Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | ATLANTIC CAPITAL BANCSHARES, INC. | |
Entity Central Index Key | 0001461755 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 21,888,362 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
ASSETS | |||
Cash and due from banks | $ 42,577 | $ 42,895 | |
Interest-bearing deposits in banks | 27,167 | 216,040 | |
Other short-term investments | 9,457 | ||
Cash and cash equivalents | 69,744 | 268,392 | |
Investment securities available for sale | 286,785 | 402,486 | |
Investment securities held to maturity (fair value $42,740 and $0, respectively) | 42,863 | ||
Other investments | 31,360 | 29,236 | |
Loans held for sale | 916 | 5,889 | |
Loans held for sale - discontinued operations | [1] | 373,030 | |
Loans held for investment | 1,835,673 | 1,728,073 | |
Less: Allowance for loan losses | (18,080) | (17,851) | |
Loans held for investment, net | 1,817,593 | 1,710,222 | |
Premises held for sale - discontinued operations | [1] | 7,722 | |
Premises and equipment, net | 19,688 | 9,779 | |
Bank owned life insurance | 66,047 | 65,149 | |
Goodwill - discontinued operations | [1] | 4,555 | |
Goodwill - continuing operations | [1] | 19,925 | 17,135 |
Other intangibles, net | 3,112 | 4,388 | |
Other real estate owned | 278 | 874 | |
Other assets | 51,887 | 56,583 | |
Total assets | 2,410,198 | 2,955,440 | |
Deposits: | |||
Noninterest-bearing demand | 599,657 | 602,252 | |
Interest-bearing checking | 240,427 | 252,490 | |
Savings | 1,081 | 725 | |
Money market | 921,133 | 987,183 | |
Time | 30,782 | 10,623 | |
Brokered deposits | 61,192 | 99,241 | |
Deposits to be assumed - discontinued operations | [1] | 585,429 | |
Total deposits | 1,854,272 | 2,537,943 | |
Federal funds purchased | 57,000 | ||
Securities sold under agreements to repurchase - discontinued operations | [1] | 6,220 | |
Federal Home Loan Bank borrowings | 76,000 | ||
Long-term debt | 49,831 | 49,704 | |
Other liabilities | 44,384 | 37,920 | |
Total liabilities | 2,081,487 | 2,631,787 | |
SHAREHOLDERS’ EQUITY | |||
Preferred Stock, no par value - 10,000,000 shares authorized; no shares issued and outstanding as of September 30, 2019 and December 31, 2018 | |||
Common stock, no par value - 100,000,000 shares authorized; 22,193,761 and 25,290,419 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 237,687 | 291,771 | |
Retained earnings | 84,529 | 42,187 | |
Accumulated other comprehensive income (loss) | 6,495 | (10,305) | |
Total shareholders’ equity | 328,711 | 323,653 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,410,198 | $ 2,955,440 | |
[1] | Assets and liabilities related to the Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Investment securities held-to-maturity, fair value | $ 42,740 | $ 0 |
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock issued (in shares) | 0 | 0 |
Preferred stock outstanding (in shares) | 0 | 0 |
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 22,193,761 | 25,290,419 |
Common stock outstanding (in shares) | 22,193,761 | 25,290,419 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME | ||||
Loans, including fees | $ 23,541 | $ 20,117 | $ 69,847 | $ 57,358 |
Investment securities | 2,176 | 2,789 | 7,146 | 8,068 |
Interest and dividends on other interest-earning assets | 803 | 1,111 | 2,322 | 2,706 |
Total interest income | 26,520 | 24,017 | 79,315 | 68,132 |
INTEREST EXPENSE | ||||
Interest on deposits | 5,223 | 3,182 | 15,502 | 8,321 |
Interest on Federal Home Loan Bank advances | 390 | 637 | 660 | 1,912 |
Interest on federal funds purchased and securities sold under agreements to repurchase | 99 | 77 | 385 | 244 |
Interest on long-term debt | 824 | 824 | 2,471 | 2,476 |
Total interest expense | 6,536 | 4,720 | 19,018 | 12,953 |
NET INTEREST INCOME BEFORE PROVISION FOR LOAN LOSSES | 19,984 | 19,297 | 60,297 | 55,179 |
Provision for loan losses | 413 | 845 | 1,925 | 1,444 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 19,571 | 18,452 | 58,372 | 53,735 |
NONINTEREST INCOME | ||||
Service charges | 925 | 804 | 2,589 | 2,339 |
Gain (loss) on sales of securities available-for-sale | 253 | 907 | (2) | |
Gain (loss) on sales of other assets | 140 | 58 | 127 | (154) |
Trust income | 1,025 | |||
Derivatives income (loss) | (293) | 20 | (637) | 154 |
Bank owned life insurance | 422 | 379 | 1,171 | 1,126 |
SBA lending activities | 1,150 | 882 | 3,332 | 3,181 |
Gain on sale of trust business | 1,681 | |||
Other noninterest income | 172 | 112 | 557 | 533 |
Total noninterest income | 2,769 | 2,255 | 8,046 | 9,883 |
NONINTEREST EXPENSE | ||||
Salaries and employee benefits | 8,295 | 7,332 | 26,037 | 24,193 |
Occupancy | 722 | 732 | 2,050 | 2,317 |
Equipment and software | 842 | 747 | 2,334 | 2,034 |
Professional services | 764 | 796 | 2,331 | 2,564 |
Postage, printing and supplies | 32 | 55 | 109 | 136 |
Communications and data processing | 796 | 566 | 2,133 | 1,904 |
Marketing and business development | 243 | 211 | 702 | 486 |
FDIC Premiums | (193) | 154 | 217 | 405 |
Other noninterest expense | 1,176 | 1,279 | 3,813 | 3,744 |
Total noninterest expense | 12,677 | 11,872 | 39,726 | 37,783 |
INCOME FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES | 9,663 | 8,835 | 26,692 | 25,835 |
Provision for income taxes | 2,094 | 1,837 | 5,674 | 5,268 |
NET INCOME FROM CONTINUING OPERATIONS | 7,569 | 6,998 | 21,018 | 20,567 |
Income (loss) from discontinued operations | (646) | 28,690 | (1,153) | |
Provision (benefit) for income taxes | (617) | (161) | 6,993 | (288) |
Net income (loss) from discontinued operations | 617 | (485) | 21,697 | (865) |
NET INCOME | $ 8,186 | $ 6,513 | $ 42,715 | $ 19,702 |
Net income (loss) per common share ‑ basic | ||||
Net income per common share - continuing operations (in dollars per share) | $ 0.33 | $ 0.27 | $ 0.88 | $ 0.79 |
Net loss per common share - discontinued operations (in dollars per share) | 0.03 | (0.02) | 0.91 | (0.03) |
Net income per common share ‑ basic (in dollars per share) | 0.36 | 0.25 | 1.79 | 0.76 |
Net income (loss) per common share ‑ diluted | ||||
Net income per common share - continuing operations (in dollars per share) | 0.33 | 0.27 | 0.88 | 0.79 |
Net loss per common share - discontinued operations (in dollars per share) | 0.03 | (0.02) | 0.91 | (0.03) |
Net income per common share ‑ diluted (in dollars per share) | $ 0.36 | $ 0.25 | $ 1.78 | $ 0.75 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,186 | $ 6,513 | $ 42,715 | $ 19,702 |
Unrealized gains (losses) on available-for-sale securities: | ||||
Unrealized holding gains (losses) arising during the period, net of tax of $453, ($1,041), $4,096 and ($3,775), respectively | 1,360 | (3,119) | 12,279 | (11,322) |
Reclassification adjustment for losses (gains) included in net income net of tax of ($63), ($0), ($227), and $1, respectively | (190) | (680) | 1 | |
Unrealized gains (losses) on available-for-sale securities, net of tax | 1,170 | (3,119) | 11,599 | (11,321) |
Cash flow hedges: | ||||
Net unrealized derivative gains (losses) on cash flow hedges, net of tax of $582, ($145), $1,734 and ($799), respectively | 1,744 | (434) | 5,201 | (2,396) |
Changes from cash flow hedges | 1,744 | (434) | 5,201 | (2,396) |
Other comprehensive income (loss), net of tax | 2,914 | (3,553) | 16,800 | (13,717) |
Comprehensive income | $ 11,100 | $ 2,960 | $ 59,515 | $ 5,985 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax portion of unrealized holding gains arising during the period | $ 453 | $ (1,041) | $ 4,096 | $ (3,775) |
Tax portion of reclassification adjustment for gains included in net income | (63) | 0 | (227) | 1 |
Tax portion of net unrealized derivative (losses) gains on cash flow hedges | $ 582 | $ (145) | $ 1,734 | $ (799) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders’ Equity - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated other comprehensive income (loss) | Total |
Beginning balance (in shares) at Dec. 31, 2017 | 25,712,909 | |||
Beginning balance at Dec. 31, 2017 | $ 299,474 | $ 12,810 | $ (3,859) | $ 308,425 |
Comprehensive income: | ||||
Net income | 19,702 | 19,702 | ||
Reclassification of tax effects from AOCI | 844 | (844) | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | (11,321) | (11,321) | ||
Change in unrealized gains (losses) on cash flow hedges | (2,396) | (2,396) | ||
Comprehensive income | 5,985 | |||
Net issuance of restricted stock (in shares) | 66,686 | |||
Issuance of common stock for option exercises (in shares) | 285,230 | |||
Issuance of common stock for option exercises | $ 4,003 | 4,003 | ||
Issuance of common stock for long-term incentive plan (in shares) | 38,841 | |||
Issuance of common stock for long-term incentive plan | $ 687 | 687 | ||
Restricted stock activity | 832 | 832 | ||
Stock-based compensation | 168 | 168 | ||
Performance share compensation | $ 136 | 136 | ||
Ending balance (in shares) at Sep. 30, 2018 | 26,103,666 | |||
Ending balance at Sep. 30, 2018 | $ 305,300 | 33,357 | (18,420) | 320,237 |
Beginning balance (in shares) at Jun. 30, 2018 | 26,102,217 | |||
Beginning balance at Jun. 30, 2018 | $ 304,793 | 26,844 | (14,867) | 316,770 |
Comprehensive income: | ||||
Net income | 6,513 | 6,513 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | (3,119) | (3,119) | ||
Change in unrealized gains (losses) on cash flow hedges | (434) | (434) | ||
Comprehensive income | 2,960 | |||
Net issuance of restricted stock (in shares) | 1,673 | |||
Issuance of common stock for option exercises (in shares) | (224) | |||
Issuance of common stock for option exercises | $ 17 | 17 | ||
Restricted stock activity | 352 | 352 | ||
Stock-based compensation | 70 | 70 | ||
Performance share compensation | $ 68 | 68 | ||
Ending balance (in shares) at Sep. 30, 2018 | 26,103,666 | |||
Ending balance at Sep. 30, 2018 | $ 305,300 | 33,357 | (18,420) | 320,237 |
Comprehensive income: | ||||
Change in accounting principle | 1 | $ 1 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 25,290,419 | 25,290,419 | ||
Beginning balance at Dec. 31, 2018 | $ 291,771 | 42,187 | (10,305) | $ 323,653 |
Comprehensive income: | ||||
Net income | 42,715 | 42,715 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 11,599 | 11,599 | ||
Change in unrealized gains (losses) on cash flow hedges | 5,201 | 5,201 | ||
Comprehensive income | $ 59,515 | |||
Net issuance of restricted stock (in shares) | 49,702 | |||
Issuance of common stock for option exercises (in shares) | 60,541 | 79,980 | ||
Issuance of common stock for option exercises | $ 1,044 | $ 1,044 | ||
Issuance of common stock for long-term incentive plan (in shares) | 35,678 | |||
Issuance of common stock for long-term incentive plan | $ 655 | 655 | ||
Restricted stock activity | 552 | 552 | ||
Stock-based compensation | 151 | 151 | ||
Performance share compensation | $ 260 | $ 260 | ||
Stock repurchases (in shares) | (3,242,579) | (3,242,579) | ||
Stock repurchases | $ (56,746) | $ (56,746) | ||
Ending balance (in shares) at Sep. 30, 2019 | 22,193,761 | 22,193,761 | ||
Ending balance at Sep. 30, 2019 | $ 237,687 | 84,529 | 6,495 | $ 328,711 |
Beginning balance (in shares) at Jun. 30, 2019 | 23,293,465 | |||
Beginning balance at Jun. 30, 2019 | $ 256,791 | 76,343 | 3,581 | 336,715 |
Comprehensive income: | ||||
Net income | 8,186 | 8,186 | ||
Change in unrealized gains (losses) on investment securities available-for-sale, net | 1,170 | 1,170 | ||
Change in unrealized gains (losses) on cash flow hedges | 1,744 | 1,744 | ||
Comprehensive income | 11,100 | |||
Net issuance of restricted stock (in shares) | 26,587 | |||
Issuance of common stock for option exercises (in shares) | 37,772 | |||
Issuance of common stock for option exercises | $ 573 | 573 | ||
Restricted stock activity | 327 | 327 | ||
Stock-based compensation | 18 | 18 | ||
Performance share compensation | $ 106 | $ 106 | ||
Stock repurchases (in shares) | (1,164,063) | (1,164,063) | ||
Stock repurchases | $ (20,128) | $ (20,128) | ||
Ending balance (in shares) at Sep. 30, 2019 | 22,193,761 | 22,193,761 | ||
Ending balance at Sep. 30, 2019 | $ 237,687 | 84,529 | $ 6,495 | $ 328,711 |
Comprehensive income: | ||||
Change in accounting principle | $ (373) | $ (373) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income from continuing operations | $ 21,018 | $ 20,567 |
Net income (loss) from discontinued operations, net of tax | 21,697 | (865) |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Provision for loan losses | 1,925 | 1,444 |
Depreciation, amortization, and accretion | 2,497 | 3,508 |
Amortization of operating lease right-of-use assets | 1,703 | |
Amortization of restricted stock and performance share compensation | 811 | 968 |
Stock option compensation | 151 | 168 |
(Gain) loss on sales of available-for-sale securities | (907) | 2 |
Loss on disposition of premises and equipment, net | 27 | 214 |
Net write downs and (gains)/losses on sales of other real estate owned | (154) | 222 |
Small Business Investment Company (SBIC) impairment | 26 | 228 |
Net increase in cash value of bank owned life insurance | (1,100) | (1,102) |
(Gain) on bank owned life insurance | (46) | |
Net (gains) on sale of branches | (34,475) | |
Net (gain) on sale of trust business | (1,681) | |
Origination of servicing assets | (975) | (739) |
Proceeds from sales of SBA loans | 54,333 | 46,924 |
Net (gains) on sale of SBA loans | (2,875) | (2,578) |
Changes in operating assets and liabilities - | ||
Net change in loans held for sale | 4,973 | (399) |
Net decrease in other assets | 6,089 | (377) |
Net decrease in accrued expenses and other liabilities | (3,991) | 3,893 |
Net cash provided by operating activities | 70,727 | 70,397 |
Activity in securities available-for-sale: | ||
Prepayments | 33,199 | 37,854 |
Maturities and calls | 3,450 | 215 |
Sales | 116,963 | 24 |
Purchases | (22,678) | (71,942) |
Activity in securities held to maturity: | ||
Purchases | (42,866) | |
Net change in loans held for investment | (160,851) | (188,577) |
Net change in assets held for sale - discontinued operations | (11,789) | 40,188 |
(Purchases) proceeds of Federal Home Loan Bank stock, net | (3,288) | (1,762) |
(Purchases) proceeds of Federal Reserve Bank stock, net | (92) | (50) |
Proceeds from bank owned life insurance benefits | 248 | |
Proceeds from sales of other real estate | 847 | 402 |
Net cash received (paid) for branch divestiture | (166,755) | |
(Purchases) of premises and equipment, net | (1,380) | (7,242) |
Net cash (used in) investing activities | (254,992) | (190,890) |
FINANCING ACTIVITIES | ||
Net change in deposits | (98,242) | (89,970) |
Net change in liabilities to be assumed - discontinued operations | 6,560 | 28,033 |
Net change in fed funds purchased | 57,000 | |
Proceeds from Federal Home Loan Bank advances | 566,000 | 1,203,100 |
Repayments of Federal Home Loan Bank advances | (490,000) | (1,165,100) |
Proceeds from exercise of stock options | 1,045 | 4,003 |
Repurchase of common stock | (56,746) | |
Net cash (used in) financing activities | (14,383) | (19,934) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (198,648) | (140,427) |
CASH AND CASH EQUIVALENTS – beginning of period | 268,392 | 330,014 |
CASH AND CASH EQUIVALENTS – end of period | 69,744 | 189,587 |
SUPPLEMENTAL SCHEDULE OF CASH FLOWS | ||
Interest paid | 20,454 | 14,817 |
Income taxes paid | $ 885 | $ 155 |
Accounting Policies and Basis o
Accounting Policies and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies and Basis of Presentation | |
Accounting Policies and Basis of Presentation | NOTE 1 – ACCOUNTING POLICIES AND BASIS OF PRESENTATION Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or the “Company”) and its subsidiary, Atlantic Capital Bank, N.A. (the “Bank”), 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. 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 Annual Report on Form 10‑K. 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, 2019 | |
Accounting Standards Updates and Recently Adopted Standards | |
Accounting Standards Updates and Recently Adopted Standards | NOTE 2 – ACCOUNTING STANDARDS UPDATES AND RECENTLY ADOPTED STANDARDS Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, “Leases.” Under the new guidance, leases classified as operating leases under previous GAAP must be recorded on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term. In July 2018, the FASB issued ASU No. 2018‑10, “Codification Improvements to Topic 842, Leases and ASU No. 2018‑11, Leases (Topic 842): Targeted Improvements .” ASU No. 2018‑10 provides improvements related to ASU No. 2016‑02 to increase stakeholders’ awareness of the amendments and to expedite the improvements. The amendments affect narrow aspects of the guidance issued in ASU No. 2016‑02. ASU No. 2018‑11 allows entities adopting ASU No. 2016‑02 to choose an additional (and optional) transition method, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments in these updates became effective for the Company on January 1, 2019. The impact of adoption was recording a lease liability of approximately $18.9 million in other liabilities on the Consolidated Balance Sheets, a ROU asset of approximately $14.5 million in premises and equipment, and a cumulative effect adjustment to retained earnings, net of tax, of approximately $373,000. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2019, the FASB issued ASU No. 2019‑05, “ Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief .” This ASU allows entities to irrevocably elect, upon adoption of ASU 2016‑13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of Accounting Standards Codification (“ASC”) 326‑20 if the instruments are eligible for the fair value option under ASC 825‑10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019‑05 has the same effective date as ASU 2016‑13 (i.e., the first quarter of 2020). The Company does not expect to elect the fair value option, and therefore, ASU 2019‑05 is not expected to impact the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after December 31, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The adoption will not have a material effect on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017‑08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the premium amortization period for certain callable debt securities by requiring amortization to the earliest call date. The standard is effective for public companies for annual and interim periods beginning after December 15, 2020. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements. In January 2017, the FASB issued ASU 2017‑04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017‑04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. Atlantic Capital does not expect the new guidance to have a material impact on its financial condition or results of operations. In June 2016, the FASB issued ASU 2016‑13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” ASU 2016‑13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016‑13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016‑13 is effective for public companies for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is implementing a software package supported by a third-party vendor. The Company’s CECL working group is meeting regularly with a CECL Management Group and the Company’s Board of Directors to discuss implementation progress and methodology selections. Progress has been made on life-of-loan loss calculations and on economic forecasting methods that will be utilized in the modeling process. The Company continues to refine its new methodology leading up to the adoption of the ASU and will continue to evaluate the impact of the adoption on the Company’s consolidated financial statements and disclosures. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions and Divestitures | |
Acquisitions and Divestitures | NOTE 3 – ACQUISITIONS AND DIVESTITURES Discontinued Operations On April 5, 2019, the Bank completed the sale of all 14 of its bank branches located in Tennessee and northwest Georgia, including its mortgage banking business, to FirstBank (the “Branch Sale”). FirstBank assumed deposits and customer repurchase agreements of approximately $598 million and purchased approximately $385 million in loans. FirstBank paid a deposit premium equal to 6.25% of the balance of assumed deposits, less a discount of 0.68% of purchased loans. The income and expenses related to these branches for the three and nine months ended September 30, 2019 and 2018 are included in discontinued operations and prior period financial information has been retrospectively adjusted for the impact of discontinued operations. The following table presents results of the discontinued operations for the three and nine months ended September 30, 2019 and 2018: Components of Net Income from Discontinued Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net interest income (loss) $ — $ 3,266 $ 3,086 $ 10,915 Service charges — 474 527 1,439 Mortgage income — 315 288 982 Gain on sale of branches — — 34,475 — Other income — 22 (1) 76 Total noninterest income — 811 35,289 2,497 Salaries and employee benefits — 2,820 2,757 8,957 Occupancy — 556 410 1,537 Equipment and software — 217 131 621 Amortization of intangibles — 296 247 958 Communications and data processing — 381 586 1,089 Divestiture expense — — 5,095 — Other noninterest expense — 453 459 1,403 Total noninterest expense — 4,723 9,685 14,565 Net income (loss) before provision for income taxes — (646) 28,690 (1,153) Provision (benefit) for income taxes (617) (161) 6,993 (288) Net income (loss) from discontinued operations $ 617 $ (485) $ 21,697 $ (865) Assets sold and liabilities assumed by FirstBank include substantially all assets and liabilities associated with the branches sold, and were classified as held for sale on the Consolidated Balance Sheets as of December 31, 2018. The following table summarizes the major categories of assets and liabilities classified as held for sale and intangibles related to discontinued operations on the Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018: Assets and Liabilities from Discontinued Operations (in thousands) September 30, 2019 December 31, 2018 Cash $ — $ 4,234 Loans held for sale - discontinued operations — 373,030 Premises held for sale - discontinued operations — 7,722 Goodwill - discontinued operations — 4,555 Core deposit intangible — 1,405 Total assets $ — $ 390,946 Deposits to be assumed - discontinued operations $ — $ 585,429 Securities sold under agreements to repurchase - discontinued operations — 6,220 Total liabilities $ — $ 591,649 Net liabilities $ — $ (200,703) |
Balance Sheet Offsetting
Balance Sheet Offsetting | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Offsetting | |
Balance Sheet Offsetting | NOTE 4 – BALANCE SHEET OFFSETTING Atlantic Capital enters into reverse repurchase agreements in order to invest short-term funds. Atlantic Capital enters into repurchase agreements for short-term financing needs. The following table presents a summary of amounts outstanding under reverse repurchase agreements, repurchase agreements, and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of September 30, 2019 and December 31, 2018. While these agreements are typically over-collateralized, GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral September 30, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 13,062 $ — $ 13,062 $ — $ — $ 13,062 Total $ 13,062 $ — $ 13,062 $ — $ — $ 13,062 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives 8,047 — 8,047 (8,047) — — Total $ 8,047 $ — $ 8,047 $ (8,047) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2018 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 9,457 $ — $ 9,457 $ (9,457) $ — $ — Derivatives 1,961 — 1,961 — — 1,961 Total $ 11,418 $ — $ 11,418 $ (9,457) $ — $ 1,961 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Repurchase agreements - discontinued operations $ 6,220 $ — $ 6,220 $ (6,220) $ — $ — Derivatives 4,027 — 4,027 (4,027) — — Total $ 10,247 $ — $ 10,247 $ (10,247) $ — $ — |
Securities
Securities | 9 Months Ended |
Sep. 30, 2019 | |
Securities | |
Securities | NOTE 5 – SECURITIES The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale and held-to-maturity at September 30, 2019 and December 31, 2018 . Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) September 30, 2019 Available-For-Sale U.S. states and political divisions $ 83,922 $ 1,015 $ (193) $ 84,744 Trust preferred securities 4,801 — (201) 4,600 Corporate debt securities 19,564 264 (2) 19,826 Residential mortgage-backed securities 174,826 3,243 (454) 177,615 Total available-for-sale 283,113 4,522 (850) 286,785 Held-to-Maturity U.S. states and political divisions 42,863 46 (169) 42,740 Total held-to-maturity 42,863 46 (169) 42,740 Total securities $ 325,976 $ 4,568 $ (1,019) $ 329,525 December 31, 2018 Debt securities— U.S. Government agencies $ 27,259 $ 24 $ (434) $ 26,849 U.S. states and political divisions 91,864 40 (7,070) 84,834 Trust preferred securities 4,781 — (381) 4,400 Corporate debt securities 12,855 — (492) 12,363 Residential mortgage-backed securities 277,524 2,726 (6,210) 274,040 Total securities $ 414,283 $ 2,790 $ (14,587) $ 402,486 The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at September 30, 2019. 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 Held-to-Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) (in thousands) Within 1 year $ — $ — $ — $ — Over 1 year through 5 years 10,594 10,701 — — 5 years to 10 years 30,268 30,402 — — Over 10 years 67,425 68,067 42,863 42,740 108,287 109,170 42,863 42,740 Residential mortgage-backed securities 174,826 177,615 — — Total $ 283,113 $ 286,785 $ 42,863 $ 42,740 The following table summarizes available-for-sale and held-to-maturity securities in an unrealized loss position as of September 30, 2019 and December 31, 2018. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale U.S. states and political divisions $ 20,616 $ (144) $ 4,097 $ (49) $ 24,713 $ (193) Trust preferred securities — — 4,600 (201) 4,600 (201) Corporate debt securities — — 1,003 (2) 1,003 (2) Residential mortgage-backed securities 8,182 (21) 31,820 (433) 40,002 (454) Total available-for-sale 28,798 (165) 41,520 (685) 70,318 (850) Held-to-Maturity U.S. states and political divisions 20,179 (169) — — 20,179 (169) Total held-to-maturity 20,179 (169) — — 20,179 (169) Total securities $ 48,977 $ (334) $ 41,520 $ (685) $ 90,497 $ (1,019) December 31, 2018 U.S. Government agencies $ 1,487 $ (19) $ 21,849 $ (415) $ 23,336 $ (434) U.S. states and political divisions 2,351 (54) 75,234 (7,016) 77,585 (7,070) Trust preferred securities — — 4,400 (381) 4,400 (381) Corporate debt securities 6,009 (60) 6,354 (432) 12,363 (492) Residential mortgage-backed securities 30,938 (152) 196,745 (6,058) 227,683 (6,210) Total securities $ 40,785 $ (285) $ 304,582 $ (14,302) $ 345,367 $ (14,587) 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 internal and external analyst reviews. At September 30, 2019, there were 77 available-for-sale securities and 7 held-to-maturity securities that were in an unrealized loss position. Atlantic Capital does not intend to sell and does not believe 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, 2019 and December 31, 2018 were attributable to changes in interest rates. No impairment charges on securities were recognized during the three or nine months ended September 30, 2019 or 2018. 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, 2019 and 2018. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Proceeds from sales $ 62,025 $ — $ 116,963 $ 24 Gross realized gains 553 $ — $ 1,675 $ — Gross realized losses (300) — (768) (2) Net gains (losses) on sales of securities $ 253 $ — $ 907 $ (2) Investment securities with a carrying value of $32.3 million and $65.3 million were pledged to secure public funds and other borrowings at September 30, 2019 and December 31, 2018, respectively. As of September 30, 2019 and December 31, 2018, Atlantic Capital had investments with a carrying value of $4.4 million and $4.4 million, respectively, in Small Business Investment Companies (“SBICs”) where Atlantic Capital is the limited partner. These investments are included in other assets on the Consolidated Balance Sheets. During the nine months ended September 30, 2019 and 2018, the Company recorded impairments in the amounts of $26,000 and $228,000, respectively, on these SBICs. The impairments resulted from deterioration in the credit quality of one of the SBICs and their inability to pay distributions until their financial position improves. There have been no upward adjustments, cumulatively or year-to-date, on these investments. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | NOTE 6 – LOANS AND ALLOWANCE FOR LOAN LOSSES The composition of the loan portfolio as of September 30, 2019 and December 31, 2018, is summarized below. September 30, 2019 December 31, 2018 (in thousands) Loans held for sale Loans held for sale - discontinued operations $ — $ 373,030 Loans held for sale - continuing operations 916 5,889 Total loans held for sale $ 916 $ 378,919 Loans held for investment Commercial loans: Commercial and industrial $ 697,412 $ 645,374 Commercial real estate 865,525 794,828 Construction and land 145,177 156,232 Mortgage warehouse participations 23,256 27,967 Total commercial loans 1,731,370 1,624,401 Residential: Residential mortgages 31,903 32,800 Home equity 25,638 22,822 Total residential loans 57,541 55,622 Consumer 27,168 25,851 Other 22,533 24,712 Total loans 1,838,612 1,730,586 Less net deferred fees and other unearned income (2,939) (2,513) Less allowance for loan losses (18,080) (17,851) Loans held for investment, net $ 1,817,593 $ 1,710,222 At September 30, 2019 and December 31, 2018, loans with a carrying value of $689.0 million and $752.7 million, respectively, were pledged as collateral to secure Federal Home Loan Bank of Atlanta (“FHLB”) advances and the Federal Reserve discount window. At December 31, 2018, PCI loans were designated as held for sale for the Branch Sale. The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC 310‑30 for the three and nine months ended September 30, 2019 and 2018. For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Balance at beginning of period $ — $ 2,456 $ — $ 2,316 Accretion — (299) — (898) Reclassification of nonaccretable discount due to change in expected cash flows — 180 — 473 Other changes, net — 96 — 542 Balance at end of period $ — $ 2,433 $ — $ 2,433 In addition to the accretable yield on PCI loans, the fair value adjustments on purchased loans outside the scope of ASC 310‑30 are also accreted to interest income over the life of the loans. At September 30, 2019, the remaining accretable fair value discount on loans acquired through a business combination and not accounted for under ASC 310‑30 was $324,000 compared to $3.6 million at December 31, 2018. 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 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. Most 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 loan losses by portfolio segment for the three and nine months ended September 30, 2019 and 2018. For the Three Months Ended September 30, 2019 2018 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 17,817 $ 164 $ 205 $ 18,186 $ 18,491 $ 811 $ 281 $ 19,583 Provision for loan losses 434 (24) 3 413 761 109 (25) 845 Loans charged-off (541) — (2) (543) — — — — Recoveries 18 — 6 24 — — 15 15 Total ending allowance balance $ 17,728 $ 140 $ 212 $ 18,080 $ 19,252 $ 920 $ 271 $ 20,443 For the Nine Months Ended September 30, 2019 2018 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 17,322 $ 292 $ 237 $ 17,851 $ 18,267 $ 802 $ 275 $ 19,344 Provision for loan losses 2,096 (151) (20) 1,925 1,115 348 (19) 1,444 Loans charged-off (1,725) (9) (39) (1,773) (176) (230) (13) (419) Recoveries 35 8 34 77 46 — 28 74 Total ending allowance balance $ 17,728 $ 140 $ 212 $ 18,080 $ 19,252 $ 920 $ 271 $ 20,443 Atlantic Capital determines the appropriate level of allowance on a quarterly basis. Refer to Note 1, “Accounting Policies and Basis of Presentation” and Note 6, “Loans and Allowance for Loan Losses” to the Consolidated Financial Statements to the Annual Report on Form 10-K for the year ended December 31, 2018, for a description of methodology. 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, 2019 and December 31, 2018. September 30, 2019 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 658 $ — $ — $ 658 Collectively evaluated for impairment 17,070 140 212 17,422 Total ending allowance balance $ 17,728 $ 140 $ 212 $ 18,080 Loans: Loans individually evaluated for impairment $ 21,461 $ 726 $ — $ 22,187 Loans collectively evaluated for impairment 1,709,909 56,815 49,701 1,816,425 Total ending loans balance $ 1,731,370 $ 57,541 $ 49,701 $ 1,838,612 December 31, 2018 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 317 $ — $ — $ 317 Collectively evaluated for impairment 17,005 292 237 17,534 Total ending allowance balance $ 17,322 $ 292 $ 237 $ 17,851 Loans: Loans individually evaluated for impairment $ 10,273 $ 161 $ — $ 10,434 Loans collectively evaluated for impairment 1,614,128 55,461 50,563 1,720,152 Total ending loans balance $ 1,624,401 $ 55,622 $ 50,563 $ 1,730,586 The following table presents information on Atlantic Capital’s impaired loans for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended September 30, 2019 2018 Average Balance Interest Income Average Balance Interest Income Unpaid of Recorded Recognized Unpaid of Recorded Recognized Principal Recorded Related Investment While During Principal Recorded Related Investment While During Balance Investment Allowance Impaired Impairment Balance Investment Allowance Impaired Impairment (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ 5,897 $ 5,403 $ — $ 5,451 $ 40 $ 4,455 $ 4,455 $ — $ 4,488 $ 57 Commercial real estate 4,900 4,737 — 3,589 47 1,725 1,562 — 1,569 — Construction and land — — — — — — — — — — Residential mortgages 71 25 — 25 — 237 192 — 201 1 Home equity 700 700 — 700 — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,568 $ 10,865 $ — $ 9,765 $ 87 $ 6,417 $ 6,209 $ — $ 6,258 $ 58 Impaired loans with an allowance recorded: Commercial and industrial $ 3,348 $ 3,348 $ 476 $ 3,376 $ — $ — $ — $ — $ — $ — Commercial real estate 7,974 7,974 183 7,989 63 4,616 4,616 257 4,616 — Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,322 $ 11,322 $ 659 $ 11,365 $ 63 $ 4,616 $ 4,616 $ 257 $ 4,616 $ — Total impaired loans $ 22,890 $ 22,187 $ 659 $ 21,130 $ 150 $ 11,033 $ 10,825 $ 257 $ 10,874 $ 58 For the Nine Months Ended September 30, 2019 2018 Average Balance Interest Income Average Balance Interest Income Unpaid of Recorded Recognized Unpaid of Recorded Recognized Principal Recorded Related Investment While During Principal Recorded Related Investment While During Balance Investment Allowance Impaired Impairment Balance Investment Allowance Impaired Impairment (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ 5,897 $ 5,403 $ — $ 5,541 $ 122 $ 4,455 $ 4,455 $ — $ 4,584 $ 173 Commercial real estate 4,900 4,737 — 4,127 149 1,725 1,562 — 1,577 — Construction and land — — — — — — — — — — Residential mortgages 71 25 — 25 — 237 192 — 203 2 Home equity 700 700 — 700 — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,568 $ 10,865 $ — $ 10,393 $ 271 $ 6,417 $ 6,209 $ — $ 6,364 $ 175 Impaired loans with an allowance recorded: Commercial and industrial $ 3,348 $ 3,348 $ 476 $ 3,811 $ 52 $ — $ — $ — $ — $ — Commercial real estate 7,974 7,974 183 7,989 359 4,616 4,616 257 4,616 — Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,322 $ 11,322 $ 659 $ 11,800 $ 411 $ 4,616 $ 4,616 $ 257 $ 4,616 $ — Total impaired loans $ 22,890 $ 22,187 $ 659 $ 22,193 $ 682 $ 11,033 $ 10,825 $ 257 $ 10,980 $ 175 Atlantic Capital evaluates loans in accordance with ASC 310‑40, Troubled Debt Restructurings by Creditors . TDRs are loans in which Atlantic Capital has modified the terms or 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. As of September 30, 2019, and December 31, 2018, the Company had a recorded investment in TDRs of $12.8 million and $8.2 million, respectively. The Company had commitments to lend additional funds of $3,000 and $28,000 on loans modified as TDRs, as of September 30, 2019 and December 31, 2018, respectively. During the three months ended September 30, 2019, the Company restructured via bankruptcy one commercial real estate SBA loan, resulting in its reclassification as a TDR. For the nine months ended September 30, 2019, restructurings included modifications such as payment deferrals and interest only forbearance. Loans, by portfolio class, modified as TDRs during the three and nine months ended September 30, 2019 are as follows. Pre-Modification Post-Modification Outstanding Outstanding Number of Loans Recorded Investment Recorded Investment (in thousands) Three Months Ended September 30, 2019 Commercial real estate 1 $ 1,512 $ 1,512 Total 1 $ 1,512 $ 1,512 Nine Months Ended September 30, 2019 Commercial and industrial 6 $ 1,235 $ 1,235 Commercial real estate 3 2,438 2,438 Total 9 $ 3,673 $ 3,673 The Company did not forgive any principal on TDRs during the three and nine month periods ended September 30, 2019 and 2018, and there were no subsequent defaults of previously identified TDRs. 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 credit analysis. Facility Ratings are used to describe the value to the Company that the collateral represents. Facility Ratings are based on the collateral package or market expectations regarding the value and 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, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Total loans at December 31, 2018 includes loans held for sale - discontinued operations. Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) September 30, 2019 Commercial and industrial $ 663,678 $ 11,548 $ 16,676 $ 5,510 $ — $ 697,412 Commercial real estate 842,180 3,205 19,838 302 — 865,525 Construction and land 145,177 — — — — 145,177 Residential mortgages 31,524 — 121 258 — 31,903 Home equity 24,938 — — 700 — 25,638 Mortgage warehouse 23,256 — — — — 23,256 Consumer/Other 48,618 600 483 — — 49,701 Total loans $ 1,779,371 $ 15,353 $ 37,118 $ 6,770 $ — $ 1,838,612 Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2018 Commercial and industrial $ 671,992 $ 6,802 $ 22,777 $ 832 $ — $ 702,403 Commercial real estate 946,612 4,754 14,914 126 1,647 968,053 Construction and land 169,687 40 25 — — 169,752 Residential mortgages 118,265 1,119 1,441 1,138 281 122,244 Home equity 54,707 92 294 499 — 55,592 Mortgage warehouse 22,192 5,775 — — — 27,967 Consumer/Other 57,268 66 97 174 — 57,605 Total loans $ 2,040,723 $ 18,648 $ 39,548 $ 2,769 $ 1,928 $ 2,103,616 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, 2019 and December 31, 2018 by class of loans. Total loans at December 31, 2018 includes loans held for sale - discontinued operations. As of September 30, 2019 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 691,605 $ 297 $ — $ 5,510 $ 697,412 Commercial real estate 862,229 2,994 — 302 865,525 Construction and land 144,068 1,109 — — 145,177 Residential mortgages 31,487 158 — 258 31,903 Home equity 24,938 — — 700 25,638 Mortgage warehouse 23,256 — — — 23,256 Consumer 48,153 1,548 — — 49,701 Total Loans $ 1,825,736 $ 6,106 $ — $ 6,770 $ 1,838,612 As of December 31, 2018 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 692,308 $ 8,785 $ 478 $ 832 $ 702,403 Commercial real estate 963,579 2,701 — 1,773 968,053 Construction and land 169,752 — — — 169,752 Residential mortgages 119,932 893 — 1,419 122,244 Home equity 54,714 379 — 499 55,592 Mortgage warehouse 27,967 — — — 27,967 Consumer 57,371 59 1 174 57,605 Total Loans $ 2,085,623 $ 12,817 $ 479 $ 4,697 $ 2,103,616 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | NOTE 7 – GOODWILL AND INTANGIBLE ASSETS The carrying amount of goodwill and other intangible assets as of September 30, 2019 and December 31, 2018 is summarized below: September 30, December 31, 2019 2018 (in thousands) Core deposit intangible $ 9,544 $ 9,544 Less: accumulated amortization (6,100) (5,853) Less: impairment to-date related to divested branches (3,444) (2,286) Core deposit intangible, net - discontinued operations — 1,405 Servicing assets, net 3,112 2,983 Total intangibles subject to amortization, net 3,112 4,388 Goodwill - discontinued operations — 4,555 Goodwill - continuing operations 19,925 17,135 Total goodwill and other intangible assets, net $ 23,037 $ 26,078 Based on a relative fair value analysis performed through the date of the Branch Sale, goodwill impairment in the amount of $1.8 million related to the Branch Sale was recorded during the second quarter of 2019. Goodwill impairment in the amount of $69,000 related to the sale of the trust business was recorded during the second quarter of 2018. The following table presents activity for goodwill and other intangible assets: For the Three Months Ended September 30, For the Nine Months Ended September 30, Goodwill Core Deposit Intangible Total Goodwill Core Deposit Intangible Total (in thousands) 2019 Balance, beginning of period $ 19,925 $ — $ 19,925 $ 21,690 $ 1,405 $ 23,095 Amortization — — — — (247) (247) Impairment, due to Branch Sale — — — (1,765) (1,158) (2,923) Balance, end of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 2018 Balance, beginning of period $ 21,690 $ 1,972 $ 23,662 $ 21,759 $ 2,634 $ 24,393 Amortization — (296) (296) — (958) (958) Impairment, due to trust business sale — — — (69) — (69) Balance, end of period $ 21,690 $ 1,676 $ 23,366 $ 21,690 $ 1,676 $ 23,366 Atlantic Capital recognized amortization expense on its core deposit intangible of $0 and $247,000 for the three and nine months ended September 30, 2019, respectively, and $296,000 and $958,000 for the three and nine months ended September 30, 2018, respectively, which was included in noninterest expense. The Company recorded impairment due to the Branch Sale totaling $1.2 million for the three and nine months ended September 30, 2019. There were no events or circumstances that led management to believe that any impairment existed at September 30, 2019 in Atlantic Capital’s other intangible assets. |
Servicing Assets
Servicing Assets | 9 Months Ended |
Sep. 30, 2019 | |
Servicing Assets | |
Servicing Assets | NOTE 8 – SERVICING ASSETS SBA Servicing Assets SBA servicing assets are initially recorded at fair value. Subsequently, Atlantic Capital accounts for SBA servicing assets using the amortization method and they are included in other intangibles, net on the Consolidated Balance Sheets. As of September 30, 2019 and December 31, 2018, the balance of SBA loans sold and serviced by Atlantic Capital totaled $184.6 million and $161.5 million, respectively. Changes in the balance of servicing assets for the three and nine months ended September 30, 2019 and 2018 are presented in the following table . Three Months Ended September 30, Nine Months Ended September 30, SBA Loan Servicing Assets 2019 2018 2019 2018 (in thousands) (in thousands) Beginning carrying value, net $ 2,726 $ 2,827 $ 2,539 $ 2,635 Additions 350 120 975 739 Amortization (296) (239) (734) (666) Impairment — — — — Ending carrying value $ 2,780 $ 2,708 $ 2,780 $ 2,708 At September 30, 2019 and December 31, 2018, the sensitivity of the fair value of the SBA loan servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Assets September 30, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ 3,029 $ 2,630 Weighted average life 3.90 years 4.83 years Prepayment speed: 14.71 % 11.92 % Decline in fair value due to a 10% adverse change $ (160) $ (131) Decline in fair value due to a 20% adverse change $ (271) $ (223) Weighted average discount rate 14.01 % 14.42 % Decline in fair value due to a 100 bps adverse change $ (107) $ (101) Decline in fair value due to a 200 bps adverse change $ (169) $ (165) 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. TriNet Servicing Assets Changes in the balance of TriNet servicing assets for the three and nine months ended September 30, 2019 and 2018 are presented in the following table. Three Months Ended September 30, Nine Months Ended September 30, TriNet Servicing Assets 2019 2018 2019 2018 (in thousands) (in thousands) Beginning carrying value, net $ 369 $ 523 $ 444 $ 605 Additions — — — — Amortization (37) (40) (112) (122) Impairment — — — — Ending carrying value $ 332 $ 483 $ 332 $ 483 At September 30, 2019 and December 31, 2018, the sensitivity of the fair value of the TriNet servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the TriNet Servicing Assets September 30, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ $ Weighted average life 5.77 years 6.48 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (6) $ (7) Decline in fair value due to a 20% adverse change $ (11) $ (14) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (10) $ (13) Decline in fair value due to a 200 bps adverse change $ (20) $ (25) 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated 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, 2019 September 30, 2019 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 4,774 $ (1,193) $ 3,581 $ (13,743) $ 3,438 $ (10,305) Unrealized net gains (losses) on investment securities available-for-sale 1,813 (453) 1,360 16,375 (4,096) 12,279 Reclassification adjustment for net realized (gains) losses on investment securities available-for-sale (253) 63 (190) (907) 227 (680) Unrealized net gains (losses) on derivatives 2,326 (582) 1,744 6,935 (1,734) 5,201 Accumulated other comprehensive income (loss) end of period $ 8,660 $ (2,165) $ 6,495 $ 8,660 $ (2,165) $ 6,495 For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2018 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ (19,825) $ 4,958 $ (14,867) $ (6,274) $ 2,415 $ (3,859) Reclassification of tax effects from AOCI — — — — (844) (844) Unrealized net gains (losses) on investment securities available-for-sale (4,160) 1,041 (3,119) (15,097) 3,775 (11,322) Reclassification adjustment for net realized losses on investment securities available-for-sale — — — 2 (1) 1 Unrealized net gains (losses) on derivatives (579) 145 (434) (3,195) 799 (2,396) Accumulated other comprehensive income (loss) end of period $ (24,564) $ 6,144 $ (18,420) $ (24,564) $ 6,144 $ (18,420) |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Common Share | |
Earnings Per Common Share | NOTE 10 – 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, 2019 and 2018. Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands, except share and per share amounts) Net income from continuing operations $ 7,569 $ 6,998 $ 21,018 $ 20,567 Net income (loss) from discontinued operations 617 (485) 21,697 (865) Net income available to common shareholders $ 8,186 $ 6,513 $ 42,715 $ 19,702 Weighted average shares outstanding Basic (1) 22,681,904 26,103,397 23,800,525 25,956,336 Effect of dilutive securities: Stock options and performance share awards 155,627 151,375 157,390 178,319 Diluted 22,837,531 26,254,772 23,957,915 26,134,655 Net income (loss) per common share - basic Net income per common share - continuing operations $ 0.33 $ 0.27 $ 0.88 $ 0.79 Net income (loss) per common share - discontinued operations 0.03 (0.02) 0.91 (0.03) Net income per common share - basic 0.36 $ 0.25 $ 1.79 $ 0.76 Net income (loss) per common share - diluted Net income per common share - continuing operations $ 0.33 $ 0.27 $ 0.88 $ 0.79 Net income (loss) per common share - discontinued operations 0.03 (0.02) 0.91 (0.03) Net income per common share - diluted 0.36 $ 0.25 $ 1.78 $ 0.75 (1) Unvested restricted shares are participating securities and included in basic share calculations. Stock options outstanding of 150 at September 30, 2019 and 244 at September 30, 2018 have not been included in diluted earnings per share because to do so would have been anti-dilutive for the periods presented. These awards were considered anti-dilutive because the exercise price of the award was higher than the market value of the shares. The Amended and Restated Articles of Incorporation of Atlantic Capital authorize 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. At September 30, 2019, 22,193,761 shares of common stock were issued and outstanding. At December 31, 2018, 25,290,419 shares of common stock were issued and outstanding. The primary source of funds available to Atlantic Capital is payments of dividends from the Bank. The Bank paid dividends totaling $10.0 million and $36.5 million to Atlantic Capital during the three and nine months ended September 30, 2019. No dividends were paid by the Bank during the three or nine months ended September 30, 2018. During the fourth quarter of 2018, the Bank paid a dividend totaling $30.0 million. Banking laws and other regulations limit the amount of dividends a bank subsidiary may pay without prior regulatory approval. 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. On November 14, 2018, the Board of Directors authorized a stock repurchase program pursuant to which the Company may purchase up to $85 million of its issued and outstanding common stock. The timing and amounts of any repurchases depend on certain factors, including but not limited to market conditions and prices, available funds and alternative uses of capital. The stock repurchase program may be carried out through open-market purchases, block trades, negotiated private transactions and pursuant to a trading plan that was adopted in accordance with Rule 10b‑18 and Rule 10b5‑1 under the Securities Exchange Act of 1934. Atlantic Capital repurchased 1,164,063 and 3,242,5 79 shares during the three and nine months ended September 30, 2019 for a total of $20.1 million and $56.7 million, respectively. Since the announcement of the $85.0 million buyback program in November of 2018, Atlantic Capital has repurchased 4.1 million shares totaling $70.9 million. |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2019 | |
Derivatives and Hedging | |
Derivatives and Hedging | NOTE 11 – 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 these objectives, Atlantic Capital primarily uses interest rate swaps as part of its interest rate risk management strategy. Cash Flow Hedges At September 30, 2019, 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, 2019 and December 31, 2018, Atlantic Capital had interest rate swaps designated as cash flow hedges with aggregate notional amounts of $175.0 million and $100.0 million, respectively. No hedge ineffectiveness gains or losses were recognized on active cash flow hedges for the three and nine months ended September 30, 2019 and 2018. 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 $230,000 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 customers desiring to manage interest rate risk. These swaps are not designated as accounting hedges under ASC 815, Derivatives and Hedging . 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 derivatives income in the Consolidated Statements of Income. At September 30, 2019 and December 31, 2018, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $92.5 million and $109.5 million, respectively. Atlantic Capital acquired a loan level hedging program, which First Security Group, Inc. (“First Security”) utilized to accommodate clients preferring a fixed rate loan. The loan documents include an addendum with a zero premium collar. The zero premium collar is a cap and a floor at the same interest rate, resulting in a fixed rate to the borrower. To hedge this embedded option, First Security entered into a dealer facing trade exactly mirroring the terms in the loan addendum. At September 30, 2019 and December 31, 2018, Atlantic Capital had interest rate swaps related to this program with an aggregate notional amount of $150.4 million and $166.8 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. Quarterly, 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. Most derivative contracts with clients are secured by collateral. Additionally, in accordance with the interest rate agreements with derivatives dealers, Atlantic Capital may be required to post margin to these counterparties. At September 30, 2019 and December 31, 2018, Atlantic Capital had minimum collateral posting thresholds with certain of its derivative counterparties and posted collateral of $14.3. million and $5.1 million, respectively, against its obligations under these agreements. Cash 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 of 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, 2019 and December 31, 2018, Atlantic Capital had credit risk participation agreements with a notional amount of $8 .1 million and $9.5 million, respectively. The following table reflects the estimated fair value positions of derivative contracts and credit risk participation agreements as of September 30, 2019 and December 31, 2018: Derivatives designated as hedging instruments under ASC 815 September 30, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 125,000 $ 5,725 $ — $ — Cash flow hedge of LIBOR based loans Other liabilities $ 50,000 $ 35 $ 100,000 $ 2,029 Derivatives not designated as hedging instruments under ASC 815 September 30, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 46,258 $ 1,349 $ 54,760 $ 756 Zero premium collar Other assets 75,205 5,988 83,385 1,205 $ 121,463 $ 7,337 $ 138,145 $ 1,961 Dealer offsets to customer swap positions Other liabilities $ 46,258 $ 1,448 $ 54,760 $ 770 Dealer offset to zero premium collar Other liabilities 75,205 6,558 83,385 1,226 Credit risk participation Other liabilities 8,126 7 9,532 2 $ 129,589 $ 8,013 $ 147,677 $ 1,998 The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income for the three and nine months ended September 30, 2019 and 2018. Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivative Recognized in Income on Derivative (in thousands) Income on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest rate products Other income / (expense) $ (292) $ 10 $ (633) $ 132 Other contracts Other income / (expense) (1) — (4) 4 Total $ (293) $ 10 $ (637) $ 136 Fee income Other income / (expense) $ — $ 10 $ — $ 18 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, 2019 and 2018: Derivatives in Cash Flow Hedging Relationships Three Months Ended September 30, Nine Months Ended September 30, Amount of Gain or Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified (Loss) Recognized in Gain or (Loss) Reclassified OCI on Derivatives from Accumulated OCI in OCI on Derivatives from Accumulated OCI in (Effective Portion) Income (Effective Portion) (Effective Portion) Income (Effective Portion) (in thousands) 2019 2018 Location 2019 2018 2019 2018 Location 2019 2018 Interest rate swaps $ 2,212 $ (598) Interest income $ (113) $ (18) $ 5,303 $ (3,093) Interest income $ (242) $ 103 |
Other Borrowings and Long Term
Other Borrowings and Long Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Other Borrowings and Long Term Debt | |
Other Borrowings and Long Term Debt | NOTE 12 – OTHER BORROWINGS AND LONG TERM DEBT There were no Federal Home Loan Bank borrowings outstanding as of December 31, 2018. Federal Home Loan Bank borrowings as of September 30, 2019 are as follows: September 30, 2019 Balance Interest Rate (in thousands) FHLB short-term borrowings: Fixed rate advance maturing October 7, 2019 $ 45,000 2.08 % Fixed rate advance maturing October 8, 2019 31,000 2.08 Total $ 76,000 Interest expense for FHLB borrowings for the three and nine months ended September 30, 2019 was $390,000 and $660,000, respectively. Interest expense for FHLB borrowings for the three and nine months ended September 30, 2018 was $637,000 and $1.9 million, respectively. At September 30, 2019, the Company had available line of credit commitments with the FHLB totaling $716.5 million, with $76.0 million in outstanding FHLB advances. However, based on actual collateral pledged, $163.7 million was available. At September 30, 2019, the Company had an available line of credit based on the collateral available of $367.4 million with the Federal Reserve Bank of Atlanta. Interest expense on federal funds purchased for the three and nine months ended September 30, 2019 totaled $99,000 and $385,000, respectively, and $77,000 and $244,000 for the three and nine months ended September 30, 2018, respectively. 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. From 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, 2019 December 31, 2018 (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 $ 50,000 Principal amount of subordinated debt $ 50,000 $ 50,000 Less debt issuance costs 169 296 Subordinated debt, net $ 49,831 $ 49,704 All subordinated debt outstanding at September 30, 2019 matures after more than five years. |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Share-Based Compensation | |
Share-Based Compensation | NOTE 13 – SHARE-BASED COMPENSATION Atlantic Capital sponsors a stock incentive plan for the benefit of directors and employees. Under the Company’s 2015 Stock Incentive Plan (as amended and restated effective May 16, 2018), there were approximately 4,525,000 shares reserved for issuance to directors and employees. The Compensation Committee has the authority to grant the following: 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, 2019, approximately 3,345,000 additional awards were available to be 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. The Company estimates the fair value of its options awards using the Black-Scholes option pricing model. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. The table below summarizes the assumptions used to calculate the fair value of options granted/modified during the nine months ended September 30, 2019 and 2018: For the nine months ended September 30, 2019 2018 Risk‑free interest rate 2.27 % 1.66 % Expected term in years 1.73-1.82 0.25 Expected stock price volatility 26.8 % 24.2 % Dividend yield — % — % The following table represents stock option activity for the nine months ended September 30, 2019: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2018 442,454 $ 12.02 Granted/modified (1) 12,500 10.00 Exercised (79,980) 13.05 Forfeited (1) (38,500) 13.17 Expired (7,144) 17.79 Outstanding, September 30, 2019 329,330 $ 11.44 2.61 $ 2,018 Exercisable, September 30, 2019 309,330 $ 11.21 2.38 $ 1,971 (1) During the nine months ended September 30, 2019, the Company modified options for 12,500 shares. The modifications are included as shares granted/modified and as shares forfeited in this table. Atlantic Capital recognized compensation expense relating to stock options of $18,000 and $151,000 for the three and nine months ended September 30, 2019, respectively, and $70,000 and $167,000 for the three and nine months ended September 30, 2018, 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. In April 2018, the Company granted performance share awards to members of executive management under Atlantic Capital’s Long Term Incentive Plan (“LTIP”). The Company also granted restricted stock awards to certain employees and directors in 2019 under the 2015 Stock Incentive Plan. The following table represents restricted stock and performance share award activity for the nine months ended September 30, 2019: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2018 272,695 $ 18.09 Granted/modified (1) 158,593 19.19 Vested (68,198) 16.54 Forfeited (1) (67,663) 18.34 Outstanding, September 30, 2019 295,427 $ 18.97 (1) During the nine months ended September 30, 2019, the Company modified 4,719 restricted stock awards. The modifications are included as shares granted/modified and as shares forfeited in this table. 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. Compensation expense for performance share awards is based on the fair value of Atlantic Capital’s stock at the grant date adjusted for market conditions, as well as the subsequent achievement of performance conditions over the vesting period. The value of restricted stock and performance share grants that are expected to vest is amortized into expense over the vesting period. For the three months ended September 30, 2019 and 2018, compensation expense of $454,000 and $444,000, respectively, was recognized related to restricted stock and performance share awards. For the nine months ended September 30, 2019 and 2018, compensation expense of $1.2 million and $1.3 million respectively, was recognized related to restricted stock and performance share awards. As of September 30, 2019, there was $2.6 million 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 2.27 years. During the nine months ended September 30, 2019, the Company modified options for 12,500 shares and 4,719 restricted stock awards to two individuals. The modifications allowed for the immediate vesting of the awards upon retirement, as defined in the 2015 Stock Incentive Plan. The total incremental cost resulting from the modifications was $31,000 for the nine months ended September 30, 2019. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | NOTE 14 – FAIR VALUE MEASUREMENTS Atlantic Capital follows the guidance pursuant to ASC 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, goodwill, intangible assets, SBIC investments, loans held for sale, impaired loans and other real estate owned at fair value on a nonrecurring basis if necessary. 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 the three or nine months ended September 30, 2019 and 2018. 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, 2019 and December 31, 2018. Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total (in thousands) Securities available-for-sale— U.S. states and political subdivisions $ — $ 84,744 $ — $ 84,744 Trust preferred securities — 4,600 — 4,600 Corporate debt securities — 19,826 — 19,826 Mortgage-backed securities — 177,615 — 177,615 Total securities available-for-sale $ — $ 286,785 $ — $ 286,785 Interest rate derivative assets $ — $ 13,062 $ — $ 13,062 Interest rate derivative liabilities $ — $ 8,048 $ — $ 8,048 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Totals (in thousands) Securities available-for-sale— U.S. government agencies $ — $ 26,849 $ — $ 26,849 U.S. states and political subdivisions — 84,834 — 84,834 Trust preferred securities — 4,400 — 4,400 Corporate debt securities — 12,363 — 12,363 Mortgage-backed securities — 274,040 — 274,040 Total securities available-for-sale $ — $ 402,486 $ — $ 402,486 Interest rate derivative assets $ — $ 1,961 $ — $ 1,961 Interest rate derivative liabilities $ — $ 4,027 $ — $ 4,027 For the nine months ended September 30, 2019 and 2018, there was not a change in the methods and significant assumptions used to estimate fair value. 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, 2019 and December 31, 2018. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value September 30, 2019 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,724 $ 4,724 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2018 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 1,836 $ 1,836 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. 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 loans held for investment, fair value is measured using the exit price notion. 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 equals quoted market prices, if available. If a quoted market price is not available, fair value is estimated used quoted market prices for similar securities or dealer quotes. 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, 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 following table presents the estimated fair values of Atlantic Capital’s financial instruments at September 30, 2019 and December 31, 2018. Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 42,577 $ 42,577 $ — $ — Interest-bearing deposits in banks 27,167 27,167 — — Total securities available-for-sale 286,785 — 286,785 — Total securities held to maturity 42,863 — 42,740 — FHLB stock 5,910 — — 5,910 Federal Reserve Bank stock 9,998 — — 9,998 Loans held for investment, net 1,817,593 — — 1,840,169 Loans held for sale 916 — 916 — Derivative assets 13,062 — 13,062 — Financial liabilities: Deposits $ 1,854,272 $ — $ 1,803,960 $ — Federal funds purchased 57,000 57,000 — — Subordinated debt 49,831 — 50,146 — FHLB advances 76,000 — 76,025 — Derivative financial instruments 8,048 — 8,048 — Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 42,895 $ 42,895 $ — $ — Interest-bearing deposits in other banks 216,040 216,040 — — Other short-term investments 9,457 9,457 — — Total securities available-for-sale 402,486 — 402,486 — FHLB stock 2,622 — — 2,622 Federal Reserve Bank stock 9,906 — — 9,906 Loans held for investment, net 1,710,222 — — 1,740,438 Loans held for sale 5,889 — 5,889 — Loans held for sale - discontinued operations 373,030 — 373,030 — Derivative assets 1,961 — 1,961 — Financial liabilities: Deposits $ 1,952,514 $ — $ 1,830,673 $ — Deposits to be assumed - discontinued operations 585,429 — 585,429 — Securities sold under agreements to repurchase - discontinued operations 6,220 6,220 — — Subordinated debt 49,704 — 48,960 — Derivative financial instruments 4,027 — 4,027 — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Commitments and Contingencies | NOTE 15 – 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, 2019 and December 31, 2018 was as follows: September 30, 2019 December 31, 2018 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 679,732 $ 715,591 Standby letters of credit 7,563 15,650 $ 687,295 $ 731,241 Minimum lease payments $ 16,669 $ 22,014 The Company also had commitments related to investments in SBICs totaling $2.9 million and $3.2 million at September 30, 2019 and December 31, 2018, respectively. From time to time, 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. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Revenue Recognition | NOTE 16 – REVENUE RECOGNITION On January 1, 2018, the Company adopted ASU No. 2014‑09 “Revenue from Contracts with Customers” (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note 2, Accounting Standards Updates and Recently Adopted Standards , the implementation of the new standard did not result in any significant changes to the Company’s methodology of recognizing revenue; as such, the Company recorded an immaterial cumulative effect adjustment to first quarter 2018 opening retained earnings. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with financial guarantees and derivatives are not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as service charges on deposit accounts and trust and asset management income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams within the scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges represent general service fees for monthly account maintenance and activity, or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when the performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed, such as a wire transfer or ATM withdrawal. Payment for such performance obligations are generally received at the time the performance obligations are satisfied. The following table presents service charges by type of service provided for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Deposit account analysis fees and charges $ 672 $ 566 $ 1,894 $ 1,601 ATM fees — 56 39 162 NSF fees 18 20 40 86 Wire fees 124 110 336 303 Foreign exchange fees 110 50 275 176 Other 1 2 5 11 Total service charges - continuing operations 925 804 2,589 2,339 Service charges - discontinued operations — 474 527 1,439 Total service charges $ 925 $ 1,278 $ 3,116 $ 3,778 Trust and Asset Management Trust and asset management income is primarily comprised of fees earned from the management and administration of trusts and other customer assets. The Company’s performance obligation is generally satisfied over time and the resulting fees are recognized monthly, based upon the month-end market value of the assets under management and the applicable fee rate. Payment is generally received a few days after month end through a direct charge to customers’ accounts. The Company’s performance obligation for these transactional-based services is generally satisfied, and related revenue recognized, at a point in time (i.e., as incurred). Payment is received shortly after services are rendered. During the second quarter of 2018, Atlantic Capital sold its trust business, Southeastern Trust Company. The following table presents trust income by type of service provided for the three and nine months ended September 30, 2018: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Personal trust and agency accounts $ — $ — $ — $ 616 Employee benefit and retirement-related trust and agency accounts — — — 120 Investment management and investment advisory agency accounts — — — 217 Custody and safekeeping accounts — — — 26 Other — — — 46 $ — $ — $ — $ 1,025 Other Other noninterest income consists of other recurring revenue streams such as check printing income, safety deposit box rental fees, and other miscellaneous revenue streams. Check printing income is recognized ratably over the contract period as the Company satisfies its performance obligation to sell a specific number of check packages. Safe deposit box rental fees are charged to the customer annually and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of September 30, 2019 and December 31, 2018, the Company did not have any significant contract balances. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Leases | NOTE 17 – LEASES A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016‑02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Operating leases in which the Company is the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on the Consolidated Balance Sheets. The Company does not currently have any significant finance leases in which it is the lessee. Operating lease ROU assets represent the Company’s right to use an underlying asset during the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents the Company’s incremental borrowing rate at the lease commencement date. ROU assets are further adjusted for lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in net occupancy expense in the Consolidated Statements of Income. The Company’s leases relate primarily to office space and bank branches with remaining lease terms of generally 1 to 12 years. Certain lease arrangements contain extension options which typically range from 5 to 10 years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. Portions of certain properties are subleased for terms extending through 2024. As of September 30, 2019, operating lease ROU assets and liabilities were $9.9 million and $13.9 million, respectively. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less) on the Consolidated Balance Sheets. Additionally, the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component. The table below summarizes the Company’s net lease cost: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Operating lease cost $ 509 $ 1,635 Short-term lease cost 11 37 Sublease income (70) (186) Net lease cost $ 450 $ 1,486 The tables below summarize other information related to the Company’s operating leases: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 551 $ 1,594 Right-of-use assets obtained in exchange for new finance lease liabilities — 15,207 September 30, 2019 Weighted-average remaining lease term - operating leases 9.00 Weighted-average discount rate - operating leases 3.3 % The table below summarizes the maturity of remaining lease liabilities: September 30, 2019 (in thousands) Twelve Months Ended: September 30, 2020 $ 2,143 September 30, 2021 1,898 September 30, 2022 1,948 September 30, 2023 1,670 September 30, 2024 1,492 Thereafter 7,518 Total future minimum lease payments 16,669 Less: Interest (2,766) Present value of net future minimum lease payments $ 13,903 On April 5, 2019, Atlantic Capital completed the sale to FirstBank of its Tennessee and northwest Georgia banking operations, including 14 branches. Eight of these properties were owned by Atlantic Capital and nine were leased. The Company’s ROU asset and lease liability were reduced during the second quarter of 2019 by $3.6 million and $4.1 million, respectively, as a result of this divestiture. |
Accounting Policies and Basis_2
Accounting Policies and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Standards Updates and Recently Adopted Standards | |
Basis of Presentation | Basis of Presentation The accounting and financial reporting policies of Atlantic Capital Bancshares, Inc. (“Atlantic Capital” or the “Company”) and its subsidiary, Atlantic Capital Bank, N.A. (the “Bank”), 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. 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 Annual Report on Form 10‑K. 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 |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02, “Leases.” Under the new guidance, leases classified as operating leases under previous GAAP must be recorded on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term. In July 2018, the FASB issued ASU No. 2018‑10, “Codification Improvements to Topic 842, Leases and ASU No. 2018‑11, Leases (Topic 842): Targeted Improvements .” ASU No. 2018‑10 provides improvements related to ASU No. 2016‑02 to increase stakeholders’ awareness of the amendments and to expedite the improvements. The amendments affect narrow aspects of the guidance issued in ASU No. 2016‑02. ASU No. 2018‑11 allows entities adopting ASU No. 2016‑02 to choose an additional (and optional) transition method, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments in these updates became effective for the Company on January 1, 2019. The impact of adoption was recording a lease liability of approximately $18.9 million in other liabilities on the Consolidated Balance Sheets, a ROU asset of approximately $14.5 million in premises and equipment, and a cumulative effect adjustment to retained earnings, net of tax, of approximately $373,000. Recently Issued Accounting Pronouncements Not Yet Adopted In May 2019, the FASB issued ASU No. 2019‑05, “ Financial Instruments - Credit Losses (Topic 326); Targeted Transition Relief .” This ASU allows entities to irrevocably elect, upon adoption of ASU 2016‑13, the fair value option on financial instruments that (1) were previously recorded at amortized cost and (2) are within the scope of Accounting Standards Codification (“ASC”) 326‑20 if the instruments are eligible for the fair value option under ASC 825‑10. The fair value option election does not apply to held-to-maturity debt securities. Entities are required to make this election on an instrument-by-instrument basis. ASU 2019‑05 has the same effective date as ASU 2016‑13 (i.e., the first quarter of 2020). The Company does not expect to elect the fair value option, and therefore, ASU 2019‑05 is not expected to impact the Company’s consolidated financial statements. In August 2018, the FASB issued ASU No. 2018‑13, “Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” The amendments in this update modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosures. The update is effective for interim and annual periods in fiscal years beginning after December 31, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The adoption will not have a material effect on the Company’s consolidated financial statements. In March 2017, the FASB issued ASU 2017‑08, “Receivables - Nonrefundable Fees and Other Costs (Subtopic 310‑20): Premium Amortization on Purchased Callable Debt Securities.” This guidance shortens the premium amortization period for certain callable debt securities by requiring amortization to the earliest call date. The standard is effective for public companies for annual and interim periods beginning after December 15, 2020. The adoption of this update is not expected to have a material impact on Atlantic Capital’s consolidated financial statements. In January 2017, the FASB issued ASU 2017‑04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment,” which intends to simplify goodwill impairment testing by eliminating the second step of the analysis under which the implied fair value of goodwill is determined as if the reporting unit were being acquired in a business combination. The update instead requires entities to compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for any amount by which the carrying amount exceeds the reporting unit’s fair value, to the extent that the loss recognized does not exceed the amount of goodwill allocated to that reporting unit. ASU 2017‑04 must be applied prospectively and is effective for the Company on January 1, 2020. Early adoption is permitted. Atlantic Capital does not expect the new guidance to have a material impact on its financial condition or results of operations. In June 2016, the FASB issued ASU 2016‑13, “Financial Instruments - Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments.” ASU 2016‑13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in more timely recognition of credit losses. ASU 2016‑13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. ASU 2016‑13 is effective for public companies for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Entities will apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company is implementing a software package supported by a third-party vendor. The Company’s CECL working group is meeting regularly with a CECL Management Group and the Company’s Board of Directors to discuss implementation progress and methodology selections. Progress has been made on life-of-loan loss calculations and on economic forecasting methods that will be utilized in the modeling process. The Company continues to refine its new methodology leading up to the adoption of the ASU and will continue to evaluate the impact of the adoption on the Company’s consolidated financial statements and disclosures. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions and Divestitures | |
Disposal Groups, Including Discontinued Operations | Components of Net Income from Discontinued Operations For the Three Months Ended September 30, For the Nine Months Ended September 30, (in thousands) 2019 2018 2019 2018 Net interest income (loss) $ — $ 3,266 $ 3,086 $ 10,915 Service charges — 474 527 1,439 Mortgage income — 315 288 982 Gain on sale of branches — — 34,475 — Other income — 22 (1) 76 Total noninterest income — 811 35,289 2,497 Salaries and employee benefits — 2,820 2,757 8,957 Occupancy — 556 410 1,537 Equipment and software — 217 131 621 Amortization of intangibles — 296 247 958 Communications and data processing — 381 586 1,089 Divestiture expense — — 5,095 — Other noninterest expense — 453 459 1,403 Total noninterest expense — 4,723 9,685 14,565 Net income (loss) before provision for income taxes — (646) 28,690 (1,153) Provision (benefit) for income taxes (617) (161) 6,993 (288) Net income (loss) from discontinued operations $ 617 $ (485) $ 21,697 $ (865) Assets and Liabilities from Discontinued Operations (in thousands) September 30, 2019 December 31, 2018 Cash $ — $ 4,234 Loans held for sale - discontinued operations — 373,030 Premises held for sale - discontinued operations — 7,722 Goodwill - discontinued operations — 4,555 Core deposit intangible — 1,405 Total assets $ — $ 390,946 Deposits to be assumed - discontinued operations $ — $ 585,429 Securities sold under agreements to repurchase - discontinued operations — 6,220 Total liabilities $ — $ 591,649 Net liabilities $ — $ (200,703) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Offsetting | |
Offsetting Assets | The following table presents a summary of amounts outstanding under reverse repurchase agreements, repurchase agreements, and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of September 30, 2019 and December 31, 2018. While these agreements are typically over-collateralized, GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral September 30, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 13,062 $ — $ 13,062 $ — $ — $ 13,062 Total $ 13,062 $ — $ 13,062 $ — $ — $ 13,062 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives 8,047 — 8,047 (8,047) — — Total $ 8,047 $ — $ 8,047 $ (8,047) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2018 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 9,457 $ — $ 9,457 $ (9,457) $ — $ — Derivatives 1,961 — 1,961 — — 1,961 Total $ 11,418 $ — $ 11,418 $ (9,457) $ — $ 1,961 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Repurchase agreements - discontinued operations $ 6,220 $ — $ 6,220 $ (6,220) $ — $ — Derivatives 4,027 — 4,027 (4,027) — — Total $ 10,247 $ — $ 10,247 $ (10,247) $ — $ — |
Offsetting Liabilities | The following table presents a summary of amounts outstanding under reverse repurchase agreements, repurchase agreements, and derivative financial instruments including those entered into in connection with the same counterparty under master netting agreements as of September 30, 2019 and December 31, 2018. While these agreements are typically over-collateralized, GAAP requires disclosures in this table to limit the amount of such collateral to the amount of the related recognized asset or liability for each counterparty. Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash (in thousands) Recognized Offset on the Asset Financial Collateral September 30, 2019 Assets Balance Sheet Balance Instruments Received Net Amount Derivatives $ 13,062 $ — $ 13,062 $ — $ — $ 13,062 Total $ 13,062 $ — $ 13,062 $ — $ — $ 13,062 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Derivatives 8,047 — 8,047 (8,047) — — Total $ 8,047 $ — $ 8,047 $ (8,047) $ — $ — Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Asset Financial Collateral December 31, 2018 Assets Balance Sheet Balance Instruments Received Net Amount Reverse repurchase agreements $ 9,457 $ — $ 9,457 $ (9,457) $ — $ — Derivatives 1,961 — 1,961 — — 1,961 Total $ 11,418 $ — $ 11,418 $ (9,457) $ — $ 1,961 Gross Amounts not Offset in the Gross Balance Sheet Amounts of Gross Amounts Net Cash Recognized Offset on the Liability Financial Collateral Liabilities Balance Sheet Balance Instruments Pledged Net Amount Repurchase agreements - discontinued operations $ 6,220 $ — $ 6,220 $ (6,220) $ — $ — Derivatives 4,027 — 4,027 (4,027) — — Total $ 10,247 $ — $ 10,247 $ (10,247) $ — $ — |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Securities | |
Schedule of Securities Available-For-Sale and Held-to-Maturity Reconciliation | The following table presents the amortized cost, unrealized gains and losses, and fair value of securities available-for-sale and held-to-maturity at September 30, 2019 and December 31, 2018 . Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value (in thousands) September 30, 2019 Available-For-Sale U.S. states and political divisions $ 83,922 $ 1,015 $ (193) $ 84,744 Trust preferred securities 4,801 — (201) 4,600 Corporate debt securities 19,564 264 (2) 19,826 Residential mortgage-backed securities 174,826 3,243 (454) 177,615 Total available-for-sale 283,113 4,522 (850) 286,785 Held-to-Maturity U.S. states and political divisions 42,863 46 (169) 42,740 Total held-to-maturity 42,863 46 (169) 42,740 Total securities $ 325,976 $ 4,568 $ (1,019) $ 329,525 December 31, 2018 Debt securities— U.S. Government agencies $ 27,259 $ 24 $ (434) $ 26,849 U.S. states and political divisions 91,864 40 (7,070) 84,834 Trust preferred securities 4,781 — (381) 4,400 Corporate debt securities 12,855 — (492) 12,363 Residential mortgage-backed securities 277,524 2,726 (6,210) 274,040 Total securities $ 414,283 $ 2,790 $ (14,587) $ 402,486 |
Investments Classified by Contractual Maturity Date | The following table presents the amortized cost and fair value of available-for-sale and held-to-maturity debt securities by contractual maturity at September 30, 2019. 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 Held-to-Maturity Amortized Fair Amortized Fair Cost Value Cost Value (in thousands) (in thousands) Within 1 year $ — $ — $ — $ — Over 1 year through 5 years 10,594 10,701 — — 5 years to 10 years 30,268 30,402 — — Over 10 years 67,425 68,067 42,863 42,740 108,287 109,170 42,863 42,740 Residential mortgage-backed securities 174,826 177,615 — — Total $ 283,113 $ 286,785 $ 42,863 $ 42,740 |
Continuous Unrealized Loss Position, Fair Value | The following table summarizes available-for-sale and held-to-maturity securities in an unrealized loss position as of September 30, 2019 and December 31, 2018. Less than 12 months 12 months or greater Totals Fair Unrealized Fair Unrealized Fair Unrealized September 30, 2019 Value Losses Value Losses Value Losses (in thousands) Available-for-Sale U.S. states and political divisions $ 20,616 $ (144) $ 4,097 $ (49) $ 24,713 $ (193) Trust preferred securities — — 4,600 (201) 4,600 (201) Corporate debt securities — — 1,003 (2) 1,003 (2) Residential mortgage-backed securities 8,182 (21) 31,820 (433) 40,002 (454) Total available-for-sale 28,798 (165) 41,520 (685) 70,318 (850) Held-to-Maturity U.S. states and political divisions 20,179 (169) — — 20,179 (169) Total held-to-maturity 20,179 (169) — — 20,179 (169) Total securities $ 48,977 $ (334) $ 41,520 $ (685) $ 90,497 $ (1,019) December 31, 2018 U.S. Government agencies $ 1,487 $ (19) $ 21,849 $ (415) $ 23,336 $ (434) U.S. states and political divisions 2,351 (54) 75,234 (7,016) 77,585 (7,070) Trust preferred securities — — 4,400 (381) 4,400 (381) Corporate debt securities 6,009 (60) 6,354 (432) 12,363 (492) Residential mortgage-backed securities 30,938 (152) 196,745 (6,058) 227,683 (6,210) Total securities $ 40,785 $ (285) $ 304,582 $ (14,302) $ 345,367 $ (14,587) |
Schedule of Realized Gain (Loss) on Securities | 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, 2019 and 2018. Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 (in thousands) Proceeds from sales $ 62,025 $ — $ 116,963 $ 24 Gross realized gains 553 $ — $ 1,675 $ — Gross realized losses (300) — (768) (2) Net gains (losses) on sales of securities $ 253 $ — $ 907 $ (2) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans and Allowance for Loan Losses | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The composition of the loan portfolio as of September 30, 2019 and December 31, 2018, is summarized below. September 30, 2019 December 31, 2018 (in thousands) Loans held for sale Loans held for sale - discontinued operations $ — $ 373,030 Loans held for sale - continuing operations 916 5,889 Total loans held for sale $ 916 $ 378,919 Loans held for investment Commercial loans: Commercial and industrial $ 697,412 $ 645,374 Commercial real estate 865,525 794,828 Construction and land 145,177 156,232 Mortgage warehouse participations 23,256 27,967 Total commercial loans 1,731,370 1,624,401 Residential: Residential mortgages 31,903 32,800 Home equity 25,638 22,822 Total residential loans 57,541 55,622 Consumer 27,168 25,851 Other 22,533 24,712 Total loans 1,838,612 1,730,586 Less net deferred fees and other unearned income (2,939) (2,513) Less allowance for loan losses (18,080) (17,851) Loans held for investment, net $ 1,817,593 $ 1,710,222 |
Schedule of Accretable Yield | The following table presents changes in the value of the accretable yield for acquired loans accounted for under ASC 310‑30 for the three and nine months ended September 30, 2019 and 2018. For the Three Months Ended For the Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (in thousands) Balance at beginning of period $ — $ 2,456 $ — $ 2,316 Accretion — (299) — (898) Reclassification of nonaccretable discount due to change in expected cash flows — 180 — 473 Other changes, net — 96 — 542 Balance at end of period $ — $ 2,433 $ — $ 2,433 |
Schedule of Allowance for Credit Losses on Financing Receivables | The following table presents the balance and activity in the allowance for loan losses by portfolio segment for the three and nine months ended September 30, 2019 and 2018. For the Three Months Ended September 30, 2019 2018 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 17,817 $ 164 $ 205 $ 18,186 $ 18,491 $ 811 $ 281 $ 19,583 Provision for loan losses 434 (24) 3 413 761 109 (25) 845 Loans charged-off (541) — (2) (543) — — — — Recoveries 18 — 6 24 — — 15 15 Total ending allowance balance $ 17,728 $ 140 $ 212 $ 18,080 $ 19,252 $ 920 $ 271 $ 20,443 For the Nine Months Ended September 30, 2019 2018 Commercial Residential Consumer Total Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Beginning balance $ 17,322 $ 292 $ 237 $ 17,851 $ 18,267 $ 802 $ 275 $ 19,344 Provision for loan losses 2,096 (151) (20) 1,925 1,115 348 (19) 1,444 Loans charged-off (1,725) (9) (39) (1,773) (176) (230) (13) (419) Recoveries 35 8 34 77 46 — 28 74 Total ending allowance balance $ 17,728 $ 140 $ 212 $ 18,080 $ 19,252 $ 920 $ 271 $ 20,443 |
Schedule of Allowance for Loan Losses and Recorded Investment by Portfolio Segment | 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, 2019 and December 31, 2018. September 30, 2019 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 658 $ — $ — $ 658 Collectively evaluated for impairment 17,070 140 212 17,422 Total ending allowance balance $ 17,728 $ 140 $ 212 $ 18,080 Loans: Loans individually evaluated for impairment $ 21,461 $ 726 $ — $ 22,187 Loans collectively evaluated for impairment 1,709,909 56,815 49,701 1,816,425 Total ending loans balance $ 1,731,370 $ 57,541 $ 49,701 $ 1,838,612 December 31, 2018 Commercial Residential Consumer Total (in thousands) Allowance for loan losses: Ending allowance balance attributable to loans Individually evaluated for impairment $ 317 $ — $ — $ 317 Collectively evaluated for impairment 17,005 292 237 17,534 Total ending allowance balance $ 17,322 $ 292 $ 237 $ 17,851 Loans: Loans individually evaluated for impairment $ 10,273 $ 161 $ — $ 10,434 Loans collectively evaluated for impairment 1,614,128 55,461 50,563 1,720,152 Total ending loans balance $ 1,624,401 $ 55,622 $ 50,563 $ 1,730,586 |
Impaired Financing Receivables | The following table presents information on Atlantic Capital’s impaired loans for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended September 30, 2019 2018 Average Balance Interest Income Average Balance Interest Income Unpaid of Recorded Recognized Unpaid of Recorded Recognized Principal Recorded Related Investment While During Principal Recorded Related Investment While During Balance Investment Allowance Impaired Impairment Balance Investment Allowance Impaired Impairment (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ 5,897 $ 5,403 $ — $ 5,451 $ 40 $ 4,455 $ 4,455 $ — $ 4,488 $ 57 Commercial real estate 4,900 4,737 — 3,589 47 1,725 1,562 — 1,569 — Construction and land — — — — — — — — — — Residential mortgages 71 25 — 25 — 237 192 — 201 1 Home equity 700 700 — 700 — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,568 $ 10,865 $ — $ 9,765 $ 87 $ 6,417 $ 6,209 $ — $ 6,258 $ 58 Impaired loans with an allowance recorded: Commercial and industrial $ 3,348 $ 3,348 $ 476 $ 3,376 $ — $ — $ — $ — $ — $ — Commercial real estate 7,974 7,974 183 7,989 63 4,616 4,616 257 4,616 — Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,322 $ 11,322 $ 659 $ 11,365 $ 63 $ 4,616 $ 4,616 $ 257 $ 4,616 $ — Total impaired loans $ 22,890 $ 22,187 $ 659 $ 21,130 $ 150 $ 11,033 $ 10,825 $ 257 $ 10,874 $ 58 For the Nine Months Ended September 30, 2019 2018 Average Balance Interest Income Average Balance Interest Income Unpaid of Recorded Recognized Unpaid of Recorded Recognized Principal Recorded Related Investment While During Principal Recorded Related Investment While During Balance Investment Allowance Impaired Impairment Balance Investment Allowance Impaired Impairment (in thousands) Impaired loans with no related allowance recorded: Commercial and industrial $ 5,897 $ 5,403 $ — $ 5,541 $ 122 $ 4,455 $ 4,455 $ — $ 4,584 $ 173 Commercial real estate 4,900 4,737 — 4,127 149 1,725 1,562 — 1,577 — Construction and land — — — — — — — — — — Residential mortgages 71 25 — 25 — 237 192 — 203 2 Home equity 700 700 — 700 — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,568 $ 10,865 $ — $ 10,393 $ 271 $ 6,417 $ 6,209 $ — $ 6,364 $ 175 Impaired loans with an allowance recorded: Commercial and industrial $ 3,348 $ 3,348 $ 476 $ 3,811 $ 52 $ — $ — $ — $ — $ — Commercial real estate 7,974 7,974 183 7,989 359 4,616 4,616 257 4,616 — Construction and land — — — — — — — — — — Residential mortgages — — — — — — — — — — Home equity — — — — — — — — — — Mortgage warehouse — — — — — — — — — — Consumer — — — — — — — — — — Total $ 11,322 $ 11,322 $ 659 $ 11,800 $ 411 $ 4,616 $ 4,616 $ 257 $ 4,616 $ — Total impaired loans $ 22,890 $ 22,187 $ 659 $ 22,193 $ 682 $ 11,033 $ 10,825 $ 257 $ 10,980 $ 175 |
Troubled Debt Restructurings on Financing Receivables | Loans, by portfolio class, modified as TDRs during the three and nine months ended September 30, 2019 are as follows. Pre-Modification Post-Modification Outstanding Outstanding Number of Loans Recorded Investment Recorded Investment (in thousands) Three Months Ended September 30, 2019 Commercial real estate 1 $ 1,512 $ 1,512 Total 1 $ 1,512 $ 1,512 Nine Months Ended September 30, 2019 Commercial and industrial 6 $ 1,235 $ 1,235 Commercial real estate 3 2,438 2,438 Total 9 $ 3,673 $ 3,673 |
Schedule of Financing Receivable Credit Quality Indicators | As of September 30, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows. Total loans at December 31, 2018 includes loans held for sale - discontinued operations. Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) September 30, 2019 Commercial and industrial $ 663,678 $ 11,548 $ 16,676 $ 5,510 $ — $ 697,412 Commercial real estate 842,180 3,205 19,838 302 — 865,525 Construction and land 145,177 — — — — 145,177 Residential mortgages 31,524 — 121 258 — 31,903 Home equity 24,938 — — 700 — 25,638 Mortgage warehouse 23,256 — — — — 23,256 Consumer/Other 48,618 600 483 — — 49,701 Total loans $ 1,779,371 $ 15,353 $ 37,118 $ 6,770 $ — $ 1,838,612 Special Substandard Substandard Doubtful Pass Mention Accruing Nonaccruing Nonaccruing Total (in thousands) December 31, 2018 Commercial and industrial $ 671,992 $ 6,802 $ 22,777 $ 832 $ — $ 702,403 Commercial real estate 946,612 4,754 14,914 126 1,647 968,053 Construction and land 169,687 40 25 — — 169,752 Residential mortgages 118,265 1,119 1,441 1,138 281 122,244 Home equity 54,707 92 294 499 — 55,592 Mortgage warehouse 22,192 5,775 — — — 27,967 Consumer/Other 57,268 66 97 174 — 57,605 Total loans $ 2,040,723 $ 18,648 $ 39,548 $ 2,769 $ 1,928 $ 2,103,616 |
Schedule of Past Due Financing Receivables | The following table presents the aging of the recorded investment in past due loans as of September 30, 2019 and December 31, 2018 by class of loans. Total loans at December 31, 2018 includes loans held for sale - discontinued operations. As of September 30, 2019 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 691,605 $ 297 $ — $ 5,510 $ 697,412 Commercial real estate 862,229 2,994 — 302 865,525 Construction and land 144,068 1,109 — — 145,177 Residential mortgages 31,487 158 — 258 31,903 Home equity 24,938 — — 700 25,638 Mortgage warehouse 23,256 — — — 23,256 Consumer 48,153 1,548 — — 49,701 Total Loans $ 1,825,736 $ 6,106 $ — $ 6,770 $ 1,838,612 As of December 31, 2018 Accruing 30‑89 Accruing Accruing Days 90+ Days Current Past Due Past Due Nonaccruing Total (in thousands) Loans by Classification Commercial and industrial $ 692,308 $ 8,785 $ 478 $ 832 $ 702,403 Commercial real estate 963,579 2,701 — 1,773 968,053 Construction and land 169,752 — — — 169,752 Residential mortgages 119,932 893 — 1,419 122,244 Home equity 54,714 379 — 499 55,592 Mortgage warehouse 27,967 — — — 27,967 Consumer 57,371 59 1 174 57,605 Total Loans $ 2,085,623 $ 12,817 $ 479 $ 4,697 $ 2,103,616 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets | |
Schedule of Intangible Assets and Goodwill | The carrying amount of goodwill and other intangible assets as of September 30, 2019 and December 31, 2018 is summarized below: September 30, December 31, 2019 2018 (in thousands) Core deposit intangible $ 9,544 $ 9,544 Less: accumulated amortization (6,100) (5,853) Less: impairment to-date related to divested branches (3,444) (2,286) Core deposit intangible, net - discontinued operations — 1,405 Servicing assets, net 3,112 2,983 Total intangibles subject to amortization, net 3,112 4,388 Goodwill - discontinued operations — 4,555 Goodwill - continuing operations 19,925 17,135 Total goodwill and other intangible assets, net $ 23,037 $ 26,078 For the Three Months Ended September 30, For the Nine Months Ended September 30, Goodwill Core Deposit Intangible Total Goodwill Core Deposit Intangible Total (in thousands) 2019 Balance, beginning of period $ 19,925 $ — $ 19,925 $ 21,690 $ 1,405 $ 23,095 Amortization — — — — (247) (247) Impairment, due to Branch Sale — — — (1,765) (1,158) (2,923) Balance, end of period $ 19,925 $ — $ 19,925 $ 19,925 $ — $ 19,925 2018 Balance, beginning of period $ 21,690 $ 1,972 $ 23,662 $ 21,759 $ 2,634 $ 24,393 Amortization — (296) (296) — (958) (958) Impairment, due to trust business sale — — — (69) — (69) Balance, end of period $ 21,690 $ 1,676 $ 23,366 $ 21,690 $ 1,676 $ 23,366 |
Servicing Assets (Tables)
Servicing Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Servicing Assets | |
Changes in the Balance of Servicing Assets | Changes in the balance of servicing assets for the three and nine months ended September 30, 2019 and 2018 are presented in the following table . Three Months Ended September 30, Nine Months Ended September 30, SBA Loan Servicing Assets 2019 2018 2019 2018 (in thousands) (in thousands) Beginning carrying value, net $ 2,726 $ 2,827 $ 2,539 $ 2,635 Additions 350 120 975 739 Amortization (296) (239) (734) (666) Impairment — — — — Ending carrying value $ 2,780 $ 2,708 $ 2,780 $ 2,708 Changes in the balance of TriNet servicing assets for the three and nine months ended September 30, 2019 and 2018 are presented in the following table. Three Months Ended September 30, Nine Months Ended September 30, TriNet Servicing Assets 2019 2018 2019 2018 (in thousands) (in thousands) Beginning carrying value, net $ 369 $ 523 $ 444 $ 605 Additions — — — — Amortization (37) (40) (112) (122) Impairment — — — — Ending carrying value $ 332 $ 483 $ 332 $ 483 |
Schedule of Sensitivity to Immediate Changes in Key Economic Assumptions | At September 30, 2019 and December 31, 2018, the sensitivity of the fair value of the SBA loan servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the SBA Servicing Assets September 30, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ 3,029 $ 2,630 Weighted average life 3.90 years 4.83 years Prepayment speed: 14.71 % 11.92 % Decline in fair value due to a 10% adverse change $ (160) $ (131) Decline in fair value due to a 20% adverse change $ (271) $ (223) Weighted average discount rate 14.01 % 14.42 % Decline in fair value due to a 100 bps adverse change $ (107) $ (101) Decline in fair value due to a 200 bps adverse change $ (169) $ (165) At September 30, 2019 and December 31, 2018, the sensitivity of the fair value of the TriNet servicing assets to immediate changes in key economic assumptions are presented in the table below . Sensitivity of the TriNet Servicing Assets September 30, 2019 December 31, 2018 (dollars in thousands) Fair value of retained servicing assets $ $ Weighted average life 5.77 years 6.48 years Prepayment speed: 5.00 % 5.00 % Decline in fair value due to a 10% adverse change $ (6) $ (7) Decline in fair value due to a 20% adverse change $ (11) $ (14) Weighted average discount rate 8.00 % 8.00 % Decline in fair value due to a 100 bps adverse change $ (10) $ (13) Decline in fair value due to a 200 bps adverse change $ (20) $ (25) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
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, 2019 September 30, 2019 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ 4,774 $ (1,193) $ 3,581 $ (13,743) $ 3,438 $ (10,305) Unrealized net gains (losses) on investment securities available-for-sale 1,813 (453) 1,360 16,375 (4,096) 12,279 Reclassification adjustment for net realized (gains) losses on investment securities available-for-sale (253) 63 (190) (907) 227 (680) Unrealized net gains (losses) on derivatives 2,326 (582) 1,744 6,935 (1,734) 5,201 Accumulated other comprehensive income (loss) end of period $ 8,660 $ (2,165) $ 6,495 $ 8,660 $ (2,165) $ 6,495 For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2018 Income Income Tax Tax Pre-Tax (Expense) After-Tax Pre-Tax (Expense) After-Tax Amount Benefit Amount Amount Benefit Amount (in thousands) Accumulated other comprehensive income (loss) beginning of period $ (19,825) $ 4,958 $ (14,867) $ (6,274) $ 2,415 $ (3,859) Reclassification of tax effects from AOCI — — — — (844) (844) Unrealized net gains (losses) on investment securities available-for-sale (4,160) 1,041 (3,119) (15,097) 3,775 (11,322) Reclassification adjustment for net realized losses on investment securities available-for-sale — — — 2 (1) 1 Unrealized net gains (losses) on derivatives (579) 145 (434) (3,195) 799 (2,396) Accumulated other comprehensive income (loss) end of period $ (24,564) $ 6,144 $ (18,420) $ (24,564) $ 6,144 $ (18,420) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Common Share | |
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, 2019 and 2018. Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 (in thousands, except share and per share amounts) Net income from continuing operations $ 7,569 $ 6,998 $ 21,018 $ 20,567 Net income (loss) from discontinued operations 617 (485) 21,697 (865) Net income available to common shareholders $ 8,186 $ 6,513 $ 42,715 $ 19,702 Weighted average shares outstanding Basic (1) 22,681,904 26,103,397 23,800,525 25,956,336 Effect of dilutive securities: Stock options and performance share awards 155,627 151,375 157,390 178,319 Diluted 22,837,531 26,254,772 23,957,915 26,134,655 Net income (loss) per common share - basic Net income per common share - continuing operations $ 0.33 $ 0.27 $ 0.88 $ 0.79 Net income (loss) per common share - discontinued operations 0.03 (0.02) 0.91 (0.03) Net income per common share - basic 0.36 $ 0.25 $ 1.79 $ 0.76 Net income (loss) per common share - diluted Net income per common share - continuing operations $ 0.33 $ 0.27 $ 0.88 $ 0.79 Net income (loss) per common share - discontinued operations 0.03 (0.02) 0.91 (0.03) Net income per common share - diluted 0.36 $ 0.25 $ 1.78 $ 0.75 (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, 2019 | |
Derivatives and Hedging | |
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, 2019 and December 31, 2018: Derivatives designated as hedging instruments under ASC 815 September 30, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Cash flow hedge of LIBOR based loans Other assets $ 125,000 $ 5,725 $ — $ — Cash flow hedge of LIBOR based loans Other liabilities $ 50,000 $ 35 $ 100,000 $ 2,029 Derivatives not designated as hedging instruments under ASC 815 September 30, 2019 December 31, 2018 (in thousands) Balance Sheet Notional Notional Interest Rate Products Location Amount Fair Value Amount Fair Value Customer swap positions Other assets $ 46,258 $ 1,349 $ 54,760 $ 756 Zero premium collar Other assets 75,205 5,988 83,385 1,205 $ 121,463 $ 7,337 $ 138,145 $ 1,961 Dealer offsets to customer swap positions Other liabilities $ 46,258 $ 1,448 $ 54,760 $ 770 Dealer offset to zero premium collar Other liabilities 75,205 6,558 83,385 1,226 Credit risk participation Other liabilities 8,126 7 9,532 2 $ 129,589 $ 8,013 $ 147,677 $ 1,998 The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements of Income for the three and nine months ended September 30, 2019 and 2018. Derivatives not designated as hedging instruments under ASC 815 Location of Gain or Amount of Gain or (Loss) Amount of Gain or (Loss) (Loss) Recognized in Recognized in Income on Derivative Recognized in Income on Derivative (in thousands) Income on Derivative Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Interest rate products Other income / (expense) $ (292) $ 10 $ (633) $ 132 Other contracts Other income / (expense) (1) — (4) 4 Total $ (293) $ 10 $ (637) $ 136 Fee income Other income / (expense) $ — $ 10 $ — $ 18 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, 2019 and 2018: Derivatives in Cash Flow Hedging Relationships Three Months Ended September 30, Nine Months Ended September 30, Amount of Gain or Amount of Gain or (Loss) Recognized in Gain or (Loss) Reclassified (Loss) Recognized in Gain or (Loss) Reclassified OCI on Derivatives from Accumulated OCI in OCI on Derivatives from Accumulated OCI in (Effective Portion) Income (Effective Portion) (Effective Portion) Income (Effective Portion) (in thousands) 2019 2018 Location 2019 2018 2019 2018 Location 2019 2018 Interest rate swaps $ 2,212 $ (598) Interest income $ (113) $ (18) $ 5,303 $ (3,093) Interest income $ (242) $ 103 |
Other Borrowings and Long Ter_2
Other Borrowings and Long Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Borrowings and Long Term Debt | |
Schedule of Long-term Debt Instruments and Borrowings | Federal Home Loan Bank borrowings as of September 30, 2019 are as follows: September 30, 2019 Balance Interest Rate (in thousands) FHLB short-term borrowings: Fixed rate advance maturing October 7, 2019 $ 45,000 2.08 % Fixed rate advance maturing October 8, 2019 31,000 2.08 Total $ 76,000 Subordinated debt is summarized as follows: September 30, 2019 December 31, 2018 (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 $ 50,000 Principal amount of subordinated debt $ 50,000 $ 50,000 Less debt issuance costs 169 296 Subordinated debt, net $ 49,831 $ 49,704 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-Based Compensation | |
Schedule of Share-based Compensation, Fair Value of Options Assumptions | The table below summarizes the assumptions used to calculate the fair value of options granted/modified during the nine months ended September 30, 2019 and 2018: For the nine months ended September 30, 2019 2018 Risk‑free interest rate 2.27 % 1.66 % Expected term in years 1.73-1.82 0.25 Expected stock price volatility 26.8 % 24.2 % Dividend yield — % — % |
Schedule of Share-based Compensation, Stock Options and Warrants Activity | The following table represents stock option activity for the nine months ended September 30, 2019: Weighted Average Weighted Remaining Aggregate Average Contractual Term Intrinsic Value Shares Exercise Price (in years) (in thousands) Outstanding, December 31, 2018 442,454 $ 12.02 Granted/modified (1) 12,500 10.00 Exercised (79,980) 13.05 Forfeited (1) (38,500) 13.17 Expired (7,144) 17.79 Outstanding, September 30, 2019 329,330 $ 11.44 2.61 $ 2,018 Exercisable, September 30, 2019 309,330 $ 11.21 2.38 $ 1,971 (1) During the nine months ended September 30, 2019, the Company modified options for 12,500 shares. The modifications are included as shares granted/modified and as shares forfeited in this table. |
Schedule of Share-based Compensation, Restricted Stock Award Activity | The following table represents restricted stock and performance share award activity for the nine months ended September 30, 2019: Weighted Average Grant- Shares Date Fair Value Outstanding, December 31, 2018 272,695 $ 18.09 Granted/modified (1) 158,593 19.19 Vested (68,198) 16.54 Forfeited (1) (67,663) 18.34 Outstanding, September 30, 2019 295,427 $ 18.97 (1) During the nine months ended September 30, 2019, the Company modified 4,719 restricted stock awards. The modifications are included as shares granted/modified and as shares forfeited in this table. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Measurements | |
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, 2019 and December 31, 2018. Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Total (in thousands) Securities available-for-sale— U.S. states and political subdivisions $ — $ 84,744 $ — $ 84,744 Trust preferred securities — 4,600 — 4,600 Corporate debt securities — 19,826 — 19,826 Mortgage-backed securities — 177,615 — 177,615 Total securities available-for-sale $ — $ 286,785 $ — $ 286,785 Interest rate derivative assets $ — $ 13,062 $ — $ 13,062 Interest rate derivative liabilities $ — $ 8,048 $ — $ 8,048 Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Securities Inputs Inputs (Level 1) (Level 2) (Level 3) Totals (in thousands) Securities available-for-sale— U.S. government agencies $ — $ 26,849 $ — $ 26,849 U.S. states and political subdivisions — 84,834 — 84,834 Trust preferred securities — 4,400 — 4,400 Corporate debt securities — 12,363 — 12,363 Mortgage-backed securities — 274,040 — 274,040 Total securities available-for-sale $ — $ 402,486 $ — $ 402,486 Interest rate derivative assets $ — $ 1,961 $ — $ 1,961 Interest rate derivative liabilities $ — $ 4,027 $ — $ 4,027 |
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, 2019 and December 31, 2018. Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value September 30, 2019 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 4,724 $ 4,724 Level 1 Level 2 Level 3 Fair Value Fair Value Fair Value December 31, 2018 Measurement Measurement Measurement Total (in thousands) Impaired Loans $ — $ — $ 1,836 $ 1,836 |
Fair Value Measurements, Recurring and Nonrecurring | The following table presents the estimated fair values of Atlantic Capital’s financial instruments at September 30, 2019 and December 31, 2018. Fair Value Measurements at September 30, 2019 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 42,577 $ 42,577 $ — $ — Interest-bearing deposits in banks 27,167 27,167 — — Total securities available-for-sale 286,785 — 286,785 — Total securities held to maturity 42,863 — 42,740 — FHLB stock 5,910 — — 5,910 Federal Reserve Bank stock 9,998 — — 9,998 Loans held for investment, net 1,817,593 — — 1,840,169 Loans held for sale 916 — 916 — Derivative assets 13,062 — 13,062 — Financial liabilities: Deposits $ 1,854,272 $ — $ 1,803,960 $ — Federal funds purchased 57,000 57,000 — — Subordinated debt 49,831 — 50,146 — FHLB advances 76,000 — 76,025 — Derivative financial instruments 8,048 — 8,048 — Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Active Significant markets for Other Significant Identical Observable Unobservable Carrying Securities Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (in thousands) Financial assets: Cash and due from banks $ 42,895 $ 42,895 $ — $ — Interest-bearing deposits in other banks 216,040 216,040 — — Other short-term investments 9,457 9,457 — — Total securities available-for-sale 402,486 — 402,486 — FHLB stock 2,622 — — 2,622 Federal Reserve Bank stock 9,906 — — 9,906 Loans held for investment, net 1,710,222 — — 1,740,438 Loans held for sale 5,889 — 5,889 — Loans held for sale - discontinued operations 373,030 — 373,030 — Derivative assets 1,961 — 1,961 — Financial liabilities: Deposits $ 1,952,514 $ — $ 1,830,673 $ — Deposits to be assumed - discontinued operations 585,429 — 585,429 — Securities sold under agreements to repurchase - discontinued operations 6,220 6,220 — — Subordinated debt 49,704 — 48,960 — Derivative financial instruments 4,027 — 4,027 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies | |
Schedule of Exposure to Credit Risk By Commitment | Atlantic Capital’s maximum exposure to credit risk for unfunded loan commitments and standby letters of credit at September 30, 2019 and December 31, 2018 was as follows: September 30, 2019 December 31, 2018 (in thousands) Financial Instruments whose contract amount represents credit risk: Commitments to extend credit $ 679,732 $ 715,591 Standby letters of credit 7,563 15,650 $ 687,295 $ 731,241 Minimum lease payments $ 16,669 $ 22,014 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Disaggregation of Revenue | The following table presents service charges by type of service provided for the three and nine months ended September 30, 2019 and 2018: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Deposit account analysis fees and charges $ 672 $ 566 $ 1,894 $ 1,601 ATM fees — 56 39 162 NSF fees 18 20 40 86 Wire fees 124 110 336 303 Foreign exchange fees 110 50 275 176 Other 1 2 5 11 Total service charges - continuing operations 925 804 2,589 2,339 Service charges - discontinued operations — 474 527 1,439 Total service charges $ 925 $ 1,278 $ 3,116 $ 3,778 The following table presents trust income by type of service provided for the three and nine months ended September 30, 2018: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2019 2018 2019 2018 Personal trust and agency accounts $ — $ — $ — $ 616 Employee benefit and retirement-related trust and agency accounts — — — 120 Investment management and investment advisory agency accounts — — — 217 Custody and safekeeping accounts — — — 26 Other — — — 46 $ — $ — $ — $ 1,025 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases | |
Lease Cost and Other Information Related to Leases | Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Operating lease cost $ 509 $ 1,635 Short-term lease cost 11 37 Sublease income (70) (186) Net lease cost $ 450 $ 1,486 The tables below summarize other information related to the Company’s operating leases: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 (in thousands) Operating cash paid for amounts included in the measurement of lease liabilities $ 551 $ 1,594 Right-of-use assets obtained in exchange for new finance lease liabilities — 15,207 September 30, 2019 Weighted-average remaining lease term - operating leases 9.00 Weighted-average discount rate - operating leases 3.3 % |
Schedule of Maturity of Lease Liabilities | September 30, 2019 (in thousands) Twelve Months Ended: September 30, 2020 $ 2,143 September 30, 2021 1,898 September 30, 2022 1,948 September 30, 2023 1,670 September 30, 2024 1,492 Thereafter 7,518 Total future minimum lease payments 16,669 Less: Interest (2,766) Present value of net future minimum lease payments $ 13,903 |
Accounting Standards Updates _2
Accounting Standards Updates and Recently Adopted Standards (Details) - USD ($) | Sep. 30, 2019 | Jan. 01, 2019 | Sep. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability | $ 13,903,000 | ||
ROU asset | 9,900,000 | ||
Cumulative effect adjustment to retained earnings, net of tax | $ (373,000) | $ 1,000 | |
ASU No. 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease liability | $ 18,900,000 | ||
ROU asset | 14,500,000 | ||
Cumulative effect adjustment to retained earnings, net of tax | $ 373,000 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures (Narrative) (Details) $ in Millions | Apr. 05, 2019USD ($)item |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of branches sold | item | 14 |
The Branches | Discontinued Operations | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Number of branches sold | item | 14 |
Deposits and customer repurchase agreements assumed by buyer | $ | $ 598 |
Amount of loans purchased by buyer | $ | $ 385 |
Deposit premium paid (as a percent) | 6.25% |
Discount of purchased loans (as a percent) | 0.68% |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Components of Net Income from Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Acquisitions and Divestitures | ||||
Net interest income (loss) | $ 3,266 | $ 3,086 | $ 10,915 | |
Service charges | 474 | 527 | 1,439 | |
Mortgage income | 315 | 288 | 982 | |
Gain on sale of branches | 34,475 | |||
Other income | 22 | (1) | 76 | |
Total noninterest income | 811 | 35,289 | 2,497 | |
Salaries and employee benefits | 2,820 | 2,757 | 8,957 | |
Occupancy | 556 | 410 | 1,537 | |
Equipment and software | 217 | 131 | 621 | |
Amortization of intangibles | 296 | 247 | 958 | |
Communications and data processing | 381 | 586 | 1,089 | |
Divestiture expense | 5,095 | |||
Other noninterest expense | 453 | 459 | 1,403 | |
Total noninterest expense | 4,723 | 9,685 | 14,565 | |
Net income (loss) before provision for income taxes | (646) | 28,690 | (1,153) | |
Provision (benefit) for income taxes | $ (617) | (161) | 6,993 | (288) |
Net income (loss) from discontinued operations | $ 617 | $ (485) | $ 21,697 | $ (865) |
Acquisitions and Divestitures_3
Acquisitions and Divestitures - Assets and Liabilities from Discontinued Operations (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Loans held for sale - discontinued operations | [1] | $ 373,030 | |
Premises held for sale - discontinued operations | [1] | 7,722 | |
Goodwill - discontinued operations | [1] | 4,555 | |
Deposits to be assumed - discontinued operations | [1] | 585,429 | |
Securities sold under agreements to repurchase - discontinued operations | [1] | $ 6,220 | |
The Branches | Discontinued Operations | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash | $ 4,234 | ||
Loans held for sale - discontinued operations | 373,030 | ||
Premises held for sale - discontinued operations | 7,722 | ||
Goodwill - discontinued operations | 4,555 | ||
Core deposit intangible | 1,405 | ||
Total assets | 390,946 | ||
Deposits to be assumed - discontinued operations | 585,429 | ||
Securities sold under agreements to repurchase - discontinued operations | 6,220 | ||
Total liabilities | 591,649 | ||
Net liabilities | $ (200,703) | ||
[1] | Assets and liabilities related to the Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Reverse repurchase agreements, Assets | ||
Gross Amounts of Recognized Assets | $ 9,457 | |
Net Asset Balance | 9,457 | |
Financial Instruments | (9,457) | |
Derivatives, Assets | ||
Gross Amounts of Recognized Assets | $ 13,062 | 1,961 |
Net Asset Balance | 13,062 | 1,961 |
Net Amount | 13,062 | 1,961 |
Total, Assets | ||
Gross Amounts of Recognized Assets | 13,062 | 11,418 |
Net Asset Balance | 13,062 | 11,418 |
Financial Instruments | (9,457) | |
Net Amount | 13,062 | 1,961 |
Repurchase agreements - discontinued operations, Liabilities | ||
Gross Amounts of Recognized Liabilities | 6,220 | |
Net Liability Balance | 6,220 | |
Financial Instruments | (6,220) | |
Derivatives, Liabilities | ||
Gross Amounts of Recognized Liabilities | 8,047 | 4,027 |
Net Liability Balance | 8,047 | 4,027 |
Financial Instruments | (8,047) | (4,027) |
Total, Liabilities | ||
Gross Amounts of Recognized Liabilities | 8,047 | 10,247 |
Net Liability Balance | 8,047 | 10,247 |
Financial Instruments | $ (8,047) | $ (10,247) |
Securities - Available-For-Sale
Securities - Available-For-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-For-Sale | ||
Amortized Cost | $ 283,113 | $ 414,283 |
Gross Unrealized Gains | 4,522 | 2,790 |
Gross Unrealized Losses | (850) | (14,587) |
Fair Value | 286,785 | 402,486 |
Held-to-Maturity | ||
Amortized Cost | 42,863 | |
Gross Unrealized Gains | 46 | |
Gross Unrealized Losses | (169) | |
Fair Value | 42,740 | 0 |
Total securities | ||
Amortized Cost | 325,976 | |
Gross Unrealized Gains | 4,568 | |
Gross Unrealized Losses | (1,019) | |
Fair Value | 329,525 | |
U.S. government agencies | ||
Available-For-Sale | ||
Amortized Cost | 27,259 | |
Gross Unrealized Gains | 24 | |
Gross Unrealized Losses | (434) | |
Fair Value | 26,849 | |
U.S. states and political divisions | ||
Available-For-Sale | ||
Amortized Cost | 83,922 | 91,864 |
Gross Unrealized Gains | 1,015 | 40 |
Gross Unrealized Losses | (193) | (7,070) |
Fair Value | 84,744 | 84,834 |
Held-to-Maturity | ||
Amortized Cost | 42,863 | |
Gross Unrealized Gains | 46 | |
Gross Unrealized Losses | (169) | |
Fair Value | 42,740 | |
Trust preferred securities | ||
Available-For-Sale | ||
Amortized Cost | 4,801 | 4,781 |
Gross Unrealized Losses | (201) | (381) |
Fair Value | 4,600 | 4,400 |
Corporate debt securities | ||
Available-For-Sale | ||
Amortized Cost | 19,564 | 12,855 |
Gross Unrealized Gains | 264 | |
Gross Unrealized Losses | (2) | (492) |
Fair Value | 19,826 | 12,363 |
Residential mortgage-backed securities | ||
Available-For-Sale | ||
Amortized Cost | 174,826 | 277,524 |
Gross Unrealized Gains | 3,243 | 2,726 |
Gross Unrealized Losses | (454) | (6,210) |
Fair Value | $ 177,615 | $ 274,040 |
Securities - Contractual Maturi
Securities - Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-For-Sale, Amortized Cost | ||
Over 1 year through 5 years | $ 10,594 | |
5 years to 10 years | 30,268 | |
Over 10 years | 67,425 | |
Amortized cost of securities with single maturity date | 108,287 | |
Residential mortgage-backed securities | 174,826 | |
Amortized Cost | 283,113 | $ 414,283 |
Available-For-Sale, Fair Value | ||
Over 1 year through 5 years | 10,701 | |
5 years to 10 years | 30,402 | |
Over 10 years | 68,067 | |
Fair value of securities with single maturity date | 109,170 | |
Residential mortgage-backed securities | 177,615 | |
Fair Value | 286,785 | 402,486 |
Held-to-Maturity, Amortized Cost | ||
Over 10 years | 42,863 | |
Amortized cost of securities with single maturity date | 42,863 | |
Amortized Cost | 42,863 | |
Held-to-Maturity, Fair Value | ||
Over 10 years | 42,740 | |
Fair value of securities with single maturity date | 42,740 | |
Fair Value | $ 42,740 | $ 0 |
Securities - Unrealized Losses
Securities - Unrealized Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-for-Sale, Fair Value | ||
Less than 12 months | $ 28,798 | $ 40,785 |
12 months or greater, fair value | 165 | 285 |
Totals | 41,520 | 304,582 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (685) | (14,302) |
12 months or greater | (70,318) | (345,367) |
Totals | (850) | (14,587) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 20,179 | |
Totals | 20,179 | |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (169) | |
Totals | (169) | |
Total securities - Fair Value | ||
Less than 12 months | 48,977 | |
12 months or greater | 41,520 | |
Totals | 90,497 | |
Total securities - Unrealized losses | ||
Less than 12 months | (334) | |
12 months or greater | (685) | |
Totals | (1,019) | |
U.S. government agencies | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 1,487 | |
12 months or greater, fair value | 19 | |
Totals | 21,849 | |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (415) | |
12 months or greater | (23,336) | |
Totals | (434) | |
U.S. states and political divisions | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 20,616 | 2,351 |
12 months or greater, fair value | 144 | 54 |
Totals | 4,097 | 75,234 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (49) | (7,016) |
12 months or greater | (24,713) | (77,585) |
Totals | (193) | (7,070) |
Held-to-Maturity, Fair Value | ||
Less than 12 months | 20,179 | |
Totals | 20,179 | |
Held-to-Maturity, Unrealized Losses | ||
Less than 12 months | (169) | |
Totals | (169) | |
Trust preferred securities | ||
Available-for-Sale, Fair Value | ||
Totals | 4,600 | 4,400 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (201) | (381) |
12 months or greater | (4,600) | (4,400) |
Totals | (201) | (381) |
Corporate debt securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 6,009 | |
12 months or greater, fair value | 60 | |
Totals | 1,003 | 6,354 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (2) | (432) |
12 months or greater | (1,003) | (12,363) |
Totals | (2) | (492) |
Residential mortgage-backed securities | ||
Available-for-Sale, Fair Value | ||
Less than 12 months | 8,182 | 30,938 |
12 months or greater, fair value | 21 | 152 |
Totals | 31,820 | 196,745 |
Available-for-Sale, Unrealized Losses | ||
Less than 12 months | (433) | (6,058) |
12 months or greater | (40,002) | (227,683) |
Totals | $ (454) | $ (6,210) |
Securities - Narrative (Details
Securities - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)security | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Securities | |||||
Number of available-for-sale securities in unrealized loss position | security | 77 | 77 | |||
Number of held for maturity securities in unrealized loss position | security | 7 | 7 | |||
Impairment charges on securities available-for-sale | $ 0 | $ 0 | $ 0 | $ 0 | |
Carrying value of investment securities pledged to secure public funds and other borrowings | 32,300,000 | 32,300,000 | $ 65,300,000 | ||
Investment securities available for sale | 286,785,000 | 286,785,000 | 402,486,000 | ||
Impairments on SBICs | 26,000 | 228,000 | |||
SBIC Investments | |||||
Securities | |||||
Investment securities available for sale | $ 4,400,000 | 4,400,000 | $ 4,400,000 | ||
Impairments on SBICs | $ 26,000 | $ 228,000 |
Securities - Realized Gains (Lo
Securities - Realized Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Securities | |||
Proceeds from sales | $ 62,025 | $ 116,963 | $ 24 |
Gross realized gains | 553 | 1,675 | |
Gross realized losses | (300) | (768) | (2) |
Net losses on sales of securities | $ 253 | $ 907 | $ (2) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for sale - discontinued operations | $ 373,030 | |||||
Loans held for sale | $ 916 | 5,889 | ||||
Total loans held for sale | 916 | 378,919 | ||||
Loans | 1,838,612 | 1,730,586 | ||||
Less net deferred fees and other unearned income | (2,939) | (2,513) | ||||
Less allowance for loan losses | (18,080) | $ (18,186) | (17,851) | $ (20,443) | $ (19,583) | $ (19,344) |
Loans held for investment, net | 1,817,593 | 1,710,222 | ||||
Residential mortgages | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 31,903 | 32,800 | ||||
Home equity | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 25,638 | 22,822 | ||||
Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 22,533 | 24,712 | ||||
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 1,731,370 | 1,624,401 | ||||
Less allowance for loan losses | (17,728) | (17,817) | (17,322) | (19,252) | (18,491) | (18,267) |
Commercial | Commercial and industrial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 697,412 | 645,374 | ||||
Commercial | Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 865,525 | 794,828 | ||||
Commercial | Construction and land | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 145,177 | 156,232 | ||||
Commercial | Mortgage warehouse participations | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 23,256 | 27,967 | ||||
Residential | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 57,541 | 55,622 | ||||
Less allowance for loan losses | (140) | (164) | (292) | (920) | (811) | (802) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 27,168 | 25,851 | ||||
Less allowance for loan losses | $ (212) | $ (205) | $ (237) | $ (271) | $ (281) | $ (275) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019USD ($)loan | Sep. 30, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans pledged as collateral | $ 689,000 | $ 689,000 | $ 752,700 |
Remaining accretable fair value discount | 324 | 324 | 3,600 |
Recorded investment in TDRs | $ 12,800 | $ 12,800 | 8,200 |
Number of loans | loan | 1 | 9 | |
Commercial | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Commitments to lend additional funds | $ 3 | $ 3 | $ 28 |
Commercial | Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans | loan | 6 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Accretable Yield Movement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 2,456 | $ 2,316 | ||
Accretion | (299) | (898) | ||
Reclassification of nonaccretable discount due to change in expected cash flows | 180 | 473 | ||
Other changes, net | 96 | 542 | ||
Balance at end of period | $ 2,433 | $ 2,433 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Allowance Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | $ 18,186 | $ 19,583 | $ 17,851 | $ 19,344 |
Provision for loan losses | 413 | 845 | 1,925 | 1,444 |
Loans charged-off | (543) | (1,773) | (419) | |
Recoveries | 24 | 15 | 77 | 74 |
Total ending allowance balance | 18,080 | 20,443 | 18,080 | 20,443 |
Commercial | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 17,817 | 18,491 | 17,322 | 18,267 |
Provision for loan losses | 434 | 761 | 2,096 | 1,115 |
Loans charged-off | (541) | (1,725) | (176) | |
Recoveries | 18 | 35 | 46 | |
Total ending allowance balance | 17,728 | 19,252 | 17,728 | 19,252 |
Residential | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 164 | 811 | 292 | 802 |
Provision for loan losses | (24) | 109 | (151) | 348 |
Loans charged-off | (9) | (230) | ||
Recoveries | 8 | |||
Total ending allowance balance | 140 | 920 | 140 | 920 |
Consumer | ||||
Allowance for Loan and Lease Losses [Roll Forward] | ||||
Beginning balance | 205 | 281 | 237 | 275 |
Provision for loan losses | 3 | (25) | (20) | (19) |
Loans charged-off | (2) | (39) | (13) | |
Recoveries | 6 | 15 | 34 | 28 |
Total ending allowance balance | $ 212 | $ 271 | $ 212 | $ 271 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Allowance Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | $ 658 | $ 317 |
Allowance for loan losses, Collectively evaluated for impairment | 17,422 | 17,534 |
Allowance for loan losses, Total ending allowance balance | 18,080 | 17,851 |
Loans, Individually evaluated for impairment | 22,187 | 10,434 |
Loans, Collectively evaluated for impairment | 1,816,425 | 1,720,152 |
Loans, Total ending allowance balance | 1,838,612 | 1,730,586 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | 658 | 317 |
Allowance for loan losses, Collectively evaluated for impairment | 17,070 | 17,005 |
Allowance for loan losses, Total ending allowance balance | 17,728 | 17,322 |
Loans, Individually evaluated for impairment | 21,461 | 10,273 |
Loans, Collectively evaluated for impairment | 1,709,909 | 1,614,128 |
Loans, Total ending allowance balance | 1,731,370 | 1,624,401 |
Residential | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | |
Allowance for loan losses, Collectively evaluated for impairment | 140 | 292 |
Allowance for loan losses, Total ending allowance balance | 140 | 292 |
Loans, Individually evaluated for impairment | 726 | 161 |
Loans, Collectively evaluated for impairment | 56,815 | 55,461 |
Loans, Total ending allowance balance | 57,541 | 55,622 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Allowance for loan losses, Individually evaluated for impairment | 0 | |
Allowance for loan losses, Collectively evaluated for impairment | 212 | 237 |
Allowance for loan losses, Total ending allowance balance | 212 | 237 |
Loans, Individually evaluated for impairment | 0 | |
Loans, Collectively evaluated for impairment | 49,701 | 50,563 |
Loans, Total ending allowance balance | $ 49,701 | $ 50,563 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | $ 11,568 | $ 6,417 | $ 11,568 | $ 6,417 |
Impaired loans with an allowance recorded | 11,322 | 4,616 | 11,322 | 4,616 |
Total impaired loans | 22,890 | 11,033 | 22,890 | 11,033 |
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 10,865 | 6,209 | 10,865 | 6,209 |
Impaired loans with an allowance recorded | 11,322 | 4,616 | 11,322 | 4,616 |
Total impaired loans | 22,187 | 10,825 | 22,187 | 10,825 |
Related Allowance | 659 | 257 | 659 | 257 |
Average Balance of Recorded Investment While Impaired | ||||
Impaired loans with no related allowance recorded | 9,765 | 6,258 | 10,393 | 6,364 |
Impaired loans with an allowance recorded | 11,365 | 4,616 | 11,800 | 4,616 |
Total impaired loans | 21,130 | 10,874 | 22,193 | 10,980 |
Interest Income Recognized During Impairment | ||||
Impaired loans with no related allowance recorded | 87 | 58 | 271 | 175 |
Impaired loans with an allowance recorded | 63 | 411 | ||
Total impaired loans | 150 | 58 | 682 | 175 |
Commercial | Commercial and industrial | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 5,897 | 4,455 | 5,897 | 4,455 |
Impaired loans with an allowance recorded | 3,348 | 3,348 | ||
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 5,403 | 4,455 | 5,403 | 4,455 |
Impaired loans with an allowance recorded | 3,348 | 3,348 | ||
Related Allowance | 476 | 476 | ||
Average Balance of Recorded Investment While Impaired | ||||
Impaired loans with no related allowance recorded | 5,451 | 4,488 | 5,541 | 4,584 |
Impaired loans with an allowance recorded | 3,376 | 3,811 | ||
Interest Income Recognized During Impairment | ||||
Impaired loans with no related allowance recorded | 40 | 57 | 122 | 173 |
Impaired loans with an allowance recorded | 52 | |||
Commercial | Commercial real estate | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 4,900 | 1,725 | 4,900 | 1,725 |
Impaired loans with an allowance recorded | 7,974 | 4,616 | 7,974 | 4,616 |
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 4,737 | 1,562 | 4,737 | 1,562 |
Impaired loans with an allowance recorded | 7,974 | 4,616 | 7,974 | 4,616 |
Related Allowance | 183 | 257 | 183 | 257 |
Average Balance of Recorded Investment While Impaired | ||||
Impaired loans with no related allowance recorded | 3,589 | 1,569 | 4,127 | 1,577 |
Impaired loans with an allowance recorded | 7,989 | 4,616 | 7,989 | 4,616 |
Interest Income Recognized During Impairment | ||||
Impaired loans with no related allowance recorded | 47 | 149 | ||
Impaired loans with an allowance recorded | 63 | 359 | ||
Residential | Residential mortgages | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 71 | 237 | 71 | 237 |
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 25 | 192 | 25 | 192 |
Average Balance of Recorded Investment While Impaired | ||||
Impaired loans with no related allowance recorded | 25 | 201 | 25 | 203 |
Interest Income Recognized During Impairment | ||||
Impaired loans with no related allowance recorded | $ 1 | $ 2 | ||
Residential | Home equity | ||||
Unpaid Principal Balance | ||||
Impaired loans with no related allowance recorded | 700 | 700 | ||
Recorded Investment | ||||
Impaired loans with no related allowance recorded | 700 | 700 | ||
Average Balance of Recorded Investment While Impaired | ||||
Impaired loans with no related allowance recorded | $ 700 | $ 700 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($)loan | Sep. 30, 2019USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 9 |
Pre-Modification Outstanding Recorded Investment | $ 1,512 | $ 3,673 |
Post-Modification Outstanding Recorded Investment | $ 1,512 | $ 3,673 |
Commercial | Commercial and industrial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 6 | |
Pre-Modification Outstanding Recorded Investment | $ 1,235 | |
Post-Modification Outstanding Recorded Investment | $ 1,235 | |
Commercial | Commercial real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Loans | loan | 1 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 1,512 | $ 2,438 |
Post-Modification Outstanding Recorded Investment | $ 1,512 | $ 2,438 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Risk Category of Loan by Class of Loan (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | $ 1,838,612 | $ 1,730,586 |
Financing receivable gross, including discontinued operations | 2,103,616 | |
Non-PCI Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 1,838,612 | 2,103,616 |
Non-PCI Loans | Pass | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 1,779,371 | 2,040,723 |
Non-PCI Loans | Special Mention | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 15,353 | 18,648 |
Non-PCI Loans | Substandard | Accruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 37,118 | 39,548 |
Non-PCI Loans | Substandard | Nonaccruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 6,770 | 2,769 |
Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable gross, including discontinued operations | 1,928 | |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 1,731,370 | 1,624,401 |
Commercial | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 697,412 | 702,403 |
Commercial | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 865,525 | 968,053 |
Commercial | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 145,177 | 169,752 |
Commercial | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 23,256 | 27,967 |
Commercial | Non-PCI Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 697,412 | 702,403 |
Commercial | Non-PCI Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 865,525 | 968,053 |
Commercial | Non-PCI Loans | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 145,177 | 169,752 |
Commercial | Non-PCI Loans | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 23,256 | 27,967 |
Commercial | Non-PCI Loans | Pass | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 663,678 | 671,992 |
Commercial | Non-PCI Loans | Pass | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 842,180 | 946,612 |
Commercial | Non-PCI Loans | Pass | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 145,177 | 169,687 |
Commercial | Non-PCI Loans | Pass | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 23,256 | 22,192 |
Commercial | Non-PCI Loans | Special Mention | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 11,548 | 6,802 |
Commercial | Non-PCI Loans | Special Mention | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 3,205 | 4,754 |
Commercial | Non-PCI Loans | Special Mention | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 40 | |
Commercial | Non-PCI Loans | Special Mention | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 5,775 | |
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 16,676 | 22,777 |
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 19,838 | 14,914 |
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 25 | |
Commercial | Non-PCI Loans | Substandard | Accruing Loans | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 5,510 | 832 |
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 302 | 126 |
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Commercial | Non-PCI Loans | Substandard | Nonaccruing Loans | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Commercial | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Commercial | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 1,647 | |
Commercial | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Construction and land | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Commercial | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Mortgage warehouse participations | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Residential | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 57,541 | 55,622 |
Residential | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 31,903 | 122,244 |
Residential | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 25,638 | 55,592 |
Residential | Non-PCI Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 31,903 | 122,244 |
Residential | Non-PCI Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 25,638 | 55,592 |
Residential | Non-PCI Loans | Pass | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 31,524 | 118,265 |
Residential | Non-PCI Loans | Pass | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 24,938 | 54,707 |
Residential | Non-PCI Loans | Special Mention | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 1,119 | |
Residential | Non-PCI Loans | Special Mention | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 92 | |
Residential | Non-PCI Loans | Substandard | Accruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 121 | 1,441 |
Residential | Non-PCI Loans | Substandard | Accruing Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 294 | |
Residential | Non-PCI Loans | Substandard | Nonaccruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 258 | 1,138 |
Residential | Non-PCI Loans | Substandard | Nonaccruing Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 700 | 499 |
Residential | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Residential mortgages | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 281 | |
Residential | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 0 | |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 49,701 | 50,563 |
Consumer | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 49,701 | 57,605 |
Consumer | Non-PCI Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 49,701 | 57,605 |
Consumer | Non-PCI Loans | Pass | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 48,618 | 57,268 |
Consumer | Non-PCI Loans | Special Mention | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 600 | 66 |
Consumer | Non-PCI Loans | Substandard | Accruing Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | $ 483 | 97 |
Consumer | Non-PCI Loans | Substandard | Nonaccruing Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | 174 | |
Consumer | Non-PCI Loans | Doubtful Nonaccruing | Nonaccruing Loans | Other | ||
Financing Receivable, Impaired [Line Items] | ||
Financing receivable, gross | $ 0 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | $ 1,825,736 | $ 2,085,623 |
Nonaccruing | 6,770 | 4,697 |
Financing receivable, gross, including discontinued operations | 2,103,616 | |
Loans, Total ending allowance balance | 1,838,612 | 1,730,586 |
Financing Receivables 30 To 89 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 6,106 | 12,817 |
Accruing 90 Days Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 479 | |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Total ending allowance balance | 1,731,370 | 1,624,401 |
Commercial | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 691,605 | 692,308 |
Nonaccruing | 5,510 | 832 |
Loans, Total ending allowance balance | 697,412 | 702,403 |
Commercial | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 862,229 | 963,579 |
Nonaccruing | 302 | 1,773 |
Loans, Total ending allowance balance | 865,525 | 968,053 |
Commercial | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 144,068 | 169,752 |
Nonaccruing | 0 | |
Loans, Total ending allowance balance | 145,177 | 169,752 |
Commercial | Mortgage warehouse participations | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 23,256 | 27,967 |
Nonaccruing | 0 | |
Loans, Total ending allowance balance | 23,256 | 27,967 |
Commercial | Financing Receivables 30 To 89 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 297 | 8,785 |
Commercial | Financing Receivables 30 To 89 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 2,994 | 2,701 |
Commercial | Financing Receivables 30 To 89 Days Past Due | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 1,109 | 0 |
Commercial | Financing Receivables 30 To 89 Days Past Due | Mortgage warehouse participations | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | |
Commercial | Accruing 90 Days Past Due | Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 478 | |
Commercial | Accruing 90 Days Past Due | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | |
Commercial | Accruing 90 Days Past Due | Construction and land | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | |
Commercial | Accruing 90 Days Past Due | Mortgage warehouse participations | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | |
Residential | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Total ending allowance balance | 57,541 | 55,622 |
Residential | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 31,487 | 119,932 |
Nonaccruing | 258 | 1,419 |
Loans, Total ending allowance balance | 31,903 | 122,244 |
Residential | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 24,938 | 54,714 |
Nonaccruing | 700 | 499 |
Loans, Total ending allowance balance | 25,638 | 55,592 |
Residential | Financing Receivables 30 To 89 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 158 | 893 |
Residential | Financing Receivables 30 To 89 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 379 | |
Residential | Accruing 90 Days Past Due | Residential mortgages | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | |
Residential | Accruing 90 Days Past Due | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | 0 | |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Total ending allowance balance | 49,701 | 50,563 |
Consumer | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing Current | 48,153 | 57,371 |
Nonaccruing | 174 | |
Loans, Total ending allowance balance | 49,701 | 57,605 |
Consumer | Financing Receivables 30 To 89 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | $ 1,548 | 59 |
Consumer | Accruing 90 Days Past Due | Other | ||
Financing Receivable, Past Due [Line Items] | ||
Accruing past due | $ 1 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Total intangibles subject to amortization, net | $ 3,112 | $ 4,388 | ||||
Goodwill - discontinued operations | [1] | 4,555 | ||||
Goodwill - continuing operations | [1] | 19,925 | 17,135 | |||
Total goodwill and other intangible assets, net | 23,037 | 26,078 | ||||
Core Deposit Intangible | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Core deposit intangible | 9,544 | 9,544 | ||||
Less: accumulated amortization | (6,100) | (5,853) | ||||
Less: impairment to date related to divested branches | (3,444) | (2,286) | ||||
Core deposit intangible, net - discontinued operations | 1,405 | $ 1,676 | $ 1,972 | $ 2,634 | ||
Servicing assets, net | 9,544 | 9,544 | ||||
Servicing Assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Core deposit intangible | 3,112 | 2,983 | ||||
Servicing assets, net | $ 3,112 | $ 2,983 | ||||
[1] | Assets and liabilities related to the Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 1,765,000 | $ 69,000 | ||||
Amortization expense | $ 296,000 | 247,000 | 958,000 | |||
Core Deposit Intangible | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 0 | $ 296,000 | 247,000 | $ 958,000 | ||
The Branches | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 1,200,000 | $ 1,800,000 | $ 1,200,000 | |||
Sale of the trust business | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Goodwill impairment | $ 69,000 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Activity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill | ||||
Balance, beginning of period | $ 19,925,000 | $ 21,690,000 | $ 21,690,000 | $ 21,759,000 |
Impairment, due to Branch Sale | (1,765,000) | (69,000) | ||
Balance, end of period | 19,925,000 | 21,690,000 | 19,925,000 | 21,690,000 |
Core Deposit Intangible | ||||
Amortization | (296,000) | (247,000) | (958,000) | |
Impairment, due to Branch Sale | (2,923,000) | (69,000) | ||
Total | ||||
Balance, beginning of period | 19,925,000 | 23,662,000 | 23,095,000 | 24,393,000 |
Amortization | (296,000) | (247,000) | (958,000) | |
Balance, end of period | 19,925,000 | 23,366,000 | 19,925,000 | 23,366,000 |
Core Deposit Intangible | ||||
Core Deposit Intangible | ||||
Balance, beginning of period | 1,676,000 | 1,676,000 | ||
Amortization | 0 | (296,000) | (247,000) | (958,000) |
Impairment, due to Branch Sale | (1,158,000) | |||
Balance, end of period | 1,972,000 | 1,405,000 | 2,634,000 | |
Total | ||||
Amortization | $ 0 | $ (296,000) | $ (247,000) | $ (958,000) |
Servicing Assets - Narrative (D
Servicing Assets - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Servicing Assets | ||
Loans sold and serviced | $ 184.6 | $ 161.5 |
Servicing Assets - Changes in t
Servicing Assets - Changes in the Balance of Servicing Assets (Details) - Commercial Loan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
SBA Loan Servicing Assets | ||||
Loan Servicing Rights | ||||
Beginning carrying value, net | $ 2,726 | $ 2,827 | $ 2,539 | $ 2,635 |
Additions | 350 | 120 | 975 | 739 |
Amortization | (296) | (239) | (734) | (666) |
Ending carrying value | 2,780 | 2,708 | 2,780 | 2,708 |
Commercial and Industrial Sector | ||||
Loan Servicing Rights | ||||
Beginning carrying value, net | 369 | 523 | 444 | 605 |
Amortization | (37) | (40) | (112) | (122) |
Ending carrying value | $ 332 | $ 483 | $ 332 | $ 483 |
Servicing Assets - Sensitivity
Servicing Assets - Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions (Details) - SBA Loan Servicing Assets - Commercial Loan - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of retained servicing assets | $ 3,029 | $ 2,630 |
Weighted average life | 3 years 10 months 24 days | 4 years 9 months 29 days |
Prepayment speed (as a percent) | 14.71% | 11.92% |
Decline in fair value due to a 10% adverse change | $ (160) | $ (131) |
Decline in fair value due to a 20% adverse change | $ (271) | $ (223) |
Weighted average discount rate | 14.01% | 14.42% |
Decline in fair value due to a 100 bps adverse change | $ (107) | $ (101) |
Decline in fair value due to a 200 bps adverse change | $ (169) | $ (165) |
Servicing Rights - Tri-Net (Det
Servicing Rights - Tri-Net (Details) - Commercial and Industrial Sector - Commercial Loan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Loan Servicing Rights | ||||
Beginning carrying value, net | $ 369 | $ 523 | $ 444 | $ 605 |
Amortization | (37) | (40) | (112) | (122) |
Ending carrying value | $ 332 | $ 483 | $ 332 | $ 483 |
Servicing Assets - TriNet, Sens
Servicing Assets - TriNet, Sensitivity of the Fair Value to Immediate Changes in Key Economic Assumptions (Details) - Commercial and Industrial Sector - Commercial Loan - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items] | ||
Fair value of retained servicing assets | $ 453 | $ 515 |
Weighted average life | 5 years 9 months 7 days | 6 years 5 months 23 days |
Prepayment speed (as a percent) | 5.00% | 5.00% |
Decline in fair value due to a 10% adverse change | $ (6) | $ (7) |
Decline in fair value due to a 20% adverse change | $ (11) | $ (14) |
Weighted average discount rate | 8.00% | 8.00% |
Decline in fair value due to a 100 bps adverse change | $ (10) | $ (13) |
Decline in fair value due to a 200 bps adverse change | $ (20) | $ (25) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Pre-Tax Amount | ||||
Reclassification adjustment for net realized (gains) losses on investment securities available-for-sale | $ (253) | $ (907) | $ 2 | |
Income Tax (Expense) Benefit | ||||
Reclassification of tax effects from AOCI | (844) | |||
Reclassification adjustment for net realized losses on investment securities available-for-sale | 63 | 227 | (1) | |
After-Tax Amount | ||||
Beginning balance | 336,715 | $ 316,770 | 323,653 | 308,425 |
Reclassification of tax effects from AOCI | (844) | |||
Reclassification adjustment for net realized losses on investment securities available-for-sale | (190) | (680) | 1 | |
Other comprehensive income (loss), net of tax | 2,914 | (3,553) | 16,800 | (13,717) |
Ending balance | 328,711 | 320,237 | 328,711 | 320,237 |
Accumulated other comprehensive income (loss) | ||||
Pre-Tax Amount | ||||
Beginning balance | 4,774 | (19,825) | (13,743) | (6,274) |
Ending balance | 8,660 | (24,564) | 8,660 | (24,564) |
Income Tax (Expense) Benefit | ||||
Beginning balance | (1,193) | 4,958 | 3,438 | 2,415 |
Ending balance | (2,165) | 6,144 | (2,165) | 6,144 |
After-Tax Amount | ||||
Beginning balance | 3,581 | (14,867) | (10,305) | (3,859) |
Ending balance | 6,495 | (18,420) | 6,495 | (18,420) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale | ||||
Pre-Tax Amount | ||||
Unrealized net gains (losses) on investment securities available-for-sale | 1,813 | (4,160) | 16,375 | (15,097) |
Income Tax (Expense) Benefit | ||||
Unrealized net gains (losses) on investment securities available-for-sale | (453) | 1,041 | (4,096) | 3,775 |
After-Tax Amount | ||||
Unrealized net gains (losses) on investment securities available-for-sale | 1,360 | (3,119) | 12,279 | (11,322) |
Derivatives | ||||
Pre-Tax Amount | ||||
Unrealized net gains (losses) on derivatives | 2,326 | (579) | 6,935 | (3,195) |
Income Tax (Expense) Benefit | ||||
Unrealized net gains (losses) on derivatives | (582) | 145 | (1,734) | 799 |
After-Tax Amount | ||||
Other comprehensive income (loss), net of tax | $ 1,744 | $ (434) | $ 5,201 | $ (2,396) |
Earnings Per Common Share - Com
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, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Common Share | ||||
Net income from continuing operations | $ 7,569 | $ 6,998 | $ 21,018 | $ 20,567 |
Net income (loss) from discontinued operations | 617 | (485) | 21,697 | (865) |
Net income available to common shareholders | $ 8,186 | $ 6,513 | $ 42,715 | $ 19,702 |
Weighted average shares outstanding | ||||
Basic (in shares) | 22,681,904 | 26,103,397 | 23,800,525 | 25,956,336 |
Effect of dilutive securities: | ||||
Stock options and performance share awards (in shares) | 155,627 | 151,375 | 157,390 | 178,319 |
Diluted (in shares) | 22,837,531 | 26,254,772 | 23,957,915 | 26,134,655 |
Net income (loss) per common share - basic | ||||
Net income per common share - continuing operations (in dollars per share) | $ 0.33 | $ 0.27 | $ 0.88 | $ 0.79 |
Net loss per common share - discontinued operations (in dollars per share) | 0.03 | (0.02) | 0.91 | (0.03) |
Net income per common share - basic (in dollars per share) | 0.36 | 0.25 | 1.79 | 0.76 |
Net income (loss) per common share - diluted | ||||
Net income per common share - continuing operations (in dollars per share) | 0.33 | 0.27 | 0.88 | 0.79 |
Net loss per common share - discontinued operations (in dollars per share) | 0.03 | (0.02) | 0.91 | (0.03) |
Net income per common share - diluted (in dollars per share) | $ 0.36 | $ 0.25 | $ 1.78 | $ 0.75 |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 11 Months Ended | |||||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Nov. 14, 2018 | Mar. 24, 2015 | |
Earnings Per Common Share | ||||||||
Antidilutive securities excluded (in shares) | 150 | 244 | ||||||
Capital shares, authorized (in shares) | 110,000,000 | |||||||
Preferred stock authorized (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||
Common stock issued (in shares) | 22,193,761 | 25,290,419 | 22,193,761 | 22,193,761 | ||||
Common stock outstanding (in shares) | 22,193,761 | 25,290,419 | 22,193,761 | 22,193,761 | ||||
Dividends paid | $ 10,000,000 | $ 30,000,000 | $ 0 | $ 36,500,000 | $ 0 | |||
Authorized amount under stock repurchase program | $ 85,000,000 | |||||||
Stock repurchased (in shares) | 1,164,063 | 3,242,579 | 4,100,000 | |||||
Stock repurchased | $ 20,128,000 | $ 56,746,000 | $ 70,900,000 |
Derivatives and Hedging - Narra
Derivatives and Hedging - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivative [Line Items] | |||||
Notional Amount | $ 8,100,000 | $ 8,100,000 | $ 9,500,000 | ||
Expected reclassification to loan interest income | 230,000 | 230,000 | |||
Collateral posted | 14,300,000 | 14,300,000 | 5,100,000 | ||
Derivatives not designated as hedging instruments under ASC 815 | Other assets | |||||
Derivative [Line Items] | |||||
Notional Amount | 121,463,000 | 121,463,000 | 138,145,000 | ||
Swap | Derivatives designated as hedging instruments under ASC 815 | |||||
Derivative [Line Items] | |||||
Notional Amount | 150,400,000 | 150,400,000 | 166,800,000 | ||
Swap | Derivatives not designated as hedging instruments under ASC 815 | |||||
Derivative [Line Items] | |||||
Notional Amount | 92,500,000 | 92,500,000 | 109,500,000 | ||
Swap | Derivatives not designated as hedging instruments under ASC 815 | Other assets | |||||
Derivative [Line Items] | |||||
Notional Amount | 46,258,000 | 46,258,000 | 54,760,000 | ||
Cash Flow Hedging | |||||
Derivative [Line Items] | |||||
Hedge ineffectiveness gains or losses recognized | 0 | $ 0 | 0 | $ 0 | |
Cash Flow Hedging | Derivatives designated as hedging instruments under ASC 815 | LIBOR | |||||
Derivative [Line Items] | |||||
Notional Amount | 175,000,000 | 175,000,000 | 100,000,000 | ||
Cash Flow Hedging | Derivatives designated as hedging instruments under ASC 815 | Other assets | LIBOR | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 125,000,000 | $ 125,000,000 | $ 0 |
Derivatives and Hedging (Deriva
Derivatives and Hedging (Derivative Contracts and Credit Risk Participation Agreements) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Notional Amount | $ 8,100 | $ 9,500 |
Derivatives designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 150,400 | 166,800 |
Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 175,000 | 100,000 |
Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 92,500 | 109,500 |
Other assets | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 125,000 | 0 |
Fair Value | 5,725 | 0 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 121,463 | 138,145 |
Fair Value | 7,337 | 1,961 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 46,258 | 54,760 |
Fair Value | 1,349 | 756 |
Other assets | Derivatives not designated as hedging instruments under ASC 815 | Zero premium collar | ||
Derivative [Line Items] | ||
Notional Amount | 75,205 | 83,385 |
Fair Value | 5,988 | 1,205 |
Other liabilities | Derivatives designated as hedging instruments under ASC 815 | Cash Flow Hedging | LIBOR | ||
Derivative [Line Items] | ||
Notional Amount | 50,000 | 100,000 |
Fair Value | 35 | 2,029 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | ||
Derivative [Line Items] | ||
Notional Amount | 129,589 | 147,677 |
Fair Value | 8,013 | 1,998 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Swap | ||
Derivative [Line Items] | ||
Notional Amount | 46,258 | 54,760 |
Fair Value | 1,448 | 770 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Dealer offset to zero premium collar | ||
Derivative [Line Items] | ||
Notional Amount | 75,205 | 83,385 |
Fair Value | 6,558 | 1,226 |
Other liabilities | Derivatives not designated as hedging instruments under ASC 815 | Credit risk participation | ||
Derivative [Line Items] | ||
Notional Amount | 8,126 | 9,532 |
Fair Value | $ 7 | $ 2 |
Derivatives and Hedging (Impact
Derivatives and Hedging (Impact to Consolidated Statements of Income Related to Derivative Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flow Hedging | Interest rate swaps | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in OCI on Derivatives (Effective Portion) | $ 2,212 | $ (598) | $ 5,303 | $ (3,093) |
Gain or (Loss) Reclassified from Accumulated OCI in Income (Effective Portion) | (113) | (18) | (242) | 103 |
Derivatives not designated as hedging instruments under ASC 815 | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | (293) | 10 | (637) | 136 |
Derivatives not designated as hedging instruments under ASC 815 | Other income / (expense) | Interest rate products | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | (292) | 10 | (633) | 132 |
Derivatives not designated as hedging instruments under ASC 815 | Other income / (expense) | Other contracts | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ (1) | $ (4) | 4 | |
Derivatives not designated as hedging instruments under ASC 815 | Other income / (expense) | Fee income | ||||
Derivative [Line Items] | ||||
Amount of Gain or (Loss) Recognized in Income on Derivative | $ 10 | $ 18 |
Other Borrowings and Long Ter_3
Other Borrowings and Long Term Debt - FHLB Borrowings (Details) - FHLB short-term borrowings - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Balance | $ 76,000 | $ 0 |
Fixed rate advance maturing October 7, 2019 | ||
Debt Instrument [Line Items] | ||
Balance | $ 45,000 | |
Interest Rate | 2.08% | |
Fixed rate advance maturing October 8, 2019 | ||
Debt Instrument [Line Items] | ||
Balance | $ 31,000 | |
Interest Rate | 2.08% |
Other Borrowings and Long Ter_4
Other Borrowings and Long Term Debt - Narrative (Details) - USD ($) | Sep. 28, 2015 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||
Interest expense for FHLB borrowings | $ 390,000 | $ 637,000 | $ 660,000 | $ 1,912,000 | ||
Available line of credit commitments | 716,500,000 | 716,500,000 | ||||
Available line of credit based on collateral available | 163,700,000 | 163,700,000 | ||||
Federal funds purchased | 99,000,000 | $ 77,000,000 | 385,000,000 | $ 244,000,000 | ||
Subordinated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | 50,000,000 | $ 50,000,000 | $ 50,000,000 | |||
Debt instrument term | 5 years | |||||
Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 | Subordinated Debt | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 | 50,000,000 | ||
Fixed rate of interest | 6.25% | 6.25% | 6.25% | |||
Basis spread on variable rate | 4.68% | |||||
Debt instrument redemption price (as a percent) | 100.00% | |||||
Debt instrument term | 10 years | |||||
Federal Home Loan Bank of Atlanta | ||||||
Debt Instrument [Line Items] | ||||||
Available line of credit based on collateral available | $ 367,400,000 | $ 367,400,000 | ||||
FHLB short-term borrowings | ||||||
Debt Instrument [Line Items] | ||||||
Loans from Other Federal Home Loan Banks | $ 76,000,000 | $ 76,000,000 | $ 0 |
Other Borrowings and Long Ter_5
Other Borrowings and Long Term Debt - Subordinated Debt (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Sep. 28, 2015 | |
Debt Instrument [Line Items] | |||
Subordinated debt, net | $ 49,831,000 | $ 49,704,000 | |
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | 50,000,000 | 50,000,000 | |
Less debt issuance costs | 169,000 | 296,000 | |
Subordinated debt, net | $ 49,831,000 | 49,704,000 | |
Debt instrument term | 5 years | ||
Subordinated Debt | Floating rate 10 year capital securities, with interest paid semi-annually at an annual fixed rate of 6.25% until September 30, 2020 | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 50,000,000 | $ 50,000,000 | $ 50,000,000 |
Debt instrument term | 10 years | ||
Annual fixed rate | 6.25% | 6.25% |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)shares | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)individualshares | Sep. 30, 2018USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ | $ 18 | $ 70 | $ 151 | $ 167 |
Number of individuals affected | individual | 2 | |||
Total incremental cost resulting from modifications | $ | $ 31 | |||
Restricted stock and performance share awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ | 454 | $ 444 | 1,200 | $ 1,300 |
Restricted stock awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation cost | $ | $ 2,600 | $ 2,600 | ||
Weighted-average period of recognition | 2 years 3 months 7 days | |||
Number of awards modified (in shares) | shares | 4,719 | |||
Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of awards modified (in shares) | shares | 12,500 | |||
2015 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares reserved for issuance | shares | 4,525,000 | 4,525,000 | ||
Additional awards available to be granted (in shares) | shares | 3,345,000 | |||
Award vesting period | 3 years | |||
Expiration period | 10 years |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value of Options Assumptions (Details) - Options | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 2.27% | 1.66% |
Expected term in years | 3 months | |
Expected stock price volatility | 26.80% | 24.20% |
Dividend yield | 0.00% | 0.00% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term in years | 1 year 8 months 23 days | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term in years | 1 year 9 months 26 days |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option and Warrant Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
Shares | |
Outstanding, Beginning of period (in shares) | 442,454 |
Granted/modified (in shares) | 12,500 |
Exercised (in shares) | (79,980) |
Forfeited (in shares) | (38,500) |
Expired (in shares) | (7,144) |
Outstanding, End of period (in shares) | 329,330 |
Exercisable (in shares) | 309,330 |
Weighted Average Exercise Price | |
Outstanding, Beginning of period (dollars per share) | $ 12.02 |
Granted/modified (dollars per share) | 10 |
Exercised (dollars per share) | 13.05 |
Forfeited (dollars per share) | 13.17 |
Expired (dollars per share) | 17.79 |
Outstanding, End of period (dollars per share) | 11.44 |
Exercisable (dollars per share) | $ 11.21 |
Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | |
Outstanding, Weighted average remaining contractual term (in years) | 2 years 7 months 10 days |
Exercisable, Weighted average remaining contractual term (in years) | 2 years 4 months 17 days |
Outstanding, Aggregate intrinsic value | $ 2,018 |
Exercisable, Aggregate intrinsic value | $ 1,971 |
Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of awards modified (in shares) | 12,500 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - Restricted stock awards | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Shares | |
Outstanding, Beginning of period (in shares) | 272,695 |
Granted/modified (in shares) | 158,593 |
Vested (in shares) | (68,198) |
Forfeited (in shares) | (67,663) |
Outstanding, End of period (in shares) | 295,427 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Beginning of period (dollars per share) | $ / shares | $ 18.09 |
Granted/modified (dollars per share) | $ / shares | 19.19 |
Vested (dollars per share) | $ / shares | 16.54 |
Forfeited (dollars per share) | $ / shares | 18.34 |
Outstanding, Ending of period (dollars per share) | $ / shares | $ 18.97 |
Number of awards modified (in shares) | 4,719 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Measurements | ||||
Fair value of assets from Level 1 to Level 2 | $ 0 | $ 0 | $ 0 | $ 0 |
Fair value assets from Level 2 to Level 1 | 0 | 0 | 0 | 0 |
Fair value liabilities from Level 1 to Level 2 | 0 | 0 | 0 | 0 |
Fair value liabilities from Level 2 to Level 1 | 0 | 0 | 0 | 0 |
Fair value of inputs from reconciliation of recurring assets | 0 | 0 | 0 | 0 |
Fair value of inputs from reconciliation of recurring liabilities | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements Recurring (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | $ 286,785 | $ 402,486 |
Interest rate derivative assets | 13,062 | 1,961 |
Interest rate derivative liabilities | 8,047 | 4,027 |
Fair Value | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 286,785 | 402,486 |
Interest rate derivative assets | 13,062 | 1,961 |
Interest rate derivative liabilities | 8,048 | 4,027 |
Fair Value | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Interest rate derivative assets | 0 | |
Interest rate derivative liabilities | 0 | |
Fair Value | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 286,785 | 402,486 |
Interest rate derivative assets | 13,062 | 1,961 |
Interest rate derivative liabilities | 8,048 | 4,027 |
Fair Value | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 0 | |
Interest rate derivative assets | 0 | |
Interest rate derivative liabilities | 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 | 84,744 | 26,849 |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (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. government agencies | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 84,744 | 26,849 |
Fair Value | U.S. government agencies | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
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 divisions | Fair value, measurements, recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 4,600 | 84,834 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (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 divisions | Fair value, measurements, recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 4,600 | 84,834 |
Fair Value | U.S. states and political divisions | Fair value, measurements, recurring | Significant Unobservable Inputs (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 | 19,826 | 4,400 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
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 | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 19,826 | 4,400 |
Fair Value | Trust preferred securities | Fair value, measurements, recurring | Significant Unobservable Inputs (Level 3) | ||
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 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 12,363 | |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (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 | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | 12,363 | |
Fair Value | Corporate debt securities | Fair value, measurements, recurring | Significant Unobservable Inputs (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 | 177,615 | 274,040 |
Fair Value | Mortgage-backed securities | Fair value, measurements, recurring | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
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 | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available-for-sale | $ 177,615 | $ 274,040 |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurements Nonrecurring (Details) - Impaired Loans - Fair value, measurements, nonrecurring - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,724 | |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 4,724 | |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 1,836 | |
Fair Value | Quoted Prices in Active Markets for Identical Securities (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $ 1,836 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Value and Carrying Value Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Financial assets | |||
Cash and due from banks | $ 42,577 | $ 42,895 | |
Interest bearing deposits in banks | 27,167 | 216,040 | |
Other short-term investments | 9,457 | ||
Total securities available-for-sale | 286,785 | 402,486 | |
Total securities held to maturity | 42,863 | ||
Loans held for investment, net | 1,817,593 | 1,710,222 | |
Loans held for sale - discontinued operations | [1] | 373,030 | |
Derivative assets | 13,062 | 1,961 | |
Financial liabilities | |||
Deposits to be assumed - discontinued operations | [1] | 585,429 | |
Securities sold under agreements to repurchase - discontinued operations | [1] | 6,220 | |
Subordinated debt | 49,831 | 49,704 | |
Derivative financial instruments | 8,047 | 4,027 | |
Fair value, measurements, recurring | Carrying Value | |||
Financial assets | |||
Cash and due from banks | 42,577 | 42,895 | |
Interest bearing deposits in banks | 27,167 | 216,040 | |
Other short-term investments | 9,457 | ||
Total securities available-for-sale | 286,785 | 402,486 | |
Total securities held to maturity | 42,863 | ||
FHLB stock | 5,910 | 2,622 | |
Federal Reserve Bank stock | 9,998 | 9,906 | |
Loans held for investment, net | 1,817,593 | 1,710,222 | |
Loans from Other Federal Home Loan Banks | 76,000 | ||
Loans held for sale - discontinued operations | 373,030 | ||
Derivative assets | 13,062 | 1,961 | |
Financial liabilities | |||
Deposits | 1,854,272 | 1,952,514 | |
Deposits to be assumed - discontinued operations | 585,429 | ||
Securities sold under agreements to repurchase - discontinued operations | 57,000 | 6,220 | |
Subordinated debt | 49,831 | 49,704 | |
Loans held for sale | 916 | 5,889 | |
Derivative financial instruments | 8,048 | 4,027 | |
Fair value, measurements, recurring | Fair Value | |||
Financial assets | |||
Total securities available-for-sale | 286,785 | 402,486 | |
Derivative assets | 13,062 | 1,961 | |
Financial liabilities | |||
Derivative financial instruments | 8,048 | 4,027 | |
Fair value, measurements, recurring | Fair Value | Quoted Prices in Active Markets for Identical Securities (Level 1) | |||
Financial assets | |||
Cash and due from banks | 42,577 | 42,895 | |
Interest bearing deposits in banks | 27,167 | 216,040 | |
Other short-term investments | 9,457 | ||
Total securities available-for-sale | 0 | ||
FHLB stock | 0 | ||
Federal Reserve Bank stock | 0 | ||
Loans held for investment, net | 0 | ||
Loans held for sale - discontinued operations | 0 | ||
Derivative assets | 0 | ||
Financial liabilities | |||
Deposits | 0 | ||
Deposits to be assumed - discontinued operations | 0 | ||
Securities sold under agreements to repurchase - discontinued operations | 57,000 | 6,220 | |
Subordinated debt | 0 | ||
Loans held for sale | 0 | ||
Derivative financial instruments | 0 | ||
Fair value, measurements, recurring | Fair Value | Significant Other Observable Inputs (Level 2) | |||
Financial assets | |||
Cash and due from banks | 0 | ||
Interest bearing deposits in banks | 0 | ||
Other short-term investments | 0 | ||
Total securities available-for-sale | 286,785 | 402,486 | |
Total securities held to maturity | 42,740 | ||
FHLB stock | 0 | ||
Federal Reserve Bank stock | 0 | ||
Loans held for investment, net | 0 | ||
Loans from Other Federal Home Loan Banks | 76,025 | ||
Loans held for sale - discontinued operations | 373,030 | ||
Derivative assets | 13,062 | 1,961 | |
Financial liabilities | |||
Deposits | 1,803,960 | 1,830,673 | |
Deposits to be assumed - discontinued operations | 585,429 | ||
Securities sold under agreements to repurchase - discontinued operations | 0 | ||
Subordinated debt | 50,146 | 48,960 | |
Loans held for sale | 916 | 5,889 | |
Derivative financial instruments | 8,048 | 4,027 | |
Fair value, measurements, recurring | Fair Value | Significant Unobservable Inputs (Level 3) | |||
Financial assets | |||
Cash and due from banks | 0 | ||
Interest bearing deposits in banks | 0 | ||
Other short-term investments | 0 | ||
Total securities available-for-sale | 0 | ||
FHLB stock | 5,910 | 2,622 | |
Federal Reserve Bank stock | 9,998 | 9,906 | |
Loans held for investment, net | $ 1,840,169 | 1,740,438 | |
Loans held for sale - discontinued operations | 0 | ||
Derivative assets | 0 | ||
Financial liabilities | |||
Deposits | 0 | ||
Deposits to be assumed - discontinued operations | 0 | ||
Securities sold under agreements to repurchase - discontinued operations | 0 | ||
Subordinated debt | 0 | ||
Loans held for sale | 0 | ||
Derivative financial instruments | $ 0 | ||
[1] | Assets and liabilities related to the Tennessee and northwest Georgia banking operations were classified as held for sale as of December 31, 2018. |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | $ 687,295 | $ 731,241 |
Minimum lease payments under Topic 842 | 16,669 | |
Minimum lease payments under Topic 840 | 22,014 | |
Commitments to extend credit | ||
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | 679,732 | 715,591 |
Standby letters of credit | ||
Loss Contingencies [Line Items] | ||
Financial Instruments whose contract amount represents credit risk | 7,563 | 15,650 |
SBIC Investments | ||
Loss Contingencies [Line Items] | ||
Commitments related to investments in SBICs | $ 2,900 | $ 3,200 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Cumulative effect adjustment to retained earnings | $ 84,529 | $ 84,529 | $ 42,187 | ||
Deposit account analysis fees and charges | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 672 | $ 566 | 1,894 | $ 1,601 | |
ATM fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 56 | 39 | 162 | ||
NSF fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 18 | 20 | 40 | 86 | |
Wire fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 124 | 110 | 336 | 303 | |
Foreign exchange fees | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 110 | 50 | 275 | 176 | |
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 1 | 2 | 5 | 11 | |
Total service charges | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 925 | 1,278 | 3,116 | 3,778 | |
Service charges - continuing operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | $ 925 | 804 | 2,589 | 2,339 | |
Service charges - discontinued operations | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | $ 474 | $ 527 | 1,439 | ||
Personal trust and agency accounts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 616 | ||||
Employee benefit and retirement-related trust and agency accounts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 120 | ||||
Investment management and investment advisory agency accounts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 217 | ||||
Custody and safekeeping accounts | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 26 | ||||
Other | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | 46 | ||||
Total trust Income | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenue from contract with customer | $ 1,025 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | Apr. 05, 2019item | Sep. 30, 2019USD ($) |
Lessee, Lease, Description [Line Items] | ||
Operating lease ROU assets | $ 9,900 | |
Operating lease liabilities | 13,903 | |
Number of branches sold | item | 14 | |
Number of branches sold that were owned by the company | item | 8 | |
Number of branches sold that were leased | item | 9 | |
Reduction of ROU asset | 3,600 | |
Reduction of lease liability | $ 4,100 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Contract terms | 1 year | |
Contract renewal terms | 5 years | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Contract terms | 12 years | |
Contract renewal terms | 10 years |
Leases - Net Lease Cost (Detail
Leases - Net Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases | ||
Operating lease cost | $ 509 | $ 1,635 |
Short-term lease cost | 11 | 37 |
Sublease income | (70) | (186) |
Net lease cost | $ 450 | $ 1,486 |
Leases - Other Information Rela
Leases - Other Information Related to Leases (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Leases | ||
Operating cash paid for amounts included in the measurement of lease liabilities | $ 551 | $ 1,594 |
Right-of-use assets obtained in exchange for new finance lease liabilities | $ 15,207 | |
Weighted-average remaining lease term - operating leases | 9 years | 9 years |
Weighted-average discount rate - operating leases | 3.30% | 3.30% |
Leases - Maturity of Remaining
Leases - Maturity of Remaining Lease Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Twelve Months Ended: | |
September 30, 2020 | $ 2,143 |
September 30, 2021 | 1,898 |
September 30, 2022 | 1,948 |
September 30, 2023 | 1,670 |
September 30, 2024 | 1,492 |
Thereafter | 7,518 |
Total future minimum lease payments | 16,669 |
Less: Interest | (2,766) |
Present value of net future minimum lease payments | $ 13,903 |