (1,202) | |||
Stock issued in conjunction with 401 (k) employer match, net of distributions (in shares) | (5,899) | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions | 256 | $ 256 | ||||
Net income | 28,099 | 28,099 | ||||
Earnings attributable to noncontrolling interest | (16) | (16) | ||||
Other comprehensive loss | 1,898 | 1,898 | ||||
Ending balance (in shares) at Dec. 31, 2017 | 0 | 13,237,128 | ||||
Ending balance at Dec. 31, 2017 | 304,653 | $ 222,665 | 88,671 | (6,786) | 103 | |
Exercise of common stock options, includes net settlement of shares (in shares) | 216,400 | |||||
Exercise of common stock options, includes net settlement of shares | 3,047 | $ 3,047 | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 122,469 | |||||
Issuance of restricted stock, net of forfeitures | 0 | |||||
Stock based compensation expense, net of forfeitures | 6,569 | $ 6,569 | ||||
Stock issued in conjunction with 401 (k) employer match, net of distributions (in shares) | (8,302) | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions | 308 | $ 308 | ||||
Stock issued for acquisition, net of issuance costs (in shares) | (970,390) | |||||
Stock issued for acquisition, net of issuance costs | (32,932) | $ (32,932) | ||||
Net income | 34,521 | 34,521 | ||||
Earnings attributable to noncontrolling interest | (16) | (16) | ||||
Reclassification of issuance costs on preferred stock of consolidated subsidiary noncontrolling interest | (10) | (10) | ||||
Other comprehensive loss | (8,555) | (8,555) | ||||
Ending balance (in shares) at Dec. 31, 2018 | 0 | 14,538,085 | ||||
Ending balance at Dec. 31, 2018 | 372,833 | $ 264,905 | 123,176 | (15,341) | 93 | |
Exercise of common stock options, includes net settlement of shares (in shares) | 307,855 | |||||
Exercise of common stock options, includes net settlement of shares | 5,307 | $ 5,307 | ||||
Issuance of restricted stock, net of forfeitures (in shares) | 3,074 | |||||
Issuance of restricted stock, net of forfeitures | 0 | |||||
Stock based compensation expense, net of forfeitures | 5,917 | $ 5,917 | ||||
Stock issued in conjunction with 401 (k) employer match, net of distributions (in shares) | (997) | |||||
Stock issued in conjunction with 401(k) employer match, net of distributions | 0 | |||||
Purchase of treasury stock (in shares) | (26,423) | |||||
Purchase of treasury stock | (717) | $ (717) | ||||
Cash dividends - Common stock ($0.18 per share) | (2,636) | (2,636) | ||||
Net income | 14,822 | 14,822 | ||||
Earnings attributable to noncontrolling interest | (16) | (16) | ||||
Other comprehensive loss | 17,160 | 17,160 | ||||
Ending balance (in shares) at Dec. 31, 2019 | 0 | 14,821,594 | ||||
Ending balance at Dec. 31, 2019 | $ 410,426 | $ 275,412 | $ 133,102 | $ 1,819 | $ 93 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations and Principles of Consolidation : The consolidated financial statements include Franklin Financial Network, Inc. ("FFN") and its wholly-owned subsidiaries, Franklin Synergy Bank (the “Bank”) and Franklin Synergy Risk Management, Inc., together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation. The Company was incorporated under the laws of the State of Tennessee on April 5, 2007. The Bank 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. The Bank 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 in the notes of the consolidated financial statements. On January 21, 2020, FFN, FB Financial Corporation, a Tennessee corporation (“FB Financial”), and Paisley Acquisition Corporation, a Tennessee corporation and a direct, wholly-owned subsidiary of FB Financial (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which, on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into FFN, with FFN continuing as the surviving corporation (the “Merger”). Immediately following the Merger, FFN will merge with and into FB Financial, with FB Financial continuing as the surviving corporation (the “Upstream Merger”). Immediately following the Upstream Merger, FSB will merge with and into FirstBank, a Tennessee state-chartered bank and a wholly owned subsidiary of FB Financial (“FirstBank”), with FirstBank continuing as the surviving bank (the “Bank Merger,” and, together with the Merger and the Upstream Merger, the “Mergers”). Under the terms and subject to the conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of the common stock, no par value (the “FFN Common Stock”), issued and outstanding immediately prior to the Effective Time (except for certain shares of FFN Common Stock owned by FFN as treasury stock or by FB Financial, as provided in the Merger Agreement) will be converted, in accordance with the procedures set forth in the Merger Agreement, into the right to receive, without interest, (1) 0.9650 shares (the “Exchange Ratio”) of common stock, par value $1.00 per share, of FB Financial (“FB Financial Common Stock”) and (2) $2.00 in cash (the “Per Share Cash Consideration” and, collectively with the FB Financial Common Stock to be issued pursuant to the preceding clause (1), the “Merger Consideration”). The completion of the Mergers is subject to customary conditions, including (i) receipt of FFN shareholder approval and FB Financial shareholder approval, (ii) authorization for listing on the New York Stock Exchange of the shares of FB Financial Common Stock to be issued in the Merger, (iii) the receipt of required regulatory approvals, including the approval of the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Tennessee Department of Financial Institutions, (iv) effectiveness of the registration statement on Form S-4 for the FB Financial Common Stock to be issued in the Merger, and (v) the absence of any order, injunction or other legal restraint preventing or making illegal the completion of the Merger or any of the other transactions contemplated by the Merger Agreement. Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities under 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and federal funds purchased. Interest-Bearing Deposits in Financial Institutions : Interest-bearing deposits in other financial institutions are carried at cost. Securities : Debt securities were classified as held to maturity (HTM) and carried at amortized cost when management had the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale (AFS) when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. 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, 2019, 2018 or 2017. Loans Held for Sale : Loans originated and intended for sale in the secondary market are carried at fair value as of the balance sheet date as determined by outstanding commitments from investors and includes the servicing value of the loans. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. 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 that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on mortgage loans and loans held for investment 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. The banking agencies define a “Shared National Credit” (“SNC”) as any loan extended to a borrower which aggregates $100 million or more and is shared by three or more banks. The SNC portfolio totaled $136,658 at December 31, 2019, decreasing 45.1% from $249,033 at December 31, 2018, driven by the sales and paydowns of $112,375 of SNCs during 2019. The entire outstanding balance of SNCs was included in the commercial and industrial portfolio. To meet the needs of our customers, SNC participations are entered into during the normal course of business and are reviewed at least quarterly for credit quality. Concentration of Credit Risk : Most of the Company’s business activity is with customers located within Williamson County, Davidson County, and Rutherford County; therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in the Williamson County, Davidson County, and Rutherford County areas. The Company believes there are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. Purchased Credit Impaired (PCI) Loans : The Company purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. 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 for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. 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 (TDRs) 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. TDRs are individually evaluated for impairment disclosures and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR 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 : When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of loans. Fair value is based on market prices for comparable servicing contracts. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. 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 are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Foreclosed Assets : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. Premises and Equipment : Premises and equipment are stated at cost less accumulated depreciation and are depreciated using the straight-line method. Depreciation periods are shorter of the asset’s useful life or lease period, ranging from three Restricted Equity Securities : The Bank is a member of the Federal Reserve Bank (FRB) and the FHLB system. Members of the FRB and FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The stock ownership in FRB and FHLB are carried at cost, classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. Company Owned Life Insurance/Bank Owned Life Insurance : The Company and the Bank have purchased life insurance policies on certain key executives. Company owned life insurance/bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Goodwill and Other Intangible Assets : Goodwill is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the balance sheet. 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 : Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. Loan Commitments and Related Financial Instruments : Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Mortgage Banking Derivatives : Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sale of mortgage loans. Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) as instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedged accounting are reported currently in earnings, as noninterest income. Net settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows on the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing bases, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted traction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. The Company is exposed to losses if a counterparty fails to make its payments under a contract in which the Company is in the net receiving position. The Company anticipates that the counterparties will be able to fully satisfy their obligations under the agreements. All the contracts to which the Company is a party settle monthly or quarterly. In addition, the Company obtains collateral above certain thresholds of the fair value of its hedges for each counterparty based upon their credit standing and the Company has netting agreements with the dealers with which it does business. Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period, reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. All excess tax benefits and tax deficiencies related to share-based payment awards are recognized as income tax expense or benefit in the income statement during the period in which they occur. Income Taxes : Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. Accordingly, 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 as of December 31, 2017. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. 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 : Employee 401(k) and profit sharing plan expense is the amount of matching contributions. The matching contributions are paid with employer stock. Comprehensive Income (Loss) : Comprehensive income (loss) consists of the total of all components of comprehensive income (loss) including net income (loss). Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income (loss) but excluded from net income (loss). Currently, the Company's other comprehensive income (loss) consists primarily of unrealized gains and losses on securities available for sale, net of deferred tax expense (benefit) and unrealized gains (losses) on derivative hedging relations. Earnings Per Common Share : Basic earnings per common share is net income available to common shareholders divided by the weighted average number of common shares outstanding d |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | NOTE 2—BUSINESS COMBINATIONS As of April 1, 2018, Civic Bank & Trust merged with and into the Bank with the Bank continuing as the surviving company. Under the terms of the acquisition, Civic’s common shareholders received a total of 970,390 shares of the FFN'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. At December 31, 2019, there were no circumstances or significant changes that have occurred in 2019 related to the acquisition of Civic that, in management's assessment, would necessitate recording impairment of goodwill. 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. Because the Civic transaction closed on April 1, 2018, and its actual results are included in the Company’s actual operating results for the year ended December 31, 2019, there is no pro forma information for that period. 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, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | NOTE 3 - SECURITIES The Bank started in 2018 and continued in 2019 the planned balance sheet rotation strategy to re-deploy lower-yielding securities into higher-yielding assets. In 2019 the Bank reduced the combined securities portfolio by $500,153, or 43.4%. The following table summarizes the amortized cost and fair value of the AFS securities portfolio at December 31, 2019 and 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss. Amortized Gross Gross Fair December 31, 2019 Mortgage-backed securities: residential $ 374,923 $ 1,876 $ (856) $ 375,943 Mortgage-backed securities: commercial 17,858 56 (134) 17,780 Corporate Notes 32,825 539 (3) 33,361 State and political subdivisions 222,624 2,566 (142) 225,048 Total $ 648,230 $ 5,037 $ (1,135) $ 652,132 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 Due to the continued decline in interest rates, during the third quarter of 2019, the Company elected to transfer its HTM securities portfolio to the AFS portfolio to provide more opportunities to reposition the portfolio. At the time of transfer, the securities had an amortized cost of $117,409 and a fair value of $121,964. In 2018 there, were 16 bonds transferred 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. There were no HTM securities at December 31, 2019. There were no calls of HTM securities during 2019, or 2018. The amortized cost and fair value of the HTM securities portfolio at December 31, 2018 and the corresponding amounts of gross unrecognized gains and losses were as follows: Amortized Gross Gross Fair 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 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: 2019 2018 2017 Proceeds from sales $ 582,950 $ 176,016 $ 240,175 Gross gains 6,074 54 1,553 Gross losses (4,031) (4,214) (657) 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, 2019 Amortized Fair Available for sale Three months or less $ — $ — Over three months through one year — — Over one year through five years 1,609 1,641 Over five years through ten years 37,406 37,918 Over ten years 216,434 218,850 Mortgage-backed securities: residential 374,923 375,943 Mortgage-backed securities: commercial 17,858 17,780 Total $ 648,230 $ 652,132 Securities pledged at December 31, 2019 and 2018 had a carrying amount of $294,585 and $939,440, respectively, and were pledged to secure public deposits and repurchase agreements. At December 31, 2019 and 2018, 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. The following table summarizes the securities with unrealized and unrecognized losses at December 31, 2019 and 2018, 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 Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Available for sale Mortgage-backed securities: residential $ 49,390 $ (172) $ 91,644 $ (684) $ 141,034 $ (856) Mortgage-backed securities: commercial 4,436 (29) 7,286 (105) 11,722 (134) Corporate notes 997 (3) — — 997 (3) State and political subdivisions 29,843 (142) — — 29,843 (142) Total available for sale $ 84,666 $ (346) $ 98,930 $ (789) $ 183,596 $ (1,135) Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized 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) Mortgage-backed securities: commercial 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 December 31, 2018 Fair Unrecognized Fair Unrecognized Fair Unrecognized 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) Unrealized losses on debt securities have not been recognized into income because the issuers' bonds are of high credit quality. As of December 31, 2019, management does not intend to sell, and it is more likely than not , 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 converge to par as the bonds approach maturity. At December 31, 2019, the Company had 56 AFS securities in an unrealized loss position and no 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, 2018. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS | NOTE 4 - LOANS Loans at December 31, 2019 and 2018 were as follows: December 31, December 31, Loans Construction and land development $ 591,541 $ 584,440 Commercial real estate: Nonfarm, nonresidential 944,021 754,243 Other 49,891 51,017 Residential real estate: Closed-end 1-4 family 455,920 493,065 Other 187,681 189,817 Commercial and industrial 582,641 596,793 Consumer and other 4,769 5,568 Loans before net deferred loan fees 2,816,464 2,674,943 Deferred loan fees, net (4,020) (2,544) Total loans 2,812,444 2,672,399 Allowance for loan losses (45,436) (23,451) Total loans, net of allowance for loan losses $ 2,767,008 $ 2,648,948 The following table presents the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2019, 2018 and 2017: Construction Commercial Residential Commercial Consumer Total December 31, 2019 Allowance for loan losses: Beginning balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Provision for loan losses 172 1,388 (281) 30,732 36 32,047 Loans charged-off (68) — (15) (10,227) (147) (10,457) Recoveries — — 15 286 94 395 Total ending allowance balance $ 4,847 $ 8,113 $ 4,462 $ 27,957 $ 57 $ 45,436 Construction Commercial Residential Commercial Consumer 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 Commercial Residential Commercial Consumer 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 For the years ended December 31, 2019 and 2018, there was $22 and $0 in allowance for loan losses for PCI loans, respectively. 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, 2019 and 2018. 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 Commercial Residential Commercial Consumer Total December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ 17 $ 20,754 $ — $ 20,771 Collectively evaluated for impairment 4,847 8,113 4,445 7,203 57 24,665 Total ending allowance balance $ 4,847 $ 8,113 $ 4,462 $ 27,957 $ 57 $ 45,436 Loans: Individually evaluated for impairment $ 30 $ — $ 2,477 $ 24,528 $ — $ 27,035 Collectively evaluated for impairment 591,511 993,912 641,124 558,113 4,769 2,789,429 Total ending loans balance $ 591,541 $ 993,912 $ 643,601 $ 582,641 $ 4,769 $ 2,816,464 Construction Commercial Residential Commercial Consumer 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 582,142 805,260 679,693 596,626 5,568 2,669,289 Total ending loans balance $ 584,440 $ 805,260 $ 682,882 $ 596,793 $ 5,568 $ 2,674,943 Loans collectively evaluated for impairment reported at December 31, 2019 include certain loans acquired from MidSouth and Civic. The acquired loans were recorded at estimated fair value at date of acquisition, which included estimated credit and interest rate discount components. As of December 31, 2019, these non-PCI loans had a carrying value of $58,745, comprised of contractually unpaid principal totaling $59,471 and discounts totaling $726. Management evaluated these loans for credit deterioration since acquisition and determined that a $77 allowance for loan losses was necessary at December 31, 2019. The following table presents information related to impaired loans by class of loans as of December 31, 2019 and 2018: Unpaid Recorded Allowance for December 31, 2019 With no allowance recorded: Construction and land development $ 30 $ 30 $ — Residential real estate: Closed-end 1-4 family 319 311 — Other 1,523 1,523 — Commercial and industrial 11 11 — Subtotal 1,883 1,875 — With an allowance recorded: Residential real estate: Closed-end 1-4 family 643 643 17 Commercial and industrial 24,517 24,517 20,754 Subtotal 25,160 25,160 20,771 Total $ 27,043 $ 27,035 $ 20,771 December 31, 2018 With no allowance recorded: Construction and land development $ 2,298 $ 2,298 $ — Residential real estate: Closed-end 1-4 family 1,280 1,272 — Other 1,917 1,917 — Subtotal 5,495 5,487 — With an allowance recorded: Commercial and industrial 167 167 17 Subtotal 167 167 17 Total $ 5,662 $ 5,654 $ 17 The following table presents the average recorded investment of impaired loans by class of loans for the years ended December 31, 2019, 2018 and 2017: Average Recorded Investment 2019 2018 2017 With no allowance recorded: Construction and land development $ 301 $ 378 $ 921 Commercial real estate: Nonfarm, nonresidential 13 — 1,796 Residential real estate: Closed-end 1-4 family 587 715 649 Other 1,286 553 331 Commercial and industrial 670 655 899 Consumer and other — — 1 Subtotal 2,857 2,301 4,597 With an allowance recorded: Construction and land development 147 — — Commercial real estate Nonfarm, nonresidential 40 0 0 Residential real estate: Closed-end 1-4 family 56 — 22 Commercial and industrial 4,403 993 2,480 Subtotal 4,646 993 2,502 Total $ 7,503 $ 3,294 $ 7,099 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, 2019, 2018 and 2017. 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, 2019 and 2018: Nonaccrual Loans Past Due December 31, 2019 Construction loans $ 30 $ — Residential real estate: Closed-end 1-4 family 954 — Other 1,523 — Commercial and industrial 24,528 654 Total $ 27,035 $ 654 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 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. Nonaccrual loans and loans past due over 90 days still on accrual increased $21,993 as of December 31, 2019, mainly due to two commercial and industrial lending relationships that were downgraded during the subsequent events period that exists between December 31, 2019 and the filing of this document. The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 and 2018 by class of loans: 30-59 60-89 Greater Total Loans Total December 31, 2019 Construction and land development $ 508 $ — $ 30 $ 538 $ 591,003 $ 591,541 Commercial real estate: Nonfarm, nonresidential 3,981 — — 3,981 940,040 944,021 Other — — — — 49,891 49,891 Residential real estate: Closed-end 1-4 family 2,688 224 8 2,920 453,000 455,920 Other 85 961 555 1,601 186,080 187,681 Commercial and industrial 663 7,156 735 8,554 574,087 582,641 Consumer and other — — — — 4,769 4,769 $ 7,925 $ 8,341 $ 1,328 $ 17,594 $ 2,798,870 $ 2,816,464 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 — — — — 51,017 51,017 Residential real estate: Closed-end 1-4 family 2,390 404 228 3,022 490,043 493,065 Other 142 — 1,810 1,952 187,865 189,817 Commercial and industrial 241 252 208 701 596,092 596,793 Consumer and other — — — — 5,568 5,568 $ 3,582 $ 2,642 $ 2,794 $ 9,018 $ 2,665,925 $ 2,674,943 Credit Quality Indicators: 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 Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the 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. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. 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 excludes deferred loan fees and 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, 2019 and 2018: Pass Special Substandard Total December 31, 2019 Construction and land development $ 591,293 $ 248 $ — $ 591,541 Commercial real estate: Nonfarm, nonresidential 941,260 997 1,764 944,021 Other 49,891 — — 49,891 Residential real estate: Closed-end 1-4 family 452,363 825 2,732 455,920 Other 185,170 — 2,511 187,681 Commercial and industrial 539,442 943 42,256 582,641 Consumer and other 4,769 — — 4,769 $ 2,764,188 $ 3,013 $ 49,263 $ 2,816,464 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 51,017 — — 51,017 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 557,589 8,313 30,891 596,793 Consumer and other 5,567 1 — 5,568 $ 2,610,376 $ 25,856 $ 38,711 $ 2,674,943 At December 31, 2019, the Bank realized a $12,291 decrease in classified and criticized loans compared to December 31, 2018. Commercial real estate nonfarm, nonresidential loans decreased $12,013, and commercial and industrial loans increased $3,995 from December 31, 2018. Troubled Debt Restructurings As of December 31, 2019, the Company’s loan portfolio contains one loan in the amount of $311 that has been modified in a troubled debt restructuring during the year ended December 31, 2019. There was one loan in the amount of $167 that was modified in troubled debt restructurings during the year ended December 31, 2018. |
LOAN SERVICING
LOAN SERVICING | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 are as follows: 2019 2018 Loan portfolios serviced for: Federal Home Loan Mortgage Corporation $ 488,790 $ 492,761 Federal National Mortgage Association 10,221 — Other 3,504 3,689 Custodial escrow balances maintained in connection with serviced loans were $2,423 and $2,588 at year-end 2019 and 2018. The related loan servicing rights activity for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Servicing rights: Beginning of year $ 3,403 $ 3,620 $ 3,621 Additions 1,132 650 933 Amortized to expense (1,289) (867) (934) End of year $ 3,246 $ 3,403 $ 3,620 The components of net loan servicing fees for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Loan servicing fees, net: Loan servicing fees $ 1,261 $ 1,308 $ 1,270 Amortization of loan servicing fees (1,289) (867) (934) Total $ (28) $ 441 $ 336 The fair value of servicing rights was estimated by management to be approximately $3,922 at December 31, 2019. Fair value for 2019 was determined using a weighted average discount rate of 9.5% and a weighted average prepayment speed of 16.8%. At December 31, 2018, the fair value of servicing rights was estimated by management to be approximately $4,836. Fair value for 2018 was determined a using weighted average discount rate of 9.5% and a weighted average prepayment speed of 11.9%. |
PREMISES AND EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Premises Equipment And Leases [Abstract] | |
PREMISES AND EQUIPMENT | NOTE 6 - PREMISES AND EQUIPMENT Year-end premises and equipment were as follows: 2019 2018 Construction in progress $ 286 $ 2,097 Land and land improvements 33 33 Buildings 150 150 Leasehold improvements 11,720 9,487 Furniture, fixtures, and equipment 8,075 7,133 Computer equipment and software 3,906 3,700 Automobiles 29 29 24,199 22,629 Accumulated depreciation (12,058) (10,258) $ 12,141 $ 12,371 Depreciation and amortization expense was $1,800, $1,713 and $1,482 for the years ended December 31, 2019, 2018 and 2017, respectively. Operating Leases: The Company has entered into various leases, primarily for office space and branch facilities. For rent expense and future minimum operating lease payments due under non-cancelable leases at December 31, 2019, see Note 7, "Leases". Finance Lease : At December 31, 2019, the Bank had a single finance lease with an arrangement that requires monthly payments through 2033. For interest expense, rent expense, and future minimum finance lease payments due under non-cancelable leases at December 31, 2019, see Note 7, "Leases". |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES Lease Arrangements The Company has entered into leases in the normal course of business primarily for real property for branches and office space with terms extending through 2034. The Company has elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company's balance sheet. The Company has not been reasonably certain that the Company would exercise any lease term options, and therefore, does not include lease extensions and termination options in the lease term recognized on the balance sheet. Leases are classified as operating or finance leases at the lease commencement date based on the estimated present value of lease payments over the lease term. Leases expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company's incremental borrowing rate is initially based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. ROU assets and lease liabilities by lease type, and the associated balance sheet classification, are as follows: Lease right-of-use assets Classification December 31, 2019 Operating leases Other Assets $ 39,594 Finance lease Other Assets 2,819 Total right-of-use assets $ 42,413 Lease liabilities Classification December 31, 2019 Operating leases Other Liabilities $ 41,308 Finance lease Other Liabilities 2,942 Total lease liabilities $ 44,250 Lease Expense Rent expense related to these leases was $5,904, $5,528 and $4,454 for 2019, 2018 and 2017, respectively. Interest expense related to the finance lease was $164 for the year ended December 31, 2019. The components of total lease cost were as follows for the period ending: Lease costs December 31, 2019 Operating lease cost $ 5,069 Variable lease cost 406 Short-term lease cost 228 Finance lease cost Interest on lease liabilities (1) 164 Amortization of right-of-use asset 201 Total lease cost $ 6,068 (1) Included in interest expense on Federal Home Loan Advances and other borrowings in the Company's consolidated statement of income. All other lease costs in this table are included in occupancy and equipment expense. Lease Obligations Future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2019, are as follows: December 31, 2019 Finance Operating 2020 $ 276 $ 4,849 2021 280 4,871 2022 284 4,856 2023 288 4,885 2024 293 4,901 Thereafter 2,840 31,277 Total undiscounted lease payments (1) 4,261 55,639 Less: imputed interest (1,319) (14,331) Net lease liabilities $ 2,942 $ 41,308 (1) O n February 5, 2020, the Company purchased the properties at Columbia Avenue and 120 9th Avenue locations in Franklin, Tennessee, therefore ending the lease agreements. The total undiscounted operating lease payments at December 31, 2019 would be reduced by approximately $27,553 from $55,639 to $28,086 at December 31, 2019 taking in consideration these purchases. Supplemental Lease Information Weighted-average remaining lease term December 31, 2019 Operating leases 11.16 years Finance lease 14.01 years Weighted-average discount rate Operating leases 5.49 % Finance lease 5.49 % Cash flow information: December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,743 Operating cash flows from finance leases 164 Financing cash flows from finance lease 108 We lease certain branch facilities from various partnership interests of certain directors. Payments related to these partnership leases are noted in Note 15, “Related Party Transactions”. |
LEASES | LEASES Lease Arrangements The Company has entered into leases in the normal course of business primarily for real property for branches and office space with terms extending through 2034. The Company has elected not to recognize leases with original lease terms of 12 months or less (short-term leases) on the Company's balance sheet. The Company has not been reasonably certain that the Company would exercise any lease term options, and therefore, does not include lease extensions and termination options in the lease term recognized on the balance sheet. Leases are classified as operating or finance leases at the lease commencement date based on the estimated present value of lease payments over the lease term. Leases expense for operating leases and short-term leases is recognized on a straight-line basis over the lease term. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. The Company uses its incremental borrowing rate at lease commencement to calculate the present value of lease payments when the rate implicit in a lease is not known. The Company's incremental borrowing rate is initially based on the FHLB amortizing advance rate, adjusted for the lease term and other factors. ROU assets and lease liabilities by lease type, and the associated balance sheet classification, are as follows: Lease right-of-use assets Classification December 31, 2019 Operating leases Other Assets $ 39,594 Finance lease Other Assets 2,819 Total right-of-use assets $ 42,413 Lease liabilities Classification December 31, 2019 Operating leases Other Liabilities $ 41,308 Finance lease Other Liabilities 2,942 Total lease liabilities $ 44,250 Lease Expense Rent expense related to these leases was $5,904, $5,528 and $4,454 for 2019, 2018 and 2017, respectively. Interest expense related to the finance lease was $164 for the year ended December 31, 2019. The components of total lease cost were as follows for the period ending: Lease costs December 31, 2019 Operating lease cost $ 5,069 Variable lease cost 406 Short-term lease cost 228 Finance lease cost Interest on lease liabilities (1) 164 Amortization of right-of-use asset 201 Total lease cost $ 6,068 (1) Included in interest expense on Federal Home Loan Advances and other borrowings in the Company's consolidated statement of income. All other lease costs in this table are included in occupancy and equipment expense. Lease Obligations Future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2019, are as follows: December 31, 2019 Finance Operating 2020 $ 276 $ 4,849 2021 280 4,871 2022 284 4,856 2023 288 4,885 2024 293 4,901 Thereafter 2,840 31,277 Total undiscounted lease payments (1) 4,261 55,639 Less: imputed interest (1,319) (14,331) Net lease liabilities $ 2,942 $ 41,308 (1) O n February 5, 2020, the Company purchased the properties at Columbia Avenue and 120 9th Avenue locations in Franklin, Tennessee, therefore ending the lease agreements. The total undiscounted operating lease payments at December 31, 2019 would be reduced by approximately $27,553 from $55,639 to $28,086 at December 31, 2019 taking in consideration these purchases. Supplemental Lease Information Weighted-average remaining lease term December 31, 2019 Operating leases 11.16 years Finance lease 14.01 years Weighted-average discount rate Operating leases 5.49 % Finance lease 5.49 % Cash flow information: December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,743 Operating cash flows from finance leases 164 Financing cash flows from finance lease 108 We lease certain branch facilities from various partnership interests of certain directors. Payments related to these partnership leases are noted in Note 15, “Related Party Transactions”. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | Jul. 01, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Goodwill : Goodwill was $18,176 at December 31, 2019 and 2018. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. At December 31, 2019, 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 : As of December 31, 2019 and 2018, the Company had net core deposit intangibles of $448 and $952, respectively. At the time of the acquisition of MidSouth, the Company recorded a core deposit intangible of $3,059, which is being amortized over 8.2 years. Through December 31, 2019, the Company has recognized amortization of $2,726 related to the MidSouth core deposit intangible. At the time of the acquisition of Civic, the Company recorded a core deposit intangible of $558, which is being amortized over 3.2 years. Through December 31, 2019, the Company has recognized amortization of $443 related to the Civic core deposit intangible. The following table represents acquired intangible assets at December 31, 2019 and 2018: 2019 2018 Gross Accumulated Gross Accumulated Acquired intangible assets: Core deposit intangibles $ 3,617 $ (3,169) $ 3,617 $ (2,665) Aggregate amortization expense was $504, $612 and $473 for 2019, 2018 and 2017, respectively. The following table presents the estimated remaining amortization expense: 2020 $ 304 2021 121 2022 23 |
DEPOSITS
DEPOSITS | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
DEPOSITS | NOTE 9 - DEPOSITS Composition of deposits is as follows: December 31, 2019 December 31, 2018 Retail $ 1,600,832 $ 1,450,370 Brokered 632,241 797,795 Local Government 386,903 782,890 Reciprocal and other 587,608 400,752 Total $ 3,207,584 $ 3,431,807 At December 31, 2019 and 2018, time deposits in denominations of $250 or greater totaled $182,435 and $368,635, respectively. At December 31, 2019 and 2018, the Company had $151 and $142, 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: 2020 $ 374,096 2021 243,614 2022 88,286 2023 30,919 2024 12,114 Total $ 749,029 |
FEDERAL FUNDS PURCHASES AND REP
FEDERAL FUNDS PURCHASES AND REPURCHASE AGREEMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Brokers and Dealers [Abstract] | |
FEDERAL FUNDS PURCHASES AND REPURCHASE AGREEMENTS | NOTE 10 - FEDERAL FUNDS PURCHASED AND REPURCHASE AGREEMENTS As of December 31, 2019 and 2018, 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, 2019 and 2018. 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, 2019 and 2018, there were no repurchase agreements and no securities pledged to secure repurchase agreements. Information concerning securities sold under agreements to repurchase is summarized as follows: 2019 2018 2017 Average daily balance during the year $ — $ 11,302 $ 32,428 Average interest rate during the year — % 1.29 % 0.85 % Maximum month-end balance during the year $ — $ 36,071 $ 33,989 Weighted average interest rate at year end — % — % 1.14 % |
FEDERAL HOME LOAN BANK ADVANCES
FEDERAL HOME LOAN BANK ADVANCES | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES | 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, 2019 and 2018, the Company had received advances from the FHLB totaling $155,000 and $368,500, respectively. At December 31, 2019, the scheduled maturities of these advances and interest rates were as follows: Scheduled Weighted 2020 $ 155,000 2.41 % Each FHLB advance is payable at its maturity date, with a prepayment penalty for fixed rate advances. Qualifying loans totaling approximately $995,104, were pledged as security under a blanket pledge agreement with the FHLB at December 31, 2019. Based on this collateral, the Bank is eligible to borrow up to an additional $633,910 as of December 31, 2019. |
SUBORDINATED NOTES
SUBORDINATED NOTES | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
SUBORDINATED NOTES | NOTE 12 – SUBORDINATED NOTES At December 31, 2019, the Company’s subordinated notes, net of issuance costs, totaled $58,872. The Company’s subordinated notes, net of issuance costs, totaled $58,693 at December 31, 2018. 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 17 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 June 2016 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, 2019 | |
Postemployment Benefits [Abstract] | |
BENEFIT PLANS | NOTE 13 – 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, 2019, 2018 and 2017 was $755, $687 and $621, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14 – INCOME TAXES A reconciliation of the income tax expense for the years ended December 31, 2019, 2018 and 2017 to the “expected” tax expense, which was computed by applying the statutory federal income tax rate of 21 percent for 2019 and 2018 and 35 percent for 2017 to income before income tax expense, is as follows: 2019 2018 2017 Computed “expected” tax expense $ 3,152 $ 8,491 $ 16,321 Increase (reduction) in tax expense resulting from: State tax expense, net of federal tax effect (1,924) (612) 333 Effect of statutory rate changes enacted (1) — — 5,323 Non-deductible merger costs — 67 19 Incentive stock options 439 475 506 Bank owned life insurance (310) (320) (286) Tax-exempt interest income, net of expense (875) (1,296) (2,585) Insurance premiums (324) (293) (347) Excess tax benefit from exercise of stock options and vesting of restricted stock (201) (647) (805) Other 230 47 52 Income tax expense $ 187 $ 5,912 $ 18,531 (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: 2019 2018 2017 Current expense Federal $ 7,647 $ 6,399 $ 13,653 State (503) (684) 1,093 Deferred expense Federal (5,024) 288 (957) State (1,933) (91) (581) Deferred tax revaluation expense — — 5,323 Income tax expense $ 187 $ 5,912 $ 18,531 The sources of deferred income tax assets (liabilities) at December 31, 2019 and 2018 and the tax effect is as follows: 2019 2018 Deferred tax assets: Organizational and start-up costs $ 38 $ 51 Allowance for loan losses 11,679 5,881 Unrealized loss on securities — 5,427 Net operating loss carry forward 1,753 2,035 Purchase accounting fair value adjustments 565 594 Accrued other expenses 1,284 701 Nonaccrual loan interest 110 105 Loan fees 1,050 656 Cash flow hedge 416 — Lease liability 11,565 — Other 1,652 1,421 Total deferred tax asset 30,112 16,871 Deferred tax liabilities: Mortgage servicing rights $ (841) $ (879) Premises and equipment (1,620) (1,204) Prepaid expenses (431) (702) Lease right-of-use asset (11,085) — Unrealized gain on securities (907) — Other (999) (897) Total deferred tax liability (15,883) (3,682) Net deferred tax asset $ 14,229 $ 13,189 At December 31, 2019, the federal net operating loss remaining from the acquisition of MidSouth totaled $8,346, which will expire at various dates from 2029 to 2031. The federal net operating losses that can be utilized are subject to an annual limitation of $1,300. 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, 2019, 2018 and 2017. 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 2016. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 15 – RELATED PARTY TRANSACTIONS The Company enters into various credit arrangements with its executive officers, directors and their affiliates, in the ordinary course of business. 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 2019 were as follows: Beginning balance $ 24,339 New loans/advances 1,144 Repayments (9,122) Ending balance $ 16,361 Deposits from principal officers, directors, and their affiliates at year end 2019 and 2018 were $49,292 and $40,273. The Bank has entered into various 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, 2019, the approximate future minimum operating lease payments due under non-cancelable operating and capital leases are reported in Note 7, “Leases”. Rent expense attributable to related party leases in 2019, 2018 and 2017, was $2,124, $3,893 and $2,582, respectively. The future minimum rent payments of $23,165 are associated with related parties. The Company also paid a company affiliated with an outside director $0 during 2019 and 2018, and $831 during 2017 for construction of leasehold improvement. In addition, the Company also paid a company affiliated with an outside director $970, $1,027 and $997 for the procurement of various insurance policies during the years ended December 31, 2019, 2018 and 2017, 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, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED PAYMENTS | NOTE 16 - 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. The warrants expired on March 30, 2017; therefore, at December 31, 2018 and 2019, 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 $5,917, $6,569, and $2,802, respectively, for 2019, 2018, and 2017. The total income tax benefit related to vesting of restricted stock and exercises of stock options was $201, $647, and $805, respectively, for 2019, 2018 and 2017. Stock Options : The Company’s 2007 Omnibus Equity Incentive Plan (the “2007 Plan”), as amended and shareholder-approved, provided for authorized shares up to 4,000,000. The 2007 Plan provided that no options intended to be incentive stock options may be granted after April 9, 2017. As a result, the Company’s Board of Directors approved, and recommended to its shareholders for approval, an equity incentive plan, the 2017 Omnibus Equity Incentive Plan which the Company’s shareholders approved at the 2017 annual meeting of shareholders. On April 12, 2018, the Company’s Board of Directors approved the Amended and Restated 2017 Omnibus Equity Incentive Plan (“Amended and Restated 2017 Plan”) to make certain changes in response to feedback received from its shareholders. The terms of the Amended and Restated 2017 Plan are substantially similar to the terms of the 2007 Plan it was intended to replace. The Amended and Restated 2017 Plan provides for authorized shares up to 3,500,000. At December 31, 2019, there were 2,410,486 authorized shares available for issuance under the Amended and Restated 2017 Plan. 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 ten 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. 2019 2018 2017 Risk-free interest rate 1.68 % 3.10 % 2.05 % Expected term 7 years 7.5 years 6.9 years Expected stock price volatility 29.73 % 30.79 % 33.21 % Dividend yield 0.60 % — % 0.03 % The weighted average fair value of options granted for the years ended December 31, 2019, 2018 and 2017 was $9.68, $11.50, and $14.43, respectively. A summary of the activity with respect to stock options for the years ended December 31, 2019, 2018 and 2017 follows: Shares Weighted Weighted Aggregate Outstanding at January 1, 2017 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 Granted 102,930 27.86 Exercised (326,818) 17.87 Forfeited, expired, or cancelled (84,464) 33.64 Outstanding at December 31, 2019 1,499,570 $ 22.39 6.46 $ 12,676 Vested or expected to vest 1,424,592 $ 25.88 5.85 $ 12,042 Exercisable at December 31, 2019 832,993 $ 19.62 5.85 $ 12,251 2019 2018 2017 Stock options exercised: Intrinsic value of options exercised $ 4,268 $ 4,873 $ 4,878 Cash received from options exercised 5,307 3,047 1,615 Tax benefit realized from option exercises 86 565 484 As of December 31, 2019, there was $3,439 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 1.6 years. Restricted Stock and Restricted Stock Units : Additionally, the Company’s 2007 Plan and the Amended and Restated 2017 Plan each provides 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. In April 2019, the Company began awarding restricted stock units which participants do not have voting rights or dividend rights until the restrictions have lapsed. These awards typically have a vesting period of three A summary of activity for non-vested restricted share awards for the year ended December 31, 2019, 2018 and 2017 is as follows: Non-vested Shares Shares Weighted- Non-vested at January 1, 2017 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 Granted 1,255 31.87 Vested (85,151) 29.51 Forfeited (1,628) 31.42 Non-vested at December 31, 2019 90,992 $ 32.54 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, 2019, there was $1,093 of total unrecognized compensation cost related to non-vested shares granted under the 2007 Plan and Amended and Restated 2017 Plan. The cost is expected to be recognized over a weighted-average period of 0.7 years. The total fair value of shares vested during the years ended December 31, 2019, 2018 and 2017 was $2,395, $1,382, and $1,432, respectively. The Company began granting restricted stock units in 2019. The following table outlines restricted stock units that were granted, grouped by similar vesting criteria, during the twelve months ended December 31, 2019: Grant Year Units Awarded Service Period Period in which units to be settled into shares of common stock 2019 3,447 0.5 years 2019 2019 156,804 3 years 2022 Stock compensation expense related with the restricted stock units for the twelve months ended December 31, 2019 was $1,288. There was no expense related to restricted stock units in 2018. This stock compensation 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, 2019, there was $3,099 of total unrecognized compensation expense related to non-vested units granted under the 2007 Plan and Amended and Restated 2017 Plan. The expense is expected to be recognized over a weighted-average period of 2.3 years. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
REGULATORY CAPITAL MATTERS | NOTE 17 – 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, 2019, 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 2019 was 2.5%. 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 condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At December 31, 2019, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the institution’s category. Actual and required capital amounts and ratios are presented below as of December 31, 2019 and 2018 for the Company and Bank. Actual Required To Be Well Capitalized Under Prompt Corrective Action Regulations (1) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Company-Level Common equity Tier 1 capital to RWA $388,199 11.9% $146,711 4.5% N/A N/A Total Capital to RWA $487,966 15.0% $260,819 8.0% N/A N/A Tier 1 (Core) Capital to RWA $388,199 11.9% $195,614 6.0% N/A N/A Tier 1 (Core) Capital to average assets $388,199 10.3% $151,456 4.0% N/A N/A Bank-Level Common equity Tier 1 capital to RWA $441,348 13.6% $146,491 4.5% $211,599 6.5% Total Capital to RWA $482,183 14.8% $260,429 8.0% $325,536 10.0% Tier 1 (Core) Capital to RWA $441,348 13.6% $195,322 6.0% $260,429 8.0% Tier 1 (Core) Capital to average assets $441,348 11.7% $151,255 4.0% $189,069 5.0% December 31, 2018 Company-Level Common equity Tier 1 capital to RWA $367,096 12.2% $135,598 4.5% N/A N/A Total Capital to RWA $449,325 14.9% $241,064 8.0% N/A N/A Tier 1 (Core) Capital to RWA $367,096 12.2% $180,798 6.0% N/A N/A Tier 1 (Core) Capital to average assets $367,096 8.8% $167,553 4.0% N/A N/A Bank-Level Common equity Tier 1 capital to RWA $421,335 14.0% $135,613 4.5% $195,886 6.5% Total Capital to RWA $444,871 14.8% $241,090 8.0% $301,363 10.0% Tier 1 (Core) Capital to RWA $421,335 14.0% $180,818 6.0% $241,090 8.0% Tier 1 (Core) Capital to average assets $421,335 10.1% $167,420 4.0% $209,275 5.0% Note: Minimum ratios presented exclude the capital conservation buffer. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | NOTE 18 - 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. 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, 2019 Using: Quoted Prices Significant Significant Mortgage-backed securities: residential $ — $ 375,943 $ — Mortgage-backed securities: commercial — 17,780 — Corporate Notes — 33,361 — State and political subdivisions — 225,048 — Total securities available for sale $ — $ 652,132 $ — Loans held for sale $ — $ 43,162 $ — Other assets $ — $ 225 $ — Liabilities Other liabilities $ — $ 73 $ — Fair Value Measurements at December 31, 2018 Using: Quoted Prices Significant Significant Assets U.S. Treasury $ 253,014 $ — $ — U.S. government sponsored entities and agencies — 21,888 — Mortgage-backed securities: residential — 580,699 — Mortgage-backed securities: commercial — 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 $ — Other assets $ — $ 206 $ — Liabilities Other liabilities $ — $ 129 $ — The Company used the following methods and significant assumptions to estimate the fair value of financial instruments that are measured at fair value on a recurring basis: Securities : The fair values for investment securities are determined by quoted market prices, if available (Level 1). 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). Other assets : Included in other assets are certain assets carried at fair value and interest rate locks associated with the mortgage loan pipeline. The fair value of the mortgage loan pipeline rate locks is based upon the projected sales price of the underlying loans, taking into account market interest rates and other market factors at the measurement date, net of the projected fallout rate. These assets are valued using similar observable data that occurs in the market (Level 2) Loans Held For Sale: These loans are typically sold to an investor following loan origination and the fair value of such accounts are readily available based on direct quotes from investors or similar transactions experienced in the secondary loan market. Fair value adjustments, as well as realized gains and losses are recorded in current earnings. Fair value is determined by market prices or similar transactions adjusted for specific attributes of that loan (Level 2). Other Liabilities : The Company has certain liabilities carried at fair value including certain interest rate swap agreements to facilitate customer transactions, and the cash flow hedge and interest rate locks associated with the funding for its mortgage loan originations. The fair value of these liabilities is based on pricing models that utilize observable market inputs (Level 2). There were no transfers between levels for the years ended December 31, 2019 and 2018. The following table presents assets measured at fair value on a non-recurring basis. There were no liabilities measured at fair value on a non-recurring basis as December 31, 2019 and 2018. Total carrying value in the Quoted market prices in Models with significant Models with significant Total losses for the period ended December 31, 2019 Impaired loans, net: (1) Residential real estate: Closed-end 1-4 family $ 626 $ — $ — $ 626 $ — Commercial and industrial 3,763 — 3,650 113 — Total $ 4,389 $ — $ 3,650 $ 739 $ — December 31, 2018 Impaired loans, net (1) Commercial and industrial $ 150 $ — $ — $ 150 $ — (1) Amount is net of a valuation allowance of $20,771 and $17 at December 31, 2019 and 2018, respectively, as required by ASC 310-10, "Receivables." As of December 31, 2019 and 2018, the only Level 3 assets with material unobservable inputs are associated with impaired loans. The table above includes those loans that are impaired and have a carrying balance as of December 31, 2019, and 2018. Impaired Loans : A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due pursuant to the contractual terms of the loan agreement. Impairment is measured by estimating the fair value of the loan based on the present value of expected cash flows, the market price of the loan, or the underlying fair value of the loan's collateral. For real estate loans, fair value of the impaired loan's collateral is determined by third party appraisals, which are then adjusted for the estimated selling and closing costs related to liquidation of the collateral. For this asset class, the actual valuation methods (income, sales comparable, or cost) vary based on the status of the project or property. The unobservable inputs may vary depending on the individual assets with no one of the three methods being the predominant approach. The Company reviews the third party appraisal for appropriateness and adjusts the value downward to consider selling and closing costs, which typically is 10% of the appraised value. For non-real estate collateral loans, the unobservable inputs will vary depending on the credit. The fair value of the impaired loan's collateral may be determined using a third party appraisal, transactional values, discounted cash flows (DCF), sales comparisons, asset value, or aging reports, adjusted or discounted. As of December 31, 2019 the fair value of the non-real estate collateral loans was determined primarily based on the transactional value, resulting in a Level 2 fair value classification. Foreclosed Assets : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals which are updated no less frequently than annually. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Foreclosed assets are evaluated on a quarterly basis for additional impairment and adjusted accordingly. 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 reviewed 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. The Company measures certain assets at fair value on a non-recurring basis including impaired loans (excluding PCI loans), loans held for sale, and OREO. These fair value adjustments result from impairments recognized during the period, application of the lower of cost or fair value on loans held for sale, and the application of fair value less cost to sell on OREO. The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair values at December 31, 2019 and 2018: Financial Instruments Recorded Using Fair Value Option At December 31, 2019, the unpaid principal balance of loans held for sale was $42,152, resulting in an unrealized gain of $1,010 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, 2019. 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 mortgage banking revenue. Carrying Level 1 Fair Value Measurements at December 31, 2019 Using: Total Level 2 Level 3 Assets Cash and cash equivalents $ 234,991 $ 234,991 $ — $ — $ 234,991 Securities available for sale 652,132 — 652,132 — 652,132 Certificates of deposit held at other financial institutions 3,590 — 3,590 — 3,590 Loans held for sale 43,162 — 43,162 — 43,162 Net loans 2,767,008 — — 2,753,761 2,753,761 Servicing rights, net 3,246 — — 3,922 3,922 Other assets 225 — 225 — 225 Accrued interest receivable 12,362 96 3,775 8,491 12,362 Liabilities Deposits $ 3,207,584 $ 2,458,555 $ 749,656 $ — $ 3,208,211 Federal Home Loan Bank advances 155,000 — 155,090 — 155,090 Subordinated notes 58,872 — — 60,922 60,922 Other liabilities 73 — 73 — 73 Accrued interest payable 4,201 154 687 3,360 4,201 Carrying Level 1 Fair Value Measurements at December 31, 2018 Using: Total Level 2 Level 3 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 2,648,948 — — 2,622,386 2,622,386 Servicing rights, net 3,403 — — 4,836 4,836 Other assets 206 — 206 — 206 Accrued interest receivable 13,337 71 5,539 7,727 13,337 Liabilities Deposits $ 3,431,807 $ 2,105,951 $ 1,319,326 $ — $ 3,425,277 Federal Home Loan Bank advances 368,500 — 366,786 — 366,786 Subordinated notes 58,693 — — 59,852 59,852 Other liabilities 129 — 129 — 129 Accrued interest payable 4,700 146 3,866 688 4,700 At December 31, 2019 there were ten collateral-dependent impaired loans carried at fair value of $739 resulting in an additional provision for loan losses of $20,771 recorded related to impaired loans recorded at fair value of collateral. At December 31 2018, there was one collateral dependent impaired loan carried at fair value of $150 resulting in an additional provision for loan losses of $17 recorded related to impaired loans recorded at fair value of collateral. There were no foreclosed assets as of December 31, 2019 and 2018, and accordingly, there were no properties at December 31, 2019 and 2018 that required write-downs to fair value resulting in no write downs for the years ended December 31, 2019 and 2018. The Company measures certain assets at fair value on a non-recurring basis including impaired loans (excluding PCI loans), loans held for sale, and OREO. These fair value adjustments result from impairments recognized during the period, and the application of fair value less cost to sell on OREO. The following tables present valuation techniques and unobservable inputs for assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair values at December 31, 2019 and 2018: The carrying amounts and estimated fair values of financial instruments, at December 31, 2019 and 2018 are as in the tables below. The methods and assumptions not previously described used to estimate fair values are described as follows: (a) Cash and Cash Equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as Level 1. (b) Loans: Fair values of loans, excluding loans held for sale, are estimated as follows: In accordance with ASU 2016-01, the fair value of loans held for investment, is estimated using a cash flow projection methodology that relies on three primary assumptions: (1) the expected prepayment rate of loans; (2) the magnitude of future net losses based on expected default rate and severity of loss; and (3) the discount rate applicable to the expected cash flows of the loan portfolio. Loans are considered a Level 3 classification. (c) Mortgage Servicing Rights: 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. (d) 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. (e) Federal Funds Purchased and Repurchase Agreements: 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. (f) Federal Home Loan Bank Advances: 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. (g) Subordinated Notes: The fair values of the Company's subordinated notes are estimated using discounted cash flow analyses based on the current borrowing rates for similar types of borrowing arrangements resulting in a Level 3 classification. (h) Accrued Interest Receivable/Payable: 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) Off-balance Sheet Instruments: 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. |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 19 – DERIVATIVES The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current earnings. Derivatives Designated as Fair Value Hedges For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. The Company utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. During 2019, the Company entered into 16 swap transactions with a notional amount of $101,205 designated as fair value hedges. These derivatives are intended to protect against the effects of changing interest rates on the fair values of fixed rate securities. A summary of the Company's fair value hedge relationships as of December 31, 2019 are as follows (in thousands): December 31, 2019 December 31, 2018 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Estimated Notional Estimated Liability derivatives Interest rate swap agreements - securities Other Liabilities 7.32 2.53 % 3 month LIBOR $ 101,205 $ 4,954 $ — $ — The effects of fair value hedge relationships reported in interest income on securities on the consolidated statements of income for the twelve months ended December 31, 2019 and 2018 were as follows (in thousands): Amount of Gain Recognized in Income Location of Gain on Hedged Item Twelve months ended December 31, 2019 2018 Liability derivatives Interest rate swap agreements - securities Interest Income $ 4,954 $ — Amount of Loss Recognized in Income Location of Loss on Derivative Twelve months ended December 31, 2019 2018 Liability derivatives Interest rate swap agreements - securities Interest Income $ (4,954) $ — The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at December 31, 2019: Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Line item on the balance sheet Securities available-for-sale $ 101,205 $ — $ 4,954 $ — Derivatives Designated as Cash Flow Hedges For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. The Company uses cash flow hedge relationships in an effort to manage future interest rate exposure. The hedging strategy converts the LIBOR-based variable interest rate on forecasted borrowings to a fixed interest rate and is used in an effort to protect the Company from floating interest rate variability. A summary of the Company's cash flow hedge relationships as of December 31, 2019 are as follows (in thousands): December 31, 2019 December 31, 2018 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Estimated Notional Estimated Liability derivatives Interest rate swap agreements Deposits 2.34 2.23 % 1 month LIBOR $ 100,000 $ 1,592 $ — $ — There were no cash flow hedge relationships as of December 31, 2018. The effects of the Company's cash flow hedge relationships on the statement of comprehensive income (loss) during the twelve months ended December 31, 2019 and 2018 were as follows: Amount of Gain (Loss) Recognized in Other Comprehensive Income Twelve months ended December 31, 2019 2018 Interest rate swap agreements $ (1,176) $ — The cash flow hedges were determined to be highly effective during the periods presented and as a result qualify for hedge accounting treatment. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or the Company discontinues hedge accounting. The Company expects the hedges to continue to be highly effective and qualify for hedge accounting during the remaining terms of the swaps. 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 2019, the Company had approximately $48,999 of interest rate lock commitments and approximately $62,824 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 $225 and $73, respectively, at December 31, 2019. 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. 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 mortgage banking revenue. The net gains (losses) relating to free-standing derivative instruments used for risk management is summarized below: 2019 2018 2017 Forward contracts related to mortgage loans held for sale and interest rate contracts $ 56 $ 94 $ 32 Interest rate contracts for customers 19 31 (54) The following table reflects the amount and fair value of mortgage banking derivatives included in the consolidated balance sheet as of December 31, 2019 and 2018: 2019 2018 Notional Fair Notional Fair Included in other assets (liabilities): Interest rate contracts for customers $ 48,999 $ 225 $ 28,731 $ 206 Forward contracts related to mortgage loans held for sale $ 62,824 $ (73) $ 31,519 $ (129) |
LOAN COMMITMENTS AND OTHER RELA
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | 12 Months Ended |
Dec. 31, 2019 | |
Loan Commitments And Other Related Activities [Abstract] | |
LOAN COMMITMENTS AND OTHER RELATED ACTIVITIES | NOTE 20 – 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: 2019 2018 Fixed Variable Fixed Variable Commitments to make loans $ 48,999 $ — $ 28,731 $ — Unused lines of credit 89,040 701,326 128,313 526,271 Standby letters of credit 7,119 48,750 8,293 31,731 Commitments to make loans are generally made for periods of over 365 days. The fixed rate loan commitments have interest rates ranging from 2.82% to 12.00% and maturity terms ranging from less than 1 year to 25 years. |
PARENT COMPANY ONLY CONDENSED F
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION | NOTE 21 – PARENT COMPANY ONLY CONDENSED FINANCIAL INFORMATION Condensed financial information of Franklin Financial Network, Inc. follows: CONDENSED BALANCE SHEETS December 31, 2019 2018 ASSETS Cash and cash equivalents $ 3,625 $ 3,364 Investment in banking subsidiary 463,496 426,979 Investment in other subsidiaries 3,527 1,919 Other assets 1,841 1,617 Total assets $ 472,489 $ 433,879 LIABILITIES AND EQUITY Subordinated notes $ 58,872 $ 58,693 Accrued expenses and other liabilities 3,284 2,446 Shareholders’ equity 410,333 372,740 Total liabilities and shareholders’ equity $ 472,489 $ 433,879 CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Year ended December 31, 2019 2018 2017 Dividends from subsidiaries $ 5,500 $ 5,925 $ 4,000 Other income 249 203 171 Interest expense 4,328 4,328 4,321 Other expense 7,614 5,163 2,890 Loss before income tax and undistributed subsidiaries income (6,193) (3,363) (3,040) Income tax benefit (2,855) (2,229) (2,671) Equity in undistributed subsidiaries income 18,160 35,655 28,468 Net income $ 14,822 $ 34,521 $ 28,099 Comprehensive income $ 31,982 $ 25,966 $ 29,997 CONDENSED STATEMENTS OF CASH FLOWS Year ended December 31, 2019 2018 2017 Cash flows from operating activities Net income $ 14,822 $ 34,521 $ 28,099 Adjustments: Equity in undistributed subsidiaries income (18,160) (35,655) (28,468) Amortization of debt issuance costs 179 178 178 Stock-based compensation 851 1,008 219 Change in other assets (208) (1,367) 728 Change in other liabilities 839 (1,908) 686 Net cash from operating activities (1,677) (3,223) 1,442 Cash flows from investing activities Investments in subsidiaries — (26,512) (1,359) Net cash acquired from acquisition (See Note 2) — 24,660 — Net cash from investing activities — (1,852) (1,359) Cash flows from financing activities Proceeds from exercise of common stock warrants — — 150 Proceeds from exercise of common stock options 5,307 3,047 1,615 Proceeds from issuance of common stock, net of offering costs — (242) — Divestment of common stock issued to 401(k) plan — (308) (256) Redemption of Series A preferred stock — — — Purchase of Treasury Stock (717) — — Dividends paid on common stock (2,636) — — Noncontrolling interest distributions (16) (16) — Net cash from financing activities 1,938 2,481 1,509 Net change in cash and cash equivalents 261 (2,594) 1,592 Beginning cash and cash equivalents 3,364 5,958 4,366 Ending cash and cash equivalents $ 3,625 $ 3,364 $ 5,958 Non-cash supplemental information: Transfers from subsidiary stock based compensation expense to parent company only additional paid-in capital $ 5,066 $ 5,561 $ 2,583 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 22 – 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: Year Ended December 31, 2019 2018 2017 Basic Net income available to common shareholders $ 14,806 $ 34,505 $ 28,083 Less: earnings allocated to participating securities (120) (372) (219) Net income allocated to common shareholders $ 14,686 $ 34,133 $ 27,864 Weighted average common shares outstanding including participating securities $ 14,633,399 $ 14,169,294 $ 13,145,005 Less: Participating securities (118,747) (152,638) (102,650) Average shares 14,514,652 14,016,656 13,042,355 Basic earnings per common share $ 1.01 $ 2.44 $ 2.14 Diluted Net income allocated to common shareholders $ 14,686 $ 34,133 $ 27,864 Weighted average common shares outstanding for basic earnings per common share 14,514,652 14,016,656 13,042,355 Add: Dilutive effects of assumed exercises of stock options 352,242 540,302 633,738 Add: Dilutive effects of assumed exercises of stock warrants — — 1,578 Add: Dilutive effects of assumed vesting of restricted stock units 95,413 $ — $ — Average shares and dilutive potential common shares $ 14,962,307 $ 14,556,958 $ 13,677,671 Dilutive earnings per common share $ 0.98 $ 2.34 $ 2.04 Average stock options of 876,086, 546,325, and 285,706 shares of common stock were not considered in computing diluted earnings per common share for the year ended December 31, 2019, 2018, and 2017, respectively, because they were antidilutive. |
QUARTERLY FINANCIAL RESULTS (UN
QUARTERLY FINANCIAL RESULTS (UNAUDITED) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018: 2019 2018 Fourth Third Second First Fourth Third Second First Income Statement Data ($): Interest income $ 43,185 $ 46,531 $ 47,453 $ 47,523 $ 46,045 $ 43,717 $ 42,136 $ 38,047 Interest expense 15,072 18,269 20,088 20,103 19,125 17,155 15,231 12,931 Net interest income 28,113 28,262 27,365 27,420 26,920 26,562 26,905 25,116 Provision for loan losses 18,961 1,000 7,031 5,055 975 136 570 573 Noninterest income 4,573 4,793 4,923 3,486 (383) 3,442 4,147 3,456 Noninterest expense 21,279 18,614 19,370 22,616 21,689 18,251 18,050 15,488 Net (loss) income before taxes (7,554) 13,441 5,887 3,235 3,873 11,617 12,432 12,511 Income tax (benefit) expense (2,970) 2,117 706 334 122 1,068 2,263 2,459 Net (loss) income (4,584) 11,324 5,181 2,901 3,751 10,549 10,169 10,052 Net income available to common shareholders (4,592) 11,324 5,173 2,901 3,743 10,549 10,161 10,052 (Loss) Earnings per share, basic (1) $ (0.31) $ 0.77 $ 0.35 $ 0.20 $ 0.26 $ 0.73 $ 0.71 $ 0.76 (Loss) Earnings per share, diluted (1) $ (0.31) $ 0.75 $ 0.34 $ 0.19 $ 0.25 $ 0.70 $ 0.68 $ 0.73 (1) Quarterly rounding may vary from year-to-date totals |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Principles of Consolidation | Nature of Operations and Principles of Consolidation : The consolidated financial statements include Franklin Financial Network, Inc. ("FFN") and its wholly-owned subsidiaries, Franklin Synergy Bank (the “Bank”) and Franklin Synergy Risk Management, Inc., together referred to as “the Company.” Intercompany transactions and balances are eliminated in consolidation. The Company was incorporated under the laws of the State of Tennessee on April 5, 2007. The Bank 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. The Bank 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 in the notes of the consolidated financial statements. On January 21, 2020, FFN, FB Financial Corporation, a Tennessee corporation (“FB Financial”), and Paisley Acquisition Corporation, a Tennessee corporation and a direct, wholly-owned subsidiary of FB Financial (“Merger Sub”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which, on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into FFN, with FFN continuing as the surviving corporation (the “Merger”). Immediately following the Merger, FFN will merge with and into FB Financial, with FB Financial continuing as the surviving corporation (the “Upstream Merger”). Immediately following the Upstream Merger, FSB will merge with and into FirstBank, a Tennessee state-chartered bank and a wholly owned subsidiary of FB Financial (“FirstBank”), with FirstBank continuing as the surviving bank (the “Bank Merger,” and, together with the Merger and the Upstream Merger, the “Mergers”). Under the terms and subject to the conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of the common stock, no par value (the “FFN Common Stock”), issued and outstanding immediately prior to the Effective Time (except for certain shares of FFN Common Stock owned by FFN as treasury stock or by FB Financial, as provided in the Merger Agreement) will be converted, in accordance with the procedures set forth in the Merger Agreement, into the right to receive, without interest, (1) 0.9650 shares (the “Exchange Ratio”) of common stock, par value $1.00 per share, of FB Financial (“FB Financial Common Stock”) and (2) $2.00 in cash (the “Per Share Cash Consideration” and, collectively with the FB Financial Common Stock to be issued pursuant to the preceding clause (1), the “Merger Consideration”). The completion of the Mergers is subject to customary conditions, including (i) receipt of FFN shareholder approval and FB Financial shareholder approval, (ii) authorization for listing on the New York Stock Exchange of the shares of FB Financial Common Stock to be issued in the Merger, (iii) the receipt of required regulatory approvals, including the approval of the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Tennessee Department of Financial Institutions, (iv) effectiveness of the registration statement on Form S-4 for the FB Financial Common Stock to be issued in the Merger, and (v) the absence of any order, injunction or other legal restraint preventing or making illegal the completion of the Merger or any of the other transactions contemplated by the Merger Agreement. |
Use of Estimates | Use of Estimates : To prepare financial statements in conformity with GAAP, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. |
Cash Flows | Cash Flows : Cash and cash equivalents include cash, deposits with other financial institutions with maturities under 90 days, and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and federal funds purchased. |
Interest-Bearing Deposits in Financial Institutions | Interest-Bearing Deposits in Financial Institutions : Interest-bearing deposits in other financial institutions are carried at cost. |
Securities | Securities : Debt securities were classified as held to maturity (HTM) and carried at amortized cost when management had the positive intent and ability to hold them to maturity. Debt securities are classified as available for sale (AFS) when they might be sold before maturity. Securities available for sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of tax. 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, 2019, 2018 or 2017. |
Loans Held for Sale | Loans Held for Sale : Loans originated and intended for sale in the secondary market are carried at fair value as of the balance sheet date as determined by outstanding commitments from investors and includes the servicing value of the loans. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. 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 : Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of purchase discounts, deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. Interest income on mortgage loans and loans held for investment 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. The banking agencies define a “Shared National Credit” (“SNC”) as any loan extended to a borrower which aggregates $100 million or more and is shared by three or more banks. The SNC portfolio totaled $136,658 at December 31, 2019, decreasing 45.1% from $249,033 at December 31, 2018, driven by the sales and paydowns of $112,375 of SNCs during 2019. The entire outstanding balance of SNCs was included in the commercial and industrial portfolio. To meet the needs of our customers, SNC participations are entered into during the normal course of business and are reviewed at least quarterly for credit quality. |
Concentration of Credit Risk | Concentration of Credit Risk : Most of the Company’s business activity is with customers located within Williamson County, Davidson County, and Rutherford County; therefore, the Company’s exposure to credit risk is significantly affected by changes in the economy in the Williamson County, Davidson County, and Rutherford County areas. The Company believes there are no significant concentrations of loans to any one industry or customer. However, the customers’ ability to repay their loans is dependent on the real estate and general economic conditions in the area. |
Purchased Credit Impaired (PCI) Loans | Purchased Credit Impaired (PCI) Loans : The Company purchases individual loans and groups of loans, some of which have shown evidence of credit deterioration since origination. These purchased credit impaired loans are recorded at the amount paid, such that there is no carryover of the seller’s allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. 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 for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. 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 (TDRs) 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. TDRs are individually evaluated for impairment disclosures and included in the separately identified impairment disclosures. TDRs are measured at the present value of estimated future cash flows using the loan’s effective rate at inception. If a TDR 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 : When loans are sold with servicing retained, servicing rights are initially recorded at fair value with the income statement effect recorded in gain on sale of loans. Fair value is based on market prices for comparable servicing contracts. All classes of servicing assets are subsequently measured using the amortization method which requires servicing rights to be amortized into non-interest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. 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. |
Transfers of Financial Assets | Transfers of Financial Assets : Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Foreclosed Assets | Foreclosed Assets : Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through expense. Operating costs after acquisition are expensed. |
Premises and Equipment | Premises and Equipment : Premises and equipment are stated at cost less accumulated depreciation and are depreciated using the straight-line method. Depreciation periods are shorter of the asset’s useful life or lease period, ranging from three |
Restricted Equity Securities | Restricted Equity Securities : The Bank is a member of the Federal Reserve Bank (FRB) and the FHLB system. Members of the FRB and FHLB are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. The stock ownership in FRB and FHLB are carried at cost, classified as restricted securities, and periodically evaluated for impairment based on ultimate recovery of par value. Both cash and stock dividends are reported as income. |
Company Owned Life Insurance/Bank Owned Life Insurance | Company Owned Life Insurance/Bank Owned Life Insurance : The Company and the Bank have purchased life insurance policies on certain key executives. Company owned life insurance/bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets : Goodwill is determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill and intangible assets acquired in a purchase business combination and determined to have an indefinite useful life are not amortized, but tested for impairment at least annually. The Company has selected December 31 as the date to perform the annual impairment test. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on the balance sheet. 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 : Premises and equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value. |
Loan Commitments and Related Financial Instruments | Loan Commitments and Related Financial Instruments : Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. |
Mortgage Banking Derivatives | Mortgage Banking Derivatives : Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market and forward commitments for the future delivery of these mortgage loans are accounted for as free standing derivatives. The fair value of the interest rate lock is recorded at the time the commitment to fund the mortgage loan is executed and is adjusted for the expected exercise of the commitment before the loan is funded. Fair values of these mortgage derivatives are estimated based on changes in mortgage interest rates from the date the interest rate on the loan is locked. The Company enters into forward commitments for the future delivery of mortgage loans when interest rate locks are entered into, in order to hedge the change in interest rates resulting from its commitments to fund the loans. Changes in the fair values of these derivatives are included in net gains on sale of mortgage loans. Derivatives : At the inception of a derivative contract, the Company designates the derivative as one of three types based on the Company's intentions and belief as to likely effectiveness as a hedge. These three types are (1) a hedge of the fair value of a recognized asset or liability or of an unrecognized firm commitment ("fair value hedge"), (2) a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow hedge"), or (3) as instrument with no hedging designation ("stand-alone derivative"). For a fair value hedge, the gain or loss on the derivative, as well as the offsetting loss or gain on the hedged item attributable to the hedged risk, are recognized in current earnings as fair values change. For a cash flow hedge, the gain or loss on the derivative is reported in other comprehensive income and is reclassified into earnings in the same periods during which the hedged transaction affects earnings. Changes in the fair value of derivatives that do not qualify for hedged accounting are reported currently in earnings, as noninterest income. Net settlements on derivatives that qualify for hedge accounting are recorded in interest income or interest expense, based on the item being hedged. Net cash settlements on derivatives that do not qualify for hedge accounting are reported in noninterest income. Cash flows on hedges are classified in the cash flow statement the same as the cash flows on the items being hedged. The Company formally documents the relationship between derivatives and hedged items, as well as the risk management objective and the strategy for undertaking hedge transactions at the inception of the hedging relationship. This documentation includes linking fair value or cash flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. The Company also formally assesses, both at the hedge's inception and on an ongoing bases, whether the derivative instruments that are used are highly effective in offsetting changes in fair values or cash flows of the hedged items. The Company discontinues hedge accounting when it determines that the derivative is no longer effective in offsetting changes in the fair value or cash flows of the hedged item, the derivative is settled or terminates, a hedged forecasted traction is no longer probable, a hedged firm commitment is no longer firm, or treatment of the derivative as a hedge is no longer appropriate or intended. When hedge accounting is discontinued, subsequent changes in fair value of the derivative are recorded as noninterest income. When a fair value hedge is discontinued, the hedged asset or liability is no longer adjusted for changes in fair value and the existing basis adjustment is amortized or accreted over the remaining life of the asset or liability. When a cash flow hedge is discontinued but the hedged cash flows or forecasted transactions are still expected to occur, gains or losses that were accumulated in other comprehensive income are amortized into earnings over the same periods which the hedged transactions will affect earnings. |
Stock-Based Compensation | Stock-Based Compensation : Compensation cost is recognized for stock options and restricted stock awards based on the fair value of these awards at the date of grant. A Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period, reduced for estimated forfeitures. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. All excess tax benefits and tax deficiencies related to share-based payment awards are recognized as income tax expense or benefit in the income statement during the period in which they occur. |
Income Taxes | Income Taxes : Income tax expense or benefit is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. Accordingly, 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 as of December 31, 2017. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. 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. |
Retirement Plans | Retirement Plans : Employee 401(k) and profit sharing plan expense is the amount of matching contributions. The matching contributions are paid with employer stock. |
Comprehensive Income | Comprehensive Income (Loss): Comprehensive income (loss) consists of the total of all components of comprehensive income (loss) including net income (loss). Other comprehensive income (loss) refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive income (loss) but excluded from net income (loss). Currently, the Company's other comprehensive income (loss) consists primarily of unrealized gains and losses on securities available for sale, net of deferred tax expense (benefit) and unrealized gains (losses) on derivative hedging relations. |
Earnings Per Common Share | Earnings Per Common Share : Basic earnings per common share is net income available to common shareholders divided by the weighted average number of common shares outstanding during the period. All outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends are considered participating securities for this calculation. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable under stock options and warrants. |
Loss Contingencies | Loss Contingencies : Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there now are such matters that will have a material effect on the financial statements. |
Restrictions on Cash | Restrictions on Cash : Cash on hand or on deposit with the Federal Reserve Bank was required to meet regulatory reserve and clearing requirements. |
Dividend Restriction | Dividend Restriction : Banking regulations require maintaining certain capital levels and may limit the dividends paid by the bank to the holding company or by the holding company to shareholders. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments : Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates. |
Operating Segments | Operating Segments : While the chief decision-makers monitor the revenue streams of the various products and services, operations are managed and financial performance is evaluated on a Company-wide basis. Accordingly, all of the financial service operations are considered by management to be aggregated in one reportable operating segment. |
Reclassifications | Reclassifications: Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or equity. |
Adoption of New Accounting Standards | Adopted New Accounting Standards: In February 2016, the FASB issued Accounting Standards Update (ASU) 2016-02, "Leases (topic 842)." ASU 2016-02, Leases which requires the Company as lessees to recognition in the statement of financial position lease assets and lease liabilities for those leases classified as operating leases under previous GAAP. On January 1, 2019, the Company adopted ASU 2016-02, and subsequent amendments thereto, which requires the Company to recognize most leases on the balance sheet. We adopted the standard under a modified retrospective approach as of the date of adoption and elected to apply several of the available practical expedients, including: • Carry over of historical lease determination and lease classification conclusions • Carry over of historical initial direct cost balances for existing leases • Accounting for lease and non-lease components in contracts in which the Company is a lessee as a single lease component Adoption of the leasing standard resulted in the recognition of operating right-of-use assets and operating lease liabilities of $43,723, as of January 1, 2019. These amounts were determined based on the present value of remaining minimum lease payments, discounted using the Company's incremental borrowing rate as as of the date of adoption. Prior periods were not restated and continue to be presented under legacy GAAP. Disclosures about the Company's leasing activities are presented in Note 7 - Leases. 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 ." These amendments shorten the amortization period for certain callable debt securities held at a premium to require such premiums to be amortized to the earliest call date unless applicable guidance related to certain pools of securities is applied to consider estimated prepayments. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The guidance became effective for the Company on January 1, 2019, and using a modified retrospective transition adoption approach, we recognized a cumulative effect reduction to retained earnings totaling $2,244. In October 2018, the FASB issued 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.” This update expands the list of U.S. benchmark interest rates permitted in the application of hedge accounting by adding the OIS rate based on the SOFR. Due to concerns about the sustainability of the London Interbank Offered Rate (“LIBOR”), a committee convened by the Federal Reserve Board and the Federal Reserve Bank of New York initiated an effort to introduce an alternative reference rate in the U.S. The committee identified SOFR as the preferred alternative reference rate to LIBOR. The OIS rate based on SOFR was added as a U.S. benchmark interest rate to facilitate broader use in the marketplace and provide sufficient lead time for entities to prepare for changes to interest rate risk hedging strategies. The Company adopted the provisions of ASU 2018-16 on January 1, 2019, and it did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In June 2016, FASB issued ASU 2016-13 , " Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, " (CECL) which replaces the existing incurred loss impairment methodology for loans that are collectively evaluated for impairment with a methodology that reflects management’s best estimate of lifetime expected credit losses and requires consideration of reasonable and supportable economic forecasts to develop a lifetime credit loss estimate. Topic 326 requires additional qualitative and quantitative disclosure to allow users to better understand the credit risk within the portfolio and the methodologies for determining the allowance for credit losses. The CECL standard also simplifies the accounting model for purchased credit impaired loans. Franklin Synergy will adopt Topic 326 effective January 1, 2020 using the modified retrospective approach. Our methodology for estimating lifetime expected credit losses for our loan portfolios will include the following key components: a. Segmentation of loans into pools that share common risk characteristics; b. An economic forecast period based on the relation of losses with key economic variables for each portfolio segment; c. Reversion period to historical loss experience using straight-line method; d. Inclusion of qualitative adjustments to consider factors that have not been accounted for; e. Discounted cash flow (DCF) method to measure credit impairment on each of our loan portfolio segments; f. Credit losses for loans that do not share similar risk characteristics are estimated on an individual basis. The lifetime losses for individually measured loans are estimated based on one of several methods, including the estimated fair value of the underlying collateral, observable market value of similar debt or the present value of expected cash flows. g. The estimation methodology for credit losses on unfunded lending-related commitments is similar to the process for estimating credit losses for loans, although with the addition of a probability of draw estimate that is applied to each loan portfolio segment. As part of our evaluation of the estimated impacts of CECL, we have run simulations based on our portfolio composition and current expectations of future economic conditions. The ultimate effect of CECL on our allowance for credit losses (ACL) will depend the portfolio’s credit quality and economic conditions at the time of adoption. The Company’s CECL implementation efforts are in process and continue to focus on model validation, refinement of the model assumptions, the qualitative factor, and the operational control framework to support the new process. During the first quarter of 2020, we expect all internal reviews of the adjustments to be finalized, and all processes and controls surrounding the ongoing estimate to be fully implemented and documented. At adoption, we expect to have a cumulative-effect adjustment to retained earnings for this change in the ACL, which would impact our capital. Franklin Synergy expects to continue to be well capitalized under the Basel III regulatory framework after the adoption of this standard. Franklin Synergy will avail itself of the option to phase-in over a period of three years the day one effects on regulatory capital from the adoption of CECL. For PCD loans, including Civic acquired book, the adjustment will be made through the allowance and loan balances with no impact in capital. Topic 326 also requires expected credit losses on available-for-sale (AFS) debt securities be recorded as an allowance for credit losses. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may expect zero credit losses. Franklin Synergy estimates that the adoption of this standard on January 1, 2020 will not have a material impact on our portfolio of AFS debt securities. In January 2017, the FASB issued ASU 2017-04, " Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," to simplify how entities other than private companies, such as public business entities and not-for-profit entities, are required to test goodwill for impairment by eliminating the comparison of the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. ASU 2017-04 is effective for us on January 1, 2020. The impact of this standard will depend on the market conditions at the time of the assessment date. In August 2018, the FASB issued 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 only revises disclosure requirements and will not have a significant impact on our financial statements. The amendment is effective for us on January 1, 2020. In August 2018, the FASB issued 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 disclosure 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. In August 2018, the FASB issued 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 is effective for us on January 1, 2020, and is not expected to have a significant impact on our financial statements. In December 2019, the FASB issued ASU 2019-12 , "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes ." The guidance issued in this update simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period, and the recognition for deferred tax liabilities for outside basis differences. ASU 2019-12 also simplifies aspects of the accounting for franchise taxes, enacted changes in tax laws for rates, and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. ASU 2019-12 will be effective for us on January 1, 2021, with early adoption permitted. The Company is currently evaluating the impact on its results of operations, financial position, and liquidity. 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. |
Derivatives | The Company utilizes interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. The notional amount of the interest rate swaps does not represent amounts exchanged by the parties. The amount exchanged is determined by reference to the notional amount and the other terms of the individual interest rate swap agreements. Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current earnings.For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative instrument as well as the offsetting loss or gain on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. The Company utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. For derivative instruments that are designated and qualify as a cash flow hedge, the aggregate fair value of the derivative instrument is recorded in other assets or other liabilities with any gain or loss related to changes in fair value recorded in accumulated other comprehensive income, net of tax. The gain or loss is reclassified into earnings in the same period during which the hedged asset or liability affects earnings and is presented in the same income statement line item as the earnings effect of the hedged asset or liability. The Company uses cash flow hedge relationships in an effort to manage future interest rate exposure. The hedging strategy converts the LIBOR-based variable interest rate on forecasted borrowings to a fixed interest rate and is used in an effort to protect the Company from floating interest rate variability. 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 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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. Because the Civic transaction closed on April 1, 2018, and its actual results are included in the Company’s actual operating results for the year ended December 31, 2019, there is no pro forma information for that period. 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, 2019 | |
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 AFS securities portfolio at December 31, 2019 and 2018 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss. Amortized Gross Gross Fair December 31, 2019 Mortgage-backed securities: residential $ 374,923 $ 1,876 $ (856) $ 375,943 Mortgage-backed securities: commercial 17,858 56 (134) 17,780 Corporate Notes 32,825 539 (3) 33,361 State and political subdivisions 222,624 2,566 (142) 225,048 Total $ 648,230 $ 5,037 $ (1,135) $ 652,132 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 |
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 the corresponding amounts of gross unrecognized gains and losses were as follows: Amortized Gross Gross Fair 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 |
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: 2019 2018 2017 Proceeds from sales $ 582,950 $ 176,016 $ 240,175 Gross gains 6,074 54 1,553 Gross losses (4,031) (4,214) (657) |
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, 2019 Amortized Fair Available for sale Three months or less $ — $ — Over three months through one year — — Over one year through five years 1,609 1,641 Over five years through ten years 37,406 37,918 Over ten years 216,434 218,850 Mortgage-backed securities: residential 374,923 375,943 Mortgage-backed securities: commercial 17,858 17,780 Total $ 648,230 $ 652,132 |
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, 2019 and 2018, 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 Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Available for sale Mortgage-backed securities: residential $ 49,390 $ (172) $ 91,644 $ (684) $ 141,034 $ (856) Mortgage-backed securities: commercial 4,436 (29) 7,286 (105) 11,722 (134) Corporate notes 997 (3) — — 997 (3) State and political subdivisions 29,843 (142) — — 29,843 (142) Total available for sale $ 84,666 $ (346) $ 98,930 $ (789) $ 183,596 $ (1,135) Less Than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized 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) Mortgage-backed securities: commercial 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 December 31, 2018 Fair Unrecognized Fair Unrecognized Fair Unrecognized 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) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Loans | Loans at December 31, 2019 and 2018 were as follows: December 31, December 31, Loans Construction and land development $ 591,541 $ 584,440 Commercial real estate: Nonfarm, nonresidential 944,021 754,243 Other 49,891 51,017 Residential real estate: Closed-end 1-4 family 455,920 493,065 Other 187,681 189,817 Commercial and industrial 582,641 596,793 Consumer and other 4,769 5,568 Loans before net deferred loan fees 2,816,464 2,674,943 Deferred loan fees, net (4,020) (2,544) Total loans 2,812,444 2,672,399 Allowance for loan losses (45,436) (23,451) Total loans, net of allowance for loan losses $ 2,767,008 $ 2,648,948 |
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, 2019, 2018 and 2017: Construction Commercial Residential Commercial Consumer Total December 31, 2019 Allowance for loan losses: Beginning balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Provision for loan losses 172 1,388 (281) 30,732 36 32,047 Loans charged-off (68) — (15) (10,227) (147) (10,457) Recoveries — — 15 286 94 395 Total ending allowance balance $ 4,847 $ 8,113 $ 4,462 $ 27,957 $ 57 $ 45,436 Construction Commercial Residential Commercial Consumer 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 Commercial Residential Commercial Consumer 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 |
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, 2019 and 2018. 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 Commercial Residential Commercial Consumer Total December 31, 2019 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ 17 $ 20,754 $ — $ 20,771 Collectively evaluated for impairment 4,847 8,113 4,445 7,203 57 24,665 Total ending allowance balance $ 4,847 $ 8,113 $ 4,462 $ 27,957 $ 57 $ 45,436 Loans: Individually evaluated for impairment $ 30 $ — $ 2,477 $ 24,528 $ — $ 27,035 Collectively evaluated for impairment 591,511 993,912 641,124 558,113 4,769 2,789,429 Total ending loans balance $ 591,541 $ 993,912 $ 643,601 $ 582,641 $ 4,769 $ 2,816,464 Construction Commercial Residential Commercial Consumer 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 582,142 805,260 679,693 596,626 5,568 2,669,289 Total ending loans balance $ 584,440 $ 805,260 $ 682,882 $ 596,793 $ 5,568 $ 2,674,943 |
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, 2019 and 2018: Unpaid Recorded Allowance for December 31, 2019 With no allowance recorded: Construction and land development $ 30 $ 30 $ — Residential real estate: Closed-end 1-4 family 319 311 — Other 1,523 1,523 — Commercial and industrial 11 11 — Subtotal 1,883 1,875 — With an allowance recorded: Residential real estate: Closed-end 1-4 family 643 643 17 Commercial and industrial 24,517 24,517 20,754 Subtotal 25,160 25,160 20,771 Total $ 27,043 $ 27,035 $ 20,771 December 31, 2018 With no allowance recorded: Construction and land development $ 2,298 $ 2,298 $ — Residential real estate: Closed-end 1-4 family 1,280 1,272 — Other 1,917 1,917 — Subtotal 5,495 5,487 — With an allowance recorded: Commercial and industrial 167 167 17 Subtotal 167 167 17 Total $ 5,662 $ 5,654 $ 17 The following table presents the average recorded investment of impaired loans by class of loans for the years ended December 31, 2019, 2018 and 2017: Average Recorded Investment 2019 2018 2017 With no allowance recorded: Construction and land development $ 301 $ 378 $ 921 Commercial real estate: Nonfarm, nonresidential 13 — 1,796 Residential real estate: Closed-end 1-4 family 587 715 649 Other 1,286 553 331 Commercial and industrial 670 655 899 Consumer and other — — 1 Subtotal 2,857 2,301 4,597 With an allowance recorded: Construction and land development 147 — — Commercial real estate Nonfarm, nonresidential 40 0 0 Residential real estate: Closed-end 1-4 family 56 — 22 Commercial and industrial 4,403 993 2,480 Subtotal 4,646 993 2,502 Total $ 7,503 $ 3,294 $ 7,099 |
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, 2019 and 2018: Nonaccrual Loans Past Due December 31, 2019 Construction loans $ 30 $ — Residential real estate: Closed-end 1-4 family 954 — Other 1,523 — Commercial and industrial 24,528 654 Total $ 27,035 $ 654 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 |
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, 2019 and 2018 by class of loans: 30-59 60-89 Greater Total Loans Total December 31, 2019 Construction and land development $ 508 $ — $ 30 $ 538 $ 591,003 $ 591,541 Commercial real estate: Nonfarm, nonresidential 3,981 — — 3,981 940,040 944,021 Other — — — — 49,891 49,891 Residential real estate: Closed-end 1-4 family 2,688 224 8 2,920 453,000 455,920 Other 85 961 555 1,601 186,080 187,681 Commercial and industrial 663 7,156 735 8,554 574,087 582,641 Consumer and other — — — — 4,769 4,769 $ 7,925 $ 8,341 $ 1,328 $ 17,594 $ 2,798,870 $ 2,816,464 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 — — — — 51,017 51,017 Residential real estate: Closed-end 1-4 family 2,390 404 228 3,022 490,043 493,065 Other 142 — 1,810 1,952 187,865 189,817 Commercial and industrial 241 252 208 701 596,092 596,793 Consumer and other — — — — 5,568 5,568 $ 3,582 $ 2,642 $ 2,794 $ 9,018 $ 2,665,925 $ 2,674,943 |
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, 2019 and 2018: Pass Special Substandard Total December 31, 2019 Construction and land development $ 591,293 $ 248 $ — $ 591,541 Commercial real estate: Nonfarm, nonresidential 941,260 997 1,764 944,021 Other 49,891 — — 49,891 Residential real estate: Closed-end 1-4 family 452,363 825 2,732 455,920 Other 185,170 — 2,511 187,681 Commercial and industrial 539,442 943 42,256 582,641 Consumer and other 4,769 — — 4,769 $ 2,764,188 $ 3,013 $ 49,263 $ 2,816,464 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 51,017 — — 51,017 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 557,589 8,313 30,891 596,793 Consumer and other 5,567 1 — 5,568 $ 2,610,376 $ 25,856 $ 38,711 $ 2,674,943 |
Loan Servicing (Tables)
Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018 are as follows: 2019 2018 Loan portfolios serviced for: Federal Home Loan Mortgage Corporation $ 488,790 $ 492,761 Federal National Mortgage Association 10,221 — Other 3,504 3,689 |
Related Loan Servicing Rights Activity | The related loan servicing rights activity for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Servicing rights: Beginning of year $ 3,403 $ 3,620 $ 3,621 Additions 1,132 650 933 Amortized to expense (1,289) (867) (934) End of year $ 3,246 $ 3,403 $ 3,620 |
Components of Net Loan Servicing Fees | The components of net loan servicing fees for the years ended December 31, 2019, 2018 and 2017 were as follows: 2019 2018 2017 Loan servicing fees, net: Loan servicing fees $ 1,261 $ 1,308 $ 1,270 Amortization of loan servicing fees (1,289) (867) (934) Total $ (28) $ 441 $ 336 |
Premises and Equipment and Leas
Premises and Equipment and Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Premises Equipment And Leases [Abstract] | |
Summary of Premises and Equipment | Year-end premises and equipment were as follows: 2019 2018 Construction in progress $ 286 $ 2,097 Land and land improvements 33 33 Buildings 150 150 Leasehold improvements 11,720 9,487 Furniture, fixtures, and equipment 8,075 7,133 Computer equipment and software 3,906 3,700 Automobiles 29 29 24,199 22,629 Accumulated depreciation (12,058) (10,258) $ 12,141 $ 12,371 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | ROU assets and lease liabilities by lease type, and the associated balance sheet classification, are as follows: Lease right-of-use assets Classification December 31, 2019 Operating leases Other Assets $ 39,594 Finance lease Other Assets 2,819 Total right-of-use assets $ 42,413 Lease liabilities Classification December 31, 2019 Operating leases Other Liabilities $ 41,308 Finance lease Other Liabilities 2,942 Total lease liabilities $ 44,250 |
Lease Cost | The components of total lease cost were as follows for the period ending: Lease costs December 31, 2019 Operating lease cost $ 5,069 Variable lease cost 406 Short-term lease cost 228 Finance lease cost Interest on lease liabilities (1) 164 Amortization of right-of-use asset 201 Total lease cost $ 6,068 (1) Included in interest expense on Federal Home Loan Advances and other borrowings in the Company's consolidated statement of income. All other lease costs in this table are included in occupancy and equipment expense. Supplemental Lease Information Weighted-average remaining lease term December 31, 2019 Operating leases 11.16 years Finance lease 14.01 years Weighted-average discount rate Operating leases 5.49 % Finance lease 5.49 % Cash flow information: December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 4,743 Operating cash flows from finance leases 164 Financing cash flows from finance lease 108 We lease certain branch facilities from various partnership interests of certain directors. Payments related to these partnership leases are noted in Note 15, “Related Party Transactions”. |
Finance Lease Maturity | Future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2019, are as follows: December 31, 2019 Finance Operating 2020 $ 276 $ 4,849 2021 280 4,871 2022 284 4,856 2023 288 4,885 2024 293 4,901 Thereafter 2,840 31,277 Total undiscounted lease payments (1) 4,261 55,639 Less: imputed interest (1,319) (14,331) Net lease liabilities $ 2,942 $ 41,308 (1) O n February 5, 2020, the Company purchased the properties at Columbia Avenue and 120 9th Avenue locations in Franklin, Tennessee, therefore ending the lease agreements. The total undiscounted operating lease payments at December 31, 2019 would be reduced by approximately $27,553 from $55,639 to $28,086 at December 31, 2019 taking in consideration these purchases. |
Operating Lease Maturity | Future undiscounted lease payments for finance and operating leases with initial terms of one year or more as of December 31, 2019, are as follows: December 31, 2019 Finance Operating 2020 $ 276 $ 4,849 2021 280 4,871 2022 284 4,856 2023 288 4,885 2024 293 4,901 Thereafter 2,840 31,277 Total undiscounted lease payments (1) 4,261 55,639 Less: imputed interest (1,319) (14,331) Net lease liabilities $ 2,942 $ 41,308 (1) O n February 5, 2020, the Company purchased the properties at Columbia Avenue and 120 9th Avenue locations in Franklin, Tennessee, therefore ending the lease agreements. The total undiscounted operating lease payments at December 31, 2019 would be reduced by approximately $27,553 from $55,639 to $28,086 at December 31, 2019 taking in consideration these purchases. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | The following table represents acquired intangible assets at December 31, 2019 and 2018: 2019 2018 Gross Accumulated Gross Accumulated Acquired intangible assets: Core deposit intangibles $ 3,617 $ (3,169) $ 3,617 $ (2,665) |
Schedule of Estimated Amortization Expense | The following table presents the estimated remaining amortization expense: 2020 $ 304 2021 121 2022 23 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Composition of Deposits | Composition of deposits is as follows: December 31, 2019 December 31, 2018 Retail $ 1,600,832 $ 1,450,370 Brokered 632,241 797,795 Local Government 386,903 782,890 Reciprocal and other 587,608 400,752 Total $ 3,207,584 $ 3,431,807 |
Schedule of Maturities of Time Deposits | Scheduled maturities of time deposits for the next five years were as follows: 2020 $ 374,096 2021 243,614 2022 88,286 2023 30,919 2024 12,114 Total $ 749,029 |
Federal Funds Purchased and Rep
Federal Funds Purchased and Repurchase Agreements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 2017 Average daily balance during the year $ — $ 11,302 $ 32,428 Average interest rate during the year — % 1.29 % 0.85 % Maximum month-end balance during the year $ — $ 36,071 $ 33,989 Weighted average interest rate at year end — % — % 1.14 % |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Federal Home Loan Banks [Abstract] | |
Schedule of Maturities of Advances and Interest Rates | At December 31, 2019, the scheduled maturities of these advances and interest rates were as follows: Scheduled Weighted 2020 $ 155,000 2.41 % |
Subordinated Notes (Tables)
Subordinated Notes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Terms of Each Subordinated Note offering | The following table summarizes the terms of each subordinated note offering: March 2016 June 2016 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. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019, 2018 and 2017 to the “expected” tax expense, which was computed by applying the statutory federal income tax rate of 21 percent for 2019 and 2018 and 35 percent for 2017 to income before income tax expense, is as follows: 2019 2018 2017 Computed “expected” tax expense $ 3,152 $ 8,491 $ 16,321 Increase (reduction) in tax expense resulting from: State tax expense, net of federal tax effect (1,924) (612) 333 Effect of statutory rate changes enacted (1) — — 5,323 Non-deductible merger costs — 67 19 Incentive stock options 439 475 506 Bank owned life insurance (310) (320) (286) Tax-exempt interest income, net of expense (875) (1,296) (2,585) Insurance premiums (324) (293) (347) Excess tax benefit from exercise of stock options and vesting of restricted stock (201) (647) (805) Other 230 47 52 Income tax expense $ 187 $ 5,912 $ 18,531 (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: 2019 2018 2017 Current expense Federal $ 7,647 $ 6,399 $ 13,653 State (503) (684) 1,093 Deferred expense Federal (5,024) 288 (957) State (1,933) (91) (581) Deferred tax revaluation expense — — 5,323 Income tax expense $ 187 $ 5,912 $ 18,531 |
Sources of Deferred Income Tax Assets and Liabilities | The sources of deferred income tax assets (liabilities) at December 31, 2019 and 2018 and the tax effect is as follows: 2019 2018 Deferred tax assets: Organizational and start-up costs $ 38 $ 51 Allowance for loan losses 11,679 5,881 Unrealized loss on securities — 5,427 Net operating loss carry forward 1,753 2,035 Purchase accounting fair value adjustments 565 594 Accrued other expenses 1,284 701 Nonaccrual loan interest 110 105 Loan fees 1,050 656 Cash flow hedge 416 — Lease liability 11,565 — Other 1,652 1,421 Total deferred tax asset 30,112 16,871 Deferred tax liabilities: Mortgage servicing rights $ (841) $ (879) Premises and equipment (1,620) (1,204) Prepaid expenses (431) (702) Lease right-of-use asset (11,085) — Unrealized gain on securities (907) — Other (999) (897) Total deferred tax liability (15,883) (3,682) Net deferred tax asset $ 14,229 $ 13,189 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Loans to Principal Officers, Directors, and Their Affiliates | Loans to principal officers, directors, and their affiliates during 2019 were as follows: Beginning balance $ 24,339 New loans/advances 1,144 Repayments (9,122) Ending balance $ 16,361 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Fair Value Assumptions of Stock Options | The fair value of options granted was determined using the following weighted-average assumptions as of grant date. 2019 2018 2017 Risk-free interest rate 1.68 % 3.10 % 2.05 % Expected term 7 years 7.5 years 6.9 years Expected stock price volatility 29.73 % 30.79 % 33.21 % Dividend yield 0.60 % — % 0.03 % |
Summary of Company's Stock Option Activities | A summary of the activity with respect to stock options for the years ended December 31, 2019, 2018 and 2017 follows: Shares Weighted Weighted Aggregate Outstanding at January 1, 2017 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 Granted 102,930 27.86 Exercised (326,818) 17.87 Forfeited, expired, or cancelled (84,464) 33.64 Outstanding at December 31, 2019 1,499,570 $ 22.39 6.46 $ 12,676 Vested or expected to vest 1,424,592 $ 25.88 5.85 $ 12,042 Exercisable at December 31, 2019 832,993 $ 19.62 5.85 $ 12,251 |
Summary of Stock Options Exercised | 2019 2018 2017 Stock options exercised: Intrinsic value of options exercised $ 4,268 $ 4,873 $ 4,878 Cash received from options exercised 5,307 3,047 1,615 Tax benefit realized from option exercises 86 565 484 |
Summary of Activity for Nonvested Restricted Share Awards | A summary of activity for non-vested restricted share awards for the year ended December 31, 2019, 2018 and 2017 is as follows: Non-vested Shares Shares Weighted- Non-vested at January 1, 2017 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 Granted 1,255 31.87 Vested (85,151) 29.51 Forfeited (1,628) 31.42 Non-vested at December 31, 2019 90,992 $ 32.54 |
Schedule of Restricted Stock | The Company began granting restricted stock units in 2019. The following table outlines restricted stock units that were granted, grouped by similar vesting criteria, during the twelve months ended December 31, 2019: Grant Year Units Awarded Service Period Period in which units to be settled into shares of common stock 2019 3,447 0.5 years 2019 2019 156,804 3 years 2022 |
Regulatory Capital Matters (Tab
Regulatory Capital Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Actual and Required Capital Amounts and Ratios | Actual and required capital amounts and ratios are presented below as of December 31, 2019 and 2018 for the Company and Bank. Actual Required To Be Well Capitalized Under Prompt Corrective Action Regulations (1) Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Company-Level Common equity Tier 1 capital to RWA $388,199 11.9% $146,711 4.5% N/A N/A Total Capital to RWA $487,966 15.0% $260,819 8.0% N/A N/A Tier 1 (Core) Capital to RWA $388,199 11.9% $195,614 6.0% N/A N/A Tier 1 (Core) Capital to average assets $388,199 10.3% $151,456 4.0% N/A N/A Bank-Level Common equity Tier 1 capital to RWA $441,348 13.6% $146,491 4.5% $211,599 6.5% Total Capital to RWA $482,183 14.8% $260,429 8.0% $325,536 10.0% Tier 1 (Core) Capital to RWA $441,348 13.6% $195,322 6.0% $260,429 8.0% Tier 1 (Core) Capital to average assets $441,348 11.7% $151,255 4.0% $189,069 5.0% December 31, 2018 Company-Level Common equity Tier 1 capital to RWA $367,096 12.2% $135,598 4.5% N/A N/A Total Capital to RWA $449,325 14.9% $241,064 8.0% N/A N/A Tier 1 (Core) Capital to RWA $367,096 12.2% $180,798 6.0% N/A N/A Tier 1 (Core) Capital to average assets $367,096 8.8% $167,553 4.0% N/A N/A Bank-Level Common equity Tier 1 capital to RWA $421,335 14.0% $135,613 4.5% $195,886 6.5% Total Capital to RWA $444,871 14.8% $241,090 8.0% $301,363 10.0% Tier 1 (Core) Capital to RWA $421,335 14.0% $180,818 6.0% $241,090 8.0% Tier 1 (Core) Capital to average assets $421,335 10.1% $167,420 4.0% $209,275 5.0% Note: Minimum ratios presented exclude the capital conservation buffer. |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Using: Quoted Prices Significant Significant Mortgage-backed securities: residential $ — $ 375,943 $ — Mortgage-backed securities: commercial — 17,780 — Corporate Notes — 33,361 — State and political subdivisions — 225,048 — Total securities available for sale $ — $ 652,132 $ — Loans held for sale $ — $ 43,162 $ — Other assets $ — $ 225 $ — Liabilities Other liabilities $ — $ 73 $ — Fair Value Measurements at December 31, 2018 Using: Quoted Prices Significant Significant Assets U.S. Treasury $ 253,014 $ — $ — U.S. government sponsored entities and agencies — 21,888 — Mortgage-backed securities: residential — 580,699 — Mortgage-backed securities: commercial — 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 $ — Other assets $ — $ 206 $ — Liabilities Other liabilities $ — $ 129 $ — |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The following table presents assets measured at fair value on a non-recurring basis. There were no liabilities measured at fair value on a non-recurring basis as December 31, 2019 and 2018. Total carrying value in the Quoted market prices in Models with significant Models with significant Total losses for the period ended December 31, 2019 Impaired loans, net: (1) Residential real estate: Closed-end 1-4 family $ 626 $ — $ — $ 626 $ — Commercial and industrial 3,763 — 3,650 113 — Total $ 4,389 $ — $ 3,650 $ 739 $ — December 31, 2018 Impaired loans, net (1) Commercial and industrial $ 150 $ — $ — $ 150 $ — (1) Amount is net of a valuation allowance of $20,771 and $17 at December 31, 2019 and 2018, respectively, as required by ASC 310-10, "Receivables." |
Carrying Amount and Estimated Fair Value of Financial Instruments | Carrying Level 1 Fair Value Measurements at December 31, 2019 Using: Total Level 2 Level 3 Assets Cash and cash equivalents $ 234,991 $ 234,991 $ — $ — $ 234,991 Securities available for sale 652,132 — 652,132 — 652,132 Certificates of deposit held at other financial institutions 3,590 — 3,590 — 3,590 Loans held for sale 43,162 — 43,162 — 43,162 Net loans 2,767,008 — — 2,753,761 2,753,761 Servicing rights, net 3,246 — — 3,922 3,922 Other assets 225 — 225 — 225 Accrued interest receivable 12,362 96 3,775 8,491 12,362 Liabilities Deposits $ 3,207,584 $ 2,458,555 $ 749,656 $ — $ 3,208,211 Federal Home Loan Bank advances 155,000 — 155,090 — 155,090 Subordinated notes 58,872 — — 60,922 60,922 Other liabilities 73 — 73 — 73 Accrued interest payable 4,201 154 687 3,360 4,201 Carrying Level 1 Fair Value Measurements at December 31, 2018 Using: Total Level 2 Level 3 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 2,648,948 — — 2,622,386 2,622,386 Servicing rights, net 3,403 — — 4,836 4,836 Other assets 206 — 206 — 206 Accrued interest receivable 13,337 71 5,539 7,727 13,337 Liabilities Deposits $ 3,431,807 $ 2,105,951 $ 1,319,326 $ — $ 3,425,277 Federal Home Loan Bank advances 368,500 — 366,786 — 366,786 Subordinated notes 58,693 — — 59,852 59,852 Other liabilities 129 — 129 — 129 Accrued interest payable 4,700 146 3,866 688 4,700 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | A summary of the Company's fair value hedge relationships as of December 31, 2019 are as follows (in thousands): December 31, 2019 December 31, 2018 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Estimated Notional Estimated Liability derivatives Interest rate swap agreements - securities Other Liabilities 7.32 2.53 % 3 month LIBOR $ 101,205 $ 4,954 $ — $ — December 31, 2019 December 31, 2018 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Estimated Notional Estimated Liability derivatives Interest rate swap agreements Deposits 2.34 2.23 % 1 month LIBOR $ 100,000 $ 1,592 $ — $ — |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | The effects of fair value hedge relationships reported in interest income on securities on the consolidated statements of income for the twelve months ended December 31, 2019 and 2018 were as follows (in thousands): Amount of Gain Recognized in Income Location of Gain on Hedged Item Twelve months ended December 31, 2019 2018 Liability derivatives Interest rate swap agreements - securities Interest Income $ 4,954 $ — Amount of Loss Recognized in Income Location of Loss on Derivative Twelve months ended December 31, 2019 2018 Liability derivatives Interest rate swap agreements - securities Interest Income $ (4,954) $ — |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at December 31, 2019: Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets December 31, 2019 December 31, 2018 December 31, 2019 December 31, 2018 Line item on the balance sheet Securities available-for-sale $ 101,205 $ — $ 4,954 $ — |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The effects of the Company's cash flow hedge relationships on the statement of comprehensive income (loss) during the twelve months ended December 31, 2019 and 2018 were as follows: Amount of Gain (Loss) Recognized in Other Comprehensive Income Twelve months ended December 31, 2019 2018 Interest rate swap agreements $ (1,176) $ — |
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: 2019 2018 2017 Forward contracts related to mortgage loans held for sale and interest rate contracts $ 56 $ 94 $ 32 Interest rate contracts for customers 19 31 (54) |
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, 2019 and 2018: 2019 2018 Notional Fair Notional Fair Included in other assets (liabilities): Interest rate contracts for customers $ 48,999 $ 225 $ 28,731 $ 206 Forward contracts related to mortgage loans held for sale $ 62,824 $ (73) $ 31,519 $ (129) |
Loan Commitments and Other Re_2
Loan Commitments and Other Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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: 2019 2018 Fixed Variable Fixed Variable Commitments to make loans $ 48,999 $ — $ 28,731 $ — Unused lines of credit 89,040 701,326 128,313 526,271 Standby letters of credit 7,119 48,750 8,293 31,731 |
Parent Company Only Condensed_2
Parent Company Only Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2019 2018 ASSETS Cash and cash equivalents $ 3,625 $ 3,364 Investment in banking subsidiary 463,496 426,979 Investment in other subsidiaries 3,527 1,919 Other assets 1,841 1,617 Total assets $ 472,489 $ 433,879 LIABILITIES AND EQUITY Subordinated notes $ 58,872 $ 58,693 Accrued expenses and other liabilities 3,284 2,446 Shareholders’ equity 410,333 372,740 Total liabilities and shareholders’ equity $ 472,489 $ 433,879 |
Condensed Statements of Income and Comprehensive Income | CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Year ended December 31, 2019 2018 2017 Dividends from subsidiaries $ 5,500 $ 5,925 $ 4,000 Other income 249 203 171 Interest expense 4,328 4,328 4,321 Other expense 7,614 5,163 2,890 Loss before income tax and undistributed subsidiaries income (6,193) (3,363) (3,040) Income tax benefit (2,855) (2,229) (2,671) Equity in undistributed subsidiaries income 18,160 35,655 28,468 Net income $ 14,822 $ 34,521 $ 28,099 Comprehensive income $ 31,982 $ 25,966 $ 29,997 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS Year ended December 31, 2019 2018 2017 Cash flows from operating activities Net income $ 14,822 $ 34,521 $ 28,099 Adjustments: Equity in undistributed subsidiaries income (18,160) (35,655) (28,468) Amortization of debt issuance costs 179 178 178 Stock-based compensation 851 1,008 219 Change in other assets (208) (1,367) 728 Change in other liabilities 839 (1,908) 686 Net cash from operating activities (1,677) (3,223) 1,442 Cash flows from investing activities Investments in subsidiaries — (26,512) (1,359) Net cash acquired from acquisition (See Note 2) — 24,660 — Net cash from investing activities — (1,852) (1,359) Cash flows from financing activities Proceeds from exercise of common stock warrants — — 150 Proceeds from exercise of common stock options 5,307 3,047 1,615 Proceeds from issuance of common stock, net of offering costs — (242) — Divestment of common stock issued to 401(k) plan — (308) (256) Redemption of Series A preferred stock — — — Purchase of Treasury Stock (717) — — Dividends paid on common stock (2,636) — — Noncontrolling interest distributions (16) (16) — Net cash from financing activities 1,938 2,481 1,509 Net change in cash and cash equivalents 261 (2,594) 1,592 Beginning cash and cash equivalents 3,364 5,958 4,366 Ending cash and cash equivalents $ 3,625 $ 3,364 $ 5,958 Non-cash supplemental information: Transfers from subsidiary stock based compensation expense to parent company only additional paid-in capital $ 5,066 $ 5,561 $ 2,583 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share | The factors used in the earnings per share computation follow: Year Ended December 31, 2019 2018 2017 Basic Net income available to common shareholders $ 14,806 $ 34,505 $ 28,083 Less: earnings allocated to participating securities (120) (372) (219) Net income allocated to common shareholders $ 14,686 $ 34,133 $ 27,864 Weighted average common shares outstanding including participating securities $ 14,633,399 $ 14,169,294 $ 13,145,005 Less: Participating securities (118,747) (152,638) (102,650) Average shares 14,514,652 14,016,656 13,042,355 Basic earnings per common share $ 1.01 $ 2.44 $ 2.14 Diluted Net income allocated to common shareholders $ 14,686 $ 34,133 $ 27,864 Weighted average common shares outstanding for basic earnings per common share 14,514,652 14,016,656 13,042,355 Add: Dilutive effects of assumed exercises of stock options 352,242 540,302 633,738 Add: Dilutive effects of assumed exercises of stock warrants — — 1,578 Add: Dilutive effects of assumed vesting of restricted stock units 95,413 $ — $ — Average shares and dilutive potential common shares $ 14,962,307 $ 14,556,958 $ 13,677,671 Dilutive earnings per common share $ 0.98 $ 2.34 $ 2.04 |
Quarterly Financial Results (_2
Quarterly Financial Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 and 2018: 2019 2018 Fourth Third Second First Fourth Third Second First Income Statement Data ($): Interest income $ 43,185 $ 46,531 $ 47,453 $ 47,523 $ 46,045 $ 43,717 $ 42,136 $ 38,047 Interest expense 15,072 18,269 20,088 20,103 19,125 17,155 15,231 12,931 Net interest income 28,113 28,262 27,365 27,420 26,920 26,562 26,905 25,116 Provision for loan losses 18,961 1,000 7,031 5,055 975 136 570 573 Noninterest income 4,573 4,793 4,923 3,486 (383) 3,442 4,147 3,456 Noninterest expense 21,279 18,614 19,370 22,616 21,689 18,251 18,050 15,488 Net (loss) income before taxes (7,554) 13,441 5,887 3,235 3,873 11,617 12,432 12,511 Income tax (benefit) expense (2,970) 2,117 706 334 122 1,068 2,263 2,459 Net (loss) income (4,584) 11,324 5,181 2,901 3,751 10,549 10,169 10,052 Net income available to common shareholders (4,592) 11,324 5,173 2,901 3,743 10,549 10,161 10,052 (Loss) Earnings per share, basic (1) $ (0.31) $ 0.77 $ 0.35 $ 0.20 $ 0.26 $ 0.73 $ 0.71 $ 0.76 (Loss) Earnings per share, diluted (1) $ (0.31) $ 0.75 $ 0.34 $ 0.19 $ 0.25 $ 0.70 $ 0.68 $ 0.73 (1) Quarterly rounding may vary from year-to-date totals |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 21, 2020$ / shares | Jan. 01, 2019USD ($) | Dec. 31, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||||
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 | ||||
Shared national credit portfolio | $ 136,658,000 | ||||
Change in loans held-in-portfolio (as a percent) | (45.10%) | ||||
Principal amount outstanding of loans held-in-portfolio | 249,033,000 | ||||
Payments for loans held-in-portfolio | $ 112,375,000 | ||||
Tax Cuts and Jobs Act additional income tax expense | $ 5,323,000 | ||||
Operating lease, right-of-use asset | 39,594,000 | ||||
Operating leases | $ 41,308,000 | ||||
Cumulative effect of accounting change | $ (2,244,000) | ||||
Subsequent Event | Merger Agreement | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Business combination, equity issuable exchange ratio | 0.9650 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | ||||
Business combination, per share cash consideration (in dollars per share) | $ / shares | $ 2 | ||||
Minimum | |||||
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 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful lives of premises and equipment | 15 years | ||||
Estimated useful lives of intangible assets | 10 years | ||||
ASU 2018-02 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Operating lease, right-of-use asset | 43,723,000 | ||||
Operating leases | 43,723,000 | ||||
ASU 2017-08 | |||||
Summary Of Significant Accounting Policies [Line Items] | |||||
Cumulative effect of accounting change | $ 2,244,000 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 18,176 | $ 18,176 | |
Civic Bank and Trust | |||
Business Acquisition [Line Items] | |||
Merger, common stock issued (in shares) | 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 | Core Deposit Intangibles | |||
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, 2019 | Dec. 31, 2018 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Certificates of deposit at other financial institutions | $ 3,590 | $ 3,594 | |
Goodwill | $ 18,176 | $ 18,176 | |
Civic Bank and Trust | |||
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 | Core Deposit Intangibles | |||
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, 2019 | Dec. 31, 2018 | |
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 (in dollars per share) | $ 2.28 | $ 2.09 |
Diluted (in dollars per share) | $ 2.20 | $ 1.99 |
Securities - Additional Informa
Securities - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($)securitybond | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)securitybond | |
Marketable Securities [Line Items] | ||||
Reduction in combined securities portfolio | $ (500,153) | |||
Reduction in combined securities portfolio (as a percent) | (43.40%) | |||
Transfer from held to maturity securities to available for sale securities amortized cost | $ 117,409 | |||
Transfer from held to maturity securities to available for sale securities fair value | $ 121,964 | |||
Number of bonds transferred to AFS | bond | 16 | |||
Carrying value of pledged securities | $ 294,585 | $ 294,585 | $ 939,440 | |
Number of available for sale securities in an unrealized loss position | security | 56 | 56 | 163 | |
Number of HTM securities in an unrecognized loss position | security | 0 | 0 | 33 | |
ASU 2017-12 | ||||
Marketable Securities [Line Items] | ||||
Number of bonds transferred from HTM intention to AFS intention under one-time exemption | bond | 40 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 648,230 | $ 1,051,436 |
Gross Unrealized Gains | 5,037 | 971 |
Gross Unrealized Losses | (1,135) | (21,739) |
Fair Value | 652,132 | 1,030,668 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 253,015 | |
Gross Unrealized Gains | 59 | |
Gross Unrealized Losses | (60) | |
Fair Value | 253,014 | |
U.S. government sponsored entities and agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 21,999 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (112) | |
Fair Value | 21,888 | |
Mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 374,923 | 596,766 |
Gross Unrealized Gains | 1,876 | 27 |
Gross Unrealized Losses | (856) | (16,094) |
Fair Value | 375,943 | 580,699 |
Mortgage-backed securities: commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,858 | |
Gross Unrealized Gains | 56 | |
Gross Unrealized Losses | (134) | |
Fair Value | 17,780 | |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,744 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (900) | |
Fair Value | 24,844 | |
Corporate Notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 32,825 | 12,480 |
Gross Unrealized Gains | 539 | 21 |
Gross Unrealized Losses | (3) | (77) |
Fair Value | 33,361 | 12,424 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 222,624 | 141,432 |
Gross Unrealized Gains | 2,566 | 863 |
Gross Unrealized Losses | (142) | (4,496) |
Fair Value | $ 225,048 | $ 137,799 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of HTM Securities Portfolio (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 0 | $ 121,617,000 |
Gross Unrecognized Gains | 500,000 | |
Gross Unrecognized Losses | (3,162,000) | |
Fair Value | $ 0 | 118,955,000 |
Mortgage-backed securities: residential | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 75,944,000 | |
Gross Unrecognized Gains | 34,000 | |
Gross Unrecognized Losses | (3,072,000) | |
Fair Value | 72,906,000 | |
State and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 45,673,000 | |
Gross Unrecognized Gains | 466,000 | |
Gross Unrecognized Losses | (90,000) | |
Fair Value | $ 46,049,000 |
Securities - Schedule of Realiz
Securities - Schedule of Realized Gain (Losses) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Proceeds from sales | $ 582,950 | $ 176,016 | $ 240,175 |
Gross gains | 6,074 | 54 | 1,553 |
Gross losses | $ 4,031 | $ 4,214 | $ 657 |
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, 2019 | Dec. 31, 2018 |
Available for sale | ||
Three months or less | $ 0 | |
Over three months through one year | 0 | |
Over one year through five years | 1,609 | |
Over five years through ten years | 37,406 | |
Over ten years | 216,434 | |
Amortized Cost | 648,230 | $ 1,051,436 |
Fair Value | ||
Three months or less | 0 | |
Over three months through one year | 0 | |
Over one year through five years | 1,641 | |
Over five years through ten years | 37,918 | |
Over ten years | 218,850 | |
Total | 652,132 | 1,030,668 |
Asset-backed securities | ||
Available for sale | ||
Amortized Cost | 25,744 | |
Fair Value | ||
Total | 24,844 | |
Mortgage-backed securities: residential | ||
Available for sale | ||
Amortized Cost, Mortgage-backed securities not due at a single maturity date | 374,923 | |
Amortized Cost | 374,923 | 596,766 |
Fair Value | ||
Mortgage-backed securities not due at a single maturity date | 375,943 | |
Total | 375,943 | $ 580,699 |
Mortgage-backed securities: commercial | ||
Available for sale | ||
Amortized Cost, Mortgage-backed securities not due at a single maturity date | 17,858 | |
Amortized Cost | 17,858 | |
Fair Value | ||
Mortgage-backed securities not due at a single maturity date | 17,780 | |
Total | $ 17,780 |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Losses and Fair Value by Major Security Type (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less Than 12 Months | $ 84,666 | $ 293,410 |
12 Months or Longer | 98,930 | 579,927 |
Total | 183,596 | 873,337 |
Unrealized Losses | ||
Less Than 12 Months | (346) | (1,910) |
12 Months or Longer | (789) | (19,829) |
Total | (1,135) | (21,739) |
Fair Value | ||
Less Than 12 Months | 10,601 | |
12 Months or Longer | 71,742 | |
Total | 82,343 | |
Unrecognized Losses | ||
Less Than 12 Months | (79) | |
12 Months or Longer | (3,083) | |
Total | (3,162) | |
U.S. Treasury securities | ||
Fair Value | ||
Less Than 12 Months | 163,722 | |
12 Months or Longer | 0 | |
Total | 163,722 | |
Unrealized Losses | ||
Less Than 12 Months | (60) | |
12 Months or Longer | 0 | |
Total | (60) | |
U.S. government sponsored entities and agencies | ||
Fair Value | ||
Less Than 12 Months | 1,355 | |
12 Months or Longer | 19,937 | |
Total | 21,292 | |
Unrealized Losses | ||
Less Than 12 Months | (12) | |
12 Months or Longer | (100) | |
Total | (112) | |
Mortgage-backed securities: residential | ||
Fair Value | ||
Less Than 12 Months | 49,390 | 83,203 |
12 Months or Longer | 91,644 | 490,752 |
Total | 141,034 | 573,955 |
Unrealized Losses | ||
Less Than 12 Months | (172) | (755) |
12 Months or Longer | (684) | (15,339) |
Total | (856) | (16,094) |
Fair Value | ||
Less Than 12 Months | 2,239 | |
12 Months or Longer | 68,067 | |
Total | 70,306 | |
Unrecognized Losses | ||
Less Than 12 Months | (40) | |
12 Months or Longer | (3,032) | |
Total | (3,072) | |
Mortgage-backed securities: commercial | ||
Fair Value | ||
Less Than 12 Months | 4,436 | 24,845 |
12 Months or Longer | 7,286 | 0 |
Total | 11,722 | 24,845 |
Unrealized Losses | ||
Less Than 12 Months | (29) | (900) |
12 Months or Longer | (105) | 0 |
Total | (134) | (900) |
Corporate Notes | ||
Fair Value | ||
Less Than 12 Months | 997 | 9,839 |
12 Months or Longer | 0 | 0 |
Total | 997 | 9,839 |
Unrealized Losses | ||
Less Than 12 Months | (3) | (77) |
12 Months or Longer | 0 | 0 |
Total | (3) | (77) |
State and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 29,843 | 10,446 |
12 Months or Longer | 0 | 69,238 |
Total | 29,843 | 79,684 |
Unrealized Losses | ||
Less Than 12 Months | (142) | (106) |
12 Months or Longer | 0 | (4,390) |
Total | $ (142) | (4,496) |
Fair Value | ||
Less Than 12 Months | 8,362 | |
12 Months or Longer | 3,675 | |
Total | 12,037 | |
Unrecognized Losses | ||
Less Than 12 Months | (39) | |
12 Months or Longer | (51) | |
Total | $ (90) |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 2,816,464 | $ 2,674,943 | ||
Deferred loan fees, net | 4,020 | 2,544 | ||
Total loans | 2,812,444 | 2,672,399 | ||
Allowance for loan losses | 45,436 | 23,451 | $ 21,247 | $ 16,553 |
Net loans | 2,767,008 | 2,648,948 | ||
Construction and Land Development | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 591,541 | 584,440 | ||
Allowance for loan losses | 4,847 | 4,743 | 3,802 | 3,776 |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 993,912 | 805,260 | ||
Allowance for loan losses | 8,113 | 6,725 | 5,981 | 4,266 |
Commercial Real Estate | Nonfarm, nonresidential | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 944,021 | 754,243 | ||
Commercial Real Estate | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 49,891 | 51,017 | ||
Residential Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 643,601 | 682,882 | ||
Allowance for loan losses | 4,462 | 4,743 | 3,834 | 2,398 |
Residential Real Estate | Closed-end 1-4 family | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 455,920 | 493,065 | ||
Residential Real Estate | Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 187,681 | 189,817 | ||
Commercial and Industrial | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 582,641 | 596,793 | ||
Allowance for loan losses | 27,957 | 7,166 | 7,587 | 6,068 |
Consumer and Other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 4,769 | 5,568 | ||
Allowance for loan losses | $ 57 | $ 74 | $ 43 | $ 45 |
Loans - Activity in Allowance f
Loans - Activity in Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 23,451 | $ 21,247 | $ 16,553 |
Provision for loan losses | 32,047 | 2,254 | 4,313 |
Loans charged-off | (10,457) | (121) | (360) |
Recoveries | 395 | 71 | 741 |
Total ending allowance balance | 45,436 | 23,451 | 21,247 |
Construction and Land Development | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,743 | 3,802 | 3,776 |
Provision for loan losses | 172 | 978 | (642) |
Loans charged-off | (68) | (38) | 0 |
Recoveries | 0 | 1 | 668 |
Total ending allowance balance | 4,847 | 4,743 | 3,802 |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 6,725 | 5,981 | 4,266 |
Provision for loan losses | 1,388 | 744 | 1,715 |
Loans charged-off | 0 | 0 | |
Recoveries | 0 | 0 | |
Total ending allowance balance | 8,113 | 6,725 | 5,981 |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 4,743 | 3,834 | 2,398 |
Provision for loan losses | (281) | 872 | 1,387 |
Loans charged-off | (15) | (7) | (1) |
Recoveries | 15 | 44 | 50 |
Total ending allowance balance | 4,462 | 4,743 | 3,834 |
Commercial and Industrial | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 7,166 | 7,587 | 6,068 |
Provision for loan losses | 30,732 | (383) | 1,823 |
Loans charged-off | (10,227) | (49) | (310) |
Recoveries | 286 | 11 | 6 |
Total ending allowance balance | 27,957 | 7,166 | 7,587 |
Consumer and Other | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | 74 | 43 | 45 |
Provision for loan losses | 36 | 43 | 30 |
Loans charged-off | (147) | (27) | (49) |
Recoveries | 94 | 15 | 17 |
Total ending allowance balance | $ 57 | $ 74 | $ 43 |
Loans - Additional Information
Loans - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Allowance for loan losses | $ 45,436,000 | $ 23,451,000 | $ 45,436,000 | $ 23,451,000 | $ 21,247,000 | $ 16,553,000 | ||||||
Provision for loan losses | 18,961,000 | $ 1,000,000 | $ 7,031,000 | $ 5,055,000 | 975,000 | $ 136,000 | $ 570,000 | $ 573,000 | 32,047,000 | 2,254,000 | 4,313,000 | |
Net interest income | 28,113,000 | $ 28,262,000 | $ 27,365,000 | $ 27,420,000 | 26,920,000 | $ 26,562,000 | $ 26,905,000 | $ 25,116,000 | $ 111,160,000 | $ 105,503,000 | 97,046,000 | |
Number of loans modified as troubled debt restructuring | contract | 1 | 1 | ||||||||||
Loans modified as troubled debt restructuring, Amount | 311,000 | 167,000 | $ 311,000 | $ 167,000 | ||||||||
Commercial Real Estate | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Allowance for loan losses | 8,113,000 | 6,725,000 | 8,113,000 | 6,725,000 | 5,981,000 | 4,266,000 | ||||||
Commercial and Industrial | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Allowance for loan losses | 27,957,000 | 7,166,000 | 27,957,000 | 7,166,000 | $ 7,587,000 | $ 6,068,000 | ||||||
Increase loans outstanding | 3,995,000 | |||||||||||
Classified and Criticized Loans | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Increase loans outstanding | (12,291,000) | |||||||||||
Nonfarm, nonresidential | Commercial Real Estate | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Increase loans outstanding | 12,013,000 | |||||||||||
MidSouth And Civic | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Loans receivable carrying amount | 58,745,000 | 58,745,000 | ||||||||||
Unpaid principal balance | 59,471,000 | 59,471,000 | ||||||||||
Estimated credit discount | 726,000 | 726,000 | ||||||||||
Allowance for loan losses | 77,000 | 77,000 | ||||||||||
PCI Loans | ||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||
Allowance for loan losses | $ 22,000 | $ 0 | $ 22,000 | $ 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, 2019 | Dec. 31, 2018 |
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||
Individually evaluated for impairment | $ 20,771 | $ 17 |
Collectively evaluated for impairment | 24,665 | 23,434 |
Total ending allowance balance | 45,436 | 23,451 |
Individually evaluated for impairment | 27,035 | 5,654 |
Collectively evaluated for impairment | 2,789,429 | 2,669,289 |
Total | 2,816,464 | 2,674,943 |
Construction and Land Development | ||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 4,847 | 4,743 |
Total ending allowance balance | 4,847 | 4,743 |
Individually evaluated for impairment | 30 | 2,298 |
Collectively evaluated for impairment | 591,511 | 582,142 |
Total | 591,541 | 584,440 |
Commercial Real Estate | ||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 8,113 | 6,725 |
Total ending allowance balance | 8,113 | 6,725 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 993,912 | 805,260 |
Total | 993,912 | 805,260 |
Residential Real Estate | ||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||
Individually evaluated for impairment | 17 | 0 |
Collectively evaluated for impairment | 4,445 | 4,743 |
Total ending allowance balance | 4,462 | 4,743 |
Individually evaluated for impairment | 2,477 | 3,189 |
Collectively evaluated for impairment | 641,124 | 679,693 |
Total | 643,601 | 682,882 |
Commercial and Industrial | ||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||
Individually evaluated for impairment | 20,754 | 17 |
Collectively evaluated for impairment | 7,203 | 7,149 |
Total ending allowance balance | 27,957 | 7,166 |
Individually evaluated for impairment | 24,528 | 167 |
Collectively evaluated for impairment | 558,113 | 596,626 |
Total | 582,641 | 596,793 |
Consumer and Other | ||
Allowance For Loan Losses And Recorded Investment In Loans [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 57 | 74 |
Total ending allowance balance | 57 | 74 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 4,769 | 5,568 |
Total | $ 4,769 | $ 5,568 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Unpaid Principal Balance | ||
With no allowance recorded | $ 1,883 | $ 5,495 |
With an allowance recorded | 25,160 | 167 |
Total | 27,043 | 5,662 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no allowance recorded | 1,875 | 5,487 |
With an allowance recorded | 25,160 | 167 |
Total | 27,035 | 5,654 |
Allowance for Loan Losses Allocated | 20,771 | 17 |
Construction and Land Development | ||
Unpaid Principal Balance | ||
With no allowance recorded | 30 | 2,298 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no allowance recorded | 30 | 2,298 |
Residential Real Estate | Closed-end 1-4 family | ||
Unpaid Principal Balance | ||
With no allowance recorded | 319 | 1,280 |
With an allowance recorded | 643 | |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no allowance recorded | 311 | 1,272 |
With an allowance recorded | 643 | |
Allowance for Loan Losses Allocated | 17 | |
Residential Real Estate | Other | ||
Unpaid Principal Balance | ||
With no allowance recorded | 1,523 | 1,917 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no allowance recorded | 1,523 | 1,917 |
Commercial and Industrial | ||
Unpaid Principal Balance | ||
With no allowance recorded | 11 | |
With an allowance recorded | 24,517 | 167 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
With no allowance recorded | 11 | |
With an allowance recorded | 24,517 | 167 |
Allowance for Loan Losses Allocated | $ 20,754 | $ 17 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment of Impaired Loans by Class of Loan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | $ 2,857 | $ 2,301 | $ 4,597 |
Average Recorded Investment, With an allowance recorded | 4,646 | 993 | 2,502 |
Average Recorded Investment | 7,503 | 3,294 | 7,099 |
Construction and Land Development | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | 301 | 378 | 921 |
Average Recorded Investment, With an allowance recorded | 147 | 0 | 0 |
Commercial Real Estate | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | 13 | ||
Commercial Real Estate | Nonfarm, nonresidential | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | 0 | 1,796 | |
Average Recorded Investment, With an allowance recorded | 40 | 0 | 0 |
Residential Real Estate | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With an allowance recorded | 56 | ||
Residential Real Estate | Closed-end 1-4 family | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | 587 | 715 | 649 |
Average Recorded Investment, With an allowance recorded | 0 | 22 | |
Residential Real Estate | Other | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | 1,286 | 553 | 331 |
Commercial and Industrial | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | 670 | 655 | 899 |
Average Recorded Investment, With an allowance recorded | 4,403 | 993 | 2,480 |
Consumer and Other | |||
Allowance for Loan Losses Allocated | |||
Average Recorded Investment, With no allowance recorded | $ 0 | $ 0 | $ 1 |
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, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 27,035 | $ 5,488 |
Loans Past Due Over 90 Days | 654 | 208 |
Construction loans | Construction loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 30 | 2,298 |
Loans Past Due Over 90 Days | 0 | 0 |
Residential Real Estate | Closed-end 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 954 | 1,273 |
Loans Past Due Over 90 Days | 0 | 0 |
Residential Real Estate | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,523 | 1,917 |
Loans Past Due Over 90 Days | 0 | 0 |
Commercial and Industrial | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 24,528 | 0 |
Loans Past Due Over 90 Days | $ 654 | $ 208 |
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, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | $ 17,594 | $ 9,018 |
Aging of Recorded Investment, Loans Not Past Due | 2,798,870 | 2,665,925 |
Total | 2,816,464 | 2,674,943 |
Construction and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 538 | 2,828 |
Aging of Recorded Investment, Loans Not Past Due | 591,003 | 581,612 |
Total | 591,541 | 584,440 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 993,912 | 805,260 |
Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 643,601 | 682,882 |
Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 8,554 | 701 |
Aging of Recorded Investment, Loans Not Past Due | 574,087 | 596,092 |
Total | 582,641 | 596,793 |
Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
Aging of Recorded Investment, Loans Not Past Due | 4,769 | 5,568 |
Total | 4,769 | 5,568 |
Nonfarm, nonresidential | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 3,981 | 515 |
Aging of Recorded Investment, Loans Not Past Due | 940,040 | 753,728 |
Total | 944,021 | 754,243 |
Commercial real estate, other | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
Aging of Recorded Investment, Loans Not Past Due | 49,891 | 51,017 |
Total | 49,891 | 51,017 |
Closed-end 1-4 family | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 2,920 | 3,022 |
Aging of Recorded Investment, Loans Not Past Due | 453,000 | 490,043 |
Total | 455,920 | 493,065 |
Residential real estate, other | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 1,601 | 1,952 |
Aging of Recorded Investment, Loans Not Past Due | 186,080 | 187,865 |
Total | 187,681 | 189,817 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 7,925 | 3,582 |
30-59 Days Past Due | Construction and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 508 | 294 |
30-59 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 663 | 241 |
30-59 Days Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
30-59 Days Past Due | Nonfarm, nonresidential | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 3,981 | 515 |
30-59 Days Past Due | Commercial real estate, other | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
30-59 Days Past Due | Closed-end 1-4 family | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 2,688 | 2,390 |
30-59 Days Past Due | Residential real estate, other | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 85 | 142 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 8,341 | 2,642 |
60-89 Days Past Due | Construction and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 1,986 |
60-89 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 7,156 | 252 |
60-89 Days Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
60-89 Days Past Due | Nonfarm, nonresidential | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
60-89 Days Past Due | Commercial real estate, other | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
60-89 Days Past Due | Closed-end 1-4 family | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 224 | 404 |
60-89 Days Past Due | Residential real estate, other | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 961 | 0 |
Greater Than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 1,328 | 2,794 |
Greater Than 89 Days Past Due | Construction and Land Development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 30 | 548 |
Greater Than 89 Days Past Due | Commercial and Industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 735 | 208 |
Greater Than 89 Days Past Due | Consumer and Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
Greater Than 89 Days Past Due | Nonfarm, nonresidential | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
Greater Than 89 Days Past Due | Commercial real estate, other | Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 0 | 0 |
Greater Than 89 Days Past Due | Closed-end 1-4 family | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | 8 | 228 |
Greater Than 89 Days Past Due | Residential real estate, other | Residential Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of Recorded Investment, Total Past Due | $ 555 | $ 1,810 |
Loans - Summary of Risk Categor
Loans - Summary of Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Risk Category Of Loans [Line Items] | ||
Total | $ 2,816,464 | $ 2,674,943 |
Construction and Land Development | ||
Risk Category Of Loans [Line Items] | ||
Total | 591,541 | 584,440 |
Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 0 | |
Total | 993,912 | 805,260 |
Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total | 643,601 | 682,882 |
Commercial and Industrial | ||
Risk Category Of Loans [Line Items] | ||
Total | 582,641 | 596,793 |
Consumer and Other | ||
Risk Category Of Loans [Line Items] | ||
Total | 4,769 | 5,568 |
Pass | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 2,764,188 | 2,610,376 |
Pass | Construction and Land Development | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 591,293 | 580,468 |
Pass | Commercial and Industrial | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 539,442 | 557,589 |
Pass | Consumer and Other | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 4,769 | 5,567 |
Special Mention | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 3,013 | 25,856 |
Special Mention | Construction and Land Development | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 248 | 1,416 |
Special Mention | Commercial and Industrial | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 943 | 8,313 |
Special Mention | Consumer and Other | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 0 | 1 |
Substandard | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 49,263 | 38,711 |
Substandard | Construction and Land Development | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 0 | 2,556 |
Substandard | Commercial and Industrial | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 42,256 | 30,891 |
Substandard | Consumer and Other | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 0 | 0 |
Nonfarm, nonresidential | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total | 944,021 | 754,243 |
Nonfarm, nonresidential | Pass | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 941,260 | 739,469 |
Nonfarm, nonresidential | Special Mention | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 997 | 14,774 |
Nonfarm, nonresidential | Substandard | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 1,764 | 0 |
Commercial real estate, other | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total | 49,891 | 51,017 |
Commercial real estate, other | Pass | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 49,891 | 51,017 |
Commercial real estate, other | Special Mention | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 0 | |
Commercial real estate, other | Substandard | Commercial Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 0 | |
Closed-end 1-4 family | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total | 455,920 | 493,065 |
Closed-end 1-4 family | Pass | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 452,363 | 489,781 |
Closed-end 1-4 family | Special Mention | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 825 | 948 |
Closed-end 1-4 family | Substandard | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 2,732 | 2,336 |
Other | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total | 187,681 | 189,817 |
Other | Pass | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 185,170 | 186,485 |
Other | Special Mention | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | 0 | 404 |
Other | Substandard | Residential Real Estate | ||
Risk Category Of Loans [Line Items] | ||
Total Loans | $ 2,511 | $ 2,928 |
Loan Servicing - Additional Inf
Loan Servicing - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Transfers and Servicing [Abstract] | ||
Escrow balances maintained | $ 2,423 | $ 2,588 |
Fair value of servicing rights | $ 3,922 | $ 4,836 |
Weighted average discount rate | 9.50% | 9.50% |
Weighted average prepayment speed | 16.80% | 11.90% |
Loan Servicing - Schedule of Lo
Loan Servicing - Schedule of Loans Serviced Not Reported as Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Mortgage Corporation | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | $ 488,790 | $ 492,761 |
Federal National Mortgage Association | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | 10,221 | 0 |
Other | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | $ 3,504 | $ 3,689 |
Loan Servicing - Related Loan S
Loan Servicing - Related Loan Servicing Rights Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |||
Beginning of year | $ 3,403 | $ 3,620 | $ 3,621 |
Additions | 1,132 | 650 | 933 |
Amortized to expense | (1,289) | (867) | (934) |
End of year | $ 3,246 | $ 3,403 | $ 3,620 |
Loan Servicing - Components of
Loan Servicing - Components of Net Loan Servicing Fees (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |||
Loan Servicing Fees | $ 1,261 | $ 1,308 | $ 1,270 |
Amortization of loan servicing fees | (1,289) | (867) | (934) |
Total | $ (28) | $ 441 | $ 336 |
Premises and Equipment and Le_2
Premises and Equipment and Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Premises Equipment And Leases [Abstract] | |||
Depreciation and amortization on premises and equipment | $ 1,800 | $ 1,713 | $ 1,482 |
Premises and Equipment and Le_3
Premises and Equipment and Leases - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 24,199 | $ 22,629 |
Accumulated depreciation | (12,058) | (10,258) |
Property plant and equipment net | 12,141 | 12,371 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 286 | 2,097 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 33 | 33 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 150 | 150 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 11,720 | 9,487 |
Furniture, fixtures, and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 8,075 | 7,133 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 3,906 | 3,700 |
Automobiles | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 29 | $ 29 |
Leases - Summary of Consolidate
Leases - Summary of Consolidated Statements of Condition Classification of ROU Assets and Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lease right-of-use assets | |
Operating leases | $ 39,594 |
Finance lease | 2,819 |
Total right-of-use assets | 42,413 |
Lease liabilities | |
Operating leases | 41,308 |
Finance lease | 2,942 |
Total lease liabilities | $ 44,250 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Costs and Other Lease Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease costs | |||
Operating lease cost | $ 5,069 | ||
Variable lease cost | 406 | ||
Short-term lease cost | 228 | ||
Finance lease cost | |||
Interest on lease liabilities | 164 | ||
Amortization of right-of-use asset | 201 | ||
Total lease cost | 6,068 | ||
Rent expense | 5,904 | ||
Rent expense | $ 5,528 | $ 4,454 | |
Interest on lease liabilities | $ 164 |
Leases - Future Undiscounted Le
Leases - Future Undiscounted Lease Payments for Finance and Operating Leases (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Dec. 31, 2019 |
Finance Lease | ||
2020 | $ 276 | |
2021 | 280 | |
2022 | 284 | |
2023 | 288 | |
2024 | 293 | |
Thereafter | 2,840 | |
Total undiscounted lease payments(1) | 4,261 | |
Less: imputed interest | (1,319) | |
Net lease liabilities | 2,942 | |
Operating Leases | ||
2020 | 4,849 | |
2021 | 4,871 | |
2022 | 4,856 | |
2023 | 4,885 | |
2024 | 4,901 | |
Thereafter | 31,277 | |
Total undiscounted lease payments | 55,639 | |
Less: imputed interest | (14,331) | |
Net lease liabilities | 41,308 | |
Total undiscounted lease payments | $ 55,639 | |
Subsequent Event | ||
Operating Leases | ||
Total undiscounted lease payments | $ 28,086 | |
Decrease in payments due | 27,553 | |
Total undiscounted lease payments | $ 28,086 |
Leases - Schedule of Weighted A
Leases - Schedule of Weighted Average Remaining Term and Discounted Rates (Details) | Dec. 31, 2019 |
Weighted-average remaining lease term | |
Operating leases | 11 years 1 month 28 days |
Finance lease | 14 years 3 days |
Weighted-average discount rate | |
Operating leases | 5.49% |
Finance lease | 5.49% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 4,743 |
Operating cash flows from finance leases | 164 |
Financing cash flows from finance lease | $ 108 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 01, 2018 | Jul. 01, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 18,176 | $ 18,176 | |||
Core deposit intangible, net | 448 | 952 | |||
Accumulated amortization | 3,169 | 2,665 | |||
Aggregate amortization expense | 504 | 612 | $ 473 | ||
Core Deposit Intangibles | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Core deposit intangible, net | 448 | $ 952 | |||
MidSouth Bank | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Accumulated amortization | 2,726 | ||||
MidSouth Bank | Core Deposit Intangibles | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Fair value of intangible assets | $ 3,059 | ||||
Estimated economic life | 8 years 2 months 12 days | ||||
Civic Bank and Trust | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 9,052 | ||||
Civic Bank and Trust | Core Deposit Intangibles | |||||
Schedule of Goodwill and Intangible Assets [Line Items] | |||||
Fair value of intangible assets | $ 558 | ||||
Estimated economic life | 3 years 2 months 12 days | ||||
Accumulated amortization | $ 443 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Acquired Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Gross Carrying Amount | $ 3,617 | $ 3,617 |
Accumulated Amortization | $ (3,169) | $ (2,665) |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 304 |
2021 | 121 |
2022 | $ 23 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fees And Commissions Income [Abstract] | ||
Time deposits, $250,000 or more | $ 182,435 | $ 368,635 |
Deposit accounts in overdraft status reclassified to loans | $ 151 | $ 142 |
Deposits - Schedule of Composit
Deposits - Schedule of Composition of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Retail | $ 1,600,832 | $ 1,450,370 |
Brokered | 632,241 | 797,795 |
Local Government | 386,903 | 782,890 |
Reciprocal and other | 587,608 | 400,752 |
Total deposits | $ 3,207,584 | $ 3,431,807 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Maturities of Time Deposits [Abstract] | |
2020 | $ 374,096 |
2021 | 243,614 |
2022 | 88,286 |
2023 | 30,919 |
2024 | 12,114 |
Total | $ 749,029 |
Federal Funds Purchased and R_2
Federal Funds Purchased and Repurchase Agreements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Assets Sold under Agreements to Repurchase [Line Items] | ||
Federal home loan bank, advances, maximum amount available | $ 633,910,000 | |
Outstanding federal funds purchased | $ 0 | $ 0 |
Repurchase Agreements | no | no |
Securities pledged for repurchase agreements | $ 0 | |
Federal Funds Purchased | ||
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_3
Federal Funds Purchased and Repurchase Agreements - Summary of Information Concerning Securities Sold under Agreements to Repurchase (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Brokers and Dealers [Abstract] | |||
Average daily balance during the year | $ 0 | $ 11,302 | $ 32,428 |
Average interest rate during the year | 0.00% | 1.29% | 0.85% |
Maximum month-end balance during the year | $ 0 | $ 36,071 | $ 33,989 |
Weighted average interest rate at year end | 0.00% | 0.00% | 1.14% |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Banks [Abstract] | ||
Federal Home Loan Bank advances | $ 155,000 | $ 368,500 |
Loans pledged as security | 995,104 | |
Federal home loan bank, advances, maximum amount available | $ 633,910 |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances - Schedule of Maturities of Advances and Interest Rates (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Scheduled Maturities | |
2020 | $ 155,000 |
Weighted Average Rates | |
2020 | 2.41% |
Subordinated Notes - Additional
Subordinated Notes - Additional Information (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2016 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||||
Subordinated notes, net | $ 58,872,000 | $ 58,693,000 | ||
Subordinated Debt | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 60,000,000 | |||
Subordinated Debt | March 2016 Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 40,000,000 | |||
Interest repricing margin | 6.875% | |||
Subordinated Debt | June 2016 Subordinated Notes | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 20,000,000 | |||
Interest repricing margin | 7.00% |
Subordinated Notes - Summary of
Subordinated Notes - Summary of Terms of Each Subordinated Note offering (Detail) - USD ($) | 1 Months Ended | ||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2019 | |
LIBOR | March 2016 Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 5.636% | ||
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Principal amount issued | $ 60,000,000 | ||
Subordinated Debt | March 2016 Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Principal amount issued | $ 40,000,000 | ||
Initial fixed interest rate | 6.875% | ||
Initial interest rate period | 5 years | ||
Subordinated Debt | June 2016 Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Principal amount issued | $ 20,000,000 | ||
Initial fixed interest rate | 7.00% | ||
Initial interest rate period | 5 years | ||
Subordinated Debt | LIBOR | June 2016 Subordinated Notes | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 6.04% |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postemployment Benefits Disclosure [Line Items] | |||
Expense for the period | $ 755 | $ 687 | $ 621 |
Employee Contribution Up to First 2% | |||
Postemployment Benefits Disclosure [Line Items] | |||
Contribution equivalent to the company's common stock | 100.00% | ||
Employee Contribution on Next 4% | |||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Line Items] | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Uncertain tax positions | $ 0 | $ 0 | $ 0 |
Interest and penalties | 0 | $ 0 | $ 0 |
Internal Revenue Service (IRS) | |||
Income Tax Disclosure [Line Items] | |||
Federal net operating losses annual limitation amount | 1,300,000 | ||
MidSouth Bank | |||
Income Tax Disclosure [Line Items] | |||
Net operating losses acquired from acquisition | $ 8,346,000 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Computed “expected” tax expense | $ 3,152 | $ 8,491 | $ 16,321 | ||||||||
State tax expense, net of federal tax effect | (1,924) | (612) | 333 | ||||||||
Effective of statutory rate changes enacted | 0 | 0 | 5,323 | ||||||||
Non-deductible merger costs | 0 | 67 | 19 | ||||||||
Incentive stock options | 439 | 475 | 506 | ||||||||
Bank owned life insurance | (310) | (320) | (286) | ||||||||
Tax-exempt interest income, net of expense | (875) | (1,296) | (2,585) | ||||||||
Insurance premiums | (324) | (293) | (347) | ||||||||
Excess tax benefit from exercise of stock options and vesting of restricted stock | (201) | (647) | (805) | ||||||||
Other | 230 | 47 | 52 | ||||||||
Income tax expense | $ (2,970) | $ 2,117 | $ 706 | $ 334 | $ 122 | $ 1,068 | $ 2,263 | $ 2,459 | $ 187 | $ 5,912 | $ 18,531 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current expense | |||||||||||
Federal | $ 7,647 | $ 6,399 | $ 13,653 | ||||||||
State | (503) | (684) | 1,093 | ||||||||
Deferred expense | |||||||||||
Federal | (5,024) | 288 | (957) | ||||||||
State | (1,933) | (91) | (581) | ||||||||
Deferred tax revaluation expense | 5,323 | ||||||||||
Income tax expense | $ (2,970) | $ 2,117 | $ 706 | $ 334 | $ 122 | $ 1,068 | $ 2,263 | $ 2,459 | $ 187 | $ 5,912 | $ 18,531 |
Income Taxes - Sources of Defer
Income Taxes - Sources of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Organizational and start-up costs | $ 38 | $ 51 |
Allowance for loan losses | 11,679 | 5,881 |
Unrealized loss on securities | 0 | 5,427 |
Net operating loss carry forward | 1,753 | 2,035 |
Purchase accounting fair value adjustments | 565 | 594 |
Accrued other expenses | 1,284 | 701 |
Nonaccrual loan interest | 110 | 105 |
Loan fees | 1,050 | 656 |
Cash flow hedge | 416 | 0 |
Lease liability | 11,565 | 0 |
Other | 1,652 | 1,421 |
Total deferred tax asset | 30,112 | 16,871 |
Deferred tax liabilities: | ||
Mortgage servicing rights | (841) | (879) |
Premises and equipment | (1,620) | (1,204) |
Prepaid expenses | (431) | (702) |
Lease right-of-use asset | (11,085) | 0 |
Unrealized gain on securities | (907) | 0 |
Other | (999) | (897) |
Total deferred tax liability | (15,883) | (3,682) |
Net deferred tax asset | $ 14,229 | $ 13,189 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)truck | Dec. 31, 2017USD ($) | |
Related Party Transaction [Line Items] | |||
Rent expense | $ 5,904 | ||
Future minimum rent payments | 55,639 | ||
Procurement of various insurance policies | 0 | $ 119 | $ 25,000 |
Related Parties | |||
Related Party Transaction [Line Items] | |||
Deposits from principal officers, directors, and their affiliates | 49,292 | 40,273 | |
Rent expense | 2,124 | ||
Rent expense | 3,893 | 2,582 | |
Future minimum rent payments | 23,165 | ||
Construction of leasehold improvements | 0 | 831 | |
Procurement of various insurance policies | $ 970 | $ 1,027 | $ 997 |
Number of trucks sold | truck | 5 | ||
Proceeds from sale of trucks aggregate amount | $ 325 |
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, 2019USD ($) | |
Loans and Leases Receivable, Related Parties | |
Beginning balance, adjusted | $ 24,339 |
New loans/advances | 1,144 |
Repayments | (9,122) |
Ending balance | $ 16,361 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)plan$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / 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 | $ 5,917 | $ 6,569 | $ 2,802 | |
Excess tax benefit related to vesting of restricted stock and exercise of stock options | 201 | 647 | 805 | |
Stock compensation expense | 5,917 | $ 6,569 | $ 2,802 | |
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost charged against income | 1,288 | |||
Stock compensation expense | $ 1,288 | |||
2010 Offering | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Warrant shares issued (in shares) | shares | 32,425 | |||
Warrant exercise price per share (in dollars per share) | $ / shares | $ 12 | |||
Warrants exercisable period | 7 years | |||
Warrants outstanding (in shares) | shares | 0 | 0 | ||
2007 Omnibus Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized (in shares) | shares | 4,000,000 | |||
2007 Omnibus Equity Incentive Plan | Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options contractual term | 10 years | |||
Weighted average fair value of options (in dollars per share) | $ / shares | $ 9.68 | $ 11.50 | $ 14.43 | |
Unrecognized compensation cost, nonvested stock options | $ 3,439 | |||
Unrecognized compensation cost, period of recognition | 1 year 7 months 6 days | |||
2007 Omnibus Equity Incentive Plan | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, period of recognition | 8 months 12 days | |||
Number of restricted shares granted (in shares) | shares | 1,255 | 126,288 | 27,282 | |
Total fair value of shares vested | $ 2,395 | $ 1,382 | $ 1,432 | |
2007 Omnibus Equity Incentive Plan | Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 3 years | |||
2007 Omnibus Equity Incentive Plan | Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 5 years | |||
2017 Omnibus Equity Incentive Plan | Stock Option | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 2 years | |||
2017 Omnibus Equity Incentive Plan | Stock Option | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of shares | 5 years | |||
2017 Amended And Restated Omnibus Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | shares | 2,410,486 | |||
2017 Amended And Restated Omnibus Equity Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance (in shares) | shares | 3,500,000 | |||
2007 Omnibus Equity Incentive And 2017 Amended and Restated Omnibus Equity Plans | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, nonvested stock options | $ 3,099 | |||
2007 Omnibus Equity Incentive And 2017 Amended and Restated Omnibus Equity Plans | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost, nonvested stock options | $ 1,093 | |||
Unrecognized compensation cost, period of recognition | 2 years 3 months 18 days |
Share-Based Payments - Fair Val
Share-Based Payments - Fair Value Assumptions of Stock Options (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Risk-free interest rate | 1.68% | 3.10% | 2.05% |
Expected term | 7 years | 7 years 6 months | 6 years 10 months 24 days |
Expected stock price volatility | 29.73% | 30.79% | 33.21% |
Dividend yield | 0.60% | 0.00% | 0.03% |
Share-Based Payments - Summary
Share-Based Payments - Summary of Company's Stock Options Activities (Detail) - 2007 and 2017 Omnibus Equity Incentive Plan - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Outstanding at beginning of year (in shares) | 1,807,922 | 1,507,168 | 1,395,016 |
Granted (in shares) | 102,930 | 572,637 | 295,820 |
Exercised (in shares) | (326,818) | (244,309) | (180,555) |
Forfeited, expired, or cancelled (in shares) | (84,464) | (27,574) | (3,113) |
Outstanding at period end (in shares) | 1,499,570 | 1,807,922 | 1,507,168 |
Vested or expected to vest (in shares) | 1,424,592 | ||
Exercisable at period end (in shares) | 832,993 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of year (in dollars per share) | $ 24.68 | $ 21.37 | $ 16.70 |
Granted (in dollars per share) | 27.86 | 30.48 | 37.68 |
Exercised (in dollars per share) | 17.87 | 16.83 | 11.87 |
Forfeited, expired, or cancelled (in dollars per share) | 33.64 | 28.66 | 25.37 |
Outstanding at period end (in dollars per share) | 22.39 | $ 24.68 | $ 21.37 |
Vested or expected to vest (in dollars per share) | 25.88 | ||
Exercisable at December 31, 2019 (in dollars per share) | $ 19.62 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at period end | 6 years 5 months 15 days | ||
Vested or expected to vest | 5 years 10 months 6 days | ||
Exercisable at period end | 5 years 10 months 6 days | ||
Aggregate Intrinsic Value | |||
Outstanding at period end | $ 12,676 | ||
Vested or expected to vest | 12,042 | ||
Exercisable at period end | $ 12,251 |
Share-Based Payments - Summar_2
Share-Based Payments - Summary of Stock Options Exercised (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options exercised: | |||
Cash received from options exercised | $ 5,307 | $ 3,047 | $ 1,615 |
2007 and 2017 Omnibus Equity Incentive Plan | |||
Stock options exercised: | |||
Intrinsic value of options exercised | 4,268 | 4,873 | 4,878 |
Cash received from options exercised | 5,307 | 3,047 | 1,615 |
Tax benefit realized from option exercises | $ 86 | $ 565 | $ 484 |
Share-Based Payments - Summar_3
Share-Based Payments - Summary of Activity for Nonvested Restricted Share Awards (Detail) - Restricted Stock - 2007 and 2017 Omnibus Equity Incentive Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Beginning balance, non-vested (in shares) | 176,516 | 94,181 | 106,458 |
Granted (in shares) | 1,255 | 126,288 | 27,282 |
Vested (in shares) | (85,151) | (40,134) | (38,995) |
Forfeited (in shares) | (1,628) | (3,819) | (564) |
Ending balance, non-vested (in shares) | 90,992 | 176,516 | 94,181 |
Weighted- Average Grant-Date Fair Value | |||
Beginning balance, non-vested (in dollars per share) | $ 31.07 | $ 25.42 | $ 19.81 |
Granted (in dollars per share) | 31.87 | 33.04 | 37.35 |
Vested (in dollars per share) | 29.51 | 26.69 | 18.40 |
Forfeited (in dollars per share) | 31.42 | 31.80 | 28.66 |
Ending balance, non-vested (in dollars per share) | $ 32.54 | $ 31.07 | $ 25.42 |
Share-Based Payments - Summar_4
Share-Based Payments - Summary of Vesting Criteria for Restricted Stock Units (Detail) - Restricted Stock Units (RSUs) - 2007 Omnibus Equity Incentive Plan | 12 Months Ended |
Dec. 31, 2019shares | |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant Year | 2019 |
Granted (in shares) | 3,447 |
Service Period | 6 months |
Period in which units to be settled into shares of common stock | 2019 |
2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Grant Year | 2019 |
Granted (in shares) | 156,804 |
Service Period | 3 years |
Period in which units to be settled into shares of common stock | 2022 |
Additional Information (Details
Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 (core) capital to RWA | 11.90% | 12.20% |
Dividend restrictions, maximum amount of dividends receivable without regulatory agency approval | $ 80,072 | |
Basel III | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Capital conservation buffer threshold | 2.50% | |
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 (core) capital to RWA | 8.50% | |
Total capital to RWA | 10.50% |
Regulatory Capital Matters - Ac
Regulatory Capital Matters - Actual and Required Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amount | ||
Common equity Tier 1 capital to RWA | $ 388,199 | $ 367,096 |
Total capital to RWA | 487,966 | 449,325 |
Tier 1 (Core) Capital to RWA | 388,199 | 367,096 |
Tier 1 (core) capital to average assets | 388,199 | 367,096 |
Common equity Tier 1 capital to RWA | 146,711 | 135,598 |
Total capital to RWA | 260,819 | 241,064 |
Tier 1 (core) capital to RWA | 195,614 | 180,798 |
Tier 1 (core) capital to average assets | $ 151,456 | $ 167,553 |
Ratio | ||
Common equity Tier 1 capital to RWA | 11.90% | 12.20% |
Total capital to RWA | 15.00% | 14.90% |
Tier 1 (core) capital to RWA | 11.90% | 12.20% |
Tier 1 (core) capital to average assets | 10.30% | 8.80% |
Common equity Tier 1 capital to RWA | 4.50% | 4.50% |
Total capital to RWA | 8.00% | 8.00% |
Tier 1 (core) capital to RWA | 6.00% | 6.00% |
Tier 1 (core) capital to average assets | 4.00% | 4.00% |
Bank | ||
Amount | ||
Common equity Tier 1 capital to RWA | $ 441,348 | $ 421,335 |
Total capital to RWA | 482,183 | 444,871 |
Tier 1 (Core) Capital to RWA | 441,348 | 421,335 |
Tier 1 (core) capital to average assets | 441,348 | 421,335 |
Common equity Tier 1 capital to RWA | 146,491 | 135,613 |
Total capital to RWA | 260,429 | 241,090 |
Tier 1 (core) capital to RWA | 195,322 | 180,818 |
Tier 1 (core) capital to average assets | 151,255 | 167,420 |
Common equity Tier 1 capital to RWA | 211,599 | 195,886 |
Total Capital to RWA | 325,536 | 301,363 |
Tier 1 (core) capital to RWA | 260,429 | 241,090 |
Tier 1 (core) capital to average assets | $ 189,069 | $ 209,275 |
Ratio | ||
Common equity Tier 1 capital to RWA | 13.60% | 14.00% |
Total capital to RWA | 14.80% | 14.80% |
Tier 1 (core) capital to RWA | 13.60% | 14.00% |
Tier 1 (core) capital to average assets | 11.70% | 10.10% |
Common equity Tier 1 capital to RWA | 4.50% | 4.50% |
Total capital to RWA | 8.00% | 8.00% |
Tier 1 (core) capital to RWA | 6.00% | 6.00% |
Tier 1 (core) capital to average assets | 4.00% | 4.00% |
Common equity Tier 1 capital to RWA | 6.50% | 6.50% |
Total capital to RWA | 10.00% | 10.00% |
Tier 1 (core) capital to RWA | 8.00% | 8.00% |
Tier 1 (core) capital to average assets | 5.00% | 5.00% |
Fair Value - Additional informa
Fair Value - Additional information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($)loan | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Change in fair value related to loans held for sale | $ (2,003) | $ 0 | $ 226 | ||||||||
Carrying amount of impaired loans with specific allocations | $ 27,035 | $ 5,654 | 27,035 | 5,654 | |||||||
Allowance for Loan Losses Allocated | 20,771 | 17 | 20,771 | 17 | |||||||
Provision for loan losses | $ 18,961 | $ 1,000 | $ 7,031 | $ 5,055 | 975 | $ 136 | $ 570 | $ 573 | $ 32,047 | 2,254 | $ 4,313 |
Fair Value | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Number of collateral-dependent loans | loan | 10 | 10 | |||||||||
Carrying amount of impaired loans with specific allocations | $ 739 | 150 | $ 739 | 150 | |||||||
Allowance for Loan Losses Allocated | 20,771 | 20,771 | |||||||||
Provision for loan losses | 17 | ||||||||||
Loans Held for Sale | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Unpaid principal balance of loans held for sale | $ 42,152 | $ 10,722 | 42,152 | 10,722 | |||||||
Change in fair value related to loans held for sale | $ 1,010 | $ 381 | |||||||||
Maximum | Loans Held for Sale | |||||||||||
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, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 652,132 | $ 1,030,668 |
Loans held for sale | 43,162 | 11,103 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 253,014 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Other liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 652,132 | 777,654 |
Loans held for sale | 43,162 | 11,103 |
Other assets | 225 | 206 |
Other liabilities | 73 | 129 |
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Other liabilities | 0 | 0 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 253,014 | |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 253,014 | |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
U.S. Treasury securities | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
U.S. government sponsored entities and agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,888 | |
U.S. government sponsored entities and agencies | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
U.S. government sponsored entities and agencies | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 21,888 | |
U.S. government sponsored entities and agencies | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | |
Mortgage-backed securities: residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 375,943 | 580,699 |
Mortgage-backed securities: residential | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Mortgage-backed securities: residential | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 375,943 | 580,699 |
Mortgage-backed securities: residential | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Mortgage-backed securities: commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,780 | |
Mortgage-backed securities: commercial | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Mortgage-backed securities: commercial | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 17,780 | 24,844 |
Mortgage-backed securities: commercial | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 33,361 | 12,424 |
Corporate Notes | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
Corporate Notes | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 33,361 | 12,424 |
Corporate Notes | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 225,048 | 137,799 |
State and political subdivisions | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 0 | 0 |
State and political subdivisions | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 225,048 | 137,799 |
State and political subdivisions | Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value, Assets Measured on
Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | $ 25,160 | $ 167 |
Allowance for Loan Losses Allocated | 20,771 | 17 |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 4,389 | |
Total losses for the period ended | 0 | |
Residential Real Estate | Closed-end 1-4 family | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 643 | |
Allowance for Loan Losses Allocated | 17 | |
Residential Real Estate | Closed-end 1-4 family | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 626 | |
Total losses for the period ended | 0 | |
Commercial and Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 24,517 | 167 |
Allowance for Loan Losses Allocated | 20,754 | 17 |
Commercial and Industrial | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 3,763 | 150 |
Total losses for the period ended | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential Real Estate | Closed-end 1-4 family | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial and Industrial | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 3,650 | |
Significant Other Observable Inputs (Level 2) | Residential Real Estate | Closed-end 1-4 family | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 0 | |
Significant Other Observable Inputs (Level 2) | Commercial and Industrial | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 3,650 | 0 |
Significant Unobservable Inputs (Level 3) | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 739 | |
Significant Unobservable Inputs (Level 3) | Residential Real Estate | Closed-end 1-4 family | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | 626 | |
Significant Unobservable Inputs (Level 3) | Commercial and Industrial | Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded | $ 113 | $ 150 |
Fair Value - Carrying Amount an
Fair Value - Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Securities available for sale | $ 652,132,000 | $ 1,030,668,000 |
Securities held to maturity | 0 | 118,955,000 |
Loans held for sale | 43,162,000 | 11,103,000 |
Servicing rights, net | 3,922,000 | 4,836,000 |
Carrying Amount | ||
Assets | ||
Cash and cash equivalents | 234,991,000 | 280,212,000 |
Securities available for sale | 652,132,000 | 1,030,668,000 |
Certificates of deposit held at other financial institutions | 3,590,000 | 3,594,000 |
Securities held to maturity | 121,617,000 | |
Loans held for sale | 43,162,000 | 11,103,000 |
Net loans | 2,767,008,000 | 2,648,948,000 |
Servicing rights, net | 3,246,000 | 3,403,000 |
Other assets | 225,000 | 206,000 |
Accrued interest receivable | 12,362,000 | 13,337,000 |
Liabilities | ||
Deposits | 3,207,584,000 | 3,431,807,000 |
Federal Home Loan Bank advances | 155,000,000 | 368,500,000 |
Subordinated notes | 58,872,000 | 58,693,000 |
Other liabilities | 73,000 | 129,000 |
Accrued interest payable | 4,201,000 | 4,700,000 |
Fair Value | ||
Assets | ||
Cash and cash equivalents | 234,991,000 | 280,212,000 |
Securities available for sale | 652,132,000 | 1,030,668,000 |
Certificates of deposit held at other financial institutions | 3,590,000 | 3,594,000 |
Securities held to maturity | 118,955,000 | |
Loans held for sale | 43,162,000 | 11,103,000 |
Net loans | 2,753,761,000 | 2,622,386,000 |
Servicing rights, net | 3,922,000 | 4,836,000 |
Other assets | 225,000 | 206,000 |
Accrued interest receivable | 12,362,000 | 13,337,000 |
Liabilities | ||
Deposits | 3,208,211,000 | 3,425,277,000 |
Federal Home Loan Bank advances | 155,090,000 | 366,786,000 |
Subordinated notes | 60,922,000 | 59,852,000 |
Other liabilities | 73,000 | 129,000 |
Accrued interest payable | 4,201,000 | 4,700,000 |
Level 1 | Fair Value | ||
Assets | ||
Cash and cash equivalents | 234,991,000 | 280,212,000 |
Securities available for sale | 0 | 253,014,000 |
Certificates of deposit held at other financial institutions | 0 | 0 |
Securities held to maturity | 0 | |
Loans held for sale | 0 | 0 |
Net loans | 0 | 0 |
Servicing rights, net | 0 | 0 |
Other assets | 0 | 0 |
Accrued interest receivable | 96,000 | 71,000 |
Liabilities | ||
Deposits | 2,458,555,000 | 2,105,951,000 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated notes | 0 | 0 |
Other liabilities | 0 | 0 |
Accrued interest payable | 154,000 | 146,000 |
Level 2 | Fair Value | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 652,132,000 | 777,654,000 |
Certificates of deposit held at other financial institutions | 3,590,000 | 3,594,000 |
Securities held to maturity | 118,955,000 | |
Loans held for sale | 43,162,000 | 11,103,000 |
Net loans | 0 | 0 |
Servicing rights, net | 0 | 0 |
Other assets | 225,000 | 206,000 |
Accrued interest receivable | 3,775,000 | 5,539,000 |
Liabilities | ||
Deposits | 749,656,000 | 1,319,326,000 |
Federal Home Loan Bank advances | 155,090,000 | 366,786,000 |
Subordinated notes | 0 | 0 |
Other liabilities | 73,000 | 129,000 |
Accrued interest payable | 687,000 | 3,866,000 |
Level 3 | Fair Value | ||
Assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Certificates of deposit held at other financial institutions | 0 | 0 |
Securities held to maturity | 0 | |
Loans held for sale | 0 | 0 |
Net loans | 2,753,761,000 | 2,622,386,000 |
Servicing rights, net | 3,922,000 | 4,836,000 |
Other assets | 0 | 0 |
Accrued interest receivable | 8,491,000 | 7,727,000 |
Liabilities | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated notes | 60,922,000 | 59,852,000 |
Other liabilities | 0 | 0 |
Accrued interest payable | $ 3,360,000 | $ 688,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)swap | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | ||
Number of swap transaction | swap | 16 | |
Notional amount | $ 101,205,000 | |
Derivative assets | 225,000 | $ 206,000 |
Estimated Fair Value | 73,000 | 129,000 |
Interest Rate Lock Commitments | ||
Derivative [Line Items] | ||
Mortgage banking derivatives | 48,999,000 | 28,731,000 |
Forward Commitments | ||
Derivative [Line Items] | ||
Mortgage banking derivatives | $ 62,824,000 | $ 31,519,000 |
Derivatives - Schedule of Deriv
Derivatives - Schedule of Derivative Instruments (Fair Value Hedge) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 101,205,000 | |
Estimated Fair Value | $ 73,000 | $ 129,000 |
Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Weighted Average Remaining Maturity (In Years) | 7 years 3 months 25 days | |
Weighted Average Pay Rate | 2.53% | |
Notional Amount | $ 101,205,000 | 0 |
Estimated Fair Value | $ 4,954,000 | $ 0 |
Derivatives - Schedule of Der_2
Derivatives - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Fair Value Hedge) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized holding gain (loss) arising during the period | $ (1,592) | $ 0 | $ 0 |
Interest Rate Swap | Interest Income | Fair Value Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Unrealized holding gain (loss) arising during the period | 4,954 | 0 | |
Amount of Loss Recognized in Income | $ (4,954) | $ 0 |
Derivatives - Schedule of Der_3
Derivatives - Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location (Fair Value Hedge) (Details) - Securities available-for-sale - Fair Value Hedging - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Carrying Amount of the Hedged Assets | $ 101,205 | $ 0 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ 4,954 | $ 0 |
Derivatives - Schedule of Der_4
Derivatives - Schedule of Derivative Instruments (Cash Flow Hedge) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 101,205,000 | |
Estimated Fair Value | $ 73,000 | $ 129,000 |
Cash Flow Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Weighted Average Remaining Maturity (In Years) | 2 years 4 months 2 days | |
Weighted Average Pay Rate | 2.23% | |
Notional Amount | $ 100,000,000 | 0 |
Estimated Fair Value | $ 1,592,000 | $ 0 |
Derivatives - Schedule of Der_5
Derivatives - Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) (Cash Flow Hedge) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ (1,592) | $ 0 | $ 0 |
Interest Rate Swap | Cash Flow Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ (1,176) | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | $ 0 |
Derivatives - Summary of Net Ga
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest rate contracts for customers | |||
Derivative [Line Items] | |||
Derivative instruments | $ 19 | $ 31 | $ (54) |
Forward contracts related to mortgage loans held for sale and interest rate contracts | |||
Derivative [Line Items] | |||
Derivative instruments | $ 56 | $ 94 | $ 32 |
Derivatives - Summary of Amount
Derivatives - Summary of Amount and Fair Value of Mortgage Banking Derivatives Included in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Forward contracts related to mortgage loans held for sale and interest rate contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 62,824 | $ 31,519 |
Fair Value | (73) | (129) |
Interest rate contracts for customers | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 48,999 | 28,731 |
Fair Value | $ 225 | $ 206 |
Loan Commitments and Other Re_3
Loan Commitments and Other Related Activities Loan Commitments and Other Related Activities - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum | |
Long-term Purchase Commitment [Line Items] | |
Fixed rate loan commitments | 2.82% |
Fixed rate loan commitments maturity period | 1 year |
Maximum | |
Long-term Purchase Commitment [Line Items] | |
Fixed rate loan commitments | 12.00% |
Fixed rate loan commitments maturity period | 25 years |
Loan Commitments and Other Re_4
Loan Commitments and Other Related Activities Loan Commitments and Other Related Activities - Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to make loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 48,999 | $ 28,731 |
Variable Rate | 0 | 0 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 7,119 | 8,293 |
Variable Rate | 48,750 | 31,731 |
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 89,040 | 128,313 |
Variable Rate | $ 701,326 | $ 526,271 |
Parent Company only Condensed_3
Parent Company only Condensed Financial Information - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Other assets | $ 53,149 | $ 14,799 |
Total assets | 3,896,162 | 4,249,439 |
LIABILITIES AND EQUITY | ||
Subordinated notes | 58,872 | 58,693 |
Shareholders’ equity | 410,333 | 372,740 |
Total liabilities and equity | 3,896,162 | 4,249,439 |
Franklin Financial Network, Inc. | ||
ASSETS | ||
Cash and cash equivalents | 3,625 | 3,364 |
Investment in banking subsidiary | 463,496 | 426,979 |
Investment in other subsidiaries | 3,527 | 1,919 |
Other assets | 1,841 | 1,617 |
Total assets | 472,489 | 433,879 |
LIABILITIES AND EQUITY | ||
Subordinated notes | 58,872 | 58,693 |
Accrued expenses and other liabilities | 3,284 | 2,446 |
Shareholders’ equity | 410,333 | 372,740 |
Total liabilities and equity | $ 472,489 | $ 433,879 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest expense | $ 15,072 | $ 18,269 | $ 20,088 | $ 20,103 | $ 19,125 | $ 17,155 | $ 15,231 | $ 12,931 | $ 73,532 | $ 64,442 | $ 35,407 |
Income tax benefit | (2,970) | 2,117 | 706 | 334 | 122 | 1,068 | 2,263 | 2,459 | 187 | 5,912 | 18,531 |
Net income | $ (4,584) | $ 11,324 | $ 5,181 | $ 2,901 | $ 3,751 | $ 10,549 | $ 10,169 | $ 10,052 | 14,822 | 34,521 | 28,099 |
Comprehensive income | 31,982 | 25,966 | 29,997 | ||||||||
Franklin Financial Network, Inc. | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Dividends from subsidiaries | 5,500 | 5,925 | 4,000 | ||||||||
Other income | 249 | 203 | 171 | ||||||||
Interest expense | 4,328 | 4,328 | 4,321 | ||||||||
Other expense | 7,614 | 5,163 | 2,890 | ||||||||
Loss before income tax and undistributed subsidiaries income | (6,193) | (3,363) | (3,040) | ||||||||
Income tax benefit | (2,855) | (2,229) | (2,671) | ||||||||
Equity in undistributed subsidiaries income | 18,160 | 35,655 | 28,468 | ||||||||
Net income | 14,822 | 34,521 | 28,099 | ||||||||
Comprehensive income | $ 31,982 | $ 25,966 | $ 29,997 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||||||||||
Net income | $ (4,584) | $ 11,324 | $ 5,181 | $ 2,901 | $ 3,751 | $ 10,549 | $ 10,169 | $ 10,052 | $ 14,822 | $ 34,521 | $ 28,099 |
Adjustments: | |||||||||||
Amortization of debt issuance costs | 179 | 178 | 178 | ||||||||
Stock-based compensation | 5,917 | 6,569 | 2,802 | ||||||||
Net cash from operating activities | 23,811 | 50,307 | 55,638 | ||||||||
Cash flows from investing activities | |||||||||||
Net cash acquired from acquisition (See Note 2) | 0 | 24,660 | 0 | ||||||||
Net cash from investing activities | 366,753 | (219,532) | (759,628) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from exercise of common stock warrants | 0 | 0 | 150 | ||||||||
Proceeds from exercise of common stock options | 5,307 | 3,047 | 1,615 | ||||||||
Proceeds from issuance of common stock, net of offering costs | 0 | (242) | 0 | ||||||||
Divestment of common stock issued to 401(k) plan | 0 | (308) | (256) | ||||||||
Purchase of Treasury Stock | 717 | 0 | 0 | ||||||||
Noncontrolling interest distributions | 16 | 16 | 16 | ||||||||
Net cash from financing activities | (435,785) | 197,894 | 864,606 | ||||||||
Net change in cash and cash equivalents | (45,221) | 28,669 | 160,616 | ||||||||
Cash and cash equivalents at beginning of period | 280,212 | 251,543 | 280,212 | 251,543 | 90,927 | ||||||
Cash and cash equivalents at end of period | 234,991 | 280,212 | 234,991 | 280,212 | 251,543 | ||||||
Franklin Financial Network, Inc. | |||||||||||
Cash flows from operating activities | |||||||||||
Net income | 14,822 | 34,521 | 28,099 | ||||||||
Adjustments: | |||||||||||
Equity in undistributed subsidiaries income | (18,160) | (35,655) | (28,468) | ||||||||
Amortization of debt issuance costs | 179 | 178 | 178 | ||||||||
Stock-based compensation | 851 | 1,008 | 219 | ||||||||
Change in other assets | (208) | (1,367) | 728 | ||||||||
Change in other liabilities | 839 | (1,908) | 686 | ||||||||
Net cash from operating activities | (1,677) | (3,223) | 1,442 | ||||||||
Cash flows from investing activities | |||||||||||
Investments in subsidiaries | 0 | (26,512) | (1,359) | ||||||||
Net cash acquired from acquisition (See Note 2) | 0 | ||||||||||
Net cash from investing activities | 0 | (1,852) | (1,359) | ||||||||
Cash flows from financing activities | |||||||||||
Proceeds from exercise of common stock warrants | 0 | 0 | 150 | ||||||||
Proceeds from exercise of common stock options | 5,307 | 3,047 | 1,615 | ||||||||
Proceeds from issuance of common stock, net of offering costs | 0 | (242) | 0 | ||||||||
Divestment of common stock issued to 401(k) plan | 0 | (308) | (256) | ||||||||
Redemption of Series A preferred stock | 0 | 0 | 0 | ||||||||
Purchase of Treasury Stock | 717 | 0 | 0 | ||||||||
Dividends paid on common stock | (2,636) | 0 | 0 | ||||||||
Noncontrolling interest distributions | 16 | 16 | 0 | ||||||||
Net cash from financing activities | 1,938 | 2,481 | 1,509 | ||||||||
Net change in cash and cash equivalents | 261 | (2,594) | 1,592 | ||||||||
Cash and cash equivalents at beginning of period | $ 3,364 | $ 5,958 | 3,364 | 5,958 | 4,366 | ||||||
Cash and cash equivalents at end of period | $ 3,625 | $ 3,364 | 3,625 | 3,364 | 5,958 | ||||||
Non-cash supplemental information: | |||||||||||
Transfers from subsidiary stock based compensation expense to parent company only additional paid-in capital | $ 5,066 | $ 5,561 | $ 2,583 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Basic | |||||||||||
Net income available to common shareholders | $ (4,592) | $ 11,324 | $ 5,173 | $ 2,901 | $ 3,743 | $ 10,549 | $ 10,161 | $ 10,052 | $ 14,806 | $ 34,505 | $ 28,083 |
Less: earnings allocated to participating securities | (120) | (372) | (219) | ||||||||
Net income allocated to common shareholders | $ 14,686 | $ 34,133 | $ 27,864 | ||||||||
Weighted average common shares outstanding including participating securities (in shares) | 14,633,399 | 14,169,294 | 13,145,005 | ||||||||
Less: Participating securities (in shares) | (118,747) | (152,638) | (102,650) | ||||||||
Average shares (in shares) | 14,514,652 | 14,016,656 | 13,042,355 | ||||||||
Basic earnings per common share (in dollars per share) | $ (0.31) | $ 0.77 | $ 0.35 | $ 0.20 | $ 0.26 | $ 0.73 | $ 0.71 | $ 0.76 | $ 1.01 | $ 2.44 | $ 2.14 |
Diluted | |||||||||||
Net income allocated to common shareholders | $ 14,686 | $ 34,133 | $ 27,864 | ||||||||
Weighted average common shares outstanding for basic earnings per share common share (in shares) | 14,514,652 | 14,016,656 | 13,042,355 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Add: Dilutive effects of assumed exercises of stock warrants (in shares) | 0 | 0 | 1,578 | ||||||||
Average shares and dilutive potential common shares (in shares) | 14,962,307 | 14,556,958 | 13,677,671 | ||||||||
Dilutive earnings per common share (in shares) | $ (0.31) | $ 0.75 | $ 0.34 | $ 0.19 | $ 0.25 | $ 0.70 | $ 0.68 | $ 0.73 | $ 0.98 | $ 2.34 | $ 2.04 |
Stock Option | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Add: Dilutive effects of assumed vesting of restricted stock units (in shares) | 352,242 | 540,302 | 633,738 | ||||||||
Restricted Stock | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||
Add: Dilutive effects of assumed vesting of restricted stock units (in shares) | 95,413 | 0 | 0 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Average stock options to purchase shares of the Company's common stock (in shares) | 876,086 | 546,325 | 285,706 |
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, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement Data ($): | |||||||||||
Interest income | $ 43,185 | $ 46,531 | $ 47,453 | $ 47,523 | $ 46,045 | $ 43,717 | $ 42,136 | $ 38,047 | $ 184,692 | $ 169,945 | $ 132,453 |
Interest expense | 15,072 | 18,269 | 20,088 | 20,103 | 19,125 | 17,155 | 15,231 | 12,931 | 73,532 | 64,442 | 35,407 |
Net interest income | 28,113 | 28,262 | 27,365 | 27,420 | 26,920 | 26,562 | 26,905 | 25,116 | 111,160 | 105,503 | 97,046 |
Provision for loan losses | 18,961 | 1,000 | 7,031 | 5,055 | 975 | 136 | 570 | 573 | 32,047 | 2,254 | 4,313 |
Noninterest income | 4,573 | 4,793 | 4,923 | 3,486 | (383) | 3,442 | 4,147 | 3,456 | 17,775 | 10,662 | 14,721 |
Noninterest expense | 21,279 | 18,614 | 19,370 | 22,616 | 21,689 | 18,251 | 18,050 | 15,488 | 81,879 | 73,478 | 60,824 |
Net (loss) income before taxes | (7,554) | 13,441 | 5,887 | 3,235 | 3,873 | 11,617 | 12,432 | 12,511 | 15,009 | 40,433 | 46,630 |
Income tax expense | (2,970) | 2,117 | 706 | 334 | 122 | 1,068 | 2,263 | 2,459 | 187 | 5,912 | 18,531 |
Net income | (4,584) | 11,324 | 5,181 | 2,901 | 3,751 | 10,549 | 10,169 | 10,052 | 14,822 | 34,521 | 28,099 |
Net Income (Loss) Available to Common Stockholders, Basic | $ (4,592) | $ 11,324 | $ 5,173 | $ 2,901 | $ 3,743 | $ 10,549 | $ 10,161 | $ 10,052 | $ 14,806 | $ 34,505 | $ 28,083 |
Earnings per share, basic (in dollars per share) | $ (0.31) | $ 0.77 | $ 0.35 | $ 0.20 | $ 0.26 | $ 0.73 | $ 0.71 | $ 0.76 | $ 1.01 | $ 2.44 | $ 2.14 |
Earnings per share, diluted (in dollars per share) | $ (0.31) | $ 0.75 | $ 0.34 | $ 0.19 | $ 0.25 | $ 0.70 | $ 0.68 | $ 0.73 | $ 0.98 | $ 2.34 | $ 2.04 |
Uncategorized Items - fsb-20191
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (2,244,000) |