Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 06, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ATLANTIC CAPITAL BANCSHARES, INC. | |
Entity Central Index Key | 1,461,755 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 24,338,945 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and due from banks | $ 45,971 | $ 36,490 |
Interest-bearing deposits in banks | 90,695 | 12,137 |
Other short-term investments | 24,135 | 45,623 |
Cash and cash equivalents | 160,801 | 94,250 |
Securities available-for-sale | 127,168 | 133,437 |
Stock in Federal Home Loan Bank, at cost | 3,011 | 3,653 |
Loans | 1,046,437 | 1,039,713 |
Less allowance for loan losses | (11,862) | (11,421) |
Loans, net | 1,034,575 | 1,028,292 |
Premises and equipment, net | 3,138 | 3,612 |
Bank owned life insurance | 30,479 | 30,571 |
Intangible assets, net | 1,259 | 782 |
Other real estate owned | 27 | 1,531 |
Other assets | 21,240 | 18,731 |
Total assets | 1,381,698 | 1,314,859 |
Deposits: | ||
Noninterest-bearing demand | 328,065 | 320,346 |
Interest-bearing checking | 135,350 | 91,709 |
Savings | 321 | 304 |
Money market | 550,879 | 572,658 |
Time | 15,434 | 16,129 |
Brokered deposits | 98,559 | 104,699 |
Total deposits | 1,128,608 | 1,105,845 |
Federal Home Loan Bank borrowings | 43,000 | 56,517 |
Long-term debt | 49,226 | 0 |
Other liabilities | 11,055 | 11,568 |
Total liabilities | 1,231,889 | 1,173,930 |
SHAREHOLDERS’ EQUITY | ||
Common stock, no par value – 100,000,000 shares authorized; 13,661,967 and 13,497,118 shares issued as of September 30, 2015, and December 31, 2014, respectively | 138,123 | 136,335 |
Retained earnings | 11,302 | 4,460 |
Accumulated other comprehensive income | 1,566 | 609 |
Treasury stock, 99,842 shares at cost at September 30, 2015 and 43,298 shares at December 31, 2014 | (1,182) | (475) |
Total shareholders’ equity | 149,809 | 140,929 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 1,381,698 | $ 1,314,859 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 13,661,967 | 13,497,118 |
Treasury stock (in shares) | 99,842 | 43,298 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
INTEREST INCOME | ||||
Loans, including fees | $ 9,423 | $ 8,930 | $ 27,874 | $ 23,784 |
Investment Securities – available for sale | 664 | 782 | 2,077 | 2,394 |
Interest and dividends on other interest-earning assets | 247 | 141 | 776 | 486 |
Total interest income | 10,334 | 9,853 | 30,727 | 26,664 |
INTEREST EXPENSE | ||||
Interest on deposits | 751 | 705 | 2,262 | 2,133 |
Interest on Federal Home Loan Bank advances | 52 | 120 | 283 | 328 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 20 | 50 | 69 | 97 |
Interest on long-term debt | 17 | 0 | 17 | 0 |
Total interest expense | 840 | 875 | 2,631 | 2,558 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 9,494 | 8,978 | 28,096 | 24,106 |
Provision for Loan Losses | (137) | 638 | 412 | 469 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 9,631 | 8,340 | 27,684 | 23,637 |
NONINTEREST INCOME | ||||
Service charges | 521 | 317 | 1,348 | 834 |
Gain on sales of securities available-for-sale | 10 | 0 | 10 | 44 |
Derivatives income | 67 | 18 | 215 | 62 |
Bank-owned life insurance income | 227 | 240 | 1,794 | 691 |
SBA lending activities | 745 | 597 | 2,006 | 1,692 |
Other noninterest income | 159 | 149 | 566 | 517 |
Total noninterest income | 1,729 | 1,321 | 5,939 | 3,840 |
NONINTEREST EXPENSE | ||||
Salaries and Employee Benefits | 4,859 | 4,555 | 14,437 | 13,666 |
Occupancy | 419 | 417 | 1,263 | 1,301 |
Equipment and software | 243 | 231 | 687 | 686 |
Professional Fees | 208 | 250 | 613 | 756 |
Postage, printing and supplies | 21 | 26 | 63 | 66 |
Communications and data processing | 313 | 310 | 986 | 917 |
Marketing and business development | 90 | 120 | 213 | 246 |
Federal Deposit Insurance Corporation Premium Expense | 161 | 158 | 516 | 446 |
Merger and conversion costs | 718 | 0 | 1,982 | 0 |
Other noninterest expense | 639 | 586 | 1,934 | 1,315 |
Total noninterest expense | 7,671 | 6,653 | 22,694 | 19,399 |
INCOME BEFORE PROVISION FOR INCOME TAXES | 3,689 | 3,008 | 10,929 | 8,078 |
Provision for income taxes | 1,463 | 1,022 | 4,087 | 2,713 |
NET INCOME | $ 2,226 | $ 1,986 | $ 6,842 | $ 5,365 |
NET INCOME PER SHARE: | ||||
Net Income Per Share – Basic (in dollars per share) | $ 0.16 | $ 0.15 | $ 0.51 | $ 0.40 |
Net Income Per Share – Diluted (in dollars per share) | $ 0.16 | $ 0.15 | $ 0.49 | $ 0.39 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,226 | $ 1,986 | $ 6,842 | $ 5,365 |
Unrealized gains (losses) on available-for-sale securities: | ||||
Unrealized holding gains (losses) arising during the period, net of tax of $244, $(232), $91 and $719, respectively | 392 | (388) | 147 | 1,196 |
Reclassification adjustment for net realized gains on investment securities available-for-sale | (6) | 0 | (6) | (27) |
Unrealized gains (losses) on available-for-sale securities, net of tax | 386 | (388) | 141 | 1,169 |
Cash flow hedges: | ||||
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of $324, $(43), $507 and $(43), respectively | 523 | (72) | 816 | (72) |
Changes from cash flow hedges | 523 | (72) | 816 | (72) |
Other comprehensive income, net of tax | 909 | (460) | 957 | 1,097 |
Comprehensive income | $ 3,135 | $ 1,526 | $ 7,799 | $ 6,462 |
Consolidated Statement of Comp6
Consolidated Statement of Comprehensive Income (Loss) - Parenthetical - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gain (loss) on securities arising during period, tax expense (benefit) | $ 244 | $ (232) | $ 91 | $ 719 |
Reclassification adjustment for gains, tax expense (benefit) | 4 | 0 | 4 | 17 |
Unrealized gain (loss) on derivatives arising during period, tax expense (benefit) | $ 324 | $ (43) | $ 507 | $ (43) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Retained Earnings/(Accumulated Deficit) | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
Beginning balance (in shares) at Dec. 31, 2013 | 13,437,505,000 | ||||
Beginning balance at Dec. 31, 2013 | $ 131,235 | $ 135,671 | $ (3,056) | $ (1,266) | $ (114) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 5,365 | 5,365 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 1,169 | 1,169 | |||
Change in unrealized gains (losses) on cash flow hedges | (72) | (72) | |||
Comprehensive income | 6,462 | ||||
Acquisition of treasury stock | (361) | (361) | |||
Issuance of restricted stock (in shares) | 59,613,000 | ||||
Issuance of restricted stock | 0 | $ 0 | |||
Amortization of restricted stock | 441 | 441 | |||
Stock-based compensation | 21 | 21 | |||
Ending balance at Sep. 30, 2014 | $ 137,798 | $ 136,133 | 2,309 | (169) | (475) |
Ending balance (in shares) at Sep. 30, 2014 | 13,497,118,000 | ||||
Beginning balance (in shares) at Dec. 31, 2014 | 13,453,820 | 13,497,118,000 | |||
Beginning balance at Dec. 31, 2014 | $ 140,929 | $ 136,335 | 4,460 | 609 | (475) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,842 | 6,842 | |||
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax | 141 | 141 | |||
Change in unrealized gains (losses) on cash flow hedges | 816 | 816 | |||
Comprehensive income | 7,799 | ||||
Acquisition of treasury stock | (707) | (707) | |||
Issuance of restricted stock (in shares) | 62,091,000 | ||||
Issuance of restricted stock | 0 | $ 0 | |||
Issuance of common stock (in shares) | 102,758,000 | ||||
Issuance of common stock | 1,285 | $ 1,285 | |||
Amortization of restricted stock | 503 | 503 | |||
Stock-based compensation | 0 | ||||
Ending balance at Sep. 30, 2015 | $ 149,809 | $ 138,123 | $ 11,302 | $ 1,566 | $ (1,182) |
Ending balance (in shares) at Sep. 30, 2015 | 13,562,125 | 13,661,967,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 6,842 | $ 5,365 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for Loan Losses | 412 | 469 |
Depreciation, amortization, and accretion | 1,462 | 1,542 |
Amortization of restricted stock compensation | 503 | 441 |
Stock option compensation | 0 | 21 |
Gain on sales of available-for-sale securities | (10) | (44) |
Net loss (gains) on sales of other real estate owned | (86) | 0 |
Net increase in cash value of bank owned life insurance | (682) | (691) |
Gain on bank owned life insurance | (1,794) | (691) |
Changes in operating assets and liabilities - | ||
Net decrease (increase) in other assets | (3,031) | (904) |
Net (decrease) increase in accrued expenses and other liabilities | 772 | (535) |
Net cash provided by operating activities | 5,070 | 5,664 |
Activity in securities available-for-sale: | ||
Prepayments | 18,077 | 12,489 |
Maturities and calls | 5,874 | 0 |
Sales | 5,095 | 3,411 |
Purchases | (23,285) | (12,366) |
Net increase in loans held for investment | (6,695) | (193,900) |
Purchases/proceeds of Federal Home Loan Bank Stock, net | 642 | (3,524) |
(Purchases) of bank owned life insurance | 0 | (4,000) |
Proceeds from bank owned life insurance benefits | 1,886 | 0 |
Proceeds from sales of other real estate | 1,590 | 0 |
Purchases of premises and equipment, net | (242) | (258) |
Net cash provided by (used in) investing activities | 2,942 | (198,148) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in deposits | 22,763 | (42,433) |
Net change in short-term borrowings | 0 | 20,000 |
Proceeds from Federal Home Loan Bank Advances | 638,000 | 507,000 |
Repayments of Federal Home Loan Bank Advances | (651,517) | (421,238) |
Issuance of subordinated debentures | 50,000 | 0 |
Acquisitions of treasury stock | (707) | (361) |
Net cash provided by financing activities | 58,539 | 62,968 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 66,551 | (129,516) |
CASH AND CASH EQUIVALENTS – beginning of period | 94,250 | 225,158 |
CASH AND CASH EQUIVALENTS - end of period | 160,801 | 95,642 |
SUPPLEMENTAL SCHEDULE OF CASH FLOWS | ||
Interest paid | 2,652 | 2,556 |
Income taxes paid | 3,769 | 2,401 |
Bank Owned Life Insurance Income, Gain | $ 1,112 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies and Basis of Presentation | ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital”) and its subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. On October 31, 2015, Atlantic Capital completed its acquisition of First Security Group, Inc. and its subsidiary FSGBank, N.A. (together, “First Security”). In connection with the acquisition, Atlantic Capital’s subsidiary Atlantic Capital Bank, a Georgia chartered commercial bank merged with and into FSGBank, N.A, which subsequently changed its name to Atlantic Capital Bank, National Association. The consolidated financial statements reflect the results of operations of Atlantic Capital and Atlantic Capital Bank (the "Bank"), and do not include the results of operations of First Security. In connection with the acquisition, Atlantic Capital will issue approximately 8,790,193 shares of common stock as partial consideration to former shareholders of First Security, with the remaining consideration consisting of approximately $47.1 million in cash. See Note 14 to the Unaudited Financial Statements for additional information. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Atlantic Capital’s filing on Form S-4 which included the years ended December 31, 2014 and 2013. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. Certain prior period amounts have been reclassified to conform to the current year presentation. |
Accounting Standards Updates an
Accounting Standards Updates and Recently Adopted Standards | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Updates and Recently Adopted Standards | ACCOUNTING STANDARDS UPDATES AND RECENTLY ADOPTED STANDARDS In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Meaurement-Period Adjustments. Before this ASU was issued, GAAP required that during the measurement period, the acquirer retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. Now, an entity must present separately on the face of the income statement or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. Atlantic Capital is evaluating the impact of this update and does not believe it will have a significant impact to Atlantic Capital’s financial position or results of operations. Atlantic Capital intends to adopt this standard in conjunction with the acquisition of First Security Group, which closed on October 31, 2015. In June 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-10 Technical Corrections and Improvements . The amendments in this standard clarify the guidance, correct references and make minor improvements affecting a variety of topics. The substantive amendments are effective for entities during annual reporting periods beginning after December 15, 2015, and interim periods therein, and other amendments are effective immediately. The adoption of this ASU is not expected to have a significant impact on Atlantic Capital's financial position or results of operations. In April 2015, the Financial Accounting Standards Board issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . To simplify presentation of debt issuance costs, the amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs were not affected by this ASU. This guidance is effective for financial statements issued for fiscal years beginning after December 31, 2015, and interim periods within those fiscal years. Early adoption is permitted and Atlantic Capital elected to early adopt this standard as of September 30, 2015. It did not have a material impact on Atlantic Capital’s financial position or results of operations. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers . This update is a joint project with the International Accounting Standards Board initiated to clarify the principles for recognizing revenue and to develop a common revenue standard that is meant to remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, provide more useful information to users of financial statements and simplify the preparation of financial statements. The guidance in this update supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and most industry-specific guidance throughout the Industry Topics of Codification. In August 2015, the FASB deferred the effective date of this ASU by one year. For public companies, it is effective for annual and interim periods beginning after December 15, 2017. Atlantic Capital is evaluating the impact of this update and does not believe it will have a significant impact to Atlantic Capital’s financial position or results of operations. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | BALANCE SHEET OFFSETTING Atlantic Capital enters into reverse repurchase agreements in order to invest short-term funds. The following table presents a summary of amounts outstanding under reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of September 30, 2015 and December 31, 2014. Gross Amounts not Offset in the Balance Sheet (in thousands) September 30, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Asset Balance Financial Instruments Collateral Received Net Amount Reverse repurchase agreements $ 24,135 — $ 24,135 — $ (24,135 ) — Derivatives 3,393 — 3,393 — — 3,393 Total $ 27,528 — $ 27,528 — $ (24,135 ) $ 3,393 Gross Amounts not Offset in the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Liability Balance Financial Instruments Collateral Pledged Net Amount Derivatives $ 2,426 — $ 2,426 — $ (3,130 ) — Gross Amounts not Offset in the Balance Sheet December 31, 2014 Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Asset Balance Financial Instruments Collateral Received Net Amount Reverse repurchase agreements $ 45,623 — $ 45,623 — $ (45,623 ) — Derivatives 2,038 — 2,038 — — 2,038 Total $ 47,661 — $ 47,661 — $ (45,623 ) $ 2,038 Gross Amounts not Offset in the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Liability Balance Financial Instruments Collateral Pledged Net Amount Derivatives $ 1,888 — $ 1,888 — $ (2,590 ) — |
Securities
Securities | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | SECURITIES The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale at September 30, 2015 and December 31, 2014 . Available-for-sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) September 30, 2015 Debt securities— U.S. Government agencies $ 14,917 $ 101 $ (15 ) $ 15,003 U.S. states and political divisions 2,123 170 — 2,293 Trust preferred securities 4,694 — (366 ) 4,328 Corporate debt securities 15,550 123 (1 ) 15,672 Residential mortgage-backed securities-agency 88,889 1,454 (471 ) 89,872 Total $ 126,173 $ 1,848 $ (853 ) $ 127,168 December 31, 2014 Debt securities— U.S. Government agencies $ 15,265 $ 70 $ (115 ) $ 15,220 U.S. states and political divisions 2,158 188 — 2,346 Trust preferred securities 4,675 — (475 ) 4,200 Corporate debt securities 16,150 178 — 16,328 Residential mortgage-backed securities-agency 94,422 1,537 (616 ) 95,343 Total $ 132,670 $ 1,973 $ (1,206 ) $ 133,437 The following table presents the amortized cost and fair value of debt securities by contractual maturity at September 30, 2015 . Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-For-Sale Amortized Cost Fair Value (in thousands) Within 1 year $ 7,088 $ 7,120 Over 1 year through 5 years 15,253 15,418 5 years to 10 years 9,481 9,649 Over 10 years 5,462 5,109 37,284 37,296 Mortgage-backed residential securities 88,889 89,872 Total $ 126,173 $ 127,168 The following table summarizes available-for-sale securities in an unrealized loss position as of September 30, 2015 and December 31, 2014 . Less than 12 months 12 months or greater Totals Available-For-Sale Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) September 30, 2015 U.S. Government agencies $ — $ — 4,982 $ (15 ) $ 4,982 $ (15 ) U.S. states and political divisions — — — — — — Trust preferred securities — — 4,328 (366 ) 4,328 (366 ) Corporate debt securities 1,415 (1 ) — — 1,415 (1 ) Residential mortgage-backed securities 19,622 (165 ) 17,763 (306 ) 37,385 (471 ) Totals $ 21,037 $ (166 ) $ 27,073 $ (687 ) $ 48,110 $ (853 ) December 31, 2014 U.S. Government agencies $ — $ — 4,883 $ (115 ) $ 4,883 $ (115 ) U.S. states and political divisions — — — — — — Trust preferred securities — — 4,200 (475 ) 4,200 (475 ) Corporate debt securities — — — — — — Residential mortgage-backed securities 15,429 (90 ) 23,311 (526 ) 38,740 (616 ) Totals $ 15,429 $ (90 ) $ 32,394 $ (1,116 ) $ 47,823 $ (1,206 ) At September 30, 2015 , there were 29 available-for-sale securities that were in an unrealized loss position. Atlantic Capital does not intend to sell nor believes it will be required to sell securities in an unrealized loss position prior to the recovery of their amortized cost basis. Unrealized losses at September 30, 2015 and December 31, 2014 were primarily attributable to changes in interest rates. Management evaluates securities for other-than-temporary impairment on a quarterly basis. Consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, among other factors. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. No impairment charges were recognized during the nine months ended September 30, 2015 or 2014 . Realized gains and losses are derived using the specific identification method for determining the cost of securities sold. The following table summarizes securities sales activity for the three and nine months ended September 30, 2015 and 2014 . Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Proceeds from sales $ 5,095 $ — $ 5,095 $ 3,411 Gross realized gains $ 10 $ 10 $ 49 Gross realized losses — — — (5 ) Net gains on sales of securities $ 10 $ — $ 10 $ 44 Investment securities with a carrying value of $29.9 million and $17.1 million were pledged to secure borrowings at September 30, 2015 and December 31, 2014 , respectively. |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans and Allowance for Loan and Lease Losses | LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio as of September 30, 2015 and December 31, 2014 , is summarized below. September 30, December 31, Commercial loans: (in thousands) Commercial and industrial $ 366,830 $ 365,447 Commercial real estate 440,226 439,071 Construction and land 106,934 82,567 Mortgage warehouse loans 89,816 116,939 Total commercial loans 1,003,806 1,004,024 Residential: Residential mortgages 726 1,320 Home equity 27,186 28,464 Total residential loans 27,912 29,784 Consumer 18,741 9,290 Total loans 1,050,459 1,043,098 Less net deferred fees and other unearned income (4,022 ) (3,385 ) Less allowance for loan losses (11,862 ) (11,421 ) Loans held for investment, net $ 1,034,575 $ 1,028,292 At September 30, 2015 and December 31, 2014 , loans with a carrying value of $176.3 million and $209.1 million , respectively, were pledged as collateral to secure FHLB advances and the Federal Reserve discount window. The allowance for loan losses represents management’s estimate of probable incurred losses in the loan portfolio as of the end of the period. It is comprised of specific reserves for impaired loans and a general allowance for pools of loans with similar characteristics not individually evaluated. The allowance is regularly evaluated for loan losses to maintain an adequate level to absorb probable current inherent losses in the loan portfolio. Factors contributing to the determination of the allowance include the credit worthiness of the borrower, changes in the value of pledged collateral, and general economic conditions. All loan commitments rated substandard or worse are specifically reviewed for loss potential. For loans deemed to be impaired, a specific allocation is assigned based on the losses expected to be realized from those loans. The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2015 and 2014 . 2015 2014 Three Months Ended September 30, Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 11,365 $ 398 $ 222 $ 11,985 $ 10,200 $ 357 $ 106 $ 10,663 Provision for loan losses (70 ) (65 ) (2 ) (137 ) 635 5 (2 ) 638 Loans charged-off — — — — — — — — Recoveries 14 — — 14 — — — — Total ending allowance balance $ 11,309 $ 333 $ 220 $ 11,862 $ 10,835 $ 362 $ 104 $ 11,301 2015 2014 Nine Months Ended September 30, Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 10,967 $ 347 $ 107 $ 11,421 $ 10,346 $ 356 $ 113 $ 10,815 Provision for loan losses 313 (14 ) 113 412 472 6 (9 ) 469 Loans charged-off — — — — — — — — Recoveries 29 — — 29 17 — — 17 Total ending allowance balance $ 11,309 $ 333 $ 220 $ 11,862 $ 10,835 $ 362 $ 104 $ 11,301 The general component of the allowance for loan losses is based on the expected loss in the portfolio. The expected loss (“EL”) is determined through the generation of probabilities of default (“PD’s”) and losses given default (“LGD’s”) for groups of similar loans with similar credit grades where EL = PD x LGD. The PD’s and LGD’s for the loan portfolio are calculated based on Atlantic Capital’s loss history as well as available market-based data. The expected loss for each pool of loans is adjusted based on Qualitative and Environmental factors to account for conditions in the current environment which management believes are likely to cause a difference between the EL calculated based on historical performance and a future view of loss in the existing portfolio. These factors include: changes in policies and procedures, changes in the economy, changes in nature, volume of the portfolio and in the terms of loans, changes in lending management, changes in past dues and credit migration, changes in the loan review system, changes in the value of collateral and concentration risk and changes in external factors, such as competition, legal, regulatory, etc. On a quarterly basis, management evaluates these factors in order to determine an adjustment unique to Atlantic Capital and its market. Charge-offs are recognized when the amount of the loss is quantifiable and timing is known. Collateral based loan charge-offs are measured based on the difference between the loan’s carrying value, including deferred fees, and the estimated net realizable value of the loan. When assessing property value for the purpose of determining a charge-off, a third-party appraisal or an independently derived internal evaluation is generally employed. A loan is considered to be impaired when, based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. Loans for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. A specific allowance is established for individually evaluated impaired loans as needed. Reserves on impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the observable market price, or the fair value of the underlying collateral of the loan if the loan is collateral dependent. The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method is presented in the following table as of September 30, 2015 and December 31, 2014 . September 30, 2015 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 693 $ — $ — $ 693 Collectively evaluated for impairment 10,616 333 220 11,169 Total ending allowance balance $ 11,309 $ 333 $ 220 $ 11,862 Loans: Loans individually evaluated for impairment $ 6,571 $ — $ — $ 6,571 Loans collectively evaluated for impairment 997,235 27,912 18,741 1,043,888 Total ending loans balance $ 1,003,806 $ 27,912 $ 18,741 $ 1,050,459 December 31, 2014 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 885 $ — $ — $ 885 Collectively evaluated for impairment 10,082 347 107 10,536 Total ending allowance balance $ 10,967 $ 347 $ 107 $ 11,421 Loans: Loans individually evaluated for impairment $ 6,601 $ — $ — $ 6,601 Loans collectively evaluated for impairment 997,423 29,784 9,290 1,036,497 Total ending loans balance $ 1,004,024 $ 29,784 $ 9,290 $ 1,043,098 The following table presents information on Atlantic Capital’s impaired loans as of September 30, 2015 and December 31, 2014 : As of September 30, 2015 As of December 31, 2014 Unpaid Principal Balance Recorded Investment Related Allowance Average Balance of Recorded Investment Interest Income Recognized Unpaid Principal Balance Recorded Investment Related Allowance Average Interest Income Recognized (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate 1,659 1,659 — 1,659 41 1,661 1,661 — 1,700 56 Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 1,659 $ 1,659 $ — $ 1,659 $ 41 $ 1,661 $ 1,661 $ — $ 1,700 $ 56 Impaired loans with an allowance recorded: Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate 4,912 4,912 693 4,904 100 4,940 4,940 885 5,018 136 Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 4,912 $ 4,912 $ 693 $ 4,904 $ 100 $ 4,940 $ 4,940 $ 885 $ 5,018 $ 136 Total impaired loans $ 6,571 $ 6,571 $ 693 $ 6,563 $ 141 $ 6,601 $ 6,601 $ 885 $ 6,718 $ 192 Atlantic Capital evaluates loans in accordance with ASC No. 310-40, Troubled Debt Restructurings by Creditors. Troubled debt restructurings are loans in which Atlantic Capital has modified the terms and granted an economic concession to a borrower who is experiencing financial difficulties. These modifications may include interest rate reductions, term extensions and other concessions intended to minimize losses. Atlantic Capital did not modify any new loans as a TDR during the three and nine months ended September 30, 2015 and 2014 , and no previous TDRs defaulted during those periods. As of September 30, 2015 and December 31, 2014 TDR balances totaled $6.6 million . Atlantic Capital individually rates loans based on internal credit risk ratings using numerous factors, including thorough analysis of historical and expected cash flows, consumer credit risk scores (FICO scores), rating agency information, LTV ratios, collateral, collection experience, and other internal metrics. Atlantic Capital uses a dual rating system. The likelihood of default of a credit transaction is graded in the Obligor Rating. The risk of loss given default is graded in the Facility Rating. The Obligor Rating is determined through thorough credit analysis. Facility Ratings are used to describe the value to the bank that the collateral represents. Facility Ratings are based on the collateral package or market expectations regarding the value or liquidity of the collateral. Ratings are generally reviewed at least annually or more frequently if there is a material change in creditworthiness. Exceptions to this policy may include well collateralized term loans and loans to individuals with limited exposure or complexity. Atlantic Capital uses the following definitions for risk ratings: Pass: Loans that are analyzed individually as part of the above described process and that do not meet the criteria of special mention, substandard or doubtful. Special Mention: Loans classified as special mention have a potential weakness that requires management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. As of September 30, 2015 and December 31, 2014 , and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Commercial and Industrial Commercial Real Estate Construction and Land Residential Mortgages Home Equity Mortgage Warehouse Consumer Total (in thousands) September 30, 2015 Pass $ 358,687 $ 428,152 $ 103,328 $ 526 $ 27,076 $ 89,816 $ 18,741 $ 1,026,326 Special Mention 2,307 5,503 3,606 — — — — 11,416 Substandard accruing 5,836 6,571 — 200 110 — — 12,717 Substandard nonaccruing — — — — — — — — Doubtful nonaccruing — — — — — — — — Total $ 366,830 $ 440,226 $ 106,934 $ 726 $ 27,186 $ 89,816 $ 18,741 $ 1,050,459 Commercial and Industrial Commercial Real Estate Construction and Land Residential Mortgages Home Equity Mortgage Warehouse Consumer Total December 31, 2014 Pass $ 351,596 $ 427,200 $ 82,567 $ 1,120 $ 28,404 $ 116,939 $ 9,290 $ 1,017,116 Special Mention 10,724 661 — — — — — 11,385 Substandard accruing 3,127 11,210 — 200 60 — — 14,597 Substandard nonaccruing — — — — — — — — Doubtful nonaccruing — — — — — — — — Total $ 365,447 $ 439,071 $ 82,567 $ 1,320 $ 28,464 $ 116,939 $ 9,290 $ 1,043,098 Atlantic Capital monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of September 30, 2015 and December 31, 2014 by class of loans. As of September 30, 2015 Accruing Current 30-89 Days Past Due Accruing 90+ Days Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 366,830 $ — $ — $ — $ 366,830 Commercial real estate 440,226 — — — 440,226 Construction and land 106,934 — — — 106,934 Residential mortgages 726 — — — 726 Home equity 27,186 — — — 27,186 Mortgage warehouse 89,816 — — — 89,816 Consumer 18,741 — — — 18,741 Total Loans $ 1,050,459 $ — $ — $ — $ 1,050,459 As of December 31, 2014 Accruing Current 30-89 Days Past Due Accruing 90+ Days Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 365,447 $ — $ — $ — $ 365,447 Commercial real estate 439,071 — — — 439,071 Construction and land 82,567 — — — 82,567 Residential mortgages 1,320 — — — 1,320 Home equity 28,464 — — — 28,464 Mortgage warehouse 116,939 — — — 116,939 Consumer 9,290 — — — 9,290 Total Loans $ 1,043,098 $ — $ — $ — $ 1,043,098 |
SBA Servicing Rights
SBA Servicing Rights | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
SBA Servicing Rights | SBA SERVICING RIGHTS SBA servicing rights are initially recorded at fair value. Subsequently, Atlantic Capital accounts for SBA servicing rights using the amortization method and they are included in other assets. As of September 30, 2015 and December 31, 2014, the balance of SBA loans sold and serviced by Atlantic Capital totaled $52.9 million and $30.6 million , respectively. Changes in the balance of servicing assets for the three and nine months ended September 30, 2015 and 2014 are presented in the following table . Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (in thousands) SBA Loan Servicing Rights Beginning carrying value, net $ 1,055 $ 375 $ 782 $ 36 Additions 243 230 603 579 Amortization (39 ) (15 ) (126 ) (25 ) Impairment — — — — Ending carrying value $ 1,259 $ 590 $ 1,259 $ 590 At September 30, 2015, the sensitivity of the fair value of the SBA loan servicing rights to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Asset September 30, 2015 (dollars in thousands) Fair value of retained servicing assets $ 1,285 Weighted average life 7.01 years Prepayment speed: 7.53 % Decline in fair value due to a 10% adverse change $ (36 ) Decline in fair value due to a 20% adverse change $ (70 ) Weighted average discount rate 11.59 % Decline in fair value due to a 100 bps adverse change $ (45 ) Decline in fair value due to a 200 bps adverse change $ (87 ) The above sensitivities are hypothetical and should be used with caution. As the amounts indicate, changes in fair value based on valuation assumptions generally cannot be extrapolated because the relationship of the change in assumption to the change in fair value may not be linear. Also, the effect of a variation in a particular assumption on the fair value of the retained interest is calculated without changing any other assumption. In reality, changes in one factor may result in changes in another, which might magnify or counteract the sensitivities. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) for Atlantic Capital consists of changes in net unrealized gains and losses on investment securities available-for-sale and derivatives. The following tables present a summary of the changes in accumulated other comprehensive income (loss) balances for the applicable periods. For the Three Months Ended For the Nine Months Ended September 30, 2015 September 30, 2015 Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount (in thousands) Accumulated other comprehensive income beginning of period $ 1,064 $ (407 ) $ 657 $ 986 $ (377 ) $ 609 Unrealized net gains on investment securities available-for-sale 636 (244 ) 392 238 (91 ) 147 Reclassification adjustment for net realized gains on investment securities available-for-sale (10 ) 4 (6 ) (10 ) 4 (6 ) Unrealized net gains on derivatives 847 (324 ) 523 1,323 (507 ) 816 Accumulated other comprehensive income end of period $ 2,537 $ (971 ) $ 1,566 $ 2,537 $ (971 ) $ 1,566 For the Three Months Ended For the Nine Months Ended September 30, 2014 September 30, 2014 Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount (in thousands) Accumulated other comprehensive income beginning of period $ 465 $ (174 ) $ 291 $ (2,026 ) $ 760 $ (1,266 ) Unrealized net gains on investment securities available-for-sale (620 ) 232 (388 ) 1,915 (719 ) 1,196 Reclassification adjustment for net realized gains on investment securities available-for-sale — — — (44 ) 17 (27 ) Unrealized net gains on derivatives (115 ) 43 (72 ) (115 ) 43 (72 ) Accumulated other comprehensive income end of period $ (270 ) $ 101 $ (169 ) $ (270 ) $ 101 $ (169 ) |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE Basic earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share amounts are computed by dividing net income by the weighted average number of shares of common stock outstanding and the dilutive effects of the shares awarded under the stock option plan, based on the treasury stock method using an average fair market value of the stock during the respective periods. The following table represents the earnings per share calculations for the three and nine months ended September 30, 2015 and 2014. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Net income available to common shareholders $ 2,226 $ 1,986 $ 6,842 $ 5,365 Weighted average shares outstanding Basic 1 13,562,125 13,456,246 13,527,195 13,442,191 Effect of diluted securities: Stock options and warrants 342,270 200,328 339,117 200,328 Diluted 13,904,395 13,656,574 13,866,312 13,642,519 Income per common share: Basic $ 0.16 $ 0.15 $ 0.51 $ 0.40 Diluted $ 0.16 $ 0.15 $ 0.49 $ 0.39 1 Unvested restricted shares are participating securities and included in basic share calculations . The Amended and Restated Articles of Incorporation of Atlantic Capital, which were approved by the Board of Directors on March 24, 2015 and by Atlantic Capital’s shareholders on May 21, 2015, authorized Atlantic Capital to issue 110,000,000 shares of capital stock, of which 10,000,000 shares are designated as preferred stock, no par value per share, and 100,000,000 shares are designated as common stock, no par value per share. Prior periods have been restated to reflect the change in the par value of the common stock from $1 to no par value. The authorized capital stock of Atlantic Capital consists of 100,000,000 shares of common stock, no par value. At September 30, 2015, 13,661,967 shares of common stock were issued and 13,562,125 shares of common stock were outstanding. At December 31, 2014, 13,497,118 shares of common stock were issued and 13,453,820 shares of common stock were outstanding. The primary source of funds available to Atlantic Capital is payments of dividends from the Bank. The Bank has not paid any dividends to Atlantic Capital in 2015 or 2014. Banking laws and other regulations limit the amount of dividends a bank subsidiary may pay without prior regulatory approval. Until May 2014, the Bank was prohibited from paying any dividends to Atlantic Capital without prior approval from the Georgia Banking Department, due to the Bank’s de novo status. Additionally, Atlantic Capital’s ability to pay dividends to its shareholders will depend on the ability of the Bank to pay dividends to Atlantic Capital. The Bank is subject to regulatory restrictions on the payment of cash dividends, which generally may be paid only from current earnings. |
Derivatives and Hedging Derivat
Derivatives and Hedging Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | DERIVATIVES AND HEDGING Risk Management Atlantic Capital’s objectives in using interest rate derivatives are to add stability to net interest revenue and to manage its exposure to interest rate movements. To accomplish this objective, Atlantic Capital primarily uses interest rate swaps as part of its interest rate risk management strategy. Cash Flow Hedges At September 30, 2015 , Atlantic Capital’s interest rate swaps designated as cash flow hedges involve the payment of floating-rate amounts to a counterparty in exchange for receiving fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. At September 30, 2015 and December 31, 2014 , Atlantic Capital had interest rate swaps designated as cash flow hedges with an aggregate notional amount of $50.0 million , respectively. No hedge ineffectiveness gains or losses were recognized on active cash flow hedges in 2015 or 2014. The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in accumulated other comprehensive income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. Atlantic Capital expects that approximately $462,000 will be reclassified as an increase to loan interest income over the next twelve months related to these cash flow hedges. Customer Swaps Atlantic Capital also enters into derivative contracts, which consist of interest rate swaps, to facilitate the needs of clients desiring to manage interest rate risk. These swaps are not designated as accounting hedges under ASC Topic No. 815, Derivatives and Hedging . In order to economically hedge the interest rate risk associated with offering this product, Atlantic Capital simultaneously enters into derivative contracts with third parties to offset the customer contracts, such that Atlantic Capital minimizes its net risk exposure resulting from such transactions. The derivative contracts are structured such that the notional amounts reduce over time to generally match the expected amortization of the underlying loans. These derivatives are not speculative and arise from a service provided to clients. Atlantic Capital’s derivative instruments are recorded at fair value in other assets and accrued interest receivable and other liabilities and accrued interest payable in the Consolidated Balance Sheets. The changes in the fair value of the derivative instruments are recognized in other noninterest income in the Consolidated Statements of Income. The net change in each of these financial statement line items are recorded in the Consolidated Statements of Cash Flows. At September 30, 2015 and December 31, 2014 , Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $151.2 million and $179.2 million , respectively. Counterparty Credit Risk As a result of its derivative contracts, Atlantic Capital is exposed to credit risk. Specifically approved counterparties and exposure limits are defined. On a quarterly basis, the customer derivative contracts and related counterparties are evaluated for credit risk and an adjustment is made to the contract’s fair value. This adjustment is recognized in the Consolidated Statements of Income. Derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with third party counterparties, Atlantic Capital may be required to post margin to these counterparties. At September 30, 2015 and December 31, 2014 , Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $3.1 million and $2.6 million , respectively, against its obligations under these agreements. Collateral related to derivative contracts is recorded in other assets in the Consolidated Balance Sheets. Atlantic Capital has master netting agreements with the derivatives dealers with which it does business, but reflects gross assets and liabilities on the Consolidated Balance Sheets. In conjunction with the FASB’s fair value measurement guidance, management made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting arrangements on a net basis. To accommodate clients, Atlantic Capital occasionally enters into credit risk participation agreements with counterparty banks to accept a portion o the credit risk related to interest rate swaps. This allows clients to execute an interest rate swap with one bank while allowing for distribution of the credit risk among participating members. Credit risk participation agreements arise when Atlantic Capital contracts with other financial institutions, as a guarantor, to share credit risk associated with certain interest rate swaps. These agreements provide for reimbursement of losses resulting from a third party default on the underlying swap. At September 30, 2015 and December 31, 2014 , Atlantic Capital had credit risk participation agreements with a notional amount of $17.3 million and $17.7 million , respectively. The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of September 30, 2015 and December 31, 2014 (in thousands): Derivatives designated as hedging instruments under ASC 815 September 30, 2015 December 31, 2014 Interest Rate Products Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 50,000 $ 1,089 $ 50,000 $ 219 Derivatives not designated as hedging instruments under ASC 815 September 30, 2015 December 31, 2014 Interest Rate Products Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Customer swap positions Other assets $ 75,623 $ 2,303 $ 89,606 $ 1,819 Dealer offsets to customer swap positions Other liabilities $ 75,623 $ 2,422 $ 89,606 $ 1,882 Credit risk participation Other liabilities 17,317 4 17,703 6 $ 92,940 $ 2,426 $ 107,309 $ 1,888 The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and nine months ended September 30, 2015 and 2014 (in thousands): Derivatives in Cash Flow Hedging Relationships Three months ended September 30, Nine months ended September 30, Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) 2015 2014 Location 2015 2014 2015 2014 Location 2015 2014 Interest rate swaps $ 523 $ (72 ) Interest income $ 214 $ 93 $ 817 $ (72 ) Interest income $ 435 $ 93 |
Subordinated Debt
Subordinated Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | SUBORDINATED DEBT On September 28, 2015, Atlantic Capital issued subordinated notes (the “Notes”) totaling $50.0 million in aggregate principal amount. The Notes are due September 30, 2025 and bear a fixed rate of interest of 6.25% per year until September 29, 2020. As of September 30, 2020 to the maturity date, the interest rate will be a floating rate equal to the three-month LIBOR plus 468 basis points. The Notes were priced at 100% of their par value. The Notes qualify as Tier 2 regulatory capital. Subordinated debt is summarized as follows. September 30, December 31, 2015 2014 (in thousands Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 $ 50,000 $ — Principal amount of subordinated debt $ 50,000 $ — Less debt issuance costs 774 — Subordinated debt, net $ 49,226 $ — All subordinated debt outstanding at September 30, 2015 matures after more than five years. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | SHARE-BASED COMPENSATION Atlantic Capital sponsors a stock incentive plan for the benefit of directors and employees. Under the 2006 Stock Incentive Plan, there were 2,000,000 shares reserved for issuance in order for directors and employees to purchase Atlantic Capital common stock. The Compensation Committee has the authority to grant an incentive or nonqualified option; a restricted stock award (including a restricted stock award or a restricted unit award); a performance award (including a performance share award or a performance unit award); a phantom stock award; a dividend equivalent award; or any other award granted under the plan. As of September 30, 2015, approximately 525,000 additional awards could be granted under the plan. Through September 30, 2015, incentive stock options, nonqualified stock options, restricted and non-restricted stock awards have been granted under the plan. Stock options are granted at a price which is no less than the fair market value of a share of Atlantic Capital common stock on the grant date. Stock options generally vest over three years and expire after ten years. As of September 30, 2015 and December 31, 2014, warrants for 588,000 shares were outstanding for the purchase of common stock at a price of $10.00 per warrant. The warrants were issued as of May 14, 2007, the date of issuance of common stock sold in the initial private placement, and are exercisable for a period of ten years following the issuance. The following table represents stock option and warrant activity for the nine months ended September 30, 2015 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, December 31, 2014 1,663,500 $ 10.01 Granted — $ — Cancelled — $ — Outstanding, September 30, 2015 1,663,500 $ 10.01 2.41 $ 4,313 Exercisable, September 30, 2015 1,663,500 $ 10.01 2.41 $ 4,313 No stock options were granted during the nine months ended September 30, 2015 or 2014. Atlantic Capital recognized no compensation expense related to stock options in the three and nine months ended September 30, 2015. Compensation expense relating to stock options of $0 and $20,000 was included in earnings for the three and nine months ended September 30, 2014, respectively. Using the Black-Scholes pricing model, the amount of compensation expense was determined based on the fair value of the options at the time of grant, multiplied by the number of options granted that were expected to vest, which was then amortized over the vesting period. No options were exercised during the first nine months of 2015 or 2014. The following table represents restricted stock activity for the nine months ended September 30, 2015 : Shares Weighted Average Grant-Date Fair Value Outstanding, December 31, 2014 132,093 $ 10.84 Granted 60,716 $ 12.59 Vested (51,707 ) $ 10.51 Forfeited — $ — Outstanding, September 30, 2015 141,102 $ 11.71 Compensation expense for restricted stock is based on the fair value of restricted stock awards at the time of grant, which is equal to the value of Atlantic Capital’s common stock on the date of grant. The value of restricted stock grants that are expected to vest is amortized into expense over the vesting period. For the three months ended September 30, 2015 and 2014, compensation expense of $189,000 and $104,000 , respectively, was recognized related to restricted stock awards. For the nine months ended September 30, 2015 and 2014, compensation expense of $503,000 and $351,000 , respectively, was recognized related to restricted stock awards. As of September 30, 2015, there was $850,000 of unrecognized compensation cost related to restricted stock awards granted under the plan. That cost is expected to be recognized over a weighted-average period of 1.76 years. The aggregate grant date fair value of options and restricted stock awards that vested during the nine months ended September 30, 2015, was $10.51 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Atlantic Capital follows the guidance pursuant to ASC No. 820-10, Fair Value Measurements and Disclosures . This guidance defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. This issuance applies to reported balances that are required or permitted to be measured at fair value under existing accounting pronouncements; accordingly, the standard does not require any new fair value measurements of reported balances. Atlantic Capital measures its investment securities and interest rate derivative assets and liabilities at fair value on a recurring basis. Fair value is used on a nonrecurring basis either when assets are evaluated for impairment or for disclosure purposes. Atlantic Capital measures its servicing assets, impaired loans and other real estate owned at fair value on a nonrecurring basis. The basis for accounting for other real estate owned is the lower of cost or fair value, less selling costs. The guidance emphasizes that fair value is a market-based measurement, not an entity-specific measurement and defines fair value as the price that could be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As a basis for considering market participant assumptions in fair value measurements, this guidance establishes a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity (observable inputs that are classified within Levels 1 and 2 of the hierarchy) and the reporting entity’s own assumptions about market participant assumptions (unobservable inputs classified within Level 3 of the hierarchy). Atlantic Capital applied the following fair value hierarchy: Level 1 – Assets or liabilities for which the identical item is traded on an active exchange, such as publicly-traded instruments or futures contracts. Level 2 – Assets or liabilities valued based on observable market data for similar instruments. Level 3 – Assets or liabilities for which significant valuation assumptions are not readily observable in the market, instruments valued based on the best available data, some of which is internally-developed, and risk premiums that a market participant would require. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement. There were no transfers between Level 1 and Level 2 or Level 2 and Level 3 during 2015 and 2014. Atlantic Capital records investment securities available-for-sale at fair value on a recurring basis. Investment securities classified as available-for-sale are reported at fair value utilizing Level 2 inputs. For these securities, Atlantic Capital obtains fair value measurements from an independent pricing service. In estimating the fair values for investment securities, Atlantic Capital believes that independent third-party market prices are the best evidence of an exit price. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the Treasury Department yield curve, trade execution data, market consensus prepayment speeds, credit information and the securities’ terms and conditions, among other things. Derivative instruments are primarily transacted as over-the-counter trades and priced with observable market assumptions. Ongoing measurements include observable market assumptions with appropriate valuation adjustments for liquidity and for credit risk of counterparties and Atlantic Capital's own credit. For these instruments, Atlantic Capital obtains fair value measurements from an independent pricing service. The fair value measurements consider factors such as the likelihood of default by Atlantic Capital and its counterparties, total exposure and remaining maturities in determining the appropriate fair value adjustments to record. Generally, the expected loss of each client counterparty is estimated using Atlantic Capital’s internal risk rating system. For financial institution counterparties that are rated by national rating agencies, those ratings are used in determining the credit risk. This approach used to estimate exposures to counterparties is also used by Atlantic Capital to estimate its own credit risk on derivative liability positions. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following table presents the assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at September 30, 2015 and December 31, 2014. Fair Value Measurements at September 30, 2015 Using: Level 1 Level 2 Level 3 Total (in thousands) Financial assets Securities available-for-sale— U.S. government agencies $ — $ 15,003 $ — $ 15,003 U.S. states and political subdivisions — 2,293 — 2,293 Trust preferred securities — 4,328 — 4,328 Corporate debt securities — 15,672 — 15,672 Mortgage-backed securities — 89,872 — 89,872 Total securities available-for-sale $ — $ 127,168 $ — $ 127,168 Derivative financial instruments $ — $ 3,393 $ — $ 3,393 Financial liabilities Derivative financial instruments $ — $ 2,426 $ — $ 2.426 Fair Value Measurements at December 31, 2014 Using: Level 1 Level 2 Level 3 Total (in thousands) Financial assets Securities available-for-sale— U.S. government agencies $ — $ 15,220 $ — $ 15,220 U.S. states and political subdivisions — 2,346 — 2,346 Trust preferred securities — 4,200 — 4,200 Corporate debt securities — 16,328 — 16,328 Mortgage-backed securities — 95,343 — 95,343 Total securities available-for-sale $ — $ 133,437 $ — $ 38,094 Derivative financial instruments $ — $ 2,038 $ — $ 2,038 Financial liabilities Derivative financial instruments $ — $ 1,888 $ — $ 1,888 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at September 30, 2015 and December 31, 2014 . Level 1 Fair Value Measurement Level 2 Fair Value Measurement Level 3 Fair Value Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,912 $ 4,912 Level 1 Fair Value Measurement Level 2 Fair Value Measurement Level 3 Fair Value Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,940 $ 4,940 SBA Servicing asset — — 782 782 Totals $ — $ — $ 5,722 $ 5,722 Level 3 loans consist of impaired loans which have been partially charged-off or have specific valuation allowances. The fair value of Level 3 assets is estimated based on the underlying collateral value. For loans which the cash proceeds from the sale of the underlying collateral is the expected source of repayment, the fair value of these loans was derived from internal estimates of the underlying collateral incorporating market data, including third party appraisals or evaluations, when available. Appraised values may be discounted based on management’s assessment of the level of inactivity in the real estate market and other markets for the underlying collateral, changes in market conditions from the time of the valuation, and other information that in management’s judgment may affect the value. Impaired loans are evaluated on at least a quarterly basis and adjusted accordingly. The SBA servicing asset is initially recorded at fair value when loans are sold with servicing retained. This asset is then amortized in proportion to and over the period of estimated net servicing income. On at least a quarterly basis, the SBA servicing asset is assessed for impairment based on fair value. Given the nature of the asset, the key valuation inputs are unobservable and management classifies this asset as Level 3. A rollforward of activity for the SBA servicing asset and a summary of key input assumptions can be found in Note 6 – SBA Servicing Rights. At December 31, 2014, Atlantic Capital’s quarterly impairment review indicated impairment of approximately $7,000 and an impairment charge was recorded. No impairment was recognized for the nine months ended September 30, 2015. Assets and Liabilities Not Measured at Fair Value For financial instruments that have quoted market prices, those quotes are used to determine fair value. Financial instruments that have no defined maturity, have a remaining maturity of 180 days or less, or reprice frequently to a market rate, are assumed to have a fair value that approximates the reported book value, after taking into consideration any applicable credit risk. If no market quotes are available, financial instruments are valued by discounting the expected cash flows using an estimated current market interest rate for the financial instrument. For off-balance sheet derivative instruments, fair value is estimated as the amount that Atlantic Capital would receive or pay to terminate the contracts at the reporting date, taking into account the current unrealized gains or losses on open contracts. The short maturity of Atlantic Capital’s assets and liabilities results in having a significant number of financial instruments whose fair value equals or closely approximates carrying value. Such financial instruments are reported in the following balance sheet captions: cash and due from banks, interest-bearing deposits in other banks, other short-term investments, and FHLB stock. The fair value of securities available-for-sale equals the balance sheet value. Due to the short-term settlement of accrued interest receivable and payable, the carrying amount closely approximates fair value. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect the premium or discount on any particular financial instrument that could result from the sale of Atlantic Capital’s entire holdings. Because no ready market exists for a significant portion of Atlantic Capital's financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Off-balance sheet financial instruments (commitments to extend credit and standby letters of credit) are generally short-term and at variable rates. Therefore, both the carrying amount and the estimated fair value associated with these instruments are immaterial. The carrying amount and fair values for other financial instruments that are not measured at fair value on a recurring basis in Atlantic Capital’s balance sheet at September 30, 2015 and December 31, 2014 are as follows (in thousands). The following table presents the estimated fair values of Atlantic Capital’s financial instruments at September 30, 2015 and December 31, 2014 . Fair Value Measurements at September 30, 2015 Using: Carrying Value Level 1 Level 2 Level 3 Total (in thousands) Financial assets Loans, net $ 1,058,299 $ — $ — $ 1,023,651 $ 1,023,651 Financial liabilities Deposits $ 1,128,608 $ — $ 1,116,046 $ — $ 1,116,046 Subordinated debt 49,226 49,226 49,226 FHLB advances 43,000 — 42,994 — 42,994 Fair Value Measurements at December 31, 2014 Using: Carrying Value Level 1 Level 2 Level 3 Total (in thousands) Financial assets Loans, net $ 1,051,134 $ — $ — $ 1,018,130 $ 1,018,130 Financial liabilities Deposits $ 1,105,845 $ — $ 1,092,527 $ — $ 1,092,527 FHLB advances 56,517 — 56,678 — 56,678 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Atlantic Capital is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit, most of which are standby letters of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the Consolidated Balance Sheets. The contract amounts of these instruments reflect the extent of involvement Atlantic Capital has in particular classes of financial instruments. Standby letters of credit are written conditional commitments issued by Atlantic Capital to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements. Most letters of credit expire in less than one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Atlantic Capital’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. Atlantic Capital uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit at September 30, 2015 and December 31, 2014 was as follows: September 30, December 31, 2014 (in thousands) Commitments to extend credit $ 444,983 $ 389,445 Standby letters of credit 9,274 12,316 $ 454,257 $ 401,761 Atlantic Capital, in the normal course of business, is subject to various pending and threatened lawsuits in which claims for monetary damages are asserted. Although it is not possible to predict the outcome of these lawsuits, or the range of any possible loss, management, after consultation with legal counsel, does not anticipate that the ultimate aggregate liability, if any, arising from these lawsuits will have a material adverse effect on Atlantic Capital’s financial position or results of operations. |
Mergers and Acquisitions
Mergers and Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Mergers and Acquisitions | SUBSEQUENT EVENTS - MERGERS AND ACQUISITIONS On October 31, 2015, Atlantic Capital completed the acquisition of First Security and its wholly-owned bank subsidiary, FSG Bank. First Security operated twenty-five branches in Georgia and Tennessee. In connection with the acquisition, Atlantic Capital acquired approximately $857 million of loans and assumed approximately $968 million of deposits. The deadline for First Security shareholders to elect the form of merger consideration they wished to receive in the Merger was October 26, 2015. First Security received 56,146,402 elections for shares to be exchanged for stock consideration, 6,737,774 elections for cash consideration, and no election was made with respect to 3,913,748 shares. Pursuant to the terms of and subject to the conditions set forth in the Merger Agreement, at least 20,041,578 (the “Cash Election Minimum Threshold “) shares of First Security common stock were to be exchanged for cash, with the remaining shares to be exchanged for Atlantic Capital common stock. Because the stock election was oversubscribed, and the number of shares not making a stock election was not sufficient to meet the Cash Election Minimum Threshold, shares for which a stock election was made were subject to re-allocation. Accordingly, in aggregate, the merger consideration to be received by First Security shareholders consisted of approximately $47,097,708 in cash and approximately 8,790,193 shares of Atlantic Capital common stock. These numbers are subject to adjustment because First Security shareholders received cash in lieu of each fractional share of Atlantic Capital common stock to which they would otherwise be entitled. First Security shares for which a cash election was made, as well as those for which no election was made, received $2.35 in cash per share. First Security shares for which a stock election was made received approximately $0.39 in cash and approximately 0.157 shares of Atlantic Capital common stock for each share of First Security common stock exchanged in the Merger (and cash in lieu of each fractional share). Acquisition-related costs totaled $718,000 and $1.98 million for the three and nine months ending September 30, 2015, respectively, and were included in operating expenses in the consolidated income statement. On October 29, 2015, Atlantic Capital completed the sale of 1,984,127 shares of its common stock, at a purchase price of $12.60 per share, or an aggregate of $25 million , to Trident IV, L.P. and Trident IV Professionals Fund, L.P. (collectively “Stone Point”). Stephen Levey serves on Atlantic Capital’s Board of Directors as a designee of Stone Point pursuant to a corporate governance agreement between Atlantic Capital, the Bank and Stone Point. |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
New Accounting Policies | In September 2015, the FASB issued ASU No. 2015-16, Simplifying the Accounting for Meaurement-Period Adjustments. Before this ASU was issued, GAAP required that during the measurement period, the acquirer retrospectively adjust the provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. To simplify the accounting for adjustments made to provisional amounts recognized in a business combination, the amendments in this update eliminate the requirement to retrospectively account for those adjustments. Now, an entity must present separately on the face of the income statement or disclose in the notes, the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. This guidance is effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date with earlier application permitted for financial statements that have not been issued. Atlantic Capital is evaluating the impact of this update and does not believe it will have a significant impact to Atlantic Capital’s financial position or results of operations. Atlantic Capital intends to adopt this standard in conjunction with the acquisition of First Security Group, which closed on October 31, 2015. In June 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-10 Technical Corrections and Improvements . The amendments in this standard clarify the guidance, correct references and make minor improvements affecting a variety of topics. The substantive amendments are effective for entities during annual reporting periods beginning after December 15, 2015, and interim periods therein, and other amendments are effective immediately. The adoption of this ASU is not expected to have a significant impact on Atlantic Capital's financial position or results of operations. In April 2015, the Financial Accounting Standards Board issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . To simplify presentation of debt issuance costs, the amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs were not affected by this ASU. This guidance is effective for financial statements issued for fiscal years beginning after December 31, 2015, and interim periods within those fiscal years. Early adoption is permitted and Atlantic Capital elected to early adopt this standard as of September 30, 2015. It did not have a material impact on Atlantic Capital’s financial position or results of operations. In May 2014, the FASB issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers . This update is a joint project with the International Accounting Standards Board initiated to clarify the principles for recognizing revenue and to develop a common revenue standard that is meant to remove inconsistencies and weaknesses in revenue requirements, provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, provide more useful information to users of financial statements and simplify the preparation of financial statements. The guidance in this update supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition” and most industry-specific guidance throughout the Industry Topics of Codification. In August 2015, the FASB deferred the effective date of this ASU by one year. For public companies, it is effective for annual and interim periods beginning after December 15, 2017. Atlantic Capital is evaluating the impact of this update and does not believe it will have a significant impact to Atlantic Capital’s financial position or results of operations. |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital”) and its subsidiary conform to accounting principles generally accepted in the United States of America (“GAAP”) and general banking industry practices. The accompanying interim consolidated financial statements have not been audited. All material intercompany balances and transactions have been eliminated. On October 31, 2015, Atlantic Capital completed its acquisition of First Security Group, Inc. and its subsidiary FSGBank, N.A. (together, “First Security”). In connection with the acquisition, Atlantic Capital’s subsidiary Atlantic Capital Bank, a Georgia chartered commercial bank merged with and into FSGBank, N.A, which subsequently changed its name to Atlantic Capital Bank, National Association. The consolidated financial statements reflect the results of operations of Atlantic Capital and Atlantic Capital Bank (the "Bank"), and do not include the results of operations of First Security. In connection with the acquisition, Atlantic Capital will issue approximately 8,790,193 shares of common stock as partial consideration to former shareholders of First Security, with the remaining consideration consisting of approximately $47.1 million in cash. See Note 14 to the Unaudited Financial Statements for additional information. In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in Atlantic Capital’s filing on Form S-4 which included the years ended December 31, 2014 and 2013. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. Certain prior period amounts have been reclassified to conform to the current year presentation. |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Offsetting [Abstract] | |
Offsetting Assets | The following table presents a summary of amounts outstanding under reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of September 30, 2015 and December 31, 2014. Gross Amounts not Offset in the Balance Sheet (in thousands) September 30, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Asset Balance Financial Instruments Collateral Received Net Amount Reverse repurchase agreements $ 24,135 — $ 24,135 — $ (24,135 ) — Derivatives 3,393 — 3,393 — — 3,393 Total $ 27,528 — $ 27,528 — $ (24,135 ) $ 3,393 Gross Amounts not Offset in the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Liability Balance Financial Instruments Collateral Pledged Net Amount Derivatives $ 2,426 — $ 2,426 — $ (3,130 ) — Gross Amounts not Offset in the Balance Sheet December 31, 2014 Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Asset Balance Financial Instruments Collateral Received Net Amount Reverse repurchase agreements $ 45,623 — $ 45,623 — $ (45,623 ) — Derivatives 2,038 — 2,038 — — 2,038 Total $ 47,661 — $ 47,661 — $ (45,623 ) $ 2,038 Gross Amounts not Offset in the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Liability Balance Financial Instruments Collateral Pledged Net Amount Derivatives $ 1,888 — $ 1,888 — $ (2,590 ) — |
Offsetting Liabilities | The following table presents a summary of amounts outstanding under reverse repurchase agreements and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of September 30, 2015 and December 31, 2014. Gross Amounts not Offset in the Balance Sheet (in thousands) September 30, 2015 Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Asset Balance Financial Instruments Collateral Received Net Amount Reverse repurchase agreements $ 24,135 — $ 24,135 — $ (24,135 ) — Derivatives 3,393 — 3,393 — — 3,393 Total $ 27,528 — $ 27,528 — $ (24,135 ) $ 3,393 Gross Amounts not Offset in the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Liability Balance Financial Instruments Collateral Pledged Net Amount Derivatives $ 2,426 — $ 2,426 — $ (3,130 ) — Gross Amounts not Offset in the Balance Sheet December 31, 2014 Gross Amounts of Recognized Assets Gross Amounts Offset on the Balance Sheet Net Asset Balance Financial Instruments Collateral Received Net Amount Reverse repurchase agreements $ 45,623 — $ 45,623 — $ (45,623 ) — Derivatives 2,038 — 2,038 — — 2,038 Total $ 47,661 — $ 47,661 — $ (45,623 ) $ 2,038 Gross Amounts not Offset in the Balance Sheet Gross Amounts of Recognized Liabilities Gross Amounts Offset on the Balance Sheet Net Liability Balance Financial Instruments Collateral Pledged Net Amount Derivatives $ 1,888 — $ 1,888 — $ (2,590 ) — |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale at September 30, 2015 and December 31, 2014 . Available-for-sale Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) September 30, 2015 Debt securities— U.S. Government agencies $ 14,917 $ 101 $ (15 ) $ 15,003 U.S. states and political divisions 2,123 170 — 2,293 Trust preferred securities 4,694 — (366 ) 4,328 Corporate debt securities 15,550 123 (1 ) 15,672 Residential mortgage-backed securities-agency 88,889 1,454 (471 ) 89,872 Total $ 126,173 $ 1,848 $ (853 ) $ 127,168 December 31, 2014 Debt securities— U.S. Government agencies $ 15,265 $ 70 $ (115 ) $ 15,220 U.S. states and political divisions 2,158 188 — 2,346 Trust preferred securities 4,675 — (475 ) 4,200 Corporate debt securities 16,150 178 — 16,328 Residential mortgage-backed securities-agency 94,422 1,537 (616 ) 95,343 Total $ 132,670 $ 1,973 $ (1,206 ) $ 133,437 |
Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and fair value of debt securities by contractual maturity at September 30, 2015 . Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-For-Sale Amortized Cost Fair Value (in thousands) Within 1 year $ 7,088 $ 7,120 Over 1 year through 5 years 15,253 15,418 5 years to 10 years 9,481 9,649 Over 10 years 5,462 5,109 37,284 37,296 Mortgage-backed residential securities 88,889 89,872 Total $ 126,173 $ 127,168 |
Continuous Unrealized Loss Position, Fair Value | The following table summarizes available-for-sale securities in an unrealized loss position as of September 30, 2015 and December 31, 2014 . Less than 12 months 12 months or greater Totals Available-For-Sale Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) September 30, 2015 U.S. Government agencies $ — $ — 4,982 $ (15 ) $ 4,982 $ (15 ) U.S. states and political divisions — — — — — — Trust preferred securities — — 4,328 (366 ) 4,328 (366 ) Corporate debt securities 1,415 (1 ) — — 1,415 (1 ) Residential mortgage-backed securities 19,622 (165 ) 17,763 (306 ) 37,385 (471 ) Totals $ 21,037 $ (166 ) $ 27,073 $ (687 ) $ 48,110 $ (853 ) December 31, 2014 U.S. Government agencies $ — $ — 4,883 $ (115 ) $ 4,883 $ (115 ) U.S. states and political divisions — — — — — — Trust preferred securities — — 4,200 (475 ) 4,200 (475 ) Corporate debt securities — — — — — — Residential mortgage-backed securities 15,429 (90 ) 23,311 (526 ) 38,740 (616 ) Totals $ 15,429 $ (90 ) $ 32,394 $ (1,116 ) $ 47,823 $ (1,206 ) |
Schedule of Realized Gain (Loss) | The following table summarizes securities sales activity for the three and nine months ended September 30, 2015 and 2014 . Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Proceeds from sales $ 5,095 $ — $ 5,095 $ 3,411 Gross realized gains $ 10 $ 10 $ 49 Gross realized losses — — — (5 ) Net gains on sales of securities $ 10 $ — $ 10 $ 44 |
Loans and Allowance for Loan 26
Loans and Allowance for Loan and Lease Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio as of September 30, 2015 and December 31, 2014 , is summarized below. September 30, December 31, Commercial loans: (in thousands) Commercial and industrial $ 366,830 $ 365,447 Commercial real estate 440,226 439,071 Construction and land 106,934 82,567 Mortgage warehouse loans 89,816 116,939 Total commercial loans 1,003,806 1,004,024 Residential: Residential mortgages 726 1,320 Home equity 27,186 28,464 Total residential loans 27,912 29,784 Consumer 18,741 9,290 Total loans 1,050,459 1,043,098 Less net deferred fees and other unearned income (4,022 ) (3,385 ) Less allowance for loan losses (11,862 ) (11,421 ) Loans held for investment, net $ 1,034,575 $ 1,028,292 |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | three and nine months ended September 30, 2015 and 2014 . 2015 2014 Three Months Ended September 30, Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 11,365 $ 398 $ 222 $ 11,985 $ 10,200 $ 357 $ 106 $ 10,663 Provision for loan losses (70 ) (65 ) (2 ) (137 ) 635 5 (2 ) 638 Loans charged-off — — — — — — — — Recoveries 14 — — 14 — — — — Total ending allowance balance $ 11,309 $ 333 $ 220 $ 11,862 $ 10,835 $ 362 $ 104 $ 11,301 2015 2014 Nine Months Ended September 30, Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 10,967 $ 347 $ 107 $ 11,421 $ 10,346 $ 356 $ 113 $ 10,815 Provision for loan losses 313 (14 ) 113 412 472 6 (9 ) 469 Loans charged-off — — — — — — — — Recoveries 29 — — 29 17 — — 17 Total ending allowance balance $ 11,309 $ 333 $ 220 $ 11,862 $ 10,835 $ 362 $ 104 $ 11,301 |
Allowance for Credit Losses on Financing Receivables | The following table presents the balance and activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2015 and 2014 . 2015 2014 Three Months Ended September 30, Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 11,365 $ 398 $ 222 $ 11,985 $ 10,200 $ 357 $ 106 $ 10,663 Provision for loan losses (70 ) (65 ) (2 ) (137 ) 635 5 (2 ) 638 Loans charged-off — — — — — — — — Recoveries 14 — — 14 — — — — Total ending allowance balance $ 11,309 $ 333 $ 220 $ 11,862 $ 10,835 $ 362 $ 104 $ 11,301 The balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method is presented in the following table as of September 30, 2015 and December 31, 2014 . September 30, 2015 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 693 $ — $ — $ 693 Collectively evaluated for impairment 10,616 333 220 11,169 Total ending allowance balance $ 11,309 $ 333 $ 220 $ 11,862 Loans: Loans individually evaluated for impairment $ 6,571 $ — $ — $ 6,571 Loans collectively evaluated for impairment 997,235 27,912 18,741 1,043,888 Total ending loans balance $ 1,003,806 $ 27,912 $ 18,741 $ 1,050,459 December 31, 2014 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 885 $ — $ — $ 885 Collectively evaluated for impairment 10,082 347 107 10,536 Total ending allowance balance $ 10,967 $ 347 $ 107 $ 11,421 Loans: Loans individually evaluated for impairment $ 6,601 $ — $ — $ 6,601 Loans collectively evaluated for impairment 997,423 29,784 9,290 1,036,497 Total ending loans balance $ 1,004,024 $ 29,784 $ 9,290 $ 1,043,098 |
Impaired Financing Receivables | The following table presents information on Atlantic Capital’s impaired loans as of September 30, 2015 and December 31, 2014 : As of September 30, 2015 As of December 31, 2014 Unpaid Principal Balance Recorded Investment Related Allowance Average Balance of Recorded Investment Interest Income Recognized Unpaid Principal Balance Recorded Investment Related Allowance Average Interest Income Recognized (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate 1,659 1,659 — 1,659 41 1,661 1,661 — 1,700 56 Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 1,659 $ 1,659 $ — $ 1,659 $ 41 $ 1,661 $ 1,661 $ — $ 1,700 $ 56 Impaired loans with an allowance recorded: Commercial and industrial $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Commercial real estate 4,912 4,912 693 4,904 100 4,940 4,940 885 5,018 136 Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 4,912 $ 4,912 $ 693 $ 4,904 $ 100 $ 4,940 $ 4,940 $ 885 $ 5,018 $ 136 Total impaired loans $ 6,571 $ 6,571 $ 693 $ 6,563 $ 141 $ 6,601 $ 6,601 $ 885 $ 6,718 $ 192 |
Troubled Debt Restructurings on Financing Receivables | As of September 30, 2015 and December 31, 2014 , and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Commercial and Industrial Commercial Real Estate Construction and Land Residential Mortgages Home Equity Mortgage Warehouse Consumer Total (in thousands) September 30, 2015 Pass $ 358,687 $ 428,152 $ 103,328 $ 526 $ 27,076 $ 89,816 $ 18,741 $ 1,026,326 Special Mention 2,307 5,503 3,606 — — — — 11,416 Substandard accruing 5,836 6,571 — 200 110 — — 12,717 Substandard nonaccruing — — — — — — — — Doubtful nonaccruing — — — — — — — — Total $ 366,830 $ 440,226 $ 106,934 $ 726 $ 27,186 $ 89,816 $ 18,741 $ 1,050,459 Commercial and Industrial Commercial Real Estate Construction and Land Residential Mortgages Home Equity Mortgage Warehouse Consumer Total December 31, 2014 Pass $ 351,596 $ 427,200 $ 82,567 $ 1,120 $ 28,404 $ 116,939 $ 9,290 $ 1,017,116 Special Mention 10,724 661 — — — — — 11,385 Substandard accruing 3,127 11,210 — 200 60 — — 14,597 Substandard nonaccruing — — — — — — — — Doubtful nonaccruing — — — — — — — — Total $ 365,447 $ 439,071 $ 82,567 $ 1,320 $ 28,464 $ 116,939 $ 9,290 $ 1,043,098 |
Past Due Financing Receivables | monitors loans by past due status. The following table presents the aging of the recorded investment in past due loans as of September 30, 2015 and December 31, 2014 by class of loans. As of September 30, 2015 Accruing Current 30-89 Days Past Due Accruing 90+ Days Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 366,830 $ — $ — $ — $ 366,830 Commercial real estate 440,226 — — — 440,226 Construction and land 106,934 — — — 106,934 Residential mortgages 726 — — — 726 Home equity 27,186 — — — 27,186 Mortgage warehouse 89,816 — — — 89,816 Consumer 18,741 — — — 18,741 Total Loans $ 1,050,459 $ — $ — $ — $ 1,050,459 As of December 31, 2014 Accruing Current 30-89 Days Past Due Accruing 90+ Days Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 365,447 $ — $ — $ — $ 365,447 Commercial real estate 439,071 — — — 439,071 Construction and land 82,567 — — — 82,567 Residential mortgages 1,320 — — — 1,320 Home equity 28,464 — — — 28,464 Mortgage warehouse 116,939 — — — 116,939 Consumer 9,290 — — — 9,290 Total Loans $ 1,043,098 $ — $ — $ — $ 1,043,098 |
SBA Servicing Rights (Tables)
SBA Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing [Abstract] | |
Changes in the Balance of Servicing Assets | Changes in the balance of servicing assets for the three and nine months ended September 30, 2015 and 2014 are presented in the following table . Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (in thousands) SBA Loan Servicing Rights Beginning carrying value, net $ 1,055 $ 375 $ 782 $ 36 Additions 243 230 603 579 Amortization (39 ) (15 ) (126 ) (25 ) Impairment — — — — Ending carrying value $ 1,259 $ 590 $ 1,259 $ 590 |
Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions | At September 30, 2015, the sensitivity of the fair value of the SBA loan servicing rights to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Asset September 30, 2015 (dollars in thousands) Fair value of retained servicing assets $ 1,285 Weighted average life 7.01 years Prepayment speed: 7.53 % Decline in fair value due to a 10% adverse change $ (36 ) Decline in fair value due to a 20% adverse change $ (70 ) Weighted average discount rate 11.59 % Decline in fair value due to a 100 bps adverse change $ (45 ) Decline in fair value due to a 200 bps adverse change $ (87 ) |
Other Comprehensive Income (L28
Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables present a summary of the changes in accumulated other comprehensive income (loss) balances for the applicable periods. For the Three Months Ended For the Nine Months Ended September 30, 2015 September 30, 2015 Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount (in thousands) Accumulated other comprehensive income beginning of period $ 1,064 $ (407 ) $ 657 $ 986 $ (377 ) $ 609 Unrealized net gains on investment securities available-for-sale 636 (244 ) 392 238 (91 ) 147 Reclassification adjustment for net realized gains on investment securities available-for-sale (10 ) 4 (6 ) (10 ) 4 (6 ) Unrealized net gains on derivatives 847 (324 ) 523 1,323 (507 ) 816 Accumulated other comprehensive income end of period $ 2,537 $ (971 ) $ 1,566 $ 2,537 $ (971 ) $ 1,566 For the Three Months Ended For the Nine Months Ended September 30, 2014 September 30, 2014 Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount Pre-Tax Amount Income Tax (Expense) Benefit After-Tax Amount (in thousands) Accumulated other comprehensive income beginning of period $ 465 $ (174 ) $ 291 $ (2,026 ) $ 760 $ (1,266 ) Unrealized net gains on investment securities available-for-sale (620 ) 232 (388 ) 1,915 (719 ) 1,196 Reclassification adjustment for net realized gains on investment securities available-for-sale — — — (44 ) 17 (27 ) Unrealized net gains on derivatives (115 ) 43 (72 ) (115 ) 43 (72 ) Accumulated other comprehensive income end of period $ (270 ) $ 101 $ (169 ) $ (270 ) $ 101 $ (169 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | The following table represents the earnings per share calculations for the three and nine months ended September 30, 2015 and 2014. Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands, except per share amounts) Net income available to common shareholders $ 2,226 $ 1,986 $ 6,842 $ 5,365 Weighted average shares outstanding Basic 1 13,562,125 13,456,246 13,527,195 13,442,191 Effect of diluted securities: Stock options and warrants 342,270 200,328 339,117 200,328 Diluted 13,904,395 13,656,574 13,866,312 13,642,519 Income per common share: Basic $ 0.16 $ 0.15 $ 0.51 $ 0.40 Diluted $ 0.16 $ 0.15 $ 0.49 $ 0.39 1 Unvested restricted shares are participating securities and included in basic share calculations . |
Derivatives and Hedging (Tables
Derivatives and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of September 30, 2015 and December 31, 2014 (in thousands): Derivatives designated as hedging instruments under ASC 815 September 30, 2015 December 31, 2014 Interest Rate Products Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 50,000 $ 1,089 $ 50,000 $ 219 Derivatives not designated as hedging instruments under ASC 815 September 30, 2015 December 31, 2014 Interest Rate Products Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value Customer swap positions Other assets $ 75,623 $ 2,303 $ 89,606 $ 1,819 Dealer offsets to customer swap positions Other liabilities $ 75,623 $ 2,422 $ 89,606 $ 1,882 Credit risk participation Other liabilities 17,317 4 17,703 6 $ 92,940 $ 2,426 $ 107,309 $ 1,888 The following table reflects the impact to the Consolidated Statements of Income related to derivative contracts for the three and nine months ended September 30, 2015 and 2014 (in thousands): Derivatives in Cash Flow Hedging Relationships Three months ended September 30, Nine months ended September 30, Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) 2015 2014 Location 2015 2014 2015 2014 Location 2015 2014 Interest rate swaps $ 523 $ (72 ) Interest income $ 214 $ 93 $ 817 $ (72 ) Interest income $ 435 $ 93 |
Subordinated Debt (Tables)
Subordinated Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Subordinated debt is summarized as follows. September 30, December 31, 2015 2014 (in thousands Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 $ 50,000 $ — Principal amount of subordinated debt $ 50,000 $ — Less debt issuance costs 774 — Subordinated debt, net $ 49,226 $ — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table represents stock option and warrant activity for the nine months ended September 30, 2015 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Outstanding, December 31, 2014 1,663,500 $ 10.01 Granted — $ — Cancelled — $ — Outstanding, September 30, 2015 1,663,500 $ 10.01 2.41 $ 4,313 Exercisable, September 30, 2015 1,663,500 $ 10.01 2.41 $ 4,313 |
Schedule of Share-based Compensation, Restricted Stock Award Activity | The following table represents restricted stock activity for the nine months ended September 30, 2015 : Shares Weighted Average Grant-Date Fair Value Outstanding, December 31, 2014 132,093 $ 10.84 Granted 60,716 $ 12.59 Vested (51,707 ) $ 10.51 Forfeited — $ — Outstanding, September 30, 2015 141,102 $ 11.71 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities, Measured on Recurring Basis | The following table presents the assets that were measured at fair value on a recurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at September 30, 2015 and December 31, 2014. Fair Value Measurements at September 30, 2015 Using: Level 1 Level 2 Level 3 Total (in thousands) Financial assets Securities available-for-sale— U.S. government agencies $ — $ 15,003 $ — $ 15,003 U.S. states and political subdivisions — 2,293 — 2,293 Trust preferred securities — 4,328 — 4,328 Corporate debt securities — 15,672 — 15,672 Mortgage-backed securities — 89,872 — 89,872 Total securities available-for-sale $ — $ 127,168 $ — $ 127,168 Derivative financial instruments $ — $ 3,393 $ — $ 3,393 Financial liabilities Derivative financial instruments $ — $ 2,426 $ — $ 2.426 Fair Value Measurements at December 31, 2014 Using: Level 1 Level 2 Level 3 Total (in thousands) Financial assets Securities available-for-sale— U.S. government agencies $ — $ 15,220 $ — $ 15,220 U.S. states and political subdivisions — 2,346 — 2,346 Trust preferred securities — 4,200 — 4,200 Corporate debt securities — 16,328 — 16,328 Mortgage-backed securities — 95,343 — 95,343 Total securities available-for-sale $ — $ 133,437 $ — $ 38,094 Derivative financial instruments $ — $ 2,038 $ — $ 2,038 Financial liabilities Derivative financial instruments $ — $ 1,888 $ — $ 1,888 |
Fair Value Measurements, Nonrecurring | The following table presents the assets that were measured at fair value on a nonrecurring basis by level within the fair value hierarchy as reported in the Consolidated Balance Sheets at September 30, 2015 and December 31, 2014 . Level 1 Fair Value Measurement Level 2 Fair Value Measurement Level 3 Fair Value Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,912 $ 4,912 Level 1 Fair Value Measurement Level 2 Fair Value Measurement Level 3 Fair Value Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,940 $ 4,940 SBA Servicing asset — — 782 782 Totals $ — $ — $ 5,722 $ 5,722 |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents the estimated fair values of Atlantic Capital’s financial instruments at September 30, 2015 and December 31, 2014 . Fair Value Measurements at September 30, 2015 Using: Carrying Value Level 1 Level 2 Level 3 Total (in thousands) Financial assets Loans, net $ 1,058,299 $ — $ — $ 1,023,651 $ 1,023,651 Financial liabilities Deposits $ 1,128,608 $ — $ 1,116,046 $ — $ 1,116,046 Subordinated debt 49,226 49,226 49,226 FHLB advances 43,000 — 42,994 — 42,994 Fair Value Measurements at December 31, 2014 Using: Carrying Value Level 1 Level 2 Level 3 Total (in thousands) Financial assets Loans, net $ 1,051,134 $ — $ — $ 1,018,130 $ 1,018,130 Financial liabilities Deposits $ 1,105,845 $ — $ 1,092,527 $ — $ 1,092,527 FHLB advances 56,517 — 56,678 — 56,678 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Exposure to Credit Risk By Commitment | ’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit at September 30, 2015 and December 31, 2014 was as follows: September 30, December 31, 2014 (in thousands) Commitments to extend credit $ 444,983 $ 389,445 Standby letters of credit 9,274 12,316 $ 454,257 $ 401,761 |
Accounting Policies and Basis35
Accounting Policies and Basis of Presentation - Narrative (Details) - Subsequent Event - First Security Group, Inc | Oct. 31, 2015USD ($)shares |
Business Acquisition [Line Items] | |
Shares to be issued as partial consideration | 8,790,193 |
Consideration in the form of cash | $ | $ 47,097,708 |
Balance Sheet Offsetting (Amoun
Balance Sheet Offsetting (Amounts Outstanding Under Reverse Repurchase Agreements and Derivative Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Gross Amounts of Recognized Assets | ||
Reverse repurchase agreements | $ 24,135 | $ 45,623 |
Total | 27,528 | 47,661 |
Net Asset Balance | ||
Reverse repurchase agreements | 24,135 | 45,623 |
Derivatives | 3,393 | 2,038 |
Total | 27,528 | 47,661 |
Financial Instruments | ||
Reverse repurchase agreements | 0 | 0 |
Derivatives | 0 | 0 |
Total | 0 | 0 |
Collateral Received | ||
Reverse repurchase agreements | (24,135) | (45,623) |
Derivatives | 0 | 0 |
Total | (24,135) | (45,623) |
Net Amount | ||
Reverse repurchase agreements | 0 | 0 |
Derivatives | 3,393 | 2,038 |
Total | 3,393 | 2,038 |
Derivative Asset, Fair Value, Gross Asset | 3,393 | 2,038 |
Gross Amounts of Recognized Liabilities | 2,426 | 1,888 |
Net Liability Balance | 2,426 | 1,888 |
Financial Instruments | 0 | 0 |
Collateral Pledged | (3,130) | (2,590) |
Net Amount | $ 0 | $ 0 |
Securities (Narrative) (Details
Securities (Narrative) (Details) $ in Millions | Sep. 30, 2015USD ($)security | Dec. 31, 2014USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale securities in unrealized loss positions (security) | 29 | |
Available-for-sale Securities Pledged as Collateral | $ | $ 29.9 | $ 17.1 |
Securities (Securities Availabl
Securities (Securities Available-For-Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Total | $ 126,173 | $ 132,670 |
Gross Unrealized Gains | 1,848 | 1,973 |
Gross Unrealized Losses | (853) | (1,206) |
Fair Value | 127,168 | 133,437 |
U.S. Government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 14,917 | 15,265 |
Gross Unrealized Gains | 101 | 70 |
Gross Unrealized Losses | (15) | (115) |
Fair Value | 15,003 | 15,220 |
U.S. states and political subdivisions | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 2,123 | 2,158 |
Gross Unrealized Gains | 170 | 188 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 2,293 | 2,346 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 4,694 | 4,675 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (366) | (475) |
Fair Value | 4,328 | 4,200 |
Corporate debt securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 15,550 | 16,150 |
Gross Unrealized Gains | 123 | 178 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 15,672 | 16,328 |
Residential mortgage-backed securities-agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 88,889 | 94,422 |
Gross Unrealized Gains | 1,454 | 1,537 |
Gross Unrealized Losses | (471) | (616) |
Fair Value | $ 89,872 | $ 95,343 |
Securities (Maturities) (Detail
Securities (Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized Cost | ||
Within 1 year | $ 7,088 | |
Over 1 year through 5 years | 15,253 | |
5 years to 10 years | 9,481 | |
Over 10 years | 5,462 | |
Total with Single Maturity Date | 37,284 | |
Mortgage-backed residential securities | 88,889 | |
Total | 126,173 | $ 132,670 |
Fair Value | ||
Within 1 year | 7,120 | |
Over 1 year through 5 years | 15,418 | |
5 years to 10 years | 9,649 | |
Over 10 years | 5,109 | |
Total with Single Maturity Date | 37,296 | |
Mortgage-backed residential securities | 89,872 | |
Total | $ 127,168 | $ 133,437 |
Securities (Unrealized Losses -
Securities (Unrealized Losses - Available-For-Sale) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | $ 21,037 | $ 15,429 |
12 months or greater, fair value | 27,073 | 32,394 |
Total fair value | 48,110 | 47,823 |
Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months, unrealized losses | (166) | (90) |
12 months or greater, unrealized losses | (687) | (1,116) |
Total unrealized losses | (853) | (1,206) |
U.S. Government agencies | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 0 | 0 |
12 months or greater, fair value | 4,982 | 4,883 |
Total fair value | 4,982 | 4,883 |
Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months, unrealized losses | 0 | 0 |
12 months or greater, unrealized losses | (15) | (115) |
Total unrealized losses | (15) | (115) |
U.S. states and political divisions | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 0 | 0 |
12 months or greater, fair value | 0 | 0 |
Total fair value | 0 | 0 |
Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months, unrealized losses | 0 | 0 |
12 months or greater, unrealized losses | 0 | 0 |
Total unrealized losses | 0 | 0 |
Trust preferred securities | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 0 | 0 |
12 months or greater, fair value | 4,328 | 4,200 |
Total fair value | 4,328 | 4,200 |
Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months, unrealized losses | 0 | 0 |
12 months or greater, unrealized losses | (366) | (475) |
Total unrealized losses | (366) | (475) |
Corporate debt securities | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 1,415 | 0 |
12 months or greater, fair value | 0 | 0 |
Total fair value | 1,415 | 0 |
Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months, unrealized losses | (1) | 0 |
12 months or greater, unrealized losses | 0 | 0 |
Total unrealized losses | (1) | 0 |
Residential mortgage-backed securities-agency | ||
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, fair value | 19,622 | 15,429 |
12 months or greater, fair value | 17,763 | 23,311 |
Total fair value | 37,385 | 38,740 |
Continuous Unrealized Loss Position, Unrealized Losses [Abstract] | ||
Less than 12 months, unrealized losses | (165) | (90) |
12 months or greater, unrealized losses | (306) | (526) |
Total unrealized losses | $ (471) | $ (616) |
Securities (Sales) (Details)
Securities (Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 5,095 | $ 0 | $ 5,095 | $ 3,411 |
Gross realized gains | 10 | 10 | 49 | |
Gross realized losses | 0 | 0 | 0 | (5) |
Net gains on sales of securities | $ 10 | $ 0 | $ 10 | $ 44 |
Loans and Allowance for Loan 42
Loans and Allowance for Loan and Lease Losses (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Loans and Leases Receivable Disclosure [Abstract] | ||
Troubled debt restructurings | $ 6.6 | $ 6.6 |
Loans pledged as collateral | $ 176.3 | $ 209.1 |
Loans and Allowance for Loan 43
Loans and Allowance for Loan and Lease Losses (Summary of Loans) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 1,050,459 | $ 1,043,098 | ||||
Less net deferred fees and other unearned income | (4,022) | (3,385) | ||||
Less allowance for loan losses | (11,862) | $ (11,985) | (11,421) | $ (11,301) | $ (10,663) | $ (10,815) |
Loans, net | 1,034,575 | 1,028,292 | ||||
Commercial loans: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 1,003,806 | 1,004,024 | ||||
Less allowance for loan losses | (11,309) | (11,365) | (10,967) | (10,835) | (10,200) | (10,346) |
Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 366,830 | 365,447 | ||||
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 440,226 | 439,071 | ||||
Construction and land | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 106,934 | 82,567 | ||||
Mortgage warehouse loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 89,816 | 116,939 | ||||
Residential: | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 27,912 | 29,784 | ||||
Less allowance for loan losses | (333) | (398) | (347) | (362) | (357) | (356) |
Residential mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 726 | 1,320 | ||||
Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 27,186 | 28,464 | ||||
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 18,741 | 9,290 | ||||
Less allowance for loan losses | $ (220) | $ (222) | $ (107) | $ (104) | $ (106) | $ (113) |
Loans and Allowance for Loan 44
Loans and Allowance for Loan and Lease Losses (Allowance Rollforward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 11,985 | $ 10,663 | $ 11,421 | $ 10,815 |
Provision for loan losses | 137 | (638) | (412) | (469) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 14 | 0 | 29 | 17 |
Total ending allowance balance | 11,862 | 11,301 | 11,862 | 11,301 |
Commercial loans: | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 11,365 | 10,200 | 10,967 | 10,346 |
Provision for loan losses | 70 | (635) | (313) | (472) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 14 | 0 | 29 | 17 |
Total ending allowance balance | 11,309 | 10,835 | 11,309 | 10,835 |
Residential: | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 398 | 357 | 347 | 356 |
Provision for loan losses | 65 | (5) | 14 | (6) |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | 333 | 362 | 333 | 362 |
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 222 | 106 | 107 | 113 |
Provision for loan losses | 2 | 2 | (113) | 9 |
Loans charged-off | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Total ending allowance balance | $ 220 | $ 104 | $ 220 | $ 104 |
Loans and Allowance for Loan 45
Loans and Allowance for Loan and Lease Losses (Allowance Additional Information) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Associated Allowance, Individually evaluated | $ 693 | $ 885 |
Associated Allowance, Collectively evaluated | 11,169 | 10,536 |
Associated Allowance, Total evaluated | 11,862 | 11,421 |
Carrying Value, Individually evaluated | 6,571 | 6,601 |
Carrying Value, Collectively evaluated | 1,043,888 | 1,036,497 |
Loans | 1,050,459 | 1,043,098 |
Commercial loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Associated Allowance, Individually evaluated | 693 | 885 |
Associated Allowance, Collectively evaluated | 10,616 | 10,082 |
Associated Allowance, Total evaluated | 11,309 | 10,967 |
Carrying Value, Individually evaluated | 6,571 | 6,601 |
Carrying Value, Collectively evaluated | 997,235 | 997,423 |
Loans | 1,003,806 | 1,004,024 |
Residential: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Associated Allowance, Individually evaluated | 0 | 0 |
Associated Allowance, Collectively evaluated | 333 | 347 |
Associated Allowance, Total evaluated | 333 | 347 |
Carrying Value, Individually evaluated | 0 | 0 |
Carrying Value, Collectively evaluated | 27,912 | 29,784 |
Loans | 27,912 | 29,784 |
Consumer | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Associated Allowance, Individually evaluated | 0 | 0 |
Associated Allowance, Collectively evaluated | 220 | 107 |
Associated Allowance, Total evaluated | 220 | 107 |
Carrying Value, Individually evaluated | 0 | 0 |
Carrying Value, Collectively evaluated | 18,741 | 9,290 |
Loans | $ 18,741 | $ 9,290 |
Loans and Allowance for Loan 46
Loans and Allowance for Loan and Lease Losses (Impaired Loans) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | $ 1,659 | $ 1,661 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 4,912 | 4,940 |
Impaired loans, Unpaid Principal Balance | 6,571 | 6,601 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 1,659 | 1,661 |
Impaired loans with an allowance recorded, Recorded Investment | 4,912 | 4,940 |
Impaired loans, Recorded Investment | 6,571 | 6,601 |
Impaired loans, Related Allowance | 693 | 885 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 1,659 | 1,700 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 4,904 | 5,018 |
Impaired loans, Average Balance of Recorded Investment | 6,563 | 6,718 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 41 | 56 |
Impaired loans with an allowance recorded, Interest Income Recognized | 100 | 136 |
Impaired loans, Income Recognized | 141 | 192 |
Commercial and industrial | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 0 |
Impaired loans, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 0 | 0 |
Impaired loans with an allowance recorded, Interest Income Recognized | 0 | 0 |
Commercial real estate | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | 1,659 | 1,661 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 4,912 | 4,940 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 1,659 | 1,661 |
Impaired loans with an allowance recorded, Recorded Investment | 4,912 | 4,940 |
Impaired loans, Related Allowance | 693 | 885 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 1,659 | 1,700 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 4,904 | 5,018 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 41 | 56 |
Impaired loans with an allowance recorded, Interest Income Recognized | 100 | 136 |
Construction and land | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 0 |
Impaired loans, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 0 | 0 |
Impaired loans with an allowance recorded, Interest Income Recognized | 0 | 0 |
Residential: | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 0 |
Impaired loans, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 0 | 0 |
Impaired loans with an allowance recorded, Interest Income Recognized | 0 | 0 |
Home equity | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 0 |
Impaired loans, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 0 | 0 |
Impaired loans with an allowance recorded, Interest Income Recognized | 0 | 0 |
Mortgage warehouse loans | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 0 |
Impaired loans, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 0 | 0 |
Impaired loans with an allowance recorded, Interest Income Recognized | 0 | 0 |
Consumer | ||
Impaired Financing Receivable, Unpaid Principal Balance [Abstract] | ||
Impaired loans with no related allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired loans with an allowance recorded, Unpaid Principal Balance | 0 | 0 |
Impaired Financing Receivable, Recorded Investment [Abstract] | ||
Impaired loans with no related allowance, Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Recorded Investment | 0 | 0 |
Impaired loans, Related Allowance | 0 | 0 |
Impaired Financing Receivable, Average Recorded Investment [Abstract] | ||
Impaired loans with no related allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired loans with an allowance recorded, Average Balance of Recorded Investment | 0 | 0 |
Impaired Financing Receivable, Interest Income, Accrual Method [Abstract] | ||
Impaired loans with no related allowance recorded, Interest Income Recognized | 0 | 0 |
Impaired loans with an allowance recorded, Interest Income Recognized | $ 0 | $ 0 |
Loans and Allowance for Loan 47
Loans and Allowance for Loan and Lease Losses (Risk Category of Loan by Class of Loan) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | $ 1,050,459 | $ 1,043,098 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 366,830 | 365,447 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 440,226 | 439,071 |
Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 106,934 | 82,567 |
Residential: | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 726 | 1,320 |
Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 27,186 | 28,464 |
Mortgage warehouse loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 89,816 | 116,939 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 18,741 | 9,290 |
Pass [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 1,026,326 | 1,017,116 |
Pass [Member] | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 358,687 | 351,596 |
Pass [Member] | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 428,152 | 427,200 |
Pass [Member] | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 103,328 | 82,567 |
Pass [Member] | Residential: | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 526 | 1,120 |
Pass [Member] | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 27,076 | 28,404 |
Pass [Member] | Mortgage warehouse loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 89,816 | 116,939 |
Pass [Member] | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 18,741 | 9,290 |
Special Mention [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 11,416 | 11,385 |
Special Mention [Member] | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 2,307 | 10,724 |
Special Mention [Member] | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 5,503 | 661 |
Special Mention [Member] | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 3,606 | 0 |
Special Mention [Member] | Residential: | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Special Mention [Member] | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Special Mention [Member] | Mortgage warehouse loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Special Mention [Member] | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Accruing Loans [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 12,717 | 14,597 |
Accruing Loans [Member] | Substandard [Member] | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 5,836 | 3,127 |
Accruing Loans [Member] | Substandard [Member] | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 6,571 | 11,210 |
Accruing Loans [Member] | Substandard [Member] | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Accruing Loans [Member] | Substandard [Member] | Residential: | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 200 | 200 |
Accruing Loans [Member] | Substandard [Member] | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 110 | 60 |
Accruing Loans [Member] | Substandard [Member] | Mortgage warehouse loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Accruing Loans [Member] | Substandard [Member] | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | Residential: | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | Mortgage warehouse loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Substandard [Member] | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | Residential: | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | Mortgage warehouse loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | 0 |
Nonaccruing Loans [Member] | Doubtful [Member] | Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | $ 0 | $ 0 |
Loans and Allowance for Loan 48
Loans and Allowance for Loan and Lease Losses (Financing Receivables Past Due) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 1,050,459 | $ 1,043,098 |
Nonaccruing | 0 | 0 |
Loans | 1,050,459 | 1,043,098 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 366,830 | 365,447 |
Nonaccruing | 0 | 0 |
Loans | 366,830 | 365,447 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 440,226 | 439,071 |
Nonaccruing | 0 | 0 |
Loans | 440,226 | 439,071 |
Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 106,934 | 82,567 |
Nonaccruing | 0 | 0 |
Loans | 106,934 | 82,567 |
Residential: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 726 | 1,320 |
Nonaccruing | 0 | 0 |
Loans | 726 | 1,320 |
Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 27,186 | 28,464 |
Nonaccruing | 0 | 0 |
Loans | 27,186 | 28,464 |
Mortgage warehouse loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 89,816 | 116,939 |
Nonaccruing | 0 | 0 |
Loans | 89,816 | 116,939 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 18,741 | 9,290 |
Nonaccruing | 0 | 0 |
Loans | 18,741 | 9,290 |
Financing Receivables 30 To 89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables 30 To 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables 30 To 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables 30 To 89 Days Past Due | Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables 30 To 89 Days Past Due | Residential: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables 30 To 89 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables 30 To 89 Days Past Due | Mortgage warehouse loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables 30 To 89 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Construction and land | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential: | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Mortgage warehouse loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 0 | $ 0 |
SBA Servicing Rights (Narrative
SBA Servicing Rights (Narrative) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Transfers and Servicing [Abstract] | ||
Loans sold and serviced | $ 52.9 | $ 30.6 |
SBA Servicing Rights (Changes i
SBA Servicing Rights (Changes in the Balance) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
SBA Loan Servicing Rights | ||||
Beginning carrying value | $ 1,055 | $ 375 | $ 782 | $ 36 |
Additions | 243 | 230 | 603 | 579 |
Amortization | (39) | (15) | (126) | (25) |
Impairment | 0 | 0 | 0 | 0 |
Ending carrying value | $ 1,259 | $ 590 | $ 1,259 | $ 590 |
SBA Servicing Rights (Sensitivi
SBA Servicing Rights (Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Transfers and Servicing [Abstract] | |
Fair value of retained servicing assets | $ 1,285 |
Weighted average life | 7 years 4 days |
Prepayment speed: | 7.53% |
Decline in fair value due to a 10% adverse change | $ (36) |
Decline in fair value due to a 20% adverse change | $ (70) |
Weighted average discount rate | 11.59% |
Decline in fair value due to a 100 bps adverse change | $ (45) |
Decline in fair value due to a 200 bps adverse change | $ (87) |
Other Comprehensive Income (L52
Other Comprehensive Income (Loss) (Summary of Changes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pre-Tax Amount | ||||
Accumulated other comprehensive income beginning of period | $ 1,064 | $ 465 | $ 986 | $ (2,026) |
Unrealized net gains on investment securities available-for-sale | 636 | (620) | 238 | 1,915 |
Reclassification adjustment for net realized gains on investment securities available-for-sale | (10) | 0 | (10) | (44) |
Unrealized net gains on derivatives | 847 | (115) | 1,323 | (115) |
Accumulated other comprehensive income end of period | 2,537 | (270) | 2,537 | (270) |
Income Tax (Expense) Benefit | ||||
Accumulated other comprehensive income beginning of period | (407) | (174) | (377) | 760 |
Unrealized net gains on investment securities available-for-sale | (244) | 232 | (91) | (719) |
Reclassification adjustment for net realized gains on investment securities available-for-sale | 4 | 0 | 4 | 17 |
Unrealized net gains on derivatives | (324) | 43 | (507) | 43 |
Accumulated other comprehensive income end of period | (971) | 101 | (971) | 101 |
After-Tax Amount | ||||
Accumulated other comprehensive income beginning of period | 657 | 291 | 609 | (1,266) |
Unrealized net gains on investment securities available-for-sale | 392 | (388) | 147 | 1,196 |
Reclassification adjustment for net realized gains on investment securities available-for-sale | (6) | 0 | (6) | (27) |
Unrealized net gains on derivatives | 523 | (72) | 816 | (72) |
Accumulated other comprehensive income end of period | $ 1,566 | $ (169) | $ 1,566 | $ (169) |
Earnings Per Common Share (Narr
Earnings Per Common Share (Narrative) (Details) - $ / shares | Sep. 30, 2015 | Mar. 24, 2015 | Mar. 23, 2015 | Dec. 31, 2014 |
Earnings Per Share [Abstract] | ||||
Shares Authorized, Total | 110,000,000 | |||
Preferred stock authorized (in shares) | 10,000,000 | |||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |
Common stock, par value (in dollars per share) | $ 0 | $ 0 | $ 1 | $ 0 |
Common stock issued (in shares) | 13,661,967 | 13,497,118 | ||
Common stock outstanding (in shares) | 13,562,125 | 13,453,820 |
Earnings Per Common Share (Comp
Earnings Per Common Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,226 | $ 1,986 | $ 6,842 | $ 5,365 |
Weighted average shares outstanding | ||||
Basic (in shares) | 13,562,125 | 13,456,246 | 13,527,195 | 13,442,191 |
Effect of diluted securities: | ||||
Stock options and warrants (in shares) | 342,270 | 200,328 | 339,117 | 200,328 |
Diluted (in shares) | 13,904,000 | 13,657,000 | 13,866,000 | 13,643,000 |
Income per common share: | ||||
Basic (in dollars per share) | $ 0.16 | $ 0.15 | $ 0.51 | $ 0.40 |
Diluted (in dollars per share) | $ 0.16 | $ 0.15 | $ 0.49 | $ 0.39 |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional Amount | $ 92,940 | $ 107,309 |
Expected reclassification from AOCI in the next twelve months | 462 | |
Collateral posted | 3,100 | 2,600 |
Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 17,317 | 17,703 |
Swap | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | 151,246 | 179,212 |
Swap | Not Designated as Hedging Instrument | Other Assets | ||
Derivative [Line Items] | ||
Notional Amount | 75,623 | 89,606 |
Swap | Not Designated as Hedging Instrument | Other Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 75,623 | 89,606 |
Cash Flow Hedging | Designated as Hedging Instrument | Other Assets | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | $ 50,000 | $ 50,000 |
Derivatives and Hedging (Deriva
Derivatives and Hedging (Derivative Contracts and Credit Risk Participation Agreements) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Notional Amount | $ 92,940 | $ 107,309 |
Fair Value | 2,426 | 1,888 |
Not Designated as Hedging Instrument | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 151,246 | 179,212 |
Other Assets | Designated as Hedging Instrument | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 50,000 | 50,000 |
Fair Value | 1,089 | 219 |
Other Assets | Not Designated as Hedging Instrument | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 75,623 | 89,606 |
Fair Value | 2,303 | 1,819 |
Other Liabilities | Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Notional Amount | 17,317 | 17,703 |
Fair Value | 4 | 6 |
Other Liabilities | Not Designated as Hedging Instrument | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 75,623 | 89,606 |
Fair Value | $ 2,422 | $ 1,882 |
Derivatives and Hedging (Impact
Derivatives and Hedging (Impact to Consolidated Statements of Income Related to Derivative Contracts) (Details) - Cash Flow Hedging - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 523 | $ (72) | $ 817 | $ (72) |
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) | $ 214 | $ 93 | $ 435 | $ 93 |
Subordinated Debt (Narrative) (
Subordinated Debt (Narrative) (Details) - Subordinated Debt - USD ($) | Sep. 28, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 50,000,000 | $ 0 | |
Maturity, more than | 5 years | ||
6.25% Subordinated Note, Due September 2020 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 50,000,000 | $ 50,000,000 | $ 0 |
Debt instrument redemption price | 100.00% | ||
Period One [Member] | 6.25% Subordinated Note, Due September 2020 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.25% | ||
Period Two [Member] | 6.25% Subordinated Note, Due September 2020 | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 468.00% |
Subordinated Debt (Schedule of
Subordinated Debt (Schedule of Subordinated Debt) (Details) - USD ($) | Sep. 30, 2015 | Sep. 28, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 49,226,000 | $ 0 | |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | 50,000,000 | 0 | |
Less debt issuance costs | 774,000 | 0 | |
Long-term debt | 49,226,000 | 0 | |
Subordinated Debt | 6.25% Subordinated Note, Due September 2020 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 50,000,000 | $ 50,000,000 | $ 0 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted in period (shares) | 0 | 0 | |||
Share based compensation expense | $ 0 | $ 20,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options and Restricted Stock, Vested, Weighted Average Grant Date Fair Value | $ 10.51 | ||||
Warrant | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Warrants outstanding (shares) | 588,000 | 588,000 | 588,000 | ||
Share price (usd per share) | $ 10 | $ 10 | $ 10 | ||
2006 Stock Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares authorized (shares) | 2,000,000 | 2,000,000 | |||
Number of additional shares authorized (shares) | 525,000 | ||||
Award vesting period | 3 years | ||||
Term of award | 10 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share based compensation expense | $ 189,000 | $ 104,000 | $ 503,000 | $ 351,000 | |
Compensation cost not yet recognized | $ 850,000 | $ 850,000 | |||
Compensation cost not yet recognized, period for recognition | 1 year 9 months 4 days |
Share-Based Compensation (Stock
Share-Based Compensation (Stock Option Activity) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 1,663,500 | |
Granted (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | |
Outstanding, end of period (in shares) | 1,663,500 | |
Exercisable, end of period (in shares) | 1,663,500 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding, weighted average exercise price, beginning of period (dollars per share) | $ 10.01 | |
Granted, weighted average exercise price (dollars per share) | 0 | |
Forfeited, weighted average exercise price (dollars per share) | 0 | |
Outstanding, weighted average exercise price, end of period (dollars per share) | 10.01 | |
Exercisable, weighted average exercise price, end of period (dollars per share) | $ 10.01 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Outstanding, weighted average remaining contractual term, end of period (in years) | 2 years 4 months 28 days | |
Exercisable, weighted average remaining contractual term, end of period (in years) | 2 years 4 months 28 days | |
Outstanding, aggregate intrinsic value, end of period | $ 4,313 | |
Exercisable, aggregate intrinsic value, end of period | $ 4,313 |
Share-Based Compensation (Restr
Share-Based Compensation (Restricted Stock Activity) (Details) | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options and Restricted Stock, Vested, Weighted Average Grant Date Fair Value | $ 10.51 |
Restricted Stock | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, beginning of period (in shares) | shares | 132,093 |
Granted (in shares) | shares | 60,716 |
Vested (in shares) | shares | (51,707) |
Forfeited (in shares) | shares | 0 |
Nonvested, end of period (in shares) | shares | 141,102 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted average grant date fair value, nonvested, beginning of period (dollars per share) | $ 10.84 |
Weighted average grant date fair value, granted (dollars per share) | 12.59 |
Weighted average grant date fair value, forfeited (dollars per share) | 0 |
Weighted average grant date fair value, nonvested, end of period (dollars per share) | $ 11.71 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Dec. 31, 2014 | Sep. 30, 2015 | |
SBA Servicing Asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of servicing asset | $ 7,000,000 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements Recurring) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | $ 127,168 | $ 133,437 |
Derivative financial assets | 3,393 | 2,038 |
Derivative financial liabilities | 2,426 | 1,888 |
Fair Value | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 127,168 | 38,094 |
Derivative financial assets | 3,393 | 2,038 |
Derivative financial liabilities | 2 | 1,888 |
Fair Value | Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Derivative financial assets | 0 | 0 |
Derivative financial liabilities | 0 | 0 |
Fair Value | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 127,168 | 133,437 |
Derivative financial assets | 3,393 | 2,038 |
Derivative financial liabilities | 2 | 1,888 |
Fair Value | Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Derivative financial assets | 0 | 0 |
Derivative financial liabilities | 0 | 0 |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 15,003 | 15,220 |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 15,003 | 15,220 |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 2,293 | 2,346 |
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 2,293 | 2,346 |
Fair Value | U.S. states and political subdivisions | Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 4,328 | 4,200 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 4,328 | 4,200 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 15,672 | 16,328 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 15,672 | 16,328 |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 89,872 | 95,343 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | 0 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 89,872 | 95,343 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurements (Fair65
Fair Value Measurements (Fair Value Measurements Nonrecurring) (Details) - Fair Value - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 5,722 | |
Impaired Loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,912 | 4,940 |
Impaired Loans | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Impaired Loans | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Impaired Loans | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,912 | 4,940 |
SBA Servicing Asset | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 782 | |
SBA Servicing Asset | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
SBA Servicing Asset | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
SBA Servicing Asset | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 782 | |
Nonperforming Financing Receivable, Repossesions and Real Estate Acquired in Satisfaction of Debt | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Nonperforming Financing Receivable, Repossesions and Real Estate Acquired in Satisfaction of Debt | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Nonperforming Financing Receivable, Repossesions and Real Estate Acquired in Satisfaction of Debt | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 5,722 |
Fair Value Measurements (Estima
Fair Value Measurements (Estimated Fair Value and Carrying Value Summary) (Details) - Fair value, measurements, recurring - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loans, net | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $ 1,058,299 | $ 1,051,134 |
Loans, net | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,023,651 | 1,018,130 |
Loans, net | Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Loans, net | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 0 | 0 |
Loans, net | Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 1,023,651 | 1,018,130 |
Deposits | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 1,128,608 | 1,105,845 |
Deposits | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 1,116,046 | 1,092,527 |
Deposits | Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 0 | 0 |
Deposits | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 1,116,046 | 1,092,527 |
Deposits | Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 0 | 0 |
Subordinated debt | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 49,226 | |
Subordinated debt | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | $ 49,226 | |
Subordinated debt | Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | ||
Subordinated debt | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | $ 49,226 | |
FHLB advances | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 43,000 | 56,517 |
FHLB advances | Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 42,994 | 56,678 |
FHLB advances | Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 0 | 0 |
FHLB advances | Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | 42,994 | 56,678 |
FHLB advances | Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial liabilities | $ 0 | $ 0 |
Commitments and Contingencies67
Commitments and Contingencies (Exposure to Credit Risk) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Loss Contingencies [Line Items] | ||
Maximum credit risk exposure | $ 454,257 | $ 401,761 |
Commitments to extend credit | ||
Loss Contingencies [Line Items] | ||
Maximum credit risk exposure | 444,983 | 389,445 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Maximum credit risk exposure | $ 9,274 | $ 12,316 |
Mergers and Acquisitions (Detai
Mergers and Acquisitions (Details) | Oct. 31, 2015USD ($)branch$ / sharesshares | Oct. 29, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Oct. 26, 2015electionshares |
Business Acquisition [Line Items] | |||||||
Provision (credit) for loan losses | $ (137,000) | $ 638,000 | $ 412,000 | $ 469,000 | |||
Subsequent Event | First Security Group, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Share Price, For Cash Elections and For No Elections Made | $ / shares | $ 2.35 | ||||||
Business Acquisition, Share Price, For Stock Elections | $ / shares | $ 0.39 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans Receivable Acquired | $ 857,000,000 | ||||||
Liabilities assumed | $ 968,000,000 | ||||||
Number of elections | election | 56,146,402 | ||||||
Cash consideration, number of elections | election | 6,737,774 | ||||||
Shares with no elections | shares | 3,913,748 | ||||||
Common stock exchanged for cash, number of shares | shares | 20,041,578 | ||||||
Share consideration per share of stock | shares | 0.157 | ||||||
Merger-related costs | $ 718,000 | $ 1,980,000 | |||||
Consideration in the form of cash | $ 47,097,708 | ||||||
Georgia and Tennessee | Subsequent Event | First Security Group, Inc | |||||||
Business Acquisition [Line Items] | |||||||
Number of branches | branch | 25 | ||||||
Sale to Third Party [Member] | Stone Point [Member] | Subsequent Event | |||||||
Business Acquisition [Line Items] | |||||||
Common stock outstanding (in shares) | shares | 1,984,127 | ||||||
Common stock, par value (in dollars per share) | $ / shares | $ 12.60 | ||||||
Common stock, value, outstanding | $ 25,000,000 |