Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
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 | |
Trading Symbol | FSB | |
Security Exchange Name | NYSE | |
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 Common Stock, Shares Outstanding | 14,972,793 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001407067 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from financial institutions | $ 236,775 | $ 234,991 |
Certificates of deposit at other financial institutions | 3,506 | 3,590 |
Securities available for sale | 503,877 | 652,132 |
Loans held for sale, at fair value | 61,142 | 43,162 |
Loans held for investment | 2,794,768 | 2,812,444 |
Allowance for loan losses | (38,100) | (45,436) |
Net loans | 2,756,668 | 2,767,008 |
Restricted equity securities, at cost | 24,110 | 24,802 |
Premises and equipment, net | 47,305 | 12,141 |
Accrued interest receivable | 18,576 | 12,362 |
Bank owned life insurance | 57,432 | 56,726 |
Deferred tax asset | 10,093 | 14,229 |
Servicing rights, net | 4,035 | 3,246 |
Goodwill | 18,176 | 18,176 |
Core deposit intangible, net | 271 | 448 |
Other assets | 33,775 | 53,149 |
Total assets | 3,775,741 | 3,896,162 |
Deposits | ||
Non-interest bearing | 483,445 | 319,373 |
Interest bearing | 2,659,814 | 2,888,211 |
Total deposits | 3,143,259 | 3,207,584 |
Federal Home Loan Bank advances | 100,000 | 155,000 |
Subordinated notes, net | 58,961 | 58,872 |
Accrued interest payable | 2,711 | 4,201 |
Other liabilities | 48,747 | 60,079 |
Total liabilities | 3,353,678 | 3,485,736 |
Commitments and Contingencies (Note 9) | ||
Equity | ||
Preferred stock, no par value: 1.0 million shares authorized; no shares outstanding at June 30, 2020 and December 31, 2019 | 0 | 0 |
Common stock, no par value: 30.0 million authorized; 14.9 million issued and outstanding at June 30, 2020 and 14.8 million issued and outstanding December 31, 2019, respectively | 279,232 | 275,412 |
Retained earnings | 140,339 | 133,102 |
Accumulated other comprehensive income | 2,399 | 1,819 |
Total shareholders’ equity | 421,970 | 410,333 |
Non-controlling interest in consolidated subsidiary | 93 | 93 |
Total equity | 422,063 | 410,426 |
Total liabilities and equity | $ 3,775,741 | $ 3,896,162 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock shares authorized (in shares) | 30,000,000 | 30,000,000 |
Common stock shares issued (in shares) | 14,900,000 | 14,800,000 |
Common stock shares outstanding (in shares) | 14,900,000 | 14,800,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest income and dividends | ||||
Loans, including fees | $ 36,623 | $ 40,202 | $ 73,661 | $ 78,540 |
Securities: | ||||
Taxable | 1,700 | 4,614 | 4,124 | 11,008 |
Tax-Exempt | 1,219 | 1,410 | 2,602 | 2,880 |
Dividends on restricted equity securities | 220 | 350 | 382 | 684 |
Federal funds sold and other | 52 | 877 | 652 | 1,864 |
Total interest income | 39,814 | 47,453 | 81,421 | 94,976 |
Interest expense | ||||
Deposits | 8,929 | 16,679 | 21,175 | 33,669 |
Federal funds purchased and repurchase agreements | 1 | 90 | 15 | 162 |
Federal Home Loan Bank advances and other borrowings | 274 | 2,237 | 1,075 | 4,196 |
Subordinated notes | 1,082 | 1,082 | 2,164 | 2,164 |
Total interest expense | 10,286 | 20,088 | 24,429 | 40,191 |
Net interest income | 29,528 | 27,365 | 56,992 | 54,785 |
Provision for loan losses | 3,195 | 7,031 | 16,217 | 12,086 |
Net interest income after provision for loan losses | 26,333 | 20,334 | 40,775 | 42,699 |
Noninterest income | ||||
Gain on sale or call of securities | 166 | 367 | 1,562 | 517 |
Net (loss) gain on sale of loans held for investment | (372) | 3 | (788) | (214) |
Total noninterest income | 10,555 | 4,923 | 16,448 | 8,410 |
Noninterest expense | ||||
Salaries and employee benefits | 14,762 | 11,365 | 27,342 | 26,108 |
Occupancy and equipment | 2,832 | 3,283 | 5,918 | 6,396 |
FDIC assessment expense | 900 | 660 | 1,350 | 1,650 |
Marketing | 133 | 301 | 378 | 620 |
Professional fees | 2,345 | 1,073 | 5,413 | 1,996 |
Amortization of core deposit intangible | 82 | 132 | 177 | 277 |
Other | 2,922 | 2,556 | 5,819 | 4,939 |
Total noninterest expense | 23,976 | 19,370 | 46,397 | 41,986 |
Income before income tax expense | 12,912 | 5,887 | 10,826 | 9,123 |
Income tax expense | 2,730 | 706 | 1,792 | 1,040 |
Net income | 10,182 | 5,181 | 9,034 | 8,083 |
Earnings attributable to noncontrolling interest | (8) | (8) | (8) | (8) |
Net income available to common shareholders | $ 10,174 | $ 5,173 | $ 9,026 | $ 8,075 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 0.68 | $ 0.35 | $ 0.61 | $ 0.55 |
Diluted (in dollars per share) | $ 0.66 | $ 0.34 | $ 0.59 | $ 0.54 |
Service charges on deposit accounts | ||||
Noninterest income | ||||
Total noninterest income | $ 74 | $ 77 | $ 166 | $ 151 |
Other service charges and fees | ||||
Noninterest income | ||||
Total noninterest income | 1,397 | 903 | 2,294 | 1,660 |
Mortgage banking revenue | ||||
Noninterest income | ||||
Total noninterest income | 8,688 | 2,473 | 11,373 | 4,145 |
Wealth management | ||||
Noninterest income | ||||
Total noninterest income | 702 | 673 | 1,516 | 1,300 |
Net gain on sale of foreclosed assets | ||||
Noninterest income | ||||
Total noninterest income | 5 | 3 | 7 | 7 |
Other | ||||
Noninterest income | ||||
Total noninterest income | $ (105) | $ 424 | $ 318 | $ 844 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 10,182 | $ 5,181 | $ 9,034 | $ 8,083 |
Unrealized gains/losses on securities: | ||||
Unrealized holding gains arising during the period | 2,704 | 7,116 | 4,443 | 19,109 |
Reclassification adjustment for gains on sales, calls, and prepayments of securities included in net income | (166) | (367) | (1,562) | (517) |
Tax effect | (634) | (1,760) | (714) | (4,849) |
Net unrealized gains on securities | 1,904 | 4,989 | 2,167 | 13,743 |
Unrealized gain/loss on cash flow hedge: | ||||
Unrealized holding gain (losses) arising during the period | 192 | (1,667) | (2,149) | (1,667) |
Tax effect | (50) | 436 | 562 | 436 |
Net unrealized gains (losses) on cash flow hedge | 142 | (1,231) | (1,587) | (1,231) |
Total other comprehensive income | 2,046 | 3,758 | 580 | 12,512 |
Comprehensive income | $ 12,228 | $ 8,939 | $ 9,614 | $ 20,595 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Cumulative-effect of accounting change | $ (2,244) | $ (2,244) | ||||
Beginning balance adjusted | 370,589 | $ 264,905 | 120,932 | $ (15,341) | $ 93 | |
Beginning balance (in shares) at Dec. 31, 2018 | 0 | 14,538,085 | ||||
Beginning 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) | 109,162 | |||||
Exercise of common stock options, includes net settlement of shares | 1,277 | $ 1,277 | ||||
Stock based compensation expense, net of restricted share forfeitures | 2,842 | $ 2,842 | ||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 220 | |||||
Purchase of treasury stock (in shares) | (19,180) | |||||
Purchase of treasury stock | (519) | $ (519) | ||||
Cash dividends - common stock | (1,167) | (1,167) | ||||
Noncontrolling interest distributions | (8) | (8) | ||||
Net income | 8,083 | 8,083 | ||||
Other comprehensive income | 12,512 | 12,512 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 14,628,287 | ||||
Ending balance at Jun. 30, 2019 | $ 393,609 | $ 268,505 | 127,840 | (2,829) | 93 | |
Common stock dividends (in dollars per share) | $ 0.08 | |||||
Beginning balance (in shares) at Mar. 31, 2019 | 0 | 14,574,339 | ||||
Beginning balance at Mar. 31, 2019 | $ 383,514 | $ 266,758 | 123,250 | (6,587) | 93 | |
Exercise of common stock options, includes net settlement of shares (in shares) | 74,116 | |||||
Exercise of common stock options, includes net settlement of shares | 753 | $ 753 | ||||
Stock based compensation expense, net of restricted share forfeitures | 1,513 | $ 1,513 | ||||
Issuance of restricted stock awards, net of forfeitures (in shares) | (988) | |||||
Purchase of treasury stock (in shares) | (19,180) | |||||
Purchase of treasury stock | (519) | $ (519) | ||||
Cash dividends - common stock | (583) | (583) | ||||
Noncontrolling interest distributions | (8) | (8) | ||||
Net income | 5,181 | 5,181 | ||||
Other comprehensive income | 3,758 | 3,758 | ||||
Ending balance (in shares) at Jun. 30, 2019 | 0 | 14,628,287 | ||||
Ending balance at Jun. 30, 2019 | $ 393,609 | $ 268,505 | 127,840 | (2,829) | 93 | |
Common stock dividends (in dollars per share) | $ 0.04 | |||||
Beginning balance adjusted | $ 410,426 | $ 275,412 | 133,102 | 1,819 | 93 | |
Beginning balance (in shares) at Dec. 31, 2019 | 0 | 14,821,594 | ||||
Beginning balance at Dec. 31, 2019 | 410,426 | |||||
Exercise of common stock options, includes net settlement of shares (in shares) | 76,489 | |||||
Exercise of common stock options, includes net settlement of shares | 866 | $ 866 | ||||
Stock based compensation expense, net of restricted share forfeitures | 2,954 | $ 2,954 | ||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 39,693 | |||||
Cash dividends - common stock | (1,789) | (1,789) | ||||
Noncontrolling interest distributions | (8) | (8) | ||||
Net income | 9,034 | 9,034 | ||||
Other comprehensive income | 580 | 580 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 14,937,776 | ||||
Ending balance at Jun. 30, 2020 | $ 422,063 | $ 279,232 | 140,339 | 2,399 | 93 | |
Common stock dividends (in dollars per share) | $ 0.12 | |||||
Beginning balance (in shares) at Mar. 31, 2020 | 14,859,704 | |||||
Beginning balance at Mar. 31, 2020 | $ 408,848 | $ 277,341 | 131,061 | 353 | 93 | |
Exercise of common stock options, includes net settlement of shares (in shares) | 39,073 | |||||
Exercise of common stock options, includes net settlement of shares | 449 | $ 449 | ||||
Stock based compensation expense, net of restricted share forfeitures | 1,442 | $ 1,442 | ||||
Issuance of restricted stock awards, net of forfeitures (in shares) | 38,999 | |||||
Cash dividends - common stock | (896) | (896) | ||||
Noncontrolling interest distributions | (8) | (8) | ||||
Net income | 10,182 | 10,182 | ||||
Other comprehensive income | 2,046 | 2,046 | ||||
Ending balance (in shares) at Jun. 30, 2020 | 0 | 14,937,776 | ||||
Ending balance at Jun. 30, 2020 | $ 422,063 | $ 279,232 | $ 140,339 | $ 2,399 | $ 93 | |
Common stock dividends (in dollars per share) | $ 0.06 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends (in dollars per share) | $ 0.06 | $ 0.04 | $ 0.12 | $ 0.08 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities | ||
Net income | $ 9,034 | $ 8,083 |
Adjustments to reconcile net income to net cash from operating activities | ||
Depreciation and amortization on premises and equipment | 1,200 | 850 |
Accretion of purchase accounting adjustments | (169) | (346) |
Net amortization of securities | 2,675 | 3,078 |
Amortization of loan servicing right asset | 1,013 | 487 |
Amortization of core deposit intangible | 177 | 277 |
Amortization of debt issuance costs | 89 | 89 |
Provision for loan losses | 16,217 | 12,086 |
Impairment charges on loan servicing right asset | 316 | 0 |
Deferred income tax expense (benefit) | 3,984 | (2,121) |
Excess tax benefit related to stock compensation | (3) | (205) |
Origination of loans held for sale | (380,107) | (208,009) |
Proceeds from sale of loans held for sale | 371,034 | 197,230 |
Net gain on sale of loans held for sale | (11,025) | (5,594) |
Loss on sale of loans held for investment | 788 | 227 |
Gain on sale of available for sale securities | (1,562) | (517) |
Income from bank owned life insurance | (705) | (750) |
Stock-based compensation | 2,954 | 2,842 |
Deferred gain on sale of loans | (8) | (7) |
Deferred gain on sale of foreclosed assets | (7) | (7) |
Net change in: | ||
Accrued interest receivable and other assets | (7,370) | 4,478 |
Accrued interest payable and other liabilities | (3,539) | 6,875 |
Net cash from operating activities | 4,986 | 19,046 |
Securities available for sale : | ||
Sales and calls | 119,888 | 347,037 |
Purchases | (369) | (94,860) |
Maturities and prepayments | 39,619 | 82,556 |
Securities held to maturity : | ||
Purchases | 0 | 3,284 |
Maturities, prepayments and calls | 0 | 5,261 |
Net change in loans | (144,828) | (241,477) |
Proceeds from sale of loans held for investment | 138,332 | 18,468 |
Purchase of restricted equity securities | (83) | (3,011) |
Purchases of premises and equipment, net | (36,364) | (1,427) |
Decrease (increase) in certificates of deposits at other financial institutions | 84 | (246) |
Net cash from investing activities | 117,054 | 109,017 |
Cash flows from financing activities | ||
Decrease in deposits | (64,325) | (285,162) |
Proceeds from Federal Home Loan Bank advances | 145,000 | 340,000 |
Repayment of Federal Home Loan Bank advances | (200,000) | (312,000) |
Proceeds from exercise of common stock options | 866 | 1,277 |
Purchase of treasury stock | 0 | (494) |
Dividends paid on common stock | (1,789) | (1,167) |
Noncontrolling interest distributions | (8) | (8) |
Net cash from financing activities | (120,256) | (257,554) |
Net change in cash and cash equivalents | 1,784 | (129,491) |
Cash and cash equivalents at beginning of period | 234,991 | 280,212 |
Cash and cash equivalents at end of period | 236,775 | 150,721 |
Supplemental information: | ||
Interest paid | 25,920 | 40,579 |
Income taxes paid | 48 | 6,043 |
Non-cash supplemental information: | ||
Establishment and extinguishment of lease liability and right-of use asset | (21,522) | 43,723 |
Transfers from securities held to maturity to securities available for sale | 0 | 1,206 |
Proceeds from Sale of Restricted Investments | $ 775 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION These consolidated financial statements include the accounts of Franklin Financial Network, Inc. (“FFN”), and its wholly-owned subsidiaries, Franklin Synergy Bank (“Franklin Synergy” or the “Bank”) and Franklin Synergy Risk Management, Inc. (collectively, the “Company”). Franklin Synergy Investments of Tennessee, Inc., Franklin Synergy Investments of Nevada, Inc., and Franklin Synergy Preferred Capital, Inc. are direct or indirect subsidiaries of the Bank and are included in these consolidated financial statements. Significant intercompany transactions and accounts are eliminated in consolidation. The Company provides financial services through its offices in Franklin, Brentwood, Spring Hill, Murfreesboro, Nashville, Nolensville, and Smyrna, Tennessee, as well as through its loan and deposit production location in Mt. Juliet, 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. Principles of Consolidation and Basis of Presentation The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the SEC. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. In the opinion of management, the accompanying unaudited consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. These consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, and our Quarterly Report on Form 10-Q filed with the SEC on May 7, 2020. Operating results for the three and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. On January 21, 2020, the Company announced a strategic merger with FB Financial Corporation that is expected to close in the third quarter of 2020, with an anticipated closing date of August 15, 2020. Risks and Uncertainties The outbreak of COVID-19 has adversely impacted a broad range of industries in which the Company’s customers operate and could impair their ability to fulfill their financial obligations to the Company. During the first quarter of 2020, the World Health Organization declared COVID-19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The pandemic has caused significant disruptions in the U.S. economy, has disrupted banking and other financial activity in the areas in which the Company operates. The pandemic and its adverse consequences continued throughout the second quarter of 2020, and will likely present significant economic risks for at least the next several quarters. While there has been no material impact to the Company’s employees to date, COVID-19 could also potentially create widespread business continuity issues for the Company. The United States Congress, the President of the United States, and the Federal Reserve have taken several actions designed to cushion the economic fallout from the COVID-19 pandemic. Most notably, the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was signed into law on March 27, 2020 as a $2.2 trillion legislative relief package. The goal of the CARES Act is to limit the impact of a potentially severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The package also includes extensive emergency funding for hospitals and medical providers. In addition to the general impact of COVID-19, certain provisions of the CARES Act as well as other recent legislative and regulatory relief efforts, together with other proposed and/or pending legislature and regulatory actions, are expected to have a material impact on the Company’s operations. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID-19 escalates further or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. It is not possible at this time to know the full extent that the impact of COVID-19, and resulting measures to curtail its spread, could have on the Company’s operations, but such impacts could be material and adverse. Financial position and results of operations The Company’s fee income could be reduced due to the impacts of COVID-19. In keeping with guidance from regulators, the Company continues to work with COVID-19 affected customers to waive fees from a variety of sources, such as, but not limited to, insufficient funds and overdraft fees, ATM fees, account maintenance fees, etc. These reductions in fees are thought, at this time, to be temporary in conjunction with the length of the expected COVID-19 related economic crisis. At this time, the Company is unable to project the materiality of such an impact, but recognizes the breadth of the economic impact is likely to impact its fee income in future periods. The Company’s interest income could be reduced due to the impacts of COVID-19. In keeping with guidance from regulators, the Company is actively working with COVID-19 affected borrowers to defer their payments, interest, and fees. During the second quarter of 2020, the Company sold approximately $76.6 million of SBA PPP loans originated to a third party at a minimal discount. While interest and fees for any remaining SBA PPP loans will still accrue to income through normal GAAP accounting, should eventual credit losses on these deferred payments emerge, interest income and fees accrued may need to be reversed. In such a scenario, interest income in future periods could be negatively impacted. At this time, the Company is unable to project the materiality of such an impact, but recognizes the breadth of the economic impact may affect its borrowers’ ability to repay in future periods. In an agreement with a third party provider, the Company sold substantially all of its Paycheck Protection Program (" PPP") loan portfolio that were originated and funded during the first and second quarter of 2020. This transaction allowed the Company to immediately recognize the origination fees paid by the Small Business Administration (“SBA”) during the second quarter of 2020. The Company no longer retains the servicing or other risks associated with the administration of the transferred loan portfolio. Lending operations and accommodations to borrowers In keeping with regulatory guidance to work with borrowers during this unprecedented situation and as outlined in the CARES Act, the Company continues to execute a payment deferral program for its eligible clients that are adversely affected by the pandemic. Depending on the demonstrated need of the client, the Company is deferring either the full loan payment or the principal component of the loan payment, with the typical deferral period of 90 days . The majority of the Company’s first round of 90-day loan payment deferrals began to mature toward the end of the second quarter of 2020 and during the first part of the third quarter of 2020. The Company is working with its customers during this timeframe to determine if a second 90-day loan payment deferral is necessary. During the period ended June 30, 2020, interagency guidance and the CARES Act rules provided clarity to accounting for modifications whereby under certain circumstances, such modifications would not be considered troubled debt restructurings ("TDRs"). As of July 31, 2020, we have approximately 305 loans with a balance of approximately $478,000 that have returned to regular payment status, and we have approximately 101 loans with a balance of approximately $253,000 that remain on temporary payment deferral program. Credit Pertaining to the Company’s June 30, 2020 financial condition and results of operations, COVID-19 had an impact on the Company’s allowance for loan and lease losses (“ALLL”) and the resulting provision for loan losses were impacted by changes in economic conditions. Should economic conditions worsen, we could experience further increases in our ALLL and record additional provision expense. The execution of the payment deferral program discussed above improved our ratio of past due loans to total loans. It is possible that our asset quality measures could worsen at future measurement periods if the effects of COVID-19 are prolonged. Goodwill COVID-19 could cause a further and sustained decline in the Company’s stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause us to perform an additional goodwill impairment test and could result in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. 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. Recently Adopted and Effective Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04 , “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment .” The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation and instead treats goodwill impairment as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. ASU 2017-04 became effective for us on January 1, 2020, and it did not have a material impact on the Company’s consolidated financial statements. The Company's policy is to test goodwill for impairment annually on December 31 or on an interim basis if an event triggering impairment may have occurred. During the period ended June 30, 2020, the economic turmoil and market volatility resulting from the COVID-19 crisis resulted in a decrease in the Company's stock price and market capitalization. Management believed such decrease was a triggering indicator requiring an interim goodwill impairment quantitative analysis. Under the new simplified guidance, the Company determined that none of its goodwill was impaired as of June 30, 2020. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes. In August 2018, the FASB issued ASU No. 2018-13 , “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 became effective for us on January 1, 2020, and only revises disclosure requirements. It did not have a material impact on the Company’s consolidated 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 became effective for the Company on January 1, 2020, and it did not have a significant impact on the Company's consolidated financial statements. Status of New Accounting Standard for Accounting for Allowance for Credit Losses On January 1, 2020, ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , became effective for the Company which replaces the existing incurred loss impairment methodology ("ILM") 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 ("ACL"). The Cumulative Expected Credit Loss ("CECL") standard also simplifies the accounting model for purchased credit impaired loans. Additionally, Topic 326 requires expected credit losses on available-for-sale ("AFS") debt securities be recorded as an ACL. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may utilize an assumption of zero credit losses. In accordance with Section 4014 of the CARES Act, the Company deferred implementation of CECL and thus elected to continue to utilize the ILM to calculate loan loss reserves in the first and second quarters 2020. The temporary deferral of CECL will remain effective until the earlier of the termination of the national emergency declaration concerning the COVID-19 pandemic or December 31, 2020, with an effective retrospective implementation date of January 1, 2020. There is increased uncertainty on the local, regional, and national economy as a result of local and state stay-at-home orders, as well as relief measures provided at a national, state, and local level. The Company has taken actions to mitigate the impact or potential prospective credit losses including permitting short-term payment deferrals to current customers. These conditions significantly impact management’s determination of a reasonable and supportable forecast, an essential requirement in the calculation of expected credit losses under CECL methodology. The Company believes that the deferral will provide time to better assess the impact of the COVID-19 pandemic on the expected lifetime credit losses. Management will continue to measure and monitor the estimated impacts of CECL adoption through continued parallel testing of model simulations based on our portfolio composition and current expectations of future economic conditions. The Company’s CECL implementation efforts will remain in process in order to adequately comply with the provisions of CECL once the deferral period ceases. |
SECURITIES
SECURITIES | 6 Months Ended |
Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES The following table summarizes the amortized cost and fair value of the securities available-for-sale portfolio at June 30, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2020 Mortgage-backed securities: residential $ 250,810 $ 6,828 $ (1) $ 257,637 Mortgage-backed securities: commercial 15,217 454 (79) 15,592 Corporate notes 2,500 92 — 2,592 State and political subdivisions 228,567 5,698 (6,209) 228,056 Total $ 497,094 $ 13,072 $ (6,289) $ 503,877 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 There were no securities held-to-maturity at June 30, 2020 or December 31, 2019. The proceeds from sales, calls, and prepayments of available for sale securities and the associated gains and losses were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 Proceeds $ 17,462 $ 87,424 $ 119,888 $ 347,037 Gross gains 253 367 1,677 2,168 Gross losses (87) — (115) (1,651) 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, are shown separately. June 30, 2020 Amortized Cost Fair Value Available-for-sale Over one year through five years $ 1,606 $ 1,634 Over five years through ten years 5,461 5,437 Over ten years 224,000 223,577 Mortgage-backed securities: residential 250,810 257,637 Mortgage-backed securities: commercial 15,217 15,592 Total $ 497,094 $ 503,877 Securities pledged at June 30, 2020, and December 31, 2019 had a carrying amount of $283,970 and $294,585, respectively, that were pledged to secure public deposits. At June 30, 2020 and December 31, 2019, 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 shareholders’ equity. The following table summarizes the securities with unrealized and unrecognized losses at June 30, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2020 Available-for-sale Mortgage-backed securities: residential $ — $ — $ 102 $ (1) $ 102 $ (1) Mortgage-backed securities: commercial — — 3,109 (79) 3,109 (79) State and political subdivisions 116,336 (6,209) — — 116,336 (6,209) Total available-for-sale $ 116,336 $ (6,209) $ 3,211 $ (80) $ 119,547 $ (6,289) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2019 Available-for-sale Mortgage-backed securities: residential $ 49,390 $ (172) $ 91,644 $ (684) $ 141,034 $ (856) Asset-backed securities 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) Unrealized losses on debt securities have not been recognized into income because the issuers’ bonds are of high credit quality. As of June 30, 2020, 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 recover as the bonds approach maturity. |
LOANS
LOANS | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
LOANS | LOANS Loans at June 30, 2020 and December 31, 2019 were as follows: June 30, December 31, Loans Construction and land development $ 645,281 $ 591,541 Commercial real estate: Nonfarm, nonresidential 969,870 944,021 Other 47,559 49,891 Residential real estate: Closed-end 1-4 family 424,786 455,920 Other 186,746 187,681 Commercial and industrial 520,413 582,641 Consumer and other 3,570 4,769 Loans before net deferred loan fees 2,798,225 2,816,464 Deferred loan fees, net (3,457) (4,020) Total loans 2,794,768 2,812,444 Allowance for loan losses (38,100) (45,436) Total loans, net of allowance for loan losses $ 2,756,668 $ 2,767,008 The following table presents the activity in the allowance for loan losses by portfolio segment for the three-month periods ended June 30, 2020 and 2019: Construction Commercial Residential Commercial Consumer Total Three Months Ended June 30, 2020 Allowance for loan losses: Beginning balance $ 6,417 $ 9,018 $ 4,767 $ 18,146 $ 55 $ 38,403 Provision for loan losses 102 540 (288) 2,032 809 3,195 Loans charged-off — — — (5,163) (3) (5,166) Recoveries — — — 1,662 6 1,668 Total ending allowance balance $ 6,519 $ 9,558 $ 4,479 $ 16,677 $ 867 $ 38,100 Three Months Ended June 30, 2019 Allowance for loan losses: Beginning balance $ 4,742 $ 7,027 $ 4,810 $ 11,229 $ 49 $ 27,857 Provision for loan losses 42 614 18 6,382 (25) 7,031 Loans charged-off — — — (7,563) (29) (7,592) Recoveries — — 16 70 61 147 Total ending allowance balance $ 4,784 $ 7,641 $ 4,844 $ 10,118 $ 56 $ 27,443 The following table presents the activity in the allowance for loan losses by portfolio segment for the six-month periods ended June 30, 2020 and 2019: Construction Commercial Residential Commercial Consumer Total Six Months Ended June 30, 2020 Allowance for loan losses: Beginning balance $ 4,847 $ 8,113 $ 4,462 $ 27,957 $ 57 $ 45,436 Provision for loan losses 1,672 1,445 24 12,254 822 16,217 Loans charged-off — — (8) (25,664) (24) (25,696) Recoveries — — 1 2,130 12 2,143 Total ending allowance balance $ 6,519 $ 9,558 $ 4,479 $ 16,677 $ 867 $ 38,100 Six Months Ended June 30, 2019 Allowance for loan losses: Beginning balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Provision for loan losses 41 916 101 11,012 16 12,086 Loans charged-off — — (15) (8,131) (99) (8,245) Recoveries — — 15 71 65 151 Total ending allowance balance $ 4,784 $ 7,641 $ 4,844 $ 10,118 $ 56 $ 27,443 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 June 30, 2020 and December 31, 2019. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and net deferred loan fees due to immateriality. Construction Commercial Residential Commercial Consumer Total June 30, 2020 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 1,528 $ — $ 1,528 Collectively evaluated for impairment 6,519 9,558 4,479 15,149 867 36,572 Total ending allowance balance $ 6,519 $ 9,558 $ 4,479 $ 16,677 $ 867 $ 38,100 Loans: Individually evaluated for impairment $ 335 $ 4,305 $ 4,413 $ 18,016 $ — $ 27,069 Collectively evaluated for impairment 644,946 1,013,124 607,119 502,397 3,570 2,771,156 Total ending loans balance $ 645,281 $ 1,017,429 $ 611,532 $ 520,413 $ 3,570 $ 2,798,225 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 Loans collectively evaluated for impairment reported at June 30, 2020 include certain acquired loans. At June 30, 2020, these non-purchased credit impaired (PCI) loans had a carrying value of $47,053, comprised of contractually unpaid principal totaling $47,707 and discounts totaling $654. Management evaluated these loans for credit deterioration since acquisition and determined that an allowance for loan losses of $71 was necessary at June 30, 2020. The following table presents information related to impaired loans by class of loans as of June 30, 2020 and December 31, 2019: Unpaid Recorded Allowance for June 30, 2020 With no allowance recorded: Construction and land development $ 335 $ 335 $ — Commercial real estate: Nonfarm, nonresidential 4,305 4,305 — Residential real estate: Closed-end 1-4 family 1,875 1,868 — Other 2,545 2,545 — Commercial and industrial 15,472 15,472 — Subtotal 24,532 24,525 — With an allowance recorded: Commercial and industrial 7,697 2,544 1,528 Subtotal 7,697 2,544 1,528 Total $ 32,229 $ 27,069 $ 1,528 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 The following table presents the average recorded investment of impaired loans by class of loans for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended Average Recorded Investment 2020 2019 2020 2019 With no allowance recorded: Construction and land development $ 224 $ — $ 117 $ 384 Commercial real estate: Nonfarm, nonresidential 4,736 — 4,660 25 Residential real estate: Closed-end 1-4 family 1,947 681 1,603 744 Other 2,252 1,086 2,546 1,174 Commercial and industrial 16,563 2,638 17,863 1,319 Subtotal 25,722 4,405 26,789 3,646 With an allowance recorded: Construction and land development — — — 91 Commercial real estate: Nonfarm, nonresidential — — 78 — Residential real estate: Closed-end 1-4 family 214 — 213 — Commercial and industrial 3,649 4,404 7,232 3,787 Subtotal 3,863 4,404 7,523 3,878 Total average recorded investment $ 29,585 $ 8,809 $ 34,312 $ 7,524 The impact on net interest income for these loans was not material to the Company’s results of operations for the three and six months ended June 30, 2020 and 2019. The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of June 30, 2020 and December 31, 2019: Nonaccrual Loans Past Due June 30, 2020 Commercial real estate: Nonfarm, nonresidential $ 5,760 $ — Residential real estate: Closed-end 1-4 family 1,868 — Other 1,612 — Commercial and industrial 15,193 — Total $ 24,433 $ — December 31, 2019 Construction and land development $ 30 $ — Residential real estate: Closed-end 1-4 family 954 — Other 1,523 — Commercial and industrial 24,528 654 Total $ 27,035 $ 654 Nonaccrual loans and any loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of June 30, 2020 and December 31, 2019 by class of loans: 30-59 60-89 Greater Total Loans Total June 30, 2020 Construction and land development $ — $ 1,174 $ — $ 1,174 $ 644,107 $ 645,281 Commercial real estate: Nonfarm, nonresidential 2,981 — 3,460 6,441 963,429 969,870 Other — — — — 47,559 47,559 Residential real estate: Closed-end 1-4 family — 1,930 — 1,930 422,856 424,786 Other 194 421 749 1,364 185,382 186,746 Commercial and industrial 393 — 2,916 3,309 517,104 520,413 Consumer and other — — — — 3,570 3,570 $ 3,568 $ 3,525 $ 7,125 $ 14,218 $ 2,784,007 $ 2,798,225 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 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. COVID-19 Supplemental information. The loan modifications and payment deferrals established in accordance with the CARES Act and interagency guidance disclosed in Note 1 did not result in immediate credit risk modifications. The impacted credits will continue to be monitored and assessed as the sustained impact of COVID-19 becomes better understood. 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 June 30, 2020 and December 31, 2019: Pass Special Substandard Total June 30, 2020 Construction and land development $ 644,946 $ — $ 335 $ 645,281 Commercial real estate: Nonfarm, nonresidential 958,145 6,974 4,751 969,870 Other 47,559 — — 47,559 Residential real estate: Closed-end 1-4 family 422,128 765 1,893 424,786 Other 182,979 — 3,767 186,746 Commercial and industrial 488,215 597 31,601 520,413 Consumer and other 3,570 — — 3,570 $ 2,747,542 $ 8,336 $ 42,347 $ 2,798,225 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 Troubled Debt Restructurings (TDRs) As of June 30, 2020, the Company’s loan portfolio contains four loans that have been modified as TDRs with a balance of $4,303. Three loans with a balance of $3,992 were added as TDRs during the second quarter of 2020. As of December 31, 2019, the Company’s loan portfolio contained one loan that had been modified in a troubled debt restructuring with a balance of $311. As of June 30, 2020, the Company had 437 loans with outstanding loan balances of $730,696 that were on temporary loan payment deferral, in accordance with the COVID-19 relief provided by the CARES Act. The following table presents the loan deferral balances as of June 30, 2020: June 30, 2020 Deferred Loan Total % of loans HFI Loans Construction and land development $ 75,801 2.7 % Commercial real estate: Nonfarm, nonresidential 471,210 16.9 % Other 23,806 0.9 % Residential real estate: Closed-end 1-4 family 37,917 1.4 % Other 7,348 0.3 % Commercial and industrial 114,595 4.1 % Consumer and other 19 — % Total $ 730,696 26.2 % As of July 31, 2020, we had approximately 305 loans with a balance of approximately $478,000 that had returned to regular payment status, and we had approximately 101 loans with a balance of approximately $253,000 that remained on a temporary payment deferral program. In accordance with the interagency guidance issued during the period ended June 30, 2020, these short-term deferrals are not considered TDRs.. |
LOAN SERVICING
LOAN SERVICING | 6 Months Ended |
Jun. 30, 2020 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING | LOAN SERVICING Loans serviced for others are not reported as assets. The principal balances of these loans at June 30, 2020 and December 31, 2019 are as follows: June 30, December 31, Loan portfolios serviced for: Federal Home Loan Mortgage Corporation $ 591,181 $ 488,790 Federal National Mortgage Association 58,292 10,221 Other 3,403 3,504 The related loan servicing rights activity for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 Servicing rights: Beginning of period $ 3,057 $ 3,366 $ 3,246 $ 3,403 Additions 1,724 196 2,118 383 Amortized to expense (655) (263) (1,013) (487) Change in impairment (91) — (316) — End of period $ 4,035 $ 3,299 $ 4,035 $ 3,299 The components of net loan servicing fees for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 Loan servicing fees, net: Loan servicing fees $ 332 $ 312 $ 654 $ 618 Amortization of loan servicing fees (655) (263) (1,013) (487) Change in impairment (91) — (316) — Total $ (414) $ 49 $ (675) $ 131 The fair value of servicing rights was estimated by management to be approximately $4,035 at June 30, 2020. Fair value for June 30, 2020 was determined using a weighted average discount rate of 9.5% and a weighted average prepayment speed of 21.4%. At December 31, 2019, the fair value of servicing rights was estimated by management to be approximately $3,922. Fair value for December 31, 2019 was determined using a weighted average discount rate of 9.5% and a weighted average prepayment speed of 16.8%. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
LEASES | LEASES Lessee Accounting The majority of leases in which the Company is the lessee are comprised of real estate property for branches and office space and are recorded as operating leases with terms extending through 2034. The Company has one finance lease with a lease term through 2035. In February 2020, the Company purchased the properties at Columbia Avenue and 120 9th Avenue in Franklin, Tennessee, therefore ending these lease agreements that represented approximately $19,000 and $20,000 in right-of-use assets and lease liabilities, respectively. In May 2020, the Company added one finance lease for a branch in Williamson County, Tennessee that relocated that added $1,627 in right-of-use assets and $1,618 in lease liabilities. In May 2020, a finance lease for an office space located in Williamson County, Tennessee was terminated and therefore decreased right-of-use assets and lease liabilities by $2,751 and $2,903, respectively. The following table represents lease assets and lease liabilities as of June 30, 2020, and December 31, 2019. Lease right-of-use assets Classification June 30, 2020 December 31, 2019 Operating lease right-of-use assets Other Assets $ 19,175 $ 39,594 Finance lease right-of-use assets Other Assets 1,611 2,819 Total lease right-of-use assets $ 20,786 $ 42,413 Lease liabilities Classification June 30, 2020 December 31, 2019 Operating lease liabilities Other Liabilities $ 20,130 $ 41,308 Finance lease liabilities Other Liabilities 1,615 2,942 Total lease liabilities $ 21,745 $ 44,250 |
LEASES | LEASES Lessee Accounting The majority of leases in which the Company is the lessee are comprised of real estate property for branches and office space and are recorded as operating leases with terms extending through 2034. The Company has one finance lease with a lease term through 2035. In February 2020, the Company purchased the properties at Columbia Avenue and 120 9th Avenue in Franklin, Tennessee, therefore ending these lease agreements that represented approximately $19,000 and $20,000 in right-of-use assets and lease liabilities, respectively. In May 2020, the Company added one finance lease for a branch in Williamson County, Tennessee that relocated that added $1,627 in right-of-use assets and $1,618 in lease liabilities. In May 2020, a finance lease for an office space located in Williamson County, Tennessee was terminated and therefore decreased right-of-use assets and lease liabilities by $2,751 and $2,903, respectively. The following table represents lease assets and lease liabilities as of June 30, 2020, and December 31, 2019. Lease right-of-use assets Classification June 30, 2020 December 31, 2019 Operating lease right-of-use assets Other Assets $ 19,175 $ 39,594 Finance lease right-of-use assets Other Assets 1,611 2,819 Total lease right-of-use assets $ 20,786 $ 42,413 Lease liabilities Classification June 30, 2020 December 31, 2019 Operating lease liabilities Other Liabilities $ 20,130 $ 41,308 Finance lease liabilities Other Liabilities 1,615 2,942 Total lease liabilities $ 21,745 $ 44,250 |
SHARE-BASED PAYMENTS
SHARE-BASED PAYMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
SHARE-BASED PAYMENTS | SHARE-BASED PAYMENTSThe Company has two share based compensation plans as described below. Total compensation cost that has been charged against income for those plans was $1,442 and $2,954 for the three and six months ended June 30, 2020 and $1,513 and $2,842 for the three and six months ended June 30, 2019. The total income tax benefit and expense, which is shown on the Consolidated Statements of Income was an increase of income tax expense of $210 and benefit of $3 for the three and six months ended June 30, 2020, respectively, and was a benefit of $92 and $205 for the three and six months ended June 30, 2019, respectively. 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 ISOs 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 (the “Amended and Restated 2017 Plan”) to make certain changes in response to feedback received from the Company's 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 June 30, 2020, there were 2,410,666 authorized shares available for issuance under the Amended and Restated 2017 Plan. Employee, organizer and director stock option 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 10 year contractual term with varying vesting requirements. The Company assigns discretion to its Compensation Committee to make grants either as qualified incentive stock options or as non-qualified stock options. All employee grants are intended to be treated as qualified incentive stock options, if allowable. All other grants are expected to be treated as non-qualified. The fair value of each option award is estimated on the date of grant using a closed form option valuation (Black-Scholes) model that uses the assumptions noted in the table below. Expected stock price volatility is based on historical volatilities of the Company. 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. There were no options granted during the six months ended June 30, 2020. The fair value of options granted during the six months ended June 30, 2019, was determined using the following weighted-average assumptions as of grant date. June 30, 2019 Risk-free interest rate 2.47 % Expected term 7 years Expected stock price volatility 30.64 % Dividend yield 0.57 % The weighted average fair value of options granted for the six months ended June 30, 2020 and 2019 were $0.00 and $9.78, respectively. A summary of the activity in the plans for the six months ended June 30, 2020 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2020 1,502,070 $ 22.39 Granted — — Exercised (76,489) 11.33 Forfeited, expired, or cancelled (19,252) 21.26 Outstanding at period end 1,406,329 $ 17.54 6.10 $ 4,993 Vested or expected to vest 1,336,013 $ 26.54 5.76 $ 4,743 Exercisable at period end 601,711 $ 17.49 5.76 $ 4,972 For the Six Months Ended 2020 2019 Stock options exercised: Intrinsic value of options exercised $ 1,399 $ 1,869 Cash received from options exercised 866 1,277 Tax benefit realized from option exercises 212 205 As of June 30, 2020, there was $2,271 of total unrecognized compensation cost related to non-vested stock options granted under the plans. The cost is expected to be recognized over a weighted-average period of 1.17 years. Restricted Stock and Restricted Stock Units : Additionally, the 2007 Plan and the Amended and Restated 2017 Plan each provides for the granting of restricted share awards and other performance related incentives. When the 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 do not have voting rights or dividend rights until the restrictions have lapsed. These awards typically have a vesting period of three five A summary of activity for non-vested restricted share awards for the six months ended June 30, 2020 is as follows: Non-vested Shares Shares Weighted- Non-vested at January 1, 2020 90,992 $ 32.54 Granted — — Vested (48,599) 32.10 Forfeited (180) 31.75 Non-vested at June 30, 2020 42,213 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 June 30, 2020, there was $387 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 1 year. The Company began granting restricted stock units in 2019. The restricted stock units vest annually into common stock outstanding on the date of grant during the service period. The following table outlines restricted stock units that were outstanding, grouped by similar vesting criteria, as of June 30, 2020: Grant year Units Awarded Service period in years 2019 2,870 5.0 2019 109,373 3.0 2020 118,725 3.0 Stock compensation expense related with the restricted stock units for the three and six months ended June 30, 2020 was $717 and $1,399, respectively. Stock compensation expense related with the restricted stock units for the three and six months ended June 30, 2019 was $483 and $579, respectively. 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 June 30, 2020 and 2019, there were $7,222 and $3,814 of total unrecognized compensation cost related to non-vested restricted stock units granted under the Amended and Restated 2017 Plan. The cost is expected to be recognized over a weighted-average period of 1.99 years. |
REGULATORY CAPITAL MATTERS
REGULATORY CAPITAL MATTERS | 6 Months Ended |
Jun. 30, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
REGULATORY CAPITAL MATTERS | REGULATORY CAPITAL MATTERSBanks 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) provide for counter cyclical capital requirements so that the required amount of capital increases in times of economic expansion and decreases in times of economic contraction, consistent with safety and soundness. Under the Basel III rules, banks must maintain a capital conservation buffer consisting of additional Common Equity Tier 1 Capital equal to 2.5% of risk-weighted assets above each of the required minimum capital levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying certain discretionary bonuses. This capital conservation buffer became fully effective for the Company as of January 1, 2019. Prompt corrective action 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 June 30, 2020, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. Management believes that, as of June 30, 2020, the Company and Bank met all capital adequacy requirements to which they are subject. There are no conditions or events since that notification that management believes have changed the institution’s category. In October 2019, the federal bank regulatory agencies, or the Agencies, issued a final rule, the Community Bank Leverage Ratio Framework, the “Framework,” to simplify capital calculations for community banks. The Framework provides for a simple measure of capital adequacy for certain community banking organizations and is consistent with Section 201 of the Economic Growth, Regulatory Relief and Consumer Protection Act. The Framework is optional and is designed to reduce burden by removing requirements for calculating and reporting risk-based capital ratios. Depository institutions and depository institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio of greater than 9%, are considered qualifying community banking organizations and are eligible to opt into the Framework. The final rule became effective January 1, 2020, and organizations that opt into the Framework and meet the criteria established by the rule can use the Framework for regulatory reports for the quarter ended March 31, 2020. In April 2020, the Agencies announced two interim final rules to provide relief associated with Section 4012 of the CARES Act. For institutions that elect the Framework, the interim rules temporarily lower the leverage ratio requirement to 8% for the second quarter of 2020 through the end of calendar year 2020 and to 8.5% for the 2021 calendar year. An institution will have until January 1, 2022 before the 9% leverage ratio requirement is re-established. The Company and the Bank have elected to opt into the Framework and will file their regulatory capital reports in accordance with the Framework’s guidance. For comparative purposes, the Company has included in the table below estimated regulatory capital ratios for the Company and for the Bank as of June 30, 2020, and December 31, 2019, based on the Basel III Capital Rules discussed above. Actual Required To Be Well Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Company-Level Company common equity Tier 1 capital to RWA $ 399,384 12.5 % $ 143,700 4.5 % N/A N/A Company Total Capital to RWA $ 496,529 15.5 % $ 255,466 8.0 % N/A N/A Company Tier 1 (Core) Capital to RWA $ 399,384 12.5 % $ 191,599 6.0 % N/A N/A Company Tier 1 Leverage Ratio $ 399,384 10.4 % $ 153,401 4.0 % N/A N/A Bank-Level Bank common equity Tier 1 capital to RWA $ 453,654 14.2 % $ 143,586 4.5 % $ 207,403 6.5 % Bank Total Capital to RWA $ 491,846 15.4 % $ 255,265 8.0 % $ 319,081 10.0 % Bank Tier 1 (Core) Capital to RWA $ 453,654 14.2 % $ 191,449 6.0 % $ 255,265 8.0 % Bank Tier 1 Leverage Ratio $ 453,654 11.8 % $ 153,114 4.0 % $ 191,392 5.0 % December 31, 2019 Company-Level Company common equity Tier 1 capital to RWA $ 388,199 11.9 % $ 146,711 4.5 % N/A N/A Company Total Capital to RWA $ 487,966 15.0 % $ 260,819 8.0 % N/A N/A Company Tier 1 (Core) Capital to RWA $ 388,199 11.9 % $ 195,614 6.0 % N/A N/A Company Tier 1 Leverage Ratio $ 388,199 10.3 % $ 151,456 4.0 % N/A N/A Bank-Level Bank common equity Tier 1 capital to RWA $ 441,348 13.6 % $ 146,491 4.5 % $ 211,599 6.5 % Bank Total Capital to RWA $ 482,183 14.8 % $ 260,429 8.0 % $ 325,536 10.0 % Bank Tier 1 (Core) Capital to RWA $ 441,348 13.6 % $ 195,322 6.0 % $ 260,429 8.0 % Bank Tier 1 Leverage Ratio $ 441,348 11.7 % $ 151,255 4.0 % $ 189,069 5.0 % Note: Minimum ratios presented exclude the capital conservation buffer Dividend Restrictions : The Company’s principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that may be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding two years, subject to the capital requirements described above. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS 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. As of June 30, 2020, there were no additional swap transactions during 2020. A summary of the Company's fair value hedge relationships as of June 30, 2020 and December 31, 2019 are as follows (in thousands): June 30, 2020 December 31, 2019 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Liability derivative Interest rate swap agreements - securities Other liabilities 6.55 2.527% 3 month LIBOR $ 101,205 $ 14,068 $ 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 three months ended June 30, 2020 and 2019 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on fair value hedging relationship 2020 2019 2020 2019 Interest rate swap agreements - securities: Hedged items $ 706 $ 3,615 $ 9,114 $ 4,733 Derivative designated as hedging instruments (706) (3,615) (9,114) (4,733) The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at June 30, 2020: Carrying Amount of the Hedged Assets (in thousands) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets Line item on the balance sheet June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Securities available-for-sale $ 101,205 $ 101,205 $ 9,114 $ 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 June 30, 2020 and December 31, 2019 are as follows (in thousands): June 30, 2020 December 31, 2019 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Liability derivatives Interest rate swap agreements Other liabilities 2.1 2.232% 1 month LIBOR $ 100,000 $ 3,741 $ 100,000 $ 1,592 The effects of the Company's cash flow hedge relationships on the statement of comprehensive income (loss) during the three months ended June 30, 2020 and 2019 were as follows: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Liability derivatives Interest rate swap agreements $ 142 $ (1,231) $ (1,587) $ (1,231) The cash flow hedges were determined to be highly effective during the periods presented and as a result qualify for hedge accounting treatment. The Company expects the hedges to continue to be highly effective and qualify for hedge accounting during the remaining terms of the swaps. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We enter into certain off-balance sheet arrangements in the normal course of business to meet the financing needs of our customers. Those agreements involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. These off-balance sheet arrangements include commitments to make loans, credit lines and standby letters of credit which would impact our liquidity and capital resources to the extent customers accept or use these commitments. A commitment to extend credit is a formal agreement to lend funds to a client as long as there is no violation of any condition established under the agreement. The actual borrowing needs of our customers under these credit commitments have historically been lower than the contractual amount of the commitments. A significant portion of these commitments expire without being drawn upon. Actual borrowing needs of our customers may exceed our expected funding requirements, especially during a challenging economic environment when our client companies may be more dependent on our credit commitments due to the lack of available credit elsewhere, the increasing costs of credit, or the limited availability of financings from other sources. Any failure to meet our unfunded credit commitments in accordance with the actual borrowing needs of our customers may have a material adverse effect on our business, financial condition, results of operations or reputation. Commitments to make loans, credit lines and standby letters of credit involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet financial instruments. The contractual amounts of financial instruments with off-balance sheet risk were as follows: June 30, 2020 December 31, 2019 Fixed Variable Total Fixed Variable Total Unused lines of credit $ 89,642 $ 637,394 $ 727,036 $ 89,040 $ 701,326 $ 790,366 Standby letters of credit 6,865 44,326 51,191 7,119 48,750 55,869 Mortgage loan commitments 136,235 — 136,235 48,999 — 48,999 Commitments to make loans are generally made for periods of over 365 days. At June 30, 2020, our loan commitments have interest rates ranging from 0.00% to 12.00% and maturity terms ranging from less than 1 year to 25 years. Of the $727,036 of unused lines of credit at June 30, 2020, the Company estimates approximately $294,290, or approximately 40.5%, are available to be drawn by customers without further approval by the Bank. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | 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 June 30, Quoted Prices Significant Significant Financial Assets Securities available-for-sale Mortgage-backed securities-residential $ — $ 257,637 $ — Mortgage-backed securities-commercial — 15,592 — Corporate notes — 2,592 — State and political subdivisions — 228,056 — Total securities available-for-sale $ — $ 503,877 $ — Loans held for sale $ — $ 61,142 $ — Derivative assets $ — $ 2,269 $ — Financial Liabilities Derivative liabilities $ — $ 18,269 $ — Fair Value Measurements at December 31, Quoted Prices Significant Significant Financial Assets Securities available-for-sale Mortgage-backed securities-residential $ — $ 375,943 $ — Asset-backed securities — 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 $ — Derivative assets $ — $ 225 $ — Financial Liabilities Derivative liabilities $ — $ 6,619 $ — 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). Derivative 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). Derivative 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 at June 30, 2020, and December 31, 2019 that had required write-downs to fair value. 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 of June 30, 2020, and December 31, 2019. Total carrying value in the Quoted market prices in Models with significant Models with significant Total losses for the period ended June 30, 2020 Impaired loans, net: (1) Commercial and industrial $ 1,016 $ — $ — $ 1,016 $ 5,153 Servicing rights, net 4,035 — — 4,035 316 Total $ 5,051 $ — $ — $ 5,051 $ 5,469 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 $ — (1) Amount is net of a valuation allowance of $6,760 and $20,771 at June 30, 2020 and December 31, 2019, respectively, as required by ASC 310-10, "Receivables." As of June 30, 2020 and December 31, 2019, the only Level 3 assets with material unobservable inputs are associated with impaired loans and servicing rights. The table above includes those loans and servicing rights that are impaired and have a carrying balance as of June 30, 2020 and December 31, 2019. 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. 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 June 30, 2020, the fair value of the non-real estate collateral loans was determined primarily based on the DCF method, resulting in a Level 3 fair value classification. 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. Financial Instruments Recorded Using Fair Value Option As of June 30, 2020, the unpaid principal balance of loans held for sale was $58,674 resulting in an unrealized gain of $2,468 included in gains on sale of loans. As of 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 the loans as of June 30, 2020, or December 31, 2019 are 90 days or more past due or on nonaccrual. The following tables present the carrying amounts, estimated fair value and placement in the fair value hierarchy at June 30, 2020 and December 31, 2019. Fair Value Measurements at June 30, Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 236,775 $ 236,775 $ — $ — $ 236,775 Certificates of deposit held at other financial institutions 3,506 — 3,506 — 3,506 Securities available for sale 503,877 — 503,877 — 503,877 Loans held for sale 61,142 — 61,142 — 61,142 Net loans 2,756,668 — — 2,713,013 2,713,013 Other assets 2,269 — 2,269 — 2,269 Accrued interest receivable 18,576 15 3,208 15,353 18,576 Financial liabilities Deposits $ 3,143,259 $ 2,646,541 $ 502,722 $ — $ 3,149,263 Federal Home Loan Bank advances 100,000 — 99,971 — 99,971 Subordinated notes, net 58,961 — — 60,461 60,461 Other liabilities 18,269 — 18,269 — 18,269 Accrued interest payable 2,711 71 1,953 687 2,711 Fair Value Measurements at December 31, Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 234,991 $ 234,991 $ — $ — $ 234,991 Certificates of deposit held at other financial institutions 3,590 — 3,590 — 3,590 Securities available-for-sale 652,132 — 652,132 — 652,132 Loans held for sale 43,162 — 43,162 — 43,162 Net loans 2,767,008 — — 2,753,761 2,753,761 Other assets 225 — 225 — 225 Accrued interest receivable 12,362 96 3,775 8,491 12,362 Financial 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, net 58,872 — — 60,922 60,922 Other liabilities 6,619 — 6,619 — 6,619 Accrued interest payable 4,201 154 687 3,360 4,201 There were no foreclosed assets as of June 30, 2020, or December 31, 2019, and accordingly, there were no properties at June 30, 2020 or December 31, 2019 that required write-downs to fair value. 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, excluding previously presented impaired loans measured at fair value on a non-recurring basis, 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) 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. (d) 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 90 days, approximate their fair values resulting in a Level 2 classification. (e) 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. (f) 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. (g) 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. (h) 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. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 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: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Basic Net income available to common shareholders $ 10,174 $ 5,173 $ 9,026 $ 8,075 Less: earnings allocated to participating securities (34) (41) (43) (79) Net income allocated to common shareholders $ 10,140 $ 5,132 $ 8,983 $ 7,996 Weighted average common shares outstanding including participating securities 14,915,317 14,599,407 14,882,426 14,580,370 Less: Participating securities (50,523) (117,063) (70,549) (143,043) Average shares 14,864,794 14,482,344 14,811,877 14,437,327 Basic earnings per common share $ 0.68 $ 0.35 $ 0.61 $ 0.55 Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Diluted Net income allocated to common shareholders $ 10,140 $ 5,132 $ 8,983 $ 7,996 Weighted average common shares outstanding for basic earnings per common share 14,864,794 14,482,344 14,811,877 14,437,327 Add: Dilutive effects of assumed exercises of stock options 175,652 341,777 241,835 376,762 Add: Dilutive effects of assumed restricted stock units 230,968 70,019 220,530 35,203 Average shares and dilutive potential common shares 15,271,414 14,894,140 15,274,242 14,849,292 Dilutive earnings per common share $ 0.66 $ 0.34 $ 0.59 $ 0.54 For the three months ended June 30, 2020 and 2019, stock options for 966,571 and 980,099 shares of common stock, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. For the six months ended June 30, 2020 and 2019, stock options for 823,528 and 874,279 shares of common stock, respectively, were not considered in computing diluted earnings per common share because they were antidilutive. |
SUBORDINATED DEBT ISSUANCE
SUBORDINATED DEBT ISSUANCE | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
SUBORDINATED DEBT ISSUANCE | SUBORDINATED DEBT ISSUANCE The Company’s subordinated notes, net of issuance costs, totaled $58,961 and $58,872 at June 30, 2020 and at December 31, 2019, respectively. 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 7 of these consolidated financial statements. During 2016, 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 (the “March 2016 Subordinated Notes”) were issued in a public offering to accredited institutional investors, and in June 2016, $20,000 of 7% fixed-to-floating rate subordinated notes (the “June 2016 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 issuance costs related to the March 2016 Subordinated Notes amounted to $1,382 and are being amortized as interest expense over the ten ten 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 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with United States Generally Accepted Accounting Principles (“GAAP”) for interim financial information and in accordance with guidance provided by the SEC. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Principles of Consolidation | In the opinion of management, the accompanying unaudited consolidated financial statements reflect all normal and recurring adjustments considered necessary for a fair presentation. Transactions between the subsidiaries have been eliminated. |
Recently Adopted Accounting Pronouncements | Recently Adopted and Effective Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04 , “ Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment .” The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation and instead treats goodwill impairment as the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance remains largely unchanged. ASU 2017-04 became effective for us on January 1, 2020, and it did not have a material impact on the Company’s consolidated financial statements. The Company's policy is to test goodwill for impairment annually on December 31 or on an interim basis if an event triggering impairment may have occurred. During the period ended June 30, 2020, the economic turmoil and market volatility resulting from the COVID-19 crisis resulted in a decrease in the Company's stock price and market capitalization. Management believed such decrease was a triggering indicator requiring an interim goodwill impairment quantitative analysis. Under the new simplified guidance, the Company determined that none of its goodwill was impaired as of June 30, 2020. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes. In August 2018, the FASB issued ASU No. 2018-13 , “Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements. Among the changes, entities will no longer be required to disclose the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, but will be required to disclose the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. ASU No. 2018-13 became effective for us on January 1, 2020, and only revises disclosure requirements. It did not have a material impact on the Company’s consolidated 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 became effective for the Company on January 1, 2020, and it did not have a significant impact on the Company's consolidated financial statements. Status of New Accounting Standard for Accounting for Allowance for Credit Losses On January 1, 2020, ASU 2016-13 Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , became effective for the Company which replaces the existing incurred loss impairment methodology ("ILM") 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 ("ACL"). The Cumulative Expected Credit Loss ("CECL") standard also simplifies the accounting model for purchased credit impaired loans. Additionally, Topic 326 requires expected credit losses on available-for-sale ("AFS") debt securities be recorded as an ACL. For certain types of debt securities, such as U.S. Treasuries and other securities with government guarantees, entities may utilize an assumption of zero credit losses. In accordance with Section 4014 of the CARES Act, the Company deferred implementation of CECL and thus elected to continue to utilize the ILM to calculate loan loss reserves in the first and second quarters 2020. The temporary deferral of CECL will remain effective until the earlier of the termination of the national emergency declaration concerning the COVID-19 pandemic or December 31, 2020, with an effective retrospective implementation date of January 1, 2020. There is increased uncertainty on the local, regional, and national economy as a result of local and state stay-at-home orders, as well as relief measures provided at a national, state, and local level. The Company has taken actions to mitigate the impact or potential prospective credit losses including permitting short-term payment deferrals to current customers. These conditions significantly impact management’s determination of a reasonable and supportable forecast, an essential requirement in the calculation of expected credit losses under CECL methodology. The Company believes that the deferral will provide time to better assess the impact of the COVID-19 pandemic on the expected lifetime credit losses. Management will continue to measure and monitor the estimated impacts of CECL adoption through continued parallel testing of model simulations based on our portfolio composition and current expectations of future economic conditions. The Company’s CECL implementation efforts will remain in process in order to adequately comply with the provisions of CECL once the deferral period ceases. |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 securities available-for-sale portfolio at June 30, 2020 and December 31, 2019 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income. Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2020 Mortgage-backed securities: residential $ 250,810 $ 6,828 $ (1) $ 257,637 Mortgage-backed securities: commercial 15,217 454 (79) 15,592 Corporate notes 2,500 92 — 2,592 State and political subdivisions 228,567 5,698 (6,209) 228,056 Total $ 497,094 $ 13,072 $ (6,289) $ 503,877 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 |
Summary of Proceeds from Sales and Calls of Securities Available for Sale 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: Three Months Ended Six Months Ended 2020 2019 2020 2019 Proceeds $ 17,462 $ 87,424 $ 119,888 $ 347,037 Gross gains 253 367 1,677 2,168 Gross losses (87) — (115) (1,651) |
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, are shown separately. June 30, 2020 Amortized Cost Fair Value Available-for-sale Over one year through five years $ 1,606 $ 1,634 Over five years through ten years 5,461 5,437 Over ten years 224,000 223,577 Mortgage-backed securities: residential 250,810 257,637 Mortgage-backed securities: commercial 15,217 15,592 Total $ 497,094 $ 503,877 |
Schedule of Unrealized Losses and Fair Value by Major Security Type | The following table summarizes the securities with unrealized and unrecognized losses at June 30, 2020 and December 31, 2019, aggregated by major security type and length of time in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses June 30, 2020 Available-for-sale Mortgage-backed securities: residential $ — $ — $ 102 $ (1) $ 102 $ (1) Mortgage-backed securities: commercial — — 3,109 (79) 3,109 (79) State and political subdivisions 116,336 (6,209) — — 116,336 (6,209) Total available-for-sale $ 116,336 $ (6,209) $ 3,211 $ (80) $ 119,547 $ (6,289) Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2019 Available-for-sale Mortgage-backed securities: residential $ 49,390 $ (172) $ 91,644 $ (684) $ 141,034 $ (856) Asset-backed securities 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) |
LOANS (Tables)
LOANS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Receivables [Abstract] | |
Summary of Loans | Loans at June 30, 2020 and December 31, 2019 were as follows: June 30, December 31, Loans Construction and land development $ 645,281 $ 591,541 Commercial real estate: Nonfarm, nonresidential 969,870 944,021 Other 47,559 49,891 Residential real estate: Closed-end 1-4 family 424,786 455,920 Other 186,746 187,681 Commercial and industrial 520,413 582,641 Consumer and other 3,570 4,769 Loans before net deferred loan fees 2,798,225 2,816,464 Deferred loan fees, net (3,457) (4,020) Total loans 2,794,768 2,812,444 Allowance for loan losses (38,100) (45,436) Total loans, net of allowance for loan losses $ 2,756,668 $ 2,767,008 |
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 three-month periods ended June 30, 2020 and 2019: Construction Commercial Residential Commercial Consumer Total Three Months Ended June 30, 2020 Allowance for loan losses: Beginning balance $ 6,417 $ 9,018 $ 4,767 $ 18,146 $ 55 $ 38,403 Provision for loan losses 102 540 (288) 2,032 809 3,195 Loans charged-off — — — (5,163) (3) (5,166) Recoveries — — — 1,662 6 1,668 Total ending allowance balance $ 6,519 $ 9,558 $ 4,479 $ 16,677 $ 867 $ 38,100 Three Months Ended June 30, 2019 Allowance for loan losses: Beginning balance $ 4,742 $ 7,027 $ 4,810 $ 11,229 $ 49 $ 27,857 Provision for loan losses 42 614 18 6,382 (25) 7,031 Loans charged-off — — — (7,563) (29) (7,592) Recoveries — — 16 70 61 147 Total ending allowance balance $ 4,784 $ 7,641 $ 4,844 $ 10,118 $ 56 $ 27,443 The following table presents the activity in the allowance for loan losses by portfolio segment for the six-month periods ended June 30, 2020 and 2019: Construction Commercial Residential Commercial Consumer Total Six Months Ended June 30, 2020 Allowance for loan losses: Beginning balance $ 4,847 $ 8,113 $ 4,462 $ 27,957 $ 57 $ 45,436 Provision for loan losses 1,672 1,445 24 12,254 822 16,217 Loans charged-off — — (8) (25,664) (24) (25,696) Recoveries — — 1 2,130 12 2,143 Total ending allowance balance $ 6,519 $ 9,558 $ 4,479 $ 16,677 $ 867 $ 38,100 Six Months Ended June 30, 2019 Allowance for loan losses: Beginning balance $ 4,743 $ 6,725 $ 4,743 $ 7,166 $ 74 $ 23,451 Provision for loan losses 41 916 101 11,012 16 12,086 Loans charged-off — — (15) (8,131) (99) (8,245) Recoveries — — 15 71 65 151 Total ending allowance balance $ 4,784 $ 7,641 $ 4,844 $ 10,118 $ 56 $ 27,443 |
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 June 30, 2020 and December 31, 2019. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and net deferred loan fees due to immateriality. Construction Commercial Residential Commercial Consumer Total June 30, 2020 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 1,528 $ — $ 1,528 Collectively evaluated for impairment 6,519 9,558 4,479 15,149 867 36,572 Total ending allowance balance $ 6,519 $ 9,558 $ 4,479 $ 16,677 $ 867 $ 38,100 Loans: Individually evaluated for impairment $ 335 $ 4,305 $ 4,413 $ 18,016 $ — $ 27,069 Collectively evaluated for impairment 644,946 1,013,124 607,119 502,397 3,570 2,771,156 Total ending loans balance $ 645,281 $ 1,017,429 $ 611,532 $ 520,413 $ 3,570 $ 2,798,225 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 |
Summary of Impaired Loans by Class of Loans | The following table presents information related to impaired loans by class of loans as of June 30, 2020 and December 31, 2019: Unpaid Recorded Allowance for June 30, 2020 With no allowance recorded: Construction and land development $ 335 $ 335 $ — Commercial real estate: Nonfarm, nonresidential 4,305 4,305 — Residential real estate: Closed-end 1-4 family 1,875 1,868 — Other 2,545 2,545 — Commercial and industrial 15,472 15,472 — Subtotal 24,532 24,525 — With an allowance recorded: Commercial and industrial 7,697 2,544 1,528 Subtotal 7,697 2,544 1,528 Total $ 32,229 $ 27,069 $ 1,528 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 The following table presents the average recorded investment of impaired loans by class of loans for the three and six months ended June 30, 2020 and 2019: Three Months Ended Six Months Ended Average Recorded Investment 2020 2019 2020 2019 With no allowance recorded: Construction and land development $ 224 $ — $ 117 $ 384 Commercial real estate: Nonfarm, nonresidential 4,736 — 4,660 25 Residential real estate: Closed-end 1-4 family 1,947 681 1,603 744 Other 2,252 1,086 2,546 1,174 Commercial and industrial 16,563 2,638 17,863 1,319 Subtotal 25,722 4,405 26,789 3,646 With an allowance recorded: Construction and land development — — — 91 Commercial real estate: Nonfarm, nonresidential — — 78 — Residential real estate: Closed-end 1-4 family 214 — 213 — Commercial and industrial 3,649 4,404 7,232 3,787 Subtotal 3,863 4,404 7,523 3,878 Total average recorded investment $ 29,585 $ 8,809 $ 34,312 $ 7,524 |
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 loans and loans past due over 90 days still on accrual by class of loans as of June 30, 2020 and December 31, 2019: Nonaccrual Loans Past Due June 30, 2020 Commercial real estate: Nonfarm, nonresidential $ 5,760 $ — Residential real estate: Closed-end 1-4 family 1,868 — Other 1,612 — Commercial and industrial 15,193 — Total $ 24,433 $ — December 31, 2019 Construction and land development $ 30 $ — Residential real estate: Closed-end 1-4 family 954 — Other 1,523 — Commercial and industrial 24,528 654 Total $ 27,035 $ 654 |
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 June 30, 2020 and December 31, 2019 by class of loans: 30-59 60-89 Greater Total Loans Total June 30, 2020 Construction and land development $ — $ 1,174 $ — $ 1,174 $ 644,107 $ 645,281 Commercial real estate: Nonfarm, nonresidential 2,981 — 3,460 6,441 963,429 969,870 Other — — — — 47,559 47,559 Residential real estate: Closed-end 1-4 family — 1,930 — 1,930 422,856 424,786 Other 194 421 749 1,364 185,382 186,746 Commercial and industrial 393 — 2,916 3,309 517,104 520,413 Consumer and other — — — — 3,570 3,570 $ 3,568 $ 3,525 $ 7,125 $ 14,218 $ 2,784,007 $ 2,798,225 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 |
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 June 30, 2020 and December 31, 2019: Pass Special Substandard Total June 30, 2020 Construction and land development $ 644,946 $ — $ 335 $ 645,281 Commercial real estate: Nonfarm, nonresidential 958,145 6,974 4,751 969,870 Other 47,559 — — 47,559 Residential real estate: Closed-end 1-4 family 422,128 765 1,893 424,786 Other 182,979 — 3,767 186,746 Commercial and industrial 488,215 597 31,601 520,413 Consumer and other 3,570 — — 3,570 $ 2,747,542 $ 8,336 $ 42,347 $ 2,798,225 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 |
Schedule Of Financing Receivables, Loan Deferrals | The following table presents the loan deferral balances as of June 30, 2020: June 30, 2020 Deferred Loan Total % of loans HFI Loans Construction and land development $ 75,801 2.7 % Commercial real estate: Nonfarm, nonresidential 471,210 16.9 % Other 23,806 0.9 % Residential real estate: Closed-end 1-4 family 37,917 1.4 % Other 7,348 0.3 % Commercial and industrial 114,595 4.1 % Consumer and other 19 — % Total $ 730,696 26.2 % |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019 are as follows: June 30, December 31, Loan portfolios serviced for: Federal Home Loan Mortgage Corporation $ 591,181 $ 488,790 Federal National Mortgage Association 58,292 10,221 Other 3,403 3,504 |
Related Loan Servicing Rights Activity | The related loan servicing rights activity for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 Servicing rights: Beginning of period $ 3,057 $ 3,366 $ 3,246 $ 3,403 Additions 1,724 196 2,118 383 Amortized to expense (655) (263) (1,013) (487) Change in impairment (91) — (316) — End of period $ 4,035 $ 3,299 $ 4,035 $ 3,299 |
Components of Net Loan Servicing Fees | The components of net loan servicing fees for the three and six months ended June 30, 2020 and 2019 were as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 Loan servicing fees, net: Loan servicing fees $ 332 $ 312 $ 654 $ 618 Amortization of loan servicing fees (655) (263) (1,013) (487) Change in impairment (91) — (316) — Total $ (414) $ 49 $ (675) $ 131 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Assets and Liabilities, Lessee | The following table represents lease assets and lease liabilities as of June 30, 2020, and December 31, 2019. Lease right-of-use assets Classification June 30, 2020 December 31, 2019 Operating lease right-of-use assets Other Assets $ 19,175 $ 39,594 Finance lease right-of-use assets Other Assets 1,611 2,819 Total lease right-of-use assets $ 20,786 $ 42,413 Lease liabilities Classification June 30, 2020 December 31, 2019 Operating lease liabilities Other Liabilities $ 20,130 $ 41,308 Finance lease liabilities Other Liabilities 1,615 2,942 Total lease liabilities $ 21,745 $ 44,250 |
SHARE-BASED PAYMENTS (Tables)
SHARE-BASED PAYMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Fair Value Assumptions of Stock Options | The fair value of options granted during the six months ended June 30, 2019, was determined using the following weighted-average assumptions as of grant date. June 30, 2019 Risk-free interest rate 2.47 % Expected term 7 years Expected stock price volatility 30.64 % Dividend yield 0.57 % |
Summary of Company's Stock Option Activities | A summary of the activity in the plans for the six months ended June 30, 2020 follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Outstanding at January 1, 2020 1,502,070 $ 22.39 Granted — — Exercised (76,489) 11.33 Forfeited, expired, or cancelled (19,252) 21.26 Outstanding at period end 1,406,329 $ 17.54 6.10 $ 4,993 Vested or expected to vest 1,336,013 $ 26.54 5.76 $ 4,743 Exercisable at period end 601,711 $ 17.49 5.76 $ 4,972 |
Summary of Stock Options Exercised | For the Six Months Ended 2020 2019 Stock options exercised: Intrinsic value of options exercised $ 1,399 $ 1,869 Cash received from options exercised 866 1,277 Tax benefit realized from option exercises 212 205 |
Summary of Activity for Nonvested Restricted Share Awards | A summary of activity for non-vested restricted share awards for the six months ended June 30, 2020 is as follows: Non-vested Shares Shares Weighted- Non-vested at January 1, 2020 90,992 $ 32.54 Granted — — Vested (48,599) 32.10 Forfeited (180) 31.75 Non-vested at June 30, 2020 42,213 |
Summary of Vesting Criteria for Restricted Stock Units | The Company began granting restricted stock units in 2019. The restricted stock units vest annually into common stock outstanding on the date of grant during the service period. The following table outlines restricted stock units that were outstanding, grouped by similar vesting criteria, as of June 30, 2020: Grant year Units Awarded Service period in years 2019 2,870 5.0 2019 109,373 3.0 2020 118,725 3.0 |
REGULATORY CAPITAL MATTERS (Tab
REGULATORY CAPITAL MATTERS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Actual and Required Capital Amounts and Ratios | as of June 30, 2020, and December 31, 2019, based on the Basel III Capital Rules discussed above. Actual Required To Be Well Amount Ratio Amount Ratio Amount Ratio June 30, 2020 Company-Level Company common equity Tier 1 capital to RWA $ 399,384 12.5 % $ 143,700 4.5 % N/A N/A Company Total Capital to RWA $ 496,529 15.5 % $ 255,466 8.0 % N/A N/A Company Tier 1 (Core) Capital to RWA $ 399,384 12.5 % $ 191,599 6.0 % N/A N/A Company Tier 1 Leverage Ratio $ 399,384 10.4 % $ 153,401 4.0 % N/A N/A Bank-Level Bank common equity Tier 1 capital to RWA $ 453,654 14.2 % $ 143,586 4.5 % $ 207,403 6.5 % Bank Total Capital to RWA $ 491,846 15.4 % $ 255,265 8.0 % $ 319,081 10.0 % Bank Tier 1 (Core) Capital to RWA $ 453,654 14.2 % $ 191,449 6.0 % $ 255,265 8.0 % Bank Tier 1 Leverage Ratio $ 453,654 11.8 % $ 153,114 4.0 % $ 191,392 5.0 % December 31, 2019 Company-Level Company common equity Tier 1 capital to RWA $ 388,199 11.9 % $ 146,711 4.5 % N/A N/A Company Total Capital to RWA $ 487,966 15.0 % $ 260,819 8.0 % N/A N/A Company Tier 1 (Core) Capital to RWA $ 388,199 11.9 % $ 195,614 6.0 % N/A N/A Company Tier 1 Leverage Ratio $ 388,199 10.3 % $ 151,456 4.0 % N/A N/A Bank-Level Bank common equity Tier 1 capital to RWA $ 441,348 13.6 % $ 146,491 4.5 % $ 211,599 6.5 % Bank Total Capital to RWA $ 482,183 14.8 % $ 260,429 8.0 % $ 325,536 10.0 % Bank Tier 1 (Core) Capital to RWA $ 441,348 13.6 % $ 195,322 6.0 % $ 260,429 8.0 % Bank Tier 1 Leverage Ratio $ 441,348 11.7 % $ 151,255 4.0 % $ 189,069 5.0 % Note: Minimum ratios presented exclude the capital conservation buffer |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivatives Designated Hedge Relationships | A summary of the Company's fair value hedge relationships as of June 30, 2020 and December 31, 2019 are as follows (in thousands): June 30, 2020 December 31, 2019 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Liability derivative Interest rate swap agreements - securities Other liabilities 6.55 2.527% 3 month LIBOR $ 101,205 $ 14,068 $ 101,205 $ 4,954 June 30, 2020 December 31, 2019 Balance Sheet Location Weighted Average Remaining Maturity (In Years) Weighted Average Pay Rate Receive Rate Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Liability derivatives Interest rate swap agreements Other liabilities 2.1 2.232% 1 month LIBOR $ 100,000 $ 3,741 $ 100,000 $ 1,592 |
Schedule of Effects of Fair Value Hedge Relationships Reported in Interest Income on Securities on Consolidated Statements of Income | The effects of fair value hedge relationships reported in interest income on securities on the consolidated statements of income for the three months ended June 30, 2020 and 2019 were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Gain (loss) on fair value hedging relationship 2020 2019 2020 2019 Interest rate swap agreements - securities: Hedged items $ 706 $ 3,615 $ 9,114 $ 4,733 Derivative designated as hedging instruments (706) (3,615) (9,114) (4,733) |
Schedule of Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges | The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges at June 30, 2020: Carrying Amount of the Hedged Assets (in thousands) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets Line item on the balance sheet June 30, 2020 December 31, 2019 June 30, 2020 December 31, 2019 Securities available-for-sale $ 101,205 $ 101,205 $ 9,114 $ 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 three months ended June 30, 2020 and 2019 were as follows: Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Liability derivatives Interest rate swap agreements $ 142 $ (1,231) $ (1,587) $ (1,231) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk | The contractual amounts of financial instruments with off-balance sheet risk were as follows: June 30, 2020 December 31, 2019 Fixed Variable Total Fixed Variable Total Unused lines of credit $ 89,642 $ 637,394 $ 727,036 $ 89,040 $ 701,326 $ 790,366 Standby letters of credit 6,865 44,326 51,191 7,119 48,750 55,869 Mortgage loan commitments 136,235 — 136,235 48,999 — 48,999 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, Quoted Prices Significant Significant Financial Assets Securities available-for-sale Mortgage-backed securities-residential $ — $ 257,637 $ — Mortgage-backed securities-commercial — 15,592 — Corporate notes — 2,592 — State and political subdivisions — 228,056 — Total securities available-for-sale $ — $ 503,877 $ — Loans held for sale $ — $ 61,142 $ — Derivative assets $ — $ 2,269 $ — Financial Liabilities Derivative liabilities $ — $ 18,269 $ — Fair Value Measurements at December 31, Quoted Prices Significant Significant Financial Assets Securities available-for-sale Mortgage-backed securities-residential $ — $ 375,943 $ — Asset-backed securities — 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 $ — Derivative assets $ — $ 225 $ — Financial Liabilities Derivative liabilities $ — $ 6,619 $ — |
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 of June 30, 2020, and December 31, 2019. Total carrying value in the Quoted market prices in Models with significant Models with significant Total losses for the period ended June 30, 2020 Impaired loans, net: (1) Commercial and industrial $ 1,016 $ — $ — $ 1,016 $ 5,153 Servicing rights, net 4,035 — — 4,035 316 Total $ 5,051 $ — $ — $ 5,051 $ 5,469 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 $ — (1) Amount is net of a valuation allowance of $6,760 and $20,771 at June 30, 2020 and December 31, 2019, respectively, as required by ASC 310-10, "Receivables." |
Carrying Amount and Estimated Fair Value of Financial Instruments | Fair Value Measurements at June 30, Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 236,775 $ 236,775 $ — $ — $ 236,775 Certificates of deposit held at other financial institutions 3,506 — 3,506 — 3,506 Securities available for sale 503,877 — 503,877 — 503,877 Loans held for sale 61,142 — 61,142 — 61,142 Net loans 2,756,668 — — 2,713,013 2,713,013 Other assets 2,269 — 2,269 — 2,269 Accrued interest receivable 18,576 15 3,208 15,353 18,576 Financial liabilities Deposits $ 3,143,259 $ 2,646,541 $ 502,722 $ — $ 3,149,263 Federal Home Loan Bank advances 100,000 — 99,971 — 99,971 Subordinated notes, net 58,961 — — 60,461 60,461 Other liabilities 18,269 — 18,269 — 18,269 Accrued interest payable 2,711 71 1,953 687 2,711 Fair Value Measurements at December 31, Carrying Level 1 Level 2 Level 3 Total Financial assets Cash and cash equivalents $ 234,991 $ 234,991 $ — $ — $ 234,991 Certificates of deposit held at other financial institutions 3,590 — 3,590 — 3,590 Securities available-for-sale 652,132 — 652,132 — 652,132 Loans held for sale 43,162 — 43,162 — 43,162 Net loans 2,767,008 — — 2,753,761 2,753,761 Other assets 225 — 225 — 225 Accrued interest receivable 12,362 96 3,775 8,491 12,362 Financial 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, net 58,872 — — 60,922 60,922 Other liabilities 6,619 — 6,619 — 6,619 Accrued interest payable 4,201 154 687 3,360 4,201 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Earnings per Share | The factors used in the earnings per share computation follow: Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Basic Net income available to common shareholders $ 10,174 $ 5,173 $ 9,026 $ 8,075 Less: earnings allocated to participating securities (34) (41) (43) (79) Net income allocated to common shareholders $ 10,140 $ 5,132 $ 8,983 $ 7,996 Weighted average common shares outstanding including participating securities 14,915,317 14,599,407 14,882,426 14,580,370 Less: Participating securities (50,523) (117,063) (70,549) (143,043) Average shares 14,864,794 14,482,344 14,811,877 14,437,327 Basic earnings per common share $ 0.68 $ 0.35 $ 0.61 $ 0.55 Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 Diluted Net income allocated to common shareholders $ 10,140 $ 5,132 $ 8,983 $ 7,996 Weighted average common shares outstanding for basic earnings per common share 14,864,794 14,482,344 14,811,877 14,437,327 Add: Dilutive effects of assumed exercises of stock options 175,652 341,777 241,835 376,762 Add: Dilutive effects of assumed restricted stock units 230,968 70,019 220,530 35,203 Average shares and dilutive potential common shares 15,271,414 14,894,140 15,274,242 14,849,292 Dilutive earnings per common share $ 0.66 $ 0.34 $ 0.59 $ 0.54 |
SUBORDINATED DEBT ISSUANCE (Tab
SUBORDINATED DEBT ISSUANCE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 |
BASIS OF PRESENTATION - Additio
BASIS OF PRESENTATION - Additional Information (Detail) - CARES Act $ in Thousands | 3 Months Ended | 6 Months Ended | 7 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($)contract | Jul. 31, 2020USD ($)contract | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Proceeds from Sale of Loans Receivable | $ 76,600 | ||
Subsequent Event | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Non-TDR modifications, number of contracts | contract | 305 | ||
Non-TDR modifications | $ 478,000 | ||
Payment Deferral | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Non-TDR modifications, number of contracts | contract | 437,000 | ||
Non-TDR modifications | $ 730,696 |
SECURITIES - Summary of Amortiz
SECURITIES - Summary of Amortized Cost and Fair Value of Securities Available for Sale (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 497,094 | $ 648,230 |
Gross Unrealized Gains | 13,072 | 5,037 |
Gross Unrealized Losses | (6,289) | (1,135) |
Fair Value | 503,877 | 652,132 |
Mortgage-backed securities: residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 250,810 | 374,923 |
Gross Unrealized Gains | 6,828 | 1,876 |
Gross Unrealized Losses | (1) | (856) |
Fair Value | 257,637 | 375,943 |
Mortgage-backed securities: commercial | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,217 | 17,858 |
Gross Unrealized Gains | 454 | 56 |
Gross Unrealized Losses | (79) | (134) |
Fair Value | 15,592 | 17,780 |
Corporate notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,500 | 32,825 |
Gross Unrealized Gains | 92 | 539 |
Gross Unrealized Losses | 0 | (3) |
Fair Value | 2,592 | 33,361 |
State and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 228,567 | 222,624 |
Gross Unrealized Gains | 5,698 | 2,566 |
Gross Unrealized Losses | (6,209) | (142) |
Fair Value | $ 228,056 | $ 225,048 |
SECURITIES - Additional Informa
SECURITIES - Additional Information (Detail) $ in Thousands | Jun. 30, 2020USD ($)security | Dec. 31, 2019USD ($)security |
Investments, Debt and Equity Securities [Abstract] | ||
Number of securities held to maturity | security | 0 | 0 |
Carrying value of pledged securities | $ | $ 283,970 | $ 294,585 |
SECURITIES - Summary of Proceed
SECURITIES - Summary of Proceeds from Sales and Calls of Securities Available for Sale and Associated Gains and Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 17,462 | $ 87,424 | $ 119,888 | $ 347,037 |
Gross gains | 253 | 367 | 1,677 | 2,168 |
Gross losses | $ (87) | $ 0 | $ (115) | $ (1,651) |
SECURITIES - Schedule of Amorti
SECURITIES - Schedule of Amortized Cost and Fair Value of Investment Securities Portfolio by Contractual Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Over one year through five years | $ 1,606 | |
Over five years through ten years | 5,461 | |
Over ten years | 224,000 | |
Amortized Cost | 497,094 | $ 648,230 |
Fair Value | ||
Over one year through five years | 1,634 | |
Over five years through ten years | 5,437 | |
Over ten years | 223,577 | |
Total | 503,877 | 652,132 |
Mortgage-backed securities: residential | ||
Amortized Cost | ||
Mortgage-backed securities | 250,810 | |
Amortized Cost | 250,810 | 374,923 |
Fair Value | ||
Mortgage-backed securities | 257,637 | |
Total | 257,637 | 375,943 |
Mortgage-backed securities: commercial | ||
Amortized Cost | ||
Mortgage-backed securities | 15,217 | |
Amortized Cost | 15,217 | 17,858 |
Fair Value | ||
Mortgage-backed securities | 15,592 | |
Total | $ 15,592 | $ 17,780 |
SECURITIES - Schedule of Unreal
SECURITIES - Schedule of Unrealized Losses and Fair Value by Major Security Type (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value | ||
Less Than 12 Months | $ 116,336 | $ 84,666 |
12 Months or Longer | 3,211 | 98,930 |
Total | 119,547 | 183,596 |
Unrealized Losses | ||
Less Than 12 Months | (6,209) | (346) |
12 Months or Longer | (80) | (789) |
Total | (6,289) | (1,135) |
Mortgage-backed securities: residential | ||
Fair Value | ||
Less Than 12 Months | 0 | 49,390 |
12 Months or Longer | 102 | 91,644 |
Total | 102 | 141,034 |
Unrealized Losses | ||
Less Than 12 Months | 0 | (172) |
12 Months or Longer | (1) | (684) |
Total | (1) | (856) |
Mortgage-backed securities: commercial | ||
Fair Value | ||
Less Than 12 Months | 0 | |
12 Months or Longer | 3,109 | |
Total | 3,109 | |
Unrealized Losses | ||
Less Than 12 Months | 0 | |
12 Months or Longer | (79) | |
Total | (79) | |
Asset-backed securities | ||
Fair Value | ||
Less Than 12 Months | 4,436 | |
12 Months or Longer | 7,286 | |
Total | 11,722 | |
Unrealized Losses | ||
Less Than 12 Months | (29) | |
12 Months or Longer | (105) | |
Total | (134) | |
Corporate notes | ||
Fair Value | ||
Less Than 12 Months | 997 | |
12 Months or Longer | 0 | |
Total | 997 | |
Unrealized Losses | ||
Less Than 12 Months | (3) | |
12 Months or Longer | 0 | |
Total | (3) | |
State and political subdivisions | ||
Fair Value | ||
Less Than 12 Months | 116,336 | 29,843 |
12 Months or Longer | 0 | 0 |
Total | 116,336 | 29,843 |
Unrealized Losses | ||
Less Than 12 Months | (6,209) | (142) |
12 Months or Longer | 0 | 0 |
Total | $ (6,209) | $ (142) |
LOANS - Summary of Loans (Detai
LOANS - Summary of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | $ 2,798,225 | $ 2,816,464 | ||||
Deferred loan fees, net | (3,457) | (4,020) | ||||
Total loans | 2,794,768 | 2,812,444 | ||||
Allowance for loan losses | (38,100) | $ (38,403) | (45,436) | $ (27,443) | $ (27,857) | $ (23,451) |
Financing receivable, after allowance for credit loss | 2,756,668 | 2,767,008 | ||||
Construction and land development | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 645,281 | 591,541 | ||||
Allowance for loan losses | (6,519) | (6,417) | (4,847) | (4,784) | (4,742) | (4,743) |
Commercial real estate: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 1,017,429 | 993,912 | ||||
Allowance for loan losses | (9,558) | (9,018) | (8,113) | (7,641) | (7,027) | (6,725) |
Commercial real estate: | Nonfarm, nonresidential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 969,870 | 944,021 | ||||
Commercial real estate: | Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 47,559 | 49,891 | ||||
Residential real estate: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 611,532 | 643,601 | ||||
Allowance for loan losses | (4,479) | (4,767) | (4,462) | (4,844) | (4,810) | (4,743) |
Residential real estate: | Closed-end 1-4 family | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 424,786 | 455,920 | ||||
Residential real estate: | Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 186,746 | 187,681 | ||||
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 520,413 | 582,641 | ||||
Allowance for loan losses | (16,677) | (18,146) | (27,957) | (10,118) | (11,229) | (7,166) |
Consumer and other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Financing Receivable, before Allowance for Credit Loss and Fee | 3,570 | 4,769 | ||||
Allowance for loan losses | $ (867) | $ (55) | $ (57) | $ (56) | $ (49) | $ (74) |
LOANS - Activity in Allowance f
LOANS - Activity in Allowance for Loan Losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 38,403 | $ 27,857 | $ 45,436 | $ 23,451 |
Provision for loan losses | 3,195 | 7,031 | 16,217 | 12,086 |
Loans charged-off | (5,166) | (7,592) | (25,696) | (8,245) |
Recoveries | 1,668 | 147 | 2,143 | 151 |
Total ending allowance balance | 38,100 | 27,443 | 38,100 | 27,443 |
Construction and land development | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 6,417 | 4,742 | 4,847 | 4,743 |
Provision for loan losses | 102 | 42 | 1,672 | 41 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | 6,519 | 4,784 | 6,519 | 4,784 |
Commercial real estate: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 9,018 | 7,027 | 8,113 | 6,725 |
Provision for loan losses | 540 | 614 | 1,445 | 916 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | 9,558 | 7,641 | 9,558 | 7,641 |
Residential real estate: | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 4,767 | 4,810 | 4,462 | 4,743 |
Provision for loan losses | (288) | 18 | 24 | 101 |
Loans charged-off | 0 | 0 | (8) | (15) |
Recoveries | 0 | 16 | 1 | 15 |
Total ending allowance balance | 4,479 | 4,844 | 4,479 | 4,844 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 18,146 | 11,229 | 27,957 | 7,166 |
Provision for loan losses | 2,032 | 6,382 | 12,254 | 11,012 |
Loans charged-off | (5,163) | (7,563) | (25,664) | (8,131) |
Recoveries | 1,662 | 70 | 2,130 | 71 |
Total ending allowance balance | 16,677 | 10,118 | 16,677 | 10,118 |
Consumer and other | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | 55 | 49 | 57 | 74 |
Provision for loan losses | 809 | (25) | 822 | 16 |
Loans charged-off | (3) | (29) | (24) | (99) |
Recoveries | 6 | 61 | 12 | 65 |
Total ending allowance balance | $ 867 | $ 56 | $ 867 | $ 56 |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 1,528 | $ 20,771 |
Collectively evaluated for impairment | 36,572 | 24,665 |
Total ending allowance balance | 38,100 | 45,436 |
Individually evaluated for impairment | 27,069 | 27,035 |
Collectively evaluated for impairment | 2,771,156 | 2,789,429 |
Total ending loans balance | 2,798,225 | 2,816,464 |
Construction and land development | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 6,519 | 4,847 |
Total ending allowance balance | 6,519 | 4,847 |
Individually evaluated for impairment | 335 | 30 |
Collectively evaluated for impairment | 644,946 | 591,511 |
Total ending loans balance | 645,281 | 591,541 |
Commercial real estate: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 9,558 | 8,113 |
Total ending allowance balance | 9,558 | 8,113 |
Individually evaluated for impairment | 4,305 | 0 |
Collectively evaluated for impairment | 1,013,124 | 993,912 |
Total ending loans balance | 1,017,429 | 993,912 |
Residential real estate: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 17 |
Collectively evaluated for impairment | 4,479 | 4,445 |
Total ending allowance balance | 4,479 | 4,462 |
Individually evaluated for impairment | 4,413 | 2,477 |
Collectively evaluated for impairment | 607,119 | 641,124 |
Total ending loans balance | 611,532 | 643,601 |
Commercial and industrial | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 1,528 | 20,754 |
Collectively evaluated for impairment | 15,149 | 7,203 |
Total ending allowance balance | 16,677 | 27,957 |
Individually evaluated for impairment | 18,016 | 24,528 |
Collectively evaluated for impairment | 502,397 | 558,113 |
Total ending loans balance | 520,413 | 582,641 |
Consumer and other | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 867 | 57 |
Total ending allowance balance | 867 | 57 |
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,570 | 4,769 |
Total ending loans balance | $ 3,570 | $ 4,769 |
LOANS - Narrative (Detail)
LOANS - Narrative (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 7 Months Ended | 12 Months Ended | ||||
Jul. 31, 2020USD ($) | Jun. 30, 2020USD ($)contract | Jun. 30, 2020USD ($)contract | Jul. 31, 2020USD ($)contract | Dec. 31, 2019USD ($)contract | Mar. 31, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Collectively evaluated for impairment | $ 36,572 | $ 36,572 | $ 24,665 | ||||||
Unpaid principal amount | 32,229 | 32,229 | 27,043 | ||||||
Financing Receivable, Allowance for Credit Loss | 38,100 | 38,100 | 45,436 | $ 38,403 | $ 27,443 | $ 27,857 | $ 23,451 | ||
Loans modified as troubled debt restructuring, Amount | $ 4,303 | $ 4,303 | $ 311 | ||||||
Number of loans modified as troubled debt restructuring | contract | 3 | 4 | 1 | ||||||
Troubled debt restructuring, increase (decrease) from modification | $ 3,992 | ||||||||
CARES Act | Subsequent Event | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Non-TDR modifications, number of contracts | contract | 305 | ||||||||
Non-TDR modifications | $ 478,000 | ||||||||
Increase (decrease) in non-TDR modifications | $ 478 | ||||||||
Payment Deferral | CARES Act | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Non-TDR modifications, number of contracts | contract | 437,000 | ||||||||
Non-TDR modifications | $ 730,696 | ||||||||
Financial Asset, Other than Financial Asset Acquired with Credit Deterioration | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Collectively evaluated for impairment | 47,053 | 47,053 | |||||||
Unpaid principal amount | 47,707 | 47,707 | |||||||
Discount (premium) | 654 | ||||||||
Financing Receivable, Allowance for Credit Loss | $ 71 | $ 71 |
LOANS - Summary of Impaired Loa
LOANS - Summary of Impaired Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Unpaid Principal Balance | ||
With no allowance recorded: | $ 24,532 | $ 1,883 |
With an allowance recorded: | 7,697 | 25,160 |
Total | 32,229 | 27,043 |
Recorded Investment | ||
With no allowance recorded: | 24,525 | 1,875 |
With an allowance recorded: | 2,544 | 25,160 |
Total | 27,069 | 27,035 |
Allowance for Loan Losses Allocated | 1,528 | 20,771 |
Commercial real estate: | Nonfarm, nonresidential | ||
Unpaid Principal Balance | ||
With no allowance recorded: | 4,305 | |
Recorded Investment | ||
With no allowance recorded: | 4,305 | |
Residential real estate: | Closed-end 1-4 family | ||
Unpaid Principal Balance | ||
With no allowance recorded: | 1,875 | 319 |
With an allowance recorded: | 643 | |
Recorded Investment | ||
With no allowance recorded: | 1,868 | 311 |
With an allowance recorded: | 643 | |
Allowance for Loan Losses Allocated | 17 | |
Residential real estate: | Other | ||
Unpaid Principal Balance | ||
With no allowance recorded: | 2,545 | 1,523 |
Recorded Investment | ||
With no allowance recorded: | 2,545 | 1,523 |
Construction and land development | ||
Unpaid Principal Balance | ||
With no allowance recorded: | 335 | 30 |
Recorded Investment | ||
With no allowance recorded: | 335 | 30 |
Commercial and industrial | ||
Unpaid Principal Balance | ||
With no allowance recorded: | 15,472 | 11 |
With an allowance recorded: | 7,697 | 24,517 |
Recorded Investment | ||
With no allowance recorded: | 15,472 | 11 |
With an allowance recorded: | 2,544 | 24,517 |
Allowance for Loan Losses Allocated | $ 1,528 | $ 20,754 |
LOANS - Average Recorded Invest
LOANS - Average Recorded Investment of Impaired Loans by Class of Loan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Financing Receivable, Impaired [Line Items] | ||||
With no allowance recorded: | $ 25,722 | $ 4,405 | $ 26,789 | $ 3,646 |
With an allowance recorded: | 3,863 | 4,404 | 7,523 | 3,878 |
Total average recorded investment | 29,585 | 8,809 | 34,312 | 7,524 |
Construction and land development | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no allowance recorded: | 224 | 0 | 117 | 384 |
With an allowance recorded: | 0 | 0 | 0 | 91 |
Commercial real estate: | Nonfarm, nonresidential | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no allowance recorded: | 4,736 | 0 | 4,660 | 25 |
With an allowance recorded: | 0 | 0 | 78 | 0 |
Residential real estate: | ||||
Financing Receivable, Impaired [Line Items] | ||||
With an allowance recorded: | 214 | 0 | 213 | 0 |
Residential real estate: | Closed-end 1-4 family | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no allowance recorded: | 1,947 | 681 | 1,603 | 744 |
Residential real estate: | Other | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no allowance recorded: | 2,252 | 1,086 | 2,546 | 1,174 |
Commercial and industrial | ||||
Financing Receivable, Impaired [Line Items] | ||||
With no allowance recorded: | 16,563 | 2,638 | 17,863 | 1,319 |
With an allowance recorded: | $ 3,649 | $ 4,404 | $ 7,232 | $ 3,787 |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | $ 24,433 | $ 27,035 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 654 |
Commercial real estate: | Nonfarm, nonresidential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 5,760 | |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | |
Construction and land development | Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 30 | |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | |
Residential real estate: | Closed-end 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,868 | 954 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 0 |
Residential real estate: | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 1,612 | 1,523 |
Loans Past Due Over 90 Days And Still Accruing Interest | 0 | 0 |
Commercial and industrial | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Nonaccrual | 15,193 | 24,528 |
Loans Past Due Over 90 Days And Still Accruing Interest | $ 0 | $ 654 |
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 | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | $ 14,218 | $ 17,594 |
Aging of recorded investment, loans not Past due | 2,784,007 | 2,798,870 |
Total ending loans balance | 2,798,225 | 2,816,464 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 3,568 | 7,925 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 3,525 | 8,341 |
Greater Than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 7,125 | 1,328 |
Construction and land development | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 1,174 | 538 |
Aging of recorded investment, loans not Past due | 644,107 | 591,003 |
Total ending loans balance | 645,281 | 591,541 |
Construction and land development | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 508 |
Construction and land development | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 1,174 | 0 |
Construction and land development | Greater Than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 30 |
Commercial real estate: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total ending loans balance | 1,017,429 | 993,912 |
Commercial real estate: | Nonfarm, nonresidential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 6,441 | 3,981 |
Aging of recorded investment, loans not Past due | 963,429 | 940,040 |
Total ending loans balance | 969,870 | 944,021 |
Commercial real estate: | 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 | 47,559 | 49,891 |
Total ending loans balance | 47,559 | 49,891 |
Commercial real estate: | 30-59 Days Past Due | Nonfarm, nonresidential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 2,981 | 3,981 |
Commercial real estate: | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 0 |
Commercial real estate: | 60-89 Days Past Due | Nonfarm, nonresidential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 0 |
Commercial real estate: | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 0 |
Commercial real estate: | Greater Than 89 Days Past Due | Nonfarm, nonresidential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 3,460 | 0 |
Commercial real estate: | Greater Than 89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 0 |
Residential real estate: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total ending loans balance | 611,532 | 643,601 |
Residential real estate: | Closed-end 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 1,930 | 2,920 |
Aging of recorded investment, loans not Past due | 422,856 | 453,000 |
Total ending loans balance | 424,786 | 455,920 |
Residential real estate: | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 1,364 | 1,601 |
Aging of recorded investment, loans not Past due | 185,382 | 186,080 |
Total ending loans balance | 186,746 | 187,681 |
Residential real estate: | 30-59 Days Past Due | Closed-end 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 2,688 |
Residential real estate: | 30-59 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 194 | 85 |
Residential real estate: | 60-89 Days Past Due | Closed-end 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 1,930 | 224 |
Residential real estate: | 60-89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 421 | 961 |
Residential real estate: | Greater Than 89 Days Past Due | Closed-end 1-4 family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 8 |
Residential real estate: | Greater Than 89 Days Past Due | Other | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 749 | 555 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 3,309 | 8,554 |
Aging of recorded investment, loans not Past due | 517,104 | 574,087 |
Total ending loans balance | 520,413 | 582,641 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 393 | 663 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 7,156 |
Commercial and industrial | Greater Than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 2,916 | 735 |
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 | 3,570 | 4,769 |
Total ending loans balance | 3,570 | 4,769 |
Consumer and other | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 0 |
Consumer and other | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | 0 | 0 |
Consumer and other | Greater Than 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Aging of recorded investment, total past due | $ 0 | $ 0 |
LOANS - Summary of Risk Categor
LOANS - Summary of Risk Category of Loans by Class of Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Risk Category Of Loans [Line Items] | ||
Loans | $ 2,798,225 | $ 2,816,464 |
Construction and land development | ||
Risk Category Of Loans [Line Items] | ||
Loans | 645,281 | 591,541 |
Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 1,017,429 | 993,912 |
Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 611,532 | 643,601 |
Commercial and industrial | ||
Risk Category Of Loans [Line Items] | ||
Loans | 520,413 | 582,641 |
Consumer and other | ||
Risk Category Of Loans [Line Items] | ||
Loans | 3,570 | 4,769 |
Pass | ||
Risk Category Of Loans [Line Items] | ||
Loans | 2,747,542 | 2,764,188 |
Pass | Construction and land development | ||
Risk Category Of Loans [Line Items] | ||
Loans | 644,946 | 591,293 |
Pass | Commercial and industrial | ||
Risk Category Of Loans [Line Items] | ||
Loans | 488,215 | 539,442 |
Pass | Consumer and other | ||
Risk Category Of Loans [Line Items] | ||
Loans | 3,570 | 4,769 |
Special Mention | ||
Risk Category Of Loans [Line Items] | ||
Loans | 8,336 | 3,013 |
Special Mention | Construction and land development | ||
Risk Category Of Loans [Line Items] | ||
Loans | 0 | 248 |
Special Mention | Commercial and industrial | ||
Risk Category Of Loans [Line Items] | ||
Loans | 597 | 943 |
Special Mention | Consumer and other | ||
Risk Category Of Loans [Line Items] | ||
Loans | 0 | 0 |
Substandard | ||
Risk Category Of Loans [Line Items] | ||
Loans | 42,347 | 49,263 |
Substandard | Construction and land development | ||
Risk Category Of Loans [Line Items] | ||
Loans | 335 | 0 |
Substandard | Commercial and industrial | ||
Risk Category Of Loans [Line Items] | ||
Loans | 31,601 | 42,256 |
Substandard | Consumer and other | ||
Risk Category Of Loans [Line Items] | ||
Loans | 0 | 0 |
Nonfarm, nonresidential | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 969,870 | 944,021 |
Nonfarm, nonresidential | Pass | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 958,145 | 941,260 |
Nonfarm, nonresidential | Special Mention | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 6,974 | 997 |
Nonfarm, nonresidential | Substandard | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 4,751 | 1,764 |
Other | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 47,559 | 49,891 |
Other | Pass | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 47,559 | 49,891 |
Other | Special Mention | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 0 | 0 |
Other | Substandard | Commercial real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 0 | 0 |
Closed-end 1-4 family | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 424,786 | 455,920 |
Closed-end 1-4 family | Pass | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 422,128 | 452,363 |
Closed-end 1-4 family | Special Mention | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 765 | 825 |
Closed-end 1-4 family | Substandard | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 1,893 | 2,732 |
Other | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 186,746 | 187,681 |
Other | Pass | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 182,979 | 185,170 |
Other | Special Mention | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | 0 | 0 |
Other | Substandard | Residential real estate: | ||
Risk Category Of Loans [Line Items] | ||
Loans | $ 3,767 | $ 2,511 |
LOANS - Schedule of Loan Deferr
LOANS - Schedule of Loan Deferrals (Details) - Payment Deferral - CARES Act $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 730,696 |
% of loans HFI | 26.20% |
Construction and land development | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 75,801 |
% of loans HFI | 2.70% |
Commercial real estate: | Nonfarm, nonresidential | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 471,210 |
% of loans HFI | 16.90% |
Commercial real estate: | Other | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 23,806 |
% of loans HFI | 0.90% |
Residential real estate: | Closed-end 1-4 family | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 37,917 |
% of loans HFI | 1.40% |
Residential real estate: | Other | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 7,348 |
% of loans HFI | 0.30% |
Commercial and industrial | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 114,595 |
% of loans HFI | 4.10% |
Consumer and other | |
Schedule Of Loan Deferrals [Line Items] | |
Deferred Loan Total | $ 19 |
% of loans HFI | 0.00% |
LOAN SERVICING - Schedule of Lo
LOAN SERVICING - Schedule of Loans Serviced Not Reported as Assets (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Federal Home Loan Mortgage Corporation | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | $ 591,181 | $ 488,790 |
Federal National Mortgage Association | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | 58,292 | 10,221 |
Other | ||
Loans Servicing For Institutional Investors [Line Items] | ||
Loans serviced for others | $ 3,403 | $ 3,504 |
LOAN SERVICING - Related Loan S
LOAN SERVICING - Related Loan Servicing Rights Activity (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Mortgage Servicing Roll Forward [Roll Forward] | ||||
Beginning of period | $ 3,057 | $ 3,366 | $ 3,246 | $ 3,403 |
Additions | 1,724 | 196 | 2,118 | 383 |
Amortized to expense | (655) | (263) | (1,013) | (487) |
Change in impairment | (91) | 0 | (316) | 0 |
End of period | $ 4,035 | $ 3,299 | $ 4,035 | $ 3,299 |
LOAN SERVICING - Components of
LOAN SERVICING - Components of Net Loan Servicing Fees (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Transfers and Servicing [Abstract] | ||||
Loan servicing fees | $ 332 | $ 312 | $ 654 | $ 618 |
Amortization of loan servicing fees | (655) | (263) | (1,013) | (487) |
Change in impairment | (91) | 0 | (316) | 0 |
Total | $ (414) | $ 49 | $ (675) | $ 131 |
LOAN SERVICING - Narrative (Det
LOAN SERVICING - Narrative (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | ||
Servicing rights, net | $ 4,035 | $ 3,922 |
Weighted average discount rate | 9.50% | 9.50% |
Weighted average prepayment speed | 21.40% | 16.80% |
LEASES - Additional Information
LEASES - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | |
May 31, 2020 | Feb. 05, 2020 | |
Leases [Abstract] | ||
Extinguisment of right-of-use asset | $ 2,751 | $ 19,000 |
Extinguishment of lease liability | 2,903 | $ 20,000 |
Right-of-use asset lease addition | 1,627 | |
Liability, lease addition | $ 1,618 |
LEASES - Summary of Consolidate
LEASES - Summary of Consolidated Statements of Condition Classification of ROU Assets And Lease Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Lease right-of-use assets | ||
Operating lease right-of-use assets | $ 19,175 | $ 39,594 |
Finance lease right-of-use assets | 1,611 | 2,819 |
Total lease right-of-use assets | 20,786 | 42,413 |
Lease liabilities | ||
Operating lease liabilities | 20,130 | 41,308 |
Finance lease liabilities | 1,615 | 2,942 |
Total lease liabilities | $ 21,745 | $ 44,250 |
SHARE-BASED PAYMENTS - Narrativ
SHARE-BASED PAYMENTS - Narrative (Detail) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)plan$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | 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 | $ 1,442 | $ 1,513 | $ 2,954 | $ 2,842 | |
Excess tax benefit related to vesting of restricted stock and exercise of stock options | $ (210) | 92 | $ 3 | $ 205 | |
Granted (in shares) | shares | 0 | ||||
Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options contractual term | 10 years | ||||
Granted (in shares) | shares | 0 | ||||
Stock Option | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of shares | 3 years | ||||
Stock Option | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of shares | 5 years | ||||
Stock Option | Amended and Restated 2017 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | shares | 3,500,000 | ||||
Number of shares authorized for issuance (in shares) | shares | 2,410,666 | 2,410,666 | |||
Stock Option | Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (in shares) | shares | 4,000,000 | 4,000,000 | |||
Weighted average fair value of options (in dollars per share) | $ / shares | $ 0 | $ 9.78 | |||
Unrecognized compensation cost, nonvested stock options | $ 2,271 | $ 2,271 | |||
Unrecognized compensation cost, period of recognition | 1 year 2 months 1 day | ||||
Restricted Stock | 2007 Omnibus Equity Incentive Plan and Amended and Restated 2017 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, nonvested stock options | 387 | $ 387 | |||
Unrecognized compensation cost, period of recognition | 1 year | ||||
Restricted Stock Units | 2007 Omnibus Equity Incentive Plan and Amended and Restated 2017 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost, nonvested stock options | 7,222 | 3,814 | $ 7,222 | $ 3,814 | |
Unrecognized compensation cost, period of recognition | 1 year 11 months 26 days | ||||
Restricted Stock Units | 2017 Omnibus Equity Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation cost charged against income | $ 717 | $ 483 | $ 1,399 | $ 579 |
SHARE-BASED PAYMENTS - Fair Val
SHARE-BASED PAYMENTS - Fair Value Assumptions of Stock Options (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Risk-free interest rate | 2.47% |
Expected term | 7 years |
Expected stock price volatility | 30.64% |
Dividend yield | 0.57% |
SHARE-BASED PAYMENTS - Summary
SHARE-BASED PAYMENTS - Summary of Company's Stock Options Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020 | |
Shares | |
Granted (in shares) | 0 |
2007 and 2017 Omnibus Equity Incentive Plan | |
Shares | |
Outstanding at beginning of the period (in shares) | 1,502,070 |
Granted (in shares) | 0 |
Exercised (in shares) | (76,489) |
Forfeited, expired, or cancelled (in shares) | (19,252) |
Outstanding at end of the period (in shares) | 1,406,329 |
Vested or expected to vest (in shares) | 1,336,013 |
Exercisable at period end (in shares) | 601,711 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (in dollars per share) | $ 22.39 |
Granted (in dollars per share) | 0 |
Exercised (in dollars per share) | 11.33 |
Exercise Price, Forfeited, expired, or cancelled (in dollars per share) | 21.26 |
Outstanding at end of period (in dollars per share) | 17.54 |
Vested or expected to vest (in dollars per share) | 26.54 |
Exercisable at period end (in dollars per share) | $ 17.49 |
Weighted Average Remaining Contractual Term | |
Outstanding | 6 years 1 month 6 days |
Vested or expected to vest | 5 years 9 months 3 days |
Exercisable at period end | 5 years 9 months 3 days |
Aggregate Intrinsic Value | |
Outstanding | $ 4,993 |
Vested or expected to vest | 4,743 |
Exercisable at period end | $ 4,972 |
SHARE-BASED PAYMENTS - Summar_2
SHARE-BASED PAYMENTS - Summary of Stock Options Exercised (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stock options exercised: | ||
Cash received from options exercised | $ 866 | $ 1,277 |
Stock Option | 2007 and 2017 Omnibus Equity Incentive Plan | ||
Stock options exercised: | ||
Intrinsic value of options exercised | 1,399 | 1,869 |
Cash received from options exercised | 866 | 1,277 |
Tax benefit realized from option exercises | $ 212 | $ 205 |
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 | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Shares | |
Beginning balance, non-vested (in shares) | 90,992 |
Granted (in shares) | 0 |
Vested (in shares) | (48,599) |
Forfeited (in shares) | (180) |
Ending balance, non-vested (in shares) | 42,213 |
Weighted- Average Grant- Date Fair Value | |
Beginning balance, non-vested (in dollars per share) | $ / shares | $ 32.54 |
Granted (in dollars per share) | $ / shares | 0 |
Vested (in dollars per share) | $ / shares | 32.10 |
Forfeited (in dollars per share) | $ / shares | $ 31.75 |
Share-Based Payments - Summar_4
Share-Based Payments - Summary of Outstanding Restricted Stock Units (Detail) - Restricted Stock Units - Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2020shares | |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Awarded (in shares) | 2,870 |
Service period in years | 5 years |
2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Awarded (in shares) | 109,373 |
Service period in years | 3 years |
2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units Awarded (in shares) | 118,725 |
Service period in years | 3 years |
REGULATORY CAPITAL MATTERS - Ac
REGULATORY CAPITAL MATTERS - Actual and Required Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Amount | ||
Company common equity Tier 1 capital to RWA | $ 399,384 | $ 388,199 |
Company Total Capital to RWA | 496,529 | 487,966 |
Company Tier 1 (Core) Capital to RWA | 399,384 | 388,199 |
Company Tier 1 Leverage Ratio | 399,384 | 388,199 |
Company common equity Tier 1 capital to RWA | 143,700 | 146,711 |
Company Total Capital to RWA | 255,466 | 260,819 |
Company Tier 1 (Core) Capital to RWA | 191,599 | 195,614 |
Company Tier 1 Leverage Ratio | $ 153,401 | $ 151,456 |
Ratio | ||
Company common equity Tier 1 capital to RWA | 12.50% | 11.90% |
Company Total Capital to RWA | 15.50% | 15.00% |
Company Tier 1 (Core) Capital to RWA | 12.50% | 11.90% |
Company Tier 1 Leverage Ratio | 10.40% | 10.30% |
Company common equity Tier 1 capital to RWA | 4.50% | 4.50% |
Company Total Capital to RWA | 8.00% | 8.00% |
Company Tier 1 (Core) Capital to RWA | 6.00% | 6.00% |
Company Tier 1 Leverage Ratio | 4.00% | 4.00% |
Bank | ||
Amount | ||
Company common equity Tier 1 capital to RWA | $ 453,654 | $ 441,348 |
Company Total Capital to RWA | 491,846 | 482,183 |
Company Tier 1 (Core) Capital to RWA | 453,654 | 441,348 |
Company Tier 1 Leverage Ratio | 453,654 | 441,348 |
Company common equity Tier 1 capital to RWA | 143,586 | 146,491 |
Company Total Capital to RWA | 255,265 | 260,429 |
Company Tier 1 (Core) Capital to RWA | 191,449 | 195,322 |
Company Tier 1 Leverage Ratio | 153,114 | 151,255 |
Bank common equity Tier 1 capital to RWA | 207,403 | 211,599 |
Bank Total Capital to RWA | 319,081 | 325,536 |
Bank Tier 1 (Core) Capital to RWA | 255,265 | 260,429 |
Bank Tier 1 Leverage Ratio | $ 191,392 | $ 189,069 |
Ratio | ||
Company common equity Tier 1 capital to RWA | 14.20% | 13.60% |
Company Total Capital to RWA | 15.40% | 14.80% |
Company Tier 1 (Core) Capital to RWA | 14.20% | 13.60% |
Company Tier 1 Leverage Ratio | 11.80% | 11.70% |
Company common equity Tier 1 capital to RWA | 4.50% | 4.50% |
Company Total Capital to RWA | 8.00% | 8.00% |
Company Tier 1 (Core) Capital to RWA | 6.00% | 6.00% |
Company Tier 1 Leverage Ratio | 4.00% | 4.00% |
Bank common equity Tier 1 capital to RWA | 6.50% | 6.50% |
Bank Total Capital to RWA | 10.00% | 10.00% |
Bank Tier 1 (Core) Capital to RWA | 8.00% | 8.00% |
Bank Tier 1 Leverage Ratio | 5.00% | 5.00% |
DERIVATIVE INSTRUMENTS - Narrat
DERIVATIVE INSTRUMENTS - Narrative (Detail) - Fair Value Hedge - Interest Rate Swap Aagreements - Securities | Jun. 30, 2020USD ($) | Dec. 31, 2019instrument |
Derivative [Line Items] | ||
Number of instruments held | instrument | 16 | |
Derivative liability, notional amount | $ | $ 101,205,000 |
DERIVATIVE INSTRUMENTS - Schedu
DERIVATIVE INSTRUMENTS - Schedule of Fair Value Hedge Relationships (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Hedge | ||
Derivative [Line Items] | ||
Weighted Average Remaining Maturity (In Years) | 6 years 6 months 18 days | |
Weighted Average Pay Rate | 2.527% | |
Notional Amount | $ 101,205,000 | $ 101,205,000 |
Estimated Fair Value | $ 14,068,000 | 4,954,000 |
Cash Flow Hedge | ||
Derivative [Line Items] | ||
Weighted Average Remaining Maturity (In Years) | 2 years 1 month 6 days | |
Weighted Average Pay Rate | 2.232% | |
Notional Amount | $ 100,000,000 | 100,000,000 |
Estimated Fair Value | $ 3,741,000 | $ 1,592,000 |
DERIVATIVE INSTRUMENTS - Sche_2
DERIVATIVE INSTRUMENTS - Schedule of Effects of Fair Value Hedge Relationships Reported in Interest Income on Securities on Consolidated Statements of Income (Detail) - Interest Rate Swap Aagreements - Securities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on fair value hedging relationship - Hedged items | $ 706 | $ 3,615 | $ 9,114 | $ 4,733 |
Gain (loss) on fair value hedging relationship - Derivative designated as hedging instrument | $ (706) | $ (3,615) | $ (9,114) | $ (4,733) |
DERIVATIVE INSTRUMENTS - Sche_3
DERIVATIVE INSTRUMENTS - Schedule of Amounts Related to Cumulative Basis Adjustments for Fair Value Hedges (Detail) - Available For Sale Securities - Fair Value Hedge - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Assets (in thousands) | $ 101,205 | $ 101,205 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ 9,114 | $ 4,954 |
DERIVATIVE INSTRUMENTS - Sche_4
DERIVATIVE INSTRUMENTS - Schedule of Effects of Cash Flow Hedge Relationships on Statements of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized holding gain (losses) arising during the period | $ 192 | $ (1,667) | $ (2,149) | $ (1,667) |
Interest Rate Swap Aagreements | Cash Flow Hedge | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized holding gain (losses) arising during the period | $ 142 | $ (1,231) | $ (1,587) | $ (1,231) |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | $ 89,642 | $ 89,040 |
Variable Rate | 637,394 | 701,326 |
Total | 727,036 | 790,366 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 6,865 | 7,119 |
Variable Rate | 44,326 | 48,750 |
Total | 51,191 | 55,869 |
Mortgage loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fixed Rate | 136,235 | 48,999 |
Variable Rate | 0 | 0 |
Total | $ 136,235 | $ 48,999 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Long-term Purchase Commitment [Line Items] | ||
Term of commitments to lend | 365 days | |
Unused lines of credit | ||
Long-term Purchase Commitment [Line Items] | ||
Loan commitments | $ 727,036 | $ 790,366 |
Loan commitments, available without further approval | $ 294,290 | |
Loan commitments, portion available without approval, percent | 40.50% | |
Minimum | ||
Long-term Purchase Commitment [Line Items] | ||
Interest rate of loan commitments | 0.00% | |
Maturity period of loan commitments | 1 year | |
Maximum | ||
Long-term Purchase Commitment [Line Items] | ||
Interest rate of loan commitments | 12.00% | |
Maturity period of loan commitments | 25 years |
FAIR VALUE - Narrative (Detail)
FAIR VALUE - Narrative (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | |
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||
Net (loss) gain on sale of loans held for investment | $ (372,000) | $ 3,000 | $ (788,000) | $ (214,000) | ||
Foreclosed assets | 0 | 0 | $ 0 | |||
Loans Held for Sale | ||||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||
Unpaid principal balance of loans held for sale | $ 58,674,000 | 58,674,000 | $ 42,152,000 | |||
Net (loss) gain on sale of loans held for investment | $ 2,468,000 | $ 1,010,000 | ||||
Minimum | Loans Held for Sale | ||||||
Fair Value Measurements Of Financial Instruments [Line Items] | ||||||
Term of loan | 90 days | 90 days |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | $ 503,877 | $ 652,132 |
Loans held for sale, at fair value | 61,142 | 43,162 |
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 |
Loans held for sale, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative 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 | 503,877 | 652,132 |
Loans held for sale, at fair value | 61,142 | 43,162 |
Derivative assets | 2,269 | 225 |
Derivative liabilities | 18,269 | 6,619 |
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, at fair value | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Mortgage-backed securities: residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 257,637 | 375,943 |
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 | 257,637 | 375,943 |
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 | 15,592 | 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 | |
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 | 15,592 | |
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 | |
Asset-backed 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 | 0 | |
Asset-backed 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 | 17,780 | |
Asset-backed 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 | |
Corporate notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Securities available for sale | 2,592 | 33,361 |
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 | 2,592 | 33,361 |
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 | 228,056 | 225,048 |
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 | 228,056 | 225,048 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded: | $ 2,544 | $ 25,160 |
Servicing rights, net | 4,035 | 3,922 |
Allowance for Loan Losses Allocated | 1,528 | 20,771 |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights, net | 4,035 | |
Total | 5,051 | 4,389 |
Total losses for the period ended | 5,469 | 0 |
Allowance for Loan Losses Allocated | 6,760 | 20,771 |
Fair Value, Nonrecurring | Servicing Rights, Net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total losses for the period ended | 316 | |
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 | ||
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: | 2,544 | 24,517 |
Allowance for Loan Losses Allocated | 1,528 | 20,754 |
Commercial and industrial | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded: | 1,016 | 3,763 |
Total losses for the period ended | 5,153 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights, net | 0 | |
Total | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate: | Closed-end 1-4 family | Fair Value, Nonrecurring | ||
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 | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights, net | 0 | |
Total | 0 | 3,650 |
Significant Other Observable Inputs (Level 2) | Residential real estate: | Closed-end 1-4 family | Fair Value, Nonrecurring | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded: | 0 | 3,650 |
Significant Unobservable Inputs (Level 3) | Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Servicing rights, net | 4,035 | |
Total | 5,051 | 739 |
Significant Unobservable Inputs (Level 3) | Residential real estate: | Closed-end 1-4 family | Fair Value, Nonrecurring | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
With an allowance recorded: | $ 1,016 | $ 113 |
Fair Value - Carrying Amount an
Fair Value - Carrying Amount and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Securities available for sale | $ 503,877 | $ 652,132 |
Loans held for sale, at fair value | 61,142 | 43,162 |
Carrying Amount | ||
Financial assets | ||
Cash and cash equivalents | 236,775 | 234,991 |
Certificates of deposit held at other financial institutions | 3,506 | 3,590 |
Securities available for sale | 503,877 | 652,132 |
Loans held for sale, at fair value | 61,142 | 43,162 |
Net loans | 2,756,668 | 2,767,008 |
Other assets | 2,269 | 225 |
Accrued interest receivable | 18,576 | 12,362 |
Financial liabilities | ||
Deposits | 3,143,259 | 3,207,584 |
Federal Home Loan Bank advances | 100,000 | 155,000 |
Subordinated notes, net | 58,961 | 58,872 |
Other liabilities | 18,269 | 6,619 |
Accrued interest payable | 2,711 | 4,201 |
Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 236,775 | 234,991 |
Certificates of deposit held at other financial institutions | 3,506 | 3,590 |
Securities available for sale | 503,877 | 652,132 |
Loans held for sale, at fair value | 61,142 | 43,162 |
Net loans | 2,713,013 | 2,753,761 |
Other assets | 2,269 | 225 |
Accrued interest receivable | 18,576 | 12,362 |
Financial liabilities | ||
Deposits | 3,149,263 | 3,208,211 |
Federal Home Loan Bank advances | 99,971 | 155,090 |
Subordinated notes, net | 60,461 | 60,922 |
Other liabilities | 18,269 | 6,619 |
Accrued interest payable | 2,711 | 4,201 |
Level 1 | Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 236,775 | 234,991 |
Certificates of deposit held at other financial institutions | 0 | 0 |
Securities available for sale | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Net loans | 0 | 0 |
Other assets | 0 | 0 |
Accrued interest receivable | 15 | 96 |
Financial liabilities | ||
Deposits | 2,646,541 | 2,458,555 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated notes, net | 0 | 0 |
Other liabilities | 0 | 0 |
Accrued interest payable | 71 | 154 |
Level 2 | Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit held at other financial institutions | 3,506 | 3,590 |
Securities available for sale | 503,877 | 652,132 |
Loans held for sale, at fair value | 61,142 | 43,162 |
Net loans | 0 | 0 |
Other assets | 2,269 | 225 |
Accrued interest receivable | 3,208 | 3,775 |
Financial liabilities | ||
Deposits | 502,722 | 749,656 |
Federal Home Loan Bank advances | 99,971 | 155,090 |
Subordinated notes, net | 0 | 0 |
Other liabilities | 18,269 | 6,619 |
Accrued interest payable | 1,953 | 687 |
Level 3 | Fair Value | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Certificates of deposit held at other financial institutions | 0 | 0 |
Securities available for sale | 0 | 0 |
Loans held for sale, at fair value | 0 | 0 |
Net loans | 2,713,013 | 2,753,761 |
Other assets | 0 | 0 |
Accrued interest receivable | 15,353 | 8,491 |
Financial liabilities | ||
Deposits | 0 | 0 |
Federal Home Loan Bank advances | 0 | 0 |
Subordinated notes, net | 60,461 | 60,922 |
Other liabilities | 0 | 0 |
Accrued interest payable | $ 687 | $ 3,360 |
EARNINGS PER SHARE - Computatio
EARNINGS PER SHARE - Computation of Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic | |||||
Net income available to common shareholders | $ 10,174 | $ 10,174 | $ 5,173 | $ 9,026 | $ 8,075 |
Less: earnings allocated to participating securities | (34) | (41) | (43) | (79) | |
Net income allocated to common shareholders | $ 10,140 | $ 10,140 | $ 5,132 | $ 8,983 | $ 7,996 |
Weighted average common shares outstanding including participating securities (in shares) | 14,915,317 | 14,599,407 | 14,882,426 | 14,580,370 | |
Less: Participating securities (in shares) | (50,523) | (117,063) | (70,549) | (143,043) | |
Average shares (in shares) | 14,864,794 | 14,864,794 | 14,482,344 | 14,811,877 | 14,437,327 |
Basic earnings per common share (in dollars per share) | $ 0.68 | $ 0.68 | $ 0.35 | $ 0.61 | $ 0.55 |
Diluted | |||||
Net income allocated to common shareholders | $ 10,140 | $ 10,140 | $ 5,132 | $ 8,983 | $ 7,996 |
Weighted average common shares outstanding for basic earnings per common share (in shares) | 14,864,794 | 14,864,794 | 14,482,344 | 14,811,877 | 14,437,327 |
Average shares and dilutive potential common shares (in shares) | 15,271,414 | 14,894,140 | 15,274,242 | 14,849,292 | |
Dilutive earnings per common share (in dollars per share) | $ 0.66 | $ 0.34 | $ 0.59 | $ 0.54 | |
Stock Option | |||||
Diluted | |||||
Add: Dilutive effects of assumed exercises of stock options and restricted stock units (in shares) | 175,652 | 341,777 | 241,835 | 376,762 | |
Restricted Stock Units | |||||
Diluted | |||||
Add: Dilutive effects of assumed exercises of stock options and restricted stock units (in shares) | 230,968 | 70,019 | 220,530 | 35,203 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Line Items] | ||||
Stock options to purchase shares of the Company's common stock (in shares) | 823,528 | 874,279 | ||
Stock Option | ||||
Earnings Per Share [Line Items] | ||||
Stock options to purchase shares of the Company's common stock (in shares) | 966,571 | 980,099 |
SUBORDINATED DEBT ISSUANCE - Na
SUBORDINATED DEBT ISSUANCE - Narrative (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||||
Subordinated notes, net of issuance costs | $ 58,961,000 | $ 58,872,000 | |||||
Notes, aggregate principal amount | $ 20,000,000 | $ 40,000,000 | |||||
Notes, interest rate | 7.00% | 6.875% | |||||
Amortization of debt issuance costs | 89,000 | $ 89,000 | |||||
Subordinated Debt | |||||||
Debt Instrument [Line Items] | |||||||
Notes, aggregate principal amount | 60,000,000 | ||||||
Subordinated Debt | March 2016 Subordinated Notes | |||||||
Debt Instrument [Line Items] | |||||||
Notes, aggregate principal amount | $ 40,000,000 | ||||||
Notes, interest rate | 6.875% | ||||||
Notes, issuance cost | $ 1,382,000 | ||||||
Term of notes | 5 years | 10 years | |||||
Subordinated Debt | June 2016 Subordinated Notes | |||||||
Debt Instrument [Line Items] | |||||||
Notes, aggregate principal amount | $ 20,000,000 | ||||||
Notes, interest rate | 7.00% | ||||||
Notes, issuance cost | $ 404,000 | ||||||
Term of notes | 5 years | 10 years |
SUBORDINATED DEBT ISSUANCE - Su
SUBORDINATED DEBT ISSUANCE - Summary of Terms of Each Subordinated Note offering (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2020 | Mar. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | |||||
Principal amount issued | $ 20,000,000 | $ 40,000,000 | |||
Initial fixed interest rate | 7.00% | 6.875% | |||
March 2016 Subordinated Notes | LIBOR | |||||
Debt Instrument [Line Items] | |||||
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 | 10 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 | 10 years | |||
Subordinated Debt | June 2016 Subordinated Notes | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 6.04% |